Old Mutual Global Investors is bringing the management of the Old Mutual Global Emerging Markets fund in-house.
The $244.6m (£193.24) fund – currently managed by Fisher Asset Management – will be brought in-house on 21 July 2017 subject to regulatory approval.
OMGI has formed a new global emerging markets equity desk to run the portfolio, having recruited Nick Payne to head up the new team as well as Salman Siddiqui and Liz Fernandes.
The trio have worked together at Nomura Asset Management for three years, most recently on the Nomura Global Emerging Markets Equity fund. Nick will report to OMGI’s CEO, Richard Buxton.
The fund’s objective will remain unchanged, although the number of holdings will be reduced to around 30 to 40 stocks in keeping with a concentrated portfolio. The team will use a fundamental research-based approach with a long-term outlook incorporating a macro view.
The fund’s annual management fee is expected to be reduced.
Buxton says: “We are thrilled that Nick, Salman and Liz are joining OMGI to establish our global emerging markets desk. Having worked together for a number of years, they have developed a proven investment process, achieving returns from an asset class that is often underrepresented in investors’ portfolios.
“I’d like to thank Fisher Asset Management for their management of the fund over the last six years.”
Payne adds: “With over four decades of experience in emerging market equities between us, we have experienced multiple market cycles.
“After five years of negative emerging market returns, driven by poor corporate earnings, we believe we have now seen emerging market equities bottom out. With signs of attractive valuations, and renewed growth in corporate profitability, we perceive significant opportunities to generate positive returns from emerging market equities. I am confident that, as a team, we will add value for OMGI’s clients.”