Investment Adviser articles from May 2006

Investment Adviser archives from May 2006

Oil is cheaper than milk and twice as tasty.
May 1, 2006... Oil is cheaper per pint than milk and twice as tasty for investors, Andy Brough, manager of the AGBP1.6bn Schroder UK Mid 250 fund, has claimed. "We only find one barrel of oil for every two that we use, and oil is still cheaper per pint...

M&G to merge two UK funds.
May 1, 2006... M&G Investments has confirmed plans to merge its AGBP203.7m Blue Chip fund into the AGBP285.3m UK Growth vehicle. Subject to approval from Blue Chip's 15,000 unit holders, the merger should take place on 23 June. The vehicle is focused...

Curtain to fall on big cap rally in summer.
May 1, 2006... The market should expect the end of the large cap rally this summer, a leading Japanese fund manager has claimed. Hideo Shiozumi, manager of the AGBP250.7m Legg Mason Japan Equity fund, said investors should beware falling into a false...

JOHCM funds on Cofunds.
May 1, 2006... JO Hambro Capital Management has made four of its funds available on the Cofunds platform, with the aim to broaden its distribution to IFAs and investors. The independent fund platform, which has assets under administration in excess of...

Soc Gen excited by Chinese financials.
May 1, 2006... Financials appear to be the most promising sector in China for the foreseeable future, Societe Generale's Winson Fong has claimed. Mr Fong, manager of the offshore AGBP82.1m China Equities fund, which has UK distributor status, said...

Financials are nothing to fear.
May 1, 2006... Investors should not abandon UK financials despite concerns that the UK consumer is over-indebted, a New Star manager has claimed. Nick Brind, manager of the AGBP85m New Star Financial Opportunities trust, said: "Investors who have avoided...

Newton bond fund looks to govt futures for protection.
May 1, 2006... The use of government futures to hedge against shaky bond markets will be one of the strategies employed on Newton's new bond fund. Global Dynamic, launched last week with AGBP10m of seed money, is using several of the powers of Ucits III...

Defaqto database available online for advisers to raid.
May 1, 2006... Research company Defaqto has made its database of investment, platform, pension and protection products available online. For a monthly subscription, IFAs will be able to access Aequos Engage over the internet, using the database to sift...

F&C and Hargreaves move to hold growth.
May 1, 2006... The multi-manager teams at F&C and Hargreaves Lansdown are shifting their portfolios away from income-yielding stocks to the growth end of the market spectrum. According to Richard Philbin, head of multi-manager for F&C, the compression...

Toisa transfer fund on offer from NDF.
May 1, 2006... Structured product specialist NDF is launching a cash Isa with a kick for investors wanting exposure to the stock-market, but with the security of cash. Designed as a Tessa only Isa transfer product, the NDF fund will offer a minimum...

Henderson's head of sales jumps ship.
May 1, 2006... Henderson's multi-manager operation has suffered a setback with the departure of head of sales Sean Gardner, despite improved fund performance. Mr Gardner will join Schroder just as two of the company's three fund of funds moved from...

14 new managers join Close Brothers.
May 1, 2006... Close Brothers has recruited 14 portfolio managers as part of its continuous expansion of its high net-worth private client business. Martin Andrew, head of private clients for Close Brothers, claimed the new staff would enhance both the...

Long in tooth or lean and mean spat on Euro growth.
May 1, 2006... Leading European fund manager Chris Rice believes the market is set for a correction, although his comments have been met with scepticism by Framlington. Chris Rice, who runs the AGBP225m Cazenove European fund, said a correction of the...

Fidelity gains new head of its multi-manager business.
May 1, 2006... Fidelity is looking to expand its multi-manager reach with the appointment of Simon Ellis. The former chief executive of multi-manager business for Axa has been appointed to the new role of head of multi-manager business. Simon Fraser,...

Fund supermarkets gain ground.
May 1, 2006... Fund supermarkets are closing the gap on direct sales forces and tied agents as the major distributors of Isas, according to the Investment Management Association's latest report. Figures from the IMA revealed that of Isa sales in the...

Asian growth benefits Veritas.
May 1, 2006... Confectionery manufacturers are a sweet pick for James Denham, manager of Veritas's AGBP31.23m Global Focus fund. With the view that Asian consumers are spending more as household wealth increases across the region, Mr Denham has been...

Scottish Life announces 15 additions to Fund Matrix.
May 1, 2006... Scottish Life is extending its investment proposition with 15 new fund links. The 15 Managed Strategies funds, selected according to process, investment style and strong performance, will form part of the Managed Strategies Fund Matrix....

Equities boom in Europe.
May 1, 2006... Equities are in a Goldilocks world of relatively strong growth but low inflation, Robert Talbut, chief investment officer at Royal London Asset Management, has claimed. Global growth was picking up, and investors continued to be confident...

Midas Balanced managers look abroad for strategies.
May 1, 2006... German property trusts, European income and niche opportunities are winning rapport with the managers of Midas's two Balanced funds. Alan Burrows and Simon Edwards, who run the AGBP145.4m Balanced Growth and AGBP131.6m Balanced Income...

Wall St doldrums no cause for alarm.
May 1, 2006... Wall Street's under-performance since 2002 is no cause for alarm for the equity market, two leading investment experts have claimed. Analysts and managers from Brewin Dolphin Securities and F&C Asset Management said they still favoured US...

Record acquisitions month bolsters Tilney's Glanmore.
May 1, 2006... The Glanmore Property fund, managed by Tilney, has beaten the AGBP750m barrier following a record month for acquisitions. Cardales Chartered Surveyors, part of the Tilney Group and advisers to the fund, made four acquisitions in March...

The AITC plans to reinvent itself.
May 1, 2006... The Association of Investment Trust Companies is changing its name and broadening its focus to cover a wider range of investment vehicles. This is to reflect a world where investment trusts are no longer the overwhelming majority of its...

Foreign investors benefit from domestic demand and low interest rates in Korea.
May 1, 2006... Domestic demand for South Korean stocks will boost foreign investor returns, according to Baring Asset Management. Henry Chan, manager of Baring's AGBP289.5m Korea fund, said domestic demand was one of four key drivers of Korean equities....

Aberdeen investment trust offers low-cost alternative.
May 1, 2006... Aberdeen has unveiled a new plan for its Edinburgh Investment Trust range that will offer investors low-cost access to stock markets in the UK and US. According to the company, the Edinburgh-based investment trust's tracker Isa and share...

Cayenne takes more flexible absolute returns path.
May 1, 2006... The AGBP14.4m Cayenne trust, formerly Invesco City & Commercial investment trust, has introduced a more flexible approach to generate absolute returns irrespective of equity market trends. It comes as many investment trusts continue to...

JPM calls for default pension fund revamp.
May 1, 2006... Global asset manager JP Morgan is to lobby the government on the asset allocation and annuity priorities for a national pensions savings scheme. According to Adam Fairhead, head of public affairs for JPM, developing a broad multi-manager...

Higher charges to stay after Special Sits split.
May 1, 2006... The higher initial charges imposed on the AGBP6.5bn Fidelity Special Situations fund to stem inflows of non-Isa money last September are likely to remain after the split. Last week, Fidelity International published a timetable for the...

Selestia account goes live.
May 1, 2006... Selestia's Collective Retirement Account went onstream last week after gaining approval from HM Revenue & Customs. The SCRA allows advisers to transfer their clients' existing private or company pension schemes onto the funds supermarket,...

Norwich Union uses Schroder's expertise.
May 1, 2006... A prime example of how the world of financial services is changing must be the launch of the Norwich Union Special Situations fund. At first glance there seems nothing remarkable about the launch of a UK special situations fund. However, this...

Fidelity reduces weight in energy.
May 1, 2006... Now may be time to take some profits in US energy stocks, according to Fidelity's Jason Weiner. Mr Weiner, who manages the AGBP1.6bn Fidelity American fund, has shifted a significant amount of money out of energy stocks and into other...

Global economic indicators hide increasing credit debt.
May 1, 2006... Rising bond yields and equity markets herald improvements in the state of global economic indicators, but this masks increasing risks for credit debt, Abbey's James Bevan has warned. Mr Bevan, Abbey's chief investment officer, said...

Slowing economy spells rate reversal.
May 1, 2006... The US economy is slowing, leading to an eventual reversal of the rate hikes the market has seen recently, Henderson Global Investors' chief strategist Tony Dolphin has claimed. He said: "In recent years, US households have supplemented...

Simplification woes deter Sipp entrants.
May 1, 2006... The Sipp market is likely to remain static for the near future, according to John Moret of Suffolk Life. Mr Moret, the Sipp provider's director of sales and marketing, said there was frustration within the industry over simplification. This...

Friends Provident rolls out its Dynamic tool.
May 1, 2006... Friends Provident is broadening its IFA services with a new-look web-based investment portfolio planning tool. The improvement will mean that Dynamic Portfolio Planner can now help IFAs plan their clients' portfolio more effectively. It...

Shareholders need a commitment too.
May 1, 2006... Long-term investors will find investment trusts more attractive if boards could prove their commitment to shareholders, leading investment trust analyst Nick Sketch has said. Mr Sketch, divisional director for investment managers Rensburg...

T Bailey waives fixed fees.
May 1, 2006... Nottingham-based T Bailey has promised to pay all fixed costs involved in launching its new cautious managed portfolio. The multi-manager specialist's Cautious Managed fund will be co-managed by Richard Martin and Jason Britton. It will...

SVM boosted by new Global Opportunities.
May 1, 2006... Edinburgh-based fund manager SVM is launching a new global opportunities fund. The IMA Global Growth sector fund will invest in a range of specialist investment, hedge, property and private equity funds, many with restricted geographical...

If you are going to be in this business, you have to be a major player. We are aiming to be a top 10 player within the next three years.
May 1, 2006... Investment Adviser: Britannic is currently in the middle of an image overhaul -" from 1 May it will be called Resolution Asset Management. What has prompted this change? Jonathan Polin: Britannic merged with Resolution and changed name to...

Now is the time to be socially responsible.
May 1, 2006... Many of us who are contributing to a personal pension will not be drawing on that pension for another 10 or 20 years. So what sort of world will we be retiring into? What are the challenges we will be facing a decade or so from now? ...

Altitude sickness in the brave new world.
May 1, 2006... Investors can be forgiven for suffering from altitude sickness. With oil above $70 a barrel, gold above $600 an ounce and most equity markets making recent if not historic highs, a largely indiscriminate rally amongst financial assets seems...

New property funds on offer.
May 1, 2006... Henderson and Franklin Templeton are the latest in a string of managers preparing new property offerings for the UK retail market. Franklin Templeton's onshore property Oeic launched last week, investing in a global portfolio of Reit funds....

Manager opts for missed opps.
May 1, 2006... The trick to bond investing when yields are generally low lies in identifying niche opportunities overlooked by the UK market, a Baillie Gifford bond manager has claimed. Stephen Rodger, manager of AGBP111.6m Baillie Gifford Corporate Bond...

Slow down, you're moving too fast.
May 1, 2006... Events are moving so fast on financial markets these days that it is hard to catch your breath. Having seen real yields on index-linked gilts fall to zero (on a forward-forward basis) and long-dated gilt yields drop below 4 per cent in...

Allianz blazes a trail with its tech fund.
May 1, 2006... Allianz's new technology investment trust is one of only two technology funds to have been launched in the past five years. The new launch, and the AGBP411.13m Polar Capital Technology fund's moves in February to raise additional capital,...

Gone fishing.
May 1, 2006... Hargreaves Lansdown's Mark Dampier is known for his enthusiasm for wading into the money markets and trying to hook the best opportunities for his clients, but he really pushed the boat out this week. Although out of the office for the day, he...

Making a crisis into a drama.
May 1, 2006... For those of us who enjoyed the London Marathon from the comfort of our sofas, it came as a rude shock when we were called to action with an invitation to participate in the Crisis Square Mile run. The Crisis in this instance is not stepping...

Caution advised.
May 1, 2006... Fund sales are the best for six years, according to Investment Management Association figures. Household assets are moving from spending into saving. We have a chicken and egg situation: are high street sales falling because people are...

The golden oldies come up trumps.
May 1, 2006... Never let it be said that here at IA Towers we don't go the extra mile to bring you the hottest industry stories. This week, news arrives from Clerical Medical that -" wait for it -" housewives' favourite Des O'Connor has topped its poll of the...

Structured instability.
May 1, 2006... Banks and Insurance Companies continue to bring out a large range of "structured" financial products. On the face of it these products can look attractive, as they often have a guaranteed return of capital headline. Some are sweetened with...

Making money out of hot air.
May 1, 2006... The global push to cut carbon dioxide emissions around the globe is creating a new opportunity for investors based around the trading of carbon emission rights. The trading by companies of carbon credits rights is a nascent market which...

Opening the flood gates.
May 1, 2006... Traditionally, debt and equity investments in commercial real estate have been seen as highly specialised investments suitable only for the largest and most sophisticated investors. Factors such as complexity, large asset size and the high cost...

Baring trio takes the route to Resolution.
May 1, 2006... Resolution Asset Management is hiring three of Baring's emerging markets managers to set up its third joint-venture boutique. Bryan Collings, the man brought in by Baring Asset Management in December 2004 to revive its AGBP240m Dublin-based...

Football fever grips the AITC.
May 1, 2006... On the day that Cahoot came up with the estimate that doing our patriotic duty by following England during the World Cup would cost a total of AGBP24m, AITC director general Daniel Godfrey demonstrated his own fanaticism during the Annual...

Getting back to Africa.
May 1, 2006... The image of Africa takes a battering from two very different directions. From the Robert Mugabe corner, we get the impression that Africa is run by malevolent, corrupt and incompetent tyrants. From the Bob Geldof corner, we get the impression...

Pay the price for performance.
May 1, 2006... Of all the 28 sectors listed by the IMA, the UK Smaller Companies sector delivered the third highest returns over three years. Figures from Standard & Poor's showed that over 3 years to 24 April 2006 the sector returned 142.82 per cent, beating...

Sector comment.
May 1, 2006... This sector is a bit of a conundrum. This week we are looking at the bottom 25 funds in the sector by fund returns. We found last week that managers in the sector were stretching the definition of what exactly is a small company a bit far...

Summer, summer, summer time.
May 1, 2006... With winter behind us, F&C has decided to put to the test the old adage to "sell in May and go away, come again on St Leger's Day". Traditionally, it has been thought that the lure of the summer's sporting events -" including Henley, Royal...

Not all funds are the same: smaller is a word with an elastic definition.
May 1, 2006... It is always difficult when we approach the bottom 25 of any sector, as most fund managers do not want to talk about their failing funds. The buck stops with them, and it is like a child playing truant from school, getting caught in the chip...

Look a bit closer for good opportunities.
May 1, 2006... I would venture a guess that most investors would be pleased with the 15 per cent return that the Russell 2000 index of smaller companies has achieved since the start of the year. Looking forward to the rest of the year however, we expect...

When all that is left are the stars.
May 1, 2006... Last week I warned again about a speculative bubble brewing in this sector. If there is a serious risk that the flow of funds to successful smaller companies will reverse, then investors are hardly likely to reinvest their money into less...

Using a strategically important investment style.
May 1, 2006... While many investors still put caution ahead of achieving strong returns, Roger Whiteoak, manager of the AGBP240.1m Axa Framlington Smaller Companies fund, has taken a more contrarian view with his investment process. Through his stock...

Russian politics hamper access.
May 1, 2006... Fund managers fear political risk and a lack of market access can place otherwise tempting Russian opportunities off-limits. F&C Asset Management warned last week that the planned initial public offering of Russian oil giant Rosneft would...

F&C Fantasy Football 2006 -" the European contenders.
May 1, 2006... The World Cup in Germany is now little more than a month away and Investment Adviser has teamed up with F&C to offer you the chance to get involved in the action with a fantasy football competition. Register at www.fandcfantasyfootball.com...

Financial ads fall short of FSA standard.
May 1, 2006... Financial services advertising in the UK has failed to meet the FSA requirements. Some 75 per cent of all advertising has not met the FSA's requirements, with 84 per cent of retail investment advertising being misleading or flawed,...

Information ratios in UK Smaller Cos hit new high.
May 1, 2006... Information ratios in the UK Smaller Companies sector are of an exceptional size we are unlikely to see again. The high information ratios produced by the top managers in this sector have been matched by incredibly high stock selection...

Aberdeen finalises UK range.
May 1, 2006... Aberdeen has converted its remaining equity-invested unit trusts into single-priced Oeic sub-funds. This is the last stage in its UK fund range consolidation following the acquisition of DWS last year. As part of a continued consolidation,...

AIG launches Xtra bond to Capital stable.
May 8, 2006... AIG Life has launched a variant of its Capital Portfolio investment bond. The Xtra Allocation Capital Portfolio bond is designed for cautious investors who want equity exposure with a degree of capital protection. Investors can choose a...

Abbey secures VAT exemption for Oeics.
May 8, 2006... A European Court of Justice ruling has exempted Oeics from paying VAT after a challenge to UK law by Abbey. Prior to the judgment, open-ended investment companies were subject to VAT while unit trusts were not. The UK argued that only...

Low valuations fail to elicit faith in Europe's large caps.
May 8, 2006... European fund managers are shying from large-caps in Europe, despite their relatively cheap valuations, amid signs they are about to reach a 12-month high. Standard Life and Scottish Widows Investment Partnership managers said that in...

Inheritance age drop snub.
May 8, 2006... A government plan to introduce a change to the law that would reduce people's tax savings has been labelled unfair by its own supporters. A survey of 1004 Labour voters by independent data company ICM Research found almost 82 per cent...

Prestige looks to broaden UK network.
May 8, 2006... International property investment group Prestige has announced plans to expand its UK distribution network. Paul Coghlan, chairman of Dublin-based Prestige, said the company hoped to profit from the increasing sophistication of UK...

Tilney has foot on gas despite a recent stall.
May 8, 2006... The AGBP32.6m Tilney American Growth fund manager is remaining bullish on energy stocks despite the fact they have hammered the fund's first quarter performance. Jane Drake, manager of the fund, said she was not planning to reduce her...

IMF and G7 tackle US deficit effect.
May 8, 2006... More saving, less spending and a fall in the US dollar is needed to prevent a slowing of global economic growth, according to Henderson Global Investors. The International Monetary Fund and the Group of Seven countries have already started...

Doel input helps F&C to revitalise UK team.
May 8, 2006... A sea change at F&C is helping to bring the UK equity teams up to scratch, according to newcomer Phil Doel. Mr Doel, who manages the new AGBP91.1m F&C UK Opportunities fund, said changes in the process and team dynamic brought in by the...

Omam small caps in mid caps migration.
May 8, 2006... FTSE mid-cap stocks are still the bread and butter for the Old Mutual UK Select Smaller companies fund. The AGBP340.3m fund, managed by Dan Nickols, is straying far beyond the remit of the smallest companies in the UK, and venturing into...

Henderson to spruce up its MM range.
May 8, 2006... Henderson Global Investors plans to expand its multi-manager range with the launch of new portfolios. Having already restructured its existing three-strong range. Henderson said it is now moving to cater for a broader range of risk, return...

Results for Europe with Sipps.
May 8, 2006... UK and European equities, property funds, income and corporate bond funds have proved popular Sipp investments in the first quarter on the Fidelity FundsNetwork platform. Esoteric funds, such as the AGBP22.7m Neptune Russia and Greater...

Take two for closed HSBC hedge funds.
May 8, 2006... HSBC Republic Investments has reopened its two global funds of hedge funds, the AGBP13.48m HSBC Alpha AdvantEdge and AGBP24.4m Leveraged Alpha AdvantEdge funds. Both funds use a selection of internal long/short equity focused funds from...

Cazenove dons shorts to weather bond sell-off.
May 8, 2006... The AGBP37m Cazenove Strategic Bond fund has weathered the bond sell-off of the past three weeks thanks to its short-duration bias, according to manager Peter Harvey. The fund takes an absolute return approach to corporate bond investing....

Abbey fails IFA test.
May 8, 2006... Abbey's improved quarterly results revealed a drop-off in IFA business, an area the company has promised to concentrate on. The Spanish-owned bank saw year-on-year investment sales rise from AGBP26m to AGBP32m in the three months to March...

UN applauds SRI leaders Insight.
May 8, 2006... Insight has been praised by the United Nations for leading global initiatives on responsible investment. Steve Waygood, Insight Investment's director of investor responsibility, worked as an adviser to the UN on its principles for...

Baring hedges bets on risk portfolios.
May 8, 2006... Baring's multi-manager team has increased its hedge fund exposure across the entire range of targeted risk multi-manager funds. Baring's extended risk, optimum risk and reduced risk portfolios now have a hedge fund weighting of 25 per cent,...

MultiFunds takes further two Midas Balanced funds.
May 8, 2006... Skandia's MultiFunds platform has taken on two funds from multi-manager boutique Midas Capital. The inclusion of the AGBP145.4m CF Midas Balanced Growth and AGBP131.6m Midas Balanced Income funds, both managed by Simon Edwards and Alan...

Long legs look attractive for gold.
May 8, 2006... Those fund managers either running commodity funds or who have backed the commodity story within their own specific funds have certainly made hay. I find it fascinating when talking to other fund managers who have been bearish on commodities...