Q2 2015

TAILORING YOUR INCOME NEEDS

OLD MUTUAL GENERATION FUNDS

Old Mutual Generation Funds

ASSESSING YOUR INCOME NEEDS When you’re accumulating your investment wealth, your attitude to how much risk you’re willing to take is generally expressed in terms of how much loss you’re prepared to accept for a potential future gain. However when you’re looking to draw an income, risk can be expressed in terms of not having enough money to maintain your standard of living. That’s why our Generation funds are designed to enable you to draw an income from your investments, whilst aiming to manage the rate at which you erode your capital.

INVESTMENT EXPERTISE

Each Generation fund is a multi-manager fund, which means that it invests in a broad mix of fund managers in different asset classes. Depending on which fund you choose, these managers are mixed together with the aim of generating a total investment return (i.e. capital and income) of either 3% or 4% ahead of the Consumer Price Index (CPI) inflation rate over a rolling five or seven year investment period. Out of this the funds then target an annual income of either 4% or 6%. It’s important to remember that both the total investment return and income targets are not guaranteed and you may get back less than your original investment.

GENERATING AN INCOME

In order to draw an income from your investments over the long term, you need to ensure you don’t deplete your investments too quickly. That’s why the funds aim to generate a total return in excess of the CPI rate of inflation.

CAPITAL EROSION

However in order to derive an income, the assets which your money is invested in ideally need to produce a natural level of income. If these assets don’t produce the required natural level of income, you may have to cash in portions of your investment to make up all, or some, of the shortfall. This would have the effect of eroding your capital much quicker and could potentially reduce the amount of income you can take each year.

Past performance is no guide to the future. Your capital value may reduce by withdrawing income.

Old Mutual Generation Funds

MANAGING THE SCALE OF CAPITAL EROSION

Whilst the Generation funds aim to produce a natural income from a globally diversified range of funds and assets, the one thing stock markets continue to remind us is that nothing is guaranteed and that past performance is no guide to the future. Therefore should the natural income produced by the Generation funds be lower than the annual income target of either 4% or 6% then, rather than selling units i.e. cashing in a portion of your investment, the fund employs a complementary strategy to supplement the income. This strategy works by selling some potential future growth of the fund’s holdings using derivatives (i.e. selling a call option). The fund receives a premium for the option that is added to the natural income generated by the fund. Whilst the call option strategy may be used to enhance the income produced by the funds, as with all investments there is no guarantee that the income targets will be achieved.

RISK RATED TO SUIT YOUR NEEDS

The Generation funds are risk rated and not risk targeted like our Spectrum fund range. That’s because the Generation funds have specific income targets. The level of volatility they may need to take, in order to achieve their targets, might change over time.

WHAT IS THE DIFFERENCE BETWEEN RISK RATING AND RISK TARGETING? Risk rated funds like the Generation fund range are assigned a level of risk that represents how the funds are likely to behave on average over the long term. This may change in the short term due to, for example, market volatility, or if the portfolio manager needs to invest in higher income producing strategies. An example being the call option strategy mentioned above, which might increase or decrease the level of risk that the funds are exposed to. If the funds persistently need to take more risk their risk ratings may change. Risk targeted funds, such as our Spectrum fund range, are managed in a way that aims to maximise returns to investors within predefined risk or volatility parameters. These parameters do not change, but rather, the fund is managed to ensure it stays within these bands.

THE GENERATION FUND RANGE Your financial adviser will assess your personal circumstances, attitude to risk and investment objectives as part of their ‘fact find’ process and will be able to recommend a suitable Generation fund for you from the range of four funds. The targets vary as shown below and are not guaranteed. Please remember that you will need to hold the funds for a minimum of five or seven years depending on the fund you invest in to help to achieve the total investment return target.

Generation Funds

Total Investment Return Target (including income)1

Annual Income Target

Effect on Capital Return (after income)2

Risk Rating (expected Old Mutual risk profile)3

Target 3:4

CPI + 3% p.a. over a rolling five year average

4% p.a.

CPI -1% p.a. over a rolling five year average

3

Target 3:6

CPI + 3% p.a. over a rolling five year average

6% p.a.

CPI -3% p.a. over a rolling five year average

3

Target 4:4

CPI + 4% p.a. over a rolling seven year average

4% p.a.

CPI p.a. over a rolling seven year average

5

Target 4:6

CPI + 4% p.a. over a rolling seven year average

6% p.a.

CPI -2% p.a. over a rolling seven year average

5

1 – Target is after all fund management fees and net of basic rate tax. For details of the fund management fees, please see the fund factsheets which are available from www.omglobalinvestors.com 2 – Based on the total investment return target 3 – Funds are risk rated not risk targeted. See fund facts section for more information

INCOME PAYMENT DATES: 31 March, 30 June, 30 September, 31 December

Old Mutual Generation Funds

CURRENT ASSET ALLOCATIONS The Generation funds are a range of four multi-manager, multi-asset solutions. The asset allocations for each fund are reviewed on a quarterly basis, which helps to ensure they achieve their expected capital return and income targets.

GENERATION TARGET 3:4

GENERATION TARGET 3:6

OBJECTIVE The Fund aims for an annual return on your investment at a level of 3% above the UK rate of inflation over rolling 5 year periods generated through a combination of returns on income and capital. Out of this return it aims to achieve regular income of 4% per annum.

OBJECTIVE The Fund aims for an annual return on your investment at a level of 3% above the UK rate of inflation over rolling 5 year periods generated through a combination of returns on income and capital. Out of this return it aims to achieve regular income of 6% per annum.

ASSET ALLOCATION 3:4

3:4

4:4

ASSET ALLOCATION

3:4

3:6

3:6

Cash on Deposit, Call Option Overlay and Futures Overlay 15.23%

Cash on Deposit and Call Option Overlay 20.64%

Global Equities 19.47%

Global Equities 15.69%

UK Equities 14.39%

UK Equities 14.58%

Fixed Income 27.74%

Fixed Income 27.23%

Alternative Strategies 4.08%

Alternative Strategies 4.61%

Real Return 19.09%

Real Return 17.25%

3:4

3:6

4:4

4:6

3:6

4:6

GENERATION TARGET 4:4

GENERATION TARGET 4:6

OBJECTIVE The Fund aims for an annual return on your investment at a level of 4% above the UK rate of inflation over rolling 7 year periods generated through a combination of returns on income and capital. Out of this return it aims to achieve regular income of 4% per annum.

OBJECTIVE The Fund aims for an annual return on your investment at a level of 4% above the UK rate of inflation over rolling 7 year periods generated through a combination of returns on income and capital. Out of this return it aims to achieve regular income of 6% per annum.

ASSET ALLOCATION 4:4

4:4

ASSET ALLOCATION 4:6

Cash on Deposit and Call Option Overlay 15.39%

4:6

Cash on Deposit and Call Option Overlay 26.93%

Global Equities 29.50%

Global Equities 21.76%

UK Equities 20.70%

UK Equities 19.44%

Fixed Income 10.03%

Fixed Income 8.34%

Alternative Strategies 4.00%

Alternative Strategies 3.86%

Real Return 20.38%

Real Return 19.67%

The charts above show the current asset allocation for each of the four Generation funds at 30/06/2015. Totals may not equal 100 due to rounding.

Old Mutual Generation Funds

MANAGER BREAKDOWN The multi-asset team at Old Mutual Global Investors support the principle that no single fund management group can be the best in every asset class. Rather than manage stocks directly, it concentrates on ‘managing the managers’, by blending together portfolios of high quality investment managers who are experts in their own particular fields. Asset Allocation Cash

The team has employed this principle in selecting the underlying investments for the Generation fund range. Many of the investments offered in the funds are normally only accessible to institutional investors or the very wealthy, but are available to you as a result of the teams size and buying power.

The table below shows the current asset allocation for each manager with each of the Generation funds as at 30 June 2015. Not every manager is represented in every fund.

Fund Name

Seg Mandate or Retail/Inst’l Fund

Fund Manager

3:4

3:6

4:4

4:6

Held on deposit

–

–

3.44%

5.11%

1.94%

6.33%

Futures overlay offset*

–

–

10.37%

10.29%

12.02%

15.35%

Old Mutual Asian Equity

Retail Fund

Old Mutual Global Investors

5.10%

5.36%

9.04%

8.74%

Hermes Asia Ex-Japan Equity Fund

Retail Fund

Hermes

0.01%

0.01%

0.02%

0.02%

Equity Overlay

Segregated Mandate

Old Mutual Global Investors

-4.57%

-9.42%

-4.58%

-10.79%

Old Mutual Global Equity Income

Segregated Mandate

O'Shaughnessy

6.11%

6.58%

6.10%

5.85%

Pershing Square Holdings

Retail Fund

Pershing Square

1.48%

1.78%

2.11%

2.11%

Montanaro Equity Income Fund

Retail Fund

Montanaro

3.27%

3.51%

6.38%

6.16%

JPM US Equity Income Fund

Retail Fund

JP Morgan

2.55%

1.88%

3.71%

3.25%

Old Mutual Voyager Global Dynamic Equity

Retail Fund

Old Mutual Global Investors

5.52%

6.02%

6.73%

6.46%

Old Mutual Voyager Global Dynamic Equity Fund underlying managers are:

Global Equities

Metisq Asia Pacific ex Japan Mandate

Segregated Mandate

Metisq

7.26%

Schroders Asia Mandate

Segregated Mandate

Schroders

8.23%

Macquarie Asia Mandate

Segregated Mandate

Macquarie

6.25%

Dalton Japanese Equity Mandate

Segregated Mandate

Dalton

5.55%

Argonaut European Alpha Mandate

Segregated Mandate

Argonaut

7.58%

Mandarine European Value Mandate

Segregated Mandate

Mandarine Gestion

6.70%

Wellington European Large-Cap Value Mandate

Segregated Mandate

Wellington

5.22%

Old Mutual Global Investors UK Equity Mandate

Segregated Mandate

Old Mutual Global Investors

7.43%

Cupps US All-Cap Growth Mandate

Segregated Mandate

Cupps

6.82%

Lapides US Mid-Cap Value Mandate

Segregated Mandate

Lapides

5.77%

QMA US Value Mandate

Segregated Mandate

QMA

7.61%

Wellington US All Cap Opportunities Mandate

Segregated Mandate

Wellington

3.82%

AllianceBernstein US Factors Mandate

Segregated Mandate

AllianceBernstein

3.44%

Jardim Botanico

Segregated Mandate

Jardim Botanico

4.27%

RenAsset

Segregated Mandate

RenAsset

6.10%

Aubrey Asian Consumption Mandate

Retail Fund

Aubrey

2.75%

DWS Agribusiness Fund

Retail Fund

DWS

2.13%

Futures Overlay

Segregated Mandate

Old Mutual Global Investors

3.07%

* Please refer to glossary.

Old Mutual Generation Funds

Asset Allocation

UK Equities

Fund Name

Segregated Mandate or Retail/ Institutional Fund

Liontrust Macro UK Income Fund

Retail Fund

Old Mutual Equity 1 Mandate

Fund Manager

3:4

3:6

4:4

4:6

Liontrust

5.59%

5.56%

7.11%

6.82%

Segregated Mandate

Old Mutual Global Investors

2.85%

3.09%

5.17%

4.96%

Schroders Income Fund

Retail Fund

Schroders

5.95%

5.95%

8.42%

7.68%

JPM Income Opportunities Plus

Retail Fund

JP Morgan

1.18%

1.31%

0.77%

0.74%

Schroders GAIA Global Macro Bond Fund

Retail Fund

Schroders

0.68%

0.76%

0.66%

0.63%

Investec EMD Local Currency Fund

Retail Fund

Investec

1.61%

1.79%

0.75%

0.72%

Old Mutual Local Currency Emerging Market Debt Mandate

Segregated Mandate

Stone Harbor

2.84%

2.77%

1.48%

1.13%

Fixed Income Overlay

Segregated Mandate

Old Mutual Global Investors

-7.19%

-5.98%

-8.84%

-9.69%

M&G Optimal Income Fund

Retail Fund

M&G

3.86%

3.79%

1.92%

1.85%

Old Mutual Bond 1 Mandate

Segregated Mandate

TwentyFour

4.79%

3.89%

2.59%

2.48%

Old Mutual Gilt Mandate

Segregated Mandate

Blackrock

1.90%

0.95%

0.33%

0.32%

US Inflation Linked Bonds

Retail Fund

Ishares Team

2.68%

3.50%

1.63%

1.65%

Alfred Berg Hoyrente

Retail Fund

Alfred Berg

1.27%

1.41%

0.65%

0.63%

Old Mutual Bond 3 Mandate

Segregated Mandate

DuPont

4.02%

4.47%

1.94%

1.88%

Nordea European High Yield Bond Fund

Retail Fund

Nordea

1.46%

1.63%

0.79%

0.76%

Fair Oaks Income Fund

Retail Fund

Fair Oaks

1.91%

2.06%

3.40%

3.36%

Old Mutual Bond 2 Mandate

Segregated Mandate

Fidelity

6.73%

4.92%

1.97%

1.89%

AQR Global Relative Value Fund

Retail Fund

AQR Capital Management

0.98%

1.16%

0.96%

0.92%

Artemis Pan European Absolute Return Fund

Retail Fund

Artemis

1.00%

1.19%

0.97%

0.94%

M&G Macro Episode Fund

Retail Fund

M&G

0.77%

0.73%

0.77%

0.74%

Morgan Stanley Diversified Alpha Plus Fund

Retail Fund

Morgan Stanley

0.61%

0.68%

0.61%

0.59%

Centurion Short Term Trading Fund

Retail Fund

Centurion

0.72%

0.86%

0.69%

0.67%

GSAM Strategic Commodities Fund

Retail Fund

Goldman Sachs

1.49%

1.54%

1.73%

1.74%

Threadneedle Enhanced Commodities Fund

Retail Fund

Threadneedle

1.22%

0.87%

1.49%

1.37%

TG Rare Infrastructure Fund

Retail Fund

TG Rare

4.52%

4.21%

4.29%

4.15%

M&G Property Portfolio

Segregated Mandate

M&G

5.96%

5.75%

5.94%

5.74%

Henderson UK Property Fund

Retail Fund

Henderson

5.91%

4.89%

6.94%

6.71%

Call Option Overlay

–

OMGI

1.42%

5.27%

1.43%

5.28%

Bonds

Alternative Strategies

Real Return

Call Option Overlay

Old Mutual Generation Funds

GLOSSARY OF COMMON INVESTMENT TERMS ABSOLUTE RETURN Absolute return funds look to make positive returns whether the overall market is up or down. ABSOLUTE VALUE A valuation method that uses discounted cash flow analysis to determine a company’s financial worth. Absolute value models try to determine a company’s intrinsic worth based on its projected cash flows. ALPHA A measure of the difference between a fund’s actual returns and its expected performance, given its level of market risk. Alpha can be positive or negative, and directly reflects the value added or subtracted by the fund’s manager. ANALYTICAL APPROACH Examining or liking to examine things very carefully. ASSET ALLOCATION Deciding which categories of assets, and in what proportions, the investment should be spread across to offer the most attractive potential returns. BENCHMARK A standard against which the performance of a security or fund can be measured. The benchmark could be an index or the average for all similar funds, also known as the sector average.

bond, commodity, or other instrument at a specified price within a specific time period. See ‘Derivatives’ for further information. CAPITAL EROSION A reduction in the value of your invested capital, often from partially encashing or taking income from your investment or as a result of inflation. COLLECTIVE INVESTMENT SCHEME A type of investment in which the money invested by individual investors is pooled into an investment fund, such as a Unit Trust or Open-Ended Investment Company, and then managed across a spread of underlying investments by professional fund managers. CONSUMER PRICE INDEX (CPI) A measure that looks at the weighted average price of a basket of consumer goods and services such as transportation, food and medical care. Changes in CPI are used to assess price changes associated with the cost of living. CORPORATE CREDIT ANALYSIS Assessing the financial health of a corporation. CREDIT A type of fixed interest security in which there is a risk of default, such as a corporate bond. CREDIT DYNAMICS The forces that control change in value.

BETA A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

DEFAULT A borrower’s failure to repay a loan or otherwise meet a contractual obligation.

BOTTOM-UP The process of searching for individual shares with outstanding performance, before considering the impact of economic trends.

DERIVATIVES A financial contract that derives its value from an underlying security, commodity or index without a requirement for the investor to purchase the underlying assets.

BOUTIQUE A small investment firm specialising in offering specific, but limited services to a select number of clients. They provide a highly personalized environment for investing.

FREE CASH FLOW A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

CALL OPTION An agreement that gives an investor the right (but not the obligation) to buy a stock,

FUNDAMENTALS Information relating to the economic

well-being of a company such as revenue, earnings, assets, liabilities and growth. These factors are used to determine the worth of an investment in fundamental analysis. A company with little debt and a lot of cash is generally considered to have strong fundamentals. FUTURES CONTRACT A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. FUTURES OFFSET The futures offset is generated when the funds invest in futures contracts. The offset ensures the futures contracts reflect an appropriate weight in the portfolio. HEDGE FUNDS Hedge funds seek to achieve higher returns by utilising a variety of investment techniques, such as the use of derivatives, short selling and gearing. This approach provides the fund manager with additional options when considering stocks for the portfolio. HIGH YIELD The generic name for bonds rated as below investment grade by the major credit rating agencies. High-yield bonds offer higher interest payments to compensate for the perceived greater default risk. INTROSPECTION Examination of and attention to your own ideas, thoughts and feelings. INVESTMENT GRADE A bond rated BBB (standard & Poor’s) or Baa (Moody’s) or higher and traditionally regarded as being of sufficient quality for long-term investment. INVESTMENT STYLE The overarching strategy or theory used by either a retail investor or an institutional money manager to set asset allocation and choose individual securities for investment. The investment style of a fund helps set expectations for long-term performance potential and aids in advertising the fund to investors looking for a specific type of market exposure.

Old Mutual Generation Funds

MACROECONOMICS The field of economics that studies the behaviour of the aggregate economy. Macroeconomics examines economywide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. MARKET DISLOCATIONS A situation in which an industry or economy is no longer working in the usual way or place. MOMENTUM Investment based on a rising trend in a company’s earnings or price movements. A momentum manager will seek to ride out the trend and sell the stock once it has peaked. LIQUIDITY The ability to convert an asset to cash quickly with little or no loss of capital. Patient contrarian – investing in a manner that differs from conventional wisdom. POSITION A stock or sector weight which is at variance to the market average, also known as a ‘bias’. In the context of this document, a position describes the financial instruments held by a fund manager, in particular derivatives. PROPRIETARY Exclusively owned. QUALITATIVE ANALYSIS Analysis that uses subjective judgment in evaluating securities based on non-financial information such as management expertise, strength of research and development and employee relations. QUANTITATIVE (OR QUANT) MANAGEMENT An approach to investment management which seeks to use statistical or numerical methods rather than using more subjective (or ‘qualitative’) factors. RISK PREMIUMS The return in excess of the risk-free rate of return that an investment is expected to yield. An asset’s risk premium is a form of compensation for investors who tolerate the extra risk - compared to that of a risk-free asset - in a given investment.

RISK RATING A representation of how the fund is likely to behave on average over the long term. This may change in the short term due to, for example, market volatility. If this becomes persistent then we would look to modify the risk rating. RISK TARGETING The aim of maximising returns to investors within pre-defined risk/volatility parameters. These parameters do not change. Instead the fund is managed to ensure it stays within these bands. SECURITIES Any investments that can be assigned a value and traded such as bonds or shares, where there is a right to receive interest or dividends from the investment. SECURITY SELECTION In making securities selections, one considers the risk, the return, the ethical implications and other factors affecting both of the individual securities and the portfolio as a whole. STYLE The investment approach a manager takes to achieve his or her objectives. There are many different kinds of style but the two most common are value and growth. THEMATIC A fund manager may construct a portfolio by weighting it towards particular industries or sectors expected to benefit from demographic, social or other changes. This is known as thematic investing. TOP-DOWN A country’s economy is considered before deciding which industry to invest in. Economic conditions determine which industries or sectors will return well and then attractive stocks are bought within those industries. TOTAL RETURNS When measuring performance, the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realised over a given period of time. UNCONSTRAINED An investment style where the fund manager operates within loose guidelines enabling them to invest in only their highest conviction companies.

UCITS Stands for Undertakings for Collective Investments in Transferable Securities and derives from a directive governing investment schemes that can be marketed throughout the European Union. UNRATED BOND A bond which has not been given a rating by any of the major credit rating agencies. VALUE INVESTOR One who seeks to buy shares when they are underpriced and to take profits when they appear overvalued. The Price/Earnings Ratio is a key valuation measure. Deep value refers to stocks with particularly strong value characteristics. VOLATILITY A statistical method that measures how much a series of values moves up and down around its average. The higher the volatility number, the less consistent the historical performance has been.

Old Mutual Generation Funds

FUND MANAGER PROFILES GLOBAL EQUITIES

ARTEMIS PAN EUROPEAN ABSOLUTE RETURN FUND FUND MANAGER – TIM STEER AND PAUL CASSON Two of our highest conviction long-short equity managers have joined forces at Artemis on a new pan-European strategy spanning the market cap spectrum. Tim Steer and Paul Casson have complimentary skillsets and have strong fundamental stock picking capabilities and experience across their respective markets. Together, they are capable of delivering strong alpha from both sides of the portfolio whilst flexing the net and gross exposures within reason. The investment approach is very much one of “common sense” deploying a process focused on understanding businesses in detail and clarity of accounting treatments combined with market savvy by undertaking forensic accounting analysis, meeting with companies, the identification of macro themes and trends and through their use of their proprietary tool. Over the longer term we expect the strategy to have a low correlation to both equity and bond markets with lower volatility than equities.

CENTURION SHORT TERM TRADING FUND FUND MANAGER – CENTURION TEAM The ML Centurion Short Term Trading Fund uses a quant-systematic investment approach with the aim of capitalising on short-term (intraday) price behaviour in the global futures markets to generate high risk-adjusted returns while minimizing correlation to both traditional and alternative asset classes. The manager uses a scientific approach to capturing short term market inefficiencies while overlaying a comprehensive risk management framework. The Fund currently trades across 52 liquid global financial and commodity markets using more than 90 independent momentum and mean-reversion trading signals to produce trades that are held with holding

periods ranging from intraday to 2 days. The Fund is managed by an experienced team specialising in the systematic trading of global equity, fixed income, commodity and foreign exchange futures markets. The team is led by the former Head of Trading at Crabel Capital Management, Stefan Behling and the former Global Head of FX Prime Brokerage at Bank of America Merrill Lynch, Umran Zia.

inception. The Fund’s key advantage lies in its highly experienced portfolio management team that has over 50 years of combined investment experience and is supported by 28 career analysts with over 15 years of industry experience. This endows the investment process with research capabilities beyond those of competitors, and matches tools with capabilities so that portfolio managers can make informed decisions with the best knowledge to hand.

HERMES ASIA EX JAPAN FUND MANAGER – JONATHAN PINES Hermes Fund Managers is an investment firm based in London, formerly the internal investment manager for the BT Pension Scheme. The Hermes Asia exJapan Fund has been managed by lead portfolio manager Jonathan Pines since the inception in 2010 alongside his team of 5. Underpinning the investment philosophy is a belief that equity markets are inefficient in the long term, and the best way to exploit these inefficiencies are by building a benchmark agnostic, focused, bottom up portfolio of 45-60 long term opportunities. The 45 to 60 stock portfolio should display significant contrarian value characteristics through the cycle. The focus on capital preservation and downside protection should result in a higher quality portfolio with lower volatility characteristics over time.

MONTANARO EUROPEAN EQUITY INCOME FUND FUND MANAGER – CHARLES MONTARO Montanaro is an independent UK based asset manager. The company was established in 1991 and has the largest and most experienced specialist team in the UK dedicated exclusively to researching and investing in quoted UK and European small companies. The aim of the fund is to generate a significant portfolio yield through investment in high quality equities. The manager follows a long only, low turnover strategy and prior to investment all companies must be approved by Montanaro’s rigorous research process. Initial investments are made, taking into account both the prospective dividend yield and potential dividend growth.

JP MORGAN US EQUITY INCOME FUND FUND MANAGERS – CLARE HART AND JONATHAN SIMON JPMorgan Asset Management is part of the US financial giant JPMorgan Chase & Company, which provides retail banking, investment banking and asset management services across the world. Its experience spans more than 150 years – a history that is reflected in the company’s expertise. Clare Hart and Jonathan Simon are the portfolio managers for the US Equity Income Fund. Clare has managed the Fund since its

OLD MUTUAL GLOBAL EQUITY INCOME MANDATE FUND MANAGERS – JIM O’SHAUGHNESSY AND CHRIS MEREDITH O’Shaughnessy Asset Management (OSAM) is a quantitative money management firm based in Stamford, Connecticut, whose mission is to deliver alpha-generating strategies based on its core investment tenets. These are to invest in quality companies with superior valuations, momentum, and yield. The managers employ this approach in the Global Equity Income Fund. They strongly believe in the

Old Mutual Generation Funds

value of applying empirical, fundamental research to uncover the best quantitative stock selection strategies. They have completed an exhaustive study of the historical attributes that characterise the best value and growth stocks. The results of this research form the basis for all O’Shaughnessy portfolios. Moreover, OSAM’s strategies are founded on a common sense approach. Stocks are selected in a logical, matter-of-fact fashion with the aim of achieving the best results.

OLD MUTUAL ASIAN EQUITY FUND FUND MANAGER – JOSHUA CRABB The Old Mutual Asian Equity Fund is managed by Joshua Crabb, head of the Asian Equity team. Over 20 years of investing experience in Asia has framed his core investment beliefs which incorporate a need to be flexible in investment. The strategy effectively targets two broad sources of alpha: cyclical alpha which are driven by a style or factor which are more favoured during certain parts of the market cycle; and independent alpha which are investment opportunities with alpha potential independent of the cycle. The team’s robust and repeatable process and drive and ambition to succeed will drive attractive risk-adjusted results over the cycle as a core Asian equity exposure

Asian equity exposure. PERSHING SQUARE HOLDINGS FUND MANAGER – WILLIAM ACKMAN Pershing Square follows a concentrated, research intensive, fundamental value and activist approach investing primarily in US mid and large caps both long and short. On the long side of the portfolio they target investments in companies with unconventional or hidden sources of value but with minimal downside. These investments are often complex situations, yet typically simple underlying businesses or assets where they have identified catalysts and where they believe their activist approach can effectuate changes to unlock value. On the short side of the

portfolio investments are judge on their absolute return merits or as a hedge to the long book and they will typically look for situations with an asymmetric risk-reward payoff. They focus on companies with accounting issues or poor earnings quality, frauds or companies with liquidity and bankruptcy risk and where their activist approach can bring these issues to light. The Fund is managed by William Ackman who is supported by an investment team of 11. The team has a strong and established pedigree of collaboratively working with management, boards and shareholders of target companies to unlock value or bring issues to bear and we believe them to be one of a very limited number of managers in the world that can successfully pursue a large cap shareholder activist strategy.

OLD MUTUAL VOYAGER GLOBAL DYNAMIC EQUITY FUND FUND MANAGER – FRANÇOIS ZAGAMÉ The Global Dynamic Equity Fund is a focused and flexible global equity solution that combines both manager selection and active asset allocation in a single fund. The Fund provides access to a diversified portfolio of high-quality investment managers, each running a specialist regional- or country-specific mandate across the full global equity opportunity set. The Old Mutual Voyager Global Dynamic Equity Fund’s underlying managers are as follows:

ALLIANCEBERNSTEIN US FACTORS MANDATE MANAGER – VADIM ZLOTNIKOV Vadim Zlotnikov, Chief Market Strategist has developed a methodology to provide access to a number of equity factors which, over the long term, have proven to be fundamentally driven and have added alpha over time. Examples of such factors include the small cap and value biases where small cap and ‘cheap’ stocks tend to outperform the market over time. In addition, the team have developed a number of indicators to assess the relative attractiveness of each

of these factors over time. The mandate provides access to both these factors and indicators, allowing the fund to invest in these factors at appropriate points in the economic and market cycle.

ARGONAUT EUROPEAN ALPHA MANDATE FUND MANAGER – BARRY NORRIS Barry Norris is a very impressive, pragmatic stock picker managing high-conviction, focused portfolios with a view to maximising alpha. He sees on average four new firms a month and attempts to understand the factors driving and affecting the company from a bottom-up perspective. In particular, he tries to identify bottlenecks occurring within an industry, so as to be in a position to consider investment opportunities in companies that serve to address such situations. Barry looks to hold companies for between one and three years, allowing time for a thesis to come to fruition. Quality of analysis rather than quantity is the approach, and the focus is on fundamental company research rather than macro economic developments.

AUBREY ASIA CONSUMPTION MANDATE FUND MANAGER – ANDREW DALRYMPLE Andrew is the founder and largest shareholder in Aubrey Capital Management and its lead fund manager. He is responsible for the Asia Consumer Fund within the Old Mutual Voyager Global Dynamic Equity Fund. Prior to founding Aubrey, Andrew had worked for First State Investments where in 1999 he established the Global Opportunities Fund, now the First State Global Opportunities Fund, which was his signature fund throughout his time at First State and which since inception in July 1999 through to his departure in 2006 rose 112% compared to a rise of 4% in the MSCI World Index. The Fund was top quartile over 1, 2, 3, 4 and 5 years, and since inception. The long term success of this fund is now being replicated in various vehicles at Aubrey Capital Management, notably the SW Aubrey Global Conviction Fund, which is also top quartile since

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inception in 2007. At the route of this investment success is Andrew’s long experience, expertise and belief in Asian markets, derived in particular from his time working for James Capel and UBS Warburg in Hong Kong between 1991 and 1998.

CUPPS US ALL-CAP GROWTH MANDATE FUND MANAGER – ANDREW CUPPS Cupps Capital is a Chicago-based investment boutique, employing an aggressive growth approach to investing in US equities. Andrew Cupps is the CIO and founder; he focuses on the higher growth segment of the market and over his career has been able to derive significant performance from opportunities in the more inefficient small and mid-cap areas. The result is that small and mid-cap stocks with high growth characteristics often play an important role in this all cap strategy. Stock selection and portfolio construction are driven by a bottom-up focus on individual companies. Fundamental research conducted by Cupps Capital concentrates on five perspectives for measuring opportunities: valuations, technical factors, timeliness, quality and management. The strength of Cupps’ approach and pragmatism in stock selection is seen as a significant competitive advantage, resulting in an above average beta, with significant alpha generation over time.

DIMENSIONAL EMERGING MARKET TARGETED VALUE FUND FUND MANAGERS – DIMENSIONAL GLOBAL EQUITY PORTFOLIO MANAGEMENT TEAM The Dimensional Emerging Markets Targeted Value Fund aims to systematically and gradually build exposure in the smallest and most undervalued stocks in global emerging markets. The philosophy behind the team’s approach, namely that smallcap, value stocks tend to perform better than the market over the long term, is borne out by solid academic research. The portfolio is well diversified and turnover is intentionally kept low both to minimise transaction costs and because smaller, emerging market stocks tend to be less

liquid. Dimensional Fund Advisers is a privately owned firm with low employee turnover and a large and stable asset base.

DWS GLOBAL AGRIBUSINESS FUND FUND MANAGERS – OLIVER KRATZ AND RALF OBERBANNSCHEIDT (GLOBAL THEMATIC PARTNERS, LLC) The DWS Global Agribusiness Fund seeks to benefit from the growing demand for food worldwide. It invests in companies involved in the entire food chain, from agricultural commodities to consumer products, including companies specialising in fertilisers, plantation, crop protection, irrigation, harvesting and food processing. The team’s investment philosophy is driven by the view that trends such as climate change, food shortage and population growth all put growing demand pressure on water, food, energy and infrastructure. The team, led by Oliver Kratz, were pioneers in the field of global agribusiness investment and are well experienced compared to peers. Global Thematic Partners, LLC (“GTP”) is an independent investment management firm formed in June 2010 by Oliver Kratz and Ralf Oberbannscheidt when they amicably spun out their thematic investment franchise from DWS together with their thematic investment team. Their singular focus is thematic investment, an approach refined at DWS over the years. GTP serves select institutional clients in separately managed accounts, as well as retail investors through sub-advised pooled funds.

OLD MUTUAL JAPANESE EQUITY MANDATE FUND MANAGER – AKIRA YOSHIMI Dalton is a unique organisation with strong leadership, which has served to cultivate a free-thinking and performanceoriented culture. Portfolio manager Akira Yoshimi is a uniquely talented individual with a strong reputation and unparalleled track record, previously only available to institutional investors within Japan. He is a value oriented investor, believing that stocks with low valuations and strong company fundamentals will outperform the market. His skill lies in his ability to interpret what is happening in the market, put it into an

historical context and both react to and pre-empt market and share price shifts. The investment process is strongly grounded in investment theory as well as Yoshimi’s many years of experience, providing both efficacy and pragmatism to the approach. The portfolio targets excess returns through both fundamental (valuation) and sentimentbased (secular and cyclical) strategies. It is managed as a high-alpha strategy but is benchmark-oriented with a strong emphasis on risk control.

JARDIM BOTANICO FUND MANAGER – JARDIN BOTANICO TEAM Jardim Botanico is a Rio de Janiero based, employee-owned, investment management boutique which follows a value orientated approach based on thorough fundamental research and is focused exclusively on Brazilian companies. The three senior partners each have between 20 and 30 years of experience of investing in the local financial markets.

LAPIDES US MID-CAP VALUE MANDATE FUND MANAGER – STEVE WILSON Lapides focuses on identifying companies with sustainable competitive advantages and they invest when the share price falls below the long-term fair value. The investment team utilises an active idea generation approach, followed by highly thorough fundamental research with a strong focus on ensuring that the company’s long-term business model is sustainable and that the reasons for the share price drop are not a long-term risk. They gain an in-depth understanding of the companies they research and it is not unusual for them to monitor companies for years before the opportunity to invest arises. This meticulous research process, coupled with their focused and contrarian approach, enables them to exploit the significant investment potential in the US mid-cap value space. Lapides Asset Management is a US-based boutique focusing solely on US mid- and small-cap equities. The firm was founded in June 2005 by Steve Wilson, former CIO at Reich & Tang. Steve has nearly three decades of experience investing in mid- and small-cap stocks.

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strong execution of ideas through a paper portfolio which was run for a year before this bespoke mandate went live.

MANDARINE EUROPEAN VALUE MANDATE FUND MANAGER – MARC RENAUD Marc Renaud has been a value investor for around 15 years, building up a strong performance track record over the years through employing a consistent investment approach. He seeks undervalued companies on a short-term, opportunistic basis, as well as with a long-term view, ideally where he has identified a catalyst which, when realized, could lead the market to reassess the company’s value. The types of stocks targeted include recovery stories, cyclical shares benefiting from economic upturns, and shares that have fallen out of favour. He runs focused portfolios of 30-40 high conviction stocks and takes a more active approach than many peers, who tend to be long-term stock holders. Marc is assisted by Yohan Salleron, who is involved in both analysing companies and in portfolio management. Marc Renaud founded Mandarine Gestion in February 2008, having spent 10 years successfully managing European portfolios at CCR. Most of the company’s assets are invested in the European value strategy, notably the flagship Mandarine Valeurs Fund, and so its success is a key priority for the manager and ultimately the firm.

MACQUARIE CHINA MANDATE FUND MANAGER – JOHN YE This mandate is a China focussed midcap biased, bottom up approach derived from an existing approach that Macquarie are running in the broader Asia region. John Ye and team package their ideas in a highly concentrated portfolio which is a blend of quality small and mid cap names (which they believe will move up the liquidity scale and beat earnings expectations) and larger companies which they meet and analyse through analysis of the value chain which they believe have the possibility to beat expectations in the near term. From a construction perspective they aim to have a portfolio which overall is better value, better growth, higher quality than the benchmark. In addition a strong qualitative view on John and team, there is a demonstrable

METISQ ASIA PACIFIC EX JAPAN EQUITIES MANDATE FUND MANAGER – KENNY TJAN Metisq is a Singapore- and Sydney-based boutique manager specialising in Australian and Asian equities. Metisq has a simple but compelling investment philosophy targeting value and momentum. This combination of factors aims to reduce the duration of the fund’s value bets and to alleviate the tendency of value approaches to move in and out of stocks too early. Their process is well structured, clear and coherent and seeks to draw on the best of quantitative and qualitative approaches. The quality of its investment team is extremely high across all disciplines and is enhanced through direct access to a team of industry experts via Metisq’s Industry Advisory Council. In addition, an enormous amount of academic research backs their approach, with key academics on the payroll. Equity has been shared across the team, serving to incentivise and retain key staff. This, together with co-investment in Metisq products, ensures the team’s interests are strongly aligned with those of investors.

OLD MUTUAL GLOBAL INVESTORS UK MANDATE FUND MANAGER – RICHARD BUXTON The cornerstones of the approach are twofold: fundamental research into the companies in which we invest and a patient, long-term time horizon. Many investors focus on the immediate outlook for companies and share prices. Quarterly result statements and the vagaries of current trading, together with concerns about the immediate direction of macro-economic indicators, tend to drive share prices in the short term. By contrast, our investment approach focuses on opportunities over a three to five year time horizon. Fundamental research into companies and their prospects over the long term identifies both winning business models and significant turn-around situations, together with those

companies facing sustained pressure unlikely to reward investors.

QMA US VALUE MANDATE FUND MANAGERS – JOHN LEIB AND DEBORAH WOODS The approach focuses on attractively priced, out-of-favour companies, based on the view that investors tend to overemphasise the negative characteristics of stocks and therefore drive prices lower. Over time the market recognises this undervaluation and prices recover, and QMA looks to be the beneficiary of this re-rating. QMA identifies investment opportunities by blending the output from quantitative models with the seasoned judgement of a large, experienced team of investment professionals. This disciplined investment process has been in place since 1979 (when Deborah Woods became involved, closely followed by John Leib in 1982) and has survived all manner of different market conditions. QMA has one of the longest track records of managing quantitative value portfolios. It is a well resourced, stable boutique that has seen little turnover in its history, thanks in part to its strong research-oriented culture in which ideas are widely shared.

RENASSET FUND MANAGER – PLAMEN MONOVSKI Renasset is a boutique with investment capabilities throughout Emerging Europe. The Renasset team believes that this region harbours many an inefficiency and therefore offers many an investment opportunity if researched thoroughly. Plamen Monovski, Lead Fund Manager, follows a value based contrarian approach and also makes use of a high level of macro awareness, which is critical in the Emerging Europe region.

SCHRODERS ASIA MANDATE FUND MANAGER – ROBIN PARBROOK Robin Parbrook has more than 20 years investment experience and is supported by

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one of the largest dedicated Asia analyst teams in the region, with 10 other portfolio managers and 18 dedicated investment analysts across a number of key locations in Asia. Schroders’ Asian equities team seeks to invest in companies that can grow shareholder value over the long term. As a result, their approach has natural biases towards stable franchises with high returns on invested capital and other quality characteristics. However, Parbrook and his team’s investment process involves close monitoring of valuations across markets, sectors and styles such that they are able, where appropriate, to take a contrarian stance and invest in true value and turn around opportunities.

WELLINGTON EUROPEAN LARGE-CAP VALUE MANDATE FUND MANAGER – DIRK ENDERLEIN Dirk Enderlein is a hugely impressive, motivated and passionate portfolio manager. His skill is borne out by an excellent track record in managing largecap growth portfolios relative to peers since 2003 despite the challenging market conditions for this type of strategy for much of this period. He demonstrates excellent introspection, investing only where he believes he has a genuine edge. Dirk has a coherent and repeatable investment philosophy focusing on structural growth rather than cyclical or established growth, meaning that stocks bought are not dependent on the economic cycle. He seeks companies with above-average long-term growth in earnings and cash flows that the market has yet to fully anticipate. His longerterm perspective aims to exploit investors’ tendency to focus heavily on short-term results. Dirk is able to leverage the ideas of Wellington’s very well resourced team of global industry analysts. WELLINGTON US ALL-CAP OPPORTUNITIES MANDATE FUND MANAGER – PETER HIGGINS Behind the philosophy of the Wellington US All Cap Fund is the conviction that markets are myopic, and underestimate long-term growth trends, providing diligent investors with opportunities to exploit resulting anomalies. With this in mind, Wellington has developed its ValueMomentum-Earning investment approach as a tool for constructing the portfolio. The

highly experienced fund manager Peter Higgins seeks to spot valuation anomalies, determine business momentum and gauge potential sentiment change, while identifying investments with better-than-expected long-term earnings power. The result of the process is a high beta portfolio in line with the fund’s investment philosophy.

UK EQUITIES

attractions of the fund is the sensitivity to valuations that the portfolio managers exhibit. In the current environment of a reach for yield, a value bias should enable the managers to avoid the overly expensive stocks that are susceptible to sharp price corrections. The fund managers take a long-term view; gradually taking profits from companies that have performed well and reinvesting proceeds into undervalued companies that have significant potential to deliver capital and dividend growth.

BONDS LIONTRUST MACRO UK INCOME FUND FUND MANAGERS – JAN LUTHMAN AND STEPHEN BAILEY At the core of Liontrust’s investment philosophy is the belief that macro thematic analysis (identifying and interpreting economic, political and social developments affecting the UK and the rest of the world) offers considerably greater scope to stockspecific exposure. Stock selection criteria include a company’s business model, its management team, financial strength and relative valuation. From time to time, the managers will seek to capture short-term trading opportunities as well as longer-term investment value.

OLD MUTUAL EQUITY 1 FUND FUND MANAGER – RICHARD WATTS The purpose of the fund is to deliver long-term capital growth. To achieve this aim, the team takes a flexible approach, prioritising attractive returns across the entire business cycle. They seek to combine careful analysis of the economic environment with detailed, rigorous research into hundreds of companies. The strategy follows that of the Old Mutual UK Select Mid Cap Fund, which aims to capture the enduring qualities of UK mid cap companies – diversity, vitality, growth, flexibility, entrepreneurial flair.

SCHRODERS UK INCOME FUND FUND MANAGER – NICK KIRRAGE, KEVIN MURPHY Nick and Kevin aim to identify companies with strong balance sheets, robust business models and low valuations that pay an attractive and growing income stream. One of the main

ALFRED BERG HOYRENTE FUND Alfred Berg is an autonomous Nordic asset manager and the dedicated asset management business line of BNP Paribas. The Hoyrente fund is a fixed income fund that mainly invests in high yield bonds issued by companies with business in the Nordics, and has a credit risk equivalent to a rating of BB+/Ba1 or lower. The Portfolio Manager will through a disciplined investment process seek investments that are considered attractive given the issuer’s credit quality, potential collaterals, as well as the economic outlook of the sector and issuer. Based on the market structure, the fund will normally have a modified duration below one year and credit duration below three years. This way, the fund will have the potential to generate solid returns when credit spreads are wide or if spreads are tightening. The fund is at the same time partly protected from a increase in interest rates.

OLD MUTUAL GILT MANDATE FUND MANAGER – PANAYOTIS FERANDINOS BlackRock is a market leading asset manager that offers a variety of extremely popular tracker funds. Similarly to all the funds in the BlackRock tracker range, the portfolio is run very close to the benchmark and provides a low risk fund on very competitive terms.

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OLD MUTUAL BOND 3 MANDATE FUND MANAGER – MING SHAO Ming and his team use an absolute value investment approach to seek to capitalise on opportunities that are mispriced due to market dislocations. The team utilizes a disciplined, analytical approach, employing top-down sector allocation and bottom-up security selection processes, to spot value opportunities in the high yield markets around the globe. Powerful analytical models that identify pricing inefficiencies are used in concert with deep fundamental research to select issues believed to have the greatest potential for adding alpha and absolute return to the total portfolio. DuPont Capital’s fundamental analysis includes an evaluation of company risk, capital structure, cash flows, liquidity, and asset recovery and valuation, as well as an understanding of company management.

FAIR OAKS INCOME FUND FAIR OAKS TEAM The fund seeks to generate returns of 12-14% per annum through exposure to US senior loans, via controlling stakes in income notes of CLOs. Fair Oaks distributes all of its net income via monthly dividends and has a defined investment period that runs until mid 2016. The portfolio provides exposure to over 770 unique bank loan issuers the fund has the ability to invest up to 20% in Europe, although the investment team currently believes the investment opportunities available in the US remain significantly more attractive given the returns available. The focus of the six person investment team is on ensuring that they are happy with the credit quality of all of the underlying investments in each CLO.

OLD MUTUAL BOND 2 MANDATE FUND MANAGER – IAN SPREADBURY Ian Spreadbury is a very high conviction manager with impressive capabilities in both qualitative and quantitative analysis. Recognising that some areas of the market are more efficient than others, and that

different factors will drive the market at different times, Ian demonstrates a clear view of where the key opportunities in the market lie, why they exist and how best to exploit them. He is supported by a well resourced team of credit analysts with access to high-quality proprietary quantitative models that provide an undoubted competitive advantage. The Fidelity mandate has a strong longterm performance track record, with security selection a key source of added value.

INVESTEC LOCAL CURRENCY EMERGING MARKET DEBT FUND FUND MANAGER – PETER EERDMANS The Investec Local Currency Emerging Markets fund is run by Peter Eerdmans and one of the key advantages of the fund is the deep local currency experience that the team has. Investec’s EMD philosophy and processes have evolved from a local starting point in contrast to many managers whose local capabilities have grown out of their USD propositions. We feel that this is both a differentiator and an advantage because it has allowed Investec to develop a bespoke proposition, built and tailored from the ground up. The investment process focusses on exploiting opportunities in local rates and currency, more common in developed market fixed income analysis where much of the team have developed market backgrounds. Currency and interest rate decisions are separated, with qualitative and quantitative aspects important in each sector. The team uses a number of well established proprietary models including their widely used fundamental risk indicator which was developed in the late 1990s.

JP MORGAN INCOME OPPORTUNITIES PLUS FUND FUND MANAGER – WILLIAM H. EIGEN JPMorgan Asset Management is part of the US financial giant JPMorgan Chase & Company, which provides retail banking, investment banking and asset management services across the world. Its experience spans more than 150 years – a history that is reflected in the company’s expertise. The manager employs a bottom-up fundamental approach to stock selection, constructing the

portfolio based on considerations involving company fundamentals, quantitative screening and proprietary fundamental analysis. The goal is to create a portfolio that yields 1% above that of the S&P 500. The manager’s investment approach is based on the premise that stock selection (focused on undervalued companies with durable franchises and strong management) should generate consistent returns over the long term. The cornerstone of JPMorgan’s investment philosophy is that attractive companies have management teams that demonstrate an ability to generate free cash flow on a consistent basis, coupled with superior expertise in capital allocation.

M&G OPTIMAL INCOME FUND FUND MANAGER – RICHARD WOOLNOUGH The M&G Optimal Income Fund is a fully flexible bond fund that is able to invest across a broad range of fixed income assets where the fund manager identifies value. The investment approach begins with a topdown assessment of the macroeconomic environment, including the prospects for growth, inflation and interest rates. The results of this analysis help inform the fund’s duration positioning and its allocations to the various bond asset classes. Individual credit selection is carried out in conjunction with M&G’s in-house team of credit specialists, who provide bottom-up analysis of securities in the corporate bond markets to help the Richard’s views. There are no restrictions on the amounts of government, investment-grade or high yield bonds that can be held within the portfolio. The fund may also invest in other assets, including cash, equities and derivatives. Derivative instruments may be used for both investment purposes and efficient portfolio management.

NORDEA EUROPEAN HIGH YIELD BOND FUND FUND MANAGERS – SANDRO NAEF, TORBEN SKØDEBERG AND HENRIK PEDERSEN The Fund is sub-advised by Capital Four, a boutique that was born out of Nordea Asset Management in June 2007 and later acquired by Saxo Bank. The result is an optimal structure whereby investment personnel have the autonomy of their own

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asset management business with the support of a larger distribution organisation. Capital Four focuses solely on European high yield bonds. The team have developed an excellent, structured investment process with good portfolio monitoring tools and high quality credit research. The team are well resourced and highly experienced, having worked together since the beginning of the European high yield market in 2000, with a strong background in key areas including accounting and risk management.

OLD MUTUAL LOCAL CURRENCY

EMERGING MARKET DEBT MANDATE FUND MANAGERS – TOM FLANAGAN AND JAMES CRAIGE Stone Harbor believes that superior emerging economies can be differentiated by identifying those with improving Credit dynamics. Given that Stone Harbor’s primary skill set is corporate credit analysis and that evidence of performance from country selection backs up this assertion, we believe that they are well placed to generate market-leading investment returns.Stone Harbor has extended their approach to emerging market debt issued in local currency and have been able to demonstrate that improving Credit dynamics leads to currency appreciation, the key driver of local currency emerging market debt returns. Stone Harbor has been quick to embrace change and the team were early investors in local currency bonds in 1991. With the size of the US Dollar market decreasing and local currency bond issuance rising, it is important to have a philosophy that embraces such change. Another competitive advantage is their unique quantitative system, which gives them an edge in their investment process, while the complementary skill sets of the seasoned portfolio management team, who have been together since 1991, is unmatched in the industry.

OLD MUTUAL BOND 1 MANDATE

FUND MANAGERS – GARY KIRKWOOD AND EOIN WALSH TwentyFour Asset Management is a small, focused fixed income boutique. While the firm is fairly new, it is staffed with highly

experienced fixed income professionals who are keen to build their reputation. The team have a specialization in credit, particularly in mortgage-backed and asset-backed securities, where they believe there is greater potential to add value. With only £1 billion under management, the firm is extremely nimble when compared to its peers. The mandate is run with an emphasis on delivering steady total returns with lower volatility.

emotionally to events. They believe that such episodes create opportunities because emotions should be less important than underlying fundamentals over the medium and long term. The fund is fully flexible and is not bound by any sense of neutrality or benchmark. The fund is likely to obtain exposures through derivative instruments and has the ability to short assets and leverage for the purposes of investment and efficient portfolio management.

SCHRODER GAIA GLOBAL MACRO BOND FUND FUND MANAGER – BOB JOLLY This fund is run by Bob Jolly, the head of Global Macro at Schroders. Bob has 30 years’ experience across the entire range of fixed income strategies and is a high conviction investor with an impressive track record. The fund seeks to provide an attractive return by focussing on macroeconomic strategies. Bob believes that the only way to produce consistent alpha is through diversification of strategies and philosophy. Accordingly, he spends a significant proportion of his time on portfolio construction, seeking to understand the interaction of risks within his portfolio. Although the fund is driven largely by diverse qualitative views (of Bob and his wider team), there are also some quantitative components to the strategy which adds another diverse source of returns. In this way, the fund avoids an overreliance on credit strategies and instead sees performance generated by a healthy mix of credit, interest rate and foreign exchange strategies.

MORGAN STANLEY DIVERSIFIED ALPHA PLUS FUND FUND MANAGERS – CYRIL MOULLE-BERTEAUX AND SERGEI PARMENOV The objective of the Diversified Alpha Plus Fund is to identify and exploit inefficiencies between markets, regions, sectors and asset classes using a top-down methodology to deliver returns in excess of a customised benchmark. Although the Fund has a long bias, the managers also try to manage downside risk through tactical asset allocation, hedging and options. The investment process of the team headed by fund managers Cryil MoulleBerteaux and Sergei Parmenov seeks to capitalise on market mispricing by using a combination of quantitative techniques and fundamental analysis across global asset classes, including stocks, bonds, currencies and commodities. The research process focuses on four main factors across almost all asset classes: valuations (both relative and absolute), dynamics (including earnings revisions), interest rate policy (linked to inflation expectations) and technicals (such as liquidity and sentiment). The investment strategy is implemented using cash securities, proprietary selections of liquid securities by themed criteria, exchangetraded plus over-the-counter options, futures, swaps and other derivatives. The Fund may also use exchange-traded funds to gain exposure to various asset classes.

ALTERNATIVES

M&G MACRO EPISODE FUND FUND MANAGERS – DAVID FISHWICK AND ERIC LONERGAN The aim of the Fund is to deliver a higher total return, with lower volatility on average, than global equities over the medium to long term. The fund managers believe that the best approach for achieving this lies in the flexible allocation of capital among asset classes, guided by a robust valuation framework. In particular, they seek to capitalise in situations where asset prices move away from a reasonable sense of ‘fair’ value due to investors reacting

AQR GLOBAL RELATIVE VALUE FUND AQR Capital Management is a leading provider of alternative investments as well as a broad spectrum of long-only funds. Headquarted in Greenwich, CT, AQR manages over $105bn in assets for institutional investors as well as registered

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investment advisors. The AQR Global Relative Value UCITS Fund offers access to AQR Capital Management’s systematic global relative value strategy in a UCITScompliant fund. The fund aims to realise low correlation to traditional asset class returns, deliver efficient exposure to a well-diversified portfolio of hedge fund risk premia and provide a systematic approach to portfolio construction and rebalancing.

CENTURION SHORT TERM TRADING FUND FUND MANAGER – CENTURION TEAM The ML Centurion Short Term Trading Fund uses a quant-systematic investment approach with the aim of capitalising on short-term (intraday) price behaviour in the global futures markets to generate high risk-adjusted returns while minimizing correlation to both traditional and alternative asset classes. The manager uses a scientific approach to capturing short term market inefficiencies while overlaying a comprehensive risk management framework. The Fund currently trades across 52 liquid global financial and commodity markets using more than 90 independent momentum and meanreversion trading signals to produce trades that are held with holding periods ranging from intraday to 2 days. The Fund is managed by an experienced team specialising in the systematic trading of global equity, fixed income, commodity and foreign exchange futures markets. The team is led by the former Head of Trading at Crabel Capital Management, Stefan Behling and the former Global Head of FX Prime Brokerage at Bank of America Merrill Lynch, Umran Zia.

REAL RETURN

HENDERSON UK PROPERTY FUND FUND MANAGER – AINSLIE MCLENNAN Managed by Ainslie McLennan and Marcus Langlands Pearse, the Henderson UK Property funds offers access to prime and good quality secondary UK commercial real estate. Henderson are a significant player in the UK property space and lead manager

Ainslie McLennan has more than 15 years of property industry experience. Combined with Marcus Pearse, who has been working in commercial property since 1991, the fund both well experienced managers as well as an attractive liquidity profile.

GOLDMAN SACHS STRATEGIC COMMODITIES FUND FUND MANAGERS – MICHAEL JOHNSON AND STEVE LUCAS The Fund provides active beta exposure to commodities markets with the ability to implement strategic views on individual commodities and/or sectors. The Fund utilises long-only positioning to exploit opportunities across commodities markets. The managers utilise a blend of macroeconomic research, supply and demand fundamentals and technical factors to generate a diverse range of trading strategies. Specifically, they believe that the level and direction of commodity markets are ultimately determined by economic fundamentals such as demand and supply. However, for various periods of time, these markets can be affected by the flows of participants whose need for liquidity can move prices away from fundamental value and by combining rigorous fundamental, economic and market analysis while taking into account technical factors, they seek to identify and exploit these inefficiencies.

M&G PROPERTY PORTFOLIO FUND MANAGER – FIONA ROWLEY The property team consists of over 50 investment professionals with the portfolio managers determining strategy and the investment managers managing the equity holdings and purchasing properties, leaving the asset managers to manage the physical property investments. The firm is very unusual in having all the activities required in managing a property portfolio carried out in-house – from investment management to property management, ie managing tenants and producing the accounts.

COLOMBIATHREADNEEDLE ENHANCED COMMODITIES FUND FUND MANAGER – DAVID DONORA The fund manager aims to achieve capital appreciation which is directly and indirectly linked to commodity markets. He aims to generate returns in excess of the benchmark index over the long term through investment in commodities on a global basis. The portfolio is actively managed employing asset allocation among different commodity markets and the optimisation of commodity term structures to drive performance. This is achieved by investing in swaps that provide the returns of commodity indices. The investment decisions of the ColombiaThreadneedle (Lux) Enhanced Commodities Fund are generally driven by supply/demand fundamentals, technical analysis, seasonality, market flows and term structure.

TG RARE INFRASTRUCTURE FUND FUND MANAGERS – RICHARD ELMSLIE AND NICK LANGLEY Treasury Group Rare Infrastructure of Australia was established in 2006 by Nick Langley & Richard Elmslie with 29 employees, 15 of whom are engaged in the investment process. Team members have wide international experience in the infrastructure area. The fund is focused solely on the global listed infrastructure sector. The Fund has a blue chip client base, with around US$5bn in funds under management. Rare’s management approach is to have infrastructure specialists who manage funds, not fund managers that invest in infrastructure stocks. The primary focus is the risk/return relationship - risk -adjusted returns on equity (RAREs) are assets. All strategies use the same investment process and pool of available assets. The focus is on underlying macroeconomic factors that determine valuations, coupled with a detailed analysis of the cash flows paramount. This allows an absolute return approach to portfolio construction. The managers’ investment process is based on knowledge of the unlisted and listed sectors. The result is a long dated valuation approach to long-dated of potential

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holdings, along with a detailed assessment of underlying risks associated with the cash flows. This unique approach to portfolio construction provides long term stable returns.

HISTORIC MANAGER CHANGES

CHANGES WHICH OCCURED LAST QUARTER • Fair Oaks Income Fund added to Fixed Income • Openfield Technology removed from Global Equity

HISTORIC MANAGER CHANGES Q1 2015 CBRE Property Mandate switched to Henderson UK Property

Q2 2014 Macquarie China Mandate added

Q4 2014 Pershing Square Holdings added to Global Equity, Old Mutual Asian Equity Fund added to Global Equity, Centurion Fund added to Global Equity, Hermes Asia ex-Japan Equity Fund added to Global Equity, Jardim Botanico added to Old Mutual Voyager GDE (emerging markets), RenAsset added to Old Mutual Voyager GDE (emerging markets), Henderson removed from Old Mutual Voyager GDE (emerging markets)

Q1 2014 Alfred Berg Hoyrente added. AQR Global Relative Value Fund added. Fulcrum Alternative Beta Plus Fund removed

Q3 2014 Artemis Pan European Absolute Return Fund added to Global Equity. Investec Local Currency Emerging Market Debt Fund added to Fixed Income. Fulcrum Commodity Fund removed

December 2013 Old Mutual Managed Futures Mandate removed June 2013 Old Mutual Equity 3 Fund changed to Old Mutual UK Alpha Fund managed by Richard Buxton. March 2013 Schroders Asia Manadate added to GDE managed by Robin Parbrook. First State Pacific Fund removed from GDE

If you require any further information on the Old Mutual Generation fund range, please speak to your financial adviser.

Old Mutual Generation Funds

IMPORTANT INFORMATION 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 the amount originally invested. This communication provides information relating to a fund known as Old Mutual Generation Funds (the “Fund”). 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. The Fund is also regulated by the FCA and therefore Old Mutual Global Investors may promote the Fund to the public. 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. Exchange rates may cause the value of overseas investments to rise or fall. The Fund may invest principally in units in collective investment schemes. OMGI 07_15_0147

ONLINE Download fund data and read investment updates at www.omglobalinvestors.com

TELEPHONE Contact your regional sales manager or speak to our dedicated client services team on +44 (0)20 7332 7524

OLD MUTUAL GLOBAL INVESTORS (UK) LTD 2 Lambeth Hill, London, EC4P 4WR, UK

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