OMGI prepares for launch of offshore Global Equity Income Fund


Old Mutual Global Investors announces its intention to launch the Old Mutual Global Equity Income Fund (“the Fund”) during the summer of 2015, subject to regulatory approval.  The Fund, which will be managed by Ian Heslop, Amadeo Alentorn and Mike Servent (“the investment team”),  will be a sub-fund of the Dublin domiciled Old Mutual Global Investors Series plc umbrella fund.  This product will be core to Old Mutual Global Investors’ UK and offshore client base.

The Fund’s objective will be to achieve a total return through a combination of income and capital growth. The Fund will be designed to deliver a total return by targeting dividend yield and capital growth through a highly diversified global equity portfolio.  The Fund will aim to provide monthly income targeted at 30% above the benchmark (MSCI All Countries World Index).  The investment team pursue a dynamic investment process, focused on stock selection through analysis of fundamental company data, but taking account of the macro environment and investor sentiment.  The unique approach will generally provide significant diversification from concentrated, style-biased global equity income funds.

Ian Heslop, Head of Global Equities, comments: “We are really excited about the forthcoming launch of our Global Equity Income Fund.  We believe that our unique approach to stock selection realises the appeal of being invested in a truly diversified fund.  Unlike some of our peers who remain heavily weighted towards certain sectors, we are able to seek out compelling investment opportunities wherever these exist globally, irrespective of sector, country or region.  We are also flexible so that the prevailing conditions and outlook can be incorporated in our process to ensure we have the greatest scope to deliver sustained outperformance.  We believe our investment approach should therefore deliver an above industry level of monthly income whilst continuing to deliver capital growth”

The Fund benefits from the investment team’s strong, proven performance-driven culture which leverages a dynamic process, including continuous monitoring of the whole market in order to capture value across the broadest spectrum of larger-capitalisation stocks. The investment team will offer a significantly different source of alpha in global equity markets, run from the same platform as the multiple award winning Old Mutual Global Equity Fund, Old Mutual Global Equity Absolute Return Fund and the Old Mutual North American Equity Fund.

Warren Tonkinson, Head of Global Distribution, adds: “This is another important development for Old Mutual Global Investors, one that focuses on meeting the needs of our clients.  From talking to investors it is very apparent that income generating strategies continue to be in demand and we have received a number of client requests for our highly respected, award-winning global equities team to launch a global equity income strategy. The investment performance track record this team, which consists of Ian, Amadeo and Mike, has delivered for investors in their current funds is outstanding.  We are confident that the new fund will be equally successful.”

Old Mutual Global Investors is currently reviewing the UK Domiciled Old Mutual Global Equity Income Fund which is sub-advised by O’Shaughnessy Asset Management, LLC.

 

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Media Contacts:

Vee Montebello, Head of PR and Internal Communications       020 7 332 7687

Amelie Shepherd, Communications Executive                             020 7 332 8345

 

Notes to Editors:

The Investment Team:

The Fund will be managed by three fund managers.  Ian Heslop, the lead manager, has a PhD in medicinal chemistry and over 18 years’ investment experience.  Amadeo Alentorn has a PhD in computational finance and Mike Servent holds a BA in physics from Oxford.  The Fund managers are supported by two analysts, Yuangao Liu and Matus Mrazik, and Investment Director Justin Wells. The team have been recognised for their strong performance at many industry awards, including wining the Investment Week Fund Manager of the Year awards 2014 for the Old Mutual North American Equity Fund in the North American category, and for the Old Mutual Global Equity Fund in the Global Equity and Income category. 

 

The Investment Team’s Philosophy: 

The fund managers believe that markets are not fully efficient and that stock prices often diverge from their fundamental value due to investors’ behavioural biases.

The investment process exploits these biases in a systematic and efficient way, resulting in outperformance driven principally by bottom-up stock selection.  The team also believes that performance-orientated investment strategy should also be flexible, so that prevailing conditions and outlook can be incorporated, thus ensuring the greater scope for sustained outperformance.

 

The Investment Team’s Performance:




 

Cumulative Performance to

31 May 2015

 

Funds

1 Year

3 Years

5 years

 
 

OM Global Equity Fund

MSCI Benchmark

IMA Global Sector Average

20.6%
16.2%
13.7%

92.4%
61.9%
53.1%

116.7%
74.2%
57.9%

 

OM Global Equity Absolute Return Fund

(£ A Share Class)

1 month LIBOR USD Benchmark 

2.1%


10.1%

22.6%


1.4%

41.2%


-4.3%

 

 

OM North American Equity Fund

MSCI North America Benchmark

IMA North America Sector Average

26.4%
20.9%
21.7%

85.8%
65.9%
67.3%

124.3%
90.0%
83.7%

 
           

Source: Factset © 2013 Morningstar.  All rights reserved.  For more information on the Fund please see factsheets as www.omglobalinvestors.com

 

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 billion¹.  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 billion¹ 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.

¹as at 31 March 2015