Domiciled in Ireland, the new Old Mutual UK Alpha fund seeks to deliver long-term capital growth through a concentrated portfolio of 35-40 predominantly large cap UK equities, with no benchmark or tracking error constraints.
‘It is very pleasing to be able to launch a fund to mark the six-month anniversary of my arrival at Old Mutual Global Investors,’ said Buxton. ‘Flows into the Old Mutual UK Alpha fund have been positive since June and assets under management currently stand at circa £1 billion. We have also received increased demand from our international client base and therefore decided that it was appropriate to provide a vehicle for them to access this strategy.’
Buxton also reiterated his confidence in the outlook for UK equities. ‘UK growth seems likely to be better than reported, given the data on employment and business confidence. Valuations, meanwhile, are supportive. Anyone who invested in UK equities at current valuations at any time in the past 95 years would have made a profit in the following 10 years. This suggests that we are leaving the sideways market of the past 13 years and entering a bull phase.’
According to Lipper, Buxton has returned 159% over the past five years compared an average of 113% from his peer group and 93% from the FTSE All Share index.