Investment Adviser articles from May 2005

Investment Adviser archives from May 2005

Templeton puts Oeics on platform.
May 3, 2005... FRANKLIN Templeton Investment's entire Oeic funds range is now available on its Adviser Service wrap platform provided by Abbey. Ian Wilkins, UK sales director for Franklin Templeton, said: "The rapid growth of these platforms and their...

Past data needs variety of formats.
May 3, 2005... Past performance charts used in fund management advertising should be presented in more than one format. This according to research carried out by Nottingham University Business School. The study of members of the general public found...

JPMorgan finds new sales boss.
May 3, 2005... JPMorgan Asset Management has moved swiftly to replace its managing director of sales after Mark Campbell announced his resignation last week. Mr Campbell, who has been with the company since 2001, will become managing director of...

London & Capital rolls out US high-alpha note.
May 3, 2005... Boutique asset manager London & Capital has launched a high-alpha US equity quant product into the UK market. US financial research firm and quant manager Market Grader has licensed L&C to distribute its eponymous investable index in...

Labour in red tape caution.
May 3, 2005... Fund managers and property experts say that Labour must reduce the red tape facing small businesses should it win the election. Following the launch of Labour's business manifesto, the overriding feeling among managers was that it must...

Careful stock picking pays for Nucleus.
May 3, 2005... The top-performing AGBP44.12m Nucleus American trust has been boosted by strong stock selection, according to its manager. Over three years, the fund is ranked second in the North America sector out of 64 other funds, according to Standard...

Commercial property run will continue, despite dips.
May 3, 2005... The commercial property story has not yet run its course despite a decline in total returns, claims Knight Frank Investment Management. The property investment company cited the fact that according to Property Database Index figures the...

New Star to expand fixed income range.
May 3, 2005... Touted for the end of the second quarter this year, subject to regulatory approval, the funds will be based in Dublin and distributed across the UK and Europe. The move marks something of a departure for New Star, which until now has been...

Market reacts to Needle exodus.
May 3, 2005... Threadneedle has been "embarrassed" by more than half of its high-yield bond team walking out, according to IFA Skerritt. Threadneedle is known for its top performing bond funds, but was stung last week by the departure of Steve Harrison,...

FundsDirect fails to find buyer for platform.
May 3, 2005... The FundsDirect platform has been wound-up after its owners Egg were unable to find a suitable buyer. It is understood a number of offers were made for the platform, which went on sale in February, but none apparently met the asking price....

Europe's emerging east attracts managers' gaze.
May 3, 2005... Emerging Europe can offer substantial returns compared to their established counterparts, according to Fidelity and Merrill Lynch. Among the leading countries in the region are Poland, Hungary and the Czech Republic but, according to Tim...

Growth to resist oil and rate hikes.
May 3, 2005... Prospects for equity growth are still positive despite a slowdown in the economy as rising interest rates press on companies, according to fund managers. Leigh Harrison, manager of the AGBP1.1bn Credit Suisse Income fund, said that while...

IMA is critical of FSA's cost explanation call.
May 3, 2005... The IMA has claimed the FSA's Ucits Simplified Prospectus could leave many investors confused over fund costs. The association broadly backs the regulator's plans for the prospectus, which will be available to anyone seeking to invest in...

Trade bodies make European proposals.
May 3, 2005... The IMA and its European counterpart, the EFAMA, have called for the harmonisation of registration procedures for cross-border funds. A report produced by the organisations, led by the European Fund and Asset Management Association,...

Selection is bit of a song and dance, claims IMS.
May 3, 2005... Manager selection is like doing the hokey-kokey, according to Richard Timberlake, chairman of Investment Management Selection. The multi-manager was one of two key speakers at Investment Adviser's Fantasy Portfolio Challenge lunch, attended...

Performance.
May 3, 2005... By Daniel Judge A fund of investment trusts is one of the top performers in TrustNet's Global sector for multi-manager funds. The AGBP6.7m Unicorn Mastertrust returned 17.21 per cent over a year (to 25 April, bid-to-bid, according to...

Look to the cash-rich in Asia, says Veritas' Sun.
May 3, 2005... The Chinese commodity play is coming to an end and means managers will now have to look elsewhere for returns, according to Ezra Sun. The manager of the AGBP10m Veritas Asian fund, who for-merly ran the S&P AA-rated AGBP199.5m Newton...

JPMF Resources man is bullish over China.
May 3, 2005... "China is a transformational event for the world economy that is not going to go away," JPMF's Ian Henderson told the leaders of Investment Adviser's FPC. "New paradigm" is a phrase that investment professionals have shied away from since...

Contest shows just exactly what IFAs can actually do.
May 3, 2005... All the leading contestants in the FPC have shown gumption in finding returns. Many of the portfolio managers set their stall out early in the competition, picked their funds and held their nerve, despite being tempted to diverge from...

Buy & Sell.
May 3, 2005... Jupiter Emerging European fund Robert Burdett (pictured), manager of Credit Suisse's AGBP9.6m multi-manager European portfolio, has bought a 5 per cent position in Jupiter's Emerging European Opportunities fund. He said the move was to...

SEI targets UK with hands-on strategy.
May 3, 2005... Multi-manager SEI has outlined a new aggressive strategy for tackling the UK market, offering investors access to new funds. SEI, which came to the UK five years ago, is set to follow "strategic partnerships" with a small number of...

STS bid may catalyse wave of trust mergers.
May 3, 2005... Investment professionals are hoping that Invesco's bid for the AGBP422.6m Securities Trust of Scotland spurs other trust mergers. While it is not yet known whether the hostile bid made by the AGBP445.1m Perpetual Income & Growth will...

AITC pushes to up salary for chairmen.
May 3, 2005... The trust industry has backed calls for chairmen's pay to be increased following the evolution of their role in the past few years. According to the Association of Investment Trust Companies, the board's role has now changed and there is an...

Oil story splits Omam and Schroder large cos.
May 3, 2005... Old Mutual and Schroder have taken opposing views on the oil market in their UK large-cap funds over the past year. While Brent crude has risen to around $55 a barrel, forecasts for the sector vary widely, with Old Mutual's UK manager...

Axa predicts Japanese rate reversal.
May 3, 2005... A lack of money market liquidity is a sign that the Bank of Japan could be about to reverse its zero interest rate policy, according to Axa Investment Managers. Nigel Richardson, chief executive officer of Axa IM's Asia Pacific operations,...

Quarter of FTSE face bids, claim managers.
May 3, 2005... One quarter of the companies listed on the FTSE100 could be subject to a takeover approach this year, according Martin Currie and Old Mutual. Richard Moore, manager of the AGBP74.7m Old Mutual UK Select Large Cap fund, said he had...

Progressive tilts at unloved.
May 3, 2005... Called Advance UK, the Guernsey-based closed-ended fund will have a concentrated portfolio of 20 stocks, investing across the market capitalisation spectrum. The Advance fund can invest a maximum of 10 per cent in one stock and 20 per cent...

F&C Pacific hands reins to Aberdeen and Nomura.
May 3, 2005... The AGBP213.3m F&C Pacific investment trust will hand over to new managers Nomura and Aberdeen on 27 May. An extraordinary general meeting will also be held on 18 May to vote for changing the name to the Witan Pacific investment trust. It...

Barclays to boost fixed income by expansion.
May 3, 2005... Barclays Global Investors is seeking to provide more strategies for fixed income clients by expanding its specialist team. Four appointments announced last week will help the team build up specialist long/ short fixed income products, as...

Forsyth in roll out of offshore fund trio.
May 3, 2005... Forsyth Partners has launched a new fund of funds range with aggressive, cautious and balanced strategies. The Managed Strategies range, which is Bermuda-domiciled, holds equities, fixed income, hedge funds, property and commodities and is...

No regrets over switch from cyclicals: RLAM.
May 3, 2005... Royal London Asset Management has attributed poor performance in its AGBP560m European Growth trust to making a shift towards defensives too early. Under Kevin Lilley's management the fund has had poor relative performance and ranks 93rd...

Swip hopes to rake in others' cash.
May 3, 2005... SWIP has made its Global Liquidity fund Ucits III-compliant to allow other fund managers to stash their excess cash. All other Ucits funds will now be able to use the AGBP9bn Scottish Widows Investment Partnership fund instead of short-term...

Baring forecasts tough conditions.
May 3, 2005... Stock and sector picking are the key issue in 2005 for UK equities as macroeconomic fortunes decline, according to Baring Asset Management. Charlie Deptford, investment manager on the AGBP10.5m Baring Equity Income trust, claimed that signs...

Small businesses to cash in on post A-Day property.
May 3, 2005... After A-Day, small businesses could reap the cash from owned property to promote expansion. Mike Morrison, director of pensions strategy at pensions provider Winterthur Life, said holding property in self-invested personal pensions could...

Canada Life woos IFAs with multi additions.
May 3, 2005... Five new multi-managers have been added to Canada Life's onshore investment bond in an effort to win over IFAs. The multi-managers include Fidelity Investment's Income and Growth portfolios, and three from New Star: the Active, Balanced and...

James Hay makes call to clarify status of Ssas.
May 3, 2005... A leading pensions consultancy has called on the government to clarify the status of Ssas schemes. If not, believes Ssas and Sipp administrator James Hay, advisers could be placed in a compromising situation. The Occupational Pension...

Standard Life wins Forbes supplier role.
May 3, 2005... Alexander Forbes Fin-ancial Services has chosen Standard Life to be a provider on its bespoke self-invested personal pension. The Sipp will provide access to a range of multi-manager funds run by Investment Solutions. Equity and alternative...

IMA's figures confirm dour Isa season fears.
May 3, 2005... ISA sales plummeted more than 50 per cent during the 2004-05 Isa season, according to latest figures. Commentators who had predicted a glum year for Isas were mostly vindicated by the Investment Management Association's figures for the tax...

Majedie signs deal with MGM on its Capital bond.
May 3, 2005... Boutique fund management company Majedie is one of several names added to MGM Assurance's new-look Capital Investment bond. MGM, which is aiming to increase its IFA base, has brought the bond onshore, following the original Celebration Bond...

Watchdog shows industry near-final listing rules.
May 3, 2005... The Financial Services Authority has published near-final listing rules for UK listed securities. Hector Sants, managing director of the FSA's wholesale business unit, said the new regime would protect shareholders and create confidence in...

F&C merges its North American Equity fund.
May 3, 2005... F&C Asset Management has merged its AGBP20.7m North American Equity fund with its institutional and retail funds. Following a reshuffle on the US Equity desk under head of US equities Rupert Della-Porta, all institutional money in the fund...

FTSE and LSE to launch Aim range.
May 3, 2005... FTSE Group and the London Stock Exchange are set to roll out a range of Aim indices in an attempt to increase liquidity and transparency on the market. The indices will launch on 16 May and include the FTSE Aim UK50, FTSE Aim100 and FTSE...

Investors remain jittery: Abbey.
May 3, 2005... A lemming-like tendency of investors to over-react to bad news accounts for the global market downturns. According to John Kelly, Abbey's head of client investment, investors were generally jittery, with fears over slowing economic growth....

Advisers are in the army... now.
May 3, 2005... Diary has always argued that today's youth need a tad more discipline. A few years in the army would not go amiss, which is why Diary is so delighted to see that an example is being set by the leaders of industry -- including financial services...

Looking for a 'Needle in a UK.
May 3, 2005... When Britain was Great and we had an Empire, slightly larger than a discarded oil drum in the South Pacific, scarlet-uniformed, stiff-upper lipped products of the public schooling system used to ruck up in small developing nations in Africa or...

For sale: unique investment offer.
May 3, 2005... Now there have been some rather dodgy investments in the past few years: split-caps, precipice bonds, but anyone fancy a haunted pier? Apparently Lowestoft's Claremont Pier has come up as an investment property. The agent describes this...

Schroder revamps US offering.
May 3, 2005... Schroder has added another fund to its retail range, rejigging its large-cap North American fund and giving it a small-to-mid-cap bias. The change follows FSA and unit-holder approval to alter the funds' invesment objective. Grant...

Doll sees tough times lying ahead.
May 3, 2005... Bob Doll, president and chief investment officer for Merrill Lynch Investment Managers, is the latest industry heavyweight to see economic trouble ahead. Commentating on market volatility, Mr Doll said inflationary pressures from rising...

Boing, boing and away goes FSA.
May 3, 2005... John Tiner, brave leader of the FSA, bouncing around Canary Wharf was not a strange team-building exercise, or a 1970s revival, but a very serious competition. The FSA likes doing its bit for charity and entered a team into the 2005 Space...

From playing second fiddle to running First State's VCT.
May 3, 2005... Investment Adviser: You used to be a violinist with the City of Birmingham Symphony Orchestra. How did you get on the path to becoming the fund manager at First State? Paul Jourdan: It began in the early 1990s when I was still playing in...

Silver linings in bad seasons.
May 3, 2005... This year's Isa season, although culminating with a last minute sprint for the finish, has proven to be even more disappointing than last year (see page 22). While the government's indifferent tinkering with its own savings vehicle will have...

Lack of liquidity behind weak markets: Forsyth.
May 3, 2005... Global market weakness is being blamed on a draining of liquidity rather than slower economic growth or extreme valuations. Asset manager Forsyth Partners said last week that an end to "easy money" policies by the US Federal Reserve had...

First State banks on Chinese soft-landing.
May 3, 2005... First State's launch of the Greater China fund at the end of 2003 could have been argued to be a highly opportunist launch given the strength of the Chinese stock markets during that year. I suspect many competitors saw it that way and hoped...

Swings and roundabouts.
May 3, 2005... Of all the arcane investment arts perhaps the best known but least understood are top-down and bottom-up investing. Essentially these are portfolio construction strategies where the hierarchy, or family tree of asset classes and sectors, is...

It will never be the same again.
May 3, 2005... The past 12 months saw strong gains in most Asia Pacific markets, with the MSCI AC Asia Pacific ex Japan index rising 11.3 per cent in sterling terms. The strongest performers were the smaller markets, with Indonesia, Pakistan and the...

The threat of the new.
May 3, 2005... Internet Boom II: this time, it's serious. For those businesses becalmed in what is often tritely called the Old Economy, the thought of yet another outrageous boom in internet stocks, or at least in the fortunes of Google, must be that much...

Nit-picking and stock-picking.
May 3, 2005... All fund managers work with facts about a company andAand/or the economy. Some try to have more knowledge about a company than others, while some have better judgement on a company's management. Finally, all fund managers can speculate, for...

Second best should never be good enough.
May 3, 2005... Given that the aim of nearly all investors is to assemble a diversified portfolio that can deliver superior performance with the lowest achievable risk, it is strange that so many settle for second best in their equity holdings. If you...

Focus on the wider picture.
May 3, 2005... Like many investors, I usually find that taking a bottom-up approach to building UK equity portfolios is the most reliable way of making money. Certainly, at the beginning of this year, there appeared to be few top-down themes that would...

All eyes turn to look to China.
May 3, 2005... Driven by the economic giant within its midst, the S&P Asia Pacific ex Japan sector has slowed as China's growth has moderated. The region is still providing attractive returns and investors are maintaining high level of investments The 8...

Time to start assuming the crash position?
May 3, 2005... The UK economy may be running into trouble, whoever wins this week's general election. After 13 years without a recession, the UK's chickens may be coming home to roost. The problem is that the UK has been running a mini-version of the US...

The best choice of style is consistency.
May 3, 2005... The poor global environment for equities has returned bottom-up investing to prominence. Once again, fund managers are finding credibility in scrutinising company fundamentals. Rigorous research is in. None of this should immediately...

If I ruled the country.
May 3, 2005... As the 2005 UK election campaign enters its final days, Investment Adviser went in search of IFAs who wanted the chance to cut their political teeth and tell us what would be the burning issues that would in their election manifesto. The...

Kleinwort rolls out hedge indices plan.
May 3, 2005... Kleinwort Benson Private Bank plans to launch a fully protected structured product with a diverse range of underlying investments. The sterling-denominated product will offer 110 per cent of the basket maturity at the end of its three-year...

Manager Comment - Ian Beattie.
May 3, 2005... Although I am the manager in name, I have a supportive team working with me on this fund: Lucy Bernays is my assistant, and Richard Scott helps me with the selection of Asia-Pacific investment trusts. As well as my two lieutenants, there are...

Beattie falls from grace over the short term.
May 3, 2005... The AGBP66.3m Pacific Growth trust used to be an Exeter fund management product that was purchased and re-labelled by New Star in November 2003. The fund is managed by Ian Beattie, but the former manager, Richard Scott, had been running the...

Sector still has opportunities.
May 3, 2005... When first reviewing this sector near the bottom of the bear market in December 2002, I thought that it was the sector most likely to provide investors with a prosperous New Year. The case was simply that while the developed world is still...

Adviser warns over FTSE tracker risks.
May 3, 2005... UK investors have been warned that the risk of tracker funds can be greater than special situations or benchmark unconstrained funds. A report by Tim Cockerill, head of research with Bath-based IFA Rowan, showed that 42 per cent of the FTSE...

Coming back, but no time for complacency.
May 3, 2005... The major industrial economies grew at their strongest rate in many years in 2004. In turn, the economies of developing Asia and the Pacific achieved their highest growth since the Asian financial crisis of 1997-98. The region's aggregate real...

Gartmore opens bond funds to derivative use.
May 3, 2005... Gartmore is developing plans to use derivatives within its UK bond portfolios to add extra protection to its funds. The asset manager, which has advocated the use of flexibilities under Ucits III to develop higher alpha and more efficient...

Countries have to adapt or die over China, says Young.
May 3, 2005... The China growth story has been a mixed blessing, depending on whether countries have adapted to its growing economic importance, according to Aberdeen. Hugh Young, managing director for Aberdeen's Asia base in Singapore, said some...

MLC calls for checks on IFAs.
May 9, 2005... Multi-manager MLC has called on the City watchdog to further regulate IFAs' powers to make investment decisions. John Cowan, head of IFA distribution for the Australian multi-manager company, said: "The question is: Should an IFA be making...

Foster goes across UK and Europe.
May 9, 2005... James Foster's new fund at Artemis, which is expected this week, will invest in both UK and European securities. Provisionally called Artemis Strategic Bond fund, it will be registered in the Investment Management Association's Other Bond...

Top US manager leaves Aberdeen for F&C's desk.
May 9, 2005... F&C has poached a top-level US manager from Aberdeen to bolster its American equity desk. Simon Clinch, manager of the AGBP221m North American and the AGBP10m Aberdeen Global American Opportunities funds announced his resignation last...

Boost for New Star as it considers float.
May 9, 2005... Speculation on the prospective launch of New Star onto the Alternative Investment Market was given a double injection last week. Data revealed not only a 51 per cent increase in turnover, but that the company has almost gleaned as much in...

IMS is to run F&C's portfolio.
May 9, 2005... Specialist multi-manager IMS will run the US portfolio of F&C Asset Management's flagship AGBP2.8bn Foreign & Colonial trust. The trust's board announced at its annual general meeting that IMS, which has already been appointed as F&C's...

Threadneedle intends to stop offering Isas directly.
May 9, 2005... Threadneedle will stop offering Isas directly within a few years. Guy Beech, UK sales director for the company, said most business now came through platforms and the trend was likely to increase to the point when it became unprofitable to...

Bedlam Euro looks toward restructuring.
May 9, 2005... The Bedlam Europe fund will seek returns of between 1.5 and three times the yield of UK long-bonds. The fund, which is open to investment between 23 May and 3 June, will invest in a portfolio of between 25 and 45 stocks across both EU and...

Norwich returns money from 'undisclosed' fees.
May 9, 2005... Norwich Union has admitted an error in total expense ratios across its investment range. The provider, which conducts more than 70 per cent of its long-term savings business through IFAs, has had to write to IFAs and investors to apologise...

Bedlam attacks European funds.
May 9, 2005... Bedlam Asset Management has launched an assault on rivals' European funds, accusing them of ramping up charges at a time of diminishing returns. In a report the company said: "Profits made through investing in European funds have...

Webb and Evershed in move from consumers.
May 9, 2005... Unconstrained UK stock-picking funds are pinning their hopes on growth companies such as support services and software, as the economy cools. With many companies having been hit by interest rates and higher oil prices, Unicorn Asset...

Csam confirms Orient stays put.
May 9, 2005... Credit Suisse Asset Management said there would be no change in the process of its AGBP12.6m Orient fund as a new manager takes charge. Manager Peter Sartori is set to leave the company and has already been replaced by Boon-Hong Yeo, who...

Revival for large-caps against Mid 250 stocks.
May 9, 2005... Norwich Union and Morgan Stanley are the latest fund groups to herald the return to form of large-caps against smaller companies. The investment companies have both released data showing large caps are set for a revival over the next few...

Woodford makes dial 'D' for investment call.
May 9, 2005... A "double-D" approach to investment will benefit invest-ors this year, according to fund managers. Defensive plays and the search for dividends will still be the right strategy for 2005, claimed Neil Woodford, manager of the AGBP1.76bn...