View more on these topics

OMGI shuts global equity income fund


Old Mutual Global Investors has shut the onshore Global Equity Income Fund, while launching an offshore version with a trio of managers.

The onshore Old Mutual Global Equity Income Fund, sub-advised by O’Shaughnessy Asset Management, has just £38.8m in assets after seeing a “gradual decline in assets over the last few years”, meaning the costs of running the fund are too high, says Old Mutual.

It says: “Given the small size of this fund and the associated operating costs, Old Mutual Global Investors believes that it is no longer in the best interest of clients to continue running this fund and that investors will be best served by having their proceeds returned in order for them to reinvest in other products.”

The fund has consistently underperformed its sector, returning 9.45 per cent over three years compared to the Global Equity Income sector return of 36.41 per cent. Over one year it has lost 14.95 per cent, compared to a 6.25 per cent gain for the sector average.

“We believe our decision to close the onshore Old Mutual Global Equity Income Fund is in the best interest of investors. We would like to thank O’Shaughnessy for their management of the fund,” says newly-appointed managing director of OMGI Warren Tonkinson.

However, OMGI has launched an offshore version of the Old Mutual Global Equity Income Fund, to be managed by Ian Heslop, Amadeo Alentorn and Mike Servent. It first revealed plans to launch the fund last month.

The new fund will target both income and capital growth, aiming for monthly income 30 per cent higher than the benchmark MSCI All Countries World Index.

“We’ve experienced a high level of client demand for an offshore global equity income fund managed by Ian Heslop and his team,” Tonkinson adds.

OMGI said last month it was reviewing the onshore Old Mutual Global Equity Income Fund.


FCA logo new 3 620x430

High risk investments without advice: What went wrong at TailorMade

Collapsed advice firm TailorMade Independent recommended that clients transfer pension funds worth up to £400,000 into unregulated Sipp investments without advice. Yesterday the FCA fined former TailorMade Independent director Robert Shaw £165,900 and banned him from holding senior financial services roles. The regulator found Shaw oversaw unsuitable Sipp sales and failed to disclose conflicts of […]

The MM Podcast: Advice review, annuity merger and exit fees

In the latest Money Marketing podcast, head of news Tom Selby and Hargreaves Lansdown head of pensions research Tom McPhail discuss the ramifications of the Government’s advice review. The joint Treasury/FCA review, announced earlier this month, is expected to generate plans to better establish a broad-based financial advice market, create a clearer regulatory environment, and […]


Will shock UK inflation rise push Carney to increase base rate?

UK inflation “defied expectations” in the year to July by rising from 0 per cent to 0.1 per cent, fuelling speculation of an interest rate increase in early 2016. Data published by the Office for National Statistics this morning confirms prices increased by 0.1 per cent in the 12 months to July. The largest upward […]

Finding security in bond markets

Martin Foden, head of credit research at Royal London Asset Management, explores the role of secured bonds, considering the impact of default and the characteristics of secured bonds versus supranationals and highlighting some examples. He also examines the evolution of the credit market and rating agency inefficiencies. Read the article in full: The value of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment