Euro forces change of direction

Article Abstract:

When the euro is launched in January 1999, fund managers will need to rearrange their portfolios to focus on sectorial rather than geographical allocation, which could cost up to 1.5% of the portfolio's value. Funds managers in Europe have started to boost their equity holdings whereas UK managers who hold far more in equities than their European counterparts-around 76% rather than between 18% and 29% of assets- are moving the other way, largely to meet the minimum funding stipulations of the Pensions Act. Fund managers will evolve either into those supplying services right across Europe or will focus on specialist niche and geographic services. UK fund managers will have to rethink the benchmarks of their funds when the UK joins EMU and are likely to sell leisure and hotels and buy retail banks, given that Europe's concentration of services and utilities is lower.

Comment:

UK: Fund managers must rearrange portfolios to focus on sectorial rather than geographical allocation when euro is launched

Market information - general, Article

UK: Invesco Perpetual restructures with job losses

Article Abstract:

Invesco Perpetual, investment house, is restructuring its intermediary support arm, which involves both redundancies and nine new jobs. Technical products manager, John Hawkes, sales director, Stuart Alexander, and relationship manager for third party administration, Robert King, have been made redundant. The intermediary support business of the company, backed by a business development unit, will comprise an offshore division, an advisory team for independent advisors, and a discretionary team for bigger semi-institutional accounts.

Organizational history, Financial Services, Finance and Insurance, Abstract, Invesco Perpetual

UK: New Star to raise purchase funds via share issue

Article Abstract:

New Star Asset Management, the fledgling fund manager, is to raise GBu 25mn through a share issue to finance the purchase of one or more medium-sized companies, in shares and cash. Shareholders who subscribed at GBu 80 per share in its private placing will be offered GBu 150 worth of shares. Aberdeen and Framlington have both denied suggestions that they are potential takeover targets. New Star has been valued at GBu 267 issue price, including the new shares to be issued.

Investment Companies, Open-End Investment Funds, Securities issued, listed, New Star Asset Management Ltd.