Old Mutual Global Investors insources US dividend fund


  • Global equities team take on management
  • Renamed Old Mutual US Equity Income Fund

Old Mutual Global Investors (OMGI), part of Old Mutual Wealth, has made a number of changes to the US$431.6m¹ Old Mutual US Dividend Fund (the “Fund”), effective today.

The Fund, which has previously been managed by Barrow, Hanley, Mewhinney & Strauss, LLC (“Barrow Hanley”), has been insourced to OMGI’s award-winning global equities team, headed by Ian Heslop. 

The Fund’s objective has been amended, removing the explicit limitation to investment in larger companies which have dividend characteristics and appear undervalued relative to their market.  Going forward, the Fund’s objective will be to seek to achieve asset growth through investment in a diversified portfolio of equity and equity-related securities.

OMGI believes that the ability to invest in companies without dividend characteristics makes it possible for the fund manager to generate a better balance of risk and return, while still creating a portfolio that can have a higher dividend yield than the market. The firm believes that the added flexibility to target capital gains as well as dividend yields means that the Fund should be able to generate a better total return, over time. As a result of this change, the Fund has been  renamed the Old Mutual US Equity Income Fund, better reflecting the flexible nature of its investment strategy.

OMGI’s global equity funds are managed by Ian Heslop, Amadeo Alentorn and Mike Servent. They have worked together for over 12 years and manage in excess of US$15bn² in systematic equity funds. The team leverages a unique investment process, focused on stock selection across sectors through analysis of fundamental company data, while also taking into account the macro environment and investor sentiment. This approach aims to provide diversified portfolios that avoid a rigid bias to a single investment style, such as value or growth. The team have amassed over 30 awards since 2014.

Warren Tonkinson, managing director, OMGI, comments:

“OMGI has one of the best global equities teams in the industry, with a stellar performance track record across the funds they manage. We are confident that investors in the Old Mutual US Equity Income Fund will benefit from the team’s unique and proven investment approach, as well as the opportunity for the Fund to generate a positive total return.

“I’d like to thank Barrow Hanley for managing the Fund until now.”

Ian Heslop, head of global equities, OMGI, added:

“The US equity market has continued to rise, reaching new highs in recent times. With many now fearing that a sell-off is imminent, there is understandably concern over investing in the US. However, we believe this environment presents an excellent opportunity for active investors to prove their worth, looking beyond the large, over-valued stocks to identity the best investment opportunities.

“Our unique systematic approach allows us to read markets, rather than trying to predict their direction of travel. We aim to understand the current market environment and identify the investment opportunities that are most appropriate, rather than being restricted by a bias towards a particular style.

“Utilising this approach, and the flexibility to invest in companies offering attractive capital gains as well as dividend growth, we believe we will meet investor demand for a diversified US equity income strategy that generates a long-term total return.”