Asset Classes
39-40
Contrarian: Emerging
markets
Investors seem to be ignoring the
huge warning signs that are showing
a consensual opinion on emerging
markets, China and the rest of BRIC
in particular. Gary Corcoran questions
whether this is healthy especially
given many of its proponents are
also those who stood and watched
gains made up to 2007 wiped out in
a single year
41-42
Equities: Asia ex Chindia
There is no single investment
strategy that suits every investor yet
many are still content to pin their
entire future hopes on the forecast
rise in global growth of China and
India. While positive about Asia,
Helen Burggraf looks outside these
two countries and asks what other
opportunities there are in the region,
where they are and how investors
can take advantage of them
Back to the future
Past performance is no guide to future returns, so
don't be taken in by nostalgia for bygone bull runs
Happy New Year to
you all and welcome to
our first edition of 2010,
which I hope proves to
be a fruitful 12 months for
investors.
I will try to avoid clichés
about hangovers, resolutions,
fresh starts and
diets, but a decade into
the new millennium you
may have thought we’d all
be living like The Jetsons
by now, served hand and
foot by friendly robots in a
space age utopia.
As it stands retro is all
the rage, and I’m not just
talking about the revival
in dodgy '80s Day-Glo
outfits. Read down a list of
the movers and the shakers
in the investment management
world (if only
there was such a thing!)
and you could be forgiven
for thinking we were back
43-44
Fixed income: Forward
rates
The rates team at Ignis Asset
Management sees duration as
outdated – not surprising given it
has been relied on since the 1920s
– and proposes using forward rates
instead as a way of measuring
the risk of a bond portfolio and
generating greater alpha. Head of
rates, Russ Oxley, argues that it
gives the bond fund manager more
time to analyse the macroeconomic
data and research
in the '90s.
After a decade that
equates to a flat return
from developed world
equities, it is the big
names of the past that are
doing their bit to reassure
investors that active fund
management talent really
is worth sticking with.
In 2009 we saw the
return of both William
Littlewood, who has a new
role at Artemis, and more
recently Anthony Bolton,
who is seemingly willing
to risk his reputation on
the rise of China.
Premier Asset Management’s
acquisition of
former Credit Suisse
funds saw PSigma’s Bill
Mott reunited with the
two equity income funds
where he made his name.
Add to that list two former
New Star chief invest-
Statistics
45-50
PA Quality Funds
This is a selection of some of the
top-tier funds available to high-end
UK-based investors. It includes on-
and offshore funds, passed through
a qualitative filter and a three-year
performance and volatility quantitative
filter. The funds that make it through
this process, which was designed in
conjunction with Morningstar, are put
into categories used by advisers to
create their fund shortlists
FEEDBACK
ment officers, Alan Miller
and Stephen Whittaker,
as well as former Insight
pair Patrick Armstrong
and Ana Cukic Armstrong,
who have all set up boutiques
during the past
12 months.
All will come under
particularly close scrutiny
in the coming months, and
questions will be raised
if they do not perform,
regardless of reputation.
Of course, within any
economic and market
recovery there emerges a
new breed of investment
icons too. It promises to
be a very interesting year
for our industry, and we
are looking forward to
following it every step of
the way.
Gary Shepherd
Deputy editor
51
PA Quality Funds
of Hedge Funds
This is a list of the top 30 funds
of hedge funds, split by three different
quantitative processes. The three
categories are those with an equity net
long exposure, multi-strategy funds of
hedge funds and global macro funds.
They show their relative correlation
to equities and bonds as well as their
performance over the past 12 months
showing how they have fared in
a negative market environment
We are always looking to improve the magazine so if
you have any comments on what you have read, any
suggestions for new topics to be covered, or anything
you would like our investment panel to investigate for
you, please e-mail gary.corcoran@lastwordmedia.com
Please include your name, job title and company name.
We really appreciate any feedback
Portfolio Adviser
Investment Panel
FUND SELECTION
Matthew Butcher
divisional director,
Brewin Dolphin
Nick Sketch
senior investment
director, Rensburg
Sheppards
ASSET ALLOCATION
Mark Rushton
director,
Fortis Private
Banking
Gavin Haynes
investment
director,
Whitechurch
Securities
PORTFOLIO CONSTRUCTION
Tim Cockerill
head of research,
Ashcourt Rowan
Rick Eling
investment solutions
manager, Buckles
Investment Services
Nigel Cuming
chief investment
officer, Collins
Stewart
ECONOMICS
Peter Bickley
chief strategist, UK,
Deutsche Bank
PWM
Simon Ward
chief economist,
Henderson Global
Investors
HEDGE FUNDS
Brendan Campbell
vice president,
hedge fund
research,
Cheyne Capital
STRUCTURED PRODUCTS
Clive Moore
managing director,
Investment Design
and Distribution
JANUARY 2010 [www.portfolio-adviser.com] PORTFOLIO ADVISER
5
To view a Ceros magazine you need to have JavaScript enabled in your browser and have the flash player 8 or higher installed. To install the latest flash player, click the icon above, install the flash plugin and then click here to refresh this page.