The Skandia US All Cap Value Fund and the Skandia US Value Fund have been merged and are being re-launched as the Old Mutual US Dividend Fund, targeting large cap US stocks. It currently has $210m in AUM.
It is benchmarked against the Russell 1000 Value Index and the S&P 500 Index and aims to outperform over complete market cycles while taking below-average risks. Returns will be generated via dividend yield, dividend growth and capital appreciation.
The fund will target companies with below-market valuations and low expectations due to past earnings disappointments.
It is managed by Barrow, Hanley, Mewhinney & Strauss , a subsidiary of Old Mutual. Lead portfolio manager Ray Nixon is assisted by Lewis Ropp and Brian Quinn.
Nixon said: “We look for stocks that not only pay, but grow their dividends. It is a fact that reinvested dividends form a significant part of the long-term total return produced by equities. In addition, over the last 40 years dividend paying stocks have outperformed non-dividend paying stocks and stocks that consistently increase their dividends perform the best.
The Scandia European Equities and European Opportunities Funds have also been merged to become the Old Mutual European Equity Fund, while the Skandia Global Bond Fund and the Japanese Equity Funds have been rebranded Old Mutual and have new investment advisers.
The move is part of the two-year rebrand which began last year following the acquisition of Skandia by Old Mutual.
A full list of the affected Dublin-domiciled funds is in the list below.
