Subject to FSA and investor approval, New Star Asset Management plan to merge the struggling UK Special Situations fund, currently managed by James Ridgewell, into Tim Steers' UK Alpha fund. The move isn't a huge surprise given the poor performance of New Star UK Special Situations fund, particularly relative to UK Alpha. The fund has posted bottom decile showing versus its Morningstar UK Mid-Cap Equity category in 2006 and 2007, including a 15.4% loss last year. In contrast, UK Alpha gained 3% in 2007.
Steer will review his inherited portfolio of stocks on a case by case basis, looking to blend the majority into his existing portfolio. Ridgewell will continue to work on the UK Equities desk.
Fidelity Launch Emerging Europe, Middle East and Africa Region Fund
Fidelity International Limited have launched an Emerging Europe, Middle East and Africa RegionEmerging Europe, Middle East and Africa Region (EMEA )Fund. Fidelity launched an offshore version of the fund in June last year, and UK investors can now invest in the EMEA region through Fidelity’s OEIC version. It will be run by Nick Price, a 9 year veteran at Fidelity, who has run the offshore version since its launch in June last year. The fund will primarily invest in the securities of companies which have their head office or which have a predominant part of their activity in Central, Eastern and Southern Europe (including Russia), Middle East and Africa. It will typically hold between 50 and 70 stocks.
HSBC Launches Russian Equity Fund
HSBC Investments have launched a Russian Equity fund to be managed by Douglas Helfer. Helfer has a 10-year track record in managing Russian equities, and will construct the portfolio through bottom up stock picking while taking an unconstrained approach to sector allocation. The new HSBC GIF Russia Equity fund will hold a concentrated portfolio of 20-30 stocks which could include locally-listed Russian equities, American Depository Receipts and Global Depository Receipts . The majority of assets are invested in large liquid blue chip stocks though up to a third of the portfolio could be invested in mid cap companies. The fund launched on 17 December 2007 and is now in the process of being registered for sale throughout the world.
New Star Appoints Asia Portfolio Manager
New Star Investment Funds have appointed Robert Jeffree as the new manager of their Asia Portfolio fund of funds. Jeffree will take over management from Mark Harris with immediate effect and has been part of New Star’s fund of funds team since August 2006. New Star says the move is intended to allow Harris to focus more closely on the management of the New Star Tactical, Active, Balanced, Managed, and American Portfolios.
Barclays Launch Capital Preservation Products
Barclays have launched a new range of structured products. The range includes the three-or-five-year Protected FTSE Plan, which offers 1.5 times the rise in the FTSE 100 up to a maximum return of 24 per cent (three-year option) or twice the rise in the index up to a maximum of 48 per cent (five-year option). That means the products are capped at annualised returns of 7.2 per cent and 7.9 per cent, respectively. That's significant potential upside to give up, but Barclays says both plans offer 100% capital protection at maturity. Barclays is also launching a new dual option version of its Super Tracker Plan. The options allow investors to earn up to 100% or 75% over six years and five years, respectively, amounting to potential annualised returns of 11.6 per cent and 11.2 per cent. Oddly, the funds return to investors their full capital unless their respective index falls by more than 50 per cent and fails to recover to the starting point by maturity, in which case capital is lost on a 1:1 basis in line with index performance. In other words, in the case of a huge loss, you aren't protected at all.
