old mutual sa quoted property fund
March 2011
OLD MUTUAL SA QUOTED PROPERTY FUND FUND INFORMATION 1 2 RISK RATING
FUND PERFORMANCE as at 31/03/2011 3
4
5
% PERFORMANCE (p.a.)
FUND OBJECTIVE The fund aims to remain fully invested at all times to generate sustainable pre-tax income whilst growing the original capital invested. WHO IS THIS FUND FOR? This fund is suitable for investors seeking exposure to the property
1-Yr
3-Yr
5-Yr
7-Yr
10-Yr
Since Inception
Fund Benchmark
13.1 15.4
14.6 15.8
11.3 13.0
22.3 25.1
23.7
22.5 25.9
Tax-exempt Investor
13.1
14.6
11.3
22.3
-
22.5
Corporate Investor
10.8
12.2
9.2
19.8
-
20.1
Private Investor
10.7
12.0
9.1
19.7
-
20.0
Retirement Fund
12.5
14.2
10.9
21.5
-
21.7
market without the potential difficulties and capital outlay of direct property investments. The investor can accept the volatility of investing in the property sector.
RECOMMENDED MINIMUM INVESTMENT TERM
Old Mutual SA Quoted Property Fund (5-Year Annualised Rolling)
INVESTMENT MANDATE It invests in a selection of listed South African commercial and industrial property shares. Income is derived from property shares that offer a secure and an escalating income stream. Capital
growth comes from quality shares that show potential for an
upward share price movement.
BENCHMARK: FTSE/JSE Listed Property Index ASISA CATEGORY:
RISK STATISTICS (5 YEARS ANNUALISED)
FUND
benchmark
Annual Standard Deviation
19.2%
19.6%
Risk/Return Profile (5 Years Annualised)
Domestic – Real Estate – General Portfolios 15%
FUND MANAGER(S): 14%
LAUNCH DATE: 01/10/2003 SIZE OF FUND: R3.4bn
Annual Growth
Evan Robins (OMIGSA - Equity Research)
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS MINIMUM INVESTMENTS: Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
Benchmark
12% Fund
11%
DISTRIBUTIONS (Quarterly)*: Date Dividend Interest Total Yield 31/03/2011 0.00c 12.82c 12.82c 4.79% 31/12/2010 0.75c 3.18c 3.93c 4.38% 30/09/2010 0.66c 12.95c 13.61c 4.45% 30/06/2010 0.94c 2.58c 3.52c 5.15%
13%
10% 18%
19%
20%
Annual Volatility
FUND COMPOSITION
Real Estate Liquid Assets
94.8% 5.2%
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: Annual service fee: 1.43% 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): 1.43% (Class A) TER is a historic measure and includes the annual service fee.
CURRENT PRINCIPAL HOLDINGS HOLDING
SECTOR
Growthpoint Properties Ltd Redefine Properties Limited Capital Property Fund Ltd Resilient Property Income Fund Acucap Properties Ltd Fountainhead Property Trust Hyprop Investments Ltd SA Corporate Real Estate Fund Emira Property Fund Premium Properties Ltd
Real Real Real Real Real Real Real Real Real Real
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]
Estate Estate Estate Estate Estate Estate Estate Estate Estate Estate
% OF FUND 23.3 18.0 10.6 7.6 7.2 7.1 7.1 6.6 3.0 2.0
OLD MUTUAL SA QUOTED PROPERTY FUND FUND MANAGER INFORMATION EVAN ROBINS QUALIFICATIONS: CFA Charterholder MBA SAIFM certificate MA (Research Psychology) BBusSc (Hons)
FUND COMMENTARY as at 31/03/2011 Listed property produced a -2.2% total return in the first quarter of 2011, with the 3.4% gain in March offsetting some of January’s losses. The decline was due to the increase in bond yields with the All Bond Index (ALBI) falling 1.6%. The FTSE/JSE All Share Index (ALSI) gained 1.1%, and general retailers were down 2.8%. More than half of the property companies released results in quarter one. On the whole, these were below market expectations, with significant increases in office
CURRENT RESPONSIBILITY:
and industrial vacancies reported, which is in line with our more bearish short-term
Evan joined Old Mutual Investment Group South Africa (OMIGSA)
outlook. Bucking the trend, heavyweight Growthpoint’s operational results and outlook
on 1 December 2009. As a member of the Equity Research team,
were welcome. The market modestly revised sector distribution growth expectations
he is responsible for the portfolio management of all the property
lower after the results.
funds in research as well as some analyst functions.
PREVIOUS EXPERIENCE: Prior to joining OMIGSA, Evan was a rated broker analyst in
The coming quarter will be active in terms of new listings, capital raisings and opportunities. The cash level of the fund is higher than target because of commitment provided in respect of these events. The cash holding will decline to target over time.
the property sector at Nedsec for two and a half years. He also headed up the Fixed Income asset class for six years for BoE Private Clients.
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 SA QUOTED PROPERTY FUND FUND INFORMATION 1 2 RISK RATING
FUND PERFORMANCE as at 31/03/2011 3
4
5
% PERFORMANCE (p.a.)
FUND OBJECTIVE The fund aims to remain fully invested at all times to generate sustainable pre-tax income whilst growing the original capital invested. WHO IS THIS FUND FOR? This fund is suitable for investors seeking exposure to the property
1-Yr
3-Yr
5-Yr
7-Yr
10-Yr
Since Inception
Fund Benchmark
13.1 15.4
14.6 15.8
11.3 13.0
22.3 25.1
23.7
22.5 25.9
Tax-exempt Investor
13.1
14.6
11.3
22.3
-
22.5
Corporate Investor
10.8
12.2
9.2
19.8
-
20.1
Private Investor
10.7
12.0
9.1
19.7
-
20.0
Retirement Fund
12.5
14.2
10.9
21.5
-
21.7
market without the potential difficulties and capital outlay of direct property investments. The investor can accept the volatility of investing in the property sector.
RECOMMENDED MINIMUM INVESTMENT TERM
Old Mutual SA Quoted Property Fund (5-Year Annualised Rolling)
INVESTMENT MANDATE It invests in a selection of listed South African commercial and industrial property shares. Income is derived from property shares that offer a secure and an escalating income stream. Capital
growth comes from quality shares that show potential for an
upward share price movement.
BENCHMARK: FTSE/JSE Listed Property Index ASISA CATEGORY:
RISK STATISTICS (5 YEARS ANNUALISED)
FUND
benchmark
Annual Standard Deviation
19.2%
19.6%
Risk/Return Profile (5 Years Annualised)
Domestic – Real Estate – General Portfolios 15%
FUND MANAGER(S): 14%
LAUNCH DATE: 01/10/2003 SIZE OF FUND: R3.4bn
Annual Growth
Evan Robins (OMIGSA - Equity Research)
* Class A fund distributions
OTHER INVESTMENT CONSIDERATIONS MINIMUM INVESTMENTS: Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500
Benchmark
12% Fund
11%
DISTRIBUTIONS (Quarterly)*: Date Dividend Interest Total Yield 31/03/2011 0.00c 12.82c 12.82c 4.79% 31/12/2010 0.75c 3.18c 3.93c 4.38% 30/09/2010 0.66c 12.95c 13.61c 4.45% 30/06/2010 0.94c 2.58c 3.52c 5.15%
13%
10% 18%
19%
20%
Annual Volatility
FUND COMPOSITION
Real Estate Liquid Assets
94.8% 5.2%
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: Annual service fee: 1.43% 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): 1.43% (Class A) TER is a historic measure and includes the annual service fee.
CURRENT PRINCIPAL HOLDINGS HOLDING
SECTOR
Growthpoint Properties Ltd Redefine Properties Limited Capital Property Fund Ltd Resilient Property Income Fund Acucap Properties Ltd Fountainhead Property Trust Hyprop Investments Ltd SA Corporate Real Estate Fund Emira Property Fund Premium Properties Ltd
Real Real Real Real Real Real Real Real Real Real
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]
Estate Estate Estate Estate Estate Estate Estate Estate Estate Estate
% OF FUND 23.3 18.0 10.6 7.6 7.2 7.1 7.1 6.6 3.0 2.0
OLD MUTUAL SA QUOTED PROPERTY FUND FUND MANAGER INFORMATION EVAN ROBINS QUALIFICATIONS: CFA Charterholder MBA SAIFM certificate MA (Research Psychology) BBusSc (Hons)
FUND COMMENTARY as at 31/03/2011 Listed property produced a -2.2% total return in the first quarter of 2011, with the 3.4% gain in March offsetting some of January’s losses. The decline was due to the increase in bond yields with the All Bond Index (ALBI) falling 1.6%. The FTSE/JSE All Share Index (ALSI) gained 1.1%, and general retailers were down 2.8%. More than half of the property companies released results in quarter one. On the whole, these were below market expectations, with significant increases in office
CURRENT RESPONSIBILITY:
and industrial vacancies reported, which is in line with our more bearish short-term
Evan joined Old Mutual Investment Group South Africa (OMIGSA)
outlook. Bucking the trend, heavyweight Growthpoint’s operational results and outlook
on 1 December 2009. As a member of the Equity Research team,
were welcome. The market modestly revised sector distribution growth expectations
he is responsible for the portfolio management of all the property
lower after the results.
funds in research as well as some analyst functions.
PREVIOUS EXPERIENCE: Prior to joining OMIGSA, Evan was a rated broker analyst in
The coming quarter will be active in terms of new listings, capital raisings and opportunities. The cash level of the fund is higher than target because of commitment provided in respect of these events. The cash holding will decline to target over time.
the property sector at Nedsec for two and a half years. He also headed up the Fixed Income asset class for six years for BoE Private Clients.
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]
