Investors and the Registrar of Collective Investment Schemes approved the change to the investment policy of the Old Mutual Real Income Fund and the fund can now include offshore assets in its portfolio. The effective date of the investment policy change was 1 November 2011.
Benefits of the change in investment philosophy
Exposure to foreign assets will mean the following:
- Increased variety of investment opportunities available to the fund. Different economies have different growth prospects and inflation rate regimes and, at times, the portfolio manager may be able to access higher yielding income assets or faster growing shares in other countries.
- Increased diversification – an investment tool that lowers risk and provides more stable returns over time.
- Currently, the fund competes well against competitor funds in the Asset Allocation-Prudential-Low Equity category which allows offshore exposure. To the end of September 2011, it ranked second out of 53 funds over three years and third out of 31 funds over five years.
- Exposure to foreign assets will allow the fund to continue delivering its return and risk objectives in future and also help to meet clients’ needs.
All other aspects stay the same
All other aspects of the fund including its objectives, name, classification, benchmark and annual service fee, as well as the portfolio manager, remain unchanged. The fund will also continue to comply with retirement fund legislation, i.e. Regulation 28 of the Pensions Fund Act.
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