Subject to regulatory approval, the fund will operate a sub-fund of the Dublin-domiciled Old Mutual Global Investors Series and will be managed by an investment team lead by head of global equities Ian Heslop.
Heslop said that unlike some of its peers who remain heavily weighted towards certain sectors, the new fund will seek out “compelling investment opportunities” wherever they exist globally, regardless of their sector.
“We are also flexible so that the prevailing condition and outlook can be incorporated in our process to ensure we have the greatest scope to deliver sustained outperformance,” he added. “We believe our investment approach should therefore deliver an above industry level of monthly income whilst continuing to deliver capital growth.”
The fund, which is also available to onshore clients, will aim to achieve total return through a combination of income and capital growth, and will target dividend yield and capital growth through a diversified global equity portfolio.
It hopes to achieve monthly income targeted at 30% above the MSCI All Countries World Index.
OMGI said the investment team will analyse fundamental company data, macro environment and investor sentiment when selecting stocks.
It said the team will add a “significantly different” source of alpha in global equity markets, using the same platform as it Global Equity Fund, Global Equity Absolute Return Fund and North American Equity Fund.”
Warren Tonkinson, head of global distribution, added that the fund’s launch has arisen from investor demand for income generating strategies.
“The investment performance track record this team has delivered for investors in their current funds is outstanding,” he said. “We are confident that the new fund will be equally successful.”
Old Mutual Global Investors was launched in August 2012 and has assets under management of £22.5bn.
Fund manager focus
Heslop’s investment team, which also features Amadeo Alentron and Mike Servent, also run the company’s Global Equity Absolute Return Fund.
The Dublin-domiciled product, launched in May 2013, contains $3.6bn and has returned 5.14% over the last year.
Over the last year, the absolute return fund ranked sixth out of 140 funds in the absolute return sector.
Its top sector exposures are in healthcare (9.8%), telecom, media & technology (8.4%) and basic material (2.2%), while its to holdings are in Skyworks Solutions (1.1%), Largan Precision Company (1.1%), and Actelion (1.1%).
Click here for a factsheet about the fund.
Three year performance of Old Mutual Global Equity Absolute Return Fund