Old Mutual Core Moderate comment - Sep 19 - Fund Manager Comment23 Oct 2019
The broad South African equity market exposure in the fund is primarily through an allocation to the FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX), which is intended to be a fairer refl ection of the investment universe available to a South African investor. The Capped SWIX has a strategic weighting of 35% in the fund and returned -5.1% for the quarter ending September 2019.
The best performing sector was consumer goods with a return of -0.82% for the quarter. Telecommunications was the worst performing sector for the quarter, returning -7.77%.
In addition to the broad local equity market exposure, the fund also has exposure to SA listed property with a strategic weight of 7.5%. The FTSE/ JSE SA Listed Property Index returned -4.44% for the quarter ending September 2019.
The international equity exposure is invested in the MSCI All Country World ESG Leaders Index, which has a strategic weighting of 15%. The MSCI All Country World ESG Leaders Index offers exposure to both developed and emerging markets globally, and returned 0.81% in US dollar terms. The rand weakened against the US dollar by 7.35% over the quarter, which would have a positive impact on returns to South African investors.
To diversify the fund away from equity, the fund invests in nominal bonds through exposure to the JSE All Bond Index (ALBI), which has a strategic weighting of 15%. The ALBI increased by 0.74% for the quarter. The shorter end of the duration curve was the best performing, returning 1.25%, while the long duration bonds returned 0.52%.
In addition to the nominal bond exposure, an allocation is also made to infl ation-linked government bonds through exposure to the JSE IGOV Index, which has a strategic weight of 10%. The JSE IGOV Index increased by 0.11% for the quarter.
Mandate Overview20 Aug 2019
The fund aims to achieve long-term inflation-beating growth from a cost-efficient balanced portfolio with an equity exposure typically displayed by multi-asset medium equity portfolios conforming to the regulations governing retirement fund investments.
Mandate Universe20 Aug 2019
South African and international listed and unlisted: - equity securities - non-equity securities - property securities - derivatives for efficient portfolio management purposes - assets in liquid form as well as participatory interests in SA and international CIS. Minimum 50% exposure to passively managed securities is required. The investible universe of the respective passively managed asset class exposures will be limited to appropriate indices compiled and published by a recognised index compiler.
Old Mutual Core Moderate comment - Jun 19 - Fund Manager Comment20 Aug 2019
The broad South African equity market exposure in the fund is primarily through an allocation to the FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX), which is intended to be a fairer reflection of the investment universe available to a South African investor. The Capped SWIX has a strategic weighting of 35% in the fund and returned 2.9% for the quarter ending June 2019.
The best performing sector was telecommunications with a return of 18.65% for the quarter. Healthcare was the worst performing sector for the quarter, returning -8.26%.
In addition to the broad local equity market exposure, the fund also has exposure to SA listed property with a strategic weight of 7.50%. The JSE SA Listed Property Index returned 4.52% for the quarter ending June 2019.
The international equity exposure is invested in the MSCI ACWI ESG Index, which has a strategic weighting of 15.00%. The MSCI ACWI ESG Index offers exposure to both developed and emerging markets globally. The MSCI ACWI ESG Index returned 3.63% in USD terms. The rand strengthened against the US dollar by 2.72% over the quarter, which would have had a negative impact on returns to South African investors.
To diversify the fund away from equity, the fund invests in nominal bonds through exposure to the JSE All Bond Index (ALBI), which has a strategic weighting of 15.00%. The JSE ALBI increased by 3.70% for the quarter. The longer end of the duration curve was the best performing returning 4.61% while the short duration bonds returned 2.66%.
In addition to the nominal bond exposure, an allocation is also made to inflation-linked government bonds through exposure to the JSE IGOV Index, which has a strategic weight of 10.00%. The JSE IGOV Index increased by 2.80% for the quarter.