Old Mutual cuts charges in UK fund range overhaul

Old Mutual Global Investors is re-naming its UK domiciled fund range and cutting charges, following the merger of its two UK asset management businesses last year.

The changes to the Old Mutual Asset Managers fund range, effective from 25 February, will see the Old Mutual Dynamic Bond fund renamed the Old Mutual Monthly Income Bond fund.

Christine Johnson will continue to manage the fund using the same investment process and the re-naming is designed to better reflect the fund’s investment objective of paying a monthly yield in the income share class.

The Old Mutual Corporate Bond fund will also see the annual management charges on its A, B and C share classes reduced from 1.1% to 1%, 0.75% to 0.65% and 0.6% to 0.5% respectively.

The firm said it has lowered these charges to remain ‘attractive’ relative to peers. The group said: ‘Although the fund has performed extremely strongly, we believe that the lower annual management charges will bring the fund in line with its peers and provide investors with even better value.’

The firm is also changing the names on a raft of other funds, which will see Equity Income become UK Equity Income, UK Select Mid Cap renamed UK Mid Cap, and the UK Mid Cap UK Select Smaller Companies changed to UK Smaller Companies. The UK Select Equity fund will also become UK Equity.

The firm is also changing Asian Select to the Asia Pacific fund, the European Equity fund to the European Equity (ex UK) fund and the Japanese Select to the Japanese Equity fund.

Meanwhile the Select Managed fund will be renamed the Managed fund.

The merger in April last year saw Old Mutual Global Investors formed, comprising the Old Mutual Asset Managers’ alpha-generating capabilities with the Skandia Investment Group’s investment solutions.

Old Mutual Global Investors’ team of 39 investment professionals manage over £13 billion of assets for a global client base.