Fund Strategy articles from June 2008

Fund Strategy archives from June 2008

COMMENT: Productivity not age key to Indian growth.
June 2, 2008... One of the most pervasive myths about India is that its demography - its relatively young population - gives it an economic advantage over other countries. Economic dynamism depends on factors other than the youthfulness of a country's working...

Liontrust proposes new partnership.
June 2, 2008... Liontrust is proposing to establish a subsidiary company for its UK Small Cap and UK Opportunities team, following last week's appointment of Julian Fosh from Saracen. Fosh, former co-manager of the Saracen Growth fund since 2004, co-...

Schroders' closures needed for Nurs conversion.
June 2, 2008... Schroders will have to close its three multi-manager funds and create new funds, to move from Ucits III to non-Ucits retail schemes (Nurs). This is because under the Ucits directive, while Nurs funds can be converted into Ucits III vehicles,...

Charlemagne invests in Arabic-speaking region.
June 2, 2008... Charlemagne Capital will launch the Magna MENA fund this month, investing in companies with a significant presence in the Arabic- speaking world. The region is split into two areas; the Gulf countries and those of North Africa. It also...

IN BRIEF: Cofunds hits #15 billion in assets.(Brief article)
June 2, 2008... Cofunds, an independent platform, has reached #15 billion in assets under administration. Cofunds passed the #10 billion mark at the end of 2006. Although net inflows have continued in Isas, self-invested personal pensions and insurance bonds,...

IN BRIEF: Website aims to help advisers.(Website overview)(Brief article)
June 2, 2008... James Hay has announced the launch of advisercentre, a website offering professional advisers access to web tools, guides, video presentations and interactive calculators. The tools are designed to help them improve their business. The...

IN BRIEF: Skandia hires sales chief.(Brief article)
June 2, 2008... Skandia has appointed Nick Webb to the senior role of London regional sales manager responsible for improving support to financial advisers. Webb initially joined Skandia in 1999, and took over responsibility for the St Albans regional...

New Star moves to retain key staff.
June 2, 2008... New Star announced a share lock-in plan last week, in a move aimed at keeping hold of key members of staff. New Star identified 35 individuals that it plans to offer the share plan to, which will amount to the distribution of up to 27m new...

Lo takes over Schroder Asia funds as Lai departs.
June 2, 2008... Louisa Lo, head of equities, Asia ex Japan at Schroders, has replaced Millicent Lai as manager of the Schroder ISF Pacific, Schroder Asia Pacific and Schroder Pacific funds. The #190m Schroder Pacific fund is a British-domiciled unit...

Hike in retail fund sales signals market recovery.
June 2, 2008... Net sales of retail funds in April more than doubled the figures in March, according to the Investment Management Association (IMA). The month saw net sales rise from #414m to #1.5 billion, as the increasing inflows seen over the past few...

IN BRIEF: S&P in indices link-up with Korea.(Brief article)
June 2, 2008... Standard & Poor's has signed a memorandum of understanding with the Korea Exchange to develop a new set of indices designed to meet the investing needs of Asian investors. The firm has also launched two new indices: S&P Global Natural...

Food prices set to ease but remain higher, report finds.
June 2, 2008... Peaks in agricultural commodity prices are set to ease but, over the longer term, average prices will be higher than they have been over the past decade, according to the Organisation for Economic Cooperation and Development (OECD). The...

GAM plans to use hedge value template for new portfolio.
June 2, 2008... GAM is launching its GAM Star Absolute EuroSystematic fund, based on a hedge fund within its offshore range. The GAM EuroSystematic Value Hedge fund, which was launched in 2005, is the basis of the new portfolio. It will follow the same...

IN BRIEF: Barclays Wealth splits returns plan.(Brief article)
June 2, 2008... Barclays Wealth has split its Defined Returns Plan into two distinct investments and introduced a four-year capital protected option, as part of a drive to enhance clarity and product choice in the IFA market. The Defined Returns Plan...

IN BRIEF: Princess joins iPEIT group.(Brief article)
June 2, 2008... iPEIT, the group of London-listed private equity investment vehicles that was formed in 2006 to increase understanding of the listed private equity sector, has expanded its membership to 11. Princess Private Equity Holding, a London and...

CORRECTION: Smith and Williamson.(Correction notice)
June 2, 2008... Smith and Williamson's MM Endurance Balanced fund outperformed the Investment Management Association's Balanced Managed sector over the three years ending May 19. The fund returned 46.46% against a sector average of 36.17%, ranking it ninth...

Henderson changes name of range.
June 2, 2008... Henderson's fund of funds range has changed its name from Independent to Multi-Manager. Bill McQuaker, manager of the funds, has also added more risk to the portfolios. Over the past five months the focus was on picking up value. At the...

Baillie Gifford two depart in 'seamless transfer'.
June 2, 2008... Baillie Gifford has announced the departure of two of its managers. Ben Lloyd, co-manager of the company's Pacific fund, is to leave Baillie Gifford on July 9, to travel in China. Lloyd managed the fund since 2005, during which time the fund...

Barings takes defensive stance as fears deepen.
June 2, 2008... Baring Asset Management is moving to a defensive stance, as fears surrounding the integrity of central banks persist and there are few signs of a quick recovery in global markets. Andrew Cole, director of asset allocation at Barings, says...

Asian economies defy pessimists with robust growth.
June 2, 2008... Asia's economy performed better than expected in the first quarter of 2008, according to official data, but concerns that growth could yet slow are weighing on its stockmarket again. Hong Kong, Indonesia, Japan and Singapore are among the...

STRATEGY: Credit explosion sparks opportunities.
June 2, 2008... Oil-rich economies such as Brazil and Russia reap the rewards of a global hike in energy prices with a burgeoning consumer sector, which creates opportunities for the macro-aware investor. When Edwin L Drake tried to enlist people to his...

TRENDS: Skill that adds the active ingredient.
June 2, 2008... The choices for investors become ever more bewildering as new types of product follow each other on to the market: time to take stock and reflect again on actively managed funds. In this world of rapid fund innovation, the choices...

Q&A: Two heads on the hunt for intellectual assets.(Interview)
June 2, 2008... Anthony Cross and Julian Fosh, co-managers of two Liontrust funds, talk to Adam Lewis. Q: It was announced last week that Julian will co-manage the Intellectual Capital Trust and the First Opportunities fund with Anthony. Why did you feel...

DRIVING INDIA FORWARDS: Zooming ahead.
June 2, 2008... India's rapid growth centres on a domestically orientated economy, a burgeoning middle class and rising investment in infrastructure. But the gap between the better off and those who live in poverty is widening, writes Adam Lewis. For...

DRIVING INDIA FORWARDS: Poverty and inequality.
June 2, 2008... Despite the strong growth in India's economy, a large proportion of its 1.1 billion population still lives in poverty. If this poverty line is measured on the basis of earning less than $1 a day, the World Bank's definition, 34.3% of India's...

ANALYSIS: Asia painted a new shade of green.
June 2, 2008... A recently launched ethical Asia fund has outperformed its peers by offering an environmental philosophy that does not screen out oil and natural resources but focuses on engagement. It was unfortunate timing that the inaugural National...

CHANNELS: Supermarket where savers can take a sipp.
June 2, 2008... Ben Lundie, head of Vantage development at Hargreaves Lansdown, talks to Will Jackson. Q: What is the history of Vantage? A: We launched Vantage in March 2001. Cofunds and FundsNetwork were emerging at around that time and we realised...

AFI: Pick and mix holds sweet rewards.
June 2, 2008... Panellists remain optimistic about Britain's prospects, even though a recovery in British equities is distant - but some firms have a global presence and hidden value awaits the skilled selector. In contrast to the gloomiest forecasts...

FoFs: Cautious Cazenove counts on cash.
June 2, 2008... With its downbeat view of global prospects - and those of Britain in particular - the Cazenove Multi Manager Diversity fund has reduced its British equity holdings in favour of cash.The #160.5m Cazenove Multi Manager Diversity fund is...

FOCUS: 'Secret' of M&G's equity resurgence.
June 2, 2008... Well established as a "strong fixed-income shop", M&G was seen to have lost focus on equities in favour of corporate bonds. Neal Underwood reports on how the situation quietly changed. M&G has continued to develop its fixed-income...

Fund Manager's Diary: 20-26 April 2008.
June 2, 2008... Sunday The only day of rest after a day's hard graft in the garden. Wake to wonder at amazing views from our home. Leisurely walk with mad spaniel before lunch with old friends. Heavy on banter and light on wine as I am driving. Monday...

COMMENT: Gap narrows on the road to prosperity.
June 9, 2008... Only a few years ago the emerging markets were considered suitable only for the young and adventurous. The average investor would have at most a few per cent of emerging market stocks in his portfolio. Times are changing fast. In recent...

L&G to continue expanding range.
June 9, 2008... Fund Strategy understands L&G is planning to launch an Asian equity income fund and a multi-asset product, subject to Financial Services Authority approval, later this year. L&G did not give further details of the planned launches for...

Mystery players prepare for Second Coming.
June 9, 2008... Fund Strategy has learnt that a new investment company, Second Coming Asset Management (Scam), is set to open for business next week. Little is known about the people behind the new venture, although its chairman is believed to have run a...

Manager leaves ahead of Midas fund changes.
June 9, 2008... Tom McGrath, former co-manager of the Miton Arcturus portfolio, has left Midas Capital. McGrath's departure precedes a summer relaunch of the Midas fund range, which follows the firm's merger with iimia MitonOptimal earlier this year. ...

IN BRIEF: Invesco promotes fund co-manager.(Brief article)
June 9, 2008... Invesco Perpetual has promoted Michael Matthews to manage the Invesco Sterling Bond fund. Matthews has co-managed the fund since April 2006 with Paul Causer and Paul Read. The management style of the fund is not expected to change and...

IN BRIEF: Collins Stewart in talent swoop.(Brief article)
June 9, 2008... Collins Stewart has hired 13 members of Dresdner Kleinwort's investment companies team. They include managing directors Robbie Robertson, Gavin Tooke and Andrew Zychowski, and analyst Alan Brierley. Several of the team have worked together...

IN BRIEF: Mellon Global goes for name change.(Brief article)
June 9, 2008... The company Mellon Global Funds has been renamed BNY Mellon Global Funds. The move follows the July 2007 merger between the Bank of New York and Mellon Financial to create the Bank of New York Mellon. The BNY prefix has been added to all...

IN BRIEF: Two Templeton funds launched.(Brief article)
June 9, 2008... Franklin Templeton Investments has launched two fixed- income funds - the Templeton Global Total Return Bond and the Templeton Strategic Bond - in its British-registered range. The Global Total Return Bond fund seeks to achieve a total...

BlackRock wins mandate for Throgmorton small caps.
June 9, 2008... The board of the #275m Throgmorton investment trust has handed the investment mandate of the portfolio to BlackRock. The move brings to an end a 51-year link with Axa Framlington and its various predecessors, the trust's previous manager....

Treasury Asia to run Asia Pacific for Skandia.
June 9, 2008... Skandia Investment Group has announced a change to the manager line-up for its #430m Global Best Ideas portfolio. The firm has awarded the #30m Asia Pacific mandate, formerly run by Aberdeen Asset Management's Hugh Young, to Treasury Asia....

IN BRIEF: Norwich Union unveils two plans.(Brief article)
June 9, 2008... Norwich Union is launching two Norwich Capital Protected Plans. The three-year plan offers the return of the initial investment plus two- and-a-half times the percentage rise in the FTSE 100 index, with the total amount paid capped at 24%. The...

India's strength 'at risk from mismanagement'.
June 9, 2008... A mismanagement of India's growing cyclical pressures poses a threat to the country's structural strengths according to a report by Lombard Street Research*. The latest GDP figures seemed to confirm the consultancy's recent optimism on...

Two to fill Fidelity manager's shoes.
June 9, 2008... John Stavis, manager of the #653m Fidelity Income Plus and the #226m Fidelity Growth & Income funds is to be replaced by two new managers. Stavis, who has 13 years' investment management experience, is taking a six-month sabbatical...

IMA plans poll on creation of property sector.
June 9, 2008... The Investment Management Association (IMA) is to consult its members on whether it should create a property sector. This follows a growth in the number of property funds to more than 30. IMA members will also be asked if two sectors...

IN BRIEF: Bank pegs interest rates at 5%.(Brief article)
June 9, 2008... The Bank of England's Monetary Policy Committee left interest rates on hold last week, at 5%. The decision was widely expected in the face of continuing concerns over rising inflation. The most recent change was a quarter-point cut in April....

IN BRIEF: Backing for Credit Suisse launch.(Brief article)
June 9, 2008... Unitholders have voted for the launch of a second multi-manager multi- asset fund by Credit Suisse. The Multi-Manager Multi Asset Growth portfolio began trading last week with approximate weightings of 50% in equities and fixed income, 30% in...

Report forecasts 'gloom' for Britain.
June 9, 2008... Britain's economic prospects are gloomy according to the latest edition of the twice-yearly Economic Outlook from the Organisation for Economic Cooperation and Development (OECD). Economic growth is expected to slow with tight credit...

SGAM to streamline its UK fund range.
June 9, 2008... Societe Generale Asset Management (SGAM) plans to trim its UK fund range. Subject to shareholder approval, the group will merge the #50m SG UK Concentrated Core fund, managed by David Benson since February 2007, into the #100m SG UK...

Oil price fuels interest in Middle East and North Africa.
June 9, 2008... Several fund groups have launched Middle East and North Africa (Mena) funds recently. In April Investec added two Mena funds to its Frontiers range, while last week Pictet announced the launch of its Mena offering. Charlemagne Capital is...

STATEGY: Meat and fission back on the menu.
June 9, 2008... Investors hunt for growth when credit is costly and scarce and strong bets are agriculture as the world's population demands more protein and nuclear power to meet soaring energy needs. The MSCI World index has risen by 10% from its...

TRENDS: Look west, where the worst is over.
June 9, 2008... Investors should turn their attention away from Europe and towards America: the clean-up has already begun there, while Europe cannot yet assess how bad things might become. In one of the more significant shifts to emerge from May's...

Q&A: Nurs boosts powers of schroders portfolios.(Interview)
June 9, 2008... Andrew Yeadon, head of multi-manager at Schroders, answers this week's questions from Adam Lewis. Q: Why are three Schroder Multi Manager Portfolios - Cautious Managed, Strategic Balanced and High Alpha - converting from Ucits III to...

WEIGHED DOWN: Defence mechanism.
June 9, 2008... Structured products aim to protect investors' capital in all market conditions. But does the armour-plating hamper the speed with which returns are gained? Paul Farrow assesses a market that is thriving and raking in billions. ...

ANALYSIS: New star's sparkling rough diamond.
June 9, 2008... Amid New Star's comparatively lacklustre performance over recent years, Tim Steer's record shines more brightly than most. Much of it is down to the stockpicking system he calls Verge. The constellation at New Star has hardly shone...

CHANNELS: Big fish is first among independent minnows.(Company overview)
June 9, 2008... Malcolm Murray, head of marketing at Transact, answers this week's questions from Will Jackson. Q. Shareholders in Integrated Financial Arrangements last month voted against selling or listing Transact on the stockmarket. What was your...

AFI: Blackrock tops the popularity poll.
June 9, 2008... The BlackRock UK Absolute Alpha has become the most-named fund in the Adviser Fund Index. A main attraction is that its structure allows it to benefit from falling as well as rising markets.If the Adviser Fund Index (AFI) were a popularity...

Steady course in the right direction.
June 9, 2008... Now in year two of its three-year plan, F&C is reviewing its distribution channels. But is there a danger of too much change, too soon making analysts nervous? Neal Underwood investigates. F&C Asset Management is now in the second year...

Fund Manager's Diary: 7-13 May 2008.
June 9, 2008... Wednesday Get into the office early for team meeting, having just flown back from France. We review companies and issuances. Big themes are financials and America, and there has been a new convertible bond issue in Europe. We are hoping this...

QUARTERLY MARKET REVIEW: Spectre of inflation is not whole story.
June 9, 2008... Judging by this issue of Fund Strategy's Quarterly Review it seems that inflation has risen from the dead. Back in the 1990s it became fashionable to proclaim "the death of inflation". Roger Bootle, now managing director of Capital...

QUARTERLY MARKET REVIEW: Heat of the moment.
June 9, 2008... Spiralling commodity prices and the looming recession are leading pundits to fear a return to the 'stagflation' of the 1970s, when slow growth was coupled with soaring inflation. Simon Hildrey reports. Global stockmarkets and investors...

QUARTERLY MARKET REVIEW: View of the International Monetary Fund.
June 9, 2008... The International Monetary Fund (IMF) expects the divergence in the economic growth performance between developed and emerging economies to continue. It says America will tip into recession this year as a result of the problems in the housing...

QUARTERLY MARKET REVIEW: How does today compare with the 1970s?
June 9, 2008... With the oil price having reached $135 a barrel in May, comparisons have been made with the oil shocks of the 1970s. How accurate is this comparison of the two periods? Julian Jessop, chief international economist at Capital Economics, plays...

QUARTERLY MARKET REVIEW - BRITAIN: Braced for a long and painful haul.
June 9, 2008... The impact of declining consumer and government spending means Britain faces a period of slow growth into 2009 - and some managers are reducing their exposure to British companies. With financials stocks still struggling in the aftermath...

QUARTERLY MARKET REVIEW - BRITAIN: Pessimism could be a good thing.
June 9, 2008... The cash reserves of investors who are sitting tight, despite a strong showing in some sectors and signs of stabilisation in the American housing market, may help the markets to rally. Equity volatility has continued to be a feature of...

QUARTERLY MARKET REVIEW - EUROZONE: Now to ride out market aftershocks.
June 9, 2008... While European equity markets have shown some recovery, they will remain volatile. Wise investors will focus on strong sectors across the region, such as energy, rather than countries.Equity markets in the eurozone seem to have stabilised after...

QUARTERLY MARKET REVIEW - EUROZONE: Europe's prudence aids restoration.
June 9, 2008... Chances of a recovery in private consumption are growing as business confidence rises in France and Germany. Europeans are also comparatively free of the debt burden of American consumers.European indices recorded a modest drop in February as...

QUARTERLY MARKET REVIEW - US: After Bear, we are still in the woods.
June 9, 2008... The rescue of Bear Stearns brought a nervous sigh of relief, and employment, technology and energy are showing encouraging signs, but dangers remain - not least in the housing market. In early March, no news was good news. Money was fleeing...

QUARTERLY MARKET REVIEW - US: Obstacles on the road to recovery.
June 9, 2008... Despite some restoration of market confidence, there are still challenges ahead - not least the collapsing housing market, rising fuel and commodity costs and the threat of a decline in GDP. The American economic downturn, exacerbated by...

QUARTERLY MARKET REVIEW - ASIA: Oil-fired inflation threatens growth.
June 9, 2008... Central bank inflation targets have been exceeded as food and fuel prices soar. Investors took fright when oil surged to $135 a barrel last month, bringing an Asian stockmarket rally to an abrupt end. Inflation has begun to loom over Asia....

QUARTERLY MARKET REVIEW - ASIA: High rice price is short-term trend.
June 9, 2008... While the rising cost of rice presents an export opportunity for the top producing nations, such as China, it will be a challenge for economies that depend on importing it, especially the Philippines. Stockmarket participants globally,...

QUARTERLY MARKET REVIEW - JAPAN: Signals point to a Tokyo turnaround.
June 9, 2008... Japanese stocks are cheap, and it is not just the indices that say so. A range of valuation data supports this view. It may be time to think less about the risks and more about the opportunities.Market commentators are frequently in the habit...

QUARTERLY MARKET REVIEW - BONDS: Buying cheap and staying cheerful.
June 9, 2008... After a short-lived rally in the markets, credit fund managers expect full recovery to take some time. Some are taking advantage of low values in bank debt as they watch for glimmers of confidence. The first few months of 2008 were dismal...

QUARTERLY MARKET REVIEW - BONDS: After penance, blessings may follow.
June 9, 2008... Financial institutions on both sides of the Atlantic have confessed their losses and been given absolution - a phase that looks set to continue. But better times will come for seekers of value.If anything, the past three months have been about...

QUARTERLY MARKET REVIEW - BONDS: Dollar route an option for UK players.
June 9, 2008... British banks are starting to replenish their capital base, but with liquidity limited in the sterling corporate bond universe, the dollar and euro denominated markets offer a promising alternative. The past three months have been a bumpy...

COMMENT: Overhaul aims to give our readers the edge.
June 16, 2008... This week's Fund Strategy includes several improvements to the magazine. The aim is to make the publication even more valuable to our readers. The first is the monthly Stateside column from Vanessa Drucker, Fund Strategy's American...

False dawn as confidence tumbles.
June 16, 2008... Investor confidence has tumbled significantly in June, according to the Investor Confidence Index produced by Hargreaves Lansdown. Last month the index hit its highest point so far this year, suggesting that confidence might be creeping...

Group replaces distribution fund equity manager.
June 16, 2008... New Star Asset Management has transferred the management of the equity portion of its Managed Distribution fund to Trevor Green from Toby Thompson. Green, who joined from RCM last month, will make several changes to the portfolio in an effort...

F&C ditches Schroder fund for Veritas.
June 16, 2008... Dean Cheeseman, the head of fund of funds at F&C, has switched out of the Schroder Global Dividend Maximiser fund and replaced it with Veritas' Global Income fund. The multi-manager team was also strengthened with the hiring of Paul...

IN BRIEF: BlackRock plans China fund.(Brief article)
June 16, 2008... BlackRock plans to launch an offshore BGF China fund with British distributor status. Jing Ning and Alan Wang will run the fund, with strategic overlay provided by Nick Scott, the firm's Asian equity chief investment officer. The fund, to be...

IN BRIEF: Ballie Gifford adds to Japan strength.(Brief article)
June 16, 2008... Baillie Gifford, an Edinburgh-based investment management group, has appointed Donald Farquharson as an investment manager in the Japanese equity team. Farquharson joins Baillie Gifford from Schroders, where he held various positions...

IN BRIEF: Legg Mason fund range increased.(Brief article)
June 16, 2008... Legg Mason, the world's ninth-largest asset manager, launched the Batterymarch Emerging Markets Equity fund last week into its Dublin- domiciled Legg Mason Global Funds range. The fund, benchmarked to the MSCI Emerging Markets Index, aims to...

IN BRIEF: BH Macro share classes listed.(Brief article)
June 16, 2008... BH Macro, a closed-ended, limited liability investment company, has announced its sterling and euro share classes have been included in the revised FTSE 250 Index. The fund, which was admitted to the main market of the London Stock Exchange in...

IN BRIEF: S&P launches Asia index series.(Brief article)
June 16, 2008... Standard & Poor's has launched the S&P Asia Thematic Index Series - three new investable indices for Asian equity markets based on specialist investment themes. The S&P Asia Infrastructure index, S&P Asia Water index and S&P Asia Alternative...