AM revamps international approach
AM Corporation has restructured its international fund for the second time this year.
Fidelity and Capital have been added to the list of international fund managers making up the group's fund of funds. These two managers have been added to give the fund what it calls an "active core" element.
The "active core" approach is aimed at a style neutral position which has been growing in popularity in recent years. Thirty per cent of the AM fund will now be invested using the active core approach.
The move follows the introduction of Dresdner and Nicholas Applegate in February as the two fund managers using a growth investment style.
Under the latest moves, AM has cut its exposure to the growth and value managers it uses for the funds. Dresdner and Nicholas Applegate have both moved to 7.5 per cent from 15 per cent previously as have AM's two growth managers Lazard and Bank of Ireland. It will maintain its high exposure to passive funds, including 35 per cent with State Street and 5 per cent with Morgan Stanley.
AM says both moves have been aimed at correcting underperformance by the fund which has lagged behind the MSCI world index since the middle on 1998.
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