Old Mutual Albaraka Balanced Fund Report - October 2020

Transcription

1. INVEST WITH FAITH OLD MUTUAL ALBARAKA BALANCED FUND OCTOBER 2020 FUND INFORMATION FUND PERFORMANCE AS AT 31 /10/2020 % PERFORMANCE (ANNUALISED) RISK PROFILE Low to Moderate Moderate Moderate to High High Fund (Class A) RECOMMENDED MINIMUM INVESTMENT TERM 1 year+ 3 years+ Fund (Class B1) 5 years+ The fund aims to offer investors an ethical investment that provides steady, long-term capital growth, as well as a moderate level of income via a portfolio that diversifies across asset classes and regional exposure. The Shari’ah Supervisory Board oversees adherence to the applicable Shari’ah principles. This fund specifically adheres to the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) as interpreted by the Shari’ah Supervisory Board. WHO IS THIS FUND FOR? This fund is suited to investors wanting moderate to high long-term growth from their Shari’ah compliant investment, with less volatility in the short term than pure equity. It is suitable as a stand-alone retirement investment. NON-PERMISSIBLE INCOME Incidental income deemed to be non-permissible is paid to the charitable trust elected by the Shari’ah Supervisory Board in line with the principles of Shari’ah and the supplemental deed of the fund. Non-permissible income does not form part of the investor’s income. INVESTMENT MANDATE The fund is a Shari’ah compliant asset allocation fund that offers investors access to local and international asset classes including equity, liquid assets and non-equity securities, such as sukuks (Islamic bonds) and equity conduits. It may also invest in the portfolios of other unit trusts, both locally and those registered in countries with acceptable regulatory environments. This fund may invest up to 30% (with an additional 10% for African ex-SA investments) of its portfolio offshore. REGULATION 28 COMPLIANCE The fund complies with retirement fund legislation. It is therefore suitable as a stand-alone fund in retirement products where Regulation 28 compliance is specifically required. COMPOSITE BENCHMARK: 45% Customised SA Shari’ah Equity Index, 10% S&P Developed Markets Large and Mid-Cap Shari’ah Index, 40% STeFI Composite – 0.5% p.a. & 5% Three-month US Dollar LIBOR PERFORMANCE TARGET: To outperform the benchmark over rolling 3-year periods. ASISA CATEGORY: FUND MANAGER(S): South African – Multi-Asset – Medium Equity Maahir Jakoet & Saliegh Salaam (Old Mutual Customised Solutions (Pty) Ltd) LAUNCH DATE: 12/11/2010 SIZE OF FUND: 5-Yr 7-Yr -3.2% 0.7% 3.0% 4.8% Since Inception1 10-Yr - 6.1% -2.9% 1.0% 3.3% 5.1% - - 0.6% 3.8% 5.8% 6.2% 8.3% 8.4% Performance since inception of the fund. Inception: 31 July 2013. Class B1 fund is available through investment platforms such as Old Mutual Wealth. Performance measurements over periods shorter than the recommended investment term may not be appropriate. Past performance is no indication of future performance. Fund returns are net of fees and measured against the benchmark. Total % 30/06/2020 1.00c 2.26c 3.26c 1.10% 31/12/2019 0.71c 3.03c 3.74c 1.21% * Class A fund distributions FUND COMPOSITION ASSET & PERCENTAGE ALLOCATION 24.9% Liquid Assets 21.3% International Non-Equities Old Mutual Albaraka Income Fund 18.7% 18.3% Industrials 14.8% 1.5% Rolling 12-Month Return Fund (Since Inception) Highest Average Lowest 20.4% 6.8% -8.7% Performance Since Inception 240 220 200 Fund Benchmark SA Inflation 180 160 140 120 100 80 Nov 10 Apr 12 Sep 13 Feb 15 Jul 16 Dec 17 May 19 Oct 20 Past performance is no indication of future performance. Risk Statistics (Since Inception) Maximum Drawdown -11.5% Months to Recover N/A % Positive Months 60.5% Annual Standard Deviation 6.7% Risk statistics are calculated based on monthly performance data from inception of the fund. 5-Year Annualised Rolling Returns (Fund vs Benchmark) 12% Fund Benchmark 10% 8% 6% 2% Total Resources 2 4% R2.8bn DISTRIBUTIONS: (Half-yearly)* Shari'ah Permissible Date Dividend Income International Equities 3-Yr 1 FUND OBJECTIVE Financials 2 1-Yr Benchmark Indexed to 100 on 30 Nov 2010 Low 0% Dec 15 Jul 17 Feb 19 Sep 20 PRINCIPAL HOLDINGS AS AT 30/09/2020 HOLDING % OF FUND BHP Group Plc 3.6% MTN Group Ltd 2.4% African Rainbow Minerals Ltd 1.9% Anglo American Platinum Ltd 1.7% African Oxygen Ltd 1.7% AVI Ltd 1.6% ABSA Ltd 9% 24/02/2021 1.6% ABSA Ltd 8.8% 26/04/2021 1.6% Afrimat Ltd 1.5% Netcare Ltd 1.4% 0.5% THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92 Funds are also available via Old Mutual Wealth and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.oldmutualinvest.com Email unittrusts@oldmutual.com
2. INVEST WITH FAITH OLD MUTUAL ALBARAKA BALANCED FUND OCTOBER 2020 FUND MANAGER INFORMATION MAAHIR JAKOET | PORTFOLIO MANAGER • BCom (Hons) UCT • 6 years of investment experience FUND COMMENTARY AS AT 30/09/2020 In the third quarter, global stock markets continued by the Shari’ah board). From an asset allocation to recover from their March panic-driven low. perspective, the fund has a slight overweight Economies worldwide continued to generate position in domestic companies and an overweight an erratic recovery from the COVID-19-induced position in local property via Equites Holdings, and recession, and periodic resurgences of the virus an overweight position in commodities including depressed many service industries. precious metals. Within the global equity portion of the fund, we remain underweight to the US and September lived up to its reputation for being the SALIEGH SALAAM | PORTFOLIO MANAGER • BCom, CFA Charterholder • 23 years of investment experience overweight to Europe and South Korea, whilst month most likely to see markets decline. Local positioned with a combination of secular growth equities ended September lower, recording a and cyclical value exposure. total return of -1.58% month on month, with listed 2020 has been an eventful year and we are property doing even worse, down 2.97%. For the cautiously optimistic that the global recovery will quarter, the ALSI gained 0.67% and cash 1.16%, continue to gain momentum. while property fell 14.14%. Small and mid-caps also outperformed large caps for the quarter, whilst Source: Old Mutual Investment Group as at 30/09/2020 resources rose 5.7%. Against this backdrop, the Old Mutual Albaraka Balanced Fund gained for the quarter. The fund’s bias to resources as well as mid- and small caps helped drive performance. Major contributors to performance were overweight positions in Harmony, Quantum Foods and African Rainbow. In contrast, performance detractors were Adcock, Datatec and Impala. In platinum we continue to prefer Amplats and Sibanye (which was recently approved OTHER INVESTMENT CONSIDERATIONS MINIMUM INVESTMENTS: • Monthly: R500 • Lump sum: R10 000 • Ad hoc: R500 INITIAL CHARGES (Incl. VAT)*: There is no initial administration charge for investment transactions of R500 and above. Initial adviser fee will be between 0% and 3.45%. Investment transactions below the R500 fund minimum incur a 2.30% administration charge. * Please note: Initial charges do not apply to the Class B funds. ONGOING Annual service fees (excl. VAT) Class B1* 1.25% 1.00% * Please note: The Class B1 fund is available through investment platforms such as Old Mutual Wealth. 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. A portion of Old Mutual Unit Trusts’ annual service fees may be paid to administration platforms. TAX REFERENCE NUMBER: 9242/164/18/5 ISIN CODES: Class A ZAE000135810 Class B1 ZAE000179271 36 Months Total Expenses (Incl. Annual Service Fee) (30/06/2020) Class A 12 Months Class A Class B1* Class A Total Expense Ratio (TER) Incl. VAT 1.48% 1.19% 1.49% Class B1* 1.20% Transaction Cost (TC) 0.15% 0.15% 0.13% 0.13% Total Investment Charge 1.63% 1.34% 1.62% 1.33% * Please note: The Class B1 fund is available through investment platforms such as Old Mutual Wealth. TER is a historic measure of the impact the deduction of management and operating costs has on a fund’s value. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER, which includes the annual service fee, may not necessarily be an accurate indication of future TERs. Transaction Cost (TC) is a necessary cost in administering the fund and impacts fund returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of fund, the investment decisions of the investment manager and the TER. Funds are also available via Old Mutual Wealth and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet www.oldmutualinvest.com Email unittrusts@oldmutual.com We aim to treat our clients fairly by giving you the information you need in as simple a way as possible, to enable you to make informed decisions about your investments. • We believe in the value of sound advice and so recommend that you consult a financial planner before buying or selling unit trusts. You may, however, buy and sell without the help of a financial planner. If you do use a planner, we remind you that they are entitled to certain negotiable planner fees or commissions. • You should ideally see unit trusts as a medium- to long-term investment. The fluctuations of particular investment strategies affect how a fund performs. Your fund value may go up or down. Therefore, we cannot guarantee the investment capital or return of your investment. How a fund has performed in the past does not necessarily indicate how it will perform in the future. • The fund fees and costs that we charge for managing your investment are disclosed in this Minimum Disclosure Document (MDD) and in the table of fees and charges, both of which are available on our public website or from our contact centre. • Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained, free of charge, from Old Mutual Unit Trust Managers (RF) (Pty) Ltd, from our public website at www.oldmutualinvest.com or our contact centre on 0860 234 234. • Our cut-off time for client instructions (e.g. buying and selling) is at 15:00 each working day for all our funds, except the Money Market Funds, the price of which is set at 13:00. These are also the times we value our funds to determine the daily ruling price (other than at month-end when we value the Old Mutual Index Funds and Old Mutual Multi-Managers Fund of Funds range at 17:00 close). Daily prices are available on the public website and in the media. • Unit trusts are traded at ruling prices, may borrow to fund client disinvestments and may engage in scrip lending. The daily ruling price is based on the current market value of the fund’s assets plus income minus expenses (NAV of the portfolio) divided by the number of units on issue. • This fund holds assets in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. • The Net Asset Value to Net Asset Value figures are used for the performance calculations. The performance quoted is for a lump sum investment. The performance calculation includes income distributions prior to the deduction of taxes and distributions are reinvested on the ex-dividend date. Performances may differ as a result of actual initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. Annualised returns are the weighted average compound growth rates over the performance period measured. Performances are in ZAR and as at 31 October 2020. Sources: Morningstar and Old Mutual Investment Group (FSP no. 604). Old Mutual Customised Solutions (Pty) Ltd is a Licensed Financial Services Provider. Old Mutual Unit Trust Managers (RF) (Pty) Ltd, registration number 1965 008 47107, is a registered manager in terms of the Collective Investment Schemes Control Act 45 of 2002. Old Mutual is a member of the Association for Savings and Investment South Africa (ASISA). Old Mutual Unit Trust Managers has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. Trustee: Standard Chartered Bank, PO Box 782080, Sandton 2146. Tel: +27 11 217 6600, Fax: +27 11 217 6642. Issued: November 2020