OLD MUTUAL INDUSTRIAL FUND
March 2011
OLD MUTUAL INDUSTRIAL FUND FUND INFORMATION RISK RATING 1 2
FUND PERFORMANCE as at 31/03/2011 3
4
5
% PERFORMANCE (p.a.)
FUND OBJECTIVE The fund aims to offer superior returns over the medium to longer term by investing in a focused portfolio of listed industrial companies. WHO IS THIS FUND FOR? This fund suits investors seeking capital growth over the longer term from a focused portfolio of listed industrial companies. The investor can tolerate equity and sector volatility.
3-Yr
5-Yr
7-Yr
10-Yr
Since Inception
20.5 20.9 17.4 20.5 20.5 20.5 20.5
12.4 12.7 10.6 12.4 12.4 12.4 12.4
11.7 12.1 11.7 11.6 11.6 11.6
21.1 21.5 21.1 21.0 21.0 21.0
22.7 21.7 22.7 22.6 22.6 22.7
18.4 9.4 16.3 18.4 18.1 18.1 18.1
* Inception: 31 January 2007
Old Mutual Industrial Fund Class A (5-Year Annualised Rolling)
RECOMMENDED MINIMUM INVESTMENT TERM
Fund (Class A) Fund (Class R)* Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
1-Yr
INVESTMENT MANDATE
The portfolio is fully invested in shares.
BENCHMARK: ASISA Category Average
ASISA CATEGORY:
Domestic – Equity – Industrial FUND MANAGER(S):
RISK STATISTICS (5 YEARS)
FUND
benchmark
Annual Standard Deviation
17.1%
15.8%
Cavan Osborne (OMIGSA – Equity Research)
Risk/Return Profile Class A (5 Years Annualised)
LAUNCH DATE: 30/06/1998
DISTRIBUTIONS (Half-yearly)*: Date
Dividend Interest Total
31/12/2010 6.26c
0.99c
7.25c
30/06/2010 5.61c
0.71c
6.32c
SIZE OF FUND: R883m
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS
FUND COMPOSITION
MINIMUM INVESTMENTS:
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
Resources Industrials Financials Preference Shares Liquid Assets International Equities
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
charge.
ONGOING:
CURRENT PRINCIPAL HOLDINGS
Annual service fee: 1.43% p.a. (Class A)
HOLDING
SECTOR
The fee is accrued daily and paid to the management company on a monthly
MTN Group Limited British American Tobacco Naspers Ltd Datatec Ltd Steinhoff International Holdings Imperial Holdings Ltd Remgro Limited Richemont Aveng Ltd Datacentrix Holdings Ltd
Telecommunications Personal Goods Media Technology Household Goods Industrial Services Financials Household Goods Construction & Materials Technology
basis. Other charges incurred by the fund, and deducted from its portfolio, are included in the TER.
Total expense ratio (TER): 1.44% (Class A)
1.15% (Class R#)
TER is a historic measure and includes the annual service fee. #
5.7% 75.4% 4.8% 1.2% 4.0% 8.9%
Class R is closed to new business.
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 11.7 8.9 8.3 6.1 5.8 4.9 4.8 3.6 3.4 3.4
OLD MUTUAL INDUSTRIAL FUND FUND MANAGER INFORMATION CAVAN OSBORNE QUALIFICATIONS: BCom
FUND COMMENTARY as at 31/03/2011 The FTSE/JSE Industrial Index ended the month up 2.1%, after a weak start as investors spent time weighing up what impact the Japanese earthquake would have on the global economic situation. The index, however, ended the quarter flat, compared with the FTSE/JSE All Share Index (ALSI), which was up 1.1%. The rand continued to strengthen during March, gaining 4% against the pound and 3% against the US dollar. In both instances, though, the rand is weaker than it was at the end of 2010.
CURRENT RESPONSIBILITY:
MTN (up 11%) and Vodacom (up 6%) were the top performers of the larger companies.
Cavan joined Old Mutual Investment Group South Africa (OMIGSA)
MTN rallied after releasing results which indicated that capital expenditure would
in April 2007 as an analyst. As a member of the Equity Research
be reduced, allowing the company to return more cash by means of dividends. Many
team, he is responsible for the coverage of industrial stocks.
of the retailers also clawed back their losses from earlier in the year, benefiting, it
He also manages the Old Mutual Industrial Fund.
seems, from the expectation that the start of interest rate hiking in this cycle is being pushed out. The Foschini group gained 8%, Mr Price 2%, Truworths 10% and Clicks 11%.
PREVIOUS EXPERIENCE:
The clothing retailers were probably also helped by the stronger rand, and a small
Prior to joining OMIGSA, Cavan was an industrial analyst at Credit
easing in cotton prices, which are still up nearly 40% since December 2010, and 160%
Suisse Standard Securities (formerly Andisa, SCMB Securities and
since the end of 2009.
Standard Equities) for 10 years. During this time he was rated in Financial Mail Analysts’ survey in six categories: diversified industrials; support services; transport, building and construction; hotels, gaming and leisure and small and mid-cap companies.
Naspers had a disappointing month falling 11% after Hong Kong-listed Tencent, in which Naspers has a 36% stake, tempered its outlook guidance. Although Murray & Roberts’ share price recovered 6% in March after it announced that the CEO and financial director will be replaced, it is still 34% down since December 2010. The other building and construction shares remained under pressure – Aveng down 2%, Wilson Bayley down 7% and PPC down 14%. Very little new work is being announced, and the Competition Commission continues to probe the industry.
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 INDUSTRIAL FUND FUND INFORMATION RISK RATING 1 2
FUND PERFORMANCE as at 31/03/2011 3
4
5
% PERFORMANCE (p.a.)
FUND OBJECTIVE The fund aims to offer superior returns over the medium to longer term by investing in a focused portfolio of listed industrial companies. WHO IS THIS FUND FOR? This fund suits investors seeking capital growth over the longer term from a focused portfolio of listed industrial companies. The investor can tolerate equity and sector volatility.
3-Yr
5-Yr
7-Yr
10-Yr
Since Inception
20.5 20.9 17.4 20.5 20.5 20.5 20.5
12.4 12.7 10.6 12.4 12.4 12.4 12.4
11.7 12.1 11.7 11.6 11.6 11.6
21.1 21.5 21.1 21.0 21.0 21.0
22.7 21.7 22.7 22.6 22.6 22.7
18.4 9.4 16.3 18.4 18.1 18.1 18.1
* Inception: 31 January 2007
Old Mutual Industrial Fund Class A (5-Year Annualised Rolling)
RECOMMENDED MINIMUM INVESTMENT TERM
Fund (Class A) Fund (Class R)* Benchmark Tax-exempt Investor Corporate Investor Private Investor Retirement Fund
1-Yr
INVESTMENT MANDATE
The portfolio is fully invested in shares.
BENCHMARK: ASISA Category Average
ASISA CATEGORY:
Domestic – Equity – Industrial FUND MANAGER(S):
RISK STATISTICS (5 YEARS)
FUND
benchmark
Annual Standard Deviation
17.1%
15.8%
Cavan Osborne (OMIGSA – Equity Research)
Risk/Return Profile Class A (5 Years Annualised)
LAUNCH DATE: 30/06/1998
DISTRIBUTIONS (Half-yearly)*: Date
Dividend Interest Total
31/12/2010 6.26c
0.99c
7.25c
30/06/2010 5.61c
0.71c
6.32c
SIZE OF FUND: R883m
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS
FUND COMPOSITION
MINIMUM INVESTMENTS:
Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
Resources Industrials Financials Preference Shares Liquid Assets International Equities
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
charge.
ONGOING:
CURRENT PRINCIPAL HOLDINGS
Annual service fee: 1.43% p.a. (Class A)
HOLDING
SECTOR
The fee is accrued daily and paid to the management company on a monthly
MTN Group Limited British American Tobacco Naspers Ltd Datatec Ltd Steinhoff International Holdings Imperial Holdings Ltd Remgro Limited Richemont Aveng Ltd Datacentrix Holdings Ltd
Telecommunications Personal Goods Media Technology Household Goods Industrial Services Financials Household Goods Construction & Materials Technology
basis. Other charges incurred by the fund, and deducted from its portfolio, are included in the TER.
Total expense ratio (TER): 1.44% (Class A)
1.15% (Class R#)
TER is a historic measure and includes the annual service fee. #
5.7% 75.4% 4.8% 1.2% 4.0% 8.9%
Class R is closed to new business.
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 11.7 8.9 8.3 6.1 5.8 4.9 4.8 3.6 3.4 3.4
OLD MUTUAL INDUSTRIAL FUND FUND MANAGER INFORMATION CAVAN OSBORNE QUALIFICATIONS: BCom
FUND COMMENTARY as at 31/03/2011 The FTSE/JSE Industrial Index ended the month up 2.1%, after a weak start as investors spent time weighing up what impact the Japanese earthquake would have on the global economic situation. The index, however, ended the quarter flat, compared with the FTSE/JSE All Share Index (ALSI), which was up 1.1%. The rand continued to strengthen during March, gaining 4% against the pound and 3% against the US dollar. In both instances, though, the rand is weaker than it was at the end of 2010.
CURRENT RESPONSIBILITY:
MTN (up 11%) and Vodacom (up 6%) were the top performers of the larger companies.
Cavan joined Old Mutual Investment Group South Africa (OMIGSA)
MTN rallied after releasing results which indicated that capital expenditure would
in April 2007 as an analyst. As a member of the Equity Research
be reduced, allowing the company to return more cash by means of dividends. Many
team, he is responsible for the coverage of industrial stocks.
of the retailers also clawed back their losses from earlier in the year, benefiting, it
He also manages the Old Mutual Industrial Fund.
seems, from the expectation that the start of interest rate hiking in this cycle is being pushed out. The Foschini group gained 8%, Mr Price 2%, Truworths 10% and Clicks 11%.
PREVIOUS EXPERIENCE:
The clothing retailers were probably also helped by the stronger rand, and a small
Prior to joining OMIGSA, Cavan was an industrial analyst at Credit
easing in cotton prices, which are still up nearly 40% since December 2010, and 160%
Suisse Standard Securities (formerly Andisa, SCMB Securities and
since the end of 2009.
Standard Equities) for 10 years. During this time he was rated in Financial Mail Analysts’ survey in six categories: diversified industrials; support services; transport, building and construction; hotels, gaming and leisure and small and mid-cap companies.
Naspers had a disappointing month falling 11% after Hong Kong-listed Tencent, in which Naspers has a 36% stake, tempered its outlook guidance. Although Murray & Roberts’ share price recovered 6% in March after it announced that the CEO and financial director will be replaced, it is still 34% down since December 2010. The other building and construction shares remained under pressure – Aveng down 2%, Wilson Bayley down 7% and PPC down 14%. Very little new work is being announced, and the Competition Commission continues to probe the industry.
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]
