Investment Adviser articles from February 2006

Investment Adviser archives from February 2006

Sipps to benefit from funds merry-go-round.
February 6, 2006... Stakeholder charging and customers jumping ship are leading pension providers into ever-decreasing profitability, but boosting Sipps. On the plus side, however, Cazalet claimed a substantial decline in life office premiums was a boon for...

Britannic and the road to innovation.
February 6, 2006... The new boutique structure at Britannic Asset Management -- developed by sales and marketing director Jonathan Polin -- is a clever way of attracting new talented fund managers. First among these is Argonaut Capital Partners, 50 per cent...

Sipps get boost from geared City living.
February 6, 2006... Sipp provider the Pension Consultancy has launched a new product allowing investment in residential property. The self-invested personal pension will be administered by Pointon York Sipp Solutions and has already been marketed to financial...

Property set for City boost.
February 6, 2006... The property investment market will be boosted as record City bonuses are paid out, according to a survey. A survey of more than 200 exhibitors at this year's Homebuyer Show in London, including housebuilders and property investment...

Old attractions take back seat in China.
February 6, 2006... The old infrastructure and manufacturing story is over in China, according to Gartmore's China manager. Instead, the way to play the country's reform process is in domestic consumption. Philip Ehrmann, manager of the AGBP143m China...

F&C signs specialist to find region head.
February 6, 2006... F&C has hired a Latin American specialist as it continues the hunt for another lead manager covering the region. Gareth Morgan has joined as a fund manager in the emerging equities team and will become an assistant on the AGBP18m Latin...

Baring's Buckley wins praise.
February 6, 2006... Prospects for large companies in Europe have changed for the better, according to Baring Asset Management. The company believes rising productivity and takeover activity in the sector will lead to exciting opportunities for growth investors...

Fidelity Asia sees reversal.
February 6, 2006... A frenetic burst of activity in the AGBP518m Fidelity South East Asia fund has turned around performance. The fund, managed by Allan Liu, had been loitering around the third and even dipping into the fourth quartile over the three years,...

Smith & Williamson launches Edge VCT.
February 6, 2006... Smith & Williamson is investing in the music industry with the launch of its specialist Edge Performance VCT. The VCT is being marketed by Smith & Williamson's Tax Efficient Solutions Division and will establish a separate number of...

We do not believe in being the best loser. What is the point of being a number one fund if you have halved investors' money?
February 6, 2006... Investment Adviser: Last year was relatively good in terms of fund performance. How is your strategy working out for 2006? Any particular thoughts or change of direction? Graham Campbell: Generally we are a little more cautious with regards to...

Inversion or perversion -- you decide.
February 6, 2006... In December 2005, the US yield curve inverted for the first time since February 2000. While this inversion was shortlived, some investors believe it to be the first sign of a looming recession in the US. Given that the spread between 10-year...

Profits and ethics are not incompatible.
February 6, 2006... The inevitable tensions between free markets and morality have recently been much in evidence. In an apparent concession to European competition regulators, Microsoft -- a business which has never been reluctant to do whatever it takes to crush...

Can Bernanke de-froth the markets?
February 6, 2006... Welcome, Ben Bernanke. The new Federal Reserve chairman took up his post on Wednesday, after a smooth confirmation process. Most people in the financial markets believe he is up to the job. Of course, it is an understatement to say that Mr...

Rhyme and reason.
February 6, 2006... Forty-one years ago, Rodgers and Hammerstein wrote "My Favourite Things" for Julie Andrews' Maria in the Sound of Music. Had they thought to ask the financial advisory community what ranked alongside raindrops on roses and whiskers on kittens,...

Luckraft tries to escape tradition.
February 6, 2006... George Luckraft, manager of Axa Framlington's top performing equity funds, is looking outside the traditional sources of income to find higher yields. Mr Luckraft said that equity income investing had seen its first fairly tough year since...

Income remains centre stage for IFAs.
February 6, 2006... Investment Adviser decided to dig into what the financial advisory community was thinking. To do this, we commissioned an independent research survey and the principal findings of this survey were: l Investment advisers seem to be buying UK...

"I want to buy undervalued companies where the outlook is improving. I will not simply buy a company because it looks cheap".
February 6, 2006... QCan you tell me a little about your investment philosophy? For example, how is the fund managed? Karen Robertson: The investment philosophy is based upon what I call "focus on change". It is not a pure value or pure growth approach. Both these...

Man opens international hedge fund.
February 6, 2006... Alternative investments provider Man has opened up a global hedge fund product to UK investors. The Man IP 220 International fund offers investment exposure of up to 160 per cent of assets, based on an underlying portfolio of managed...

Sterling launches fund for cautious investors.
February 6, 2006... Asset manager Sterling, under the umbrella of Zurich Financial Services, has launched a distribution fund based on the AGBP3.8bn Sterling bond portfolio. This fund has been constructed for moderately cautious investors and aims to provide...

Raising the equity barbell.
February 6, 2006... Income managers who employ a barbell style of portfolio construction are likely to fare better in the coming year than their more traditional counterparts, according to Peter McGahan, managing director of the IFA Worldwide Financial Planning....

"I am a sentiment contrarian: I like to buy when the news is bad and when I feel overall sentiment on a stock is also bad".
February 6, 2006... QSince you took over the fund in 2004, how have you stamped your mark as a fund manager? Tineke Frikkee: The Newton Higher Income fund is quite a process-driven fund. We have a very strict yield discipline, which is key in buying and selling...

Dead salesmen.
February 6, 2006... One has to feel that consultant Ned Cazalet has a point when he argues that current commission models cannot continue. Re-broking existing business from one provider to another is costing the industry around AGBP4bn a year, according to the...

A sexy image is not always everything.
February 6, 2006... UK equity income has always been a favourite sector of mine simply because it fits into the vast majority of objectives from private clients, that of rising income and capital growth. Its rather staid and distinctly non-sexy image belies the...

Income takes to higher ground.
February 6, 2006... The search for income began during 2002 after a turbulent equity market wiped out any capital gains many investors had made. Pension fund liabilities also soared sky-high, prompting a mass rush to greener pastures. One of these havens was...

Threadneedle strengthens retail team with Harrison appointment.
February 6, 2006... What is your investment background? Leigh Harrison: I began my City career in 1983 at Hill Samuel. After three years there, two of which were as a fund manager, I went to Coopers & Lybrand Management Consulting, where I stayed for about nine...

Pinpointing the effect of style.
February 6, 2006... Axa Framlington's George Luckraft provides a brace of funds at the top of the tree. The tree, in this instance, is that of detectable fund manager skill. The table on the opposite page ranks equity income funds by a performance indicator...

JOHCM's three core principles for success.
February 6, 2006... J O Hambro Capital Management's (JOHCM) Oeic partnership was launched in 2001 and is building one of the most innovative business models in the investment industry. The investment culture at the company reflects the entrepreneurial...

"On a prospective basis, if a stock does not yield more than the market then we automatically sell it -- and we sell it to zero".
February 6, 2006... QAt the beginning of last year, you said you expected growth in UK equities to be solid but unexciting. In the event, the FTSE100 returned 16.7 per cent. What is your forecast for this year? Clive Beagles: It would probably be something very...

Dawnay commodity index fund launch.
February 6, 2006... Dawnay Day Quantum is set to launch a commodity index fund on 1 March. Aimed at discretionary managers, multi-managers and fund of funds initially, the Oeic will offer investors access to physical commodities as an asset class. The...

The main attraction.
February 6, 2006... The past few years have seen the rising popularity of UK Equity Income funds investors who have been suffering from the prolonged bear market shied away from funds targeting capital growth. Indeed, throughout 2004 and in the first quarter of...

"We not only have an experienced team, but Fidelity has a strong record of managing funds of funds that goes back to the mid-1990s".
February 6, 2006... QI understand the fund will invest in a number of different funds across what is a AGBP34bn sector. Can you tell me a little about the management approach for the new fund and how it will differentiate itself from other multi-manager funds? ...

In search of the narrow victory.
February 6, 2006... Last year was a terrific year for asset allocators. In sterling terms there was only a narrow margin between domestic equities and overseas equities exposure -- only 4 per cent difference in the relevant IMA sector averages. Returns from...

"We recognise as an active manager that all our strategies have a finite amount of money we can run in them".
February 6, 2006... QIn terms of investment philosophy, Neptune concentrates on both top-down and bottom-up investing, two very different approaches: how do you square the two styles? Robin Geffen: We believe in looking at the world in terms of global sectors,...

Company profiles.
February 6, 2006... Fidelity International By combining global reach with a local focus, we have become the UK's largest mutual fund manager and the European leader in pan-European equities. As a result of our efforts across Europe we have been given hundreds...

School's out for...black gold?
February 6, 2006... Last week, Saudi Arabia's education ministry said: "There are natural reasons for having to leave school, and unnatual ones, such as trading shares." It's not the kids playing hookey, it's the teachers. The Saudi Arabian bourse has been buoyant...

Life, the universe and everything.
February 6, 2006... But glossy appearances do not always represent hours of grooming and brain-storming sessions. Seven Investment Management has finally admitted the truth behind its moniker. "We were toying with various names, when I said: 'This is random: we...

Foreign shores beckon British money.
February 6, 2006... Equity income funds that invest in overseas companies are providing an enormous profit opportunity for UK investors, industry figures claim. They say that global equity income -- which allows investors to earn cash from the dividends paid...

The Abbey habit starts young.
February 6, 2006... Perhaps Abbey could have learned a thing or two from Seven's marketing team. The Spanish-owned bank made a public apology following a mass-mail shot to thousands of babies. Was it trying to bypass the child labour laws? Sadly not, but when it...

Income fading to grey.
February 6, 2006... The increasing number and lengthening lifespan of the UK population ultimately impacts on retail investments, which are frequently used to supplement poor pension schemes. But according to fund managers, this itself is having an impact --...

Talking balls about funds.
February 6, 2006... There are more male than female fund managers in America, according to another expensive and specious "scientific" study. Diary could have told them that for a Big Mac with the salad removed. But the independent study of US mutual funds from...

Keep that bull market sleek.
February 6, 2006... From bullish sentiments to cows coming home... Merrill Lynch is in the middle of a bull market, quite literally. The lovely bovine appearing in billboard ads and pictures all over the City is no fibreglass model. He's Arturo -- a real, live,...

Teching no chances.
February 6, 2006... Even though technology investments are grabbing advisers' attention, some IFAs are still wary of the sector nearly six years after the TMT bubble burst. New products, as well as consumer demand, are behind the revival of this much-maligned...

Matrix hedge fund launch to explore boutique funds.
February 6, 2006... Matrix is to launch a fund of hedge funds exploring the talents of boutique players. The Matrix Max fund is to launch on 1 March, and will use alternative investment specialist Maxam to provide the underlying portfolio. Its objective...

Finding optimism for a sector that is in denial and aversion.
February 6, 2006... It usually takes many years, if not decades, before investors return to the scene of an earlier mania. This is partly because of the natural emotional cycle from euphoria to humiliation, despair, repudiation and aversion that accompanies the...

Reverting to the norm.
February 6, 2006... To many investors, technology remains a dirty word. Memories of the tech-bubble of the late 1990s run deep and the excesses of that period still shape many people's views of the sector. It is seen as the place where returns never exceed the...

Bridging the gap.
February 6, 2006... No-one would disagree that the advice industry has come a long way, in terms of take-up of IT. But while advisers themselves are starting to realise the benefits of technology, having implemented it into their business practices, major industry...

I expect you to die Mr Bond!
February 6, 2006... It is not often that bond markets get front page treatment, but they have got everyone's attention right now. The topic is hottest in the UK, but worldwide, bond markets have been acting very strangely; for some reason they have decided to...

Survival of the fittest.
February 6, 2006... When Lord Turner delivered his recommendations on UK pension reform last month, we were all sitting on the edge of our seats, hoping for sweeping changes to our debilitating pension system. What we received, not unsurprisingly perhaps, were the...

Wielding a two edged sword.
February 6, 2006... Shareholder activism can sometimes provide just the tonic to get a company back on track. It also can hurt a firm and its shareholders, if it is misguided or worse, if it reflects only the short-term interests of a group of shareholders. This...

Still going heavy on the metal.
February 6, 2006... It is unlikely that the film of James Bond's adventures would have enjoyed quite the same level of popularity if Britain's premier spy had gone into battle with a villain named Aluminiumfinger, or that Spandau Ballet would have topped the...

Meeting the value criteria.
February 6, 2006... "Are technology shares expensive or cheap?" As a technology portfolio manager, this is a question asked daily. Unfortunately, the answer is not a straightforward "yes" or "no". The universe of technology companies covers a broad variety of...

It takes a financially strong with-profits fund to offer the sort of guarantees new investors are cuurrently looking for.
February 6, 2006... There is a feeling at the moment that with-profits has had its day. Which funds do you think will still be around in the with-profits market in five years time? David Riddington: It is true to say there are less active with-profits funds than...

MGM pitches portfolio investment bond at IFAs.
February 6, 2006... MGM Assurance is stepping up its bid to win IFA business with the launch of an investment portfolio bond. The bond will provide access to MGM's range of 15 multi-manager investment funds, and is designed to provide growth over the medium...

Trust me, I'm a top performer.
February 6, 2006... Last year proved to be an outstanding year for the investment trust sector. Investors in the sector have benefited from a narrowing in the level of discounts to net asset value (see chart), and the sector's relative performance has been boosted...

Wagging the dog.
February 6, 2006... If picking investment funds were as simple as buying those with the best recent performance, accumulating wealth would be so easy. Pretty soon, we would all be billionaires. While this is obviously impossible, too many investors continue to...

Taking on risk for caution.
February 6, 2006... The macro-economic picture in the UK is relatively mixed, with fund management companies offering opposing views on the debt market. Waters in the debt market are muddied and UK Corporate Bond fund recommendations arena will need careful...

Sector comment.
February 6, 2006... This week we continue our review of the UK Corporate Bond sector, but this time we look at the bottom 25 funds in the sector over the last 36-months to the end of December 2005. The most notable thing is the differences in the investment...

The price of playing it safe for the pension funds and the do-gooders.
February 6, 2006... Just as we have reviewed the bottom 25 funds in the UK All Companies, North America and Europe sectors we are this week reviewing the bottom 25 funds, by fund return over 36 months to December. Just like the other sectors, being in the...

A search for the lowest risk profile.
February 6, 2006... This week's search for a phoenix will be quick for a bear like me, which means there is space left to continue my rant about investors being bonkers to select this type of fund in current market conditions. My phoenix is likely to have the...

Investing in corporate debt can bring on gilt trip.
February 6, 2006... The AGBP87.6m Nucleus Fixed Interest trust has managed to outperform the UK Corporate Bond sector average over the past three, rising 18.1 per cent, against a 16.2 per cent average growth in the sector (as at 30 January, according to Standard &...

Seven's multi managers on Bigger Picture.
February 6, 2006... Seven Investment Management's multi-manager funds are now available on Lifetime's wrap platform the Bigger Picture. Four total return funds: Moderately Cautious, Balanced, Moderately Adventurous and Adventurous are available, as well as the...

Parvest fund addition shoots for US mid-caps.
February 6, 2006... BNP Paribas Asset Management has launched its Parvest US Mid Cap fund into the UK market to increase its range of US investment vehicles. The fund aims to invest in a concentrated portfolio of the mid-cap stocks with a market capitalisation...

SocGen to debut in India.
February 6, 2006... Societe Generale Asset Management has revealed that its India fund will launch this week. On Friday, the fund, which is targeted at asset allocators, discretionary managers and multi-manager funds, will go live on the dealing platform. It...

Neptune Russia surfs the oil wave.
February 6, 2006... Energy and financials stocks have buoyed up the Neptune Russia and Greater Russia fund over its first year. This is according to Neptune's chief investment officer and the fund's manager Robin Geffen. Two of the fund's greatest...

Investec rolls out guaranteed fund.
February 6, 2006... Investec Private Bank has launched a capital guaranteed product that has a one-year term and a two-year term. The Investec Income Deposit offers a minimum return of 4 per cent over one year, which will rise to 6 per cent if the FTSE100...

Newton loses Japan manager to Veritas.
February 6, 2006... Veritas has snatched another manager from Newton Investment Management, this time from its Japan desk. Veritas, the boutique set up by Stewart Newton, former founder of Newton, claims it has poached Newton's Japanese manager Miki Sugimoto....

Noble seeks backing with exit strategy for income.
February 6, 2006... Noble is hoping a clear exit strategy for its Income & Growth VCT will prove a draw for investors. Noble has launched a top-up fund raising issue on the VCT in order to attract AGBP20m. The VCT is becoming a generalist offering like the...

US equities ride out troubled start to year.
February 6, 2006... Poor results and the appointment of a new head at the Federal Reserve will not damage long-term prospects for US equities this year, Threadneedle claimed. Andrew Holliman, manager of the AGBP814.4m Threadneedle American fund, said despite...

Cofunds debut for L&G portfolio bond.
February 6, 2006... Legal & General has launched a portfolio bond that is available on the Cofunds platform. Whereas IFAs and their clients can use platforms to view and manage their investment portfolios across a range of investment funds, the addition of...

Japan opens door to period of expansion.
February 6, 2006... Japan's growth is both structural and cyclical and stands on firm foundations despite a rocky start to the year, Legal & General has claimed. The Japanese stock market has risen 40 per cent since hitting a 20-year low in April 2003. Alan...

Veritas poised to exploit shortfalls.
February 6, 2006... Developed market businesses may be set for a tumble, which will mean Veritas's Global Focus fund manager will step in. James Denham, manager of the AGBP30.57m ($53.9m) fund, said that he remained sceptical of the valuations of many large...

Managers and quant funds just the same, says study.
February 6, 2006... Fund managers do not act differently to quantitatively managed funds, according to research from Inalytics. The data research provider analysed more than 100 equity portfolios actively managed over the course of 2005. It compared their...

Liontrust makes first foray into Euro arena.
February 6, 2006... Liontrust has secured a seven-year manager commitment through the launch of a European equity division. The new division, Liontrust European Investment Services, has given a golden handcuff to new managers Gary West and James Inglis-Jones....

Baillie rejigs structure on three funds.
February 6, 2006... Baillie Gifford has freed up three lead managers by adding new names as co-managers on their funds. In a bid to focus more on promoting the funds, the Edinburgh-based fund manager promoted three people from other internal roles. Pete...

Old Mutual predicts good year for M&A in the US.
February 6, 2006... A boom in takeovers and capital expenditure is on the cards for the US this year, according to Old Mutual Asset Management. According to Omam, the US equity market is at it cheapest level, against both bonds and earnings, for 15 years....

Charge drag no longer an issue, say managers.
February 6, 2006... Multi-manager is finally overcoming its high-charge reputation according to the teams at Gartmore and F&C. Marcus Brookes, manager on five of the company's Portfolio range of multi-manager fund, claimed the days of 3 per cent charges...

Cautious Portfolio uses new regime.
February 6, 2006... Basic-rate taxpayers will benefit from a greater choice of income-bearing Isable funds, according to New Star Asset Management. Following the government's announcement of changes to Isa eligibility last December, New Star is hoping to lure...

Margetts explores income generating fund options.
February 6, 2006... Margetts has been spreading its net to find more income-generating funds to add to its portfolios. The boutique fund of fund manager has started to revamp its range by reducing UK smaller companies and fixed income portion of the portfolio...

B&W rolls out min cash Isa with protected equity kicker.
February 6, 2006... Bristol & West Structured Products has launched a minimum Return Bond mini cash Isa. This will have a basic deposit account, with access to the equity markets through a basket of three major world indices. The minimum investment is...

Franklin Templeton in UK range overhaul.
February 6, 2006... Franklin Templeton is set to overhaul its Oeic and Sicav ranges, with new funds expected for its UK equity and fixed income teams later this year. Jamie Hammond, sales and marketing director for Franklin Templeton in Northern Europe, said...

IFAs get retail therapy as fund sales increase.
February 6, 2006... IFAs have hailed a consumer boom following a 73 per cent yearly rise in net retail sales of investment funds. According to the Investment Managers Association, net retail sales in December 2005 were AGBP1.5bn, up from AGBP279m in December...

FSA in structured product warning.
February 6, 2006... The FSA has warned structured product providers to tread carefully in the provision of innovative investments. The regulator commented on the growth of products with underlying structures including hedge funds, insurance products and...

Property returns in line for cool-down.
February 6, 2006... The property sector is set to revert to more average returns after two years of strong out-performance, F&C has warned. The company said that the high double-digit returns for property in 2004 and 2005 were not likely to be repeated this...

Investors told not to drop smalls at love-in.
February 6, 2006... A renewed love for large-caps should not deter investors from picking up on small-cap opportunities, according Baillie Gifford and Fidelity. Iain McCombie, manager of Baillie Gifford's AGBP403.48m British Smaller Companies fund, said there...