Investment Adviser articles from June 2006

Investment Adviser archives from June 2006

New Swip fund aims for top real estate exposure.
June 5, 2006... Scottish Widows Investment Partnership has confirmed details of its newest fund, a multi manager-style offering investing in global real estate securities. The fund will be lead managed by Swip's head of balanced funds Jeff King, and it...

Generic advice now regulated.
June 5, 2006... The Financial Services Skills Council has published National Occupational Standards for people providing generic financial advice. National Occupational Standards are developed by specific industries as a benchmark for best practice, and...

Smaller IFAs attack Christows' arrogance.
June 5, 2006... Tightening certification requirements are likely to force IFAs out of the asset allocation business within the next five years, Christows has claimed. Sales and marketing director Robin O'Grady said: "Growing parts of an IFA's business are...

Small cap man joins Insight.
June 5, 2006... Insight has bolstered its UK equities desk with the appointment of Mike Willis as small cap manager. Mr Willis, who will manage the company's range of small cap funds along with Ed Robinson, joins the company in July from F&C. The...

Nuclear threat fails to put off Anglo-Sino Korean fund.
June 5, 2006... London-based fund manager Anglo-Sino Capital is launching a fund investing solely in North Korea despite reports that its government is to launch a nuclear attack. The company said it expected to raise up to AGBP54m for the new Chosun...

L&C Pensions set to release latest model.
June 5, 2006... Despite industry speculation that the open annuity would cease to exist after A-Day, annuity providers L&C Pensions has announced plans to replace their original product with a revamped version. L&C will start selling the new annuity some...

Declining yields hit retirees' hip pocket.
June 5, 2006... According to the first Prudential Annuities Index, healthy pensioners retiring today are up to 4 per cent worse off than they would have been a year ago. Aston Goodey, head of retirement for Prudential UK, said: "The continuing decline in...

Retail will not feel the benefit of CDOs.
June 5, 2006... Collateralised debt obligations, or debt portfolios with a range of risk profiles, are unlikely to filter down into the retail sector, despite exponential growth in the asset class over recent years. The first few months of 2006 has seen...

Standard Life fund counts its blessings.
June 5, 2006... The AGBP252.25m Standard Life European Private Equity trust has benefited from a triumvirate of positive market conditions during the past six months, the trust has reported. Scott Dobbie, the investment company's chairman, wrote in his...

Managers get permanency as Cox says his goodbyes.
June 5, 2006... Franklin Templeton has confirmed that four fund managers on their range of Europe-focused Oeic and Sicav funds have been made permanent in their roles. George Ritchie, Martin Cobb, Uwe Zoellner and Andrew Mackirdy had been serving as...

IFAs have a new guide for using structured products.
June 5, 2006... Barclays has released a guide to structured products for IFAs who are wary of the asset class. It offers case studies showing the kinds of problems clients might have and potential solutions available using structured products. Colin...

Consumer reticence bears fruit.
June 5, 2006... Two years of UK consumers staying away from the high street has created investment opportunities in several sectors. That is the view of David Stevenson, co-manager of the AGBP35.4m Britannic Cartesian UK Opportunities fund with Andrew...

Market falls may be more help than harm to investors.
June 5, 2006... Falls in the market are not necessarily bad news for a venture capital trust investor, according to Andrew Buchanan, manager of the Close Brothers Aim VCT investment trust. The manager of the AGBP27.29m fund said recent falls had merely...

New tracker fund favours property.
June 5, 2006... IFA product distribution company Product Innovations has launched a six-year structured product that allows investors to capitalise on the global property market. The Aria Global Property Tracker Plus, which opened with a participation...

New fund to target property in Asia.
June 5, 2006... Barclays Capital has unveiled a new fund offering exposure to Asian property. The Asian Real Estate Income fund, which is sterling denominated, will invest in Asian Real Estate Investment Trusts and aims to return a gross annual yield of...

Acquisition sparks resignations.
June 5, 2006... Gartmore's management buy out has already claimed the scalps of three fund managers whom, sources claim, would rather leave the fund manager than accept what they believed amounted to a demotion. Within days of Gartmore's acquisition by...

ING UK trust gets active in property.
June 5, 2006... The AGBP367m ING UK Real Estate Income Trust has made its first acquisition since launching last October. It has bought Boundary House, an office building in London, for AGBP16.1m. Elliott Caldwell, head of retail investment products...

Road less travelled proves worthwhile for Japan fund.
June 5, 2006... A decision to change focus from from export growth to domestic growth back in 2002 has paid off for Lesley Kaye, manager of the AGBP293m Gam Japan fund. Ms Kaye, whose fund has just been upgraded to an AA rating by S&P, said: "During the...

German markets set to reign, says Baring.
June 5, 2006... Germany is set to stand apart from economic uncertainty in the rest of Europe, claims Baring. According to Gianluca Giardina, manager of Baring's AGBP258.7m German Growth Trust, the sell-off in German equities over recent years has created...

Hedge funds left on the brink of collapse.
June 5, 2006... Market volatility over the past month has left many hedge funds, especially in continental Europe, stretched and tugging at the end of their credit lines, market observers have said. Justin Urquhart Stewart, marketing director for wealth...

'Metal stocks will regain their lustre'.
June 5, 2006... Commodity prices will not experience another sharp correction this year despite concerns over elevated price levels, senior fund managers have claimed. Managers at ABN Amro and Investec say that the significant pull-back seen in early...

Star Active manager happy with assets despite volatility.
June 5, 2006... Markets are going to take several months to calm down following the bumpy ride of the last month. According to Mark Harris, manager of the AGBP182.5m New Star Active Portfolio, the volatility would continue, but he remained happy with his...

Surge in demand for CTF.
June 5, 2006... The much-maligned Child Trust Fund is now enjoying a strong take-up, according to HM Revenue & Customs. More than 75 per cent of the first children to receive vouchers have had them invested, while two-thirds of all parents to receive the...

Evolution sets sights on Williams de Broe.
June 5, 2006... Christows has confirmed that its parent company Evolution is in exclusive talks with Williams de Broe with a view to acquiring the wealth manager and its offshore multi manager fund range. Colin Lewis, executive director for Christows,...

Calm waters ahead for global markets.
June 5, 2006... Barclays Global Investors has claimed that the outlook for global markets is far calmer than the recent sell-off in global equities might suggest. According to a market outlook report by Haydn Davies, the company's chief economist, there...

Standard unruffled by flap over markets.
June 5, 2006... Standard Life chairman Sandy Crombie is to push ahead with the company's floatation early next month, claiming he is "not phased" by recent stock market volatility. This comes after 98 per cent of Standard Life's 1.6m shareholders voted...

F&C say correction will have benefits.
June 5, 2006... The multi-manager team at F&C welcomed recent volatility in the equity market. According to Tom Caddick, manager of the AGBP41.2m Cautious and AGBP164.1m Distribution portfolios, an surge in volatility had a positive side. He said:...

RLAM fund soft launch imminent.
June 5, 2006... Royal London Asset Management plans to soft-launch its new UK Strategic Growth Fund this month. Fund manager Leigh Himsworth, who joined from Rensburg in April this year, will adopt a stock-picking approach. He believes that small and...

Luxuries tempt EMs.
June 5, 2006... A craving for luxury brands among consumers in emerging market countries will drive global demand for high-end goods, Pictet Asset Management claims. The company, which launched its AGBP28.7m PF Premium Brands Fund last year, suggests that...

Eurozone crises alarm.
June 5, 2006... Looming economic crises on the periphery of the eurozone signal possible future downturns in mainstream European stock markets, according to a New Star and Baring report. In May, the Sedlabanki, the central bank of Iceland, raised its...

No more cheap credit.
June 5, 2006... The turmoil being seen in the markets is not a big correction by historical standards, but does herald a global sea change, says Crispin Odey. Mr Odey, chief executive of Odey Asset Management, said: "The new question is how do you protect...

Voting transparency not favoured by all.
June 5, 2006... A move to drop proposals to force fund management companies to disclose how they vote has received mixed reactions. The Investment Management Association welcomed a vote in the House of Lords this week to delete clause 876 from the Company...

Corporate kick for Europe fund.
June 5, 2006... Corporate activity over the first quarter is driving returns for the AGBP42m HSBC European Absolute fund of hedge funds investment company. The fund holds a diversified portfolio of hedge funds from across Continental Europe. It aims to...

Triumph of youth over experience.
June 5, 2006... It is refreshing when young, talented people are recognised within a firm and given the opportunity to prove their skills. In the fund management industry we have recently seen this with James Ridgewell and Jamie Allsopp, who are so far...

Performance goals 'being set too high'.
June 5, 2006... Fund managers who have brought out new funds with aggressive performance targets have made themselves a hostage to fortune, according John Kelly, head of client investment for Abbey. Commenting on attempts to achieve market beating returns,...

Cautious funds being mis-sold.
June 5, 2006... Cautious managed funds are being mis-sold as alternatives to with-profits, Investec Asset Management has claimed. According to managing director David Aird, some funds in the sector are being marketed on the back of strong performance. ...

Distributors get their say in pension report.
June 5, 2006... A new pensions report is to explore distributors' views on current pension providers. The report is to be published annually by financial research company Defaqto in conjunction with AKG Actuaries & Consultants and the Lyncombe...

Norwich Union adds 18 to its personal pension range.
June 5, 2006... Norwich Union has added 18 more funds to its personal pension range, including four in-house funds of funds. These are the NU AGBP1.65m Balanced Manager of Manager, AGBP1.85m Cautious Manager of Managers, AGBP1.21m Growth Manager of...

Scot Eq rolls out its offshore bond.
June 5, 2006... Scottish Equitable International is hoping its offshore bond offering will be the investment of choice for high earners exceeding annual pension contribution limits. According to the company, the offshore investment market was worth some...

Future global growth error hits UK gilt markets hard.
June 5, 2006... UK gilt markets have had to correct a big miscalculation about future global growth trends, according to John Anderson of Rensberg. Mr Anderson, manager of the AGBP18.9m Rensberg Corporate Bond trust, said that gilt yields -" now pricing in...

German economic revival seen as game of two halves.
June 5, 2006... The German economy is showing signs of recovery but the World Cup 2006 host nation still has some way to go. That is the view of Ian Kernohan, economist for Royal London Asset Management, who said there were two stages to Germany's economic...

Close trust lagging behind tech indices.
June 5, 2006... Close Finsbury Eurotech Trust has seen its net asset value growth trail behind tech indices over the past six months. The AGBP16.52m trust's NAV rose by 4.2 per cent to 49p in the six months to 28 February 2006 and its share price was up...

Black-box trading is on the rise.
June 5, 2006... NeoNet, the agency broker, announced last week that AGBP125m was spent on buying algorithmic trading systems to deal in the US equity markets and predicted that this figure will rise to more than AGBP160m by 2008. Already, 50 per cent of...

Japan niche backers are safest.
June 5, 2006... The sell-off of the past month holds no fears for someone who started investing in Japan back in 1981, according to Stephen Mitchell, manager of the AGBP583.67m JPMorgan Fleming Japanese investment trust. Mr Mitchell said the experience of...

Scottish Investment Trust shareholders opt to hold.
June 5, 2006... Only a quarter of the shareholders in the AGBP815m Scottish Investment Trust have exercised their option to sell shares back to the company at a 9 per cent discount to net asset value. The February tender, it was reported last week, saw...

New manager takes helm of Fidelity China focus fund.
June 5, 2006... Martha Wang, new manager of the AGBP957m Fidelity China Focus fund plans to bring top down analysis to bear on what is essentially a stock picking vehicle. Ms Wang takes over from Patrick Lo, who had managed the fund since its launch in...

Skandia allows Christows to manage clients' investments.
June 5, 2006... Advisers recommending Skandia's portfolio bond range can now opt to have their client's investments managed by Christows. The private client stockbroker and portfolio manager has struck a deal with Royal Skandia that will allow it to hold...

Mellon utilises new policies.
June 5, 2006... A new Mellon emerging markets debt fund aims to take advantage of stricter fiscal discipline in emerging economies and the resulting rise in debt quality. The Mellon Emerging Markets Debt Local Currency fund was launched at the end of...

Artemis expands market research.
June 5, 2006... Artemis has doubled the scope of its in-house proprietary research system from 2000 to 4000 stocks. The Global SmartGarp programme is part of the stock picking process used in its AGBP778m Capital, AGBP1.53bn European Growth and AGBP130m...

Whiteoak expects a market rebound.
June 5, 2006... Recent market falls will foster volatility over the summer but market fundamentals are strong, according to small-cap fund manager Roger Whiteoak. The manager of the AGBP279.2m Framlington UK Smaller Companies Fund, said: "We feel very...

Property bulks out retail sales.
June 5, 2006... Advisers continued to favour specialist funds in April with property funds driving inflows to the sector. The specialist sector was the best selling sector for the fourth consecutive month, based on net retail fund sales statistics from the...

Over-the-counter derivative errors up.
June 5, 2006... Errors in processing over-the-counter derivatives among US banks have more than doubled in the past year, research shows. The International Swaps and Derivatives Association's 2006 Operations Benchmarking Survey, which interviewed 67 of the...

Star managers reveal new fund's best ideas.
June 5, 2006... More details have emerged concerning the Skandia Global Best Ideas fund, a global fund built around 10 star fund managers, which launches on 13 June. The fund, which Skandia claimed represents what managers "might do with their own money,"...

Credit Suisse calls for more clarity on rates and growth.
June 5, 2006... A speedy resurgence in emerging markets is unlikely while there remains uncertainty about interest rates and global growth. As markets reel from the effects of a sell-off last month, a report from Credit Suisse's global emerging markets...

Declare your offshore interest, urge advisers.
June 5, 2006... Clients with offshore bank accounts need to make sure they are not flouting tax rules as the Inland Revenue steps up its investigations. Advisers are urging people conducting overseas transactions, including those that have a holiday home...

Regulatory fees to stay level.
June 5, 2006... Most FSA and Financial Ombudsman Services fees for the year 2006/2007 will be at levels close to those agreed on in the February 2006 consultation. The regulatory fees are payable by all regulated financial services firms. The...

Norwich Union tries to improve its image.
June 5, 2006... Advisers have expressed scepticism at Norwich Union's plans to expand its unit trust and Oeic range. Last week James Dalby, the new head of fund proposition for NU, said it was his ambition to change the perception of the life office as a...

Climate change to impact insurance.
June 5, 2006... F&C Asset Management has issued a stark warning of the impact of climate change on the insurance sector. The warning, which coincides with the start of the 2006 hurricane season, covers seven key trends, including the increase in frequency...

Hedge-linked notes bolster Threadneedle.
June 5, 2006... Threadneedle Investments' new range of hedge-fund linked portfolio notes aim to give investors double-digit returns with low risk. The UK-based fund manager said the notes -" which are issued by Barclays and give investors access to up to...

Aifa publishes its accomplishments.
June 5, 2006... The Association of Independent Financial Advisers has reported on its achievements after the first year of Chris Cummings' tenure as director general. According to Aifa, the year has been spent lobbying on all fronts for lower regulatory...

IMA and others warn against 'complex' Ucits.
June 5, 2006... The UK will experience "market failure" unless European authorities simplify Ucits notification procedures, the investment management industry has warned. Unless the Committee of European Securities Regulators amends Ucits rules in line...

Swip to shift funds into IMA classes.
June 5, 2006... Scottish Widows Investment Partnership is to move four funds out of the IMA Unclassified sector into new sectors. The AGBP350.9m Corporate Bond Plus is moving into the IMA UK Corporate Bond sector; the AGBP217m High Yield Bond fund is...

What crash?
June 5, 2006... In these past weeks, all the harbingers of doom have been rolled out to air their pessimistic views. Economic experts are lining up, like a row of Private Frazers from Dad's Army, to proclaim: "We're doomed!" Take Julian Jessop, chief...

All signs point to a bumpy road ahead.
June 5, 2006... Investors are in for a rough ride. With markets dropping by 10 per cent since their peak on 9 May, this long overdue correction may not be over yet. What has surprised many investors, including myself, was not the level of the fall, but...

Looking for scapegoats is a fool's errand.
June 5, 2006... In recent weeks equities, commodities and emerging markets have all succumbed to a crippling bout of heightened volatility. But who or what is to blame ? One possible answer: "political convulsions in Iran... enormous new increases in oil...

Get on the Train and enjoy the Buffett.
June 5, 2006... I recently had the good fortune to catch up with Nick Train of the Lindsell Train investment group. Having known Mr Train for around 15 years, I have never come away from a meeting without being intellectually stimulated. A decade ago, he...

Study shows bankers not wacky.
June 5, 2006... It is supposed to be the quintessentially British way to express eccentricity and now a survey has been undertaken to find the profession most likely to sport odd socks. Results showed that investment bankers beat accountants and lawyers to...

Stickers express investors' anger.
June 5, 2006... Following the stock market crash, Saudis are venting their anger at the speculators who analysts claim brought about the decline through the medium of car stickers. The stickers, emblazoned with "Big Thieves!", include a stock market...

The secret life of Britain's drinkers.
June 5, 2006... The results of another survey, this time about alcohol in the workplace, were read with interest by those in the IA team that enjoy a tipple or two. According to Royal & SunAlliance, one in six employees in Britain has been under the influence...

Builders down tools for students.
June 5, 2006... The runaway train of development in Shanghai is finally going to ground to a halt -" for a few days at least -" as city officials impose a ban on round-the-clock construction to let students revise for exams in peace. Builders will be...

ABN Amro men show their mettle.
June 5, 2006... Stockbrokers Simon Hargreaves, Nick Evans and Jon Monnery proved to be real iron men during the 10th annual Ford Ranger Great Lakeland Challenge triathlon, completing the course in 10 hours and 18 minutes. The group, dubbed Team ABN Amro,...

A protected harbour.
June 5, 2006... Given the recent turmoil in equity and commodity markets, corporate bonds must seem like a safe option for investors. Global stock markets have plunged as concerns have grown that economic growth will slow as central banks raise interest...

Take credit while you can.
June 5, 2006... The end to the credit bull market is no longer a question of if rather, it is now a question of when. Investors are in agreement that the market cannot continue at current levels. The difficult task is identifying the catalyst that will turn...

Collings' move is set in stone.
June 5, 2006... Bryan Collings, former head of global emerging markets for Baring Asset Management, is set to lead Resolution Asset Management's latest boutique. Mr Collings left Baring in April this year after only 18 months at the company. It was...

Igniting the flight to quality.
June 5, 2006... The strength of the equities market left many questioning the sustainability of its inexorable rise -" that is, until recently. Following the falls in markets across the world, driven partly by fears of an increase in interest rates and...

Performing a nose dive.
June 5, 2006... Having made strong gains since the beginning of the year, equity markets around the world have taken a tumble. The falls have been sufficiently steep to push a number of major indices into negative territory for the year to date. The set back...

Learning to work with risk.
June 5, 2006... We live in an age where there is increasing importance being placed on risk management, coupled with the expectation that it should be an intrinsic part of the business decision-making process. Today, decision-making in every facet of life...

Laying the right bets on the table.
June 5, 2006... When the technology bubble burst, the collapse in portfolio values was a harsh reminder of the value of sensible asset allocation and maintaining a sensible level of investment risk. As an increasing number of investors use online tools to...

Darker clouds on horizon.
June 5, 2006... Last month global equity markets were under heavy pressure as investors appeared to have rediscovered the concept of risk. The FTSE100 was down over 400 points at the time of writing from the peak of around 6130 and had given up almost all of...

Need for speed accelerates growth prospects.
June 5, 2006... Since bottoming out in 2002, the global technology sector has performed strongly over the last three years. The past 12 months have been particularly strong, although in recent weeks we have seen the sector hit by the weakness of the dollar,...

The fall in the last couple of weeks has made equities look more attractive. The correction we have seen was needed.
June 5, 2006... Investment Adviser: How would you describe your investment philosophy and process? In what ways is it unique to the other funds in the market? Alan Borrows: The main distinguishing factor between our funds and the others is the breadth in the...

The three legged stool.
June 5, 2006... Much has been written about recent market jitters. The question now is where pan-European markets are headed, as global monetary conditions tighten. All eyes have been on Germany, for three reasons. First, Germany is Europe's largest...

Is the bubble ready to burst?
June 5, 2006... Just as it looked like equities had finally put the effects of the last stock market bubble behind them, the recent surge in commodity prices prompted familiar talk of irrational exuberance. Meanwhile, we have seen analysts once again...

Trading pollution.
June 5, 2006... The price of carbon dropped by almost 70 per cent to just below a9 at the end of April 2006 during what became a dramatic week for the world's newest market commodity. The collapse came just days after carbon reached an all-time high of a31 per...