NEWS ROUND-UP
news round-up
Global fund from
AllianceBernstein
AllianceBernstein has
rolled out Global Thematic
Research Portfolio, a
Luxembourg Ucits III fund
which pursues long-term
capital growth. The product
aims to identify the most
dynamic global economic
and technological trends
and then invest in those
early growth companies
poised to benefit from
them. AllianceBernstein’s
analysts have identified
five key themes which they
believe have the potential
to transform industries
and create significant
investment opportunities:
a new era for genomic
medicine, the widening
use of the internet, abating
climate change, the rise
of the middle classes in
the emerging markets and
heightened cyclicality.
Barclays Wealth
re-accumulates
Barclays Wealth has
reissued its UK
Accumulator, a six-year
investment which offers
100% of the rise in its
index up to a maximum
return of 60%, with gains
locked in for every 15%
rise in the FTSE 100 during
the term. For example, if
the index rises by 15%
from its starting level at
any time, the Accumulator
will automatically lock in a
15% return. If the FTSE
100 rises by another 15%
from its starting level, a
30% return will be locked
in, and so on up to a
potential maximum payout
of 60%. The Accumulator
also ensures a full
repayment of capital at
maturity, as soon as the
first lock-in level of 15% is
achieved. Before this point,
capital would be at risk if
the index fell by more than
50% from its starting level
and remained below this
level at maturity.
Fidelity sets performance fee as it looks to
raise £630m for China Special Situations
The Anthony Bolton-led
Fidelity China Special
Situations will carry a performance
fee equal to 15%
of any increase in its NAV
over MSCI China Index,
subject to a hurdle rate
of 2%.
But Fidelity has confirmed
that if the fund
underperforms the rate in
any year, this shortfall must
be made good before any
further performance fee
becomes payable. The
maximum performance fee
payable in any year will be
1.5% of NAV. The trust
also has an annual charge
of 1.5% of total net assets.
Fidelity is targeting an
initial capital raising of
£630m before the public
offer closes on 5 April.
Investors will be able to
apply for shares from 26
February. The fund will
invest in a diversified portfolio
consisting primarily of
securities issued by companies
listed in China or Hong
Kong and Chinese firms
listed elsewhere. Bolton
will manage the portfolio
using his contrarian
Product launches
Insynergy joins GAM
to unveil China product
GAM and Insynergy have
partnered to launch the
Dublin-domiciled
Insynergy Absolute China
Fund, designed for Michael
Lai who runs the GAM
Greater China Equity
Hedge Fund. Scheduled
for launch in mid-April, it
targets a risk-adjusted absolute
return over the market
cycle of 20%-25% pa. Lai
will manage the fund with
a completely unconstrained
mandate, subject to Ucits
regulations, identifying
top-down regional themes
and overlaying them with
bottom-up company
research and stock selection.
He will hold up to 70
positions. The long portfolio
can be 15 to 60 stocks
with a short portfolio of up
to 20. In preserving alpha
generation, the fund is to
be limited to $250m.
China index performance – 3 yrs
%
120
80
40
0
-40
MSCI Emerging Markets
Feb ’07 Aug Feb ’08 Aug
Source: Financial Express Analytics
Minimum investment is
£2,500 with an initial
charge of 5% and annual
management charge of
1.25%. There is also a performance
fee of 20%.
www.insynergyim.com
Harewood rolls out
euro volatility offering
BNP Paribas is launching
the Vol Edge Fund, a French
FCP to be managed by
its UK business, Harewood
Asset Management. First
launched to French institutional
investors in 2007, it
aims to limit the effects of
equity market volatility. It
is indexed to the forward
short-term implied volatility
of a benchmark European
equity index representing
50 supersector leaders in
12 eurozone countries. It
is open-ended, priced on a
daily basis and, with transparent
fees and no bid/
offer spread, aims to pro-
MSCI China
approach to investment to
achieve long-term growth.
Shares in the company
will be issued at £1 and
made available through a
public offer for subscription
in the UK and a placing
in certain overseas
jurisdictions.
vide professional investors
a liquid, short- or longterm
hedging solution. UK
discretionary managers can
access it via a direct investment
in the Vol Edge Fund
or a UK tax-efficient tracker
certificate, which tracks the
fund with a sterling hedge.
www.harewood-am.com
GLG launches hedged
version of Japan fund
GLG Partners has launched
a currency-hedged replica
of its £698m Japan
CoreAlpha Fund. The GLG
Japan CoreAlpha Equity
Fund, managed by Japan
equity managers Stephen
Harker and Neil Edwards,
is a mirror of the unhedged
GLG Japan CoreAlpha
Fund, which was awarded
elite status by Morningstar
last month as one of the
top performers in its sector.
GLG said the fund reported
a return of 9.95% since
FSA loses chief
executive officer as
Sants steps down
Hector Sants is to leave the
FSA this summer after three
years as its chief executive
officer.
Sants joined the FSA in
2004 from CSFB, where he
had been chief executive
of its Europe, Middle East
and Africa division. His
appointment was the first
time the FSA had hired
someone to its board
directly from the financial
services industry.
His first role at the City
watchdog was as managing
director, wholesale and
institutional markets, with
responsibility for all regulated
markets. He was
appointed CEO in July
2007 and said at the time
he would only hold the
position for three years.
He said: “Those three
years have encompassed
the most extraordinary circumstances
for a financial
regulator. I am very proud
of the manner in which the
FSA rose to the challenge.”
the two managers took
over on 31 January 2006
(compared with a sector
average of -25.47%) and
a return of 17.12% over
the past 12 months (sector
average -4.35%). The new
Dublin-listed fund will offer
three share classes hedging
yen exposure to the euro,
dollar or sterling. Charges
will mirror those of the UKdomiciled
fund.
www.glg.co.uk
FSA approves VAM
Lux funds for the UK
VAM Funds has gained FSA
approval, under Ucits III, to
market its Luxembourgdomiciled
range of funds in
the UK. The eight approved
funds include US Micro Cap
Growth, US Small Cap
Growth, US Mid Cap,
Emerging Markets Growth,
International Real Estate
and Asia Fixed Income.
www.van-funds.com
8 PORTFOLIO ADVISER [www.portfolio-adviser.com] MARCH 2010
Feb ’09
Aug
MSCI World
Feb ’10
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