Investment Adviser articles from June 2005

Investment Adviser archives from June 2005

UBS hits at Schroder's global role.
June 6, 2005... Schroder has responded to allegations from UBS that it lacks the resources to make it as a global player in the fund management industry. Graham Kane, head of retail of UBS Asset Management, had singled out Schroder as a company with...

Langerman is set for Mutual Shares return.
June 6, 2005... The announcement follows the resignation of former manager David Winters, who has been linked with a tie-up with boutique manager Argonaut. Argonaut, owned by Britannic Asset Management, plans to launch a US fund and has made at least one...

Low quality debt hit hardest by GM, Ford.
June 6, 2005... Lower quality company debt has been hit in the aftermath of Ford and GM's credit downgrade, according to bond fund managers. Stephen Snowden, manager of the AGBP288.6m Old Mutual Corporate Bond fund, said the high yield market had suffered...

Barclays foresees upturn for commodity markets.
June 6, 2005... Kevin Norrish, director of commodities research at Barclays Capital, said the returns on the main indices -- Goldman Sachs Commodities index and the Dow Jones Commodities index -- were strong. Mr Norrish said: "Although commodity markets...

Lang revamps investment style.
June 6, 2005... Jeremy Lang, manager of the AGBP162m First Growth fund, has revised his style by creating a new trading approach while retaining the fundamental investment approach. There is no change for income. The manager attempts to pick up stocks that...

Board ends Amerindo contract.
June 6, 2005... The board of the AGBP23.9m Amerindo Internet trust has ended its contract agreement with the US company after its founders were arrested on fraud charges. Alberto Vilar and Gary Tanaka, the founders of trust manager Amerindo Investment...

New Star survey highlights alarming lack of knowledge.
June 6, 2005... Nearly 40 per cent of UK savers do not know where, or how to invest, according to research from New Star Asset Management. A survey of UK savers, conducted in association with financial consultancy NMG, found that most investors would...

Harvey poached to run Cazenove fund.
June 6, 2005... Mr Harvey will head fixed income for Cazenove and has been tasked with instilling an alpha-driven culture into its five-strong bond team prior to the fund launch. His departure comes nine months after deputy retail bond fund manager Alex...

Asia's GDP beats US's says Fidelity.
June 6, 2005... Asia's share of world gross domestic product growth has outstripped that of the US, according to a market report from Fidelity Investments. Including Japan, Asia's economy makes up 35 per cent of world GDP -- up 50 per cent on its share in...

Now is good time to quit new Europe: Gartmore.
June 6, 2005... Get out of emerging Europe while the going is good was the warning from Gartmore last week, after S&P reported weak 12-month returns from the region. Peter Dalgliesh, co-manager of the AGBP150m Gartmore Emerging Markets Opportunities fund,...

UK 'heading for a tricky summer'.
June 6, 2005... THE UK is in for a tricky summer, according to Allchurches' Andrew Jackson. Mr Jackson, manager of the AGBP53.8m UK Equity Growth fund, said there may be opportunities for further gains from selected stocks. However, the manager added:...

Tracker fund providers mount riposte to L&G.
June 6, 2005... F&C, which has two tracker funds, said its managers always ensured stock lending was secure. James Harwood, head of dealing for F&C Asset Management, said: "We have a specialist stock lending desk on our dealing team. "Our lending...

Needle keeps an eye on US firms' plans for cash.
June 6, 2005... Threadneedle's US team is paying close attention to how US Companies are deploying their high levels of cash. Andrew Holliman, manager of the AGBP664m Threadneedle American Growth fund, said valuations between growth and value stocks had...

50-year bond's yield too low for investors: Bates.
June 6, 2005... The government issued the bond, which matures in 2055, on 26 May offering a fixed yield of 4.25 per cent a year. While there is demand from pension funds, IFA Bates said as the yield is lower than cash, it will have little appeal for investors....

Eiris meets demand for ethical network.
June 6, 2005... With more than AGBP5.5bn now invested ethically, compared with just AGBP792m 10 years ago, Eiris has launched its Investors for Change network to help build and promote ethical investment in the UK. Group meetings will take place quarterly...

Lazard hands Peps and Isas to FundsNetwork.
June 6, 2005... Lazard has outsourced its Isa and Pep accounts to FundsNetwork. The platform will administer all Lazard's Pep and Isa accounts while the asset manager will continue to run money in the accounts. Many asset managers are expected to make...

Evershed slams oil exploration small caps.
June 6, 2005... The Citywire AAA-rated manager of the AGBP171.2m Select Opportunities fund said too much store had been set on these oil and mining companies as the sector enjoyed a long bull run. However, he said these were now trading on overstretched...

DWS UK Equity pins hopes on tough stance.
June 6, 2005... An overweight in Woolworths hit the fund late into the first quarter after private equity buyer Apax pulled out of its bid, while the general market sell-off in March shook share prices across the FTSE All-Share. Out of 79 stocks in the...

L&G sees India as next long-term bet.
June 6, 2005... In the asset manager's latest Fundamentals briefing, Sarah Nichols, who manages Asia Pacific equities for the AGBP143.6m Pacific Growth trust, said India was in a position to fully exploit its economic opportunities. She said: "With...

S&P creates Russia sector.
June 6, 2005... The Neptune fund, managed by Robin Geffen, was soft-launched back in December but has now been opened out to the market after seeing an improvement in economic news coming from Russia. Mr Geffen, Neptune's founder, is in Russia this week...

IMA to call for review of Isas in new session.
June 6, 2005... The Investment Management Association is to urge the government to review all savings vehicles and not just Isas during its 2006 review of the products. It has written to the Treasury and to the Labour government to request a better...

Buy & Sell.
June 6, 2005... Schroder Japan Alpha fund Toby Ricketts, manager of the Margetts AGBP4.2m Venture fund, has bought Schroder's AGBP175m Japan Alpha fund. Mr RIcketts (pictured) said he had been bearish on Japan and bought the fund to move to a neutral...

Performance.
June 6, 2005... Jupiter's AGBP266m Merlin Growth portfolio had the best returns in the TrustNet Balanced Managed sector over a year. The fund returned 20.33 per cent, marginally outperforming Birmingham-based Margetts Fund Management's AGBP4.6m Venture...

Miton plans offshore site for total return fund.
June 6, 2005... Miton is considering domiciling its proposed total return-style fund offshore, possibly in the Cayman Islands. Tom McGrath, fund manager for the Reading-based fund of funds group, said the fund was still very much at a developmental stage....

AITC takes VAT case to European court.
June 6, 2005... The Association of Investment Trust Companies is set take its VAT tax case to the European Court of Justice. Following an initial hearing in a UK VAT tribunal, the AITC has seen its case, which calls for VAT to be scrapped on the annual...

IFAs to increase the use of multi offerings.
June 6, 2005... Schroder held a series of 10 seminars for advisers on how they could develop their business between February and May this year. When questioned about multi-manager funds, 57 per cent of advisers said they were already using multi-manager...

Aberdeen still keen on Brazil despite rate rises.
June 6, 2005... Aberdeen is still positive on the prospects for Brazilian growth. The Brazilian government was forced to raise interest rates to 19.5 per cent to curb inflation in May yet this has not deterred manager Peter Hames, who runs the AGBP168.2m...

Wrap firms unveil their new ways to aid sales.
June 6, 2005... The battle of the wraps is hotting up again for the summer with several providers developing new ways to lure in business. Fidelity's FundsNetwork, in a bid to compete with its AGBP4bn rival Cofunds for assets under administration, is...

Axa raises technology weighting.
June 6, 2005... AXA im increased its sector weightings to technology as it spies growth opportunities there. According to Axa Investment Managers, analysts had expected a turnround in technology stocks this year, but this failed to materialise. However,...

Bond total return funds to increase.
June 6, 2005... Demand for absolute return fixed income funds will continue to grow while traditional strategies fail to deliver, according to ABN Amro. Daniel James, manager of the ABN Amro AGBP82m Absolute Return Bond fund, said: "Investors are...

Platform consultancy launched.
June 6, 2005... Riding the wave of platform launches, revamps and collapses, a consultancy advising on the best wrap for IFAs has been launched. Called Re-Evolve, the company claims to give large IFA firms the "tools, expertise and direction" to get the...

Shariah fund swells Standard's offerings.
June 6, 2005... STANDARD Life has taken a further step towards a more diversified pension fund range by adding an Islamic (Shariah) law compliant retail offering. Available to new customers as well as its 2m existing group pension customers through...

Pima wades in on issue of post A-Day investment.
June 6, 2005... The Pep and Isa Managers' Association is adding high-profile voices to its campaign to get the Treasury to address the issue of pensions and investments seriously. At an evening meeting last week at the House of Lords, Liberal Democrat...

Lawyer warns on threat of multi-tied kickbacks.
June 6, 2005... Fund providers have been warned against buying their way onto multi-tied adviser panels following the implementation of depolarisation last week. The Financial Services Authorisation policy came into force last Wednesday, bringing with it...

Clean slate helps Invesco Property.
June 6, 2005... starting with a fresh portfolio, not with an "arranged marriage" of properties, has boosted Invesco's UK Property Income trust, according to its manager. The AGBP172.6m Jersey-based investment trust, which invests mainly in commercial and...

Ecofin rejigs and turns to emerging.
June 6, 2005... The AGBP223.4m Ecofin Water & Power Opportunities trust will look to invest in emerging markets utilities with the money raised from its share issue. The split cap trust is looking to change its investment structure before it winds up in...

Henderson sees the end for arbitrageurs.
June 6, 2005... The use of treasury shares and buy-back schemes will lead to the eventual demise of arbitrageurs, according to Henderson. Using treasury shares to control the discount at which a trust trades has become increasingly popular. According...

NS&I finds UK savings have fallen to low point.
June 6, 2005... As British consumers struggle to meet their expenses, savings have dropped to their lowest point since last autumn, according to the National Savings & Investments Spring Savings survey. On average, only 5.82 per cent of the UK's salaries...

Gam man says: 'ignore the politicians'.
June 6, 2005... Mr Bennett, who has been playing a contrarian theme in his portfolio by investing heavily into Germany, said investors were too often put off investing by short-term shocks and headline political manoeuvres. Mr Bennett said: "Watch the...

A-Day may hit holiday homes claim providers.
June 6, 2005... A-DAY rule changes may leave the majority of pension savers out of the market for second, or holiday, homes, leading Sipp advisers have claimed. Although touted as the next great government giveaway, the specifics on rule changes regarding...

Rathbone to look to recycled mobiles and renewable energy.
June 6, 2005... David Holloway, marketing manager for Rathbone Unit Trust Managers, said three IPOs have allowed the company to play the mobile phone theme. The first is Fonebak, which recycles and sells old mobile phones in Europe, taking advantage of EU...

Wal-Mart warning adds to retail fear.
June 6, 2005... Gil Knight, manager of the AGBP249m Gartmore US Opportunities fund, claimed the profit warning last month could hurt fund managers as the company, which owns Asda in the UK, will find profit margins squeezed over the coming month. He said...

Teens will blow CTFs says Baillie.
June 6, 2005... Children are not ready to invest and save by the time they gain control of their child trust fund, according to Baillie Gifford. In a survey of 16 to 18-year-olds, Baillie Gifford found that 69 per cent would choose to spend a lump sum of...

MLIM's 'fresh air' Alpha gets backing from Killik.
June 6, 2005... Merrill Lynch's new UK Absolute Alpha fund has been branded a "breath of fresh air" by stockbroker and fund manager Killik. The London-based company is recommending the fund as it can cover a range of strategies, such as long and synthetic...

TriAlpha secures first Gips award.
June 6, 2005... The CFA Institute -- formerly the Association of Investment Management and Research -- has awarded a Gips certificate to a hedge fund company. TriAlpha Fund Managers, a dedicated hedge fund provider, is the first of its kind to achieve a...

Anand starts by reworking DWS Euro Growth fund.
June 6, 2005... The new manager of the AGBP225.8m DWS European Growth fund has spent a month overhauling it to prime it for better performance. Paras Anand, manager of the top-decile AGBP19m DWS European Opportunities fund, was handed management of the...

Dalton joint venture set to explore commodities.
June 6, 2005... Asset managers Dalton Strategic Partnership and Craton Capital have set up a joint venture to develop investment products for launch by the end of the year. The products are expected to be hedge funds and long-only equity funds that...

Collins to merge European fund pair.
June 6, 2005... Collins Stewart is set to merge its European funds to create a larger, more marketable fund. The AGBP14.4m Guernsey-based CS European Equity Focus fund will be merged into its mirror Dublin-based Continental European Focus fund, creating a...

Win your own hoody with IA.
June 6, 2005... This week's Diary competition is Hoo Da Hoody? to celebrate the banning of hooded tops in the Bluewater shopping centre in Kent. Apparently gangs of yobs have been hanging around the centre intimidating shoppers and generally being...

Crossing the boredom threshold.
June 6, 2005... A British lawyer last month finished the longest speech in this country's legal history, breaking the record set last year by his rival in the same protracted courtroom wrangle. Nicholas Stadlen spent 119 days presenting the case for the Bank...

Merrill fund awaits tax confirmation.
June 6, 2005... Merrill Lynch is awaiting confirmation that its planned Aim fund will benefit from the same tax advantages as the index. Richard Plackett, manager of the AGBP100.2m UK Smaller Companies and AGBP134m Special Situations funds for Merrill...

Wallets out- or else!
June 6, 2005... As the Women's Institute's 'Calendar Girls' charity reaches the AGBP1m mark and the girls go to have lunch (hopefully fully clothed) with Prince Charles and the new Mrs Prince of Wales, Diary has thought of a novel way to raise money. Regular...

It's all gone to the dogs.
June 6, 2005... And finally, this week's Investopaedia's term of the week is: "Eat your own dog food". No, really, this is a pukka investment term. The expression describes the act of a company using its own products for day-to-day operations. A company that...

We have the talent, better performance will follow.
June 6, 2005... Investment Adviser: As head of equities for M&G you have been working to reform equity structure within the company. Do you think fund managers can now operate effectively within M&G's structure without the pressures that come with working in a...

Those French are having non of it.
June 6, 2005... The actual result of the French referendum was as unsurprising as it could have been. The final tally of 55 per cent "non", 45 per cent "oui" was almost precisely in line with what opinion polls had been suggesting for over two months. Some of...

Where do we go from here?
June 6, 2005... How much trouble is Europe now in? It all depends on how one interprets the question. The mornings after the French 'non' and the Dutch 'nee' were not dissimilar to the preceding day. The immediate aftermath saw the euro fall to an eight-month...

The time to play it safe has gone.
June 6, 2005... Fund managers may be in danger of not taking enough risk. If this sounds odd, it likely accounts for both the absurd rush into government bonds and the growing popularity of hedge fund and fund of hedge fund mandates. The first trend...

Podger tidies up his 'shop window' fund.
June 6, 2005... Threadneedle has had a somewhat lean time of it of late. A number of recent changes and departures in Europe and to the bond team have not helped and have probably, in fact, unsettled some intermediaries. The UK desk has also been lacklustre,...

Flight to safety explains low bond yields.
June 6, 2005... Why are government bond yields so low? It is a question that has puzzled no less an authority than Alan Greenspan, the chairman of the US Federal Reserve. At the start of the year, many strategists expected government bond yields to move...

The long and the short of the 50-year bond.
June 6, 2005... The gilt market has been driven by the need to match assets more closely with liabilities over the past few years. This has led to a preference for fixed income over equities and to the lengthening of gilt benchmark durations. Meanwhile, swap...

When two strategies are better than one.
June 6, 2005... Since the beginning of the 20th Century, investors have sought to pinpoint the most effective investment strategy when it comes to yielding lucrative returns. However, as latter day markets evolve and increasingly reflect the dynamics of the...

Abbey arm gets given wrap and Sipp control.
June 6, 2005... Abbey has handed over all the development and marketing of its wrap and Sipp products to its James Hay subsidiary. Following a review into the core business of Abbey after its takeover by Spanish bank Santander last year, the Abbey wrap has...

US and them.
June 6, 2005... To the doleful bugling of the Last Post, the Stars and Stripes is being lowered at an increasing number of UK investment houses. The loss of appetite for managing the world's most important stock market, the US, from London is becoming a...

Working to keep things private.
June 6, 2005... IFAs deal with personal data on a day-to-day basis. They collect personal data from a client when they take initial instructions, they pass some of that personal data to financial services companies and they receive personal data from financial...

The 5 million (pound) question over CISs.
June 6, 2005... The use of approved collective investment schemes and investment trusts by the retail investor as part of their investment strategy is well established. It provides the less wealthy investor with access to a diversified portfolio, considerably...

Sector's slow switch to quality.
June 6, 2005... The global bond markets have already priced in the slowdown in global economic growth, however, increasing risk aversion among investors is causing a slow-burning flight to quality fixed interest securities. After two years of pocketing...

'Tortoise' sector chugs along.
June 6, 2005... All funds in the S&P Fixed Income Global Sterling Based sector have posted steady, positive returns in two of the past three years, the exception being the year to April 2004. Returns across 34 funds in the sector over the past 12 months...

Taming volatility by using derivatives.
June 6, 2005... The AGBP244.2m Newton International Bond fund was launched on 1 Feb 1991 and has been managed by Stewart Cowley since July 2001. The fund has performed strongly over the longer term, returning 23.7 per cent over three years against a sector...

manager Comment - Stewart Cowley.
June 6, 2005... I moved from Hill Samuel to Newton in 2000 and have run the fund since July 2001. I work closely with Paul Brain, who deputises for me in my absence. Having worked at Hill Samuel and Invesco, as well as at a broker, I find the atmosphere...

Diversity brings the sector together.
June 6, 2005... The one thing in common about funds in the Fixed Income Global Sterling Based sector is that they seem to be singing from the same hymn sheet. The funds in the sector range from the tiny AGBP1.5m Lloyds TSB International Bond fund, to the...

The euro's decline seems like a buying opportunity.
June 6, 2005... Others may describe me as a stale bear on global bond markets, as I have been consistently negative since initially writing in September 2002: "Ideally, I would sell the lot and switch into equities to take advantage of the best switching terms...

TERs lower in UK-run active equity offerings.
June 6, 2005... Offshore funds have higher total expense ratios than onshore equivalents but lower annual management fees, research has claimed. The research showed TERs in UK and global equity funds were generally higher in offshore unit trusts and Oeics....

F&C European funds take a defensive stance.
June 6, 2005... Davina Curling, manager of the AGBP38.4m European Prime and AGBP267.3m European portfolios, said it was time to play the markets in Europe defensively. This was due to a question mark hanging over the US economic outlook, which was hit...

Argonaut aims for the high end.
June 6, 2005... Aiming to create a specialist high alpha unit trust, Britannic Asset Management launched its new Argonaut European Alpha fund on 12 May 2005. The fund will seek investment opportunities within the countries on Europe's geographic...

Matrix will let advisers Ascend again.
June 6, 2005... Matrix has reopened its Ascension Plan to new investors after its launch last year. The fund's performance is linked to the AGBP30m Winton Trading Strategies fund, which is run by BNP Paribas. This has risen by 14.95 per cent since launch...

Giving a 25 per cent return for the experienced only.
June 6, 2005... The AGBP2.3m Epic Select Opportunities fund was launched 6 May 2004 and is managed by the former Clerical Medical/Insight Investment team of Simon Shaw and Jonathan Fieldsend. In the year to 27 May, the fund produced a 25 per cent return...

Cash boost for Midas Balanced.
June 6, 2005... Alan Borrows, manager of the AGBP49.5m Midas Capital Balanced Income fund, is busy investing an inflow of cash following his AAA-rating by Citywire. Last month, Mr Borrows was awarded the rating for consistent three-year outperformance on...

Stargate has its eyes set on the big screen.
June 6, 2005... Stargate Capital Management has launched its first capital protected fund investing in films. Called Magicgate, it has been launched alongside film producer Magic Hour and will invest 64 per cent of is assets in fixed income and 28.5 per...

Baillie's Barker prepares to rework High Yield holdings.
June 6, 2005... Baillie Gifford's High Yield Bond manager will have to re-invest 10 per cent of the fund as a large percentage of its portfolio nears refinancing. Ken Barker, manager of the AGBP20m fund, said most bonds were bought with an eight to...

Helping to develop financial capability.
June 16, 2005... There is a ready and increasing acceptance that there is a need for financial education. There is also common ground that financial education forms part of a continuum that commences with financial education, passes through generic advice...

Appetite for e-training grows.
June 16, 2005... As financial advisers everywhere ponder the challenges of the depolarised world, the concerns and issues will be familiar to many. How do you balance the day-to-day demands of looking after your clients and running your business, while at...

Successor to FPC provides professional edge for advisers.
June 16, 2005... Examinations and qualifications are not usually the sorts of things to stir nostalgia, but the decision to phase out the CII's Financial Planning Certificate generated considerable emotion among the financial advice community. The FPC was...

Exam bodies in shake-up.
June 16, 2005... The traditional insurance education has been home grown within an organisation with external examinations being taken through an awarding body such as the Chartered Insurance Institute. Traditionally, there has been no link between awarding...

Significant image improvement seen.
June 16, 2005... It is no secret that our industry is an ageing one. The majority of IFAs are over 50, with plenty of years' service under their belts. Our press has not been great and financial advice is still something that appeals mainly to the over-40s,...