OMGI brings EM debt fund in house

Added 16th December 2015

Old Mutual Global Investors (OMGI) will bring its Emerging Market Debt Fund in house and has appointed head of emerging market debt, John Peta, to manage the fund.

OMGI brings EM debt fund in house

Subject to regulatory approval, Peta will take up his new role managing the $168m (£110.7m, €153m) fund from 21 January 2015.

Dublin-domiciled The EM Debt Fund is a sub-fund of the Dublin domiciled Old Mutual Global Investors Series and is currently sub-managed by Stone Harbour Investment Partners. The fund's objective, to achieve asset growth through investment in a well-diversified portfolio of fixed and variable rate debt securities issued in emerging markets, will remain unchanged.

Peta joined OMGI in March 2015 and has managed the $115m Old Mutual Local Currency Emerging Market Debt Fund since April. He started his career in fixed income in 1987 and has spent 18 years specialising in emerging market debt investing. 

Policy changes

OMGI has also proposed a change to the investment policy of both the Old Mutual EM Debt Fund and the Old Mutual Local Currency EM Debt Fund. This change, which will be effective 21 January 2016 and is subject to regulatory and shareholder approval, will allow the manager to increase the use of derivatives. 

OMGI believes this will benefit investors as there will be additional scope to hedge out and exploit areas of the market that are deemed unattractive or attractive, in order to meet the funds’ investment objectives.  

Appealing emerging market debt

Peta said: “I look forward to taking on the management of the Old Mutual Emerging Market Debt Fund and identifying areas for growth opportunities. As we move into 2016, I believe emerging market debt will be an appealing investment for those looking to benefit from attractive yields across various regions, including Asia, Latin America, and the Middle East.”

Warren Tonkinson, managing director, OMGI, added: “John Peta has a great deal of experience managing emerging market debt funds, which investors in the Old Mutual Emerging Market Debt fund are set to benefit from.

“By increasing his flexibility to use derivatives, John will have greater freedom in his portfolio management style; something we believe will deliver additional client value.”

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