Fund Strategy articles from February 2005

Fund Strategy archives from February 2005

Comment: Why you should act as your clients' CIO.(Chief information officer)
February 7, 2005... It is hard to assess the role of chief investment officer nowadays because the term is used in many different ways. Historically, the CIO played a key role in asset allocation: deciding the correct balance between different asset classes and...

Lang goes for the 'dull and boring'.(Liontrust Asset Management PLC)
February 7, 2005... Liontrust's Jeremy Lang has made minimal changes to his #1bn First Income fund portfolio despite its relatively poor performance over the past year. Lang, who reviews his investments annually, sold only seven stocks in his 62-strong...

JPMF loses its co-head of European equities.(JP Morgan Fleming)(Brief Article)
February 7, 2005... James Elliot has left his role as co-head of European equities at JP Morgan Fleming. Elliot worked on several funds, most notably the JPMF Europe and UK Dynamic funds, which he co-managed with Ajay Gambhir, head of high alpha funds in the...

Isa sales reveal loss of investor confidence.(Brief Article)
February 7, 2005... The fund management industry needs to take note of the decline in Isa sales, and do more to improve investor confidence, says Gordon Davidson, joint managing director of Jupiter Asset Management, following the publication of net Isa sales...

UK launch for Hartford.(Brief Article)
February 7, 2005... The American-based Hartford Group has confirmed its intention to launch into the long-term savings market in Britain with a unit-linked investment bond offering a capital guarantee. As first revealed in Fund Strategy, the product is expected...

In Brief: New MLIM fund for Lyttleton.(Brief Article)
February 7, 2005... Merrill Lynch Investment Managers has confirmed that, subject to regulatory approval, it intends to launch an absolute return fund, managed by Mark Lyttleton. The fund will adopt innovative devices and make use of Ucits III rules, such as...

In Brief: Redundancies from DWS parent.(Brief Article)
February 7, 2005... DWS Investments has confirmed that its parent company, Deutsche Bank, will be making 6,400 redundancies as part of a cost-cutting plan. The company will not confirm any details, including whether any jobs will be lost in the bank's asset...

In Brief: Six acqusitions for Neptune.(Brief Article)
February 7, 2005... Neptune Investment Management has acquired six Henderson Crosthwaite Investment Company subfunds from Carr Sheppards Crosthwaite. The funds will be incorporated into Neptune's existing fund range and add #12m to Neptune's funds under...

In Brief: New managers for Murray trust.(appointment of Gary McAleese and Anne Richards at Aberdeen Asset Management PLC)(Brief Article)
February 7, 2005... Aberdeen Asset Managers has appointed Gary McAleese and Anne Richards as co-managers of the #400m Murray Income Trust. The trust was previously managed by Ross Watson, who will join Martin Currie in March as a director. McAleese is currently...

In Brief: FundsNetwork head appointed.(David Dalton-Brown )(Brief Article)
February 7, 2005... Fidelity has named David Dalton-Brown as head of its FundsNetwork. He will be responsible for managing and expanding the fund supermarket, including Fidelity's plans to develop a full wrap service. Dalton- Brown, who is expected to join...

Balfour goes large as Japan slows.(Anja Balfour)(Framlington Japan fund)
February 7, 2005... Japanese large and mid-cap stocks will perform better this year during a slight slowing of momentum in the Japanese economy, says Anja Balfour, manager of the Framlington Japan fund. As a result, Balfour is moving the fund away from...

IMA lobbies Treasury over 'unfair' tax plan.(Investment Management Association)(Brief Article)
February 7, 2005... The Investment Management Association is lobbying the Treasury to consult with the funds industry over proposed changes to the taxation of authorised investment funds. This follows the announcement in last year's pre-Budget report that the...

In Brief: Friends Prov adds 15 fund links.(Friends Provident )(Brief Article)
February 7, 2005... Friends Provident is adding 15 funds from five investment managers to its Investment Portfolio bond. The funds cover several asset types from providers such as Artemis, First State, Invesco Perpetual, Merrill Lynch and New Star. The...

In Brief: Property funds are best-sellers.(Brief Article)
February 7, 2005... Sales of property funds have grown for seven consecutive quarters, according to Fidelity's FundsNetwork. Last year clients invested #30m in the three property funds - Aberdeen Property Share, New Star Property and Norwich Property - offered by...

Suite of funds for Barclays branches.
February 7, 2005... Barclays has launched five multi-manager funds aimed at its retail customers, offering flexible levels of investment up to #1m. The five options available are the Adventurous Growth, Balanced, Cautious, Growth and Income portfolios, all of...

Lloyd George mirrors five funds for UK Oeic.(Brief Article)
February 7, 2005... Lloyd George Management has launched five new Asian and emerging market funds into its UK Oeic. The five subfunds mirror existing Lloyd George funds and have been available to investors since February 1. The Asia Pacific and Developed...

In Brief: Discount on China fund.(Brief Article)
February 7, 2005... First State Investments is offering a 0.5% discount on the initial charge into its Greater China Growth fund. The offer reduces the initial expense to 3.5% and is available to investors up to April 5. The #22m fund is managed in Hong Kong by...

In Brief: UBS roadshows before launch.(Brief Article)
February 7, 2005... UBS Global Asset Management is running a number of roadshows before its Absolute Return Bond fund launch on March 21. The events take place around Britain from March 1-11. The UK Oeic will target returns of 2.15% above base rate and invest...

In Brief: L&C property appointment.(London & Capital appointed James Mulcare as property asset manager.)(Brief Article)
February 7, 2005... London & Capital has appointed James Mulcare as property asset manager. Mulcare will support Robin Hill, head of real estate funds, and Iain Keys, head of real estate investments. He will work on L&C's European Real Estate Fund, a pooled...

Japan is in bull phase, says Shiozumi.
February 7, 2005... Legg Mason's Hideo Shiozumi is forecasting at least a 20% a year rise in the Japanese stockmarket over the next three years. The manager of the Legg Mason Japan Equity fund says: "Following 15 years of being the globe's worst-performing...

Mid-cap index high fuelled by takeover activity.(Brief Article)
February 7, 2005... The FTSE 250 index hit record levels last week, beating the peak it reached in 2000. The index rose 19.6% last year and has continued its strong performance in 2005, eclipsing its former record on January 31. A rise in takeover activity and...

Chinese 'hard landing' will be no landing at all.
February 7, 2005... The Chinese economy may not be in for the hard landing many have predicted, according to Philip Ehrmann, head of Pacific and emerging markets at Gartmore. "China has seen no landing whatsoever over the last 12 months," says Ehrmann...

Element of expectation dampens effect of rate rises.
February 7, 2005... Last week was a significant week for anyone watching the American market. Many investors were paying close attention to the Federal Reserve decision on interest rates, as well as the January employment data. George W. Bush also revealed his...

Trends: Europe repays manager confidence.
February 7, 2005... Global Growth funds with a bias towards Europe and Asia did best as 2004 drew to a close, and better valuations mean markets on this side of the Atlantic should continue to reward in 2005. Analyst and fund manager asset allocation polls got...

Strategy: Earnings make up for gap in growth.
February 7, 2005... It is easy to blame poor European stockmarket performance on labour market rigidity, but it is worth bearing in mind that the interests of the investor and the economy are not always aligned. Disappointing gross domestic product growth,...

Channels: Extra help for a loyal band of customers.(Ray Milne)(Halifax Financial Services)(Interview)
February 7, 2005... Ray Milne, managing director of Halifax Financial Services, answers questions from James Teasdale. Q: How does Halifax Financial Services advise customers on investments and the possible funds available to them? A: The key to the...

Q&A: Three-pronged effect leads to consistency.(Interview)
February 7, 2005... David Winters, manager of the Franklin Mutual Shares fund, answers questions from Sarah Godfrey. Q: Mutual Shares sits in the IMA North America sector, but with only about half its assets in US stocks, is it really an American fund? ...

Crucial role?(Chief information officers)(Mutual fund industry)
February 7, 2005... It is said that a good chief investment officer, much like a good referee, is noticed only when things go wrong. In theory, they should be the ultimate decision-makers, but is their importance overstated and does their performance affect fund...

Managing without a CIO.(Chief information officer)(Mutual fund industry)
February 7, 2005... Asset managers that do not have CIOs tend to be boutiques. The lack of a CIO is usually attributed to their size and in some cases the culture of these firms. Nick Wells, product and communications director at Artemis, for example, says it...

What a CIO brings to an asset manager.(Chief information officer)(Mutual fund industry)
February 7, 2005... Quinton Price, CIO of equities at Gartmore, says part of the role is to represent clients' interests at an asset manager: "There should be someone at a firm who can ask any fund manager at any time any common- sense or technical question that...

Analysis: One touch and it all turns to gold.(Midas Capital Partners)
February 7, 2005... Midas Capital may be unfamiliar to you - most advisers seem unaware of it - but its name, and that of Simon Edwards, is already well known to some high net worth individuals. You've probably never heard of Simon Edwards. He toiled away...

Focus: A concentration of talent in the UK.(Schroders PLC)(Company Profile)
February 7, 2005... Schroders has some of the most high-profile names in the business and its research-driven approach to investment is key to its success, but not everyone is happy. Adam Lewis reports. Schroders is the seventh largest provider of retail...

FoFs: Conviction is the key to allocation.(Chatfeild-Roberts John)(Jupiter Asset Management Ltd.)
February 7, 2005... Over-diversifying for the sake of it is not John Chatfield-Roberts' idea of fund management - at Jupiter, being able to identify market and economic turning points is vital to its approach. Diversifying a fund of funds portfolio across...

Fund of funds performance data.
February 7, 2005... While it was ranked second the last time we examined the IMA Active Managed sector (December 13, 2004), the #488m M&G Managed Growth fund is now the top fund over one year, returning 17.85% to January 31, according to Standard and Poor's. ...

Fund Manager's Diary: 26 January-1 February 2005.
February 7, 2005... Wednesday Wake up with a start in the unfamiliar surroundings of a Parisian hotel with a day of marketing ahead of me. Fortified by a very un-Continental breakfast, I join my colleagues in our office on Rue Roosevelt, phone in to the team in...

COMMENT: Investment industry misses big picture.
February 14, 2005... The investment industry has a disturbing habit of ignoring the big questions and becoming obsessed with small ones. Developments that are potentially of enormous significance go virtually unnoticed while trivial changes are examined in great...

Britannic sets up high-alpha boutique.(Britannic Asset Management )(European boutique company)(Brief Article)
February 14, 2005... Britannic Asset Management is to set up its own high-alpha European boutique company to be run by former Neptune managers Barry Norris and Oliver Russ. Norris, who manages the Neptune European Opportunities fund, will remain at Neptune for...

Newton opening up Phoenix to retail investors.(Newton Investment Management)(Brief Article)
February 14, 2005... Newton Investment Management will open its Newton Phoenix fund to retail investors this week. The #34m fund, managed by Philip Collins, was previously available only to the group's private wealth management clients. The fund is a...

Liontrust hit by fall in earnings forecasts.(Liontrust First Growth fund )(Brief Article)
February 14, 2005... Jeremy Lang has attributed the recent underperformance of his Liontrust First Growth fund to generally muted reactions to shifts in earnings forecasts of UK companies. The Liontrust First Growth fund has now underperformed the index and...

In Brief: FTSE breaks 5000 barrier.(FTSE International Ltd.)(Brief Article)
February 14, 2005... The FTSE 100 index hit 5000 points last week and closed the week's trading at 5005. The last time the index closed above the 5000 mark was on May 31, 2002 finishing at 5,085.1 points. The all-time high for the index at close was reached on...

In Brief: Allianz Dresdner rebrands itself.(Allianz Dresdner Asset Management to Allianz Global Investors)(Brief Article)
February 14, 2005... Allianz Dresdner Asset Management in the UK has relabelled itself as Allianz Global Investors. From this week, all retail investment funds in Britain will be marketed under Allianz Global Investors brand. Investors and advisers are currently...

In Brief: BP dollar dividend up 26% on last year.(British Petroleum Company PLC)(Brief Article)
February 14, 2005... BP has announced a 26% increase in its fourth-quarter dollar dividend compared with the previous year. Total net income for the company in 2004 was $16.2bn (#8.7bn) compared with $12.9bn in 2003. The company bought back over $7.5bn of shares...

In Brief: New cash fund from DWS.(DWS RateBuster fund from DWS Investment )(Brief Article)
February 14, 2005... DWS has launched a rollover cash fund that will allow investors to access the cash offering in its DWS RateBuster fund without waiting for access points. Investors will be able to invest in the rollover cash fund all year, while the DWS...

In Brief: ITrak software for intermediaries.(1st Software)(Brief Article)
February 14, 2005... Software firm 1st has launched a new version of its iTrak wealth management software. Users of the program will have access to the Financial Express Portfolio Scanner, prices and factsheets as well as asset allocation administration...

In Brief: F&C boosts GSRI team.(F and C Management Ltd. appoints Ignacio Fravega for Governance and Socially Responsible Investment )(Brief Article)
February 14, 2005... F&C has appointed Ignacio Fravega to its Governance and Socially Responsible Investment team. Fravega, who joined last week, was previously a Latin American analyst with Salomon Smith Barney. Fravega will provide the group with greater depth...

Henderson TR Pacific changes tack.
February 14, 2005... The board of the Henderson TR Pacific investment trust is planning to change the fund's investment objective after a year of underperformance. The board will seek shareholder approval to change the fund's primary investment objective...

Scottish American trust raises dividend by 6.2%.(Scottish Amicable Investment Managers Ltd.)(Brief Article)
February 14, 2005... The Scottish American investment trust (Saints) has announced a dividend payment for 2004 which is 6.2% up on the previous year. Its improved performance follows a change of management contract at the start of last year. In the year...

Investec to run funds for MGM Assurance.
February 14, 2005... MGM Assurance has appointed Investec Fund Managers to manage its unit trust range from next week. After carrying out a full review, MGM management decided it will no longer provide unit trusts and has sold the range to Investec. MGM's...

In Brief: Rathbones funds get Zurich access.(Brief Article)
February 14, 2005... The Rathbone Income fund and the Rathbone Special Situations fund are now available through Zurich's Sterling product range, as a step towards widening Rathbone's distribution network. Advisers can invest in the funds, managed by Carl Stick,...

In Brief: Hallen lands MoM role at Skandia.(Skandia Investment Management appoints Raj Hallen)(Brief Article)
February 14, 2005... Skandia Investment Management has appointed Raj Hallen as a fund manager for its range of multi-manager products. For the last four years, Hallen co-ran the two multi-manager funds at Premier Asset Management, including the Selector Balanced...

In Brief: Edinburgh trust sees assets rise.(Edinburgh Small Companies investment trust )(Brief Article)
February 14, 2005... Net assets in the #77m Edinburgh Small Companies investment trust rose 12.3% last year, according to the company's interim results. The trust, managed by Standard Life Investments since 2003, also outperformed its benchmark, the Extended...

Generic drug companies to grow 20%.
February 14, 2005... While large-cap pharmaceutical companies are expected to grow by 5-7% over the next five years, generic drug companies are likely to grow 20%. This is the forecast of Sanjay Patel, stockpicker for the Pictet Generics fund. Basing their...

First State launches Aim venture capital trust.(First State Investments )(Brief Article)
February 14, 2005... First State Investments announced the launch of the First State Investments Aim venture capital trust last week, the first such product to be managed by the group. Paul Jourdan, head of UK equities at First State, will manage the trust's...

Close to take charge of Murray vehicles.(Murray venture capital trusts)
February 14, 2005... Close Venture Management has agreed to take over the management of the Murray venture capital trusts (Murray VCT, VCT 2, VCT 3 and VCT 4) from Murray Johnstone, a subsidiary of Aberdeen Asset Management. The failure of a management...

In Brief: Insight to run CTFs for mutual.(Insight Investment Management Ltd.)(child trust fund)(Brief Article)
February 14, 2005... Insight Investment is to provide a range of funds as lead investment partner to the Children's Mutual's child trust fund products. The Foundation Growth fund FTSE All-Share index tracker will be used as a vehicle for the Children's Mutual...

In Brief: Fund discounts from Henderson.(Henderson Global Investors )(Brief Article)
February 14, 2005... Henderson Global Investors is offering a 1% reduction on front-end costs for all equity funds and discounting 0.5% of the initial charge on its fixed income fund range. This will typically reduce total front- end costs from 5% to a 3%...

In Brief: Changes afoot at merged F&C.(F&C Asset Management )(Brief Article)
February 14, 2005... F&C Asset Management has confirmed it is shortly to announce several fund changes following the merger of F&C and Isis Asset Management last year. This is likely to include a series of fund mergers. The minimum investment in its Latin...

Evershed warns of global slowdown.
February 14, 2005... In spite of a positive outlook for the British stockmarket in the first half of 2005, a slowdown in growth in the second half of the year remains possible. This is the view of Patrick Evershed, manager of the New Star Select Opportunities...

Opinions split on future direction of the dollar.
February 14, 2005... The dollar is nearing the bottom of its cycle and should begin to strengthen this year, according to Komal Sri-Kumar, manager of the SG Asset Management American Growth fund. Kumar is forecasting the dollar to fall to as low as $1.95 at...

HSBC Bank reveals in-branch fund menu.(Brief Article)
February 14, 2005... HSBC Bank has announced the fund names to be offered in its multi-tie range. The funds will be available to customers from the bank's 1,700 branches across Britain from February 28. Customers will be able to access 18 different funds...

Commodity prices likely to continue on upward trend?
February 14, 2005... Many of the world's commodity prices saw substantial increases in 2004. Most notably oil, gold, copper and platinum all hit multi-year highs and coal and iron ore prices have continued to increase relentlessly. Is this just a peak in a...

Trends: Accession builds a firm foundation.
February 14, 2005... The good news may already have been in the price of Central and Eastern European markets by the time they joined the EU, but fund managers have benefited from a strong run since. Long-term factors that propelled the powerful performance...

Strategy: Outsourcing - a double-edged sword.
February 14, 2005... Outsourcing can cut business costs substantially and encourages globalisation. But detractors highlight negative impacts on local economies, hidden costs and the stunting of innovation. Growth in outsourcing has been accelerating over the...

Q&A: Attractions of emerging markets remain strong.(Interview)
February 14, 2005... Philip Ehrmann, head of Pacific and emerging markets at Gartmore, speaks to Sarah Godfrey. Q: Which markets do you currently favour? A: Brazil, Turkey, Thailand and Malaysia. Brazil and Turkey are economies where macroeconomic...

Channels: Top performers are not always best for a client.(Mark Underwood)(Torquil Clark)(Interview)
February 14, 2005... Mark Underwood, head of private clients at Torquil Clark, answers questions posed by James Teasdale. Q: Torquil Clark has recently acquired two companies as part of its expansion programme. How do they fit in with the company's various...

India vs China.(in economic conditions)
February 14, 2005... If India can follow China on a path of rapid economic growth it would transform the global investment map. But although the two countries are developing rapidly Daniel Ben-Ami cautions against equating the two. Investors worldwide must...

Funds investing in India.
February 14, 2005... The conversion in December of the Deutsche Latin American Companies investment trust to the New India investment trust, managed by Aberdeen, is a sign of growing investor interest in India (Fund Strategy November 8, 2004). Institutional and...

Hopes focus on middle class.
February 14, 2005... Much of the hope for the investment potential of China and India is placed in the middle classes of the two countries. Experts acknowledge that both countries still have enormous rural and poor urban populations. But the spectre of an affluent...

Analysis: A dream team for the isa season.(Invesco Perpetual)
February 14, 2005... The near-16% return enjoyed by investors in Invesco Perpetual's Distribution fund so far may not be down to the bond portion of the fund, but its managers are confident for the future. Invesco Perpetual's Distribution fund is a year old...

Focus: Wind of change ruffles few feathers.(Britannic Asset Management)
February 14, 2005... Glasgow-based Britannic has seen patchy performance across its range of funds. But can its aim to become a 'multi-specialist asset manager' improve the picture? Adam Lewis investigates. Britannic Asset Management is experiencing hard...

FoFs: Ready to stand by his convictions.(M and G Managed fund)
February 14, 2005... Unlike others in the Balanced Managed sector, David Jane, who runs the M&G Managed fund, is not afraid to place substantial bets on the funds or managers he believes in. Both fettered and unfettered funds can be said to have their own...

Fund of funds performance data.
February 14, 2005... The Fitzwilliam Multi Manager trust was top of the Balanced Managed sector again this month. The #67m fund returned 16.3% over one year to February 7, slightly up on last month's return of 15.7% over one year. The fund, managed by Sharon...

Sales: Wary investors stay close to home.(Fidelity Investments)
February 14, 2005... The top-selling funds on Fidelity's FundsNetwork supermarket, in common with Skandia and Cofunds, betray an insularity as well as an income bias on the part of British investors. This week's table of the top 20 selling funds in 2004 on...

Fund Manager's Diary: 1-7 February 2005.
February 14, 2005... Tuesday Up early this morning for my regular phone hook-up with my resources colleagues in Sydney. The time difference is a curse, but having people on both sides of the world allows us to cover so much of the market. The Australian base is...

COMMENT: What drives shares? (Don't answer yet).(equity returns)
February 21, 2005... Recent research from the London Business School makes stunning if perhaps disturbing reading for those involved in investment.* Perhaps that is why it has received far less attention than it deserves. The three professors' research...

Rule change sees wave of launches.
February 21, 2005... The first two funds of an expected wave of protected derivative-based Ucits III funds were announced last week by Norwich Union and Clerical Medical. The launches will follow a change in Financial Services Authority rules on March 1,...

VCTs race to meet targets by end of tax year.(venture capital trusts )(Brief Article)
February 21, 2005... With some new venture capital trust entrants raising only a fraction of their subscription targets so far, there is a danger of a number of them being pulled from the market. This is the view of David Thorp, investment manager of the...

Witan trust rises after change to mandate.(Witan investment trust )
February 21, 2005... The Witan investment trust has reported a 7.6% increase in net asset value and a 9.6% rise in its share price, according to its unaudited preliminary results for the year ended December 31. The #1.45bn trust changed its investment mandate...

In Brief: Fidelity adds 12 funds to DC list.
February 21, 2005... Fidelity Investments has added 12 funds to its Fund Partner Programme. The programme, designed for Fidelity's defined contribution clients, now includes five equity and bond funds from Newton, three Baillie Gifford equity funds and four cash...

In Brief: Rowan finalises 75-fund panel.(Rowan & Co Capital Management )(Brief Article)
February 21, 2005... Rowan & Co Capital Management has finalised its recommended panel of funds. There are currently 75 funds on the list, which are broken down into core, satellite, substitute and suspended holdings. Those on its core and satellite list are...

In Brief: Discounts from Invesco Perpetual.(Brief Article)
February 21, 2005... Invesco Perpetual is offering a 2% discount on new Isa investments as well as on Pep and Isa transfers until the end of the tax year. The group is also offering 1.75% off for new lump sum investments and monthly savings plans, made outside of...

In Brief: DWS outsources administration.(DWS Investment )(Brief Article)
February 21, 2005... DWS Investments plans to outsource its UK retail transfer agency business to International Financial Data Services, a joint venture between State Street and DST Systems. The transfer, taking place this week, will see the administration of the...

In Brief: Chase de Vere adds to panel.(Brief Article)
February 21, 2005... Chase de Vere has added the Schroder S&P Strategic Balanced Portfolio, one of two Schroders multi-manager funds launched in September, to its recommended panel. The #39m fund, managed by Andrew Yeadon, has returned 12.33% since launch,...

Britannic chooses JPMF trust as sole rollover option.(JP Morgan Fleming)
February 21, 2005... Britannic has selected the #1.2bn JP Morgan Fleming Mercantile investment trust as the sole rollover option for shareholders in the Britannic Smaller Companies trust. If shareholders approve the proposal next month, they will be given the...