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0.07  /  0.06%


NAV on 2019/11/14
NAV on 2019/11/13 125.08
52 week high on 2019/06/27 126.62
52 week low on 2019/01/02 123.66
Total Expense Ratio on 2019/09/30 0.89
Total Expense Ratio (performance fee) on 2019/09/30 0
NAV Incl Dividends
1 month change 0.43% 0.43%
3 month change 0.01% 1.88%
6 month change 0.06% 3.81%
1 year change 0.54% 8.15%
5 year change 0.43% 7.87%
10 year change 0.47% 7.57%
Price data is updated once a day.
  • Sectoral allocations
Derivatives -0.06 0.00%
Gilts 1857.40 67.00%
Liquid Assets 78.27 2.82%
Money Market 836.62 30.18%
  • Top five holdings
MM-04MONTH 295.60 10.66%
MM-07MONTH 165.44 5.97%
MM-06MONTH 90.25 3.26%
MM-05MONTH 70.19 2.53%
MM-08MONTH 45.12 1.63%
  • Performance against peers
  • Fund data  
Management company:
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
Formation date:
ISIN code:
Short name:
South African--Interest Bearing--Short Term
80% STeFI Composite Index & 20% All Bond Index
Contact details




  • Fund management  
Wikus Furstenberg
Wikus manages a range of fixed interest portfolios, which include the Income Fund, Enhanced Income Fund, Namibia Enhanced Income Fund and the fixed interest component of the Real Income Fund.
Wikus joined Old Mutual Investment Group in October 1999 as a fixed interest portfolio manager from ABN AMRO Securities. He started his career in the Economics Department of the South African Reserve Bank. In 1995, he joined ABSA Bank Treasury as a treasury economist and pursued this position until 1997.

  • Fund manager's comment

Old Mutual Income 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 56 basis point 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 outperformed the benchmark by 0.2% on a net-of-fee basis for the 12-month period ending September 2019. The overall defensive interest rate position and accrual from higher yielding, low modifi ed duration variable rate bonds were the main positive contributors. The holding of fi xed rate bonds in the 1-7 years maturity band benefi ted most, relative to longer-dated bonds, from the July repo rate reduction.
In light of our cautious investment stance, the fund is conservatively positioned. In terms of interest rate risk, this is demonstrated by the fund’s total modifi ed duration position, currently at just more than half of the maximum allowed mandate limit of 2.0. The 45% variable rate bond holding forms the core of this strategy. This well-diversifi ed holding of carefully selected non-government instruments was marked to market at an average weighted modifi ed duration of 0.19 and a weighted average yield to maturity of 8.6% at the end of September. Similarly, the holding of fi xed rate instruments with a term to maturity shorter than 13 months, thus low risk, is also high at 36%. At the end of September, the fund also held 13% of the R186 (maturity 2026). Our selection in this case was based on the fact that this Government bond pays an annual coupon rate of 10.5% while it is anticipated to benefi t from its position on the yield curve in terms of roll-down. Although we prefer for monetary policy to remain stable, this bond will benefi t relatively more from any future repo rate reductions. It is also less sensitive to any negative fi scal developments compared to longer-dated fi xed rate bonds.
  • Fund focus and objective  
The fund aims to offer a high level of income, together with relative capital stability. It aims to pay out a high regular income without putting the investor's money at undue risk. It aims to achieve higher than money market returns by taking on marginally more risk.
This fund is suited to investors seeking capital stability. It can be used as a secure parking bay in times of stock market instability as well as a means of phasing money into an equity (share) fund over a period of time.
The fund invests in local interest-bearing investments including fixed and floating rate bonds and money market instruments. The average duration of the fund will always be less than two years, which contributes to its relative capital stability. Derivatives may be used for efficient portfolio management purposes.

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