Lazard Soft-Closes Emerging Markets Fund; Launches New offering
Lazard Asset management signals the soft-closure of Lazard Emerging Markets Equity over the next 60-90 days. The Dublin domiciled offering has assets of USD 290 million and the move is designed to preserve investor interest and ensure asset bloat doesn’t become a factor. We believe the fund managed by James Donald is one of the better options in the emerging markets equity space, reflected by our Qualitative rating of Superior. The fund has also been one of the better performers sitting in the top quartile over one and three years as at 31 May 2010. We see the move to soft-close as a positive as it shows a clear alignment between the asset manager and its client base. Lazard also announced that later this year it will be launching a growth-oriented emerging markets fund. The strategy has been available in the US since 2008 and is co-managed by Kevin O’Hare and Peter Gillespie.
AXA Rosenberg Closes UK Small-Cap Alpha
AXA Rosenberg is to liquidate its UK Small-Cap Alpha fund as assets have dwindled down to a meagre £3 million. The remaining investors will be redeemed on June 25.. This is a sensible move as funds with such a small asset base lose their viability. One reason why the Gideon Smith managed fund has failed to gain investor traction may be due to its poor long-term performance – over three and five years annualised to the end of May 2010, the fund ranked in the bottom decile of its Morningstar UK Small Cap Equity category.
Majedie Poaches Odey Duo for Global Equities
Majedie Asset Management has convinced Simon Todd and Michael Nickson to run the firm’s new global equity business. The duo was co-managing the Odey Allegra Global Fund for only nine months having been poached last October from MFS Investment Management. At this stage Odey is undecided on the future of Allegra fund and will decide shortly. Majedie expects to launch the new strategy in the second half of 2010.
AXA Adds to Fixed Income Team
AXA Investment managers announced this week the recruitment of former New Star fund manager Nick Hayes to run the AXA Strategic Bond Fund. He will take over from Julie Lamirel, who will continue to run AXA Sterling Bond fund and work together with the firm’s Global Head of Fixed Income Theo Zemek in managing AXA Sterling Corporate Bond fund. Hayes was at New Star from 2002 and between 2003-2007 worked along Zemek who headed New Star’s fixed income desk. Hayes left New Star in late 2008 after it was acquired by Henderson Global Investors.
Martin Currie Adds Co-Manager to Japan Alpha
As of June 1 Claire Marwick becomes a co-manager on the fund, joining Keith Donaldson and John-Paul Temperley. Marwick has worked ion the Japan Equity team since August 2007, having previously been at Alliance Trust based in Hong Kong, where she spent three years as a Japanese equities analyst. Additionally martin Currie announced that assets will be capped at £175, recognising the capacity constraint in the concentrated offering. The fund is a top decile performer over both one three years annualised up to the end of May 2010. We have met the team recently and will be releasing a Qualitative assessment in the near future.
Martin Currie Acquires Long-Short Equity Business
It was a busy week for the Edinburgh-based manager as it also announced the purchased the equity business of Sofaer Capital European. As a result Martin Currie will take on responsibility for the £97m Sofaer Capital European Hedge fund, along with its management duo of Michael Brown and Steve Frost. The duo will start on 1 July and will be followed later in the year by Investment Analyst Charlotte Dagg. The deal strengthens the Edinburgh-based firm’s capabilities in the long/short equity space
