Old Mutual Global Investors has said it plans to rebrand its Generation funds after admitting the names are “confusing”.
The range consists of four products: Generation Target 3:4, 3:6, 4:4 and 4:6. The numbers refer to target levels of growth – measured as 3 or 4 per cent above the consumer prices index – and income, either 4 or 6 per cent.
However, OMGI chief executive Julian Ide said the numbers were “confusing” to investors and the group planned to make them more “accessible and understandable”.
“Investors don’t really understand the whole 4:4 thing – it doesn’t make sense to them and takes quite a bit of explaining,” he said. “The fund names should speak for themselves.”
As part of the rebrand, Mr Ide said he also wanted to change the marketing strategy, which focuses on them as a multi-manager range.
“That is not the only reason they exist,” he said. “They are more of a multi-asset portfolio. They are particularly well suited for investors looking to enter into income drawdown.”
OMGI was ahead of the curve with the range when it launched in 2012. A target of delivering returns above inflation is likely to be popular with pensioners, who have greater control of their finances in light of chancellor George Osborne’s pension freedoms.
The range, run by John Ventre, has its three-year anniversary in November. At the end of April, the funds had £74.3m assets under management.