Highlights from the fund industry's news and moves this week.
Fund Launches
Eden Launches Fund for HimsworthAs previously announced, Eden Financial this week launched the CF Eden UK Select Opportunities Fund under the management of Leigh Himsworth, who joined from Gartmore in July alongside fellow Gartmore colleague Dan Roberts. Following Thursday’s launch, Roberts is also to manage a new fund – the global equity income fund - at Eden that is due to be launched in the final quarter of 2011.
Fidelity Adds to Moneybuilder Range
Fidelity International is renaming its Income Plus fund, managed by Michael Clark, and adding it to the Moneybuilder range under the new moniker of Fidelity MoneyBuilder Dividend Fund. The changes will take place on September 28, after which Clark will continue to invest in companies that can consistently deliver dividend growth as he believes they will provide strong outperformance over the long term. Fidelity’s Moneybuilder range offers funds carrying 0% initial charge and low annual management charge—the Moneybuilder Dividend fund charges 1% per annum in management costs. The former Fidelity Income Plus fund carried a Superior rating from Morningstar fund analysts.
HSBC to Launch Renmimbi Bond FundHSBC Global Asset Management is to launch a renminbi bond fund targeted at European investors. The Asian High Yield Bond Fund will be available in Europe from as early as the fourth quarter of the year. It is currently available in Hong Kong, Singapore and Japan and has already attracted more than $1bn (€690m) from investors.
Legg Mason Brings US Income Fund to UK
Legg Mason is to add its Clearbridge US Income Fund to its range for UK investors. The investment company with variable capital (ICVC) will launch in October and will mirror Legg Mason’s US Equity Income Builder fund, managed by Hersh Cohen, Michael Clarfeld and Peter Vanderlee. The firm’s head of UK sales Adam Gent said UK investors stand to benefit from seeking income in US companies, which he said “have never been in better health”.
Manager Moves
Artemis Strengthens Global Select Team
Artemis Investment Management has attracted Rosanna Burcheri from FrontPoint Management to join its new Global Select team alongside Simon Edelsten and Alex Illingworth. Burcheri will join on October 3 and pick up the co-management of the Global Select Fund, which was launched in June. Burcheri was previously a partner and pan-European fund manager at FrontPoint Management, before which she held positions at the Shell pension fund, M&G and Paribas Asset Management. New colleague Simon Edelsten said “Rosanna’s investment record speaks for itself.”
Cartesian Capital Co-founder to Retire
Cartesian Capital, a joint venture partner of Ignis Asset Management, is to lose its co-founder at the end of the year when David Stevenson retires. Stevenson’s management of the Cartesian UK Opportunities Fund has already passed to Cartesian partner Jeremy Hall, who will work with Stevenson until he departs end-2011. Fellow co-founding partner Andrew Kelly will also support the fund, while Hall will continue to manage the Cartesian Enhanced Alpha Fund.
F&C Adds to Private Equity Funds Team
Stuart Hastie is to join F&C’s private equity funds team as an associate director. Hastie will focus on growth opportunities, as well as investor relations, fund raising and new product development. Head of the team Hamish Mair noted the growing investor appetite for the European mid-market and said he is excited about the potential to grow F&C’s private equity funds business, adding that Stuart’s appointment “is an important building block in achieving our growth ambitions.”
Industry News
Aegon Asset Management No More
Aegon Asset Management’s rebranding as Kames Capital took effect this week, resulting in several Aegon funds switching to the new Kames name. The name changes do not have any impact on existing Morningstar and OBSR, a Morningstar company, ratings.
Argonaut Steps Towards IndependenceArgonaut Capital Partners, which last month announced it is to dissolve its joint venture set-up with Ignis Asset Management, this week revealed it has hired its first chief operating office, Edward James. James has 15 years experience in the fund management industry, most recently as head of operations at Octopus Investments. His appointment marks the firm’s first steps towards running its own day-to-day management.
Hargreaves Lansdown Soars on Strong Results
Shares in Hargreaves Lansdown surged 15% on Thursday of this week when the financial services provider and asset manager reported strong increases in earnings and raised its dividend. Total assets under administration rose 41% to a little under £25 billion in the year ended June 30, with revenue up 31% to £208 million and underlying profit before tax up 42% to £129 million. Total net business inflows were up 6% on last year to £3.5 billion and in Ian Gorham’s accompanying statement, the CEO said: “Direct business will remain core to Hargreaves Lansdown but our fee-based advice proposition presents opportunity for growth, as the regulatory and economic environment presents acute challenges to other firms in the financial advice sector.” Hargreaves Lansdown’s total dividend was increased 59% compared to 2010 to 18.87 pence per share.
Towry Achieves Record Results
Wealth Adviser Towry this week announced record income, profitability and discretionary assets under management for the six months to 30 June 2011. Discretionary assets under management increased 29% to £4.5 billion, with a 34% improvement in EBITDA margin and a 9% increase in revenue.