A team of global sector analysts is being recruited to run Invesco's Global Dynamic Themes fund foll...
A team of global sector analysts is being recruited to run Invesco's Global Dynamic Themes fund following the transfer of its investment process to London, writes Robert Stock.
The fund, which has more than £149m under management, was run from the US until May this year when it was transferred to London to bring it closer to its UK retail base.
The fund's new manager, Andrew Callender, who used to head the Japanese equities team at LGT, said a team of global sector analysts is being recruited to cover the seven world sectors into which the fund is divided.
Callender said the move will strengthen the investment process in the fund, which is ranked 18 out of 148 funds in the global growth sector on one-year performance to 28 August and 31 out of 156 funds on three-month performance.
He said this would allow more informed decisions on relative valuations to be made between stocks in global sectors and to better build a portfolio without geographical bias.
Until the global sector analysts have been appointed the management of the US portion of the fund, which represents 65% of the portfolio, will remain under the management of Invesco's US team in Denver. Some 4.5% of the fund is invested in the UK, 16% in Europe, 8% in Japan, 2.5% in Hong Kong, and 4% in other emerging markets.
Callender said the fund effectively takes the best ideas from Invesco's teams, but as the fund has always been based in the US it has historically had a strong bias towards the US.
He said: "What we are trying to do is to take the fund one step further and really fulfil the objective of the fund, which is to be a truly cross-border fund making comparisons on a purer sector basis which is not really happening at the moment.
"The fund will continue to be run in this way for the remainder of the year, maybe longer, whereby the US provides us with a very strong input."
The sectors into which the funds holdings are divided are: technology, which makes up 27.5% of the fund, telecommunications at 17%, consumer products at 15%, healthcare at 11%, natural resources at 11%, financial services at 11% and infrastructure at 7.5%.
Callender said the fund is fully invested having moved from a 6.2% cash holding on 1 July. He said this reflected the buying opportunities in technology, which had been presented by lower valuations globally and in the US in particular.
He has, however, cut back on his telecommunications holdings due to his mounting concerns over the high gearing many large mobile phone operators have assumed after buying third generation mobile phone licences in Europe. The fund is neutral in natural resources and healthcare, underweight in financial but has strong holdings in investment and merchant banks.
Claim from SocGen's global markets division
Third annual Hampton-Alexander review
European Commission yields to pressure
Numbers in Adviserland
Retirement sector trends