Monday, 30 May 2016

Volatile Market Expected To Increase Popularity Of New Range Of Risk-Targeted Investment Portfolios

Old Mutual Wealth are offering a new innovative range of risk targeted investments to the UAE market for the first time through the launch of its new flagship international multi-asset portfolio range: Old Mutual Compass Portfolios.

Following the recent volatility in the equity markets and the widely documented downturn in crude oil prices, the Old Mutual Compass Portfolio range is expected to be popular with long-term savers and investors in the GCC, offering more protection from the uncertain volatility of future markets, altogether offering a clearer picture of the likely risk and return on investment.

The objective of the Compass Portfolios is to generate a long-term total return while effectively managing downside risk.  By adopting a risk-targeted approach, with defined volatility parameters for each portfolio, investors will have a better idea of how their investments are likely to perform over the long term, throughout various market conditions.

The portfolios leverage the complementary skills of Old Mutual Global Investors (OMGI) in fund research and Quilter Cheviot in portfolio management – as well as pooling both businesses’ expertise in stock picking. This ensures the portfolios benefit from the best investment opportunities available globally, including funds, direct equities and bonds, investment trusts, and alternative investments.  

Brendan Dolan, Regional Director, Middle East and Africa, Old Mutual International, said: “The concept of risk-targeted investments is still in its infancy in the international market but interest is building as investors increasingly focus on managing risk in today’s volatile markets.

“The launch of the Compass Portfolio range is a great addition to the investment solutions available through Old Mutual International. Compass will provide clients with access to industry leading portfolio management and research capability, wrapped up in the convenience of a fund.”

The Old Mutual Compass Portfolio range is the first launch from the Old Mutual Wealth multi-asset unit formed last year, run by co-investment directors Anthony Gillham and Ben Mountain, which combines the best in class capabilities from OMGI and Quilter Cheviot. The new portfolios will be available through Old Mutual International and Quilter Cheviot.

The portfolios’ investment manager is OMGI, and they will be co-managed by Anthony Gillham and Sacha Chorley.

Anthony Gillham added: “The Compass Portfolios are genuinely actively managed; not only do we make long-term strategic asset allocations, there is also a strong focus on tactical asset allocation to manage short-term risks. Through in-depth analysis of markets, we aim to identify the best investment opportunities and when to exploit them.

“By investing in a diverse mix of assets, via some of  the world’s best fund managers, specially selected direct securities and alternatives, we aim to ensure the best outcome for investors across all economic and market conditions, while consistently operating within an agreed level of risk.”

The new range of four portfolios (Compass 2 to Compass 5) are each designed to match a different risk profile, with Compass 2 targeting the lowest level and Compass 5 the highest.  The portfolios will take a truly diversified approach across asset classes, with no specific biases towards regions, currencies or investment styles. The range will be available across a number of jurisdictions, including the UAE and Africa, and in a number of currencies.

In April Quilter Cheviot officially launched its first representative office in the region, based out of the DIFC in Dubai, offering its renowned discretionary services through the intermediary channel.