Old Mutual Spectrum Funds is a family of mutual funds that is managed by Old Mutual Investment Group. These funds are designed to provide investors with a range of investment options that cater to different investment objectives and risk profiles. In this blog post, we will take a closer look at Old Mutual Spectrum Funds and provide you with a comprehensive guide on everything you need to know about these funds.
Overview of Old Mutual Spectrum Funds
Old Mutual Spectrum Funds is a family of mutual funds that provides investors with a range of investment options that cater to different investment objectives and risk profiles. These funds are managed by Old Mutual Investment Group, which is one of the largest and most experienced investment management firms in South Africa. The funds are designed to provide investors with access to a diversified portfolio of assets that includes equities, bonds, and other fixed-income securities.
The Old Mutual Spectrum Funds family consists of four funds, each with its own investment objective and risk profile. These funds are:
- Old Mutual Spectrum Fund – This fund is designed for investors who are looking for a diversified portfolio of assets that includes equities, bonds, and other fixed-income securities. The fund aims to provide investors with long-term capital growth while also providing some income.
- Old Mutual Spectrum Income Fund – This fund is designed for investors who are looking for a steady stream of income. The fund invests in a diversified portfolio of fixed-income securities, including government bonds, corporate bonds, and other fixed-income securities.
- Old Mutual Spectrum Defensive Fund – This fund is designed for investors who are looking for a low-risk investment option. The fund invests in a diversified portfolio of fixed-income securities, including government bonds, corporate bonds, and other fixed-income securities.
- Old Mutual Spectrum Equity Fund – This fund is designed for investors who are looking for exposure to equities. The fund invests in a diversified portfolio of equities, with a focus on large-cap companies.
Investment Philosophy of Old Mutual Spectrum Funds
The investment philosophy of Old Mutual Spectrum Funds is based on the principles of diversification, active management, and risk management. The funds are designed to provide investors with access to a diversified portfolio of assets that includes equities, bonds, and other fixed-income securities. The funds are actively managed by a team of experienced investment professionals who use a rigorous investment process to identify investment opportunities and manage risk.
The investment process of Old Mutual Spectrum Funds consists of the following steps:
- Asset Allocation – The first step in the investment process of Old Mutual Spectrum Funds is asset allocation. The investment team analyzes the current market conditions and economic outlook to determine the appropriate mix of assets for each fund. The team considers factors such as interest rates, inflation, and geopolitical risks when making asset allocation decisions.
- Security Selection – Once the asset allocation has been determined, the investment team selects individual securities to invest in. The team uses a bottom-up approach to security selection, analyzing individual companies and bonds to identify those that offer the best potential for returns.
- Risk Management – The investment team also focuses on risk management throughout the investment process. The team uses a variety of risk management tools, such as diversification, hedging, and position sizing, to manage risk and protect investors’ capital.
Benefits of Investing in Old Mutual Spectrum Funds
There are several benefits to investing in Old Mutual Spectrum Funds, including:
- Diversification – Old Mutual Spectrum Funds provide investors with access to a diversified portfolio of assets, which helps to reduce risk and increase potential returns.
- Active Management – The funds are actively managed by a team of experienced investment professionals who use a rigorous investment process to identify investment opportunities and manage risk.
- Risk Management – The investment team focuses on risk management throughout the investment process, using a variety of tools to manage risk and protect investors’ capital.
- Investment Options – Old Mutual Spectrum Funds offer a range of investment options that cater to different investment objectives and risk profiles.
- Access to Expertise – Old Mutual Investment Group is one of the largest and most experienced investment management firms in South Africa, providing investors with access to a team of investment professionals with a wealth of expertise and experience.
Risks of Investing in Old Mutual Spectrum Funds
While Old Mutual Spectrum Funds offer several benefits, there are also some risks to consider when investing in these funds. These risks include:
- Market Risk – Old Mutual Spectrum Funds are subject to market risk, which means that the value of the funds can fluctuate based on changes in market conditions.
- Interest Rate Risk – The funds are also subject to interest rate risk, which means that changes in interest rates can affect the value of the funds.
- Credit Risk – The funds are exposed to credit risk, which means that the value of the funds can be affected by the creditworthiness of the companies and bonds in the portfolio.
- Liquidity Risk – The funds are subject to liquidity risk, which means that the ability to buy or sell assets in the portfolio may be limited, which can affect the value of the funds.
- Currency Risk – The funds may also be exposed to currency risk, which means that changes in exchange rates can affect the value of the funds.
It is important to carefully consider these risks before investing in Old Mutual Spectrum Funds and to consult with a financial advisor to determine if these funds are suitable for your investment objectives and risk tolerance. There is always a risk when it comes down to investing. If you want to read more about investing then you should read BrokerExtra blog.
Conclusion
Old Mutual Spectrum Funds offer investors a range of investment options that cater to different investment objectives and risk profiles. These funds are managed by Old Mutual Investment Group, which is one of the largest and most experienced investment management firms in South Africa. The investment philosophy of Old Mutual Spectrum Funds is based on the principles of diversification, active management, and risk management. While there are risks associated with investing in these funds, they offer several benefits, including diversification, active management, and access to expertise. Overall, Old Mutual Spectrum Funds can be a valuable addition to a well-diversified investment portfolio.