NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2019/04/23
|52 week low on 2018/11/30
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
FTSE/JSE RAFI 40 Index. gross of fees
Frank joined Customised Solutions in September 2009 as an Investment Analyst before becoming an Index Portfolio Manager in 2012. He is responsible for managing both local and international tracker funds. He has eight years industry experience specialising in managing funds in Africa, and Emerging Markets.
Prior to joining Customised Solutions, he was a lecturer at Tshwane University of Technology (Mathematics and Statistics Department) for five years. Frank also worked as a research assistant for Siyazi-SA Consulting, under operations risk management.
Bernisha joined Old Mutual Customised Solutions as an Indexation Portfolio Manager in 2017. Her responsibilities include indexation portfolio management, optimisation and implementation.
Prior to this role she held positions as both a quantitative analyst and portfolio manager at Taquanta Asset Managers, working on both the passive and active product offerings. Bernisha joined Nedbank in 2005 as a quantitative analyst and worked in the Corporate Ratings unit. She also worked as an assistant lecturer in the Department of Statistics at the University of Pretoria. Bernisha has 12 years of work experience in the investment industry.
Old Mutual RAFI 40 Index comment - Jun 19
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 34.8 Financials 29.0 Consumer Discretionary 14.6 Telecommunication Services 9.6 Consumer Staples 8.0 Healthcare 2.0 Industrials 2.0 Energy & Utilities 0.0 Information Technology 0.0
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 underperformed relative to the FTSE/JSE Top 40 Index for the quarter ending 30 June 2019. The RAFI® 40 Index yielded a return of 3.8% for the quarter relative to the 4.6% return of the market-capitalisation weighted Top 40 Index. The FTSE/JSE RAFI® 40 Index outperformed the FTSE/JSE Top 40 Index for the year ending 30 June 2019 by 3.2%.
The fund rebalances quarterly in line with the index. There were no additions nor deletions. The rebalanced index was effective at open on Monday 24 June 2019.
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®.