NAV on 2019/01/18
|NAV on 2019/01/17
|52 week high on 2018/09/05
|52 week low on 2019/01/04
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
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
Saliegh has 21 years of financial market experience encompassing the entire investment value chain, including dealing, equity analysis, portfolio management and leadership.
Saliegh is responsible for driving performance of the Shari’ah funds and specialist equity (managed volatility and managed alpha) funds. He has been the lead fund manager and champion of Shari’ah products (equity and multi-asset) since 2007. In addition, Saliegh is also the lead fund manager on Old Mutual High Yield Opportunity Fund (managed volatility) and co-fund manager on managed alpha funds. Saliegh is the liaison for the Shari’ah board and Shari’ah product partners. Saliegh is a member of the boutique’s Exco and Sales committee.
Grant has 22 years of financial market experience encompassing managing currency, derivative, hedge fund and multi-asset class portfolios. Grant began his career in the currency markets, trading currency derivatives on a proprietary basis for one of the large South African banks. Grant is a qualified stock broker and was a founder member of the team that set up one of the first hedge funds in South Africa in 1997. He joined Futuregrowth Asset Management in 2004, heading up their Alternative Investments business. Futuregrowth was acquired by Old Mutual Investment Group in 2008.
Grant is the Joint Boutique Head of Customised Solutions. This boutique has assets under management in excess of R100 billion. These assets comprise local and global investments across the investment spectrum. Grant is involved in driving the boutique investment process, developing and implementing the boutique strategy and managing various portfolios across the hedge fund, general equity, specialist equity and multi-asset class range.
Warren was appointed as a quantitative analyst in 1998 and participated in quantitative research and building quantitative models. He worked closely with Old Mutual Investment Group’s chief asset allocation strategist. Warren then joined the Quantitative and Risk Unit when it was formed. He was responsible for investment risk management and his duties included building quantitative models at a security level, risk management and quantitative research of all Old Mutual Investment Group’s clients/products.
Warren is responsible for constructing and managing portfolios. In addition to these responsibilities, he is accountable for quantitative research, which is paramount to the success of the boutique’s strategies.
OM Albaraka Equity comment - Sept 18
President Cyril Ramaphosa did his best to address the nation with a brief outline of the economic stimulus package adopted by Cabinet and we immediately saw a strengthening in the rand. Trump continued his intense trade war on China. The Turkish lira collapsed and we saw the revived spectre of contagion for emerging markets at play. Inflation numbers were not as high as expected and the South African Reserve Bank decided to hold off a rate hike for now.
The FTSE/JSE All Share Index (ALSI) was down by 2.17% over the quarter ending September 2018. Large, mid- and small caps returned -2.72%, -1.74% and -2.22% respectively for the quarter.
The local currency weakened against the greenback by 3.06%, by 1.73% against the sterling and 2.36% against the euro for the quarter ending September 2018. The sector contributors for the quarter were technology and basic materials, returning 10.43% and 5.22% respectively. The worst performing sectors for the quarter were healthcare and telecommunications, down by 20.42% and 11.86% respectively.
This fund is suited to investors with a long-term investment horizon seeking to maximise growth in a Shari’ah compliant fund. They are 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 around 30%, providing investors with significant diversification and investment opportunity benefits. In addition, its valuation, sentiment and risk indicators are all attractive compared to its benchmark.
Our strategy is to achieve greater returns and less volatility compared to the market. Consequently, the fund has high exposure to internationals, allowing the fund to achieve greater diversification and, consequently, a reduction in volatility. 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.