Old Mutual Global Investors’ new liquid alternatives strategy surpasses £500 million in assets two months since launch
Old Mutual Global Investors, part of Old Mutual Wealth, announces that assets in the Old Mutual Absolute Return Government Bond Strategy (‘the Strategy’), managed by Russ Oxley and his team, have exceeded £500 million¹ (US$755m). This is an outstanding achievement as the Strategy was only launched on October 7 2015.
Russ Oxley, Lead Fund Manager comments: “I am delighted that our six-strong team have got off to such a strong start at Old Mutual Global Investors. It is also very pleasing to have received over £500 million of assets in such a short period of time as this demonstrates that investors continue to support our strategy. We now look forward to building on our successful three and half years’ managing this type of strategy.”
Warren Tonkinson, Managing Director of Old Mutual Global Investors comments:
"We are very happy with the response of the market to the launch of our new liquid alternatives strategy and the range of clients that have invested. Indeed, our expectations have been surpassed. We have a large number of prospective clients who are at advanced stages of due diligence on the strategy and we expect to see continued strong inflows over the coming weeks and months."
Russ Oxley and the Rates and LDI team joined Old Mutual Global Investors from Ignis Asset Management earlier this year. Russ, the Lead Manager of the Strategy, and Co-Managers Adam Purzitsky and Paul Shanta, are supported in their portfolio management and trading by Huw Davies and Jin Wong, and in systems development by Josh Heming.
The objective of the Strategy 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. The UCITS fund is managed to a volatility target of 4%-6%, with expected annualised returns of cash plus 5%. The QIAIF, which also provides Investors with Daily Liquidity, is managed to a volatility target of 7%-9%, with expected annualised returns of Cash +8%. The Strategy 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 in developed markets.
The low correlation of the strategy 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 strategy is also expected to exhibit low correlation with other absolute return investment strategies (including global macro hedge funds, fixed income, equity and multi-asset based strategies), making it a potentially attractive addition to a 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.
Amelie Shepherd 020 7332 8345
Vee Montebello 020 7332 7687
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 billion². 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 billion² 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.
¹As at 04 December 2015
² As at 30 September 2015