This week the FE Trustnet team was very happy to win two journalism awards from the Investment Association, but we’re very aware that much more than this has happened in the asset management world over the last seven days.
There’s been a few fund launches this week as well as changes to how existing portfolios are managed. We highlight some of the more recent stories below.
AXA Framlington Managed Balanced manager shuffle
AXA Investment Managers has promoted Jamie Hooper to co-lead manager of the £953m AXA Framlington Managed Balanced fund alongside Richard Peirson.
Hooper, who was previously deputy manager on the portfolio, will take charge of the UK equity portfolio of the multi-asset fund while Nick Hayes will run the fixed income element. AXA’s global equities team will continue to run about 40 per cent of the portfolio.
The changes mean that Peirson will hand over some of his responsibilities on the fund, but he will remain in charge of the overall asset allocation.
Performance of fund vs sector under Peirson
Source: FE Analytics
Peirson said: “Jamie has enjoyed significant success running the AXA Framlington UK Growth fund since 2006.”
“He has also been a member of the Managed Balanced team for the past three years and in total we have worked together on the UK desk for nine years now. This is the natural next step for the fund as Jamie will eventually take the reins as lead manager.”
“Regarding the fixed income portion, I recognise that it makes sense to have a specialist managing this, in the same way that it does with overseas equities.”
Earlier this week, FE Trustnet asked the experts what they thought about the changes to the fund’s management.
Columbia Threadneedle expands sustainable range with UK launch
Columbia Threadneedle Investments has launched a UK equity fund that aims for both capital growth and income while only holding stocks that meet strict ethical criteria.
The Threadneedle Ethical UK Equity fund, which opened its doors on 30 October, is managed by UK equity fund manager Matt Evans. Evans also runs Threadneedle UK Smaller Companies and Threadneedle UK Mid 250 with James Thorne.
Potential investments will be screened to avoid any businesses that are involved with areas such as alcohol, tobacco or weapons while the manager will also target firms that have a strong approach to environmental, social and corporate governance factors.
Evans said: “It is our belief that companies that operate in an ethical way are more likely to generate sustainable returns over time. There is also a huge investment opportunity in those companies who can deliver solutions to the world’s sustainability challenges.”
The new product follows the launch of the Threadneedle UK Social Bond fund in January 2014, which the group claims was the first vehicle of its kind to bring social investment to mainstream UK investors.
Old Mutual Global Investors overhauls Chinese equity fund
Old Mutual Global Investors plans to make a number of changes to its Old Mutual Greater China Equity fund by adapting its investment remit and giving it a new name.
The $66.5m fund will be renamed as Old Mutual China Equity and will have greater flexibility to focus more on equities related to mainland China, subject to regulatory approval. The requirement for the portfolio to have a minimum exposure to Taiwan will also be removed.
Fund manager Diamond Lee will continue to be unconstrained by the index in order to maximise potential alpha generation. However, the fund’s benchmark will be changed from the MSCI Golden Dragon to the MSCI Zhong Hua 10/40 index to reflect the amended mandate.
Lee said: “Following this modification to the fund, I will have more flexibility to allocate investments across China, Hong Kong and Taiwan. I hope to add more value for clients by having greater freedom to focus on China, whose importance is only likely to rise in the long term.”
“It is well known that the pace of Chinese growth is slowing down gradually, however we firmly believe this transition will offer a multitude of opportunities, as the economy transitions from investment to consumption led, and the growth engine switches from manufacturing to services. The fund will continue to be managed in a focused, high conviction style.”
JPM launches US long/short fund
JP Morgan Asset Management has added an alternative US equity strategy to its Sicav range, which will aim to achieve lower volatility and flexible market exposure.
The JP Morgan US Opportunistic Long-Short Equity fund will take “a fundamental, bottom-up approach to focus on high conviction stock selection”, while using a long/short approach to limit losses and protect assets during declining markets.
It will be headed by lead portfolio manager Rick Singh, who has 15 years of experience running money using this approach.
The fund has been launched after a strong run in US equities, which has left some investors more attentive to downside protection. The S&P 500, for example, is up 134.03 per cent over six years – more than double the gain of FTSE All Share.
Performance of index over six years
Source: FE Analytics
Massimo Greco, head of European funds at JP Morgan Asset Management, said: “US equities investors are increasingly looking for a degree of downside protection.”
“This strategy seeks to generate alpha whilst employing disciplined risk management, with greater transparency and liquidity relative to traditional hedge fund vehicles.”
