Investment Adviser articles from July 2008

Investment Adviser archives from July 2008

Santander appoints raft of fresh talent.
July 7, 2008... Byline: Oliver Good Mark Lyttleton to run UK equity slice of multi-manager funds Santander Asset Management has appointed a raft of new talent, including BlackRock's Mark Lyttleton, to run the GBP800m UK equity portion of its...

The sweet deal that turned sour.
July 7, 2008... Byline: Kevin Burke A crisis in the auction-rate securities markets has hit both investors and advisers For financial advisers who hold themselves to the highest fiduciary standards and accept their role as a steward of their clients'...

Varying commodities.
July 7, 2008... Byline: Nicholas Brooks, head of research and investment strategy at ETF Securities Commodities have had a great run lately, but fears of an extended bubble don't take into account the wide differences in idividual prices Commodity...

Ermitage transfers Money Market fund to Insight.
July 7, 2008... Byline: James Kenny Alternative asset management firm Ermitage Group has transferred the management of its $558m (GBP281m) Money Market fund to Insight Investment following an internal review The vehicle had been managed by Liberty...

IFAs welcome demands for Treasury to prevent fund exodus.
July 7, 2008... Byline: Nick Rice IMA chief executive calls for tax-exempt regime for UK authorised funds and abolishing of Schedule 19 Stamp Duty Reserve Tsax on fund units IFAs have welcomed the IMA's demand to the Treasury to make UK fund taxes...

Aegon unveils IFA apprenticeship scheme.
July 7, 2008... Byline: Nick Rice Aegon UK's Positive Solutions learning academy has unveiled an Apprenticeship Scheme for prospective IFAs. The scheme will take on 20 trainees in Manchester and London this autumn in preparation for a nationwide...

ETF claims commodities gaining on equities so far this year.
July 7, 2008... Byline: Nick Rice ETF Securities said commodities gained 40 per cent more than equities in the first half of 2008 and delivered four times their returns over the last 10 years. The ETFS All Commodities basket rose 15.6 per cent during...

Cold Buffet leaves diners hungry for more.
July 7, 2008... Byline: James Kenny Now diary loves Warren Buffett as well as giving to charity, but $2.1m (GBP1.05m) for lunch seems a bit extreme. That's the price paid by a Chinese investment manager in order to have lunch with the great man. ...

Michael's return from island life.
July 7, 2008... Byline: Nick Rice Some people certainly need a break from the private equity industry, but few go to the other side of the world to get it. When Michael Probin at Isis Equity Partners swanned off to the Falkland Islands a couple of...

The colour of magic.
July 7, 2008... Byline: Feargus O'Sullivan I learnt several remarkable things during my teenage exchange visit to the historic but surprisingly godforsaken city of Reims. I discovered, for example, that the French pop charts were littered with pouting...

Pictet prunes portfolio.
July 7, 2008... Byline: Catherine Neilan Changes to Pictet Funds' $101m (GBP51m) Telecoms vehicle, creating a Digital Communications fund, have seen two-thirds of the portfolio culled. Manager Bruno Lippens has also acquired a new co-manager, internet...

Time to spend it.
July 7, 2008... Byline: Hugo Greenhalgh Have people stopped taking their summer holidays? Anecdotal evidence suggests many this year have decided to forego their annual break as the credit crunch starts to bite. Can there be any more evidence of the...

Martin Currie adds GBP120m alpha fund to Skandia platform.
July 7, 2008... Byline: Nick Rice Martin Currie Investment Management has added its GBP120m North American Alpha fund to the Skandia MultiFUNDS platform. Although the 25-stock fund was launched in November and does not yet have a one-year track...

Gartmore adds sterling class to Latin American fund.
July 7, 2008... Byline: Nick Rice Pursglove says decision follows UK clients' recognition of opportunities in emerging markets Gartmore has announced it will add a sterling share class to its $1.4bn (GBP702.8m) Sicav Latin American fund this autumn....

BDO Stoy Hayward to rebrand.
July 7, 2008... Byline: Nick Rice BDO Stoy Hayward Investment Management has announced plans to rebrand itself and reshape its product range to capitalise on its Fitzwilliam label. Sharon Segal, manager of the GBP103.8m Fitzwilliam Balanced Growth...

Watchdog's announcement on CFDs welcomed by industry bodies.
July 7, 2008... Byline: James Kenny The FSA's announcement about the disclosure of contracts for difference has been widely supported by leading industry bodies such as the AIC, the IMA and Apcims. The watchdog said a general disclosure regime for...

Dual approach gives best of both worlds.
July 7, 2008... Byline: Stephen Wilmot, features writer JPMorgan fund manager Francesco Conte talks to Stephen Wilmot about running both growth and value styles Over nearly 10 years of jointly managing the GBP199m JPM Europe Smaller Companies fund,...

Fitch urges rethink on property liquidity.
July 7, 2008... Byline: Nick Rice Ratings group says investor redemptions in difficult times forced sales Fitch Ratings has called for a reassessment of the way open-ended real estate managers control the liquidity of their portfolios following the...

Conforto acquires McCroddan.
July 7, 2008... Byline: Nick Rice Conforto Financial Management has announced it is acquiring fellow Hertfordshire-based IFA the McCroddan Partnership to extend its fee-based and high net worth business. Conforto, which has built a reputation for...

Surtees looks to credit default swaps.
July 7, 2008... Byline: Nick Rice Simon Surtees, co-head of fixed income at Gartmore, has confirmed he is using the troubled credit default swap market to bet whether firms will survive a potential solvency crisis. He and fellow co-head Karl Bergqwist...

Brett Williams named as new Cofunds chie.
July 7, 2008... Byline: Nick Rice Cofunds has named Brett Williams, former head of Skandia Selestia, as its new chief executive. Mr Williams, currently chief executive of Skandia's UK business unit, is expected to replace current chief executive...

Seeking out small-cap growth stories spells success.
July 7, 2008... Byline: Laura Mossman Growth is good, but some 'small caps' are bigger than others For managers within the IMA European Smaller Companies sector seeking out good-quality growth stories at the bottom end of the capitalisation scale is...

A palpable gloom.
July 7, 2008... Byline: Martin Wood, analyst, Financial Express Research The concerns touching prospects for the developed Western economies continue to roll on an inexorable eastbound tide, and the gloom is now palpable in Europe. Recently, European...

Cocoa suddenly looks very hot.
July 7, 2008... Byline: Oliver Good It may be summer, but Clem Chambers of stocks and shares website ADVFN thinks it's time for some hot chocolate. The tipster said it could be time for cocoa prices to rocket: "Just like the commodity bubble of the...

Goldilocks is dead.
July 7, 2008... Byline: Oliver Good Avid Diary readers will have noticed a certain individual graces our pages on a very regular basis. No, it's no Resolution's Jonathan Polin, but Goldilocks. Thanks to the popular investment mantra, "not too hot, not...

You won't get away with it.
July 7, 2008... Byline: Oliver Good Note to readers: if you work in IT for a high-street retailer, you are probably not capable of carrying off a serious case of market abuse, and even less likely to get away with it. Last week, the FSA fined an IT...

Is it the end of an era for global emerging markets?
July 7, 2008... Byline: Rob Griffin is a freelance journalist Global emerging markets have been a lucrative area for investment trusts to invest in, but the glory days may be coming to an end as inflationary pressures increase Global emerging markets...

Barclays rolls out new suite of structured products.
July 7, 2008... Byline: James Kenny Barclays Wealth has revealed its latest suite of structured products designed to offer better terms than previous versions. The new products will be open for investment until 29 August, and will include the...

S&P rolls out Middle East index.
July 7, 2008... Byline: Oliver Good Standard & Poor's has launched the S&P GCC 40 index, providing tradeable exposure to 40 of the largest companies on the primary exchanges of the Middle East. The stock exchanges of Bahrain, Kuwait, Oman, Qatar and...

SGAM announces changes to tech fund after Torry's departure.
July 7, 2008... Byline: Nick Rice Firm defends its philosophy after criticism from outgoing co-manager Alan Torry Societe Generale Asset Management has defended its philosophy and announced changes on its GBP52.3m Technology vehicle following...

UK p/e ratios favour gilts and equities.
July 7, 2008... Byline: Nick Rice The UK's single-digit p/e ratios point to sound five-year performance for equities and gilts, Axa Investment Managers has claimed. Chris Iggo, senior strategist, UK, observed the p/e ratio of the UK market excluding...

Schroders appoints Soueissy as Middle East analyst.
July 7, 2008... Byline: James Kenny Schroder Investment Management is continuing to build its Middle East and North Africa team with the appointment of Maha Soueissy as Middle East equity analyst. Ms Soueissy's appointment comes a week a As with...

Axa unveils new developments in Elevate wrap platform.
July 7, 2008... Byline: James Kenny Axa has revealed the latest developments in its new wrap platform Elevate. The latest developments include unbundled pricing, a pension wrapper, securities trading and upgraded investment tools. The group said...

Apcims remains opposed to single EU regulator.
July 7, 2008... Byline: Catherine Neilan The incoming French president of the European Union must "resist any pressure" to create a single centralised European regulator, the Association of Private Client Investment Managers and Stockbrokers has urged....

The US feels the icy blast of the four winds.
July 7, 2008... Byline: Robin Geffen and James Dowey A spreading credit crunch, low house prices, soaring gas prices and a downward trend in earnings mean the US economy is unlikely to rebound anytime soon The US economy is limping not slumping. The...

Can we learn to love Japan?
July 7, 2008... Byline: Tony Lanning is head of multi-manager at Gartmore Investment Management In the current market environment, there are few places to hide. But Japan - after a number of false dawns - may prove to be one. Unlike some of their...

The pain goes around and around.
July 7, 2008... Byline: Philip Coggan Oil priced at or above $100 a barrel is bad news but why have equity markets remained unaffected so far? It is not an appealing combination. Oil can't stop going up; shares can't stop going down. As June tottered...

Infrastructure India raises GBP37m on LSE debut.
July 7, 2008... Byline: Oliver Good Closed-end fund Infrastructure India raised GBP37m for its debut on the London Stock Exchange last week. The Isle of Man-based investment company was established to provide investors with exposure to Indian...

Fidelity manager urges investors to look beyond obvious Asia infrastructure plays.
July 7, 2008... Byline: Oliver Good Veteran manager says many sectors could benefit as emerging market infrastructure spending set to more than double within a decade Investors must look beyond the obvious infrastructure and agriculture plays to find...

Henderson warns of persisting slowdown outside US.
July 7, 2008... Byline: Nick Rice Henderson Global Investors has warned of a downturn outside the US as slowing exports and inflation hit Europe, Japan and the emerging markets. The asset manager said disposable real income was under threat due to...

BNP Paribas launches Privato UK.
July 7, 2008... Byline: Nick Rice BNP Paribas has launched its European Privalto brand into the UK market to focus exclusively on structured funds with daily dealing and valuation. Privalto UK will house a UK-domiciled set of capital-protected...

Skandia drops Selestia brand.
July 7, 2008... Byline: James Kenny Skandia has opted to axe its Selestia brand and develop its platform into a full served wealth management wrap under the name Skandia Investment Solutions. Skandia said the name change followed feedback from IFAs...

US is still fertile ground for short-term investments, claim top IFAs.
July 7, 2008... Byline: James Kenny Fund managers bullish over prospects for US economy and predict bounce in short term Investors can still find opportunities in the US market in the short term, but must be selective about where to place money,...

Large IFA firms expected to miss TCF deadline.
July 7, 2008... Byline: James Kenny At least one-fifth of "larger IFA firms" could fail to meet the December deadline for demonstrating they are consistently treating customers fairly, the FSA has warned. In its latest update on firms' progress...

Fundamentals, not speculation, driving up price of oil claims Alliance.
July 7, 2008... Byline: James Kenny Fundamentals rather than speculation are driving oil prices higher, according to Alliance Trust. Oil prices recently hit an all-time high of $143 on the back of fears over the global oil supply and the downwards...

Renewable energy stocks will not be hit by oil price correction says Pictet.
July 7, 2008... Byline: Catherine Neilan Renewable stocks have not kept up with price of oil so if it drops they will not suffer claims firm Renewable energy stocks will not suffer if there is a correction in the price of oil, thanks to support from...

Genworth launches index to measure consumer vulnerabilty.
July 7, 2008... Byline: Oliver Good Financial security firm Genworth Financial has launched the first ever index measuring consumer financial vulnerability. The index represents the share of survey respondents in a given country who feel financially...

The new generation of broker funds.
July 7, 2008... Byline: Craig Knight is managing director at Sinfonia Asset Management Broker funds have had a bad time of it, but the latest progressive incarnation could change all that Broker-led funds often receive bad press, which is little...

Alliance appoints Lawson to expand business range.
July 7, 2008... Byline: Oliver Good Alliance Trust Asset Management, the newly formed subsidiary of Alliance Trust, has appointed Benedict Lawson as director of business development. Mr Lawson joined from Seven Investment Management and will work to...

BlackRock predicts inflation fall.
July 7, 2008... Byline: Oliver Good Inflation is likely to come under control in the medium term, according to Richard Urwin, head of asset allocation and economics at BlackRock. Mr Urwin said inflation was likely to decline from its current elevated...

Dalton to shut Melchior fund.
July 7, 2008... Byline: Stephen Wilmot Dalton Strategic Partners is closing the GBP6.1m Melchior European Opportunities fund after a cycle of underperformance and redemptions made it increasingly uneconomical to run. According to Magnus Spence, DSP's...

Nutt income trust's NAV falls by 17.4%.
July 7, 2008... Byline: Oliver Good Manager blames lack of exposure and poor housebuilder call for underperforming benchmark A lack of exposure to major mining stocks and a poor call in housebuilder Bellway have contributed to star manager Anthony...

Materials pay off for JPM Russian Securities.
July 7, 2008... Byline: Oliver Good Overweight positions in materials and consumer-related themes at the expense of the energy sector, led to outperformance for JPMorgan's GBP519.3m Russian Securities investment trust, its manager has claimed. Oleg...

FoFs reveal increased interest in Russia.
July 7, 2008... Byline: Nick Rice A number of funds of funds have revealed they are investing in Russia to benefit from the continuing boom in energy and consumer opportunities. Both GBP6m Gartmore MultiManager Active and GBP27m Credit Suisse...

Absolute Return sector sees GBP260m net inflows.
July 7, 2008... Byline: Catherine Neilan IMA sector was second only to UK Corporate Bond, despite being association's newest sector The IMA's Absolute Return sector is continuing its growth in assets, recording net inflows of GBP260m last month,...

Building up to a future clash of the titans.
July 7, 2008... Byline: Catherine Neilan Fund managers have been hit hard this year but instead of giving in they are putting up a fight Actively managed funds have just experienced their worst 12 month sales for as far back as Lipper data goes. But...

Barings remain positive on prospects for Japan.
July 7, 2008... Byline: James Kenny A more positive economic backdrop and increasing opportunities for investors has made the Japanese equity market more attractive, according to Baring Asset Management. Joji Maki, head of Japanese equities and...

Legg Mason Strategic Bond fund is renamed.
July 7, 2008... Byline: Oliver Good The GBP88.5m Legg Mason Strategic Bond fund has been renamed to better reflect the underlying securities in which it invests. It became the Legg Mason Sterling Corporate Plus Bond fund on 1 July. The firm said the...

Shareholders agree benchmark change.
July 7, 2008... Byline: Oliver Good Shareholders in Martin Currie's GBP113.6m Pacific Trust have voted to adjust the fund's benchmark, removing a fixed exposure to Japan. The benchmark was changed from the MSCI All Countries Asia Pacific (Japan fixed...

Infrastructure India raises GBP37m for LSE debut.
July 7, 2008... Byline: Oliver Good Closed-end fund Infrastructure India has raised GBP37m for its debut on the London Stock Exchange (LSE). The Isle of Man-based investment company was established to provide investors with exposure to Indian...

Renewable energy won't suffer from oil correction, claims Pictet.
July 7, 2008... Byline: Catherine Neilan Renewable energy stocks will not suffer if there is a correction in the price of oil, thanks to support from the regulatory environment and improving efficiency, Pictet Funds has said. Philipe de Weck, manager...

BNP Paribas launches European Privalto in UK.
July 7, 2008... Byline: Nick Rice BNP Paribas has launched its European Privalto brand into the UK market to focus exclusively on structured funds with daily dealing and valuation. Privalto UK will house a UK-domiciled set of capital-protected...

Investors must look deeper for best ideas in Asian: Fidelity.
July 7, 2008... Byline: Oliver Good Investors must look beyond the obvious infrastructure and agriculture plays to find the best ideas in Asia, according to the manager of Fidelity International's recently launched GBP6.2m Asian Aggressive fund. The...

Martin Currie adjusts Pacific Trust's benchmark.
July 7, 2008... Byline: Oliver Good Shareholders in Martin Currie's GBP113.6m Pacific Trust have voted to adjust the fund's benchmark, removing a fixed exposure to Japan. The benchmark was changed from the MSCI All Countries Asia Pacific (Japan fixed...

Turquoise gains FSA approval for trading facility.
July 7, 2008... Byline: Nick Rice Pan-European electronic stock exchange Turquoise has won Financial Services Authority (FSA) approval for its multi-lateral trading facility and a MiFID passport to all countries in the European Economic Area. The...

Legg Mason renames strategic bond fund.
July 7, 2008... Byline: Oliver Good The GBP88.5m Legg Mason Strategic Bond fund is to be renamed to better reflect the underlying securities in which it invests. It will become the Legg Mason Sterling Corporate Plus Bond fund on 1 July. The...

Apcims warns against centralised European regulator.
July 7, 2008... Byline: Catherine Neilan The incoming French president of the European Union must "resist any pressure" to create a single centralised European regulator, the Association of Private Client Investment Managers and Stockbrokers (Apcims) has...

Schroders urges caution over high yield debt funds.
July 7, 2008... Byline: Nick Rice Schroder Investment Management has expressed caution over high-yield debt funds after Standard and Poor's hailed an investment-grade opportunity in the sector. Andrew Yeadon, head of multi-manager at Schroders,...

Multi-managers plump for replicators amid industry controversy.
July 7, 2008... Byline: Nick Rice Some managers scepticalof hedge fund sector trackers, preffsering to invest in hedge funds to generate alpha Multi-managers have moved to buy into cheap hedge fund strategy replicators amid controversy about their...

Is this the tipping point for oil demand?
July 7, 2008... Byline: David Nelson is chairman of the investment policy committee at Legg Mason Capital Management The tight supply and demand balance has contributed to the huge rise in oil prices, but there is growing evidence that consumers are...

Keeping a clear focus on risk control.
July 7, 2008... Byline: Jim Robinson Barings fund manager Nicholas Williams talks to Jim Robinson about his goals during tough times for the sector Nicholas Williams, manager of the GBP297.6m Baring Europe Select trust, aims to beat his benchmark, the...

Inroads into the developing world and maintaining a duty of care.
July 7, 2008... Byline: Nick Rice Threadneedle's head of UK retail sales Gary Collind talks to Nick Rice about an extremely important year for the company Last year was crucial for Threadneedle. The board appointed Crispin Henderson chief executive,...

"We want to give clients online access to their portfolio. We'll be able to do that for everything going through the platform. It is a step change towards automation.".
July 7, 2008... Byline: Stephen Wilmot AWD Group chief executive Mike Kirsch talks to Stephen Wilmot about growing the number of advisers and a strategy of volumes over margins Mike Kirsch, chief executive of the AWD Group's UK operations, must...

Searching for a true measure of risk.
July 14, 2008... Byline: Stephen Wilmot Can a concept as vague as risk be summed up in one neat percentage? Readers who consult Investment Adviser's fund listings section will be familiar with the right-hand column headed "risk". We are told, for...

Legg Mason's George sees a bounce for US small caps.
July 14, 2008... Byline: Oliver Good Manager of firm's US smaller Companies fund claims technology could resurface as tool for productivity in slow-growth environment US small-cap stocks have staged a strong recovery and outperformed their large-cap...

Steve Brann leaves Midas Capital Partners.
July 14, 2008... Byline: Oliver Good Midas Capital Partners has announced that Steve Brann has left the company and stepped down from managing its GBP59m CF Miton Arctutus fund. The multi-asset offering will continue to be managed by Scott Campbell...

Fitch predicts mergers.
July 14, 2008... Byline: Oliver Good & Nick Rice Fitch Ratings has predicted a wave of consolidation and outsourcing in the retail space, following worsening conditions for asset managers. The ratings agency also said parts of the industry will head...

Vatican succumbs to market woes.
July 14, 2008... Byline: Oliver Good It seems that even the power of the almighty is no protection from the impending global economic downturn. It was revealed last week the Vatican made a loss last year, as the weaker dollar reduced the value of...

F&C shares fall after Dawnay Day offload investments.
July 14, 2008... Byline: James Kenny Shares in F&C Asset Management fell by more than a quarter of their stock market value last week after the company's second-largest shareholder, Dawnay Day, offloaded a sizeable chunk of its investments. The...

S&P's upgrades funds to AA-rating.
July 14, 2008... Byline: Nick Rice Standard and Poor's has upgraded the Principal Global Investors Emerging Markets Equity and European Equity funds to a AA-rating. The agency now rates nine of Principal's 10 Irish-domiciled Ucits portfolios, three...

Marlborough embarks on talent search for new funds.
July 14, 2008... Byline: Nick Rice Firm seeks to hire two to three member per team to launch Europe ex UK and Japan equity portfolios Keith Ounsworth, sales and marketing director, said the asset manager wanted to hire two to three members per team....

Carne Global launches "Best Practice" product.
July 14, 2008... Byline: Luisa Miller Carne Global Financial Services Group has launched a Hedge & Traditional Fund Valuation "Best Practice" product to help asset managers follow valuation best practice across all asset classes and products. The new...

IFAs increasingly aware of importance of the web.
July 14, 2008... Byline: Luisa Miller IFAs are increasingly recognising the importance of the internet to consumers searching for financial advice, according to research by unbiased.co.uk. The study found that 61 per cent of IFAs considered the...

Thesis voices concerns over global emerging markets.
July 14, 2008... Byline: Luisa Miller Thesis Asset Management is steering its Optima fund of funds range and private client portfolios away from global emerging market managers. Thesis said it was concerned about the unknown concentration of risk to...