news round-up
Corporate bonds lead popularity stakes as
2009 investment fund sales top £25.8bn
Net retail sales of new
investments reached a
record £25.8bn last year,
45% above the previous
highest year – 2000 –
according to the IMA.
There was more than
£480bn of funds under
management at the end of
2009, the highest recorded,
and ISA sales of £2.8bn –
the largest since 2001.
The corporate bond
sector led in terms of
inflows through much of
the year and saw total net
sales of £5.97bn, twice that
of the absolute return
sector, which was second
with sales of £2.55bn. This
compares with sales of
£1.61bn and £1.48bn,
respectively, for the two
sectors in 2008.
The strategic bond sector
was also popular in 2009
with total net sales reaching
£1.96bn, putting it in third
Mottram joins DSP to boost
its global equity lineup
Dalton Strategic
Partnership (DSP) has
appointed Nick Mottram
as a partner and portfolio
manager in its global
equity team. He joins from
Origin Asset Management,
the business he founded
in 2004 with four other
partners. Before setting up
Origin, he was a director
and head of equities in
London at Investec Asset
Management after
spending 10 years at
Schroder Investment
Management where he
was a director and global
head of research.
HSBC Private Bank
appoints property head
HSBC Private Bank has
hired Paul Forshaw as
head of real estate fund
management as it steps up
Sales by asset class
Asset class Net retail sales ’09 Net retail sales ’08
Bonds £9.87bn £2.85bn
Equities £7.37bn -£1.25bn
Other £4.97bn £1.47bn
Balanced £2.07bn £0.98bn
Property £1.67bn -£0.47bn
Money market -£0.03bn £0.24bn
Source: Investment Management Association
place ahead of property
which saw a resurgence of
interest in the later stages of
last year.
Property, which was the
highest selling sector in
October and November,
recorded total net sales of
£1.64bn, a huge increase
on 2008’s £0.47bn outflow.
Overall, bonds were the
highest selling asset class
taking £9.87bn over the
year – a huge rise on 2008’s
net sales of £2.85bn – and
£2.5bn ahead of equities.
Fund manager moves
its commitment to the
property market. Forshaw
will report to Chris Allen,
CEO of the firm’s
alternative investment
division, and will devise
and implement real estate
strategy. He joins from
Kaupthing Investment
Bank where he was part
of a team responsible for
property investment,
investing in joint venture
equity in the UK, US and
emerging markets.
Forshaw has also spent
time at Knight Frank and
Fuller Peiser as well as
seven years as a director
of CBRE.
Newton beefs up team with
portfolio management duo
Newton Investment
Management has
strengthened its
Edinburgh-based private
investment management
IMA chief executive
Richard Saunders said:
“2009 has seen investors
adding to their savings at
record rates. This trend can
be traced back to the
autumn of 2008 in the
immediate aftermath of the
Lehman crash and the
ensuing market falls.
Investors have prudently
chosen wide diversification
both across asset classes
and geographically – in
marked contrast to the previous
record year of 2000.”
team with Matthew Coyle
and Matthew Dey. Coyle
joins as an assistant
portfolio manager
focusing on private client,
trust and charity
portfolios. He previously
worked at Thornhill
where he assisted in client
portfolio management, as
well as providing
administrative and
operational support to the
company directors. Dey is
joining as a trainee
portfolio manager,
assisting with the day-today
running of portfolios
for both charity and
private clients. He joins
from Heriot-Watt
University where he
graduated with an MBA.
New deputy for Scottish
Mortgage Investment Trust
Tom Slater has been
appointed deputy
Skandia UK Best Ideas
product gets new focus
Skandia has refocused its
£141m UK Best Ideas multimanager
fund after a disappointing
performance when
markets rose last year.
It has axed Cazenove
Capital Management’s Tim
Russell and Ignis Cartesian’s
Andrew Kelly and David
Stevenson. The firm says it
wants to focus on those
managers who have “successfully
demonstrated a
pragmatic approach to
managing the fund’s highly
concentrated portfolios”.
Skandia CIO James
Millard said: “While we
were disappointed to see
the fund reacting badly to
the collapse in stock prices
in 2008, we expected it to
recover equally as strongly
when the market recovered
in 2009. Given that it did
not outperform as anticipated,
it has been necessary to
take significant action on
behalf of our investors.”
For daily breaking
news visit
www.portfolio-adviser.com
manager of Scottish
Mortgage Investment
Trust. He will work
alongside James Anderson,
chief investment officer at
Baillie Gifford & Co and
head of the long-term
global growth team. Slater
is an investment manager
in that team, having joined
Baillie Gifford in 2000.
Principal hires chief
investment officer
Stephen Jones is joining
Principal Investment
Management as its new
chief investment officer.
He will move to the firm
in mid-April from
Gartmore Investment
Management where he
was head of European
equities. Prior to
Gartmore, Jones worked
for the Prudential Group,
including seven years as a
fund manager.
NEWS ROUND-UP
MARCH 2010 [www.portfolio-adviser.com] PORTFOLIO ADVISER
8
LGIM posts rise
in net inflows
Legal & General
Investment Management
(LGIM) saw net inflows
last year of £8.8bn, with
net retail fund inflows
accounting for £2.1bn.
The latter figure was a
substantial rise on the
£0.4bn received during
2008 and increased the
firm’s retail assets under
administration by 43%
to £13bn by year end.
Witan CEO gets
his own blog
Andrew Bell, the new
CEO of Witan Investment
Trust, has started
recording his thoughts
in a regular blog on
the firm’s revamped
website, which is now
live at www.witan.
com. He plans to use
the blog as a means
of maintaining regular
communication with
Witan’s shareholders
and the broader
investment community.
Gilliat launches
income builder
Gilliat Financial Solutions
has unveiled Income
Builder: February 2010.
The product is linked
to the performance of
the FTSE 100 Index
and offers investors up
to 7% income pa over
the full six-year term
(equating to a maximum
of 42%) and a 60% soft
protection barrier. Gilliat
believes this product
will appeal to those
who like investing in
the FTSE 100 and are
seeking regular income
due to low interest rates.
Investors could earn
annual income of up to
7% gross during the sixyear
product term.
7
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