Peter joined Old Mutual Investment Group (SA) in May 2005 and is the head of the Macro Strategy boutique. In addition to managing third party institutional funds, including the Profile range, he also manages a number of unit trusts including the Old Mutual Flexible Fund, the Old Mutual Stable Growth Fund and the Old Mutual Real Income Fund. Having analysed countries and companies, Peter can integrate top-down and bottom-up drivers and valuations to create an optimal portfolio. Prior to Old Mutual, Peter worked at a stockbroker for 10 years as an analyst and equity strategist. He was the Head of Research and Head of Equities for Cazenove South Africa.
FUND OBJECTIVES AND FOCUS
Four Plus Growth Fund of Funds aims to maximise the growth of money over the longer term. To achieve this it invests in a portfolio of local shares, bonds as well as money market investments, with a bias towards shares offering long term value rather than those with more cyclical returns. Up to 15% of the portfolio may be invested offshore.
By actively moving between this investment mix, the fund manager pursues the growth opportunities of shares and bonds and the income offered by money market investments. Through diversification, the fund is able to reduce the risk of capital loss as poor performance of one asset may be offset by the stronger performance of other assets.
The Fund is suitable for investors looking for long term growth in excess of inflation and wanting an actively managed fund offering exposure to all sectors of the market, with potentially lower risk than a pure equity fund. These are investors who understand the risks and shorter term market volatility associated with an investment in shares and who are able to invest for at least 5 years.
This is a moderate risk fund (risk rating 3). The fund is exposed to share price movements, which are affected by the performance of individual companies, general market conditions as well as political and economic changes. The fund is also exposed to interest rate fluctuations. When rates rise, the bonds held by the fund will fall in value. When rates fall, the bonds held by the fund will increase in value. Risk is reduced by the following:
a) A portfolio diversified across industries minimises specific sectoral risks. Poor performance of one asset may be offset by stronger performance of other assets.
b) The short term nature of the fund's cash holding reduces its exposure to price fluctuations and interest rate risk.