Fund Strategy articles from July 2008

Fund Strategy archives from July 2008

COMMENT: This media fixation with M&S is pants.
July 7, 2008... It may be that many journalists wear Marks & Spencer underwear - Jeremy Paxman famously wrote to the company's chief executive complaining about its quality - but that does not excuse the media's obsession with the retailer's fortunes. ...

Jupiter chief puts his job on the line.(Conference notes)
July 7, 2008... Edward Bonham Carter, chief executive of Jupiter Asset Management, said he would step down from managing the Jupiter Undervalued Assets fund if performance fails to improve over the coming year. Bonham Carter made the comments during an...

Threadneedle takes double hit as managers quit.
July 7, 2008... Threadneedle's British equities team suffered a double blow last week with the resignations of Paul Findley and Steve Hewitt. Findley, the company's head of UK high alpha, had managed the Threadneedle UK Crescendo hedge fund since 2001....

Asset groups exposed to M&S share plunge.
July 7, 2008... Several fund groups have a substantial exposure to troubled Marks & Spencer shares. Thomson Reuters Figures show Barclays Global Investors, Fidelity, Invesco, L&G, Schroders and Standard Life are among the top 10 owners in terms of...

IN BRIEF: S&P launches Gulf markets index.(Brief article)
July 7, 2008... Standard & Poor's has launched the S&P GCC 40 index, to provide tradable exposure to 40 leading companies on the primary exchanges of Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. Structured product and exchange traded fund...

IN BRIEF: Millennium names financial chief.(Brief article)
July 7, 2008... Millennium Global Investments has appointed Eelco Fiole as its chief financial officer. Fiole's primary responsibility is to develop and implement the financial infrastructure for the group. Before joining Millennium Global, Fiole spent more...

IN BRIEF: Service aims to simplify complex.(Brief article)
July 7, 2008... Retirement Income Solutions Enterprise (RISE) has developed the Mature Simplicity service. The service has been designed to help people to understand complex finance by explaining them in simple terms. The British version of the tool-kit will...

F&C in U-turn on India as values fall.
July 7, 2008... F&C's emerging markets portfolios have moved to a net overweight position in India, reversing the underweight stance they took last December. Jeff Chowdhry, head of emerging equities at F&C, says the decision to change stance was taken...

Speculators 'not to blame' for surging oil price.
July 7, 2008... The International Energy Agency (IEA) has come out firmly on the side of those arguing that fundamental factors rather than speculators are driving up the oil price. In its Medium-Term Oil Market Report the IEA, which represents the...

Baillie Gifford taps into emerging market debt.
July 7, 2008... Baillie Gifford, an Edinburgh-based investment management group, has launched a new Oeic sub-fund, the Emerging Markets Bond portfolio. The fund invests primarily in local emerging market debt issued by sovereign, supranational, public...

IN BRIEF: Stellar adds Baltic fund to Transact.(Brief article)
July 7, 2008... Stellar Asset Management, a specialist asset manager, announced that the Stellar Baltic States fund is available on the Transact platform. In addition, financial advisers can access the fund using Self-invested personal pensions (Sipps) from...

Association chief sounds clarion call for tax reforms.
July 7, 2008... The Investment Management Association (IMA) has warned that Britain needs to bring in tax reforms for the asset management industry if the country is to remain competitive with its European rivals. Richard Saunders, the chief executive of...

IN BRIEF: BlackRock funds receive upgrade.(Brief article)
July 7, 2008... Standard & Poor's has upgraded BlackRock's European equities funds. The BlackRock Global Funds European fund, BlackRock Global Funds European Focus fund, BlackRock Global Funds Continental European Flexible fund, BlackRock Global Funds...

STRATEGY: Emerging strength is not universal.
July 7, 2008... Investors should select emerging markets with care - especially as the outlook for countries such as South Africa and Turkey, is worrying. But China should withstand inflationary pressures. As inflation hits economies all around the world...

TRENDS: Japan holds while America falters.
July 7, 2008... Japan funds attract British investors again as a bias towards Japanese industrials benefits from a hike in global demand for consumer electronics and firms such as Sony bolster performance. British fund managers' portfolio holdings in the...

Q&A: Focused American hunts for bargains before rally.(Interview)
July 7, 2008... James Berman, the president of JBGlobal, talks to Vanessa Drucker, American editor, Fund Strategy. Q. Are we in a bear market now? A. The Dow has dropped 20% from its October high, which is the official definition. Most world indices...

HEIGHT OF AMBITION: Room to grow.
July 7, 2008... The Middle East diversifies its economies away from energy, but it is sound fundamentals, including a surge in demand for oil, which bolsters this growth and attracts investors to the region, writes Frances Hughes. Daniel Day-Lewis's...

HEIGHT OF AMBITION: Comparisons with the 1970s.
July 7, 2008... Many commentators see parallels between the experience of the Middle East in the 1970s and what it is going on today. At that time the region boomed as the oil price surged. The catch is that as the oil price slumped in the 1980s so did the...

HEIGHT OF AMBITION: What constitutes the region?
July 7, 2008... In theory the Middle East could stretch from Morocco and Mauritania in the west, to Kyrgyzstan and Pakistan in the east. Fund managers and fund groups often have different definitions. There is also a debate about whether Israel and Turkey...

ANALYSIS: The very height of unfashionability.
July 7, 2008... Retail investors have long steered clear of North America - and with good reason. But when they start buying US equities again, Martin Currie North American looks an excellent bet. It must be tough being the best fund manager in an unloved...

INVESTMENT TRUSTS: Monks' shifts drive outperformance.
July 7, 2008... Gerald Smith, manager of Monks, moved to protect the trust from the vagaries of the global slowdown - a strategy that enabled the #1 billion fund to flourish and outperform its peers. A timely reduction of exposure to banks and financials...

AFI: Caution reigns across the board.
July 7, 2008... What one adviser calls "an element of panic" in the face of volatile market conditions has increased the alignment of fund selections in the AFI portfolios as risk appetite wanes. The May rebalancing brought an increased alignment in...

FoFs: Gartmore plays safe with mixed bag.
July 7, 2008... Tony Lanning, manager of the Gartmore MultiManager UK High Alpha, tweaked the holdings when he took over to avoid relying on one sector and to give flexibility as the markets change. Tony Lanning, the head of multi-manager at Gartmore, took...

FOCUS: Worry over Barings' revolving door.
July 7, 2008... Despite its substantial growth and many good funds, Baring Asset Management fails to appeal to IFAs, who say they are concerned about its turnover of staff. Simon Hildrey reports. For many asset managers, simply standing still has...

Fund Manager's Diary: 22-28 June 2008.
July 7, 2008... Sunday A 5am start to see the sunrise with my wife out on our boat [in the Cayman Islands]. We could end up in Cuba if we keep going. The rest of the day we relax and meet friends in the evening for a quiet dinner. Monday The day starts...

COMMENT: A better way to view the climate question.
July 14, 2008... On the face of it, the dispute about climate change at last week's G8 summit in Hokkaido seems childish. The world's richest countries put pressure on large developing countries to cut greenhouse gas emissions. In response, the emerging...

New Star head of products resigns.
July 14, 2008... Ravi Anand, head of structured products at New Star, has resigned from the group. Anand's role will be assumed by Donald Pepper, who joins New Star in September in the new post of head of alternative investment. Anand, who joined New...

Threadneedle adds to its Extended Alpha range.
July 14, 2008... Threadneedle has unveiled the second 130/30 fund in its Extended Alpha retail range. Global Extended Alpha, which is run by Andrew Holliman, was seeded with $10m (#5m) when it was launched last week. Celeste Dias, head of product...

Martin Currie to add share class to Sicav.
July 14, 2008... Martin Currie plans to add a sterling share class to its Global Resources fund, a $200m (#101m) Luxembourg Sicav it launched in December 2005. Andy Sowerby, managing director of marketing, distribution and product management at Martin...

IN BRIEF: Liontrust names media head.(Brief article)
July 14, 2008... Liontrust Asset Management has appointed Simon Hildrey, a former contributor to Fund Strategy, as head of communications. In the newly created role Hildrey will be responsible for communications with journalists, media commentators and...

IN BRIEF: BlackRock picks global specialist.(Brief article)
July 14, 2008... BlackRock has appointed Alexis De Mones as global product specialist in its fixed income team. De Mones joins from ABN Amro Asset Management, where he led the fixed income global product specialists team. He was responsible for all core...

IN BRIEF: Santander equity trio appointed.(Brief article)
July 14, 2008... Santander Asset Management UK has appointed three new managers to run its UK equity mandates across its Multi-Manager and Premium Investments funds. BlackRock, Newton and Santander Asset Management UK join State Street as managers on the UK...

IN BRIEF: Coutts man moves to Credit Suisse.(Brief article)
July 14, 2008... Credit Suisse has appointed Jeremy Hippolite as a director and product specialist in asset management for its multi-asset class solutions business (MACS). Hippolite will advise UK private banking clients on MACS products. Hippolite joins the...

Industry shifts to 'small and nimble'.
July 14, 2008... The British asset management industry is shifting towards a multi- boutique structure, according to Fitch Ratings. Amit Mathur, senior director in Fitch's fund and asset manager ratings group, says the industry, traditionally dominated by large...

Templeton, pioneer in mutual funds, dies at 95.(Obituary)
July 14, 2008... Sir John Templeton, the founder of Templeton Mutual Funds, has died from pneumonia at the age of 95. His death brings to an end the story of a contrarian investor who was a pioneering force in the American mutual fund industry. Templeton...

Opec still blames weak dollar and speculators.
July 14, 2008... Recent oil price peaks are the consequence of a weak dollar and speculation, Opec (the Organization of the Petroleum Exporting Countries), continues to maintain. Abdalla Salem El-Badri, Opec's secretary general, writes in the introduction...

STATESIDE: Retailers pay as purse-strings tighten.
July 14, 2008... Uncle Sam tries to stimulate the consumer with a tax rebate, but prominent chain stores such as Gap, Lowe's and Pier One, flounder. Meanwhile, investors shop for bargains in the retail sector. Where is my cheque? American taxpayers who...

STRATEGY: Ups and downs of inflationary fears.
July 14, 2008... A hike in the oil price fuels inflationary fears, but despite the challenge for policy makers, recent growth figures show that the outlook for the global economy is moderate rather than gloomy. Fears of global recession have faded slightly...

TRENDS: Good value rewards careful choice.
July 14, 2008... The range of investment trusts widens and so do the sectors - but it is no surprise that emerging markets and Asia Pacific are top performers. But sectors that suffer steep falls also hold value. Throughout the year I have been attending...

Q&A: Group set to plough argicultural theme.(Interview)
July 14, 2008... Mark Bridgeman, the global head of research at Schroders, talks to Will Jackson about a fund launch. Q. The Schroder Agricultural Land investment trust will be launched in September, subject to regulatory approval. What is the objective...

WAITING IN THE WINGS: Prepare to fly.
July 14, 2008... Latin America shrugs off its bad reputation as it thrives in the wake of a commodities boom and accumulates a stash of foreign reserves - factors that attract investors to debt instruments as an asset class, writes Rodrigo Amaral. In...

WAITING IN THE WINGS: Latin American private debt.
July 14, 2008... Latin American countries have seen a fast development of private debt markets, as companies make wider use of the securitisation of loans. Mexico and Brazil are the two most developed markets, accounting for more than three-quarters of...

ANALYSIS: Absolutely thriving in volatile times.
July 14, 2008... Threadneedle's Absolute Return Bond fund is performing well in a lacklustre sector thanks to its structure, which allows it to take meaningful punts on interest rates and currencies. Could there be a better time to be managing an absolute...

FoFs: Insight sheds equities to outperform.
July 14, 2008... The performance of the Insight Dynamic Return fund under its managers Patrick Armstrong and Ana Munro shows that the multi-asset approach is not exclusively a defensive one. Insight has become known as a multi-asset specialist that...

AFI: IMA's warning shot to errant funds.
July 14, 2008... Revised guidelines from the association appear to be designed to show that it is going to clamp down on funds that breach mandates to increase their performance relative to their peer group. With risk management a key focus for advisers...

REVIEW: Long road for a land of boom and bus.
July 14, 2008... India's surging growth is but the latest stage in a journey that began half a century ago, says Arvind Panagariya. He calls for further reforms to sustain the country's economic drive. Arvind Panagariya India: The Emerging Giant ...

FOCUS: Analytical player eschews also-rans.
July 14, 2008... Martin Currie delivers high performance funds, thanks to an emphasis on rigorous research, says Andy Sowerby, managing director of marketing and distribution. Frances Hughes reports. Martin Currie describes itself as a big boutique and...

Fund Manager's Diary: 22-29 June 2008.
July 14, 2008... Sunday Wake up early and take the opportunity to read the Sunday papers accompanied by Radio 4 and a large pot of tea. This feeling of goodwill even extends to taking my wife breakfast in bed. Take my mother out for lunch. Monday My...

COMMENT: Social policy turned into a peeing contest.
July 21, 2008... Last week's oddest spectacle was probably Richard Thaler, a professor of economics at the University of Chicago, talking about knife crime on the BBC Newsnight programme. Thaler probably knows as much about knives as the average street...

EC set to ditch 'complex' handbook.
July 21, 2008... The European Commission (EC) has proposed to ditch the simplified prospectus and replace it with a simple one-page document to be called Key Investor Information (KII). The proposal was one of several announced last week as the EC moves to...

Premier fund focuses on China as manager quits.
July 21, 2008... Premier has changed the investment mandate and name of its Eastern Enterprise fund following the impending retirement of Richard Muckart as its manager in September. In June, following Financial Services Authority and unitholder approval,...

UK Equity Income sales drop by three-quarters.
July 21, 2008... Sales of UK Equity Income funds to IFAs declined by three-quarters in the second quarter of 2008, according to Cofunds data. The sector achieved just 2% of total net sales, down from 8% in the first quarter. BlackRock UK Absolute Alpha...

IN BRIEF: Growth prospects remain gloomy.(Brief article)
July 21, 2008... The International Monetary Fund (IMF) released its World Economic Outlook last week showing global growth forecasts continue to be gloomy. Although growth slowed to 4.5% in the first quarter of 2008 from 5% in 2007 the drop was less severe than...

IN BRIEF: Barings poised for Mena launch.(Brief article)
July 21, 2008... Baring Asset Management has unveiled plans for the Baring Mena (Middle East and North Africa) fund, subject to regulatory approval. The fund will aim to provide long-term capital growth by investing in the countries of the Middle East and...

IN BRIEF: Jupiter unveils India Sicav.(Brief article)
July 21, 2008... Jupiter has announced the launch of the Jupiter India fund (Sicav), which is managed by Avinash Vazirani. The Jupiter India fund is a sub- fund of the Luxembourg-domiciled Jupiter Global Fund which is registered for distribution in Britain....

IN BRIEF: M&G launches dividend fund.(Brief article)
July 21, 2008... M&G launched the M&G Global Dividend fund last week. It is managed by Stuart Rhodes, and has a total return objective that combines income and capital growth to outperform the FTSE World index as well as other global equity income funds....

Two billion 'could join' middle class.
July 21, 2008... Another two billion more people could join the global middle class by 2030 according to a new report by Goldman Sachs*. Such an expansion, which would be unprecedented in world history, is based on a definition of middle class as those...

Agency reinstates ratings on Credit Suisse funds.
July 21, 2008... Old Broad Street Research (OBSR) reinstated its ratings on most of the Credit Suisse multi-manager range with the exception of the regional specific funds, which have had their ratings removed. This, says Gill Hutchison, investment...

Managers lose faith in 'safe' asset class.
July 21, 2008... The notion that emerging market equities are a safe place to hide from the credit crisis has fallen away among fund managers. According to the latest Merrill Lynch Global Fund Manager Survey only a net 4% of the managers surveyed remained...

Untangling the heated debate on surging oil price.
July 21, 2008... The big debate in relation to surging oil prices is whether speculators are to blame. There is a sharp divide between those who see speculation as a key factor in rising prices and those who point to more fundamental forces. Before...

STRATEGY: Global forces bring oil to the boil.
July 21, 2008... Many commentators blame speculators for soaring oil prices, but surging demand for energy and the rising cost of other commodities are also factors - and further price hikes are possible. Oil prices have increased at an astonishing rate....

TRENDS: The roads less travelled to recovery.
July 21, 2008... The American downturn shows signs of recovery and Britain looks set to follow. Meanwhile, the Specialist sector has some interesting funds, ranging from gold to ecological forestry. A broadly accepted flag signalling an economy in...

Q&A: Rescue prospects for Fannie and Freddie.(Interview)
July 21, 2008... Leigh Skene of Lombard Street Research talks to Tomas Hirst about the American mortgage companies. Q. Why have Fannie Mae and Freddie Mac suffered particularly badly from the effects of the credit crunch? A. They are woefully...

AFTER THE FALL: Recovery time.
July 21, 2008... Bond markets tumbled when the global turmoil kicked in, but they look set for a comeback, which has renewed investor interest in them as an asset class as the hunt for value begins, writes Neal Underwood. As equity markets continue to...

AFTER THE FALL: Emerging market debt.
July 21, 2008... The opportunities in bonds are not just in developed markets. Werner Gey van Pittius, an emerging markets analyst at Investec, highlights those in emerging market debt. "We have pre-empted the turn in inflation and have been adding duration....

ANALYSIS: Jupiter slides along on french oil.
July 21, 2008... Investment funds struggle, but Jupiter European Special Situations fares better than most. Cedric de Fonclare, the manager, favours French and Swiss stocks, such as Total, an oil giant. It must be tough being a financial adviser right now....

INVESTMENT TRUSTS: Sell-off helps Electra stay on track.
July 21, 2008... Electra Private Equity's long-term investments made handsome returns, including $72m from the sale of its stake in a railtrack operator, but tighter credit could undermine its strategy. In an environment of increasingly anxious...

AFI: Black gold-rush days are numbered.
July 21, 2008... The cost of oil attracts investors to funds focusing on energy and natural resources, but some analysts argue that commodities are overvalued, which may stem the strong flow of returns. With oil hitting $145 a barrel, it is no surprise that...

FoFs: Balanced route to absolute returns.
July 21, 2008... The CF Arch cru Balanced fund has outperformed with an absolute return focus, partly as a result of using investment via private rather than public markets, says Jon Maguire of cru. While most funds in the Balanced Managed sector are...

FOCUS: Change-over has ring of confidence.
July 21, 2008... Old Mutual Asset Managers' reputation and top-drawer managers allay any concerns about Ashton Bradbury relinquishing control of its flagship portfolio. James Phillipps reports. Much of Old Mutual Asset Managers' (OMAN) reputation has been...

Fund Manager's Diary: 30 June to 6 July 2008.
July 21, 2008... Monday The day starts at 7am. I work mainly from home, so I slope downstairs, grab a cup of tea and check company news and emails. The news from consumer companies is worsening. A profit warning from Trinity Mirror shows the problems of a...

Henderson unveils Absolute Return.
July 28, 2008... Henderson Global Investors will unveil an Absolute Return Fixed Income fund next week. The fund, an onshore Ucits III-enabled Oeic, will mirror the Luxembourg- domiciled Horizon Absolute Return Fixed Income portfolio. According to...

Skandia seeks FSA approval for US equity funds.
July 28, 2008... Skandia is seeking Financial Services Authority approval to launch three American equity funds into the British market. The company plans to launch the US All Cap Value Fund, managed by Mario Gabelli at GAMCO Investors, the US Capital...

A Tactical move by Harewood Solutions.
July 28, 2008... Harewood Solutions, part of BNP Paribas, has launched a Tactical Accumulator Series. The first product, linked to the FTSE 100, is a certificate-based service designed to provide investors with capital protection over five years with a...

IN BRIEF: Cazenove fund hits the target.(Brief article)
July 28, 2008... Tim Russell's Cazenove UK Absolute Target fund took #60m when it was launched on July 18. The launch proved popular among investors seeking to find an alternative to BlackRock's UK Absolute Alpha fund in the absolute return space. The...

IN BRIEF: Noble completes fund transfer.(Brief article)
July 28, 2008... Noble has completed the transfer of the British Smaller Companies Fund, previously managed by First State Investments, to Capita. Paul Jourdan took over the fund in 2000 and has manage it for First State since joining Noble. The fund will be...

IN BRIEF: Chief executive leaves Unicorn.(Brief article)
July 28, 2008... Peter Webb, chief executive and director at Unicorn, has left the firm. As Fund Strategy reported (April 14) his departure follows that of Peter Walls, previously Unicorn's managing director. Both Webb and Walls were in their roles at the...

IN BRIEF: Batterymarch fund rated AA.(Brief article)
July 28, 2008... The recently launched Batterymarch Emerging Markets Equity fund, part of the Dublin-domiciled Legg Mason Global Funds range, has been awarded a AA rating by Standard & Poor's. The fund, led by David Lazenby, aims to provide long-term capital...

IN BRIEF: Global investor confidence rises.(Brief article)
July 28, 2008... State Street's Investor Confidence Index for July shows that global investor confidence rose by 3.6 points to 82.6. Asian investors were the key drivers as their risk appetite increased by 8.5 points, from 74.4 to 82.9. The confidence of...

Supply and demand driving oil prices.
July 28, 2008... A key American government report has concluded that fundamental factors rather than speculation have driven up oil prices.* A task force from the Commodity Futures Trading Commission (CFTC) has reached the preliminary conclusion that:...

IN BRIEF: Funds 'perform better' without performance fees.(Brief article)
July 28, 2008... Performance fees on investment trusts have not led to an improvement in portfolio performance, new research from Grant Thornton indicates. According to its report, Performance Fees: a Question of Purpose, about 45% of mainstream...

IN BRIEF: New Star portfolio is in new hands again.(Brief article)
July 28, 2008... Charles Deptford has taken over as manager of the New Star Equity Income unit trust. Deptford, who joined New Star from Baring Asset Management in June, replaces Stephen Whittaker, who will focus on managing the UK Growth Fund. ...

STRATEGY: Countries behaving responsibly.
July 28, 2008... Soaring prices are a worry for emerging markets investors. But local currency appreciation and interest rate rises, plus other good moves by governments, should keep inflation under control. Inflation has increased in several emerging...

TRENDS: ETFs are growing against the flow.
July 28, 2008... Exchange traded funds continue on their upward path. While underlying equity markets have slumped, ETF inflows have remained relatively robust as investors focus on newer asset areas. The European exchange traded fund (ETF) market in 2008...