Octagon Financial’s exclusive new unit trust range offers peace-of-mind investing

Octagon Financial has evolved its strategic investment value proposition that clients have come to enjoy through its existing range of model portfolios to include a new collection of top-performing unit trust funds.

Called the Octagon SCI Fund of Funds range, the launch follows 18 months of working with the Financial Services Board (FSB) to meet all necessary legal requirements.

The result is a collection of three unit trust funds offering a diverse range of investment options, all designed to meet clients’ specific investing needs.

Octagon Financial will move mandated clients’ existing capital out of the current model portfolios and into the corresponding unit trust funds over the coming weeks.

To this end:

The Octagon Conservative portfolio will be replaced by the Octagon SCI Cautious Fund of Funds, and
The Octagon Moderate-Aggressive portfolio will be replaced by the Octagon SCI Growth Fund of Funds.
“These replacements do not involve any changes to the underlying strategy or risk tolerance of clients’ investments, but they do bring far more efficient benefits in the areas of tax, costs and asset allocation,” explains Steve Crouse, Octagon Financial chief investment officer.

Non-mandated clients will be contacted by their advisers to discuss the benefits of moving their investments to the new unit trust portfolios.

Octagon Financial Fund of Funds at a glance

Octagon SCI Cautious Fund of Funds

A multi-asset, low-equity fund that aims to achieve returns of inflation plus 3% over rolling 3-year periods
Invests across a basket of fixed-interest, low-equity, cash, property and global funds, combining the diversification elements of these asset classes
Aims to provide steady, predictable growth and income with low volatility
May hold up to 40% of underlying holdings in equities/shares; no more than 25% can be invested in offshore assets (cash, fixed-interest, equity)
Octagon SCI Growth Fund of Funds

A multi-asset, high-equity fund that aims to deliver returns of inflation plus 5% over rolling 5-year periods
The higher allocation to equities (75% maximum) means more assets invested in equities than the Cautious Fund
Growth predominantly achieved through capital returns and dividends, accompanied by higher volatility
With a bias towards local and offshore equities, this fund is suited to investors with a longer-term investment horizon (5 years+)
May hold up to 75% of its assets in equities/shares; no more than 25% can be invested in offshore assets
Conforms to Regulation 28 of the Pension Funds Act
Octagon SCI Worldwide Flexible Fund of Funds

Offers investors a ‘best view’, unconstrained growth strategy
Invests predominantly in equities; can hold up to 100% of its assets in equities
May, at times, be fully invested in offshore assets, local assets, or any amount in between
Suited to investors who can absorb the volatility associated with global equity and currency market fluctuations
Benchmarked against inflation plus 7% over rolling 7-year periods
Regarded as an aggressive-risk, high-growth strategy with possible high levels of volatility
Does not conform to Regulation 28 of the Pension Funds Act