Investment Adviser articles from March 2008

Investment Adviser archives from March 2008

IFAs question IMA's sector classifications.
March 3, 2008... Byline: Advisers call for rethink of four sectors whose assets totalled 0.6 per cent of AUM IFAs have called on the IMA for a radical rethink of its sector classifications, with the assets of four having dwindled over January to just 0.6...

FSA to publish interim report.
March 3, 2008... The FSA has confirmed an interim report on remuneration, professionalism and primary advice under the Retail Distribution Review is to be published in April. Although the interim paper will not contain any final decisions, it will feed...

Midas says Miton merger does not mean joining of funds is imminent.
March 3, 2008... Liverpool-based Midas Capital Partners has refuted claims it is imminently planning to merge funds brought together as part of its as yet uncompleted merger with iimia MitonOptimal. The merger of the two companies, which is due to be...

LVAM hires Brooks to boost MM team.
March 3, 2008... LV= Asset Management has expanded its multi-manager team with the appointment of Simon Brooks. Mr Brooks, who joins as principal fund manager, was poached from Skandia, where he was part of the multi-asset and fund selection team....

IFA Reaction: Launching funds.
March 3, 2008... Tony Byrne, Wealth and Tax Management "It is nothing we have ever considered doing. I can see some merits, but generally we would steer clear because there is a likelihood clients could perceive it as not being impartial. A local IFA near...

Aviva unveils plans to rebrand Morley.
March 3, 2008... Byline: Parent company of Morley Fund Management plans to consolidate in September Aviva, parent company of Morley Fund Management, has announced plans to consolidate its global fund management business under one brand. The UK fund...

Rowan Dartington reveals fund details.
March 3, 2008... Private-client stockbroking and wealth management firm Rowan Dartington has confirmed further details of its Isambard fund. The enterprise investment vehicle, which went live this week, targets pre-IPO companies, based primarily in...

Royal London Ethical trust hunts bargains.
March 3, 2008... Byline: Manager discounts recession fears, saying bond repricing will mean long-term profit The AGBP60m Royal London Ethical Bond trust is hoping to snap up new issue bargains as the bond market continues to discount fears of a recession....

NDFA launches two structured products.
March 3, 2008... Structured product specialist NDFA is launching an accelerated growth plan and a twin-option kick-out product, both of which have six-year terms. The Accelerated Growth Plan offers 10 per cent for every 1 per cent growth of the FTSE100,...

Ashmore and St James's Place buck market trend.
March 3, 2008... St James's Place and Ashmore have bucked the current trend among fund management companies by unveiling better-than-expected annual results in the face of adverse market conditions. St James's Place reported a 23 per cent leap in sales to...

M&G rolls out pair of equity products.
March 3, 2008... Byline: Special situations fund and strategic value funds launched to complete product suite M&G Investments has launched a pair of European equity funds, designed to tap into undervalued or mis-priced stocks. The firm's European...

Legg Mason to launch a multi-strategy bond fund.
March 3, 2008... Legg Mason is poised to launch a multi-strategy bond fund, investing in a range of global fixed income assets. The fund will be launched in the second quarter of 2008, and will be managed by Ian Edmonds and Mike Zelouf at fixed income...

Santander welcomes Putin's heir apparent.
March 3, 2008... Vladimir Putin's chosen successor, Dmitri Medvedev, is likely to have a positive impact on Russian markets, according to Santander Asset Management. Jorge Fernandez Amman, emerging European analyst at Santander, said investors were warm to...

Blue Sky launches its PIP II with 100% capital protection.
March 3, 2008... Blue Sky Asset Management has launched a second tranche of its Protected Income plan. PIP II offers a yearly income of 10 per cent for a six-year term, with 100 per cent contingent capital protection. Investors can also opt for 2.45 per...

Credit Suisse manager keeps performance up.
March 3, 2008... Byline: Chapman keeps UK Smaller Companies vehicle on track in difficult period for sector The manager of Credit Suisse's AGBP40.5m Smaller Companies fund has managed to keep relative performance afloat, despite taking on the mandate at...

Reverse convertibles are a useful tool for investors.
March 3, 2008... Yield-enhancing strategies such as reverse convertibles are a useful tool for investors looking for an income yield or a stable rate of return in choppy market conditions, HSBC Private Bank has claimed. Fredrik Nerbrand, head of global...

Skandia runs events to develop solutions.
March 3, 2008... Skandia is introducing a series of seminars designed to help advisers develop investment solutions for bull and bear markets. The seminars, which will take place at more than 60 venues during March, will look at strategies IFAs can use to...

Newton predicts US gloom in bonds and currencies.
March 3, 2008... Byline: Head of fixed income team warns investors against trying to take advantage of the weakening US market The bond and currency markets are going to become increasingly volatile in 2008, with the US among the chief casualties, according...

Norwich Union warns of vulnerable mining sector.
March 3, 2008... The mining sector is becoming increasingly vulnerable in the face of declining world GDP growth, a manager at Norwich Union has claimed. Mervyn Douglas, who manages the group's AGBP109m UK Equity Focus fund, said mining stocks had risen...

Schroders claims Asian markets have decoupled from the West.
March 3, 2008... Claims that Asia and other emerging markets have decoupled from the West have been revived by an economist at Schroder Investment Management. Keith Wade, the firm's chief economist, said Asian economies and emerging markets in general were...

IFAs look to global equities.
March 3, 2008... More than 60 per cent of IFAs plan to increase their investors' allocation to global equities over the next 12 months, with a third retaining their exposure, according to a poll taken at the series of Unique Boutique Conferences. Meanwhile, one...

Bank deputy warns on UK growth rates.
March 3, 2008... Byline: Lomax says growth must be dampened to balance risk of permanently high inflation The UK's economic growth needs to fall to below-normal rates for the next two years, the Bank of England's deputy governor has warned. Rachel...

Evolve to launch property funds.
March 3, 2008... Evolve Fund Services is launching two funds to take advantage of the distressed nature of the property sector. The funds, which will be launched in the next couple of months, both take the branding All Saints, but will invest in different...

Trusts best placed to exploit dividends.
March 3, 2008... Investors can best exploit rising company dividends by holding shares in investment trusts, according to Aberdeen Asset Managers. Charlie Luke, co-manager of Aberdeen's Murray Income Trust, said: "Historically, UK companies have been quite...

Cornelian streamlines British Opportunities.
March 3, 2008... Byline: CF British Opportunities to focus on companies with good long-term fundamentals Cornelian Asset Managers has repositioned its AGBP10m CF Cornelian British Opportunities fund into a concentrated portfolio investing in companies with...

New Star UK Alpha merges with UK Special Situations.
March 3, 2008... New Star Asset Management merged its AGBP37.5m UK Special Situations fund into its AGBP417m UK Alpha fund last week, following FSA approval and a vote by shareholders on Tuesday. The resolution to merge the funds was passed with 99.63 per...

SIT Savings adds Sipp to its arsenal.
March 3, 2008... SIT Savings, the wholly-owned marketing subsidiary of The Scottish Investment Trust, has introduced a Sipp to its range. Investors who opt for the SIT Sipp are able to obtain tax benefits for a range of investments, including holdings in...

Equity sectors bleed.
March 3, 2008... Byline: Figures show all but three IMA equity sectors experienced massive outflows in January Just three equity sectors in the IMA universe recorded net inflows in January, the association's figures have shown. While institutional...

Barnfather to nurture Lazards' equity brood.
March 3, 2008... Byline: Firm appoints former Newton manager to head its AGBP192.3m European Alpha fund Former Newton manager Aaron Barnfather has been appointed by Lazard Asset Management to head up the firm's European equity team and manage the...

Future looks bleak for high-yield paper.
March 3, 2008... High-yield bond investors face several years of rising default rates, according to Jupiter Unit Trust Managers. John Hamilton, manager of the AGBP104m Jupiter Corporate Bond fund, said the future would be bleak for high-yield paper. He...

US fund manager predicts growth despite Fed warning.
March 3, 2008... The US economy is set to grow despite a warning by the former US Federal Reserve chairman that it will hit zero growth this year, a US fund manager has claimed. David Forsyth, co-manager of Martin Currie's AGBP214m North American fund,...

Newton Income fund finds value overseas.
March 3, 2008... Byline: Manager Metcalfe favours overseas exposure amid turbulent market conditions Agricultural commodities and telecommunications could provide much-needed opportunities in adverse market conditions, according to the manager of Newton's...

UK companies set to rally, claims PSigma manager.
March 3, 2008... Shares in UK companies are well placed for a rebound, despite the latest set of figures showing economic growth slowed at the end of last year, a PSigma Asset Management manager has claimed. The UK economy grew by just 0.6 per cent in the...

Managers criticise Tory green Isa plan.
March 3, 2008... Byline: Investors voice concerns over shadow chancellor's ethical investment proposals Fund managers have criticised the Conservatives' plans to launch green Isas, claiming they could be "fraught with complications" and aimed at "lowest...

Gam launches new fund of hedge funds.
March 3, 2008... Gam has launched a sister version of its AGBP4.5bn flagship Diversity fund of hedge funds. Managed by chief investment director David Smith, who also runs the Diversity fund, the Gam Multi-Diversified LV will be supported by a...

Aberdeen keen to add income share to Oeic.
March 3, 2008... Byline: Move in response to requests from investors interested in rising property dividends Aberdeen Asset Management is considering adding an income share class to its AGBP350m Property Share Oeic in response to requests from investors...

FSA chief renews body's regulatory commitment.
March 3, 2008... The FSA has reiterated its commitment to introducing more principles-based regulation, despite acknowledging its culpability in the crisis that engulfed Northern Rock. Hector Sants, chief executive of the regulator, admitted an internal...

Killik trains eyes on non-dom investors.
March 3, 2008... Killik is to target non-dom investors through its offshore bond. Originally aimed at British expats who wanted to avoid IHT, the Killik Offshore Bond, provided by Friends Provident International, invests in a range of unit and investment...

Wearmouth gives up Swip Euro fund reins.
March 3, 2008... Byline: European Income fund to be managed by Steven Maxwell, investment director at Swip Scottish Widows Investment Partnership has replaced Catie Wearmouth as lead manager on its recently launched European Income fund. Ms Wearmouth,...

ETF Securities adds 29 ETCs to its range.
March 3, 2008... ETF Securities has added 29 exchange-traded commodities that short sell their respective index to its range. The ETCs, which are listed on the LSE, allow investors to benefit from falling commodities prices. They are all priced from...

Midas takes AGBP5m golden stake in Terra Catalyst.
March 3, 2008... Midas Capital's AGBP703m Balanced Income fund has taken a AGBP5m stake in the recently launched distressed property investment trust Terra Catalyst. David Thomas, head of business development at the Nottingham-based boutique, said Midas...

Markets strengthen defence against woes.
March 3, 2008... Byline: Industry experts optimistic about longer-term outlook for stocks as markets rally Positive influences on the world economy are helping it weather the market turbulence, and could suggest a more robust defence against a downturn,...

European fund managers blase on gloomy forecast.
March 3, 2008... European fund managers are sanguine about the ability of eastern European countries to avoid a financial crisis in the near future, despite industry figures' warnings. Some economists have suggested after several years of high single-digit...

China inflation to beat 11-year high.
March 3, 2008... Inflation in China is likely to surpass the 11-year high it saw in January, Henderson Global Investors has forecast. The country, which saw annual inflation hit 7.1 per cent in the first month of the year, is expected to see inflation rise...

Schroders poaches Beckett.
March 3, 2008... Schroder Investment Management has poached Peter Beckett from UBS Global Asset Management in the newly created position of head of European marketing. Mr Beckett, who had been UBS's head of UK marketing, joined the firm in December 2005. ...

Nedgroup foresees onshore Faif boost.
March 3, 2008... Byline: Treasury and FSA announcement on alternative funds has been welcomed by IMA The majority of UK retail investors could have approximately 10 per cent of their portfolios in alternatives by the end of 2009, following advances in...

Gam reopens FoFHs after seven-year cap.
March 3, 2008... Gam has reopened its fund of hedge funds AGBP2.3bn Trading II after a seven-year closed period. The fund, which reopened to subscriptions on 18 February, was originally capped in June 2001 due to excessive inflows over a short period of...

Carne rolls out new Ucits III registration service.
March 3, 2008... Investment industry adviser Carne Global Financial Services has launched a new Ucits III registration service aimed at speeding up the fund establishment process. Carne has launched a range of modular services that firms can choose from,...

Iimia FoF falls short of absolute return.
March 3, 2008... Byline: Net asset value of investment trust falls by 10 per cent in three months to 31 January The net asset value of the Iimia Investment Trust fell by more than 10 per cent in the three months to 31 January, tracked by a share price that...

Terra set for Aim after raising AGBP116m.
March 3, 2008... Newly formed distressed property investment trust Terra Catalyst has raised AGBP116m and is set to be admitted to Aim. The company was established to invest in underperforming listed property companies and funds in Europe, and was one of...

Private equity trusts due for bounce, claim analysts.
March 3, 2008... Private equity investment trusts could be due for a rally, with commentators predicting better news than the market has anticipated. Several of the large UK private equity houses are poised to report their 2007 performance this month, which...

Investit research shows derivatives are hot topic.
March 3, 2008... Byline: Managers see aspects of derivatives, such as 130/30 and Ucits III funds, as priorities for the year ahead The use of derivatives has come top of the list of hot topics for investment managers in 2008, according to industry research...

Smith & Williamson set to offer AGBP10m top-up in VCT.
March 3, 2008... Smith & Williamson Investment Management has announced the launch of a AGBP10m top-up offer in the AGBP20m Elderstreet VCT. Due to the maturity of the portfolio, new investors into the portfolio will be much more likely to receive tax-free...

Politics and regulatory moves key to climate fund: Schroders.
March 3, 2008... The performance of Schroder Investment Management's AGBP6.7m Global Climate Change Equity fund will be determined more by political and regulatory moves than economics, its manager has said. Simon Webber, co-manager of the fund with Matthew...

Thames River in plans for fund team.
March 3, 2008... Thames River Capital is building a UK equity fund team designed to fill the perceived gap in its investment range, and expects to have it up and running before the end of the year. Michael Warren, investment director at the boutique, said...

JPMAM launches debt fund.
March 3, 2008... JPMorgan Asset Management has launched a local currency emerging markets debt fund, promising a new way to capitalise on emerging market growth. The Sicav is managed by JPMorgan's Global Emerging Market Debt team, led by Gunter Heiland and...

London-based managers escaped falls: Credit Suisse.
March 3, 2008... Byline: Hong Kong-based managers moved out of cyclicals during January's drops says multi-manager team Asian fund managers based in London escaped the sentiment-driven falls at the start of the year largely unscathed, according to the...

Defaqto issues online guide to multi-managing for IFAs.
March 3, 2008... Financial data collection and research company Defaqto has issued a guide designed to help financial advisers improve their understanding of multi-manager fund management. Blending Talents: A guide to multi-manager investing in the UK,...

Insight buys livestock futures.
March 3, 2008... Insight Investment's multi-manager team has taken new positions in livestock and platinum in its Diversified family of funds, in a bid to benefit from the growing demand for commodities. Patrick Armstrong and Ana Cukic Munro, co-heads of...

Survey finds IFAs looking to diversify.
March 3, 2008... More than 50 per cent of IFAs plan to increase the amount of assets they have placed with multi-managers, according to a new survey. The report, conducted by Resolution Asset Management and financial services compliance provider Simply Biz,...

Apcims hits back over London status claims.
March 3, 2008... Byline: Surveys point to City losing edge due to tax crackdowns and Northern Rock problems The Association of Private Client Investment Managers and Stockbrokers has hit back at claims London is losing its status as the world's financial...

JPMorgan investors opt for new vehicle.
March 3, 2008... JPMorgan Asset Management has seen 61.6 per cent of investors in one of its split-cap trusts choose to roll over into a new vehicle. The JPMorgan Income & Capital trust was launched on 3 March, after raising approximately AGBP108m in...

Close admits it is no longer up for sale.
March 3, 2008... Merchant bank Close Brothers Group has admitted it is no longer in talks to sell the group or any of its subsidiaries. The announcement was made on 29 February, sending shares in the company to a 52-week low. The firm's value dropped by as...

The electric drive of your life with very little hocus pocus.
March 3, 2008... Schroders' Climate Change manager Simon Webber cannot wait for his upcoming business trip to the US. The manager has been told there is a chance he will be able to test drive the Tesla Roadster, a 100 per cent electric sports car that can do...

Moonlight and magic.
March 3, 2008... Ever just wanted to disappear when things go really, really bad? Well, Peter Hopkins must be wishing his part-time job as a magician actually came with real powers. Supposed to be off sick from his day job with Legal & General, he claimed he...

Gone to the dogs.
March 3, 2008... Fund managers are fond of a flutter, as Diary discovered at Lazards' "Night at the Dogs" last week. The combination of competition and cash kept eyes glued to the Wimbledon greyhound circuit for all 13 races - unlucky for some - including both...

Santander looks to roll out global fund.
March 3, 2008... Santander Asset Management UK is considering launching a global fixed income fund as part of its move into the hybrid multi-manager marketplace, according to its chief investment officer. This product is the third to have been mooted by the...

Fred's bet pays off.
March 3, 2008... What is an attractive return? Ten per cent a year? Twenty per cent? These days, it's probably just not losing anything. Well, what about a 300,000,000 per cent return? That was achieved by a 60-year old man on his birthday last week. Fred...

Gadget Review: Watching the pounds with style.
March 3, 2008... Sports watch manufacturer Garmin's latest offering, the Forerunner 405, is designed primarily for those keeping fit, but also aims to fuse fashion and function. Runners can track their speed, distance, heart rate and location using the...

Colin McLean.
March 3, 2008... Colin McLean, managing director of SVM Asset Management, is a man much in demand. On the day of our meeting he is fresh off the plane from Edinburgh - he makes the trip down a few times a month - and has already attended a meeting and completed...

Relying on a weakening financial sector.
March 3, 2008... Is it just me or does the UK economy look a bit of a mess at the moment? It is not just the nationalisation of Northern Rock which, while the right decision in the end, was not handled in a manner designed to fill foreign investors with...

It's the emerging markets time to shine.
March 3, 2008... Byline: Current market corrections are a good chance to buy long-term growth at a discount Markets move instantaneously, reacting to news, intoxicated by sentiment: "animal spirits" in Keynes's words. Economies, however, move like...

Why all the fuss?
March 3, 2008... Byline: "To return to Dad's Army, the message is clear: don't panic" Last week, the Bank of England's deputy governor echoed the sentiments of a former chairman of the US Federal Reserve. Their messages, in essence: the economy is doomed....

Are new vehicles a shore thing?
March 3, 2008... Byline: Faifs are to be allowed onshore soon and UK investment seems set for a sea change The FSA has announced funds of alternative investment funds are to be permitted onshore in the near future, but how will these often-colourful new...

Hear the dragon roar.
March 3, 2008... With the Olympic Games set to be held in August in Beijing, the world's attention is focused on China. But the country is noteworthy for many other reasons. For one, it is the world's fastest-growing economy. While the World Bank recently...

China and the stagflation balancing act.
March 3, 2008... Stagflation, which occurs when an economy's growth slows at the same time prices are rising, has been the bane of central bankers since the 1970s. If they lower interest rates, they might spur growth, but they might also spur inflation. By the...

Taking a slow boat from China.
March 3, 2008... Byline: China's slowdown is evidence of a new maturity as the world's fourth-largest economy enters a new phase After China's record 11.4 per cent growth in 2007, some economists have predicted that it is downhill from here for the world's...

Atlantis offers China fund to invest in pre-IPOs.
March 3, 2008... Atlantis Investment Management is launching a fund to take advantage of China's growing business culture by investing in pre-IPO firms. The Atlantis Star China fund will be aimed at high net worth investors, and will invest in companies...

A veritable snowball effect.
March 3, 2008... Byline: The sub-prime losses in the US are having consequences for the UK high street, but we have been here before So much for the new year rally. Global equity markets have had their worst start since records began in 1970. The FTSE100 is...

Democratising the hedge fund.
March 3, 2008... Byline: Hedge funds have long been seen to be out of reach for most investors, but they are becoming more accessible Recent volatility in equity markets around the world has increased the need for investment ideas that will protect capital...

The fear of not knowing.
March 3, 2008... Investment trusts' status as listed companies exposes them to the same risks facing any public company, including unsolicited takeover bids. A high-profile case last year was Carrousel Capital's showdown with Roger Guy's Gartmore European...

Finding the one that's right for you.
March 3, 2008... Byline: The Sipp market continues to grow in popularity as it evolves to respond to the needs of its customers There is no doubt the Sipp market is becoming more popular. Indeed, a recent survey revealed 28 per cent of IFAs who did not do...

Investors must do their homework.
March 3, 2008... Byline: Investors pin hopes on growth but have taken on greater volatility The IMA UK Smaller Companies sector has been in the doldrums over the past year, falling prey to the flight-to-quality investors who have followed in the wake of...

Creating opportunity out of volatility.
March 3, 2008... Byline: Marlborough Special Situations fund manager Giles Hargreave talks to Rob Griffin about stock-specific situations Giles Hargreave, the manager of the AGBP173.1m Marlborough Special Situations fund, has a very clear investment...