Fund Strategy articles from September 2008

Fund Strategy archives from September 2008

COMMENT: Fed critic deserves a decent debate.
September 1, 2008... Daniel Ben-Ami, Editor Central bankers are not generally known for having blazing public rows. But the recent annual shindig organised by the Federal Reserve at the mountain resort of Jackson Hole, Wyoming, was an exception. Once the...

Harewood offers capital protection.
September 1, 2008... Harewood Solutions, part of BNP Paribas, is to launch an absolute return-themed structured product this month after a reported growing interest from investors. Ryan Rogowski, the head of Harewood Solutions, says: "The way we put together...

JOHCM launch targets Japan's dividend culture.
September 1, 2008... JO Hambro Capital Management (JOHCM) has launched a Japanese large cap fund, the JOHCM Japan Select. The fund, managed by Scott McGlashan and Ruth Nash, aims for capital appreciation by taking advantage of Japan's emerging dividend culture....

Shareholders approve merger of SGAM funds.
September 1, 2008... Societe Generale Asset Management (SGAM) has merged two of its UK equity funds after approval from shareholders last week. The group's #50m SG UK Concentrated Core fund, managed by David Benson since February 2007, has merged into the...

Absolute return tops list of UK best-sellers.
September 1, 2008... The best-selling net retail sector in July for UK domiciled funds was the Absolute Return sector, according to Investment Management Association (IMA) statistics published last week. The IMA Absolute Return sector was launched at the end...

IN BRIEF: Investec opens third set of plans.(Brief article)
September 1, 2008... Investec Structured Products has launched its third series of plans, which include the next issue of Accumulation plans, Investment plans and an Income plan. It follows the launch in May of Investec's first collection of structured products,...

IN BRIEF: Supermarket for online shoppers.(Brief article)
September 1, 2008... Alliance Trust Savings has launched a fund supermarket with a commission rebate model. Investors can trade in a range of funds alongside investment trusts, equities, exchange traded funds, gilts and corporate bonds. There is a flat #12.50...

IN BRIEF: IMA rejects idea of dual control.(Brief article)
September 1, 2008... The Investment Management Association (IMA) has warned against imposing dual control of the management company's activities in a response to the Committee of European Securities Regulators' (CESR) call for evidence on a management company...

IN BRIEF: Stronger GDP growth helps dollar.(Brief article)
September 1, 2008... The dollar strengthened against the euro at the end of last week, reversing previous declines, as stocks rallied on news of unexpectedly strong American GDP growth in the second quarter. The American economy grew at a revised 3.3% annually,...

Banker savages Fed on credit crunch.
September 1, 2008... Willem H Buiter set the tone of the Federal Reserve's annual symposium at Jackson Hole by submitting a paper attacking the central bank's aggressive growth-focused policies over the past 12 months. In his paper Buiter said although the...

Economist warns of emerging inflation danger.
September 1, 2008... The most likely crisis facing emerging markets is one centred on a failure to control inflation, according to the chief economist at the International Monetary Fund (IMF). Simon Johnson wrote in an article published last week that such a...

Aberdeen unveils plan to change ethical fund.
September 1, 2008... Aberdeen plans to change the investment objective of its #10m Ethical Engagement UK fund. Subject to unitholder approval, it will introduce negative screening on environment, social and governance (ESG) criteria, and change the name of the...

Premier recruits hedge expert to boost results.
September 1, 2008... Premier Asset Management has appointed Chris Wright, a hedge fund specialist from Thames River, to take over management of the #9m Premier Dividend fund from Paul Branigan. Wright joins Premier this week and will aim to improve performance...

STRATEGY: Market will reward calm and patience.
September 1, 2008... Market panics throw up opportunities as, in the aftermath of this crisis, attractive valuations tempt investors to take a punt. The fixed income sector is where managers can trawl for value. History tells us the best long-term investment...

TRENDS: Wake-up call for the rarefied world.
September 1, 2008... The fledgling Absolute Return sector confounds the critics who argue that such funds are not for real players - but despite a short track record such products have delivered downside protection. There is a curious thing that happens in...

REVIEW: Anecdote and rigour clarify debate.
September 1, 2008... Two books straddle the causes and impacts of the credit crunch with, on the one hand, an easy-going, anecdotal approach, and on the other, a masterful, punchy and political analysis. We are more than a year into the credit crunch, and...

Q&A: Solid structure delivers results in downturn.(Interview)
September 1, 2008... Ryan Rogowski of Harewood Solutions, talks to Tomas Hirst about the appeal of structured products. Q: Is there a sufficient level of understanding about structured products by both investors and advisers in Britain or is education a...

TRACK RECORD: Temporary hurdle.
September 1, 2008... China's economic growth is slowing from its previous tremendous pace, while the stockmarket has slumped from its peak last October. But there are signs that it could be due for a bounce back. Sunil Jagtiani reports from Hong Kong. ...

TRACK RECORD: Hong Kong economy.
September 1, 2008... The southern Chinese territory of Hong Kong released surprising figures last month showing its economy shrank in the second quarter of the year. The seasonally adjusted data revealed a 1.4% quarterly contraction over the three months to...

TRACK RECORD: China's slowdown.
September 1, 2008... China is undergoing an "imported soft landing", economists at Morgan Stanley, an investment bank, say in a research note. The country's economy grew at an annual rate of 10.1% in the second quarter, down from 10.6% in the first three months...

ANALYSIS: Biotechs are the secret ingredient.
September 1, 2008... Finsbury Worldwide Pharmaceutical investment trust is pepping up the once forlorn pharma market with smart biotech selections that have pushed its shares up 13.5% over the past year. Pharmaceuticals have been so out of fashion for so long,...

INVESTMENT TRUSTS: Barings trusts bias despite volatility.
September 1, 2008... Baring Emerging Europe performed well in the past 12 months and Martin Majdaniuk, the manager, says the fund's biggest exposure will not change despite Russian market volatility. It was a nerve-wracking summer for Russian equity...

AFI: Absolute favourites straddle indices.
September 1, 2008... All three indices hold several of the same funds, including the BlackRock UK Absolute Alpha and the M&G Global Basics - which is not surprising as they are among the top funds in the industry. As of last season's rebalancing, there are...

FoFs: Equity income supports solid house.
September 1, 2008... The Lawrence House Cautious Managed portfolio is heavily weighted to equity income - but, Alan Stokes, the head of multi-manager, says there is room to exploit stockmarket opportunities. Despite a difficult year for British equity income...

FOCUS: Smooth operator pulls in the punters.
September 1, 2008... Skandia's revamp turned it into a #60 billion streamlined operation with various fund ranges, including the "refreshingly simple" Best Ideas group of funds, writes Abigail Montrose. A major reorganisation of Skandia last November combined...

Fund Manager's Diary: 11-17 August 2008.
September 1, 2008... Monday Alarm at 6.45am - if I am still in bed for the news then we are running late. Coffee on, fire up Bloomberg and scroll through the day's company announcements. It is the usual package of the expected and the unexpected - no disasters...

COMMENT: Fossil fuels vital to future development.
September 8, 2008... Daniel Ben-Ami, Editor It seems virtually all politicians want to present themselves as enemies of "big oil". It is a pity they have forgotten the huge benefits of fossil fuels. One of the less noticed passages of Gordon Brown's...

Matterley trust plan 'growing fast'.
September 8, 2008... Matterley expects to unveil a 130/30 investment trust for Henry Dixon and George Godber by the end of this year. The news coincides with the launch of Undervalued Returns - the firm's first retail open-ended fund. Dixon, the lead...

Axial and RAM merger sparks idea for new name.
September 8, 2008... Resolution Asset Management (RAM) will be renamed Ignis Asset Management in November as part of its merger with Axial Investment Management. Axial is the asset management business of Pearl Group, the British insurer that bought RAM at the...

PSigma quest for value will focus on America.
September 8, 2008... Thomas Becket, the manager of the upcoming PSigma Balanced Managed Fund of Funds, says America offers better value for investors than Europe. As Fund Strategy reported (August 11, 2008), Becket's fund will be launched on September 22 and...

IN BRIEF: Axa bond fund manager resigns.(Brief article)
September 8, 2008... Neil Sutherland has stepped down from managing Axa Investment Management's Sterling Corporate Bond and Cautious Managed funds and resigned from the firm. Sutherland's place on the #135m Corporate Bond fund will be taken by Theo Zemek. who took...

IN BRIEF: Witan hires two for top positions.(Brief article)
September 8, 2008... Witan Investment Trust has confirmed the appointments of Robert Clarke as chief executive officer and Mark Lynam as chief investment officer to replace the outgoing chief executive Jim Horsburgh. Before joining Witan, Clarke was chief...

IN BRIEF: New manager joins Close.(Brief article)
September 8, 2008... Stuart Dyer has been appointed head of UK distribution at Close Investments, covering private client, retail and institutional channels. For the past two years he has been responsible for the Close UK offshore trust and fund administration...

IN BRIEF: OSBR acquires slice of Crosby.(Brief article)
September 8, 2008... Old Broad Street Research (OSBR), an independent investment funds research and consultancy company, has acquired the international funds research and ratings business of Crosby Forsyth. As part of the deal Crosby will gain access to OBSR's...

IMA sectors could include offshore.
September 8, 2008... Steven Brown, the head of wholesale at Principal Global Investors, says a move that would see offshore funds included in the mainstream Investment Management Association (IMA) sectors is "imminent". Brown says the process of bringing these...

Artemis hires manager for change of fund focus.
September 8, 2008... Artemis has appointed Ruth Keattch as a fund manager to its multi-cap team to assist in shifting the emphasis of its #849m UK Special Situations fund from large cap to small and medium cap. The fund, managed by Derek Stuart, a founder...

United Nations points finger at speculators.
September 8, 2008... A United Nations body has joined those who blame speculation for much of the high volatility in commodity prices. The United Nations Conference on Trade and Development (Unctad) acknowledged in a report* published last week that...

STRATEGY: Shattered nerves on borrowed time.
September 8, 2008... The high cost of borrowing hits financial institutions and households causing growth to slow. But a stable housing market and lower rates will restore investors' confidence in equity markets. The prices of commodities - and most...

TRENDS: Timing the call before spreads rise.
September 8, 2008... The downturn hit returns on the European High-Yield Index but the asset class is less volatile on the downside than equities. However, investors should wait before increasing exposure. In the 12 months to the end of July 2008, the European...

Q&A: Metals reflect highs and lows of global activity.(Interview)
September 8, 2008... James Steel, the chief commodities analyst at HSBC in New York, talks to Vanessa Drucker about metal. Q: What has been driving the price of gold and the other precious metals? A: About a dozen factors influence the gold price alone....

BAD PATCH: Sticky situation.
September 8, 2008... Central banks attempted damage limitation to prevent the crisis in the financial markets spilling over into the real economy. But more than one year on the institutions come under fire as policies are tested and found wanting. Tomas Hirst...

BAD PATCH: The three governors.
September 8, 2008... Mervyn King is governor of the Bank of England and is chairman of the Monetary Policy Committee. He was previously deputy governor from 1998 to 2003, and chief economist and executive director from 1991. King was a non-executive director of...

ANAYSIS: Brave souls are not ditching Russia.
September 8, 2008... No need to fear a new Cold War, Robin Geffen of Neptune says. Russia needs the West more than it admits. And a rise in net inflows to his fund shows that small investors may agree. It was May in Moscow. I was with Robin Geffen of Neptune,...

INVESTMENT TRUSTS: BlackRock blitz on Europe paying off.
September 8, 2008... BlackRock took swift action when its Greater European trust started to lag. With a revamped portfolio, a bigger team and a new manager, the trust is narrowing the gap on its benchmark. European equity markets have been going through a...

AFI: Overseas antidote to property gloom.
September 8, 2008... As a survey reveals deepening pessimism over British commercial property, a New Star real estate fund focusing on investments outside Britain has found favour with AFI panellists. The latest quarterly survey from Reita, an organisation...

FOCUS: Neptune wades in with quality haul.
September 8, 2008... Neptune's sector-based research generates results, says Robin Geffen, the managing director - but it is also incentives and team effort that help the boutique flourish. Neal Underwood reports. Boutique fund management groups in particular...

Fund Manager's Diary: 23-29 August 2008.
September 8, 2008... Saturday Today was the first home game for Fulham in the Premiership and it turned out to be a glorious victory against Arsenal - slightly unexpected after losing to Hull a week earlier. This was one of the most satisfying wins I have...

COMMENT: Pragmatism chokes principled policies.
September 15, 2008... Daniel Ben-Ami, Editor Last week marked another tightening of the noose around the neck of the free market. The American government felt obliged to nationalise two institutions, Fannie Mae and Freddie Mac, at the heart of free market...

Structured product provider slams trade association.
September 15, 2008... A structured product provider has called the Investment Management Association's (IMA) warning on the use of such products "thinly veiled provocation". This follows suggestions the IMA's warning ignores the fact almost 10% of funds in...

Thames River makes splash with two launches.
September 15, 2008... Thames River will launch two funds of hedge funds focusing on the Asia- Pacific region and Africa. Both will be launched in the first quarter of 2009, subject to regulatory approval. Ken Kinsey-Quick, the head of multi-manager at Thames...

IN BRIEF: BNP unveils two structured funds.(Brief article)
September 15, 2008... BNP Paribas has announced the launch of Stabiliser and Stabiliser Plus, structured Oeic funds designed for British-based financial advisers. The Stabiliser funds offer investors access to the BNP Paribas Millennium 10 Europe Excess Return...

IN BRIEF: OBSR appoints investment head.(Brief article)
September 15, 2008... Old Broad Street Research (OBSR), an independent investment funds research and consultancy company, has appointed Peter Toogood as director of investment services. Toogood, previously with Crosby Forsyth, will join OBSR at the end of this...

IN BRIEF: Barings fills Asia marketing role.(Brief article)
September 15, 2008... Baring Asset Management has appointed Stanley Yip head of Asia ex Japan within its marketing and communications team. He joined last week and will be based in Hong Kong, reporting to Ian Pascal, head of marketing and communications. Yip will...

IN BRIEF: Environment body chooses Impax.(Brief article)
September 15, 2008... Impax Asset Management has been selected by the Environment Agency as one of three investment management companies to manage global equities for its #1.5 billion Active Pension Fund. Impax underwent a rigorous evaluation process involving...

HSBC poised to join the Mena club.
September 15, 2008... HSBC Global Asset Management is launching a Middle East and North Africa (Mena) fund by the end of October, subject to regulatory approval. Andrea Nannini and his team at Halbis, the active management specialist within HSBC Global Asset...

Boutiques winning more institutional mandates.
September 15, 2008... Two boutique fund groups, Investec and Ashburton, have noted an increase in mandates from pension funds and government-associated investment vehicles. Large pension funds, often seen as lumbering and over-cautious, seem unlikely investors...

NU Asia Pacific fund seeks property profits.
September 15, 2008... Norwich Union (NU) has launched an Asia Pacific fund investing in office, industrial and retail property across Asia and Australasia. The Asia Pacific Property fund, launched last week, is managed by Morley, the British-based asset...

IN BRIEF: New manager for New Star trust.(Brief article)
September 15, 2008... Mark Harris, the head of fund of funds at New Star, has assumed responsibility for the #96m New Star Investment Trust. The investment trust is mainly an investment vehicle for New Star founder John Duffield, who holds 60% of shares, and is...

IN BRIEF: Japan's GDP falls by 0.7%.(Brief article)
September 15, 2008... Japan's GDP contracted by 0.7% in the second quarter, on a quarter-on- quarter basis. The fall was greater than the 0.6% first estimated, and contributed to a year-on-year decline of 3%. This downwards revision was the result of an increased...

IN BRIEF: Investors plan Lehman take-over.(Brief article)
September 15, 2008... A consortium of investors have unveiled possible plans for a take-over bid for Lehman Brothers, an American investment bank. The group comprises Bank of America, which was expected to be considering such a move, JC Flowers and the Chinese...

Speculation prompts detailed report.
September 15, 2008... The American authorities have published figures on commodities futures index trading which are unprecedented in their scope and detail. They were published in a report by the Commodity Futures Trading Commission (CFTC) as part of an...

Walker Crips to soft close fund as it hits #120m.
September 15, 2008... Walker Crips will soft close its UK High Alpha find on October 31 after the fund reached its target size of #100m. The fund, which has reached #120m in assets, will allow existing investors to increase capacity, but after October 31 new...

Sell-off raises spectre of plunging gold price.
September 15, 2008... Gold price falls risk provoking a major sell-off as investor fears of a systematic failure in the banking system ease and inflation concerns are alleviated by a fall in commodity prices. The metal reached a peak of $1,030 an ounce in...

STRATEGY: Bonds sit well on cushion from sales.
September 15, 2008... Banks recoup losses from the welter of writedowns by the sale of assets - bad for equities but good for bond holders. So investors should boost exposure to high-quality financial credit. When Bradford & Bingley raised #400m from its...

TRENDS: Safe and solid but not too exciting.
September 15, 2008... Corporate bonds offer low-risk, steady results over the long term - but spectacular performance is rare and seeing opportunities for superior returns is beyond the skill of most asset allocators. Corporate bonds have not been the easiest...

Q&A: Manager's legacy has perpetual momentum.(Interview)
September 15, 2008... Martin Walker, manager of the Invesco Perpetual UK Growth fund, talks to Adam Lewis. Q: You took over the UK Growth fund in June after Ed Burke stepped down. Did you make any large changes? A: When I took over the fund I stated I...

THE OFF CHANCE: On a roll?
September 15, 2008... The efficient market hypothesis hinges on the notion that financial asset prices adjust so quickly to new information that no excess returns can be earned. So is it just luck that allows investors to beat "efficient markets"? Vanessa Drucker,...

THE OFF CHANCE: A bet against making bets.
September 15, 2008... Randy Kurtz, of RK Investment Advisors in New York, had a moment of revelation when he was a graduate student at Columbia University. Warren Buffett, who was lecturing, told the assembled students that, looking back, he himself only gets about...

ANALYSIS: Renewables energise fidelity fund.
September 15, 2008... Colin Stone, the manager of Fidelity European Opportunities, invests in solar power, which he says promises sizzling returns. He also favours healthcare and internet businesses. Fidelity sent five analysts from both Boston and London to a...

INVESTMENT TRUSTS: F&C reaps rewards of macro moves.
September 15, 2008... Peter Ewins, the manager of F&C Global Smaller Companies, boosted exposure to America, cut weighting to Britain and outsourced its Japanese stocks - moves that have paid off so far. Over the past six months the #184m F&C Global Smaller...

AFI: Wary investors start to look abroad.
September 15, 2008... British investors remain wary of offshore-domiciled funds but fund supermarkets are boosting access and the Investment Management Association is set to include them in its onshore sectors. Britain remains a small market for...

FoFs: Fund of funds performance data.
September 15, 2008... Over the past 12 months to September 8, every fund in the regional sectors (fund of funds only) produced a negative return. The best return over the period was generated by the Skandia Investment Management (IM) Far East Equity Blend fund,...

FOCUS: Principal dances on to a new stage.
September 15, 2008... Principal Global Investors has reinvented itself for its first forays into the British retail market, where the key to its success is likely to be how different its offerings are, writes Tomas Hirst. Principal Global Investors has...

COMMENT: Bad timing exposes vagaries of market.
September 22, 2008... Adam Lewis, deputy editor "130/30 funds are typical bull market funds." So said one IFA last year as every British fund management group with some kind of shorting experience seemed to be launching the latest concept. This prophetic...

Fund managers reassure investors over Lehman links.
September 22, 2008... Asset management groups rushed to reassure investors last week as the collapse of Lehman Brothers investment bank stoked fresh doubts over the safety of their investments. In the wake of the collapse, two F&C money market funds had their...

FSA 'ready' to extend ban beyond financial sector.
September 22, 2008... The financial industry's watchdog made good on its threats to deal with the problem of short-selling financial stocks by imposing a temporary ban on the practice. The Financial Services Authority (FSA) said in a statement that active...

IN BRIEF: Fed lends funds to central banks.(Brief article)
September 22, 2008... America's Federal Reserve has made $180 billion (#99 billion) available to the Bank of England, the European Central Bank, the Bank of Japan, the Swiss National Bank and the Bank of Canada. The $40 billion being made available to the Bank of...

IN BRIEF: Allianz fund in link to Axa range.(Brief article)
September 22, 2008... Allianz Global Investors has made its Allianz RCM Bric Stars fund available to investors as a life link to the Axa Wealth Management range. The fund's aim is to achieve long-term capital growth by investing predominantly in the equity markets...

IN BRIEF: S&P gives LVAM funds A ratings.(Brief article)
September 22, 2008... LV= Asset Management (LVAM), the fund management arm of mutual insurance and investment group LV=, has received a Standard & Poor's rating for two of its multi manager funds. The LV= Balanced Managed Fund and LV= Stockmarket Fund were both...

IN BRIEF: Barings opens office in Seoul.(Brief article)
September 22, 2008... Baring Asset Management has expanded into Korea with the opening of a sales office in Seoul. The move coincides with the appointment of InJun Jung as head of sales, client services and business development for Korea, who will report to Gerry...

Speculation over Swip and Insight.
September 22, 2008... The futures of Scottish Widows Investment Partnership (Swip) and Insight Investment were in question last week. Speculation grew that the two firms are set to be merged following the proposed acquisition of HBOS by Lloyds TSB. Combining the...

JPM taps into emerging markets infrastructure.
September 22, 2008... JP Morgan has launched an Emerging Markets Infrastructure fund. The new fund, soft-launched last week, is an open-ended investment company (Oeic) version of a Sicav, the JPM Emerging Markets Infrastructure Equity fund. Managed by Leon...

F&C adds income to European objective.
September 22, 2008... The #200m F&C European fund will pursue income generation as well as medium to long-term growth from next month in a move that will also involve a change of name. The fund, which was launched in November 1988 with the exclusive objective...

IN BRIEF: Fidelity launches Platform website.(Brief article)
September 22, 2008... Fidelity Funds-Network has launched a Platform for Learning website designed to complement all aspects of the bespoke training and development programme it introduced earlier this year. The site is designed to be an "information hub" detailing...