Fund Strategy articles from February 2006

Fund Strategy archives from February 2006

COMMENT: Greenspan's skill was riding his luck.
February 6, 2006... There was widespread anxiety about last week's handover of the chairmanship of America's Federal Reserve from Alan Greenspan to Ben Bernanke. It is hard to see why. Greenspan's main characteristic as chairman of the Fed from 1987 was luck -...

Liontrust to launch European arm as two forsake Polar.
February 6, 2006... Liontrust Asset Management is to establish a European equity business after poaching two European fund managers from fellow boutique Polar Capital Partners. James Inglis-Jones and Gary West, who co-managed a European market-neutral hedge...

HSBC poised to pay trail fees on supermarkets.
February 6, 2006... HSBC Asset Management is to start paying trail commission to intermediaries who buy their funds direct from fund supermarkets from March 1. At present the group only pays trail fees to selected advisers on an ad hoc basis and pays trails...

IN BRIEF: Jupiter boosts commission.
February 6, 2006... Jupiter is offering 4.25% enhanced commission during the Isa season on its four Jupiter Merlin funds, the Jupiter European, European Special Situations, Emerging European Opportunities, Income, High Income, Undervalued Assets and Financial...

IN BRIEF: BNP unveils fund.
February 6, 2006... BNP Paribas is launching a US mid-cap fund, which will be managed by Optimum Investment Advisors. The BNP Paribas Parvest US Mid Cap fund is available to British investors. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Free dealing on Henderson trusts.
February 6, 2006... Henderson is offering free dealing for purchases into its investment trust Isas and Peps from February 1 to March 30. The dealing charge is normally 1%. Henderson manages a range of 10 investment trusts, including the Lowland Investment...

IN BRIEF: AITC unveils new courses.
February 6, 2006... The Association of Investment Trust Companies is launching its 2006 training programme for advisers, including a new course on discount control. Courses will be held in London, Bristol and Edinburgh. Advisers can register by calling 020 7282...

IN BRIEF: D and E shares for Chrysalis VCT.
February 6, 2006... Chrysalis VCT is aiming to raise #25m through two new share classes, a general D-share class as well as an E-share class that will invest in art and antiques firms. The offer is set to close on April 5, with a minimum application of #3,000....

IN BRIEF: Ghosh joins ailing Newton Japan fund.
February 6, 2006... Newton Investment Management has appointed the ex-manager of the SG Japan fund to run its underperforming #44m Japan fund. Neiloy Ghosh, who left SG Asset Management last month (as reported in Fund Strategy, January 23), will replace former...

New objective sparks name change at Henderson.
February 6, 2006... The #164.5m Henderson Pacific Capital Growth fund is to be renamed after a recent change to its benchmark and investment objectives. The fund will now be known as the Henderson Asia Pacific Capital Growth fund, as the portfolio has widened...

Net sales recover but 2005 is poor for Isas.
February 6, 2006... Net retail sales of investment funds in 2005 were up significantly to #8.5bn, 73% higher than in 2004, according to the latest figures from the Investment Management Association. Total investment funds under management also rose last...

IN BRIEF: Witan offers deal on lump-sum Isas.
February 6, 2006... The #1.5bn Witan investment trust is offering free share dealing on lump sum Isa investments and Pep transfers until April 5. The charge is normally 1% and the trust will still be charging the required 0.5% government stamp duty. The trust is a...

IN BRIEF: Noble announces plan to raise #20m.
February 6, 2006... Noble Fund Managers is looking to raise #20m through an offer for subscription for the Noble Income and Growth VCT over the 2005/6 and 2006/7 tax years. Minimum investment in the fund is #5,000, with 4% commission payable to intermediaries who...

IN BRIEF: Aegon cuts fee for lump sums.
February 6, 2006... Aegon Asset Management is offering a reduced initial charge on all lump sum investments into its Ethical Corporate Bond, Ethical Equity, Global Bond and High Yield Bond funds until May 1. Standard initial charge is 5.5% on the Ethical Equity...

Study casts doubt on US slowdown.
February 6, 2006... Recently published fourth-quarter US GDP figures exaggerate substantially the extent of America's economic slowdown, according to Lombard Street Research. The headline figures from the Bureau of Economic Analysis certainly suggest a sharp...

Cofunds adds L&G bond to burgeoning portfolio.
February 6, 2006... The Legal & General Portfolio Bond is now available through Cofunds, as of last week. The bond provides a single premium life insurance wrapper and offers access to a range of over 200 funds, with no initial charge. The Cofunds range...

Research exposes sex bias towards managers.
February 6, 2006... Men and women take different approaches to managing money, according to a study of the American mutual funds industry by academics at the University of Cologne. But despite women taking less risk, following more consistent investment...

IN BRIEF: Dellar joins Insight team.
February 6, 2006... Insight Investment has appointed Paul Dellar as head of product development. Dellar was previously head of products and marketing at DWS Investments. He will manage Insight's team of product developers for the retail and institutional areas of...

Global ageing debate provides fuel for 3rd Investment Summit session.
February 6, 2006... Phil Mullan is an economist and business adviser. Author of The Imaginary Time Bomb: Why an Ageing Population is not a Social Problem (IB Tauris, 2000), he writes and researches on economic, demographic and business issues. He also lectures on...

Restructuring pays off for Scottish Investment Trust.
February 6, 2006... The Scottish Investment Trust has seen an upturn in performance since its restructuring in 2004. Statistics from the Association of Investment Trust Companies show that SIT is now eighth out of 25 trusts in the Global Growth sector for the...

Investors aim high when they seek out good company.
February 6, 2006... Despite being in its early stages, 2006 has so far been a good year for the FTSE Alternative Investment Market index. From the start of the year to January 30, the index in capital terms posted growth of 9%, compared with growth of just 5% for...

TRENDS: Platform on which to flourish or fall.
February 6, 2006... Following the bursting of the tech bubble, the pattern of fund sales looks patchy. But this may not be because investors are wary; it could be that more funds are being sold through platforms. It is now nearly three years since the...

TRENDS: Rule changes offer wider choices.
February 6, 2006... The distribution landscape is changing at a fast pace. But this is good news for investors and advisers alike - it offers new challenges as the range of products and channels increases. Every time there is a change to regulation the...

Q&A: Diversity offers promise of long-term rewards.(Interview)(Panel Discussion)
February 6, 2006... Andrew Jackson, manager of the Select Property fund at Standard Life Investments, talks to Sarah Godfrey. Q: You have taken #100m into the fund in the three-and-a-half months since its launch. Did you expect that? A: It's gone...

High season.
February 6, 2006... Investors have been cautious about Isas since the market plunged in 2000 and huge losses were incurred. But the market looks sunnier, so will sales rise or has the Isa been usurped by other avenues of investment? Dido Sandler investigates. ...

What the future holds for Isas.
February 6, 2006... In a few years' time, as self-invested personal pensions get into their stride, there will be a tax-protected season, or even a simple Sipp season, in place of the Isa season. These are as yet hypotheses. But given the rate of change in...

Top selling funds on FundsNetwork in 2005.
February 6, 2006... Top selling funds on FundsNetwork in 2005 1. Invesco Perpetual High Income 2. Invesco Perpetual Corporate Bond 3. Fidelity Special Situations 4. Invesco Perpetual Monthly Income Plus 5. Invesco Perpetual Income 6. Fidelity...

REVIEW: Flat vision lacks global perspective.
February 6, 2006... A clutch of essays focuses heavily on the idea that the world's economy is driven by American consumption. But it is production that fuels consumption and Asia fast is taking over the wheel. Assessing collections of articles by different...

ANALYSIS: Is it the end of the drugs bust?
February 6, 2006... Pharmaceuticals may have been the sick man of the stockmarket in recent years, but PhD-level pharmacist and Framlington Health fund manager Deane Donnigan has kept her nerve. It has been an ugly few years for pharmaceuticals. Drug stocks...

FOCUS: Widows aims for merry times ahead.
February 6, 2006... Scottish Widows Investment Partnership has delivered mixed results. But a fresh focus on property and some key personnel changes should brighten the outlook, writes Helen Burnett. Before the new year, most advisers and retail clients were...

FoFs: Henderson presents talented team.
February 6, 2006... Bill McQuaker has been a dynamic addition to Henderson's multi-manager team, having been called in to address poor returns. He is confident his team for all seasons will deliver the goods. Bill McQuaker joined Henderson's multi-manager...

Fund of funds performance data.
February 6, 2006... Two funds have moved six places in the Active Managed sector one-year rankings (funds of funds only) since December 19, 2005. According to data from Standard & Poor's, L&G Worldwide Trust has jumped from 25th to 19th in the list. The fund...

Fund Manager's Diary: 23-28 January 2006.
February 6, 2006... Monday The week begins with a dark, cold and muddy walk along a bridlepath to the station with my girlfriend, Jess. We catch the 6.30am train and spend the journey waking up and reading the papers. From Marylebone, I run to the Rathbone offices...

COMMENT: An opportunity and a challenge for IFAs.
February 13, 2006... The new Adviser Fund Indices launched last week provide both an opportunity and a challenge for investment advisers (see James Teasdale's cover story, page 20). In many ways they offer clear benefits to advisers but at the same time the indices...

COMMENT: Important differences between the Bric countries.
February 13, 2006... Several years after the term "Brics" was coined to refer to Brazil, Russia, India and China there are several funds investing in the large emerging market economies (see news analysis, page 12). But although there is some logic to such an...

Fettered fund of funds sales quadruple in last quarter.
February 13, 2006... After falling in the third quarter of 2005, net sales of fettered funds of funds were up significantly last quarter, nearly equalling sales of unfettered vehicles, according to the latest figures from the Investment Management Association....

HSBC gives retail investors access to PFI sector.
February 13, 2006... HSBC Specialist Fund Management is launching what it says is the first fund to allow retail investors to invest in public sector infrastructure projects. The HSBC Infrastructure Company, quoted on the London Stock Exchange, has a minimum...

IN BRIEF: Bennett to run Marlborough UK large-cap fund.
February 13, 2006... Marlborough Fund Managers is launching a UK Large Cap Growth fund on February 20. It will be managed by Greg Bennett, who joined the group earlier this month. Bennett was formerly the manager of the Neptune UK Equity and Neptune US...

IN BRIEF: FSA go-ahead for five Sicav funds.
February 13, 2006... Franklin Templeton Investments has received Financial Services Authority approval to launch five Sicav funds as well as 13 sterling distributing share classes within its Sicav range, which will seek UK distributor status. The Luxembourg...

IN BRIEF: Threadneedle wins A rating.
February 13, 2006... Standard & Poor's has assigned an A (new) fund management rating to the Threadneedle Pan European Accelerando and Threadneedle European Select funds. Both funds are managed by Phil Cliff. S&P lists Cliff's discipline and an effective team as...

IN BRIEF: Sterling launches distribution fund.
February 13, 2006... Sterling, the asset management arm of Zurich, has launched a distribution fund available via the group's Sterling bond. The asset mix of the fund is 40% high yielding equities, 40% gilts and other high income stock and 20% property. It is...

Study reveals risk of equity markets.
February 13, 2006... Over the last 100 years, equity markets with weak currencies have outperformed their stronger counterparts, but carry a higher degree of risk, according to the 2006 ABN Amro Global Investment Returns Yearbook. The yearbook, published by...

Investec rewards analyst with fresh challenge.
February 13, 2006... Investec Asset Management has announced the promotion of Kieran Roane to co-manager of the Monthly High Income fund. Roane takes joint responsibility for the fund with existing manager Chris O'Hare. Roane will also co-manage the offshore...

Glasgow unveils first open-ended offering.
February 13, 2006... Glasgow Investment Managers has announced the launch of its first open- ended fund. The Mackintosh High Income Oeic has a target net yield of 5.5%, with full exposure to the UK equity market. "It's a rather different animal to anything...

IN BRIEF: IBIS Capital launches VCTs.
February 13, 2006... IBIS Capital is launching two #15m venture capital trusts, which will focus on smaller private UK media companies. IBIS Media VCT 1 & 2 will invest up to #2m per holding. The group is also offering a discount of 2% of the offer price to...

IN BRIEF: FundsNetwork commission deal.
February 13, 2006... FundsNetwork is offering discounts and enhanced commission offers for advisers on a range of funds from Neptune, Gartmore, Aegon, Norwich Union, Jupiter, New Star, Credit Suisse, Schroders and SVM. The discounts are available on Isa and...

IN BRIEF: Japan launch from BNP Paribas.
February 13, 2006... BNP Paribas has launched a Japan mid-cap fund, which is available to British investors. The Parvest Japan Mid Cap fund will invest in 50 to 70 stocks and is managed by Sparx Asset Management. The fund is benchmarked against the Russell Nomura...

China fears subside on GDP revision.
February 13, 2006... China looks set to continue to confound expectations of an economic slowdown according to the latest China Quarterly Update from the World Bank. In an analysis of China's extensive GDP revisions in January, the Bank also concludes that the...

Collins Stewart focuses on East Europe property.
February 13, 2006... Collins Stewart Fund Management is planning to launch an Aim-listed property fund, which will invest exclusively in the property markets of four Eastern European countries. The Collins Stewart Eastern European Property fund will invest in...

Allianz finalises details of first onshore Bric fund launch next week.
February 13, 2006... Allianz Global Investors (AGI) has released further details of its Bric Stars Oeic, due to be launched next week. The launch, first reported in Fund Strategy on December 12, will create the first UK-domiciled Bric fund. The fund will be...

IN BRIEF: Joint workshops.
February 13, 2006... New Star, JPMorgan and Schroders are hosting a series of workshops for advisers in February and March, where representatives from the groups will be presenting on investment solutions for clients. Advisers can register by phone at 0800 727...

IN BRIEF: T Bailey change.
February 13, 2006... The T Bailey Growth fund has adjusted its bench-mark following its triennial review. The fund's bench-mark weighting in emerging markets, Japan and the Pacific Basin will rise from 20% to 30%, while its UK weighting falls from 50% to 40%. ...

Final summit session to consider the impact of global economic trends.
February 13, 2006... The final plenary session at Fund Strategy's Investment Summit in St Moritz on March 29-31 will draw together some of the main themes of the conference. It will consider how the trends discussed previously relate to the long-term performance...

Foreign investors drive Indian index past pain barrier.
February 13, 2006... India's benchmark stockmarket index surged to a record high above the psychologically important 10,000 mark last week, amid continuing optimism about the country's economic prospects. The closely watched Bombay Stock Exchange's 30-stock...

Bric markets emerge as rising stars in global universe.
February 13, 2006... With higher returns over the short term than the Japan and Japanese Smaller Companies sectors, the Global Emerging Markets sector has been the star performer of late. Indeed, average returns for Global Emerging Markets funds are higher than all...

TRENDS: You can't keep a bull market down.
February 13, 2006... Fallout from the Livedoor investigation in Japan hit stockmarkets worldwide in mid-January, but good gains were made in December and confidence swiftly rebounded for most markets. In mid-January the uncertainty that investors were familiar...

STRATEGY: Play the GTAA for a better balance.
February 13, 2006... Global tactical asset allocation could provide investors who want a bigger slice of the cake with a way to achieve better risk-adjusted returns in uncertain global investment markets. One month into 2006 and markets have already been...

Q&A: Car firms' upturn puts team in driving seat.
February 13, 2006... Keith Donaldson, co-manager of Martin Currie Japan Alpha fund, answers questions from Adam Lewis. Q: The fund took in #100m within its first two days of launch. What do you put this demand down to? A: I think there are a couple of...

Behind the wheel.
February 13, 2006... The Adviser Fund Indices aim to shine the spotlight on the engine of the investment industry by tracking the recommendations of a group of finely tuned financial experts. This will provide investors with a benchmark by which advisers' skills...

CHANNELS: Solid results score high for standalone firm.
February 13, 2006... Peter McGahan, managing director of Worldwide Financial Planning, is questioned by Helen Burnett. Q: How does your advisory service work, in terms of research? A: We have a two-pronged approach to our investment research. The first...

ANALYSIS: New star's star brims with promise.
February 13, 2006... Stephen Whittaker, contrarian head of investment at New Star has already started to reverse the fortunes of the ailing UK Growth fund and inspired confidence among financial advisers. Don't fret about a slump in house prices - and ignore...

FOCUS: Agi puts faith in grassroots revival.
February 13, 2006... Allianz Global Investors is hoping to catch the public imagination with the launch of its Bric fund, but the longer-term record of its established funds is patchy, as Will Jackson finds out. Allianz Group managed global assets of $1.4trn...

FoFs: Green helps F&C clinch top players.
February 13, 2006... Richard Philbin, fund of funds director for F&C Asset Management's range of multi-manager funds, uses a traffic light system to assess the suitability and stability of funds for investment. Football and traffic lights might seem an odd...

Fund of funds performance data.
February 13, 2006... There has been little change at the top of the Balanced Managed sector (funds of funds only) in the period since we last reviewed it (January 9). The New Star Balanced Portfolio and Managed Portfolio funds take the top two spots in the...

FUND MANAGER'S DIARY: 30 January to 5 February 2006.
February 13, 2006... Monday It is 6am and I am at the Sofitel Hotel Gatwick. Arrived on the last flight from Jersey yesterday. Flying to Zurich at 8am. I spend one week per quarter visiting investors - this is that week. By 9pm I'm on train to Geneva. Good...

COMMENT: Home bias hampers rewards of diversity.
February 20, 2006... Sunil Jagtiani's cover story on the "home country bias" has important implications. It shows that investors in Britain and elsewhere are being far too conservative in their asset allocation. By investing at home they are losing out on...

COMMENT: Fund managers more concerned with liquidity.
February 20, 2006... It is striking that fund managers seem far more concerned with liquidity than economic fundamentals. This month's Merrill Lynch global fund manager survey (see page 10) shows managers obsessing over the possible trajectory of interest rates....

Investec monitors BlackRock merger.
February 20, 2006... Investec Asset Management is scrutinising the merger between BlackRock and Merrill Lynch Investment Managers to see what effect it will have on its #211m European fund. Investec has outsourced the fund's management to Albert Morillo at...

Unicorn appoints Mears chief before flotation.
February 20, 2006... Unicorn Asset Management is to appoint Bob Holt, the current Mears Group chairman and former chief executive, as its chairman as a precursor to its floatation on Ofex in summer this year. At present the group manages two Aim venture capital...

HSBC unveils plans for cash Isa and tessa-only investors.
February 20, 2006... HSBC Investments has launched a new structured product for cash Isa and Tessa-Only Isa investors, the Guaranteed Capital Account. The plan combines income with participation in the FTSE 100 index. The plan is structured on a "50/50" basis....

IN BRIEF: Lake joins F&C as high yield director.
February 20, 2006... F&C Asset Management has appointed Andrew Lake as director, high yield. In his new role, Lake will report to Kevin Mathews, director, head of high yield. Mathews and Lake will co-manage several of the group's high yield bond products,...

IN BRIEF: Invesco set to unveil new look.
February 20, 2006... Invesco Perpetual will launch its new brand identity on April 6, following a branding review. As a result, the group's investment trust, institutional and defined contribution businesses will adopt the Invesco Perpetual name and a new logo...

IN BRIEF: Neptune drops IFAs' initial fee.
February 20, 2006... Neptune is waiving the 5% upfront charge for IFAs on two of its multi- manager funds, the Neptune MultiManager Growth and Neptune MultiManager Income funds until the end of the Isa season on April 5. The offer applies to all lump sum...

IN BRIEF: Study predicts rise in Isa sales.
February 20, 2006... According to research from Scottish Widows Investment Partnership, 78% of advisers are expecting Isa sales in the first quarter to be higher than the same period last year. Advisers see a rise of between 11 to 20% as most likely, with 18% of...

IN BRIEF: New manager joins Asian team.
February 20, 2006... Threadneedle has appointed Jan de Bruijn as a fund manager and analyst on its Asian equity team. De Bruijn will focus on the analysis of companies in Taiwan and South Korea and will report to Vanessa Donegan, head of Asian equities. He was...

IN BRIEF: T Bailey offers 4.75 commission.
February 20, 2006... T Bailey is offering up to 4.75% initial commission on lump sum investments into its Growth fund and Equity Income fund until April 30. Minimum lump sum investment in the fund is set at #1,000 and investments in the funds can be held through a...

Fund managers adopt cautious tone.
February 20, 2006... Fund managers have become much more cautious over the past month despite the lack of any market shocks, the latest Merrill Lynch survey states. Greater caution among global managers is apparent in several ways. Average cash balances rose...

Canter predicts healthy future for Reits in Asia.
February 20, 2006... The property market has only seen the beginning of the growth of real estate investment tusts in markets such as Hong Kong, according to Todd Canter, manager of the #40m Skandia Global Property Securities fund. Reits were launched in...

Capping could stymie interest in retail funds.
February 20, 2006... Richard Philbin, the head of fund of funds at F&C, says the increasingly common practice of capping retail funds means a growing number of investors will be excluded from investing in them. Philbin says: "The environment has changed....

Expulsion plan provokes mixed view.
February 20, 2006... Investment trust specialists are divided on the FTSE's recent proposals to expel investment trusts from the FTSE All-Share Index. The FTSE group closed initial talks on whether to adopt the FTSE All- Share ex Investment Trusts as its...

Income funds falter as other sectors flourish.
February 20, 2006... Lower yielding sectors outperformed in the last six months of 2005, which led to a more difficult time for trusts with an income objective, says Job Curtis, manager of the #661m City of London Investment trust. While the market as a whole...

IN BRIEF: Widows launches retails on platform.
February 20, 2006... Scottish Widows Investment Partnership has launched its retail range on the Interactive Investor platform. The Swip property trust, which was launched last November, as well as the 27 Swip Oeic funds are now available via the platform, while...

IN BRIEF: ABN Amro hires investment head.
February 20, 2006... ABN Amro has appointed Richard Duncan as head of investment strategy with immediate effect. Duncan was previously a senior investment analyst with ABN Amro in Hong Kong. Duncan will be responsible for overseeing strategic research and asset...

IN BRIEF: Survey reveals investor optimism.
February 20, 2006... A survey by Credit Suisse Asset Management, finds nearly three-quarters of intermediaries think multi-manager funds will outperform single manager funds over the long term. Half of those surveyed also say that demand for cautious managed...