news round-up
Rescue package fails to stave off recession
as leading economies post negative growth
The combined rescue
package announced by the
central banks a matter of
weeks ago has not come in
time to put a halt to a
global recession.
Using the technical definition
of two consecutive
quarters of negative economic
growth, Japan has
followed Italy and Germany
and the combined economies
of the 15-nation eurozone
into recession, with
both the UK and the US on
the brink of following suit.
The recent announcement
from Japan – the
world’s second-biggest
economy behind the US
– of a 0.4% contraction in
its gross domestic product
(GDP) heralded its first
recession since 2001. In Q2,
Japan’s GDP fell by 0.9%.
The eurozone has also
Manager moves
Insight reveals new
multi-asset head…
Insight Investment has
appointed Mike Pinggera
as head of its multi-asset
group. He will develop its
multi-asset proposition by
widening its distribution
channels and expanding
its presence across
geographies. As a result,
Patrick Armstrong and
Ana Cukic Armstrong have
ceased to be involved
with the management of
the Diversified product
range. Pinggera takes over
in Jan 2009, joining from
Credit Suisse where he
was head of multi-asset
class solutions.
… as its adds to its
fixed income team
Insight Investment has
also announced that
Colm McDonagh has
joined its fixed income
team as head of emerging
gone into recession after its
economy shrunk by 0.2%
in Q3 2008, having fallen
by a similar amount in Q2.
Italy’s economy has fallen
by 0.5% compared with Q2,
and is down by nearly a full
percentage point on this
time last year. Germany’s
economy has fallen by 0.4%
and 0.5% in each of the
past two quarters.
Preliminary data from
the US suggests that its
economy contracted by
0.3% in the three months
to September.
The UK saw Q2 as flat
with Q3 falling for the first
time in 16 years, by 0.5%.
But inflation in the UK
at least is going in the
other direction, with the
latest figures confirming a
fall across its key measures.
The consumer price
markets. Reporting to
Adrian Grey, head of
fixed income, McDonagh
moves from Hydra
Capital Management and
was previously head of
global emerging market
debt at Aberdeen Asset
Management.
Aldridge, Doel step
in for Scott at F&C
Ted Scott will be away
from work for three
months while he recovers
from a skiing injury. In his
absence, Hilary Aldridge
and Phil Doel have been
appointed as co-managers
of the F&C UK Growth
& Income, Stewardship
Growth and Stewardship
Income funds. Aldridge
has worked on the funds
since joining the company
in 2001 and will continue
to focus on small and
mid cap stocks. Doel will
look after the large cap
stock selection and
GDP performance
december 2008 [www.portfolio-adviser.com] POrTFOLIO AdVISer
Q2 ’08 Q3 ’08
Japan -0.9% -0.4%
Germany -0.4% -0.5%
UK 0% -0.5%
Eurozone -0.2% -0.2%
France -0.3% 0.1%
index dropped to 4.5%
from a 16-year high of
5.2% in September, while
the retail prices index –
which includes housing
costs – registered its largest
fall since 2003, moving
from 5% to 4.25%.
Core inflation, which
does not include volatile
items such as energy or
food, fell by 0.3% to 1.9%.
The Bank of England
has suggested that inflation
could fall as low as 1%
in 2009.
contribute to the two
funds’ overall strategy.
Smith & Williamson
gains EU manager
Smith & Williamson
has announced the
appointment of Mark
Pignatelli, who will
become the fund manager
of the Smith & Williamson
European Growth Trust.
He has more than 20
years’ experience in
investment management,
including 13 years at
Baring Asset Management
where he was head
of European equities.
Giles loses Gartmore
trust through merger
Gartmore’s Rob Giles
is set to lose his Smaller
Companies Trust because
it is likely to be merged
with the Standard Life
Smaller Companies Trust
following reported long-
S&P’s unveils range
of Risk Control indices
Standard & Poor’s has
launched a new range of
Risk Control indices that
will allow investors to
target and control the level
of risk in an underlying
S&P index.
The methodology will
target specific volatility
levels in four indices
in S&P’s emerging market
and global thematic index
series: the S&P BRIC 40,
the S&P Latin America 40,
the S&P South East Asia
40, and the S&P Global
Infrastructure indices. It can
also be applied to any existing
S&P’s equity index.
Schroders set to merge
Buxton’s UK fund duo
Richard Buxton’s Schroders
UK Large Cap Fund is to be
merged into his UK Alpha
Plus Fund. The firm aims to
complete the merger by the
end of 2008. It was felt
there was a great deal of
large cap overlap between
the two propositions.
term concerns about the
company after a dramatic
drop in its value. The
Standard Life trust is
managed by Harry
Nimmo and has assets
under management of
more than £1bn
compared with the £40m
currently run by Giles.
The merger is subject
to shareholder approval.
Dasher leads fixed
income at Schroders
Karl Dasher has
changed roles at Schroder
Investment Management.
He joined as head
of global products in
January this year and
is now head of fixed
income. He takes over
from Bob Michele, who
moved to JPMorgan
Asset Management in
September. Dasher joined
from SEI Investments,
where he had a range
of senior roles.
NEWS ROUND-UP
Iceland pledges
refund for savers
The Icelandic government
has confirmed that it will
refund money lost by
UK savers following the
recent collapse of Icesave,
Landsbanki’s internet
banking arm. This is part
of the deal that the country
has had to strike with the
International Monetary
Fund in an attempt to
secure a loan of $2bn
(£1.3bn).
Axa IM re-jigs
funds range
Axa Investment Managers
is continuing the
rationalisation of its
|equity and fixed income
divisions. As a result, it
has recently transferred
its Cautious Managed
Fund from the UK Oeic to
the Distribution Oeic. The
fund is now known as the
Axa Defensive Distribution
Fund and is managed by
Jim Stride. Changes still
awaiting FSA approval
include its Ethical Fund
transferring to a newly
created Ethical Distribution
Fund, the UK Growth Fund
merging with the Axa
Framlington UK Growth
Fund, and its Equity
Income Fund being
transferred into another
new fund, the Axa
Framlington Blue Chip
Equity Income Fund.
Correction
In the Index Investing
article in October’s issue
of Portfolio Adviser it was
incorrectly stated that the
Bank of New York Mellon
provided the collateral
for the deal between ETF
Securities and AIG. In fact,
AIG provided the collateral
and the Bank of New York
Mellon was the collateral
management service
provider, managing
the application and the
custodial servicing for
those assets.
11
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