OMGI launches European smaller companies fund

Old Mutual Global Investors has launched a new fund for former Ignis manager Ian Ormiston.

Mr Ormiston, who joined in October, will invest in 40 to 55 stocks within his Europe (ex UK) Smaller Companies fund, which will all have an equal weight in the portfolio.

The fund, registered in the UK and Ireland, will focus on companies with less than a €1bn (£791m) market cap.

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The launch comes as recently released IMA statistics show that investors are piling out of European equity funds. The European Smaller Companies sector saw its largest outflows ever in October of £288m.

But Richard Buxton, head of UK equities at OMGI, said Mr Ormiston had “an excellent track record”, including 16 years’ experience investing in European smaller companies.

“aller Companies Fund further extends our already outstanding equities capabilities.

“We believe that there is strong demand for this product from our global client base,” he added.