Fixed IncomeApr 20 2015

Stewart Cowley to leave Old Mutual after six years

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Stewart Cowley to leave Old Mutual after six years

Bond manager Stewart Cowley is set to leave Old Mutual Global Investors (OMGI) at the end of June after the group announced an overhaul in the management of its fixed income funds.

From May 1, Mr Cowley’s Global Strategic Bond fund will be run by John Peta and Christine Johnson as OMGI focuses on a team approach to managing its fixed income range.

OMGI has split its fixed income department into two teams, absolute return/rates and LDI, which will be headed by recent hire Russ Oxley and the total/relative return team, which will be headed by Ms Johnson.

Mr Cowley has been with the group for the past six years. From June 2009, when he started at Old Mutual, to end of March, Mr Cowley has returned 65.3 per cent, compared to the peer group average of 51.5 per cent, according to data from FE Analytics.

However, the £580m Global Strategic Bond fund struggled recently, losing 2.5 per cent in 2014, compared to the IA Global Bond sector’s average return of 4.4 per cent, according to the fund’s factsheet.

The size of Mr Cowley’s fund has also fallen as performance has become challenged.

The fund’s size has dropped about 37.4 per cent in the past 15 months, according to data from FE Analytics. It was £896m in size in January last year but was down to £561m at the end of March.

OMGI said the Global Strategic Bond fund’s investment strategy would remain unchanged as it passed to Hinesh Patel and Ms Johnson.

Lloyd Harris will become co-manager of the Old Mutual Corporate Bond fund with Ms Johnson.

FundsManagersAUM (m) as of February 28
Old Mutual Global Strategic BondJohn Peta and Christine Johnson£580
Old Mutual Global Strategic Bond (Dublin)John Peta and Christine Johnson$140
Old Mutual ManagedLee Freeman-Shor and Anthony Gillham£190
Old Mutual Global BondHinesh Patel and Christine Johnson$20
Old Mutual Corporate BondChristine Johnson and Lloyd Harris£550
Old Mutual Monthly Income BondChristine Johnson and Bastian Wagner£165
Old Mutual Monthly Income High Yield BondChristine Johnson and Bastian Wagner$80
Old Mutual Local Currency Emerging Market DebtJohn Peta (plus support to be appointed)$150