Fund Strategy articles from October 2007

Fund Strategy archives from October 2007

COMMENT: Active managed lag index in long term.
October 1, 2007... James Abate, the manager of the soon to be launched PSigma American Growth fund (see News, page 6), last week told journalists that American equities are heading towards an "inflection point". He argues that America's largest growth...

Swip Europe team to join BlackRock.
October 1, 2007... The European equity team at Scottish Widows Investment Partnership (Swip) is leaving to join BlackRock. Nigel Bolton head of European equities at Swip, is expected to join BlackRock in January, taking seven members of his team with him....

Chicago boutique to run 10% of Witan portfolio.
October 1, 2007... The board of the #1.4 billion Witan investment trust has appointed Thomas White, a Chicago-based boutique, to run 10% of the fund. The firm will manage a #150m global equity mandate. The move is the latest in a series of changes to the...

Property concerns make Specialist funds lose top retail spot.
October 1, 2007... The specialist sector has lost its position as most popular retail sector, according to data from the Investment Management Association (IMA). The sector's 19-month reign at the top of the net retail sales chart ended in August as investor...

IN BRIEF: F&C trust passes continuation vote.(Brief article)
October 1, 2007... The F&C Commercial Property investment trust has successfully passed its continuation vote. As reported in Fund Strategy on August 27, the vote was automatically triggered after the trust traded at a discount of over 5% for more than 90...

IN BRIEF: Cru completes Beaufort purchase.(Brief article)
October 1, 2007... Cru Investment Management and ARCH Financial Products, the firm's investment manager, have completed the purchase of the Insinger de Beaufort Oeic range. The deal gives Cru three funds with #85m in assets, taking its total funds under...

IN BRIEF: Fidelity appoints investment head.(Brief article)
October 1, 2007... Fidelity International has appointed Geraldine Stewart as head of investment in its MultiManager business. Stewart, who will lead the team of portfolio analysts, joined the firm in 1990 and became an equity analyst in 1993. Fidelity has also...

IN BRIEF: SLI European fund launched.(Brief article)
October 1, 2007... Standard Life Investments (SLI) has launched a European Smaller Companies fund aimed at European institutional and retail investors. Structured as a sub-fund forming part of SLI's Luxembourg-domiciled Sicav range, it invests in a diversified...

PSigma backs large caps in America.
October 1, 2007... James Abate, manager of the impending PSigma American Growth fund, predicts that conditions in the market are set to favour large-cap growth companies once again. After seven years of underperformance to small cap, mid cap and value...

Acuity to focus on 'unloved' smaller companies.
October 1, 2007... Acuity Capital is to follow up a management buyout (MBO) later this month with the launch of a UK smaller companies fund that will focus solely on companies with a market capitalisation below #150m. At present Acuity Capital goes under the...

F&C goes 'deep green' with new portfolio.
October 1, 2007... F&C has launched its first ethical fixed- income product. The F&C Ethical Bond fund will use the same screening process as the group's #3.5 billion equity-focused ethical fund range called Stewardship. The Ethical Bond fund's universe of...

IN BRIEF: Gartmore adds to global strength.(Brief article)
October 1, 2007... Gartmore has appointed Hamish Chamberlayne as an investment analyst in its global equities team. He joins the team from Pricewaterhouse- Coopers (PwC) this week and will report to Neil Rogan, Gartmore's head of global equities. Chamberlayne...

IN BRIEF: Nine appointed to Fortis team.(Brief article)
October 1, 2007... Four portfolio managers and five analysts have joined Fortis Investments' multi-management team. They include Joseph Odili, who joins from Fidelity and will be responsible for Asia and Emerging market equity, and Jim Snow, who joins from...

IN BRIEF: Two recruited at Scottish Widows.(Brief article)
October 1, 2007... Scottish Widows Investment Partnership has appointed Nick Ford and Simon Moss to its global developed markets team. They will report to the head of global developed markets, Ian Vose. Ford joins from F&C. Moss joins from Legal & General. ...

Experts predict slower equity growth.
October 1, 2007... Equities will grow below their trend rate over at least the next two years, according to economists at Lombard Street Research (LSR). The gloomy prognosis by Leigh Skene, Charles Dumas and Diana Choyleva is based on a fall in the American...

OBSR to operate former joint ratings service.
October 1, 2007... Old Broad Street Research (OBSR) has taken over the ratings service it previously operated with Forsyth Partners, renaming the service OBSR Fund Ratings to reflect the change. The agency also intends to launch a new multi-manager ratings...

Canada Life set to partner ARC in triple fund of funds launch.
October 1, 2007... Canada Life International (CLI), based in the Isle of Man, is launching three new funds of funds in partnership with Asset Risk Consultants (ARC). The funds are available through the CLI suite of products. The three funds, CLI ARC...

IN BRIEF: Lyxor launches Japan ETF.(Brief article)
October 1, 2007... Lyxor Asset Management has given investors access to the Japanese Topix index for the first time, with the launch of the Lyxor ETF Japan (Topix) on the London Stock Exchange. The Topix is a market cap- weighted index, comprising all of the...

Risks in emerging markets 'may be underestimated'.
October 1, 2007... Fund managers could be substantially underestimating the financial risks in emerging markets. That is the implication of the latest twice- yearly Global Financial Stability Report from the International Monetary Fund (IMF).* During the...

IN BRIEF: Credit crunch hits financials.(Brief article)
October 1, 2007... According to the latest CBI/ PricewaterhouseCoopers Financial Services survey, the sector enjoyed unexpectedly good business in the three months to September. But in the wake of the credit crunch, the survey predicts business volumes, income...

Environmental funds set to alter investment climate.
October 1, 2007... After the summer lull in product launches, climate change funds are taking centre stage. As reported in last week's Fund Strategy, F&C is set to unveil an offshore Global Climate Opportunities portfolio, with a sterling share class for...

STRATEGY: Caution is best in uncertain times.
October 1, 2007... Market volatility was a logical response to rate hikes in America but conditions will return to normal - and investors can make some timely plays as well as adopting a cautious stance. Was this market volatility caused by senior...

TRENDS: Small companies hold big potential.
October 1, 2007... Many small companies hold more cash and have less debt than bigger firms - but investors should look for quality and pick companies that have the potential to double their size. There are not many trends in the market that can be clearly...

RAW ENERGY: Hard core.
October 1, 2007... Demand for natural resources has rocketed as emerging Demand for natural resources has rocketed as emerging economies - especially China and India - develop and living standards improve. Frances Hughes examines a diverse sector, which includes...

RAW ENERGY: Diversity of natural resources.
October 1, 2007... Natural resources is a diverse sector. The simplest breakdown is metals, agricultural, energy and material. But even that is quite broad. In metals there are base metals and precious metals. Furthermore, gold, a precious metal, can also be used...

ANALYSIS: Bonds strengthen in flight to safety.
October 1, 2007... John Pattullo, manager of the Henderson Strategic Bond fund, slashed his exposure to cash and hoovered up subordinated banking bonds in the wake of the market turmoil. If Bill Mott is the man making a brave bet on banking shares amid the...

CHANNELS: The art of diversifying on a traditional theme.
October 1, 2007... Dane Halling, founder of Arcturus Investments, tells Simon Hildrey about his firm's services and strategies. Q. What is your background? A. I have been working in the investment industry for more than 20 years. I was an institutional...

Q&A: Eastern Europe debt to fore in the big picture.(Interview)
October 1, 2007... Jim Leaviss, head of retail fixed income at M&G, talks about emerging debt to Cherry Reynard. Q: How has emerging market debt behaved in the recent sell-off? A: High-yield debt markets behaved as you would expect in a sell-off. March...

AFI: Little taste shown for private equity.
October 1, 2007... Private equity firms come low on the scale of importance as an asset class, according to the latest mid-season poll, and managers who invest in them remain cautious about the sector. Panellists displayed a distinct lack of appetite for...

FoFs: Mix of asset classes boosts portfolio.
October 1, 2007... iimia's Growth & Income fund benefits from a hike in exposure to closed- ended funds in a range of out-of-favour sectors, including high growth technology stocks and commercial property. Richard Scott, the manager of the #65m iimia Growth...

FOCUS: Neptune funds go up, up and away.
October 1, 2007... Neptune Investment Management's assets under management have more than doubled over the past year, lifted by outstanding performance across its range of funds. Adam Lewis reports. Given the outstanding performance across the range of...

Fund Manager's Diary: 10-14 September 2007.
October 1, 2007... Monday Get up early at the London hotel where I had checked in the previous day, to look at the Indian market. Set out to Paris by early train to visit prospective clients along with John Cotton, my marketing colleague. Met three of them,...

COMMENT: Traded life policies will be hard to ignore.
October 8, 2007... The old adage goes that only two things are certain in life: death and taxes. To this extent it really does not matter how much is saved throughout life. At some stage everyone will die and their wealth will be passed on to their inheritors....

New lead manager at M&G property.
October 8, 2007... M&G has promoted Fiona Rowley to lead manage its #1.3 billion Property Portfolio unit trust. Rowley steps up from her position as deputy manager, which she has held since the fund's launch in 2005. The move allows John Cartwright, former...

Insight brings consistency to its retail range.
October 8, 2007... Insight Investment is introducing several changes to bring greater uniformity to its retail fund range. The minimum investment for all its funds will be set at #3,000 from December 3. Initial charges will also move from 5.25%, which applies...

High-yield securities trail investment grade bonds in F&C fund.
October 8, 2007... F&C's #300m Strategic Bond fund has more exposure to investment grade bonds than to high-yield securities for the first time in three years. The portfolio's high-yield allocation has fallen from about 60% earlier this year to just under 40%....

IN BRIEF: T Bailey reveals Best Ideas line-up.(Brief article)
October 8, 2007... T Bailey has announced the initial line-up for its UK Best Ideas portfolio, which was launched last week. The 10 equally weighted funds are F&C UK Growth and Income, Invesco Perpetual Income, Jupiter UK Growth, Legal and General Growth Trust,...

IN BRIEF: Close launches property fund.(Brief article)
October 8, 2007... Close Investments is launching a European commercial property fund, the Close European Property Investment Portfolio (Europip). The fund is available for retail and institutional investors and offers both sterling and euro share classes. A...

Schroders turns aggressive with Asia alpha portfolio.
October 8, 2007... Schroders will launch an Asia alpha fund next month to address a "gap" in its fund range, says Robin Stoakley, managing director. The Asia Alpha Plus fund will be managed by Schroders' Matthew Dobbs and aims to corner the "aggressive" alpha...

Illness forces change of manager at JOHCM.
October 8, 2007... James Lowen has taken over the management of JO Hambro Capital Management's (JOHCM) UK Equity Income fund. Clive Beagles, who has managed the #530m portfolio since launch, is on a six-month sabbatical to recover from illness. Beagles and...

IN BRIEF: Investec targets northern sales.(Brief article)
October 8, 2007... Investec Asset Management has appointed Roger Crabtree as a sales manager within its intermediary sales team. Crabtree has over 10 years' experience in the financial services industry. He has worked for Norwich Union, as well as working as an...

East Europe portfolio with a toe in the West.
October 8, 2007... Jupiter Asset Management is launching a new European fund, to be co- managed by Elena Shaftan, as part of its Global fund Sicav. The fund's mandate will be similar to that of the Jupiter Emerging Europe Select (Sicav) fund and the #603m...

New Star reveals Africa fund details.
October 8, 2007... New Star has released the details of its soon to launched Heart of Africa fund (see Fund Strategy, August 20, 2007, page 7). The fund, which will be managed by Jamie Allsopp, will invest in sub- Saharan Africa excluding South Africa....

Lazard prepares to boost global equity range.
October 8, 2007... Lazard Asset Management (LAM) will add a new UK-domiciled global equity fund to its range, launched off the back of its flagship, World Dividend Equity fund. The Lazard Global Equity Fund will be managed by the same team, headed by...

IN BRIEF: Swip boosts global bonds team.(Brief article)
October 8, 2007... The Scottish Widows Investment Partnership (Swip) has boosted its global bonds and economics team with the appointment of Luke Hickmore as investment director, corporate bonds. He will be responsible for managing corporate bond portfolios and...

Surveyors' body predicts lower returns for property.
October 8, 2007... In the wake of falls in global credit markets, the Royal Institution of Chartered Surveyors (RICS) has revised its annual return forecast for commercial property from 8% down to 3%. Meanwhile, for 2008 it has reduced its expectation of 4-5%...

Abbey sheds banks and builders to beat sector drop.
October 8, 2007... Richard Moore, the manager of the #1.2 billion Abbey UK Growth fund, has adopted a defensive position since taking over the fund in July. His stated aim was to reduce the number of holdings to 60-80 from the 270 it had when he took over...

IN BRIEF: Barclays unveils returns plan.(Brief article)
October 8, 2007... Barclays has launched an enhanced version of its Defined Returns Plan (DRP) as it completes the restructuring of its range of capital protected investments. The move comes on the back of Barclays having raised more than #100m over the past 12...

IN BRIEF: Fidelity and Martin Currie recruit PRs.(Brief article)
October 8, 2007... Fidelity International and Martin Currie have made senior appointments to their public relations teams. Paul Ilott, former communications head at Bates Investment Services, has joined Fidelity's MultiManager business as investment...

Be patient with Japan, counsels Atlantis manager.
October 8, 2007... In spite of poor economic indicators and sluggish stockmarket performance, the Japanese market still offers ripe pickings for value managers, Ed Merner, manager of the Atlantis Japan Growth fund, told investors last week. According to...

Advisers urged to comfort investors with a little TLP.
October 8, 2007... The fund industry has frequently discussed alternatives to with-profits investments. Over the past couple of years many fund management groups have launched products that they claim to be a perfect alternative to the much troubled...

Q&A: Climate change model has industrial strength.(Interview)
October 8, 2007... Simon Webber, manager of Schroders' new Global Climate Change Equity fund, talks to Kate Hage. Q. How many funds has Schroders launched on the climate change theme and use the same strategy? A. Three. The first fund we launched on...

STRATEGY: Crisis shines spotlight on regulation.
October 8, 2007... The credit crunch and panic withdrawals at Northern Rock focused attention on regulation and the possibility of tougher controls to prevent similar ructions during periods of volatility. The credit crunch has put the spotlight on banking...

TRENDS: Active tactic cushions in tough times.
October 8, 2007... The crisis in the financial markets prompted a short-lived flight to quality, but performance has quickly recovered - and in the long term, mid caps are offering the best returns. The way in which the stockmarket has bounced back after...

AFTER THE EXCESS: Recovery time.(Interview)
October 8, 2007... Several factors afflicted the marketplace this summer but sub-prime mortgage delinquencies did not cause the malaise. Vanessa Drucker in New York revisits the story and talks to the same experts in aftermath of the credit crunch. Now that...

AFTER THE EXCESS: Glimmers of hope.
October 8, 2007... Mortgage foreclosures (similar to repossessions in Britain) may not be quite as bleak as they are widely painted. The Mortgage Bankers Association reported in mid-September that non-seasonally adjusted American foreclosures have fallen in the...

ANALYSIS: New star soars as British banks fall.
October 8, 2007... New Star Global Financials soared while others plunged - that, says Guy de Blonay, co-manager of the fund, is because he avoided British banks and invested in emerging market institutions. There's an almost tingling perversity about the...

CHANNELS: Boutique has bedside manner wrapped up.
October 8, 2007... Mike Horseman, co-director of Cockburn Lucas, answers this week's questions from Frances Hughes. Q. Can you explain the history and why you decided to set up the company? A. Peter and I had worked together for 10 years at Noble...

AFI: Caution sparks U-turn on high yield.
October 8, 2007... Eight months ago most AFI panellists tipped high-yield bonds to outperform over the next 12 months, but a new sensitivity to risk since the credit crisis has led to a contrasting view. Institutional and retail investors have had to re-assess...

FoFs: New Star takes a shine to Asia again.
October 8, 2007... Asia and natural resources are centre stage once more for the New Star Tactical Portfolio after it reduced exposure to these markets in June on the view that they had "travelled too far". The #76m New Star Tactical Portfolio, launched in...

FOCUS: JPM on the up as it targets top five.
October 8, 2007... After leaping 16 places in the league of British fund groups, JPMorgan is ready to tackle its weakness in home-grown equities to be among the first five next year. Adam Lewis reports. By the end of 2008 JPMorgan Asset Management (JPMAM)...

Fund Manager's Diary: 24-30 September 2007.
October 8, 2007... Tuesday Come into a "red day" in the market with a few more consumer facing businesses reporting tougher trading. Our funds are generally underweight consumer cyclical sectors but we do keep running our models on the stocks to see where...

COMMENT: Inequality is not just an economic matter.
October 15, 2007... Inequality has become one of the burning issues of our age. Even those who have no interest in it from a moral perspective are often concerned about it for practical reasons. They fear that widening inequality could cause unrest that could...

Baillie Gifford set to step up equity income capacity.
October 15, 2007... Baillie Gifford plans to boost its equity income capabilities with the announcement that it has created a dedicated income team. Patrick Edwardson, who manages both the #480m Scottish American Investment Company (Saints) investment trust and...

Gartmore finds replacements for senior posts.
October 15, 2007... Gartmore has appointed replacements for Marcus Brookes, deputy head of multi-manager, and Robin McDonald, who has worked with Brookes at Gartmore for five years. Tony Lanning will replace Brookes and Kate Trowsdale will replace McDonald. They...

IN BRIEF: T Bailey takes on Wise portfolios.(Brief article)
October 15, 2007... T Bailey has taken on the administration and become authorised corporate director of three funds of funds managed by Wise Investment. It is the first time it has offered third-party admin services. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Fidelity adds 15 RLAM funds.(Brief article)
October 15, 2007... Fidelity Funds Network has added 15 RLAM funds to its platform. These include: four bond funds, two income funds, three regional growth funds, a UK growth and strategic growth funds, an index linked gilt fund and a UK equity fund. ...

IN BRIEF: Henderson fund 96% invested.(Brief article)
October 15, 2007... The Henderson Diversified Income fund is almost fully invested after its launch three months ago. John Pattullo and Jenna Barnard, the co- managers, have invested about 96% of the proceeds of the company's initial public offering. The fund,...

IN BRIEF: Skandia launches new global arm.(Brief article)
October 15, 2007... The Skandia Group has launched a new global investment management arm to take over responsibility for combined assets of #60 billion. Skandia Investment Group (SIG) will be responsible for the manufacture and delivery of investment products...

Eaglet trust resigns.
October 15, 2007... Peter Webb, chief executive officer of Unicorn Asset Management, has resigned as director of the Eaglet investment trust. The move follows an announcement from three shareholders that they will put forward "certain resolutions" at the...

Threadneedle unveils plan for bricks and mortar Oeic next year.
October 15, 2007... Threadneedle Investments is planning to launch a global bricks and mortar property Oeic in 2008. David Gasparro, Threadneedle's head of distribution, announced the firm's intentions during a presentation to investors last week. The...

HSBC rises to climate challenge.
October 15, 2007... HSBC Investments will unveil a Climate Change fund on November 9, subject to regulatory approval. The fund will form part of the company's Global Investment Funds (GIF) Sicav. HSBC will also consider bringing its $3 billion (#1.5 billion)...

Darling predicts UK growth of 3% this year.
October 15, 2007... Alistair Darling, the Chancellor, forecast British economic growth of 3% this year in his pre-Budget report. Growth in America and Europe is expected to be 2% and 2.3% respectively. However, the prediction for British growth in 2008 is...

Tax to be simplified for offshore investors.
October 15, 2007... The tax regime for offshore funds was introduced in 1984, but the discussion paper concedes that the fund marketplace has changed significantly since then. In October 2006, the government announced that it would consult with industry to ensure...

IN BRIEF: Two recruited to property team.(Brief article)
October 15, 2007... Schroder Property Investment Management has made two appointments to its property team. Milena Wipplinger joins as product executive to the Global Property Securities fund. Meanwhile, Clara Westlake joins as property product manager in the UK...

IN BRIEF: Cru expands to South Africa.(Brief article)
October 15, 2007... cru Investment Management has expanded into South Africa. cru South Africa, led by Andrew Turnbull and Tony Perkins, will be based in Cape Town. Copyright: Centaur Communications Ltd. and licensors

Indian economy 'could rival the US'.
October 15, 2007... India could rival the economic might of both America and China if it pursues the kind of wide-ranging reforms needed to shore up its annual economic growth to 10%, according to a report from the Organisation for Economic Co-operation and...

IMF warns against overconfidence in global growth run.
October 15, 2007... It would be wrong to be complacent about the recent strong performance of the world economy continuing, according to the International Monetary Fund (IMF). The latest edition of the IMF's twice-yearly World Economic Outlook warns that...

IHT changes to ease burden on middle-income families.
October 15, 2007... Middle England looks set to benefit from changes to the inheritance tax (IHT) legislation, countering the effect of the booming housing market of recent years. Alistair Darling's first Pre-Budget Report as Chancellor, delivered last...

STRATEGY: The commercial bandwagon beckons.
October 15, 2007... The strong performance of British commercial property in recent years leads many investors to believe that it is time to look further afield and tap into the potential of the global market British commercial property has performed...

TRENDS: Revisiting European income funds.
October 15, 2007... After a disastrous 1990s for the European Income portfolio, recent times have seen a bit of a revival. But what can investors do to avoid the mistakes that caused its previous demise? "The Internet - we're not interested in it". This sound...

Q&A: Strong economy makes Asian stocks a good bet.(Interview)
October 15, 2007... Suresh Sadasivan, manager of the Old Mutual Asian Select fund, talks to Adam Lewis Q: You have managed the fund for exactly a year. What changes did you initially make to the portfolio? A: My focus was to make the fund more...

INVESTING IN AFRICA: Into Africa.
October 15, 2007... Suddenly, fund managers are starting to view Africa as a good investment. But can the boom it has enjoyed for several years be sustained? Daniel Ben-Ami reports Here is the good news from Africa. Economic growth has exceeded the global...

INVESTING IN AFRICA: Tapping into the African boom.
October 15, 2007... Several groups have launched funds to take advantage of the booming African economy. Although they are not recommended for those of a nervous disposition, their minimum investments are often low enough to be accessible to ordinary investors....