In a deal announced on August 12th, BNY Mellon has purchased Insight Investment Management from Lloyds Banking group for £235 million. Under the deal Insight will continue to operate on a standalone basis within BNY Mellon’s multi-boutique structure, bringing it alongside firms such as Newton Investment Management, Walter Scott & Partners, Blackfriars Asset Management and Standish Asset management. Post the acquisition which is expected to be finalised in the final quarter of 2009, assets under management at BNY Mellon will be in excess of $1 trillion, confirming it as one of the largest asset managers globally.
Cazenove launching
Absolute UK Dynamic fund
Cazenove is planning to launch an Absolute UK Dynamic fund, on the first absolute return funds with bias on small and mid-cap stocks on the 7th September. The fund is targeting an annual return of 10% annual, using a balance of long and short positions, though we take such targeting with a healthy pinch of salt given how unpredictable markets are. It will be broadly market neutral and expected to have a lower beta and volatility compared to the market. Managed by Neil Pegrum and Paul Marriage, the fund will mirror the Cazenove UK Dynamic Absolute Return Fund, a Cayman domiciled hedge fund, the pair have run for the last three years. Targeting retail investors, the minimum investment is £1,000 with an AMC of 1.5% plus a performance fee of 20% with a high watermark.
Absolute return funds becoming flavour of the day
A number of other fund managers have announced intentions to launch absolute return funds, primarily aiming to target specific returns (for example cash + 5%) with underlying volatility lower than equities. Among those planning to release absolute return fund of funds include, Blacksquare Capital, Collins Stewart and Allianz RCM. While absolute return funds can play a role in a diversified portfolio and some managers’ have displayed a talent in this area, the experience for a large proportion of investors historically have been poor. The question lingers how much have these decisions been motivated by playing on investors’ fears after the tumultuous market events over the last couple of years, and how well these funds will do in the long term.
A range of Lazard funds rated
Morningstar’s Qualitative research team this week released reports on a number of Lazard funds namely, Lazard Emerging Markets, Lazard North America, Lazard European Alpha and Lazard European Equity. All three funds received our second highest rating of Superior. Our analysts were impressed by a number of traits. All three are managed by experienced investors in who we have confidence in their ability to act in the best interest of investors. The firm boasts a strong research base, outlined by the fact that analysts can stay their whole career there and the role isn’t merely seen as a stepping stone to portfolio management.
Morningstar qualitative ratings and reports issued this week; .
Morningstar issued new qualitative ratings and reports on a number of funds available to UK investors this week, Fidelity European Opportunities, Fidelity Funds European Smaller Companies, Schroder Strategic Bond, Standard Life AAA Income, Lazard Emerging Markets, Lazard North America, Lazard European Equity and Lazard European Alpha. Click here to see the full list.
