NAV on 2019/11/14
|NAV on 2019/11/13
|52 week high on 2019/08/28
|52 week low on 2018/11/28
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
70% FTSE/JSE Gold Mining Index and 30% FTSE Gold Mines Index Series
Meryl joined Old Mutual Investment Group in February 2012 and is responsible for coverage of gold, packaging manufacturers, heavy equipment distributors and logistics companies. She is also the portfolio manager of the Old Mutual Gold Fund.
Prior to joining, she was a Business Efficiency Manager at ABSA for two years. Prior to this she held various positions within Unilever, including Process Engineering Manager. Meryl has four years of work experience in the asset management industry.
Old Mutual Gold comment - Sep 19
The gold price closed the quarter at US$1 485 per ounce, adding to last quarter’s gain by climbing 5%. The trade war actions taken between the US and China, a drone strike on Saudi crude production facilities and the ongoing Brexit negotiations have created a climate of heightened geopolitical uncertainty, causing a fl ight to safety into gold. As US growth started to slow, the US Federal Reserve has wavered in its rate hiking path. Strong investment demand has prevailed, which makes a short-term correction in the gold price more likely.
The Old Mutual Gold Fund has a composite benchmark weighted 70% to the FTSE/JSE Gold Mining Index and 30% to the FTSE Gold Mines Index, which is comprised of global gold stocks. The FTSE/JSE Gold Mining Index gained 30% over the quarter while the FTSE Gold Mines Index rose 14% in rand terms.
The most marginal producers, Harmony Gold and Sibanye Stillwater, were the strongest performers on the local front this quarter, rising 36% and 25% respectively. The fund has held these names in relatively small positions given concerns about the long-term sustainability of their assets. On the international front, the relative outperformer was Eldorado Gold.
AngloGold Ashanti remains the fund’s largest holding. With Randgold merging with Barrick, a void has been left for a mid-sized gold company with a strong balance sheet, high quality assets and a strict capital allocation framework. AngloGold is on its way to fi lling this void. Given the risk that the gold price has run too hard too fast, allocation of some funds into metal rather than stocks is under consideration.
The fund aims to offer superior returns over the medium to longer term through investment in the shares of companies involved in gold and other precious metals.
This fund is suited to investors seeking capital growth over the long term, who have a particular view of gold and other precious metals and who can tolerate stock market and sector volatility.
It invests in gold and other precious metals showing above average prospects for growth. No SA and offshore exposure limits will apply. Derivatives may be used for efficient portfolio management purposes.
The fund aims to achieve long-term inflation-beating growth, and may hold a higher exposure to equities and offshore assets and a greater exposure to a single equity than what is allowed in terms of Regulation 28 of the Pension Funds Act. This fund is therefore not Regulation 28 compliant.