Old Mutual Global Investors changes Investment Adviser on Old Mutual Global Property Securities Fund
Mandate awarded to Northwood Securities
Old Mutual Global Investors (“OMGI”), part of Old Mutual Wealth, has today announced that it has awarded the mandate for the £59 million¹ Old Mutual Global Property Securities Fund (the “Fund”) to Northwood Securities LLC (“Northwood Securities”).
The Fund, which is currently sub-advised by Heitman Real Estate Securities LLC (“Heitman”), will be moved to Northwood Securities on 31 March 2016.
OMGI believes the change of investment adviser is in the best interest of clients, as it will allow the number of investments into the Fund to increase, therefore creating economies of scale for existing investors. This is because the leadership of Northwood Securities has been successful in raising assets in the UK, in light of its long track-record of investing in property-related securities.
The new fund manager, James E. Rehlaender, CEO of Northwood Securities, has over 20 years’ experience in managing global property portfolios, with a high-conviction unconstrained approach.
The objective of the Fund, to achieve long-term capital growth and income through investment in a globally diversified portfolio of property related securities, remains unchanged. However, it is expected that Northwood Securities’ investment strategy will involve lower turnover in the Fund’s holdings, which in turn should lead to lower transaction costs and improved after-tax returns.
OMGI is also making a change to the fee structure of the Fund, which will see the ongoing charges figure reduced by approximately 0.15%.²
Warren Tonkinson, Managing Director, Old Mutual Global Investors, comments:
“We are looking forward to working with Northwood Securities and James on the management of the Old Mutual Global Properties Securities Fund. Not only does James have an excellent track record of managing funds of this nature and a proven investment approach, the move also means we are able to offer investors a reduction in cost.
“I’d like to take this opportunity to thank Heitman for the management of the Fund up until now.”
James E. Rehlaender comments:
“Investing in property securities has proven very popular over the last few years, as clients look to profit from the ever-growing interest in the wider property market. I am pleased to be working with Old Mutual Global Investors to develop the Old Mutual Global Property Securities Fund and hope to add significant value for investors.”
Biography: James E. Rehlaender
James E. Rehlaender, Chief Executive Officer of Northwood Securities LLC, has been managing global real estate portfolios for over 20 years. As CEO of Northwood Securities, he is responsible for the day-to-day operations of Northwood Securities, focusing on portfolio management, overall investment strategy, and client engagement. Mr. Rehlaender started Northwood Securities in 2014 in partnership with Northwood Investors LLC which is a highly regarded private equity investment and management firm investing in the real estate sector in the US and Europe.
Prior to founding the firm, Mr. Rehlaender spent 14 years with EII Capital Management, Inc. (EII), where he was responsible for all non-US investments and was the co-portfolio manager for global portfolios. He was also on the board of EII’s direct property business and assisted in the development of this business. In 2012, 2013 and 2014, EII Capital Management won the prestigious Lipper Fund Award for Best International Real Estate Fund over five years, in addition to other awards since 2006. Before EII, Mr. Rehlaender established Global Property Advisors (GPA) together with a German insurance company, Munich Re, to focus on global real estate securities. GPA was ultimately merged into EII when Munich Re decided to exit the business.
After spending his early career financing companies in emerging markets, Mr. Rehlaender joined LaSalle Partners (now Jones Lang LaSalle) in 1981 where he was involved in the financing, development and management of a variety of property types – hotels, industrial, office, retail and student housing. Mr. Rehlaender was also instrumental in establishing the U.S. REIT business as well as their hotel group at LaSalle.
Mr. Rehlaender has lectured on property finance at Yale University, The Wharton School of the University of Pennsylvania, New York University and Northwestern University. He holds a B.A. degree from the College of William and Mary and an M.B.A. from the Kellogg School of Management at Northwestern University.
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 £22.2 billion³. 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 £98.7 billion³ 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 31 December 2015
² OCF on the A Share class reduced from 2.05% to 1.90%. OCF on the R share class reduced from 1.30% to 1.15%
³ as at 30 September 2015