NAV on 2017/06/22
|NAV on 2017/06/21
|52 week high on 2016/06/23
|52 week low on 2016/12/06
|Total Expense Ratio on 2017/03/31
|Total Expense Ratio (performance fee) on 2017/03/31
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
The fund aims to outperform the ASISA category average
Brian currently manages the Old Mutual Industrial Fund.
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.
Old Mutual Industrial comment - Dec 15
The FTSE/JSE All Share Industrial Index enjoyed a good quarter, posting a return of 6.6% outperforming the FTSE/JSE All Share Index, which returned 1.7%. One would think that the primary reason for this outperformance has been by the weakness of the rand (12% deterioration against the US dollar in the quarter). The Industrial Index is heavily biased towards larger rand-hedge type shares such as SABMiller, British American Tobacco, Naspers, Richemont and Steinhoff, to name a few.
When looking through the performance of individual shares, it is not a surprise that the underperformers in the quarter (and the year) were the shares that had one or more of the following characteristics:
1. Exposed to global commodity prices, either directly or indirectly (for instance, Kumba Iron Ore, ArcelorMittal, Aveng and Murray & Roberts).
2. Exposed to rand weakness because they are net importers of goods (for example, Imperial).
3. Exposed to drought in SA through agriculture equipment sales or maize/wheat input costs (for instance, Invicta and Pioneer Foods).
4. Exposed to poor performing and uncertain African markets and currencies (like MTN, Nampak and Datatec).
The trailing price:earnings (p:e) ratio of the Industrial Index continues to trade at high levels of around 20 times. This is well above the 10-year average of 17 times. Having said that, the rating is biased due to highly rated Naspers’s large weighting. With high valuation levels, extremely fragile local fundamentals and a weak rand, we continue to favour high quality companies that are defensive with at least some rand-hedge qualities.
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.