Old Mutual Global Investors has appointed Nick Payne, Salman Siddiqui and Liz Fernandes to form the manager’s new global emerging markets equity desk.
All three join OMGI from Nomura Asset Management where they worked together for three years. Payne will oversee the team and will report to OMGI’s CEO, Richard Buxton.
Subject to regulatory approval, OMGI announced the firm was set to bring the management of the Old Mutual Global Emerging Markets Fund in-house. The $244.6m (as of 31 May 2017) fund is currently managed by Fisher Asset Management and will be insourced on 21 July 2017, and fund management responsibilities will be assumed by Payne, Siddiqui and Fernandes.
OMGI is to reduce the fund’s annual management fee. The firm has unveiled plans to run the fund as a highly active, concentrated portfolio, aiming to reduce holdings to around 30-40 stocks.
With a focus on stock selection, the team will use a ranking screen to narrow the large universe of available stocks, allowing them to identify quality companies, at reasonable valuations, from across emerging and frontier economies.
The team will use a fundamental research-based approach with a long-term view. They will incorporate a macro view, analysing the principal economic, currency and political risks of the day, and using these findings to influence the fund’s positions.
Richard Buxton, CEO, OMGI commented: “We are thrilled that Nick, Salman and Liz are joining OMGI to establish our global emerging markets desk. Having worked together for a number of years, they have developed a proven investment process, achieving returns from an asset class that is often underrepresented in investors’ portfolios.
“Clients in the Old Mutual Global Emerging Markets Fund are set to gain from the oversight of this experienced team, benefiting from their extensive market knowledge and established approach to running flexible and unconstrained portfolios.”
Nick Payne, head of Global Emerging Markets, OMGI, added: “With over four decades of experience in emerging market equities between us, we have experienced multiple market cycles.
“After five years of negative emerging market returns, driven by poor corporate earnings, we believe we have now seen emerging market equities bottom out. With signs of attractive valuations, and renewed growth in corporate profitability, we perceive significant opportunities to generate positive returns from emerging market equities.”
OMGI had assets under management of £34.6bn (€39.3bn) as at 31 March 2017.