View more on these topics

Lincolm Fund emerges through Delaware

Lincoln Financial Group has created an emerging markets unit trust to be managed by Delaware International Advisers which manages Lincoln&#39s Far East trust and emerging markets life and pension funds.

The unit trust will be run along the same lines as the life and pension funds and will invest in a range of industrial sectors in countries such as South Africa, Brazil, China and India.

Although Delaware employs a team approach to fund management, Bob Akester will take ultimate responsibility. Akester has more than 30 years&#39 investment experience and joined Delaware in 1996. He was previously director of Hill Samual Investment Management.

Delaware applies a value approach to stock selection and focuses on emerging countries with string economies. Dividends are used as a guide to measure the profitability of companies, which will often have competitive advantages such as access to raw materials or climates not available in developed countries.

Information on companies within emerging markets is thin on the ground and this may lead to companies trading at a price that does not reflect their growth potential. Delaware will rely on company visits to help identify those companies. The eight-strong investment team will spend two months a year visiting companies and will also arrange meetings in London with the management of these companies.

Although Lincoln&#39s Delaware-managed Far East trust demonstrates a good track record in a volatile region, the political instability in emerging markets which leads to stockmarket volatility can surprise investors. Consequently, this type of fund is high risk and is likely to be used as a small part of a wide portfolio.

According to Standard & Poor&#39s the Lincoln Far East trust is ranked third out of 55 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to June 14, 2004.

Recommended

Nationwide offers new 2 year bond at 6 per cent

Nationwide Building Society is launching a new two-year fixed rate bond, paying 6.00 per cent gross per annum to reward its long-term members. The members&#39 Summer Bond offers one of the most competitive savings rate for a lump sum of up to £5,000. A member who invests £5,000 in the Summer Bond will have received […]

FSA looking to speed up two-year enforcement process

The FSA is considering how it can speed up its enforcement procedure against firms. The procedure takes 18 months to two years and the FSA wants to speed this up to around a year. The enforcement process involves at least three possible stages of appeal, with considerable time given to the firm to make responses […]

Fidelity tops choice on fund firms

Fidelity leads the fund firms for multi-ties, with 58 per cent of IFAs including the company among their top four choices. In a bid to consolidate its position among IFAs, Fid-elity is offering cash incentive for advisers re-registering existing holdings on its platform FundsNetwork. Jupiter is placed second in the poll with 42 per cent […]

Inter-Alliance and Millfield in merger talks

The boards of Inter-Alliance and Millfield Group have announced they are in discussions which “may or may not” lead to a merger.The two companies told the Stock Exchange this morning that discussions were making good progress and that shareholders would be advised of developments at the appropriate time.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment