Fund Strategy articles from March 2007

Fund Strategy archives from March 2007

COMMENT: Market turmoil is no more than the jitters.
March 5, 2007... What should be made of last week's bout of market volatility? Fund managers naturally have an interest in playing down its significance. But it does not necessarily follow that they are right. It is significant that global markets were...

Warren resignation adds to speculation over HSBC duo.
March 5, 2007... The resignation of Michael Warren from HSBC Investments on Friday last week increased speculation as to the likely destination of Gary Potter and Robert Burdett. The former fund of fund managers at Credit Suisse, where they were responsible...

EU signals intent to drop VAT on trust charges.
March 5, 2007... The European Union's Advocate General, Juliane Kokott, has signalled that investment trusts should be exempt from paying VAT on management fees. Her statement follows a joint legal test case, launched by the Association of Investment...

IN BRIEF: Nucleus signs up three more IFAs.(Brief article)
March 5, 2007... Three more IFAs have signed up for Nucleus, a wrap platform. WR Financial, Cameron Chase and Lofthouse Gate, based in Stockton, Manchester and Wakefield respectively, are the latest additions. The firms are the first to join the platform since...

IN BRIEF: Invesco appoints equities manager.(Brief article)
March 5, 2007... Invesco Perpetual has appointed Liesbeth Rubinstein as a fund manager within its emerging markets equities team. Reporting to Kathryn Langridge, head of international equity products, Rubinstein will manage the Eastern European components of...

IN BRIEF: Axa Framlington hires strategist.(Brief article)
March 5, 2007... Axa Framlington has appointed Mark Tinker as portfolio manager. He will develop a global equity proposition, adopting a top-down investment approach. This will start with the launch of a global long-short fund in the first half of this year....

Gartmore fund almost doubles assets.
March 5, 2007... The Gartmore Growth Opportunities investment trust has attracted nearly #30m in C-share subscriptions. Requests for about #29.6m worth of C shares were received by February 26, almost doubling the trust's assets under management. ...

Insight and UBS offer absolute return portfolios.
March 5, 2007... Insight Investment and UBS Global Asset Management have launched absolute return vehicles. The Absolute Insight and UBS Targeted Return funds are Ucits III-enabled products, mainly offering exposure to equities and bonds. Absolute Insight...

F&C set to launch fund of hedge funds.
March 5, 2007... F&C is to launch a closed-ended fund of hedge funds. The F&C Event Driven fund will invest in 20-40 hedge funds in the event-driven hedge fund category. Expected to launch by the end of May, the fund will be managed by F&C Partners, the...

IN BRIEF: James Hay Sipp given green light.(Brief article)
March 5, 2007... The Financial Services Authority has granted James Hay authorisation for its self-investment personal pension business. The James Hay Sipp is authorised for business from April 6, 2007. This complements James Hay's wrap platform, launched in...

IN BRIEF: April deadline for Barclays' bond.(Brief article)
March 5, 2007... Investors have until April 27, to invest in Barclays' five-year FTSE Income and Growth Bond. The bond is designed to provide investors with a steady stream of both income and equity-linked growth potential. Half of investors' capital is...

IN BRIEF: S&P gives F&C funds AA ratings.(Brief article)
March 5, 2007... Standard & Poor's has upgraded F&C's four unfettered funds of funds to AA ratings. S&P praised the funds' quantitative traffic light screening process and strong results. The upgraded funds are Multi-manager Growth, Multi-manager Balanced,...

Schroders seeks distributor status.
March 5, 2007... Schroders is seeking UK distributor status for a fund that invests in agricultural commodity futures and equities. Launched in October 2006, Schroder Alternative Solutions Agriculture has raised more than $250m (#125m) in assets. ...

IMA records drop in retail investment fund sales.
March 5, 2007... Net retail sales of investment funds were #893m in January, 47% lower than in December, according to the latest statistics from the Investment Management Association. Fund sales were 17% lower than in January 2006, while net Isa sales...

Aberdeen to launch Emerging Markets Smaller Companies.
March 5, 2007... Aberdeen Asset Managers will launch its Global Emerging Markets Smaller Companies fund, run by Devan Kaloo, on March 26. The Luxembourg-domiciled portfolio will hold 30-70 stocks, although Joanne Irvine, Aberdeen's head of emerging markets...

Jupiter awaits approval for European Income.
March 5, 2007... Jupiter Asset Management is to launch a European income fund, subject to Financial Services Authority approval. Scheduled for launch in May, the Jupiter European Income fund will invest chiefly in companies with operations or stockmarket...

IN BRIEF: Value of Adviser Fund Indices falls.(Brief article)
March 5, 2007... The value of all three Adviser Fund Indices dropped last week, following the downturn in global share prices. Over the week to March 1, the Aggressive, Balanced and Cautious AFIs were down 3.4%, 2.4% and 1.5% respectively. However, the indices...

IN BRIEF: Research reveals Reits confusion.(Brief article)
March 5, 2007... Research commissioned by Reita, the Reits and Quoted Property Group, shows there is still confusion about real estate investment trusts. More than one in three (34%) financial advisers do not know whether they can legally give their clients...

Government bonds bolstered by equity turbulence.
March 5, 2007... Yields on 10-year UK gilts and 10-year US treasuries fell last week as result of the global equity market falls. In a classic flight to quality, as equities fell, money was transferred to less-risky assets. This led 10-year UK gilt yields...

China triggers global market turbulence.
March 5, 2007... The first signs of last week's turbulence in global stockmarkets appeared in China on Tuesday. The Shanghai Composite index fell by almost 9%, the largest one-day fall in a decade. The fall was triggered by concerns that the Chinese...

Private equity firms fight back as buyouts come under fire.
March 5, 2007... As senior figures from private equity firms converged on Frankfurt for last week's Super Return conference, their industry had never experienced so much scrutiny. Talk of a buyout of Sainsbury's in Britain, and the $45bn (#23bn) acquisition of...

TRENDS: Dividend is clue to company strength.
March 5, 2007... Higher dividend-yielding companies have outperformed in two out of three years for more than a decade, backing up the view that high payout ratios indicate good earnings growth prospects. It was no fluke that 2006 was another good year for...

STRATEGY: Italy can repeat Germany's success.
March 5, 2007... Italy and Germany were considered "the sick men of Europe" a few years ago, but the German economy has since recovered and there are signs that Italy can do likewise in the longer term. In 1987, thanks to a little accounting legerdemain,...

Q&A: Takeover bids drive Japan's equity market.(Interview)
March 5, 2007... David Mitchinson, manager of the JPM Japan fund, answers this week's questions from Simon Hildrey. Q: Until last week's correction, it had been a good year for the Japanese stockmarket. What has been driving equity returns? A: The...

EXPERT VIEWS: Repeat performance.
March 5, 2007... Respondents to the latest Adviser Fund Index panellist questionnaire predict another good year for equities. But while Europe is expected to perform well, Japan's popularity has diminished. James Teasdale reports. The 18 Adviser Fund...

EXPERT VIEWS: Panellists' views on the AFI.
March 5, 2007... The panellists are relatively upbeat about the prospects for global financial markets and this is reflected in their predicted values for the three Adviser Fund Indices at the end of 2007. Predictions for the value of the Aggressive AFI on...

EXPERT VIEWS: Panellists' macro and market views.
March 5, 2007... While 86% of respondents expected shares to outperform commercial property, bonds and cash over 12 months following the August 2006 AFI questionnaire, the panellists are even more bullish on the prospects for equities this time around. All 15...

EXPERT VIEWS: Panellists' views on equity markets.
March 5, 2007... While there are a wide range of views on which global equity region is likely to perform best, five panellists expect Europe ex UK to provide the greatest returns over the next 12 months, and five choose global emerging markets over a...

EXPERT VIEWS: Panellists' views on bonds and commercial property.
March 5, 2007... Despite credit spreads tightening in recent years, panellists generally expect to be rewarded for taking risk in bond markets. The AFI survey suggests the riskier high-yield and emerging market bonds will fare best over the next 12 months,...

EXPERT VIEWS: AFI panellists' investment processes.
March 5, 2007... The 15 panellists were asked to gauge how important certain factors are when deciding which funds to recommend within their portfolio recommendations. Each panellist described whether a particular factor was "essential", "very important",...

ANALYSIS: Henderson bags bargains amid turmoil.
March 5, 2007... As a contrarian, Mileen Rash, manager of Henderson's UK Capital Growth fund, saw last week's market correction as an opportunity to purchase unloved stocks that others felt were too risky. Is it a bad time to be a contrarian? During a...

REVIEW: Tricky text can bemuse and enlighten.
March 5, 2007... Nobel Laureate William Sharpe's guide to how markets and investors function is a revealing text, but will be a challenging read for even the most sophisticated investment professional. William Sharpe's Investors and Markets is definitely...

FoFs: GHC High Income looks to property.
March 5, 2007... Goy Harris Cartwright's High Income fund of funds was the only portfolio to retain its name in a recent restructure. Manager Brian White now plans to increase its property exposure. Goy Harris Cartwright was quick to restructure its...

FOCUS: SGAM aims to build UK track record.
March 5, 2007... With a new head of UK equities, Hari Sandu, now in place, Societe Generale Asset Management will concentrate on promoting its British retail range over the next year. Frances Hughes reports. Societe Generale Asset Management UK has seen a...

Fund Manager's Diary: 31 January-6 February 2007.
March 5, 2007... Wednesday I always enjoy going to China and my latest research trip is no exception. Everything in Beijing's Capital Airport is gleaming and ready for the Olympics next year. I have visited Beijing and Shanghai several times to meet with...

COMMENT: Volatility points to global imbalances.
March 12, 2007... Last week's comment in Fund Strategy argued that the recent volatility in global financial markets should be seen as primarily a case of the jitters. It cannot be convincingly explained in terms of America's economic slowdown, China's...

F&C sticks with IMS for US equities.
March 12, 2007... The #2.5bn F&C Investment Trust will continue to outsource its American equities portfolio to Investment Management Selection, despite poor performance in 2006. In July 2005 the trust employed IMS to run the US equity portfolio -...

RCM wins mandate for Finsbury Technology Trust.
March 12, 2007... RCM, the global equity platform owned by Allianz Global Investors, has been appointed to manage the #60m Finsbury Technology Trust. The trust will be run from San Francisco by Walter Price and Huachen Chen. Simon White, head of investment...

SLI brings UK Equity Income Unconstrained fund to market.
March 12, 2007... Standard Life Investments has launched its UK Equity Income Unconstrained fund. Managed by Dominic Byrne and soft-launched on February 22, the fund aims to produce a high level of income, together with some capital growth, over the longer term....

IN BRIEF: Liontrust takes off trust charges.(Brief article)
March 12, 2007... Liontrust has removed the initial charge on two unit trusts - First Opportunities and Focus 350 - until June 30. First Opportunities is run by Anthony Cross and consists of 30-50 stocks, selected mainly from the FTSE Mid and Small Cap indices....

IN BRIEF: Seven Dials reopens fund.(Brief article)
March 12, 2007... Seven Dials has opened its European Property fund of funds to new investment. The fund raised E17m (#11.6m) in its opening period and is now open for new subscriptions on a quarterly basis. The cut-off date for the next dealing day is March 29....

Thames River confirms hiring of Potter and Burdett.
March 12, 2007... Thames River Capital has confirmed the appointments of Gary Potter and Robert Burdett. As reported in last week's Fund Strategy, the pair were responsible for 17 onshore funds of funds at Credit Suisse, worth more than #1bn. Charlie...

F&C to open Global Tactical fund to UK investors.
March 12, 2007... F&C is to make its Global Tactical Asset Allocation fund available to British investors, subject to regulatory approval. The portfolio, launched in January and run by F&C's strategy team, aims to generate alpha purely through asset...

IN BRIEF: Eurozone interest rate rises to 3.75%.(Brief article)
March 12, 2007... The European Central Bank has raised the eurozone interest rate by a quarter point to 3.75%. The rise is the first since December 2006. Jean- Claude Trichet, president of the ECB, says the decision was taken in response to upside risks to...

Societe Generale unveils energy Oeic.
March 12, 2007... Societe Generale Corporate & Investment Banking has launched the New Energy Protected fund. The UK Oeic is designed to give investors access to the World Alternative Energy (WAEX) index, while benefiting from 100% capital protection at...

Psigma to launch UK fund for Mott.
March 12, 2007... Psigma Asset Management will launch a UK equity income fund on April 5 for Bill Mott to manage. The launch will follow a three-week offer period, beginning next week, following FSA approval, which is believed to be imminent. The Psigma...

Henderson shifts weight from Korea to China.
March 12, 2007... The #270m Henderson TR Pacific investment trust, managed by Andrew Beal, almost halved its weighting in South Korea over 2006 and more than doubled its exposure to China. Launched in 1987, the trust invests in companies operating in the...

IN BRIEF: McCombe to head HSBC investment.(Brief article)
March 12, 2007... Mark McCombe will succeed Alain Dromer as head of group investment businesses at HSBC on March 31. McCombe, who joined HSBC in 1987, is chief executive of HSBC Private Bank, UK, Channel Islands and Luxembourg. He was previously deputy chief...

IN BRIEF: SGAM hires Europe manager.(Brief article)
March 12, 2007... Nerea Heras-Mendaza is to join Societe Generale Asset Management UK on April 2 as an Eastern European fund manager. She will work alongside Mark Krombas on SGAM's Eastern Europe portfolios. She will manage the Luxembourg-based SGAM Fund...

IN BRIEF: First State agrees to UN principles.(Brief article)
March 12, 2007... Colonial First State Global Asset Management has signed up to the UN Principles for Responsible Investment. UN PRI is a voluntary programme that encourages best practice in environmental, social and corporate governance issues. There are six...

End of yen carry trade is global threat.
March 12, 2007... The unwinding of the yen "carry trade" - where cheap Japanese loans are used to invest elsewhere - poses considerable risks to the global economy, according to Capital Economics. Julian Jessop, chief international economist at the...

Investors need to understand volatility, says SLI.
March 12, 2007... Investors need a greater understanding of the factors that cause "normal" or "major" corrections in financial markets, according to research by Standard Life Investments. Analysis by the firm shows that equities typically achieve their...

T Rowe Price opens two Euro equity funds.
March 12, 2007... T Rowe Price has launched two Luxembourg-listed European equity funds, managed by new arrival Niall Gallagher. The T Rowe Price Pan European Equity and European Ex-UK Equity funds, which were launched earlier this month, are expected to...

Investors await more developments at Credit Suisse.
March 12, 2007... The departure of Gary Potter and Robert Burdett from Credit Suisse to join Thames River Capital is the most high-profile event for some time in the British retail multi-manager sector. Thames River has yet to fully reveal its plans for...

TRENDS: Balanced portfolio best for drawdown.
March 12, 2007... Post A-day, sales of income drawdown plans have increased at the expense of conventional annuitisations. But the range of options available under drawdown means the results can vary. Income drawdown appears to be an increasingly popular...

STRATEGY: World tilts towards emerging markets.
March 12, 2007... With 25% of global GDP coming from emerging markets, the world economy's centre of gravity has shifted. Now a new frontier is opening up as older emerging markets enter the mainstream. Emerging markets are blessed with an abundance of...

Q&A: Aberdeen takes on emerging small caps.(Interview)
March 12, 2007... Joanne Irvine, head of emerging markets (ex Asia) at Aberdeen, answers questions from Frances Hughes. Q: When does the Aberdeen Global Emerging Markets Smaller Companies fund launch? A: The launch period is March 12 to March 23. The...

CAUTIOUS MANAGED SECTOR: Starters orders.
March 12, 2007... The race is on in the Cautious Managed sector as fund groups battle it out to offer the most comprehensive "all-weather" fund possible under Ucits III and Nurs legislation. Paul Farrow assesses the main competitors. The Cautious Managed...

CAUTIOUS MANAGED SECTOR: IFA views.
March 12, 2007... Philippa Gee: Torquil Clark I do feel there is a place for the multi-asset funds but only for a limited audience. I feel that they would fit well for the proportion of the with-profit investors who want the transparency and flexibility...

ANALYSIS: Eaglet flies on back of small-caps.
March 12, 2007... After a difficult few years, largely as a result of its high weighting in Aim-listed stocks, the Eaglet Investment Trust, managed by Peter Webb, is climbing back up the performance tables. The Eaglet has landed. Rather unsteadily, it has...

FoFs: Solus bets on "casino approach".
March 12, 2007... The Solus Multi Manager Growth fund uses what manager Michael Clarkson calls a "casino approach" to selecting funds for the portfolio, aiming to ensure the odds are always in its favour. Launched in January 2003, the #27.5m Solus Multi...

AFI: Correction looks to be temporary blip.(Correction notice)
March 12, 2007... The Adviser Fund Index panellists are sticking to their positive predictions for stockmarkets, with the recent volatility expected to pass and equities predicted to do well over the longer term. The Adviser Fund Indices reacted in a...

CHANNELS: Track record is key to Torquill Clark shortlist.
March 12, 2007... Philippa Gee, investments director at Torquill Clark, answers this week's questions from Adam Lewis. Q: Do you recommend multi-manager funds? If so, what is your take on the resignations of Gary Potter and Robert Burdett from Credit...

FOCUS: Focus on change buoys SLI returns.
March 12, 2007... Jacqueline Kerr, head of mutual funds at Standard Life Investments, highlights the group's ability to identify "triggers for change" as key to its solid performance. James Teasdale reports. The past few years have seen a lot of activity at...

Fund Manager's Diary: 1-7 March 2007.
March 12, 2007... Thursday Back to the grindstone after a short break to find a recently acquired overweight yen position is performing well. This contrarian position was adopted on the basis of both fundamental and technical factors. However, any...

COMMENT: House price fetish obscures reality.
March 19, 2007... Dictionary.com defines a fetish as: "an object regarded with awe as being the embodiment or habitation of a potent spirit or as having magical potency". This would also be an accurate description of the way investors often see the American...

Credit Suisse hit by further departures.
March 19, 2007... In the same week that Credit Suisse announced it was hiring two senior managers for its UK multi-manager platform, three members of its existing team resigned. Credit Suisse has recruited Graham Duce and Rob Bowie from its private bank, but...

F&C looks to convert Ucits III funds to Nurs.
March 19, 2007... F&C Asset Management is looking at the possibility of switching its existing range of four funds of funds to non-Ucits retail scheme status at the end of this year. At present the funds, which include Multi- Manager Distribution, are all...

IN BRIEF: REO board and Aberdeen settle.(Brief article)
March 19, 2007... The board of directors of Real Estate Opportunities has reached a final settlement with Aberdeen Asset Management. The settlement relates to claims that Aberdeen broke its investment management agreement on the split-capital investment...

IN BRIEF: Skandia adds Fidelity funds.(Brief article)
March 19, 2007... Skandia has added three Fidelity funds to its life, pension and supermarket wrappers. The addition of MultiManager Distribution, MultiManager Income and Multi-Asset Strategic takes the total number of Fidelity funds available through Skandia to...

IN BRIEF: L&G plans Irish life company.(Brief article)
March 19, 2007... Legal & General is launching, subject to regulatory approval, an international life company later this year. Based in Ireland, Legal & General International (Ireland) will initially sell an international pooled portfolio bond targeted at...

IN BRIEF: Alliance offers online dealing.(Brief article)
March 19, 2007... Alliance Trust has launched an online dealing service, enabling investors to buy and sell shares, and to trade across their investment and pension plans, in a single instruction. It has piloted the real- time service among 5,000 Alliance Trust...

IN BRIEF: First State adds to equities team.(Brief article)
March 19, 2007... Marcus Lun is joining First State Investments' global equities team as global resources specialist this week. Lun will be responsible for analysing global resources stocks - energy and basic materials. He will report directly to Habib...

HSBC amends American Growth Oeic.
March 19, 2007... HSBC Investments has changed the structure of its #110m American Growth Oeic. The fund, which was outsourced to Davis Advisors in 2005, is now able to invest in non-American stocks. The changes, completed in January, bring the portfolio...

Thames River appoints investment director.
March 19, 2007... Thames River Capital has confirmed the appointment of Michael Warren as investment director. He joins the group from HSBC Investments, where he was managing director, sales and marketing. Warren will work closely with the investment teams...

Threadneedle China Opportunities fund to launch soon.
March 19, 2007... Threadneedle has announced that its China Opportunities fund will be launched next week, following approval by the Financial Services Authority. As reported in Fund Strategy on February 19, the portfolio will be run by Gigi Chan,...

IN BRIEF: M&G offers funds via Skandia.(Brief article)
March 19, 2007... M&G's American, Global Leaders and Optimal Income funds are now available through Skandia's life, pension and fund supermarket ranges. The additions take the total number of M&G funds available via Skandia to 18. Optimal Income was launched...

Invesco raises #28m with shares on high yield fund.
March 19, 2007... Invesco Leveraged High Yield Fund has raised more than #28m in a new shares offer. The company offered for subscription 27.5 million new ordinary shares to new and existing shareholders. It received applications for subscription to the...

Markets tumble as US subprime mortgage firms falter.
March 19, 2007... Problems in America's subprime mortgage market hit the stockmarket last week just as it seemed that calm could be returning to equities. Markets started to tumble after New Century Financial, a struggling subprime lender, had its listing...

IN BRIEF: Morley hires head for China strategy.(Brief article)
March 19, 2007... Morley has appointed Walter Lin as head of strategic development, China. Lin, who will be based initially in Beijing, joined Morley in February. He will be responsible for establishing an asset management presence for Morley in China through a...

IN BRIEF: UBS hires head of UK broker desk.(Brief article)
March 19, 2007... Christian Elliott has joined UBS Global Asset Management as head of the UK broker desk. He will run a team that services intermediary clients. Elliott joins UBS from Invesco Perpetual, where he was previously a broker liaison executive....

IN BRIEF: Moody's recruits European leader.(Brief article)
March 19, 2007... Moody's Investors Service has appointed Odi Lahav as assistant vice- president and European team leader, alternative investments group. Based in London, Lahav will manage the hedge fund ratings business in the EMEA region. He will report to...

IN BRIEF: Reita to embark on roadshows.(Brief article)
March 19, 2007... Reita, a campaign to raise awareness of real estate investment trusts, is running a series of 21 regional roadshows, starting in April. Speakers include Patrick Sumner, chairman of the Reits and Quoted Property Group, and head of global...

SLI Select Property uses derivatives.
March 19, 2007... Standard Life Investments has used derivatives in its Select Property portfolio for the first time. Andrew Jackson, manager of the #1.2bn fund, says put options on global equities, bought mid-February, protected the portfolio from much of the...