Skandia Investment Group (SIG), the investment management arm of Old Mutual Wealth Management has handed a GBP66m mandate to O’Shaughnessy Asset Management (OSAM) in a major overhaul of its Equity Income fund.
The fund has been renamed the Skandia Global Equity Income fund and will give investors access to the growing trend in global dividend growth. This is the first time UK retail investors will have access to OSAM’s expertise, providing another example of how SIG uses its global reach to access what it believes are the best investment managers for its UK customers.
Following shareholder approval, SIG has switched the fund from a UK to a global remit because it believes that more and more companies around the world are focused on paying dividends to their shareholders and increasingly the opportunities to access growing dividends are to be found outside of the UK. With inflation being relatively high compared to recent times in the UK, it is now more important than ever for managers of equity income funds to have access to the widest range of investment opportunities possible.
The Skandia Global Equity Income fund is a single manager fund rather than multi-manager like the old Equity Income fund because SIG believes the new investment objectives will best be achieved by a single world class manager. O’Shaughnessy Asset Management (OSAM) has been selected to run the mandate because of its strong track record and quantitative approach to investment management.
OSAM will be focused on delivering a yield that is at least 150% of the yield on the MSCI AC World Index, ensuring that the fund is appropriate for those investors who require income in the current economic climate.
OSAM’s philosophy is that the best investment strategies are devoid of emotional decision-making. It uses stock selection strategies based on long term, empirical evidence and these strategies are historically tested and rigorously implemented. OSAM does not seek to deviate from these strategies, giving investors a process that they can rely on for the long term.
Ryan Hughes (pictured), senior fund manager at SIG, says: “To be able to deliver consistent, high quality investment performance in the equity income sector you need to have access to the broadest possible range of investment opportunities. We believe dividend growth will increasingly be stronger outside of the UK and hence we have expanded the scope of our equity income fund. We have been very impressed with O’Shaughnessy Asset Management’s approach during our due diligence process and we are confident we have selected a fund manager that will deliver consistent, long term returns for our customers.”