Changes to management in our US Equity Leaders Fund

Changes to management in our US Equity Leaders Fund

Following a rigorous review and manager selection process, Omnis Investments has decided to include State Street Global Advisers (SSGA) as an additional manager to the US Equity Leaders Fund, alongside the current manager T. Rowe Price. The reason for this change is to introduce manager and investment style diversification. SSGA will invest passively and seek to track the fund’s benchmark. T. Rowe Price will continue to invest actively and seek to outperform the benchmark. The combined effect of these different investment approaches should help the fund meet its investment objective of outperforming the benchmark over a rolling 5-year period across different market environments.

The fund will continue to be managed in accordance with the investment objective, however, it requires a change to the investment policy of the fund. Where there is currently a limitation in terms of the number of securities the fund may hold (typically between 40 and 75), this limitation will be removed no earlier than 21st May 2024. The fund will therefore change from being a concentrated to a diversified portfolio.

We estimate the total one-off transactional cost of this change for investors will be less than 0.05%, which will be offset for ongoing long-term investors by the reduction in the Annual Management Charge (‘AMC’) from 0.65% to 0.46% p.a.

The change will come into effect no sooner than 21st May 2024. If you are invested in the Omnis UK Equity Leaders Fund, there is no action required and you will automatically and benefit from this change.

For more information, please click here to download the one-page document.

The full shareholder letter can be viewed here.