Standard Life Investments is to launch a series of global sector retail funds scheduled for the star...
Standard Life Investments is to launch a series of global sector retail funds scheduled for the start of 2001, writes Ruth Alexander.
This follows the arrival of Pauline McPherson, previously of Scottish Equitable, last week. She has been given the new role of investment director of global equities and will be in charge of global sector and stock picking portfolios.
The group's definition of a global sector is one that constitutes 10% of the MSCI World Index and is not dominated by a single company. This leaves it with five key sectors, telecoms, financials, technology, resources and pharmaceuticals.
McPherson said: "These global stock selection funds will be based on a sector rather than the traditional geographical approach, reflecting the emergence of global companies and much more co-ordinated trends in global growth and inflation.
"Standard Life Investments' response to this has been to extend the processes it uses to the co-ordination of global sectors. These will form the basis for the stock selection process for our global funds.
"These five sectors capture 88 of the top 100 MSCI companies and 75% of the MSCI World Index by value. In addition, we will be looking for the best in class companies that are excluded from the sectors and also for the rising stars."
As part of this move to a more global approach, the group is looking to create a global database to allow it to screen for individual companies on a uniform basis and to make more accurate judgements on what its sector weightings should be.
McPherson, who will be based in Standard Life Investments' Edinburgh headquarters, is to replace John Brindle as manager of the Standard Life Global Selector fund.
Last week Investment Week reported the Global Selector fund's name was changed on 16 October from the International Equity Growth fund, in order to emphasise its new theme-based asset allocation approach.
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