View more on these topics

IMS exits Artemis fund amid quant concerns

Multi-manager IMS has replaced Artemis European with the T.Rowe Price European ex UK equity fund within its global select fund.

The company says the change was prompted by a shift in the market from value to growth, rather than the performance of the Artemis fund.

IMS had been holding the quant-based Artemis fund alongside another quant-based fund, JP Morgan European dynamic. Both funds select stocks using computer-based tools, a combination which worked well when value stocks were outperforming.

But indications that growth stocks were starting to outperform led IMS to the conclusion that two quant-based funds forming the bulk of the portfolio’s European exposure was too much. It decided to reduce its exposure to quant-based funds in favour of the T. Rowe Price fund.

The T.Rowe Price fund invests in a concentrated portfolio of 30 to 50 European stocks with no benchmark constraints. This complements the JP Morgan fund as portfolio construction is based on the analysis of fundamentals such as a company’s sales, earnings and dividend prospects, rather than a computer model.

IMS chief investment officer Giles Gilbertson says: “We have had value outperformance for a long period of time but we believe there is an inflection point in the market, with growth starting to outperform.

“Leveraged buyouts are drying up, cyclical companies are not in demand as much and there is a slowdown in the developed world. On that basis, we wanted to have more transparency from fundamentals such as earnings’ growth rather than quants.”

Recommended

Planning for gold

Julie Lord, managing director of Cavendish Financial Management, says both the certified and chartered financial planner qualifications are valuable and hopes to see an end to bickering over which is best so the profession can develop and move ahead

Gym will fit it for Pru cover

PruProtect this week set up its first product, offering wholeof-life cover and critical-illness cover with the option of severity-based payments.Policyholders can reduce their premiums by adopting a more healthy lifestyle through a tie-up with PruProtect’s Vitality programme used by sister company PruHealth.By going to the gym regularly or consulting a doctor, clients can reduce their […]

IMA bids to figure out fund formula for yield standard

The Investment Management Association is looking at devising a standardised way of calculating yield for the UK equity income sector.All funds are required to disclose yields but some firms have been concentrating on coming top of the total return rather than yield tables.Equity income funds are meant to deliver a yield of at least 110 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com