Fund Strategy articles from August 2005

Fund Strategy archives from August 2005

Flawed beauty in the Indian economy.
August 1, 2005... To many commentators the Indian economy has recently bloomed into a flawless beauty comparable to Aishwarya Rai, Bollywood's top star, pictured on the front cover. For them this is not an Indian summer, to be followed by the cold air of winter,...

Axa buys Framlington in #174m deal.(Axa Investment Managers)(Framlington Group)
August 1, 2005... Axa Investment Managers is to purchase the Framlington Group in a deal worth #174m. Framlington fund managers will join Axa IM and run their current portfolios under the new Axa Framlington brand. Paul Griffiths, chief executive of Axa IM...

Husselbee to head up new Neptune multi-manager subsidiary.(appointment of John Husselbee as manager)
August 1, 2005... Neptune Investment Management is this week to launch an independent multi-manager subsidiary, which will be headed by John Husselbee. Husselbee, who left his position as director of multi-manager investment at Henderson Global Investors in...

IN BRIEF: Mallon named as Jones successor.(Invesco Perpetual Income and Growth fund)(Brief Article)
August 1, 2005... Ciaran Mallon has taken on the role of fund manager for the #843m Invesco Perpetual Income & Growth fund, following the announcement that Andy Jones is to leave the group to join Henderson Global Investors. Mallon, who joined Invesco...

IN BRIEF: Six leave Gerrard for Stanley.(Brief Article)
August 1, 2005... Stockbroking group Charles Stanley has poached six employees from Gerrard to open a Birmingham office. David Inions and Marcia McKenzie join Charles Stanley when the new office opens on August 1. They will be joined by four other recruits over...

IN BRIEF: Extra commission on Gartmore fund.(Brief Article)
August 1, 2005... Gartmore is offering 4% commission to advisers as well as a 1% discount on the 5% initial charge on new lump sum investments in the Gartmore Cautious Managed fund, run by Chris Burvill. Gartmore is also paying standard renewal commission of...

IN BRIEF: Fidelity forum venues unveiled.(Brief Article)
August 1, 2005... Fidelity will hold its annual investment forum from September 26-30. Speakers include Fidelity managers Sanjeev Shah, Ian Spreadbury, Colin Stone and analyst Chris Ralph. The seven forums will be in Edinburgh, Leeds, Manchester, Birmingham,...

IN BRIEF: Canada Life offers Investec funds.(Brief Article)
August 1, 2005... The Investec Cautious Managed and Investec Managed Distribution funds are to be offered on Canada Life's onshore platform. Alastair Mundy runs both the #557m Cautious Managed portfolio and the #50m Managed Distribution fund. Copyright:...

IN BRIEF: Chow and Bar set to join Morley.(appointment of Gilles Chow and Gil Bar as fund managers)(Brief Article)
August 1, 2005... Gilles Chow and Gil Bar are joining Morley Fund Management as fund managers on its continental Europe property team. Chow was previously at Macquarie Global Property Advisers, specialising in European real estate. Bar was a portfolio manager...

Omam set to launch Prosper 80 fund.(Old Mutual Asset Managers)
August 1, 2005... Old Mutual Asset Managers is to launch a capital protected multi- manager fund of hedge funds, which has a target return of cash plus 4% a year after all charges. The Old Mutual Prosper 80 fund, which will only be available to investors...

Russon set to take over from Wood at Newton.(appointment of Ben Russon as manager)(Brief Article)
August 1, 2005... Newton Investment Management has responded to the loss of John Wood, manager of its UK Opportunities fund (see above right), by appointing Ben Russon as lead manager. Russon, who joined Newton in 1999, has worked alongside Wood on the fund...

JOHCM nets Wood for UK Opportunities fund.(JO Hambro Capital Management hires John Wood)(Brief Article)
August 1, 2005... JO Hambro Capital Management has announced that John Wood will be joining the group to run an onshore UK Opportunities fund, which it is planning to launch in late November. Wood, who is scheduled to join JOHCM in three months, according to...

IN BRIEF: Credit Suisse roadshow dates.(Brief Article)
August 1, 2005... Credit Suisse will be holding a series of multi-manager roadshows in September. Robert Burdett and Gary Potter will run 14 seminars in London, Glasgow, Birming-ham, Southampton, Cardiff, Newcastle and Manchester from September 5 to 16. The...

IN BRIEF: Mann joins F&C emerging desk.(F and C Asset Management hires Jonathan Mann)(Brief Article)
August 1, 2005... F&C Asset Management has hired Jonathan Mann as director, emerging debt. Mann previously worked for Standard Asset Management managing $1.5bn (#850m) in Latin American and Asian bond assets. He reports to F&C head of emerging debt, Helene...

IN BRIEF: MFS hires new pan-Euro analyst.(MFS International Inc.)(Brief Article)
August 1, 2005... MFS International has hired Benjamin Stone as a research analyst for its European equity team, based in London. Stone will focus on pharma- ceuticals and medical equipment. He was previously a research analyst at Schroders. MFS currently has...

F&C unveils US and Japan mandates.(Foreign & Colonial investment trust)
August 1, 2005... The Foreign & Colonial investment trust has implemented proposals to outsource the management of its American and Japanese equity portfolios in a bid to improve performance. It has also overhauled its charging structure and introduced a...

Warren leaves DWS over lack of post-buyout role.(Brief Article)
August 1, 2005... DWS managing director Michael Warren has left the company following talks with senior figures at Aberdeen Asset Management. Andy Clark, DWS head of sales, replaces Warren as the group's head of retail. Warren's departure follows the deal...

Cazenove rejigs funds for a wider audience.(Cazenove Capital Management)
August 1, 2005... Cazenove Capital Management is to offer four of its multi-manager portfolios to retail investors from September 2005. The funds, all co- run by fund managers Mark Harries and Simon Wood, are currently available only to the group's private...

IN BRIEF: New property desk at Tullett Prebon.(Brief Article)
August 1, 2005... Tullett Prebon, part of Collins Stewart Tullett, has launched a property derivatives trading desk that will offer a range of products aimed at gaining exposure to the UK commercial property market. The team of three will be led by the group's...

IN BRIEF: Nigel Stevenson set to join Veritas.(Veritas Asset Management)(Brief Article)
August 1, 2005... Veritas Asset Management has appointed Nigel Stevenson as a global investment analyst. Stevenson was previously in the investment banking division at Dresdner Kleinwort Wasserstein and recently completed a Masters in Finance. He will be...

IN BRIEF: Finsbury Tech up 1.8% per share.(Brief Article)
August 1, 2005... The net asset value per share of the Finsbury Technology investment trust increased by 1.8% in the six months to May 31, according to the trust's preliminary results. The share price fell 0.2% and discount widened to 11.2% over the period....

Matrix plans autumn launch for VCTs.(venture capital trust)
August 1, 2005... Matrix is planning to launch two new #20m venture capital trust issues in September, one of which will be included in an existing offering, according to Mark Wignall, chief executive of Matrix Private Equity Partners. The group is...

Intermediaries top distribution channel tables.(Brief Article)
August 1, 2005... Total investment funds under management climbed to nearly #300m in June, up 19% from June 2004, according to figures from the Investment Management Association. Net retail sales were also up significantly to #447.6m in June, compared with...

Buoyant markets help narrowing discounts.
August 1, 2005... Discounts in the investment trust sector are at their narrowest since 1996, according to Alan Brierley, research analyst at Dresdner Kleinwort Wasserstein. Discounts (conventional trusts only) narrowed from 15% to 8% from March 2003 to the end...

End of Chinese currency peg signals a global shift.
August 1, 2005... Opinions seem to have shifted in the short time since China announced it was breaking the link between the renminbi and the dollar on July 21 (see Fund Strategy, July 25, page 5). At first there was much talk of it being an important move...

CHRONOLOGY OF KEY CURRENCY REGIMES.(Brief Article)(Chronology)
August 1, 2005... 1880-1914 - The gold standard. During this time most countries' currencies were pegged to the value of gold. Collpased with the outbrreak of the first world war. 1925-1932 - The gold exchange standard. Currency regime in which the...

SELECTED CURRENCY TERMS.(Brief Article)
August 1, 2005... * Currency peg - System in which the value of one currency is fixed against that of another. For example, for 11 years the renminbi was fixed at 8.28 to the dollar. * Fixed exchange rates - Regime in which exchange rates are set at a...

TRENDS: How solid are property's foundations?(commercial real estate investments)
August 1, 2005... Commercial property investors have been enjoying more than a decade of positive annual returns. But how sturdy is the sector now, and is the current boom about to turn to bust? According to the Investment Property Databank, 2004 was one...

STRATEGY: Mixed signals from asset markets.
August 1, 2005... Commodity prices continue to rise, but with the yield curve flattening, investors are receiving confusing messages. However, there is justification for a modestly bullish approach. Financial markets are giving divergent signals to...

Q&A: Five forces to find the key to renewed growth.(interveiw)(Crispin Finn)(Interview)
August 1, 2005... Crispin Finn, manager of the Credit Suisse Alpha Growth fund, is questioned by Helen Burnett. Q: How does the Alpha Growth fund work? A: The fund tries to take the best growth ideas and put them into a single portfolio. Currently, the...

Indian dream.(economic conditions)
August 1, 2005... In the month India celebrates her 58th birthday as an independent nation, she is feted by foreigners in distant shores perhaps as never before. Her perceived diplomatic and economic standing has risen to levels few expected a decade or so ago....

INDIA: The stockmarket.(Brief Article)
August 1, 2005... The surge in the Indian stockmarket over the last three years has left some money managers cautious. The stockmarket's price/earnings ratio is about 14.5x based on forecast earnings to March 2006, according to HSBC fund manager Sanjiv...

INDIA: The economy.(Brief Article)
August 1, 2005... If India could achieve a real economic growth rate of 8% per year for the next decade, the country would be transformed, according to Professor Kaushik Basu of Cornell University. But an 8% annual target over such a long period is a tough...

CHANNELS: An open approach to one-stop shopping.(Interview)(Interview)
August 1, 2005... Graham Angell, product proposition manager at Openwork, answers questions from Sarah Godfrey. Q: Why did you decide to go multi-tie? A: The Zurich Advisory Network was the largest direct salesforce in Britain. Zurich looked at its...

ANALYSIS: A brave new world of opportunity.
August 1, 2005... After a couple of years licking the wounds it sustained in the split- capital trusts debacle, Aberdeen is back, and would like the world to know about its emerging markets fund. Aberdeen Asset Management could more rightly be called...

FOCUS: A small firm with a small island focus.(Rathbone Unit Trust Management)
August 1, 2005... Rathbone Unit Trust Management prides itself on its team-based approach. And although performance has slipped of late, it remains positive for the future. James Teasdale reports. Rathbone Unit Trust Management is a small asset management...

FoFs: Inside information gives Invesco a lift.(fund of funds)(Invesco Perpetual World Growth Portfolio)
August 1, 2005... Invesco Perpetual World Growth manager Ian Brady claims that his impartiality in choosing underlying funds helps keep the fettered fund of funds in the Active Managed sector's top 10. Despite running one of the underlying funds in the...

Fund of funds performance data.
August 1, 2005... Average returns in the Investment Management Association Active Managed sector (funds of funds only) have seen a significant jump over one and three years compared with the last time we reviewed the sector (June 27). The sector mean has...

Fund Manager's Diary: 19-25 July 2005.(Andy Smith )(global biotechnology fund )
August 1, 2005... Tuesday A supposedly great start to the week - an unquoted investment in the BIT fund has been bought by a Japanese biotech company for close to double our carrying value and today is the announcement. However, my son is ill, so I am at home...

COMMENT: EU cannot take credit for emerging Europe.(European Union)
August 8, 2005... When there is a near-universal consensus surrounding a question it is often a good time to question it. Of course there are some points around which agreement makes sense - no serious person would nowadays deny that the earth is round, for...

S&W hands Europe fund to New Star.(Smith and Williamson)(Nucleus European trust)
August 8, 2005... Smith & Williamson Investment Management has outsourced the running of its #27m Nucleus European trust to New Star Asset Management. This comes as Smith & Williamson prepares to start marketing its unit trusts to the retail market for the...

Taylor takes over Threadneedle UK Growth fund.(Michael Taylor replaces Graham Kitchen)(Brief Article)
August 8, 2005... Michael Taylor, head of equities and UK equities at Threadneedle, has taken over management of the group's #1.2bn UK Growth fund. It is not clear whether the fund's former manager Forsyth McGarrity is still with the group after having...

Bank of England cuts interest rates to 4.5% for first time in a year.(Brief Article)
August 8, 2005... The Monetary Policy Committee of the Bank of England decided to cut interest rates by a quarter point to 4.5% last week after leaving rates unchanged for a year. The cut is the first change since August 2004, when the MPC raised rates by...

IN BRIEF: Amerindo Internet fund set to close.(Amerindo Investment Advisors)(Brief Article)
August 8, 2005... The Amerindo Internet fund has announced that it will close, after receiving insufficient support to continue the company. The trust had been considering the appointment of a new investment manager after the board terminated its contract with...

IN BRIEF: Akrigg joins F&C Pacific equities.(Ben Akrigg is appointed as director at F&C Fund Management)(Brief Article)
August 8, 2005... F&C has appointed Ben Akrigg as director, Pacific equities, reporting to Mike Hanbury-Williams, head of Pacific equities. Akrigg was previously a portfolio manager with Morley Fund Management, working in the group's Asia Pacific equities...

IN BRIEF: New lease of life for 30-year bond.(Brief Article)
August 8, 2005... The US Treasury has relaunched its 30-year bond after stopping auctions of the long-dated bonds in late 2001 owing to a federal budget surplus. The first auction is expected early next year and will take place twice a year. The first bond...

IN BRIEF: New contrarian for Investec team.(Mark Wynne-Jones appointed at Investec Asset Management)(Brief Article)
August 8, 2005... Mark Wynne-Jones will join the UK Contrarian team at Investec Asset Management, reporting to the head of the team, Alastair Mundy. Wynne- Jones was previously director of wealth management research in the UK at UBS Wealth Management. He also...

IN BRIEF: Barings: Russia still looks good.(Brief Article)
August 8, 2005... Baring Asset Management says it continues to see Russia as an attractive investment opportunity, after Russian equities gained 20% in dollar terms so far this year, to the end of July, according to the CSFB Ros index. Risk aversion towards...

IN BRIEF: Two New Star funds rated.(New Star Pacific Growth unit trust)(Brief Article)
August 8, 2005... Standard & Poor's has assigned an A-New fund management rating to the New Star Pacific Growth unit trust, and an A-rating to the offshore New Star Asian Opportunities fund. Both funds are managed by Ian Beattie. S&P says while resources are...

North to tailor white-label products.(North Investment Partners)
August 8, 2005... John Husselbee's new multi-manager operation, North Investment Partners, will focus primarily on helping other groups to develop multi- manager products and will probably not look to launch its own range. "It is unlikely we will launch our...

Woodford gets double top on Principal white list.(Invesco Perpetual funds managed by Neil Woodford ranked first and second on Principal Investment Management list)(Brief Article)
August 8, 2005... Two Invesco Perpetual funds were top of the second Principal Investment Management "white list" of 2005. The list aims to identify the top 12 funds in the UK Equity Income sector in terms of total returns and volatility over the last five...

Barings funds go top-quartile under Deptford.(Charles Deptford )
August 8, 2005... Charles Deptford has moved both the Baring UK Growth and Baring UK Equity Income funds into the first quartile of their respective sectors over the past 12 months. Deptford, who took over the two funds last September, joined Barings from...

IN BRIEF: Britannic appoints new sales chief.(Michael Borkan is appointed as head of international sales at Britannic Asset Management)(Brief Article)
August 8, 2005... Britannic Asset Management has appointed Michael Borkan as head of international sales and distribution. He joins from Sinopia Asset Management, a subsidiary of HSBC-controlled bank CCF. Reporting to sales and marketing director Jonathan Polin,...

IN BRIEF: Weiss set to join Invesco Perpetual.(Martin Weiss is appointed product director )(Brief Article)
August 8, 2005... Invesco Perpetual has appointed Martin Weiss as product director for the international equity products investment team. He will represent the group's range of international funds to both internal and external clients. He joins from Cazenove...

IN BRIEF: CORRECTION.(Correction Notice)
August 8, 2005... Credit Suisse Asset Management is offering a reduced 3% initial charge on the Multi-Manager Incubator fund until September 30, not a reduced annual management charge, as previously stated (Fund Strategy, July 25, 2005, page 5). The annual...

Artemis doubtful for investment-grade.(Artemis Strategic Bond fund. )
August 8, 2005... While rising dividend payments may be good news for equity markets, they are proving detrimental to investment-grade bonds, says James Foster, manager of the Artemis Strategic Bond fund. As a result Foster, who joined Artemis in April...

Autumn deadline for Hollyman's UK Hedge fund.(Ross Hollyman will cap fund)(Brief Article)
August 8, 2005... GAM is planning to cap its UK Hedge fund at #200m or on October 31, if the fund has not reached that amount by then, according to the group. The fund, which was launched in November 2003 and is #152m in size, is managed by Ross Hollyman....

Invesco Europe board buys back 30% of trust.
August 8, 2005... The board of the #45m Invesco Perpetual European investment trust has bought back about 30% of the trust's share capital since the fund altered its investment strategy in March. As part of the board's pledge not to allow discounts to trade...

IN BRIEF: Close gets new private client head.(Martin Andrew appointed at Close Brothers Group PLC)(Brief Article)
August 8, 2005... Close Asset Management, the asset management division of Close Brothers Group, has appointed Martin Andrew as head of private clients. Andrew joins from Merrill Lynch Investment Managers, where he ran the private client business in Europe....

IN BRIEF: Marcroft is MLIM man in the North.(Keith Marcroft appointed at Merrill Lynch Investment)(Brief Article)
August 8, 2005... Merrill Lynch Investment Managers has appointed Keith Marcroft as sales manager for the UK retail fund business in the North and Scotland. He will report to Alex Hoctor-Duncan, sales director for UK retail. Marcroft was previously regional...

IN BRIEF: Hughes takes on Orr role at SIML.(appointment of Spike Hughes at Skandia Investment)(Brief Article)
August 8, 2005... Spike Hughes, sales director at Skandia Investment Management, will take on the overall responsibility for both sales and marketing at the company. Hughes will become sales and marketing director with immediate effect, as current marketing...

India hits new high despite flooding.
August 8, 2005... India's stockmarket surged to a record high last week despite calamitous flooding in Mumbai, the country's financial capital, in the wake of torrential monsoon rain. The Bombay Stock Exchange's closely watched Sensitive index closed at...

Hedge funds feel the pinch in trendless markets.(Brief Article)
August 8, 2005... The CSFB Tremont Investible index, a measure of all hedge funds able to take new money, generated a dollar return of only 0.2% in the first half of the year. This, says Randal Goldsmith, fund of hedge funds specialist at Standard & Poor's,...

Political opposition derails China bid.(China National Offshore Oil Corporation withdraws bid for Unocal)
August 8, 2005... Protectionist opposition by American politicians has thwarted the largest ever takeover bid by a Chinese company for a foreign firm. The move could sour relations between America and China, which already seem beset by tensions. The China...

TRENDS: Domestic demand boosts small-caps.
August 8, 2005... The first half of 2005 has seen both equities and bonds performing well in all but two months, and the signs are looking positive for closing the year having outperformed the previous two. Global Growth funds continued their gains in...

STRATEGY: Currencies are shaping the outlook.
August 8, 2005... The American economy continues to grow faster than Britain, Japan and continental Europe, but will the revaluation of the Chinese currency damage US interests in the longer term? One of the biggest surprises of the year so far in...

Q&A: Staying focused on the fastest-growing stocks.(Chris Baggini of the Gartmore US Focus fund)(Interview)
August 8, 2005... Chris Baggini, manager of the Gartmore US Focus fund, answers questions from Helen Burnett. Q: How would you describe your investment process? A: It starts with a definition of the focus fund. By focus fund we mean 20-30 best ideas -...

Eastern promise.(European market condition)
August 8, 2005... Emerging Europe has been the success story of the continent over the past few years. The region has the advantage of cheaper manufacturing, while offering a lower-risk alternative to other emerging markets. But will European Union membership...

Eastern promise: RUSSIA.(economic aspects of Russia)(Brief Article)
August 8, 2005... Where Eastern and Central Europe may be seen by some investors as less risky than other emerging markets, investor confidence in Russia has been shaken lately by a number of government actions. According to Phil Hanson, emeritus professor of...

Eastern promise: TURKEY.(Brief Article)
August 8, 2005... Turkey, one of the favoured countries of many fund managers investing in emerging Europe, is forecast to have a more sustainable GDP growth rate of 6.3% this year, down from 2004's growth of 8.9%, according to the OECD. Glen Finegan of First...

CHANNELS: Client-driven decision to remain independent.(John Willcock)(Interview)
August 8, 2005... John Willcock, head of product marketing at Norwich & Peterborough Building Society, talks to Sarah Godfrey. Q: How long has N&P had an IFA arm? A: We have had the IFA business since October 2003. Until then we had been tied agents...

ANALYSIS: Mixed news for asylum seekers.(Bedlam Asset Management)
August 8, 2005... When Bedlam launched in 2002 in a blaze of press coverage, it promised to free investors of lacklustre funds with high charges. Strange, then, that its UK fund seems to be just that... Jonathan Compton, founder of Bedlam Asset Management,...

FOCUS: An old firm tries out new sales tricks.(Smith and Williamson)
August 8, 2005... Although it has existed for 124 years, Smith & Williamson has only just launched its first external marketing campaign. Simon Hildrey asks if this heralds a new era for the firm. The weekend of July 23-24 could mark a significant stage in...

Fund of funds performance data.
August 8, 2005... The margin of difference between the top-performing funds in the one and three-year tables of Balanced Managed funds of funds has increased over the past month. Compared with the last sector review (Fund Strategy, 4 July) the gap between the...

Fund Manager's Diary: 25-31 July 2005.
August 8, 2005... Monday A new week and it's the calm before the storm. The rest of the week will see the start of a deluge of company results (50 to 60 companies reporting per day). It's time to clear the decks and prepare for the onslaught. Days are long at...

COMMENT: Is the US headed for an economic fall?
August 15, 2005... Imagine a country that has by far the best economic growth record of the leading developed nations in recent years. Its stockmarket, accounting for about half of global capitalisation, is easily the largest in the world. Both share prices and...

McKenzie takes Martin Currie role.(Scott McKenzie)
August 15, 2005... Scott McKenzie, manager of the #228m Norwich UK Equity Income fund at Morley Fund Management, is to join Martin Currie in November. McKenzie will take over the management of the group's equity income product, the #182m Martin Currie Income...

New Star chief doubles Hidden Value investment.(John Duffield )(Hidden Value fund)(Brief Article)
August 15, 2005... New Star's chairman John Duffield has invested a further #1m of his own money into the group's Hidden Value fund, managed by Jaime Allsopp. The new investment takes Duffield's personal holding in the fund to some #2m, having invested #1m...

Three lose buyback rights to arbitrageurs.(mutual fund industry)
August 15, 2005... The threat of hostile corporate action from arbitrageurs could increase, following the failure of three investment trusts to renew their share buyback powers at their recent annual general meetings. The Edinburgh UK Smaller Companies...

IN BRIEF: Trenchard joins First State Opps.(Caspar Trenchard)(First State British Opportunities fund)(Brief Article)
August 15, 2005... First State has appointed Caspar Trenchard as portfolio manager, UK equities. Based in the group's Edinburgh office, he will assist on the First State British Opportunities fund, managed by Adam White. He will report to Paul Jourdan, head of...

IN BRIEF: Fidelity unveils discretionary site.(www.fidelity.co.uk/wealthmanager)(Brief Article)
August 15, 2005... Fidelity has launched a website for discretionary managers, to provide information on its fund and investment trust range as well as market reports and analysis. The site, designed for the wealth management sector, is accessible via...

IN BRIEF: Barclays launches Portfolio Bond.(Brief Article)
August 15, 2005... Barclays is offering a Portfolio Bond, which includes a range of funds within a life wrapper, such as L&G specialist investment bond funds, a protected fund and funds based on its multi-manager range. It will be available through Barclays...

IN BRIEF: Wilson steps up to marketing role.(Richard Wilson)(Brief Article)
August 15, 2005... New Star has appointed Richard Wilson as UK retail marketing director. Previously director of investor communications, he will be responsible for UK retail advertising and intermediary and client communications. He will work alongside head...

IN BRIEF: T Bailey funds on Selestia platform.(T Bailey Growth and Equity Income funds)(Brief Article)
August 15, 2005... The T Bailey Growth and Equity Income funds of funds are now available via the Selestia supermarket. The addition of the two funds, managed by Jason Britton, takes the total number of funds on the platform to 714 from 58 groups. Earlier this...