NAV on 2021/09/23
|NAV on 2021/09/22
|52 week high on 2021/08/17
|52 week low on 2020/11/02
|Total Expense Ratio on 2021/06/30
|Total Expense Ratio (performance fee) on 2021/06/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
85% Customised SA Shari’ah Equity Index & 15% S&P Developed Markets Large and Mid-Cap Shari’ah Index
- 24 years of investment experience
- 19 years of investment experience
OM Albaraka Equity comment - Dec 19
Emerging markets were lifted by positive sentiment, as local equities sprinted up towards the end of the year. South Africa, however, was once again dimmed into darkness as Eskom’s nightmare continues regarding energy generation. Globally, we saw markets ending higher as US-China trade agreements were partially rolled back and the UK’s elections helped political stability.
The FTSE/JSE All Share Index (ALSI) was up by 4.63% over the quarter ending December 2019. Large, mid- and small caps returned +4.54%, +12.91% and +0.74% respectively for the quarter ending December 2019.
The local currency strengthened against the greenback by 7.50%, by 0.26% against the sterling, and 4.91% against the euro for the quarter ending December 2019.
The top sectors that contributed positively were healthcare and basic materials returning 20.50% and 13.78% respectively for the quarter ending December 2019. The worst performing sectors for the quarter, down by 13.31% and 0.92% respectively, were telecommunications and technology.
This fund is suited to investors with a long-term investment horizon seeking to maximise growth in a Shari’ah compliant fund. Investors must be able to accept the risks associated with equity funds and also the mandate risk of a more limited investment universe.
The fund’s current positioning from an offshore allocation perspective is at approximately 25%, providing investors with significant diversification and investment opportunity benefits. In addition, the fund’s valuation, sentiment and risk indicators are all attractive compared to its benchmark.
Our strategy seeks to achieve a greater return and less volatility than the market over a longterm horizon. As a consequence, the fund could potentially underperform in a strongly rising market, which was the case in December. The fund has a high exposure to international equities, allowing the fund to achieve greater diversification and, consequently, a reduction in volatility. The strengthening of the rand detracted from the performance of the portfolio.
Through time, equity has achieved greater returns than the other asset classes. Our high exposure to equities benefits from this and, similarly within equities, we are positioned to achieve lower volatility when compared to the fund’s benchmark.
The Old Mutual Albaraka Equity Fund is a Shari'ah compliant fund which provides investors with cost-effective access to a broad spectrum of JSE listed investments.
The Fund is strictly managed in accordance with Shari'ah Law and therefore does not invest in shares that have an association with alcohol, gambling, non-halaal foodstuffs or interest-bearing instruments. The Shari'ah Supervisory Board assists in ethical issues and ensures that investments meet the stringent considerations of the mandate.
The Fund is exposed to the movements and sensitivities of the equity market. The Fund also assumes mandate risk as its mandate precludes investments in non-Shari'ah compliant shares including financial shares and interest-bearing instruments.