Archive for May, 2007

The eco revolution that’s transforming Britain’s houses

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Forget wet rooms and halogen lighting. In future, estate agents will put other things on property details. You can expect to become more familiar with phrases such as “air-to-water heat pumps”, “passive solar collection”, “hydroponic systems” and “low-embodied energy”.

In last week’s Budget, Gordon Brown kick-started the green building goldrush by dangling the carrot of stamp duty exemption for all new “zero-carbon” properties, up to the value of 500,000. That could mean a saving of 15,000 for anyone buying such a home. At the moment, there are almost no houses in the UK that measure up to the Chancellor’s standards. To qualify, the homes will have to have “zero net emissions of carbon dioxide from all energy use in the home”.

That means no fossil fuels for light or heat. Instead, features such as solar panels, hydroponic systems (fancy greenhouses that redistribute energy and grow food), as well as materials that have low-embodied energies (such as locally sourced timber) will start to be used. Plus, you can expect to see plenty of wind turbines appearing. All of these technologies exist now. And within a few years, the first generation of zero-carbon homes will be ready.

One of the most ambitious schemes for self-sufficient homes is planned at a site near Ilkley in West Yorkshire. Myddelton Construction (01943 603125, http://www.myddelton.co.uk) is planning to build an innovative eco-village consisting of five sustainable homes, 11 live/work units, a microbrewery, offices, meeting rooms and a conference space. The development will produce its energy from micro generation on site, through photovoltaics (solar panels) and thermal panels as well as a biomass boiler, which uses fuels crops, such as woodchip, that only emit as much CO2 as they absorbed while growing.

Ecos Homes (01458 259400, http://www.ecoshomes.co.uk), based in the West Country, has five units at Stawell in Somerset due for completion by Christmas 2007. Prices will start at 250,000 (saving at least 7,500 on stamp duty) for the three- and four-bedroom houses that use solar and biomass heating to gain their zero-carbon badge.

Another developer, ZEDHomes (0845 1228656, http://www.zedhomes.com), has just received planning permission to build 12 two-bedroom apartments in Harrow. These will have zero-carbon credentials, such as 300mm insulation, solar panels and biomass boilers.

One of Britain’s first zero-emissions developments - a terrace of five houses at Hockerton in Nottinghamshire - was completed in 1998. It set the benchmark for sustainable homes, being entirely self-sufficient for its energy needs. The most high-profile development so far, though, is BedZED (not connected to ZEDHomes), at Sutton in Surrey. It was built in 2002 through a collaboration between the Peabody Trust and the environmental charity BioRegional. BedZED was a pioneering project based on the principal “zero energy, zero carbon emissions”.

Near Zero (0191 272 8228, http://www.nearzero.co.uk) offers the self-builder a route into this brave new world by providing a range of options. Experienced DIYers can just buy the plans for an off-the-peg home, while total novices can have a fully managed build. The quality of the architecture is high, so you’ll be raising your style status as well as reducing your carbon footprint.

But even if your current home seems a lost cause in the zero-carbon stakes, it’s still worth thinking about reducing its environmental impact by installing some of these gadgets. In 20 years’ time, a poor energy rating could put off eco-conscious buyers.

What it’s like to live in an eco home

Helen Woolston is an environmental and climate change co-ordinator working for Transport for London. She has a four-year-old daughter and has lived in a two-bedroomed flat at BedZED, a zero-emissions development in Surrey, for five years.

“My initial thoughts were how very light and airy the flat was - I spent time just enjoying the architecture. The sitting room has a south-facing wall of glass and an unusual ‘Sun Space’, like a glassed-in balcony. I also have a bridge that leads to a private ‘Sky Garden’.

“In the winter it’s really warm. The structure here seems very solid and there’s 300mm insulation and a district heating system that’s all connected up to the heating plant on site. We also have larger than average hot water tanks that generate a lot of heat and my heating bills are now significantly lower than before.

“People generally only move within BedZED - hardly anyone moves away. There’s a ZED bar on site, an active residents association and plenty of outside space including allotments if you want one. It is a densely designed development, but the cleverness of the design stops you feeling like you are living on top of each other.

“All the roads run round the edge and the carbon footprint is reduced further by less car parking spaces and a car club. I can’t really think of any downsides, although there isn’t much storage, but that’s true of so many new builds. I’d recommend it to anyone.”

optionsXpress(R) Begins Investor Education with Chicago Mercantile Exchange Focused on Futures Options

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CHICAGO (http://eon.businesswire.comhttp://www.prweb.com/ ) May 9, 2007 — Online broker http://www.optionsxpress.com (Nasdaq:OXPS) and the http://www.cme.com (NYSE:CME)(Nasdaq:CME), the worldЙs largest and most diverse derivatives exchange, today announced a unique new partnership to develop a wide range of investor education events. Individual investors can attend http://www.optionsxpress.com/educate/seminars.aspx?sessionid= to understand how options on futures such as stock indexes and currencies are important risk management trading tools for their portfolios.

http://www.optionsxpress.com
The optionsXpress/CME investor education effort will include one-day workshops, webinars and the regional and national versions of http://www.optionsxpress.com/educate/seminars.aspxsm, optionsXpressЙ flagship customer event.

optionsXpress and the CME have already held two joint events, in Los Angeles and Miami, and expect to host as many as eight more events and at least eight webinars through the end of 2007. Currently scheduled events include:

- Aug 1 or 2 One-Day Workshop, Seattle
- Sept 14-15 optionsXpress Regional Event, Phoenix
- Oct 25-27 optionsXpo, Chicago
- Dec 27 or 28 One-Day Workshop, Honolulu

Dan OЙNeil, executive vice president, futures, of optionsXpress, says that the joint effort between optionsXpress and CME is in keeping with optionsXpressЙ focus on investor education and expertise in options and futures.

“Investor education has been key to optionsXpressЙ success in demystifying equity options, with a wide range of services including http://www.optionsxpress.com/welcome/tour/quotes/virtual.aspx, webinars and live customer events held in cities around the world,Н said OЙNeil. МWe are excited to begin this new investor education series with the CME, focused exclusively on futures options.Н

Futures Brokerage at optionsXpress

On January 24, 2007, optionsXpress Holdings, Inc. announced the acquisition of online futures broker XpressTrade, adding 8,800 futures-focused investors to its existing customer base of 216,000 customers. As a result of the acquisition, optionsXpress customers gained 24-hour access to 25 exchanges and over 300 futures products worldwide, in both electronic and open outcry markets.

Unique among brokerages, whether online or traditional, optionsXpress offers futures traders simple account management with the ability to trade securities and futures side-by-side through a single brokerage account. Other benefits include easy-to-use trade tickets with advanced order capability and a comprehensive suite of futures-oriented tools and services, such as virtual trading and webinars.

About Chicago Mercantile Exchange

CME (http://www.cme.com) is the worldЙs largest and most diverse derivatives exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, NASDAQ: CME), which is part of the Russell 1000 Index and the S&P 500 Index.

About optionsXpress Holdings, Inc.

optionsXpress Holdings, Inc., a pioneer in equity options and futures trading for the retail investor, offers a comprehensive and innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. Through its subsidiaries optionsXpress, Inc., an online retail brokerage specializing in equity options and futures, and brokersXpress, LLC, an online trading and reporting platform for independent investment professionals, the company provides a wide range of proprietary investor tools, outstanding customer service and competitive commissions that have led to recognition as the leading online brokerage firm by Barron’s in four annual surveys (2003, 2004, 2005 and 2006) and by KiplingerЙs Personal Finance in 2006. http://www.optionsxpress.com –>

Tesco staff in line for windfall

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Around 50,000 members of staff, including checkout assistants and delivery drivers, save between 5 and 50 a month.

More than 6,000 workers are in line for a payout of more than 7,000.

Tesco chief executive Sir Terry Leahy said: ‘Our staff are the main reason so many people choose to shop with Tesco, and through they can share in the success they achieve through all their hard work.’

The news comes three weeks after Britain’s biggest supermarket chain revealed its busiest Christmas ever. Its overall sales jumped 5.4% in December and early January compared with the previous year.

Organic ranges saw a 39% sales boost and its ‘Finest’ range of and meat and poultry rose 55%. The figures confirmed that 2006 was the year of the ‘luxury Christmas’ when consumers spent their money on genuine treats, while cutting back in some other areas.

Tesco is also at the centre of a Competition Commission investigation into supermarket giants’ dominance of the grocery sector.

Preliminary findings showed the commission is concerned that supermarkets ‘can get into such a strong position, either nationally, or locally, that no other retailer can compete effectively’.

It is the first time a major independent investigation has acknowledged that Tesco’s extraordinary growth could be damaging Britain.

The report follows an eight-month investigation of the 123bn grocery market. It was triggered by mounting public concern over the unprecedented dominance of the ‘big four’ supermarket groups, and Tesco in particular.

Other stories:
Tesco in 500m green drive
Organic lines give Tesco the edge
Tesco stacks up festive boom
Outcry as Tesco takes half new retail space
Tesco gains more strength in China

Consistency: An Overrated Virtue in Mutual Funds?

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When http://quicktake.morningstar.com/fundnet/MorningstarAnalysis.aspx?Symbol=LMVTX http://quote.morningstar.com/Switch.html?ticker=LMVTX manager Bill Miller visited our offices a couple of months ago, we asked him to name the most overrated, overvalued stocks in the market right now.

Without skipping a beat, Miller shot back: “Companies with consistent earnings.” He went on to argue that stock investors lavish too much attention on firms that meet or beat their earnings targets quarter in and quarter out, while short-shrifting those companies with more-erratic earnings patterns but better long-term growth trajectories.

Miller was talking about stock investing, of course, but his message could have just as easily applied to investing in mutual funds.

Many consultants and investment advisors urge investors to seek funds whose returns land in the top half, third, or quartile of their peer groups in every calendar year and consider giving the heave-ho to those with less predictable annual returns. But if you limit yourself to such funds, you’re likely to miss out on a large number of gems that are very worthy of your attention.

A Short and Arbitrary Time Period
Miller’s own charge provides a vivid illustration of why it’s a mistake to get hung up on the consistency of calendar-year returns when evaluating a fund’s worthiness.

He gained acclaim for thumping his benchmark, the S&P 500, for 15 consecutive years, from 1991 through 2005. In 2006, however, he fell behind his bogy in dramatic fashion, ending the year 10 percentage points behind the index and prompting much hand-wringing over whether he had lost his touch.

But as analyst Greg Carlson wrote http://news.morningstar.com/article/article.asp?id=177239&_QSBPA=Y, it would be a mistake to let one weak year overshadow the whole of Miller’s remarkable tenure here: Even after his fund’s 2006 performance slump, it still outpaces the S&P 500 by an annualized 4 percentage points over the past decade.

More important, gauging performance in a calendar-year period is an extremely arbitrary exercise that informed investors should avoid. As Miller was quick to point out even when his S&P 500-beating streak was still fully intact, the fund had underperformed the S&P 500 in many rolling non-calendar-year periods during his tenure.

When Inconsistency Is Consistent
But the key reason you shouldn’t get bogged down in consistency of annual returns is that a great manager’s year-by-year performance will generally be a lot less consistent than his strategy. It’s also worth noting that the best managers often follow up weak performance periods with stellar returns.

A peek beneath the hood of Miller’s recent underperformance demonstrates why this is so. Unlike many rival fund managers working today, he has always understood that beating the benchmark requires a willingness to differ significantly from his bogy, the S&P 500. In 2006, as in years past, that meant underweighting energy and commodity-related stocks that led the S&P 500’s gains, to the detriment of near-term returns. Moreover, he’s not inclined to waver from his strategy and his basket of securities amid bouts of short-term performance. Just the opposite, in fact: He’s often adding to his holdings as their share prices are slumping, arguing that if he liked the company in the first place, he should like it even more when it’s on sale. In 2006, many of Miller’s Internet-related companies came in for some pain, but he stood by them and even added in some cases.

The conviction Miller shows in his approach, as well as his willingness to diverge meaningfully from the consensus view, is the hallmark of all great investors, ranging from http://quicktake.morningstar.com/fundnet/MorningstarAnalysis.aspx?Symbol=TAVFX’s http://quote.morningstar.com/Switch.html?ticker=TAVFX Marty Whitman to http://quicktake.morningstar.com/fundnet/MorningstarAnalysis.aspx?Symbol=FCNTX’s http://quote.morningstar.com/Switch.html?ticker=FCNTX Will Danoff to all three of our http://news.morningstar.com/article/article.asp?id=182492&_QSBPA=Y. All of these skippers, like Miller, have seen their performances slump at various points in time but have rewarded their shareholders by not wavering from their strategies amid times of trouble. In some cases, these managers’ near-term performance has drifted downward because they saw a market sell-off as an opportunity to buy stocks while they were dropping. In other cases, short-term performance has suffered because managers refused to drink the Kool-Aid amid market manias. In 1999, for example, Danoff’s Contrafund badly lagged the typical large-growth fund’s scorching gain because he hadn’t feasted on tech stocks to the extent his rivals had. Amid the ensuing sell-off, however, his prudence was rewarded.

Takeaways
None of this is to suggest that consistency isn’t a virtue. Consistent positive returns and capital preservation–the goals of cautious managers such as http://quicktake.morningstar.com/fundnet/MorningstarAnalysis.aspx?Symbol=FPNIX’s http://quote.morningstar.com/Switch.html?ticker=FPNIX Bob Rodriguez and former First Eagle manager Jean-Marie Eveillard–are obviously important to risk-averse investors. But that kind of consistency reveals itself in absolute returns and volatility-related statistics like standard deviation–not by looking at how a fund has performed relative to a peer group or a benchmark.

If you’re a long-term investor in equities, you’ve got to brace yourself for the inevitable weak patch and, indeed, real losses. When that occurs, turn your attention to whether your fund is consistent where it counts–in its management and strategy. And if it is, do what Miller does: Hang on and consider buying more shares.

Jovicic thanks Minister for visa

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A stateless man granted a two-year visa has thanked the Immigration Minister Kevin Andrews for allowing him to stay in Australia.

Robert Jovicic was deported to Serbia in 2004 after committing a series of crimes but was allowed to return on compassionate grounds.

Mr Jovicic has lived in Australia since he was a child, but he never became an Australian citizen and had been threatened with detention and deportation if he did not apply for Serbian citizenship.

Mr Jovicic has told ABC’s Lateline he is grateful for the opportunity to remain in the country, despite not knowing what will happen after two years.

“I would like to thank the Minister for allowing me a reprieve and softening his stance on the Serbian citizenship application, so I’m very thankful for that opportunity, given the fact that I had my bags packed for Villawood tonight,” he said.

Mr Jovicic says his future remains uncertain.

“My life’s in limbo and it’s not a nice place to be, I assure you that, you know there’s no guarantees that I’m going to remain in this country and it’s extremely tough,” he said.

“I’m not asking for a free ride here you know, just a chance to prove myself.”