OMGI develops Asian fund range
Old Mutual Asian Equity Fund to become income fund
Old Mutual Global Investors announces that, subject to shareholder approval, the US $212m¹ Old Mutual Asian Equity Fund (the “Fund”), managed by Josh Crabb, Head of Asian Equities, will evolve into an equity income generating strategy.
With a target date of 30 July 2015, the Fund will be renamed the Old Mutual Asian Equity Income Fund.
The Fund, which has been managed by Crabb since October 2014, is a sub-fund of the Dublin domiciled Old Mutual Global Investors Series plc umbrella fund. It is managed by Crabb and his team, who are based in Old Mutual Global Investors’ Hong Kong office. Since Josh took over as manager, the Fund has been in the first quartile of its peer group and has delivered 4.18% above the index (MSCI AC Asia Pacific ex Japan) ².
The Fund’s investment objective is evolving based on client demand and the change of name reflects this. The Fund aims to deliver a total return for investors, with a focus on income, as well as capital growth. It will invest in companies from across the market cap spectrum and will aim to pay an above market yield from across the economic cycle.
Old Mutual Global Investors believes this development will benefit clients as they will be able to access the region’s growing dividend stream as well as obtaining above average earnings per share growth. Studies show that the Asia Pacific region over a ten-year cumulative period has paid consistently higher dividends as a percentage of total returns than both the US and Europe, as well as delivering overall higher total shareholder returns³.
Crabb has an investment career spanning over 18 years, which includes a proven track record of managing Asian income funds. An award winning fund manager, he is currently AA rated by Citywire and has previously managed over US$670m in assets in an income fund.
Josh Crabb comments:
“As the worldwide population ages, the search for income, and in particular equity income, is at the top of the investment agenda. By evolving the Old Mutual Asian Equity Fund into an income fund we are aiming to meet the demands of those investors who look to receive an inflation-proofed income, without sacrificing their capital growth.
“The Asia Pacific region is one of the world’s largest growing markets in terms of dividends and growth; yet Asian equity income funds are vastly under-represented in terms of total assets in income producing strategies. We believe this fund can provide investors with an attractive alternative to cash and sovereign bonds which offer relatively little return.”
Warren Tonkinson, Global Head of Distribution at Old Mutual Global Investors comments:
“In this environment the demand for top performing income funds that also deliver growth is greater than ever. By adapting the Old Mutual Asian Equity Fund into an income fund, we are meeting the demands of clients for access to an income producing strategy run by an award winning manager with an outstanding track record.”
Vee Montebello, Head of PR and Internal Communications 020 7332 7687
Amelie Shepherd, Communications Executive 020 7332 8345
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 £22.5 billion5. The team consists of 219 industry professionals, including a team of 56 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 £102.3 billion5 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.
¹ US $ 212.36m as at 29 May 2015
² Morningstar as at 30 June 2015
³ UBS research, based on figures in USD as at 29 May 2015
AUM BlackRock Global Funds Asia Pacific Equity Income Fund as at 30 June 2014, Morningstar
5 as at 31 March 2015