Fund in Focus: Old Mutual UK Equity Income

Morningstar analysts reveal why they have retained a Bronze Rating for the Old Mutual UK Equity Income fund - run by a well-resourced team with a disciplined approach

Daniel Vaughan, CFA 20 October, 2015 | 2:30PM
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Stephen Message has run the Old Mutual UK Equity Income fund since December 2009, having joined Old Mutual in 2008. He forms part of the large-cap UK-equity team at Old Mutual Global Investors (OMGI), which is well-resourced and includes fund managers Simon Murphy, Errol Francis, and Ed Meier. Richard Buxton continues to head the UK-equity team and in August 2015 was promoted to CEO of OMGI.

The fund lags the category in falling markets, but has more than compensated during rising markets

We view this appointment on balance as a positive for the OMGI investment team. OMGI also has a strong UK small- and mid-cap equity capability upon which Message draws for more growth-oriented names. 

The fund benefits from a process that we believe to be disciplined and repeatable, underpinned by a total return approach. The portfolio is constructed from the bottom up with Message selecting stocks that offer undervalued quality or are undergoing some form of change.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Merian UK Equity Income L GBP Acc34.91 GBP-2.70Rating

About Author

Daniel Vaughan, CFA

Daniel Vaughan, CFA  is a portfolio manager for Morningstar Investment Management