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Why have you launched these funds?


Financial advisers have welcomed the guidance and supporting tools available from Old Mutual Wealth to help them in portfolio construction. By using the tools available to create client risk profiles, allocate assets and select funds, financial advisers can better ensure that the resulting portfolio remains aligned to clients’ expectations in terms of volatility and quality of underlying fund management.

Feedback from financial advisers using the platform, however, indicates a growing interest in the outsourcing of fund selection, especially in cases where those funds must represent the associated asset class.

This is for two main reasons:

Speed of rebalancing. Any changes required to asset allocation within a client’s portfolio, for example following a Towers Watson & Co (Towers Watson)* review, can only be applied quickly where discretionary investment powers are in place. Only a minority of financial advisers are regulated to provide this service, however. This means that in most cases clients’ instructions have to be obtained, delaying the adjustment of their portfolios.

Potential CGT consequences. Rebalancing activity may give rise to a disposal for capital gains tax (CGT). The Spectrum range of asset-allocated MultiManager funds provides an appealing solution for these problems. Managed by award-winning Old Mutual Global Investors, they reflect current asset allocations and avoid CGT issues by rebalancing within each fund rather than across a range of funds.

*As an input to Old Mutual Wealth’s asset allocation model, Towers Watson conducts a quarterly review of the asset class assumptions used. This review is carried out solely for Old Mutual Wealth under agreed terms of engagement and not for any third party. Towers Watson assumes no responsibility, duty of care or liability to any third party in respect of the Old Mutual Wealth asset allocation model or the Spectrum funds.

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