OPM reshuffles to EM debt

OPM Fund Management has made a slew of fund changes in the past month, with Investec Asset Management among the main beneficiaries.

OPM's Balanced Managed fund sold out of the Old Mutual Corporate Bond fund, which it says has "done its job in the recovery in bank debt", and alocated to Investec's Emerging Markets Debt fund, run by Peter Eerdmans.

Tony Yousefian, OPM's CIO, says: "We like fixed income overall, but we feel the potential for returns from EM debt is greater at the moment."

OPM's fund also trimmed back M&G High Yield Corporate Bond fund, a move Yousefian says was to raise cash.

Part of this is going into Altis Resources, which engages with mining companies' managers over their strategy.

OPM Balanced Managed also invested in BlackRock World Mining under new manager Evy Hambro for "long-term exposure to commodities, but to get that exposure through equities".

Separately, OPM's Fixed Interest fund took profits on M&G's Optimal Income under Richard Woolnough, to build existing exposure to Eerdman's fund. Investec's product now represents 10.8% of this OPM product.

OPM plans to reduce the investment grade exposure in the portfolio overall, and also bought into the Ishares Emerging Market Debt ETF as an interim position.

Meanwhile, OPM's fixed interest portfolio also sold what it describes as "a residual holding" in Legg Mason's Global Multi Strategy Bond fund. Jim Leaviss, who runs M&G's International Sovereign Bond fund, received the proceeds.

OPM also switched between Aegon's Corporate Bond and High Yield Bond portfolio.

OPM's Equity High Income fund sold out of Henderson New Star UK Strategic Income, to buy directly into Catlin, Man Group and 888 Holdings.

OPM's Property Fund bricks and mortar exposure is 23% and Yousefian expects this to grow. He sold Franklin Templeton's Global REIT, and added to L&G UK Property Trust instead.