InvestmentsJul 3 2015

Former Old Mutual bond manager Cowley launches business

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Former Old Mutual bond manager Cowley launches business

Ex-Old Mutual Global Investors bond manager Stewart Cowley has launched an advisory service for financial advisers and fund groups - a model he said could reduce fund management fees.

Northfield Strategic Advisors will “provide independent asset allocation and investment policy advice to fund management companies, fund boards, IFA networks and other interested parties.”

The firm will also offer portfolio management services to “interested groups” on an advisory basis.

Mr Cowley suggested the approach of using an investment expert to help with asset allocation could help groups reduce fees.

“Total expense ratios are still over 1 per cent for many funds,” he said.

“The advisory model could reduce costs well below that, helping clients to achieve their aims whilst providing fund management companies the ability to switch managers without the HR problems associated with managing underperforming employees,” Mr Cowley said.

“There are a lot of costs you can take out of fund management companies that don’t belong there.

“I don’t want a salary. I don’t want equity in your company. I don’t want bonuses. I don’t want pension fund contributions or healthcare. There are much simpler remuneration policies that can be used which makes the relationship between independent investment views, fund management, the fund owner and the end client much cleaner and transparent.”

Mr Cowley joined Old Mutual in June 2009. He had previously worked at Newton Asset Management as head of fixed income and manager of the Newton International Bond and BNY Mellon Global Bond funds.

He left Old Mutual Global Investors last month, a move which came after the arrival of Russ Oxley’s absolute return fixed income team from Ignis Asset Management.