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FINANCIALLY TALKING SEPTEMBER 2017 CONTENTS INVESTING FOR A FUTURE THAT MATTERS ELIZE BOTHA WEAK US DOLLAR GOOD FOR EMERGING MARKETS TINYIKO NGWENYA & JOHANN ELS THE REWARDS OF SUSTAINABLE INVESTING HOW CYBER SAFE ARE YOU IN THE DIGITAL AGE? GET IN TOUCH WITH US: KEEP YOUR PERSONAL AND BENEFICIARY DETAILS CURRENT
SUSTAINABLE INVESTING FOR
A FUTURE THAT MATTERS
ELIZE BOTHA | MANAGING DIRECTOR: OLD MUTUAL UNIT TRUSTS
Old Mutual Unit Trusts has the honour of managing the longest OLD MUTUAL INVESTMENT GROUP
running unit trust fund in South Africa, the Old Mutual Investors' Fund, As a leading African asset manager and one of the investment industry’s
which turns 51 in September 2017. Today, we offer one of the most
best kept secrets, Old Mutual Investment Group has been operating
comprehensive and competitive fund ranges across the risk and
as a focused specialist boutique business for over a decade. Our
asset class spectrum, in both single and multi-managed funds – with
over 40 diverse unit trusts for all investors’ unique needs. We’ve stayed fund managers run their respective investment businesses with the sole
the course and achieved success because we remain focused on the focus of delivering investment performance, supported by world-class
future. We continue to support investors to meet their financial goals professional services and infrastructure.
and mitigate risks that could derail their plans.
OLD MUTUAL MULTI-MANAGERS
MY COMMITMENT TO OLD MUTUAL UNIT TRUSTS Old Mutual Multi-Managers leverages the established
I’m excited to be part of an organisation that is future-fit and provides systems and resources of the Old Mutual Group to streamline
relevant solutions to our clients. I’m passionate about people and our
processes and costs for clients while retaining the nimbleness,
country, and committed to help make a difference and bridge the
flexibility and performance focus of an autonomous unit.
economic divide in SA. My values are perfectly aligned to those of
Old Mutual and it is a joy for me to work here. Being accessible Old Mutual Multi-Managers has a distinctive product offering and
is important to me and therefore, I will increase the use of digital exceptional investment track record built on the merger of SYm|mETRY
communication platforms, such as videos and podcasts, to connect and Acsis in 2013.
with you.
MY NOTE WILL BE INCOMPLETE IF I DON'T USE THIS OPPORTUNITY
RESPONSIBLE INVESTMENT – INVESTING
TO SHARE SOME OF OUR PROUDEST ACHIEVEMENTS DURING 2017.
FOR A FUTURE THAT MATTERS
President and Executive Director of Co-op America Foundation, Inc.
Alisa Gravitz once said: “Social concerns are increasingly becoming KIGODA RESPONSIBLE INVESTMENT AWARD
investing concerns, and all of Wall Street is starting to factor these Old Mutual Investment Group became the inaugural winner of the
issues into its investment decisions." Kigoda Responsible Investment Ranking 2017 for asset managers.
At the core of what we do is our firm commitment to investing and
Kigoda Consulting launched the Kigoda Responsible Investment
acting to ensure the future is prosperous and sustainable for all
stakeholders. That’s because we’re convinced investing responsibly Ranking 2017 using the five principles of the Code for Responsible
improves long-term returns, and contributes to the prosperity of our Investing in South Africa (CRISA). They independently assess whether
company, our investors, the environment and the communities in the top ten largest asset managers, managing about two-thirds of SA
which we operate. assets, have the policy frameworks and governance structures in place
As such, we partner with Old Mutual Investment Group and Old Mutual to implement sustainable and responsible investment. Old Mutual
Multi-Managers, to integrate Environmental, Social and Governance participated in the development of CRISA through our membership
(ESG) considerations across our investment capabilities. in the CRISA Committee.
2
IN 2016
R4.5bn ALONE
Start-up R103m
R103m Education ECONOMIST OF THE YEAR
Education
OLD MUTUAL
finance
INVESTED
The Old Mutual Investment Group Chief
R20bn R4.5bn
Economist, Rian le Roux, was awarded the
Renewable Start-up finance 2017 Sake Economist of the Year Award
energy for his economic forecasts in 2016. He
previously won this accolade for 2014 and
IN 2016 ALONE
R20bn Renewable energy
OLD MUTUAL is one of only three economists to have
INVESTED achieved this honour twice, including Dave
Mohr, Chief Investment Strategist at Old
R21bn Affordable housing Mutual Wealth. Rian works with a great team comprising
R21bn Johann Els and Tinyiko Ngwenya, who are both featured in
R58bn
Affordable Infrastructure this newsletter. They conduct detailed research of all South
housing R58bn Infrastructure development development African economic variables, including the rand, inflation,
interest rates and fiscal matters; and the detailed analysis
of macro-economic data and key economic policy issues
RAGING BULL AWARD affecting industries in which Old Mutual invests.
The Old Mutual Global Equity Fund won the 2017 Raging Bull Award
for the Best South African domiciled Global Equity Fund on straight Now in its 28th year, the competition adjudicated by
performance over three years to December 2016. It also won the Professor Eon Smit is one of the oldest and most prestigious
certificate for the best South African domiciled Global Equity General economic events on the financial calendar and past winners
Fund on risk-adjusted performance over five years to December 2016. include some of the most distinguished names in South
The judges commented that it is the Old Mutual Global Equity Fund's African economic circles.
highly pragmatic approach to stock selection which continues to
produce superior performance for investors.
It’s the fifth year in a row that we have won the Raging Bull Award three-, five- and ten-year performance relative to their peers, based
in the rand-denominated global equity category. Global funds invest on Lipper’s proprietary performance-based methodology.
80% in global equity outside South Africa all the time. The Old Mutual Albaraka Equity Fund outperformed competitors in the
five-year Global Islamic fund category. The Fund is strictly managed
in accordance with Shari’ah (Islamic law) and provides investors
with the opportunity to invest in equities listed on the Johannesburg
Securities Exchange (JSE). It seeks to provide medium- to long-term
outperformance of the FTSE/JSE Shari’ah Index.
The Old Mutual Albaraka Equity Fund is a top quartile performer over
two years and 25 years against the South African General Equity
category and has established a good track record since its inception
on 30 June 1992.
Left: Laura du Preez, Editor of Personal Finance
Centre: Elize Botha, Managing Director of Old Mutual Unit Trusts The Old Mutual Global Equity Fund won a Raging Bull award in January 2017 and the
Right: Ernie Alexander, Chairman of the Profile Group
Old Mutual Albaraka Equity Fund won the 2017 Thomson Reuters Lipper Global Islamic
Fund Award in August 2017. Full details and the basis for these awards are available
from Old Mutual Unit Trust Managers (RF) (Pty) Ltd. The Net Asset Value to Net Asset Value
THOMSON REUTERS LIPPER GLOBAL figures are used for the performance calculations. The performance quoted is for a lump sum
investment and in respect of the Old Mutual Albaraka Equity Fund. The performance includes
ISLAMIC 2017 FUND AWARD income distributions prior to the deduction of taxes and distributions are reinvested on the
Old Mutual Investment Group won the 2017 Thomson Reuters Lipper ex-dividend date. Actual performance may differ as a result of actual initial fees, the actual
investment date, the date of reinvestment and dividend withholding tax. Past performance
Global Islamic Fund Award, for the second consecutive year. is not a guide to future performance. Annualised returns are the weighted average com-
pound growth rate over the performance period measured. The actual highest, average
The Thomson Reuters Lipper Fund Awards have been in existence
and lowest 12-month return figures since inception to 31 July 2017 are 60.4% (highest),
for over three decades and honour funds and fund management 16.4% (average) and-39.9% (lowest). (Sources: MorningstarandOldMutualInvestmentGroupasat
firms that have excelled in providing consistently strong risk-adjusted 31 July 2017.) The fund was launched on 30 June 1992.
3
WEAK US DOLLAR GOOD
FOR EMERGING MARKETS
JOHANN ELS | HEAD: ECONOMIC RESEARCH AT OLD MUTUAL INVESTMENT GROUP
TINYIKO NGWENYA | ECONOMIST AT OLD MUTUAL INVESTMENT GROUP
GLOBAL MARKETS INFLATION AND RETAIL SALES DISAPPOINT
While the global economy ended the second quarter on a The US dollar was also negatively affected by growing doubt
solid footing, supporting investor sentiment, a stream of more over whether the Fed will raise interest rates again this year.
hawkish comments by a number of central banks served as Annualised GDP growth during the first half of 2017 was just
a reminder that the extended period of broad-based and less than 2%, indicating that the economy is not overheating −
extreme monetary support is coming to an end. Another global warranting a less aggressive Fed. With the unemployment rate
feature has been the relentless weakening of the US dollar, at a historically low 4.4%, it appears that the labour market
despite the US Federal Reserve (Fed) leading the global policy is the only strong signal at present keeping the Fed on course
normalisation cycle. A soft US dollar is, of course, a boon to to hike rates one more time this year. Retail sales have been
flat since the start of the year and vehicle sales have been
emerging markets as it tends to support commodity prices and
trending weaker in recent months. If the market is right about
reduce pressure on emerging market currencies. As a result,
the Fed’s likely course of action, then the key case for a strong
capital flows into developing countries have remained buoyant
US dollar (i.e. rising interest rates) is considerably weakened.
in recent months. The key factors undermining the US dollar
are the political gridlock in Washington (raising concerns over EUROPE RECOVERY SPELLS AN END TO QE
the timing and size of the long-awaited stimulatory tax reform), Growing expectations that the ECB will soon announce plans
reduced concern over a more aggressive Fed (as US inflation to begin paring back monetary stimulus in January 2018
remains tame amid a tight labour market) and the European have also played a role in explaining the US dollar’s recent
Central Bank (ECB) indicating that it too, is considering tapering weakness. The underlying improvement in the Eurozone
asset purchases perhaps from early next year. economy is clearly reflected in the June unemployment rate
falling to an eight-year low of 9.1%. While the Eurozone
TRUMP PROMISES FAIL TO MATERIALISE remains on a recovery path, inflation is pretty subdued, with
It’s no secret that US President Donald Trump has had a the core CPI hovering around 1.2% for July and well below
disappointing start to his presidential term, with the failure of the ECB’s 2% target.
the latest Obamacare repeal raising doubts as to whether
the administration will, in fact, be able to implement much of
its promised policies, particularly on the fiscal policy front.
The US dollar surge late last year was mainly on the back
of the perceived positive impact that proposed fiscal stimulus
would have on both growth and company earnings, as
analysts made upward revisions to their US growth forecasts.
Consequently, as optimism over tax reform faded, the
US dollar came under pressure.
4
Still, the firming and spreading Eurozone recovery is paving ALL THE NEW ACTION PLAN NEEDS IS ACTION
the way for the ECB to follow the US Fed in starting to roll While the plan’s focus areas are on target, it is difficult to
back monetary stimulus through a slowdown in the pace of be overly optimistic on implementation − as this is where
asset purchases. For some time now, we have held the view previous plans also fell short. Nevertheless, it seems that
that a better Europe and a less aggressive US Fed would bode Minister Gigaba and his Treasury colleagues are agreeing
well for emerging markets through a softer US dollar. While on the big issues and risks for the SA economy – and have
this view is clearly playing out, market focus is shifting to the convinced the ANC to support this plan.
inevitable tightening in global liquidity conditions − as first the
In a further positive development, the Minister of Mineral
US Fed and then the ECB start to wind down asset purchases
Resources had to suspend the implementation of the new
in coming months. While this indeed holds risks to relatively
Mining Charter after severe criticism from the Chamber of
elevated asset prices, we do not think it portends a premature
Mines, the ANC and the National Union of Mineworkers,
end to the global equity bull market, largely because global
among others.
growth is firming, which will support corporate profitability.
SOUTH AFRICA SURPRISE AS SARB SPRINGS INTO ACTION
Moving on to an area we have highlighted a few times over
The widely anticipated ANC National Policy Conference took
the past several months: the need for lower interest rates.
place in early July. Even though the National Development Plan
Ever since May 2016, we have warned that inflation will fall
(NDP) was affirmed as the governing party’s growth policy
sharply during the course of 2017. We said that this trend,
guide, very little was actually decided at the conference.
combined with a weak economy and a more stable currency,
However, it is probably positive that relatively moderate views
as well as a lower current account deficit (thanks to a much
prevailed and that there did not seem to be a lot of appetite
more supportive global economy), should provide the South
for radical policy changes.
African Reserve Bank (SARB) with the opportunity to cut interest
rates during the second half of 2017. The need for lower rates
GOVERNMENT’S INCLUSIVE became ever more pronounced when the economy dipped into
recession during the first quarter of this year. Inflation slowed
GROWTH ACTION PLAN more rapidly than even we expected (we now expect a rate
ADDRESSES THE FOLLOWING of around 4.6% for July) and even the current account deficit
surprised on the positive side. As the Reserve Bank governor
KEY FOCUS AREAS: continued with very hawkish comments in the lead-up to the
July policy meeting, we noted that the SARB was running the
1. Weak growth and the impact risk of making a policy error.
on the fiscal framework However, they then surprised the market with a rate cut after
markedly lowering their inflation and growth forecasts. Even
though the usual political, policy and credit ratings risks
2. Rising government debt remain, we expect another three 0.25% rate cuts in this cycle
– another one later this year, with a further two cuts forecast
for the first half of 2018.
3. The state-owned companies and
risks to contingent liabilities
4. Policy uncertainty and low
confidence levels
5
RECESSION IS OVER
The economy was in a recession during the last quarter of
2016 and the first quarter of this year. At the time of the release
of the first quarter GDP data, we noted that the widespread
nature of the weakness (with only the mining and agricultural
sectors recording positive growth) was totally unexpected and
that perhaps the economy would rebound after likely seasonal
distortions. The high frequency data that is available for the
second quarter allows us to start building a forecast of better,
and quite likely, positive GDP growth. Examples of some of
the available data from StatsSA are mining production at
+2.6%, manufacturing production +6.2%, electricity production
+12.1%, retail sales +7.7% and freight transport +8.4% (all
numbers quoted are quarter-on-quarter annualised growth rates).
Of these sectors, retail sales, manufacturing production and
electricity production all recorded negative growth during the
first quarter. With some June data still outstanding, we expect
total second quarter GDP growth to come in around +2.4%
annualised, up from the -0.3% recorded in the first quarter.
Although this means an end to the recession, growth is clearly
still weak and a mild interest rate cycle will, at best, help lift
confidence a bit. Political and policy reform remains key to
lift confidence and growth.
WHAT THIS MEANS TO YOU, THE
UNIT TRUST INVESTOR
In volatile markets largely driven by political uncertainty
world-wide and across markets, it is important to
remember the following:
• ave an investment strategy and stick to it. As an
H
investor, you must set out your investment goals
upfront – whether they are for the short, medium
or long term. Once your strategy is final you need
to stay the course.
• Stay invested because disinvesting and losing
even a little time in the market might cost you on
your investment returns.
• It is important to recognise what market noise
is and what the key fundamentals are that drive
investment performance over the longer term.
To this end, trust the portfolio manager or your
adviser when considering market movements,
given the experience and dedication they offer.
6
THE REWARDS OF OUR COMMITMENT TO A SUSTAINABLE FUTURE
As a responsible, long-term investor, we believe that
SUSTAINABLE incorporating environmental, social and governance (ESG)
factors into our investment, people and communities, enables
INVESTING us to deliver superior risk-adjusted returns for our clients. The
overarching principles that guide the way we operate are:
1. Investing in the future through ethical investment and business
practices that have generational horizons and have a positive
impact on the environment and communities in which we
invest 2. Investing in our people so that they are challenged,
empowered and equipped to deliver the best they have to
offer to our clients.
POSITIVE IMPACT ON THE ENVIRONMENT
AND COMMUNITIES
The energy gap in Africa is big and needs to be corrected for
the continent to advance. As a responsible investor, we have
TRANSFORMING OUR WORLD: THE 2030
opted to invest in renewable energy projects such as solar
AGENDA FOR SUSTAINABLE DEVELOPMENT
plants and wind farms. Renewable energy is far cleaner, with
At the United Nations Sustainable Development Summit in
virtually no carbon or toxic emissions, and is now cheaper to
September 2015, 193 countries including South Africa
produce than coal-powered energy.
adopted a set of goals and targets as part of a new sustainable
development agenda, following the Millennium Development There has been a positive environmental and social impact
Goals committed to in 2000. The Sustainable Development from these projects – powering over 700 000 low income
Goals agenda focuses on three dimensions – economic, social homes and reducing the CO2 emissions by over two million
and environmental – and below is an excerpt from their vision. tons (almost equal to 400 000 cars being taken off the road).
We believe it is important for surrounding communities to share
“In these goals and targets, we are setting out a supremely
in the benefits from the renewable energy projects. Therefore,
ambitious and transformational vision. We envisage a world…
for many of these projects, there are community trusts that act
where human habitats are safe, resilient and sustainable and
as vehicles through which socio-economic initiatives are rolled
where there is universal access to affordable, reliable and
out to bring change to communities.
sustainable energy... of equal opportunity permitting the full
realization of human potential and contributing to shared
prosperity... where every country enjoys sustained, inclusive
and sustainable economic growth and decent work for all...
where there is social development, environmental protection
and the eradication of poverty and hunger…”.
For this vision to be achieved, everyone has a responsibility
to do their part and at Old Mutual, we are proud to say that
we have long committed to sustainable development, since
we launched the country’s first socially responsible investing
equity unit trust fund in 1992.
We aim to benefit our investors through investments that make
a meaningful contribution to the long-term stability of financial
markets and society. We do this by investing in opportunities
associated with a low-carbon and socially inclusive economy;
supporting and developing our people and the communities
that we invest, operate and live in; and ensuring that our
business consistently seeks to reduce its environmental impact.
7
GREEN HOUSING AT LOW COST
Environmental sustainability is an increasingly important
WE HAVE UNPARALLELED
criterion for investors, both locally and globally. The CAPABILITY AND EXPERIENCE
Old Mutual Alternative Investments’ Development Impact Funds IN THE ALTERNATIVE
team believes that it is important to integrate green efficiencies
INVESTMENT ARENA AND WE
in housing design, especially in the affordable market segment.
As a result, they registered their pilot project, Fourleaf Estate,
ARE ONE OF THE LEADING
for EDGE (Excellence in Design for Greater Efficiencies) LOCAL INVESTORS IN THE
certification at the end of 2016. EDGE is simultaneously DEPARTMENT OF ENERGY’S
a software and a green building certification system. The
RENEWABLE ENERGY
International Finance Corporation and the Green Building
Council of South Africa worked together to tailor EDGE to INDEPENDENT POWER
the South African environment, to account for South African PRODUCER PROCUREMENT
climatic conditions, the standard of local building materials PROGRAMME
and local development costs.
WE ALSO BELIEVE THAT THERE IS INVESTING IN OUR PEOPLE
Our strong internal transformation agenda ensures the
A DIRECT CORRELATION BETWEEN socio-economic advancement of previously disadvantaged
THE PROSPERITY OF OUR COMPANY individuals. We aim to have a vibrant, socially relevant and
AND THE PROSPERITY OF OUR demographically representative staff complement. Our efforts
in responsible investing and transformation form an important
COUNTRY: THE MORE SOUTH
component in enabling the broader Old Mutual Emerging
AFRICA PROSPERS, THE MORE Markets Responsible Business programme, which is focused
WE WILL PROSPER on unlocking shared value opportunities across our business.
8
CONTRIBUTING TO THE GREEN ECONOMY
The Old Mutual Investment Group actively allocates capital
to investment opportunities that contribute to the development
of a sustainable economy. These include investments into key WE SUPPORT AND
themes such as low-carbon electricity, agriculture, affordable
housing and quality education. Collectively, we call this
ENCOURAGE THE
investing in the green economy, which the World Bank defines
DEVELOPMENT AND
as “low-carbon socially inclusive and resource-efficient growth”.
INTEGRATION OF RENEWABLE
From an investment perspective, getting exposure to green
growth has required domestic investors to look to the alternative ENERGY PLANTS ACROSS
investment arena. It is in this space that Old Mutual Investment
Group has unparalleled capability and experience. For example, THE COUNTRY AND HAVE
we are one of the leading local investors in the Department
of Energy’s Renewable Energy Independent Power Producer
INVESTED IN OVER 40
Procurement Programme, providing equity participation and RENEWABLE ENERGY
debt funding to primarily wind and solar projects across the
country. Our participation in this programme not only makes PROJECTS, OF WHICH
capital available for an important environmental issue but also
provides an appropriate risk-adjusted return for our investors. MORE THAN 20% ARE
At Old Mutual Unit Trusts we believe in the importance of giving BLACK OWNED
appropriate consideration to any factor that may materially
affect the sustainable long-term performance of a fund’s assets,
including ESG factors. This is why we partner with Old Mutual
Investment Group to manage our single manager funds.
Old Mutual Investment Group has a dedicated analytical
team that promotes the interests of a fund in a stable and
transparent environment. They do this by ensuring our portfolio
managers understand the ESG implications of investing in
particular companies.
With our wealth of experience and the research expertise
of the investment professionals and analysts at Old Mutual
Investment Group, we are confident that our unit trusts offer
you investments that are unique and stand out from the crowd.
OLD MUTUAL STAFF MAKING A DIFFERENCE
IN OUR COMMUNITIES
9
HOW CYBER SAFE ARE YOU IN THE DIGITAL AGE?
The latest Allianz Risk Barometer for 2017, which gauges the Once registered, you are given a unique digital identity, linked
biggest risks faced by businesses across the globe, showed that to your mobile number, which you will use to securely interact
companies ranked cybercrime as the biggest emerging risk for the with Old Mutual.
long-term future of business. In their view, cybercrime threatens the
sustainability of business and therefore economic development. SECURE SERVICES FOR INVESTING
Old Mutual’s suite of internet-based self-help services offers the most
It is difficult to believe that the World Wide Web, in its current form,
convenient way to obtain and manage portfolio and investment
was invented just over 27 years ago. One of the most important
information at any time. It enables you to:
things that the internet has enabled is increased connectivity, both
physically and emotionally. It has also reduced the time it takes • View your full portfolio of unit trust investments.
for us to transact. However, this convenience has unfortunately • Buy, sell, and switch units (transact access).
created opportunities for cyber-attacks, data fraud and theft. • Update your personal contact details.
Despite this increased risk, the advantages of going digital far
In addition, third party representatives (investment managers,
outweigh the disadvantages. There are huge savings in costs due
guardians, power of attorneys) acting on behalf of another
to the time it takes to make contact, because there are no travel
individual, may apply for viewing access.
or postage costs incurred. In addition, the immediacy in investing
ensures that one does not miss time in the market. Going digital To gain access, please complete the initial registration process
is also the socially responsible thing to do because it reduces by visiting https://secure.ssa.oldmutual.co.za/login/login.asp
the amount of paper we use and therefore our carbon footprint. to obtain a unique user number and to confirm your password.
At Old Mutual Unit Trusts we continue to build our digital platforms Using these details, you can then log in and apply for the specific
to improve the security features of our online Secure Services. unit trust secure site services you require.
10MOBILE SECURE SITE
Our mobile secure site offers a wide range of value-added services
GET IN TOUCH
on your smartphone or tablet. You can view your portfolio of unit
trust investments, as well as access your transaction statements, WITH US: KEEP
tax certificates, personal details and communication history −
all on your smartphone. By using the Old Mutual Unit Trusts YOUR PERSONAL
AND BENEFICIARY
secure site you can access your investment information on your
smart device. Log on to the Old Mutual Unit Trusts homepage at
DETAILS CURRENT
www.omut.co.za, click LOGIN and select Unit Trusts.
WOULD YOU LIKE TO REGISTER?
If you aren’t already registered on the secure site, what are you PERSONAL DETAILS
waiting for? Go to www.omut.co.za and register today to manage Please keep your personal details linked to your unit trust
your unit trust portfolio and investment information at any time – portfolio up to date. If any of your contact details have
on your laptop or smartphone. Just follow these three easy steps:
changed – e.g. email address; telephone (mobile, work,
Step 1: In the right-hand corner of the web page click on the home); address (residential; postal); income tax reference
word “LOGIN”. number and tax residence information – please let us
Step 2: Select “REGISTER FOR A SERVICE” and complete your know as soon as possible.
personal details.
Step 3: Select your password and answer the security questions. BENEFICIARY DETAILS
Once you’ve obtained your user name and password, If you are invested in Old Mutual Unit Trusts retirement
you may complete your registration. products it is important that you nominate beneficiaries
It's simple and there are no queues, waiting or office hour to receive the proceeds of your investment in the event
limitations. Remember, you need to be a registered Old Mutual of your death. Update the beneficiaries you have
Unit Trusts secure site user to access the mobile service. nominated as your family circumstances change.
You can access the beneficiary nomination form by following:
https://www.oldmutual.co.za/personal/investments-
REMEMBER THE FOLLOWING TO PROTECT
YOUR PERSONAL INFORMATION and-savings/unit-trusts/forms
se different passwords for all your digital
U
accounts. Please also make sure that you do not use
HOW TO DO THIS?
easy-to-crack passwords like your children’s names,
If you receive your transaction statement
your date of birth, your name and especially not the
electronically via an Old Mutual Unit Trusts
most popular passwords like “12345", "qwerty"
and "password”. InfoSlip, select the “Your Details” tab to
update your contact details.
elete suspicious emails, or emails from an
D
unrecognisable source. Emails from Old Mutual
If you have access to the Old Mutual Unit
Unit Trusts originate from name@oldmutual.com and
Trusts Secure Service (www.omut.co.za),
it’s important to always check to make sure that the
address of the source email you are corresponding you can update your personal details there.
with, is legitimate. At Old Mutual Unit Trusts, we
You can call our Client Services Centre
send you password protected emails (a feature
recently added to all emails from our servicing area) on 0860 234 234 (+27 21 503 1770).
to protect your personal information from cyber
criminals. If you are unsure whether an email you You can download the Client Details Update
received from us is indeed valid, you can contact Form from https://www.oldmutual.co.za/
us at unittrusts@oldmutual.com, or you can call our personal/investments-and-savings/unit-trusts/
Client Services Centre on 0860 234 234. forms and return the completed form, along
Steer clear of forwarding suspicious emails with your supporting documents, to fax
to friends, relatives or colleagues. number +27 21 509 7100.
If you prefer face-to-face interactions,
eep your email and password secret.
K
you are welcome to visit your nearest
Old Mutual Unit Trusts will never ask you to disclose
Old Mutual branch, where you can update
this via an email or even a telephone call.
personal details on the Old Mutual system.
11STATUTORY INFORMATION 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 adviser before buying or selling unit trusts. You may however, buy and sell without the help of a financial adviser. If you do use a financial adviser, we remind you that they are entitled to certain negotiable adviser fees or commissions. • The fees and costs that we charge for managing your investment are accessible on the relevant fund’s minimum disclosure document (MDD) or table of fees and charges both available on our public website or from our service centre. • 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. • Our cut-off time for client instructions (e.g. buying and selling) is at 15:00 each working day for all funds, except the Money Market Funds, which are at 13:00. These are also the times we value our funds to determine the daily ruling price, except for our Index tracking and Core fund range which is valued at 24h00. (At month end we value our Old Mutual Multi Managers Fund of Funds range at 17:00). Daily prices are available on our public website (www.omut.co.za) and in the media. • Funds may borrow to pay 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 in issue. Old Mutual Unit Trusts has the right to close a portfolio to new investors in order to manage it more efficiently in accordance with its mandate. • Unit Trust Managers (RF) (Pty) Ltd (OMUT) is a registered manager in terms of the Collective Investment Schemes Control Act 45 of 2002. The fund fees and costs that we charge for managing your investment is accessible on the relevant fund’s minimum disclosure document (MDD) or Table of fees and charges, both available on our public website, or from our contact centre. Old Mutual is a member of the Association of Savings & Investment South Africa (ASISA). Money Market Funds: A Money Market Fund is not a bank deposit account. Its unit price aims to be constant but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13:00) but may also include any gain/loss on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in the case of abnormal losses, it can have the effect of reducing the capital value of the fund. The published yield is calculated using the average of the fund’s previous seven days’ net income (and assumes all income was reinvested). This figure is then annualised, which is the weighted average compound growth rate. Income Funds: Income funds derive their income primarily from interest-bearing instruments as defined. The published yield is a current yield and is calculated daily. The value of underlying assets of Income funds are marked to market on a daily basis. Fund of Funds: A fund of funds is a portfolio that invests in other funds in order to meet the investment objective of the fund of funds. Fund of funds can invest in local, foreign or offshore funds which levy their own charges, and may result in a higher fee structure. Feeder Funds: A feeder fund is a portfolio that invests all of its capital in a single underlying fund. This underlying fund can be a local, foreign or offshore fund and levy its own charges which may result in a higher fee structure. Third-Party Named Funds (co-branded): Old Mutual Unit Trust Managers (RF) (Pty) Ltd is the manager of Adviceworx and Old Mutual Multi-Managers suites of co-branded funds and retains full legal accountability. Funds holding foreign assets: Some funds hold assets in foreign countries and therefore may have risks, in these countries, regarding liquidity, the repatriation of funds, political and macro-economic situations, foreign exchange, tax, settlement and the availability of information, etc. Please contact us for risks specific to each country.
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