Old Mutual Global Investors (OMGI) is set to merge its two absolute return bond funds with co-managers of the £746m Old Mutual Absolute Return Government Bond fund Adam Purzitsky and Paul Shanta leaving the firm.
Along with three others on the team, the duo will leave the firm to pursue other opportunities following the merger of the fund into the $100m Old Mutual Strategic Absolute Return Bond fund.
Purzitsky and Shanta joined the firm with former colleague Russ Oxley in early 2015 to establish OMGI's first absolute return fixed income team after they quit Ignis Asset Management following its acquisition by Standard Life Investments earlier that year.
Huw Davies, investment director on the Old Mutual Absolute Return Government Bond fund, will join the wider fixed income team as investment director, while analyst Vytaute Maciulskyte will move over to the $22m Old Mutual Systematic Positive Skew fund.
The proposed merger is set to take place on 27 July, subject to shareholder approval.
The Old Mutual Strategic Absolute Return Bond fund will continue to be managed by the Old Mutual Strategic Absolute Return Bond fund team, which is led by co-managers Mark Nash and Nicholas Wall (pictured), who have been in charge since August 2016.
Investors in the retail share class for the Old Mutual Absolute Return Government Bond fund will be merged into a new share class for the Strategic Absolute Return Bond fund, which has an annual management charge (AMC) of 0.36% and an ongoing charges figure (OCF) of 0.70%.
Warren Tonkinson, managing director of OMGI, said: "Aligned with our ambition to offer a market-leading fund range, we have identified an opportunity to simplify our proposition.
"We believe the proposal to merge the Old Mutual Absolute Return Government Bond fund into the Old Mutual Strategic Absolute Return Bond fund is in the best interest of investors who are seeking to achieve a positive total return, while benefiting from exposure to a more diversified investment strategy and lower fees.
"We are confident that following this change, our fund range will be well aligned with investor demand.
"We are grateful for the contribution the absolute return government bond team has made to the business and wish them the best of luck for the future."
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