Old Mutual to merge away UK Strategic Best Ideas

Old Mutual Global Investors (OMGI) is set to merge Lee Freeman-Shor’s £31.1m UK Strategic Best Ideas fund into Simon Murphy’s UK Opportunities fund.

The changes, passed by investors in a vote last week, will involve the Old Mutual UK Opportunities fund, launched in October 2011, being re-domiciled from Ireland to the UK.

Both funds have the ability to employ short selling, a method of profiting when share prices fall.

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The UK Strategic Best Ideas fund is made up of five 10-stock portfolios run by external managers. OMGI said moving from a multi-manager to a single manager approach would reduce costs for investors.

Mr Freeman-Shor will continue to run two similar products, the Global Best Ideas and European Best Ideas funds.

The merger is set to be completed on August 9.

The UK Strategic Global Best Ideas fund underperformed the IMA UK All Companies sector average return in the five years to July 31 with a 45.8 per cent return, according to FE Analyitcs. Mr Murphy’s UK Opportunities fund has gained 17.5 per cent since launch in 2011.