NAV on 2019/03/22
|NAV on 2019/03/21
|52 week high on 2018/05/02
|52 week low on 2018/11/30
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
FTSE/JSE RAFI 40 Index. gross of fees
Old Mutual RAFI 40 Index comment - Sept 18
The fund tracks the FTSE/JSE RAFI® 40 Index and its shareholdings mirror the shares that make up this benchmark. At month-end the benchmark sector allocation was as follows: Sector
Weight % Materials
29.31 Consumer Discretionary
15.69 Telecommunication Services
7.28 Consumer Staples
Energy and Utilities
In contrast to market capitalisation-weighted indices, this index’s composition reflects the underlying companies’ economic footprint, using fundamental measures to determine weightings. The index data is supplied by Research Affiliates® (RAFI) and is based on historic sales, cash flow, dividends paid and book value.
Cash exposure in the fund is kept as low as possible to give investors the full benefit of being invested in the benchmark index.
Investment flows are matched with the corresponding market transactions on a daily basis to ensure that the performance of the fund is in line with its benchmark. Futures contracts are used, when appropriate, to minimise trading costs.
The FTSE/JSE RAFI® 40 Index outperformed relative to the FTSE/JSE Top 40 Index for the quarter ending 30 September 2018. The FTSE/JSE RAFI® 40 Index yielded a return of 0.72% for the quarter relative to the -2.72% return of the market-capitalisation weighted FTSE/JSE Top 40 Index. The FTSE/JSE RAFI® 40 Index outperformed the FTSE/JSE Top 40 Index for the year ending 30 September 2018 by 5.05%.
The fund rebalances quarterly in line with the index and there were no constituent additions to and deletions from the index. The rebalanced index is effective at open on Tuesday 25 September 2018.
Some of the top individual stock performers in the index for the quarter ending September 2018 were Sanlam and AngloGold, increasing by 12.9% and 9.2% respectively, while some of the main detractors were Aspen and Tiger Brands, which were down 34.4% and 20.0% respectively.
As a fundamentally weighted index, the RAFI® methodology favours stocks with a value bias and within the South African context the methodology favours the resources sector as a source of value.
The fund aims to generate a return in line with the FTSE/JSE RAFI® 40 Index. Its primary objective is to provide long-term capital growth, with a secondary objective of delivering a reasonable income over time. The fund invests in shares included in the FTSE/JSE RAFI® 40 Index, tracking the weightings of each company as closely as possible. This RAFI® Index comprises listed companies rated according to four financial factors: cash flow, sales and dividends (averaged over 5 years) as well as book value at review date. Derivatives can be used to enable the portfolio to more effectively track the RAFI®.