Umbono changes its name to Dibanisa Fund Managers, introduces Old Mutual Global Index Trackers

Umbono Fund Managers, the specialist index tracking boutique within Old Mutual Investment Group (SA) (OMIGSA)’s suite of investment managers with almost R40bn in assets under management, is changing its name to Dibanisa Fund Managers. At the same time, Umbono is launching a new and pioneering international index tracking capability – Old Mutual Global Index Trackers.

Commenting o­n the name change, Umbono CEO Tendai Musikavanhu said: “Although Umbono is becoming Dibanisa, this change will have no impact o­n the company’s shareholding structure or any aspect of its fund management business. Likewise, it will not affect our clients, suppliers, or intermediaries in any way. The management team remains fully committed to the success of both its local and international tracking operations.”

Dibanisa means “mix” in Xhosa and “join” in Ndebele. This name was arrived at after extensive research by the founders and staff of Umbono Fund Managers. While remaining faithful to the company’s strong African roots and empowerment ethos, it encapsulates the team’s belief that the best managed portfolios are those that blend active and tracker investing – offering the investor the surety of “beta” (market returns) from index tracking and the advances of “alpha” (above-market returns) from active management.

“The new name is much more reflective of our business’ long-term strategic focus, while also clearly differentiating it as an OMIGSA boutique from the associated businesses in the original Umbono group,” explains Musikavanhu. Old Mutual owns a 66.6% stake in Umbono Fund Managers, but the wider Umbono group also includes separate stock broking and advisory services businesses also using that name.

Meanwhile, Old Mutual Global Index Trackers (OMGXT) represents the new international capability and brand outside of South Africa. “Under the OMGXT name we have already set in motion plans to launch and sell pioneering global products,” reveals Musikavanhu. “Although I’m not allowed to reveal details about these for regulatory reasons, the products will be managed from our Johannesburg offices but sold in the US, UK and European markets. We will be formally launching them later this year and are looking forward to being able to expand our local operations as a result.”

He said the logic of using the Old Mutual brand for the group’s offshore index tracking capability was very compelling, given how well-established it is in the US and UK markets. At the same time, as this specialist capability is not offered by Old Mutual plc’s other international subsidiaries (OMAM US, Skandia, OMAM UK), OMGXT will not compete with them overseas.

"I’m very excited and proud to be heading up our new offshore business,” says Musikavanhu. “While I will be focusing o­n launching OMGXT, our current Deputy Managing Director and co-founder of Umbono Fund Managers, Craig Chambers, will take over the role of Managing Director of Dibanisa Fund Managers, ensuring management continuity locally. We are looking forward to continuing to play a leading role in expanding the popularity of index tracking in South Africa under our new name and now, in new markets overseas.”