Investments  

Old Mutual imposes limit on UK Dynamic Equity capacity

Hargreaves Lansdown has removed the £269.3m Old Mutual UK Dynamic Equity fund from its Wealth 150 list after Old Mutual Global Investors (OMGI) started “managing capacity” on the product.

The fund, managed by Luke Kerr, has had a limit of 120m units in place since launch and has hit that capacity limit, but a spokesperson for OMGI said the fund was not hard or soft-closed.

Prospective investors are instead being placed on a waiting list and can buy units in the fund when current investors have sold.

Article continues after advert

In a letter sent to advisers, OMGI said: “We anticipate that natural turnover will lead to further units becoming available over time, and we will look to manage this on a fair basis, allocating these first to unfulfilled orders and then to a pipeline of interested investors.”

Due to the investment restrictions now on the fund, Hargreaves has removed the fund from its recommended list even though analyst Richard Troue said he had been “impressed” by the fund’s performance since it launched in July 2009.

Mr Troue added the action to manage capacity was a “positive move for existing investors”.

Since launch the UK Dynamic fund has gained 142.1 per cent, compared with its FTSE 250 index benchmark’s return of 131.8 per cent, according to FE Analytics.