OLD MUTUAL INVESTORS' FUND
This fund has 387 457 unitholders and assets of R4.7-billion. Launched in October 1966, it is jointly managed by Bryan Hopkins and James Henry for Old Mutual Asset Management
OBJECTIVE: To provide above-average returns through well-researched and superior stock selection. The fund holds a broad-based exposure to the SA equity market by focusing on the top 100 shares. It seeks to limit volatility relative to the JSE all-share index.
TARGET MARKET: Investors seeking a long-term, balanced exposure to the SA equity market, those wishing to supplement their investments with a spread of JSE shares and those wishing to benefit from a relatively secure, well-established fund which boasts an inflation-beating record.
CHARGES (incl VAT): Compulsory: 0.7%. Initial: 5.46% (on a sliding scale). Annual service fee: 1.14%.
MINIMUM INVESTMENT: Lump sum: R500; monthly: R100.
PAST PERFORMANCE (per Micropal):
JSE all-share index: 92.9%
Sector average: 125.4%
JSE all-share index: 31%
Sector average: 51.3%
Performance is calculated on a buy-to-sell basis with income reinvested.
PAST TWO INCOME DISTRIBUTIONS: March 1997: 57.42c (35% interest; 65% dividends). September 1997: 52.50c (38% interest; 62% dividends).
TOP 10 HOLDINGS: Investec; Nedcor; Absa; FNB; Rembrandt; Richemont; Bidvest; Super Group; SAB; Anglo American.
TOLL-FREE: 0860 234 234
ABOUT THE FUND MANAGERS
AGE: Hopkins - 50; Henry - 27
QUALIFICATIONS: Hopkins - BCom; CA (SA); Henry - BCom; PGDA; CA (SA)
EXPERIENCE: Hopkins joined Old Mutual Asset Managers in 1994 and is now chief investment officer. Henry joined in 1995 and is now jointly responsible for the management of this fund.
INVESTMENT ATTITUDE: Our team of analysts generate research on stocks listed on the JSE and other international exchanges, which enables us to take a bottom-up approach to stock selection while managing risk on a top-down basis.
VIEW ON PAST PERFORMANCE: The mining and commodity bias of the fund explains its less exciting past performance. This portion has been aggressively reduced in favour of stocks with more predictable characteristics in higher-growth industries.
THE FUTURE: With a more focused fund having fewer counters, we expect a much improved performance. The fund is positioned to take advantage of globally competitive stocks with superior management in service-related industries.
This fund is the largest and one of the oldest funds and may have become unwieldy. Its size and structure cause returns to gravitate towards the index. Old Mutual has, however, made a bold and aggressive attempt to restructure the portfolio, particularly with offshore exposure. This offers investors potential benefits which may take time to be felt.