Fund Strategy articles from November 2007

Fund Strategy archives from November 2007

COMMENT: Lessons in finance equal bad education.
November 5, 2007... A particularly disturbing piece of mail reached the Fund Strategy offices last week. It boasted about a new project to teach personal finance in primary schools, which among other things, encourages children to incorporate money into poetry. It...

'Supercharged' L&G UK Alpha opens to retail investors.
November 5, 2007... The #14m Legal & General UK Alpha Trust is now open to the retail market. When the unit trust was launched in May 2005, it was marketed to specialist investors. Last week the minimum investment was lowered from #100,000 to #500. L&G says...

Glasgow fund added to Aberdeen's Oeic range.
November 5, 2007... Aberdeen Asset Management is to integrate Glasgow Investment Managers' #14m Mackintosh High Income fund into its Oeic range. The announcement ends speculation over the future of the fund following Aberdeen's acquisition of the Glasgow...

IN BRIEF: New Star trust name changed.(Brief article)
November 5, 2007... New Star has amended the name of its #2.1 billion Commercial Property Trust to New Star UK Commercial Property. The change is to better describe the fund's investment remit following the launch of its International Property fund on June 4. To...

IN BRIEF: Henderson Global renames fund.(Brief article)
November 5, 2007... Henderson Global Investors is renaming its UK Capital Growth fund as UK Opportunities and its European Capital Growth fund as European Opportunities. The changes take effect next week, to better reflect the investment approach of the funds,...

IN BRIEF: Aberdeen set to unveil equity fund.(Brief article)
November 5, 2007... Aberdeen Asset Managers has announced the launch of the Responsible World Equity fund, a sub-fund of its #7.6 billion Aberdeen Global Sicav. The fund will be run by the firm's global equity team, led by Stephen Docherty. It will invest in a...

IN BRIEF: IMF predicts strong regional growth.(Brief article)
November 5, 2007... The Middle East and Central Asia region is expected to enjoy GDP growth of 6-7% this year and in 2008, according to the latest regional economic outlook from the International Monetary Fund (IMF). Growth in the whole region looks set to be...

Norwich Union poised to unveil property fund.
November 5, 2007... Norwich Union is set to launch a global Managed Property fund of funds within the next six weeks. Fund Strategy understands the fund will only be available through the firm's unit-linked life bond at first. However, Norwich Union will...

IN BRIEF: Morley appoints Asia veteran.(Brief article)
November 5, 2007... Morley has appointed Nick Ridgewell as head of its Asian property business. Ridgewell has worked for Macquarie Bank, for more than 11 years. He was managing director of Macquarie's real estate business in Hong Kong, responsible for managing...

Merrill Lynch study stresses benefits of 130/30 funds.
November 5, 2007... A report by Merrill Lynch has encouraged investors to look at the longer-term benefits of 130/30 funds, following poor performance from some American strategies. The firm points to consistent outperformance by four model 130/30 portfolios it...

F&C backs return to financials in Stewardship range.
November 5, 2007... F&C is increasing its positions in financials in its Stewardship funds to take advantage of bargains following the summer's credit crunch. The move also follows a change in policy towards financials across the group's ethical range. Ted...

IN BRIEF: AGI fund adds #50m in a month.(Brief article)
November 5, 2007... Allianz Global Investors' (AGI) onshore RCM Bric Stars fund took more than #50m in October, according to Nick Smith, the firm's head of retail. The fund, which reached #200m at the start of October, now has #270m in assets under management...

IN BRIEF: Close agricultural trust launched.(Brief article)
November 5, 2007... Close Investments has launched a capital-guaranteed Agricultural Commodities trust. The offer period starts next week and closes in December. The fund, domiciled in Guernsey, offers 125% of the growth of a basket of commodities, giving exposure...

IN BRIEF: New Pictet fund targets EONIA.(Brief article)
November 5, 2007... Pictet Funds has launched an Absolute Return Global Conservative fund. It does not run against a benchmark but targets an absolute return equal to or higher than the Euro Overnight Index Average (EONIA) plus 2% over 12 months. Its approach...

IN BRIEF: Equity specialist rejoins Swip.(Brief article)
November 5, 2007... Scottish Widows Investment Partnership (Swip) has appointed Greig Bryson to its European equity team. Bryson, formerly an investment manager in Swip's European equity team rejoins from Pioneer Investment Management in Dublin, where he was a...

Specialist funds still retail favourite.
November 5, 2007... The Specialist sector regained its position as the most popular retail peer group in September, according to data from the Investment Management Association (IMA). However, sales in the sector were propped up by commodity funds rather...

Revenue approves trusts' exemption from VAT.
November 5, 2007... Investment trusts are exempt from value added tax (VAT) on management fees after a legal battle that lasted almost four years. The Association of Investment Companies (AIC) and JP Morgan Claverhouse Investment Trust launched the case...

Convertibles' value up in wake of volatility.
November 5, 2007... The valuations of convertible bonds have risen over the course of the summer in response to global equity volatility, says Tom Wills, manager of the Aviva Morley Global Convertibles fund. Wills says convertible bonds become worth more...

Specialist market aims to encourage hassle-free listing.
November 5, 2007... The Specialist Funds Market (SFM), launched last week, is essentially a response by the London Stock Exchange (LSE) to seeing many of the more exciting and innovative investment funds list abroad. Its aim is to ensure that the LSE remains...

STRATEGY: Uncertain climate calls for caution.
November 5, 2007... Only 28% of emerging markets have outperformed the index since the market trough in August. A cautious, bottom-up strategy is called for - especially in themes such as industrials. Emerging markets equities have enjoyed a phenomenal rebound...

TRENDS: China stays top of Asian markets.
November 5, 2007... Asian funds invest in a diverse range of countries, including Australia, China, Korea and Taiwan, and have delivered good returns - especially those investing in Chinese stocks. Emerging markets have captured the headlines in recent months....

Q&A: New American alpha has a short way to go.(Interview)
November 5, 2007... Stephen Moore, manager of Threadneedle American Extended Alpha, talks to Will Jackson. Q. Threadneedle launched American Extended Alpha, its first 130/30 fund, on October 22. Is it fully invested? A. We are about half-way there. At...

TOP DOG: The size of it.
November 5, 2007... Small and mid cap stocks outperformed large caps since the start of the bull market in 2003. But there are signs of a reversal as large cap stocks - which generally thrive in uncertain times - gain lost ground. Simon Hildrey reports. The...

Growth versus value stocks.
November 5, 2007... The debate on whether growth stocks offer a more attractive investment than value companies is not as clear cut as the discussion on large caps against mid and small caps. One of the main reasons for this is the difficulty in defining growth...

View of the multi-managers.
November 5, 2007... John Husselbee, chief executive of North Investment Partners, says large caps and some growth sectors offer attractive valuations following the outperformance of small and mid caps. This is because of the part of the economic cycle we are...

ANALYSIS: Racy tactics deliver hot performance.
November 5, 2007... Mark Harris, manager of New Star Tactical, thrives on risky punts in emerging markets, including China and Thailand, and so far it has performed brilliantly - up 35.8% over the past year. Mark Harris, boss of New Star's fund of funds team,...

CHANNELS: Chelsea's tactics keep premier league sharp.(Interview)
November 5, 2007... Darius McDermott, managing director of Chelsea Financial Services, talks to Adam Lewis. Q. What did you make of the recent Retail Distribution Review (RDR) and will it affect your business? A. How the RDR affects us remains to be...

AFI: IFAs not wild about 'woolly' themes.
November 5, 2007... Few thematic funds made it into the Adviser Fund Indices in May - evidence that IFAs are lukewarm about them. One reason is that they go against the grain of mutual fund investing. It takes only a glance at the Adviser Fund Index (AFI) to...

FoFs: Fund of funds performance data.
November 5, 2007... Credit Suisse's decision to merge some of its overseas regional funds means only New Star and Skandia Investment Management now offer funds of funds in the international sectors. Credit Suisse merged its European, Japanese and North...

FOCUS: Is the house of bedlam rising again?
November 5, 2007... A lacklustre year has meant no revenues on some funds under Bedlam Asset management's performance fees system. But Bedlam tells Frances Hughes it has reached a turning point. Bedlam Asset Management is far from being the investment...

Fund Manager's Diary: 22-28 October 2007.
November 5, 2007... Monday Back from a week off and feeling suitably refreshed, with the exception of a sore backside, courtesy of a two-hour bike ride. The market seems to be about 300 points lower so the morning is spent investigating what has been going on and...

COMMENT: Energy demand hike should be celebrated.
November 12, 2007... The 2007 World Energy Outlook from the International Energy Agency describes the rapid growth in energy demand as "alarming". A better phrase would be "wonderful". Greater energy use should be welcomed because it is closely correlated...

FSA opens gateway to onshore money market vehicles.
November 12, 2007... Asset managers can launch onshore money market funds in Britain for the first time. Money market funds are open-ended vehicles that hold short-term debt instruments and provide daily liquidity. They aim to protect investors' capital and...

Morley long-short fund shuts after eight months.
November 12, 2007... Morley has closed its UK Equity Long Short fund and James Follows, its manager, has left the group. According to the group, Follows's role became redundant with the fund's closure and the departure of Ian Lancaster last month to Gulf Finance...

IN BRIEF: Support manager quits Baring fund.(Brief article)
November 12, 2007... James Buckley, manager of the #276m Baring European fund, has lost his back-up manager. Kevin Yates, a member of the Baring European team and also back-up manager on the offshore $577m (#275m) Baring Europa fund, has been placed on gardening...

IN BRIEF: Invesco launches three ETFs.(Brief article)
November 12, 2007... Invesco has launched the first three exchange traded funds (ETFs) in its British PowerShares range. The firm has listed Dynamic US Market, FTSE RAFI US 1000 and Global Clean Energy funds on the London Stock Exchange. The funds are based on...

IN BRIEF: Hildrey scoops second IMA gong.(Brief article)
November 12, 2007... Simon Hildrey has won the Investment Management Association's (IMA) freelance writer of the year award. Hildrey regularly writes cover stories, features and news for Fund Strategy. He has written for the magazine for five years. Before...

Jupiter increases its Europe range.
November 12, 2007... Jupiter Asset Management has launched another emerging Europe fund as part of its Jupiter Global Sicav. Managed by Elena Shaftan, head of Jupiter's emerging European team, the Jupiter New Europe fund is the group's third fund that invests in...

Webb proposes restructuring of Eaglet trust.
November 12, 2007... Peter Webb, chief executive of Unicorn Asset Management and manager of the #100m Eaglet investment trust, has put forward proposals to restructure the fund. Investors will be able to take a cash exit or roll-over into a smaller companies fund,...

Two property funds ejected as panellists slash weightings.
November 12, 2007... The Adviser Fund Index (AFI) panel-lists slashed their property weightings during the November rebalan- cing. Two property funds - Skandia Global Property Securities and L&G UK Property Trust - were ejected from the index as a result. ...

IN BRIEF: Trustnet website set for relaunch.(Website overview)(Brief article)
November 12, 2007... Financial Express will relaunch its Trustnet website this week. The site will include a new life and pensions service, allowing users to search for funds within life and pension products free of charge. A rating system will be used to score the...

IN BRIEF: New specialist in Martin Currie team.(Brief article)
November 12, 2007... Martin Currie has appointed Antti Olkinuora, a Latin American specialist, to its Asia and global emerging markets team to research and recommend Latin American stocks. Olkinuora joins from FIM Asset Management in Finland, where he was a partner...

F&C shuffles European Oeics team.
November 12, 2007... Davina Curling has left F&C, after taking maternity leave in June 2006. Peter Jarvis has taken over as lead manager on the European and European Dynamic Oeics as a result. The move follows his replacement of Curling on the Foreign &...

Ethical sales rocket as other asset classes fall.
November 12, 2007... Sales of ethical funds are increasing, while other asset classes are experiencing a slowdown, says the Investment Management Association (IMA). The quarterly investment statistics for funds of funds, tracker and ethical funds were...

High-conviction policy for Polar Capital's healthcare portfolio.
November 12, 2007... Polar Capital's Healthcare Opportunities fund will take a high- conviction approach to investing. Gareth Powell and Daniel Mahony, co- managers on the portfolio, will use fundamental analysis to pick 25-30 stocks from a global universe of...

IN BRIEF: Fidelity launches share class.(Brief article)
November 12, 2007... Fidelity International has launched a distributing share class on its Retirement Income fund. The fund is one of a suite of seven investment products launched in April. The new distributing share class offers investors the opportunity to...

IN BRIEF: Promotion for Franklin's Pialloux.(Brief article)
November 12, 2007... Franklin Templeton Real Estate Advisors has promoted Boris Pialloux to co-manager of the firm's Global Reit fund. Pialloux joined Franklin Templeton Investments in June 2006, as a research analyst focusing on European property stocks. Before...

Agency predicts hike in coal demand.
November 12, 2007... There is likely to be a resurgence in global demand for coal owing to booming power sector demand from China and India, according to the International Energy Agency (IEA). The forecast was made in the IEA's World Energy Outlook 2007 just as...

Private equity firm unveils venture capital trust.
November 12, 2007... EPIC Private Equity, an institutional private equity fund manager, is to launch its first retail venture capital trust (VCT). The EPIC VCT aims to raise #15m and says it has commitments of #0.5m so far. The VCT targets annual dividends of...

Chinese investments into overseas equities may boost global growth.
November 12, 2007... Chinese investment into overseas equities could boost the global economy, according to Lombard Street Research, an economics consultancy, which revealed its findings at its global liquidity crunch seminar last week. When Chinese savers are...

Instability hampers Japan's efforts to revive economy.
November 12, 2007... The political difficulties afflicting Japan and unsettling investors in its stockmarket took another unexpected twist last week when the leader of the country's main opposition party, Ichiro Ozawa, first offered to resign and then retracted...

STRATEGY: Polish equity market loses its lustre.
November 12, 2007... The Polish stockmarket rocketed four-fold since 2003 but valuations are expensive compared with other Eastern European markets so investors should select sectors and equities with care. The Polish stockmarket has put in an impressive...

TRENDS: Greatest revolution offers big spoils.
November 12, 2007... Asia deflected the turmoil of the summer and China in particular delivered scorching returns for investors - but while the region is not risk free, short-term caution will protect the faithful. East Asia is the one area that has stood up...

Q&A: Four skilled parts make rensburg's spicy whole.(Interview)
November 12, 2007... Colin Morton, joint fund manager, Rensburg UK Managers Focus Trust, talks to Neal Underwood. Q. The Rensburg UK Managers Focus Trust combines the best large, mid, small and multi-cap ideas of yourself (large-cap), Paul Spencer (mid- cap),...

ON THE DEFENSIVE: Armour-plated.(Company overview)
November 12, 2007... The dollar bombs and central banks diversify away from the greenback as the reserve currency. Can America retain its invincible image and fight the protracted decline? Vanessa Drucker reports from New York. The dollar is in the doghouse,...

ON THE DEFENSIVE: Impact of the presidential election.
November 12, 2007... It is even harder to predict the outcome of the American presidential elections than the fate of the buck, yet the results of November 2008 may prove an important catalyst for the currency. At this time, Hillary Clinton, the Democratic...

ANALYSIS: New face focuses on undervalued.
November 12, 2007... Morley ditched its institutional approach and hired Mervyn Douglas to run the Norwich UK Focus fund, which comprises just 25 stocks - most of which are undervalued large caps. Ask any adviser to name a Norwich Union (NU) fund, and the...

REVIEW: American guide to china and india.
November 12, 2007... Robyn Meredith The Elephant and the Dragon: The rise of India and China and what it means for all of us London: WW Norton Robyn Meredith, a journalist based in Hong Kong, provides a vivid, if somewhat American- orientated,...

AFI: Investors reaping golden benefits.
November 12, 2007... The AFI has been riding the soaring price of gold, mostly through exposure to Merrill Lynch Gold & General. Opinion is divided on whether gold is worthwhile as a long-term investment.Gold prices continued to surge upwards last week, driven by...

FOCUS: AGI builds for the future with bric.(Company overview)
November 12, 2007... Allianz has different subsidiaries for managing its equity and bond funds. Frances Hughes examines how the German giant is faring in Britain and its attachment to Bric funds. Allianz Global Investors (AGI) operates according to a business...

Fund Manager's Diary: 21-27 October 2007.
November 12, 2007... Sunday Jon [Asante], my colleague, and I arrive at Edinburgh airport and watch Lewis Hamilton destroy his chances of glory over the first few laps of the Brazilian Grand Prix. We then board the plane for the first leg of the journey to Sao...

COMMENT: The world is poorer than we thought.
November 19, 2007... Last week's biggest economic news got hardly any attention. Both China and India are about 40% smaller than they were. Also global economic growth was half a percentage point less than previous assumed (see page 14). Never mind the Bank of...

Henderson defies market to launch.
November 19, 2007... Henderson Global Investors is launching the Henderson Horizon Global Financials fund. The Ucits III fund, which is managed by Martin Kinsler, will be launched next week. Vincent Martinez, previously a financials analyst within Henderson's...

Prime Rate leads way with money market funds.
November 19, 2007... Prime Rate Capital Management, a London-based group, has become the first asset manager to announce the launch of an onshore qualifying money market fund (QMMF). The AAA-rated fund, which will come to market later this year or early in...

Feeney quits Gartmore in wake of Wagstaff move.
November 19, 2007... Paul Feeney, head of distribution at Gartmore, has left the company after almost six years. Feeney's position at Gartmore had been in question since June, when it was announced that Phil Wagstaff was joining from New Star in the newly...

IN BRIEF: Pearl division set to buy Resolution.(Brief article)
November 19, 2007... The boards of Pearl and Resolution have agreed the acquisition of Resolution by Impala, a subsidiary of Pearl. Under the terms of the agreement, Resolution shareholders will receive #7.20 a share in cash, valuing the firm at #4.98 billion. The...

IN BRIEF: #34m for new Star Heart of Africa.(Brief article)
November 19, 2007... The New Star Heart of Africa fund raised #34m during its three-week offer period, which lasted from October 22 to November 9. Managed by Jamie Allsopp, New Star has said it will cap the fund when it reaches #100m in assets. At present, the...

Swip heralds changes in senior staff positions.
November 19, 2007... Alix Stewart has left Scottish Widows Investment Partnership (Swip). As a result, Neil Murray has taken on Stewart's #850m Corporate Bond Plus and #180m European Corporate Bond funds. In an unrelated move, Swip has appointed Dean Buckley as...

JP Morgan in Japan trust boost effort.
November 19, 2007... JPMorgan has replaced Stephen Mitchell, manager of its #460m Japanese Investment trust, with James Elliot and Nicholas Weindling in an attempt to improve the trust's performance. Meanwhile, Gartmore has proposed to amend the investment...

Miton reveals details of upcoming Capella fund.
November 19, 2007... Miton Asset Management has revealed the model allocation for its Capella fund, which will launch in the first quarter of 2008, subject to regulatory approval. The paper portfolio, which was created five months ago, has weightings of 35%,...

IN BRIEF: Fund manager takes Asia break.(Brief article)
November 19, 2007... Simon Bailey, manager of the M&G Smaller Companies fund and Prudential Smaller Companies trust, is taking an extended holiday for 10 weeks to travel around Asia. He left on Saturday and will resume management of both funds on January 28....

Smith & Williamson set to make fee increases.
November 19, 2007... Smith & Williamson plans to increase the annual management fees on several of its unit trusts and Oeics. The move, which will take place in mid-January 2008, will see several of its equity unit trusts move from a 1.25% annual management fee...

King forecasts slowdown in 2008.
November 19, 2007... The coming year will be one of slowing growth and rising inflation, the Bank of England predicts in its quarterly Inflation Report. Mervyn King, the governor, says this is a response to the impact of higher energy prices and the summer's...

Pictet adds sterling share classes to 11 funds.
November 19, 2007... Pictet Funds has added sterling share classes to 11 of its offshore funds. The initial range includes five regional and six sector-based funds. Paul Gaston, the firm's head of UK sales, says Pictet is also likely to add a sterling class to its...

IN BRIEF: Firm adds second high-income fund.(Brief article)
November 19, 2007... BNP Paribas's Harewood plans to launch a second UK high-income fund, UK High Income 2. The UK High Income fund was launched in December 2005. UK High Income 2 aims to provide investors with a yield of 7.5% along with potential for capital...

New study cuts world GDP figures.
November 19, 2007... China's economy is substantially smaller than previously stated and global GDP growth is half a percentage point less than assumed. These are among the startling preliminary results from a study carried out by the Asian Development Bank in...

Fund managers hold nerve over markets.
November 19, 2007... Fund managers are nervous about market conditions but they are not panicking, according to the latest monthly global survey from Merrill Lynch. Managers continue to favour strong cyclical sectors such as emerging market equities, global...

Money market funds make maiden voyage to Britain.
November 19, 2007... A return of 10% to 15% over five years will hardly set the pulse racing for the average client. Therefore, the arrival of qualifying money market funds (QMMFs) in Britain is unlikely to receive the level of publicity enjoyed by 130/30 or...

STRATEGY: Fuel needs drive a growing demand.
November 19, 2007... It is a safe bet that agriculture prices will continue to rise - under pressure not only from an increasing population and longer life expectancy but also from national targets for biofuels. The recent rally in agriculture prices is not a...

TRENDS: So easy to diversify the modern way.
November 19, 2007... The traditional balanced fund is becoming a thing of the past as multi- asset class funds offer access to areas of investment that were previously off limits to all but the institutions. Everyone knows that diversification is the key to...

Q&A: Conservatism and large caps make a solid fund.(Interview)
November 19, 2007... Tana Focke, fund manager of Smith & Williamson North American Trust, talks to Neal Underwood Q: You have just celebrated 10 years at the helm of the fund. How have you managed to deliver strong performance over this period? A: It's...

REAPING THE REWARDS: Final trade-off.
November 19, 2007... Demand for traded life policies has soared since the late 1980s and as an uncorrelated asset class it holds attractions for investors - but IFAs are resisting take-up as returns depend on predicting the date of death. Adam Lewis scythes...

Morality of traded life policies.
November 19, 2007... Despite a rise in retail demand for funds that invest in American traded life policies (TLPs), the asset class always seems to provoke controversy. First, the policies are linked to the deaths of the individuals and secondly individuals are...

ANALYSIS: Energy offerings from bric nations.
November 19, 2007... The discovery of oil reserves off the coast of Brazil has brought the Bric nations to the fore insofar as equity opportunities are concerned. And half-a-dozen funds are offering just that. Brazil has found oil deposits off the coast of...