ANALYSIS ROUND-UP
web: news analysis
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Schroder IMax product to be managed by Sennitt and See
“
If inflation takes
hold, we will need
to grow earnings
by more than
this rising rate of
inflation, something
that fixed income
cannot provide
”
Gavin Haynes, investment
director, Whitechurch Securities
Principal hires Sacks
for EM debt team
Principal Global Investors
has hired former Barings
and Schroders emerging
market specialist Jeffrey
Sacks as emerging market
debt portfolio manager.
Principal’s fixed income
group has $121.9bn
(£80.34bn) assets under
management globally,
with £1.72bn being
managed out of Europe,
as at 31 Dec, 2009. Prior
to joining Principal, Sacks
held a similar role as a
director at Barclays
Wealth. He has also
worked in a variety of
senior emerging markets
roles with Merrill Lynch
Investment Managers,
Baring Asset Management
and Schroder Investment
Management.
Schroder Investment
Management is to launch
an Asian version of its
hugely successful UK
equity-focused Income
Maximiser (IMax) Fund.
The new fund will be
co-managed by Richard
Sennitt and Thomas See
who will target an initial
gross yield of 7% by
actively managing higheryield
stocks with a covered
call option overlay.
PA analysis
The Schroder Income Maximiser
Fund is the template
that many other fund management
houses are using
for the latest iteration of
enhanced income product
offerings.
The structure of the
soon-to-be launched Argonaut
European Enhanced
Income Fund, managed by
Olly Russ, is testament to
this, taking as it does his
Fund manager moves
Lake joins Aviva credit
team from F&C
Aviva Investors has
announced that Andrew
Lake is joining its credit
team to manage the Aviva
Investors High Yield Bond
Fund. He joins from F&C
where he co-managed
global and European high
yield portfolios. He has
a total of 12 years’
experience specifically
investing in the high yield
market. Lake takes over
running the fund from
interim manager Chris
Higham, with whom he
will work on the firm’s
Oeic fund range.
HSBC’s Rebak
to replace Pothier
HSBC Open funds
manager Nicholas Pothier
existing European Income
Fund and adding a covered
call strategy (see PA
April, page 8).
Schroders has proven
expertise in providing an
enhanced income for clients
by using a covered
call strategy, under the
auspices of Thomas See.
He targets an income of
7% pa which he has now
achieved for a fourth consecutive
year through
Income Maximiser. That is
in itself an attractive proposition
given ten-year gilt
yields are around 4% and
base rates for cash deposits
still floundering at 0.5%.
Income is one of those
permanent themes for
investors, something that
will never go away no
matter the macro or market
environment. And given
today’s current low interest
8
is to leave the company
and return to his native
South Africa. Jon Rebak,
who has been with the
firm since 1992, will
replace Pothier as
manager of the £342m
Open Global Distribution
and £132.81m Global
Return Funds from 1 May.
Pothier will help to ease
the transition by
continuing to assist
HSBC Global Open
funds in a consultation
and advisory role. Rebak
has managed the £161m
HSBC Global Growth
Fund since its launch in
February 2003 and over
this period to 19 March
the fund has posted a net
total return of 91.5%,
compared to the IMA
Balanced Managed Sector
average of 77.9%,
according to Lipper.
rate/low inflation macro
environment, investors are
being forced to look outside
the more traditional
areas for their still muchneeded
income.
As Gavin Haynes, investment
director at Whitechurch
Securities, explains:
“If inflation takes hold, we
will need to grow earnings
by more than this rising
rate of inflation, something
that fixed income cannot
provide.”
Given continued investor
demand and in-house
expertise of running an
enhanced equity income
strategy, and the continued
shift of almost every investment
strategy eastwards, a
Schroder Asian Income
Maximiser Fund is a logical
progression, for Schroders
and for investors.
Gary Corcoran
For daily analysis visit
www.portfolio-adviser.com
Octopus hires for
European fund launch
Octopus Investments has
appointed ex-Fidelity and
New Star manager Thierry
Serero to spearhead the
launch of a European
absolute return fund
planned for late spring.
The firm said he has been
working with its CIO,
Lothar Mentel, for the past
few months on the
structure of the new fund.
Serero, who has over 20
years experience in fund
management in both the
hedge fund and retail
world, will aim to achieve
a positive absolute return
in all market conditions
through taking both long
and short positions in
European equities, equity
related securities and
derivatives.
Strategic bonds
hit sales summit
February proved to
be a mixed month for
sterling fixed income
fund sales, with strategic
bonds at the top and
corporate bonds lagging
in the IMA’s latest bestseller
charts. £ Strategic
Bond achieved net retail
sales of £278m, the first
time it has been the top
sector since April 2008.
But 2009’s most popular
sector, £ Corporate
bond, prolonged its poor
showing in 2010 with
net retail outflows of
£140m.
Offshore funds
on IMA system
The IMA now includes
offshore funds in its
sector classification
system. A total of 91
funds are included in
17 different IMA sectors.
This is up from the 71
funds announced on
23 March, as since then
the IMA has received
outstanding data from
more funds that now
meet the requirements.
In total, the IMA received
admission requests from
180 funds, and there are
now 69 pending.
Hilltop Gibraltar
FOHF for Hills
Hilltop Fund Mgt has
launched a Gibraltar
fund of hedge funds
strategy, for manager
Rory Hills. The Hilltop All
Weather Fund invests in
about 15 uncorrelated
hedge funds of differing
investment styles and
aims to provide investors
with a consistent
absolute return in all
market conditions.
MAY 2010 [www.portfolio-adviser.com] PORTFOLIO ADVISER
7
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