Fund Strategy
15 December 2003

  • 2003: a better than expected year

    15 Dec 2003

    As 2003 comes to a close, we can look back on the year as being more successful than might have been expected for equity market investors. At the end of 2002, managers were sceptical that 2003 would see any significant growth for mutual funds. As I write, we are looking at 2003 as being the best-performing year since the dotcom boom days.In fact, major equity fund markets have posted well in excess of double-digit returns to the end of November and Global Growth funds returned a ...

  • A 94% rise shows JPMF fund's metal

    15 Dec 2003

    These are glistening times for gold bugs. The gold price has jumped above $400 per ounce for the first time in nearly eight years, and a World Gold Council initiative to encourage demand looks set to take off.Gold Bullion Securities is launching on the stockmarket with perfect timing. Retail investors can now, for the first time, buy and sell shares that represent a 10th of an ounce of gold and mirror the world gold price. Direct investment in gold has always been hampered by the ...

  • A balance of stages in biotech investment

    15 Dec 2003

    Kate Bingham, 38, is investment adviser to the International Biotechnology investment trust. She joined Schroder Ventures in 1991. Previously, she worked in business development for US biotechnology company Vertex, and at Monitor Company, a strategy consulting firm. Bingham serves or has served on the boards of Affibody, Essential Therapeutics, Hexagen, Ingenium, LeukoSite, Lorantis, MedNova, Metris, Nexan and the UK Bio Industry Association. She has a degree in Biochemistry from Oxford ...

  • A group punching above its weight?

    15 Dec 2003

    Framlington may not be the biggest name in the fund management industry, but it has a significant claim to fame - as revealed in this week's cover story, one of its funds is the top performer of the year. Indeed, over one year 22 out of 24 funds are in the first or second quartile of their respective sectors. Over three years, however, the picture is less rosy, with just eight out of 19 funds in the top half of their peer group.The more positive global markets in 2003 have clearly ...

  • Asian strength will offset US downturn

    15 Dec 2003

    Singer & Friedlander Pacific Growth fund manager Nicholas Morse says Asia is still in the early stages of an asset reflation story that would support equities against a downturn in the US economy.A recovery in property prices and financial assets, particularly in Hong Kong and Singapore, is encouraging investors back into the market. The strength of Asian consumers would also support the region if the US economy took a downturn, says Morse."There is plenty of room for consumption ...

  • e.tr@der

    15 Dec 2003

    From: dieter.schwind@ndg-fm.comTo: All Stella Investment staffSubject: Welcome on boardA great big hello to all of you joining the NordDeutsche Girobank investment family. We pride ourselves in having a robust process and an enduring culture, which I am sure you will be happy to sign up to. I hope to meet you all before Christmas.From e-trader@stella-am.comTo: bill.robson@suffolkbuild.co.ukSubject: We need you!What do you mean, you cannot return until ...

  • Europe and US blamed

    15 Dec 2003

    Edinburgh Worldwide investment trust has had a period of "disappointing" performance in a year that saw its management changed.The trust's net asset value per share rose by 7.3% in the year to October 31, according to the latest results, published last week. This compares with a 12.1% rise in its MSCI World index benchmark. Management was switched from Edinburgh Fund Managers to Baillie Gifford on November 1.The underperformance was blamed on poor returns from European and North ...

  • F&C snaps up Goh

    15 Dec 2003

    Former Govett Japanese Opportunities fund manager Kerry Goh is to join F&C Management. Goh, who will start his new job in February, will be working with F&C Pacific investment trust fund manager Christian Dangerfield on the Japanese element of the trust.Goh managed the Govett Japanese Opportunities fund until Gartmore bought Govett Investments last month. He is a former colleague of Dangerfield, who made the move to F&C in the summer. Goh was based in Singapore and will ...

  • Fund managers diary

    15 Dec 2003

    Tuesday Leave the house struggling to carry the Christmas cake for our quarterly strategy meeting today (which I made in October and have been feeding with brandy ever since), pausing briefly to admire the lamb in my daughter's advent calendar (eek, only 23 days until Christmas). Today is a quiet day and I am pleased to see that the portfolio is performing well.After a lunchtime briefing on the semiconductor industry, the day is dominated by the asset allocation meeting in the afternoon. ...

  • Fund Manager's response

    15 Dec 2003

    China has enjoyed phenomenal growth in the past year and this is set to continue, but at a more realistic pace of 7-8% in terms of GDP growth. Key factors driving this growth have an impact on the short term as well as the long term.Personal income has been growing at 10% a year but from a low base, while consumer debt is low and savings are high; these conditions are creating a rising middle class that is driving the current growth in consumption in search of a better lifestyle. ...

  • Gartmore recruits Knight as senior manager

    15 Dec 2003

    Gil Knight, a top-performing fund manager of US equities, has joined Gartmore Investment Management as a senior portfolio manager.Knight, with 33 years' experience, was previously managing director and senior portfolio manager of MTB Investment Advisors. At MTB, he sub-advised the top-decile Gartmore Govett US Opportunities fund and the equivalent offshore product, the Govett Securities & Investments US Growth fund. He will continue to manage the funds while employed at Gartmore ...

  • Government need for cash likely to push up gilt yields

    15 Dec 2003

    Gloomy news in last week's pre-Budget report about the UK Government's borrowing needs is likely to push up gilt yields, with a knock-on effect on corporate bonds. The equity markets are likely to be unaffected, however, unless the Government's need for revenue forces it to target sales and profits for added tax revenues.Gordon Brown, in a typically punchy speech, made fewer references to "Prudence" (three mentions compared with eight in the 1998 Budget), but rather more to her ...

  • Look how they shine

    15 Dec 2003

    There is no doubt over what had the most significant impact on markets in 2003. To say that the war in Iraq caused jitters on the financial market would be a massive understatement. The FTSE 100 reached its nadir of 3287 on March 12 when the Allies' campaign was hitting difficulties.Now the situation is much rosier. Markets have made a staggering comeback and a look at our table on page 12 reveals that all the fund sectors have turned in positive average performances in 2003, although ...

  • Market motto 2003: those who dare win

    15 Dec 2003

    When people look back on 2003, they may well remember it as the year when taking risks came back into fashion. The bear market had already been one of the longest ever when the year started, and there was the prospect of war in the Middle East. The market misery continued at the year's outset and the FTSE 100 sank lower as declaration of war drew closer, finally hitting a low point on March 12. And then it was over.The bear market came to an end and markets embarked on a rapid rise, ...

  • My Asset Allocation

    15 Dec 2003

    This portfolio is a review of our favoured funds of this year and some for next year. I know it is easy to say now, but three themes we were keen on at the start of the year were UK mid/small-cap (the focus of My Asset Allocation in February), high-yielding corporate bonds and emerging Europe.Since the FTSE 100 bottomed on March 12, all world markets have seen a noticeable rise, with some going up more than others. Half the portfolio is in the UK, with Tim Russell's Cazenove UK ...

  • New EU countries face 'big risks'

    15 Dec 2003

    Newton Continental European fund manager Rajesh Shant is avoiding Eastern Europe, fearing that countries set to join the European Union will encounter difficulties.Last week, a UN economic commission survey showed that growth prospects in Eastern Europe remain strong, but Shant says countries such as Hungary - which is set to join the EU in May - face big risks. These dangers, he says, are not reflected in valuations because markets expect a smooth transition.Shant says the ...

  • Scottish American moves to turn around losses

    15 Dec 2003

    The £333m Scottish American investment trust has appointed Baillie Gifford as investment manager in an attempt to stop long-term poor performance, but Nick Greenwood, head of investment trusts at iimia, believes the change may not go far enough.The move coincides with the departure of Derek Lygo as head of UK equities at First State, the previous adviser to the trust. Lygo had managed the UK portion of the trust. Performance had improved over one year, but the trust has still ...

  • Stavis takes over from McCarron at Income

    15 Dec 2003

    Fidelity Income Plus fund manager Tim McCarron is handing over management of the fund to John Stavis.Stavis, who currently manages the Fidelity Growth & Income fund, will take control of the UK-invested vehicle in January. Fidelity Investments says the move is to allow McCarron to focus on the other funds he runs, including the Fidelity European.Bottom-up stockpicker Stavis will focus on firms with a proven track record of high cash generation. He will take large stock positions ...

  • Talk of a bond crash is 'misplaced'

    15 Dec 2003

    Ken Barker, manager of the Baillie Gifford Corporate and High Yield Bond funds, believes that recent talk of an imminent crash in corporate bond prices is misplaced and that there are plenty of supportive factors for valuations into 2004.Barker says there is still deflationary pressure in the global economy: "A lot of slack is still in the system. Capacity utilisation in the US is still much lower than average. Also, there is a strong cyclical trend to cheaper production with the ...

  • World roundup

    15 Dec 2003

    A series of upbeat technology forecasts provided a late boost to worldwide trading, which had been cautious in the wake of the Federal Reserve's economic policy shift. The US central bank said that deflation was no longer a bigger risk to the world's largest economy than inflation, amplifying the debate about the timing of an interest-rate rise.TMTNasdaq: 1942 from 1938A jam-packed week of earnings updates resulted in a volatile ascent for technology stocks. With traders ...

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