Investment Adviser articles from October 2008

Investment Adviser archives from October 2008

Confidence drops in money market funds.
October 6, 2008... Byline: James Kenny, Nick Rice and Rob Langston Six out of 29 products in IMA Money Market sector lose money over last three months The aura of stability and protection surrounding money market funds has started to wane with six out of...

Scudding MacLeod.
October 6, 2008... Byline: Hugo Greenhalgh Skandia Investment Group chief executive Jamie MacLeod talks to Hugo Greenhalgh about recent performance, staff moves and inventing multi-manager Jamie MacLeod certainly knows how to swing an interview in his...

How history drives into the present.
October 6, 2008... Byline: Paul Brain is manager of bond funds at Newton Investment Management Similarities between the inflation story now and in the 1970s could have implications for the present credit markets It's funny how we seem to be obsessed with...

Bestinvest chief, Andrew Barnes resigns.
October 6, 2008... Byline: Daniel McAllister The chief executive of Bestinvest, Andrew Barnes, has resigned after less than two years in the job. Mr Barnes has handed over the reins to Bestinvest's chairman Ray Greenshields while a replacement is found...

Threadneedle in talks for Protego merger.
October 6, 2008... Byline: James Kenny Threadneedle said it was in talks to merge its Property Unit Trust with a GBP61m fund from real estate investor Protego. The merger, subject to approval from Protego investors, is being undertaken by Protego as it...

PFB looks to launch data fund.
October 6, 2008... Byline: James Kenny Pinder Fry & Benjamin is considering the launch of a new property data fund following the successful launch of its first closed-end data centre fund back in August 2007. The commercial property specialist said it...

SLI seeks fresh bounty.
October 6, 2008... Byline: Nick Rice Standard Life Investments has said it is looking to acquire new teams and businesses as the market dips and value opportunities continue to unfold. Mark Connolly, executive director of distribution and client...

Bolton admits he on a buying spree of cheap stocks.
October 6, 2008... Byline: Daniel McAllister Darling of the fund management industry Anthony Bolton signalled the bottom of the UK stock market by admitting he is on a buying spree of "cheap" stocks at the pinnacle of the credit crisis. Mr Bolton,...

Old Mutual pays out almost GBP50m in compensation.
October 6, 2008... Byline: Daniel McAllister Old Mutual has dished out nearly GBP50m to settle a long-rumbling dispute between its Skandia subsidiary and its former Swedish asset management business. Skandia was forced by an arbitration board to pay the...

Sparinvest enters UK market.
October 6, 2008... Byline: Daniel McAllister Danish fund management group Sparinvest has made its first foray into the UK retail market with three strategic asset-allocation funds. The three sub-funds available through its Luxembourg-based Sicav will be...

Fidelity offers free entry into Multi-Asset Strategic fund.
October 6, 2008... Byline: Daniel McAllister Fidelity International is offering free entry into its GBP53.4m Multi-Asset Strategic fund in a bid to woo cautious long-term investors onto its books. Investors will pay no front-end charges on new money...

Skerritt look into wine and timber.
October 6, 2008... Byline: Nick Rice Hove-based IFA Skerritt Consultants has said it is launching an alternatives portfolio to take advantage of consistently outperforming asset classes. Andrew Merricks, head of investments at Skerritt, said the fund...

Liontrust seeks to launch global products.
October 6, 2008... Byline: Nick Rice Firm says it will develop any absolute alpha retail products in conjunction with its long-short equity hedge fund range Liontrust Asset Management is looking to launch global equity and UK and European absolute alpha...

Morningstar reveals short-term performance craze.
October 6, 2008... Byline: Nick Rice The latest data from Morningstar has revealed a short-term performance craze in the volatile UK equity markets that IFAs say could damage long-term returns. As at 29 September, GBP61.9bn lay in UK All Companies funds...

Midas makes Callow assistant manager of trust.
October 6, 2008... Byline: Jim Robinson Midas Capital Partners has appointed Simon Callow as assistant manager of the Midas Income & Growth trust. Mr Callow, who has 12 years' experience in the investment management industry, joined Midas in 2005. Since...

Thames River appoints Pollok as risk manager.
October 6, 2008... Byline: Jim Robinson Thames River Capital has appointed Graeme Pollok, a senior figure from the Financial Services Authority, as compliance and risk manager. Thames River said Mr Pollok's appointment would further strengthen its...

Polish drinker.
October 6, 2008... Byline: Hugo Greenhalgh Diary's eye was drawn to a rather raucous letter in last week's FT. Commenting on the current economic situation the author compared the crisis to "a wild party, a long one. Every time the alcohol supply dries up,...

Reputation unfreezes.
October 6, 2008... Byline: Feargus O'Sullivan is a freelance journalist Austrian wine was once forgettable where it wasn't a health hazard, but the stuff now includes some of the hippest varieties around Austrian wine was once the sort of thing strict...

Knox looks to future with US fund.
October 6, 2008... Byline: Rob Langston Knox D'Arcy Investment Management said it could launch its Directors Dealings trust in the US if the fund is successful in the UK. Thomas Howard, investment analyst at Knox D'Arcy, said although there were similar...

ECB leaves interest rates unchanged.
October 6, 2008... Byline: James Kenny Current rate of 4.25 per cent is at a seven-year high since July's quarter-point rate rise The European Central Bank decided last week to leave interest rates unchanged at 4.25 per cent, a move widely anticipated by...

Morningstar acquires UK-based data provider.
October 6, 2008... Byline: Jim Robinson Investment research firm Morningstar has acquired Fundamental Data, a UK-based provider of data on closed-end funds, for GBP11m. Fundamental Data covers all closed-end funds domiciled in the UK and the US, as well...

Schroders delays launch of agricultural trust plans.
October 6, 2008... Byline: Rob Langston Schroders has temporarily shelved plans to launch its Agricultural Land trust after growing concerns over volatility in the equities markets. Robin Stoakley, head of UK retail at Schroders, said there was a lot...

Moscow millions.
October 6, 2008... Byline: Daniel McAllister Global economic meltdown, what meltdown? Say Russia's cocooned mega-rich. Moscow's glitterati with the same attuned sense of normality as the Brangelina brats, are snapping up GBP50m (2.5bn roubles)...

What matters.
October 6, 2008... Byline: Rob Langston As the markets continue to take a pounding, one ex-stock broker has come up with some "heavenly" advice for former colleagues to survive the credit crunch. Hristo Mishkov - an ex-Nasdaq broker who quit to join a...

Sex credit.
October 6, 2008... Byline: James Kenny Dutch city Eindhoven is to award credit points to street prostitutes in exchange for good behaviour. Under the new scheme prostitutes with enough points will get street miles from the City Hall which they can use to...

Fortis looks to sell Artemis following bail-out.
October 6, 2008... Byline: Nick Rice Nick Wells, product and communications director at Artemis, said Fortis's purchase of equity held by Artemis staff was "not our preferred outcome" and had been caused by market turbulence. He said: "Fortis has not...

RWC launches new long/short Asia fund.
October 6, 2008... Byline: Nick Rice Manager aims to attract long-term investors with stocks in large, liquid firms RWC Partners has said the blanket shorting bans in Australia and Korea should not hinder the launch of its new long-short, Asian equity,...

Advisers change commission structure.
October 6, 2008... Byline: James Kenny Advisers have started to reduce the initial commission they charge in favour of enhanced recurring remuneration, according to new analysis by Skandia. Skandia conducted a survey of 3000 users of its Selestia...

Red flag ripples.
October 6, 2008... Byline: Hugo Greenhalgh It looks as if global capitalism will survive. But should it? Surely the boom and bust cycle each economy suffers brings more pain than benefit. Just how masochistic do we have to be to put up with the old financial...

Worst perfomers contain few surprises.
October 6, 2008... Byline: Chris Traulsen is director of fund research The third quarter has been eventful to say the least The third quarter was eventful to say the least. It featured major financial institutions failing or requiring government...

Cheviot bucks the trend.
October 6, 2008... Byline: Laura Mossman In the Balanced Managed sector, some performers vary more than others. How do the winners do it? The broad rules governing the IMA Balanced Managed sector mean it is home to a wider range of funds than can be...

Blue Sky defends structured product.
October 6, 2008... Byline: Nick Rice Accelerated Recovery Plan breached capital protection barriers last week Blue Sky Asset Management has defended its Accelerated Recovery Plan after the structured product breached its capital protection barriers last...

Close seals deal with Fountains.
October 6, 2008... Byline: Daniel McAllister Close Investments has sealed an investment partnership with international land asset management firm Fountains Forestry in a bid to boost its green credentials. Steven Oliver of Close Investment Property said...

Aberdeen stake snapped up by MUTB.
October 6, 2008... Byline: Daniel McAllister Japan's Mitsubishi UFJ Trust and Banking Corporation has snapped up a nearly 10 per cent stake in Aberdeen Asset Management. MUTB plans to buy 9.9 per cent of Aberdeen's issued share capital, with the option...

Liontrust appoints Tim Gordon as distribution manager.
October 6, 2008... Byline: Jim Robinson Liontrust Asset Management has appointed Tim Gordon as third-party distribution manager. Mr Gordon will report to head of wholesale distribution Mickey Morrissey and help expand sales through life companies and...

TBO fined over advice records.
October 6, 2008... Byline: James Kenny The Financial Services Authority has fined a York-based investment firm over failing to clearly document the explanation of risks to clients. The FSA fined TBO Investments GBP28,000 and criticised the firm for...

Hang together, or we will hang separately.
October 6, 2008... Byline: Open letter to Europe Several senior European economists call for an EU-wide coordinated banking rescue plan With the savings of hundreds of millions of Europeans threatened, nothing less than an EU level joint recapitalisation...

Healthy attitude to investing.
October 6, 2008... Byline: Anne Ezendam In these tough times the healthcare sector is proving to be a very safe haven The markets remain in a volatile state with events being dominated by financials and the energy sector. Amid this turbulence though, the...

Henderson's Patullo regrets bet on asset-backed securities.
October 6, 2008... Byline: Nick Rice The manager of the GBP672.6m Henderson Preference & Bond fund has said he regretted buying late into the asset-backed security boom and described the fixed interest climate as the worst in the last 10 years. John...

Newton hires new investment director.
October 6, 2008... Byline: Jim Robinson Newton Investment Management has appointed Karen Clark as director of investment management for its private client division. Ms Clark will report to Ruth Murphy, director of business development, and be responsible...

F&C upbeat on European firms despite volatility fears.
October 6, 2008... Byline: Rob Langston European companies continue to present opportunities for investors despite fears over volatility in the Anglo-Saxon economies, according to F&C's Crispin Longden. Speaking after the recent AIC roundtable on the...

Prospect launches new low-risk fund.
October 6, 2008... Byline: Rob Langston Prospect Wealth Management has announced the launch of a new investment portfolio to protect investors against current volatility in the market. Matthew Hunt, principal at Prospect, said the Deposit Alternative...

UK equity funds take a battering, says Morningstar.
October 6, 2008... Byline: Daniel McAllister The performance of the whole gamut of UK equity funds and a raft of UK bond funds took a hammering over the third quarter as the credit crunch continues to ravage returns, according to research by Morningstar. ...

S&P rolls out Commercial Paper index.
October 6, 2008... Byline: Daniel McAllister Standard & Poor's has rolled out the S&P US Commercial Paper index, designed to provide a benchmark for the country's commercial paper market. The index, part of S&P's family of fixed income indices, will...

Assured Future moves to grow business.
October 6, 2008... Byline: Jim Robinson IFA firm Assured Future has relocated to Great Missenden, Buckinghamshire, with a view to expanding its team and developing its client base across the Thames Valley area. Moreover, the company said it would be the...

Bloxham looks to market recovery in 2009.
October 6, 2008... Byline: James Kenny Dublin-based wealth manager Bloxham is gearing up for what it expects will be a substantial recovery in 2009 despite pronounced market volatility in 2008. As part of this strategy, Pramit Ghose, manager of the...

Vehicle was untouched by shorting ban, claims BlackRock.
October 6, 2008... Byline: Nick Rice Firm says UK Absolute Alpha did not close any positions last month BlackRock has revealed the FSA's shorting ban did not force the GBP1.4bn UK Absolute Alpha fund to close any of its positions last month. Alex...

New Star recession indicator above 50%.
October 6, 2008... Byline: Jim Robinson New Star's "monetary recession probability indicator" for the UK is now above 50 per cent, according to chief economist Simon Ward. However, Mr Ward said, while the indicator was above 50 per cent, the probability...

Blue Gate in driving seat with commercial property vehicle.
October 6, 2008... Byline: Daniel McAllister Sale and leaseback of car dealerships used to launch Capital Fixed Uplift fund which aims to raise GBP4.5m Blue Gate Capital has launched a commercial property fund designed to cash in on the sale and...

Engaged Mutual fund changes mandate.
October 6, 2008... Byline: Jim Robinson Engage Mutual's unitised With Profits fund will adopt a more active investment mandate at no extra cost to customers. Engage said the fund, which will be managed by Insight Investment, will look at a "far more...

Barclays Wealth launches pair of Defined Returns plans.
October 6, 2008... Byline: Jim Robinson Barclays Wealth has launched two new Defined Returns plans, available from 1 October. The Capital Protection and Annual Kick-Out plans offer fixed returns over a number of investment periods for minimal gain in...

Sipps interest on the rise, claims AJ Bell.
October 6, 2008... Byline: Jim Robinson Interest in Sipps is on the rise, according to AJ Bell, one of the largest Sipp administrators in the UK. Registrations on AJ Bell's SIPPcentre - an online service for IFAs - increased by 44 per cent for the year...

BlackRock uncovers good news on US recession.
October 6, 2008... Byline: Daniel McAllister The global credit crunch will only tip the US into a mild recession despite last week's calamitous events, according to BlackRock's Bob Doll. Mr Doll, vice-chairman and chief investment officer for global...

Evershed passes New Star small-cap baton to Green.
October 6, 2008... Byline: Daniel McAllister Long-standing small-cap fund manager Patrick Evershed has stepped down at New Star Asset Management and been replaced by newly appointed Trevor Green. Mr Evershed, who has more than 40 years' experience in...

Premier fund rebuild almost complete.
October 6, 2008... Byline: James Kenny Manager claims new structure radically different from previous one, with focus on large-cap stocks Chris Wright has nearly completed his restructuring of the GBP8m Premier Dividend fund, giving it a wider investment...

The usual old story.
October 6, 2008... Byline: Nathan Bridgeman, Director, TM Sipp Services The reduction in the number of independent pension firms has reached worrying proportions One consequence of the current financial storm caused by the credit crunch is the rapid...

Barrow boys cannot sell tainted fruit.
October 6, 2008... Byline: Stephen Wilmot Some managers find corporate bonds unfairly undervalued as only Lehman brothers has so far actually defaulted Corporate debt may nominally belong to the same asset class as government bonds, but in the current...

Fidelity makes soothing noises about stock-market rebounds.
October 6, 2008... Byline: Rob Langston Market volatility should be included in investors' long-term plans and preparations made in view of the volatile economic climate, according to Fidelity. The investment company said although stock market volatility...

IMA urges FSA to abolish reduction-in-yield reports.
October 6, 2008... Byline: Rob Langston IMA claim reduction-in-yield information has no benefit to consumers and could be potentially misleading The Investment Management Association has called on the Financial Services Authority to abolish requirements...

Fidelity plans to switch whole multi-manager portfolio to non-Ucits scheme.
October 6, 2008... Byline: Daniel McAllister Fidelity is planning to switch its entire multi-manager portfolio to the non-Ucits retail scheme in a bid to diversify the funds' investment potential. Peter Hicks, head of IFA channel at Fidelity, said the...

Low Carbon winds back.
October 6, 2008... Byline: Jim Robinson Low Carbon Accelerator, a closed-end investment company that invests in low-carbon companies, said it was focusing its resources on supporting existing portfolio companies due to current market conditions. ...

Corazon opens Alternative Investment to retail market.
October 6, 2008... Byline: James Kenny Channel Islands-based fund manager Corazon Capital is opening its $82m (GBP46m) Alternative Investment fund to the retail market following strong demand. The fund has been running since 2002 and invests in a range...

New Star's Webster urges a return to traditional investing.
October 6, 2008... Byline: James Kenny Manager says he is stunned more investors are not diversifying despite continuing volatility Investors should snap out of their infatuation with equities and return to more traditional, stable assets such as...

Will there be a retail run on banks?
October 6, 2008... Byline: Philip Coggan Auguries of real disaster might not be indicated by the FTSE index but by the Libor rates "Events, dear boy, events". That was what Harold Macmillan most feared in his premiership and it is what investors (and...

Investors with strong capital preservation should have weathered bail-out upset, claims Julius Baer.
October 6, 2008... Byline: Nick Rice Investors with low turnover and strong capital preservation should have weathered the initial US bail-out failure intact, according to Julius Baer Group. Christian Gattiker, head of research and equity strategy,...

Bold action needed to stabilise UK business, claims RLAM.
October 6, 2008... Byline: Nick Rice "Bold, imaginative and significant action" is needed to stabilise UK business, according to Royal London Asset Management. Robert Talbut, chief investment officer, said the current "case-by-case" approach to dealing...

Canada Life extends the new offer period.
October 6, 2008... Byline: Nick Rice Canada Life has extended the new offer period on its Canada Life Income fund until the end of the year. The company gave investors in its Flexible and Select investment bonds the chance to put a sum worth as much as 1...

Fund managers warn of years of fallout from crunch.
October 6, 2008... Byline: Daniel McAllister The fallout from the credit crunch, which reached fever pitch last week, will wreak havoc through the global economy for years to come, fund managers warned. As the US government battles to cope with the...

Schroders makes move to strengthen position in eastern markets.
October 6, 2008... Byline: Rob Langston Schroders has completed the acquisition of Taiwanese E.Sun Securities investment trust for GBP8.8m from E.Sun Financial Holding. The acquisition, first announced on 17 July, gives the company access to an existing...

Ireland falls into recession for first time since 1980s.
October 6, 2008... Byline: James Kenny Irish prime minister Cowen defiant country will come out of slump arguing downturn part of economic cycle Ireland has become the first eurozone economy to slump into recession despite having been one of Europe's...

Japanese equities set to overcome hurdle.
October 6, 2008... Byline: Nick Rice Jupiter says institutional investors are finally ready to enter market One of the crucial stumbling blocks for Japanese equity markets may soon vanish altogether, according to Jupiter Unit Trust Managers. Simon...

S&P Fund Services see Russian opportunities despite stock market fluctuations.(Industry overview)
October 6, 2008... Byline: Daniel McAllister Violent fluctuations in Russia's stock market have not dampened investors' confidence in the country's long-term investment prospects, according to research from S&P Fund Services. The report on the emerging...

Investors vote with their feet.
October 6, 2008... Byline: Chris Taylor Despite the IMA's recent criticims of structured investments investors are increasingly attracted to them Advisers and investors do not need any reminding that these are troubled times. At the time of writing, the...

Special situations managers in trouble.
October 6, 2008... Byline: Rob Griffin is a freelance journalist Though opportunities exist for contrarians to pick off struggling companies presently Markets are in turmoil, stock values are plummeting and hundreds of unit trusts are losing money. It is...

Global small caps offer compelling value.
October 6, 2008... Byline: Nathalie Degans Now may be a good time for investors to increase their exposure to this asset class GGlobal small-cap stocks have long been a rich hunting ground for stock-picking investors, attracted by the potential for...

Investment trusts risk being kicked out of FTSE All-Share index.
October 6, 2008... Byline: Rob Langston A "significant number" of investment trusts are at risk of exclusion from the FTSE All-Share index as changes to its liquidity rules are introduced, according to analyst firm Winterflood Securities. The firm said...

Crisis will result in smaller financial sector, claims T Rowe.
October 6, 2008... Byline: Jim Robinson The financial sector is going to be smaller and less lucrative as a result of massive restructuring and increased government regulation in the aftermath of the current crisis, according to Jeff Arricale, manager of the...

Market volatility boosts Absolute Return retail sales.
October 6, 2008... Byline: Daniel McAllister Investors rush to shed exposure to equities according to IMA monthly fund figures Rampant volatility in world markets helped boost retail sales in the Absolute Return sector in August as investors shed...

Merchant research highlights IFAs' fears over Sipp reform.
October 6, 2008... Byline: Jim Robinson Many IFAs are sceptical changes to regulations governing the self-investment of protected rights will run smoothly, according to research by Merchant Investors. More than a fifth of respondents to Merchant's survey...

Equity funds post gains, says FundsNetwork.
October 6, 2008... Byline: Nick Rice Income proved the most popular investment choice in August as equity funds posted pre-bail-out gains, according to Fidelity FundsNetwork. UK Equity Income sold better than any other peer group on the platform,...

Barings positions itself for new purchases.
October 6, 2008... Byline: Nick Rice The GBP74.7m Baring Extended Risk fund has positioned itself for a swathe of purchases by putting a further 5 per cent of its assets in cash. James Calder, manager of the fund and head of multi-manager at Baring...

Skandia ditches Lehman as commodity manager.
October 6, 2008... Byline: Nick Rice Chief investment officer James Millard says investment group is to transfer to Morgan Stanley strategy Skandia Investment Group has fired Lehman Asset Management as the commodity manager on its GBP28.4m Alternative...

Ask the right questions and dig a little deeper.
October 6, 2008... Byline: Sisouphan Tran In today's volatile market, advisers need to be increasingly aware of the risks and benefits of structured products Recent volatility in the markets has brought the risks and rewards of structured products into...

Aviva Investors launched after months of restructuring.
October 6, 2008... Byline: James Kenny A radical change, not simply rebranding claims Aviva Investors' chief executive Aviva has officially launched Aviva Investors, the new global asset management business of the company after months of restructuring....