NAV on 2019/09/13
|NAV on 2019/09/12
|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 - Jun 19
The South African equity market performed well during the second quarter of 2019 after it recovered in June. The Shareholder Weighted Index (SWIX) gained 1.9% for the second quarter of 2019. Property shares, still lagging, were only up by 1.3% for the quarter. The South African economy is clearly still under pressure, with the final GDP number for the first quarter of 2019 reading -3.2%. The rand saw weakening against the US dollar and other major currencies during the first half of the second quarter; it fell roughly 3.3% against the US dollar before strengthening by nearly 6% to close the quarter of at 14.08 to the USD. The recovery of the rand in the second half of Q2 can mainly be attributed to trade war tension easing and rate cuts in the US being factored in.
Globally, we have seen a significant recovery in the market towards the end of the quarter with all major equity indexes being positive for the second quarter and the S&P500 reaching new highs when it increased by 3.8%. The trade war is far from over, but the US and China put on the brakes, with no further tariffs put in place after their last meeting in June. There were some concerns in the US economy and talks of a rate cut in July gained momentum.
The fund outperformed the SWIX over the first half of the year, returning 8.5% against SWIX’s total return of 7.5% gross of fees for the year. The outperformance was mainly due to the overweight position in Kumba Iron Ore, Namibian Breweries and African Rainbow Minerals and underweight in Shoprite Holdings. The best performing sector in the benchmark for the second quarter of 2019 was communication services, returning 17.2% for the quarter. The fund was slightly underweight in this sector, thus detracting to the fund’s performance. The energy sector was the second-best performing sector for the quarter, returning 8.2%. The fund was overweight in this sector, thus contributing to the fund’s performance versus benchmark. The utilities sector was the weakest performing sector, contracting 17.1% for the second quarter. The fund was overweight in this sector, thus detracting from overall performance.
Of our top 10 holdings, Sasol, Capricorn Investment, Naspers, Standard Bank and FirstRand Namibia detracted from performance for the quarter, with the remaining five contributing towards performance relative to benchmark. ABSA was the top contributor relative to benchmark, with a return of 20.2% for the quarter. FirstRand Namibia was our worst performer, contracting 13.5% during the second quarter of 2019.
Namibian listed companies which form part of our portfolio which had negative total return for the quarter included FirstRand Namibia (-13.5%), Letshego Holdings (-3.6%) and Oryx Properties (-3.5%). The following shares had positive total return numbers for the second quarter of 2019: Namibian Breweries (1.9%), Capricorn Investment Group (0.9%).
The fund maintains its overweight allocations to Namibian Primary listed shares, which have proven to weather the volatile circumstances in global markets well. The fund has increased its cash position to the benchmark weight.
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