NAV on 2019/11/14
|NAV on 2019/11/13
|52 week high on 2019/04/24
|52 week low on 2019/08/28
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
83% SWIX; 10% Namibia Primary Listed Shares; 7% Namibia Call Rate
Tyrone van Wyk
Tyrone joined Old Mutual Investment Group Namibia (OMIGNAM) in January 2004 as an investment analyst.
As a member of the Namibian team, he is responsible for overseeing the Namibian investment processes and the overall performance of funds under management.
Prior to joining OMIGNAM, he was a trainee accountant at PricewaterhouseCoopers for three years.
Tyrone has seven years' experience in the asset management industry, and 10 years' experience in the financial services industry.
Old Mutual Namibia Growth comment - Sep 19
The South African equity market disappointed during the third quarter of 2019 after it had a good first half. The Shareholder Weighted Index (SWIX) decreased by 5.28% during the third quarter, with property shares returning a similar number of -5.34% for the quarter. The South African economy is still under pressure even though there was some relief in the GDP number for the second quarter of 2019, reading 3.1% annualised quarter on quarter. The rand has been weakening against the US dollar and other major currencies during the third quarter. It fell roughly 9.6% against the US dollar halfway through the quarter, then strengthened by nearly 6% in the beginning of September, just to weaken again and close the quarter at R15.16 to the USD. The weakening in the rand can mainly be attributed to trade war tensions and outflows of foreign investments.Globally, we have seen a slight uptick in the market towards the end of the quarter after a small pullback midway through. The S&P 500 increased by 1.2% over the quarter, slightly lower than the all-time high reached in July. The trade war is far from over but has already had a negative impact on growth. With some economies slowing down, central banks responded with rate cuts during the quarter to stimulate growth.
The fund outperformed the SWIX over the third quarter of 2019, returning -4.32% against the SWIX’s total return of -5.28%, gross of fees for the quarter. The outperformance was mainly due to the overweight position in Clover Industries Ltd, British American Tobacco and the underweight position in Shoprite Holdings. The best performing sector in the benchmark for the third quarter of 2019 was consumer staples, returning just over 2% for the quarter. The fund was slightly overweight in this sector, thus contributing to the fund’s performance. All the other sectors returned negative numbers for the third quarter. The energy sector was the weakest performing sector contracting 24% for the third quarter. The fund was overweight in this sector, thus detracting from overall performance.
Of our top 10 holdings, Sasol, Anglo American, Standard Bank, ABSA and FirstRand Ltd detracted from performance for the quarter, with the remaining five contributing towards performance relative to benchmark. The Capricorn Investment Group was the top contributor relative to benchmark, with a return of 2.12% for the quarter. Sasol was our worst performer, contracting 27.7% during the third quarter of 2019.
The fund is committed to offering investors above average performance over the medium to longer term by means of exposure to a select range of large and emerging equities.
WHO IS THIS FUND FOR?
Investors wishing to benefit from the wealth creation activities of Namibian and South African companies that show potential for superior growth.
The fund invests in selected shares across all economic groups and industry sectors. The fund does not subscribe to a particular theme or investment style and may invest in both growth and value companies. The fund is managed on an aggressive basis and is restructured and repositioned as market conditions