Old Mutual Global Investors (OMGI) has launched a European small companies fund for a recent recruit from Ignis Asset Management.
The Old Mutual Europe (ex UK) Smaller Companies fund is a sub fund of the Old Mutual Global Investors Series, a Dublin-domiciled umbrella fund.
It will be managed by Ian Ormiston, who joined Old Mutual Global Investors in October, which was among a spate of former Ignis Asset Management colleagues to have joined the group.
OMGI confirmed the fund is currently registered for sale in the UK and Ireland, while plans to expand its availability are being discussed.
Commenting on the launch, Ormiston said: ‘The European small cap market is a diverse universe offering great opportunities for investors.'
'As an under-researched sector, it is naturally inefficient and so by focusing on high quality, true small cap companies, with a good level of liquidity we aim to create a portfolio that can add real value to investors.’
The new fund will hold between 40 and 55 stocks, each with an equal weighting. It will focus on finding companies with less than €1 billion market cap.
By investing in businesses achieving high and consistent profitability whilst avoiding illiquid stocks and turn-around companies, the fund aims also to reduce inherent risks that are sometimes associated with the small cap market.
Commenting on the new product, the head of UK equities at OMGI, Richard Buxton, said: ‘The launch of this European Smaller Companies Fund further extends our already outstanding equities capabilities.’
‘As Ian has an excellent investment track record from investing in UK and European markets for over 20 years, including 16 years specialising in investing the European smaller companies, we believe that there is strong demand for this product from our global client base,’ he added.
The Old Mutual Global Investors UK and European equities team currently manages over £4.8 billion (€6.07 billion) of assets as at 30 September 2014.