Proposed Amalgamation of the Old Mutual Global Emerging Market Fund

27 Nov 2018
Given recent trends in the global investment space Old Mutual Unit Trust Managers has decided to simplify its global fund offering.

In light of this, we submitted an application to the Financial Services Conduct Authority (FSCA) to amalgamate the Old Mutual Global Emerging Market Fund into the recently launched Old Mutual MSCI Emerging Markets ESG Index Feeder Fund.

To prepare for the proposed amalgamation, the Old Mutual Global Emerging Market Fund will be capped to new client flows, including new client switches into the fund. Flows from existing investors, including contracted debit orders, will continue irrespective of the cap. Please note that there will be no restrictions on repurchases.

One of the key advantages of the indexation approach is affordability. To mirror this sentiment, the Old Mutual MSCI Emerging Markets ESG Index Feeder Fund was launched to provide a cost-efficient investment option to retail investors who require exposure to responsible investments. Up to now, few responsible investment options have been available to retail investors despite an increasing demand for consumer products designed with environmental, social and governance (ESG) factors in mind. Given recent industry events, the application of ESG principles has become an important component of our investment process and integral to assessing the long-term sustainability of companies.

The date of the proposed amalgamation is 29 March 2019, provided the client ballot is successful and provided the amalgamation receives formal FSCA approval. The Old Mutual Global Emerging Market fund will continue to be managed by the current investment professionals, Feroz Basa and Siboniso Nxumalo, until the proposed amalgamation occurs.

We will also be engaging with clients invested in the fund (both direct and via LISPS), but encourage you to advise your clients of these potential developments in the interim.