View more on these topics

Skandia sticks by emerging launch

Skandia Investment Management says the timing of the launch of its global emerging markets fund of funds is right despite the recent market volatility caused by the credit crunch.

The company says investing is a long-term decision and short-term volatility is to be expected in emerging markets.

It says that it launched the fund as result of demand from IFAs for a multi-manager emerging markets fund and has not been put off by recent falls in equities.

Skandia says a fund of funds is the best way to access emerging markets.

It considers that trying to asset-allocate geographically between emerging markets is difficult for IFAs because if the adviser gets it wrong, the decision could cost clients in terms of performance.

The global emerging markets equity fund aims for growth by investing in five retail funds and one segregated mandate – Lazard emerging markets, Schroder global emerging markets, Hamon Asian market leaders, Gartmore Latin America, Resolution International emerging Europe and a First State Pacific mandate run by Angus Tulloch.

The funds were selected on the basis of research from Skandia’s dedicated team of emerging markets analysts. It looks at UK-domiciled emerging market funds and those domiciled overseas.

Skandia says it first identified the managers it wanted for the portfolio and then considered the best way to access them.

The company says it is happy to use existing funds but as Angus Tulloch already runs a segregated mandate for its other funds, it seemed sensible to access his skills this way.

Skandia Investment Management fund manager Ryan Hughes says: “With every fund, we look to have the best structure possible. Because of Skandia’s size we can invest through existing funds or segregated mandates.

“We have a large research team and they have decided that these are the best managers to have together in one fund.”

Recommended

The lives of others

A consultation on life insurance law has revealed concerns over restrictions on taking out cover

ABI publishes new guidelines for online and telephone protection sales

The Association of British Insurers has published new guidelines to improve clarity for consumers buying protection insurance online or over the telephone. The guidance builds on the ABI’s earlier work to improve the clarity of application form questions and design.ABI director of general insurance and health Nick Starling says recent years have seen more and […]

Pension peril

Nicola York reports on fears about the RDR’s effect on pensions

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment