Fund Strategy articles from February 2009

Fund Strategy archives from February 2009

COMMENT: Myths and reality of deglobalised world.
February 2, 2009... Daniel Ben-Ami, Editor Is globalisation going into reverse? The answer is straightforward: yes and no. It is true that the world is becoming less economically integrated in some respects. According to the latest update to the...

R&M boosts UK equity income range.
February 2, 2009... River & Mercantile has completed its UK equity fund range with the launch of an equity income product this week. The R&M UK Equity Income Oeic is managed by Richard Staveley and uses the boutique's house investment process. It was...

Hargreaves unveils fixed income multi-manager.
February 2, 2009... Hargreaves Lansdown has added a fixed income multi-manager vehicle to its core fund range. The HL Multi-Manager Strategic Bond Trust is run by Lee Gardhouse, an investment director. He can hold investment grade corporate bonds,...

Blue Planet turns profit from spot-on timing.
February 2, 2009... Kenneth Murray's gamble on New Star has paid off with the Blue Planet Financials Income & Growth Trust he runs set to see a #150,000 profit. Murray, who holds about 9% of New Star ordinary shares in the fund, finds himself in a minority...

IN BRIEF: Scott plans launch with Hawksmoor.(Brief article)
February 2, 2009... Richard Scott is to launch a global, multi-asset fund with Hawksmoor Investment Management. Scott joined the firm as chief investment officer in December. The fund manager formerly ran iimia's Growth & Income fund and also managed mandates at...

IN BRIEF: Gartmore fund joins wealth list.(Brief article)
February 2, 2009... Hargreaves Lansdown has added Gartmore's European Absolute Return fund, launched last week, to its Wealth 150 list of preferred funds. The fund is run by Roger Guy and Guillaume Rambourg. Its launch was postponed from October 2008 because of...

IN BRIEF: Fed committee to keep rate low.(Brief article)
February 2, 2009... The Federal Open Market committee voted to keep its target interest rate between zero and 0.25% last week. The committee said in a statement that it expected to keep interest rates low for "some time" because of adverse economic conditions....

World faces 'very severe recession'.
February 2, 2009... The depth of the financial crisis is only now becoming apparent as a series of statistics released last week shows that international trade is declining, global GDP is growing at its slowest rate for 60 years and Britain faces 20 years of...

New Star brand may survive Henderson takeover.
February 2, 2009... The New Star brand could soon become Henderson-New Star following last week's announcement of Henderson's widely expected acquisition of John Duffield's business for #115m. The merger of the two businesses is expected to take place at the...

IN BRIEF: New head of US equities at Aegon.(Brief article)
February 2, 2009... Aegon Asset Management has replaced the manager of its #16.2m American Equity fund after appointing a head of American equities. As a result, Simon Carter, the previous head and manager of the fund, has left the group. Ian Cooke, previously...

Total funds dive #100bn as institutions drive outflows.
February 2, 2009... The fund management industry posted negative sales figures for 2008, with institutional money driving outflows. End-of-year figures from the Investment Management Association (IMA) show net outflows of #2.4 billion, compared with net...

Fall in production helps to push price of gold to $900.
February 2, 2009... John Johnston, who recently took control of LeggMason Investors' #180m Slater Growth unit trust, has identified 25% of the trust's portfolio to be sold in favour of aggressive growth stocks. Johnston says the stocks are concentrated in...

IN BRIEF: Barclays Wealth in growth plan.(Brief article)
February 2, 2009... Barclays Wealth is to launch the Target Growth Plan, a tactical five- year product that promises to return up to 55% over that period. The product will have 100% capital protection returning investors' initial investment providing the FTSE...

ANALYSIS: Turmoil creates opportunities in commercial property.
February 2, 2009... Commercial property investors have had little to cheer about in 2009. As Fund Strategy reported last week, Norwich Union has deferred redemptions on its unit-linked life and pensions property portfolio. The fund is open to new business,...

STRATEGY: Heat is on to energise stock picks.
February 2, 2009... Global equity markets fall and investors remain cautious but some sectors are more resilient to the downturn and, with good valuations, there are opportunities for the skilled stockpicker. The past year has witnessed the most turbulent...

TRENDS: Quest for safety strengthens bond.
February 2, 2009... Managers sought safety in global bonds as the downturn hit - a sector that is further bolstered while the returns and risks of equities are not relatively attractive over the medium term. Global bond funds topped the performance tables...

Q&A: Jupiter holds out for baby-boomer rally.(Interview)
February 2, 2009... Sebastian Radcliffe, the manager of Jupiter North American Income, talks to James Smith. Q: What was the thinking behind the move to an income focus in 2007 and how much did the process change in line with the mandate? A: We looked...

SHARP FOCUS: On the lookout.
February 2, 2009... Managers search for income in a barren landscape as firms struggle to raise debt or borrow. But investors should not focus on the quest for dividends in the short term but rather on building diversified portfolios, writes Natalie Kenway. ...

Reactions to changes in regulation.
February 2, 2009... The Investment Management Association (IMA) has come under heavy criticism for the way it has regulated the UK Equity Income sector. It has been noted by many commentators that a lot of the better-performing funds have failed to meet the income...

ANALYSIS: What now for the stars of new star?
February 2, 2009... As Henderson assesses the talent it has acquired in its takeover of New Star, one respected manager in the collapsed firm explains how his fund was brought low by unfortunate timing. After its tuppenny takeover deal, how many of New...

AFI: Emerging bargains tempt the brave.
February 2, 2009... Markets in some emerging regions have plunged more than 50%, but advisers still see the sector as necessary to a balanced portfolio, and the present low valuations are proving attractive. It has been a torrid year for emerging market funds,...

INVESTMENT TRUSTS: Obama plan fuels Impax prospects.
February 2, 2009... The president's American Recovery and Investment Plan sets out ambitious targets for "a new energy economy" that are likely to re- ignite investors' interest in the Environmental sector. Alternative energy ht the front pages last week as...

FOCUS: Process helps Newton defy gravity.
February 2, 2009... For a second year in succession Newton BNY Mellon has ridden the financial crisis better than many groups - an achievement it puts down to its investment process, writes Tomas Hirst. In a year that produced one of the most challenging...

Fund Manager's Diary: 11-17 January 2009.
February 2, 2009... Sunday It is 9.30pm. It has been a miserable weekend weather-wise, so it is guaranteed that clients have studied portfolios or been terrified by the Sunday press and have sent me emails. I access my inbox to find the query brigade is on...

COMMENT: Shun protectionism and save free trade.
February 9, 2009... Daniel Ben-Ami, Editor There is probably more cant written and spoken about free trade than most other subjects. Everyone proclaims support for its ideals while curtailing it in practice. Admittedly protectionism does not always, or...

Odey UK retail first awaits approval.
February 9, 2009... Odey Asset Management is launching its first long/short vehicle for the British retail market, a fund that combines the group's hedge fund and long-only expertise. The Odey UK Absolute Return fund will use Ucits III tools, such as...

SLI unveils Strategic Bond fund for Sutherland.
February 9, 2009... Standard Life Investments (SLI) has launched a Strategic Bond fund for Andrew Sutherland. The fund, launched last week, invests across the whole fixed income spectrum, including high yield, investment grade corporate bonds, gilts and...

Harewood announces plan for commodities and income products.(Financial report)
February 9, 2009... Harewood Solutions, part of BNP Paribas, plans to launch a long/short actively managed commodities product as well as adding to its range of income products. Last month the group launched an Enhanced Income fund, which aims to deliver...

IN BRIEF: Bank of England cuts rate again.(Brief article)
February 9, 2009... The Bank of England's Monetary Policy Committee last week cut interest rates by half a point to 1%. The move, which was expected, responds to falling output and consumer price index inflation. Despite the cost of imports being boosted by the...

IN BRIEF: Aberdeen chief quits in restructure.(Brief article)
February 9, 2009... Gary Bartlett, the global head of fixed income at Aberdeen Asset Management, has left to make way for the Credit Suisse head. As part of the proposed acquisition of Credit Suisse's fund business by Aberdeen, Paul Griffiths, in the same role at...

IN BRIEF: Baillie Gifford shuffles managers.(Brief article)
February 9, 2009... Baillie Gifford has switched managers on its #72m Pacific fund and #74m Pacific Horizon investment trust. Ben Lloyd, the joint manager of the Pacific fund, left in the summer while co-manager Gerald Smith stayed. Mike Gush, a manager on the...

IN BRIEF: Natixis unveils two equity funds.(Brief article)
February 9, 2009... Natixis Global Asset Management has launched two hedged equity funds seeking British distributor status. The Gateway US Equities fund and the Gateway Euro Equities fund are managed by American-based Gateway Investment Advisers (Gateway). The...

F&C announces #962m fall in net European fund assets.
February 9, 2009... The European fund industry saw a decline in net assets of E1.06 billion (#962 million), or 13.5%, from the beginning of 2007 to the end of September 2008, F&C Asset Management said in a briefing last week. The fall is mainly because of...

IMA data reveals resilience despite downturn.
February 9, 2009... Funds of funds achieved monthly net inflows throughout 2008, according to quarterly statistics from the Investment Management Association (IMA). Ethical funds also showed signs of resilience, despite the worsening economic conditions. ...

IN BRIEF: Invesco reveals fall in assets.(Brief article)
February 9, 2009... Invesco posted its year-end results last week, revealing a 28.6% fall in assets under management from 2007 to 2008. The American group, which is the parent company of Invesco Perpetual and Invesco PowerShares, had just over $500 billion...

Tracker devotees welcome launch of Vanguard UK.
February 9, 2009... Advisers who advocate passive management over active funds have welcomed the decision of Vanguard to launch a British funds business. Vanguard, founded by John Bogle, launched the first tracker mutual fund in America in 1976. The American...

Downgrades signal 'reversal of fortune' for country.
February 9, 2009... Sovereign debt downgrades for Russia last week demonstrated how far the outlook for the country has deteriorated since July 2008. On July 11 last year the oil price reached a peak of $147 a barrel, underlining the positive sentiment...

IN BRIEF: Private bank unveils fund.(Brief article)
February 9, 2009... Cater Allen, the private bank that belongs to the Santander group, has launched its first structured product of the year - the Cater Allen Protected Investment Plan. Available from last week, the product consists of a one-year deposit account,...

IN BRIEF: Stellar seeks 6% from self-storage.(Brief article)
February 9, 2009... Stellar Asset Management has launched the Stellar Income fund, which seeks a minimum annual income of 6% by investing in self-storage facilities in the Midlands and northwest England. The fund is raising #1m to buy its first investment. ...

IN BRIEF: Allianz recruit.(Brief article)
February 9, 2009... Sue Chan has joined Allianz Global Investors' (AGI) global equity team from BlackRock. As part of RCM, the global equity company within AGI, Chan will be responsible for the Global Sustainability fund. Copyright: Centaur Communications...

Fixed income still investors' choice.
February 9, 2009... Investors' love affair with fixed income is going strong. Bond funds accounted for the most sales on Skandia's fund platform last month. Figures for January show that British fixed interest funds accounted for a quarter of all sales on...

Shareholders approve SLI-Gartmore merger.
February 9, 2009... Shareholders have approved the merger between Standard Life Investments' (SLI) and Gartmore's smaller companies investment trusts. The move will double the assets under management in the SLI trust, bringing it to #63m. It will continue to...

Managers stay upbeat despite bad forecast from IMF.
February 9, 2009... Africa is likely to be hit hard by the global economic crisis, according to the International Monetary Fund (IMF). With the expectation of a more pronounced global downturn, weaker commodity prices, and pressure on capital flows, the IMF...

IN BRIEF: Hard commodity prices to fall 41%.(Brief article)
February 9, 2009... The prices of hard commodities will fall by an average of 41% in 2009, the Economist Intelligence Unit (EIU) predicts. In its World Commodity Forecast, the EIU says that the low oil price will continue, at an average $35 a barrel, this year....

IN BRIEF: IMF loans boost.(Brief article)
February 9, 2009... The International Monetary Fund is to double its pot of loan resources to $500 billion (#350 billion). Loan arrangements have committed $47.9 billion to countries hit by the financial crisis. Copyright: Centaur Communications Ltd. and...

ANALYSIS: Experts voice fears as spectre of protectionism returns.
February 9, 2009... Although countries depend on world trade for the success of their economies, individual governments are taking protectionist measures as they battle the financial and economic crisis. And while public debt is rising at the fastest pace since...

TRENDS: Balanced approach to timely returns.
February 9, 2009... Market noise and selective data skew the results for time-weighted against money-weighted returns - but superior money-weighted returns are possible with a disciplined approach. Having spent many years advising private clients, a comment...

STRATEGY: Agriculture promises green shoots.
February 9, 2009... The global downturn hits agriculture supply and the immediate outlook for the sector is bleak. But investors should look to longer-term trends of population growth and wealth expansion. In the long term, we will see higher prices for...

Q&A: Argonaut puts absolute faith in short strategy.(Interview)
February 9, 2009... Oliver Russ, the lead manager of Argonaut European Equity Income, talks to Adam Lewis about a launch. Q: You are about to launch an absolute return fund. How will this differ to the alpha fund you and Barry Norris already run? A: We...

REVIEW: Authority and flair light up key debate.
February 9, 2009... Human need fuels the trajectory of a strong argument on energy and climate change. The authors shun the stifling view of the green lobby in favour of the case for cheap and plentiful energy. James Woudhuysen and Joe Kaplinksy Energise!...

FEATURE: Edge of reason.
February 9, 2009... The main American financial watchdog sealed the fate of the five giant Wall Street investment banks when it allowed them to increase their leverage massively. But did such deregulation pave the way for the global market meltdown? Vanessa...

FEATURE: Voice in the wilderness.
February 9, 2009... Five years ago almost no one noticed that bundling the two aspects of the reform might not be necessary. Did the Securities and Exchange Commission (SEC) need to give up the former leverage limits to consolidate its authority? Before the...

FEATURE: All quiet on the eastern front.
February 9, 2009... It may be convenient to blame American excesses and swollen bank leverage for the world's financial crisis, but large European banks are sitting on some plump leverage ratios themselves. Capital adequacy is the inverse of debt-to-equity...

ANALYSIS: Bank-averse aviva vies for top spot.
February 9, 2009... Aviva's UK Equity Income fund is challenging Invesco Perpetual for pre- eminence in the equity income rankings - largely because it has remained resolutely underweight in bank stocks. Take HSBC and Standard Chartered out of the index, and...

AFI: Land of the false dawn still avoided.
February 9, 2009... Why do advisers continue to fight shy of Japan when the region is in better shape than the rest of the world? One cause of their reluctance is that they do not perceive it as a "normal" economy. Japanese equities were one of the...

FoFs: Manager feasts on specialist fodder.
February 9, 2009... Peter Walls, the manager of Unicorn Mastertrust, made some changes to the fund and says that large discounts in some specialist closed-ended funds represent an attractive buying opportunity. Peter Walls, the manager of the Unicorn...

FOCUS: Aegon turns key for global benefits.
February 9, 2009... Seven months after it launched a programme to "unlock its global potential", the firm is already enjoying the fruits of its restructured American and European operations, writes Will Jackson. As most companies hunkered down in the face of...

Fund Manager's Diary: 26 January to 1 February 2009.
February 9, 2009... Monday Take my daughter to nursery and arrive at work to find the world has not ended. 'Ted spreads' are tightening. Must be good news even if they do sound like something my daughter would have on her toast. Good numbers from Hiscox and a...

COMMENT: Resist witch hunts against fat bankers.
February 16, 2009... Daniel Ben-Ami, Editor Trial by drowning was supposedly a common way of dealing with witches in medieval times. Suspects were thrown in a river or lake and if they drowned they were found innocent. If they floated they were presumed...

Manager rejigs New Star UK holdings.
February 16, 2009... Trevor Green has turned over 40% of the #265m New Star UK Growth fund since taking over the portfolio from Stephen Whittaker in November. Green, who joined New Star from RCM in June last year, says that "decisive action" had to be taken to...

Insight equity income inches closer.
February 16, 2009... Insight's plans for an equity income fund for Richard Lloyd are nearing completion. The fund is set to make its way into the retail market by the end of the first quarter. Lloyd was one of the architects of the Schroder Income Maximiser...

Henderson global fund brought to UK market.
February 16, 2009... Henderson Global Investors is bringing its America-based Global Equity Income fund to the British retail market later this year. The fund, managed by Alex Crooke and Job Curtis, is available only to American investors at present. ...

IN BRIEF: Artemis buys 5% stake in Liontrust.(Brief article)
February 16, 2009... Artemis last week bought 5.48% of Liontrust. John Dodd added 3.56% of Liontrust into his Artemis Alpha Trust while Adrian Paterson's UK Growth fund bought 1.92% of the asset management group. Liontrust's future was uncertain after the...

IN BRIEF: Group reviews favoured funds.(Brief article)
February 16, 2009... Hargreaves Lansdown has removed Axa Framlington's Equity Income fund from its Wealth 150 list in favour of two Newton income products. In a review of its favourites list, the firm decided to remove the Axa fund because of its small-cap bias....

IN BRIEF: Credit Suisse results show loss.(Brief article)
February 16, 2009... Year-end results from Credit Suisse show it made a net loss of Swfr8.2 billion (#4.8 billion) in 2008. The group said that 2,700 more staff will be made redundant by mid-2009 as part of a move to reduce the company's costs. This will take...

IN BRIEF: Fund takes #30m in two weeks.(Brief article)
February 16, 2009... Gartmore's European Absolute Return fund has raised #30m in its first two weeks of trading. The fund is a Ucits III limited issue vehicle and is managed by Roger Guy and Guillaume Rambourg using a similar strategy to its AlphaGen Capella...

Schroders moves to boost returns.
February 16, 2009... Schroders has made several changes to its UK equity fund range in a bid to improve returns for investors in a poor economic environment. The group is seeking unitholder approval to merge its UK Select Growth fund into its UK Equity...

Thousands join Vantage platform but assets fall.
February 16, 2009... Hargreaves Lansdown gained 17,000 new clients on its Vantage platform in the first half of 2008. But assets on the fund supermarket and wrap platform fell from #10 billion in June 2008 to #8.9 billion in December. During the half-year...

High yield bond fund performance plunges in last quarter of 2008.
February 16, 2009... High yield bond funds delivered their worst performance on record in the last quarter of 2008, with some losing more than half their value over the year. Data from Standard & Poor's (S&P) shows only one high yield fund delivered a...

IN BRIEF: British trade deficit narrows.(Brief article)
February 16, 2009... Britain's trade deficit narrowed ahead of expectations in December to #7.4 billion from #8.1 billion a month earlier, according to the Office for National Statistics. Exports rose by #100m while imports fell by #700m, mainly reflecting a...

Bank's action 'is bullish' for bonds.
February 16, 2009... The Bank of England's unprecedented quantitative easing measures look set to stimulate the bond market further. Its Inflation Report for February says there remains a substantial risk that the Bank will overshoot its 2% Consumer Price...

BNY Mellon launches joint venture boutiques.
February 16, 2009... Bank of New York Mellon Asset Management (BNY Mellon) has launched two joint venture boutiques focusing on emerging markets and Australian equities. The group bought two investment subsidiaries from WestLB at the end of 2008 and has rebranded...

Scottish Widows tops 'kennel club' of underperformers.
February 16, 2009... A total of #7.27 billion of British investors' money is sitting in underperforming funds, Bestinvest's Spot the Dog report has revealed. Although this is less than the figure reported six months ago it is still a substantial amount,...

IN BRIEF: JPM's Complin to take sabbatical.(Brief article)
February 16, 2009... Chris Complin, the chief investment officer (CIO) at JPMorgan's European equity group, will take a 12-month sabbatical from March to pursue other interests, the group says. Complin stepped away from direct fund management last August to...

ANALYSIS: Investors see potential in Africa despite fall in liquidity.
February 16, 2009... Last August the Heart of Africa fund stood at #86m but upon its suspension in December, it had fallen to #29m. Today, it is worth just #18m. And investors have suffered another fall of 38% while they have been unable to access their funds. ...

STATESIDE: Tainted image belies staying power.
February 16, 2009... Credit rating agencies feel the pressure to restore credibility in the wake of the global financial meltdown. But old habits are entrenched and some commentators say reform may be difficult. Same old song Plus ca change. The credit...

STRATEGY: New regime raises value trap risk.
February 16, 2009... The depth and spread of the downturn ensures that recovery in many countries will be slow and economic structures could change - so investors should be alert and ready to adapt their strategy. The unprecedented moves in interest rates and...

TRENDS: Amid turmoil, structures to build on.
February 16, 2009... Structured products built on a strong foundation of investor protection and capital repayment as managers turned to them when the equity boom ended - they also promise high growth. Structured products have long been viewed as the poor...

Q&A: Group pursues flexible approach to bond fund.(Interview)
February 16, 2009... Andrew Sutherland, the head of corporate credit at Standard Life Investments, talks to Stefanie Eschenbacher. Q: You promise more freedom and flexibility with your new bond fund. Why is that important? A: Different types of bonds...

BIT PLAYER: Behind the mask.
February 16, 2009... Politicians have accused hedge funds of playing a leading role in last year's financial drama - but are they victims rather than villains? Hannah Smith investigates. Michael Fallon, a member of the Treasury Select Committee, asked five...

ANALYSIS: Life amid the ruins of the mid-250.
February 16, 2009... The most bombed-out sectors of the FTSE 250 are pub companies, housebuilders and retailers, but these are the areas where Paul Spencer of Rensburg goes in search of promising survivors. There is a word that Paul Spencer, the manager of...

INVESTMENT TRUSTS: F&C yields the benefit of experience.
February 16, 2009... The F&C European Assets trust suffered along with its small and mid-cap peers last year, but investors will have been reassured by the high yield from a fund run by a seasoned manager. While European small and mid-cap companies may not be...

AFI: Hope springs for the commodity-shy.
February 16, 2009... Experts forecast a grim year for commodities and AFI panellists have shifted away from the asset class. But commentators who take a long- term view remain firmly upbeat. Commodities are set for a tough 2009, according to the Economist...

FoFs: Solid player seeks long-term liaisons.
February 16, 2009... Sharon Segal, the manager of Fitzwilliam Balanced Growth, remains loyal to her stockpickers despite a dip in performance and - although flexible - she maintains a defensive stance. Fitzwilliam's Balanced Growth fund, running since 1995, is...