Old Mutual Global Investors terminated its contract with Stone Harbor Investment Partners as subadviser to its $168 million Emerging Market Debt Fund, a spokeswoman said.
Effective Jan. 26, and subject to regulatory approval, OMGI’s fund will be entirely managed in-house by John Peta, head of emerging markets debt.
“We chose to end the contract with Stone Harbor, as we believe (Mr. Peta’s) vast amount of experience in this sector will benefit clients in the fund,” the spokeswoman said in an e-mail.
The fund invests in a diversified portfolio of fixed and variable rate debt securities issued in emerging markets. This strategy remains unchanged.
Mr. Peta joined the £22.2 billion ($33.8 billion) money manager in March, and he also manages the Old Mutual Local Currency Emerging Market Debt Fund.
OMGI also said it has proposed a change to the investment policy of the Old Mutual Emerging Market Debt Fund and the Old Mutual Local Currency Emerging Market Debt Fund. Subject to regulatory and shareholder approval, the portfolio manager will be allowed to increase the use of derivatives in the strategies, as the firm believes this will add scope to hedge out and exploit areas of the market that are deemed unattractive or attractive, to help meet investment objectives.
A spokeswoman for Stone Harbor was not available to comment by press time.