Fund Strategy articles from December 2007

Fund Strategy archives from December 2007

COMMENT: Resist green austerity of wealthy eco-prince.
December 3, 2007... The one interesting thing in Prince Charles's article on climate change in the Financial Times last week was his admission that he favoured lower living standards: "Many of us fortunate enough to have lived in the developed world since the...

Liontrust changes plan for new hedge.
December 3, 2007... Liontrust has revised plans to create a new hedge fund for Jeremy Lang. Fund Strategy revealed on September 10 (page 7) the group was planning to create a fund for Lang next year, two-and-a-half years after the closure of the Liontrust...

Polar appoints co-manager for global tech fund.
December 3, 2007... Nick Evans has replaced Tim Woolley as co-fund manager of the Dublin- based Polar Capital Global Technology fund. Ben Rogoff continues as co-manager of the Dublin fund, which has distributor status in Britain, and as the manager of the...

Online evaluation set to gauge funds' risk profile.
December 3, 2007... An online service has been launched to assess the business and operational risk of funds. Probity is being offered to offshore life companies to evaluate funds before they are included in portfolio bonds. Each fund is assessed using...

IN BRIEF: Shareholders vote to tweak policy.(Brief article)
December 3, 2007... Shareholders in the Gartmore Fledgling trust last week passed a resolution to modify the trust's investment policy and increase active overlay. The trust is now permitted to invest in stocks that were formerly traded on the official list and...

IN BRIEF: Investec man given wider role.(Brief article)
December 3, 2007... Investec Asset Management has promoted Richard Garland, formerly its managing director for mutual funds (Americas), to managing director, international distribution. His new role brings added responsibility for cross-border sales, including...

IN BRIEF: T Bailey adds to analysis team.(Brief article)
December 3, 2007... T Bailey has appointed Victoria Davies to its analysis team. Davies has worked for Tremont Capital Management, a hedge fund specialist, for 13 years. Before that she worked for Credit Lyonnaise Rouse. The appointment comes as T Bailey reports...

Neptune targets emerging markets.
December 3, 2007... Neptune Investment Management is launching two funds this week, the Neptune Latin America fund and the Neptune Asia Pacific Opportunities fund. The Latin America fund is managed by Felix Wintle, head of US equities and manager of the...

Commercial property funds suffer #48m outflow.
December 3, 2007... Funds investing in commercial property witnessed a #48m outflow of cash in October, the latest investment fund statistics from the Investment Management Association (IMA) reveal. Despite this outflow of funds the Specialist sector held on...

Credit Suisse equities chief unveils plans for global income fund.
December 3, 2007... Credit Suisse has unveiled plans for a global equity income fund next year following the arrival of Graham Ashby as the firm's head of UK retail equities. Ashby has improved Credit Suisse's range by cutting bank weightings and...

IN BRIEF: New Japanese index launched.(Brief article)
December 3, 2007... Standard & Poor's has launched a new Japanese index. The Japan Emerging Stock 100 index offers investors exposure to 100 companies listed on markets such as the Jasdaq, TSE Mothers, and OSE Hercules. These markets primarily list start-up...

IN BRIEF: Three funds are awarded A ratings.(Brief article)
December 3, 2007... Standard & Poor's has awarded new A ratings to the Martin Currie North American Alpha, SVM Continental Europe and SVM UK Opportunities funds. All three funds are run with a high conviction style, although Tom Walker's North American Alpha...

IN BRIEF: Pershing adds funds to Nexus.(Brief article)
December 3, 2007... Pershing, a subsidiary of the Bank of New York Mellon, has added funds run by Baring Asset Management, Henderson Global Investors, Neptune Investment Management, Scottish Widows Investment Partnership and T Bailey to its Nexus Funds...

Ex-BFS investors cleared to claim.
December 3, 2007... Former clients of BFS Investments can claim up to #48,000 in compensation for losses incurred in the split-cap scandal, the Financial Services Compensation Scheme (FSCS) has announced. BFS, which ran #250m in five investment trusts, was...

Henderson set for pan-Europe property launch.
December 3, 2007... Henderson Global Investors will launch the Henderson Horizon Pan European Property Equities Alpha Plus fund this week. The fund is a concentrated long/short equity portfolio that invests in listed property companies across Europe, with...

Societe Generale unveils onshore fund to lure British investors.
December 3, 2007... Societe Generale Asset Management (SGAM) launched an onshore mirror of its $5 billion (#2.4 billion) US Relative Value fund last week. The launch follows its failure to attract enough interest from British investors for the offshore...

IN BRIEF: Global market for rich investors grows.(Brief article)
December 3, 2007... The global market for wealthy individuals with over $1m (#490,000) of investable assets rose by 11% in 2006, according to International Financial Services London (IFSL). This was the biggest rise for seven years and brings the market to over...

UBS overhauls mandate on portfolio.
December 3, 2007... UBS has changed the mandate of its #375m Managed fund to turn it into a multi-asset portfolio. The UBS Global Allocation fund actively allocates its weighting between seven different sub-asset classes in the equity and fixed income areas. ...

Boards propose merger of three trusts.
December 3, 2007... The boards of three venture capital trusts (VCTs) have proposed a merger. Under the proposals, the assets and liabilities of the Pennine Downing Aim and Ethical Aim trusts will transfer into Pennine Downing Aim VCT 2 on January 16, 2008....

Exchange traded funds take off as Britain plays catch-up.
December 3, 2007... Exchange traded funds (ETFs) listed on the London Stock Exchange (LSE) have more than doubled in number this year. Last month they reached 100, compared with 46 listed at the start of 2007. One reason for this growth is the change in...

STRATEGY: Downswing stokes cautious stance.
December 3, 2007... Tighter credit availability and a deteriorating housing market will hit American growth - and the British economy is also set for a slowdown - so investors should take a cautious approach. A downswing of the global economy is underway,...

TRENDS: Emerging markets outshine the rest.
December 3, 2007... Optimism that emerging markets can weather a downturn in America had them outperforming their peers in October. But a correction last month left China and Hong Kong the main losers. Most global equity markets reported gains in October,...

Q&ASuperheroes enter fray with true conviction.
December 3, 2007... Chris Ralph, a partner at Maia Capital, talks to Adam Lewis about the recently launched boutique. Q: What tempted you and your Maia partners to leave Fidelity to create the new boutique? A: It was simply that all three of us (Jason...

TRAWLING FOR VALUE: A good catch.
December 3, 2007... Fishing for unloved stocks in turbulent times carries risks - but hefty rewards await the skilled and tenacious. So how do the experts tell whether a sector has value after it has sunk to the bottom? Cherry Reynard investigates. Buying...

TRAWLING FOR VALUE: Investment trusts.
December 3, 2007... The troubled areas in the investment trust market mirror the situation elsewhere, with a few exceptions. Japan has been knocked down and most of the major Japanese investment trusts are trading at double-digit discounts. Fidelity Japanese...

ANALYSIS: Shopping city tells real china story.
December 3, 2007... Shanghai is developing apace with more skyscrapers built in 15 years than exist in New York, but future rewards for China investors lie at street level, where domestic consumers hold sway. Jump out of a taxi on to the world-famous Bund...

CHANNELS: Expanding firm aims to attract younger clients.
December 3, 2007... Jim Grant, chief executive officer at Chartwell, answers this week's questions from Frances Hughes. Q. Can you explain the different strands of business within Chartwell? A. Chartwell is centred on financial advice primarily. We have...

AFI: Liontrust in favour as Lazard exits.
December 3, 2007... Kypros Charalambous was one of three AFI panellists to eject Lazard UK Alpha from their portfolios as he took his first chance to alter his firm's selections in the Aggressive index. Last month's Adviser Fund Index (AFI) rebalancing once...

FoFs: 'Sweet spot' helps fund to add value.
December 3, 2007... The T Bailey Growth fund slashed its exposure to emerging markets and adopted a neutral position in America - based on, says the joint manager, forecasts of a strengthening dollar. The #177m T Bailey Growth fund, which was launched in...

FOCUS: Four factors that work for investec.
December 3, 2007... Investec Asset Management has expanded its four factor process and achieved strong performance with its recent launches. But other funds have underperformed. Simon Hildrey reports. It should not be surprising, given its roots in South...

Fund Manager's Diary: 12-18 November 2007.
December 3, 2007... Monday It is the first day of what promises to be another fascinating visit to Asia. The taxi ride from Singapore airport brings home once again the breathtaking pace of economic development here. The skyline is crammed with construction...

COMMENT: How short-termist investors miss out.
December 10, 2007... It was refreshing to see Hendersons launch a global financials fund last month. The credit crunch that started in the summer has hit financials hard. But rather than launch a fund at a market peak, Hendersons realised the value of taking the...

FSA poised to review shorting rules.
December 10, 2007... The Financial Services Authority (FSA) may review the shorting techniques used by 130/30 funds in Britain. Ucits III guidelines dictate funds must use synthetic instruments, derivatives, to short a firm in the portfolio. However, the...

Hiscox subsidiary on brink of completing buyout.
December 10, 2007... Hiscox Investment Management (HIM), the investment management subsidiary of Hiscox, an insurance company, is to conduct a management buyout (MBO) to be completed on December 31. The new company will be called HIM Capital and it will have an...

Norwich Union unveils 'secure' cash product.
December 10, 2007... Norwich Union has launched a cash fund to provide investors with income and a high level of capital security. The Norwich Cash fund, managed by Richard Hallett at Morley, can invest in any type of cash or near cash assets. This includes...

IN BRIEF: Trust posts hike in value over 10 years.(Brief article)
December 10, 2007... Lowland investment trust has announced figures to the end of September. The net asset value of the #307m Lowland investment trust increased by 166% over 10 years. This compares with a rise of 35% in the trust's benchmark, the FTSE All-Share....

IN BRIEF: Online AGM link for trust investors.(Brief article)
December 10, 2007... Investors in the #128m JPMorgan Chinese investment trust will be able to ask questions at the company's annual general meeting, via a new interactive AGM online service. Investors can put their questions to the chairman, board directors and...

IN BRIEF: F&C governance director appointed.(Brief article)
December 10, 2007... F&C has recruited George S Dallas as director, corporate governance. Dallas joins F&C from Standard & Poor's (S&P), where he was managing director with responsibilities in analytical policy and research. At F&C he will report to Karina...

Fidelity shuffles staff on two funds.
December 10, 2007... Fidelity has appointed new managers for its #752m UK Growth and #271m UK Aggressive funds. Tom Ewing, an analyst at Fidelity for seven years, has replaced Carlos Moreno as manager of the Fidelity UK Growth fund. Aruna Karunathilake, also an...

Collins Stewart expands into fund management.
December 10, 2007... Collins Stewart, an independent financial services group listed on the London Stock Exchange, has launched a separate fund management business, Collins Stewart Fund Management. It has also rebranded its wealth management business, Collins...

Gartmore trust picked as Eaglet rollover option.
December 10, 2007... The board of the #94m Eaglet investment trust has selected the rollover option for shareholders. Following its refusal to support the proposals of Knox D'Arcy Investment Management to change the investment strategy of the small- cap...

IN BRIEF: Dawney Day unveils fund.(Brief article)
December 10, 2007... Dawnay Day Quantum is launching its second protected agricultural commodities fund next week. The fund has a term of five and a half years and offers 100% capital protection if held till maturity. Exposure is split equally between corn,...

IN BRIEF: Investec appoints 'frontier' manager.(Brief article)
December 10, 2007... Investec Asset Management has appointed Amr Seif as a portfolio manager to its frontier investing team, formerly the Africa investing team. He will be based in London and will report to Domenico Ferrini, investments director. Seif spent the...

IN BRIEF: Bank lowers rates by quarter point.(Brief article)
December 10, 2007... The Bank of England lowered interest rates by a quarter point last week to 5.5% amid signs the economy is slowing. The first cut since August 2005 was aimed at preventing the slowdown getting out of control. The Bank pointed to slower...

Banks declare US earnings recession.
December 10, 2007... Two leading investment banks declared last week that America has entered an earnings recession. Both Morgan Stanley and Merrill Lynch say that corporate profits have started to fall in America. Earnings are dropping, however they are...

Blue Sky targets demand for structured products.
December 10, 2007... Blue Sky Asset Management (BSAM), a new boutique firm specialising in structured products, is to launch its first funds next month. Established by Chris Taylor, chief executive, and Mark Dickson, product development and operations...

Merrill forecasts year of global rebalancing.
December 10, 2007... Next year will be one of global economic rebalancing, according to a study by Merrill Lynch.* "Imbalances have already started to unwind," says Alex Patelis, the investment bank's head of international economics research. There are...

STRATEGY: Strong profits keep equities buoyant.
December 10, 2007... Equity and bond markets posted strong returns despite the credit crunch - but investors should spread risk to maximise returns by diversifying and taking a manager-of-manager approach. While the increased volatility and concerns over the...

TRENDS: Region offers rewards despite risks.
December 10, 2007... The MSCI Emerging Markets index outperformed the World index by a fifth during 2007 - and emerging stocks still offer value for the shrewd investor despite a smattering of risky factors. Have emerging markets finally decoupled from those...

CONSUMING PASSION: Mapped out.
December 10, 2007... Latin America's wealth of natural resources, a hike in export demand, improved fiscal policy and burgeoning domestic economies add to the region's strength and entice investors with even more choice. Frances Hughes reports. The Latin...

CONSUMING PASSION: Changing political landscape.
December 10, 2007... In 1989 Brazil had its first directly elected president since 1960. Brazil overcame military rule in 1985 after more than half a century. Today Brazil's leader is Luiz Inacio Lula da Silva of the Workers' Party (PT), popularly known as Lula....

ANALYSIS: Fund flourishes on emerging diet.
December 10, 2007... James Harries, manager of Newton Global Higher Income, favours Asian and Latin American stocks over American and British - and returns from the two-year-old fund support his approach. Like America, Britain has a structural current account...

AFI: Cracks appear in bricks and mortar.
December 10, 2007... The panellists keep a wary stance over commercial property as the sector is hit by devaluations in the wake of the credit crunch - and demand is falling just as supply is increasing.The dangers of commercial property have become apparent over...

REVIEW: Revealing peep behind the hedges.
December 10, 2007... The author profiles more than 20 industry players to provide this insight - but how much of the time do hedge fund stars such as George Soros makes the right investment decisions? Katherine Burton Hedge Hunters Hedge fund legends...

FOCUS: Ton-up team at full throttle for retail.
December 10, 2007... Edinburgh-based Baillie Gifford heads for its century with only a small fraction of its #53 billion under management in retail funds. Adam Lewis reports on its efforts to increase retail business. Baillie Gifford will pass a landmark next...

Fund Manager's Diary: 26 November to 2 December 2007.
December 10, 2007... Monday Return from long weekend in Toulouse where I drove to see the Millau viaduct, which was impressive. Toulouse is an aviation city and the French media are full of reports about potential losses at Airbus due to the strength of the euro...

COMMENT: Infection or immunity in year of two halves.
December 17, 2007... In April one of the City's most respected economists wrote a column in Fund Strategy which got the credit crunch dramatically wrong: "The greater worry is that we will see wider indirect effects if other parts of the economy become...

Three investors gain control of trust.
December 17, 2007... Knox D'Arcy, Laxey and QVT have gained control of the board of the Eaglet investment trust. As reported in Fund Strategy on October 15, the investors, which hold a combined 38.7% of the trust's share capital, proposed the appointment of...

Value of New Star property fund takes a tumble.
December 17, 2007... The value of the #2.1 billion New Star UK Property trust has dropped by almost 18% since the end of July. Last week, in the first of its bi- monthly valuations, the value was cut by 8.2%. The drop in value of over the previous four months...

Pearl to rebrand RAM as separate business.
December 17, 2007... Resolution Asset Management (RAM) will be rebranded next year following the Pearl Group's purchase of the larger life insurance company last month. However, Pearl intends to keep and develop RAM's third-party business and will allow it to...

IN BRIEF: Barclays to unveil another tracker.(Brief article)
December 17, 2007... Barclays will launch a dual option version of its Super Tracker plan on January 1. The plan offers investors the choice of a six-year option linked to the DJ Euro Stoxx 50 index, or a five-year option linked to the FTSE 100. The options...

IN BRIEF: EEA changes fund names.(Brief article)
December 17, 2007... EEA Fund Management has changed the names of its CF Epic Insurance & General and CF Epic UK Equity funds, to EEA UK Financials and EEA UK Equity respectively. The funds' objectives and risk profiles are unchanged. Simon Shaw and Jonathan...

IN BRIEF: New manager for RLAM unit trust.(Brief article)
December 17, 2007... Royal London Asset Management (RLAM) has appointed Stephen Elliott as manager of its Exempt Property unit trust. Elliott was previously a fund manager in Morley Fund Management's segregated funds team. Before that he worked at Hunter Payne,...

IN BRIEF: Invista appoints London head.(Brief article)
December 17, 2007... Invista Real Estate Investment Management has consolidated the management of its #2.5 billion central London portfolio under Ben Du Boulay, who takes the role of head of central London offices. Du Boulay reports to Nick Montgomery and Harry...

Guinness plans green energy mirror.
December 17, 2007... Guinness Asset Management is to create an onshore mirror version of a $150m (#74m) alternative energy fund it manages for American investors. The Guinness Alternative Energy fund, structured as a Dublin-based Oeic, will replicate a fund the...

Ex-Fidelity man to run London & Capital trusts.
December 17, 2007... Stephen Westwood, head of investment trusts at Fidelity, has left to become director of investment funds at London & Capital. To coincide with his arrival the group announced that it will develop a range of listed investment funds, the...

New manager 'perfect match' for Old Mutual.
December 17, 2007... The #109m Old Mutual UK Select Equity fund will switch to an active discretionary approach with the appointment of Simon Murphy, manager of the #612.7m M&G UK Growth fund since April 2004. The Old Mutual UK Select Equity fund, launched in...

Q&A: Great expectations, but beware of value traps.(Interview)
December 17, 2007... Paul Ehrlichman, global chief investment officer of Brandywine Global, talks to Simon Hildrey. Q. Is America already in a profits and earnings recession? A. I agree that America is in a profits and earnings recession. It is natural...

STRATEGY: Crunch time stokes climate of fear.
December 17, 2007... Ructions in the financial markets threatened the real economy, emerging markets did well and politicians' focus on climate change prompted investors to pursue an environmental theme. From a thematic perspective, 2007 saw an evolution in...

TRENDS: New rules trigger explosion of funds.
December 17, 2007... The advent of 130/30 funds boosts managers' quest for alpha as shorting techniques enable them to express negative views with more conviction - and the range of products is set to widen in 2008. This year saw an explosion of new products,...

HALF-BAKED: Two halves.
December 17, 2007... Experts predicted strong growth in both developed and developing markets at the start of the year. Then the credit crunch hit halfway through 2007 and central banks acted to ease the pain. Simon Hildrey forages for crumbs of comfort. If an...

HALF-BAKED: Industry trends.
December 17, 2007... The multi-manager sector has expanded over the past few years. The sector has sold itself on the fact that there are constant changes in the managers of funds. Multi-managers argue they have the time and expertise to monitor this movement and...

ANALYSIS: Psigma contradicts recession bears.
December 17, 2007... James Abate, manager of the new American Growth fund, favours oil and technology in a fund that has outperformed since launch - and, he says, the market could yet hold surprises. It's the new conventional wisdom: America is sliding...

AFI: Indices stay afloat in turbulent times.
December 17, 2007... All three indices dipped in August when the storm struck but bobbed back - and the panellists barely wavered in their allocations - except for some modifications to bonds and property.The market was rocked by shifts and trends over the past...

FOCUS: HSBC tanker in gear for turnaround.
December 17, 2007... HSBC Investments aims to boost momentum and improve a "middling" performance by its retail funds by outsourcing to third-party managers. Adam Lewis finds out how it is succeeding. Given its size, if HSBC Investments were a ship it would...

Fund Manager's Diary: 3-9 December 2007.
December 17, 2007... Monday The FT arrives through the front door like clockwork at 5.30am and wakes me up. I read a great article by Tony Jackson on the way to work. He asks why equity markets are so high in the face of this credit crisis. It is a question I...