Fund Strategy articles from July 2005

Fund Strategy archives from July 2005

Comment: All the world's a hedge fund now.
July 4, 2005... The boundary between hedge funds and conventional funds is becoming increasingly blurred. As James Teasdale shows in this week's cover story (page 20), the advent of Ucits III has allowed retail funds to switch increasingly to absolute return...

Franklin Templeton eyes UK market.
July 4, 2005... Franklin Templeton Investments is seeking to gain distributor status for and add sterling share classes to six of its 48 Luxembourg-based Sicav funds so they can be marketed to British investors. The asset manager will also launch four new...

Bonds dominate net retail sales figures in May.(Brief Article)
July 4, 2005... Net retail sales of investment funds totalled #230m in May, nearly 96% of which was invested in bonds, according to the Investment Management Association. Bonds accounted for #220m of net retail sales over the course of the month, while...

Change of direction for HSBC Hong Kong fund.(Hong Kong and Shanghai Bank)(Greater China Growth fund)
July 4, 2005... HSBC has converted its #24m Hong Kong Growth fund into a new fund with the objective of investing in equities from mainland China, Hong Kong and Taiwan. Based in Hong Kong, Philip Mok will continue to manage the fund, which has now been...

IN BRIEF: Gartmore hands over to Investec.(Brief Article)
July 4, 2005... The board of the #100m Gartmore SNT split capital investment trust has selected Investec Asset Management to provide a rollover vehicle. This follows its wind-up at the end of September. Investors will have the option to rollover into the...

IN BRIEF: New version of Britannic fund.(Brief Article)
July 4, 2005... Britannic has launched an institutional version of Barry Norris and Oliver Russ's #40m Britannic Argonaut European Alpha retail fund. The Britannic Argonaut European Alpha Pension fund, available to institutional investors, will invest in the...

IN BRIEF: UK GDP up only 0.4%, says ONS.(Gross domestic product)(Office for National Statistics)(United Kingdom)(Brief Article)
July 4, 2005... GDP in Britain rose 0.4% in the first quarter of the year, a downward revision from the original projection of 0.6%. According to the Office for National Statistics, the revision reflects lower estimates of business services output. Exports...

IN BRIEF: Product head Freeman joins ML.(appointed Paul Freeman as head of product for the Europe, Middle East, Africa and Asia Pacific region)(Merrill Lynch and Company Inc)(Brief Article)
July 4, 2005... Paul Freeman has joined Merrill Lynch Investment Managers as head of product for the Europe, Middle East, Africa and Asia Pacific region. The new position created by MLIM will see Freeman responsible for investment product development and...

IN BRIEF: Absolute Japan for Barings.(Brief Article)
July 4, 2005... Baring Asset Management has launched the Baring Japan Absolute Return fund. The fund will be run by Joji Maki and aims to generate an annual return of 15% and has three share classes: euro, dollar and yen. The fund is aimed at sophisticated...

IN BRIEF: Selestia assets reach #1bn.(Brief Article)
July 4, 2005... Assets under management at Selestia have reached #1bn for the first time, following a high level of new and re-registration business for the group in the second quarter. According to Selestia, this puts the company on target for profitability...

Harrison goes cautious on debt fears.(Leigh Harrison)(Credit Suisse Alpha Income fund)
July 4, 2005... The ballooning of household debt and the deterioration in British government finances are likely to contribute to a long period of sub- par growth, says Leigh Harrison, manager of the #100m Credit Suisse Alpha Income fund. Harrison, who...

Skelt to hand over three Fidelity funds of funds.(Brief Article)
July 4, 2005... Richard Skelt, leader of the portfolio strategies group at Fidelity, will pass the day-to-day management of several of Fidelity's multi- manager portfolios to members of his team on January 1 next year, according to the group. Three of...

Newton goes live with Global Opportunities.(Global Opportunities fund)
July 4, 2005... The Newton Global Opportunities fund launched last week. Run by global equity manager Alex Stanic, the fund will be managed in a similar style to John Wood's #124m Newton UK Opportunities fund. The Global Opportunities fund's mandate is...

IN BRIEF: EPP launches new central and east Europe fund.(Euro Property Prospects)(Brief Article)
July 4, 2005... Euro Property Prospects has launched a new fund, which will invest in commercial and residential property in central and eastern Europe. The New European Opportunities fund will invest in Poland, Croatia and Bulgaria, with a minimum...

IN BRIEF: The IMA asks for comment on best practice guide.(Investment Management Association)(Brief Article)
July 4, 2005... The Investment Management Association has invited comments on its exposure draft of an updated Statement of Recommended Practice (SORP) for authorised unit trusts and open-ended investment companies. Changes in the revision include the...

CORRECTION: Norwich UK Ethical fund.(Correction Notice)
July 4, 2005... The title used for the graph in Patrick Collinson's article on the Norwich UK Ethical fund (Fund Strategy June 27, 2005, page 28), should have read "Norwich UK Ethical" rather than "Norwich UK Equity", the heading that was printed. ...

PartyGaming sets sights on FTSE 100.(Financial Times and the London Stock Exchange)
July 4, 2005... PartyGaming, an online gaming company that operates internet sites such as PartyPoker, Starluck Casino and PartyBingo, was floated on the London Stock Exchange early last week. According to the exchange, the company opened its conditional...

Restructuring planned for Royal Dutch and Shell.(Brief Article)
July 4, 2005... The concentration of the largest companies in the FTSE 100 index is set to increase on July 20, following the unification of Royal Dutch and Shell Transport & Trading. Shareholders of both companies approved the restructuring on June 28....

New role for Thomas as Morley head of equities.(Tim Thomas )(Morley Fund Management )(Brief Article)
July 4, 2005... Tim Thomas is joining Morley Fund Management in the newly created role of head of equities. He will be responsible for about #33bn in equity assets under management. Thomas, who joins in September, will oversee the group's equity...

Harris takes reins of CSAM fund from Finn.(Stuart Harris)(Credit Suisse Asset Management )(Crispin Finn )(Brief Article)
July 4, 2005... Stuart Harris has taken over from Crispin Finn as lead manager of the #46m Credit Suisse Smaller Companies fund. Finn, who had been lead manager of the portfolio since July 1999, will continue to be involved with the fund as deputy fund...

IN BRIEF: UK stocks start July on a high.(Brief Article)
July 4, 2005... British stockmarkets performed strongly last week with the FTSE 100 closing at 5161, the FTSE 250 at 7446.2, and the FTSE All-Share at 2583.9. The FTSE 100 closed at its highest level since May 2002 and the FTSE 250 closed at an all-time high....

IN BRIEF: Burden to focus on global retail.(Merrill Lynch Investment Managers appoints Samantha Burden )(Brief Article)
July 4, 2005... Merrill Lynch Investment Managers has recruited Samantha Burden to its global equity team. Burden, who reports to head of global equities Ian Rowley, will be responsible for investment in the global retail sector. Burden was formerly a fund...

IN BRIEF: Fortis expands with Dryden buy.(Dryden Wealth Management )(Brief Article)
July 4, 2005... Fortis, a Benelux-based financial services provider, is to acquire Dryden Wealth Management from US-based Prudential Financial. Dryden offers discretionary and advisory investment management services in Europe and Asia, including Amsterdam,...

US rate hike reopens inflation debate.
July 4, 2005... The Federal Open Market Committee of America's Federal Reserve made a unanimous decision to raise interest rates by a quarter point to 3.25% last week. This is the ninth quarter-point hike in interest rates in America in the past year. ...

Jump in money supply 'could boost asset prices'.(in financial sectors)(Brief Article)
July 4, 2005... A surge in the British money supply is likely to bolster asset prices, according to Lombard Street Research. The economic consultancy's argument is based on the rapid expansion of M4 - a measure of "broad money" that includes deposits in...

Threadneedle adds to US equity weighting.
July 4, 2005... Threadneedle is increasing the American equity exposure in its global funds from underweight to neutral as it expects US economic and profits growth to remain strong. Andrew Holliman, manager of the Threadneedle American Growth fund,...

Analysis: Trade tensions between US and China threaten investors.
July 4, 2005... China's rampant economic growth has the rest of the world rattled. Nowhere is this more apparent than in intensifying Sino-American trade tensions. There is a growing fear that such tensions could develop into a trade war, with America...

TRENDS: Small-cap stumble deters buyers.
July 4, 2005... The UK smaller companies sector has outperformed over the last three years, but a growing aversion towards risk may be driving investors back to the relative safety of large-caps. Funds investing in British smaller companies have...

STRATEGY: Puncturing fund management myths.
July 4, 2005... Where investment management and the media meet, a number of myths have sprung up that have now become accepted wisdom. But in reality there are no simple formulas for success. The investment management industry ought to have nothing in...

Q&A: Cautiously optimistic on absolute returns.(Miles Geldard)(JPM Cautious Total Return fund)(Interview)
July 4, 2005... Miles Geldard, manager of the JPM Cautious Total Return fund, answers questions from Adam Lewis. Q: The fund is aiming to achieve a return 3% higher than that of cash (Libor). How exactly do you intend to do this? A: We are going to...

Absolute power.(European Union Ucits regulations)
July 4, 2005... The recent Ucits III regulations have encouraged the launch of a raft of new absolute return products, but what exactly are they? And can they really be as low-risk as they seem? Opinion in the investment industry appears to be divided, so...

Views of fund strategists.(Brief Article)
July 4, 2005... Tony Lanning - research and investment director at Origen "Historically we have not been big promoters of absolute return hedge funds, but the flexibility of Ucits III has changed things. We have recommended the Credit Suisse Target...

Views of fund strategists.(Brief Article)
July 4, 2005... Darius McDermott - managing director of Chelsea Financial Services "We are not generally using them, although a number of clients have invested in the DWS RateBuster fund within a cash Isa. There has been a raft of bond-type products...

CHANNELS: Keeping independence in the Schroders family.(Rupert Robinson)(Schroders Private Bank)(Interview)
July 4, 2005... Rupert Robinson, managing director of Schroders Private Bank, answers questions from Helen Burnett. Q: How does your investment advisory service work? A: In London the majority of our clients are discretionary clients rather than...

ANALYSIS: Knight moves with quiet confidence.(Gil Knight )
July 4, 2005... From his base in Philadelphia, away from the hubbub of Wall Street, Gartmore US Opportunities manager Gil Knight takes full advantage of his freedom to roam all over the stockmarket. It is becoming more difficult to "read" America than at...

FOCUS: A slow progress to a UK presence.(Franklin Templeton )
July 4, 2005... It took Franklin Templeton 12 years to launch a second fund in the UK, but now it has plans to become one of the top 20 retail asset managers in Britain in the next five. By Simon Hildrey. Franklin Templeton Investments is not an asset...

FoFs: Balancing act at the top of the tables.(Fitzwilliam Multi-Manager fund )
July 4, 2005... As the Fitzwilliam Multi-Manager fund celebrates its 10th anniversary, lead manager Sharon Segal explains how an active approach has placed it at the top of the Balanced Managed sector. This week the Fitzwilliam Multi-Manager fund...

Fund of funds performance data.
July 4, 2005... The M&G Managed fund retains its position at the top of the one-year table of Balanced Managed funds of funds, with a 12-month return to June 27 of 17.9%, comfortably beating the sector average gain (funds of funds only) of 13.72%. The...

Fund Manager's Diary: 22-29 June 2005.(Oliver J Russ)(Britannic Argonaut European Alpha fund)
July 4, 2005... Wednesday One of the pleasures of working in a boutique in Belgravia is walking to work. Although this takes the best part of an hour, it does mean a leisurely saunter up the King's Road, minus the usual shopping crowds. This is immeasurably...

Asian savings glut is self-serving theory.
July 11, 2005... Any idea that is self-serving should be examined with particular scepticism. The fact that vested interests are involved in promoting a theory does not necessarily mean it is wrong, but it signals that careful scrutiny is in order. The...

Resilience gives hope for future.(London Terrorist Bombings)
July 11, 2005... One certainty about last week's London bombings is that they will have a minimal economic impact. The murder of dozens of people - the exact number was unknown as we went to press - is of course a tragedy for their family and loved ones. But...

New Star set to branch out into high-yield bonds.(Brief Article)
July 11, 2005... New Star Asset Management is planning to launch European high-yield bond and emerging market debt funds. A decision will be made on whether to add the two funds to its Dublin Oeic range by the end of July. The asset manager has spoken to...

Aberdeen adds DB fund management divisions.(Deutsche Bank)
July 11, 2005... Aberdeen Asset Management is to acquire several of Deutsche Bank's fund management businesses, including DWS Investments UK. The deal includes the British asset management and Philadelphia fixed income divisions of Deutsche Bank. Assets...

IN BRIEF: M&G Capital gets change of name.(Brief Article)
July 11, 2005... Mike Felton's #164m M&G Capital fund is to be renamed the M&G UK Select fund from September 19. This reflects the portfolio's new investment approach, according to M&G. Felton, who took over management of the portfolio in January 2005, uses...

IN BRIEF: New HIM moniker ties in with parent.(Brief Article)
July 11, 2005... Hichens Investment Management has been renamed to PSigma Investment Management. HIM has been a division of PSigma Investment Limited since October 2003. The decision to change names is to reflect HIM's close ties with other PSigma group...

IN BRIEF: Ecofin gets boost to Water & Power.(Brief Article)
July 11, 2005... The Ecofin Water & Power Opportunities investment trust, managed by Ecofin, has increased its share capital by 30% through a placing of new ordinary shares. The placing, sponsored by Citigroup and Collins Stewart, raised an additional #50m...

IN BRIEF: Close to acquire Escher MoM.(Brief Article)
July 11, 2005... Close Finsbury Asset Management is to acquire 100% of the share capital of institutional manager of managers Escher UK Asset Manage-ment. Escher was founded in 2000 by former William M Mercer managers Stuart Gordon and Steve Delo, and has...

IN BRIEF: Aberdeen New Dawn rises 9.3%.(Brief Article)
July 11, 2005... The net asset value per share of the Aberdeen New Dawn investment trust grew by 9.3% during the year ending April 30, according to the trust's preliminary results. This compares with a 13.2% return by the MSCI Asia Pacific (ex Japan) index....

IN BRIEF: Merrill launches four new funds.(Brief Article)
July 11, 2005... Merrill Lynch Investment Managers has launched four new funds within its liability solutions product range. The Target Return, Higher Performance over 5 years Index Linked Gilt, High Performance over 15 years Gilt, and High Performance Cash...

Bond yields 'set to fall further still'.
July 11, 2005... Global bond yields are to fall further from their current lows over the following nine to 12 months and will stay at this level for next two to three years. This is the view of Schroders' head of global fixed income Bob Michele. ...

Quester VCT merger is beginning of a trend.(Brief Article)
July 11, 2005... Following shareholder approval last month, Quester has successfully merged its three venture capital trust offerings into one vehicle with combined assets of #53.8m. Investors in Quester VCT 2 are to receive 1,024 new VCT shares for every...

Jupiter Japan Income will stick to equities despite Nurs freedom.
July 11, 2005... Despite having the flexibility of investing in multiple asset classes, the Jupiter Japan Income fund is set to launch in September with most of its portfolio invested in direct equities. Subject to approval from the Financial Services...

IN BRIEF: Holtham sets up Cayman hedge.(Gerald Holtham)(Brief Article)
July 11, 2005... Gerald Holtham, a former CIO at Morley Fund Management, has set up Cadwyn Global, a macro hedge fund domiciled in the Cayman Islands. The joint venture was founded by Holtham, Cadwyn Capital and Schneider group subsidiary PCE Investors. Holtham...

IN BRIEF: MLIM wins #20m Hansard mandate.(Brief Article)
July 11, 2005... Merrill Lynch Investment Managers has won the mandate to run a #20m European Managed portfolio on behalf of Hansard Europe and Hansard International. It will initially be 85% invested in MLIIF European Equity funds. The remaining 15% will be...

IN BRIEF: Lehman appoints new Europe MD.(appointed Thierry Sciard as managing director and head of investment management for Europe.)(Brief Article)
July 11, 2005... Lehman Brothers has appointed Thierry Sciard as managing director and head of investment management for Europe. Sciard will oversee the strategic development of the group's European investment management business. He reports to Europe chief...

Cane takes over F&C Equity Income.(Julian Cane )(F and C Investment Management Ltd.)
July 11, 2005... Julian Cane has made several changes to the #258m F&C UK Equity Income unit trust to bring it into line with the F&C Capital & Income investment trust he already manages. This follows his appointment as manager of the unit trust last week,...

End of the road for Framlington Distribution FoF.(fund of funds)(Brief Article)
July 11, 2005... Framlington is to close its Managed Distribution fund and liquidate the portfolio from September 30. The #13m portfolio, managed by Richard Peirson, is a fettered fund of funds currently investing in six Framlington unit trusts. ...

Premier zero fund in switch to property.
July 11, 2005... Premier has converted its #9.5m Zero Preference fund into a new pan- European property fund, which will invest in the shares of both commercial property companies and investment trusts. Shareholders in the Zero Preference fund recently...

IN BRIEF: Axa REIM wins CIS Property deal.(Brief Article)
July 11, 2005... The Co-operative Insurance Society has appointed Axa Real Estate Investment Managers to run its #2.5bn CIS Property portfolio. Axa REIM, a subsidiary of Axa Investment Managers, will manage a portfolio of about 160 properties including offices,...

IN BRIEF: F&C gets new marketing chief.(appointed Linda Webb as director, marketing.)(Brief Article)
July 11, 2005... F&C has appointed Linda Webb as director, marketing. She will focus on the F&C investment trust range, supporting the development of the group's Oeic business and direct marketing campaigns. Prior to joining F&C, she was at Isis Asset...

IN BRIEF: Gartmore opens research centre.(Brief Article)
July 11, 2005... Gartmore has opened a research office in Hong Kong, managed by Frank Ho, who is currently senior technology strategist on the Pacific & emerging markets team. The office is part of the group's proprietary research operations. The main focus...

Insight opens funds to N&P clients.(Norwich and Peterborough Building Society)
July 11, 2005... Insight Investment has secured a deal to offer three of its multi- manager funds through the Norwich and Peterborough Building Society's financial advice service. N&P customers will be able to access the #18m Balanced, #24m High Income...

Cazalet proclaims benefits of multi-managers.(Ned Cazalet of Cazalet Consulting)(Brief Article)
July 11, 2005... For pension investors a multi-manager approach may provide a better- performing alternative to single-manager with-profits funds, according to insurance analyst Ned Cazalet of Cazalet Consulting. Commenting in an independent report...

Framlington Managed Balanced shifts bias.
July 11, 2005... The shape of the #87m Framlington Managed Balanced fund has changed dramatically over the past 12 months, according to fund manager Richard Peirson. Previously biased towards British domestic earnings with exposure to housebuilders and...

NEWS ANALYSIS: Hong Kong softens exposure to China for wary investors.
July 11, 2005... East Asia has become a popular area in which to invest, with several hundred funds available to British investors that provide exposure to the Far East excluding Japan sector. Many of these funds have significant holdings in Greater China...

TRENDS: Giving ethical funds a green light.
July 11, 2005... A combination of regulation change and increasing goodwill towards the sector has seen the number of ethical funds available to European investors rise dramatically in the last five years. Ethical funds available to European investors have...

STRATEGY: It's time to face facts, not fears.
July 11, 2005... After two tremendous years for smaller companies, investors are scuttling back to the relative safety of the FTSE 100. But there are two big reasons why small-caps should continue to do well. Despite continued weakness in the British...

Q&A: Hold your nerve when performance dries up.(Adrian Paterson)(Artemis UK Growth fund)(Interview)
July 11, 2005... Adrian Paterson, manager of the Artemis UK Growth fund, answers questions from Adam Lewis. Q: The UK Growth fund has suffered in performance terms over the last three months and one year. What has caused this? A: There have been a...

Asian economic boom or bust?
July 11, 2005... Copyright: Centaur Communications Ltd. and licensors As the Asian economy heading for a slowdown? The question is clearly critical to Asia itself - home to most of the world's population and its fastest-growing economic region. It is also...

An Asian savings glut?
July 11, 2005... In recent months a new explanation of the massive imbalances between America and Asia has become the orthodoxy. The new argument, favoured by the American authorities, puts the blame for the imbalances on Asia rather than America. The...

GDP growth (%) for selected countries.(Gross domestic product)(Brief Article)
July 11, 2005... GDP growth (%) for selected countries Country 2002 2003 2004 2005 2006 China 8.3 9.3 9.5 8.5 8.0 Germany 0.1 -0.1 1.7 0.8 1.9 Japan -0.3 1.4 2.6 0.8...

CHANNELS: Independence is key to long-term relationships.(Patrick Connolly)(John Scott and Partners research and investment )(Interview)
July 11, 2005... Patrick Connolly, John Scott & Partners research and investment manager, is questioned by Helen Burnett. Q: How is John Scott & Partners structured? A: The principal shareholder of John Scott & Partners is Palamon Capital Partners,...

ANALYSIS: Kitchen spices up a dull portfolio.(Graham Kitchen)(Threadneedle Select Growth Funds)
July 11, 2005... Threadneedle UK Select Growth is almost the worst fund in its sector over one year - lucky for it, then, that it is now being managed by a Guardian-reading alumnus of Invesco Perpetual. The figures for Threadneedle UK Select Growth are...

FOCUS: Allchurches spreads its message.(Company Profile)
July 11, 2005... Allchurches has grown out of a church buildings insurer to offer all kinds of financial services. Now it wants to attract clients from beyond the ecclesiastical community. By James Teasdale. Allchurches Investment Management Services is...

FoFs: Mastering all multi-manager skills.(Funds of fund)
July 11, 2005... John Kelly, head of client investment, explains how building investment portfolios in Abbey's multi-manager range around clients' risk profiles helps maintain gentle outperformance. In a multi-manager market increasingly polarised between...

Fund of funds performance data.
July 11, 2005... The top three funds of funds in the Investment Management Association's Cautious Managed sector over one year to July 7 remain unchanged from last month's rankings. CF Miton Extra Income Portfolio leads the field with a 12-month return of...

Fund Manager's Diary: 27 June-3 July 2005.
July 11, 2005... Monday I attend the Portfolio Strategies Group weekly market review first thing, followed by a tactical asset allocation update meeting where we decide to leave things as they are for the time being - namely our overweight positions in Europe...

COMMENT: Big can be better in a well-managed fund.
July 18, 2005... There is a widespread assumption that super-size funds are necessarily bad. With a few exceptions, such as funds run by Anthony Bolton and Neil Woodford, they are regarded as suffering from the investment equivalent of obesity. From this...

Schroders swoops for Howard-Spink.
July 18, 2005... European fund managers Adriaan de Mol van Otterloo and Zafar Ahmadullah are to leave Schroders to set up their own separate asset management boutiques. To replace them, Schroders has recruited Leon Howard-Spink from Jupiter to follow...

FundsNetwork ties up with Standard Life for Sipp.(Self Invested Personal Pension)(Brief Article)
July 18, 2005... Fidelity FundsNetwork has entered into an agreement with Standard Life to offer self-invested personal pensions and an onshore investment bond through the supermarket platform. Standard Life is to be the Sipp provider, trustee and...

Marlborough in clash over Quantock move.(Marlborough Associates)(Quantock UK)
July 18, 2005... Marlborough Fund Managers is taking over as authorised corporate director of the #30m Matrix Quantock UK Growth fund following a vote from shareholders to remove Matrix Money Management. Matrix is considering legal action. The transfer of...

IN BRIEF: Wagstaff to join New Star.(Phil Wagstaff)(Brief Article)
July 18, 2005... Phil Wagstaff is to join New Star as UK retail sales and marketing managing director. Wagstaff, who left M&G Investments in 2004 where he was managing director of the group's British retail business, will join New Star on September 7. He...

IN BRIEF: Threadneedle repairs bond team.(Threadneedle Investments appoints David Backhouse and Michael Poole )(Brief Article)
July 18, 2005... Threadneedle Investments has appointed two new members to its high- yield bond team. David Backhouse is to move into the team from his previous role as analyst on investment-grade corporate bonds. Michael Poole joins from Muzinich, an...

IN BRIEF: Harries returns to Newton.(James Harries)(Brief Article)
July 18, 2005... James Harries has returned to Newton Investment Management only one year after leaving the group. Harries joins the global equity team as a director of investment management. He previously worked at Veritas Asset Management. Copyright:...