Fund Strategy articles from June 2007

Fund Strategy archives from June 2007

COMMENT: Green theme clashes with global progress.
June 4, 2007... It is the same but different. This week's achievement of a record high by America's S&P 500 index was reminiscent of the bubble years that ended in 2000. But important changes have happened since then. The similarities are easier to spot...

Schroders poised to launch global climate change fund.
June 4, 2007... Schroders is to launch the first retail fund to invest in global companies that will benefit from efforts to either limit or accommodate the effects of global climate change. Managed by Simon Webber and Matthew Franklin, the Schroder Global...

Trenchard to run SLI's UK Opportunities portfolio.
June 4, 2007... Standard Life Investments (SLI) has appointed Caspar Trenchard to run its #440m UK Opportunities portfolio. Trenchard, who runs First State's British Opportunities fund, is expected to join the firm in the next three months. The two firms...

IN BRIEF: New Star hires equity manager.(Brief article)
June 4, 2007... New Star has appointed Edward Collins to run the equity portion of its Tri-Star unit trust. Collins will initially co-manage the portfolio with Stephen Whittaker, the firm's joint chief investment officer, before assuming full responsibility...

IN BRIEF: Henderson to roll out fund of funds.(Brief article)
June 4, 2007... Henderson Global Investors is launching a fettered income fund of funds next month. It will be managed by Chris Wozniak, director of fixed income at the company. He manages global aggregate fixed income portfolios investing in government,...

Invesco cuts minimum stake to woo investors.
June 4, 2007... Invesco Perpetual has lowered the #250,000 minimum investment on the #46.8m UK Strategic Income fund managed by Mark Barnett to make it more widely available to retail investors. The move has created four new retail share classes which...

UBS to unveil US 130/30 Equity fund.
June 4, 2007... UBS Global Asset Management will unveil the UBS US 130/30 Equity fund later this year, subject to regulatory approval. The portfolio will be run using a team approach, with Tom Digenan as the named lead manager. The fund will hold 50-70...

SGAM seeks distribution status for Luxury fund.
June 4, 2007... SG Asset Management (SGAM) is planning to apply for distribution status for its Luxembourg-based Luxury & Lifestyle fund. This would enable gains from the fund to be subject to capital gains tax rather than income tax. The SGAM Fund...

IN BRIEF: Aegon hires head of performance.(Brief article)
June 4, 2007... Aegon Asset Management has appointed Anne Harrison to lead its performance analysis team and to ensure the firm has prompt and accurate performance data. Harrison joins Aegon from Fidelity International, where she was head of performance and...

M&G's Jane hands over to focus on portfolio.
June 4, 2007... David Jane, head of equity investment at M&G, has handed control of the firm's third-party funds of funds to George Tsinonis. Jane took on the UK Growth, Growth, Cautious Managed and Balanced portfolios last October, following Mark...

Investec offers retail class for fund.
June 4, 2007... Investec has launched a retail share class for its institutional Emerging Markets Debt fund, unveiled in June 2006. The fund, run by Peter Eerdmans, invests across a range of emerging markets, with a focus on local currency government bonds and...

Liontrust starts second long-only European fund.
June 4, 2007... Liontrust European Investment Services, Liontrust's European boutique company, has launched its second long-only European fund. Managed by Gary West and James Inglis-Jones, the Liontrust Pan-European fund is managed using the same investment...

IN BRIEF: OPM launches property fund.(Brief article)
June 4, 2007... OPM Fund Management has launched the CF OPM Property fund. The portfolio, run by Ross Henderson, aims to provide long-term income and capital growth through a diversified portfolio of property funds, listed securities and real estate investment...

IN BRIEF: Fidelity unveils international bond.(Brief article)
June 4, 2007... Fidelity FundsNetwork has launched a Dublin-based International Bond, which is designed to offer a simple charging structure and commission flexibility. Advisers can access more than 1,000 funds from 55 providers, discretionary fund...

Monthly fund sales hit six-year high.
June 4, 2007... The past two months have seen the two highest monthly inflows from investors in six years, according to the April investment fund statistics from the Investment Management Association (IMA). Total net sales of British-domiciled investment...

CF Arch Cru faces exclusion unless it conforms.
June 4, 2007... The #85m CF Arch Cru Portfolio fund will be dropped from the Investment Management Association (IMA) Cautious Managed sector unless it alters its asset allocation. As first reported in Fund Strategy last week (page 6), the sector...

Close hands over Far East Equity to UOB.
June 4, 2007... Stephen Swift is handing over management of the #5.2m Close Investments Far East Equity fund to United Overseas Bank (UOB) Asset Management. Swift, fund adviser at Jade Absolute Fund Managers, is retiring after running the fund for seven...

Cautious managed definition prompts mixed reaction.
June 4, 2007... With the increasing use of alternative asset classes the Investment Management Association (IMA) has altered the definition of its Cautious Managed sector. As reported in last week's Fund Strategy (page 6) the definition now stipulates funds...

STRATEGY: Bubble will burst with opportunities.
June 4, 2007... Domestic equity investment rocketed in China but it is turning into a bubble that is bound to pop. When this will happen is anybody's guess but it will present a global buying opportunity. There is a lot of nonsense written and spoken...

TRENDS: Global funds hold the most allure.
June 4, 2007... Many managers reject the single-digit returns of regional products in favour of the high returns from unconstrained global funds - which can lead to a themed approach to investment. Investors have an appetite for unconstrained global...

TOMORROW'S WORLD: Space for growth.
June 4, 2007... Investors' quest for returns puts themes - rather than sectors or geographical markets - under the spotlight as emerging markets, ageing populations and concern about climate change drive this burgeoning trend, writes Simon Hildrey. ...

TOMORROW'S WORLD: Outsiders for themes of the future.
June 4, 2007... Companies involved in security and defence have been beneficiaries of the so-called war on terror since the attacks on September 11, 2001. There is an argument, however, that the increase in demand and profit has already been reflected in...

ANALYSIS: Lateral thinking opens green fields.
June 4, 2007... Neil Woodford, of the Invesco Perpetual Income fund, defends his enthusiasm for clean energy stocks, especially as a new company is listed every week on the Alternative Investment Market. It is easy to be a critic of the "green fever" that...

Q&A: Trust adopts ruthless stance on stocks.(Interview)
June 4, 2007... Francesco Conte, manager of JP Morgan European Fledgeling Investment Trust, talks to Adam Lewis. Q: The trust is 20 years old this week. How has it performed since launch? A: While the fund has being going for 20 years, it was...

AFI: Turnover low despite swift rejection.
June 4, 2007... Panellists ditched several funds that were added to the Cautious index six months ago - including Newton Phoenix and CF Miton Extra Income - but turnover was lower than in the other indices. Turnover in the Cautious Adviser Fund Index was...

FoFs: Absolute return bias sharpens edge.
June 4, 2007... Patrick Armstrong, manager of the Insight Wealth Builder Growth portfolio, focuses on absolute returns, which he says enhances performance and gives it the edge over other funds in the sector. The #96m Insight Wealth Builder Growth fund has...

FOCUS: Fidelity aims to deliver high scores.
June 4, 2007... Fidelity has failed to deliver premiership level performance over the past year despite its long-standing success. Simon Hildrey asks if it can regain its former glory after a dip in form. Fidelity International is similar to Manchester...

Fund Manager's Diary: 14-20 May 2007.
June 4, 2007... Monday Wake up at 7am in Shanghai. Feeling a bit jetlagged but it is nothing a strong coffee and piping hot shower cannot fix. I get down to the CLSA China Conference at 8am for a long day of presentations and meetings. Mostly I am...

COMMENT: Ditch strange motto from growth debate.
June 11, 2007... The slogan for last week's G8 summit of world leaders in Germany was "growth and responsibility". The more closely it is examined the stranger it sounds. Economic growth has benefits that should be obvious. It has allowed humanity to...

Callander seeks approval for Ucits III funds in Britain.
June 11, 2007... Callander Managers, a Luxembourg-based investment company, is in the process of filing for authorisation with the Financial Services Authority to market and sell its range of seven Ucits III equity mutual funds to British investors. Owing...

Bedlam forced to abort its Cherry Picker debut.
June 11, 2007... Bedlam Asset Management has cancelled the launch of its Cherry Picker investment trust. As reported in Fund Strategy on April 16, the fund had targeted #35-100m from more than 200 investors. Fund Strategy understands that the trust achieved...

IN BRIEF: Kitson is new marketing chief.(Brief article)
June 11, 2007... Stuart Alexander, the sales and marketing director at Close Investments, has left the group. Roland Kitson, the head of sales and marketing at the company, has replaced him. The move follows an announcement last week that later this year Close...

IN BRIEF: S&P downgrades Japanese funds.(Brief article)
June 11, 2007... Standard & Poor's has downgraded nine Japanese smaller companies funds. After a year in which the median fund lost 10.8%, Japanese small-cap fund managers saw their S&P ratings slashed. S&P warned there would be more cuts if performance and...

IN BRIEF: Parker in new role at Investec.(Brief article)
June 11, 2007... Investec Asset Management has appointed Jonathan Parker as co-manager for the #120m UK Blue Chip fund alongside Christine Baalham. The fund is part of Investec's 4Factor range of funds. Parker joined Investec early this year after working at...

IN BRIEF: Close opens new pub scheme offer.(Brief article)
June 11, 2007... Close Investments has unveiled a second pub company Enterprise Investment Scheme (EIS). The firm is offering 8m shares in the Close Imperial Pub Company 2, until mid-July. The fund will follow a similar strategy to that of the Close Imperial...

Premier intends to enable shorting.
June 11, 2007... Rupert Morrell, manager of the Premier European Growth fund, intends to enable up to 15% shorting within his fund as the group seeks to add Ucits III powers to the portfolio. The group, which is in the process of applying for FSA...

Bramdean fund of funds to target alternatives.
June 11, 2007... Bramdean Asset Management, led by Nicola Horlick, is to launch an alternatives fund of funds. It will invest globally in equity, hedge funds and specialty asset classes. The Bramdean Alternatives fund is to offer shares until June 29. It...

Shareholders urged to reject Swuf proposals.
June 11, 2007... The board of the UK Balanced Property trust has urged shareholders to vote against resolutions put forward to remove the investment trust's independent directors and a subsequent reconstruction of the company. In a circular issued last...

IN BRIEF: Agency lowers Liontrust rating.(Brief article)
June 11, 2007... Forsyth-OBSR has downgraded Liontrust First Large Cap from an AA rating to A. It has also removed the ratings from the Legal & General Japanese, New Star Higher Income and Standard Life AAA Income funds. Meanwhile, the agency has upgraded...

Seilern launches fund with four stakeholder managers.(Company overview)
June 11, 2007... Seilern Investment Management has unveiled the Stryx America fund. The Dublin-domiciled portfolio holds 20-25 large capitalisation growth companies, selected from a universe of 150 stocks. The fund is run with a long-term investment...

Axa Multimanager fund goes overweight in property.
June 11, 2007... Caspar Rock, head of multi-manager at Axa Framlington, has moved the firm's Multimanager Reserve fund to an overweight position in property. The portfolio, unveiled in April, has a target allocation evenly-split between bonds, cash and...

IN BRIEF: Firms set to host joint roadshows.(Brief article)
June 11, 2007... JP Morgan (JPM), New Star and Schroders, plan to host joint regional roadshows on three key asset classes; equities, bonds and property. The events will be held at venues across the country from June 19-28, 2007. John Stainsby, the manager...

IN BRIEF: FoHFs positive in first quarter.(Brief article)
June 11, 2007... Funds of hedge funds (FoHFs) had an excellent first quarter with all funds delivering positive returns, says Standard & Poor's in its latest update on the sector. FoHFs biased towards equity-related strategies performed best. They included...

IN BRIEF: Atlantis duo are now co-chairmen.(Brief article)
June 11, 2007... Atlantis Investment Management has appointed Yang Liu and Tony Jordan as co-chairmen. Lui, who joined the firm in 2002, manages its China and China Fortune funds. Jordan runs the Asian Recovery and Asian Opportunities portfolios. He has been...

CORRECTION: M&G.(Correction notice)
June 11, 2007... Last week's story on M&G (see page 8) incorrectly stated that David Jane's Managed and Cautious Multi Asset funds have #50m in assets. The Managed portfolio alone has #860m in assets under management. Combined, the funds account for about...

Economist forecasts bonds sell-off.
June 11, 2007... There is a strong chance of a sell-off in emerging markets bonds as such debt is significantly overvalued, according to a study by Capital Economics.* Simon Hayley, the consultancy's senior international economist, estimates that yields are...

Jupiter plans to raise assets of #75m via C share.
June 11, 2007... The board of the Jupiter Green Investment trust has announced plans to raise up to #75m of new assets via a C share issue. Launched in June 2006, the trust managed by Charlie Thomas is hoping to increase its size from #41m. The portfolio...

Henderson offers retail investors access to secured loans.
June 11, 2007... Henderson Global Investors is offering retail investors access to secured loans and asset allocation through a closed-ended structure. The Henderson Diversified Income fund, which targets a 7% initial minimum yield, will be offered to the...

STRATEGY: Fresh frontiers will reward intrepid.
June 11, 2007... Emerging markets equities still offer high yields after 20 years of strong performance - but investors are seeking the next big thing, which includes Mexico, Nigeria, Turkey and Vietnam. Emerging market equities are one of the hottest...

TRENDS: Long and short of generating alpha.
June 11, 2007... More managers are investing in exchange listed funds of hedge funds as a convenient way of diversifying their portfolios and increasing the chances of outperforming their peer group. More long-only fund managers invest in shares of...

THE ONLY WAY IS UP: Flight path.
June 11, 2007... Corporate bond performance nosedived last year, but can it plunge any lower or is it just a matter of time before it takes off again? Paul Farrow reports. Corporate bond funds are in the doldrums - investors have scratched them off their...

THE ONLY WAY IS UP: The stockbroker.
June 11, 2007... Dan Kemp, head of fund research at Williams de Broe, says: "Like the helmsman at the Titanic, bond investors have become dangerously complacent over the past few years, lulled by the calm seas of low interest rates and an absence of...

THE ONLY WAY IS UP: The multi-manager.
June 11, 2007... Marcus Brookes, the deputy head of multi-manager at Gartmore, says: "Our view on fixed interest is bearish. We have deliberately skewed our research to identify those bond funds that give us the benefits of diversification away from equities,...

THE ONLY WAY IS UP: The IFA.
June 11, 2007... Justin Modray, the head of communications at Bestinvest, says: "It is still worth having exposure to investment grade and high yield bonds in a portfolio. The outlook for high yield is reasonable and investment grade is likely to fare better...

Q&A: Using catalysts to spur change and earn profit.(Interview)
June 11, 2007... Francois Barthelemy, a senior partner and portfolio manager at F&C Partners, talks to Adam Lewis. Q: What is F&C Partners? A: We were established in 2004 by myself and Anthony Culligan. The group is 60% owned by F&C, with myself...

CHANNELS: Platform takes shape from its ifa members.
June 11, 2007... David Ferguson, chief executive of Nucleus, a wrap platform, answers questions from Kira Nickerson. Q: What is Nucleus and what stage is it currently at? A: We have been live for six months and it is now a fully operational platform...

ANALYSIS: Top team blends stability and talent.
June 11, 2007... Daniel Nickols, lead manager of the Old Mutual UK Select Smaller Companies fund, says its top performance is a reflection of its six- strong team's attention to sector trends and defensive plays. I was going to write "buy now while stocks...

AFI: Cautious welcome for 130/30 funds.
June 11, 2007... The AFI panellists greeted the arrival of "short strategy" funds in Britain as a generally positive development - but they reserve final judgment until they can see just how these funds perform. "Short extension" strategies or 130/30...

FoFs: Strategy that puts firm out on a limb.
June 11, 2007... Miton Optimal's Strategic and Special Situations funds are at the bottom of the IMA Balanced Managed sector but Martin Grey, the lead manager, says he is positioned for rising volatility. A combination of factors is being blamed for Miton...

FOCUS: M&G stars grasp freedom to soar.
June 11, 2007... David Jane, a chief investment officer at M&G, promotes an unbiased culture, which encourages the firm's managers to propel its funds back among the top performers. Simon Hildrey reports. September 2002 is an important date in the history...

Fund Manager's Diary: 14-20 May 2007.
June 11, 2007... Monday It is an early start to the week as I get up at the crack of dawn to catch a flight to Fidelity's Amsterdam office where I have a marketing pitch for a business opportunity. After, I chat to the director of our quantitative team who...

QUARTERLY MARKET REVIEW: 'Asian dynamism has proved critics wrong'.
June 11, 2007... Ten years after the outbreak of the 1997-8 Asian financial crisis it is worth re-examining what happened. Many commentators have forgotten how wrong they were about the event and its implications. The crisis started in July 1997 with the...

QUARTERLY MARKET REVIEW: Solid as a rock.
June 11, 2007... Analysts predict a global slowdown after a strong run but - despite worries about the American economy and China's astonishing pace of growth - the worldwide economy remains strong, financial markets continue to perform well and investors'...

QUARTERLY MARKET REVIEW: Bond yields.
June 11, 2007... The yields offered by leading government bonds have risen this year. In America, the 10-year Treasury yield rose from 4.68% at the start of the year to 4.88% by the end of May. British government bond yields have also risen by about 35 basis...

QUARTERLY MARKET REVIEW: American housing market blues.
June 11, 2007... Experts say the health of the American housing market is key to the fortunes of the country's economy, the world's largest. But there are concerns a slowdown in the housing sector since 2006 is weighing on US economic growth. The housing...

QUARTERLY MARKET REVIEW - UK: Signs point to a financial tsunami.
June 11, 2007... Strong headline global growth, high buyback activity and cheap equities add up to a stormy brew that is receiving added potency from the Chinese investors piling into the stockmarket. Over the past few months, I have been asked to give...

QUARTERLY MARKET REVIEW - UK: Bears watch out for an M&A wobble.
June 11, 2007... After a quarter in which the three pillars of performance - economy, corporate results and the equity market - have all had their problems, more managers are forecasting a bleak summer. Bears have been scarce over the past year. But their...

QUARTERLY MARKET REVIEW - US: Will consumers put the brake on?
June 11, 2007... Surging corporate profits have spurred a steady stockmarket rally against a background of weakening growth - but is complacency setting in? The property market could hold the key. American equity indices have gained steady ground since...

QUARTERLY MARKET REVIEW - US: World growth buttresses Wall Street.
June 11, 2007... Global growth opportunities and the recycling of capital surpluses from the emerging world are supporting American companies and helping to keep long-term interest rates low. With the American economy experiencing its fourth quarter of...

QUARTERLY MARKET REVIEW - ASIA: China's bull run has limited impact.
June 11, 2007... Despite the surge in domestically-owned Chinese shares the bursting of the bubble would probably have limited global implications. China's market is still relatively small and isolated from the world. The incredible performance of the...

QUARTERLY MARKET REVIEW - JAPAN: Firms' conservative outlook is wrong.
June 11, 2007... Despite conservative growth forecasts by Japan companies, an analysis of seven key factors suggest a positive outcome for corporate earnings and the equity market in this election year. Late in 2006, as I reflected on what had been a...

QUARTERLY MARKET REVIEW - EUROZONE: German spenders help lift Eurozone.
June 11, 2007... A return of consumer confidence in Germany following a fall in unemployment has helped it achieve a strong economic performance, which has in turn boosted eurozone equities. Eurozone equities exceeded expectations during the second quarter,...

QUARTERLY MARKET REVIEW - EUROZONE: Europe follows positive world trend.
June 11, 2007... Germany has re-emerged as the engine of Europe and provided the impetus for the region's recovery as the equity bull market continues to accelerate against a supportive macroeconomic backdrop. In line with most stockmarkets around the...

QUARTERLY MARKET REVIEW - LATIN: Brazil leads boom in Latin equities.
June 11, 2007... Brazil exemplifies a new economic pattern among Latin America countries as it surges forward with ambitious companies, sound economic policies and burgeoning domestic consumption. Funds that invest in Latin American equities continue to...

QUARTERLY MARKET REVIEW - LATIN: Region bursts with potential gains.
June 11, 2007... Latin America promises good investment opportunities in an environment of falling interest rates, economic reform, healthy commodity prices - and burgeoning domestic demand in Brazil. Investors in Latin American equities could be forgiven...

QUARTERLY MARKET REVIEW - BONDS: Pitfalls in wait for the yield-hungry.
June 11, 2007... Frustration poses a serious threat to corporate bonds as investors seeking higher returns in a climate of low yields fail to find suitable alternatives and lose sight of the fundamentals. Sterling corporate bonds continue to trade in a...

QUARTERLY MARKET REVIEW -BONDS: Gilts promise yields despite volatility.
June 11, 2007... Rising interest rates hit bonds, but the risk from inflation is overestimated and despite short-term market volatility, fixed interest investments such as gilts offer investors rewards in the long term. So far, 2007 has not been a great...

COMMENT: Bond yield rise signals shift.
June 18, 2007... For the non-mathematically inclined any discussion of bonds is about as welcome as a zit to a teenager. All the discussion of yields, yield curves and spreads can be brain-achingly confusing. Equities, in contrast, seem like simple beasts....

Thames River Capital plans to enter multi-manager fray.
June 18, 2007... Thames River Capital plans to launch multi-asset multi-manager funds after Robert Burdett and Gary Potter join from Credit Suisse Asset Management in August. Michael Warren, investment director of Thames River Capital, says multi- asset...

European bond fund outflows hit #11.7 billion.
June 18, 2007... Bond fund outflows across Europe have hit E17 billion (#11.7 billion) over the past 12 months, according to Feri Fund Market Information. Feri, a data and analysis provider on the European mutual funds market, says bond funds registered...

IN BRIEF: Atlantis appoints fund manager.(Brief article)
June 18, 2007... Atlantis Investment Management has appointed James Weir to run its Asian Special Situations fund. Weir, previously assistant manager to Tony Jordan, joined the firm in 2004 as an investment analyst. Prior to that, he achieved a masters degree...

IN BRIEF: SGAM AI fund gets UK go-ahead.(Brief article)
June 18, 2007... The SGAM Alternative Investments (AI) Equity fund is being marketed to British investors after receiving UK distributor status. The Ucits III product offers investors access to hedge funds specialists managing long-only or long-biased equity...

IN BRIEF: Henderson trust opens to public.(Brief article)
June 18, 2007... The offer of Henderson Diversified Income opens to the public this week. As reported in Fund Strategy last week (page 10), the fund, managed by John Pattullo and Jenna Barnard, aims to achieve a 7% initial minimum yield. About 70-80% of the...

IN BRIEF: FSA unveils response to 06/6.(Brief article)
June 18, 2007... The Financial Services Authority has published its feedback to the discussion paper 06/6 - "Private Equity: A discussion of risk and regulatory engagement". The body says it will continue to focus on the risks of market abuse and conflicts of...