NAV on 2019/01/15
|NAV on 2019/01/14
|52 week high on 2018/09/03
|52 week low on 2019/01/04
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
South African--Multi Asset--Flexible
Arthur takes on the role of chief investment officer. He is ex Quaystone, having spent eight years in portfolio management and analysis with BoE Asset Management. Prior to that he was with Syfrets Managed Assets where he managed the highly successful Syfrets Prime Select Fund from its inception until his departure.
Arthur is a chartered financial analyst with a depth of experience in all aspects of asset management.
Peter joined Old Mutual in May 2005 and has been the Head of MacroSolutions since 2007.
Peter has specific responsibility for third-party funds, including the Profile range. He also manages two unit trust funds, Old Mutual Maximum Return Fund of Funds and Old Mutual Flexible Fund. The Old Mutual Edge28 Life Fund is also part of his portfolio.
Having analysed countries and companies, Peter can integrate top-down and bottom-up drivers and valuations to create an optimal portfolio.
Peter is an award-winning analyst who has extensive experience in the investment arena. He worked at a stockbroker for 10 years as an analyst and equity strategist, after which he was the Head of Research and Head of Equities for Cazenove South Africa.
Old Mutual Flexible comment - Sept 18
The global equity market delivered good returns for the quarter, but lacked meaningful breadth as US equities (+7.5% in US dollar terms) easily outperformed every other major region. US equities responded to robust economic growth in the region and strong earnings growth reported by the companies during the quarter. Negative sentiment persisted in emerging markets, as China showed signs of slower growth, commodity prices remained under pressure and the likes of Turkey and Argentina reminded investors of the risks of investing in the developing world. Unsurprisingly, emerging market currencies, equities and bonds fell during the quarter, particularly in August and early September.
Local assets, already suffering from the poor emerging market sentiment, were dealt another blow in September as Stats SA announced that our economy had fallen further in the second quarter. Although the rand and the bond market largely recovered their losses by the end of the quarter, the equity market was unable to mount a comeback, ending the quarter slightly lower (-1.7%). The challenging economic environment, reflected in company results and updates, shows little sign of relief in the near term. Aspen was a notable casualty of disappointing the market, losing more than a third of its value in a matter of days. The fund had a good quarter to the end of September 2018 relative to peers. Over the longer term, the fund is still ahead of its performance objective, but over the year to date this has been a tough hurdle. The fund benefited from exposure to developed equity markets and the domestic share portfolio significantly outperformed the FTSE/JSE Capped SWIX Index, delivering a positive number against the benchmark’s decline.
Capitec and Sasol were the most meaningful positive contributors to equity performance, powered by strong results and the rising oil price, respectively. Our positive view on Old Mutual’s managed separation strategy yielded a good return, boosted by special dividends from both the new listed entities. The fund has had a cautious stance on expensive rand-hedge defensives and Naspers for some time, which paradoxically paid off in a period where the rand was quite weak. Local defensive sectors, including food retail and healthcare (where the fund has no exposure), fared no better and lagged the index. The fund has also avoided Aspen, which had a terrible quarter on the back of a disappointing result. We have been concerned about the company’s ability to extract growth from its increasingly complex global business. On the negative side, MTN was a major detractor of performance, with the Nigerian authorities announcing two unexpected setbacks in Nigeria. The Nigerian government’s stance has since softened, but the issues remain unresolved. We used the share price weakness to add marginally to our position in MTN and the price has since recovered off its worst levels.
Looking forward, we maintain a preference for equity over fixed income assets in our global portfolio. In South Africa, we see incremental improvements in state governance, but the local economy remains weak – burdened with low confidence and the rising oil price. We are seeking to hold domestic equities that are neither dependent on broad local macroeconomic factors for success nor are highly leveraged to an eventual turn in the economy. We believe that many of the themes of recent years, such as exceptionally low interest rates in developed economies, could be fading and these changes need to be considered when making investments. We are pleased that the fund has performed well in a tough quarter and continue to see opportunities for good performance.
The fund aims to deliver long-term equity-like returns, but at lower levels of volatility than equity. The fund will predominantly invest in shares, but the portfolio manager can invest in less risky asset classes when they offer better value.
This fund is suited to investors who want high long-term capital growth, but also want some protection against short-term fluctuations of the equity market. The fund is suitable for long-term savings outside a retirement fund.