Old Mutual Namibia Managed Fund

PORTFOLIO MANAGER’S COMMENTS

The fund performed very well during the fourth quarter as it shared in the strong performance of both local and offshore equities. This stellar performance during the quarter contributed to the handsome reward that investors have received over the last four years. This fund has returned in excess of 20% a year since 2003. 

We followed an aggressive approach to the asset allocation of the fund. The equity exposure varied between 70% and 75% and we added to the local quoted property exposure. The aggressive equity stance partly reflects our positive view on global equities. We have added to this asset class.

Within equities, the overweight positions in resources counters were trimmed. We sold diversified miners and lightened both gold and platinum shares. However, we did not want to lose the rand-hedge qualities of the portfolio and hence we continued to add to Richemont. The exposure to local industrials was also increased as some of these counters still appear attractively priced after the selldown during the second quarter.

This balanced fund still has a material exposure to equities, which could result in some volatility going forward. We have reduced the exposure to local equities in favour of offshore equities. This step will reduce the risk somewhat. The fixed interest component will continue to act as a buffer against shorter term volatility. We maintain our view that equities – local and international counters – will outperform the other asset classes and, hence, we retain our strategic overweight position in this asset class.

INVESTMENT AIM

The fund aims to offer long term growth, significantly in excess of inflation. It invests in a spread of Namibian and South African share (equity), property, bond and money markets. The fund manager actively moves between and within these investments to take advantage of changing economic and market conditions. The fund's portfolio also conforms to regulations governing retirement funds. A portion of the fund may be invested offshore.

WHO SHOULD INVEST?

• The fund is ideal for investors wanting a broad exposure to the market, but with a lower risk than pure equity (share) funds.
• It is also suitable for individual and institutional retirement savings as this unit trust complies with Namibian retirement fund legislation.

PERFORMANCE ENVIRONMENT

The fund strives to outperform the Category Average which consists of the Namibian Managed Prudential Funds.

LAUNCH DATE

• 15 November 1999

FUND MINIMUMS

• Monthly: N$500
• Lump sum: N$5 000

DECLARATION DATES

• 30/06: Distribution 8.15c per unit
• 31/12: Distribution 7.88c per unit

CHARGES

The buying price of units includes the following charges:

• An initial charge of maximum 5%, which may include commission.
                                   Admin      Commission

< N$100 000                  2%          Max. 3%
> N$100 000              0.25%          Max. 3% 


• Compulsory charges of 0.38%.
  
  Service fee: 1% (calculated on the market value of the fund's assets and deducted from the portfolio monthly)
  Additional charges incurred by the fund are deducted from its portfolio.
  

MARKET VALUE

N$53 Million

PAST PERFORMANCE

• 1 year:  27.4%
• 3 years: 27.4% p.a.
• 5 years: 20.2% p.a.
• 7 years: 17.1% p.a.

CATEGORY AVERAGE

• 1 year:  19.0% p.a.
• 3 years: 22.9% p.a.
• 5 years: 15.1% p.a.
• 7 years: 12.9% p.a.

(Figures as at 31 December 2006, based on a lump sum investment excluding charges (Bid-Bid prices). Source: Standards & Poor's Fund Services)

PORTFOLIO COMPOSITION (31/12/2006)

TEN LARGEST HOLDINGS (31/12/2006)

STATUTORY INFORMATION

Unit trusts are generally medium to long term investments. The value of units may go down as well as up, and past performance is no indication of future growth. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. You can easily sell your units at the ruling price of the day (calculated on a forward pricing basis at 15h00). Commission and incentives may be paid, and if so, are included in the overall costs.