OLD MUTUAL GLObAL EQUITY FUND
March 2011
OLD MUTUAL Global EQUITY FUND FUND INFORMATION 1 2 RISK RATING
FUND PERFORMANCE as at 31/03/2011 3
4
% PERFORMANCE (p.a.)
5
The risk rating does not take the impact of exchange rate fluctuations into account. FUND OBJECTIVE The fund aims to offer superior returns over the medium to longer term by investing in shares from around the world. WHO IS THIS FUND FOR?
Fund (A Class) Fund (R Class)* Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
3-Yr
5-Yr
7-Yr
10-Yr
8.2 9.0 5.0 8.2 8.2 8.2 8.2
-7.7 -6.8 -5.6 -7.7 -7.7 -7.7 -7.7
1.5 2.4 4.6 1.5 1.5 1.5 1.5
5.5 6.5 7.0 5.5 5.6 5.6 5.6
3.0 3.8 3.0 3.0 3.1 3.1 3.1
Since Inception
2.0 9.6 2.0 2.0 2.0 2.0 2.0
* Inception: 31 May 1995
This fund is suited to investors wanting to diversify their portfolios by adding an international equity component or investors who
Old Mutual Global Equity Fund Class A (5-Year Annualised Rolling) 20%
Fund Benchmark
are taking a specific view on the performance of global equity relative to other asset classes.
15%
RECOMMENDED MINIMUM INVESTMENT TERM
1-Yr
10%
5%
INVESTMENT MANDATE The fund has a broad-based exposure to quality shares from across
0%
the globe. The fund is managed by Old Mutual Asset Management (UK), who aims to maximise returns by managing country and sector exposure. This fund remains as fully invested in foreign equities as possible, given regulatory constraints. BENCHMARK: MSCI World Index
-5% Apr-05
Feb-06
Dec-06
Oct-07
Aug-08
Apr-10
Feb-11
RISK STATISTICS (5 YEARS Annualised)
FUND
benchmark
Annual Standard Deviation
15.5%
14.5%
ASISA CATEGORY:
Risk/Return Profile (5 Years Annualised)
Foreign – Equity – General
6% 5%
Ian Heslop (OMAM UK) LAUNCH DATE: 17/05/1995 (Class A opened on 1 April 2000)
Annual Growth
FUND MANAGER(S):
Benchmark
4% 3% 2% Fund
SIZE OF FUND: R1.7bn
1%
DISTRIBUTIONS (Half-yearly)*:
0%
13%
Date Dividend Interest Total* 31/12/2010 0.00c 0.00c 0.00c 30/06/2010 1.75c 0.14c 1.89c
FUND COMPOSITION
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS MINIMUM INVESTMENTS:
14%
15%
Equity - UK Equity - Europe Equity - USA & Canada Equity - Japan Equity - Australasia Liquid Assets
INITIAL CHARGES:
There is no initial administration charge for investment transactions
of R500 and above. Initial adviser fee will be between 0% and 3.42%. Investment transactions below the R500 fund minimum incur a 2.28% administration
16%
Annual Volatility
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
11.5% 17.0% 47.0% 8.0% 5.2% 11.3%
CURRENT PRINCIPAL HOLDINGS
charge.
ONGOING: Annual service fee: 2.00% p.a. (Class 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): 2.06% (Class A)
Jun-09
1.20% (Class R)
TER is a historic measure and includes the annual service fee.
HOLDING
SECTOR
Exxon Mobil Corporation Chevron Corporation Microsoft Corporation IBM Google Inc Com Novartis AG Apple Computers United Healthcare Group Inc Novo Nordisk Halliburton
Energy Energy Information Technology Information Technology Information Technology Pharmaceuticals Information Technology Healthcare Pharmaceuticals Energy
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 1.8 1.2 1.1 1.0 0.9 0.7 0.7 0.6 0.6 0.6
OLD MUTUAL Global EQUITY FUND FUND MANAGER INFORMATION Ian Heslop QUALIFICATIONS: BA (Chemistry) PhD (Medicinal Chemistry)
FUND COMMENTARY as at 31/03/2011 The FTSE Global All Cap Index rebounded from its mid-March low to gain 0.3% for the month, and 4.6% for the first quarter of 2011. Equities fell following Japan’s earthquake and tsunami on 11 March, with the FTSE All Cap Japan Index declining by over 14% for the year to date, before rebounding to end the quarter 2.2% lower. In a reversal of the pattern earlier in the year, emerging markets outperformed developed markets in March. The FTSE All Cap Emerging Index rose 3.5% during the
CURRENT RESPONSIBILITY:
month, to end the quarter 0.2% higher. By contrast, the FTSE All Cap Developed
Ian joined the Quantitative Strategies team in June 2004 from
Index fell 0.7% in March, to end the quarter up 3.9%. For the same period, developed
OMAM’s Global Equities team, where he was a fund manager
markets were led by the US (FTSE All Cap US +6.3%), followed by Europe (FTSE All
specialising in the global technology and biotechnology sectors.
Cap Europe +2.7%) and the UK (FTSE All Cap UK +1.1%), while Japan was the laggard.
PREVIOUS EXPERIENCE: He joined the Old Mutual Group from Barclays Global Investors, where he was a UK quantitative fund manager for three years.
Strong corporate earnings and US labour reports have boosted optimism, and the US Business Roundtable’s economic outlook index has risen to 113, the highest point since records began in 2002. However, this contrasts with pessimism among American consumers and a still-sluggish housing market. Global equities may remain volatile on concerns that the economic recovery may be hindered by uprisings in the Middle East and North Africa (pushing up the oil price), worries over Eurozone sovereign risk, and speculation that the Federal Reserve may end QE2 (the second round of quantitative easing – a $600 billion programme of government debt purchases) earlier than planned.
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 Global EQUITY FUND FUND INFORMATION 1 2 RISK RATING
FUND PERFORMANCE as at 31/03/2011 3
4
% PERFORMANCE (p.a.)
5
The risk rating does not take the impact of exchange rate fluctuations into account. FUND OBJECTIVE The fund aims to offer superior returns over the medium to longer term by investing in shares from around the world. WHO IS THIS FUND FOR?
Fund (A Class) Fund (R Class)* Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
3-Yr
5-Yr
7-Yr
10-Yr
8.2 9.0 5.0 8.2 8.2 8.2 8.2
-7.7 -6.8 -5.6 -7.7 -7.7 -7.7 -7.7
1.5 2.4 4.6 1.5 1.5 1.5 1.5
5.5 6.5 7.0 5.5 5.6 5.6 5.6
3.0 3.8 3.0 3.0 3.1 3.1 3.1
Since Inception
2.0 9.6 2.0 2.0 2.0 2.0 2.0
* Inception: 31 May 1995
This fund is suited to investors wanting to diversify their portfolios by adding an international equity component or investors who
Old Mutual Global Equity Fund Class A (5-Year Annualised Rolling) 20%
Fund Benchmark
are taking a specific view on the performance of global equity relative to other asset classes.
15%
RECOMMENDED MINIMUM INVESTMENT TERM
1-Yr
10%
5%
INVESTMENT MANDATE The fund has a broad-based exposure to quality shares from across
0%
the globe. The fund is managed by Old Mutual Asset Management (UK), who aims to maximise returns by managing country and sector exposure. This fund remains as fully invested in foreign equities as possible, given regulatory constraints. BENCHMARK: MSCI World Index
-5% Apr-05
Feb-06
Dec-06
Oct-07
Aug-08
Apr-10
Feb-11
RISK STATISTICS (5 YEARS Annualised)
FUND
benchmark
Annual Standard Deviation
15.5%
14.5%
ASISA CATEGORY:
Risk/Return Profile (5 Years Annualised)
Foreign – Equity – General
6% 5%
Ian Heslop (OMAM UK) LAUNCH DATE: 17/05/1995 (Class A opened on 1 April 2000)
Annual Growth
FUND MANAGER(S):
Benchmark
4% 3% 2% Fund
SIZE OF FUND: R1.7bn
1%
DISTRIBUTIONS (Half-yearly)*:
0%
13%
Date Dividend Interest Total* 31/12/2010 0.00c 0.00c 0.00c 30/06/2010 1.75c 0.14c 1.89c
FUND COMPOSITION
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS MINIMUM INVESTMENTS:
14%
15%
Equity - UK Equity - Europe Equity - USA & Canada Equity - Japan Equity - Australasia Liquid Assets
INITIAL CHARGES:
There is no initial administration charge for investment transactions
of R500 and above. Initial adviser fee will be between 0% and 3.42%. Investment transactions below the R500 fund minimum incur a 2.28% administration
16%
Annual Volatility
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
11.5% 17.0% 47.0% 8.0% 5.2% 11.3%
CURRENT PRINCIPAL HOLDINGS
charge.
ONGOING: Annual service fee: 2.00% p.a. (Class 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): 2.06% (Class A)
Jun-09
1.20% (Class R)
TER is a historic measure and includes the annual service fee.
HOLDING
SECTOR
Exxon Mobil Corporation Chevron Corporation Microsoft Corporation IBM Google Inc Com Novartis AG Apple Computers United Healthcare Group Inc Novo Nordisk Halliburton
Energy Energy Information Technology Information Technology Information Technology Pharmaceuticals Information Technology Healthcare Pharmaceuticals Energy
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 1.8 1.2 1.1 1.0 0.9 0.7 0.7 0.6 0.6 0.6
OLD MUTUAL Global EQUITY FUND FUND MANAGER INFORMATION Ian Heslop QUALIFICATIONS: BA (Chemistry) PhD (Medicinal Chemistry)
FUND COMMENTARY as at 31/03/2011 The FTSE Global All Cap Index rebounded from its mid-March low to gain 0.3% for the month, and 4.6% for the first quarter of 2011. Equities fell following Japan’s earthquake and tsunami on 11 March, with the FTSE All Cap Japan Index declining by over 14% for the year to date, before rebounding to end the quarter 2.2% lower. In a reversal of the pattern earlier in the year, emerging markets outperformed developed markets in March. The FTSE All Cap Emerging Index rose 3.5% during the
CURRENT RESPONSIBILITY:
month, to end the quarter 0.2% higher. By contrast, the FTSE All Cap Developed
Ian joined the Quantitative Strategies team in June 2004 from
Index fell 0.7% in March, to end the quarter up 3.9%. For the same period, developed
OMAM’s Global Equities team, where he was a fund manager
markets were led by the US (FTSE All Cap US +6.3%), followed by Europe (FTSE All
specialising in the global technology and biotechnology sectors.
Cap Europe +2.7%) and the UK (FTSE All Cap UK +1.1%), while Japan was the laggard.
PREVIOUS EXPERIENCE: He joined the Old Mutual Group from Barclays Global Investors, where he was a UK quantitative fund manager for three years.
Strong corporate earnings and US labour reports have boosted optimism, and the US Business Roundtable’s economic outlook index has risen to 113, the highest point since records began in 2002. However, this contrasts with pessimism among American consumers and a still-sluggish housing market. Global equities may remain volatile on concerns that the economic recovery may be hindered by uprisings in the Middle East and North Africa (pushing up the oil price), worries over Eurozone sovereign risk, and speculation that the Federal Reserve may end QE2 (the second round of quantitative easing – a $600 billion programme of government debt purchases) earlier than planned.
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]
