Fund Strategy articles from May 2008

Fund Strategy archives from May 2008

COMMENT: Only believe? If only that were enough.
May 5, 2008... Confidence is generally a positive quality but its importance should not be over-estimated. Someone might feel supremely confident that they can fly but if they jump off a tall building they are unlikely to be able to resist the force of...

Commodities fund breaks new ground.
May 5, 2008... Investec has launched the first total return commodities fund aimed at the British retail market. The Investec Enhanced Natural Resources fund, which will have a minimum investment of only #1,000, will invest in agriculture, energy, metals and...

New Star reveals Indian Equity fund details.
May 5, 2008... Tata Asset Management will manage the New Star Indian Equity fund with a focus on growth at a reasonable price (Garp). The fund, which is subject to regulatory approval and to be launched on June 9, will invest in 40-45 stocks and will be...

Stellar in Baltic link-up for property offering.
May 5, 2008... Stellar Asset Management has launched its first property fund, the Stellar Baltic States fund, and is set to roll out more. The funds, joint ventures targeting high net worth investors, will mainly invest in eastern Europe. They will aim for...

IN BRIEF: Barings goes for growth in China.(Brief article)
May 5, 2008... Barings launched the onshore open-ended Baring China Growth fund last week. The fund may invest in small, medium and large listed companies in any sector and geographical region that has growth and development potential. It is managed by...

IN BRIEF: Jupiter appoints new joint MD.(Brief article)
May 5, 2008... Jupiter has appointed Paula Moore as joint managing director alongside Gordon Davidson. Before joining Jupiter in 1997 Moore worked at Fuji Investment Management Company and also spent six years at Personal Financial Management. She takes...

CORRECTION: Fund Strategy - 28.04.08.(Correction notice)
May 5, 2008... The second and third graphs on page 26 of last week's Fund Strategy cover story were incorrect. Four Adviser Fund Index panellists expect Japan to be the worst-performing equity region over 12 months, followed by America (three), Europe...

IMA launches absolute return sector.
May 5, 2008... The Investment Management Association (IMA) has introduced an Absolute Return sector. The peer group was launched to cater for the growing popularity and number of absolute return themed products available to British investors. The new...

Bradbury to be Omam's first head of equities.
May 5, 2008... Ashton Bradbury is to step down as manager of Old Mutual Asset Management's (Omam) UK Select Mid Cap fund to take up the newly created role of head of equities. Omam announced that he will officially give up management of the fund at the...

Artemis and Marathon given Witan mandates.
May 5, 2008... The board of the #1.2 billion Witan investment trust has awarded #75m active British equity mandates to Artemis and Marathon Asset Management. The trust has also added a #30m European portfolio for Varenne Capital Managers by reducing its cash...

IN BRIEF: Lehman executive given new role.(Brief article)
May 5, 2008... Lehman Brothers has appointed Perry Hoffmeister as head of investment management for Europe and the Middle East. He joined the company in 1988 in its media investment banking group in New York. In 2000 he was named co-global head of the...

F&C's multi-manager head quits for new firm.
May 5, 2008... Richard Philbin, co-manager of F&C's multi-manager funds, has resigned from F&C to join a new independent multi-manager firm supported by Axa. Philbin joined F&C in 2001 to head its multi-manager team and worked on the development of the...

Bank report prompts mixed reaction.
May 5, 2008... The Bank of England's half-yearly Financial Stability Report met with a mixed response last week. While some commentators focused on the Bank's upbeat assessment of the credit crunch, others claimed it was overly- optimistic. The report...

Invesco targets 6% with Europe portfolio.
May 5, 2008... Invesco Perpetual has launched a European High Income fund with a target yield of 6%. The portfolio, which combines equities and bonds, is run by Paul Causer, Paul Read and Katharina Hoyland. European High Income was evenly split between...

IN BRIEF: BlackRock sheds "Merrill Lynch".(Brief article)
May 5, 2008... BlackRock Merrill Lynch Investment Managers has changed its name to BlackRock. The international fund range, Merrill Lynch International Investment Funds, is renamed BlackRock Global Funds (BGF). BlackRock has appointed Candida Hall as director...

IN BRIEF: Fed cuts US rates by quarter point.(Brief article)
May 5, 2008... America's Federal Reserve cut interest rates by a quarter point last week during a meeting of the Federal Open Market Committee. The widely anticipated move brings the country's benchmark interest rate to 2%, down from 5.25% last September....

L&G rolls out its first three multi-manager portfolios.
May 5, 2008... by Frances Hughes L&G has launched its first three multi-manager funds. As reported in Fund Strategy (March 24), the L&G Multi-Manager Income and MM Growth funds are run on behalf of Bradford & Bingley, while it also runs MM Balanced....

Indian central bank acts to safeguard stellar growth.
May 5, 2008... The greatest challenge facing India is maintaining a strong economic growth rate. Despite all the talk of India's rise as an economic power its population of 1.1 billion people still lives on an average annual income of only $2,700 (#1,350)...

STRATEGY: Unusual remedies will help recovery.
May 5, 2008... Investors can improve the health of their portfolios with some unconventional remedies, such as smaller oil exploration and production companies - but stocks should be chosen with care. Despite heavy write-downs from banks, shrinking...

TRENDS: Waver belies promising prospects.
May 5, 2008... UK Equity Income funds have struggled because of their weighting towards banks and retail - both hit by the financial crisis. But the sector looks as though it could be regaining ground. The Investment Management Association's (IMA) UK...

Q&A: L&G duo concentrate on performance of trio.(Interview)
May 5, 2008... Tim Gardner, co-manager of the three L&G multi-manager funds, talks to Frances Hughes. Q. When were the L&G Multi-Manager Income, Growth and Balanced Managed funds launched and what experience do you and co-manager Alan Thein have of...

THROUGH THE FLOOR: Falling masonry.
May 5, 2008... House prices fall in rich countries and prompt low consumer confidence, while inflation causes rising house prices to slow in Asia. Sunil Jagtiani reports from Hong Kong on how the shaky underpinning will affect global economic growth. ...

THROUGH THE FLOOR: IMF on house prices.
May 5, 2008... Homeowners have begun to wonder how far house prices will fall now that estate capital values have begun to cool in countries such as America, Britain and Spain. The International Monetary Fund (IMF) analysed the global housing market in the...

THROUGH THE FLOOR: House price growth in different countries.
May 5, 2008... The picture for house prices in many rich nations in the wake of the global credit crunch appears to be gloomy, but that is less so in other parts of the world, according to Knight Frank, an international property consultancy firm. The...

ANALYSIS: Potash encourages healthy growth.
May 5, 2008... Chris Metcalfe, manager of Newton Income, says the fund outperformed others in its sector with a zero weighting in British banks and a preference for agriculture and telecoms. There is a new phrase coined at Newton to describe the mega...

CHANNELS: Nucleus offers control and clarity to top IFAs.
May 5, 2008... David Ferguson, the chief executive of Nucleus Financial, answers questions from Simon Hildrey. Q. Nucleus Financial has signed up several IFA firms to the wrap platform. What is the size of Nucleus now? A. We are up to 48 IFA...

AFI: Hint of hope in land of the rising price.
May 5, 2008... Advisers continue to fight shy of Japan after a stream of gloomy economic data. But John Millar of Martin Currie sees positive signs in a probable interest rate rise and possible political change. Japanese equities remain out of favour with the...

Fund of funds performance data.
May 5, 2008... Over the past year the #243m Insight Investment Diversified Target Return fund has jumped up to the number-one spot within the Cautious Managed sector, according to Morningstar. Over one year to April 28, it was ranked first out of 36 funds...

FOCUS: High volatility sparks high fidelity.
May 5, 2008... The fund giant Fidelity International gained wide attention for its lacklustre showing in the 2006 bull market. Now turbulent global markets are helping it to recover its edge, writes Tomas Hirst. Fund groups, especially those of the size...

Fund Manager's Diary: 24-28 March 2008.
May 5, 2008... Monday The great Africa adventure begins in Nigeria, as I join five other investors on a JP Morgan investor trip. Most of us arrive in Abuja, Nigeria, at dawn, and get our first flavour of bureaucracy when it takes nearly an hour to get through...

COMMENT: Food supply fear is knee-jerk delusion.
May 12, 2008... The world seems to be suffering from the delusion that there is a chronic shortage of food. Rising consumption of food in the developing world and the growing use of biofuels is said to be bolstering demand and therefore raising prices. Many...

Legg Mason launches to raise profile.
May 12, 2008... Legg Mason is to add two absolute return strategy funds to its Dublin- domiciled cross-border range. Fund Strategy understands that the firm will launch a European fixed- income fund later this year, subject to regulatory approval. To be...

Gartmore confirms second manager's departure.
May 12, 2008... Gartmore has confirmed that Tim Callaghan, the former manager of the European Growth and European Focus funds, has left the group. Callaghan's departure follows that of Bambos Hambi, former head of multi-manager, after internal reviews led to...

Close connection with fund under threat.
May 12, 2008... Close Investments' association with the Close AllBlue Fund is under threat after the fund's board announced that it has served a protective notice to terminate the shareholder liaison agreement with Close. The Close AllBlue fund of hedge...

IN BRIEF: SLI opens fund to retail investors.(Brief article)
May 12, 2008... Standard Life Investments has opened its Global Absolute Return Strategies fund to retail investors. The fund has produced annualised returns of 9.8% since its launch in June 2006 and aims to outperform the London inter-bank offered rate...

IN BRIEF: Base rate remains unchanged.(Brief article)
May 12, 2008... The Bank of England left its base interest rate at 5% after a meeting of the Monetary Policy Committee. The Bank, which lowered rates by a quarter point last month, has cut rates gradually from a peak of 5.75% in 2007. The consensus view...

IN BRIEF: Foundation for training launched.(Brief article)
May 12, 2008... Fidelity Funds-Network has launched its Adviser Foundation. The aim of the scheme is to offer bespoke training and development for adviser firms, providing support for the recruitment and development of young advisers. The foundation gives...

Jupiter Strategic Bond fund gets go-ahead.
May 12, 2008... Jupiter has received Financial Services Authority approval for the launch of its Strategic Bond fund. The fund, which will be launched on June 7, has a target yield of 7% and offers investors the choice of switching between aggressive and...

Boutique seeks Ucits status for funds.(Company overview)
May 12, 2008... Sourcecap International, a boutique fund management firm established in 2006, hopes to gain Ucits status on one of its two funds. It is also seeking seed money for the launch of a third fund. James Rutherford, chief investment officer and...

New Credit Suisse portfolio widens opportunities.
May 12, 2008... Credit Suisse is launching a multi- manager growth fund. The Multi Manager Multi Asset Growth fund was granted Financial Services Authority approval last week and it is expected to be launched in early June. The fund will be the second...

IN BRIEF: SIT Sipp offers a wide choice.(Brief article)
May 12, 2008... SIT Savings, a wholly-owned subsidiary of the Scottish Investment Trust, has added the SIT self-invested personal pension (Sipp) to its product range. The Sipp offers an extensive choice, enabling investors to tailor the portfolio combination...

Multi-manager fund inflows slide to #637m.
May 12, 2008... The first quarter of 2008 proved a difficult one for fund of funds managers, according to the latest quarterly statistics from the Investment Management Association (IMA). Net sales totalled #637.3m, significantly down from the #834m in...

Kinsey-Quick buys into subprime.
May 12, 2008... Ken Kinsey-Quick, head of multi-manager at Thames River, is going long in subprime credit because, he says, the pendulum of market sentiment over the sector has swung too far. "Everybody hates it," he says. "That's usually the best time...

Emerging markets weather the credit crunch.
May 12, 2008... Emerging markets are still weathering the credit crunch well, according to participants in the 10th annual Global Market Bond Forum, organised by the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and...

New sector provokes doubts about performance gauge.
May 12, 2008... The Absolute Return sector, which contains 12 offshore and five onshore funds, is the first new IMA category since the launch of UK Zeros in 2004, says Nicola Kemby, the association's head of sectors. She says the IMA began consulting its...

STRATEGY: Path to recovery may hold surprises.
May 12, 2008... The Federal Reserve moves to boost liquidity but recovery is unlikely to be V-shaped because the lags between the credit crunch and the real economy - elsewhere, too - are unpredictable. The Federal Reserve's rescue of Bear Stearns in...

TRENDS: Resource boom fuels fund demand.
May 12, 2008... Global demand for food, fuel and metals soars prompting companies to launch funds targeting commodities - and the trend will continue as demand is likely to remain high. The argument for investing in commodity-related shares has been well...

Q&A: Deep player punts on value to regain lead.(Interview)
May 12, 2008... Riitta Hujanen, recently installed as manager of the Schroder European fund, talks to Adam Lewis. Q: What initial changes did you make to reposition the fund after you took over last December? A: I joined the group in October and had...

PASTURES NEW: Good threshing.
May 12, 2008... Commentators blame rising populations and affluence for soaring food prices but the causes include a weak dollar and inefficient biofuels production. Growth in consumption should be welcomed and demand can be met by bolstering technology and...

PASTURES NEW: Discredited miserabilism makes comeback.
May 12, 2008... Much of the discussion of surging food prices bears the unmistakeable imprint of Thomas Robert Malthus (1766-1824). Malthus's basic argument was that population tended to grow faster than food supply. Population generally grew geometrically...

PASTURES NEW: Agricultural funds.
May 12, 2008... Until not long ago it was impossible for British retail investors to invest in specialist agriculture portfolios. However, with a rash of launches numerous such funds are available. The area is so new that some funds are not yet in the...

ANALYSIS: Method in his mid-cap 'madness'.
May 12, 2008... With women's clothing and even a housebuilder among his holdings, Paul Spencer's approach as manager of Rensburg UK Mid Cap Growth is hardly fashionable, but it appears to work. It's fashionable to believe that FTSE 100 companies,...

AFI: Rule change fails to stoke interest.
May 12, 2008... Most panellists who responded to the latest survey avoid multi-manager funds because they regard fund selection as their job, while others say it allows access to "spicier" areas.Last May the Adviser Fund Index (AFI) rules changed allowing...

Fund of funds performance data: 12.05.08.
May 12, 2008... Of the four global regional sectors (fund of funds only), the Asia Pacific ex Japan was the only peer group over the past 12 months to generate a positive return. According to Morningstar, over one year to May 5 the Asia Pacific ex Japan sector...

FOCUS: US giant in drive to develop UK 'hub'.(Company overview)
May 12, 2008... Legg Mason, long viewed as "a solely American equity-based house", aims to raise its profile to British investors. New offerings and positive returns will be essential, writes Tomas Hirst. Legg Mason has long been an understated addition...

Fund Manager's Diary: 21-27 April 2008.
May 12, 2008... Monday The week begins with preparation for our weekly investment floor meeting. Last December, I calculated that Royal Bank of Scotland [RBS] could need a #9 billion rights issue. While that seemed shocking a few months ago, it now seems...

COMMENT: How food and energy forced rates re-think.
May 19, 2008... News last week that rising inflation could mean an end to the Bank of England's recent trend of cutting interest rates will come as a further blow to Britain's homeowners. Not only is it more difficult to get on the property ladder, but...

Barings reveals plan for diversified soft commodities Oeic.
May 19, 2008... Baring Asset Management is planning a third-quarter launch of a dedicated soft commodities invested fund. Pending Financial Services Authority approval, the Barings Global Agriculture fund will be run by Jonathan Blake, who at present...

Brown Advisory widens access to US equities.
May 19, 2008... Brown Advisory is offering British investors access to all of its core equity strategies for the first time, with the launch of the American fund. The fund combines exposure to the firm's US Equity Value, US Equity Growth and US Smaller...

IN BRIEF: Eclectica to offer agricultural futures.(Brief article)
May 19, 2008... Eclectica Asset Management will launch the CF Eclectica Agricultural Futures fund for institutional investors next month. The portfolio, which is designed to complement the firm's #200m long-only Agriculture fund, will be co-managed by Hugh...

IN BRIEF: T Bailey 'first' as it adds Aegon fund.(Brief article)
May 19, 2008... Multi-manager specialist T Bailey has added the Aegon UK Opportunities fund to three of its four fund of funds portfolios. T Bailey says it is the first multi-manager to hold the #63m Aegon fund, launched in March 2007. The Aegon fund,...

IN BRIEF: Dawnay Day offers China deals.(Brief article)
May 19, 2008... Two new structured investments from Dawnay Day Quantum offer exposure to China's economic growth with capital protection. The DDQ Protected China Portfolio offers 80% of growth in the Hang Seng China Enterprises Index (HSCEI) over six years....

Pictet seeks profits in Mena region.
May 19, 2008... Pictet Funds, the fund distribution arm of Swiss private bank Pictet & Cie, has launched a fund investing in the Middle East and North Africa. The Pictet Targeted Fund (Lux) Middle East and North Africa (Mena), launched on May 13, is...

Britain best placed in Europe for recovery.
May 19, 2008... Britain is best placed of all the net borrowing European nations to recover from the credit crisis, according to Lombard Street Research. Diana Choyleva, head of UK service at Lombard, says that France and Germany appear likely to weather the...

IN BRIEF: F&C links range to Standard Life.(Brief article)
May 19, 2008... Links to F&C's Lifestyle fund range have been established on all of Standard Life's products. The F&C Lifestyle range, launched last year, is a suite of multi-manager funds that follow the asset allocation models derived from Dynamic...

IN BRIEF: SLI buys Brisbane office complex.(Brief article)
May 19, 2008... Standard Life Investments (SLI) has made its third direct investment in the Asia Pacific property market with the acquisition of a property in Brisbane, Australia, for A$37.5m (#18.1m). Number 82 Eagle Street, acquired from Trinity Property...

IN BRIEF: Legg Mason opens office in Milan.(Brief article)
May 19, 2008... Legg Mason, the world's ninthlargest asset manager, has opened an office in Milan. The office will enable Legg Mason, a group focused on building relationships with third-party distributors, to expand and deepen its relationships with...

FOUR and YouGov in 'unique' offering.
May 19, 2008... FOUR Capital is teaming up with YouGov, the internet research and consulting agency, to launch an absolute return vehicle. The YouGov Alpha fund, to be launched early next month, will use YouGov's network of panellists as a constant data...

New Star to merge American and Asian funds.
May 19, 2008... New Star will merge funds in its American and Asian equity ranges on June 13, subject to investor and Financial Services Authority approval. The firm's #5m Japan Oeic will be amalgamated with the #100m Pacific Growth unit trust, while...

Lyon to lead-manage S&W global gold fund.
May 19, 2008... Robert Lyon is to become lead manager on Smith & Williamson's #17m Global Gold and Resources fund. Lyon, who was appointed co-manager last month, will take increasing responsibility for the fund over the next three to four months, says...

Confidence returns to bonds as price anomalies appear.
May 19, 2008... The fixed income market was affected by investor redemptions at the end of last year as confidence in the market plummeted. There was a great deal of concern surrounding the subprime crisis as fears of a systemic failure, particularly in...

STRATEGY: Quality adds value in confusing time.
May 19, 2008... Investors should focus on companies with strong cash flows, which outperform in volatile markets - rather than pursuing growth or value stocks - when confusion may arise. The extent to which value stocks have outperformed on a global basis...

TRENDS: Choice and timing yield dividends.
May 19, 2008... Equity income managers focus on companies that share profits with investors as dividends - but good timing and expert stockpicking skills are needed to generate healthy returns. Income investing focuses on providing an income to investors...

REVIEW: Easy scapegoat triumphs as referee.
May 19, 2008... Anand Menon Europe The State of the Union Atlantic Books, April 2008 Anand Menon blasts philes and phobes in his eulogy to the aims and achievements of the European Union. But the author's vision of the Union as a heroic "Hunt...

Q&A: Split decision pays dividends for Invesco.(Interview)
May 19, 2008... Katharina Hoyland, European equities manager at Invesco, answers questions from Will Jackson. Q: You manage Invesco's European Equity Income fund and the equity portion of the European High Income portfolio, which was launched this...

RACE FOR PROFITS: Full throttle.(Company overview)
May 19, 2008... Soaring oil and energy prices ignited a global focus on alternative energy and hard-nosed investors are reaping the rewards of a surge in green technology, writes Vanessa Drucker, Fund Strategy's American editor in New York. The old guard...

RACE FOR PROFITS: Ruminating on greenhouse gases.
May 19, 2008... Are greenhouse gases in fact affecting the earth's climate? While that issue remains debatable, those who maintain they are point to carbon dioxide, sulphur dioxide, methane and nitrous oxides as the prime culprits. Methane, which has more...

RACE FOR PROFITS: Greening the brand.
May 19, 2008... Many companies that did not start out their businesses with green intentions are shifting gear, as they realise how much it can help them to attract new customers and segments. "It's good for the brand, and makes customers feel better,"...

ANALYSIS: Top performer prospers on variety.
May 19, 2008... Giles Hargreave, manager of Marlborough Special Situations, outperforms with small stakes in more than 130 small-cap stocks that include agri- business, oil tankers and a cafe franchise. It's difficult to put Giles Hargreave or the fund he...

AFI: Brighter outlook forecast for value.
May 19, 2008... Some advisers hold value funds, including one with large weightings in banks and another that favours small to mid-caps - and they predict that performance over the long term is set to rise.In response to the Adviser Fund Index (AFI) survey...

FoFs: Why Margetts has had it with Japan.
May 19, 2008... Toby Ricketts has nearly doubled Margetts' Venture Strategy fund's emerging markets holdings to 25%. He also keeps a 25% weighting to Asia Pacific equities - with one significant exception. Toby Ricketts, investment director at Margetts,...

FOCUS: IFA channel course tests river crew.
May 19, 2008... Thames River Capital's first foray into the advisory market is a bigger challenge than expected, but the group hopes to sell more funds via the IFA route, writes Neal Underwood. When Thames River Capital launched its multi-manager...

Fund Manager's Diary: 29 April to 4 May 2008.
May 19, 2008... Tuesday Lots of emails to friends in Britain, America and Australia coming in and going out about everyone's plans for the big weekend. Off to see N Brown at its results meeting in the West End. The company is doing well despite being in the...

COMMENT: Myriad controls stifle freedom in practice.
May 26, 2008... Is the free market dead? Even its most avid supporters doubt it is working. The credit crunch is undermining their faith. Martin Wolf, the chief economics commentator of the Financial Times, declared that: "Friday, March 14 2008 was the...