To be run by head of multi-manager John Ventre, the range will initially be marketed under the Skandia name until the business rebrand has been completed – OMGI was formed earlier this year by the merger of Skandia Investment Group and Old Mutual Asset Managers.
The funds aim to generate a total investment return ahead of inflation, over a rolling investment period of either five or seven years, out of which each targets a different annual income yield.
Target 3:4 and Target 3:6 both share a target total investment return (including income) of CPI +3% over a rolling five-year average and have a Skandia Risk Profile rating of 3. The former has an annual income target of 4%, while the later aims for 6%.
Target 4:4 and Target 4:6 both aim higher at CPI +4% over a rolling seven-year average with a risk rating of 5. Again, the former has an annual income target of 4%, while the later aims for 6%.
Drawdown goals
The funds will invest across global equities, UK equities, bonds, alternatives, real return strategies and cash.
The range is marketed as being particularly relevant to investors in pension income drawdown who want to control the rate at which they drawdown funds from their retirement savings.
“Our four new funds offer a variety of income solutions and address a real gap in the market, in particular those looking to enter in to income drawdown, but who are concerned about whether their pension will last the distance,” said Ventre.
“With returns on cash and government bonds at, or near, historical lows and highly volatile equity markets, we believe that these products will form a complete outsourced solution to complement our Spectrum funds and prove to be highly popular with investors who are looking for income.”
Denominated in sterling, the funds carry an AMC of 1.25%, with a minimum investment level of £1,000. They will be immediately available via the Skandia Investment Solutions platform and via other platforms and channels in due course.