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0.96  /  0.28%

345.95

NAV on 2020/02/14
NAV on 2020/02/13 344.99
52 week high on 2019/06/20 359.89
52 week low on 2020/01/15 339.94
Total Expense Ratio on 2019/12/31 0.89
Total Expense Ratio (performance fee) on 2019/12/31 0
NAV Incl Dividends
1 month change 1.7% 1.7%
3 month change -1.14% 3.07%
6 month change 1.16% 5.47%
1 year change 1.87% 10.47%
5 year change -1.67% 6.7%
10 year change 0.45% 8.61%
Price data is updated once a day.
  • Sectoral allocations
Gilts 871.70 92.51%
Liquid Assets 70.61 7.49%
  • Top five holdings
  • Performance against peers
  • Fund data  
Management company:
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
Formation date:
1994/12/30
ISIN code:
ZAE000020699
Short name:
U-OMGILT
Risk:
Low - Medium
Sector:
South African--Interest Bearing--Variable Term
Benchmark:
All Bond Index
Contact details

Email
unittrusts@oldmutual.com

Website
http://www.omut.co.za

Telephone
021-503-7100

  • Fund management  
Old Mutual Investment Group SA
Old Mutual Investment Group SA (OMIGSA) was incorporated in 1993 as a wholly owned subsidiary of the Old Mutual Group. In June 1997 it became a fully contained and independent asset management company.
Based in Cape Town OMIGSA is a major player in the local institutional and retail market and offers a wide range of investment products to local and international investors as well as administering a variety of life fund products on behalf of the Old Mutual Group.
A team of over 30 investment analysts conducts in-depth, independent, in-house research. This makes OMIGSA unique due to the proprietary nature of the research as well as the fact that it is current across all sectors, markets and economies. In South Africa, OMIGSA provides institutional and retail investors with access to a spread of international markets and investment opportunities through its operations in the United Kingdom and USA.
Daphne Botha
Daphne manages the money market and active bond fund portfolios. In addition, she trades fixed interest instruments and is responsible for risk monitoring and fund exposures and she oversees asset administration.
Daphne joined Futuregrowth in April 2001 from NIB Asset Management.


  • Fund manager's comment

Old Mutual Bond comment - Sep 19

2019/10/23 00:00:00
Global bond yields continued the strong downward trend that commenced in the latter part of 2018. The combination of strong disinfl ationary forces, heightened fears of a global recession and broad-based monetary policy easing is mainly to blame. The yield of the 10-year US Treasury bond dropped a very signifi cant 56 basis points (bps) to 1.47% from the end of June to the fi rst week of September – the lowest level in three years. Elsewhere, German Bund yields were forced deeper into negative territory, with the entire yield curve trading at sub-zero levels.
Local market activity during the period under review is best described as a rollercoaster ride. The 56bp intra-quarter trading range of the benchmark 10-year RSA government bond (R2030) best illustrates the extent of the market volatility. After reaching a best level of 8.6% in mid-July, the R2030 yield retraced sharply to 9.2%. This was followed by a signifi cant bull rally of 35bps before another retracement forced the market to close weaker at 9.0%. This was 20bps higher than the closing level at the end of the second quarter.
The nominal bond yield curve slope steepened during this period. The combination of the July repo rate reduction, a benign infl ation backdrop and rising concern about the worsening fi scal backdrop caused longer-dated bond yields to increase relative to shorter-dated bond yields. As a result, the JSE All Bond Index (ALBI) delivered a 0.7% return over this period, well short of the cash return of 1.6%.
The fund underperformed the benchmark by 0.9% on a net-of-fee basis for the 12-month period ending September 2019. This was mainly due to the more conservative positioning of the fund relative to the benchmark, specifi cally the underweight modifi ed duration position during the period under review. This negative contribution was partly offset by the accrual earned from the higher yielding non-government bond holding in the fund.
The fund is defensively positioned with an underweight modifi ed duration tilt of 0.3 relative to the ALBI modifi ed duration of 7.0. This is the result of a smaller holding of nominal bonds with a term to maturity of 25 years plus relative to the benchmark. The underweight position at the back end of the yield curve is offset by a small cash holding and an overweight exposure to short- and medium-dated non-government nominal bonds. This position refl ects a balance between minimising capital loss in the case of rising longer-dated bond yields, and not foregoing all of the accrual offered by the steeply sloped yield curve. The fund will benefi t most in the case of bearish yield curve steepening, that is when yields of longer-dated bonds rise by more than those of shorter-dated bonds. It should also benefi t in the case of a repo rate reduction, but specifi cally when short- and medium-dated bond yields decrease by more than those of longer-dated bonds in response to such a monetary policy change.
  • Fund focus and objective  
The fund aims to offer a combination of capital growth and high income yields. Capital growth is primarily achieved by actively taking advantage of interest rate cycles.
This fund is suited to astute investors who have a particular view on relative asset class performance. The investor understands the impact of the interest rate cycle and accepts this risk in exchange for moderate long-term growth potential.
The fund invests across the full spectrum of the yield curve. It invests in public and private sector bonds and deposits, with at least 50% invested in bonds with an effective government guarantee.
The fund is not required to be Regulation 28 compliant in terms of its Deed, but the fund manager is mandated to comply with Regulation 28 on a day-to-day basis.
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