Old Mutual Global Investors has fired Heitman Real Estate Securities as the manager of its Global Property Securities fund.
OMGI will appoint Northwood Securities as the sub-adviser on the £59m fund from 31 March, with a view to increasing the assets in the fund. James Rehlaender, chief executive of Northwood, will manage the fund.
The charges on the fund will also be reduced, with the ongoing charges figure on the A share class reducing from 2.05 per cent to 1.9 per cent.
“OMGI believes the change of investment adviser is in the best interest of clients, as it will allow the number of investments into the fund to increase, therefore creating economies of scale for existing investors,” says a statement from the asset manager.
“This is because the leadership of Northwood Securities has been successful in raising assets in the UK, in light of its long track-record of investing in property-related securities.”
While OMGI says the investment policy of the fund will not change, it is expected there will be lower turnover on the fund, meaning lower costs.
Warren Tonkinson, managing director at OMGI, says: “Not only does James have an excellent track record of managing funds of this nature and a proven investment approach, the move also means we are able to offer investors a reduction in cost.”