NAV on 2019/09/13
|NAV on 2019/09/12
|52 week high on 2019/04/23
|52 week low on 2019/08/15
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
Hanno is currently part of the portfolio management team responsible for managing retail and institutional assets. His responsibilities include managing multi-asset class funds, as well as local and international equity portfolios.
Before joining Old Mutual Investment Group, Hanno worked in the UK for two years.
Since joining Old Mutual in 1998, Hanno has been involved in the management of
derivative, multi-asset class funds, equity portfolios and hedge funds.
Old Mutual Namibia Dynamic Floor comment - Jun 19
The second quarter of 2019 closed on a positive note after constructive talks at the G20 summit in Osaka, Japan. A key takeout from the summit was the US declaring an end to tariffs imposed on China, with US companies allowed to resume trade with Huawei. In what was a historic moment, President Donald Trump met with North Korean leader Kim Jong-Un in the area dividing North and South Korea, becoming the first sitting US president to set foot in North Korea.
The Fed’s Federal Open Market Committee (FOMC) policy meeting in mid-June saw US rates remain unchanged at 2.5%, but a dovish tone emerged, pointing to the likelihood of a rate cut at the July meeting. Seven policymakers now expect 0.5% of cuts before the end of the year. This dovish message centred on uncertainty around trade policy, the state of the global economy, signs of an economic slowdown in the US accompanied by slower job growth, as well as muted inflation going forward.
In SA the ANC won the majority vote in the national elections, with the DA - the official opposition party - losing ground. President Cyril Ramaphosa installed a balanced cabinet which is seen as an attempt to clean up the internal ANC leadership. While the State of the Nation Address delivered on 20 June did not provide much detail, it delivered on the most pressing issues, focusing largely on the economy and lack of growth. Much attention is still on the embattled state-owned enterprises (SOEs), with Eskom a particular area of concern, and much is dependent on how government will address the continual drain on the fiscus.
The FTSE/JSE All Share Index advanced 3.1% over the quarter, spurred on by financials sector with a 7.0% gain, while industrials and resources gained 4.5% and 2.6% respectively.
Given the well-diversified nature of the Namibian Dynamic Floor Fund and its moderate exposure to growth assets, the fund will continue to deliver returns in a risk-controlled framework with reduced volatility. The portfolio is still well positioned to meaningfully participate in any further equity market rallies. We do, however, remain cautious and are well placed to protect capital should markets retrace. This approach has served the portfolio well as it continues to provide the optimal blend of exposure to growth assets and capital protection.
The fund strives for long term capital growth as well as some level of capital protection, aiming to protect at least 90% of the net investment over a 12-month period. Through the use of a quantitative risk model, the fund aims to profit from a rising share market and protect against capital losses in a weak market. The fund invests across Namibian and South African shares, bonds and cash - moving from shares into fixed interest investments when the fund's value drops below a predetermined 'floor'. When markets start to move up, the fund increases its holdings in shares, tapping into these growth opportunities. The fund conforms to legislation governing retirement funds.
The fund is ideally suited to the more risk-averse investor whose priority is capital preservation but who still wants to participate in upside market growth. It suits investors who want:
* Protection of invested capital
* The level of capital protection to follow markets upwards
* Active equity management
The fund is also ideal for investors nearing or in retirement who want to protect their capital base, but still want access to some level of growth.
This is a moderate risk fund (risk rating 3). The risk management model aims to protect the portfolio value at a forward 'floor' level. The model will adjust the portfolio's asset allocation dynamically to protect capital. This form of portfolio protection is not a guarantee, but clearly a protective strategy only. The protective strategy is effective over typical 12-month rolling periods. Short term fund value fluctuations can occur. Alternative investment instruments will be used tactically to manage and limit downside risk, and to capture or lock in gains as and when they occur.