Funds Watch and product launches
News from SEI, American Century, Heartwood, Hermes BPK, IMA, Morningstar, Fundsmith, Bramdean AM, SYZ AM and Lipper
Managers optimistic in spite of economic uncertainty – SEI
A majority of investment managers (57%) are optimistic about their company’s prospects over the next three years, according to a poll by SEI.
The poll, conducted at SEI’s annual CFO forum for alternative investment managers in November, found that positive market prospects were the main reason behind the optimism.
The remaining participants representing 43% of those polled, were concerned about their company’s prospects, marking a substantial increase from the 12% who expressed concern in a similar poll conducted in April.
Among those with a pessimistic outlook, most of those with a pessimistic outlook cited negative market prospects, weak branding and uncompetitive performance as prominent concerns.
Some 44% of participants said that economic uncertainty was likely to be the most significant challenge facing the industry in the near future.
American Century launches US all cap growth fund
American Century Investments has launched the American Century US All Cap growth fund as part of its Luxembourg-registered UCITS III funds range. The fund seeks long-term capital growth by investing in companies with improving business fundamentals.
It will be managed by David Hollond, chief investment officer US growth equity, mid & small cap, and Michael Orndorff, portfolio manager.
The fund managers use a combination of quantitative tools and fundamental analysis to find companies of all sizes exhibiting accelerating revenue and earnings growth and positive price momentum, as they believe that over the long term, stock price movements follow growth in earnings and revenues.
The fund aims to attract institutions as well as distributors across the UK, continental Europe and the Middle East.
Heartwood announces partnerships with seven platforms
Heartwood Investment Management has established partnerships with seven platforms, including Novia, Transact and Standard Life, to bring its investment management experience and expertise to the independent financial advisers market place.
The company’s offering is based on a scalable and consistent investment process that provides multi-asset portfolios available as tax-efficient funds through platforms or models or discretionary fund management.
Head of intermediary sales, Mark Rockliffe said Heartwood’s boutique nature and its institutional process for managing money, was well received in the market, enabling the company to secure platform agreements with several partners very quickly.
Hermes BPK launches de-risking solution
Hermes BPK Partners, has launched Hermes BPK global equity hedge strategies with $550m, a customizable portfolio solution to help institutional investors de-risk their long-only equity allocations through concentrated long/short equity investments.
The solution seeks to capture two thirds of the global equity markets’ upside whilst limiting the downside to one third.
The solution has been developed following discussions with institutional clients this year. A large number of investors that have benefited from the post-crisis equity rally have progressively been forced to question the merits of holding high exposures to equities in the context of extreme market volatility while at the same time being faced with limited risk reduction opportunities through fixed income.
IMA to set European money market definitions
The Investment Management Association ( IMA) will create two money market sectors based on the European Securities and Markets Authority’s “Short term money market” and “Money market” definitions that were introduced into the FSA handbook in July. The new IMA sectors will be effective from 1 January 2012.
Companies were granted a six month transition period to bring their funds into compliance with the new rules and sector definitions.
IMA has confirmed that 10 funds will join IMA’s short term money market sector and six will join the money market sector. Several companies have not yet confirmed which sector their fund will sit in.
IMA will review the money market sectors in twelve months’ time.