Fund Strategy articles from August 2007

Fund Strategy archives from August 2007

COMMENT: Confusion shrouds globalisation debate.
August 6, 2007... There are more misconceptions about globalisation than most other areas. What is more the key features of the global markets and the global economy are little discussed. Of course there are heated debates around aspects of globalisation....

Low demand raises spectre of axe.
August 6, 2007... The announced closure of the Old Mutual Global Technology fund is likely to be followed by others in the sector, according to one manager. As part of a bout of fund rationalisation, Old Mutual Asset Managers (Omam) last week announced...

M&G shuffles managers on groups's bond range.
August 6, 2007... Jim Leaviss, head of fixed income at M&G, has taken over the #1 billion M&G High Yield Corporate Bond Fund from David Fancourt. Fancourt has joined the group's structured credit team and is now in charge of its Panther range of cash...

BlackRock introduces changes to global fund.
August 6, 2007... The fund's name was changed to the Merrill Lynch Global Equity fund. This follows a change in the fund's manager in June when Andrew Willamson-Jones took over from Richard Turnill. Tony Stanning, director of product and client strategy,...

IN BRIEF: BNY launches two funds.(Brief article)
August 6, 2007... BNY Mellon Asset Management has announced the launch of two funds to its Dublin-domiciled Mellon Global Funds Evolution range. Evolution Currency Alpha and Evolution Core Alpha funds, both of which are run by Mellon Capital Management, focus...

IN BRIEF: Finsbury trust changes name.(Brief article)
August 6, 2007... The #70.8m Finsbury Emerging Biotechnology Trust has changed its name to The Biotech Growth Trust following a resolution passed at the Annual General Meeting. Managed by Geoffrey Hsu and Richard Klemm, the trust traded on 5.8% discount to...

IN BRIEF: Bank leaves rates unchanged.(Brief article)
August 6, 2007... The Bank of England left interest rates at 5.75% at its meeting last week. Last time interest rates changed was the quarter point rise on July 5. Six members of the monetary policy committee voted for July's rise while three voted to...

IN BRIEF: Murray VCT 4 is given new name.(Brief article)
August 6, 2007... The name of the Murray VCT 4 changed to Aberdeen Income and Growth VCT, with effect from July 25. The motion was passed by shareholders at the annual general meeting and was announced to the London Stock Exchange two weeks ago. The name...

IN BRIEF: RLAM recruits fund manager.(Brief article)
August 6, 2007... Royal London Asset Management has recruited Paola Binns as a credit fund manager, reporting directly to the group's head of fixed interest, Jonathan Platt. She will join the company from Credit Suisse Asset Management (CSAM) next week and...

IN BRIEF: HSBC expands multi-manager.(Brief article)
August 6, 2007... The multi-manager team at HSBC Investments has expanded to incorporate a dedicated team of property fund selection experts. The real estate multi-manager team consists of seven property specialists headed by Guy Morrell. The team will be...

F&C outperforms on lower gearing.
August 6, 2007... Jeremy Tigue, manager of the #2.48 billion Foreign & Colonial Investment Trust, reduced gearing in the fund in the first half of 2007 in anticipation of a rise in market volatility. At the end of June gearing had reached 5.7%. Tigue says...

Property still figures large in Specialist sector.
August 6, 2007... Net retail inflows into property funds accounted for over 80% of the #369m that went into the Specialist sector in June, according to the latest figures from the Investment Management Association (IMA). The Specialist sector has been the...

UBS Select leaps from fourth to first quartile under new manager.
August 6, 2007... Matthew Cox has steered the UBS UK Select fund into being first quartile in the IMA UK All Companies sector, just one year after taking command of the #132m portfolio. Cox, who took over the fund from Paul Fairbrother in August 2006,...

IN BRIEF: Route Group unveils film fund.(Brief article)
August 6, 2007... The Route Group has announced the launch of a UK domiciled, five-year, closed-ended fund that finances film projects. Working with Footprint films, the Footprint Film Fund targets a net return on capital of 21% a year. The fund, which is...

IN BRIEF: UBS appoints global manager.(Brief article)
August 6, 2007... UBS Global Asset Management has appointed Roddy Sloan from Axa Real Estate Investment Managers, as its new global head of real estate fund of funds and securities. Based in London, he will lead a global real estate fund of funds initiative and...

IN BRIEF: M&G announces record inflows.(Brief article)
August 6, 2007... M&G achieved record gross fund inflows of #7.5 billion in the first half of 2007, up 11% on the same period last year. It also saw its highest ever retail gross fund inflows of #4.5 billion, up 26% on the first half of last year. UK sales...

High oil price 'not a cause for panic'.
August 6, 2007... It would be wrong to panic about record oil prices, according to a report by Capital Economics, a consultancy.* Although oil hit a record of almost $80 a barrel last week this figure exaggerates the impact of high prices. During the "oil...

IFAs see writing on the wall for smaller firms.
August 6, 2007... More than 40% of IFAs expect small adviser firms to go out of business as scale becomes more important, according to a survey conducted by JPMorgan Asset Management (JPMAM). More than 200 IFAs were questioned for the report, "Surviving...

One up, one down for Henderson portfolios.
August 6, 2007... Two of Henderson's investment trusts have achieved contrasting results. The #357m Henderson Smaller Companies investment trust has outperformed its benchmark for the fourth consecutive year. But the #183m Henderson High Income trust has...

Equity markets hit British commercial property sector.
August 6, 2007... Funds investing in British commercial property were thrust into the spotlight last month. Fund Strategy (July 23, page 10) noted that the average commercial property investment trust was trading at a 15% discount to net asset value compared...

STRATEGY: Russia stabilises and strengthens.
August 6, 2007... A hike in living standards has boosted Russia's economy and - along with consumer demand and rocketing gas and oil prices - investment in infrastructure is also driving GDP growth. There is no shortage of critics of Vladimir Putin's...

TRENDS: Diversification is key to sanctuary.
August 6, 2007... Excessive money supply, huge current account deficits and China's economic transformation could force inflation to rise - so diversification is key to protect portfolios in the short term. Inflation seems to be making its way back into the...

Q&A: Volatility will not cause damage in long term.(Interview)
August 6, 2007... Ian Kernohan, an economist at Royal London Asset Management, is questioned by Neal Underwood. Q: Why do you think global equity markets have been so volatile over the past few weeks and indeed this year? A: Increased uncertainty about...

WORLD OF DIFFERENCE Truly global?
August 6, 2007... It is almost universally accepted that the financial world has become globalised over the past quarter century. But there are several reasons why the orthodoxy should be questioned, writes Daniel Ben-Ami. The impact of the American...

ANALYSIS: Time has come to head for the door.
August 6, 2007... Morley, the manager of Norwich Property, urges people not to panic. But investors should heed warning signs and seek sanctuary in European property - especially in Germany. Norwich has lost its property fund manager, Geraldine Davies, to...

REVIEW: Theorist sheds light on practicality.
August 6, 2007... Peter Bernstein's updated examination of financial theory and how today's industry has implemented the strategies developed yesterday, offers a heavy but satisfying read. Peter Bernstein Capital Ideas Evolving John Whiley, 2007...

AFI: When size can spoil the best ideas.
August 6, 2007... Some experts say it is difficult to run a small, mid cap or best ideas fund when the assets under management have grown too big. The decision whether, or when, to cap is a challenging one. As funds perform strongly they tend to attract...

FoFs: Boutiques help BDO's balancing act.
August 6, 2007... BDO Stoy Hayward takes a consistent approach to holdings - its Fitzwilliam Balanced Growth and Balanced Income funds have both tended to "migrate" towards boutique asset managers. Spurred on by the success of its Fitzwilliam Balanced Growth...

FOCUS: Solutions could end insight enigma.
August 6, 2007... Insight is establishing a stronger presence in the IFA market than many suspect - by launching two new absolute return funds and adopting a solutions-led approach. Simon Hildrey reports. Insight Investments is a bit of an enigma. It is...

Fund Manager's Diary: 23-29 July 2007.
August 6, 2007... Monday My first day in the office after getting married and spending quality time in South Africa and Mozambique with my wife. My shoes pinch, my tie constricts my neck, and with rain clouds gathering and flood warnings in the media,...

COMMENT: Grasping volatility needs an open mind.
August 13, 2007... There are two opposite but equally flawed responses to the recent market volatility (see page 10). One blithely assumes that all is well while the other warns that catastrophe looms. It seems likely that many fund groups have a standard...

Skandia open to short best ideas.
August 13, 2007... Skandia Investment Management is planning to build on the success of the two best ideas funds it launched last year with an offering that allows managers to short companies. The new fund, similar to the UK and Global Best Ideas funds, will...

Axa manager leaving to set up fund for Polar.
August 13, 2007... Gareth Powell, manager of the #56m Axa Framlington Biotech fund since April 2005, is leaving the group to join Polar Capital. He is expected to join Polar in November and will be responsible for establishing a long-only healthcare fund...

F&C plans launch of new SRI fund this year.
August 13, 2007... F&C has announced plans to launch another socially responsible investment (SRI) fund before the end of the year. The launch is part of the group's three-year growth plan and was announced alongside its results for the six months to June 30 -...

IN BRIEF: Threadneedle acquires Convivo.(Brief article)
August 13, 2007... Threadneedle has announced the acquisition of Convivo Capital Management, a specialist emerging markets hedge fund business, subject to regulatory approval. Convivo runs assets of $476m (#235m) in two strategies. Julian Adams, Convivo's chief...

IN BRIEF: New CSAM head of global equities.(Brief article)
August 13, 2007... Credit Suisse has appointed Yong-Moon Kim as managing director and head of global equities in its asset management division. Kim will lead a team of four portfolio managers and two assistant managers based in Zurich. Kim joins Credit Suisse...

IN BRIEF: Santander adds to bond team.(Brief article)
August 13, 2007... Santander Asset Management UK has appointed Baillie Gifford and Royal London Asset Management to its #655m Inscape and #363m Multi Manager bond funds. The investment styles and processes of the two managers will complement those of Western...

IN BRIEF: JOHCM beefs up UK equities team.(Brief article)
August 13, 2007... JO Hambro Capital Management (JOHCM) has strengthened its UK equity capability with the addition of research analyst Vishal Bhatia, who joins from Merrill Lynch. Bhatia will support Mark Costar and Alex Savvides, managers of the #506m JOHCM UK...

IN BRIEF: Offshore role at Collins Stewart.(Brief article)
August 13, 2007... Collins Stewart has announced that Martin Bralsford will be chairman of the company's portfolio management, stockbroking and funds business based in the Channel Islands and Isle of Man. The appointment is subject to regulatory and board...

IN BRIEF: Fed keeps rates on hold at 5.25%.(Brief article)
August 13, 2007... America's Federal Reserve left interest rates unchanged at 5.25% at its meeting last week. Economic growth was moderate during the first half of the year, it said. The Federal Open Market Committee expects the economy to continue expanding...

Swip resignation benefits Cockburn.
August 13, 2007... David Urch has resigned from Scottish Widows Investment Partnership (Swip). Control of Urch's #90m Swip UK Opportunities and #730m Scottish Widows UK Select Growth portfolios will pass to Peter Cockburn, who acts as back-up manager on the...

Institutions lift fund of funds sales to #2.5bn.
August 13, 2007... Funds of funds continue to grow in popularity, according to data from the Investment Management Association (IMA). Gross retail sales of the funds hit almost #2.5 billion in the second quarter of 2007, up from #2.1 billion in the same period...

Premier raises British Land stake with eye on out-of-town retail.
August 13, 2007... Alex Ross, manager of Premier Asset Management's #50m Pan European Property Share Oeic, has raised his stake in the British Land real estate investment trust (Reit). Ross has increased the Premier fund's weighting to 9%, from just 5% in...

IN BRIEF: Swip announces rise in profits.(Financial report)(Brief article)
August 13, 2007... Scottish Widows Investment Partnership (Swip) has announced an increase of 24% in profits over the first six months of 2007, compared with last year. Profits grew to #21m and external gross new business was up by 58%, to #1.4 billion. Swip's...

IN BRIEF: S&P's launches frontier index.(Brief article)
August 13, 2007... Standard & Poor's is launching the first fully investable index for frontier equity markets: the S&P/IFCG Extended Frontier 150 Index. It contains the largest and most liquid stocks from more than 30 developing markets in Asia, Eastern...

Central banks move to save markets.
August 13, 2007... Global stockmarkets tumbled last week after more shockwaves from the American subprime crisis made their impact. Daily trading on the London Stock Exchange hit record levels despite it being mid-summer. The biggest shock of the week came...

Way offers incentives to IFAs on Income Plan.
August 13, 2007... Way Group has cut the annual charges on its Income Plan and is offering IFAs new software to compare its strategy with its competitors. The Way Income Plan splits investors' capital into two strands: the Elite Income Plan cash trust and...

Market falls spark new warning over diversification.
August 13, 2007... Recent falls in global equity markets have reignited the debate over the benefits of diversification in investors' portfolios. Last week Capital Economics, a consultancy, published a report stating that investors may be overestimating the...

STRATEGY: Brazil spearheads regional revival.
August 13, 2007... Equity markets have soared, poverty rates have declined and political stability is widespread in Latin America -- so the region is likely to become even more desirable for global investors. Over the past three years or so the economic...

TRENDS: Sector promises returns for experts.
August 13, 2007... Technology sits at the heart of everything we do and, despite a dearth of funds in the field, skilled investors can look forward to sustained rewards as the sector evolves and matures. If I have one abiding memory of the peak of the...

Q&A: Championing volatility as an asset class.(Interview)
August 13, 2007... Jeremy Beckwith, chief investment officer at Kleinwort Benson, talks to Frances Hughes. Q: The Gresham Deva Alpha 80 fund was launched in September 2006 and was the only UK regulated onshore fund to use volatility as an asset class. Is...

SWEET TALK: Change of heart.
August 13, 2007... Investors dumped technology after the bubble burst in 2000, but despite recent fund closures, there are several reasons why the industry could be falling in love with the sector again. Simon Hildrey investigates. Over the past three...

SWEET TALK: Technology funds.
August 13, 2007... The technology sector is not only volatile in terms of returns but also in the number of onshore open ended funds. There were just three technology funds in 1982. This had grown to 16 in 1988, fallen back to six in 1998 and then proliferated...

SWEET TALK: View of IFAs and multi-managers.
August 13, 2007... Justin Modray of Bestinvest says there is a mixed picture for technology. One school of thought says that corporate spending will increase, says Modray, given the high rate of profits and earnings. Conversely, however, there are concerns...

ANALYSIS: India offers powerful opportunities.
August 13, 2007... India's growing economy and focus on improving its infrastructure offers opportunities - F&C's Sam Mahtani favours an engineering giant to boost returns in his Indian Investment Company. India celebrates 60 years of independence this week,...

CHANNELS: Reviewing the role of financial planners.(Interview)
August 13, 2007... Nick Cann, the chief executive of the Institute of Financial Planning, talks to Simon Hildrey. Q: Was the Financial Services Authority's (FSA) Retail Distribution Review (RDR) necessary? A: It was important for the FSA to carry out...

AFI: Small advisers face review dilemma.
August 13, 2007... Seven out of 10 advisory firms with revenues of under #1m are making crucial decisions over their future after the FSA's discussion paper proposed a two-tier retail distribution system. The future of small advisory firms is under threat...

FoFs: Henderson looks to Asia for growth.
August 13, 2007... Large exposure to Europe propelled the Henderson Independent Income and Growth fund to a high ranking, but the fund's co-managers are now turning their attention further east. The #72m Henderson Independent Income and Growth fund is...

FOCUS: Omam streamlines for flexibility.
August 13, 2007... Hot on its decision to convert all its funds to Oeics, Old Mutual has announced plans to cut its range of funds and to allow them to adopt wider investment powers. Adam Lewis reports. Old Mutual Asset Managers (Omam) propelled itself into...

Fund Manager's Diary: 28 July-4 August 2007.
August 13, 2007... Sunday A drizzly 5am start in Edinburgh culminates in a drizzly 2:30am arrival into Mumbai. It is monsoon season. Monday My colleague Vijay and I meet the local Financial Times correspondent for a quick breakfast of masala dosa (a type of...

COMMENT: Media spouts trash on market volatility.
August 20, 2007... The financial media sunk to what was probably a new low last week with several prestigious outlets blaming the volatility in global financial markets on American "trailer trash". Their argument seems to go something like this: the origins...

Liontrust re-jigs to pep performance.
August 20, 2007... Liontrust is to seek to change the investment mandate of its #12m Distribution fund to "breathe new life into it". The fund now sits in the Cautious Managed sector. It holds a minimum of 60% in gilts through an index tracker and a maximum...

Skandia outsources foray into global markets.
August 20, 2007... Skandia Investment Management (SIML) has launched a global emerging markets fund, which will be managed by six external managers. It follows the same pattern as the group's multi-manager funds, rather than its two best ideas funds, and...

Allsopp on safari for Africa's hidden value.
August 20, 2007... New Star is to launch a fund investing in Africa to be managed by Jamie Allsopp. The group says there are no details on when the fund will launch but it will be a Dublin-domiciled fund and called the New Star Heart of Africa fund. ...

IN BRIEF: Thumbs up for property sale.(Brief article)
August 20, 2007... Shareholders in the UK Balanced Property Trust have approved the sale of the fund's property portfolio to GE Real Estate, for #417.5m. Investors who want to retain their exposure to property can roll over into the F&C Commercial Property...

IN BRIEF: Fed cuts lending rate to banks.(Brief article)
August 20, 2007... In a surprise move America's Federal Reserve cut its discount rate - the rate at which it lends to banks - by half a point to 5.75% last week. The move was in response to the market turmoil of recent weeks. In an official statement the Fed...

IN BRIEF: Urch to take up Fidelity position.(Brief article)
August 20, 2007... Fidelity International has confirmed the appointment of David Urch from Scottish Widows Investment Partnership (Swip). Urch, whose resignation from Swip was announced two weeks ago, is the second portfolio manager to be appointed to...

IN BRIEF: Forsyth suspends two Axa ratings.(Brief article)
August 20, 2007... Forsyth-OBSR has suspended the A and AA ratings it awarded to the Axa Framlington Biotech and Health funds, respectively. The move follows the resignation of Gareth Powell to join Polar Capital. Forsyth has also downgraded Invesco Asian...

IN BRIEF: Resolution beefs up to serve IFAs.(Brief article)
August 20, 2007... Resolution Asset Management has restructured its sales and marketing department to bolster its support for generalist IFAs. The restructure is part of its strategy to become a top five UK asset manager by 2009. It will create 10 new...

Ashby heads off for Credit Suisse.
August 20, 2007... Graham Ashby is leaving Sarasin Chiswell to join Credit Suisse as head of UK retail equities. Both groups plan to outsource the #15.6m Sarasin UK Equity Income fund, managed by Ashby, to Credit Suisse. The fund, launched in January, will...

First State boosts infrastructure investment.
August 20, 2007... First State is to launch a Global Infrastructure Securities fund to mirror a product it launched in Australia in June. Peter Meany, head of global infrastructure securities, will manage the fund with Andrew Greenup. Fund Strategy...

Ison comes in as Cliff leaves Threadneedle.
August 20, 2007... Phil Cliff, manager of Threadneedle's #1.2 billion European Select and E380m (#260m) Pan European Accelerando funds, has resigned from the firm. In response, Threadneedle has recruited Dan Ison as its head of pan- European equities. Ison...

IN BRIEF: Burdett and Potter join Thames River.(Brief article)
August 20, 2007... Robert Burdett and Gary Potter have joined Thames River Capital, as co- heads of the firm's long-only multi-manager team. The firm expects to launch an initial range of five core funds next month. Potter and Burdett arrive from Credit Suisse,...

IN BRIEF: HSBC debt funds awarded rating.(Brief article)
August 20, 2007... Two HSBC emerging market debt funds have gained Standard & Poor's Fund Management ratings. The HSBC GIF New World Income fund has been awarded an AA fund management rating, based on its total return strategy being successfully employed by...

IN BRIEF: S&P launches Islamic indices.(Brief article)
August 20, 2007... Standard & Poor's has launched three indices compliant with Islamic law. They cover the pan-Arab region and publicly traded property companies in developed and emerging markets. Each sharia-compliant index provides investors with an...

Managers shrug off market turmoil.
August 20, 2007... Fund managers are relatively upbeat about equities despite the market turmoil, according to the latest monthly global survey from Merrill Lynch. They regard the volatility as being to do with the financial markets and sector rather than...

Franklin Templeton adds to offshore range.
August 20, 2007... Franklin Templeton Investments is to launch three funds within its Luxembourg-domiciled range. It will unveil Templeton Global Absolute Return, Franklin Strategic Income and Franklin Natural Resources portfolios, subject to regulatory...

Undervalued big-caps prompt Gartmore sale.
August 20, 2007... The #542.7m Gartmore Cautious Managed fund, managed by Chris Burvill, has taken profits from some of its holdings to buy into undervalued large-cap stocks in the last three weeks. The recent market sell-off has led to good companies being...

For most managers every day is a "buying opportunity".
August 20, 2007... Any time can apparently be a good time for a fund manager. Both soaring markets and plummeting markets can be spun into "buying opportunities". So it is no surprise that as the FTSE 100 fell last week a host of managers announced the...

STRATEGY: Economy should survive the storm.
August 20, 2007... Market volatility hit merger and acquisition deals, equity returns and corporate bond spreads but the overall impression is that this is a financial market rather than a real economy event. The Dow Jones Industrial Average reached an...

TRENDS: Land of opportunity is full of value.
August 20, 2007... Stockpickers shun American equities for several reasons, including misconceptions about lack of opportunity. But investors can find value in a culture focused on innovation and growth. North America or Asia Pacific ex Japan - which mutual...

Q&A: Equities chief favours unloved companies.(Interview)
August 20, 2007... Leigh Harrison, head of UK equities at Threadneedle Investments, answers questions from Frances Hughes Q: You took over from Michael Taylor as head of UK equities in January this year. What approach have you taken? A: I have had to...

ADVISER FUND INDEX: Money box.
August 20, 2007... Respondents to the latest Adviser Fund Index questionnaire are sanguine about recent market volatility - especially as all three indices have outperformed their competitors since launch. Will Jackson reports. The next rebalancing of the...

ADVISER FUND INDEX: Views on the AFI.
August 20, 2007... Global equities remain the single-biggest component in all three Adviser Fund Indices, and the panellists' largely positive views on the asset class are reflected in their expectations for AFI performance. The panellists were asked to...