Investment Adviser articles from December 2007

Investment Adviser archives from December 2007

Battle for Witan UK Mainstream to erupt.
December 3, 2007... Byline: Henderson will cease managing the mandate early next year, leaving it up for grabs A pitching battle is about to erupt for Witan Investment Trust's AGBP600m UK Mainstream mandate, with Jupiter, Neptune and Artemis all named as...

Hedge funds work to derail Virgin Rock bid.
December 3, 2007... Byline: Beleaguered bank's biggest shareholders reportedly in favour of Olivant rescue plan Virgin's bid to buy Northern Rock has come up against serious opposition from the mortgage lender's two largest shareholders, which called last...

T Bailey Growth switches focus to Uncle Sam.
December 3, 2007... Multi-manager specialist T Bailey has made a significant sector call in favour of the US, moving exposure away from emerging markets and into North America. Fund managers Jason Britton and Richard Martin have ramped up US exposure to 15.2...

M&G tips recession in the US.
December 3, 2007... M&G Investments' Richard Woolnough is defensively positioning his portfolios in anticipation of further trouble in the US housing market. The manager of the AGBP1.1bn Corporate Bond and AGBP116.6m Optimal Income funds, said signs pointed...

Tyndall quits post on SLI trust board.
December 3, 2007... Artemis founder Mark Tyndall has resigned from the board of the Standard Life AGBP383.3m European Private Equity trust. Mr Tyndall, who cited increased demands from his principle business interest as his reason for quitting the post, will...

Utilico to issue C shares on its Emerging Markets trust.
December 3, 2007... Utilico plans to tap into the UK retail market by issuing C shares for its AGBP329m Emerging Markets trust on the Channel Islands Stock Exchange. On 23 November the firm wrote to investors about offering up to 100m new shares. Utilico...

Make hay while rain falls, says Resolution.
December 3, 2007... Byline: Smaller Companies fund manager says sector volatility is creating buy opportunities Retail sales of Resolution Asset Management's AGBP121.3m Smaller Companies fund have faltered alongside falling investor interest in the sector....

IFAs rush to build their Fantasy funds.
December 3, 2007... An incredible 2350 intermediaries have already entered the Fantasy Fund Manager competition, to be held by JPMorgan Asset Management in association with Investment Adviser. The trading will kick off on 17 December and registrations will be...

Pictet Luxembourg funds gain UK distributor status.
December 3, 2007... Pictet Funds has clinched UK distributor status for its Luxembourg-domiciled product range. UK investors will now be able to access the funds with improved tax rates. The move is part of Pictet's wider shift towards the UK retail...

L&G trims excess fat from European fund.
December 3, 2007... Byline: Group transforms diluted European fund into streamlined, high conviction portfolio Legal & General Investment Management has finished restructuring its AGBP120m European trust. The overhaul has seen the portfolio transformed...

FSA warns of web promotion failings.
December 3, 2007... One in four IFA firms could be using unfair or unclear information on their promotional websites, the FSA has warned. Although most websites met the FSA's financial promotions requirements, the remaining quarter were difficult for consumers...

Invesco adds to European range despite performance.
December 3, 2007... Invesco Perpetual has come under fire for adding two new funds to its underperforming European range. The European alpha and emerging Europe funds are scheduled to go live on 12 December. However, Meera Patel, senior analyst at...

IMS unveils plan to launch hybrid portfolios platform.
December 3, 2007... Multi-manager specialist Investment Manager Selection is to launch a platform to run hybrid portfolios, a combination of manager of manager and fund of funds products. The platform will provide facilities for daily dealing and pricing on...

F&C manager looks to China consumers.
December 3, 2007... Byline: European Dynamic fund manager seeks exposure to China through European firms European investors seeking opportunities in China should avoid the capital goods market and embrace the domestic consumer sector, according to F&C...

City's standing hit by Northern Rock.
December 3, 2007... London's standing as a financial centre has been damaged by the Northern Rock crisis, according to a City commentator. Sir David Walker, a senior adviser at Morgan Stanley and a former chair of the Securities and Investments Board, said the...

Maia looks to Far East for investment opportunities.
December 3, 2007... Resolution Asset Management boutique Maia Capital is looking to the Far East for opportunities following its initial round of investments. Chris Ralph, partner at Maia, said he and co-manager Jason Collins would be travelling to Hong Kong...

Reporting changes to show UK dominance.
December 3, 2007... Byline: Euroclear says Mifid will reveal the amount of foreign business executed in London The UK's dominance of European trading activity is likely to be more evident in the wake of new transaction reporting procedures. On 1 November,...

Arc Growth to seek AGBP7.5m in share issue.
December 3, 2007... The Arc Growth Company VCT hopes to raise a further AGBP7.5m through a new C share issue. The trust mainly invests in small unquoted companies with the aim of achieving a gain through a trade sale, IPO listing or other suitable exit. ...

Market recovering but not out of the woods: New Star.
December 3, 2007... The market in Europe is recovering from recent turmoil, but investors should remain cautious as valuations are still relatively high, according to New Star Asset Management. Nick Sheridan, manager of the AGBP33m New Star European Value...

Credit Suisse appoints Bhogaita.
December 3, 2007... Credit Suisse Asset management has strengthened its UK Equity Income team with the appointment of Mira Bhogaita as assistant vice president and an equity portfolio manager. Further moves to restructure its range of UK equity income funds...

IMA has no plans to expel yield offenders.
December 3, 2007... The IMA will not be immediately expelling any yield offenders from its Equity Income sector after its committee review in January. Mona Patel, spokeswoman for the IMA, confirmed the body would look closely at funds not complying with the...

Aifa issues further guide on compensation scheme.
December 3, 2007... The Association of Independent Financial Advisers has issued extra guidance to its members regarding the financial services compensation scheme. The move comes after the FSA requested updated income streams based on their different...

New Star plans India fund.
December 3, 2007... New Star Asset Management is seeking FSA approval for a new India fund. The firm is entering into a partnership with Bombay-based firm Tata Asset Management, a subdivision of Tata Group, which is a major hub for investment in the region....

Income strong in new Europe.
December 3, 2007... Byline: JPMAM says emerging Europe is excellent source of income Emerging Europe offers key opportunities for income investors, according to JPMorgan Asset Management. Oleg Biryulyov, manager of the AGBP156.7m JPMorgan New Europe fund,...

ETF Securities ETCs hit LSE.
December 3, 2007... ETF Securities is launching four new exchange-traded commodities on the London Stock Exchange. The group said the products would give investors access to commodity futures prices linked to the DowJones The new forward ETCs will track...

Killick identifies attractive investment trusts for medium to long-term buys.
December 3, 2007... Widening discounts are making some investment trusts attractive on a 12-18 month view, according to Killick & Co. Mick Gilligan, head of fund research at Killick, cited the AGBP136.3m RAB Special Situations, AGBP183.8m Schroder Oriental...

Shareholders to lose in Premier wind-up.
December 3, 2007... Byline: Premier UK Dual Return's capital and income shareholders likely to lose initial investment Thousands of shareholders will receive nothing when the AGBP21.9m Premier UK Dual Return trust winds up this month, one of Premier's...

BFS Investments in default: FSCS.
December 3, 2007... A second fund house has been declared in default by the Financial Services Compensation Scheme over the split-caps crisis. The FSCS has claimed BFS Investments would be unable to pay compensation claims against it, and is offering up to...

Graphite sells 25 per cent of its FTSE100 call option.
December 3, 2007... Private equity vehicle the AGBP376.7m Graphite Enterprise Trust has sold 25 per cent of its FTSE100 call option to free up AGBP7.6m cash. The company has now sold half of the option, which was originally bought in October 2005. William...

US rate cuts will benefit Asia.
December 3, 2007... Emerging Asian markets will be the prime beneficiaries of US interest rate cuts next year, according to the manager of Old Mutual's AGBP84.7m Asian Select Fund. Suresh Sadasivan said further reductions in Fed rates will lead to an...

Utilities set to be final M&A refuge.
December 3, 2007... Byline: RLAM manager says infrastructure funds looking to deploy cash Utility companies are likely to be the final refuge of merger and acquisition activity, as infrastructure funds look to deploy their cash, according to Royal London...

SLI investment trust chairman warns of slowdown in European equity activity.
December 3, 2007... The credit crunch is likely to lead to a slowdown in European private equity activity, the chairman of the AGBP368.8m Standard Life European Private Equity Trust has claimed. The investment trust saw its share price increase by 23.4 per...

Henderson predicts 2008 rally for bonds.
December 3, 2007... Byline: Fund manager optimistic about loosening monetary policy and widening spreads Bonds are set to outstrip cash over the next year, according to Henderson Global Investors. Just over a year ago, John Pattullo, director of fixed...

CSAM goes global with new fund.
December 3, 2007... Byline: Credit Suisse Asset Management plans to launch new global equity income fund next year, to be managed by Graham Ashby Credit Suisse Asset Management has confirmed it plans to launch a new global equity income fund next year. ...

New team creates IQ Capital Partners.
December 3, 2007... A number of Cambridge-based fund managers and venture capital specialists have teamed up to launch IQ Capital Partners. IQCP will provide funding for start-ups and emerging UK companies from AGBP100,000 up to AGBP3m and will work closely...

Study shows UK investor activity is at record high.
December 3, 2007... Investor activity in the UK reached an all-time high this year, despite a recent slump in confidence. A TD Waterhouse study found 81 per cent of investors had exposure to UK companies, 34 per cent were invested in unit trusts, 32 per cent...

Japan to enter a bull run, says JOHambro.
December 3, 2007... Byline: Japan fund manager says M&A, rising dividends and the yen will buoy the market Japan is set to enter a multi-year bull run, according to the manager of JOHambro Capital Management's Japan fund. Scott McGlashan said he was...

Investors surge into closing Veritas Asia.
December 3, 2007... Investors have piled into Veritas Asset Management's offshore Asia fund since the group announced it would soft-close the vehicle. Its assets under management have almost doubled in size over the last two months, breaching its AGBP400m...

Man Group turns its focus to green stocks.
December 3, 2007... Byline: Hedge fund specialist seeks to cash in on potential opportunities in carbon trading Hedge fund specialist Man Group is planning to launch a range of climate change products next year in a bid to pick up skyrocketing green stocks....

JPMAM trains eyes on alternative assets.
December 3, 2007... Investors are planning to invest more than AGBP60bn in alternative asset classes over the next four years, JPMorgan Asset Management has predicted. The group conducted a survey of 282 respondents across 12 European countries, and found...

Lahde predicts bleak future for property-backed bonds.
December 3, 2007... Lahde Capital founder Andrew Lahde has predicted further crises for the markets, warning of potential turmoil in commercial property-backed bonds. The firm announced last week it had returned more than 1000 per cent this year, after...

Investors divided over equities versus bonds.
December 3, 2007... Byline: Retail investors opt for equities while institutional investors train eyes on bonds Investors' moves were polarised last month, with retail investors piling into equities and out of bonds, while institutional investors left...

SEB acquires Key Asset Management.
December 3, 2007... Swedish financial group SEB has acquired London-based fund of hedge funds house Key Asset Management. The group, which is mainly involved with banking services for corporate customers, institutions and private investors, will become a...

Spa ETF's MarketGrader ups exposure to financials.
December 3, 2007... Spa ETF has upped exposure on its MarketGrader 40 index to selected financial stocks in the US and reduced exposure to the energy market. Using fundamental quant analysis, the firm decided to decrease the index's weighting in energy from...

Neptune launches aim for emerging markets.
December 3, 2007... Byline: Two funds launched to exploit opportunities in Latin American and Asian markets Neptune Investment Management is tapping into the growing interest for emerging markets with the launch of two new funds. The Neptune Latin America...

Widening discounts slow fund of trusts.
December 3, 2007... Byline: Miton chief of investment says Accelerated fund's performance hit by dire sentiment Widening discounts on underlying investment trusts have slowed performance of the AGBP24.4m Miton Accelerated fund of trusts this year, according...

F&C manager warns over aggressive asset allocation.
December 3, 2007... Byline: Philbin claims multi-managers pushing boundaries of Cautious Managed sector with high equity weights Multi-managers using aggressive asset allocation in the IMA Cautious Managed sector are bending the rules to the limit, according...

Assets pile on pressure.
December 3, 2007... The emergence of multi-asset funds of funds has placed new responsibility on advisers to understand the full range of asset classes, according to Chartwell Associates. James Davies, research manager at Chartwell, said clients should be...

Hargreaves Lansdown aims to up stake in Merrill Lynch.
December 3, 2007... Hargreaves Lansdown's multi-manager team has taken a bet on BlackRock Merrill Lynch's new Latin American Opportunities fund, and intends to increase its stake. Lee Gardhouse, investment director at Hargreaves Lansdown Fund Managers, said...

Henderson to up alternatives.
December 3, 2007... Henderson Global Investors multi-managers Bill McQuaker and Katy Gladstone are poised to up their exposure to alternatives across their Independent range. The team has fund of hedge funds exposure through the AGBP1bn Boussard & Gavaudan...

LGIM UK Alpha opens door to retail investors.
December 3, 2007... Byline: Flagship trust run by Richard Penny issues R shares for 'more adventurous investors' Legal & General Investment Management has opened its flagship AGBP14m UK Alpha trust to retail investors for the first time. On 1 November,...

BlackRock rolls out UK retail access.
December 3, 2007... BlackRock is rolling out UK retail access for its newly launched Latin American Opportunities fund. The fund is managed by Will Landers, who also runs the firm's longstanding AGBP3.2bn Latin American fund. While the Latin American fund...

Industry eagerly awaits CGT changes.
December 3, 2007... Product providers are gearing up to take advantage of the change in capital gains tax rates from 6 April next year. The chancellor of the Exchequer has said capital gains tax will be reduced from 40 to 18 per cent from the start of the new...

David Acfield and Alex Brotherston.
December 3, 2007... Rensburg Fund Management is, according to David Acfield, "a small niche UK team player". But that, it seems, is that. When we meet before the annual IMA dinner, both Mr Acfield and Alex Brotherston are keen to present themselves as joint chief...

Slow-motion problems of property cycles.
December 3, 2007... Byline: Being able to spot a forthcoming top in the market is easy, but saying when is a little trickier The problem, and in some cases the opportunity, of property cycles is that they seem to take place in slow motion. That has been clear...

Consumers requesting IFA advice.
December 3, 2007... The number of consumers requesting advice from IFAs shot up in the third quarter of 2007, according to Unbiased.co.uk. In its Advice Drivers report, the company found 33,000 individuals in the UK sought the help of a financial adviser...

America can still provide opportunities.
December 3, 2007... Byline: The US Fed Reserve faces a tough balancing act in 2008, but there are plenty of positives Market sentiment is a curious thing. The US Federal Reserve's decision to lower interest rates by 50 basis points in September was met with...

Downward spiral.
December 3, 2007... Byline: "Rather than a sentiment-led decline in the markets, are we seeing the structural collapse of global finance?" It is perhaps the scariest scenario so far: surging oil prices and global market turbulence combine to create what the...

Things are not as dire as they seem.
December 3, 2007... Byline: While things may appear bleak for UK property funds, it is definitely not time to panic The UK property fund sector appears to be going through a rough patch. According to a recent IMA report, the sector saw more than AGBP159m in...

Running out of fuel.
December 3, 2007... Merger and acquisition activity has boomed in recent years, driven by a prolonged period of economic stability, strong corporate balance sheets and the relatively low cost of capital. Private equity firms, in particular, have taken full...

Really putting the cat among the investment bond pigeons.
December 3, 2007... Byline: The chancellor's pre-Budget report has, it is argued, made unit trusts more attractive than bonds Alistair Darling's pre-Budget report put the cat among the pigeons as far as investment bonds are concerned. It is not that he has...

Break the shackles.
December 3, 2007... Byline: The AIC seeks more changes to the tax regime, which it says disadvantages investment trusts Investment trusts can be highly tax-efficient vehicles and they were made even more so recently when the Association of Investment...

Protecting what's yours.
December 3, 2007... For many years there was a persistent clamour from the financial community and from ageing pensioners for the government to change the rule that made the purchase of an annuity compulsory for 75-year-olds with non-vested pension funds. This was...

Win AGBP30,000 with your fantasy investment team.
December 3, 2007... Byline: JPMAM is giving industry members the chance to test their portfolio construction mettle The sports pages have been full to overflowing of late with analysis of where it all went wrong in England's humiliating defeat to Croatia. The...

PruFund shock absorber.
December 3, 2007... Byline: Prudential PruFund has continued to generate smooth, strong returns over the summer Investors have enjoyed generally steady growth in stock markets with relatively low levels of volatility over the last four years. However, this...

Tough times are bitter pill to take.
December 3, 2007... Byline: After a difficult year, stability must top bond managers' wish lists Times have been tough for funds within the IMA UK Corporate Bond sector over the past year, with the events in the markets over the summer compounding problems...

JO Hambro set for launches.
December 3, 2007... JO Hambro Capital Management is gearing up for a raft of fund launches in the new year. The boutique house, which already has a foothold in many traditional fund classes such as Equity Income, American and European, is currently scouring...

An unusual amalgam that could be a winner.
December 3, 2007... Byline: Aberdeen fund manager Anthony Fletcher talks to Nick Rice about how three very different funds were merged together The Aberdeen Corporate Bond fund is celebrating a reasonable quarter for UK non-government bonds after considerable...

Credit quality provides the performance edge.
December 3, 2007... Byline: M&G Corporate Bond fund manager Richard Woolnough talks to Jim Robinson about the secret of his product's success The M&G Corporate Bond fund is the flagship bond product of one of the largest fixed-income players in the market,...

Taking greater risks for greater rewards.
December 3, 2007... Byline: Rensburg fund manager John Anderson talks to Nick Rice about how he runs his fund with "quite a bearish" outlook The Rensburg Corporate Bond fund has been verging on top quartile performance in the UK Corporate Bond sector on a...

Diary bets on Beatles but gets blown away by James Brown.
December 3, 2007... Who knew the whole fees versus commission debate was getting so explosive? But for Peter Hicks, head of Fidelity's IFA channel, the analogy is clear: "Commission for me is like Semtex," he says, forking up his fish over lunch in one of London's...

You've just gotta love them odds.
December 3, 2007... Diary was shocked to hear Witan's managing director James Budden has turned on his own country to make a bit of extra cash. Mr Budden, a betting man and son of a horse-racing journalist, says he netted a tidy sum putting 7-1 on England to lose...

Lights, camera, home video action.
December 3, 2007... Ever been to the OStCARS For a second Diary thought it had hit the big time - red carpets, camera flashes, and Nicole Kidman all came to mind - until reading the invitation and realising it was the Outstanding Service to Compliance and...

Braving the wild outdoors for charity.
December 3, 2007... David Knight, IFA at Co Durham-based Pace Financial Solutions, seems to have a death wish. The adviser, who is about to trek through the Himalayas for charity, suffered from altitude sickness on a previous hike in Peru and was beset by...

Birds of a feather....maybe not so much.
December 3, 2007... Diary learnt last week that Ingenious VCT will be stumping up the cash for a new John Lennon DVD, focusing on his first post-Beatles solo record. Made famous by the track Working Class Hero, the album saw Liverpool's favourite son taking...

Gadget: Review - Bringing the past into the future.
December 3, 2007... We all know IFAs spend many hours in the office. What better way to make those nights slaving over fund factsheets more enjoyable than with the Ion Tape2PC Dual USB Cassette Deck? The latest in digital-music technology can breathe life back...

Amr Seif leaves JPMAM.
December 3, 2007... Amr Seif, vice president for emerging European markets at JPMorgan Asset Management, has left the company to pursue other interests. Mr Seif was co-manager of the AGBP155.9m JPM New Europe fund and co-manager of the AGBP416.7m JPM Emerging...

IMF forecasts perfect storm in wake of credit crunch.
December 3, 2007... The IMF has forecast a "perfect storm" that could engulf European and North American economies in the wake of the credit crunch. Chief economist Simon Johnson said: "The combination of the global credit crunch and high oil prices could...

BlackRock to launch Strategic Funds in UK.
December 10, 2007... Byline: Company seeks FSA approval to bring five new funds to UK retail market in 2008 BlackRock Merrill Lynch is seeking FSA approval to roll out its Luxembourg-domiciled Strategic Funds range to investors in the UK. Should the...

Bank of England cuts interest rates to 5.5 per cent.
December 10, 2007... The Bank of England introduced its first interest rate cut in more than two years - from 5.75 per cent to 5.5 per cent - in a bid to assuage fears of a looming slowdown. The Monetary Policy Committee voted on 6 December to introduce the...

industry Reaction: Rate cuts.
December 10, 2007... Bryn Jones, fund manager at Rathbone Unit Trust Management "Lots of people have been saying the cut was widely expected, but the last I heard, only 28 out of 62 economists had forecast it. The market had already priced in the cut, but gilt...

CS launches separate fund manager group.
December 10, 2007... Byline: Collins Stewart hopes move will give asset management business its own identity Financial services group Collins Stewart has launched a stand-alone fund management business, Collins Stewart Fund Management. The group, which...

Consumers want choice of payment.
December 10, 2007... The Association of Independent Financial Advisers has found 46 per cent of consumers want to choose how they pay for professional advice. In a survey of 466 people, 7 per cent of respondents said they were in favour of an upfront fee,...

Norwich Union to launch cash fund offering income.
December 10, 2007... Norwich Union is to launch a cash fund designed to provide income with strong capital security. The company said the fund should offer consistent returns in excess of the Bank of England base rate. It will be run by Morley Fund...