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Midas balanced fund turns to wealthy nations

MAM Funds is diversifying bond exposure within its Midas balanced growth fund through an institutional fund that invests in countries and companies that have the greatest ability to repay their debts.

The wealthy nations bond fund, managed by EFG Asset Management with Stratton Street Capital as sub-advisor, invests only in investment-grade bonds, as its management team believes that investing below this part of the bond market will expose investors to the highest levels of default for decades.

The net foreign asset position of a country forms a major part of its analysis prior to the team’s asset allocation decisions. The NFA position of a country is the value of the assets it owns abroad, minus the value of the domestic assets owned by foreigners. This provides an indication of how indebted that country is and MAM Funds says that looking at the world in this way inspired it to buy the Nordea Norwegian bond fund.

Fund manager Simon Callow is worried about exposure to sterling. He and co-manager Mark Wright felt that exposure to currencies of healthy regions, including the Norwegian krone and Singapore dollar, would provide diversification.

Callow and Wright have also replaced a holding in M&G’s optimal income fund with the more defensive M&G global macro bond. Callow says that, at more than £5bn, M&G optimal income is big and a tactical switch was made to a smaller fund.

Callow says: “M&G optimal income does not switch between asset classes because of its size. It is a nice fund but the macro fund is smaller and more nimble.”


JO Hambro boosts global equities team

JO Hambro Investment Management has appointed Peter Rutter to its global equities team. Rutter joins from IronBridge Capital Management where he was a partner and co-manager of the £3.1bn IronBridge global equity strategy for six years. Prior to this, Rutter worked alongside Charles Martyn-Hemphill and Will Kenney for three years on the global equities team […]

What advisers are saying- the challenges of business protection

The business insurance market is vastly under-penetrated. That much is clear. What is far less certain is why and what can be done to better serve this important market. I always caution clients to be wary of white picket fence research that presents suspiciously neat and tidy solutions…if it looks overly manicured, it might be. […]


Tenet wants cost-benefit review of FSA’s budget

Tenet is calling on the Government to conduct a new cost- benefit review of the FSA’s 2012/13 budget, describing the 16 per cent rise as “uncontrolled regulatory costs”. In March, the FSA confirmed that its budget is increasing by 16 per cent from £500.5m in 2011/12 to £578.4m in 2012/13. This followed a 10 per […]

Capital Economics says QE set to rise again in 2012

The Bank of England will be forced to expand its programme of quantitative easing later this year in an effort to mitigate the effect funding pressures are having on the mortgage market, according to Capital Economics. Last week, the BoE’s monetary policy committee left bank rate at 0.5 per cent for the 37th consecutive month […]

India budget and the liquidity supercycle

Kunal Desai, manager of the Neptune India Fund, comments on how India’s 2017 budget will impact the Indian economy and equity market. Read article here: Important Information – for Investment Professionals only. Not for Retail Clients.Investment risksThe Neptune India Fund may have a high volatility rating and past performance is not a guide to future […]


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