NAV on 2019/11/14
|NAV on 2019/11/13
|52 week high on 2019/04/23
|52 week low on 2019/08/16
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
FTSE/JSE Capped Shareholder Weighted Index
- 22 years of investment experience
- 19 years of investment experience
Old Mutual Managed Alpha Equity comment - Sep 19
The ongoing US-China trade tensions, a drone strike on Saudi oil facilities and more Brexit drama encouraged intra-month volatility. Local equities hardly managed to hold on to gains, with the FTSE/JSE Capped Shareholder Weighted All Share Index (Capped SWIX) recording a return of 0.67% for the month of September. Local markets did not react to the South African Reserve Bank’s decision to keep rates unchanged. Globally, after central banks eased policy in response to slowing economic growth, both the US Federal Reserve and European Central Bank cut rates. The local currency weakened against the greenback by 7.35%, 4.02% against the sterling, and 2.97% against the euro for the quarter ending September 2019.
In this context, the fund’s benchmark, the FTSE/ JSE Capped SWIX, was down 5.11% over the quarter ending September 2019. The Large, mid- and small cap indices returned -5.22%, -1.81% and -3.22% respectively. The two worst performing sectors for the quarter were telecommunications and financials. These two sectors declined by 7.77% and 6.76% respectively. Over the past quarter the fund was hurt by its position in price momentum.
We continue to focus on constructing a portfolio enabled to profit from the varying market themes. We strongly believe that it is different themes or factors that drive the market at a point in time. It is through this investment belief and rigorous risk management that we are capable of maximising long-term capital growth. Companies that have poor debt to equity are being penalised by the market and the portfolio is positioned to gain from this “penalty”. The market is looking for companies with good returns on equity and the portfolio is positioned accordingly.
OLD MUTUAL MANAGED ALPHA EQUITY FUND is a general equity domestic portfolio. In selecting securities for this portfolio, the Manager shall seek to achieve an investment medium for investors, which shall have as its main objective to obtain steady growth of capital by endeavoring to exceed the long term average return of the general equity funds. In order to achieve this objective, the portfolio will invest mainly in South African investments at all times as required of domestic funds. The portfolio will predominantly invest in equities. The portfolio will further invest in non-equity, money market instruments and listed property to the limits as required of portfolios to be listed under the general equity sector. The portfolio will be managed using a proprietary quantitative investment process that entails the analysis of investment styles such as value, growth, momentum and other proprietary research factors. This portfolio may make use of derivatives, within the limitations prescribed by the Regulations, in order to achieve its investment objectives.