Fund Strategy articles from November 2008

Fund Strategy archives from November 2008

COMMENT: Fear sharpens horns of a market dilemma.
November 3, 2008... Adam Lewis, deputy editor The phrase catch-22 - made popular by Joseph Heller's classic 1960s satirical novel of the same name - is often used to describe an illogical, or "no win" situation. In the case of Heller's novel, if an American...

Credit Suisse seeks approval for AllHedge Index fund.
November 3, 2008... Credit Suisse is seeking British distributor status for its Luxembourg- domiciled CS Tremont AllHedge Index fund. If approved, the fund will offer British retail investors diversified hedge fund exposure for an annual management fee of 1%....

GHC to extend range with three risk-rated Oeics.
November 3, 2008... GHC Fund Management, part of GHC Group, plans to launch three risk- rated multi-manager funds to add to its range of Oeics. The funds will sit alongside the five Oeics already offered by the group and will be managed by Richard Harper, who...

IN BRIEF: Rates cut in Japan and America.(Brief article)
November 3, 2008... America and Japan cut their basic interest rates last week in the struggle against a global slowdown. The American Federal Open Markets Committee cut the Federal Reserve's lending rate by 50 basis points from 1.5% to 1%. The Bank of Japan...

IN BRIEF: OBSR upgrades fund ratings.(Brief article)
November 3, 2008... Old Broad Street Research has upgraded several funds' ratings after its most recent meeting. The formerly A-rated Gartmore Global Focus Fund was awarded an AA rating while Newton International Growth and Investec Global Energy funds were...

Multi-managers depart in Insight and HSBC shake-ups.
November 3, 2008... Last week saw the return of departures in the multi-manager sector with Insight Investment and HSBC both making changes to their teams. Patrick Armstrong and Ana Cukic Armstrong, co-heads of multi-manager at Insight, parted company with...

Quantum Absolute Income delivers under new manager.
November 3, 2008... Joel Amsellem, manager of the Quantum UK Absolute Income fund, has generated a positive return of 6.3% since taking over management at the end of June. The addition of a new stock selection strategy and the enhancement of the fund's call...

IN BRIEF: Axa and Barclays Wealth in link-up.(Brief article)
November 3, 2008... Axa Isle of Man has joined up with Barclays Wealth to offer investors a mirror fund. The fund invests in the Barclays Wealth Defined Returns Plan (Annual Kick-out) October 2008. It mirrors the performance of the Barclays Plan and can...

F&C clarifies Friends' stake plans.
November 3, 2008... F&C released its interim management statement last week, which included an outline of Friends Provident's plan to relinquish its 52% share in the group. As expected, the results reflected current market stresses, with assets under...

Wood power drives Keydata's energy portfolio.
November 3, 2008... Keydata International has launched a fund that plans to invest in several small-scale renewable energy power plants across Britain and Europe. The plants are not wind or solar, however. Instead the Keydata International Renewable Energy...

IN BRIEF: S&P to expand index series.(Brief article)
November 3, 2008... Standard & Poor's Index Services announced it is set to expand its Dividend Investor Index Series to include markets in Asia, Australia, Europe, and Japan, in addition to several emerging markets. The S&P Dividend Investor Series is made up...

IN BRIEF: Account manager joins Baring.(Brief article)
November 3, 2008... Baring Asset Management has added to its British retail sales team with the appointment of Carl Wilmore as account manager, responsible for sales to asset manager clients. Wilmore will report to Rod Aldridge, the head of UK retail...

IN BRIEF: Skandia recruits consultant.(Brief article)
November 3, 2008... Skandia has announced the appointment of Christopher Cade as investment consultant. Cade will be responsible for explaining Skandia's investment proposition to its sales force and financial advisers. He was director of sales, business...

Trusts forced to sell as gearing rises.
November 3, 2008... Income producing investment trusts are being forced to sell underlying assets and pressure is mounting on dividends as high gearing and falls in asset values put pressure on loan repayments. Nick Greenwood, the group investment director...

Funds under management fall 11% in September.
November 3, 2008... Despite the biggest monthly drop in funds under management in British domiciled investment funds this year there are no indications of a large-scale sell-off by investors. Total funds under management fell 11% in September to #380 billion...

Bank heralds return of confidence after rescue.
November 3, 2008... The British bank bail-out on October 8 is restoring confidence in the sector, according to the Bank of England's bi-annual Financial Stability Report, published last week. However, the Bank also notes that risks remain in other parts of the...

ANALYSIS: Managers resist talk of suspending mark-to-market.
November 3, 2008... Victims of the trend can be seen with Standard & Poor's (S&P) review last week of high-yield funds, in which there were downgrades for the New Star Extra High Yield Fund, Old Mutual Dynamic Bond Fund and Fortis L Fund Bond Corporate High...

STRATEGY: Fear and panic spawns two camps.
November 3, 2008... Investors defend their capital and maintain their income - or they look for opportunities amid the turmoil. And the case for investment grade credit looks compelling for the brave investor. The past few weeks will be written about for...

TRENDS: Nurturing a taste for lucrative habits.
November 3, 2008... Consumer trends change as economies evolve - the global uptake of coffee culture is an example - which offer myriad opportunities if managers can spot long-term structural changes in spending. Despite the confidence slump and related...

Q&A: Bloxham stocks up on food to survive the chill.(Interview)
November 3, 2008... Pramit Ghose, manager of the Elite Bloxham Global Equity Income fund, talks to Frances Hughes. Q: The investment approach on this fund has been described as "cautious contrarian". Can you explain it? A: The mantra of the fund is to...

SHARPER EDGE: To the point.
November 3, 2008... Advisers sharpen their competitive edge by launching their own fund ranges, which gives them more control over the portfolios and allows them to better fulfil clients' needs. Neal Underwood examines the advantages of the do-it-yourself...

A global trend - Financial Partners International.
November 3, 2008... It is not just British adviser firms that are launching their own fund ranges. Financial Partners International (FPI), which has a strong presence in the Middle East and Asia Pacific regions, has set up two fund ranges; a fund of funds product...

ANALYSIS: Bullishness blooms amid the agony.
November 3, 2008... Running a bond fund that is down 20% over the year, and frustrated by lack of liquidity and the difficulty of trading small bonds... John Pattullo is finding many reasons to be optimistic. What a relief to see Russell Brand and Jonathan...

INVESTMENT TRUSTS: 'Shame' is the name of the game.
November 3, 2008... Nick Greenwood at Midas Capital is waiting to find out if his new strategy will be successful: buying at rock-bottom prices the companies that other wealth managers are ashamed to hold. Nick Greenwood, a fund manager at Midas Capital, says...

AFI: Shorts ban could give funds a cold.
November 3, 2008... Managers of retail-targeted funds are making increasing use of hedge fund techniques such as short selling. Well used, they can be effective, but there are fears of a government clampdown. As doubts about the success of hedge fund...

FoFs: Margetts favours return to equities.
November 3, 2008... Matthew Jealous, a co-manager of the Margetts Providence Strategy fund, says the firm moved some of the bias from cash back to equities because they promise results in the long term. The Margetts Providence Strategy fund is the most...

FOCUS: Credit suisse back from the depths.
November 3, 2008... At the start of 2007, Credit Suisse's asset management arm looked bound for oblivion. Now, after a series of key appointments, it is forging ahead strongly with new strategies, writes Will Jackson. Credit Suisse's asset management arm...

Fund Manager's Diary: 20-26 October 2008.
November 3, 2008... Monday I live in Winchester, which means a 6am start each day followed by a 10-minute cycle to Winchester station and a further 15 minutes waiting on the cold platform for the delayed 6.48am service to London. My one-hour train journey to...

COMMENT: Why Britain's plight is Brown's fault too.
November 10, 2008... Daniel Ben-Ami, Editor Gordon Brown persists in presenting Britain as simply a victim of the global financial crisis. Such an approach conveniently absolves him of any responsibility for the mess. But it is becoming clear that Britain's...

Harewood delays Platinium launch.
November 10, 2008... Harewood Solutions, the structured product providing arm of BNP Paribas, has delayed the launch of its Platinium Absolute Return fund. As Fund Strategy reported (September 1), the fund aimed to provide investors with exclusive access to the...

Smith & Williamson takes fund back in-house.
November 10, 2008... Smith & Williamson is to stop outsourcing the management of its European Growth Trust to New Star following its recruitment of Mark Pignatelli. Pignatelli, the former chief investment officer (CIO) and manager of the Schroder European...

Fidelity European fund manager is replaced.
November 10, 2008... Mario Frontini, the manager of the Fidelity European Aggressive fund, has been replaced after a review of the fund's performance and investment strategy. Firmino Morgado, who joined Fidelity's equity research team in 2002 and has...

IN BRIEF: Property fund suspends dealing.(Brief article)
November 10, 2008... Aviva Investors has temporarily suspended dealing in the European Property Fund (EPF). It took the decision because of a lack of immediate liquidity in the fund, the result of a rapid upsurge in redemptions in recent weeks, and weaker market...

IN BRIEF: BlackRock UK Income upgraded.(Brief article)
November 10, 2008... Standard & Poor's (S&P) has upgraded BlackRock's UK Income Fund to AA. The upgrade means that all BlackRock retail UK equity funds are now at least AA-rated. A statement from S&P highlighted the impact of Nick McLeod-Clarke, who took over...

Caretaker pair step in to manage F&C funds.
November 10, 2008... Hilary Aldridge and Phil Doel were appointed interim co-managers on F&C's #120m UK Growth & Income, #570m Stewardship Growth and #300m Stewardship Income funds last week. Ted Scott, lead manager on the funds is on sick leave. Aldridge...

Axa IM shake-up creates new funds.
November 10, 2008... Axa Investment Managers (IM) has completed an extensive review of its Axa IM retail funds. In a series of proposed changes, assets from three Axa IM portfolios will be transferred to the firm's Framlington range, creating two new funds....

IN BRIEF: European Central Bank cuts rate.(Brief article)
November 10, 2008... The European Central Bank (ECB) cut interest rates by half a point last week to 3.25%. The move was widely expected and follows a half point reduction of the base rate last month in conjunction with other central banks across the world....

IN BRIEF: New investment chief installed.(Brief article)
November 10, 2008... Dominic Rossi, the new chief investment officer at Gartmore, took up his role last week. Rossi is responsible for the company's investment division, which encompasses Gartmore's London headquarters and investment offices in America and Asia....

IN BRIEF: Insight appoints senior specialist.(Brief article)
November 10, 2008... Insight Investment has announced that Emma du Haney will join its fixed income team as a senior fixed income product specialist. She joins on December 3 from Henderson Global Investors and will report to Adrian Grey, the head of fixed...

IMF predicts shrinkage and growth.
November 10, 2008... The International Monetary Fund (IMF) has issued an update for its World Economic Outlook predicting developed economies as a whole will shrink by 0.3% in 2009. Although the global economy as a whole is projected to grow by 2.2%, this...

Assets under management drop by nearly 19%.
November 10, 2008... Total assets under management have fallen by 18.9% over the past 12 months according to the Investment Management Association (IMA). The trade body published its third- quarter statistics for the asset management industry showing assets...

New call to Russia over trading suspensions.
November 10, 2008... Angelika Millendorfer, the head of emerging Europe equities at Raiffeisen Capital Management, has added her voice to calls for Russian regulators to reconsider their policy of suspending market trading. Russia's main stock indices, the...

STRATEGY: Special situation throws up bargains.
November 10, 2008... Valuations plunge as the turmoil takes its toll so a themed or strategic approach to investment is inadvisable. But skilled stockpickers can find value, especially in British special situations. Markets are more fickle and febrile than I...

TRENDS: Cash makes up for dearth of choice.
November 10, 2008... Managers in the Managed sectors sought relative safety in cash and fixed interest as the crunch continued to bite, but exposure to British equities fell while exposure to American equities rose. The global financial crisis has resulted in a...

Q&A: Advisers look north for enduring experience.(Interview)
November 10, 2008... John Husselbee, the founder and chief executive of North Investment Partners, talks to Neal Underwood. Q: Why did you decide to leave Henderson Global Investors and launch North Investment Partners? A: We set up in August 2005 having...

BROKEN RULES: Fragile state.
November 10, 2008... Once rare events occur more frequently and investors lose faith in the old mantras - such as diversification - that promised to safeguard returns. Vanessa Drucker reports from New York on the challenge to traditional investment principles. ...

BROKEN RULES: The hardest hit.
November 10, 2008... There is ample pain to go around, from mortgage foreclosures and job losses, to local budget deficits, which entail reduced social service provisions. As stock portfolios are battered, two groups of American investors are most likely to...

ANALYSIS: European industrials set for take-off.
November 10, 2008... Charles Glasse, the co-manager of PSigma European Income, loves airports because "they are a fantastic monopoly" and despite nosediving earlier this year, the fund promises to fly again. Where do income managers huddle during tough times,...

INVESTMENT TRUSTS: Emerging style hits height of fashion.
November 10, 2008... Emerging market investment trusts delivered the most consistent performance over 10 years. However, investment style is as important to a fund's success as the areas and stock picks. The three most consistent performing investment trusts...

AFI: Commodities fall victim to caution.
November 10, 2008... Property, commodity and high-yield funds are ejected from AFI portfolios in the November rebalancing - despite much long-term confidence in the sectors - as advisers choose defence. Financial advisers are becoming more defensive. They are...

FoFs: Dynamic team awaits its new leader.
November 10, 2008... The two lead managers of Insight's UK Dynamic Managed Return fund have left the firm, but the fund's team-based approach will continue unchanged with a new key player arriving in January. Despite the exit of Patrick Armstrong and Ana...

FOCUS: Nursing hopes for chinese babies.(Company overview)
November 10, 2008... While other groups have been aborting product plans, JPMAM has had strength to launch more funds, including one that focuses on consumers in emerging markets. Will Jackson reports. After a torrid year for the financial services industry...

Fund Manager's Diary: 20-26 October 2008.
November 10, 2008... Monday The alarm goes off at 5am. First I check stock prices on Bloomberg and see that Asian markets have opened the new week stronger. Prepare breakfast for the family at 6.30. They are all still sleepy so there is not a lot of conversation. I...

COMMENT: U-turn leaders treat us with contempt.
November 17, 2008... Daniel Ben-Ami, Editor Another day, another U-turn. Western politicians seem to be in a competition over who can do the most. Unfortunately it is the rest of us who suffer as a result of their policy gymnastics. Henry Paulson, the...

New Star to axe 16% of workforce.
November 17, 2008... New Star Asset Management is to shed up to 16% of its workforce as it restructures the business following a significant decline in assets under management. At present the group has 380 staff, but after a #3.1 billion fall in assets for...

Barings set to launch Global Agriculture fund.
November 17, 2008... After a three-month delay, Baring Asset Management has received approval to launch its Global Agriculture fund. The fund, which was expected to be launched in October, will go live at the start of January. It will be run by Jonathan Blake,...

BlackRock top for net inflows, says Lipper.
November 17, 2008... BlackRock has pipped Invesco Perpetual as the top asset manager in terms of net inflows in the third quarter of 2008, according to Lipper. The firm saw net flows of #845.4m compared with Invesco's #93.1m. The flows show the strength of...

IN BRIEF: Eurozone suffers 0.2% contraction.(Brief article)
November 17, 2008... The eurozone economy capitulated after a resilient performance during the start of the year and fell into its first recession in 15 years in the third quarter, according to European Union statistics. GDP across the 15 nations that comprise...

IN BRIEF: Insynergy appoints COO.(Brief article)
November 17, 2008... Insynergy Investment Management has hired Steve Wisson as chief operating officer (COO). He will be responsible for finance, operations, compliance and risk management and will report to Spike Hughes, Insynergy's chief executive officer and...

IN BRIEF: Deutsche lists ETF commodity.(Brief article)
November 17, 2008... db x-trackers, Deutsche Bank's exchange traded fund (ETF) platform, has listed its first commodity index ETF on the London Stock Exchange. The ETF is linked to the Deutsche Bank Liquid Commodity Index - Optimum Yield. The index reflects the...

Adviser divests non-core businesses.
November 17, 2008... AWD Chase de Vere said it was starting afresh last week after the advisory firm received a #1.12m fine from the Financial Services Authority (FSA). Mike Kirsch, chief executive officer of AWD Group, says the firm wants to move on. It was...

AFI panellists reduce British equity weightings.
November 17, 2008... Adviser Fund Index (AFI) panellists slashed their British equity weightings in the November rebalancing. However, allocations to North America, Asia Pacific and global bonds rose across the indices, and Cazenove's UK Absolute Target fund...

Commercial property funds to get sector.
November 17, 2008... Funds that invest in commercial property will finally have a peer group of their own after the Investment Management Association (IMA) announced the creation of a property sector. At present, property funds form part of the IMA Specialist...

IN BRIEF: Jupiter activates sterling class.(Brief article)
November 17, 2008... Jupiter Asset Management has activated the sterling class for the Jupiter Merlin International Equities Portfolio, making it more accessible to British investors, although it is not yet registered for retail distribution in Britain. The Jupiter...

IN BRIEF: Baillie Gifford appointment.(Brief article)
November 17, 2008... James Budden has joined the institutional clients department of Baillie Gifford as marketing director, wealth management. He will develop a global strategy to distribute its investment trusts and other collective investment funds. He joins...

IN BRIEF: Sharp drop in household wealth.(Brief article)
November 17, 2008... Britain's household finances have fallen to a record low, according to Alliance Trust's 'Financial Reality Index' for the third quarter of 2008. The biggest decline was in the household wealth index, which dropped sharply to end the quarter...

BoE cuts inflation forecast to 1%.
November 17, 2008... The Bank of England last week cut its inflation forecast by the largest percentage since the formation of the Monetary Policy Committee (MPC) in 1997. Mervyn King, governor of the Bank, said Britain would suffer "materially weaker"...

Tarp will no longer be used to buy toxic assets.
November 17, 2008... Henry Paulson, the American Treasury secretary, saw his troubled assets relief programme (Tarp) fundamentally alter after he announced it would no longer be used to buy toxic assets. The programme, which was so strongly fought for to get...

L&G positions trust based on rate cuts.
November 17, 2008... Richard Hodges, manager of the Legal & General Dynamic Bond Trust, is positioning the portfolio for more interest rate cuts in Britain. Since July he has invested significantly in areas of the market that benefit from falling rates, which he...

STATESIDE: 'Not since the Great Depression...'.
November 17, 2008... This year America's main television networks have compared the country's economy today to the big slump of the 1930s more than 200 times. But do the parallels really bear examination? Students of history In must be the most hackneyed...

STRATEGY: Recession demands shrewd picks.
November 17, 2008... While questions continue over the length and depth of Britain's recession, opportunities exist for investors ready to focus on companies with strong product and healthy market positioning. My guess is there were few winners on office...

TRENDS: The world offers a quantum of solace.
November 17, 2008... For investors without huge resources to risk on the stockmarket "casino", recapitalisation has become the strategy, and bond funds with global reach offer a chance to stay ahead of the game. At this stage of the great game we know as...

FoFs: The changing mix in the vanilla tub.
November 17, 2008... Thames River's Equity Managed fund, launched a year ago, maintains a high ranking among its peers through a defensive stance and a shifting balance between British and international stocks. Thames River launched five multi-manager funds...

Q&A: Why europe's catch-up nations are struggling.(Interview)
November 17, 2008... Kai Stukenbrock of the European Sovereign Ratings Group at Standard & Poor's talks to Tomas Hirst. Q: Why has Eastern Europe fared so badly during the credit crisis? A: The whole thing boils down to two factors; it's concern about...

COVER: Mirror on a crisis.
November 17, 2008... The credit crunch was painful, but it took the global financial crisis to cause panic. Now that markets and interbank lending show signs of recovery, the causes are becoming clearer, although the future remains uncertain, writes Daniel...

Energy prices as a reverse indicator.
November 17, 2008... It seems a long time ago now but before the global market turmoil in September the big economic story of the year was rising energy and food prices. There was widespread concern that speculators were manipulating prices and chronic resource...

The unfolding of a crisis.
November 17, 2008... The starting point for the global financial crisis is often assumed to be September 2008 or even the onset of the credit crunch in August 2007. But while these are important dates, the roots of the crisis can be traced back much further. In...

ANALYSIS: Bond markets yield incredible value.
November 17, 2008... John Hamilton, fund manager of Jupiter Corporate Bond, says there are many good-quality bonds available at bargain-basement prices, with bonds spread wider than in the past few years. What's not to like about bond funds right now? Spreads...

INVESTMENT TRUSTS: Future of Eaglet trust is questioned.
November 17, 2008... Eaglet Investment Trust board's plan to make the trust a directors' dealing fund has led to a call from Progressive Value Management that it be wound up on fears it could trade at a wide discount. Progressive Value Management has...

AFI: Investors look to Asia and America.
November 17, 2008... As British and continental European allocations begin to fall from favour, Asia Pacific and North America are moving up the popularity stakes in the Aggressive Adviser Fund Index. Adviser Fund Index (AFI) panellists cut the British equity...

FOCUS: Taking Gartmore back to its roots.
November 17, 2008... Richard Pursglove, Gartmore's head of UK retail, has big plans to develop the business, its assets and market share, but will look hard at the "roots and branches" first, writes Neal Underwood. Since Gartmore's management buyout in 2006 it...

Fund Manager's Diary: 18-24 October 2008.
November 17, 2008... Saturday A traditional "sports" day for the Ghose family in Dublin. Simon (aged 10) and parents attempt the rushed schedule of an early morning rugby match for his school. This week it's against arch-rivals St Michael's: a resounding,...

COMMENT: Protectionism could trigger global conflict.
November 24, 2008... Daniel Ben-Ami, Editor The proposed bail-out of Detroit's big three car manufacturers raises several potential problems. For a start it raises the question of what capitalism means. Generally market economies are characterised by...

New Star chief quits as fund falters.
November 24, 2008... Stephen Whittaker, New Star's joint chief investment officer and manager of the New Star UK Growth fund, has left the company following a restructuring of the fund range. Whittaker (pictured) who joined New Star from Invesco Perpetual in...