Fund Strategy articles from September 2007

Fund Strategy archives from September 2007

COMMENT: Diversification key for African growth.
September 3, 2007... Africans are typically seen in one of two ways in the Western imagination: they are either monsters or victims. The rulers of African countries are often portrayed as monsters who pillage their countries for their own greedy ends. In contrast,...

DDQ Oeic is cleared for sale in UK.
September 3, 2007... Dawnay Day Quantum (DDQ) has gained UK distributor status for its #19.1m UK Absolute Income fund. The Dublin-domiciled Ucits III Oeic has obtained authorisation from the Financial Services Authority allowing it to be sold in Britain, but having...

NU Property Investment back on offer basis.
September 3, 2007... Norwich Union moved its #400m Property Investment fund back to an offer (maximum) pricing basis last week, having spent the past month and a half on bid (minimum) basis. On July 10-11, both this fund and the #4.4 billion Norwich Property...

New York manager for PSigma American fund.
September 3, 2007... PSigma has appointed James Abate, a former Credit Suisse manager, to run a proposed American larger companies fund on a sub-advisory basis. PSigma American Growth will be managed under a sub-advisory agreement by Centre Asset Management,...

IN BRIEF: Close integrates three businesses.(Brief article)
September 3, 2007... Close Brothers has integrated three private client businesses under the Close Wealth Management Group brand. The group, which manages more than #3.1billion and administers #8billion in assets, includes the businesses of Close Private Asset...

IN BRIEF: New manager for Axa gilts fund.(Brief article)
September 3, 2007... Philip Chow has taken over as manager on the #12m Axa Framlington Gilt fund. Chow replaces Denis Gould, who remains as head of fixed income at Axa Investment Managers. Chow was director of fixed income at F&C. Copyright: Centaur...

IN BRIEF: Close appoints head of research.(Brief article)
September 3, 2007... Close Investments has appointed Maria Grubmueller to its property team as head of research. She will be responsible for the analysis of international real estate markets. Grubmueller was an analyst at Prupim, from January 2006 to June 2007....

IN BRIEF: Witan asset value increased by 6.3%.(Brief article)
September 3, 2007... The Witan Investment Trust has announced its half-year results. Net asset value increased by 6.3% in the six months ending June 30, while the share price rose by 8.1%. The dividend grew by 5.1% to 4.1 pence per ordinary share. The trust's board...

IN BRIEF: City of London Revenue up 13%.(Brief article)
September 3, 2007... The City of London Investment Trust announced its year-end results for June 30, 2007. Revenue return per share increased by 13.9%. A fourth interim dividend, paid on August 31, made a total for the year of 10.3 pence, an increase of 10% over...

Shareholders back Premier buy-out.
September 3, 2007... Shareholders have backed a management buyout (MBO) at Premier Asset Management, after rejecting the proposals last month. Investors including Unicorn Asset Management and Water Hall succeeded in delaying the move, but Harvard Bidco, the holding...

Monthly property fund inflows plunge by 69%.
September 3, 2007... Net retail inflows into property funds fell 69% in July, according to monthly statistics from the Investment Management Association (IMA), dropping from #303m in June to #94m the following month. Over the past 18 months property funds have...

Managers switched in Threadneedle's Latin America reshuffle.
September 3, 2007... Threadneedle has swapped the lead and deputy managers on its #950m Latin America fund. Katy Dobson steps up from her role as deputy manager, allowing Jules Mort to focus on running institutional money. Dobson, who took on the Latin America...

IN BRIEF: Standard Life to restructure SLIPE.(Brief article)
September 3, 2007... Standard Life will restructure its private equity division, by transferring the business carried out by Standard Life Investments Private Equity (SLIPE) to SL Capital Partners, a limited liability partnership (LLP). Nine members of SLIPE's...

IN BRIEF: Managers gear up for roadshows.(Brief article)
September 3, 2007... Threadneedle, Thames River Capital, UBS Global Asset Management, Old Mutual Asset Managers and BlackRock Merril Lynch Investment Managers will conduct a series of roadshows from September 24-28. The seminars will include presentations, and...

New multi-manager chief for Abbey.
September 3, 2007... Santander Asset Management (AM) has appointed Estrella Llorente as senior portfolio manager to take over the day-to-day running of Abbey's multi-manager portfolios. Her appointment is part of the group's plan to develop a global research...

First State raises fees on Asia Pacific and China Growth funds.
September 3, 2007... First State is increasing the annual management charges (AMC) on its #878m Asia Pacific and #183m Greater China Growth funds, managed by Angus Tulloch and Martin Lau. From October 29, the AMCs will increase from 1.5% to 1.75% on the A...

Why fund managers are right to take heart over Africa.
September 3, 2007... Fund groups seem to be taking Africa seriously at last. New Star recently let it be known that it is seeking regulatory approval for a Heart of Africa fund, which will be available to retail investors (Fund Strategy 20 August 2007, page 7). A...

STRATEGY: Emerging markets weather sell-off.
September 3, 2007... Steady outperformance by emerging markets has led to a re-rating of their valuations against the developed countries. But buying opportunities should emerge once the credit markets settle. In recent weeks we have witnessed a continuation of...

STRATEGY: Carbon markets offer opportunities.
September 3, 2007... Investment opportunities in global carbon markets have soared since the environmental agenda took off and the European Union Emissions Trading Scheme became law in 2003. Carbon markets and emissions trading arrived on the investor's...

Q&A: Confident about future of burgeoning sector.(Interview)
September 3, 2007... Peter Meany, head of infrastructure securities at Colonial First State Global, talks to Frances Hughes. Q: When is the Global Listed Infrastructure fund launching? A: Since June 1, we have been running a global infrastructure fund as...

GOOD OFFICES: Mixed forecast.
September 3, 2007... Britain's commercial property sector hit a stormy patch at the beginning of the year and returns have dipped since - so some investors are looking overseas. Can the sector weather the storm in the long term? Adam Lewis reports. On the face...

GOOD OFFICES: International property markets.
September 3, 2007... As the returns available from British commercial property have fallen since the start of the year, investors have begun to look at international commercial property as a way of maintaining high returns in the asset class. Evidence of this...

GOOD OFFICES: The fund of funds view.
September 3, 2007... Alan Stokes, head of multi-manager funds at Lawrence House Stokes says he has never been a big holder of UK commercial property funds, but he does hold the Legal & General Property unit trust in the Lawrence House Cautious Managed fund....

ANALYSIS: Time to pay attention to the children.
September 3, 2007... School beckons for the first child trust fund holders and, so far, stakeholder equity CTFs are soaring ahead of cash-based funds. But few advisers are yet building a presence in the market. In the national newspaper money sections it's the...

CHANNELS: Firm grows in harmony with music and sport.
September 3, 2007... Paul Beard, chief executive of the advisory firm Alexander Beard, is questioned by Will Jackson. Q: What is the history of Alexander Beard? A: I founded the business in 1987 and it was exclusively an IFA for the music and...

AFI: Investors lose appetite for trackers.
September 3, 2007... Investors have become wary of index tracking funds, which were once popular, and are looking instead to actively managed funds that consistently outperform the benchmark.Liontrust says investors' appetites for index tracking funds are waning....

FoFs: Gartmore keeps faith with equities.
September 3, 2007... Marcus Brookes, deputy head of the firm's multi-manager range, remains positive on equities despite the stockmarket turmoil, but is underweight in bonds, which he says are "over-valued".Gartmore's MultiManager Balanced fund remains...

FOCUS: Wide resources at close quarters.
September 3, 2007... Once they were seven, now they are one - and it seems that clients approve. Close Investments can now offer a range of investment products under one roof, reports Neal Underwood. Over the past two years Close's asset management businesses...

Fund Manager's Diary: 6-12 August 2007.
September 3, 2007... Monday Friday's markets were down 2.66% so today's open is closely watched. The financials and the home builders continue to come under pressure as fears of a credit crunch gather momentum. It is a volatile day as rumours abound about who...

COMMENT: Global growth beats credit crunch story.
September 10, 2007... In the midst of the anxiety about a global credit crunch it is worth dwelling on some good news. The gap between the developed countries and the developing world has narrowed significantly thanks to rapid economic growth. In the long term...

Liontrust looks at new hedge foray.
September 10, 2007... Some two-and-a-half years after the closure of the Liontrust Absolute Return hedge fund, Jeremy Lang may manage a new hedge fund within one year. In February 2005 Liontrust took the decision to close Lang's first foray into hedge only...

Standard Bank adds to offshore Strategist range.
September 10, 2007... Standard Bank has expanded its Jersey-domiciled Strategist range with the soft-launch of an Alternative Strategies fund of funds. The portfolio, which it has run since July, invests in single manager and multi-manager hedge funds. The...

Martin Currie plans unconstrained North America portfolio.
September 10, 2007... Martin Currie will launch a North American Alpha portfolio on November 19, subject to regulatory approval. The fund will be run by Tom Walker, manager of the firm's #140m North American Oeic. North American Alpha will hold a more...

IN BRIEF: Fidelity's retail head to step down.(Brief article)
September 10, 2007... Richard Wastcoat will step down from his role as head of Fidelity International's UK retail business at the end of this month. Over the past 10 years he has overseen the launch of FundsNetwork and the firm's Indian mutual fund business....

IN BRIEF: Threadneedle manager resigns.(Brief article)
September 10, 2007... Bill Barker, manager of Threadneedle's #170m UK Smaller Companies fund, has resigned from the firm. Barker will join Pictet Asset Management to run institutional money. Threadneedle has promoted Dan Vaughan to head of UK smaller companies...

IN BRIEF: Polar to reunite former colleagues.(Brief article)
September 10, 2007... Polar Capital has hired Nick Evans as a senior fund manager in its technology team. As reported in Fund Strategy on June 18, Evans left Axa Framlington in July. The #60m Axa Framlington Global Technology fund is now controlled by Jeremy...

IN BRIEF: Charge discount deal on new fund.(Brief article)
September 10, 2007... Credit Suisse is offering a full initial charge discount on its Multi- Manager Multi Asset Distribution fund, which was launched last week. The offer is available until December 31 and from most platforms, including Cofunds, Skandia and...

Skandia to launch long/short fund.
September 10, 2007... Skandia Investment Management has confirmed that it will launch a UK Strategic Best Ideas fund, next week. As revealed in Fund Strategy on August 13, the fund will follow the structure employed on the firm's UK Best Ideas and Global Best...

Resolution to open European funds.
September 10, 2007... Resolution Asset Management is launching two European funds. The Resolution International Pan-European fund and the ResolutionAsset European Smaller Companies fund will be launched next month. The pan-European fund is to be managed by...

Thames River unveils first five multi-managers.
September 10, 2007... Thames River has unveiled the first five multi-manager funds to be managed by Rob Burdett and Gary Potter. The two managers finally joined Thames River in August and the five initial funds are described as the group's core offering. ...

IN BRIEF: Development head for Assetz.(Brief article)
September 10, 2007... Assetz, a specialist property investment firm, has appointed Patrick Seed as development director. Seed joins the group from a property development company. Seed will be taking on the new role with Assetz Fund Management and the rest of the...

IN BRIEF: New HSBC funds.(Brief article)
September 10, 2007... HSBC Investments has launched two capital secured funds within its new Foundation range. The Healthcare Bonus fund and the Bric Growth fund were launched. Copyright: Centaur Communications Ltd. and licensors

Communications chief resigns over 'changes'.
September 10, 2007... Justin Modray has left Bestinvest because of concerns over the direction the company is taking under its new chief executive officer, Andrew Barnes. Modray, who was head of communications at the group, says he has been unhappy with...

Henderson in 15% Pacific sell-off.
September 10, 2007... The #296m Henderson TR Pacific investment trust liquidated 15% of its portfolio in July. The sell-off was part of a strategy to position the trust more defensively. Andrew Beal, portfolio manager, has been taking steps to defend it from...

T Bailey to announce UK Best Ideas holdings.
September 10, 2007... T Bailey is set to announce some of the initial holdings in its UK Best Ideas fund of funds this week. Jason Britton, co-manager of the portfolio, says the list will be finalised closer to launch but confirms that Saracen Growth is a likely...

Turmoil leads managers to shelve use of wider powers.
September 10, 2007... As the credit crunch hits markets, and some hedge fund managers have taken a battering on short positions, several Ucits III equity funds have shelved plans to make full use of their wider investment powers. In February all funds in...

STRATEGY: Slowdown harbours potential risks.
September 10, 2007... The American slowdown has prompted some commentators to predict that dented consumer confidence can trigger a recession, which has serious implications for the global economy. Over the past year output growth in America has slowed from...

TRENDS: Outlook for bond funds brightens.
September 10, 2007... If the market turmoil has reached the end of its cycle the forecast for bond funds will improve - but performance can be inconsistent so investors should choose their manager carefully. There really has been just one story in town this...

Q&A: Global player adopts a sterling approach.(Interview)(Company overview)
September 10, 2007... Alistair Morrison, the senior managing director at Natixis Global Associates UK, talks to Will Jackson. Q: Natixis has introduced sterling share classes on several Luxembourg and Dublin-domiciled funds. Why has the firm decided to do...

CRITICAL MOMENT: Bursting point.
September 10, 2007... Rising interest rates and escalating debt forced the dam to crack at its weakest point - in this case, the subprime mortgage market - and further volatility in this cycle cannot be ruled out. Neal Underwood assesses the damage. Over the...

CRITICAL MOMENT: The Vix index.
September 10, 2007... The Vix index is the Chicago Board Options Exchange Volatility index, a measure of the implied volatility of S&P 500 index options. It represents one measure of the market's expectation of volatility over the next 30-day period. Introduced in...

ANALYSIS: Timing makes most of credit crunch.
September 10, 2007... Bill Mott, manager of the PSigma Income fund, relishes the buying opportunities offered by the August turmoil - especially giant companies, which were as unloved as they were in 2000. Michael Page International, a recruitment agency, had a...

REVIEW: Fantasists spawn nightmare vision.
September 10, 2007... Larry Elliott and Dan Atkinson lambast New Labour for its contradictory stances and failure to curb consumption - but the authors deliver an even bleaker and more limited vision of the future. Larry Elliott and Dan Atkinson see Tony Blair...

AFI: European revival attracts investors.
September 10, 2007... A strong German economy and enlargement of the EU will boost investor confidence and most panellists expect the Europe excluding UK sector to be a top performer over the next 12 months. In last month's Adviser Fund Index (AFI) survey,...

FoFs: Alternatives boost fund performance.
September 10, 2007... The Schroder Multi-Manager Cautious Managed Portfolio has performed well over the past year - thanks to an allocation to alternative asset classes and an overweight stance in equities. Andrew Yeadon, head of multi-manager at Schroder, says...

FOCUS: New process the pride of liontrust.
September 10, 2007... Liontrust has enjoyed a successful start to its European investment process - the cashflow solution - which is based on behavioural psychology. Adam Lewis explains how it works. Jonathan Harbottle, marketing director at Liontrust, is so...

Fund Manager's Diary: 20-26 August 2007.
September 10, 2007... Monday My week revolves around regular meetings with my team to discuss investment views and more ad hoc meetings with company management teams to help form those views. The weekly cycle begins with the team's daily morning meeting at...

COMMENT: Star status points to excessive caution.
September 17, 2007... Multi-managers often liken themselves to international football managers. Why choose all your funds from one team, they ask, when you could choose the best players from a large number of teams. No England manager would just choose players...

2CG to run new PSigma portfolio.
September 17, 2007... PSigma Asset Management is to add to its range of British retail funds with the launch of a European Income fund. The group plans a November launch, with the management outsourced to 2CG. 2CG, founded by Charles Glasse and Chris Garsten,...

Seven switch in fund of funds merry-go-round.
September 17, 2007... Gartmore, Cazenove and Scottish Widows Investment Partnership (Swip) were at the heart of a fund of funds manager swap-round last week. Marcus Brookes, deputy head of multi-manager at Gartmore, is to leave the group next March to become...

Search for a buyer as Forsyth Partners goes into administration.
September 17, 2007... Forsyth Partners, a fund research company and fund of funds manager, has been placed in administration and dealing in its 39 funds has been suspended. Grant Thornton, the administrator, is trying to secure a sale for the company, which...

IN BRIEF: BlackRock offers new fund in UK.(Brief article)
September 17, 2007... BlackRock plans to make a European 130/30 fund that it registered for sale in Luxembourg at the end of August available to British investors early next year. The BlackRock Strategic Fund (BSF) European Special Situations Extension fund is...

IN BRIEF: Cofunds opens to fee-based advisers.(Brief article)
September 17, 2007... Cofunds has announced a series of initiatives to enhance and change the services it offers to financial advisers. At present the funds platform caters only for commission-based advisers. However, by introducing several new cash products it...

IN BRIEF: Currie boosts Asia-Pacific team.(Brief article)
September 17, 2007... Martin Currie has announced the appointment of Brian Canavan to its Asia-Pacific team. Canavan joins the group from Deutsche Bank in Hong Kong this week. Canavan will oversee the quality of the Martin Currie team's research and support the...

IN BRIEF: UBS enhances British retail team.(Brief article)
September 17, 2007... UBS Global Asset Management has hired James Bampton from Fidelity International to expand its British retail sales team. Bampton, who spent 10 years at Fidelity, joins UBS as head of nationals and networks and will have responsibility for the...

Standard Life set for ethical launch.
September 17, 2007... Standard Life Investments will unveil a European Equity Ethical fund next week. The fund will be run by Stuart Fraser, lead manager on the firm's #70m European Equity Growth portfolio. Fraser has run the ethical fund as a pension mandate for...

Omam fund manager leaving to rejoin Morley.
September 17, 2007... Chris Higham, joint manager of the #55m Old Mutual Dynamic Bond fund, is to rejoin Morley, a group he left in June 2005. Higham will take up a post at the firm in November to work with Roger Webb and Dominic White, although Morley has not...

Iimia-Miton will retain established funds.
September 17, 2007... MitonOptimal and iimia Investment Group plan to retain their open and closed-ended multi-manager funds after their integration. iimia is to pay #18.6m for at least 95% of MitonOptimal. This will be in the form of iimia shares and #1.9m in...

IN BRIEF: New classification system for VCTs.(Brief article)
September 17, 2007... The Association of Investment Companies (AIC) has introduced a new classification system for venture capital trusts (VCTs). It has created six new sub-sectors that expand on the current Specialist and Generalist categories. It also...

Launches widen routes into Africa for retail investors.
September 17, 2007... Investment in Africa is becoming ever more accessible to the retail market. Last week three more groups announced the launches of funds that are within reach of private investors. Charlemagne Capital, a specialist emerging markets fund...

UBS backs financials to provide value opportunities.
September 17, 2007... Simon Foster, capability manager for the UBS Corporate Bond UK Plus fund, says that six months on from its launch the fund is positioned to be overweight in bonds issued by financial companies. This is because the UBS fixed income team thinks...

IN BRIEF: European head appointed at F&C.(Brief article)
September 17, 2007... F&C has appointed Paras Anand to the newly-created role of head of European equities. He will join the group next month from his present position as director of European equities at Deutsche Asset Management in New York. Anand will report to...

STRATEGY: How crises can trim hedge returns.
September 17, 2007... Recent events have shown that sudden reversals in investors' appetite for risk can affect both stocks and hedge funds, suggesting that asset markets are more interlinked than many thought. The events of August 2007 have shown that asset...

TRENDS: Puzzle over multi-manager inquiry.
September 17, 2007... The benefits of multi-manager for investor and IFA alike are self- evident, so why has the FSA decided to investigate adviser sales of funds of funds run by recently moved managers? The Financial Services Authority (FSA) is reported to be...

Q&A: New America route to put zip into long haul.(Interview)
September 17, 2007... Tom Walker, the global product manager of Martin Currie, briefs Will Jackson on the firm's new fund. Q: Your new fund, North American Alpha, is set to launch in November [subject to regulatory approval]. How will it differ from your core...

PULLING TOGETHER: In full stroke.
September 17, 2007... The multi-manager sector has swelled over the past decade and now even Britain's high street banks and insurers are on board. But does performance merit the high charges? Paul Farrow compares the sector with other products. A decade...

ANALYSIS: Firm puts trust in small companies.
September 17, 2007... Mike Prentis of Merrill Lynch shrugs off fears about subprime contagion and says his holdings in small British engineering firms are flourishing as demand from emerging markets soars. Crisis? What crisis? In the last 10 days alone Mike...

CHANNELS: Thinc builds for future under Axa umbrella.
September 17, 2007... Ian Shipway, the investment director at Thinc, answers this week's questions from Simon Hildrey. Q: Why did Axa acquire Thinc in November 2006? A: Buying Thinc was a strategic investment. In other countries, Axa has seen the way...

AFI: Home advantage emerging as key.
September 17, 2007... The development of domestic economies and trade that does not rely on America is being seen as an important factor in the resilience of emerging markets to the global credit crunch. Emerging markets showed some initial resilience to the...

FoFs: Insight boosts European exposure.
September 17, 2007... Insight's Patrick Armstrong is cautious on equities because of market turmoil and shores up his fund with a stake in BlackRock UK Absolute Alpha, which aims for growth in all conditions. Patrick Armstrong, co-manager of Insight...

FOCUS: New talent flies into Jupiter's orbit.
September 17, 2007... The prospect of equity ownership at Jupiter has proved a magnet for managers as the group continues to ride high in the performance tables after completing its management buyout. In the 12 months since Fund Strategy last profiled Jupiter,...

Fund Manager's Diary: 3-10 September 2007.
September 17, 2007... Monday At least August is over. Pleased to see the Asian stockmarkets opening a tad higher than last Friday, although they quickly lose steam soon after. HSBC announces a bid for 51% of Korea Exchange Bank after the market closes. I make the...

COMMENT: Infrastructure helps build new ethics.
September 24, 2007... Infrastructure funds seem to be the latest fad. As Cherry Reynard reports in this week's cover story (see page 25) several groups have set up such portfolios. Two key trends seem to be driving the surge in infrastructure investment....

HSBC to unveil global property fund.
September 24, 2007... HSBC Investments is set to unveil a retail property portfolio as part of its OpenFunds range. The firm declined to comment, but Fund Strategy understands that HSBC Open Global Property will be launched at the end of November, subject to...