Market cap firmly in place for actively managed funds

Actively managed unit trusts and Oeics cannot hold a full or overweight position in Vodafone-Mannesmann even though index funds are using debentures to gain a full exposure to the stock, writes Jane Wallace. Mark Dickson, head of product development at HSBC Asset Management, said: "The new bonds being used by tracker funds are debentures, which are allowable investments for funds. "However, they can also be interpreted as being a 'contract for difference', a derivative whose return is dependent upon future moves in the stock's share price. This is not a transferable security and therefo...