Fund Focus: Old Mutual's Stewart Cowley on how to prepare for rising interest rates

            1 What has driven the fund's outperformance over five years? We have very much played the game whereby central banks have supported the financial system in the hope that it has economic effects. In those circumstances, the portfolio needed the most beta you could get in it: for equities, small- and mid-cap funds, and in the bond portion, long duration and credit allocations did the heavy lifting. We also held the Old Mutual Global Equity Absolute Return fund as our exposure to alternatives. The combination of all of these factors and the additional outperformanc...