NAV on 2019/05/21
|NAV on 2019/05/20
|52 week high on 2018/09/03
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
South African--Multi Asset--Medium Equity
Alida joined MacroSolutions in August 2007 as an equity portfolio manager. She is responsible for ensuring that the team's macro views are fully reflected throughout the multi-asset class portfolios they manage. Alida also brings a bottom-up perspective to a largely top-down boutique.
Prior to joining MacroSolutions, Alida was a senior portfolio manager at Metropolitan Asset Managers. Here she managed the Metropolitan Industrial Fund, Metropolitan General Equity Fund, as well as the Small Cap Fund.
Alida was also the Head of Equity Research at Metropolitan Asset Managers for six years. Some of her responsibilities included overseeing the equity investment process, management of equity analysts, monitoring equity performance, managing the growth model portfolio and conducting presentations to clients, consultants and intermediaries.
She started her investment career at Allan Gray Limited in 1994 as a quantitative analyst and then equity analyst.
John joined MacroSolutions in June 2014 as a portfolio manager. As a member of the MacroSolutions team, he is responsible for managing conservative funds including the Profile Capital & Stable Growth Funds and the Old Mutual Real Income and Stable Growth Unit Trusts.
John's background as an investment strategist enables him to integrate top down and bottom up analysis into portfolio construction.
Prior to joining MacroSolutions, he was the Investment Strategist for South Africa at UBS South Africa for nine years. In his last two years at UBS, he was also responsible for the emerging EMEA Equity strategy.
John has 15 years of work experience in financial markets in South Africa and London. In addition he has seven years of experience as an economist in public and private sector capacities in Namibia and South Africa.
Old Mutual Moderate-Balanced Fund comment - Sep 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 delivered a positive return over the quarter. Since its inception, the fund has performed excellently relative to competitors. During the quarter, the fund’s overweight position in global equities paid off, with global equities delivering the best rand return across major asset classes.
The fund benefited from exposure to domestic cash and bonds, which delivered positive returns over the quarter. The fund’s exposure to local property and equities detracted from performance. However, while the fund’s equity holdings were down over the quarter, they outperformed the overall equity market. The local equity market remained volatile. As always, there were winners and losers. Winners that contributed to your fund’s equity performance were Capitec, Raubex and Super Group. These are companies that are sensitive to local conditions that have been hit post 'Ramaphoria', but have subsequently showed some recovery from that low base. On the other side of the performance spectrum, Tiger Brands, MTN and Rhodes Food Group detracted from performance. However, not having had exposure to Aspen, Mediclinic and Shoprite (all of which showed significant declines over the past three months), boosted the return on a relative basis - as the absolute return was negative, but still substantially better than the negative return of the equity market. Looking ahead, the fund remains overweight to local cash, which offers attractive risk-adjusted returns, with 12-month negotiable certificate of deposit (NCDs) offering a yield in excess of 8% compared with the latest annual inflation estimate of 4.9%. The fund also has exposure to government bonds, which offer attractive yields of well over 9% for 10- year bond yields. In our view, this compensates investors for the additional return being asked to hold longer-dated bonds. The euphoria about President Ramaphosa has faded, but we continue to think that, in time, the reforms being implemented by Ramaphosa’s government will result in lower risk premiums being demanded by investors in South African assets. However, the growth outlook in South Africa remains very weak and we continue to favour global equities over local equities within the portfolio. The fund is well positioned to weather volatile markets and to deliver to its inflation target over the long term.
The fund aims to achieve long-term inflation-beating growth from an actively managed investment portfolio with a moderate balanced nature. The equity exposure will be commensurate with the exposure typically displayed by multi-asset medium equity portfolios.
This fund is suited to investors wanting moderate long-term growth with less volatility in the short term than typical multi-asset high equity funds. The fund is suitable as a stand-alone retirement investment.
The fund is exposed to all sectors of the market (shares, bonds & property) with a maximum of 60% exposure to equities and may invest up to 25% of its portfolio offshore in line with Treasury guidelines. Derivatives may be used for risk management purposes.
The fund complies with retirement fund legislation. It is therefore suitable as a stand-alone fund in retirement products where Regulation 28 compliance is specifically required.