OMGI converts Asian equities vehicle into income fund

Added 13th July 2015

Old Mutual Global Investors has responded to the growing Asian dividends landscape by converting its Asian equities fund into an income fund.

OMGI converts Asian equities vehicle into income fund

Effective from 30 July, the Old Mutual Asian Equity Fund will be renamed the Old Mutual Asian Equity Income Fund, reflecting its new investment strategy.

Utilising a multi-cap approach across the Asia Pacific market spectrum, the fund will target opportunities with an “above average” market yield throughout the economic cycle.

Continuing to be managed by Josh Crabb, OMGI’s head of Asian equities, the fund will remain benchmarked against the MSCI AC Asia Pacific ex Japan index while seeking to benefit from a region where 10-year cumulative dividends have outstripped the US and European markets.

“As the worldwide population ages, the search for income, and in particular equity income, is at the top of the investment agenda,” said Crabb.

“The Asia Pacific region is one of the world’s largest growing markets in terms of dividends and growth, yet Asian equity income funds are vastly under-represented in terms of total assets in income producing strategies. We believe this fund can provide investors with an attractive alternative to cash and sovereign bonds, which offer relatively little return.”

The announcement comes ahead of OMGI expanding its equity income offering in August with the launch of an offshore global fund.

In a previous interview with FSA, Warren Tonkinson, head of distribution, discussed the firm's Asia expansion plans, including fund launches, Hong Kong-domiciled funds and additional staff

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