Fund Strategy articles from January 2005

Fund Strategy archives from January 2005

COMMENT: Asian earthquake adds injury to insult.(economy)
January 10, 2005... Anyone who expected Boxing Day's Indian Ocean tsunami to have a substantial impact on the financial markets of the world is guilty of spectacular ignorance. The reaction to the tsunami illustrates in brutal detail how marginal the countries...

T Bailey profits from rule change.(Bailey Asset Management launches equity income unit trust fund of funds)
January 10, 2005... T Bailey Asset Management has launched an equity income unit trust fund of funds, which, using new Ucits III rules, will invest in a mix of equity-orientated funds and investment trusts. The T Bailey Equity Income fund was registered on...

November retail sales down on 2004, says IMA.(Investment Management Association)(Brief Article)
January 10, 2005... Net retail sales of investment funds were down 26% in November compared with the same time last year, according to the latest statistics from the Investment Management Association. Net Isa sales increased for the second consecutive month,...

HSBC global fund cuts number of holdings.(HSBC Holdings PLC)(Brief Article)
January 10, 2005... Jon Rebak, manager of HSBC's Global Growth Fund of Funds, has made several changes to the portfolio in the hope of "upping the alpha" of the fund. He reduced the number of holdings to 19 from 25 on October 24. Rebak says: "We have been...

IN BRIEF: US asset manager set for UK launch.(Hartford Investment Management Co. launches services in United Kingdom)(Brief Article)
January 10, 2005... Hartford Investment Management, an American asset management company, is set to enter the British market and launch savings products later this year. A spokesperson said an announcement would be made in the next few months, but declined to...

IN BRIEF: GAM reopens funds to investors.(multi-manager funds)(Brief Article)
January 10, 2005... GAM will reopen seven offshore multi-manager funds to subscriptions this week, including its Emerging Markets Multi-fund, the Multi-China fund and the Multi-US fund. The funds were previously capped in early 2004 because of a high rate of...

IN BRIEF: UK roadshows for advisers.(mutual fund industry)(Brief Article)
January 10, 2005... Gartmore, M&G, Newton and Schroders have announced that they will host a series of eight roadshows for advisers across Britain. The roadshows are set to begin on January 18 in Newmarket and will continue until January 26. Topics will include...

IN BRIEF: Equinox trust aims at property.(Equinox Capital Management Inc. launches venture capital trust )(Brief Article)
January 10, 2005... Equinox Capital Management recently announced the launch of a venture capital trust that aims to combine exposure to residential property as well as to private equity. The Equinox VCT is designed as a low-risk product because of its...

IN BRIEF: Special Sits top of Fidelity's pops.(Fidelity Investments UK)(Brief Article)
January 10, 2005... Fidelity's Special Situations fund, the Invesco Perpetual Corporate Bond fund and the Liontrust First Income fund were the best selling funds on Fidelity's FundsNetwork in 2004. According to Fidelity, the UK All Companies sector was the top...

FSA reaches deal with splits firms.(United Kingdom's Financial Services Authority)
January 10, 2005... Eighteen of the firms involved in the split-capital investment trust scandal have reached a compensation agreement with the Financial Services Authority following an investigation by the regulator begun in February 2002. In return for their...

Lack of agreement could linger for years.(splits compensation agreement with Financial Services Authority of United Kindom)
January 10, 2005... The four firms that have not yet agreed to the splits compensation agreement could still be involved in the saga for years to come. BC Asset Management, BFS, Exeter and Teather & Greenwood have yet to pay any compensation. In addition,...

IN BRIEF: Rating withdrawn for US fund.(Brief Article)
January 10, 2005... Daniel Hemmant and Simon Laing's Newton American fund has had its A rating withdrawn by Forsyth-OBSR because of changes to its management processes. Threadneedle's American Growth and American Select Growth funds have had their suspensions...

IN BRIEF: SGAM converts funds to ICVC.(SG Asset Management)(Brief Article)
January 10, 2005... SG Asset Management has added its SocGen American Growth and SG UK Concentrated Core unit trusts to its ICVC range. The group converted its other 17 British-domiciled retail funds in May 2004. The American Growth fund, managed by Komal...

Human cost far outweighs economic impact of tsunami.
January 10, 2005... Morgan Stanley is downgrading its 2005 Thailand GDP growth projection by just 0.3% to 5.7% following the Indian Ocean tsunami. Indeed, despite the tragic human toll of the disaster, the economic costs are expected by most to be minimal....

GAM duo take on Asian funds after manager dies on South Africa holiday.(Lesley Kaye and Michael Lai)(Brief Article)
January 10, 2005... Lesley Kaye and Michael Lai have taken over management of several GAM Asian and Pacific funds following the death of GAM investment director John Mytton last month. Among the funds Kaye and Lai will co-run are the #124.5m GAM Pacific...

Chill in the air for Japan as sun struggles to rise on 2005.
January 10, 2005... In early 2004, Japan's economy looked like it was starting to emerge from the deflationary spiral it had suffered for the previous five years. Annualised gross domestic product growth reached 6.3% in the first quarter, while deflation was...

Q&A: Working to level a shifting playing field.(questions and answers)(Interview)
January 10, 2005... Daniel Godfrey, director general of the Association of Investment Trust Companies, talks to James Teasdale. Q: What are the main roles of the Association of Investment Trust Companies? A: There are three broad areas of activity. The...

STRATEGY: Cash in the bank or better returns?
January 10, 2005... The outlook for the global economy is good, with stronger growth expected in the US and UK than Europe, but bond markets are overvalued and currency volatility will remain a theme. In the last few years, equity investors have either reaped...

TRENDS: Every silver lining has a cloud.(equity market forecast)
January 10, 2005... An end to the political uncertainty in America boosted global equity markets in November, but a weakening dollar could yet derail the recovery that is starting to take root in Europe. Global equity markets benefited from a conclusion to...

CHANNELS: Gaining confidence by delivering choice.(answers from commercial director of Sesame)(Interview)
January 10, 2005... Charles Bryant, commercial director at Sesame, answers questions from Helen Burnett. Q: What are the benefits of moving to a multi-tie? A: I think the benefits depend on the different types of stakeholder, be they consumers or...

Wrong turn?(economic developments in the coming years)
January 10, 2005... Daniel Ben-Ami considers whether much of the current market wisdom is based on false premises, while the Fund Strategy team look ahead to likely development sin the coming year. There are some questions that fund managers are keen to...

What the fund managers say.(forecast)
January 10, 2005... James Teasdale canvasses a group of fund managers on their views for 2005 Jim Leaviss, M&G head of retail fixed income. Bonds performed well in 2004 and there is no reason to believe they won't perform as well this year. We expect the...

Fund of funds trends in 2005.
January 10, 2005... Adam Lewis takes a straw poll of multi-managers This year is expected to be a tough year for intermediaries as a result of a painful squeeze on margins. Clients want firms to do more than ever for them while paying less for the service....

The ups and downs of depolarisation.
January 10, 2005... Helen Burnett looks at the themes for fund distributors The main theme for distributors in 2005 looks as though it will continue to be the effects of depolarisation. As the new rules governing financial advice are implemented over the first...

FOCUS: Biggest certainly, but is it the best?(Fidelity Investments UK)
January 10, 2005... Accusations of arrogance have dogged Fidelity, but its size and success may have something to do with that and for now its dominance looks set to continue, as Sarah Godfrey reports. Biggest does not always mean best, although at times in...

ANALYSIS: Roam-anywhere fund hits the top.(best performing fund analysis)
January 10, 2005... Neptune's European Opportunities fund was a best performer last year thanks to some clever bets on the oil sector, but can manager Barry Norris repeat the performance in 2005? Barry Norris of Neptune won't forget 2004 in a hurry. Not only...

FoFs: Fetters don't have to hold you back.(fund of funds)
January 10, 2005... The key to running any successful fund of funds is the right choice of funds. With a fettered fund, this depends on having all those funds in- house - but Schroders says it fits the bill. Although fund of funds offerings are becoming more...

Fund of funds performance data.
January 10, 2005... The CF Rowan Portfolio, managed by Adam Hughes, enjoyed the largest move up the rankings over one year compared with the last time we examined this sector (November 15). Over 12 months to December 13, 2004, it was ranked 15th out 39 funds,...

Fund Manager's Diary: 10-16 December 2004.
January 10, 2005... Friday The gentle lapping of waves stirs me from a deep sleep. I live on a barge - a lovely beast built in the late 1800s in Amsterdam and steamed up the Thames in the 1950s for her new life transporting fruit and veg. Now she has all the...

COMMENT: One-sided views do Europe an injustice.(Editorial)
January 17, 2005... Few people in Britain know much about continental Europe. Most Britons would struggle to name the French prime minister or German chancellor, let alone the Hungarian defence minister. Ideas about investment in Europe are often equally...

Lazard spreads from Alpha to Omega.
January 17, 2005... Lazard is to launch a more concentrated version of its existing #669m UK Alpha fund, managed by Tony Willis and Alan Custis. Whereas the Alpha fund holds some 40-50 companies in its portfolio, the Lazard UK Omega fund is expected to invest...

F&C's third property trust to launch with #1bn.(F&C Asset Management )(Brief Article)
January 17, 2005... F&C Asset Management is to launch a #1bn UK commercial property investment trust next month. The trust is targeting an initial 6% yield for its investors. It will aim to achieve this objective with a portfolio of large, high-quality...

Prudential fund range shrinks from 33 to 23.(M and G Investment Management)(Brief Article)
January 17, 2005... M&G has announced changes to the Prudential and Scottish Amicable unit trust ranges, including two fund closures, a large number of mergers and the rebranding of Scottish Amicable trusts to Prudential. The total number of funds will be...

In Brief: CSAM offers FoF discount.(Credit Suisse Asset Management Inc.)
January 17, 2005... Credit Suisse Asset Management is offering preferential terms for Isa, Pep and unit trust investments into its multi-manager fund of funds range up to April 30, 2005. There is a 1% discount on the normal 4% initial charge, of which 3% can be...

In Brief: Gartmore cuts charges.(Brief Article)
January 17, 2005... Gartmore is offering reduced charges to intermediaries on its Cautious Managed fund and Portfolio range. It is to offer a 1% off the 5% initial charge and 4% initial commission on new lump sum investments. Intermediaries may waive the initial...

In Brief: New managers for M&G funds.(appointment of Aled Smith at M and G Investment Management)(Brief Article)
January 17, 2005... Aled Smith is taking over as manager of M&G's American fund and George Tsinonis will manage the Blue Chip fund following Samantha Burden's departure from M&G. Smith, who also manages the Global Leaders fund, will use the same investment...

In Brief: New analyst joins Omam quant team.(appointment of Han Lin at Old Mutual Asset Managers (UK) Ltd.)(Brief Article)
January 17, 2005... Old Mutual Asset Managers has appointed Dr Han Lin as research analyst in the quantitative strategies team. The team manages equity strategies for over $850m (#452m) of assets. Lin, who previously worked at State Street Global Advisors, will...

In Brief: ABN launches Paris-based funds.(ABN AMRO Bank N.V.)(ABN Amro US Opportunities fund and Europe Opportunities fund )(Brief Article)
January 17, 2005... ABN Amro has launched two equity funds to be run by its Paris affiliate, Neuflize Gestion. The ABN Amro US Opportunities fund and the Europe Opportunities fund will be offered as subfunds of ABN's Luxembourg Oeic, and will be available to UK...

In Brief: Nationwide's base rate promise.(Target Return fund)(Brief Article)
January 17, 2005... Nationwide has launched the Target Return fund. Managed by Merrill Lynch, the fund aims to yield a return of 2.5% over the Bank of England base rate. Nationwide is offering to refund charges to investors if the fund does not beat the base rate...

F&C and New Star lead active pack.(F&C Asset Management )(New Star Asset Management )
January 17, 2005... F&C Asset Management and New Star Asset Management have announced that they will be offering actively managed funds as part of the government child trust fund initiative. F&C, which will offer six investment trusts, was approved to...

Child trust fund idea attracts major institutions.(Brief Article)
January 17, 2005... In addition to funds launched by major investment firms such as F&C and New Star, many banks and financial institutions also announced their plans for child trust funds last week. Barclays has announced that it will be offering an equity...

Official launch sees 75 CTF groups join up.(Child trust funds )
January 17, 2005... Child trust funds were officially launched last week by the Chancellor of the Exchequer, Gordon Brown. A list of the 75 official providers and distributors of CTFs was provided at the launch, including banks, building societies, insurance...

In Brief: Bourdon moves to Threadneedle.(appointment of Paul Bourdon Threadneedle Investments )(Brief Article)
January 17, 2005... Paul Bourdon has joined Threadneedle Investments as director of investment solutions. His role includes ensuring the Threadneedle product range caters to client needs and meets regulatory requirements. He will also provide pension funds and...

In Brief: Enforcer gives up FSA role.(appointment of Andrew Procter at Deutsche Bank AG)(Brief Article)
January 17, 2005... Andrew Procter, director of enforcement at the FSA since 2001, is leaving to take up the role of regional head of compliance at Deutsche Bank for the UK and Western Europe. Procter, who joins Deutsche Bank in April, will report to Henry Klehm,...

In Brief: Distribution head arrives at Insight.(appointments and promotions at Insight Investment)(Brief Article)
January 17, 2005... Insight Investment has made several changes to its senior management. Charles Farquharson has joined the company as head of distribution, while Duncan Owen has been promoted to head of property. Farquharson and Owen are executive directors....

Schroders cuts exposure to Europe.(Schroder Investment Management Ltd.)
January 17, 2005... Schroder Investment Management has downgraded its weighting in Europe ex UK equities in its asset allocation portfolio from overweight to neutral. This follows a perceived poor economic outlook for the region. Keith Wade, chief economist...

Small-caps and Latin stocks chalk up good year.(Brief Article)
January 17, 2005... An analysis of the MSCI indices over 2004 reveals that small-caps once more had a strong year and investment in Latin American stocks also yielded significant returns. In euro terms the Small Cap World index returned 29.4% and the EM...

Collins Stewart moves to streamline operation.(Stephen Coxshall been appointed )(Brief Article)
January 17, 2005... Collins Stewart has made substantial changes since Stephen Coxshall was appointed as director of fund management in early January. Neil Smeaton has left the company as part of a restructuring of its American fund management team. This...

Silberston returns to same team at Investec.(Russell Silberston)(Investec Asset Management )(Brief Article)
January 17, 2005... Russell Silberston has returned to Investec Asset Management as portfolio manager in its fixed income team. Silberston leaves Cazenove Fund Management, where he was a fixed income portfolio manager. His first stint at Investec was between 1995...

Aberdeen faces tough climb back after split-cap saga.
January 17, 2005... Of all the groups involved in the split-capital investment trust scandal, few, if any, can be more relieved about the end of the saga than Aberdeen. It can now start working to regain its position as one of Britain's leading fund groups. ...

Strategy: Markets set to feel the Kyoto effect.
January 17, 2005... Industries that generate carbon dioxide face new costs in meeting emissions regulations in line with the Kyoto Protocol. This can affect their profitability and attractiveness to investors. Russia is expected, finally, to accept the 1997...

Trends: Markets defy the tsunami disaster.
January 17, 2005... Despite the huge loss of life and damage wrought by the Boxing Day earthquake and tsunami in the Indian Ocean, investors remain confident about the region as its indices continue to rise. One of the most widely damaging natural disasters in...

Channels: Placing faith in quality and range of services.(interview of Dominic Cummings from BestInvest)(Interview)
January 17, 2005... Dominic Cummings, a director of BestInvest, tells Helen Burnett about his company's focus and plans. Q: How do your advisers feel about your decision to stay whole-of- market? A: Our advisers are fully supportive of this decision....

Q&A: Consumers point the way to tap into growth.(Interview)
January 17, 2005... Jonathan Asante, senior analyst, First State's global emerging markets team, talks to James Teasdale. Q: How would you summarise the First State global emerging markets team's investment process? A: It is quality at a reasonable...

Still in the running.(mutual fund industry)
January 17, 2005... Economic statistics might suggest continental Europe isn't a good bet for investors. But, as Simon Hildrey reports, fund managers have faith in the abilities of the many world-class companies across the continent to deliver. Investors...

The multi-manager view.(Brief Article)
January 17, 2005... Gary Potter, co-head of the Credit Suisse Portfolio Service, says investors would have a pessimistic view of European equities if they considered only the macroeconomic environment. But he adds that "many fund managers can find excellent ideas...

The fund strategists' view.
January 17, 2005... Mike Lenhoff, chief strategist and head of research at Brewin Dolphin, says European equities performed better than expected in 2004 because of their cheap valuations. "European equities probably had the best valuations going into 2004....

Analysis: Rejigged SIT is ready to be noticed.(Scottish Investment Trust)
January 17, 2005... In the year since taking over as lead manager of Scottish Investment Trust, John Kennedy has carried out a huge restructuring. Now he says the trust is set to turn investors' heads. After a tumultuous few years, is Scottish Investment...

Focus: Unicorn focused on improvement.(Unicorn Asset Management )(Company Profile)
January 17, 2005... Unicorn Asset Management might have top-performing funds in its stable but the smaller company specialist is not about to become complacent. Sarah Godfrey reports. One might not expect to spend a meeting with the manager of the top-...

FoFs: Hybrid qualities come to the fore.
January 17, 2005... By offering a combination of the fund of funds approach with that of manager of managers, the Skandia Cautious fund is proving popular among investors in current market conditions. Fund of funds or manager of managers? That is the...

Fund of funds performance data.
January 17, 2005... Compared with the last time we examined the Cautious Managed sector (November 22) there have been no large-scale moves up or down the rankings. Over one and three years respectively, to January 10, the top- performing funds remain the...

Sales: Piecing together the favourite funds.
January 17, 2005... By looking at data from different sources, it is possible to draw conclusions about the funds that are most favoured by retail investors - and there are not too many surprises on the list. Working out the top-selling funds among retail...

Sales: INVESTEC CAUTIOUS MANAGED FUND.(Brief Article)
January 17, 2005... Investec Cautious Managed, launched in 1993, is managed by Alastair Mundy and has assets of #335.8m. It sits in the Cautious Managed sector, and was the best performer in its peer group over five years to the end of November 2004. The...

Sales: FIDELITY SPECIAL SITUATIONS.(Brief Article)
January 17, 2005... At #4.3m the Fidelity Special Situations fund is by far the largest player in the UK fund market, and its manager Anthony Bolton wields considerable influence. The fund aims to achieve long-term capital growth by investing in an actively...

Sales: NEWTON HIGHER INCOME.(Brief Article)
January 17, 2005... Newton's #1.9bn Higher Income fund was launched in 1987. It came to prominence under manager Toby Thompson, who left to join New Star in 2001. After three years under the management of Clive Beagles (now at JO Hambro Capital Management) it...

Fund Manager's Diary: 3-9 January 2005.
January 17, 2005... Monday Highlight of long weekend is proposing to girlfriend on Rutland Water, to which she says yes. Host at supper wastes no time in announcing our engagement to all the guests. Long night of celebration ensues. Tuesday The first alarm...

Are fund managers diverting dividends?
January 24, 2005... First it was innovative, then it became a cliche and now it seems that in many cases it is not even true. In recent years many fund managers have boasted that, like Ronseal, their particular portfolio "does what it says on the tin". In other...

FSA gives Abbey the green light.(United Kingdom's Financial Services Authority approves Abbey National PLC's new funds plan)
January 24, 2005... The Financial Services Authority has approved Abbey's plan to launch several new funds as part of a move to cut its fund range by a third this year. The 16 new funds, described as "building blocks" by John Kelly, head of multi-manager...

Mis-selling warning on capital guarantee funds.(Brief Article)
January 24, 2005... Firms that sell capital guaranteed funds need to ensure they do not misrepresent their costs, according to the Financial Services Authority. In its annual Financial Risk Outlook the regulator warns firms to consider carefully whether such...

Hendersons launching property equities fund.(Henderson Global Investors Ltd.)(Brief Article)
January 24, 2005... Henderson Global Investors has launched a global property equities fund into its Horizon Luxembourg-based Sicav. The fund, managed by Patrick Sumner, will be available to British investors following the group's recent introduction of a UK...

Axa promotes Griffiths.(AXA Investment Managers, )(Brief Article)
January 24, 2005... Axa Investment Managers has promoted Paul Griffiths to UK chief executive officer while remaining UK chief investment officer. He also joins the Axa IM executive committee. Griffiths joined Axa as CIO in January 2004 and has restructured...

In Brief: Andrews replaces Jones at Cofunds.(Cofunds appoints Mark Jones in place of Rick Andrews)(Brief Article)
January 24, 2005... Cofunds has appointed Mark Jones to the role of marketing and product development director. Jones, who will take over the role next week, will replace Rick Andrews, who announced last week that he would be leaving the company. A replacement...

In Brief: Polin makes two appointments.(Britannic Asset Management's Jonathan Polin appoints head of sales and distribution)(Brief Article)
January 24, 2005... Jonathan Polin, sales and marketing director at Britannic Asset Management, has appointed Alistair Hall as head of UK sales and distribution and Irene Brodie as head of third-party distribution. Hall will be responsible for developing...

In Brief: Insight to offer FoFs on Selestia.(Insight Investment Management Ltd. offers fund of funds)(Brief Article)
January 24, 2005... Insight Investment has announced it will be offering its fund of funds product as well as its ethical fund range through the Selestia fund supermarket. Insight will be offering 19 funds in total on the platform, including its 13 multi-manager...

In Brief: Speck joins Axa multi-manager.(AXA Investment Managers appoints Keith Speck )(Brief Article)
January 24, 2005... Axa Investment Managers has appointed Keith Speck as a portfolio manager in its multi-manager division. Speck previously worked as senior investment manager at Berry Asset Management. He will oversee fund and manager analysis and selection, as...

Correction: Nationwide CTF.(Correction Notice)
January 24, 2005... Nationwide will be providing one equity option as part of its child trust fund offering and not four as mentioned in last week's publication. Nationwide's CTF equity fund will be a tracker fund, which will track the FTSE All-Share index. It...

Fed fears force managers to rethink.
January 24, 2005... Global fund managers have turned markedly more hawkish following the publication of the Federal Reserve's minutes on January 4, according to the latest monthly survey by Merrill Lynch. The minutes of the Federal Open Markets Committee...

Large-caps are back in vogue at Threadneedle.(Threadneedle Investments)(Brief Article)
January 24, 2005... Threadneedle Investments' UK equity funds have shifted their exposure from small and mid-cap stocks and put more of their assets into FTSE 100 companies, according to Graham Kitchen, head of UK equities. Kitchen says: "The stockmarket is...

In Brief: F&C to waive charge on Isa.(investment trust )(Brief Article)
January 24, 2005... F&C will waive the initial #50 charge on its investment trust Isa until May 31. The group will also waive the #25 transfer fee when investors transfer a Pep or Isa to the F&C range of investment trusts until May 31. F&C currently offers 10...

In Brief: Isa discounts from Allianz and L&G.(Legal & General )(Allianz Dresdner Asset Management )(Brief Article)
January 24, 2005... Legal & General and Allianz Dresdner Asset Management have both announced discount offers on Isa investments. Allianz is waiving initial charges on Isa or Pep transfers into all of its investment trusts from February 1 to June 30. Legal &...

UBS and Ingenious in bond launches.(UBS Global Asset Management )(Ingenious Asset Management )
January 24, 2005... UBS Global Asset Management and Ingenious Asset Management have both launched fixed income funds taking advantage of new Ucits III regulations. Launching on March 21 this year into its UK Oeic, the UBS Absolute Return Bond fund will be...

Income funds maintain white list positions.(Brief Article)
January 24, 2005... Carl Stick's Rathbone Income fund has held its place in the top three of Principal Investment Management's "white list". The fund has been on the white list for four years and, according to Lipper Hindsight, achieved a total return (with...

In Brief: Close announces roadshow dates.
January 24, 2005... Close Finsbury is holding a number of investment roadshows in February and March. The roadshows are intended to provide a review of the product range, and will be held in Glasgow, Edinburgh, Manchester, London, Harrogate, Birmingham and...

In Brief: RateBuster fund rated by S&P.(DWS Investment)(Brief Article)
January 24, 2005... S&P has assigned DWS RateBuster an AAAf fund credit quality rating. The fund, which launches on March 21, was also given an S3 fund volatility rating. The fund will consist of a money market portfolio run by Anthony Fletcher as well as a...