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AA-rated trio bring home Old Mutual US Dividend fund

AA-rated trio bring home Old Mutual US Dividend fund

Old Mutual Global Investors (OMGI) has 'insourced' its US Dividend fund and renamed it to the US Equity Income fund following a change in its objective.

The fund, previously run by Barrowe Hanley, will now pass to the firm's global equities team and be managed by Ian Heslop (pictured), Amadeo Alentorn and Mike Servent, all of whom are Citywire AA-rated.

From a limitation to investment in large companies with dividend characteristics, the $431 million (£328 million) fund's new objective will be to achieve asset growth through a diversified portfolio of equity and equity-related securities.

OMGI said this will give managers the flexibility to create a better risk-return balance while still producing dividend yield higher than the market.

To avoid an investment-style bias, the trio will run the fund through a process focused on stock selection across sectors, analysis of fundamental company data and the macro environment and investor sentiment.

Warren Tonkinson, managing director, said: '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.

Heslop commented: '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.'

He added: 'Our unique systematic approach allows us to read markets, rather than trying to predict their direction of travel. We aim to understand the current market environment and identify the investment opportunities that are most appropriate, rather than being restricted by a bias towards a particular style.

'Utilising this approach, and the flexibility to invest in companies offering attractive capital gains as well as dividend growth, we believe we will meet investor demand for a diversified US equity income strategy that generates a long-term total return.'

 

 

 

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