The portfolios leverage the complementary skills of OMGI, in portfolio management, and Quilter Cheviot, in fund research – as well as pooling both businesses’ expertise in stock picking.
This helps ensure the portfolios benefit from the best investment opportunities available globally, including funds, direct equities and bonds, investment trusts, and alternative investments.
Run by co-investment directors Anthony Gillham and Ben Mountain, the new portfolios will be available through Old Mutual International (OMI) and Quilter Cheviot.
Managed risk
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.
Using a tactical approach to asset allocation, the portfolio managers will review the mix of assets on a regular basis to achieve the best possible returns for each portfolio.
Four options
The portfolios’ investment manager is OMGI, and they will be co-managed by Anthony Gillham and Sacha Chorley. There will be a range of four portfolios (Compass 2 to Compass 5) designed to match a different risk profile, with Compass 2 targeting the lowest level and Compass 5 the highest (based on a scale of one to five).
The portfolios will take a truly diversified approach across asset classes, with no specific biases towards regions, currencies or investment styles. They will be available in a number of key international currencies.
Risk-targeted investments
Marcel Bradshaw, sales director, OMI, said: “Compass will provide clients with access to industry leading portfolio management and research capability, wrapped up in the convenience of a fund. 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.”
Anthony Gillham, portfolio manager, Old Mutual Compass Portfolios, said: “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 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.”
