Old Mutual Global Investors to launch a UK mid and small cap liquid alternatives fund


The Old Mutual UK Specialist Equity Fund

A long/short UCITS fund mirroring the successful 13 year old Cayman domiciled fund

Old Mutual Global Investors (“OMGI”), part of Old Mutual Wealth, has today announced that it intends to launch the Old Mutual UK Specialist Equity Fund (the “Fund”), domiciled in Ireland, on 28 April 2016.  The Fund will be registered for sale in a range of European countries and Singapore, subject to regulatory approval.

Managed by Tim Service, Fund Manager, UK Equities and Deputy Fund Manager, Luke Kerr, the investment objective of the Fund is to achieve capital appreciation by taking long and short positions in UK equities, primarily outside the FTSE 100 Index, maintaining low net exposure to underlying equity markets. The Fund aims to deliver absolute returns in all market conditions.

The Fund will mirror the strategy of the Cayman domiciled vehicle which has a long track record dating back to 2003. Since inception, the Cayman vehicle has delivered an annualised return of 7.5%1 after fees, and 8.7%1 over the past three years, with a largely market neutral approach. 

The Fund will be well diversified, holding a range of between 80 and 110 long and short positions. The Fund will typically have a net exposure of between -20% and +20% of NAV, making use of individual single-stock short positions and index baskets to control the net exposure to equity markets.

Tim and Luke will be supported by the highly rated and award winning UK small and mid-cap equities team. The team will use a combination of top-down macroeconomic analysis, and bottom-up stock-picking to structure the Fund. The team believe the small and midcap universe of companies is less well researched than large companies, which should provide more opportunities to generate returns for the Fund.

Tim Service, Fund Manager, commented:

“Market volatility has increased in recent months, highlighting the potential value of alternative investments within a portfolio.  The UK mid and small cap team has built a long and successful track record. This fund offers access to this expertise, with low net exposure to underlying equity markets, and the ability to deliver a return from falling as well as rising individual share prices.

“We work very closely with OMGI’s award winning UK equity team, whose in-depth knowledge of UK companies is second to none. The results can be seen in the low volatility and steady returns of this strategy over 13 years. The maximum drawdown of the Cayman strategy since 2003 has been just 4.1%1, and the sterling asset class has never had a down year. The new UCITs version will be run on the same basis that I have used since taking over the fund in 2014.”

Warren Tonkinson, Managing Director, Old Mutual Global Investors. added: 

“OMGI has one of the most successful UK small and mid-cap teams. With a proven track record in managing a low net equity long short investment process for 13 years, a number of clients have shown interest in wanting to access the investment approach in a UCITs wrapper.  This launch demonstrates further our commitment to providing clients with investment solutions most suitable for them.”

OMGI manages US$6.3 billion of assets under management in Alternatives funds2.

-Ends-

Notes to editors:

FOR FURTHER INFORMATION (JOURNALISTS ONLY)

Kimberley Robinson, Head of PR & Internal Communications                                               

020 7332 7687                                      

kimberley.robinson@omglobalinvestors.com                                    

 

Biographies

Tim Service

Tim joined OMGI in May 2007 from JP Morgan, where he was an analyst covering the European food producers and home & personal care sectors (2004-07).  Prior to this he was an analyst at ABN Amro, covering the food retail sector (2002-04).  Tim has a BA in Modern History from Oxford University (2002) and is a CFA Charterholder.

Luke Kerr

Luke joined OMGI in 2001, and manages the Old Mutual UK Dynamic Equity Fund and Old Mutual UK Specialist Equity Fund as part of OMGI's highly rated and multi-award winning UK Mid & Small Cap team.  He was previously a consultant at Arthur Andersen (1997-2001).  Luke has a BA in Chemistry from Oxford University, is ACA qualified and is a CFA Charterholder.

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £24.7 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 £104.4 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 2015, the Group had £303.8 billion of funds under management.

This press release is for journalists only and should not be relied upon by financial advisers or customers.

¹ Source: OMGI as at 29 February 2016

2 As at 31 December 2015