Old Mutual Global Investors (OMGI) is to launch an offshore Old Mutual Global Equity Income fund in the summer, subject to regulatory approval.
Domiciled in Dublin the fund will be available to both UK and offshore clients and is to be managed by Ian Heslop, Amadeo Alentorn and Mike Servent, the team that also manage the Old Mutual Global Equity, Old Mutual Global Equity Absolute Return and Old Mutual North American Equity funds.
This is the company’s first foray into the global equity income market, as the status of the separate onshore Old Mutual Global Equity Income fund run by O’Shaughnessy Asset Management is currently being reviewed.
Warren Tonkinson, head of global distribution, said: “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 global equities team to launch a global equity income strategy.”
OMGI stated the new fund will aim to provide monthly income targeted at 30 per cent above the benchmark MSCI All Countries World Index, through targeting dividend yield and capital growth in a globally diversified portfolio.
The team focuses on stock selection through analysis of fundamental company data, but also takes into account the macro environment and investor sentiment. OMGI added this approach “will generally provide significant diversification from concentrated, style-biased global equity income funds”.
Mr Heslop, head of global equities, said: “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.”
