NAV on 2019/11/20
|NAV on 2019/11/19
|52 week high on 2019/06/13
|52 week low on 2019/01/04
|Total Expense Ratio on 2019/03/31
|Total Expense Ratio (performance fee) on 2019/03/31
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
- 22 years of investment experience
- 19 years of investment experience
OM Albaraka Equity comment - Sep 19
The ongoing US-China trade tensions, a drone strike on Saudi oil facilities and more Brexit drama encouraged intra-month volatility. Local equities hardly managed to hold on to gains, recording a return of 0.19% for the month of September, and local markets had no reaction to the South African Reserve Bank’s decision to keep rates unchanged. Globally, after central banks eased policy in response to slowing economic growth, both the US Federal Reserve and European Central Bank cut rates.
The FTSE/JSE All Share Index (ALSI) was down by 4.57% over the quarter. Large, mid- and small caps returned -5.22%, -1.81% and -3.22% respectively for the quarter ending September 2019.
The local currency weakened against the greenback by 7.35%, by 4.02% against the sterling, and 2.97% against the euro for the quarter ending September 2019.
There were no sectors that contributed positively in absolute terms within the ALSI for the quarter. The worst performing sectors, down by 7.77% and 6.76%, were telecommunications and financials respectively.
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 greater return and less volatility than the market over a long-term horizon. As a consequence, the fund is more likely to potentially underperform in a strongly rising market, which was the case in September. The fund has high exposure to international equities, allowing the fund to achieve greater diversification and consequently a reduction in volatility. The strengthening of the rand, however, detracted from 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.