On 1^st December 2016, following The Adviser Centre Monthly Review meeting on 25^th November 2016, Old Mutual Europe (ex UK) Smaller Companies has been added to our Recommended list.

The fund is managed by Ian Ormiston, who joined Old Mutual Global Investors (OMGI) in October 2014 from Ignis Asset Management, where he managed a similar fund.  It offers exposure to European companies with market capitalisations below €1 billion.  Using a bottom-up approach to managing the fund, Mr Ormiston seeks well-financed companies with above average earnings growth, seeking to take advantage of pricing inefficiencies in this area of the market.  Growth, valuation, quality and financial strength factors are assessed, with the manager having a particular focus on cash conversion from earnings and on how company managements deploy that cash.  The manager undertakes a large number of company meetings each year in his hunt for new ideas.

Mr Ormiston is an experienced and passionate investor in European smaller companies, who benefits from a collegiate fund management environment at OMGI.  His flexible investment style, combined with a keen eye on valuation, means that the fund is well placed to navigate a range of market conditions.  Nonetheless, the focus on quality and robust balance sheets means that the fund is unlikely to participate fully in market rallies that are led by lower quality companies.

We are delighted to add this specialist fund to our Recommended list.