Old Mutual Guernsey has added two multi-manager portfolios incorporating a wide range of asset class...
Old Mutual Guernsey has added two multi-manager portfolios incorporating a wide range of asset classes to its list of products. The Diversified Plus Portfolio and the Growth Portfolio are available to South Africans investing in OMGs' Alpha, Maxima and Prima life products.
The Diversified Plus Portfolio will be invested across the asset classes of cash, bonds, equities and alternative strategies. The aim of the portfolio is to provide long-term capital growth.
However, the company hopes that by using alternative strategy funds it will be able to reduce the levels of volatility generally associated with traditional securities markets. The target portfolio asset allocation is as follows: cash 15%, bonds 15%, equities 40% and alternatives 30%.
The Growth Plus Portfolio invests in the same asset classes as the Diversified Portfolio. It will also aim to reduce volatility associated with traditional securities markets, but with an increased allocation to equities and away from bonds. The Growth Plus target asset allocation is: cash 15%, bonds 5%, equities 50% and alternatives 30%.
The discretionary manager of both portfolios is Gerrard, the sister company of Old Mutual Guernsey that specialises in portfolio management.
Minimum investment in Maxima is £10,000, whereas in Alpha it is $25,000. Prima has a £5,000 minimum annual investment.
Old Mutual states that by gaining access to these funds via the company's existing life products, investors are able to generate exposure to alternative investments, a set of asset classes which normally require a high minimum investment and which traditionally have poor liquidity.
But Old Mutual has made these products available to all its investors and in a relatively liquid way, trading as it does on a weekly basis.
The company is looking to find alternative funds that are absolute return portfolios not correlated to any of the traditional asset classes.
All funds offered through Old Mutual Guernsey are unit-linked life funds and, as such, are available only through registered offshore life products.
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