New fund to be launched for Russ Oxley and team
The Old Mutual Absolute Return Government Bond Fund to be available 7 October 2015
Old Mutual Global Investors is pleased to announce that the Old Mutual Absolute Return Government Bond Fund (‘the Fund’) will launch on 7 October 2015 with £100 million seeding from Old Mutual plc.
The Fund will be managed by Russ Oxley and his team, who joined Old Mutual Global Investors from Ignis Asset Management earlier this year. Russ, the Lead Manager, and Co-Managers Adam Purzitsky and Paul Shanta, will be supported in their portfolio management and trading by Huw Davies and Jin Wong, and in systems development by Josh Heming.
Warren Tonkinson, Managing Director of Old Mutual Global Investors comments:
“We are delighted that Old Mutual will be supporting the strategy with £100 million of seed capital at launch.This demonstrates the belief we have in the strategy and our commitment, to this fund.
“This is a very exciting development for our company as a lot of work has been undertaken to prepare for this launch. We have had a lot of interest from investors as Russ and his team are highly respected, having one of the best track records of managing absolute return government bond funds in our industry. We are confident that demand will be strong from our global client base.”
The objective of the Fund is to seek to deliver positive total returns on a rolling 12-month basis with stable levels of volatility uncorrelated to bond and equity market conditions. Targeting overnight cash plus 5% per annum, the Fund aims to be diversified from global fixed income markets by employing a highly distinctive investment strategy focused on expressing views on macro themes through exposure to forward interest rates inflation expectations and foreign exchange. Forward rates provide a rich source of uncorrelated investment opportunities, since different forward rates are influenced by diverse factors and different market participants.
The low correlation with global bond markets is likely to be appealing at a time when the traditional safe-haven role of government bond markets is increasingly questionable. Due to the distinctive process and avoidance of credit and credit-like assets, and of emerging market debt the Fund is also likely to exhibit low correlation with other absolute return investment strategies (including fixed income, equity and multi-asset based strategies), making it a potentially attractive addition to a well-diversified portfolio. The portfolio managers will place a strong emphasis on investing in highly liquid assets, in which the market has historically remained liquid even in the most extreme periods, including for example the global financial crisis.
Adam Purzitsky, Co-Manager of the Fund, comments:
“Our investment philosophy hinges on the belief that, through a detailed understanding of forward interest rates, it is possible to express views on macro trends in a very precise way. Through our approach to investing, we are able to target specific risks and opportunities, without “inadvertently” taking economic exposures to those risks we would rather avoid. At the core of our approach is the understanding that forward rates are influenced by very different factors depending on their location on the curve. We believe we have the potential to deliver positive returns for investors within clearly defined volatility parameters irrespective of the direction of interest rates. Our investment track record of successfully managing these strategies is clear evidence that our process if very effective.”
Paul Shanta, Co-Manager of the Fund, added:
“We have developed a unique investment strategy over a period of many years and a product that we think plays a valuable role in our clients’ wider portfolio. Joining Old Mutual Global Investors has given us the opportunity to further enhance our processes and technology and to prepare a bespoke platform for the launch of our new fund. We are excited about being part in an organisation that shares our ambition and now look forward to working with investors.”
Vee Montebello 020 7332 7687
Amelie Shepherd 020 7332 8345
Notes to Editors:
Old Mutual Global Investors:
Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £22.4 billion¹. The team consists of 230 industry professionals, including a team of 59 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 the leading wealth management business in the UK and internationally, helping people secure their financial future.
It has an adviser and customer offering spanning:
- Financial advice via the Intrinsic network
- Platform based wealth management products and services via Old Mutual Wealth in the UK and Old Mutual International globally
- Asset management solutions via Old Mutual Global Investors
- Discretionary investment management via Quilter Cheviot.
Old Mutual Wealth oversees £101 billion¹ in customer investments.
Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.
In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.
This press release is for journalists only and should not be relied upon by financial advisers or customers.
¹ as at 30 June 2015