View more on these topics

Product matters: Special delivery

It is always refreshing to see a fund management company admit there might be better people at managing money than itself. Norwich Union has done precisely that with the launch of its new UK special situations fund. It has outsourced the management of the fund to undoubted experts Richard Buxton and Andy Brough of Schroders.

Buxton, as many of you will be aware, is the top-performing manager of the Schroder UK alpha plus fund and is known for his top-down views. Brough is the highly capable manager of the UK small and midcap funds and tends to have more of a bottom-up approach. Both are looking to invest primarily in undervalued companies, especially in sectors where demand for goods or services exceeds supply. They want the market to eventually realise the true value and push the share price higher.

The portfolio is likely to consist of about 50 stocks, half in Buxton’s arena and half in Brough’s. Rather than the managers doing their own things, it will be a team affair, with a company being bought only if both are happy for it to be included.

Is this the way forward for the fund management industry? If you look at the joint ventures over the last 12 months, for example, Britannic and the two funds that Norwich has launched, it definitely seems to be a viable option. These types of companies have distribution but not always fund management expertise so they could be marriages made in fund management heaven.

I think the Norwich special situations fund could be a very interesting fund. The fact that Norwich Union is prepared to seed the fund with 200m speaks volumes. Do not be surprised if this is one of the top performers in years to come.

Recommended

Hips will be bad for market, says BSA

Home Information Packs will have a negative impact on the housing market and should be voluntary, says the Building Societies Association. The BSA says 84 per cent of building society chief executives expect the mandatory introduction of Hips will be bad for the market.From June 2007, sellers will have to produce a Hip, providing the […]

Origo collaborates with Pisces

Origo has announced plans to collaborate with international property standards organisation Pisces.The move follows the launch of Origos mortgage standards initiative and Pisces launch of an XML standard for homes information packs.Pisces has published e-commerce standards in the property industry for 10 years and is publishing standards for residential conveyancing, searches, occupancy costs and investment […]

FundsNetwork goes on the road

FundsNetwork’s latest series of user forums will take place in June featuring Fidelity, Henderson and Jupiter. The 18-venue roadshow will include presentations on asset allocation, property investment and income generation in a low-yield environment.

Tantrums over TCF

A few weeks ago, I suggested that paranoia is a key personality trait among IFAs. My comments stung quite a few of you into emailing me on the subject, with some of the responses weirder than the role played by Gene Hackman in the 1970s’ film The Conversation, where he appears as a surveillance expert who refuses to buy a phone and will not tell his girlfriend his real age or what he does for a living.

Natixis video: Making smarter use of asset classes

Content supplied by Natixis Global Asset Management This video from Natixis Global Asset Management focuses on Active Share. One strategy for the smarter use of equity investments is ensuring you get what you pay for. According to the company, looking at Active Share can give you a better perspective on where performance comes from. Active […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment