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Standard Life tops Q2 sales, Schroders hires and new property launch: Your fund news digest

09 August 2015

This week has seen 25 asset management firms sign up to a code of principles putting the client first, although lots more has been happening in the funds industry.

The Pridham Report was published this week showing that Standard Life Investments posted the highest net retail sales over the second quarter, while the Investment Association revealed how many companies have signed up to its Statement of Principles.

There’s also been the usual round of fund launches, investment professional hires and deals by the big players in the industry. To help keep everything in perspective, we’ve rounded up some of the biggest funds stories of the week below.

 

Standard Life, Woodford and Old Mutual top Q2 sales table

Standard Life Investments topped the fund sales chart for the second quarter of 2015, according to a closely watched report, seeing off competition from Woodford Investment Management and Old Mutual Global Investors.

The Pridham Report says the asset management house benefitted from net retail sales of £961.4m in the three months to the end of June, with its Standard Life Investments Global Absolute Return Strategies fund and Bambos Hambi’s (pictured) MyFolio multi-manager range driving inflows.

Woodford Investment Management took in an estimated £750m as its CF Woodford Equity Income fund remained the most popular member of the IA UK Equity Income sector. Old Mutual Global Investors was buoyed by flows into Richard Buxton’s fund and the Cirilium multi-asset boutique it recently acquired, taking £401m in net retail sales.

7IM, Legal & General, Hargreaves Lansdown, Henderson, Fidelity, Kames and Artemis complete the top 10 list of net retail sales in the second quarter.

Pridham report editor Helen Pridham said: “Targeted absolute return and multi-asset funds are becoming increasingly popular and those groups which get it right are being rewarded. Pensions freedom is likely to be underpinning this trend.”

 

Aberdeen buys US hedge fund firm

Aberdeen Asset Management has announced a deal to buy hedge fund company Arden Asset Management as it seeks to strengthen its alternatives footprint in the US.

The firm has an ongoing strategy to grow its global alternatives platform across hedge funds, private equity, and property, along with direct investments in infrastructure projects.

Arden, which runs hedge fund portfolios across the liquidity spectrum, manages assets on behalf of a range of clients, including corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors.

Aberdeen says the acquisition is complementary to its existing hedge fund business and will mean that the combined team has over 30 investment professionals with around $11bn of assets under management.

Martin Gilbert, chief executive of Aberdeen, said: “The acquisition of Arden emphasises further Aberdeen’s commitment to diversifying its overall business and to growing its alternatives platform.”

“The deal significantly strengthens our hedge fund solutions capability and expands our global client base. Arden’s liquid alternatives platform in the US is particularly attractive as it provides investors with exposure to a portfolio of hedge fund-like strategies but importantly offers daily liquidity.”

The deal is subject to regulatory approval from the Financial Conduct Authority and notification to the Irish Central Bank.


 

 

Fund groups sign up to Investment Association’s Statement of Principles

Some 25 fund groups with combined assets under management of £1.8trn have signed up to the Investment Association’s Statement of Principles, which sets out their responsibilities to their clients.

The trade body’s board approved the statement in April this year, laying out principles such as always putting the client first, taking care of clients’ money as diligently as they would their own, making all costs and charges transparent and understandable, and maintaining regular, timely and clear lines of communication with clients.

Daniel Godfrey, chief executive of the Investment Association, said: “Those who have committed to the principles so far manage from under £50m to more than £750bn from the UK. Some are foreign-owned, others UK. Some are insurance company or bank-owned, some are independent. But what brings them all together is the depth of their commitment to their customers.”

Signatories to the principles include BlackRock, Vanguard, Old Mutual Global Investors, Newton, Baillie Gifford and Majedie.

 

Schroders continues to expand multi-asset team

Schroders has made two hires within its Multi-asset Investments and Portfolio Solutions (MAPS) business, which now manages more than £75bn on behalf of clients across the globe.

Chris Hsia joins the team as a product manager, having most recently been chief investment officer for Bank Morgan Stanley AG and head of investment products & solutions for international wealth management within Morgan Stanley &Co. In his new role, he will help drive the product-led communications of a selection of MAPS strategies.

Mei Huang, meanwhile, has joined as quantitative analyst, having being in HSBC Asset Management’s global equities research division. Huang will be responsible for researching and constructing advanced beta equity strategies.

Nico Marais, head of the Multi-asset Investments and Portfolio Solutions team, said: “Strengthening our ability to interact with clients around investment outcomes and building our advanced beta capabilities are key initiatives.  We are therefore pleased to have Chris and Mei join the MAPS team in their respective roles.”

 

TIME Investments unveils retail commercial property fund

A new fund offering retail investors exposure to the “stable, long-term” income from investments in commercial freeholds has been launched by TIME Investments.


 

The TIME:Commercial Freehold fund, which will be managed by Nigel Ashfield and Patrick Grant, will aim for an annual distribution of 4 per cent with the potential for capital growth. It will have a portfolio roughly split 50/50 between UK commercial freeholds with ground rents and commercial freeholds with long leases.

TIME:Commercial Freehold will be structured as a Property Authorised Investment Fund, which has tax benefits similar to Real Estate Investment Trusts. Long income commercial property funds were only available via funds aimed at institutional investors such as insurance companies and pension funds.

Ashfield said: “Many retail investors seek predictable income returns, continuous liquidity, inflation protection and prospects for capital growth.”

“TIME:Commercial Freehold has been developed to meet each of these requirements by offering retail investors access to a property sector that has until now been restricted exclusively to institutions.  The target distribution of 4 per cent per annum is significantly in excess of the income available from other long income investments such as gilts and the targeted property has shown a lower sensitivity to changing interest rates.”  

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