Fund Strategy articles from May 2005

Fund Strategy archives from May 2005

Superficial hordes miss the big picture.(Editorial)
May 2, 2005... The single largest barrier in the way of a proper understanding of financial issues is a lack of imagination. Rocket scientists have developed phenomenally sophisticated models to help understand the day- to-day workings of the financial...

Investec links bonuses with returns.(Investec Asset Management )
May 2, 2005... Investec Asset Management has changed the way it remunerates its fund managers to align their interests more closely with investors. Across all of its investment desks the group has set performance targets for its fund managers, which will...

Henderson looks to the future in remit change.(Brief Article)
May 2, 2005... Shareholders in the Henderson Ethical fund have voted to change the fund's investment criteria after an extraordinary general meeting held last week. After months of consultation and research, 90% of shareholders voted in favour of...

Marconi slump hits Invesco for #88m.
May 2, 2005... The one-day 38.2% fall in Marconi's share price last week had the effect of wiping out about #88m of assets under management in funds run by Invesco Perpetual. Invesco Perpetual owner Amvescap is Marconi's largest shareholder, owning 23% of...

End-of-year Isa upturn fails to lift total sales.(Brief Article)
May 2, 2005... Net Isa sales in the tax year just ended were at only half the level of the previous year, according to the Investment Management Association. For the 2004/05 tax year net Isa sales were #1.7bn, compared with #3.6bn achieved the previous...

In Brief: Swip opens up Liquidity fund.(Scottish Widows Investment Partnership )(Brief Article)
May 2, 2005... The #9bn Scottish Widows Investment Partnership Global Liquidity Oeic has adopted the new Ucits III requirements. The move will allow managers of other Ucits III-registered funds to invest their cash surpluses into the Sterling subfund of the...

In Brief: Charges up on three at Barings.(Baring Asset Management )(Brief Article)
May 2, 2005... Baring Asset Management is raising the annual management charges on its Japan Growth, Korea and Eastern trusts from 1.25% to 1.5%. Current investors in the funds have been notified of the changes, taking effect in August. Credit Suisse Asset...

In Brief: Fidelity cuts Euro Bond fund TER.(Brief Article)
May 2, 2005... Fidelity Investments has reduced the total expense ratio of its Euro Bond from 1.15% to 0.95%. The group says it has achieved the cut by reducing a certain amount of its fees, although the annual fee will remain the same at 0.75%. The S&P...

In Brief: CEO Ainsworth to leave Omam.(John Ainsworth appointed Old Mutual Asset Managers)(Brief Article)
May 2, 2005... John Ainsworth, chief executive at Old Mutual Asset Managers, has decided to leave after four-and-a-half years at the company. Peter Baxter, who joined Omam with Ainsworth as chief investment officer in September 2000, will become CEO in...

In Brief: Insight appoints Eaton to equities.(Stuart Eaton appointed at Insight Investment Management Ltd.)(Brief Article)
May 2, 2005... Insight Investment has appointed Stuart Eaton as a UK equity fund manager. He takes over five HBOS institutional funds following Jill Thompson's recent departure. Eaton will report to head of UK equities John Bearman. He was previously...

In Brief: SEI opens up fund access.(SEI Investments)(Brief Article)
May 2, 2005... SEI Investments has created a new share class that allows retail investors access to funds previously only available to its institutional clients. The new structure will offer investment in equities in South-east Asia and emerging markets as...

Pacific CIO Kheong quits Schroders.(Leong Wah Kheong)
May 2, 2005... Leong Wah Kheong, chief investment officer for Pacific ex Japan at Schroders and manager of the #163m Schroder Pacific fund, has left the group. Kheong (pictured), who joined Schroders 20 years ago, has left to run private client money. ...

FSA to review its reduction in yield regulations.(Financial Services Authority)(Brief Article)
May 2, 2005... Despite industry concern, the Financial Services Authority will keep the reduction in yield figure in its rules on Simplified Prospectuses for Ucits funds marketed in Britain. However, it has decided to drop the requirement for UK funds...

First State gives Asia and emerging markets team a boutique twist.(First State Investments)
May 2, 2005... First State Investments has changed the structure of its Asia Pacific and emerging markets team, giving the group an arrangement similar to that of a boutique. "The new structure has had the effect of giving the Asia Pacific team strong...

Anglo & Overseas set to close trust.(Anglo and Overseas Trust)
May 2, 2005... The directors of the #312m Anglo & Overseas investment trust have outlined plans to voluntarily wind up the trust and reconstruct it under a new name. If the proposal is approved Anglo & Overseas, currently managed by John Murray at DWS...

Investec hopes to create offshore super-fund.(Investec Asset Management)(Brief Article)
May 2, 2005... Investec Asset Management plans to merge its two Guernsey-based fund ranges, which will give the group a $3.2bn (#1.7bn) core offshore offering. The plan is aimed at removing duplication within the range and is still subject to...

F&C trusts awaiting court approval for merger to go ahead.(F&C Capital and Income investment trust)
May 2, 2005... The #99m F&C Capital and Income investment trust and the #65m F&C Income Growth investment trust are set to merge this week, subject to court approval. According to the group, the merger has been approved by the majority of both sets of...

Felton slams 'instant gratification'.(Mike Felton)
May 2, 2005... Mike Felton says investors are preoccupied with companies that return cash and are ignoring those that are geared to growth. Felton (pictured), who manages M&G's #144m Capital fund, says company valuations have compressed as a result of...

Opportunity and threat from Asia's powerhouse.(Brief Article)
May 2, 2005... China has reached an important stage in its drive to become a modern developed society, according to Raymond Chan, Hong Kong-based chief investment officer of Allianz Global Investors Asia Pacific. "Structurally in China we are seeing...

Mixed feelings greet US earnings upgrades.
May 2, 2005... Better-than-expected earnings growth results for S&P 500 companies were welcomed by a number of America fund managers last week. Reuters estimates year-on-year average earnings growth of 11.3% from S&P 500 companies for the first quarter...

In Brief: Wider roles for SGAM duo.(appointment of Mikkel Bates and Richard Phillips by SG Asset Management )(Brief Article)
May 2, 2005... SG Asset Management has appointed Mikkel Bates as head of marketing and Richard Phillips as head of sales for the group's retail and institutional businesses. Bates and Phillips both joined SGAM in 1997 as joint heads of the retail business....

In Brief: Booty joins Pictet healthcare team.(Marc Booty)(Brief Article)
May 2, 2005... Pictet Asset Management has hired Marc Booty to head stock research in the global healthcare sector. Booty was previously head of pharmaceuticals and healthcare at Commerzbank Securities. He has also worked for ABN Amro as head of pan-European...

In Brief: Schroders beefs up emerging desk.(appoints Liesbeth Rubinstein)(Brief Article)
May 2, 2005... Schroders has appointed Liesbeth Rubinstein as head of Europe, Mid-East and Africa on its global emerging markets equities team. Rubinstein was previously at JP Morgan Fleming. Claudio Brocado has also joined Schroders as the new head of...

News Analysis: Are offshore distribution changes broadening horizons?
May 2, 2005... It has been over a year since the announcement that the subfunds and individual share classes of offshore funds would be able to gain distributor status in Britain. Since the changes were approved last summer, numerous investment...

Trends: The struggle for gains marches on.(mutual funds)
May 2, 2005... Funds fell on average in March, with only Japan providing relief on the equity front. In the Global Growth sector, however, complete avoidance of Japan and Asia was the key to success. The last seven months of positive gains for unit...

Strategy: Headwinds as world economy slows.
May 2, 2005... With the high oil price now looking like a structural shift rather than a short-term spike, and China moving its focus towards exports, the global economic engine seems to be decelerating. The global economy retains a fair amount of...

Q&A: Making a clear case for risk and return.(Interview)
May 2, 2005... Marc Gordon, managing director of Close Fund Management, is questioned by Helen Burnett. Q: What was the rationale behind your recent launch of the Close Enhanced Commodities fund? A: There are very few investment vehicles that allow...

Sink or swim?
May 2, 2005... The key debate in the financial world at the moment is regarding the state of the US currency. If the dollar falls substantially it could signal a redrawing of the economic world map. Daniel Ben-Ami investigates the likelihood of such an...

Channels: Independent advice from a big business.(Interview)
May 2, 2005... Richard Pearson, group operations director of The Money Portal, answers questions from Sarah Godfrey. Q: Has becoming part of The Money Portal changed the way that Bates operates? A: Although I joined after the acquisition of Bates, I...

Analysis: Meeting the challenge of success.(Dan Nickols)(Old Mutual Asset Managers (UK) Ltd.)
May 2, 2005... When Ashton Bradbury moved up to mid-cap, many feared for his former fund's performance. But Dan Nickols has proved there is more than one small-cap supremo at Old Mutual. When a fund changes its manager, it tends to be for one of two...

Focus: New lease of life for the high street.(Abbey National )
May 2, 2005... Abbey's investment fund record has left a lot to be desired in recent years, prompting the group to close down its in-house fund management. Sarah Godfrey reports on its progress. Abbey - or Abbey National as it used to be known - is one...

FoFs: A balanced approach to investment.(Premier Asset Management)(David Hambidge)
May 2, 2005... At first glance the Premier Selector Balanced fund's management style might seem almost dormant. But, argues manager David Hambidge, there are other ways of enhancing returns. Comparing the funds held by David Hambidge's Premier Selector...

Fund of funds performance data.
May 2, 2005... John Chatfeild-Roberts' #252m Jupiter Merlin Income Portfolio remains in pole position over three years, posting a 20.3% return over the period. The fund targets a high and rising level of income and currently invests predominantly in equity...

Anti-ageing debate is feeble minded.
May 9, 2005... Contemporary discussion of long-term investment trends grossly exaggerates the importance of demographic factors while substantially underestimating the significance of broader social trends. Ageing populations are wrongly assumed to be a...

Foster takes on Artemis bond fund.(James Foster)(Brief Article)
May 9, 2005... James Foster's new Artemis bond fund, to be launched next month subject to regulatory approval, will invest in government, investment grade and high-yield bonds. The Artemis Strategic Bond fund, the group's first fixed income offering, will...

Rensburg gets go-ahead to buy Carr Sheppards.
May 9, 2005... After receiving approval from Rensburg shareholders and the Financial Services Authority, Rensburg's acquisition of Carr Sheppards Crosthwaite from Investec has now been finalised. The group says it will adopt Rensburg Sheppards as its...

Simon Clinch to join F&C US equities arm.(F&C Asset Management)
May 9, 2005... Simon Clinch is joining F&C Asset Management as US equities director. Clinch was formerly head of North American equities at Aberdeen Asset Management. He will work on both retail and institutional mandates and report to Rupert Della-Porta,...

IN BRIEF: Premier chief exec quits for 'new challenges'.(Jonathan Fry resigned from Premier Asset Management )(Brief Article)
May 9, 2005... Jonathan Fry, joint chief executive of Premier Asset Management, has left the company. Having spent more than 20 years at the group, Fry's reason for departure was announced as being "in order to seek new challenges in his career". It is...

IN BRIEF: Gartmore waives Fledgling charge.(initial charges abonded )(Brief Article)
May 9, 2005... Gartmore is waiving the initial charge on the #94m Gartmore Fledgling trust until June 30. The investment trust is managed by Gervais Williams and Andrew Russell. The 3% charge will now be waived on all lump sum investments made through the...

IN BRIEF: Old Mutual adds second hedge fund to portfolio.(Old Mutual Asset Managers launched equity hedge fund)(Brief Article)
May 9, 2005... Old Mutual Asset Managers is launching a new UK equity hedge fund, which will be run by manager Luke Kerr and the Omam mid and small-cap team. The fund is due to be launched in July and is the group's second hedge fund. The fund will be...

IN BRIEF: Robson Rhodes picks Schroders.(RSM Robson Rhodes selects fund of funds products )(Brief Article)
May 9, 2005... Accountancy group RSM Robson Rhodes has chosen three Schroders fund of funds products as part of its preferred multi-manager offering. Advisers from the group will now recommend the Schroder S&P Strategic Balanced, Schroder S&P High Alpha and...

IN BRIEF: DWS Japan fund wins AAA rating.(Brief Article)
May 9, 2005... Standard & Poor's has awarded James Pulsford's #69.5m DWS Japan Growth fund an AAA rating. The fund, launched in 1995, also has an AAA rating from Forsyth/OBSR. With the Topix index as its benchmark, the portfolio is invested primarily in...

IN BRIEF: FTSE Group to add capped indices.
May 9, 2005... The FTSE Group is creating capped versions of the FTSE 100 and FTSE All- Share indices in response to demand from the market for a less concentrated option. The FTSE CAP 100 5% index and FTSE CAP All-Share 5% index will be added to the UK...

Gartmore joint global CIO Price set for new role at Merrill Lynch.(chief investment officer)(Quintin Price)(Merrill Lynch Investment Managers)(Brief Article)
May 9, 2005... Quintin Price, joint global chief investment officer of equities at Gartmore, has decided to leave the group to take on a similar role at Merrill Lynch Investment Managers. Price (pictured) will join MLIM as CIO for the Europe, Middle East,...

IN BRIEF: Free dealing for Witan investors.(Witan investment trust)(Brief Article)
May 9, 2005... The #1.4bn Witan investment trust is offering investors free sharedealing on all new lump sum investments made into its Witan Share Plan until May 31. The group is also currently offering free sharedealing on all Isa investments as well as...

IN BRIEF: Investec bond funds upgraded.(Investec Sterling Bond fund of Anna Lees-Jones and Harsha Patel )(Brief Article)
May 9, 2005... The #51m Investec Sterling Bond fund, managed by Anna Lees-Jones and Harsha Patel, has been awarded an A rating by Forsyth-OBSR. Standard & Poor's has also awarded the Investec Global Bond an A rating. This fund is co-managed by Tim O'Dell...

Auto downgrade snaps bond inertia.(General Motors and Ford Motor)
May 9, 2005... Standard & Poor's decision to downgrade both General Motors and Ford Motor's credit ratings to junk status last week was seen as an aggressive move by corporate bond fund managers. GM's credit rating fell to BB and Ford's was lowered to...

Currington fills gap in CSAM Europe team.(Credit Suisse Asset Management Inc. appoints Jeff Currington)(Brief Article)
May 9, 2005... Credit Suisse Asset Management has appointed Jeff Currington as head of European equities. He was poached from HSBC Asset Management where he was head of its European equities desk. His appointment follows the departure of Norbert Beiner,...

New EU member states prove their pulling potential.(European Union)
May 9, 2005... May 1 marked the first anniversary of the European Union's expansion to 25 member states. Recent strong performance from stockmarkets in most of the accession countries has led to significant interest from investors. Those investing in...

Trends: What makes a successful platform?
May 9, 2005... Despite numerous launches, take-up of wraps in Britain has been relatively low. Ian Thomas looks at how platforms can attract the advisers and maximise their mainstream potential. There have been several wraps launched in Britain over the...

Trends: Wrap revolution means ifa evolution.
May 9, 2005... In a post-depolarisation world, financial intermediaries will have to adapt in order to survive and stay independent, and part of that change involves embracing the wrap concept. Trying to define a wrap service is difficult but describing...

Strategy: UK firms need to strike a balance.
May 9, 2005... After the 'boom and bust' of the late 1990s, rebuilding profitability took priority. Now cashflow surplus is equal to the deficit at the height of the dotcom bubble. Is the time for caution over? Despite the problems at Rover Group, UK...

Q&A: Three keys that unlock investor behaviour.(Interview)
May 9, 2005... Silvio Tarca, manager of the JPMF US fund, answers questions from Helen Burnett. Q: How would you describe your investment process? A: The investment strategy for the US fund is based on behavioural finance principles. Behavioural...

The geriatric time bomb?
May 9, 2005... Most economists would agree that falling fertility rates and ageing populations will lead to a slowdown in economic growth over the next 50 years. The solution seems obvious. But, asks Simon Hildrey, how serious is the threat? Until their...

Demographics and financial markets.(Brief Article)
May 9, 2005... A common view of economists is that an inflow of private saving from middle-aged baby boomers has been driving up the stockmarket. The economists warn that demographic forces will conspire against the stockmarket after 2010 when the oldest of...

View of fund managers and fund strategists.
May 9, 2005... Mark Mobius, manager of the Templeton Emerging Markets fund, says there is a correlation between population growth and economic expansion. But it is not possible to make money simply by investing where there is population growth, as there...

The effects of demographics on economic growth.
May 9, 2005... Economists disagree over the impact of ageing populations on economic growth. Some argue that there is little reason to be concerned. These economists argue that ageing in developed countries has been under way for many years and has...

Channels: Building on a solid platform for growth.(interview of Stuart Dyer from Cofunds)(Interview)
May 9, 2005... Stuart Dyer, chief executive of Cofunds, answers questions from Adam Lewis. Q: It seems there has been a big jump in growth in the use of Cofunds over the past two years. Why do think intermediaries are using these platforms more and...

Analysis: Fat chance for healthcare funds.
May 9, 2005... While an 'epidemic' of obesity may be bad for the health of individuals, it creates opportunities for healthcare companies, and by extension for funds like Threadneedle Global Healthcare. A disturbing report last week revealed that one...

Focus: All grown up with a bright future.
May 9, 2005... As Jupiter celebrates its 20th anniversary this year, Sarah Godfrey looks at the successes - or otherwise - of the last two decades and asks what the future holds for the fund manager. This year Jupiter Asset Management celebrates its 20th...

FoFs: Making the most of your constraints.(fund of funds)
May 9, 2005... Richard Skelt, head of Fidelity's portfolio strategies group, believes that offering a diverse fund range and varied managerial styles helps keep its fettered funds of funds ahead of the game. One of the risks of running a fettered fund...

Fund of funds performance data.(Performance of Investment funds)
May 9, 2005... The top three positions over one and three years for the funds of funds in the Investment Management Association's Global Growth sector remain unchanged from our last update (April 4). Managed by David Marchant, Halifax's #260m Fund of...

Fund Manager's Diary: 18-25 April 2005.(Calendar)
May 9, 2005... Monday The day I have been dreading for months arrives. Wearing a freshly ironed shirt, polished shoes and a clean handkerchief, I present myself at the lift door with an undue level of trepidation. The first day at school after nine months of...

COMMENT: Wrap is not a free lunch for investors.(online securities trading fees analysis)
May 16, 2005... As Stephanie Spicer points out in this week's cover story on page 20, it has long been an article of faith in investment circles that investors should not put all their eggs in one basket. However, she argues, the advent of wrap platforms...

Argonaut Capital unveils first fund.
May 16, 2005... Britannic's new European high-alpha boutique company is not ruling out the possibility of more fund launches following the launch of its first retail offering last week. Although Argonaut Capital will not officially be launched until...

Husselbee to part company with Henderson.(John Husselbee resigns)(appointed Bill McQuaker as director of Henderson Global Investors)(Brief Article)
May 16, 2005... John Husselbee, director of multi-manager investment at Henderson Global Investors, has decided to leave the company after nine years. Bill McQuaker will be taking over from Husselbee and has already joined the group from Credit Suisse...

MLIM UK Alpha fund opens for business.(Merrill Lynch Investment Managers)
May 16, 2005... Merrill Lynch Investment Managers' UK Absolute Alpha fund opened its doors to retail investors last week. Managed by Mark Lyttleton, the fund launched on April 29 and is now fully invested using #5m of seed money from Merrill Lynch. The...

IN BRIEF: Old Mutual in Skandia talks.(Brief Article)
May 16, 2005... South African financial services company Old Mutual has confirmed it is in talks with Skandia regarding an offer to purchase the Swedish insurance group. Skandia employs almost 6,000 staff in 20 countries. Skandia UK offers pension, insurance...

IN BRIEF: JOHCM caps second fund.(JO Hambro Capital Management)(Brief Article)
May 16, 2005... JO Hambro Capital Management has closed its Japan fund as it has reached the pre-agreed level of #200m in assets under management. The Dublin-domiciled Oeic fund, managed by Scott McGlashan, was launched in May 2004 and is the second JOHCM fund...

IN BRIEF: Murray VCT4 agrees contract.(Brief Article)
May 16, 2005... The board of Murray VCT4 has agreed a new contract with Murray Johnstone. As reported in Fund Strategy (April 4) the board reneged on its decision to appoint Close Brothers as investment managers and has since withdrawn its notice of...

IN BRIEF: Fidelity extends bond fund offer.(Brief Article)
May 16, 2005... Fidelity has extended the launch offer period for investors to transfer Pep or Isa investments into its new Sterling Bond fund. Investors will now pay a reduced initial charge of 3% on transfers until July 29. For all other investments, the...

IN BRIEF: Invesco trust votes to change.(Brief Article)
May 16, 2005... The Invesco Perpetual European investment trust is adopting a new mandate following a review by the board on European investment conditions. The trust will change its focus to an absolute return approach and will invest in European (ex UK)...

IN BRIEF: Hickey joins F&C Pacific desk.(appointed Adrian Hickey as Fund Manager)(F&C Asset Management)(Brief Article)
May 16, 2005... Adrian Hickey is joining F&C Asset Management's Japanese equity team based in London. Hickey most recently worked for Shell Pensions Management Services and prior to this was head of Japanese equities at Edinburgh Fund Managers. He reports...

Pigit failure could end hostile bids.(Perpetual Income and Growth failed attempt to acquire Securities Trust of Scotland)
May 16, 2005... Analysts and fund managers say that attempted hostile takeovers in the investment trust sector are less likely following the failure of Perpetual Income and Growth (Pigit) to gain sufficient support to acquire Securities Trust of Scotland. ...

Neptune moves Japan manager to plug Euro gap.(Brief Article)
May 16, 2005... Neptune has announced that the manager of its Japan Opportunities fund, Rob Burnett, has taken over as manager of the group's #23.1m European Opportunities fund. Burnett took over last week from the former manager of the fund, Barry...

Artemis bond fund will focus on capital too.(Artemis UK to launch bond fund)
May 16, 2005... James Foster, manager of the new Artemis Strategic Bond fund, has criticised funds that take charges from capital instead of income in a bid to boost yield. "Bonds are investments that start at par and end at par," he argues, adding that if...

IN BRIEF: Premier moves listing to Aim.(Premier Asset Management)(Brief Article)
May 16, 2005... Premier Asset Management has moved its stockmarket listing to the Alternative Investment Market of the London Stock Exchange. Formerly on the LSE's Official List, Premier has changed its listing to allow the group to pursue its growth...

IN BRIEF: HSBC alumnus unveils boutique.(Tri Investments)(Hongkong and Shanghai Banking Corporation)(Brief Article)
May 16, 2005... Christopher Finch, former head of pensions product development at HSBC Asset Management, has set up his own specialist boutique investment business, Tri Investments. The boutique will offer both retail and institutional products to...

IN BRIEF: Emerging fund from Mellon.(Mellon Global Investments)(Brief Article)
May 16, 2005... Mellon Global Investments has launched the Mellon Emerging Markets Debt Portfolio as part of its Mellon Global Funds umbrella. The subfund is Dublin domiciled and managed by Standish Mellon Asset Management, which also runs two other bond...

Challenging period for UK small-caps.
May 16, 2005... Framlington UK Smaller Companies fund manager Roger Whiteoak says British small-caps are going through a volatile and challenging period, but is confident of a market rally in September. Whiteoak has made a number of strategic changes to...

Wilmont takes on bond fund as Stanley quits Axa.(Axa Global High Income fund)(appointed Andrew Wilmont as lead manager)(Brief Article)
May 16, 2005... Stuart Stanley, manager of the #30m Axa Global High Income fund, has left the group to join Invesco Fixed Income. As a result Axa has appointed Andrew Wilmont as lead manager of the bond fund. Unlike Stanley, who was based in Paris,...

BNP Paribas makes 60 funds available in UK.(BNP Paribas Asset Management)
May 16, 2005... BNP Paribas Asset Management has received UK distributor status for 60 of its subfunds, making them available to British retail investors for the first time. The newly registered range includes nearly all of the subfunds in the group's...

IN BRIEF: Kaloo to join global team.(Brief Article)
May 16, 2005... Aberdeen Asset Managers' Devan Kaloo has been appointed head of global emerging market equities. Kaloo currently works in Aberdeen's Singapore office as a senior portfolio manager and will move to join the group's global emerging markets...

IN BRIEF: Insight appoints Toby Hayes.(appointed Toby Hayes as manager)(Brief Article)
May 16, 2005... Insight Investment has appointed Toby Hayes to its multi-manager team. Hayes previously worked at Banco Comercial Portugues as head of fixed income strategy. Prior to that he worked alongside four members of the current Insight multi-manager...