EQUITIES MULTI-ASSET ALTERNATIVESFIXED INCOME

Building better solutions

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FUND IN FOCUSOLD MUTUAL GENERATION PORTFOLIOS

REASONS TO RECOMMEND

A FLEXIBLE SOLUTION TO PENSIONS REFORMS We have designed Generation in collaboration with advisers, following the introduction of the new pensions freedoms, to offer a flexible and bespoke solution for retirement. The portfolios are aimed at retirees who may not want to buy an annuity, or would like a solution that allows them to remain invested at the same time as having an annuity, or would like to keep the option open to buying an annuity in the future. They also seek to help clients leave some or all of their pension savings to loved ones, should they so desire.

A FOCUS ON TOTAL RETURN AND BEATING INFLATION Our aim of delivering income and growing clients’ money seeks to provide a bespoke solution for finding a balance between yield and capital growth. This is different to many of the other retirement options available, where a choice has to be made between either ‘income’ or ‘growth.’ Moreover, we seek to protect against the ravages of inflation, as the Generation range targets returns above the consumer price index of either +3%, +4% or +5% over the medium term, depending on the portfolio. ACTIVE SHORT-TERM RISK MANAGEMENT Active short-term risk management forms a part of every stage of our portfolio construction process, to limit the risks that a poor sequence of returns permanently dents clients’ capital. This means the managers can act quickly to guard against losses in periods of market stress. The diversified nature of the portfolios, which hold uncorrelated sources of income, is also aimed at mitigating the risks of capital erosion.

DYNAMIC ASSET-ALLOCATION Each of the Generation portfolios is invested primarily in funds run by a variety of managers, across a wide array of asset classes. This approach facilitates exposure to multiple regions, sectors and fund-management styles. In addition to a focus on any short-term risks to the downside, all positions are monitored continuously with an eye on the interaction between the funds held, to ensure an appropriate blend is maintained. Each portfolio holds a core of directly invested equities, which offer the potential for growth and income.

PAUL CRAIG (pictured left) ANTHONY GILLHAMPORTFOLIO MANAGERS

WHAT YOUR CLIENTS CAN EXPECT We seek to deliver a strong total return, through focusing on short-term risk management and the diversification of investments across assets classes. This is aimed at allowing clients to draw down a regular income at the same time as offering the chance to growing their capital, in line with lifestyle goals and attitudes towards risk.

“Customers who rely on drawing down their pension savings for income, risk running out of money if their pension pots are subject to sharp dips. Generation aims to manage short-term dips and provide a smoother investment ride.”

OBJECTIVE To meet the needs of a new generation of retirees, who desire a flexible and bespoke solution. Generation seeks to enable clients to draw down from pension savings while remaining invested in markets, via a range of multi-asset portfolios. The portfolios seek to beat inflation and offer the potential for capital growth. At the same time, they aim to mitigate against the impact of market falls through a focus on short-term risk management.

SHORT-TERM RISK MANAGEMENT

Investment professionals onlyOld Mutual Generation Portfolios

INVESTMENT TEAMThe Generation portfolios are run by a team with vast experience in managing in equities, bonds, multi-asset funds and other alternative investments such as commodities and hedge funds.

ANTHONY GILLHAMAnthony joined Old Mutual in 2000 and is a portfolio manager within our multi-asset team. 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, holds the Investment Management Certificate and has over 15 years of experience.

PAUL CRAIGPaul 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 managers have complementary skills that should help ensure the portfolios function as they are designed to.

Anthony brings the models and tools he has used and developed for investment analysis. Paul comes with a wealth of experience in running multi-asset solutions, especially in dealing with the more niche areas of financial markets, which are key to the construction of the Generation portfolios. They are part of a broader multi-asset team, which has a depth of knowledge in fund and investment analysis.

THE GENERATION PORTFOLIOS AT A GLANCE

PHILOSOPHYWe seek to pick the best fund managers from across the world and among every asset class to construct diversified portfolios that enable investors to draw income, while at the same time offering the potential for capital growth.

By embedding risk management in every stage in the investment process, we aim to smooth the ride for retirees. An emphasis on income-generating strategies helps to do this, as they can give a ‘slow and steady’ profile to the portfolios that benefit from the power of compound interest.

TARGETINGCPI + 3%

GENERATION TARGET 3

TARGETINGCPI + 5%

GENERATION TARGET 5

TARGETINGCPI + 4%

GENERATION TARGET 4

Investment professionals onlyOld Mutual Generation Portfolios

PROCESSThe investment process for Generation portfolios is robust and consists of many layers.

GENERATION – HOW IS IT DIFFERENT?DESIGNED FOR THE NEEDS OF YOUR CLIENTS

STRATEGIC ASSET ALLOCATIONThe managers devote significant resources to making long-term, strategic decisions about what exact quantities of the assets available should be held within the portfolios.

Their process involves the use of proprietary investment models and a wide array of analytical tools. They draw on their own experience, as well in-depth analysis of economies and markets from internal and external resources, to establish trends and locate where the best opportunities might lie – and when to exploit them.

FUND MANAGER RESEARCHThe portfolio managers then single out those people running funds that appear best-placed to take advantage of market and macroeconomic trends. This process takes into account the expected return, volatility and level of correlation of the assets. And while this involves scouring the performance, process and philosophy of the underlying managers, it also entails looking at their organisations and resources as essential components of their capacity to outperform.

YIELD ASSETSAmong the mix of securities targeted by the portfolios, there is a focus on natural yield assets. The core of directly invested equities has a bias towards diversified sources of income and solid enterprises with attractive yields.

There is also a broader emphasis on the execution of investments, as well as the leveraging of the expertise of OMGI’s highly regarded UK and European stock-pickers.

VIGILANCE ON DOWNSIDE RISKSOn a shorter-term basis, the allocation of assets by the portfolio managers involves a persistent focus on avoiding the risk of losses and watching out for near-term catalysts. This is aimed at managing drawdowns and ‘journey’ risk. Still, because risk is managed at every stage of the investment process, there is less reliance upon tactical asset allocation.

The core of our investment philosophy and process, applied specifically to an income drawdown solution for advisers and their clients in the new pension landscape.

An optimal balance between natural yield and capital growth.

Multi-asset diversification with an equity core.

ACTIVE SHORT-TERM RISK MANAGEMENT

TOTAL RETURN FOCUS

GENUINE DIVERSIFICATION

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Building better solutions.

Investment professionals onlyOld Mutual Generation Portfolios

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OLD MUTUAL GLOBAL INVESTORS (UK) LTD

2 Lambeth Hill, London, EC4P 4WR, UK

Please remember that past performance is not a guide to future performance. Investment involves risks. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall. This communication provides information relating to funds known as Old Mutual Generation Funds (the “Fund”). This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591 559. The Fund is also regulated by the FCA and therefore Old Mutual Global Investors may promote the Fund to the public. This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Fund. Nothing in this document constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the prospectus and the key investor information document of the Fund which can be obtained from www.omglobalinvestors.com. Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Exchange rates may cause the value of overseas investments to rise or fall. The Fund may invest principally in units in collective investment schemes. OMGI 09/15/0032