Old Mutual Global Investors (OMGI) is handing the management of its £77 million Ethical fund to Quilter Cheviot.
The fund is currently run on an outsourced basis by Impax Asset Management, who will stand down as its manager on 1 December. Following the move, the fund’s ongoing charges will be cut from 1.85% to 1.65%.
Quilter Cheviot’s sustainable investment team, led by Claudia Quiroz and William Buckhurst (pictured), runs £130 million across client assets and segregated mandates. The Ethical fund’s mandate will remain unchanged with the managers continuing to target a combination of income and growth.
OMGI managing director Warren Tonkinson said: ‘The Quilter Cheviot sustainable investment team have a vast amount of experience managing sustainable and ethical funds and we look forward to working with them on the management of the Old Mutual Ethical fund.
‘As well as offering clients access to one of the best ethical investing teams in the industry, we are pleased to confirm that investors will also receive a cost saving as a result of this move.
‘I’d like to thank Impax Asset Management for its support in managing the fund until now.’
Old Mutual Ethical is up 36.59% over three years to the end of August compared to a sector average return of 33.33%.