Old Mutual Global Investors launches revamped Generation portfolios

Fund range adapted to new pension freedoms

Old Mutual Global Investors (“OMGI”) has today confirmed that it has launched refreshed versions of the Old Mutual Generation portfolios (the “portfolios”), following the introduction of the new pension freedoms.

The three new multi-asset Generation portfolios have been designed in collaboration with financial advisers to ensure they offer a flexible and bespoke solution for customers in or close to retirement, with different attitudes to risk. The portfolios are aimed at retirees who, following the introduction of the new pension drawdown rules, may not want to buy an annuity, are delaying the purchase of an annuity, or would like a solution that allows them to remain invested at the same time as buying an annuity.

The portfolios seek to deliver a total return, through focusing on short-term risk management and the diversification of investments across asset classes.  They aim to provide above inflation returns, allowing clients to draw down a regular income at the same time as offering them the chance to grow their capital, in line with lifestyle goals and attitudes towards risk.

Warren Tonkinson, Managing Director, Old Mutual Global Investors comments:

“The introduction of the pension freedoms in April 2015 has led to an increased demand for flexible investment products that allow customers to secure both an income and capital growth in retirement. The Old Mutual Generation portfolios have been designed in conjunction with financial advisers to ensure they provide customers with a flexible way of drawing down their assets. Not only do they seek to beat inflation, they also offer the potential for capital growth. Additionally, the Generation portfolios aim to manage short-term market falls, providing customers with a smoother investment ride.”

As of 1 October 2015 the following changes to the Old Mutual Generation portfolios will take effect:

  • Objective change - The portfolios will continue to target both capital growth and income generation. However, the explicit income targets on the funds have now been removed.

At present, the portfolios are invested predominantly in funds managed by third party investment managers. Under the new objectives the portfolios will fully utilise a wider range of potential investments, such as the ability to directly invest in income-generating stocks.

OMGI already has the resources and expertise in place to select income-generating stocks from an expertly monitored list. OMGI will also look to make greater use of its highly regarded UK and European stock pickers.

  • Name change -  In order to reflect the removal of the explicit income targets, the names of the funds are amended as below:

Old Mutual Generation Target 3:4 becomes Old Mutual Generation Target 3

Old Mutual Generation Target 4:4 becomes Old Mutual Generation Target 4

OMGI has also confirmed the launch of the Old Mutual Generation Target 5 portfolio.

These funds seek to protect investors against the ravages of inflation and respectively target returns above the consumer price index (“CPI”) of +3%, +4% and +5% over the medium term.

-  Fund manager change - Going forward the funds will be managed by Anthony Gillham and Paul Craig.

Anthony Gillham is co-investment director of the Old Mutual Wealth Investment Division multi-asset unit. He currently manages the £109m¹ Old Mutual Voyager Strategic Bond Fund and co-manages the £211m¹ Old Mutual Managed Fund. As of 28 September 2015, he took over management of the Old Mutual Spectrum Funds and became co-manager of the Old Mutual Voyager Funds.

Paul Craig currently manages the top-performing £2.6bn¹ Old Mutual Cirilium portfolios.

Anthony and Paul will be supported by a 24-strong multi-asset capability. This unit combines the multi-asset expertise of OMGI and Quilter Cheviot.

  • Fee structure change - The removal of the explicit income targets and the move to invest in direct holdings will mean that there will be increased work for OMGI’s in-house management teams, but reduced out-sourced costs. This will mean an increase to the funds’ annual management charges but a reduction to the funds’ ongoing charge figures (“OCF”), the total costs associated with managing and operating the funds.

These changes will result in a slight reduction in cost to investors.

There is no change to the risk profile of the funds and they are available across a range of tax wrappers. 

OMGI has also confirmed that it will be closing Generation 3:6 and 4:6, subject to regulatory approval. Both funds have limited assets and are therefore no longer operationally viable. OMGI believes it is in the best interest of clients to close the funds and return their proceeds for reinvestment.


Media contact:

Amelie Shepherd, 020 7332 8345

Notes to editors:


Anthony Gillham

Anthony joined Old Mutual in 2000 and is a co-manager of the multi-asset unit.

In 2007, Anthony became a global bond portfolio manager having been a fixed income research analyst since 2006. Prior to focusing on fixed income, Anthony’s areas of coverage included multi-asset, Nordic equities and quantitative US equity and fixed income research.

Anthony is a CFA Charterholder and has over 15 years of experience.

Paul Craig

Paul is manager of the Cirilium multi-asset portfolios and a member of the multi-asset team at Old Mutual Global Investors. He joined in December 2014 from Henderson Global Investors, following Old Mutual Global Investors’ acquisition of Cirilium. Paul has managed the Cirilium portfolios since 2009, taking on these responsibilities shortly after the inception of the range. The Cirilium portfolios have performed well since their launch in 2008. The Old Mutual Cirilium Dynamic fund is the second top performing multi-asset fund in the UK since September 2008, with returns of 89.77%²

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £22.4 billion³.  The team consists of 230 industry professionals, including a team of 59 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to:  www.omglobalinvestors.com

Old Mutual Wealth:

Old Mutual Wealth is the leading wealth management business in the UK and internationally, helping people secure their financial future.

It has an adviser and customer offering spanning:

• Financial advice via the Intrinsic network

• Platform based wealth management products and services via Old Mutual

• Wealth in the UK and Old Mutual International globally

• Asset management solutions via Old Mutual Global Investors

• Discretionary investment management via Quilter Cheviot

Old Mutual Wealth oversees £101 billion³ in customer investments.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that  provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.

This press release is for journalists only and should not be relied upon by financial advisers or customers.

¹As at 31 August 2015

² Data: FE Analytics

³As at 30 June 2015