Old Mutual Investors comment - Sep 03 - Fund Manager Comment20 Oct 2003
The portfolio was moved a little more towards a pro-cyclical position as the news on the global economy improved during the month. During the quarter major buys were the mining house stocks Anglo American and BHP Billiton. The environment remains consumer friendly and the fund manager's added to this sector selectively.
In addition to the big mining stocks the fund manager's also started a new holding in listed property company Growthpoint. The property sector looks likely to continue to benefit from more interest rate cuts.
The fund was also marginal sellers of Barloworld, Tigerbrands, Steinhoff, Sanlam and Richemont.
The portfolio remains fairly fully invested.
Old Mutual Investors Fund Focus - Fund Manager Comment26 Sep 2003
The portfolio was moved a little more towards a pro-cyclical position as the news on the global economy improved during the month. Major buys were the mining house stocks Anglo American and BHP Billiton. The fund managers lightened a little in Sasol, which is more defensive, but it remains one of the funds largest holdings.
In addition to the big mining stocks we also started a new holding in listed property company Growthpoint. The property sector looks likely to continue to benefit from more interest rate cuts.
The fund managers were also slight sellers of Barloworld, Tigerbrands, Steinhoff and Richemont.
The portfolio remains fairly fully invested.
Old Mutual Investors comment - Jun 03 - Fund Manager Comment11 Aug 2003
The performance of the stock market remained closely linked to the volatile currency over the quarter. The first of a number of expected interest rate cuts was implemented, giving a boost to the consumer orientated shares.
Trading activity over the quarter was fairly active and concentrated mostly on some switches within sectors. In the financial sector the fund manager's added significantly to the funds holding in Absa while reducing the funds stakes in Nedcor, Firstrand and Investec. The fund manager's also added a little to Sanlam.
Within the resources arena the fund manager's added to the funds already large stake in Anglos as well as to Kumba and Sappi. The fund manager's reduced the funds gold holdings further and also lightened Amplats, Iscor and Sasol. In the industrial field the fund manager's were buyers of MTN, SAB-Miller, Naspers and Imperial.
Old Mutual Investors comment - Mar 03 - Fund Manager Comment20 May 2003
Share prices dropped across all sectors of the JSE this past quarter. The strong rand, royalty tax on mines and the uncertainty regarding the so-called financial charter were among the factors weighing on market sentiment. The war in Iraq finally started but now looks to be progressing slower than anticipated, with obvious consequences for confidence and the long awaited US led economic recovery. The price/earnings ratio on the FTSE/JSE All Share index has dropped to 9,0 while that of the bank sector has dropped to only 7,9. These are the lowest levels in many years.
Major sales during the quarter were Iscor, where the fund manager's accepted the part offer at R32 per share, Billiton, SAB Miller and gold shares Harmony and Goldfields. Largest buys were Telkom, where the fund manager's participated in its listing, and they built up a new holding in Foschini. On Amplats the fund manager's sold shares early in the quarter at a very attractive price and bought back in March at a much lower price.
Old Mutual Investors Fund Focus - General Market Analysis04 Apr 2003
Uncertainty is the enemy of the financial markets and we have seldom seen less clarity on global political issues than at present. The potential war in Iraq and the tensions it is causing among nations weighed heavily on investor sentiment. In the light of these unresolved political tensions global financial markets have been weak.
South African investors have also stayed on the sidelines awaiting greater clarity. In addition the strong rand has had a further negative impact on rand hedge shares.
The Investors' Fund reduced its holding in Angloplats following a strong price run in January. The fund manager's added a few ABSA stocks and started a new holding in Foschini. The fund manager's also took the opportunity of the Iscor share offer to sell 22% of the funds shares in this company at the attractive price of R33 per share.
Old Mutual Investors comment - Dec 02 - Fund Manager Comment05 Feb 2003
Rand strength was the main feature during the quarter and resulted in rand hedge shares and foreign holdings performing poorly, while bonds, financials and industrials fared far better. During December, though, financials came under pressure in sympathy with lower international share prices.
Overall, the fund performed relatively well as it does not hold any foreign assets other than a small dollar cash position. Local industrials, such as Tiger Brands, Nampak, MTN and most of the retailers, surprised the market with better than expected results. The fund manager's believe this is a reflection of the fairly strong underlying economy.
The recent volatility in local share prices provided an opportunity to enhance the portfolio's performance. The fund manager's added to Anglo while trimming some specific resources counters, thereby not increasing the rand hedge exposure, but reducing the risk to a specific commodity. The fund manager's have also increased the media exposure while trimming exposure to the insurance sector during December following the recovery in international equity prices during October and November.
The recent rand strength should take the pressure off interest rates and we may well see rate cuts earlier in 2003 than previously expected. The fund manager's remain positive on domestic equities.