OLD MUTUAL GLOBAL INVESTORS INTRODUCES TEAM BASED APPROACH TO FIXED INCOME RANGE


Old Mutual Global Investors announces the introduction of a team based approach to managing its fixed income range of funds.  This change mirrors the approach utilised by Russ Oxley and his team, who joined the company earlier this year.  This development has also resulted in promotion for some members of the team, which aligns to Old Mutual Global Investors’ desire to offer career growth opportunities.

With the arrival of Russ Oxley and the Rates and LDI Team (initially titled Fixed Income Absolute Return Team) Old Mutual Global Investors now has a powerful 20-strong fixed income capability in two distinct teams.  The two teams (Absolute Return/Rates and LDI – headed by Russ Oxley and Total/Relative Return – headed by Christine Johnson) will harness the skill set of each other’s experience continually, there will be synergies but the end result will be independent.  These two teams will work collaboratively, sharing tools and discussing views.  However, as there is no fixed income house view, each team will manage funds in line with their own investment process.

The following will take effect from 1 May 2015:

Funds

Managers

AUM millions

as at 280215

Old Mutual Global Strategic Bond¹

John Peta and Christine Johnson

£580

Old Mutual Global Strategic Bond (Dublin)¹

John Peta and Christine Johnson

$140

Old Mutual Managed¹

Lee Freeman-Shor and Anthony Gillham

£190

Old Mutual Global Bond ¹

Hinesh Patel and Christine Johnson

$20

Old Mutual Corporate Bond ²

Christine Johnson and  Lloyd Harris

£550

Old Mutual Monthly Income Bond Fund²

Christine Johnson and Bastian Wagner           

£165

Old Mutual Monthly Income High Yield Bond ³

Christine Johnson and Bastian Wagner

$80

Old Mutual Local Currency Emerging Market Debt ³

John Peta (plus support to be appointed)

$150

¹Currently managed by Stewart Cowley

² There is no other change to the fund except for the addition of named co-manager

³ There is no change to the fund at all

Stewart Cowley will leave Old Mutual Global Investors at the end of June 2015. Until that time, Stewart will support the business in the transitioning of the funds he has actively managed to the newly named teams stated above.

Julian Ide, CEO at Old Mutual Global Investors comments: “I am grateful to Stewart for the guidance and stewardship he has given to Old Mutual over the last six years and for the commitment he invested in building our powerful fixed income capability.  He has made a vital contribution to our management teams over many years, and particularly since I joined the company.  Stewart leaves with our gratitude and best wishes.

“I believe that we now have one of the industry’s most powerful fixed income capabilities led by two highly experienced fixed income leaders, Christine and Russ.  The changes we have made to our funds will benefit our clients in the future. I am also pleased that we have been able to offer further career growth opportunities to Bastian, Hinesh and Lloyd.”

Stewart Cowley adds: I am immensely proud of what we have achieved at OMAM and Old Mutual Global Investors over the past six years. Bringing this group of people together has been one of the most important things I have done in my career. Achieving this whilst guiding clients through some of the most difficult market conditions I have seen in my time as a fund manager gives me a real sense of achievement. I wish Julian Ide and all the Old MutuaI Global Investors’ family well in the future.”

Old Mutual Global Strategic Bond Fund:

The shift to a team-based approach enables this Fund to benefit from the knowledge and experience of Old Mutual Global Investors’ Total/Relative Return Fixed Income Team, as well the business’s broader fixed income capability.  The new managers, John Peta and Christine Johnson, offer a marriage of two skill sets in one strategy.    John brings a wealth experience from managing global fixed income and emerging market debt strategies for over 28 years.   Christine’s strengths are running total return strategies - historically across the full credit and government bond spectrum. These achievements have been acknowledged and reinforced with the launch of the Old Mutual Monthly Income High Yield Bond Fund last year. This fund has the ability to go +9.5 to -3 years duration – covering the full spectrum of corporate credit.

The key objective of the Global Strategic Bond Fund will remain the same – to protect and grow the share price. It will continue to utilise the parameters of the mandate and invest in an array of varying asset classes. The Global Strategic Bond Fund will retain in full the duration strategy that has been evident in the past. Christine Johnson has run the Old Mutual Monthly Income Bond Fund since 2010, a period of huge volatility in markets. This fund, like the Old Mutual Global Strategic Bond Fund, has wide parameters -8 years - +9.5 years duration and Christine has used these successfully going at one point -5 years duration. Our dedication is continually to provide a fund that can be negatively correlated with conventional government bonds.

The Old Mutual Global Strategic Bond Fund is designed for clients whose cost of capital is bonds rather than cash. The current Total/Relative Return Fixed Income Team already runs three of the four strategies namely credit, foreign exchange and interest rate management. Under John Peta’s stewardship Old Mutual Global Investors now has the additional capability of Emerging Markets Sovereign Debt and Emerging Markets Currencies. The enhancements to Old Mutual Global Strategic Bond Fund will build on the existing strengths of the fixed income capability in running diversified total return strategies.

Old Mutual Managed Fund:

Old Mutual Global Investors believes that Anthony Gillham and Lee Freeman-Shor, working together as Co-Managers, are a more natural fit to manage the Old Mutual Managed Fund as this is a fettered multi asset fund.  Both offer vast multi- experience, Lee brings significant equity experience from managing €318 million Old Mutual European Best Ideas Fund and £395 million Old Mutual Global Best Ideas Fund, and Anthony brings significant fixed income experience from managing the £134 million Old Mutual Voyager Strategic Bond Fund.

Old Mutual Global Bond Fund:

There will be no change to the investment objectives of the Fund. Hinesh Patel, who has supported Stewart Cowley on this Fund over the last six years, will become Co-Manager alongside Christine Johnson.   Hinesh has worked in the fixed income industry for nine years, six of which have been at Old Mutual Global Investors.

Old Mutual Corporate Bond Fund:

There will be no change to the investment objectives of this Fund and Christine Johnson will continue as Lead Manager.  Lloyd Harris will become Co-Manager of this Fund.  Lloyd has worked in the fixed income industry for 13 years.  He joined Old Mutual Global Investors in January 2012 as a senior credit analyst focusing on the financial sector.

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Media Contacts:

Vee Montebello, Head of PR and Internal Communications                                      020 7332 7687

Amelie Shepherd, PR Executive                                                                       020 7332 8345

Notes to Editors:

Fund Manager Biographies

Lee Freeman-Shor joined Old Mutual in 2005 with a wealth of experience having previously worked in Private Client Investment Management as an Investment Development Manager with Winterthur Life and, more recently with Schroder Investment Management. Lee graduated from Nottingham Law School with an LLB (Hons) degree. He holds the Investment Management Certificate.

Anthony Gillham joined Old Mutual in 2000 and is a fixed income portfolio manager within our multi-manager team. In 2007, Anthony became a portfolio manager focussing on global fixed income having been dedicated to qualitative manager research in fixed income since 2006 and quantitative manager research in fixed income prior to that. Anthony is a CFA Charterholder and holds the Investment Management Certificate.

Lloyd Harris, Senior Credit Analyst, joined OMGI in January 2012 as a senior credit analyst focusing on the financial sector. He was previously at Cutwater Asset Management (2007- 2011), initially as an asset-backed CP/ MTN trader, then as a European financials credit analyst. Prior to this, he worked in structured capital markets at Deutsche Bank (2002-2007), after completing the firm’s graduate training program. Lloyd graduated from University of Bristol with a BA (Hons) in Electronics and Telecommunications Engineering (2001), and is a part-qualified management accountant.

Christine Johnson is Head of Fixed Income at OMGI.  Christine joined Old Mutual in September 2010 from Halbis Capital Management (formerly HSBC Asset Management), where she was a senior fixed income fund manager, initially focusing on sterling credit before also managing global portfolios. She moved to Halbis from Investec Asset Management, which she joined as a high yield credit analyst, becoming a high yield fixed income fund manager a year later. She began her asset management career as a credit analyst at Royal & Sun Alliance Investment Management, having previously been a relationship manager at NatWest Bank. Christine has a BA in Economics from Manchester University.

Hinesh Patel, Assistant Fund Manager/Macro Strategist, joined OMGI in 2009, initially working within investment operations before transferring to his current role in 2010. He began his financial career at Lehman Brothers International, where he completed the graduate programme and became a senior operations analyst in the global investment management division (2006-08). Hinesh has a MEng in Mechanical Engineering from Brunel University (2006), holds the IMC and is a CFA Charterholder.

John Peta joined OMGI as Head of Emerging Market Debt in March 2015.  John brings a wealth of industry knowledge and experience to the business. John previously worked at Threadneedle Asset Management, London where he was Fund Manager, Head of Emerging Market Debt since 2012. John started his career in Fixed Income in 1987 at Merrill Lynch, Seattle, before joining Chancellor LGT Asset Management, San Francisco in 1994.  John began specialising in managing dedicated emerging market (external and local) debt assets when he joined Standish Mellon Asset Management, Boston in 1997, moving to Acadian Asset Management, Boston in 2007 to assist in the launch of an emerging market local currency debt product.

Bastian Wagner, a portfolio manager for Fixed Income & Macro, joined OMGI in May 2010 from Eaton Vance International in London, where he was a credit investment analyst covering global high yield bonds and leveraged loans. He previously worked as an analyst in the equities research department of WestLB in Germany covering consumer and retail. He subsequently moved to the high yield bond management at WestLB Mellon. Bastian has a BA in economics from the University of Duisburg-Essen and a Diplom Kaufmann specialising in Finance, Accounting and Economics from the University of Essen, Germany.

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £21 billion⁴.  The team consists of 214 industry professionals, including a team of 51 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 retail investment business in the UK and internationally that aims to help people secure their financial future.

It has an adviser and customer offering spanning: 

  • Financial advice via the Intrinsic network and independent financial advisers
  • 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 currently oversees £82.5⁴ billion in customer investments. 

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 16 million customers across the world and has a total of £319.4 billion⁴ assets under management.

⁴as at 31 December 2014