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Old Mutual Generation portfolios

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Retirement presents a set of opportunities and challenges for you and your clients, as your clients’ focus on their financial affairs shifts from their salary to their pension pot and other savings. These include generating an income to help support their lifestyle, while trying to safeguard their money against inflation and ensure that it lasts as long as they need it.

The Generation portfolios are a range of investment solutions that seek to make the most of these opportunities, and tackle the challenges head on. They are aimed at investors who are either approaching retirement; at retirement; or some way through retirement and require a flexible and bespoke solution.

A flexible solution to pensions reforms

Generation has been designed in collaboration with advisers, following the introduction of the new pensions freedoms, to offer a flexible and bespoke solution for retirement. The portfolios are aimed at retirees who may not want to buy an annuity, or would like a solution that allows them to remain invested at the same time as having an annuity, or would like to keep the option open to buying an annuity in the future. They also seek to help your clients leave some or all of their pension savings to loved ones, should they so desire.

A focus on total return and beating inflation

The aim of the Generation portfolios is to enable an income in retirement whilst growing your clients’ money whilst providing a solution that finds a balance between yield and capital growth. This is different to many of the other retirement options available, where a choice has to be made between either ‘income’ or ‘growth’. Moreover, we seek to cushion against the ravages of inflation, as the Generation range targets returns above the consumer price index of either +3%, +4%, or +5% over the medium term, depending on the portfolio.

Active short-term risk management

Active short-term risk management forms a part of every stage of the portfolios’ construction process, to limit the risks that a poor sequence of returns permanently dents your clients’ capital. This means the portfolio managers can act quickly to guard against losses in periods of market stress. The diversified nature of the portfolios, which hold uncorrelated sources of income, is also aimed at mitigating the risks of capital erosion.

Dynamic asset-allocation

Each of the Generation portfolios is invested primarily in funds run by a variety of managers, across a wide array of asset classes. This approach facilitates exposure to multiple regions, sectors and fund-management styles. In addition to a focus on any short-term risks to the downside, all positions are monitored continuously with an eye on the interaction between the funds held, to ensure an appropriate blend is maintained. Each portfolio also holds a core of directly invested equities, which offer the potential for growth and natural yield/income.

Investment team

The Generation portfolios are run by a team with great experience in managing in equities, bonds, multi-asset funds and other alternative investments such as commodities and hedge funds.

Anthony Gillham

Anthony joined Old Mutual Global Investors in 2000 and is a Co-Director of the Multi-Asset investment team. In 2007, Anthony became a global bond portfolio manager having been a fixed income research analyst since 2006. Prior to focusing on fixed income, Anthony’s areas of coverage included multi-asset, Nordic equities and quantitative US equity and fixed Income research. Anthony is a CFA Charterholder, holds the Investment Management Certificate and has over 15 years of experience.

Paul Craig

Paul is manager of the Cirilium multi-asset portfolios and a member of the multi-asset team at OMGI. He joined OMGI in December 2014 from Henderson Global Investors, following OMGI’s acquisition of Cirilium. Paul has managed the Cirilium portfolios since 2009, taking on these responsibilities shortly after the inception of the range. He has also acted as a non-executive director of two investment trusts. He has 25 years of experience in the asset management industry.

The managers have complementary skills that should help ensure the portfolios function as they are designed to. Anthony brings the proprietary models and analytical tools he has used and developed for investment analysis. Paul comes with a wealth of experience in running multi-asset solutions, especially in dealing with the more niche areas of financial markets such as alternatives like investment trusts, which are key to the construction of Generation portfolios.

Investments may fall as well as rise and your clients may not get back what they put in.

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