Old Mutual Global Investors (OMGI) has insourced its US Dividend fund and renamed it to the US Equity Income fund following a change in its objective.
The fund, which has previously been managed by Barrow Hanley will now be headed by Ian Heslop, Amadeo Alentorn and Mike Servent.
The fund’s new objective is to achieve asset growth through investment in a diversified portfolio of equity and equity-related securities.
OMGI believes that the ability to invest in companies without dividend characteristics makes it possible for 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.
The added flexibility will target capital gains as well as dividend yields means that the fund should be able to generate a better total return, over time.
Warren Tonkinson, managing director, OMGI, commented: “Investors in the Old Mutual US Equity Income fund will benefit from the team’s unique and proven investment approach, as well as the opportunity for the Fund to generate a positive total return.”