The Fund Selection Blog

Nordic Fund Selection Forum 2010

Tell Media Group is hosting the 3^rd annual Nordic Fund Selection Forum on April 29, 2010 at Scandic Anglais in Stockholm, Sweden. This is an exclusive investment conference aimed at fund selectors in the Nordic region.

We will publish more information about the conference as speakers and program is finalized. 

Selection in the wake of the financial crisis

It is a well-known fact that 2008 was a horrible year for long-only equity managers. Its aftermath could also prove that 2009 will have been the year that highlighted those fund selectors who were really excellent, and those who were able to add value from those who were merely decent.

 

Mats Gunnå joins Penser

We have learned that Mats Gunnå has left HQ, where he was a fund selector and fund-of-fund manager. He has joined the asset management division at Erik Penser Bankaktiebolag where he will be responsible for evaluating external managers for the bank.

Suitability categorisation

At a press conference in London the president of the European Fund and Asset Management Association (Efama), Jean-Baptiste de Franssu, outlined the organisation’s strategy for the next two years. Among the things he highlighted was the issue of distribution of funds. In a press release the organisation stated: “Efama will lead the European industry in this area, placing greater emphasis on the needs of investors by reviewing the conditions under which Ucits funds are being sold by distributors.”

 

Opportunity for multi-managers

At the height of the financial crisis we heard a lot of discussions along the lines that the fund industry needs to start creating solutions for investors rather than continuously launch new products. We could read similar arguments in the recently published Global Wealth Report (link opens a pdf document) from Boston Consulting Group.

 

With the strong equity market rebound we risk missing this opportunity as fund groups yet again may find it easier to launch new products and distributors may find it easier to push yesterday’s winners rather than going through the more cumbersome route of providing and advising clients on solutions.

 

It is also a question of who should be in the driving seat to provide an investment solution. We probably need different parts of the industry to co-operate to get this to market (stock picking talent, manager selection and asset allocation as well as insurance and/or structuring talent). I would see it as an opportunity for multi-manager organisations to take their fund-of-funds offerings to the next level, which would go beyond putting together a static portfolio of best of bread funds and instead provide a range of dynamic, best of bread portfolios suitable to a certain investor types. It is a twin challenge as you have to excel at both the pure investment level as well as in the investment/client matching.

 

What about fund research boutiques?

Over the last couple of years, and even over the last couple of months, we have seen the launch of a lot of smaller independent equity research boutiques. When will we see something similar with managed investment research?

 

 

Charlotte Dennery new CEO at FundQuest

BNP Paribas Investment Partners announced today the appointment of Charlotte Dennery as CEO of FundQuest. She will report to Philippe Marchessaux, Head of BNP Paribas Investment Partners. In a press release the firm said Charlotte will be in charge of consolidating the leadership of BNP Paribas’ multi-management specialist arm, FundQuest, both in France and on a global scale. She joined BNP Paribas in 2001.

Passive better than Active, and vice versa…

Standard & Poor’s Index Services recently released the mid-year 2009 results for the Standard & Poor’s Index Versus Active Fund Scorecard (SPIVA).   

 

In a press release the company states that for the five-year period ending June 30, 2009, the SPIVA scorecard shows that;

• S&P 500 outperformed 62.9% of actively managed large cap funds
• S&P MidCap 400 outperformed 73.4% of mid cap funds
• S&P SmallCap 600 outperformed 57.4% of small cap funds

However, asset weighted averages suggest a more level playing field, with active managers level or ahead of benchmarks in most categories except mid-caps and emerging markets.

 

“Our latest five-year data for equity funds can be interpreted favourably by proponents of both active and passive management”, says Srikant Dash, Global Head of Research & Design at Standard & Poor’s and author of the report, in a comment. He concludes that; “Passive management believers can point out that indices have outperformed a majority of active fund managers across all major domestic and international equity categories; with real estate being the lone exception. Conversely, proponents of active fund management can point to the asset weighted averages.”

 

Eva Thörnelöf has left Mistra

Eva Thörnelöf, until recently responsible for asset management at Mistra, has left her job to pursue a new job opportunity with the Swedish Environmental Protection Agency (not finance related). Mistra, the Foundation for Strategic Environmental Research, had some SEK 2.5 billion in assets under management at the end of 2008. The portfolio is managed by external managers and according to SRI guidelines. One of the largest managers of the Mistra portfolio is Generation Investment Management.

Jauri Häkkä featured by Citywire

Citywire has recently published a feature of Jauri Häkke, the head of Fund & Manager Selection at Nordea. In the article Jauri, who is based in Stockholm Sweden, says he “favours managers with a ‘go anywhere’ approach” and that the team “try to avoid the trap that many asset allocators and fund selectors fall into of putting managers in distinct style boxes”.