Fund Strategy articles from June 2005

Fund Strategy archives from June 2005

COMMENT: Natural resources: there for the taking.
June 6, 2005... Natural resources are a huge source of concern in the contemporary world. Yet the things people are worried about should be reason for celebration rather than gloom. Anxiety about natural resources relates to both supply and demand. On...

Liontrust out to attract managers.(Liontrust Asset Management)
June 6, 2005... Liontrust Asset Management plans to recruit at least one fund manager before the end of 2005, while Jeremy Lang is to alter his investment process for the underperforming First Growth fund. To broaden its offering away from UK equities,...

Deputies in charge as Leaviss cycles off on break.(Jim Leaviss)(Brief Article)
June 6, 2005... Jim Leaviss, M&G head of retail fixed income and manager of five bond funds totalling more than #550m in assets, is taking an extended break away from his fund management duties. Leaviss, who commenced his holiday on May 9, is planning to...

Changes at top after shake-up at Insight.(Brief Article)
June 6, 2005... Nigel Whittingham, managing director of multimanager, and Stuart Alexander, director, global partners, have both left Insight Investment. According to the group their roles became redundant following a restructuring of the business, which has...

IN BRIEF: HSBC plans Asian Freestyle fund.(Brief Article)
June 6, 2005... HSBC is to launch an onshore Asian Freestyle fund in July. It will be run in a similar fashion to the group's UK Freestyle fund which was launched on March 1 this year. The group says it is also considering the launch of a European equity...

IN BRIEF: Samuel quits rejigged Gartmore.(Brief Article)
June 6, 2005... Chris Samuel, Gartmore director and group chief operating officer, is to leave the company at the end of the month. Samuel joined Gartmore's board in 1997. According to Gartmore, the group was unable to find an appropriate role for Samuel...

IN BRIEF: Depolarisation now official.(Financial Services Authority)(Brief Article)
June 6, 2005... Depolarisation officially came into effect last week, after a six-month transition period. According to the Financial Services Authority, advisers are now required to provide clients with two keyfacts documents, entitled 'About our services'...

IN BRIEF: Invesco Income targets new clients.(Brief Article)
June 6, 2005... The board of the Invesco Income Growth trust hopes to broaden its shareholder base by issuing new ordinary shares without pre-emption rights for existing shareholders. The directors will propose the move at the company's AGM in July. The board...

IN BRIEF: New Star Property hits #500m assets.(Brief Article)
June 6, 2005... The New Star Property unit trust has reached #500m in assets under management. Managers Roger Dossett and Stephen Whittaker, aim to achieve a high income with some capital growth by investing in commercial property, property shares, government...

IN BRIEF: Collins and Odili to join Fidelity.(Appointments)(Brief Article)
June 6, 2005... Fidelity has appointed two senior fund analysts to its multimanager team. Jason Collins, currently head of equity research at Skandia Life and Josef Odili, a senior investment analyst in the European division of SEI Investments will join in the...

Edinburgh New Income opens trade.
June 6, 2005... Shares in the Edinburgh New Income split-capital investment trust began trading last week following the voluntary liquidation of the Edinburgh High Income and Edinburgh Income and Value trusts. As part of a reconstruction scheme,...

Baillie US fund shifts assets to direct equities.(Brief Article)
June 6, 2005... The assets in the #94.2m Baillie Gifford American Oeic fund have almost halved following the decision of the Baillie Gifford North American Equity Pension fund to invest directly in US equities. The move of assets from the Oeic into...

IMA reports improved fund sales for April but still down on 2004.(Investment Management Association)
June 6, 2005... Net retail sales of investment funds in April were significantly higher than in the previous month, but were still down on the same period last year, according to the Investment Management Association. Net retail sales climbed to #624.5m...

IN BRIEF: Depolarisation spawns Openwork.(Brief Article)
June 6, 2005... Openwork, an independently operated multi-tie distribution company, opened for business last week. It was established by Zurich Financial Services in response to depolarisation. Openwork has chosen product providers for different sections of...

IN BRIEF: Avery to head IT at CSAM.(appointed Duncan Avery as managing director and global head of information technology)(Brief Article)
June 6, 2005... Credit Suisse Asset Management has appointed Duncan Avery as managing director and global head of information technology, based in London. Avery was previously global information technology director at Morley Fund Management and has also...

IN BRIEF: Insight boosts research team.(appointed Amit Mehta as a global banks analyst)(Brief Article)
June 6, 2005... Insight Investment has added to its equity research team by recruiting Amit Mehta as a global banks analyst. Mehta, who joined Insight from Morgan Stanley last week, is responsible for research into the global banking sector outside of...

Markets unmoved by EU 'no' votes.(European Union)(Brief Article)
June 6, 2005... The reaction of the European bourses to the "no" votes on the European Union constitution from France and Netherlands last week was muted, to say the least. Neither the main French (CAC 40) nor Dutch (AEX) share indices showed...

Finsbury looks to claw back after poor year.(Finsbury Worldwide Pharmaceutical)(Brief Article)
June 6, 2005... The Finsbury Worldwide Pharmaceutical trust posted disappointing annual performance, according to chairman Ian Ivory. The fund's preliminary results for the year ending March 31 show a decrease in share price of 7.7% and a fall of 13.9%...

House market should escape price crash.
June 6, 2005... Low unemployment and upbeat consumer confidence in Britain should help the market to avoid the same sharp housing price falls seen in the early 1990s. This is the view of Haydn Davies, chief economist at Barclays Global Investors. House...

ANALYSIS: Are critics justified in attacking the hedge fund industry?
June 6, 2005... Hedge funds seem to be making the news again for the wrong reasons. The criticisms have not yet reached the levels of 1992, when Britain was ejected from the Exchange Rate Mechanism, or 1998, with the collapse of Long-Term Capital...

TRENDS: Cautious optimism over earnings.
June 6, 2005... The 'soft patch' currently being experienced by the American economy has taken its toll on global equity markets, but the outlook is not all doom and gloom, says Lipper's Brian Harvey. Global Growth funds took a tumble in April as...

STRATEGY: Bucking the trend by backing the US.(Merrill Lynch and Company Inc.)
June 6, 2005... The latest Merrill Lynch survey shows that emerging markets remain hot favourite among fund managers while America continues to be avoided, but the case is not clear cut. Unlike the UEFA Champions League final, the latest Merrill Lynch...

Q&A: Cashing in on a small window of opportunity.(Interview)
June 6, 2005... Anthony Fletcher, fund manager, corporate bonds and Ratebuster at DWS, is questioned by Sarah Godfrey. Q: What is your role in managing the Ratebuster fund? A: I have overall responsibility for the fund. There are three components to...

Natural pause?(commodities and natural resources sector )
June 6, 2005... After substantial gains over the past few years returns from investments in the commodities and natural resources sector have slipped. Some now speculate that the bull run has ended but others argue the slowdown is just a blip. By Helen Burnett...

View of managers and strategists.(Brief Article)
June 6, 2005... Ben Yearsley, investment manager at Hargreaves Lansdown says that the story for commodity funds still exists, as consumption continues in China, the Far East and many emerging markets. The Hargreaves Lansdown Wealth 150 list currently...

CHANNELS: Five specialist arms boost scope of service.(Interview)
June 6, 2005... Tony Lanning, Origen's research and investment director, is interviewed by James Teasdale. Q: How is Origen structured? A: Origen was formed in May 2004 following Aegon's acquisition of five IFA firms. The chief executives of the...

ANALYSIS: 'Non' ripple muddies europe water.(Stock markets)
June 6, 2005... The high volume of eurobabble following French and Dutch rejection of the EU constitution might be distracting attention from positive investment opportunities on the continent. The French "Non" and the Dutch "Nee" have sent political...

FOCUS: Hot on premier league managers.(Gartmore Group)(Nationwide Mutual Insurance Co.)
June 6, 2005... When Gartmore was acquired by US-based Nationwide five years ago it received the capital to allow it to sign up top fund managers and create a team with a wide range of investment talent. It was just five years ago that discussion of...

FoFs: Flexibility is key to future growth.(Insight Investment Management Ltd.)
June 6, 2005... The Insight Investment Wealth Builder fund favours a concentrated portfolio allowing it to take advantage of individual funds' performance, as co-manager Patrick Armstrong explains. If past performance were an accurate guide to the future...

Fund of funds performance data.(Mutual fund industry)(Brief Article)
June 6, 2005... The CF Miton Extra Income portfolio has held on to the top spot again this month in the Cautious Managed sector over one year to May 30. The #9.6m fund, managed by Sam Liddle has returned 16.05% over the last 12 months, compared with the...

FUND MANAGERS DIARY: 24-30 May 2005.
June 6, 2005... Tuesday Feeling a little tired today after a team-building event last night with 60 of my colleagues. The emphasis was to have some fun, and indeed we did. My contribution was the slowest lap on the Scalextric track, while Bambos Hambi (head...

Buyers beware of Europe's sclerosis.(fund managers )
June 13, 2005... Anyone who has worked in investment for any length of time knows the standard responses by fund managers to different market conditions. In bull markets they generally claim to be able to take advantage of strong overall growth to provide...

'Gaddy' no longer the daddy at NU.(Alan Gadd)(Morley Fund Management)
June 13, 2005... Alan Gadd, managing director of Morley Fund Management's UK and European retail business, has resigned from the group. Gadd, who has worked at Morley since May 2001, has given personal reasons for his departure and is now expected to spend...

Morrell takes top job on Premier European fund.(Rupert Morrell )(Brief Article)
June 13, 2005... Rupert Morrell is to take over management of the Premier European Growth fund from James Buckley next week, subject to regulatory approval. As reported in Fund Strategy last month (May 23, p5), Buckley, who arrived at Premier only seven...

Fund investors should pay flat rate, says IMA.(Investment Management Association)
June 13, 2005... The Investment Management Association has called for the introduction of a flat rate of tax for fund investors. It also wants the government to scrap tax inside funds, including corporation tax. If a flat rate were introduced, investors...

IN BRIEF: Moore leaves Gartmore for Insight role.(Eric Moore )(Brief Article)
June 13, 2005... Insight Investment has appointed Eric Moore as a senior portfolio manager in its core UK equity team. Moore will join Insight later this summer and will manage group funds for internal clients, reporting to head of UK equities, John Bearman. He...

IN BRIEF: F&C's Scott takes on new fund.(Ted Scott )(F&C UK Growth & Income fund )(Brief Article)
June 13, 2005... Ted Scott will be taking over from Michael Gifford as manager of the #14.6m F&C UK Growth & Income fund on July 1. Scott also currently manages the #610.8m F&C Stewardship Growth and #197.2m Stewardship Income funds. Hilary Aldridge, deputy...

IN BRIEF: Bank of England leaves rates on hold at 4.75%.(Brief Article)
June 13, 2005... The Bank of England Monetary Policy Committee has decided to leave interest rates unchanged at 4.75%. The interest rate has remained at 4.75% since August 2004, when it was raised by a quarter point. The MPC is expected to make its next...

IN BRIEF: SGAM's Percy to step down as CEO.(Societe Generale Asset Management)(Keith Percy)(chief executive officer)(Brief Article)
June 13, 2005... Keith Percy, chairman and chief executive of Societe Generale Asset Management, is stepping down from his role as chief executive. He will remain executive chairman. John Richards and Alex Buffet will become joint CEOs of SGAM Holdings....

IN BRIEF: AITC proposes Reits approach.(Brief Article)
June 13, 2005... In response to the Treasury consultation on British real estate investment trusts, the Association of Investment Trust Companies is recommending the government take a flexible approach to tax so their launch is not delayed. The AITC says tax...

IN BRIEF: T Bailey Growth reaches #100m.(Brief Article)
June 13, 2005... The T Bailey Growth fund, launched in late 1999, has reached #100m in assets under management. Co-managed by Jason Britton and Richard Martin, the fund of funds is ranked third in the Global Growth sector over one year, with returns of 19.3%,...

Britannic poised to absorb Resolution.(Britannic Group plans to merge with Resolution Life)
June 13, 2005... Britannic Asset Management looks set to more than double its funds under management to over #30bn. The move depends on the acceptance of the merger between its parent company, the Britannic Group and Resolution Life, proposed last week. At...

F&C loses Peter Harvey to new Cazenove role.(F&C Asset Management )(Cazenove Capital Management)(Brief Article)
June 13, 2005... Peter Harvey is to leave F&C Asset Management to take up the role of head of fixed income at Cazenove Capital Management. His precise role at Cazenove is yet to be confirmed, but following his arrival the group is likely to launch a Ucits...

HSBC outsources its American Growth fund.(HSBC Investments )(Davis Advisors )
June 13, 2005... HSBC Investments has appointed US-based Davis Advisors to run its American Growth fund following its strategic decision to outsource management of the portfolio. Mike Watson, head of marketing and group retail distribution at HSBC...

IN BRIEF: Wallace takes on new Gartmore job.(Ed Wallace )(Gartmore Investment Management )(Brief Article)
June 13, 2005... Gartmore Investment Management has appointed Ed Wallace to its global equities team. Wallace joins head of global equities Neil Rogan and team members Ben Walker and Brian O'Neill. Rogan currently manages Gartmore's Global Focus fund and...

IN BRIEF: Finsbury Biotech share price drop.(Finsbury Emerging Biotechnology trust )(Brief Article)
June 13, 2005... The Finsbury Emerging Biotechnology trust (formerly Finsbury Life Sciences) posted a 9.1% drop in net asset value and 0.8% drop in share price for the year ending March 31. As with last year, the board recommended no dividend payments. As...

IN BRIEF: Fidelity's fixed income doubles.(Brief Article)
June 13, 2005... Fixed income assets under management at Fidelity reached $25bn (#13bn) and have doubled since 2002. The offshore Fidelity Funds Euro Bond fund, European High Yield fund and onshore Moneybuilder Income fund have seen the highest growth. Ian...

Greenspan warns on hedge industry.(Alan Greenspan )(hedge funds)
June 13, 2005... Hedge fund managers and investors face troubled times ahead, according to the chairman of America's Federal Reserve. Alan Greenspan told delegates at the International Monetary Conference in Beijing last week that: "After its recent very...

Franklin Templeton to add t fund offerings.
June 13, 2005... Franklin Templeton is to expand its fund ranges in Britain and Luxembourg as it restructures its senior management. The Templeton Global Income and Templeton Equity Income funds have been launched as part of Franklin Templeton's Luxembourg...

IN BRIEF: Aberdeen trust issues new shares.(Aberdeen Asian Smaller Companies )(Brief Article)
June 13, 2005... The Aberdeen Asian Smaller Companies investment trust issued 100,000 ordinary shares last week. Shares were issued for cash at a price of 231p per share and the net asset value per share of the trust was 226.25p at close on June 7. The top...

IN BRIEF: Alternatives head for BNP Paribas.(Chantal Mazzacurati )(BNP Paribas Asset Management )(Brief Article)
June 13, 2005... BNP Paribas Asset Management has appointed Chantal Mazzacurati as head of its alter-native investment management and structured and indexed manage-ment teams. She will also become a member of the BNPPAM manage- ment committee. Mazzacurati...

Property firms move to senior index.
June 13, 2005... The recently launched F&C Commercial Property trust has been promoted to the FTSE 250 index after the FTSE Group's latest quarterly review of the UK index series. The trust, which had #965m in gross assets when it was launched in March,...

British investors get access to ABN US fund.(ABN Amro Asset Management )(Brief Article)
June 13, 2005... ABN Amro Asset Management is planning to make a merged version of its offshore US Equity Growth fund available to British retail investors later this summer, according to the group. The ABN Amro US Equity Growth fund, a Luxembourg Sicav,...

News Analysis: Is limiting fund assets a hard choice or a soft option?
June 13, 2005... Several fund management groups have recently taken action to limit the size of assets in particular funds. Last month JO Hambro, Marlborough and Old Mutual all took measures to curb or halt inflows into portfolios. Many in the industry...

Trends: Only truly 'balanced' funds will win.
June 13, 2005... The investment world - like the Olympics - is is increasingly global, with more asset classes than ever before. But here in Britain the vast majority of portfolios are still too UK-centric. Soon the Olympic committee will decide who will...

Strategy: Stifled by the weight of expectation.
June 13, 2005... Despite strong economic growth and rising interest rates, yields on American government bonds remain stubbornly low. So what has caused this conundrum, and will it solve itself? Everything points to higher American treasury bond yields at...

Q&A: An alternative approach to portfolio construction.(interview of Ted Scott from F&C Stewardship )(Interview)
June 13, 2005... Ted Scott, manager of the F&C Stewardship ethical funds, answers questions from Sarah Godfrey. Q: What made you take on the UK Growth & Income fund? A: It's fairly small and wasn't doing much. Its historical performance is average...

Negative returns?(in mutual fund industry)
June 13, 2005... In spite of the media circus following the French and Dutch rejection of the EU constitution, the consensus in the investment world is that Europe still offers many opportunities - it's just a question of picking them. By Stephanie Spicer ...

Fund strategists' favourite Europe funds.
June 13, 2005... Artemis European Growth "What we are looking for is a good stockpicking fund manager with good experience and a good process," says Anna Bowes of Chase de Vere, highlighting Artemis European Growth fund manager Philip Wolstencroft....

Managers' favourite Europe stocks.
June 13, 2005... Essilor - manufacturer of lenses for glasses. A good example of a company with reach beyond its country of origin. "Based in France, as well as gaining market share in Europe, Essilor is building a strong presence in other parts of the world...

Channels: Evolving the next generation of wraps.(interview with David Dalton-Brown from Funds-Network)(Interview)
June 13, 2005... David Dalton-Brown, executive director of Funds-Network, answers questions from James Teasdale. Q: What is your role at FundsNetwork? A: I joined as head of FundsNetwork on March 1. I was hired to lead the evolution of the platform...

Analysis: China-bashing will never catch on.
June 13, 2005... China is still the key to success in the Asia ex Japan sector, according to Barings' Wilfred Sit, but much of what investors believe about the emerging dragon is at best inaccurate. The experts have got it wrong on China. Two popular but...

Focus: Baring up in the face of adversity.(Baring Asset Management )
June 13, 2005... A difficult decade has seen Baring Asset Management lose a number of key players, but the group is confident it now has a winning team in place. Adam Lewis reports. There are clearly aspects of its past that Baring Asset Management would...

FoFs: Selection is key to global growth.(fund of funds )
June 13, 2005... Gurjit Soggi, manager of the #3.67m Marlborough International Equity fund, explains why you need to keep an open mind to fund selection to add value in the diverse Global Growth sector. In the Global Growth sector funds are required to...

Fund of funds performance data.
June 13, 2005... The Halifax Fund of Investment Trusts retains the top position in the Global Growth sector (funds of funds only) over both one and three years this month. The fund returned 24.37% in the three years to June 6, compared with the sector average...

Fund Manager's Diary: 23-27 May 2005.
June 13, 2005... Monday I wake up in Zurich, Switzerland, where I'm seeing potential investments and client prospects. I meet up with a colleague, and we head to the train station to make our way to our first meeting. While waiting at the station, we notice...

You always pay for what you get.
June 20, 2005... The issue of charges is far more complex than it seems. It goes far beyond the notion of hidden costs that is common to debate on the subject. Unravelling charges raises fundamental questions about what exactly investors are paying for. At...

IMA urges Cesr to rethink Ucits move.
June 20, 2005... The Investment Management Association is calling on the Committee of European Securities Regulators not to proceed with its proposal to redefine the term "transferable security". This follows a consultation paper from Cesr two weeks ago...

Old Mutual Dynamic Bond fund loses manager.(Brief Article)
June 20, 2005... Theresa Egan, manager of the #34m Old Mutual Dynamic Bond fund, has left the group after just one year. Head of fixed income Andrew Tunks, who joined Omam from Isis in February this year, has taken over the management of the portfolio...

JOHCM finds fund to fit new hire Roe-Ely.(JO Hambro Capital Management)
June 20, 2005... JO Hambro Capital Management has hired Nick Roe-Ely to manage an onshore US growth fund it hopes to launch later this year or in early 2006, according to the group. Roe-Ely is expected to join the boutique firm later this year from Tilney...

IN BRIEF: M&G to launch US value fund.(Brief Article)
June 20, 2005... M&G has confirmed that, subject to regulatory approval, it is to launch a North American Value fund in July. The fund will be managed by Richard Brody who currently runs the Prudential North American trust. Brody's #246m Prudential portfolio...

IN BRIEF: Tan joins Insight fixed income.(appointed Stewart Tan as fund manager )(Brief Article)
June 20, 2005... Insight Investment has hired Stewart Tan as a fund manager on its fixed income team. Tan will manage an absolute return bond fund in the Absolute Insight institutional fund range. He previously managed a fixed income global macro hedge fund...

IN BRIEF: UK Growth from Collins Stewart.(Brief Article)
June 20, 2005... Collins Stewart is to launch a Dublin-domiciled UK Growth fund. The fund will be managed on a sub-advisory basis by Walker, Crips, Weddle, Beck. Managed by Stephen Bailey and Jan Luthman, the fund will mirror the WCWB UK Growth fund. The launch...

IN BRIEF: Barker joins credit team at Morley.(appointed Tim Barker as head of credit analysis)(Brief Article)
June 20, 2005... Morley Fund Management has appointed Tim Barker as head of credit analysis. Barker was most recently a senior credit analyst and strategist at Lazard Asset Management. He will manage the team of credit analysts at Morley and will report to Paul...

IN BRIEF: First State VCT raises #10m.(Brief Article)
June 20, 2005... The 2005/06 offer period for the First State Aim VCT will close at noon on June 28. The venture capital trust has already raised #10m since it began its offer period on February 10. Paul Jourdan, head of UK equities at First State and...

IN BRIEF: Fidelity to host FundsNetwork adviser forums.(Brief Article)
June 20, 2005... Fidelity FundsNetwork will host a series of forums this month for advisers and administrators. The forums will be held at 31 venues across the country and will focus on how to get the most out of the fund platform, including portfolio planning...

Providers see margins squeezed.
June 20, 2005... The increasingly competitive and ever-expanding fund distribution market is putting pressure on the margins of fund managers and product providers. This is according to Axa Investment Management's head of UK retail, Simon Ellis. Speaking...

Credit Suisse plans sector move for ethical fund.(Brief Article)
June 20, 2005... Following an evaluation, Credit Suisse Asset Management has decided to move the CS Premier Fund of Funds Ethical fund into the Investment Management Association's Specialist sector. The #8.6m fund, one of a range of eight that Credit...

Martin Currie private equity arm sold to F&C.
June 20, 2005... F&C Asset Management is to acquire the private equity fund of funds division of Martin Currie Investment Management. The acquisition will see Martin Currie's team of three private equity fund of funds managers, led by Hamish Mair, move to...

IN BRIEF: Sagitta outsources Healthcare fund.(Brief Article)
June 20, 2005... Sagitta Asset Management has outsourced the management of its Healthcare fund to Reabourne Technology Investment Management. The fund continues to be run by June Scott, who moves to Reabourne. She is assisted by co-manager Huaizheng Peng. All...

IN BRIEF: New Star adopts defensive stance.(Brief Article)
June 20, 2005... The New Star funds of funds are being run defensively, adopting cash positions. Head of the team Mark Harris says market uncertainty has led to this short-term approach. The New Star Tactical portfolio currently holds 10% in cash and more...

IN BRIEF: Chelsea drops Framlington.(Brief Article)
June 20, 2005... Following the soft closure of George Luckraft's Framlington Equity Income fund earlier this year, Chelsea Financial Services has dropped it from its Equity Income panel. Two funds have replaced the Framlington portfolio: the #750m Schroder...

Iimia to focus on large-cap holdings.
June 20, 2005... Nick Greenwood, manager of the #23.5m iimia investment trust, has turned over about half of the portfolio's holdings in the past three months to take advantage of April's market sell-off. As a result of the perceived opportunities in the...

Dunedin Enterprise gears up for year of spending.(Brief Article)
June 20, 2005... The number of holdings in the Dunedin Enterprise investment trust portfolio is set to be reduced further this year, according to Ross Marshall, managing director of Dunedin Capital Partners. The #124m trust is a private equity investment...