Omam chantilly feb12


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Omam chantilly feb12

  1. 1. Old Mutual Global EquityAbsolute Return FundFor professional clients only
  2. 2. Old Mutual Global Equity Absolute Return FundObjective• The fund aims to deliver absolute Targeting absolute returns that have a low correlation Global, diversified returns over rolling with equity and bond markets, through equity portfolio 12 month periods a market neutral portfolio of global equity stocks Return Low correlation to volatility target global stock markets of 6% Liquid, transparent Market neutrality – UCITS III fund with pure alpha daily dealing2 | Old Mutual Global Equity Absolute Return Fund
  3. 3. Equity and bond correlation60-day correlation 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: Bloomberg. MSCI World Index and JP Morgan Global Aggregate Bond Index3 | Old Mutual Global Equity Absolute Return Fund
  4. 4. GEAR: low correlation to equities and bonds60-day correlation since fund launch 100% Fund v equity correlation 80% Fund v bond correlation 60% 40% 20% 0% -20% -40% -60% -80% -100% Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11Source: Bloomberg. Old Mutual Global Equity Absolute Return Fund versus MSCI World Index and JP Morgan Global Aggregate Bond Index. Fund launched July 2009.4 | Old Mutual Global Equity Absolute Return Fund
  5. 5. Equity volatility is volatile!Efficient risk management in the fund 40% GEAR 60 Day Annualised Volatility 35% MSCI WORLD 60 Day Annualised Volatility 30% 25% 20% 15% 10% 5% 0% Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11Source: Bloomberg.5 | Old Mutual Global Equity Absolute Return Fund
  6. 6. The uses of market neutralityMore efficient portfolio 11 Global equities +10% Global Equity 10 Market Neutral Global equities ANNUALISED RETURN (%) 9 8 7 6 Analysis based on 5,000 random simulated portfolio allocations to 5 regional equity indices. 4 14 15 16 17 18 19 20 ANNUALISED RISK (%)Source: Performance based on net total returns to MSCI regional indices, and returns to the HFRX Equity Market Neutral index, from 31/1/99 to 28/2/11.6 | Old Mutual Global Equity Absolute Return Fund
  7. 7. Investment process - overview Stock selection Capital allocation Portfolio Final strategies to strategies construction portfolioResearch Portfolio• Rigorous implementation of clear, intuitive • Large opportunity set - 3,500 global stocks investment insights • Efficient, constrained, risk controlled• Historical strategy analysis spanning portfolio construction multiple economic cycles • Transparent performance attribution toForecasts alpha sources• Diversified alpha sources• Optimal capital allocation across alpha strategies based on expected payoffs• In-built risk control and downside risk mitigation7 | Old Mutual Global Equity Absolute Return Fund
  8. 8. Investment process – details Dynamic valuation • Attractive valuations Portfolio • Balance sheet quality construction Stock selection strategies Market dynamics Risk management • Strong medium & short-term trends • Downside risk control • Industries with macro support Capital allocation • Risk budget to strategies Return diversification Sustainable growth • Multiple strategies • Strong growth characteristics in response to • Broad opportunity set Final • Expectations likely to be fulfilled investor sentiment, portfolio risk environment and Structured process • Rigorous macroeconomics • Dispassionate Analyst sentiment • Analyst upgrades Portfolio controls • Market under-reaction • Sector/industry • Liquidity management Company management Market impact • Good investment decisions • Trading costs • Efficient use of capital • Turnover8 | Old Mutual Global Equity Absolute Return Fund
  9. 9. Dynamic valuation – cyclicality of value returnsExample: North America OMAM Valuation factor 101 Book to Price OMAM Quality factorCumulative returns 100 Jul81 Jul83 Jul85 Jul87 Jul89 Jul91 Jul93 Jul95 Jul97 Jul99 Jul01 Jul03 Jul05 Jul07 Jul09 Jul11Source: OMAM.9 | Old Mutual Global Equity Absolute Return Fund
  10. 10. Market neutral: more than portfolio construction 1.0 Dynamic valuation valuation Valuation 0.8 0.6 Correlation 0.4 0.2 - -0.2 -0.4 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: OMAM. Proprietary strategies versus MSCI World Index10 | Old Mutual Global Equity Absolute Return Fund
  11. 11. Strong performance with low correlation to equity andbond markets % return Correlation vs JP Morgan Global 1m 3m 6m 1y 2y MSCI World Index Bond Index Old Mutual Global Equity Absolute Return Fund 0.3% -0.9% 5.2% 12.6% 12.9% -0.1 -0.2 Morningstar GIF sector average* -2.8% -2.1% -9.0% -7.9% -5.6% - -• Fund ranked #1 in sector during 2011• A-rated in the new Citywire Alternative UCITS ratings Dynamic investment approach delivering strong performanceSource: OMAM/Morningstar, bid to bid, net income reinvested, US dollar terms. Periods to 31/12/2011. *Morningstar GIF sector average: GIF OS Alternative – Market Neutral - EquityCorrelation data since launch 01/07/09 to 31/12/2011.11 | Old Mutual Global Equity Absolute Return Fund
  12. 12. Important informationFor professional clients only, and not to be distributed to or relied upon by retail clients. Past performance is not a guide to future performance.This information is being communicated only to persons who have professional experience in matters relating to investments falling within Article 19(1) of the FinancialServices and Markets Act 2000 (Financial Promotion) Order 2001, as amended (the Order) and to persons to whom it may otherwise be lawful to communicate it to (allsuch persons being referred to as relevant persons). Other persons should not rely or act upon this document or any of its contents. The recipient should not use theinformation in this document in any way which would constitute market abuse.This document does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for,any securities nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. No representation or warranty,express or implied, is or will be made by OMAM, its advisors or any other person as to the accuracy, completeness or fairness of the information or opinions containedin this document and any reliance you place on them will be at your sole risk.The Company: Old Mutual Dublin Funds plc, 1 North Wall Quay, Dublin 1, Ireland. The Company is an Irish law umbrella UCITS authorised by the Central Bank ofIreland. The fund cited above is authorised for distribution in the UK, Italy, Spain, France, Sweden and Switzerland.Before any subscription, it is recommended that you read carefully the most recent simplified prospectus and review the latest financial reports published by the UCITS.The simplified prospectus, full prospectus, articles and latest annual report are freely available upon request to Société Générale, the centralising agent of the UCITS inFrance: Tour Granite 75886 Paris cedex 18 (Monsieur Hugues de VERGNES - Tél : 33 1 42 14 25 88).Old Mutual Dublin Funds plc is an Irish open ended investment company authorised by the Irish Financial Regulator and whose marketing in France is subject to theapproval of the AMF. The European Directive on collective investment schemes (UCITS), n° 85-611 dated 20 December 1985, established a set of common rules inorder to permit the cross border marketing of collective investment schemes complying with the directive. This common foundation did not prohibit different methods ofimplementation. This is why a European collective investment scheme may be marketed in France even though the activity of such scheme would not respect rulesidentical to those which are required for the approval of this type of product in France. The marketing licence for this Sub-Fund was given by the Autorité des MarchésFinanciers on 02 February 2010.This document is only aimed at professional clients as defined by Directive 2004/39/EC (MiFID) as the same has been applied into French law by article D. 533-11 ofthe French Code monétaire et financier; independent wealth management advisors and French independent investment advisors. This document is not destined for nonprofessional clients who do not have the experience, knowledge or competence needed to take their own investment decisions and correctly evaluate the risks involved.The information contained in this document has no contractual value.The performance data shown do not take account of the commission and costs incurred on the issue and redemption of shares.Issued by Old Mutual Asset Managers (OMAM), the trading name of Old Mutual Asset Managers (UK) Limited and Old Mutual Fund Managers Limited. Old MutualAsset Managers (UK) Limited, 2 Lambeth Hill, London EC4P 4WR, England. Registered in England No. 2949554. Authorised and regulated in the UK by the FinancialServices Authority. Telephone calls may be recorded for security purposes and to improve our customer service. 02/12/H286112 | Old Mutual Global Equity Absolute Return Fund