2001 proved tough for investors with economies in recession and global markets contracting
The official start to the millennium saw plenty of volatility in world markets with the emphasis on the downs rather than the ups.
While much of the back half of the year has focused on the terrorist acts perpetrated on the US on 11 September and the subsequent war, economists had been saying since the start of 2001 that global markets were contracting.
The bear market has led to variances in fund performance over the course of the year with UK Income funds regaining some of their previous popularity and bond funds returning to the fore. Still, investment houses have not stayed their progress in further developing products, with a number of funds launched over the past 12 months.
The year started as 2000 ended with a flurry of fund managers switching firms and aggressive focused equity funds being launched.
US manager Margaret Roddan left Invesco Perpetual, and Jupiter's Europe fund manager Richard Pease departed for New Star. Paul Kleiser and Stuart O'Gorman left Aegon Technology for Hendersons.
Gartmore planned five best ideas funds and Credit Suisse a global TMT fund, saying markets presented a buying opportunity.
Artemis announced plans to expand its range with UK Special Situations and European Growth funds.
Investment Week learnt that an Autif sector re-jig would split out, technology and Latin American funds. James Abate, once of Credit Suisse TransAtlantic, joined GAM.
Schroders retail CIO David Gasparro, tasked to turn around flagging retail funds, put ex-M&G Tom Carroll at the helm of its £943m UK Enterprise fund.
The Save & Prosper name was dropped to be replaced with JP Morgan Fleming branding. On one year losses, the average technology fund needed to return around 200% in the coming year to bring investors' capital back to its original value.
Fund of funds managers played musical chairs throughout the year, moving from Lazards to Jupiter, Rothschild to Credit Suisse, Singer & Friedlander to ABN Amro and Friends Ivory & Sime to Rothschild.
In April, Investment Week reported Jupiter was to launch three fund of funds products.
Despite 6 April Pep and Isa alignment, the inability of many managers to do in-specie transfers was costing consolidating Isa and Pep investors up to 5% to 6% of their capital.
With fund manager contract worries at Newton and Invesco Perpetual unresolved, Investment Week reported Jupiter fund managers had begun signing new remuneration packages.
In a story first flagged by Investment Week three years ago, tax worries beset income bond investors. Eurolife told its High Income Bond holders that their return of original capital would be cut by 4.75% in case it had to be handed to the Revenue in tax.
Investec announced plans to Oeic, a process which would ultimately lead to the death of the Guinness Flight name.
Hendersons revamped its ailing UK equity capacity, hiring Patrick Harrington from M&G as head of UK equity income. Earlier, Richard Prew joined from Norwich Union as head of UK growth.
Framlington parted company with NetNet fund manager Chris Bell.
The Britannic split cap investment trust launched with a 100% capital guaranteed income share class which was massively over-subscribed, angering many brokers who were unable to buy into it.
Rothschild's £1bn fund of funds division, now headed up by ex-Friends Ivory & Sime manager Bambos Hambi, attempted to force unit trust groups it dealt with to discount their annual fees by up to 1%.
Fidelity won Investment Week's Fund Management Group of the Year award at its annual unit trust award dinner at the Royal Albert Hall. Credit Suisse launched a fund of boutique funds for Gary Potter and Rob Burdett.
Cazenove warned that barbell style split caps could face systemic collapse due to cross-holdings and high levels of gearing.
Norwich Union planned for a range of aggressively managed 30-stock portfolios. BWD Rensburg sought FSA approval for its own UK Aggressive Growth fund.
ABN Amro entered negotiations with Singer & Friedlander for the acquisition of its portfolio management service, a deal finally resolved in December.
Friends Ivory & Sime rebranded its retail business Isis and US giant MFS announced plans to launch an Oeic including a no-load share class.
Jupiter started paying renewal commission on non-Pep and Isa business and UK fund managers were turning bearish as the FTSE 100 hit a four-year low, dropping to an index level of just over 5,000 on 7 September, and then the World Trade Center was brought down.
Aberdeen signed up with Thomas the Tank Engine in the month Railtrack shares were suspended.
New Star planned its UK Aggressive Fund for Tim Steer, Framlington manager Antony Milford would head a new Biotech fund and Invesco Perpetual overhauled risk systems after heavy falls in the Invesco Perpetual European Growth portfolio.
Redundancies were high at several groups as Prudential, Edinburgh, Hendersons, Old Mutual, Invesco Perpetual and Govett all cut staff.
Online fund supermarket Selestia launched in competition to Skandia.
Hugh Priestley, CIO at Rathbones, stepped down as manager from three of his five retail funds. Derek Lygo, new UK equities head at First State announced the group would launch an aggressive mid cap portfolio.
The planned £42m New Star takeover of Artemis fell through.
In early December, Old Mutual Asset Management announced it was to merge with Gerrard, the ex-Capel Cure Sharp fund management arm.
Star UK manager Adrian Frost returned to the industry, signing with Artemis.
Swip finally revealed its intermediary plans for a range of 12 to 14 concentrated portfolios, mostly ex-Hill Samuel funds.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation