Old Mutual Global Investors (OMGI) is rebranding its multi-asset Spectrum range as the Old Mutual Creation Portfolios, as well as adding a new Adventurous portfolio and providing manager Anthony Gillham with greater flexibility.
The new suite will have a wider range of possible exposures to direct equity and fixed income holdings, and the use of derivatives will be extended.
In addition, the holdings within the risk-targeted portfolios will be limited to funds from a "select group" of third party investment managers and the best OMGI funds. These will be chosen following a "rigorous research process based on the partners having a strong competitive edge in their respective asset class or market and their ability to offer value for money".
As a result, the investment objective of each portfolio will be amended to clarify that they target capital growth over the long term to a maximum volatility level.
The group said the enhancements will also achieve more consistent investment returns over the medium to long term across the range.
Furthermore, the group is introducing a fixed ongoing charge pricing structure to replace the existing combined fees and costs of the annual management charge, the administrative costs and the ongoing costs of investing in other collective investment schemes.
The group said the fixed ongoing charge will be lower than the current OCF.
The funds will be renamed Old Mutual Creation as per the table below:
Gillham (pictured), who is also co-investment director of OMW multi-asset unit, said: "Our multi-asset range has been designed to meet investor demand for genuinely diversified solutions that provide consistent returns and manage downside risk.
"We have a long history of innovation, research and the building of multi-asset portfolios designed to meet the needs of a range of clients with different investment preferences.
"In pursuit of our aim to offer a varied suite of solutions that meets investor needs, we have worked closely with our clients and financial advisers to ensure our multi-asset range is aligned with investor expectations.
"We are excited to unveil the Old Mutual Creation Portfolios, believing this change will not only benefit existing clients, but also enhance and simplify our entire suite of multi-asset accumulation solutions."
In addition, the group concluded a number of portfolios had similar investment objectives and risk profiles so on 7 July, subject to shareholder approval, Old Mutual Spectrum 5 will merge into Old Mutual Creation Moderate (previously Spectrum 6) and Old Mutual Spectrum 8 will merge into Old Mutual Creation Dynamic (previously Spectrum 7).
OMGI has also created a new portfolio, the Old Mutual Creation Adventurous Portfolio, for clients identified to be at the higher end of the risk appetite scale. This portfolio will launch on 3 July 2017.
Old Mutual Wealth has made a number of revamps to its multi-asset range including the creation of the multi-asset unit and the re-launch of OMGI's decumulation product, the Old Mutual Generation Portfolios, both in October 2015, and the launch of its flagship international offering, the Old Mutual Compass Portfolios, in April 2016.
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