Fund Strategy articles from June 2009

Fund Strategy archives from June 2009

COMMENT: Rift with Germany is a worrying trend.
June 8, 2009... Daniel Ben-Ami, Editor A rift is growing between Germany, on one side, and America and Britain on the other, in relation to economic policy. The latest spat followed comments by Angela Merkel, Germany's chancellor, on quantitative...

Investec AME closed to new business.
June 8, 2009... The Investec Africa & Middle East (AME) fund was closed to investors on several platforms after its move to non-daily dealing. Skandia has closed the fund to new business while Fidelity's FundsNetwork has removed the fund from the platform...

Martin Currie plans to add hedged share class.
June 8, 2009... Martin Currie plans to adds a hedged sterling share class to its #500m North America fund as a way of reducing currency risk. The addition of the hedged share class follows changes made to the Coll (collective investment schemes) rulebook...

A refocus for Stick after a difficult time.
June 8, 2009... Carl Stick has refocused the #482m Rathbone Income fund in an effort to turn around performance after a tough couple of years for the vehicle. He has cut the number of holdings from 80 to 50 and is now quicker to take profits when stocks...

IN BRIEF: Group closes four Dublin funds.(Brief article)
June 8, 2009... Close Investments is closing four of its five Dublin-domiciled sub- funds after assets fell to a total of #30m. Continental European Equity, Enhanced Gilt, Far East Equity and Global Growth will close, although Japanese Equity is unaffected....

IN BRIEF: Aegon pulls its 5 for Life plan.(Brief article)
June 8, 2009... Aegon is pulling its 5 for Life product, aimed at new investors, because of unfavourable market conditions. Investors will instead be able to use a new product coming to market on June 29, which will offer age-related levels of income. 5 for...

IN BRIEF: OBSR removes suspended rating.(Brief article)
June 8, 2009... Old Broad Street Research has removed the suspended A rating on Jupiter Undervalued Assets and withdrawn the AA rating on Old Mutual Japanese Select. Undervalued Assets was taken over by Patrick Harrington in March when Edward Bonham...

IN BRIEF: Corcell joins RWC for fund launch.(Brief article)
June 8, 2009... Mike Corcell, the former manager of the Threadneedle American Crescendo fund, has joined RWC Partners to launch an American long/short equity fund. RWC Partners says that the new fund complements its existing range of funds managed by Ajay...

Industry urged to review rules in light of 'summer 2007'.
June 8, 2009... Authorised funds were "generally robust" during the market downturn, according to the Investment Management Association (IMA). But the IMA urges that the rules on counterparty risk, liquidity and suspensions be reviewed. In a...

Motor bankruptcies could cost US $37bn in revenue.
June 8, 2009... General Motors (GM), which officially filed for a Chapter 11 protection last week, is the biggest industrial corporation ever to go bankrupt in America and the third-largest business of any kind to do so, after Lehman Brothers last year and...

IN BRIEF: Ashmore adds sterling classes.(Brief article)
June 8, 2009... Ashmore Investment Management has added sterling share classes to two emerging market Luxembourg-domiciled Sicavs. The Emerging Market Debt fund invests primarily in dollar-denominated debt and the Local Currency fund holds local currency...

IN BRIEF: Manager change on Legg Mason fund.(Brief article)
June 8, 2009... Legg Mason has changed the manager of its Royce US Small Cap Opportunity fund. Buzz Zaino, the previous lead manager, handed control of the fund to Bill Hench, his co-manager. Hench was deputy manager on the #55m fund since it was launched in...

IN BRIEF: The MPC keeps its base rate at 0.5%.(Brief article)
June 8, 2009... The Bank of England's monetary policy committee (MPC) last week held its base interest rate at 0.5% and vowed to press ahead with #125 billion asset purchase plans. The MPC reduced rates from 1% to 0.5% in March to combat the continuing...

IN BRIEF: The ECB votes to hold interest rates.(Brief article)
June 8, 2009... The European Central Bank (ECB) voted to hold interest rates at 1%. The marginal lending facility will remain at 1.75% and the deposit facility at 0.25%. The last change to rates was a quarter point cut in May. Jean- Claude Trichet, the ECB...

Woodford: recovery is a long way off.
June 8, 2009... The market is too confident that Britain is heading into a V-shaped recovery, according to Neil Woodford, the head of investment at Invesco Perpetual. He says the market has priced an economic upturn into valuations, but warns recovery...

Manager changes after GLG's acquisition of SGAM.
June 8, 2009... Phil Pearson and Anthony Burton have taken over the management of the #41m GLG Technology Equity fund after the departure of Hugh Grieves. Grieves left the firm following GLG's acquisition of Societe Generale Asset Management (SGAM). ...

Interest in Russia is beginning to reignite.
June 8, 2009... With the news that Julius Baer is set to open up a Russia fund to British investors there is a sense that sentiment towards the country may be taking yet another turn. Russia found itself shunned by investors last year after a combination...

ANALYSIS: Taiwan tiger may roar again as links with China improve.
June 8, 2009... Can a leopard change its spots? Or, more importantly for investors, can a tiger change its stripes? Yes, would be the answer given by fund managers who are flocking back into Taiwan, a country that has been overlooked for many years mainly...

STRATEGY: Long-term opportunities in Asia.
June 8, 2009... The Asian equity market has recently enjoyed an upturn, after months of volatility. Despite still having a long way to go, Asia could offer some compelling prospects for the long-term investor. Over the past couple of months Asian...

TRENDS: Smaller companies - big returns?
June 8, 2009... The UK Smaller Companies sector has suffered in the recession, prompting many investors to make less risky choices. However, recent figures show it is making a remarkable recovery. It is an indication of the state of the market in recent...

Q&A: Blue sky defends its structured products.(Interview)
June 8, 2009... Chris Taylor, chief executive and a co-founder of Blue Sky Asset Management, talks to Judith Evans Q: Several advisers have been publicly critical of structured products - what is your response? A: Well, the first thing I'd say is...

FEATURE: Hitting the target?
June 8, 2009... The range of absolute return funds has increased considerably over the past year and IMA statistics show that the sector is still growing. But investors are concerned that some funds are not fulfilling their performance objectives. Will...

Absolute return: fund buyer recommendations.
June 8, 2009... The enduring popularity of BlackRock UK Absolute Alpha is immediately apparent when talking to investors about the Absolute Return sector. Tim Cockerill, the head of research at Rowan, Tony Lanning, the manager of Gartmore MultiManager...

ANALYSIS: To have and to hold ... for 40 years.
June 8, 2009... Tom Dobell is only the third manager of the M&G Recovery fund, which was 40 years old last week and still holds stocks from 1969. It has beaten the All-Share index for the past nine years. It's one of the oddities about this recession....

INVESTMENT TRUSTS: BlackRock manager banks on Brazil.
June 8, 2009... As the World Bank says that Latin America is better placed than other regions to fight the global financial crisis, Will Landers has positioned his fund to benefit from a "recovery risk appetite". Boom and bust are often precariously...

AFI: Cautious funds face new competition.
June 8, 2009... The Ucits III funds offer the potential for profit, even when markets are failing. Should investors abandon cautious managed funds in favour of this new approach, or are they just a novelty? Cautious managed funds have traditional been...

FoFs: Fidelity fund increases weighting.
June 8, 2009... An investment clock model has helped Trevor Greetham's Multi-Asset Strategic fund mitigate losses, while he responds to increasing signs of recovery by boosting his equity weighting. Trevor Greetham has moved his Fidelity Multi-Asset...

FOUCS: Omam team revs up to hit top gear.
June 8, 2009... With the launch of new funds, the possibility of more products and the hiring of new managers Old Mutual Asset Managers is pursuing a strategy of investing for growth, writes Adam Lewis. Ask any IFA or multi-manager what the main strength...

Fund Manager's Diary: 27 April to 3 May 2009.
June 8, 2009... Monday My week begins with an hour-long commute into New York, from Westport in Connecticut. On the journey, I respond to emails on my Blackberry. Once I get into the office I do my usual morning routine of checking the cash position on the...

COMMENT: Debate that ignores economic realities.
June 15, 2009... Daniel Ben-Ami, Editor Oh no it isn't! Oh yes it is! The debate about whether the world is recovering from recession is getting mightily confusing. Economic discussion has been largely reduced to pantomime. Last week pundits...

Gibbs to head merged Jupiter trust.
June 15, 2009... Jupiter is planning to merge three split-capital investment trusts and relaunch them as a single taxefficient trust managed by Philip Gibbs. Tony Nutt's Second Enhanced Income Trust, Gibbs's Second Split Trust and the Defined Capital...

Nimrod trust will focus on gold price anomalies.
June 15, 2009... Nimrod Capital plans to launch a closed-ended fund investing in smaller gold stocks and mining shares. The group says an anomaly has opened up with gold spot prices close to $1,000 (#608) an ounce but the share prices of smaller gold...

Mathias joins Thames River as Quantum closes.
June 15, 2009... Quantum Asset Management is the latest group to close its doors to business. The group announced it would no longer be acting as an asset manager to the UK Absolute Income fund or structured investment plans from June 2. Mark...

IN BRIEF: Fund Strategy wins Ignis award.(Brief article)
June 15, 2009... Fund Strategy was named Best Trade Investment Team of the Year at the annual Ignis Asset Management journalist awards last week. The judges included Brian Dennehy of Dennehy Weller, Gavin Haynes of Whitechurch, Darius McDermott, managing...

IN BRIEF: Effects of QE unclear, says bank.(Brief article)
June 15, 2009... The effects of quantitative easing on Britain's economy remain unclear, according to the Bank of England's Quarterly Bulletin. The report, published last week, analyses the impact of the Bank's Asset Purchase Facility, which started buying...

IN BRIEF: GLG takes on five SGAM funds.(Brief article)
June 15, 2009... GLG Partners has announced that John White and Jason MacKay will run five British equity funds formerly managed by Societe Generale Asset Management following SGAM's acquisition in April. UK Growth, UK Active 350, UK Income, UK Small...

IN BRIEF: Companies make the FTSE 100.(Brief article)
June 15, 2009... 3i, a global private equity group, has been promoted to the FTSE 100 index after the latest rebalancing of Britain's 100 biggest companies. Other companies elevated from the FTSE 250 to the FTSE 100 include Wolseley, a plumbing firm, and the...

IN BRIEF: Liontrust sees assets fall.(Brief article)
June 15, 2009... Liontrust's assets under management fell from #4.7 billion in 2008 to #1.2 billion in June, according to its latest results. Pre-tax profits fell 25% to #12.4m and basic earnings per share fell by the same degree to 28.3p. Performance fees...

CORRECTION: Investec AME.(Correction notice)
June 15, 2009... Last week Fund Strategy published a story with the headline "Investec AME closed to new business" which was incorrect. The Investec Africa and Middle East fund has been closed to business on Skandia and Fidelity FundsNetwork because of its...

Barclays sells BGI to BlackRock.
June 15, 2009... Barclays is selling off one of the most profitable parts of its business in a move advisers say shows how desperate banks have become to raise capital. BlackRock agreed last week to buy Barclays Global Investors (BGI), including iShares,...

Slater team launches Firecrest and first Oeic.
June 15, 2009... Jim Slater and Mark Slater have launched a fund management firm with the former editor of Investing for Growth, Nigel Milton. Firecrest Fund Management was set up by the trio last year and received regulatory approval to launch an Oeic,...

Managers drop equities for corporate bonds.
June 15, 2009... Two multi-managers are ditching equities for corporate bonds in the view that they could be the best performing asset class this year. John Husselbee, a multi-manager and founder of North Investment Partnership, is considering rotating out...

IN BRIEF: Stick's fund back on Wealth 150 list.(Brief article)
June 15, 2009... Hargreaves Lansdown has moved Carl Stick's Rathbone Income fund back onto its Wealth 150 list of recommended funds. The adviser took the #482m fund off the list in March following difficult years in 2007 and 2008. Performance was hit by the...

Groups bullish on Japan as domestic 'safe haven'.
June 15, 2009... Chris Taylor, the manager of the Neptune Japan Opportunities fund, has turned bullish on Japan for the first time in three years. During this time, Taylor has shorted the Topix index using futures contracts and maintained a maximum cash...

America could see an upturn by the end of the year.
June 15, 2009... An upturn in America is starting to look possible following one of the worst years for the country's economy since the second world war. Ben Bernanke, the chairman of the Federal Reserve, said in testimony to a congressional committee at...

IN BRIEF: European fund sales hit E3 billion.(Brief article)
June 15, 2009... Net sales of European funds hit E3 billion (#2.6 billion) in April, up from E75m in March, according to Lipper FMI's Fund Flash Report. The figure was boosted by a net inflow of E3.6 billion into bond funds, which Lipper says was the...

ANALYSIS: Banks repaying Tarp debts poses problems for investors.
June 15, 2009... The news from America last week looked like a shard of light for financial companies as 10 of the country's biggest recipients of government bailouts promised to pay the money back. American Express, Bank of New York Mellon, BB&T, Capital...

STATESIDE: Is there a future for General Motors?
June 15, 2009... The Obama administration is ploughing huge amounts of taxpayers' money into the "iconic" car company, GM. But with a long list of entrenched failings, can the "new GM" really change? An icon on life support If the General Motors...

STRATEGY: Rocky road to recovery for America.
June 15, 2009... American equities are making considerable progress and there are early signs of a recovery. But does this mean the economy is out of danger, or is there a period of unpredictability ahead first? With America at the epicentre of the...

TRENDS: GCC investment could reap rewards.
June 15, 2009... With solid economic practices, a reserve of liquidity and a robust level of growth, the emerging markets sector of GCC region could offer some exciting opportunities for the brave investor. Seneca, the Roman rhetorician and writer of...

Q&A: Recovery facilitated by cheaper credit market.(Interview)
June 15, 2009... Stephen Snowden runs the Old Mutual Corporate Bond fund. He answers questions from James Smith. Q: How is the portfolio positioned? A: The main feature of recent months has been a move from 10% in cash and gilts to 2%, and we have...

FEATURE: Money to burn?(Company overview)
June 15, 2009... Meagre returns and plummeting markets have caused the venture capital sector to fizzle out. VCs may have to overhaul their processes, including reducing their burn rates. Vanessa Drucker, Fund Strategy's American editor in New York, discusses...

FEATURE: A world view.
June 15, 2009... The European VC market is smaller, with lower valuations than its American counterpart. It also lacks "entrepreneurial pockets", explains Growney, who worked with start-ups in France, Germany, Holland and Spain, when he was managing partner...

FEATURE: IPOs creep back.
June 15, 2009... In 2008, only seven venture-backed companies made public debuts, well down from a slate of 76 offerings in 2007. But in recent weeks, venture capital has finally generated its own green shoots in the form of two IPOs after a nine-month...

ANALYSIS: Japanese blue chips 'on the cheap'.
June 15, 2009... Paul Chesson of Invesco Perpetual argues, against conventional wisdom, that there has never been a better time to buy "the world's greatest manufacturing companies" at bargain prices. There may never be a better time to buy the world's...

INVESTMENT TRUSTS: A personal choice for the long-term.
June 15, 2009... Troy Asset Management's Personal Assets fund missed out on the recent 'trash rally' but the manager, Sebastian Lyon, says he prefers higher- quality companies over the longer term. Troy Asset Management's Sebastian Lyon took on the...

AFI: Bonds eclipse equity weightings.
June 15, 2009... Panellists boosted absolute return funds and bond portfolios in May's rebalancing, causing the fixed income allocation in the Cautious benchmark to exceed equities for the first time. Absolute return funds and bond portfolios were the big...

FoFs: Margetts funds take the top three.
June 15, 2009... Margetts is performing well, with three of its funds heading the table. The manager of one of these top funds explains why he has gone back to Japan, after vowing never to invest there again. Margetts Fund Management can lay claim to...

FOCUS: Will new stars shine for Artemis?
June 15, 2009... As its future becomes clear after a period of uncertainty, Artemis is putting down markers with a series of key appointments and its first retail fund in four years, writes Hannah Smith. The first half of 2009 was eventful for Artemis...

FUND MANAGER'S DIARY: 5-11 May 2009.
June 15, 2009... Tuesday I return to the office after the bank holiday weekend. Although Asian markets were open yesterday, developments were limited and the three main points of interest from the previous week look likely to be this week's too. Investors...

COMMENT: Will others follow in Vanguard's tracks?
June 22, 2009... Adam Lewis, Deputy Editor Months before the release of the new Terminator film - Terminator Salvation - Fund Strategy had its own take on man versus machine, in the guise of whether a price war was on the horizon between active and managed...

Heavyweights clash on defensives.
June 22, 2009... Richard Buxton and Neil Woodford, two high-profile British equity managers, are at odds on their view of traditional defensive stocks. Woodford, who runs more than #18 billion in equity income portfolios and mandates for Invesco Perpetual,...

Former Insight pair to set up Ucits fund range.
June 22, 2009... Patrick Armstrong and Ana Cukic Armstrong, the former co-heads of Insight's multi-asset desk, have launched their own firm. The pair plan to unveil a range of Ucits funds for qualified investors through their new company, Armstrong Investment...

Gartmore eases burden on Guy and Rambourg.
June 22, 2009... Gartmore's Roger Guy and Guillaume Rambourg will step down from the management of the group's European Selected Opportunities fund in 2010. The fund will be taken over by John Bennett, who joins the group from GAM, where he runs the GAM...

IN BRIEF: Baillie Gifford in China fund launch.(Brief article)
June 22, 2009... Baillie Gifford last week launched its Greater China fund, an Oeic that gives investors access to companies in mainland China, Taiwan and Hong Kong. It is available to the wider retail market after first opening for trading as an...

IN BRIEF: Skandia rejigs global portfolio.(Brief article)
June 22, 2009... Skandia Investment Group (SIG) has altered the asset allocation of its Global Dynamic Equity multi-manager fund, cutting its Europe weighting and boosting exposure to Asia Pacific excluding Japan. The fund uses a flexible asset allocation...

IN BRIEF: America's cost of living falls 1.3%.(Brief article)
June 22, 2009... The American Consumer Price Index fell by 1.3% over the past year, its largest yearly fall since 1950. The index, a gauge of America's cost of living, was affected by a fall in energy prices of 27.3% over the 12 months to May 31. Transport...

IN BRIEF: JFP offers funds to mirror Keydata.(Brief article)
June 22, 2009... Jubilee Financial Products (JFP) is launching a range of funds designed to mirror those offered by Keydata, a structured product provider that went into administration earlier this month. JFP's range will have the same income and growth...

CORRECTION: Energy Ventures.(Correction notice)
June 22, 2009... Last week's Fund Strategy cover story "Money to Burn?" incorrectly stated that Energy Ventures, the Norway-based venture capital company specialising in upstream oil and gas technology, invested in 22 companies and exited from six in its new...

Positive reaction for Vanguard funds.
June 22, 2009... Vanguard is in negotiations with over 15 fund platforms, following last week's announcement of the launch of 11 British and Irish domiciled index tracking funds. The total expense ratios (TERs) and annual management fees of the 11...

Cazenove to bolster absolute return offering.
June 22, 2009... Cazenove plans to add to its absolute return fund range with a mid to small-cap vehicle in September. The fund will be called Absolute UK Dynamic and will closely mirror the group's #140m hedge fund, UK Dynamic Absolute Return, run by...

Tighter regulations for financial sector in US.
June 22, 2009... The American government last week announced its proposals for a regulatory overhaul in the financial sector. Ben Bernanke, the chairman of America's Federal Reserve, also urged a "macroprudential" and comprehensive approach to oversee...

IN BRIEF: Barclays accepts BlackRock offer.(Brief article)
June 22, 2009... Barclays last week officially accepted BlackRock's offer for its Barclays Global Investors (BGI) division. The bank's board of directors has recommended that shareholders approve the sale, which will go to the vote in a special meeting in...

Advisers still divided as FSA nears decision on fees.
June 22, 2009... Advisers remain divided on the issue of fee-based charging, just days before the Financial Services Authority (FSA) publishes a consultation paper on the Retail Distribution Review (RDR). The regulator outlined its proposal on charging...

Investec fund avoids weakening dollar.
June 22, 2009... Investec Asset Management last week became the latest group to launch a hedged share class for its American fund, to protect advisers worried about currency fluctuations. The new share class will hedge dollar exposure back into sterling,...

Henderson New Star confirms fund merger.
June 22, 2009... Henderson New Star has confirmed the merger of three funds in the first step of its fund rationalisation programme. The assets of the New Star Hidden Value and New Star Select Opportunities funds will be merged into the New Star UK Alpha...

IN BRIEF: Unemployment hits 12-year high.(Brief article)
June 22, 2009... The unemployment rate in Britain rose to 7.2% in April, a 12-year high, according to the Office for National Statistics. Over 2.2m people were jobless in the three months to April, 2009, up 232,000 from the three months to January, and up...

ANALYSIS: Investors' verdict on euro underlines union's weakness.
June 22, 2009... Recent rallies have failed to stoke optimism on Europe, which remains the sick partner of the global economy in terms of investor sentiment. Despite Europe tracking stockmarket gains across the world, investors still see the prospect of...

STRATEGY: Will monetary stimulus plan work?
June 22, 2009... Low interest rates and quantitative easing were brought in to stimulate the economy. But if banks choose not to lend and households refuse to spend, will these measures actually work? Central banks around the world moved to cut interest...

TRENDS: A ray of hope for investment trusts?
June 22, 2009... After heavy losses, many investors are questioning the future of investment trusts, particularly when there are other options. However, could a new capital structure offer hope to the industry? The investment trust industry is in crisis....

Q&A: Boosting risk to achieve new peaks on uk fund.(Interview)
June 22, 2009... Stephen Peak, the manager of the New Star UK Alpha fund, answers questions from Adam Lewis. Q: What was your background before taking over the UK Alpha fund in April? A: I started as UK fund manager at Norwich Union [NU], joining the...

FEATURE: Uniformly different.
June 22, 2009... After many assets plummeted, some investors saw huge losses with "lower- risk" money market funds. The IMA and ABI are investigating after the industry was criticised for labelling very different funds in the same way. But after a big knock...

ANALYSIS: China aids a copper-plated recovery.
June 22, 2009... After a grim 2008, when metal prices nosedived faster than they did in the Great Depression, JPM Natural Resources is climbing again as China stockpiles copper for projects yet to come. China consumed 33.2m tonnes of oil in May, up 6%...

INVESTMENT TRUSTS: Hope springs for battered Ukraine.
June 22, 2009... Ukraine was crippled by the economic crisis and political instability. But the manager of a trust devoted to the country is confident of an upturn, and bond and equity prices have bounced back. Climbing the economic ladder and rising out...