Old Mutual Global Investors is continuting its transition of Skandia funds under the Old Mutual umbrella.
The Old Mutual US Dividend fund – which has assets under management of approximately $210m (£136m) – is the renamed result of a merger of the Skandia US Value fund into the US All Cap Value fund, with a revised investment objective of seeking asset growth by emphasising investment in large capitalisation US stocks.
Ray Nixon is lead portfolio manager of the Dublin-domiciled fund, which seeks investment in stocks with dividend characteristics that appear to be undervalued relative to their market value.
Key points:
• The fund aims to achieve returns superior to the Russell 1000 Value Index and S&P 500 Index benchmarks, while taking below-average risks.
• It also aims to generate returns from a combination of dividend yield, dividend growth and capital appreciation.
• Minimum investment of £1000.
• Annual management charge of 1.5 per cent.
• Quarterly distribution of income yield.
IFA Verdict
Carl Melvin, managing director of Paisley-based Affluent Financial Planning, said: “It is no surprise that Old Mutual has felt the need to merge funds. However, a change of focus or mandate needs to be consistent with the previous fund’s risk rating and the client’s appetite for risk. In this case, the change in objective should bring less risk by investing in large-cap stocks.”
