For investment professionals only, Not for distribution to retail clients.
.

OLD MUTUAL
GLOBAL EQUITY ABSOLUTE
RETURN FUN...
OLD MUTUAL GLOBAL INVESTORS (UK) LIMITED
+44 (0)20 7332 7500 OMGLOBALINVESTORS.COM

Building better solutions
08/13/0039

EQUITY MARKETS: VOLATILE AND CHANGEABLE
270

MSCI WORLD EQUITY INDEX

250
230

150
130
110
90

1993

Source: F...
+

DIVERSIFIED

UNDIVERSIFIED

-1.0%

+1.0%

1995 - 1999
North
America

Europe Ex
UK

UK

2008 - 2012
Japan

North
America...
08/13/0039

NAVIGATING TO A SMOOTHER EQUITY RIDE

MSCI WORLD EQUITY INDEX

HRFX HEDGE FUNDINDEX

PURE BETA

ALPHA BETA

—
...
OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN
FUND
OBJECTIVE

 The fund aims to deliver absolute returns that
have a low corre...
STRONG PERFORMANCE GENUINELY UNCORRELATED
% RETURN

CORRELATION VS.

1 yr

Since
2 yrs p.a. 3 yrs p.a. inception p.a.*

MS...
UNCORRELATED RETURNS
Index down 21 out of 51 months between fund launch (30/06/2009) and 30/08/2013
Fund up 13 out of thes...
CONSISTENT RETURNS FOR A SMOOTHER RIDE

OLD MUTUAL GLOBAL EQUITY
ABSOLUTE RETURN FUND
ANNUALIZED VOLATILITY 5.5%

140
135
...
PERFORMANCE OVER ROLLING 12 MONTHS
• Over rolling 12 month periods, only 4 negative cases out of 40
• No negative cases af...
DISTRIBUTION OF MONTHLY RETURNS
• Typical returns in the range of -1% to +2% per month (73% of months)
• 7 out of 51 month...
MARKET INFORMATION

MANAGE INDUSTRY BIAS
STOCK
11

08/13/0039

STOCK SELECTION CRITERIA
03/13/0091

MARKET ENVIRONMENT
SENTIMENT/RISK SPECTRUM
 A market proxy to assess the market
environment in real time

HIS...
07/13/0072

TILT WEIGHTINGS BASED ON MARKET
ENVIRONMENT



Dynamic
valuation

13

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
...
Sulzer is a Swiss firm manufacturing pumping solutions and industrial equipment
 DYNAMIC VALUATION turned positive in
201...
FUND PERFORMANCE
LIVE RETURNS OF THE OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN US$ I SHARE CLASS (UCITS)

Jan

Feb

Mar

Ap...
FUND PERFORMANCE
Old Mutual
Global Equity Absolute
Return US$ I share class
(UCITS)

AUDITED RETURNS OF UCITS FUND
140
135...
Launch date

July 2009

Minimum investment

€, $, £:1,000 A (retail) share class; €, $, £100,000 I (institutional) share c...
OLD MUTUAL GLOBAL EQUITIES OFFERING

Old Mutual Japanese Equity Fund
Old Mutual North American Equity Fund
Old Mutual Glob...
OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND
140
130
120
110
100
90
80
Oct 2010

Apr 2011

Oct 2011

Apr 2012

Old Mutual...
OLD MUTUAL GLOBAL EQUITY FUND
180
170
160
150
140
130
120
110
100
90
80
Oct 2010

Apr 2011

Oct 2011

Old Mutual Global Eq...
OLD MUTUAL JAPANESE EQUITY FUND
160
150
140
130
120
110
100
90
80
Oct 2010

Apr 2011

Oct 2011

Old Mutual Japanese Equity...
OLD MUTUAL NORTH AMERICAN EQUITY FUND
200
180
160
140
120
100
80
Oct 2010

Apr 2011

Oct 2011

Old Mutual North American E...
APPENDIX
OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND
OLD MUTUAL’S GLOBAL EQUITY TEAM
WORKING TOGETHER FOR OVER 8 YEARS
• Managing over USD1.5 billion of hedge and long only gl...
STOCK SELECTION
CHARACTERISTICS

MARKET ENVIRONMENT
IDENTIFICATION

PORTFOLIO CONSTRUCTION
AND RISK MANAGEMENT
FRAMEWORK

...


 Attractive valuations considering both historic and forecast
information
 Trade off between paying dividends or futu...
03/13/0091

DYNAMIC VALUATION
CYCLICALITY OF VALUE RETURNS
PROTECTION FROM VALUE DRAW-DOWNS DURING PERIODS OF HIGH RISK AV...
 Strong but stable growth characteristics
 Considering both historic and expected growth rates
 Expectations likely to ...
 Changes in analyst forecasts contain price sensitive
information
 Capture market under/over reaction to analyst revisio...
 Evidence of strong management teams making good
investment decisions
 Efficient use of capital
 Signalling effect of d...
 Price driven information to identify trends
 Independent stock and industry information
 Looking for stable trends lik...
WEIGHTINGS
TO STOCK SELECTION CRITERIA OVER TIME
 Stock selection criteria are employed
to differing degrees, depending o...
Investment parameters – target volatility 5%-6%

LEVERAGE

REGIONAL ALLOCATIONS

CONSTRAINTS

 Gross leverage reset to 20...
01/13/0058

BIOGRAPHIES
DR. IAN HESLOP

DR. AMADEO ALENTORN, CFA

MIKE SERVENT

HEAD OF DESK/FUND MANAGER

FUND MANAGER

F...
01/13/0058

BIOGRAPHIES (CONSULTANTS)
DR. PETER POPE

DR. MARK SALMON

DR. STEPHEN SATCHELL

PROFESSOR OF ACCOUNTING

PROF...
01/13/0058

BIOGRAPHIES (CONSULTANTS)
DR. MIKHAIL CHERNOV

DR. CHRISTOPHER MALLOY

DR. IAN MARSH

ASSOCIATE PROFESSOR OF F...
IMPORTANT INFORMATION
There will be no public offering of Shares of Old Mutual Dublin Funds plc or Old Mutual Investment F...
IMPORTANT INFORMATION
This communication provides information relating to a fund known as Old Mutual Global Equity Absolut...
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  1. 1. For investment professionals only, Not for distribution to retail clients. . OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND October 2013, Citywire Miami OLD MUTUAL GLOBAL INVESTORS (UK) LIMITED +44 (0)20 7332 7500 OMGLOBALINVESTORS.COM Building better solutions
  2. 2. OLD MUTUAL GLOBAL INVESTORS (UK) LIMITED +44 (0)20 7332 7500 OMGLOBALINVESTORS.COM Building better solutions
  3. 3. 08/13/0039 EQUITY MARKETS: VOLATILE AND CHANGEABLE 270 MSCI WORLD EQUITY INDEX 250 230 150 130 110 90 1993 Source: FactSet, Old mutual Global Investors 2 DOMESTIC RECOVERY 170 EMERGING MARKETS TECHNOLOGY 190 FINANCIALS 210 2012
  4. 4. + DIVERSIFIED UNDIVERSIFIED -1.0% +1.0% 1995 - 1999 North America Europe Ex UK UK 2008 - 2012 Japan North America Asia Pacific Europe ex UK Europe ex UK UK UK Japan Japan Asia Pacific Asia Pacific Emerging Markets Emerging Markets Source: Factset, Old Mutual Global Investors 3 - Europe Ex UK UK Japan Asia Pacific 08/13/0039 VOLATILITY AND DIVERSIFICATION ARE TWO SIDES OF THE SAME PROBLEM
  5. 5. 08/13/0039 NAVIGATING TO A SMOOTHER EQUITY RIDE MSCI WORLD EQUITY INDEX HRFX HEDGE FUNDINDEX PURE BETA ALPHA BETA — + — VOLATILITY – + RETURNS Illustration only 4 OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND ALTERNATIVES EQUITIES HIGH ALPHA + — VOLATILITY – + DIVERSIFICATION – + RETURNS + VOLATILITY – + DIVERSIFICATION – + RETURNS – + DIVERSIFICATION
  6. 6. OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND OBJECTIVE  The fund aims to deliver absolute returns that have a low correlation with equity and bond markets, through a market neutral portfolio of global equity stocks 6% Global, diversified equity portfolio 5 Market neutral – pure alpha Return volatility target of 6% Low correlation to global stock markets
  7. 7. STRONG PERFORMANCE GENUINELY UNCORRELATED % RETURN CORRELATION VS. 1 yr Since 2 yrs p.a. 3 yrs p.a. inception p.a.* MSCI World Index JP Morgan Global Bond Index Old Mutual Global Equity Absolute Return Fund 11.1 7.7 10.4 7.1 0.05 (0.13) HFRX Equity Hedge: Equity Market Neutral 0.3 (2.3) (1.8) (1.8) 0.25 (0.15) Source: OMGI/Morningstar, bid to bid, net income reinvested. Old Mutual Global Equity Absolute Return Fund USD I share class. Periods to 09/30/2013 . Morningstar GIF sector average: GIF OS Alternative – Market Neutral – Equity. Correlation data since launch 07/01/2009 to 09/30/2013 6
  8. 8. UNCORRELATED RETURNS Index down 21 out of 51 months between fund launch (30/06/2009) and 30/08/2013 Fund up 13 out of these 21 months • • MSCI WORLD INDEX 2009 2010 2011 2012 2013 Oct Jan Apr May Jun Aug Nov Mar May Jun Jul Aug Sep Nov Dec Apr May Oct May June Aug -1.8 -4.2 -0.2 -9.9 -3.9 -1.2 -2.4 -1.9 -7.3 -8.8 -2.7 -0.2 -1.4 -9.0 -0.8 -0.3 -3.6 -2.3 -1.7 -2.6 -2.3 OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND 2009 Oct 2010 Jan Apr May Jun 2011 Aug Nov +1.5 +0.5 -0.2 Source: OMGI/MSCI Source: OMGI/MSCI 7 Mar May Jun Jul Aug 2012 Sep Nov +2.1 +1.4 +1.9 +1.7 +3.5 +3.3 -1.4 -1.7 -1.9 Dec Apr May +0.3 +1.2 -0.7 0.3 2013 Oct May June Aug +0.8 +1.8 +1.1 -0.3 -1.5
  9. 9. CONSISTENT RETURNS FOR A SMOOTHER RIDE OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND ANNUALIZED VOLATILITY 5.5% 140 135 130 MSCI WORLD INDEX ANNUALIZED VOLATILITY 14.4% 125 120 115 110 105 100 95 90 2010 2011 Old Mutual Global Equity Absolute Return (USD I shares) Source: FactSet, USD returns, 3 years to September 30, 2013 Annualized volatility calculated as the standard deviation of monthly returns 8 2013 201 2012 MSCI World Index USD
  10. 10. PERFORMANCE OVER ROLLING 12 MONTHS • Over rolling 12 month periods, only 4 negative cases out of 40 • No negative cases after October 2010, and no down calendar years • Best return +19.7% , and worst return -4.1% • Average 12 month period return has been 7.3% 20% 15% 10% 5% 0% -5% 2010 2011 2012 Source: Citi/OMGI, data as of 09/30/2013 for the Old Mutual Global Equity Absolute Return Fund USD I share class. Performance net of fees 9 2013
  11. 11. DISTRIBUTION OF MONTHLY RETURNS • Typical returns in the range of -1% to +2% per month (73% of months) • 7 out of 51 months with returns < -1%, and 20 months > +1% • Best month +4.2%, and worst month -3.1% 14 13 Number of months 12 13 11 10 8 6 6 4 3 2 0 0 1 -5% to -4% -4% to -3% -3% to -2% 2 0 -2% to -1% -1% to 0% 0% to 1% 1% to 2% 2% to 3% Source: Citi/OMGI, data as of 09/30/2013 for the Old Mutual Global Equity Absolute Return Fund USD I share class. Performance net of fees 10 2 3% to 4% 4 % to 5%
  12. 12. MARKET INFORMATION MANAGE INDUSTRY BIAS STOCK 11 08/13/0039 STOCK SELECTION CRITERIA
  13. 13. 03/13/0091 MARKET ENVIRONMENT SENTIMENT/RISK SPECTRUM  A market proxy to assess the market environment in real time HISTORIC MONTHLY MARKET ENVIRONMENTS SINCE JANUARY 1990  Identify current market environment on sentiment/risk spectrum MEDIUM RISK HIGH RISK PROPRIETARY ANALYSIS TO ASSESS THE MARKET ENVIRONMENT RISK ENVIRONMENT  Tilt weightings to criteria accordingly LOW RISK  Analyse expectations of the five stock selection criteria, given the current market environment PESSIMISTIC NEUTRAL MARKET SENTIMENT 12 OPTIMISTIC
  14. 14. 07/13/0072 TILT WEIGHTINGS BASED ON MARKET ENVIRONMENT  Dynamic valuation 13 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Market Dynamics — — — — — — — — — — — — — — — — Sustainable growth — — — — — — — — — — — — — — — — Analyst Sentiment — — — — — — — — — — — — — — — — Company Management
  15. 15. Sulzer is a Swiss firm manufacturing pumping solutions and industrial equipment  DYNAMIC VALUATION turned positive in 2010 as earnings expectations were not fully incorporated into its price SULZER % STOCK PERFORMANCE SUSTAINABLE GROWTH improved as the stock’s historic growth characteristics looked sustainable into the future ANALYST SENTIMENT was broadly positive over the period as market under-reacted to analyst forecasts COMPANY MANAGEMENT was positive but moving towards neutral due to recent acquisitions MARKET DYNAMICS was positive as manufacturing benefited from the global economic recovery Overall, there was wide support for opening a long position in April 2010, and after profiting from a strong rally, this position was closed as the company was then fairly priced Source: OMGI 14 SULZER % STOCK CHARACTERISTICS 03/13/0091 STOCK EXAMPLE: SULZER
  16. 16. FUND PERFORMANCE LIVE RETURNS OF THE OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN US$ I SHARE CLASS (UCITS) Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec YTD 0.9 2009 Jul 0.2 -1.7 1.5 -0.8 1.0 1.1 2010 0.5 0.4 0.6 -0.2 -1.4 -1.7 -0.4 -1.9 2.6 0.3 2.1 -0.5 0.3 2011 1.3 -0.2 1.4 0.8 1.9 1.7 3.5 3.3 -0.7 -1.0 -0.3 0.3 12.6 2012 -0.5 1.8 0.8 1.2 -0.3 -0.7 1.3 1.2 0.4 0.8 -1.6 -3.1 1.4 2013 4.2 1.4 3.0 4.2 1.8 1.1 0.3 -1.5 0.1 Source: Citi/OMGI, data as of 09/30/2013. Performance net of fees 15 15.5
  17. 17. FUND PERFORMANCE Old Mutual Global Equity Absolute Return US$ I share class (UCITS) AUDITED RETURNS OF UCITS FUND 140 135 130 Ann Return (net) 7.1% 125 Ann Risk 5.4% 120 Sharpe 115 Best up month 110 Jun 10 Jun 11 Jun 12 Jun 13 Old Mutual Global Equity Absolute Return Fund (UCITS) Source: Citi/OMGI, data as of 09/30/2013. Performance net of fees -3.1% % profitable months 100 16 4.2% Worst down month 105 95 Jun 09 1.3 69% Correlation with MSCI World 0.05
  18. 18. Launch date July 2009 Minimum investment €, $, £:1,000 A (retail) share class; €, $, £100,000 I (institutional) share class Annual management charge €, $, £: 1.5% for A (retail) share class; 0.75% for I (institutional) share class Performance fee 20% of outperformance above a hurdle rate (central bank base rate – semi annually) High water mark Yes Dealing frequency Daily Dealing cut off time/valuation point: 12 noon Irish time Share classes US dollars/euro/sterling (euro/sterling share classes are hedged against the US dollar base currency) Structure Ireland-domiciled UCITS fund 17 03/13/0078 OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND INVESTMENT DETAILS
  19. 19. OLD MUTUAL GLOBAL EQUITIES OFFERING Old Mutual Japanese Equity Fund Old Mutual North American Equity Fund Old Mutual Global Equity Absolute Return Fund Old Mutual World Equity Fund Old Mutual Asian Select Fund 18
  20. 20. OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND 140 130 120 110 100 90 80 Oct 2010 Apr 2011 Oct 2011 Apr 2012 Old Mutual Global Eq Abs Ret I USD Hgd ANNUALIZED PERFORMANCE Period Oct 2012 Apr 2013 BBA LIBOR 1M USD CALENDAR YEAR PERFORMANCE Fund % Sector average % Fund % Sector average % Quartile rank Quartile rank YTD 15.5 3.7 1 2012 1.4 8.9 4 1 year 11.1 5.7 1 2011 12.6 -1.3 1 3 years 10.4 5.3 1 2010 0.3 1.2 3 5 years - - - Source: OMGI data as of 09/30/2013 19
  21. 21. OLD MUTUAL GLOBAL EQUITY FUND 180 170 160 150 140 130 120 110 100 90 80 Oct 2010 Apr 2011 Oct 2011 Old Mutual Global Equity Fund Apr 2012 Mstar (IMA) Global Growth (sector average) ANNUALIZED PERFORMANCE Period Oct 2012 Apr 2013 MSCI World Index (benchmark) CALENDAR YEAR PERFORMANCE Fund % Sector average % Fund % Sector average % Quartile rank Quartile rank YTD 30.5 16.6 1 2012 12.9 10.1 1 1 year 32.9 18.9 1 2011 -3.9 -9.5 1 3 years 17.5 8.8 1 2010 20.1 16.5 1 5 years 12.8 10.0 1 2009 13.5 24.0 4 2008 -24.5 -24.4 3 Source: OMGI data as of 09/30/2013 20
  22. 22. OLD MUTUAL JAPANESE EQUITY FUND 160 150 140 130 120 110 100 90 80 Oct 2010 Apr 2011 Oct 2011 Old Mutual Japanese Equity Fund Apr 2012 Mstar (IMA) Japan (sector average) ANNUALIZED PERFORMANCE Period Oct 2012 Apr 2013 MSCI Japan (benchmark) CALENDAR YEAR PERFORMANCE Fund % Sector average % Fund % Sector average % Quartile rank Quartile rank YTD 33.2 27.0 1 2012 0.1 3.2 4 1 year 34.8 32.9 2 2011 -3.3 -11.4 1 3 years 13.2 10.0 1 2010 24.0 19.7 1 5 years 11.2 9.5 1 2009 6.6 -2.1 4 2008 0.3 -0.4 2 Source: OMGI data as of 09/30/2013 21
  23. 23. OLD MUTUAL NORTH AMERICAN EQUITY FUND 200 180 160 140 120 100 80 Oct 2010 Apr 2011 Oct 2011 Old Mutual North American Equity Fund Apr 2012 Mstar (IMA) North America (sector average) ANNUALIZED PERFORMANCE Period Oct 2012 Apr 2013 MSCI North America Index (benchmark) CALENDAR YEAR PERFORMANCE Fund % Sector average % Fund % Sector average % Quartile rank Quartile rank YTD 30.3 22.4 1 2012 5.8 7.2 3 1 year 28.4 20.1 1 2011 5.4 -1.3 1 3 years 18.7 13.5 1 2010 21.5 18.2 1 5 years 13.4 11.8 1 2009 12.7 19.1 4 2008 -22.4 -18.1 4 Source: OMGI data as of 09/30/2013 22
  24. 24. APPENDIX OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND
  25. 25. OLD MUTUAL’S GLOBAL EQUITY TEAM WORKING TOGETHER FOR OVER 8 YEARS • Managing over USD1.5 billion of hedge and long only global equity funds* DR IAN HESLOP HEAD OF TEAM/FUND MANAGER Ian joined the team in May 2004 and has over 16 years of investment experience including Old Mutual and BGI. Ian holds a BA in Chemistry (Oxford) and a PhD in Medicinal Chemistry (Edinburgh) DR AMADEO ALENTORN, CFA FUND MANAGER Amadeo joined the team in January 2005. He has extensive investment experience including the Bank of England. Amadeo holds a BEng in Robotics (Plymouth), a MSc in Computer Science and PhD in Computational Finance (Essex). SUPPORTED BY A TEAM OF SPECIALISTS FUND MANAGER Mike joined the team in November 2004 and has over 13 years of investment systems experience, including Barra International and COR Risk Systems. He holds a BA in Physics from Oxford. EXTERNAL RESEARCH ACADEMIC ADVISORY BOARD DR YUANGAO LIU LAWRENCE CLARK 5 years at Old Mutual Global Investors 6 years at Old Mutual Global Investors SENIOR ANALYST MIKE SERVENT ANALYST External team of academic experts in fields including accounting, macroeconomics and statistics. VIRTUAL LABORATORY External team of postgraduate researchers sponsored to work on short term projects of mutual interest. *Source: OMGI as of 09/30/2013 Ian Heslop, Amadeo Alentorn and Mike Servent are Citywire AAA rated for their risk-adjusted performance for the periods 31/08/2010 to 31/08/2013 24
  26. 26. STOCK SELECTION CHARACTERISTICS MARKET ENVIRONMENT IDENTIFICATION PORTFOLIO CONSTRUCTION AND RISK MANAGEMENT FRAMEWORK STOCK LEVEL MARKET LEVEL PORTFOLIO RISK MANAGEMENT  Large opportunity set ~ 3,500 global stocks  Complementary stock selection criteria provides diversified alpha sources  Efficient, constrained, risk controlled portfolio construction  Rigorous implementation of clear, intuitive investment insights  Analysis using five tried and tested stock selection criteria spanning multiple economic cycles  Downside risk mitigated by controlling unwanted exposures 25  Dynamic weighting of those criteria based on expected payoffs in prevailing market environment  In-built volatility control and downside risk mitigation  Correlation management to further control risk 03/13/0091 OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND INVESTMENT PROCESS & PORTFOLIO CONSTRUCTION
  27. 27.   Attractive valuations considering both historic and forecast information  Trade off between paying dividends or future growth  Incorporating quality to reduce the downside risk of value investing DYNAMIC VALUATION  Difference between mispricing and risk  Impact of market risk appetite on expectations on returns to value 26 03/13/0091 INVESTMENT PROCESS – STOCK SELECTION CRITERIA DYNAMIC VALUATION
  28. 28. 03/13/0091 DYNAMIC VALUATION CYCLICALITY OF VALUE RETURNS PROTECTION FROM VALUE DRAW-DOWNS DURING PERIODS OF HIGH RISK AVERSION Dynamic valuation criteria Book to price Return p.a. Risk p.a. Sharpe Sortino Dynamic valuation 27 7.4% 1.3 3.0 Book to price Source: OMGI. Performance of long short quintile portfolios in North America from August 1981 to February 2013 9.8% 3.4% 15.3% 0.2 0.4
  29. 29.  Strong but stable growth characteristics  Considering both historic and expected growth rates  Expectations likely to be fulfilled  Avoidance of ‘one hit wonders’ SUSTAINABLE GROWTH 28  Protection from downturns in economic growth cycles 03/13/0091 INVESTMENT PROCESS – STOCK SELECTION CRITERIA SUSTAINABLE GROWTH
  30. 30.  Changes in analyst forecasts contain price sensitive information  Capture market under/over reaction to analyst revisions  Incorporate asymmetric behaviour of analysts and markets ANALYST SENTIMENT 29  Market reaction will vary according to company characteristics 03/13/0091 INVESTMENT PROCESS – STOCK SELECTION CRITERIA ANALYST SENTIMENT
  31. 31.  Evidence of strong management teams making good investment decisions  Efficient use of capital  Signalling effect of dividends and share buybacks COMPANY MANAGEMENT 30  Impact of balance sheet bloat/empire building  Implications of acquired vs organic growth 03/13/0091 INVESTMENT PROCESS – STOCK SELECTION CRITERIA COMPANY MANAGEMENT
  32. 32.  Price driven information to identify trends  Independent stock and industry information  Looking for stable trends likely to persist MARKET DYNAMICS 31  Avoiding bubbles by looking for trends with fundamental support  Accounting unintended biases in trends 03/13/0091 INVESTMENT PROCESS – STOCK SELECTION CRITERIA MARKET DYNAMICS
  33. 33. WEIGHTINGS TO STOCK SELECTION CRITERIA OVER TIME  Stock selection criteria are employed to differing degrees, depending on the environment  This is based on performance attribution of the alpha sources  Dynamic valuation, analyst sentiment and market dynamics tend to have the highest allocations to stock selection decisions PORTFOLIO WEIGHTINGS BY CRITERIA (%) DYNAMIC VALUATION SUSTAINABLE GROWTH ANALYST SENTIMENT COMPANY MANAGEMENT MARKET DYNAMICS Source: OMGI. Data from January 1994 to March 2013 Positions correct at the end of September 2013 32
  34. 34. Investment parameters – target volatility 5%-6% LEVERAGE REGIONAL ALLOCATIONS CONSTRAINTS  Gross leverage reset to 200% approx. each time we trade  33% North America (30-35% constrained)  Net countries constrained at +/- 3%  Net leverage reset to 0% at each trading day  33% Pan Europe (30-35% constrained)  Net sectors constrained at +/- 10%  17% Asia ex Japan (15-20% constrained)  17% Japan (15-20% constrained) 33  Net regions constrained at +/- 0.3%  Net industries constrained at +/- 10%  Stocks constrained at ~ +/- 1% 08/13/0072 RISK CONTROLLED PORTFOLIO CONSTRUCTION
  35. 35. 01/13/0058 BIOGRAPHIES DR. IAN HESLOP DR. AMADEO ALENTORN, CFA MIKE SERVENT HEAD OF DESK/FUND MANAGER FUND MANAGER FUND MANAGER Ian Heslop joined the team in 2004 from OMGI’s Global Equities team, where he was a fund manager specialising in the global technology and biotechnology sectors. He joined the Old Mutual group from Barclays Global Investors, where he was a UK quantitative fund manager. Ian has a BA in Chemistry from Oxford University and completed a PhD in Medicinal Chemistry at Edinburgh University. Amadeo Alentorn is responsible for directing the investment research programme. He joined OMGI in January 2005, while completing a PhD in Computational Finance at the University of Essex (2006). During his doctoral research he developed a new option pricing model using extreme value theory, collaborated with the Bank of England (2004-2005) developing simulation models for systemic and liquidity risk. Prior to this he worked as a software developer for CAD systems and for robotic applications. Amadeo holds a BEng in Robotics from the University of Plymouth (2000), an MSc in Computer Science from the University of Essex (2001) and is a CFA charter holder. Mike Servent joined OMGI in November 2004 from Barra International where he was a Senior Consultant specialising in the implementation of multi asset-class risk systems. Prior to this he spent five years with COR Risk Solutions, which developed the optimisation, backtesting and modelling software. At COR he worked as Commercial Development Manager as well as undertaking research projects with various clients. Mike has an MA in Physics from Oxford University. DR. YUANGAO LIU LAWRENCE CLARK SENIOR ANALYST ANALYST Yuangao Liu joined OMGI in November 2007 from Jacobs UK, where he was a structural engineer specialising in building computer models to solve a variety of engineering problems. Previously he was a project research assistant at Tsinghua University, Beijing. Yuangao has a PhD in Structural Engineering from Imperial College, London and a BEng in Civil Engineering from Tsinghua University, Beijing. He is a FRM charterholder. Lawrence Clark joined OMGI in November 2006, having spent the previous year as a postgraduate physicist at Oxford University conducting research into carbon nanomaterials for quantum information processing. Lawrence has an MPhys from Oxford University, specialising in financial market complexity and computer programming. 34
  36. 36. 01/13/0058 BIOGRAPHIES (CONSULTANTS) DR. PETER POPE DR. MARK SALMON DR. STEPHEN SATCHELL PROFESSOR OF ACCOUNTING PROFESSOR OF FINANCE CASS BUSINESS SCHOOL, CITY UNIVERSITY UNIVERSITY OF CAMBRIDGE READER IN FINANCIAL ECONOMETRICS/FELLOW OF TRINITY COLLEGE UNIVERSITY OF CAMBRIDGE Peter Pope has researched and published extensively in the areas of capital markets, financial reporting and international equity valuation. Prior to his current role in OMGI’s Academic Advisory Board, he was Head of the VLab research program in the team from 2006 to 2010. Before joining Cass in 2011, Peter Pope previously held academic positions at Lancaster University Management School, Strathclyde Business School and Liverpool University. He has also been visiting professor at the Stern School, New York University, and the University of California at Berkeley. He is a qualified accountant and was a member of the U.K. Accounting Standards Board Academic Panel. 35 Mark Salmon’s current research interests lie in financial econometrics, behavioural finance and aspects of international macroeconomics. He is Professor of Finance at the University of Cambridge as well as External Professor at the European University Institute in Florence. He currently also acts as a consultant to the Bank of England and is a Research Fellow of the Centre for Economic Policy Research associated with the International Macro Programme. He has served as a consultant to a number of city institutions and was a member of a task force set up by the European Commission to consider exchange rate policy for the euro. Mark has a BA from Essex University and an MSc from the London School of Economics. He has published widely in academic journals, including Econometrica, The Annals of Statistics, Journal of Econometrics, the Economic Journal, the Journal of Economic Dynamics and Control, Journal of Empirical Finance and the International Economic Review. Stephen Satchell focuses on both empirical and theoretical aspects of econometrics, finance, risk measurement and utility theory. His very strong econometric techniques knowledge has proved invaluable for OMGI’s team. Steve is a reader in financial econometrics at Cambridge, a Fellow of Trinity College, Cambridge, and a visiting fellow at Birkbeck College, University of London. He holds two PhDs (Cambridge and London), an MSc (Sydney) and an MA (Cambridge). He has refereed widely in academic journals and has affiliations with professional bodies in finance. He has published widely in varied areas of finance, including equity return and risk models, style rotation, asset allocation, trading rules, volatility, option prices, exchange rates, and property markets.
  37. 37. 01/13/0058 BIOGRAPHIES (CONSULTANTS) DR. MIKHAIL CHERNOV DR. CHRISTOPHER MALLOY DR. IAN MARSH ASSOCIATE PROFESSOR OF FINANCE ASSISTANT PROFESSOR OF BUSINESS ADMINISTRATION PROFESSOR OF FINANCE LONDON BUSINESS SCHOOL CASS BUSINESS SCHOOL, CITY UNIVERSITY HARVARD BUSINESS SCHOOL, FINANCE UNIT Mikhail Chernov’s research focuses on empirical asset pricing problems and applications of econometric methods to finance. His main areas of interest are options, volatility, fixed income and credit and he makes a strong contribution to our growing expertise in non-equity asset classes. Mike is an Associate Professor of Finance at the London Business School. Formerly he was an Associate Professor of Finance at Columbia Business School in New York. He holds BS and MS degrees from Moscow State University and a PhD in Finance from Pennsylvania State University. He has published in the Journal of Finance, the Journal of Econometrics and the Journal of Financial Economics. 36 Christopher Malloy’s main interests lie in the behavioural aspects of empirical finance. His research concentrates on asset pricing, investments and portfolio choice and he helps to continue to advance our equity strategies. Chris is Assistant Professor of Business Administration in the Finance Unit of Harvard Business School. Prior to this he was Assistant Professor of Finance at the London Business School, having previously been a Research and Teaching Assistant at the University of Chicago's Graduate School of Business and a Research Assistant at the Washington DC Board of Governors of the Federal Reserve System. He has a BA in Economics from Yale University and a PhD in Finance and an MBA from the University of Chicago. He has published in the Journal of Finance. Ian Marsh’s areas of expertise include exchange rate modelling and forecasting, credit risk modelling and applied financial econometrics. He spent four years as a banker and economist prior to completing his PhD and has spent time as a researcher at the International Monetary Fund and the Bank of England’s Financial Stability area, as well as acting as a consultant to a range of financial institutions. Ian has a BA from Sheffield University, an MSc from Birkbeck College, University of London and a PhD from Strathclyde University, all in economics. He has published in many journals including the Journal of Finance, Journal of Monetary Economics, Review of Economics & Statistics, Journal of International Money and Finance & Explorations in Economic History.
  38. 38. IMPORTANT INFORMATION There will be no public offering of Shares of Old Mutual Dublin Funds plc or Old Mutual Investment Funds Series II in the United States. The Shares will not generally be available to US Persons, unless they are, among other things, "accredited investors" (as defined in Rule 501(a) of Regulation D under the US Securities Act of 1933, as amended (the "1933 Act")), and "qualified purchasers" (as defined in Section 2(a)(51) of the US Investment Company Act of 1940, as amended (the "1940 Act")). The Shares have not been and will not be registered under the 1933 Act or the securities laws of any of the states of the United States, nor is such registration contemplated. The Shares may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any US Person except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and any applicable state laws. Any re-offer or resale of any of the Shares in the United States or to US Persons may constitute a violation of US law. There is no public market for the Shares in the United States and no such market is expected to develop in the future. The Shares offered hereby are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Articles, the 1933 Act and applicable state securities law pursuant to registration or exemption therefrom. The Shares are being offered outside the United States pursuant to the exemption from registration under Regulation S under the 1933 Act and inside the United States in reliance on Regulation D promulgated under the 1933 Act and Section 4(2) thereof. Old Mutual Dublin Funds plc or Old Mutual Investment Funds Series II is not registered as an investment company in the United States under the US Investment Company Act of 1940, as amended, and its shares are not registered under the US Securities Act of 1933, as amended (“Securities Act”). Shares of Old Mutual Dublin Funds plc may not be available for offered or sold, directly or indirectly in the United States or to any US Person. A US person is defined as (a) any individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organised under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income tax regardless of whether such income is effectively connected with a United States trade or business. 37
  39. 39. IMPORTANT INFORMATION This communication provides information relating to a fund known as Old Mutual Global Equity Absolute Return Fund (the “Fund”), which is a sub-fund of Old Mutual Dublin Funds plc. Old Mutual Dublin Funds plc is an investment company with variable capital established as an umbrella fund with segregated liability between subfunds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended, Registered in Ireland under registration number 351238. Registered office: 1 North Wall Quay, Dublin 1, Ireland. 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 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. 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 any of the amount originally invested. Exchange rates may cause the value of overseas investments to rise or fall. The Fund may invest more than 35% of scheme property in transferable securities and money market instruments issued or guaranteed by an EEA State. Shares in the Fund are sold by a prospectus only. The prospectus and the key information investor document (“KIID”) contains complete information on risk factors and fees that may apply and should be read carefully before investing. The prospectus and the KIID are available free of charge at: / Old Mutual Dublin Funds plc, c/o Citibank Europe plc, 1 North Wall Quay, Dublin 1, Ireland. OMGI 10/13/0023 38
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