Old MuTuAl BOnd Fund
March 2011
OLD MUTUAL BOND FUND FUND INFORMATION RISK RATING 1 2
FUND PERFORMANCE as at 31/03/2011 3
4
% PERFORMANCE (p.a.)
5
FUND OBJECTIVE The fund aims to offer a combination of capital growth and high income yields. Capital growth is primarily achieved by actively taking advantage of interest rate cycles.
Fund Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
WHO IS THIS FUND FOR? This fund is suited to astute investors who have a particluar view
RECOMMENDED MINIMUM INVESTMENT TERM
5-Yr
7-Yr
10-Yr
Since Inception
8.5 8.3 8.5 6.1 6.0 8.5
10.2 10.0 10.2 7.8 7.6 10.2
7.1 7.2 7.1 4.8 4.6 7.0
9.1 8.9 9.1 6.7 6.6 8.6
10.7 10.6 10.7 7.9 7.8 9.5
13.8 13.7 13.8 10.5 10.6 12.0
for moderate long-term growth potential.
3-Yr
Old Mutual Bond Fund (3-Year Annualised Rolling)
on relative asset class performance. The investor understands the impact of the interest rate cycle and accepts this risk in exchange
1-Yr
INVESTMENT MANDATE The fund invests across the full spectrum of the yield curve. It invests in public and private sector bonds and deposits, with at least
50% invested in bonds with an effective government guarantee. BENCHMARK: All Bond Index
RISK STATISTICS (3 Years Annualised)
FUND
ALL BOND
Annual Standard Deviation
8.3%
8.4%
ASISA CATEGORY: Risk/Return Profile (3 Years Annualised)
Domestic – Fixed Interest - Bond 11%
FUND MANAGER(S): Annual Growth
Daphne Botha (OMIGSA – Futuregrowth Asset Management) LAUNCH DATE: 31/12/1994 SIZE OF FUND: R646m
8%
Interest Yield
31/12/2010
13.73c 7.60c
30/06/2010
13.74c 7.80c
* Class R fund distributions
OTHER INVESTMENT CONSIDERATIONS
Benchmark
9%
DISTRIBUTIONS (Half-yearly)*: Date
Fund
10%
6%
7%
8%
FUND COMPOSITION
MINIMUM INVESTMENTS:
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
INITIAL CHARGES: There is no initial administration charge for investment transactions of R500 and above. Initial adviser fee will be between 0% and 0.68%. Investment transactions below the R500 fund minimum incur a 0.46% administration charge.
ONGOING: Annual service fee: 0.86% p.a. The fee is accrued daily and paid to the management company on a monthly basis. Other charges incurred by the fund, and deducted from its portfolio, are included in the TER.
Total expense ratio (TER): 0.87% TER is a historic measure and includes the annual service fee.
9%
Annual Volatility
1 - 3 years 3 - 7 years 7- 12 years Cash
10.5% 13.9% 71.2% 4.4%
CURRENT PRINCIPAL HOLDINGS HOLDING
SECTOR
Republic of SA R208 6.75% 2021 R207 7.25% 12/01/2020 RSA 10.5% 2026 Republic of SA R203 8.25% 2017 Republic of SA R209 6.25% 2036 R204 8.00% 21/12/2018 DV22 9.45% 07/02/2020 Republic of SA R213 7.00% 28/02/2030 Transnet Limited 8.9% 14/11/2027 Eskom Holdings Limited 10.00% 250
7 - 12 Years Bonds 7 - 12 Years Bonds 7 - 12 Years Bonds 3 - 7 Years Bonds 12+ Years Bonds 7 - 12 Years Bonds 7 - 12 Years Bonds 12+ Years Bonds 12+ Years Bonds 7 - 12 Years Bonds
Funds are also available via Fairbairn Capital and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.omut.co.za Email [email protected]
% OF FUND 13.4 12.3 9.2 6.1 5.7 5.5 4.3 2.9 2.0 1.8
OLD MUTUAL BOND FUND FUND COMMENTARY as at 31/03/2011
FUND MANAGER INFORMATION DAPHNE BOTHA
The fund retained a defensive position over the last three months, with a small underweight modified duration tilt, some inflation-linked bond exposure and a high
QUALIFICATIONS:
cash holding. To us, this is still the most appropriate investment strategy given our
BCom (Hons)
view on the interest rate cycle. However, it is also vital to find a balance between capital preservation and earning a reasonable income. The yield curve is currently positively sloped, in other words
CURRENT RESPONSIBILITY:
long-dated bonds are trading at higher levels than short-dated instruments. This is in
Daphne manages the money market and active bond fund
anticipation of rising inflation and monetary policy tightening, but also in reaction to the
portfolios. In addition, she trades fixed interest instruments and
largest net funding requirement by the public sector since the first half of the 1990s.
is responsible for risk monitoring, fund exposures and oversees asset administration.
it seems that the long end of the market is already pricing in some bad news. Taking into consideration the extent of yield curve steepness, we will be looking for investment
PREVIOUS EXPERIENCE: Daphne joined Futuregrowth in April 2001 from NIB Asset Management.
Although it is still early days in terms of the widely expected rising interest rate cycle,
opportunities in the months ahead. Investment action will focus on gradually building a holding of long-dated bonds into market weakness, and keeping an underweight tilt to short- and medium-dated bonds in anticipation of rising short-term rates.
The above portfolio performance is calculated on a NAV-NAV basis and does not take any initial fees into account. Income is reinvested on the ex-dividend date. Actual investment performance will differ based on the initial fees applicable, the actual investment date and the date of reinvestment of income. Lump sum basis. Performances are in ZAR and as at 31 March 2011. Sources: Morningstar and OMIGSA (estimated inflation figure for month of March 2011). Unit trusts are generally medium- to long-term investments. Past performance is no indication of future growth. It is important that you are prepared for some shorter term fluctuations as your investment moves in line with the markets. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Unit trusts can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available from the company/intermediary. You can easily sell your investment at the ruling price of the day (calculated at 15h00 on a forward pricing basis and 17h00 at month-end for Old Mutual RAFI® 40 Tracker Fund and Old Mutual Top 40 Fund). The Old Mutual Money Market Fund unit price aims to be static but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13h00), but may also include any gain/loss on any particular instrument and this may result in a capital loss in extreme cases. Specialist equity funds may hold a greater risk as exposure limits to a single security may be higher. A feeder fund portfolio is a portfolio that, apart from assets in liquid form, consists solely of units in a single portfolio of a collective investment scheme. A fund of funds unit trust invests only in other collective investment schemes, which may levy their own charges. Certain funds may be capped in order to be managed in accordance with their mandates. Different classes of units apply to these portfolios and are subject to different fees and charges. Old Mutual is a member of the Association for Savings & Investment SA.
Funds are also available via Fairbairn Capital and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.omut.co.za Email [email protected]
OLD MUTUAL BOND FUND FUND INFORMATION RISK RATING 1 2
FUND PERFORMANCE as at 31/03/2011 3
4
% PERFORMANCE (p.a.)
5
FUND OBJECTIVE The fund aims to offer a combination of capital growth and high income yields. Capital growth is primarily achieved by actively taking advantage of interest rate cycles.
Fund Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
WHO IS THIS FUND FOR? This fund is suited to astute investors who have a particluar view
RECOMMENDED MINIMUM INVESTMENT TERM
5-Yr
7-Yr
10-Yr
Since Inception
8.5 8.3 8.5 6.1 6.0 8.5
10.2 10.0 10.2 7.8 7.6 10.2
7.1 7.2 7.1 4.8 4.6 7.0
9.1 8.9 9.1 6.7 6.6 8.6
10.7 10.6 10.7 7.9 7.8 9.5
13.8 13.7 13.8 10.5 10.6 12.0
for moderate long-term growth potential.
3-Yr
Old Mutual Bond Fund (3-Year Annualised Rolling)
on relative asset class performance. The investor understands the impact of the interest rate cycle and accepts this risk in exchange
1-Yr
INVESTMENT MANDATE The fund invests across the full spectrum of the yield curve. It invests in public and private sector bonds and deposits, with at least
50% invested in bonds with an effective government guarantee. BENCHMARK: All Bond Index
RISK STATISTICS (3 Years Annualised)
FUND
ALL BOND
Annual Standard Deviation
8.3%
8.4%
ASISA CATEGORY: Risk/Return Profile (3 Years Annualised)
Domestic – Fixed Interest - Bond 11%
FUND MANAGER(S): Annual Growth
Daphne Botha (OMIGSA – Futuregrowth Asset Management) LAUNCH DATE: 31/12/1994 SIZE OF FUND: R646m
8%
Interest Yield
31/12/2010
13.73c 7.60c
30/06/2010
13.74c 7.80c
* Class R fund distributions
OTHER INVESTMENT CONSIDERATIONS
Benchmark
9%
DISTRIBUTIONS (Half-yearly)*: Date
Fund
10%
6%
7%
8%
FUND COMPOSITION
MINIMUM INVESTMENTS:
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
INITIAL CHARGES: There is no initial administration charge for investment transactions of R500 and above. Initial adviser fee will be between 0% and 0.68%. Investment transactions below the R500 fund minimum incur a 0.46% administration charge.
ONGOING: Annual service fee: 0.86% p.a. The fee is accrued daily and paid to the management company on a monthly basis. Other charges incurred by the fund, and deducted from its portfolio, are included in the TER.
Total expense ratio (TER): 0.87% TER is a historic measure and includes the annual service fee.
9%
Annual Volatility
1 - 3 years 3 - 7 years 7- 12 years Cash
10.5% 13.9% 71.2% 4.4%
CURRENT PRINCIPAL HOLDINGS HOLDING
SECTOR
Republic of SA R208 6.75% 2021 R207 7.25% 12/01/2020 RSA 10.5% 2026 Republic of SA R203 8.25% 2017 Republic of SA R209 6.25% 2036 R204 8.00% 21/12/2018 DV22 9.45% 07/02/2020 Republic of SA R213 7.00% 28/02/2030 Transnet Limited 8.9% 14/11/2027 Eskom Holdings Limited 10.00% 250
7 - 12 Years Bonds 7 - 12 Years Bonds 7 - 12 Years Bonds 3 - 7 Years Bonds 12+ Years Bonds 7 - 12 Years Bonds 7 - 12 Years Bonds 12+ Years Bonds 12+ Years Bonds 7 - 12 Years Bonds
Funds are also available via Fairbairn Capital and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.omut.co.za Email [email protected]
% OF FUND 13.4 12.3 9.2 6.1 5.7 5.5 4.3 2.9 2.0 1.8
OLD MUTUAL BOND FUND FUND COMMENTARY as at 31/03/2011
FUND MANAGER INFORMATION DAPHNE BOTHA
The fund retained a defensive position over the last three months, with a small underweight modified duration tilt, some inflation-linked bond exposure and a high
QUALIFICATIONS:
cash holding. To us, this is still the most appropriate investment strategy given our
BCom (Hons)
view on the interest rate cycle. However, it is also vital to find a balance between capital preservation and earning a reasonable income. The yield curve is currently positively sloped, in other words
CURRENT RESPONSIBILITY:
long-dated bonds are trading at higher levels than short-dated instruments. This is in
Daphne manages the money market and active bond fund
anticipation of rising inflation and monetary policy tightening, but also in reaction to the
portfolios. In addition, she trades fixed interest instruments and
largest net funding requirement by the public sector since the first half of the 1990s.
is responsible for risk monitoring, fund exposures and oversees asset administration.
it seems that the long end of the market is already pricing in some bad news. Taking into consideration the extent of yield curve steepness, we will be looking for investment
PREVIOUS EXPERIENCE: Daphne joined Futuregrowth in April 2001 from NIB Asset Management.
Although it is still early days in terms of the widely expected rising interest rate cycle,
opportunities in the months ahead. Investment action will focus on gradually building a holding of long-dated bonds into market weakness, and keeping an underweight tilt to short- and medium-dated bonds in anticipation of rising short-term rates.
The above portfolio performance is calculated on a NAV-NAV basis and does not take any initial fees into account. Income is reinvested on the ex-dividend date. Actual investment performance will differ based on the initial fees applicable, the actual investment date and the date of reinvestment of income. Lump sum basis. Performances are in ZAR and as at 31 March 2011. Sources: Morningstar and OMIGSA (estimated inflation figure for month of March 2011). Unit trusts are generally medium- to long-term investments. Past performance is no indication of future growth. It is important that you are prepared for some shorter term fluctuations as your investment moves in line with the markets. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Unit trusts can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available from the company/intermediary. You can easily sell your investment at the ruling price of the day (calculated at 15h00 on a forward pricing basis and 17h00 at month-end for Old Mutual RAFI® 40 Tracker Fund and Old Mutual Top 40 Fund). The Old Mutual Money Market Fund unit price aims to be static but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13h00), but may also include any gain/loss on any particular instrument and this may result in a capital loss in extreme cases. Specialist equity funds may hold a greater risk as exposure limits to a single security may be higher. A feeder fund portfolio is a portfolio that, apart from assets in liquid form, consists solely of units in a single portfolio of a collective investment scheme. A fund of funds unit trust invests only in other collective investment schemes, which may levy their own charges. Certain funds may be capped in order to be managed in accordance with their mandates. Different classes of units apply to these portfolios and are subject to different fees and charges. Old Mutual is a member of the Association for Savings & Investment SA.
Funds are also available via Fairbairn Capital and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.omut.co.za Email [email protected]
