Fund Strategy articles from February 2008

Fund Strategy archives from February 2008

COMMENT: Blame imbalance on the West, not Asia.
February 4, 2008... The comment pages of the Financial Times included a rare moment of humour - in a geeky economist way - last week. Ricardo Hausmann, the director of Harvard University's Center for International Development, observed at the start of an article:...

Cazenove plans two absolute returns.
February 4, 2008... Cazenove Capital Management has announced plans to launch two absolute return targeted funds this year. Robin Minter-Kemp, managing director of Cazenove Capital, says the funds will be headed by Tim Russell and Chris Rice, who both joined...

Fidelity shuffles managers on investment trust.
February 4, 2008... The board of Fidelity European Values investment trust (FEV) has announced that Sudipto Banerji will become co-manager of the trust in April alongside Tim McCarron. Banerji, who previously headed the Fidelity Funds Global Industrials Fund...

UBS strategy aims to lift fund performance.
February 4, 2008... UBS Global Asset Management is aiming to turn around the performance of its #60m Global Optimal fund, following last year's recruitment of a new head of global equities. Nicholas Melhuish joined the group in October from...

IN BRIEF: Baring poised to unveil hedge.(Brief article)
February 4, 2008... Baring Asset Management is launching a hedge fund, the Baring Asia Strategic fund, subject to regulatory approval. The multi-strategy equity fund, managed by Adrian Au, is expected to be launched on March 1, and will be available to...

IN BRIEF: Alliance Trust fills key role.(Brief article)
February 4, 2008... Alliance Trust has appointed Edward Troughton as managing director, asset management distribution. He will play a key role in the development of its new British asset management business, Alliance Trust Asset Management. Troughton joins from...

Axa takes action to protect property funds.
February 4, 2008... Axa Investment Management has introduced deferrals for redemptions for its 125,000 investors in the Axa Life Property and Axa Pension Property funds. From last week redemptions will be delayed by six months to protect the funds from the...

Managers warned on use of Ucits III.
February 4, 2008... The Financial Services Authority (FSA) expresses concern at the increasing use of the new Ucits III powers, especially the use of derivatives, in its annual Financial Risk Outlook published last week.* There is a potential lack of back and...

Bestinvest points finger at worst performers.
February 4, 2008... Fidelity, Schroders and Scottish Widows Investment Partnership (Swip) all fared badly in this year's Bestinvest Spot the Dog report, which names the worst-performing funds in 2007. Schroders topped the list as the worst-performing group,...

IN BRIEF: New name for Framlington fund.(Brief article)
February 4, 2008... The #119m Axa Framlington Managed Growth fund will be renamed the Axa Framlington Global Opportunities fund on February 18. The name change is intended to better reflect the fund's investment objective and policy, as well as the investment...

Leveraged and short ETCs to list.
February 4, 2008... ETF Securities is launching the first leveraged and short exchange traded commodities (ETCs) on the London Stock Exchange. Of the 66 new ETCs, half are leveraged, while the other half are short, or inverse, ETCs. Most of the new ETCs track...

Friends Provident may sell 52% stake in F&C.
February 4, 2008... Friends Provident's majority stake in F&C Asset Management could be up for sale, it was announced last week. As part of a strategic plan by Friends Provident to focus solely on life cover and pensions, the sale of its 52% stake in F&C is...

International Monetary Fund lowers growth forecasts.
February 4, 2008... The International Monetary Fund (IMF) has significantly downgraded its forecasts for global growth in 2008 in its latest quarterly estimates. Advanced economies are expected to be hit harder than developing ones. Global growth is...

IN BRIEF: Insight bolsters research team.(Brief article)
February 4, 2008... Insight Investment is strengthening its qualitative and quantitative equities research team with three new analysts. Craig Pennington, an equity analyst, and Julien Cuisinier, a quantitative analyst, joined last month. Kunle Akintoye joins...

Funds take another monthly hit but confidence rises.
February 4, 2008... The Investment Management Association's investment funds statistics for December show yet another month of outflows from British domiciled funds. The month saw net retail outflows totalling #377.4m as investors continued to withdraw money...

STRATEGY: Outlook demands flexible approach.
February 4, 2008... Weak market sentiment offers managers the chance to turn negative prospects for a company into returns for clients and, despite the uncertainty, portfolio flexibility is key to survival. As far back as the autumn of 2006, it appeared that...

Q&A: Fund aims to harvest good long-term yields.(Interview)
February 4, 2008... George Lee, manager of the CF Eclectica Agriculture fund, answers questions from Tomas Hirst. Q. Which companies and regions does Eclectica predict will have the greatest growth in terms of share price in 2008? A. In the short term,...

TRENDS: Fog shrouds route to best returns.
February 4, 2008... Fund managers' views on American investments are shrouded in a fog of uncertainty as the market turmoil persists - but looking at industry weightings alone will not provide any clarity. Last year was characterised by overperformance and...

OUT OF STEP: Step change.
February 4, 2008... The world is increasingly caught between an Asia that is keen to produce but reluctant to consume and an America where the reverse is true. Daniel Ben-Ami examines whether recent market volatility is an expression of this imbalance. During...

OUT OF STEP: Decoupling/recoupling.
February 4, 2008... One of the most heated debates on the economy and markets is on "decoupling". The term is misleading, and used in more than one way, but it is essentially about the extent to which Asia could cope with an American slowdown. Some have a more...

OUT OF STEP: A contrary view.
February 4, 2008... Although most economists argue a global economic rebalancing is necessary there are some prominent dissenters. Typically they argue that the headline figures for the American trade deficit exaggerate the true extent of imbalances. According to...

OUT OF STEP: A simple model.
February 4, 2008... To understand the concept of rebalancing and its consequences it is best to start with a deliberately over-simplified model of the global economy. Let us assume there are only two countries in the world: call them America and China. America is...

ANALYSIS: Get ready to revisit booming India.
February 4, 2008... India's stockmarket recently fell 10% in one day but it was only a correction, says Arun Mehra, manager of Fidelity India Focus, and the country's growing prosperity suggests he may be right. It was panic outside Jeejebhoy Towers, India's...

REVIEW: Shock therapist shines light on USSR.
February 4, 2008... A former prime minister under Boris Yeltsin skates over the painful transition to a capitalist economy following the collapse of the Soviet Union. But his analysis is both compelling and lucid. Yegor Gaidar is known for having overseen some...

AFI: A little fine-tuning, but no knee-jerks.
February 4, 2008... Panellists react to the market volatility by, among other tactics, reducing commercial property exposure and increasing weighting in fixed interest. Changes of direction are not on the agenda. Advisers look set to inject more caution into...

FoFs: Fund shifts weights to stay strong.
February 4, 2008... Sarah Arkle and Alex Lyle of Threadneedle Equity & Bond adjust the fund's weightings in a balancing act to meet market conditions. The fund's next move will be in favour of equities. The #668m Threadneedle Equity & Bond fund is a fettered...

FOCUS: Watershed year revives Henderson.
February 4, 2008... Henderson Global Investors landed on firmer ground after "an up-and- down time" in the past few years. Its market share in the core British retail sectors grew 500% in 2007, writes Adam Lewis. The last time Fund Strategy profiled Henderson...

Fund Manager's Diary: 10-16 January 2008.
February 4, 2008... Thursday Previous contributors to this section of the magazine discussed their jet-set lifestyles to various destinations such as France, Hong Kong, India and Singapore. It is 9.30am on a breezy Thursday morning and I am walking up the A5 near...

COMMENT: A salutary look at productivity trends.
February 11, 2008... It seems a world away but the late 1990s discussion of the "new economy" is worth revisiting in the light of recent data. Looking at trends in productivity growth helps discern the direction in which the American economy, and possibly the...

Schroders fund aims for total return.
February 11, 2008... Schroders has expanded its range of equity income funds with the launch of a total-return version of its #971m Income fund. The Schroder UK Alpha Income fund was soft-launched in December and is co-managed by Ed Meier and Vincent...

Invesco and JO Hambro tune European strategies.
February 11, 2008... Invesco Perpetual has announced plans to merge two of its European funds, while JO Hambro Capital Management (JOHCM) has reopened its two European funds to new investments. Invesco will merge Stephanie Gerrard's #996m Invesco Perpetual...

Skandia stands by its Best Ideas managers.
February 11, 2008... Skandia Investment Management has defended the 10 underlying managers in its UK Best Ideas fund despite its recent underperformance. In the 12 months to February 4, the #240m Skandia IM UK Best Ideas fund fell by 11.95% against a sector...

IN BRIEF: Bank cuts rates by quarter point.(Brief article)
February 11, 2008... The Bank of England cut interest rates by a quarter point last week to 5.25%. The cut was widely expected because of continuing fears of a fall in economic growth and the sharp rate cuts of 125 basis points by America's Federal Reserve. The...

IN BRIEF: Allianz launching onshore eco-fund.(Brief article)
February 11, 2008... Allianz Global Investors will launch an onshore mirror version of its Global EcoTrends fund this week. Allianz says that the fund will be managed by Bozena Jankowska and will focus on the three key areas of eco energy, pollution control and...

Fidelity goes into Asia with high conviction.
February 11, 2008... Fidelity is set to launch its Asian Aggressive Fund next week. As Fund Strategy reported last month (January 7) the fund will be managed by David Urquhart, who joined Fidelity in 1996. Urquhart previously managed the Fidelity Funds (FF)...

Investors vote to widen fund remit.
February 11, 2008... Investec has announced that investors in its Global Technology fund have overwhelmingly voted to expand the fund's remit. The fund will be renamed the Investec Global Dynamic fund and will be managed as an onshore mirror of the offshore...

JP Morgan unitholders approve funds merger.
February 11, 2008... The JPM UK Strategic Equity Income fund and the JPM UK Equity Income fund have merged after a 95% approval of unitholders for the plan. The move follows the renaming of the JPM UK Strategic Value fund as JPM UK Strategic Equity Income...

IN BRIEF: Group to exploit property discounts.(Brief article)
February 11, 2008... Managing Partners Limited (MPL) has launched the British Property Opportunities fund, a property portfolio that intends to take advantage of the deep discounts appearing in the sector. Property funds suffered large outflows in November and...

Investors back funds of funds amid turmoil.
February 11, 2008... Funds of funds remain popular with investors amid market turmoil, according to the Investment Management Association's quarterly statistics published last week. Funds under management in funds of funds at the end of the fourth quarter of...

Premier looks for absolute returns.
February 11, 2008... Premier Asset Management has announced that it will launch a global absolute return fund following the appointment of Michael Jennings from Morley Fund Management as senior investment manager, global equities. The firm has also unveiled the...

Insight products enable investors to hedge risk.
February 11, 2008... Insight Investment is to launch a series of derivatives-based products for the retail market. Abdallah Nauphal, chief executive and chief investment officer of Insight, says the derivative products will enable investors to hedge their...

IN BRIEF: S&P launches India index.(Brief article)
February 11, 2008... Standard & Poor's, (S&P) CRISIL and KLD Research & Analytics, launched the S&P ESG India index last week. It is the first investable index of companies whose business strategies and performance demonstrate a high level of commitment to...

Manager pinpoints this year's engines of growth in Asia.
February 11, 2008... Financials and property are where Asian growth will come from this year says Mike Kerley, manager of the #226m Henderson Far East Income trust. However, India and China barely feature in his portfolio. For more than a year Kerley has had...

Trimmer Norwich fund chases growth.
February 11, 2008... The #240m Norwich UK Equity fund has undergone restructuring since Chris Murphy took over as manager 18 months ago. His aim was to create a higher conviction fund. Murphy's first decision when he became manager in June 2006 was to sell...

SG American Growth plays waiting game for large cap rewards.
February 11, 2008... Komal Sri-Kumar, manager of the #136m SG American Growth fund, says he is waiting for the market to catch up with his conviction in larger company stocks. He altered the strategy of the fund six months ago to fully back his conviction in...

IN BRIEF: Deutsche Bank ETFs list on LSE.(Brief article)
February 11, 2008... Db x-trackers, Deutsche Bank's exchange traded fund (ETF) business, last week listed the first frontier market ETFs on the London Stock Exchange. One of the funds tracks the FTSE Vietnam Index. The other tracks the S&P Select Frontiers...

IN BRIEF: Company hires product specialist.(Brief article)
February 11, 2008... HSBC Multimanager has appointed Catherine Doyle as a senior product specialist for the Europe, Middle East and Africa region. Based in London, Doyle reports to James Hughes, global head of business development at HSBC Multimanager. She joins...

Expert advises caution on investing in Ukraine.
February 11, 2008... Ukraine's bid to join the World Trade Organisation (WTO) was approved last week by the organisation's general council, clearing the final obstacle to its accession. The decision was enthusiastically greeted by Viktor Yushchenko, the...

Inflows pose risk to Indian economy.
February 11, 2008... Strong capital inflows pose substantial challenges to India, according to a report by the International Monetary Fund (IMF). They are causing the rupee to appreciate, raising concerns about inflation and could undermine India's...

Cofunds launches service for wealth managers.
February 11, 2008... Cofunds has launched a service for wealth managers to make it easier for them to include funds in private client portfolios. Cofunds Institutional Services provides execution, settlement, reconciliations and custody services to wealth...

Bargain hunt as opportunity knocks for recovery funds.
February 11, 2008... The sharp drop in equity valuations last month, alongside increasingly negative sentiment towards property and financials, is leading some fund managers to focus on recovery. As reported in Fund Strategy two weeks ago (January 28, page 7)...

STRATEGY: Nimble investors can exploit panic.
February 11, 2008... Equity markets last month delivered some of their weakest performances for decades. However, despite fears about the impact of an American slowdown, the outlook for equities is promising. The deteriorating economic and financial backdrop...

TRENDS: Choice of tools offers more security.
February 11, 2008... Exchange traded funds offer many benefits, including low costs, simple trading and greater access to a wide choice of strategies and markets - especially useful in troubled times. Exchange traded funds (ETFs) and exchange traded...

Q&A: Number crunchers seek quality for trimmer fund.(Interview)
February 11, 2008... Ed Meier and Vincent Vinatier, co-managers of the Schroder UK Select Equity fund, talk to Adam Lewis. Q. You took over the fund from Tom Carroll in November 2006, what changes did you initially make? A. VV: We weren't comfortable with...

HARD CURRENCIES: Emerging strength.
February 11, 2008... The emerging market debt universe has expanded fast as these countries' economies mature and their fiscal policies strengthen them further. Will Jackson examines the implications of the dramatic growth in this asset class. The emerging...

ANALYSIS: How to excite a bond fund manager.
February 11, 2008... Investors' confidence in Paul Causer, manager of the #2.2 billion Invesco Corporate Bond fund, is paying off with ballooning spreads and new opportunities resulting from the credit crunch. Now is the time to switch into corporate bonds....

CHANNELS: Skilled advisers offer comprehensive service.
February 11, 2008... John Porteous, director of private client services at BDO Stoy Hayward, is questioned by Simon Hildrey. Q. You joined BDO Stoy Hayward 18 months ago. What attracted you? A. I was attracted to BDO Stoy Hayward Investment Management...

AFI: Dog-free portfolios look to benefit.
February 11, 2008... Rate cuts in America and global money flooding into London may lead to new market highs this year, says one adviser. And selective investors could be best placed to take advantage. In another turbulent week for the FTSE 100, early gains...

FoFs: Group mutes risk with mix of styles.
February 11, 2008... Skandia Investment Management aims to reduce risk on its funds of funds in international sectors by remaining style neutral - an approach that allows funds to avoid market swings.Skandia Investment Management is one of only two groups to...

FOCUS: Big fish gets in the swim on equities.
February 11, 2008... Norwich Union is determined to reverse a tepid performance in its equities range and destroy the perception that it is too big for sustained success in this asset class. Frances Hughes reports. Norwich Union is best known as a manager of...

Fund Manager's Diary: 21-27 January 2008.
February 11, 2008... Monday First thing is our daily meeting and video conference with the RCM offices in Frankfurt and Asia. Back at my desk, I start reviewing my portfolio in the light of the market turbulence. Some stocks are starting to look interesting...

COMMENT: Economy and finance not separate entities.
February 18, 2008... A battle is raging within investment banks across the City. On one side, the economists typically have a relatively benign view of global economic prospects. On the other, those involved in the bond markets are often mired in gloom. It is...

SLI poised to launch absolute fund.
February 18, 2008... Standard Life Investments (SLI) is to launch an absolute return fund and introduce sterling share classes on its Indian Equities, China Equities and European Smaller Companies Sicavs in the next few months. Later in the year, the company...

Polar freezes dealing in Asia ex Japan fund.
February 18, 2008... Polar Capital Partners last week suspended dealing in its Dublin-based Asia ex Japan fund, managed by Emil Wolter, as it prepares to close the fund. Polar Capital says the decision to close the fund "follows a period of disappointing...

Bates Investment set to overhaul company fund structure.
February 18, 2008... Bates Investment Services is planning to move its funds of funds into a retail Oeic structure. Shane Balkham, lead manager on the portfolios, says the move will allow him to invest in a wider range of funds. As part of the change,...

IN BRIEF: New Star sees changes in staff.(Brief article)
February 18, 2008... Rob Page, New Star Asset Management's marketing director, has left the firm. Page's departure, which is understood to be for personal reasons, has prompted an internal reshuffle. Richard Wilson, New Star's former UK marketing director, has...

IN BRIEF: New Mellon fund.(Brief article)
February 18, 2008... BNY Mellon Asset Management has launched its Dynamic Europe Equity best- ideas fund. It will be a balanced managed portfolio comprising 40-60 stocks and headed by the WestLB Mellon Asset Management team. It will not initially be open to...

Midas and iMO reveal plan for merger.
February 18, 2008... Midas Capital Partners and iimia MitonOptimal (iMO) have announced a proposed merger to create a business with combined assets under management of about #3 billion. Under the terms of the proposal, which is subject to shareholder...

Investec brings global energy in-house.
February 18, 2008... Investec Asset Management has ended a nine-year association with Tim Guinness, following its decision to bring the management of its global energy funds in house. The move follows the hiring of Mark Lacey and Jonathan Waghorn from Goldman...

Tactica to enter retail market with three funds.
February 18, 2008... Tactica Fund Management is to launch three multi-asset funds to mark its entry into the retail market. Tactica was set up in January 2006 by John Ions, former managing director of SG Asset Management. Its aim was to cater for institutional...

IN BRIEF: Parking space for Isa investors.(Brief article)
February 18, 2008... FundsNetwork, Fidelity's fund supermarket, is launching an Isa Cash Park, available from mid-March. Investors in FundsNetwork's Isas will be able temporarily to hold their #7,000 Isa allowance - which will rise to #7,200 from April 6 - in...

Governor talks down hopes of short-term rate cuts.
February 18, 2008... The governor of the Bank of England has dampened hopes of further interest rate cuts in the near term. Mervyn King last week warned that rising energy, food and import prices might push consumer price index (CPI) inflation above 3% this year,...

Merrill Lynch survey reveals record global pessimism.
February 18, 2008... Global fund managers are expressing record levels of pessimism, according to the latest monthly survey from Merrill Lynch. Several indicators show how gloomy managers are. A net 41% are overweight in cash - the highest level since the...

IN BRIEF: Investment trends 'will favour Japan'.(Brief article)
February 18, 2008... Morgan Stanley Investment Management (MSIM) predicts that changing investment momentum will favour Japan as a strong alternative to emerging markets and global larger companies. MSIM's Focus on Japanese Value Equity says the Japanese market...

IN BRIEF: JP Morgan fund to be wound up.(Brief article)
February 18, 2008... The JPMorgan Income & Capital Investment Trust is to be wound up next week. Direct investors have until today to decide whether to invest in the new JPMorgan Income and Capital trust by rolling over their current investment or receive cash...

M&G bond funds get AA ratings.
February 18, 2008... OBSR Funds Rating Service has awarded the M&G Corporate Bond fund and the M&G Strategic Corporate Bond fund AA ratings. Richard Woolnough has managed the #1.2 billion M&G Corporate Bond fund since March 2004 and the #90m M&G Strategic...

Market spikes nothing like they used to be, says study.
February 18, 2008... Worries about market volatility may well be exaggerated, according to ABN Amro's Global Investment Returns Yearbook 2008. The yearbook, released last week, takes a long term overview of markets in 17 countries using a 108-year history of...

Researchers predict rise in volatility and long decline in leverage.
February 18, 2008... Macroeconomic volatility is set to rise and leverage is likely to start a long decline to lower levels, according to the 2008 issue of the Barclays Equity Gilt study. Tim Bond, head of asset allocation at Barclays Capital, says the force...

IN BRIEF: F&C joins climate change coalition.(Brief article)
February 18, 2008... F&C is to join a coalition of more than 40 American and European institutional investors, which manages $1.75 trillion (#888 billion) in assets, to present a climate-change action plan at the Investor Summit on Climate Risk in New York. The...

IN BRIEF: IShares launches two new ETFs.(Brief article)
February 18, 2008... iShares, Barclays Global Investors' exchange traded fund (ETF) provider, has launched two ETFs, the JPMorgan $ Emerging Markets Bond fund and iShares S&P Emerging Markets Infrastructure fund. The Emerging Markets Bond fund, the first of its...

IN BRIEF: European property 'stable'.(Brief article)
February 18, 2008... The European Real Estate Securities Quarterly Review and Outlook, released by LaSalle Investment Management, says the fundamentals of the European property market remain stable but a swift recovery is unlikely. The EPRA Europe Total Return...

Stockmarket 'offers rare opportunity'.
February 18, 2008... The British stockmarket is providing a once-in-a-decade investment opportunity, according to Bill Mott, manager of the PSigma Income fund. The alternative, says Mott, is that the economy and equities are heading for a severe downturn akin...

Barings launches pair of China best ideas funds.
February 18, 2008... Barings Asset Management plans to launch two China best ideas funds in May. Subject to regulatory approval, Baring China Growth will be structured as a British-domiciled ICVC, while Baring China Select will be an Irish- domiciled Oeic....

Fidelity heads down under for latest fund.
February 18, 2008... Australia is the largest single country weighting held in the new Fidelity Asian Aggressive fund launched last week. The portfolio has about 30% of its assets invested in the country, whereas China and India each have weightings of just 5% to...