Investment Adviser articles from January 2004

Investment Adviser archives from January 2004

Consumer panel levels attack on advert rules.
January 5, 2004... THE FSAs new rules on advertising were a recipe for confusion, the Financial Services Consumer Panel has warned. The regulator has unveiled rules outlining how investment firms must use suitable comparative past performance data in their...

UKs competitiveness put under microscope; IMA to conduct study of UKs position in global asset management industry.
January 5, 2004... By Simoney Girard The Investment Management Association is to survey the UK investment industrys ability to compete globally. The fund management trade body is preparing to produce the UK survey during the third quarter of 2004. ...

Small-cap gold rush skews All Cos.
January 5, 2004... THE rush to invest in smaller companies has distorted the market, according to Principal Investment Management. The specialist investment IFA said managers in the UK All Companies sector shifting into smaller companies to pick up on the...

Diary.
January 5, 2004... Hollands has to get himself out of a hole In the same week as Sadam Hussein was captured by the Americans down a 8ft by 6ft hole just outside his home town of Tikrit, Jason Hollands, head of communications at Isis Asset Management, was also...

Asia favoured for 2004 as exposure increases; Fund managers play down fears that China will overheat, and up risk profiles.
January 5, 2004... by James Coney MANAGERS played down fears of overheating in the Chinese economy to remain optimistic about Asian funds. A survey from Standard & Poors revealed that fund managers have increased their portfolios risk profiles at country...

Lipper trio burst on to the scene.
January 5, 2004... DATA provider Lipper has launched three analytical products for investment advisers and managers. The product suite has been produced to meet demand from the industry for products to help research the growing multi-manager market. ...

Slower earnings growth expected for year CSAM.
January 5, 2004... GLOBAL equity markets could be in for a sustained period of stability or, at best, moderate gains, according to CSAM. Credit Suisse Asset Management said its view was based on the premise that corporate earnings growth would probably slow...

Mutuals Woolnough takes a seat at M&G.
January 5, 2004... By Ashutosh Kumar FORMER Old Mutual corporate bond manager, Richard Woolnough, has now joined M&G Investments. Mr Woolnoughs arrival at M&G was one of the most high-profile bond fund manager moves in 2003. He is a highly respected bond...

Axa poaches Hendersons Ellis.
January 5, 2004... AXA has poached Hendersons Simon Ellis for the role of head of retail. Mr Ellis, who joins Axa at the end of January, was head of UK retail at Henderson since 1997. He said: "I am looking forward to working with the team to take Axa...

Roberts set to manage Aegon Extra Income; Britannic fixed interest star to fill role left by Stephen Snowden at Aegon.
January 5, 2004... By Ashutosh Kumar BRITANNIC fixed interest star David Roberts is set to take over Aegons GBP110m Extra Income fund. Before jumping ship to Aegon, Mr Roberts ran one of Britannic Asset Managements best performing funds the GBP373m...

Cautious US funds lag market.
January 5, 2004... THE typical US fund manger underperformed the market by nearly 3.5 percentage points over one year. Research from Standard & Poors highlighted that American invested funds recorded only an 8.7 per cent median return over the year to 1...

Up to 15% from equities predicted for 2004: JPMF.
January 5, 2004... EQUITY markets could return as much as 15 per cent in 2004, predicts JPMorgan Fleming. Lower valuations and less mature economic recovery would benefit the European and Japanese, said Gary Dugan, global strategist for JPMorgan Fleming. ...

All Companies back in favour at year end.
January 5, 2004... By Ashutosh Kumar THE IMAs UK All Companies sector has emerged as the most popular sector for October and November, according to the IMA. Reporting the investing funds statistics for November 2003, the Investment Management Association...

Triviality limit of 1% proposed.
January 5, 2004... A ONE per cent triviality limit would be a major step forward for investors with small pension funds, believes L&G. According to Tony Filbin, director of retirement income at Legal & General, plans to raise the trivial commutation limit of...

Equity Income beats All-Share and growth; Every equity income fund posts positive total returns for first time in five years.
January 5, 2004... By Tamsin Waghorn UK equity income funds beat the FTSE All-Share during 2003, while risky strategies paid off for high income funds. Ratings agency Standard & Poors research found the median UK equity income portfolio climbed 13.4 per...

FTSE up 330% after two decades.
January 5, 2004... The FTSE100 index turned 20 years old on 1 January 2004. Ever since launch the peaks and troughs have been fraught with drama. The biggest jumps were recorded during the early 1980s and then in the late 1990s when the technology boom...

Investors desert Euro insurance.
January 5, 2004... By James Coney A FUNDAMENTAL weakness in European insurance firms is pushing investors away, a manager has claimed. Fund managers said that while the US economy had surprised everyone by its strength, the principles of many European...

Bonham Carter calls year of hippo market.
January 5, 2004... This is the year of the hippopotamus for UK markets, according to Edward Bonham Carter, chief investment officer at Jupiter. Claiming that "economies and markets were different beasts", Mr Bonham-Carter warned investors and IFAs not to...

Hedge valuation black eye looms.
January 5, 2004... The investment industry is facing a "black eye" over the valuation of hedge fund portfolios, according to a new report. The Capco white paper on hedge fund operational risk and valuation methods has warned that unless tighter methods are...

David Aaron firm goes into administration; KPMG has been named as adminstrator for the Milton Keynes-based IFA group.
January 5, 2004... By TAmsin Waghorn The David Aaron Partnership was taken into administration two days before Christmas. Finbarr OConnell and Richard Heis, both partners for KPMG, have been named joint administrators of the Milton Keynes-based...

Fidelitys Skelt looks outside UK.
January 5, 2004... Fidelitys multi-manager team is testing the waters for funds domiciled outside the UK. Richard Skelt, portfolio manager of the Fidelity multi-manager team, said although the unfettered portfolios, both launched on 17 October, invested in...

Spanish property opens up for advisers.
January 5, 2004... Insurance & Investment Solutions has launched a service offering IFAs the chance to profit from Spanish property. IFAs can refer their clients to IIS who have become investment agents for Spanish Property Guide which works in Costa Blanca,...

Too few clients and IFAs are diversifying, says SLI.
January 5, 2004... By Simoney Girard Investors and advisers are failing to take advantage of all asset classes for diversification, according to research. Standard Life Investments said its research showed few investors paid attention to investments such...

US firms face huge fines on market timing.
January 5, 2004... US companies are facing huge fines as the investigation into market timing continues into 2004. According to the Securities and Exchange Commission, more US fund management houses are facing settlement decisions after Alliance Capital...

Market growth expected for 2004; Fund managers predict earnings will be driven by higher volumes not cost cutting in 2004, says Merrill Lynch survey.
January 5, 2004... By Tamsin Waghorn Fund managers are hoping for a bumper new year, according to the latest Merrill Lynch global survey of fund managers. A net 71 per cent of those interviewed said they thought world equity markets would be higher a...

Bignell joins Invesco.
January 5, 2004... Invesco Perpetual has poached Adrian Bignell, vice- head of the European equities team at Cazenove Group. Mr Bignell will replace fund manager Tamsin Faiers, who is moving to Scotland, according to Invesco Perpetual. Ms Faiers left the...

Britannic recruits from EFM to run US money.
January 5, 2004... Britannic Asset Management has appointed a former EFM portfolio manager to its North American desk. Ian Tabberer will join Britannic this month and work alongside Alison Wright, head of the companys US desk. Mr Tabberers appointment...

Swip set to launch its first focus fund; UK Aggressive fund will comprise 35 best ideas from firms UK equity team.
January 5, 2004... By Ashutosh Kumar Scottish Widows Investment Partnership is to break into focus funds with a new UK Aggressive fund. Steve Hutton, head of wholesale business at Swip, said the SW UK Aggressive fund was likely to be launched in the...

Framlington pulls out of FoF arena.
January 5, 2004... Framlington has decided to close its fettered fund of funds business following a review of its product range. Nick Hodgson, sales and marketing director of Framlington, said the decision was unlikely to result in fund manager redundancies....

VCT specialist in MBO.
January 5, 2004... by ashutosh kumar Northern Venture Managers, one of the UKs leading VCT providers, has been bought from Aberdeen in a management buy-out. Alastair Conn, managing director of NVM, and Tim Levett, investment director at the VCT provider,...

IAs new sector guidelines.
January 5, 2004... We have just revamped our statistics and analyst sections to incorporate the expansion of Standard & Poors UK Registered Investment Funds database. These changes will enable Investment Adviser to cover a wider range of funds as the extended...

Fears remain over a two-speed economy; After a prolonged bear market the Asset Allocation UK Defensive sector is starting to see a rise in funds, writes Ayse Ferliel.
January 5, 2004... The Asset Allocation UK Defensive sector includes funds with a portfolio invested in the asset classes of equity, fixed interest and money market, with no more than 30 per cent in equities. Although it is not one of those global investment...

Portfolio shifts lift sector.
January 5, 2004... With their exposure to equities and fixed income, funds in the Asset Allocation UK Defensive sector have offered risk-averse investors the chance to participate in the equity rally of the past nine months. Fund managers in the sector have...

Marlborough fund has impressive run.
January 5, 2004... The GBP6.16m Marlborough Equity & Bond Income fund, an unfettered fund of funds, has had an impressive run over the long- and short-term periods. Launched on 1 June 1994, the fund ranked second out of 18 funds in the Asset Allocation UK...

Manager comment.
January 5, 2004... I have managed the Marlborough Equity & Bond Income fund since October 2000. I also manage the Marlborough International Equity fund. I am a member of the fund of funds team, of which Nicholas Cooling is the investment director. We have...

Its about to get complex; Asset allocation will be more complex, as the trend for non-traditional asset classes grows.
January 5, 2004... In 2003, there have been many opportunities for investment managers to generate positive investment returns: Global bond markets have presented major trading opportunities the rally in yields in the first half of the year when, for example,...

Reasons to be cheerful; The strong returns produced by emerging markets in the past 12 months look set to continue in the new year, despite valuations and risks increasing.
January 5, 2004... There are good reasons for investors in emerging markets to feel optimistic about 2004. The asset class has produced strong returns in 2003, and the prospects for this year are steadily improving as evidence starts to come through of...

Far Eastern promise; With Asias economic environment and infrastructure improving, and businesses looking in good shape, the case for investing in the region is compelling.
January 5, 2004... After mounting a strong rally between March and October, Asian markets may have entered a consolidation phase. Between the middle of March to the end of October, the MSCI AC Asia Pacific ex Japan index returned 47 per cent, in US dollar terms....

Widening horizons; The introduction of an expanded set of statistics in IA will make analysis of funds open to UK investors easier.
January 5, 2004... This week sees the launch of an expanded set of statistics in Investment Adviser, allowing advisers to assess and evaluate information on the broader range of funds that are actually available to UK investors. Based upon reader and market...

New year ushers in a return to quality; Markets will refocus on companies that can grow their earnings in 2004.
January 5, 2004... For my first column of the New Year, I have departed from the normal script of concentrating on one fund to look at a number of different trusts. Some of which have performed poorly relative to their pier group. One or two of these I have...

The shape of things to come; 2004 may not be as disastrous for government bonds as many are predicting.
January 5, 2004... What is the outlook for the main asset categories and regions in 2004? Time for this column to attempt to play Nostradamus. Almost everyone has a downer on the prospects for government bonds this year. By itself, that ought to make...

A predilection for predictions.
January 5, 2004... At a time of the year when most are making resolutions, the investment industry is cranking furiously at the prediction mill. Investment banks expectations of a rise in the FTSE100 over the next 12 months go from essentially flat to well into...

Time to pick and choose; The coming 12 months look set to witness a true stock-pickers market.
January 5, 2004... There is undoubtedly a great deal more reason for optimism among investors than there was this time last year as they look ahead to 2004 . The latest GDP data from the US was much better than many had expected and it seems clear that its...

The rough with the smoothed.
January 5, 2004... A high level of transparency is one of the key elements that could help to put with profits back on the map. Although the concept has received much criticism over the past three years or so, most with profits investments have held up much...

We will be here for a while judge us on our numbers; Simoney Girard talks to Hugh Sergeant, head of UK equities at SocGen Asset management, and Hari Sandhu, manager of the SocGen UK Special Opportunities fund, about prospects for the fund one year on from launch.
January 5, 2004... Investment Adviser: You launched the UK Special Opportunities fund on 15 December 2002 was this the right time to launch a high-risk UK equity fund, especially after the October downturn? Hari Sandhu: It did not seem like the ideal time at...

Simplicity paper set to aid income drawdown; Gordon Browns pension proposals will create greater flexibility for industry.
January 5, 2004... By Simoney Girard THE Pensions Simplification Paper will help income drawdown products, according to providers and advisers. Proposals put forward by Gordon Brown will open the retirement market to greater flexibility for those...

Abbey looks to bolster Sipp options.
January 5, 2004... ABBEY is extending its self-invested personal pension options through its Abbey Wrap account. This will include developing online applications and portfolio management by the end of 2004, as well as launching an offshore investment bond...

Small firm exodus feared.
January 5, 2004... THE stakeholder market may see an exodus this year by providers and IFAs, according to leading life offices. Companies such as Norwich Union and Friends Provident have claimed the 1 per cent world has pushed providers towards the larger...

Safeguards raise concerns.
January 5, 2004... NEARLY half of all finance directors are concerned about the governments proposed safeguards, according to Prudential. According to its survey, 42 per cent of finance directors thought proposals for the pension protection fund for their...

Stout takes over from Briggs at Murray Intl; Changes in Aberdeen team for innovative global equity and fixed interest trust.
January 5, 2004... By Ashutosh Kumar Aberdeen fund manager Bruce Stout will take over the reins of the Murray International trust in June. At present, David Briggs, investment manager at Aberdeen Asset Management, lead manages the GBP321m investment...

Last notes plucked for Harp trust.
January 5, 2004... The board of Henderson Absolute Return Portfolio has passed its resolution to wind up the GBP105m trust. This implies that the last ditch attempt made by the board in October last year to save the trust has failed. The board had tried...

NZ trust to drop NAV discount.
January 5, 2004... The New Zealand investment trust plans to use the improved authority on share repurchases to reduce its discount to NAV. The decision follows an amendment in the Companies Act, allowing investment trusts to retain repurchased shares in...

Merged JPMF Elect will allow share class switches.
January 5, 2004... By Ashutosh Kumar The JPMF Elect investment trust, to be launched in January, will allow investors to freely switch among its share classes. The trust is to be created by merging the JPMorgan Fleming Managed Growth trust with the...

Gearing set to increase against flat FTSE.
January 5, 2004... Investment trust managers are unlikely to increase their gearing levels in 2004, according to an AITC survey. Nearly 67 per cent of the 30 managers polled in an Association of Investment Trust Companies survey said they did not intend to...

IN BRIEF.
January 5, 2004... Low reserves stop dividend The directors of the Britannic UK Income trust have announced that they are unable to declare the interim dividend of 0.6p per Guaranteed Income share. This is because the UK income trust does not have sufficient...