NAV on 2017/11/24
|NAV on 2017/11/23
|52 week high on 2017/11/21
|52 week low on 2016/12/06
|Total Expense Ratio on 2017/09/30
|Total Expense Ratio (performance fee) on 2017/09/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
The fund aims to outperform the ASISA category average
Brian was previously the sector head of Small Cap Research. Besides managing the Old Mutual Small Caps Unit Trust Fund, he was also responsible for managing the small cap component of OMIGSA’s institutional funds.
Brian studied at the University of Natal (Pietermaritzburg) and completed articles with KPMG before joining Old Mutual Investment Group as an analyst in 1998. He became a portfolio manager in early 2000.
Brian currently manages the Old Mutual Industrial Fund. He is supported by a team of analysts, who have extensive experience in the industry.
Old Mutual Industrial comment - Jun 17
In South Africa, various economic and political events, dominated by the sovereign downgrade and the sudden cabinet reshuffle, led to further volatility in the markets over the period. The FTSE/JSE All Share Index (ALSI) returned -0.85% during the fourth quarter ending June 2017, with industrials returning 1.91%, while the rand strengthened against the US dollar by 2.28%. Despite the volatility in the market, there were still some opportunities to make money during the quarter.
Datatec Limited, Nampak Limited and Naspers returned 17%, 12% and 10% respectively. There is no discernible 'theme' from shares delivering strong returns, as each company in that list has various company specific issues that drove the share price move. For example, Datatec shares rallied on the back of news that the company was selling a part of its operations. Nampak performed well after they released their results and announced their cash extraction from Nigeria and Angola had improved, and this was well received by the market. Naspers also performed well, driven mainly by the strong performance of Tencent in their recent results.
Poor returns were seen from ArcelorMittal South Africa (-47%), Sun International (-27%) and Metair (-25%). As with the strong performers, there was no discernible theme that explained the poor performers. For Sun International, the sector remains tough, as gross gaming revenues remain low.
The trailing price-earnings ratio of the Industrial Index was at a high level of more than 20 times and well above the 10-year average. This includes highly rated Naspers, which has a large weighting in The index. Against a backdrop of 'high' valuation levels, fragile local fundamentals and a volatile stock market and rand, we continue to favour high quality companies that are defensive, with at least some offshore currency exposure.
Looking forward, global growth remains fragile and monetary policy should remain accommodative as long as inflation is contained. Locally, inflation has peaked and should start coming down; and there should be no more interest rate hikes. However, the uncertainty around the political environment creates a headwind for economic confidence, growth and job creation in the South African economy. Our investment approach provides a resilient framework to navigate through these times.
The fund aims to offer superior returns over the medium to longer term. It achieves this by selectively investing in a focused portfolio of listed industrial companies. The fund aims to achieve its performance objective through well researched and superior share selection.
The fund is for investors wishing to diversify their portfolio to include a specialist fund and who believe the consumer sector offers strong growth opportunities.
This is an aggressive risk fund (risk rating 5). With its exclusive exposure to the consumer sector, it may be more volatile than a fully diversified general equity portfolio. The fund is exposed to share price movements, which are affected by the performance of individual companies, general market conditions as well as political and economic changes. In addition, this fund may hold a greater risk as exposure limits to a single security may be higher. Risk is minimised through a diversified portfolio of shares. Poor performance of one share may be offset by stronger performance of other shares.