Skandia Investment Group has appointed Five Oceans Asset Management, the international equities manager, to manage its $350 million Skandia Global Equity Fund mandate, which was previously run by JP Morgan Asset Management.

Five Oceans’ strategy is based on using a diversified portfolio of sectors and styles, with the aim of “significantly” outperforming the MSCI World Index over a three- to five-year period, Skandia said.

The Skandia Global Equity Fund will be managed in a similar way as the Five Oceans World Fund, which has outperformed the MSCI World Index by over 5 per cent annualised, after fees, since its inception in 2006, said Ross Youngman, Five Oceans’ chief executive.

Skandia also cited “effective use of derivatives and hedging strategies to manage risk” in terms of why it opted for Five Oceans. It also referred to how the firm’s research considers environmental, social and corporate governance issues.

Skandia Investment Group was established in 2007 and is an investment management business within the long-term savings division of Old Mutual. The firm had £14.3 billion (about $22.6 billion) in assets under management, as at 30 June 2011.