Old Mutual Global Investors announces that, subject to shareholder approval, the US $212m Old Mutual Asian Equity Fund managed by Josh Crabb, Head of Asian Equities, will evolve into an equity income generating strategy.
With a target date of 30 July 2015, the Fund will be renamed the Old Mutual Asian Equity Income Fund.
The Fund, which has been managed by Crabb since October 2014, is a sub-fund of the Dublin domiciled Old Mutual Global Investors Series plc umbrella fund. It is managed by Crabb and his team, who are based in Old Mutual Global Investors’ Hong Kong office. Since Josh took over as manager, the Fund has been in the first quartile of its peer group and has delivered 4.18% above the index (MSCI AC Asia Pacific ex Japan) ².
The Fund’s investment objective is evolving based on client demand and the change of name reflects this. The Fund aims to deliver a total return for investors, with a focus on income, as well as capital growth. It will invest in companies from across the market cap spectrum and will aim to pay an above market yield from across the economic cycle.
Old Mutual Global Investors believes this development will benefit clients as they will be able to access the region’s growing dividend stream as well as obtaining above average earnings per share growth. Studies show that the Asia Pacific region over a ten-year cumulative period has paid consistently higher dividends as a percentage of total returns than both the US and Europe, as well as delivering overall higher total shareholder returns.
Crabb has an investment career spanning over 18 years, which includes a proven track record of managing Asian income funds.
Josh Crabb comments: “As the worldwide population ages, the search for income, and in particular equity income, is at the top of the investment agenda. By evolving the Old Mutual Asian Equity Fund into an income fund we are aiming to meet the demands of those investors who look to receive an inflation-proofed income, without sacrificing their capital growth.