Our Fund Offering
The funds you choose are largely guided by whether your financial planner opts to delegate implementation to us or use their own advice philosophy. There are three approaches:
Use one of our investment strategies, or your own advice philosophy
- Strategy Fund Approach
Our strategy. Our implementation
Your financial planner can delegate implementation to us by using our pre-constructed strategy funds. Each targets the desired returns required by Old Mutual Wealth’s investment strategies.
- Portfolio Blending Approach
Our strategy. Your financial planner’s implementation
You and your financial planner may choose not to delegate implementation to us. With this option, they will undertake their own portfolio construction. Together, you can choose from our selection of vetted Target and Strategy Funds – but still guided by your placement in one of our investment strategies.
- Implementation only
Your financial planner’s strategy. Your financial planner’s implementation
Your financial planner can choose to implement their own advice philosophy and undertake your own portfolio construction, choosing from Strategy and Target Funds PLUS our Extended Fund Range.
Strategy Funds are funds that align directly to the return objectives required by each of our proprietary investment strategies.
- Extensive research: We undertake extensive research into the market, asset allocation, manager selection and rebalancing (and its associated capital gains implications). This ensures our single funds have the most appropriate combination of assets and our multi-managed funds have an optimal and a diversified combination of managers with differing and complementary behaviours under varying market conditions.
- Uncompromising client focus: Choosing this option means that because we do all the groundwork, your financial planner can focus on their core business – understanding clients’ needs and providing trusted advice.
- Reduced risk: Since there is a clear mapping of your strategy to the funds, you’re assured that the fund selected is perfectly aligned to your investment objectives. Rebalancing, asset allocation, manager selection and Regulation 28 related risks are also managed.
- Longer-term thinking: There is no need to chase performance or time the market when the fund you’re in is designed to meet a certain long-term goal and is actively managed to get there.
- Detailed reporting: You will have access to detailed monthly and quarterly performance reporting.
These are funds with inflation-linked targets.
- Flexibility, with structure: While Strategy Funds are an ideal solution if you prefer to leave portfolio construction to us, having a choice of managed and single asset class funds will allow you to construct your own tailored portfolios within a rigorous advice process.
- A cutting-edge portfolio builder tool: Your financial planner can create diversified inflation-linked portfolios to match your investment strategy. As with the Strategy Funds, each Target Fund is assigned a long-term real return assumption that is also in line with the fund’s mandate. The portfolio builder tool thus allows financial planners to blend a portfolio for a given investment strategy based on the long-term return assumption of each fund.
- Managed risk: Our portfolio construction process applies a risk overlay that restricts the use of certain funds (mostly single asset class funds) to 30% of a given portfolio. If a portfolio consists of more than 30% of these specific funds, it can no longer be assigned to one of our investment strategies. By applying a risk overlay in this form, it may encourage a more diversified portfolio, and an optimal combination of assets or managers that behave in complementary ways under different market conditions.
- Thorough vetting and monitoring: Old Mutual Wealth conducts a thorough vetting process for many of our funds, and monitors performance over time.
- Financial planners who have used their own advice processes – instead of placing clients in one of Old Mutual Wealth’s investment strategies – and who are simply looking for solutions to single needs, or who wish to give effect to very specific or niche (offshore, equity, Shari’ah) investment views, can opt to use funds in our Extended Fund Range. Many of these funds are vetted by us, but managed by a different manager. These funds can be used in conjunction with Strategy and Target Funds, using Strategy Funds at the core of most portfolios and Target Funds to give effect to your specific advice philosophy.