The asset management arm of London-listed Old Mutual Wealth has shut down its onshore global equity income fund following poor performance.

Old Mutual Global Investors has launched an offshore global equity income fund and closed its £38.8 million ($60.9 million) onshore equivalent.

The offshore Old Mutual Global Equity Income Fund is a sub-fund of the Dublin-domiciled OMGI series umbrella fund and will be managed by Ian Heslop, Amadeo Alentorn and Mike Servent. It will serve OMGI’s UK and offshore client base, targeting a total return through a combination of income and capital growth, with a target monthly income 30 per cent above the benchmark, the MSCI All Countries World Index.

“We’ve experienced a high level of client demand for an offshore global equity income fund managed by Ian Heslop and his team. We are delighted that this fund is now live and will become a core part of our global fund range, available to both UK and offshore investors,” said Warren Tonkinson, managing director.

The company said the closure of its onshore Old Mutual Global Equity Income Fund, which is sub-advised by O’Shaughnessy Asset Management, follows a gradual decline in the fund's assets over the last few years. It added that clients' proceeds were returned so they could reinvest in other products. Over the last year, the fund's performance was -15.3 per cent, compared to the IA sector average of 5.1 per cent, according to Trustnet.

“We believe our decision to close the onshore Old Mutual Global Equity Income Fund is in the best interest of investors. Clients have been informed of our decision to close this fund and of the options available to them. We would like to thank O’Shaughnessy for their management of the fund,” Tonkinson commented.

Earlier this month, the group announced head of equities Richard Buxton will take over as OMGI's chief executive, succeeding Julian Ide, who stepped down to “explore new opportunities”.