Take a closer look at how the asset allocation has changed on each of the Omnis MPS portfolios
Asset Allocation The starting point for OMPS is the ‘strategic asset allocation’ that has been set by your financial adviser to meet your agreed attitude to risk. This is the framework that is used to allocate your money between stock markets around the world, bonds and alternative investments.
Research shows that getting the strategic asset allocation right gives you the best chance to achieve the highest returns on your money for the level of risk you’re willing and able to take.
The strategic asset allocation defines the long-term allocation of the investments we hold in the portfolios. The investments held in your portfolio are spread across different regions and depending on your attitude to risk, a range of assets. This diversification reduces the impact on performance of any individual event like the coronavirus crisis as assets react in different ways. The strategic asset allocation for each of the portfolios is marked as circles in this chart.
The OMPS investment team can make ‘tactical’ changes in line with external drivers and influencers on a day-to-day basis within set parameters, as illustrated by the arrows on the previous page, ensuring the portfolio continues to match your attitude to risk. This means we can be either ‘overweight’ or ‘underweight’ for each type of investment. Here we give an overview of some of the key times we have put these tactical powers to work over the last 12 months.
Portfolio positioning
As at the end of March 2021, the portfolios were positioned as follows.
To find out more about our positioning, please watch this video or download our latest commentary.
With more than £10 billion of assets under management, Omnis is one of the UK’s largest asset managers. Omnis’ approach to investing involves identifying and selecting the world’s best investment managers that we appoint to manage the investment component of the funds. This approach allows us to offer you access to the best investment managers along with ongoing oversight from Omnis’ investment professionals.
Situations change all the time, and there will be instances where we will be required to change the investment managers on our funds, such as when a manager doesn’t meet our expectations. The Omnis model means that when an investment management change is needed, we can find a suitable replacement and transition to them without investors having to buy and sell funds. In other models, if an investment manager needs changing, investors would need to sell the fund and switch manually to another one, which can be a lengthy process. It would also leave them uninvested during the period and could lead to unexpected tax bills.
Over the last 12 months, Omnis has made several changes to its funds, from appointing new investment managers to instructing all its managers to divest from Russia and Ukraine on 11th February, such that through OMPS you had NO DIRECT EXPOSURE to Russia and Ukraine at the point Russia’s invasion took place.
On the next page we detail the changes made within the Omnis funds over the last 12 months.
