Old Mutual Global Investors (OMGI), has taken its US dividend fund back into internal management, renamed it and amended its investment objectives.
Previously known as the Old Mutual US Dividend Fund, the $431.6 million (€367.9 million) fund has been renamed the Old Mutual US Equity Income Fund and the limit on investing in larger companies which have dividend characteristics and appear undervalued has been removed.
It now aims to achieve asset growth through investment in a diversified portfolio of equity and equity-related securities.
The fund, previously managed by US-based investment manager, Barrow, Hanley, Mewhinney & Strauss, is now being managed by OMGI’s global equities team, headed by Ian Heslop.
OMGI says the ability to invest in companies without dividend characteristics allows the fund manager to generate a better balance of risk and return, while still creating a portfolio that can have a higher dividend yield than the market.
Heslop, head of global equities, said: “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.”
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