As a result of the recent slowdown in the commercial property market AXA have imposed redemption delays of up to six months on their AXA Life Property and AXA Pension Property funds. Such news is becoming commonplace amongst property managers (see our previous week’s fund times). As in past instances the move aims to protect current holders after previous redemptions caused a fall in the funds cash balance meaning that property
will have to be sold – and due to its illiquid nature such sales can take time to complete.
McCarron to Step Down from Fidelity European Values
Tim McCarron is to step down as manager of the £855 million Fidelity European Values Investment Trust (FEV). He will be replaced by Sudipto Banerji, who will become co-manager of FEV in April and work alongside McCarron to ensure a smooth transition of the portfolio. Banerji has seven years experience at Fidelity and will have full responsibility for FEV’s portfolio from the end of June. McCarron will continue to run the Fidelity European Fund which has assets approaching £4.8 billion.
Insight Consolidate Equity Range, Add Analysts
Insight Investment has announced plans to consolidate its equity fund range. Insight plan to merge "certain share classes" into other existing equity funds. Specifically, classes of the Insight European Equity Fund will merge with Insight European Alpha Fund; classes of the Insight European Ethical Fund will merge with Insight Evergreen Fund; classes of the Insight Asia Pacific Equity Fund will merge with Insight Japan Equity Fund; and classes of Insight US Equity Fund will merge with Insight Global Alpha Fund. The thought is that this will save on fixed admin costs by improving economies of scale and enable Insight to pass the savings on to fund owners in the form of reduced TERs. The UK Equity fund will also be renamed UK Alpha and will adopt wider investment powers that include the use of derivatives for investment purposes. It should be noted that the changes are subject to shareholder approval. If passed, they are expected to take effect in spring 2008.
In a separate announcement, Insight said it had hired three new analysts. Craig Pennington will research equities and joined the firm in January. Quant analyst Julien Cuisinier also joined in January 2008, and equity analyst Kunle Akintoye will start in February.
AXA Framlington to Rename Managed Growth Fund
AXA Framlington has announced that its £119 million Managed Growth fund will be renamed AXA Framlington Global Opportunities Fund on 18 February. The fund's investment objective remains the same. Mark Tinker, who took over management of the fund in September 2007, will continue as lead manager.
Baring Launch Asia Strategic Absolute Return Fund
Baring Asset Management has added to their range of single strategy hedge funds with the launch of the Baring Asia Strategic fund. Subject to regulatory approval, the fund will launch on 1st March 2008 and will be available to institutional and other professional investors. The fund will invest in Asia excluding Japan and aims to use thematic, directional, arbitrage, event driven, pairs trading and other investment strategies in an attempt to produce uncorrelated returns. Baring aim to create a relatively beta neutral portfolio consisting of around 50 positions that are uncorrelated to Asian markets and not dependent on directional bets.