Fund Strategy articles from July 2007

Fund Strategy archives from July 2007

COMMENT: Brown's tenure was a productivity failure.
July 2, 2007... The conventional wisdom is that Gordon Brown's 10-year tenure as chancellor of the exchequer was a success. One of the main arguments against this view is his abject failure to meet his stated aim of closing the productivity gap with Britain's...

JPM to fix British Oeic fee structure.
July 2, 2007... JP Morgan Asset Management (JPMAM) is simplifying the pricing structure across its range of British Oeics. Subject to shareholder approval, all charges and other expenses will be set at a fixed rate from September 1. JPMAM says this...

Axa Framlington re-opens Luckraft's Equity fund.
July 2, 2007... Axa Framlington has re-opened George Luckraft's #1 billion Equity Income fund to new investors. The firm re-introduced initial commission on the portfolio this week, after stopping the payments in March 2005 to discourage inflows. Robert...

New Star retail chief leaves for Gartmore.
July 2, 2007... Phil Wagstaff has left New Star Asset Management to join Gartmore Investment Management. Wagstaff joined New Star 18 months ago as managing director of retail sales and marketing. He is expected to join Gartmore in early October...

IN BRIEF: Argonaut takes on SIML mandates.(Brief article)
July 2, 2007... Skandia Investment Management Limited (SIML) has awarded #154m of its European mandates to Resolution Argonaut and Alliance Bernstein. Argonaut, set up by Resolution Asset Management in conjunction with Barry Norris and Oliver Russ, will run...

IN BRIEF: Investec hires Insight manager.(Brief article)
July 2, 2007... Investec Asset Management has appointed Jacob Robbins to manage its $154m (#80.7m) Global Dynamic fund. Prior to joining Investec in 2005, Robins worked at Insight Investment as an associate director in international equities. The Global...

Bonds see big outflows despite high yields.
July 2, 2007... Despite bond yields hitting a seven-year high, the UK Corporate Bond sector witnessed net outflows of #134m in May, according to the latest Investment Management Association (IMA) statistics. This was the largest outflow of any IMA...

Swip unleashes Sicav on Continent.
July 2, 2007... Scottish Widows Investment Partnership (Swip) has launched a Luxembourg- based Sicav range of funds. Swip, which is part of the LloydsTSB group and has #103.6 billion in assets under management, will use the Sicav to distribute funds to...

Strategist advises delay on buying luxury goods.
July 2, 2007... The luxury-goods theme is a long-term positive story but now is not the best time to buy. This is the view of Fredrik Nerbrand, head of global strategy, group private banking at HSBC. The aspiring middle class emerging in Asia is driving...

IN BRIEF: Lyxor unveils two commodities ETFs.(Brief article)
July 2, 2007... Lyxor Asset Management, a subsidiary of Societe Generale, has launched two exchange traded funds (ETFs) investing in commodities. The Lyxor Commodities CRB and Commodities CRB Non-Energy ETFs are linked to the Reuters/Jefferies CRB index,...

Association on brink of victory with fee exemption case.
July 2, 2007... Investment trusts are set to gain exemption from VAT on their management fees, following a ruling from the European Court of Justice (ECJ) last week. The Association of Investment Companies (AIC) is awaiting a response from HM Revenue &...

Threadneedle unveils Global Equity Income fund.
July 2, 2007... Threadneedle has launched a Global Equity Income fund. The portfolio is run by Steve Thornber, with Jeremy Podger in the role of deputy manager. The firm has also announced the appointment of William Frewen as its head of fixed income...

Review of professional powers prompts calls for clarity.
July 2, 2007... The Financial Services Authority's (FSA) Retail Distribution Review (RDR) is part of a spate of regulatory initiatives that aim to define the financial services market for the next generation. The Markets in Financial Instruments Directive...

STRATEGY: China prioritises financial reform.
July 2, 2007... Reform of the financial sector should help bolster China's domestic demand by aiding its massive rural economy as well as enabling individuals and companies to invest overseas. Back in 1978, China began its metamorphosis from a...

TRENDS: Bad press masks many advantages.
July 2, 2007... Private equity is shrouded in mystery and some say it is no more than leveraged buyouts with a face-lift - but economic conditions have improved and the good funds are worth ferreting out. It is a rule of public relations that we are all...

COMMON THREAD: Weaving its way.
July 2, 2007... Exchange traded funds - including Spyders - are versatile, easy to run and cheaper than standard collective investments. They are a big hit in America and seem set to take off in Britain, writes Vanessa Drucker in New York. Exchange...

COMMON THREAD: Exchange traded funds.
July 2, 2007... The growth in exchange traded funds (ETFs) has exploded over the past five years. In about 2000, hedge funds began to use them as trend following instruments; two years later, fund managers and private clients joined the fray, employing them...

ANALYSIS: Patient fund awaits end of bull run.
July 2, 2007... Hugh Young, managing director of Aberdeen Asset Management, focuses on a team-based approach and awaits the end of the bull run to reap rewards from his Asia Pacific fund. These are tough times for Hugh Young, managing director of...

CHANNELS: Established firm offers finely-tuned services.(Company overview)
July 2, 2007... Keith Richards, distribution and development director of Tenet, answers questions from Will Jackson. Q: How did Tenet get started? A: Tenet is the largest independently-owned IFA group in Britain, supporting 5,500 advisers through...

AFI: Rule opens door to multi-managers.
July 2, 2007... The panellists added six multi-manager portfolios following a relaxation of the rules, bringing the total to 11 funds across all three indices and allowing access to a wider range of asset classes. The rules regarding multi-manager funds...

FoFs: Fixed income hike promises results.
July 2, 2007... Brian White, who runs the GHC Strategic Managed fund, forecasts healthy returns from his newly acquired bond allocation, which replaced some of the portfolio's weighting in British equity. Brian White, head of collectives at GHC Fund...

Q&A: Firm builds solid future with bricks and mortar.(Interview)
July 2, 2007... Stuart Webster, head of global property at New Star Asset Management, is questioned by Adam Lewis. Q: The fund took in record inflows last month at launch. Are you concerned that people are investing in property for the right reasons -...

FOCUS: Old group revs up for growth drive.
July 2, 2007... F&C covers a lot of territory - with corporate bonds and ethical funds doing well - and it plans more specialist launches, including private equity and 130/30 funds, writes Neal Underwood. Formed following a merger between F&C and Isis...

Fund Manager's Diary: 11-17 June 2007.
July 2, 2007... Monday Having spent the weekend hacking through the undergrowth in the garden, the 5.45am alarm is a shock to my aching body. Mondays tend to be a quiet day for company announcements. Mid-morning meeting with a broker to discuss small caps,...

COMMENT: Increased affluence changes global trade.
July 9, 2007... Agriculture has become a relatively niche enterprise in modern industrial economies. However, the latest 10-year Agricultural Outlook from the Organisation for Economic Development (OECD) and Food and Agriculture Organisation (FAO) of the...

Resolution poaches three managers.
July 9, 2007... Resolution Asset Management has poached three members of Fidelity's multi-manager team. Chris Ralph, Jason Collins and Simon Mungall are all expected to join the firm in the fourth quarter. The three men will set up a multi-manager...

AGI plans to expand its British retail offering.
July 9, 2007... Nick Smith, head of retail at Allianz Global Investors (AGI), says it is looking to expand its British retail offering with a range of 130/30 funds. He also confirms that AGI has started test-marketing an onshore version of its...

First 130/30 fund from UBS takes in #30m.
July 9, 2007... UBS Global Asset Management's 130/30 US Equity fund accumulated assets approaching #30m when the offer period for the fund closed on Friday last week. Managed by Tom Digenan, the long/short hybrid fund began investing this week. Peter...

IN BRIEF: Credit Suisse hires director.(Brief article)
July 9, 2007... Credit Suisse has appointed Richard Dryer as a director and head of its UK asset management fixed income business. He is expected to arrive in the autumn and will report to Paul Griffiths, the firm's head of fixed income. Dryer joins the...

IN BRIEF: Bedlam AM hires two new recruits.(Brief article)
July 9, 2007... Bedlam Asset Management has appointed Felicity Smith as the manager of its European fund. She will also co-run the firm's UK and Bedlam 200 portfolios, alongside Jonathan Compton, Bedlam's managing director. Smith previously spent six years...

IN BRIEF: Norwich Union promotes Cabral.(Brief article)
July 9, 2007... NU has promoted Donna Cabral to lead manager on its Corporate Bond fund. The change follows Paul Mingay's move to head Morley's newly- created solutions and structures team. Mingay is responsible for running a large portion of NU's bond assets...

Yiu to work with Steer at New Star.
July 9, 2007... New Star has hired Stephen Yiu from Hargreaves Lansdown to work with Tim Steer on its #433m UK Alpha fund. Yiu, a member of Hargreaves Landown's fund of funds team, left the firm this week and will join New Star later this summer. ...

Outflows prompt SLI to reprice property funds.
July 9, 2007... Standard Life Investments (SLI) has changed the way its prices several of its property funds as a result of outflows of investors capital. Following six months of poor returns from the sector, the group has altered the pricing on five of...

Insight changes funds to absolute returns.
July 9, 2007... Insight Investment is changing two of its multi-manager funds into absolute return vehicles. The Wealthbuilder Growth fund will become Diversified Dynamic Return, while the Wealthbuilder High Income will be Diversified High Income. Both...

IN BRIEF: SGAM unveils sharia trackers.(Brief article)
July 9, 2007... SGAM Alternative Investments is launching a range of index funds compliant with Islamic law, linked to Standard & Poor's sharia indices. The funds will track the S&P US Shariah Index, S&P 350 Europe Shariah Index, S&P 500 Japan Shariah Index,...

Guidelines set to simplify equity income calculations.
July 9, 2007... Yields on equity income funds will become easier for investors to compare by this autumn, if product providers adopt guidelines being developed by the Investment Management Association (IMA). Under the association's initiative, providers...

High demand fuels soft commodities.
July 9, 2007... The rally in agricultural commodities is structural rather than cyclical, says F&C's Asia team. Mark Williams, manager of the #285m Pacific Growth fund, and Peter Dalgliesh, manager of the #167m Pacific Assets trust, are positive about the...

Schroder re-opens its Japan Alpha Plus fund.
July 9, 2007... The #147m Schroder Japan Alpha Plus fund, managed by Nathan Gibbs, has re-opened to investors for the first time since 2004. The reason for re-opening the fund is an increased level of investment opportunity in Japan, says Robin Stoakley,...

CORRECTIONS: Fund Strategy - 02.07.07.
July 9, 2007... There were two errors in last week's issue of Fund Strategy. In Patrick Collinson's Analysis column (page 22) the one-year return for the Aberdeen Asia Pacific fund should have read 31.3% rather than as stated. In the Adviser Fund Index (AFI)...

Property investors head east in search of higher yield.
July 9, 2007... In the 19th century, Americans were told to go west to make their fortune. Investors are now being told to go east to make money from commercial property after the strong returns from Britian over the past few years. Investors may have already...

STRATEGY: Europe and Japan lead solid growth.
July 9, 2007... Emerging countries' growth will slow steadily and a tightening of monetary policy will push interest rates up in advanced economies, but the health of the global economy looks good. The global economy has continued to grow at a robust...

TRENDS: Quest for alpha spawns new breed.
July 9, 2007... Investors' need to generate alpha has sparked a surge in 130/30 products - funds that provide absolute returns by using leverage and betting on falling stocks as well as rising ones. There has been a discernible shift in attitudes among...

Q&A: Mix of assets can help funds achieve results.(Interview)
July 9, 2007... Adrian Jarvis, co-manager of the Morley Tactical Asset Allocation absolute return funds, talks to Adam Lewis. Q: It was reported last month that not one absolute fund rated by Standard & Poor's met its investment objective over the past 12...

OPEN HOUSE: Exclusive rights.
July 9, 2007... Proposals to introduce open-ended funds of hedge funds are set to shake up this once exclusive industry by widening access for retail distribution in Britain. But poor understanding of a complex field may hamper take-up, writes Will Jackson....

OPEN HOUSE: Hedge fund strategies.
July 9, 2007... Aggressive growth: Invests in equities expected to experience acceleration in growth of earnings per share. Hedges by shorting equities where earnings disappointment is expected, or by shorting stock indices. Tends to be "long-biased". Expected...

ANALYSIS: Flagship trust eyes up old europe.
July 9, 2007... Peter McKellar, chief investment officer for Standard Life Investments' private equity wing, says the vintage years may have passed, but there are still rich pickings in continental Europe. Which funds have performed best in the past...

REVIEW: Lucid primer lacks deeper insights.
July 9, 2007... David Smith examines the rise of China and India with a chronological approach. But an over-reliance on mainstream ideas misses the real significance of developments in both countries. A few years ago David Smith, the economics editor of...

AFI: Absolute funds make poor returns.
July 9, 2007... Many absolute return funds failed to outperform cash last year, but after a healthy first quarter in 2007, the outlook is more positive and they are on track to reach their full-year return targets. As reported in Fund Strategy (June 25,...

Fund of funds performance data.
July 9, 2007... Out of 44 funds in the Investment Management Association (IMA) Balanced Managed sector (fund of funds only) only one posted a negative return over one year to July 2, according to Morningstar. While the mean return of the sector was 13.39%,...

FOCUS: MPC patiently pursues perfection.
July 9, 2007... MPC boosted its profile when it hired Ajay Gambhir - and it plans to launch more funds and to cherry-pick top-notch managers in the quest for a first-rate reputation, writes Simon Hildrey. Boutiques are no longer a rarity. Whether it is...

FUND MANAGER'S DIARY: 25 June to 1 July 2007.
July 9, 2007... Monday Spend the morning catching up on a backlog of emails and voice messages before my meeting with the Indonesian building materials and construction analyst from Credit Suisse. This is one of the more exciting investment areas at the...

COMMENT: Tax concessions fail to boost savings.
July 16, 2007... The government's strategy to promote personal savings has failed. A report by Scottish Widows gives the statistics.* The household savings ratio, currently between 5% and 6%, is significantly lower than it was 10 years ago (just over 9%)....

Three groups unveil plans to change bond fund range.
July 16, 2007... Several fund groups have announced plans to modify their bond fund ranges. Baring Asset Management plans to merge its Sterling Corporate Bond unit trust into its institutional Intermediate Bond fund, to create a single Oeic. As both...

M&G aims to exploit "sweet spot" with new fund.
July 16, 2007... M&G has unveiled a Global Convertibles fund. Its manager, Leonard Vinville, aims to generate returns from a selection of 40-60 convertible bonds. About two-thirds of the fund is common with the convertibles allocation of the Prudential...

IN BRIEF: BGI adds ETFs to iShares range.(Brief article)
July 16, 2007... Barclays Global Investors has added three exchange-traded funds (ETFs) to its iShares range. The company has launched S&P Global Clean Energy, MSCI Europe and S&P/MIB ETFs. According to BGI, the energy fund is the first clean energy ETF to...

IN BRIEF: Swip unveils Sicav range of funds.(Brief article)
July 16, 2007... As first revealed in Fund Strategy (July 2, page 8) Scottish Widows Investment Partnership (Swip) has launched a Luxembourg-based Sicav range of funds. The Sicav, which is aimed at the continental European market, will include a range of Swip...

Outflows prompt change to bid basis.
July 16, 2007... New Star and Norwich Union moved their UK commercial property unit trusts from an offer-pricing basis to a bid basis last week, after their respective funds saw a net outflow of funds. This follows the story in last week's Fund Strategy...

Abbey National moves two funds in-house.
July 16, 2007... The management of the #1.2 billion Abbey National UK Growth and #300m Abbey National UK Equity Income funds is to move in-house. Richard Moore, formerly head of the UK large-cap desk at Old Mutual Asset Management, will take over the UK...

Gam adds two American funds to its Star range.
July 16, 2007... GAM has added two American equity funds to its Star range, both of which are run by external American-based managers. Manning & Nappier will run the GAM Star US All Cap fund and Advisory Research will manage the GAM Star US Small Cap...

IN BRIEF: 7IM plans to set up trading firm.(Brief article)
July 16, 2007... Seven Investment Management (7IM) has unveiled plans to form a separate firm trading under its own Financial Services Authority licence. Zurich will hold a minority stake in the firm. 7IM will retain control of the day-to-day running of the...

CORRECTION: AFI Column - 9 July 2007.(Correction notice)(Column)
July 16, 2007... There was an error in last week's AFI column (page 26). Jonathan Wallis was incorrectly referred to as head of fund research at Origen Investment Services. Wallis is head of retail fund research at Allenbridge Group. Copyright: Centaur...

Better ties with China bodes well for Taiwan's economy.
July 16, 2007... After years of sluggishness and depressed sentiment, signs abound that the worst may be over for Taiwan's economy. And the optimism is being reflected in the island's stockmarket, now at its highest level in seven years. Last month it was...

STRATEGY: Cycle is on brink of liquidity phase.
July 16, 2007... Investors should not heed the macro picture too much - the investment cycle is affected less by the global economy, including imbalances in America and China, and more by sentiment. Many investors are concerned about the global economy...

TRENDS: Money supply is vital cog in system.
July 16, 2007... Mervyn King, the governor of the Bank of England, last month stressed the importance of the rate of money supply to the economy - but economists need to fully understand its role. During his speech to the Welsh Confederation of British...

Q&A: Interest rates will fall in 2008 as growth slows.(Interview)
July 16, 2007... Michael Taylor, senior economist at Lombard Street Research, answers questions from Simon Hildrey. Q: Why have interest rates continued to rise? A: Interest rates have been raised because there has been a need to tighten monetary...

POSITIVE REACTION: Power play.
July 16, 2007... The advent of 130/30 funds widens opportunities for managers to generate alpha from both undervalued and overvalued stocks. But the process requires sophisticated stockpicking skills to deliver results. Frances Hughes reports. Alpha plus...

POSITIVE REACTION: American 130/30 funds.
July 16, 2007... It is estimated there is $50 billion (#26 billion) invested in 130/30 strategies in America, with most of this money being invested in pension or institutional funds. BGI, Mellon and State Street are among the biggest players. Indeed...

ANALYSIS: Trust taps hefty rewards in utilities.
July 16, 2007... Global demand for power has soared, driven by spending on infrastructure in America and Asia - and Premier Utilities has benefited, with shares up more than 54% over one year. The oil price is at an 11-month high, rising above $76 in...

CHANNELS: Firm provides special advice to busy clients.
July 16, 2007... Stephen McGuire, the director of Paradigm Wealth Management, is questioned by Neal Underwood. Q: How did Paradigm Wealth Management start? A: Paradigm Wealth Management took over the business of an appointed representative of ISL, one...

AFI: Demand fuels growth of boutiques.
July 16, 2007... The popularity of boutiques has rocketed - three managers are set to quit Fidelity to form a multi-manager range at Resolution - and some of the panellists added more to their holdings in May. Boutique fund management firms have come to...

Fund of funds performance data.
July 16, 2007... The 30 funds in the Investment Management Association (IMA) Cautious Managed sector (fund of funds only) produced an average return of 8.15% over one year to July 9, 2007, according to Morningstar. Not one fund over the time period produced...

FOCUS: Group ethos aims to nurture talent.
July 16, 2007... Barings has had a busy year. New funds, extensive recruitment and the appointment of Tim Scholefield as head of global equities have kept it in the news. Adam Lewis reports. The last time Fund Strategy reviewed Baring Asset Management...

Fund Manager's Diary: 28 June to 5 July 2007.
July 16, 2007... Thursday The day starts at 6.30am. My first task is to check the Asian markets and newsflow, so that I have time to react when I reach the office. My first meeting is with a fund of funds client from Europe who is considering investing in...

COMMENT: Cleaning up poverty is top of China's list.
July 23, 2007... Last week seemed to be Bash China Week. Suddenly there was a widespread discussion of China's supposed failings. Rather than caricature what is said, it is probably best to quote it verbatim. A cover story in Business Week, a prestigious...

Witan changes increase focus on India and Australia.
July 23, 2007... The board of the Witan investment trust has made the first changes to the multi-manager line-up it adopted in October 2004. Comgest and Orbis have taken on APS Asset Management's Pacific excluding Japan allocation, which has been split...

Boost for Resolution's American performance.
July 23, 2007... The restructuring of the #124m Resolution American Growth fund has vastly improved its performance over the past six months, the group says. Terry Ewing, joint manager of the fund with Alison Porter, rejoined Resolution from Old Mutual in...

IN BRIEF: New global green fund nets #49m.(Brief article)
July 23, 2007... In the run-up to the September of launch of the onshore Schroder Global Climate Change fund, the group has announced that the international version of the fund has accumulated $100m (#49m) since its launch in June. This represents growth of...

IN BRIEF: New Star reveals interim figures.(Brief article)
July 23, 2007... New Star has announced interim results for the six months ending June 30. The firm increased assets under management by 17% during the period, to #24.7 billion. Net inflows were #2.3 billion, compared with #851m in the first half of 2006....

IN BRIEF: IMA responds to green paper.(Brief article)
July 23, 2007... The Investment Management Association (IMA) has urged the European Commission to treat different savings products equally, in terms of information provided for investors. The response follows the commission's publication of its green paper on...

Fidelity goes large in South Africa.
July 23, 2007... The new Fidelity International Emerging Europe, Middle East and Africa (EMEA) fund has immediately taken a large overweight position in South Africa. As first revealed in Fund Strategy (May 28, page 5) the fund, managed by Nick Price,...

Latin American fund hits top spot in first year.
July 23, 2007... The HSBC Global Investment Funds (GIF) Latin American Freestyle fund has gained 76.95% since its launch one year ago. This positions it in the top 1% of all 13,349 mutual funds globally, according to Lipper. Launched on July 6, 2006, the...

Investec launches its own brand of 130/30.
July 23, 2007... Investec has launched a fund that takes both long and short positions while retaining a net long exposure of 100%. However, unlike a spate of new funds being launched in Britain, Investec has not branded the fund 130/30. Instead it...

IN BRIEF: Axa IM appoints two for portfolios.(Brief article)
July 23, 2007... Axa Investment Managers has appointed Mark Benstead and Philip Chow as portfolio managers in its British fixed income team. Both men will report to Denis Gould, head of fixed income UK & Asia. Benstead joins the group from Royal Bank of...

Discounts widen as investors fight shy of equity funds.
July 23, 2007... The average sector discount to net asset value (NAV) for investment trusts has reached its widest level for two years according to Wins Investment Trusts. At the end of June the average discount for trusts (excluding private equity, hedge fund...