STRENGTH THROUGH BALANCE Old Mutual Unit Trust

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1 STRENGTH THROUGH BALANCE Old Mutual Unit Trust

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3 OLD MUTUAL NAMIBIA UNIT TRUSTS Old Mutual Namibia Unit Trusts offer investors expertly managed Funds to suit a variety of investment and savings needs. These Funds can be accessed via accredited financial advisors or through brokers. WHAT IS A UNIT TRUST? Unit Trusts use the combined money of investors to invest in global markets and economies. This combined investment is managed by investment professionals, called Portfolio Managers, who buy shares and other assets classes on behalf of their clients, according to the mandate of the Unit Trust. Simply put, Unit Trusts offer an easy, convenient and affordable way to invest in shares, and other asset classes. There are many types of Unit Trust Funds that are designed to offer you, the investor, a range of different benefits depending on your particular needs. These can range from long-term growth, to Funds that give the investor regular income. An added benefit is that because Unit Trusts are made up of more than one investment, the Portfolio Manager can make a decision to buy assets that are performing well, and to sell under-performing assets in order to meet the objectives on the Unit Trust, and your own investment goals. Old Mutual Namibia Unit Trusts offers a range of Unit Trust Funds with different risk profiles, from the very conservative to more aggressive Funds, in order that you can build a diversified investment portfolio tailored to meet your personal investment needs, your risk profile, and your long term investment goals. There is no contractual term with a Unit Trust, and you may sell your investment at any time. However, it is recommended that you view your Unit Trust portfolio as a medium to long-term investment. FEATURES & BENEFITS Unit Trusts offer you the flexibility to tailor an investment portfolio to suit your specific needs and time horizon. You can buy them directly from your financial adviser or broker. You can access the stock exchange without needing prior knowledge or experience in investing in equities. You gain the ability to diversify (spread) your investment across different markets, sectors, and economies - greatly reducing your overall investment risk. Money invested in Unit Trusts is easily accessible, especially when you most need it. Unit Trusts offer exciting capital growth opportunities, but should be viewed as a medium to long-term investment tool. 3

4 MAKE MONEY ON YOUR OWN MONEY Did you know that when investing, your money is working for you through a simple concept called compounding growth? SAVING WITH COMPOUND INTEREST As an example, an initial once-off investment of N$ 10,000 invested for 5 years at an annual interest rate of 10% would give you an amount of N$ 16,105 if compounded annually. This amounts to an additional N$ 1,105 above the N$ 15,000 you would have had when compounding was not used. The graph below shows three investors who each invested N$ 500 a month until they were 65, but starting at different ages. Notice the difference in contributions as the investor who invested at a later stage would have to contribute far more to achieve the same final amount. THE EFFECTS OF COMPOUND INTEREST Started at 25 Started at 35 Started at 45 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , BUT THERE S A CATCH Compound growth is only effective over time. The longer you put off investing, the longer it will take to reach your goal and the more it will cost you. And whilst few of us have the luxury of investing a lump sum, investing smaller amounts regularly over time can be just as effective to build wealth, without making too dramatic an impact on your budget. A Unit Trust offers the flexibility to change your monthly investment as your circumstances change - without you incurring penalties. We also offer the option to have your debit order amount automatically increased each year, helping you combat the ravages of inflation. 4

5 AND DON T FORGET THE RISK Unit Trust Funds come with an element of risk, based on a risk profile from 1 being low risk, to 5 being a more aggressive Fund. Lower risk Funds are made up of more cash and bond elements, whereas higher risk Funds concentrate more on the equities market across many economies. Compounding simply means making money on your original investment, as well as on the gains made in the following years (i.e. growth on growth over time). If you leave your investment over a long period of time, the investment not only grows each year, but grows exponentially. This interest is called compound interest, and is the key to long term growth and wealth. 5

6 OLD MUTUAL NAMIBIA NEDBANK NAMIBIA MONEY MARKET FUND WHO IS THE FUND FOR? The Old Mutual Nedbank Namibia Money Market Fund is suitable for investors who want a liquid investment that delivers a regular income and/or maximum capital protection. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to deliver a regular income and to outperform bank deposits over time, whilst preserving the capital invested. HOW IS THE FUND MADE UP? The Fund invests in money market securities with a maximum average maturity of 180 days. At least 35% of the portfolio is invested in Namibian instruments. DOES IT PAY A REGULAR INCOME? No. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 300 Lump Sum: N$ OLD MUTUAL NAMIBIA NEDBANK MONEY MARKET FUND COMPOSITION Months 24.7% 6-12 Months 28.9% 12+ Months 40.7% Cash & Funds on Call 5.7% 6

7 CHARGES: An initial charge of maximum 1%, which may include commission. Admin Commission: < N$ % Max. 0.6%. > N$ % Max. 0.6%. Total expense ratio (TER): 0.70% (September 2014) Service fee (included in TER): 0.6% p.a. This 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. 7

8 CHARGES: An initial charge of maximum 1%, which may include commission. Admin Commission: < N$ % Max. 0.6%. > N$ % Max. 0.6%. Total expense ratio (TER): 0.65% (September 2014) Service fee (included in TER): 0.6% p.a. This 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. 8

9 OLD MUTUAL NAMIBIA NEDBANK NAMIBIA CORPORATE FUND WHO IS THE FUND FOR? The Old Mutual Nedbank Namibia Corporate Fund is suitable for investors who want a liquid investment that delivers a regular income and/or maximum capital protection. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to deliver a regular income and to outperform bank deposits over time, whilst preserving the capital invested. HOW IS THE FUND MADE UP? The Fund invests in money market securities with a maximum average maturity of 180 days. At least 35% of the portfolio is invested in Namibian instruments. DOES IT PAY A REGULAR INCOME? No. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Lump Sum: N$ Ad-Hoc: N$ OLD MUTUAL NAMIBIA NEDBANK CORPORATE FUND COMPOSITION Months 32.0% 6-12 Months 21.9% 12+ Months 39.0% Cash & Funds on Call 7.1% 9

10 OLD MUTUAL NAMIBIA INCOME FUND WHO IS THE FUND FOR? The Old Mutual Namibia Income Fund is suitable for investors who require a regular income from their investment. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to offer to pay out a high regular income without putting the investors money at undue risk, through a portfolio of Namibian and South African interest-bearing investments. HOW IS THE FUND MADE UP? The Fund invests in local interest-bearing investments including fixed and floating rate bonds and money market instruments. The average duration of the Fund will always be less than two years. DOES IT PAY A REGULAR INCOME? No. Periodic income can be received on request. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 300 Lump Sum: N$ Ad-Hoc: N$ 300 OLD MUTUAL NAMIBIA INCOME FUND COMPOSITION Year Bonds 53.6% 3-7 Year Bonds 9.0% 7-12 Year Bonds 3.3% 12+ Year Bonds 9.0% Money Market Instruments 25.1% 10

11 CHARGES: An initial charge of maximum 1%, which may include commission. Admin Commission: < N$ % Max. 0.6%. > N$ % Max. 0.6%. Total expense ratio (TER): 0.81% (September 2014) Service fee (included in TER): 0.75% p.a. This 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. 11

12 CHARGES: The buying price of units includes the following charges: An initial charge of maximum 1%, which may include commission. Admin Commission: < N$ % Max. 0.6%. > N$ % Max. 0.6%. Compulsory charges of 0.38%. Total expense ratio (TER): 1.31% (September 2014) Service fee (included in TER): 1.2% p.a. This fee is accrued daily and paid to the management company on a monthly basis. 12

13 OLD MUTUAL NAMIBIA REAL INCOME FUND WHO IS THE FUND FOR? The Old Mutual Real Income Fund is suitable for retired investors who require a relatively low income that maintains its buying power relative to inflation. It is also suitable for investors approaching retirement who target inflation-beating returns. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to provide the highest level of income payout that can be sustained without eroding the funds. HOW IS THE FUND MADE UP? The Fund invests into bonds, money market instruments, debentures, listed property, preference shares, equities and other instruments across Namibian and South African markets. DOES IT PAY A REGULAR INCOME? The Real Income Fund has a distribution of profits on a quarterly basis. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 300 Lump Sum: N$ Ad-Hoc: N$ 300 OLD MUTUAL NAMIBIA REAL INCOME FUND COMPOSITION Namibia & SA Convertible Bonds 2.6% Namibia & SA Nominal Bonds 25.8% Namibia & SA Equities 8.4% Namibia & SA Property 8.9% International Equity 6.5% International Bonds 6.6% International Cash 0.1% International Property 3.2% Money Market Instruments* 33.8% Preference Shares 4.1% * Money market instruments include cash, NCD s and treasury bills 13

14 OLD MUTUAL NAMIBIA MANAGED FUND WHO IS THE FUND FOR? The Old Mutual Namibia Managed Fund is suitable for investors who require long term growth, with less volatility in the short term than investing in pure equities. It is suitable as a stand-alone retirement investment. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to achieve longterm inflation-beating growth. The Fund has a growth asset bias and will invest more heavily in shares. HOW IS THE FUND MADE UP? The Fund is exposed to all sectors of the Namibia and South African Market (shares, bonds and property). The Fund complies with the Namibian Retirement Fund Legislation. DOES IT PAY A REGULAR INCOME? The Namibia Managed Fund has a distribution of profits on a biannual basis. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 300 Lump Sum: N$ Ad-Hoc: N$ 300 OLD MUTUAL NAMIBIA MANAGED FUND COMPOSITION Year Bonds 5.3% 3-7 Year Bonds 3.3% 7-12 Year Bonds 1.9% 12+ Year Bonds 10.9% Financials 16.1% Industrials 19.6% International Equities 31.1% Liquid Assets 7.1% Exchange Traded Funds 0.3% Resources 4.4% 14

15 CHARGES: The buying price of units includes the following charges: An initial charge of maximum 1%, which may include commission. Admin Commission: < N$ % Max. 0.6%. > N$ % Max. 0.6%. Compulsory charges of 0.38%. Total expense ratio (TER): 1.44% (September 2014) Service fee (included in TER): 1% p.a. This 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. 15

16 CHARGES: The buying price of units includes the following charges: An initial charge of maximum 5%, which may include commission. Admin Commission: < N$ % Max. 3%. > N$ % Max. 3%. Compulsory charges of 0.49%. Total expense ratio (TER): 1.09% Service fee (included in TER): 1% p.a. This 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. 16

17 OLD MUTUAL NAMIBIA GROWTH FUND WHO IS THE FUND FOR? The Old Mutual Namibia Growth Fund is suitable for investors wishing to benefit from the wealth creation activities of Namibian and South African companies that show potential for superior growth. WHAT ARE THE OBJECTIVES OF THE FUND? The Fund aims to offer superior returns over the medium to longer term by targeting the shares of growth-style companies. HOW IS THE FUND MADE UP? The Fund invests in shares across all sectors of the stock market, focusing on shares of growth style companies from within the local Equity Markets. DOES IT PAY A REGULAR INCOME? The Namibia Growth Fund has a distribution of profits on a biannual basis. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 300 Lump Sum: N$ Ad-Hoc: N$ 300 OLD MUTUAL NAMIBIA GROWTH FUND COMPOSITION Financials 33.7% Industrials 52.0% Liquid Assets 4.4% Resources 9.9% 17

18 OLD MUTUAL NAMIBIA PROPERTY FUND WHO IS THE FUND FOR? This fund is suitable for investors seeking exposure to the property market without the potential difficulties and capital outlay of direct property investments. The investor should accept the volatility of investing in the property sector. WHAT ARE THE OBJECTIVES OF THE FUND? The fund offers investors a high income yield, accompanied by capital growth over the medium to longer term. INVESTMENT MANDATE The fund invests in selected property shares, which are identified on the basis of growth potential, quality of the entities and the value they present. The fund may also invest in international property shares. WHAT IS THE RECOMMENDED MINIMUM INVESTMENT TERM? 1 Year + 3 Year + 5 Year + WHAT IS THE RISK PROFILE OF THIS FUND? Low Risk High Risk WHAT IS THE MINIMUM INVESTMENT REQUIREMENT? Monthly: N$ 100 Lump Sum: N$ 300 Ad-Hoc: N$ 100 OLD MUTUAL NAMIBIA PROPERTY FUND COMPOSITION Property 95.0% Cash 5.0% 18

19 CHARGES: The buying price of units includes the following charges: An initial charge of maximum 5%, which may include commission. Admin Commission: < N$ % Max. 3%. > N$ % Max. 3%. Service fee: 0.85% p.a. This fee is accrued daily and paid to the management company on a monthly basis. 19

20 FOR MORE INFORMATION, PLEASE YOUR DETAILS TO: or for existing customers, call the Old Mutual Call Centre on (061) For new clients call (061) , or visit our website at ALTERNATIVELY, YOU ARE WELCOME TO CONTACT YOUR FINANCIAL ADVISER OR BROKER FOR FURTHER INFORMATION. Unit trusts are generally medium to long term investments. Past performance is no indication of future growth. It is important that you are prepared for some shorter term fluctuations as your investment moves in line with the markets. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. An annual service fee is calculated on the market value of the fund s assets (excluding income and permissible deductions) and deducted from the portfolio on a monthly basis. A schedule of fees and charges and maximum commissions is available from the company/intermediary. The daily price is the current value of the fund s assets plus interest income (minus expenses). You can easily sell your investment at the ruling price of the day (calculated at 15h00 on a forward pricing basis). The Old Mutual Nedbank Namibia Money Market Fund unit price is static and interest is declared daily at 13h00.