Old Mutual Global Investors (OMGI) is re-naming its US Dividend fund as the US Equity Income fund, while also bringing the management in-house under the global equities team headed up by Ian Heslop.
Until now, the $431m fund had been outsourced to US institutional fund house Barrow, Hanley, Mewhinney & Strauss but OMGI has decided to bring the management in-house, under the global equities team which consists of Heslop (pictured), Amadeo Alentorn and Mike Servent.
The trio already manage the Global Equity Absolute Return (GEAR), World Equity and North American Equity funds.
OMGI has also removed the explicit limitations on the fund to invest in larger companies that have dividend characteristics and appear undervalued relative to their markets.
The group said giving the manager the ability to invest in companies without dividend characteristics enables a better balance of risk and return, while still creating a portfolio that can have a higher dividend yield than the market.
There will also be additional flexibilities on the fund to target capital gains as well as dividend yield.
The revised fund name of US Equity Income will reflect the more flexible investment mandate, the firm added.
Warren Tonkinson, managing director at OMGI, said: "We are confident 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. I would like to thank Barrow Hanley for managing the fund until now."
Heslop said: "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.
"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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