Old Mutual Global Investors (OMGI), part of Old Mutual Wealth, has enhanced its fixed income range by converting the Ireland-domiciled, US$24.8m¹ Old Mutual Global Strategic Bond Fund into the Old Mutual Strategic Absolute Return Bond Fund (the fund).
The fund will continue to be managed by Mark Nash, head of global bonds, and Nicholas Wall, global bond fund manager. It will seek to generate positive returns on a rolling 12-month basis, with stable levels of volatility, uncorrelated to bond and equity market conditions.
OMGI believes the change is in the best interest of investors, given the rising demand for absolute return funds which aim to deliver long-term positive total returns. The business also believes that this shift in focus represents the best opportunity for the fund to grow assets.
The portfolio managers aim to generate alpha from across developed and emerging market fixed income and currency markets. The fund will place an emphasis on investing in highly liquid assets, giving the portfolio managers flexibility to express their convictions, while maintaining liquidity and seeking to preserve capital. The fund can short the market, to profit when prices fall, in order to help achieve consistent positive returns through a variety of market conditions.
Increasing demand from investors for absolute return funds has been driven by long-term changes in the macroeconomic, market and geopolitical environment; OMGI believes that this backdrop has created vast opportunities within fixed income and FX markets. The Old Mutual Strategic Absolute Return Bond Fund will seek to exploit these opportunities. Unlike many other absolute return bond funds, it will avoid a central and persistent investment theme, thereby aiming to escape the risk of ‘crowding’ associated with many funds in this sector.
Mark Nash and Nicholas Wall joined OMGI in the summer of 2016 from Invesco Asset Management, where they worked together running top-performing multi-sector portfolios. Given their strengths as macro investors, and the single-sector expertise of OMGI’s broader fixed income team, OMGI believes the fund is well-placed to seek to meet the needs of clients who desire a gradual rise in performance over time, regardless of broader market moves.
Mark Nash, head of global bonds, OMGI comments:
“Absolute return funds continue to grow in popularity as investors aim to generate consistent returns in today’s uncertain and low-yielding markets. The Old Mutual Strategic Absolute Return Bond Fund aims to meet investors’ appetite for stable returns, uncorrelated to market conditions.
“The opportunity to create returns from fixed income and FX is strong given the huge changes in markets, macroeconomics and geopolitics and the outlook for great volatility disrupting current investment models. We will seek to take advantage of these opportunities via a diversified portfolio of best ideas from across the global fixed income and currency universe. Further, we believe our fund will stand out from others in the sector by avoiding the crowding risk associated with adopting a persistent investment theme.”
There is no change to the UK-domiciled, Old Mutual Global Strategic Bond Fund.
¹ As at 30 April 2017
Amelie Shepherd 020 7332 8345
Old Mutual Global Investors
Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £34.6 billion (as at 31 March 2017). The team consists of 286 industry professionals, including a team of 67 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to: www.omglobalinvestors.com
Old Mutual Wealth
Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
It has an adviser and customer offering spanning:
- Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
- Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK and Old Mutual International globally
- Asset management solutions delivered by Old Mutual Global Investors
- Discretionary investment management delivered by Quilter Cheviot.
Old Mutual Wealth oversees £122.2 billion in customer investments (as at 31 March 2017).
Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £394.9 billion of assets under management (as at 31 December 2016).This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.