Old Mutual Global Investors has revamped the $431.6m Old Mutual US Dividend fund, bringing the mandate in house, amending the objective and renaming it.
The fund will now be called the Old Mutual US Equity Income fund to reflect “the flexible nature of its investment strategy”.
Previously managed by Barrow, Hanley, Mewhinney & Strauss, the fund will now be run by the global equities team, headed by Ian Heslop and supported by Amadeo Alentorn and Mike Servent. The team run over $15bn in systematic equity funds.
Under the fund’s new objective, the requirement to invest in undervalued, dividend-yielding large caps has been removed, allowing the team to target capital growth by investing in a diversified portfolio of equity and equity-related securities.
OMGI says removing the focus on companies’ dividend characteristics will allow for a better balance of risk and return and should mean the fund will generate a superior total return.
Warren Tonkinson, managing director, says: “We are confident that investors in the Old Mutual US Equity Income fund will benefit from the team’s unique and proven investment approach, as well as the opportunity for the fund to generate a positive total return.”
Ian Heslop, head of global equities, adds: “The US equity market has continued to rise, reaching new highs in recent times. With many now fearing that a sell-off is imminent, there is understandably concern over investing in the US. However, we believe this environment presents an excellent opportunity for active investors to prove their worth, looking beyond the large, over-valued stocks to identity the best investment opportunities.”