Absolute return funds featured among the top fund industry news this week, both on the launch and closure side, while several personnel moves and rebrands attracted headlines elsewhere.
Fund Launches, Changes and Closures
Barclays Capital Launches Volatility Fund
Barclays Capital has launched the Barclays Euro Mid Term Volatility fund, a Luxembourg-based UCITS III offering incorporating a futures-based strategy that is based on VStoxx, the volatility index of the Euro Stoxx 50. The fund is aimed at investors who want to take a defensive position against falling markets and charges an annual portfolio replication cost of 0.89%, a management fee of 0.2% of NAV and a fixed annual fee of 0.2%.
Dalton Strategic Partnership Closes European Absolute Return Fund
Having soft-closed the Melchior Selected Trust European Absolute Return fund in June after assets under management reached $500 million, Dalton Strategic Partnership has now hard-closed the fund with an additional $100 million under management. The fund is managed by Leonard Charlton.
GAM Adds to Star Fund Range
GAM has expanded its Star range with the addition of the Global Quality fund, a Dublin-domiciled, dollar-denominated offering, managed by Manning & Napier Advisors. The fund has a long-only portfolio that leans towards large caps in developed markets. It carries an annual management fee of 1.45% and a minimum initial investment of $10,000.
Henderson Rebrands Gartmore Funds, Adjusts Fees
Henderson Global Investors has rebranded most of the funds that it inherited as part of its takeover of Gartmore Group in January 2011. It has also increased administration charges on 30 Gartmore funds by up to 10 basis points, while reducing charges on 25 by up to six bps in order to bring them in line with Henderson’s other products. The move comes after Standard Life Investments announced last week that it is increasing fees on several equity and fixed income funds.
Thames River Closes Offshore Global Boutiques Fund
Thames River has closed with immediate effect the offshore version of its Global Boutiques fund as the $3.5 million (£2.2 million) assets under management made the running of the fund unprofitable. The onshore version of the fund, which has a Morningstar qualitative rating of Superior, will remain open under the ongoing management of Robert Burdett and Gary Potter. Shareholders of the offshore fund have received notice of the firm’s intention to redeem all shares on August 10. The fund is now closed to new investment but open to redemptions until that time.
Tideway to Offer Absolute Return Fund with No Performance Fee
Tideway Investment Partners has opened the UCITS IV Global Navigator All Weather fund to new subscriptions ahead of the fund’s maiden trade next month. The fund is to be managed by Pete Doherty, who is said to have £1 million of his own money in the fund, which is launching with around £8 million in seed capital. The fund, which falls under the IMA Absolute Return sector, charges an annual management fee of 1.95%, has a minimum initial investment of £2,000, and is available in sterling and euro-denominated classes. It targets an annual return net of fees of 8%-10% with a portfolio biased towards fixed interest and developed markets, plus exposure to some currencies and equities.
Manager Moves
Henderson Expands Global Equity Team
Henderson Global Investors has appointed Viane Frost as investment director, replacing Simon Melluish, who is leaving the firm after 13 years in order to pursue a role in private equity. Antony Gifford has been appointed as senior investment manager; he continues his role as co-manager of Henderson Horizon American Equity with Nicholas Cowley but also takes on additional responsibilities on the global equity team.
Ignis Brings in New Manager for UK Focus
Ignis Asset Management has hired Mark Holden from Vestra Wealth to take over the management of its Ignis UK Focus fund from Ralph Brook-Fox in October. Brook-Fox will take on the running of the Ignis Balanced Growth fund as Mark Lovett, chief investment officer for equities, steps down from his role. Brook-Fox will manage both portfolios in the interim. Lovett had been managing the Balanced Growth portfolio following the departure of former-manager Gary McAleese. Ignis has also appointed Bilal Raja as a company analyst on the equity team.
MAM’s Wright Takes on Deputy Manager Role
MAM Funds has appointed Mark Wright as deputy manager of the CF Midas Balanced Growth fund, under the lead management of Simon Callow, who took over from Alan Borrows in 2010. Wright has been supporting Midas funds from a research perspective for five years. Borrows continues to work with Richard Parfect on the CF Midas Balanced Income Fund.
Rowan Dartington Appoints Ashcourt Rowan Duo
Guy Stephens and Tim Cockerill, investment director and head of research at Ashcourt Rowan Asset Management, respectively, are to join Rowan Dartington’s Bristol office in early September. Stephens will take on the new position of chief investment office, while Cockerill will be appointed head of collectives research.
Industry News
Aegon Asset Management UK Rebrands
The fund arm of Dutch insurer Aegon is to change its name from Aegon Asset Management UK to Kames Capital from the beginning of September. The rebrand will be launched across all investor, online and corporate materials in an attempt to differentiate and grow the UK third-party fund business. Kames Capital, under the leadership of Andrew Fleming, will continue to manage insured funds on behalf of Aegon UK.
