We offer both index funds and passively managed funds. An index fund aims to mirror an index by owning the same shares as those that are included in an index, such as the FTSE Shareholder Weighted Index (SWIX). A passively managed fund that is not an index fund will have a set of criteria for defining the types of shares it holds; it will then own all the stocks that meet those criteria without any attempt to pick the “winners” out of that group, or be over exposed to the “losers”. Both of these options are low cost and offer investors simplicity and transparency by accessing the returns of the benchmark.
The Old Mutual Dynamic Floor Fund, an actively managed multi-asset fund, has an investment approach that is driven by targeted risk and return objectives. The aim is to ensure investors do not suffer significant losses during turbulent market periods, as the fund has a targeted maximum drawdown over 1 year, while aiming to provide consistent, above inflation returns. Capital is protected through local and global diversification and the use of derivatives.
These actively managed funds use an objective, quantitative process to generate outperformance. This range of funds includes our Shari’ah compliant solutions that adhere to Islamic investment principles based on ethics and beliefs; the Old Mutual Managed Alpha Equity Fund that aims to achieve steady growth of capital above the average general equity fund; and also our recently launched Old Mutual ESG Equity Fund that invests in South African companies that score better than their peers on an ESG screening basis.
Our competitive edge
Perfect blend of human judgement and technology.We use our own superior in-house customised quantitative models and tools to analyse large quantities of financial and economic data. These tools help identify investment opportunities and avoids emotional biases.
Risk management.Reducing volatility is a deliberate and explicit part of our investment process. We construct portfolios to have the optimal level of risk for the desired outcomes with more focus on reduced volatility and capital preservation than most.
Largest indexation manager in SA.We are the largest indexation manager in South Africa, both in terms of size of the team, and the value of the assets we manage.
ESG integration.Environmental, social and governance considerations are included in our investment processes in a manner applicable to each fund’s mandate. Our funds all benefit from active ownership, which includes proxy voting and engaging with management to proactively drive change and long-term sustainable outcomes. We also manage two ESG index funds and a recently launched active SA equity ESG fund that invest in shares that score better on an ESG basis than their peers.
Stable, long term track record.We have been successfully implementing new funds in the SA market ahead of our competitors across the innovative capabilities we offer: Shar’iah, ESG, indexation, quantitative and risk management. We are also one of South Africa’s largest index managers offering a low-cost solution to investors.
Derivative usage.We use derivatives when permitted by the fund mandate. Our size and stature in the South African derivatives markets, coupled with our long-standing relationships with key banks and brokerage firms, gives us a considerable advantage to ensure we get the best pricing from counterparties to better manage the cost to the investor.
Our flagship unit trusts range of ten funds out of a total 40 unit trusts
YOUR GOALS. OUR SOLUTIONS.