OMGI, part of the UK's Old Mutual Wealth, is taking Impax Asset Management off its ethical fund.

Old Mutual Global Investors has appointed Quilter Cheviot as the new investment advisor of its £77 million ($117 million) ethical fund.

The Old Mutual Ethical Fund is currently sub-advised by Impax Asset Management. At the beginning of December, it will switch to discretionary investment manager Quilter Cheviot, which Old Mutual Wealth acquired in February for £585 million. The fund will continue to target a total return comprised of income and capital growth by investing in shares of companies that show sound ethical practice.

Quilter Cheviot has a sustainable investment team which manages over £130 million in client investments and covers opportunities arising from the convergence of climate change, resource scarcity and population shifts. The team is led by Claudia Quiroz and William Buckhurst, who will be taking over as managers on the ethical fund.

OMGI also announced that as a result of negotiations with Quilter Cheviot, there will be a reduction to the ongoing charges of the A Share class from 1.85 per cent to 1.65 per cent.

“The Quilter Cheviot sustainable investment team have a vast amount of experience managing sustainable and ethical funds and we look forward to working with them on the management of the Old Mutual Ethical Fund. As well as offering clients access to one of the best ethical investing teams in the industry, we are pleased to confirm that investors will also receive a cost saving as a result of this move,” said OMGI managing director Warren Tonkinson.

“I’d like to thank Impax Asset Management for its support in managing the fund until now.”