View more on these topics

This week in Investment

HSBC’s announcement that it is to shift its core UK equity business away from Halbis Partners to its multimanager team has raised a few eyebrows in the investment community.

The move will see over 2bn of UK equity assets held in the UK growth and income, income, and monthly income funds switch to multimanager control pending the appointment of external managers by year end.

Some IFAs have queried the move, particularly as Bob Morris’ performance on the flagship 1bn UK growth and income fund has at least matched the performance of his predecessor Tim Russell on the fund before his departure to Cazenove.

Some have branded the move the “death knell” for HSBC’s core UK equity business and slated the group for not being able to find decent active managers to run its key UK business.

Others believe the move is a sensible one considering that current managers Halbis are essentially experts in running high alpha products, and point to HSBC’s relative success in the US where it appointed Davis Advisors to run its American growth fund in April 2005.

Whatever the rights and wrongs of the strategy, judgement on its success will probably be reserved until the identity of the external managers is revealed.

It seems to have been a long time coming, but finally Fidelity’s UK special sits fund has shut down and re-emerged as evenly split UK and global special sits funds.

While Anthony Bolton will oversee Jorma Korhonen’s global fund stock picks until the end of the year, the Finn is already looking to stamp his authority on the new fund.

Korhonen has ruled in technology stocks, and ruled out buying companies he expects to be subject of takeover activity. The technology sector was shunned by Bolton and the latter are a major part of his investment strategy.

Time will tell whether Korhonen’s tactics prove as successful as Bolton’s in the long term, but even if it proves nothing else, it proves that Korhonen is not afraid to be his own man.

Certainly the strangest rumour of the week concerns speculation that Jupiter owner Commerzbank has been approached by Gartmore majoriity shareholder Hellman and Friedman about a potentail merger of the two giants.

While most observers are highly sceptical of such a merger ever taking place and believe it more likely that the Frankfurtbased bank will look to float Jupiter before the end of the year, it does throw up at least one awkward situation.

Philip Ehrmann is understood to have left Gartmore under acrimonious circumstances when he lost out to Chris Palmer in the post-MBO merger of the Latin American and Asian emerging market desks.

Having just launched a new Japan fund for his new employer Jupiter, the last thing Ehrmann would probably want would be to be reunited with his former colleagues.


Turning Japanese

Multi-manager View, Nick Greenwood

People ready to die for sex

Fewer than half of people are prepared to become celibate if it means they can live to 100, according to a survey by Bupa. The Ipsos Mori research found that just 40 per cent of 1,003 people questioned would sacrifice sex to prolong their lives. Forty-eight per cent of women and 42 per cent of […]

Ex-BBN chief Harrison fined 15,000 by FSA

Former Berry Birch & Noble Insurance Brokers chief executive Paul Harrison has been fined 17,500 by the FSA for serious failings at the firm. The regulator found Harrison guilty of failing to ensure that the firm had proper systems and controls in place to protect customers’ money held by the firm. BBNIB was authorised as […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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