Investment Adviser articles from December 2008

Investment Adviser archives from December 2008

Morningstar.
December 1, 2008... Byline: Morningstar In the article, "Beware absurd charges" published on September 29, 2008, by Morningstar, it was stated that Fitzrovia (TER) data leave out fees on underlying funds for funds of funds. This is true of their standard...

Managers concerned over corporate bond prices.
December 1, 2008... Byline: Stephen Wilmot Investors fail to receive official fund value as 'swing prices' drop Investors making redemptions on their corporate bond fund holdings have received as little as 90 per cent of the official fund value as a...

A perversely low profile despite numerous charms.
December 1, 2008... Byline: Feargus O'Sullivan Of all the 12 grape varieties I've come across, Grenache is the one that most reminds me of myself. Why? Because it's got no bloody staying power. The vine generally works long and hard for one year to great...

In search of good things to buy.
December 1, 2008... Byline: Stephen Wilmot M&G's Richard Woolnough talks to Stephen Wilmot about the lure of some financials and hunting for stocks hurt in the sell-off Since September and the default of Lehman Brothers, credit markets have developed...

No such thing as a free lunch.
December 1, 2008... Byline: Richard Roberts The debate over fees versus commission has polarised the industry for many years. Is there a solution? Fees may represent the pinnacle of proficiency and put advisers on a par with other professions, but...

Lipsey resigns from FSA Consumer Panel.
December 1, 2008... Byline: Daniel McAllister David Lipsey, chairman of the FSA's Consumer Panel, has resigned. Mr Lipsey's resignation comes into effect on December 2. The FSA said it was already looking for his replacement. Adair Turner, chairman at...

Invista appoints Clerical Medical to launch UK property fund.
December 1, 2008... Byline: Daniel McAllister Invista Real Estate Investment Management has appointed Clerical Medical to launch its UK Property fund. Structured as a UK Oeic and focused predominantly on the UK market, the fund aims to achieve long-term...

Academy to inject new blood.
December 1, 2008... Byline: James Kenny Newly launched recruitment and training body hopes to deliver a shot in the arm to ailing financial services industry The Financial Advice Academy, a new recruitment and training service for IFAs, was launched last...

Veritas to reopen Asian fund to new investors.
December 1, 2008... Byline: Rob Langston Veritas Asset Management has announced it is to reopen its Asian fund to new investors to take advantage of current pricing in Asian and Pacific markets. The GBP276.7m ($423m) fund originally closed to new...

Axa predicts spate of takeovers.
December 1, 2008... Byline: Daniel McAllister Managers warn widespread consolidation lies ahead as credit crunch bites into industry Fund management firms are bracing themselves for a rash of takeover deals during the next year as the credit crunch takes...

Going to record highs in a time of lows.
December 1, 2008... Byline: Daniel McAllister Don't they know there's a worldwide recession going on? Three months after opening the world's second-tallest skyscraper, a Chinese construction firm is busying itself with building an even bigger building in...

Have opera for lunch.
December 1, 2008... Byline: Hugo Greenhalgh Diary is accustomed to singing for its supper, so the idea of opera at lunchtime comes as a welcome surprise. Each December, Opera in the City brings a little musical respite to the pressures and stresses of...

BNP Paribas Privalto UK's funds reach end of offer period.
December 1, 2008... Byline: James Kenny BNP Paribas Privalto UK's two Stabiliser funds are reaching the end of their offer period, which closes on December 15. The Stabiliser and Stabiliser Plus funds offer investors capital protection and the potential...

Barclays backs commodities.
December 1, 2008... Byline: James Kenny Barclays Wealth is launching a new five-year commodity structured product for investors eager to diversify away from equities. The new product has a minimum investment of GBP3,600 and will provide investors with...

Aifa's Cummings goes straight for the jugular.
December 1, 2008... Byline: Rob Langston Diary was amused to see Chris Cummings draw glares from Stephen Hadrill, director-general of the ABI, and Angela Knight, chief executive of the British Bankers' Association, at the Retail Distribution Review...

Launch brings GHC funds to GBP90m.
December 1, 2008... Byline: Rob Langston GHC Fund Management has announced the launch of three new risk-graded, open-ended funds. The launch of GHC Resilient funds 4, 5 and 6 have combined assets under management of more than GBP42m, bringing GHC's total...

Liontrust faces being pushed out of FTSE All-Share.
December 1, 2008... Byline: Rob Langston Liontrust Asset Management is at risk from falling out of the FTSE All-Share index as changes to the liquidity rules come into place. The firm, which is the subject of ongoing takeover talks, could face relegation...

Charging timeline may shift.(Chronology)
December 1, 2008... Byline: Sharon Flaherty Advisers may be expected to implement their own charging structures for advice long before the official deadline of 2011, the time when the Retail Distribution Review (RDR) proposals are expected to come into...

Omam's Les Jones set to retire.
December 1, 2008... Byline: James Kenny Les Jones, manager of Old Mutual Asset Management's GBP37m Japanese Select fund, is retiring from the firm after 16 years. Mr Jones has been working within the Japan sector for 30 years and joined Omam in 1992. He...

Forbes turns up the heat as he goes.
December 1, 2008... Byline: Laura Mossman As he makes his journey in from deepest, darkest Essex on these winter mornings, Rob Forbes from Octopus has an unusual way of keeping toasty. "I got a heated waistcoat from people at work last Christmas," he...

Just grin and bear it.
December 1, 2008... Byline: Chris Traulsen It's no secret that credit quality and sector positioning have dictated winners and losers in the IMA Sterling Corporate Bond sector so far in 2008. Funds that have made large bets on lower-rated issues or financials...

Level heads will come out on top.
December 1, 2008... Byline: Laura Mossman While paranoia has gripped the corporate bond sector, companies' fears may be unfounded Panic by definition is not rational or logical. And the disarray we are seeing in the corporate bond sphere, with the market...

UK AUM falls 30% but no mass selling, reports IMA.
December 1, 2008... Byline: Daniel McAllister UK investment funds saw funds under management tumble by 30 per cent year-on-year in October, but there were no signs of mass selling by retail investors, according to the IMA. Data from the IMA showed funds...

Could do better.
December 1, 2008... Byline: Hugo Greenhalgh So fund managers only ever get half of their investment decisions right, if financial research firm Inalytics is to be believed. What does this mean? First, the reputation of investment professionals has taken...

More complaints to stem from new rules, fears FOS.
December 1, 2008... Byline: Sharon Flaherty The Financial Ombudsman Service (FOS) has expressed concern that it may receive more complaints in the future as a result of the FSA's decision to introduce both an independent advice and sales advice distribution...

Infrastructure sector bucks the trend, says Lipper.
December 1, 2008... Byline: Daniel McAllister Study finds governments around the world are set to inject money into public works The global economy may be crashing, but one sector set to cash in on the world recession is infrastructure, according to...

New Star steps in to save property fund.
December 1, 2008... Byline: Charlotte Adlung Firm stops dealing in International Property Fund amid series of redemptions New Star said it has suspended dealing in its International Property fund for an unspecified period of time to save the vehicle from...

Stay defensive, says Thames River.
December 1, 2008... Byline: Daniel McAllister Global economies are still in the "intensive care unit" and face a "severe and long lasting" recession, according to multi-managers Thames River Capital. There is no need to change a strategically defensive...

Way takes on life settlements market.
December 1, 2008... Byline: James Kenny Way Fund Managers is breaking into the lucrative life settlements market by teaming up with EEA Fund Management to launch its own class of the $277m (GBP179m) Life Settlement fund. The new class, launching on...

Enhance training: FSCP.
December 1, 2008... Byline: Rob Langston The head of the Financial Services Consumer Panel has called for the minimum qualification level required by investment advisers to rise to QCA level six. Current proposals call for every IFA to have achieved a QCA...

Aifa predicts adviser firms will be unfairly affected.
December 1, 2008... Byline: Rob Langston IFAs face 'radical' capital increase and standards body set to cost millions, says director-general Aifa director-general Chris Cummings has slammed Retail Distribution Review (RDR) proposals setting out higher...

Trusts' FTSE fears fail to realise.
December 1, 2008... Byline: Rob Langston FTSE liquidity rules update allays concerns about exclusion of investment trusts Fears that more than 20 investment trusts could be excluded from the FTSE All-Share index have been allayed after changes to...

Collins Stewart warns discounts may widen.
December 1, 2008... Byline: Rob Langston Investment trust discounts are likely to show further widening as conditions in the wider economy deteriorate, according to research company Collins Stewart. Alan Brierley, analyst at Collins Stewart, said sector...

Skandia moves away from paper.
December 1, 2008... Byline: Gemma Westacott Skandia will no longer accept paper applications for new business submitted to the Selestia Investment Solutions platform from January. Instead, all business will have to be submitted online. Skandia said the...

Omnis reports GBP50m fund inflows.
December 1, 2008... Byline: Charlotte Adlung Alternative investment specialist Omnis Investments reported GBP50m in inflows to its IFDS Omnis fund range of three multi-asset, multi-structure and multi-manager funds in just more than four months. Omnis, a...

Collins Stewart appoints Wisener-Keating.
December 1, 2008... Byline: Charlotte Adlung Collins Stewart Fund Management has hired Collette Wisener-Keating as head of product development. Ms Wisener-Keating, who has previous experience in product development at JPMorgan Asset Management and the...

Inalytics assesses managers' success.
December 1, 2008... Byline: James Kenny Fund managers only ever get half their decisions right, according to Inalytics, a financial research firm that monitors equity managers. The firm recently examined 215 long portfolios to find whether fund managers'...

The good and the bad of RDR changes.
December 1, 2008... Byline: Anna Lawlor RDR suggestions have been welcomed by some analysts, though others remain unhappy Financial advisers across the UK held their breath last week in anticipation of sweeping changes to their industry proposed by the...

JPMorgan looks to governments for action on crisis.
December 1, 2008... Byline: Daniel McAllister Governments should stabilise the financial system to alleviate the global economic crisis, according to JPMorgan Asset Management. Gonzalo Baranda, investment marketing manager, said the main aim of...

Quality of MiFID data bugs IMA.
December 1, 2008... Byline: Daniel McAllister The quality of information provided by the Markets in Financial Instruments Directive (MiFID) has "significantly deteriorated" since its introduction a year ago, according to the IMA. The European Commission...

Investors need more advice, says Odyssey.
December 1, 2008... Byline: Charlotte Adlung The recent financial crisis could lead to the expansion of asset allocation services and investment advice offerings to more investors, according to Odyssey Financial Technologies. Odyssey, a dealer in wealth...

Grant Thornton warns tax changes will hit finance talent.
December 1, 2008... Byline: Charlotte Adlung The City's position as a magnet for top financial talent is under threat from the recently announced pre-Budget report, which proposes higher rates of tax and national insurance contributions for high earners,...

Assetz sees value in state housing investment.
December 1, 2008... Byline: James Kenny The UK government's announcement last week of a GBP775m investment in social housing could be the first step in shoring up the property sector, according to property investment company Assetz. Stuart Law, chief...

A window of opportunity opens for the industry.
December 1, 2008... Byline: Rob Griffin As the economic turmoil continues, RDR offers a chance to increase consumers' confidence in the financial services industry, say analysts When the FSA began the lengthy consultation process for its Retail...

Midas targets bargains.
December 1, 2008... Byline: Charlotte Adlung A concoction of low valuations, price falls and the strong policy response of both the UK and global governments to the emerging recession presents a significant opportunity to buy across a wide range of asset...

Fidelity reports interest in government bonds.
December 1, 2008... Byline: Jim Robinson Fund sales through Fidelity FundsNetwork last month reflected a marked increase in investor interest in government bonds. David Dalton-Brown, head of Fidelity FundsNetwork, said the weaker economic outlook for the...

HSBC recommends faith in emerging equities.
December 1, 2008... Byline: Daniel McAllister Market turmoil means timing is of the essence, says global product specialist Investors should buy into emerging market equities despite the fact volatility is at an all-time high, according to HSBC Global...

Pre-Budget tax moves find favour within industry.
December 1, 2008... Byline: James Kenny IMA and industry groups welcome newly announced measures on tax reform Announcements within last week's pre-Budget report have been broadly welcomed by the IMA and various industry bodies. The IMA said it...

The dangerous side effects of deflation.
December 1, 2008... Byline: Phil Coggan Apart from falling asset prices, deflation can lead the economy into a trap Outside Japan, deflation is so rare in modern times that many people don't understand it. It is not a slower rate of annual price rises,...

Patents plague biotechnology.
December 1, 2008... Byline: Andy Smith Until the credit crunch affected equity markets over the summer, the biotechnology sector was having a great year. Biotech companies big and small - from Genentech to GeneLabs, and across the world; from ImClone in the...

Light at the end of the tunnel.
December 1, 2008... Byline: Stephen Barber We've run out of sellers and there are few buyers, but some positive unknowns are coming into play While not being particularly keen to call the bottom of this market, I have said before that we have pretty much...

A good start in a difficult market.
December 1, 2008... Byline: Meera Patel Lazard European Alpha fund manager Aaron Barnfather shows promise Europe rarely gets clients excited. It doesn't help when all the major economies of this world are heading for recession. The region is facing its...

To train or not to train, that is the question.
December 1, 2008... Byline: Hugo Greenhalgh Qualifications on the one hand, competence, skills and experience on the other Kim Barrett has been an adviser for more than 30 years. His son Joel recently joined the family firm and is busy swotting for the...

New Star sceptical about government debt plan.
December 1, 2008... Byline: Daniel McAllister The UK government's plans to rack up national debt to stimulate the economy will not work, according to asset managers New Star. Simon Ward, chief economist at New Star, said tax cuts designed to kick-start...

New T Rowe fund to invest in real estate companies.
December 1, 2008... Byline: James Kenny Global fund is opportunity for diversification, says manager T Rowe Price is widening its investment base with the launch of its Global Real Estate fund. The fund is available through T Rowe's Luxembourg-domiciled...

Lazard head of equities retires.
December 1, 2008... Byline: James Kenny Tony Willis, head of UK equities at Lazard Asset Management, has decided to step down and retire from the company. Mr Willis has been at Lazard for nine years and was in charge of managing the group's GBP327m UK...

Fidelity fund 'needs more grey hairs'.
December 1, 2008... Byline: Daniel McAllister and Nick Rice Head of IFA channel at Fidelity defends underlying managers' relative lack of experience Fidelity's Wealthbuilder fund is at the "mercy" of its inexperienced underlying fund managers, according...

An optimist in a time of pessimism.
December 1, 2008... Byline: Nick Rice Jupiter Income trust manager Anthony Nutt talks to Nick Rice about making the best out of bad numbers - and maintaining his star status Advisers have often described UK Equity Income as the premier league of UK...

Fitch delivers vote of confidence in Schroders.
December 1, 2008... Byline: Daniel McAllister Schroders Investment Management has been bumped up by ratings agency Fitch Ratings. Fitch revised its asset manager rating assigned to the London-based investment activities of Schroders from M2 to M2+. ...

A high-stakes selection game.
December 1, 2008... Byline: Daniel McAllister Is it about the star multi-manager or the team process? For IFAs, one benefit of multi-manager funds is that the responsibility of choosing a star fund manager is taken out of their hands. Yet with the...

Hotchkis joins Alternative Investment Strategies.
December 1, 2008... Byline: Rob Langston Richard Hotchkis has been appointed non-executive director of the Alternative Investment Strategies fund of hedge funds. Mr Hotchkis already sits on the boards of a number of funds and will also serve on the audit...

Omnis Investments raises GBP50m since launch.
December 1, 2008... Byline: Rob Langston Omnis Investments, the joint venture between Octopus Investments and Openwork, has raised more than GBP50m since launching its fund range in July. The joint venture saw the launch of the IFDS Omnis multi-manager,...

Infrastructure sector to cash in on recession.
December 1, 2008... Byline: Daniel McAllister The global economy may be crashing, but one sector set to cash in on the world recession is infrastructure, according to Lipper FMI. A recent Lipper study found that an increasing number of governments in...

Fidelity's Wealthbuilder fund needs more experienced managers.
December 1, 2008... Byline: Daniel McAllister and Nick Rice Fidelity's Wealthbuilder fund is at the "mercy" of its inexperienced underlying fund managers, according to Morningstar. Morningstar described the Fidelity Wealthbuilder team as experienced, but...

Fears of investment trusts exclusion allayed.
December 1, 2008... Byline: Rob Langston Fears that more than 20 investment trusts could be excluded from the FTSE All-Share index have been allayed after changes to liquidity rules were watered down. Last week, the FTSE EMEA index committee had decided...

Quality of info provided by Mifid has deteriorated: IMA.
December 1, 2008... Byline: Daniel McAllister The quality of information provided by the Markets in Financial Instruments Directive (Mifid) has "significantly deteriorated" since its introduction a year ago, according to the Investment Management Association...

Discounts may widen, Collins Stewart warns.
December 1, 2008... Byline: Rob Langston Investment trust discounts are likely to show further widening as conditions in the wider economy deteriorate, according to research company Collins Stewart. Alan Brierley, analyst at Collins Stewart, said sector...

Investor interest in UK Gilts on the increase.
December 1, 2008... Byline: Jim Robinson Fund sales through Fidelity FundsNetwork last month reflected a marked increase in investor interest in government bonds. David Dalton-Brown, head of Fidelity FundsNetwork, said the weaker economic outlook for the...

Schroders sees Fitch rating improved.
December 1, 2008... Byline: Daniel McAllister Schroders Investment Management has been bumped up by ratings agency Fitch Ratings. Fitch revised its asset manager rating assigned to the London-based investment activities of Schroders from M2 to M2+. ...

Tony Willis to leave Lazard.
December 1, 2008... Byline: James Kenny Tony Willis, head of UK equities at Lazard Asset Management, has decided to step down and retire from the company. Willis has been at Lazard for nine years and had been in charge of managing the group's GBP327m UK...

Eaglet shareholders reject new investment strategy.
December 1, 2008... Byline: Rob Langston Shareholders in the Eaglet investment trust have rejected moves by fund managers Knox D'Arcy to rename the trust and launch a new investment strategy. At the trust's EGM last week, shareholders voted against...

The FSA's new broom.
December 1, 2008... Byline: Anna Lawlor The FSA has published its Retail Distribution Review feedback statement outlining proposals to give consumers more confidence in the retail investment market, but how will it affect the industry? "Quite simply,...

Going against the flow in a falling market.
December 1, 2008... Byline: Anna Lawlor Aegon fund support manager Iain Buckle talks to Anna Lawlor about sticking to securitised debt in a volatile environment With a portfolio overweight financials during one of the biggest banking crises in decades, it...

Spate of M&A deals raises scepticism.
December 1, 2008... Byline: Kevin Burke Bank of America faces a challenge in retaining Merrill Lynch's army of advisers BlackRock chief executive Larry Fink told me a few years ago that most mergers don't work. At the time, he had just agreed to sell...

Moving to quality, the current market will sort the wheat from the chaff.
December 1, 2008... Byline: Stephen Wilmot JPMorgan Asset Management managing director Campbell Fleming talks to Stephen Wilmot about remaining an optimist in the current downturn "It's appalling what people have been sold. You open the paper every day...

New Star faces tough scrutiny by industry.
December 8, 2008... Byline: Rob Langston and Nick Rice Asset management firm in the spotlight after legal action and fund suspension Controversy continues to engulf New Star as one former fund manager starts legal action against the firm and questions...

IAM urges clarity in hedge fund industry.
December 8, 2008... Byline: Daniel McAllister Firm's chief executive claims "misunderstandings" and "emotions" have hit industry hard Hedge funds will need to be more transparent in 2009 after a rocky year for the industry, warned fund of hedge funds...

A sea change for transparency and trust.
December 8, 2008... Byline: Nick Rice Distribution Technology founder and chief executive Ben Goss talks to Nick Rice about creating a transparent and client-focused industry In some industries, there is a radical disconnect between what clients think...

Hedge funds need to be more transparent: IAM.
December 8, 2008... Byline: Daniel McAllister Hedge funds will need to be more transparent in 2009 after a rocky year for the industry, warned fund of hedge funds manager International Asset Management (IAM). The fund of hedge fund industry has been hit,...

Movie magic makes the blues disappear.
December 8, 2008... Byline: Laura Mossman Meanwhile, our cousins across the pond are settling for a spot of smooching in the back row at the movies as a way to cheer themselves up in the face of a recession, according to a report from the largest theatre...

IMA urges reforms to handle defaults.
December 8, 2008... Byline: Jim Robinson The IMA called on the FSA to address the shortcomings in the London cash equity market revealed by the collapse of Lehman Brothers. Richard Saunders, chief executive at the IMA, said Lehman's default resulted in a...

Hamilton voices fears over RDR proposals.
December 8, 2008... Byline: Jim Robinson Chartered financial adviser Bradbury Hamilton predicted the implementation of the RDR proposals for QCA level-four qualifications would force hundreds of advisers to throw in the towel and flood the market with firms...

Stonehage confirms TriAlpha and ACP Partners merger.
December 8, 2008... Byline: Jim Robinson The Stonehage Group last week confirmed the merger of TriAlpha, its asset management arm, with ACP Partners. The combined business will initially be known as "ACP TriAlpha" and have approximately $2.5bn (GBP1.7bn)...

More than 7,000 teams enter JPMorgan Fantasy Fund Manager.
December 8, 2008... Byline: James Kenny JPMorgan's Fantasy Fund Manager game has seen an influx of contestants since it officially launched on December 1, with more than 7,100 teams now entered. The top-performing entry portfolio between December 1 2008...