OLD MUTUAL UNIT TRUST MANAGERS (RF) (PTY) LIMITED ABRIDGED ANNUAL REPORT 2015
CONTENTS ABRIDGED ANNUAL REPORT Page Chairman s message to unitholders 3 to 4 Abridged financial statements as at 31 December 2015 5 to 7 Portfolio composition as at 31 December 2015 8 Investment performance as at 31 December 2015 9 Income distribution per unit (cents) as at 31 December 2015 10 Price, total expense ratio and performance fee as at 31 December 2015 11 Trustees report, important notice, statutory information 12 Unit Trust (RF) (Pty) Ltd (Registration no. 1965/008471/07) Physical address: Mutualpark, Jan Smuts Drive, Pinelands 7405 Postal address: PO Box 207, Cape Town 8000 Telephone: (021) 503 1770 Client Support Service centre: 0860 234 234 Facsimile: E-mail: Internet: (021) 509 7100 Client Support unittrusts@oldmutual.com www.omut.co.za Please note: This Abridged Annual Report contains limited information on s retail funds. For more detailed information on these funds please go to www.omut.co.za or call 0860 234 234. Copies of the audited financial statements and the report of the Shari ah Supervisory Board may be obtained, free of charge, and on request, from the management company. Printed on paper that is made with concern for the environment. To show that you care for the environment, opt to receive your correspondence electronically in future by contacting our service centre. 2
CHAIRMAN S MESSAGE TO UNITHOLDERS 2015 was a difficult year for South Africa and other emerging market economies. The global economy and commodity prices weakened further and oil producers, together with the mining sector, were hard hit. China s growth has slowed significantly, after remarkable productivity-led growth over the past decade, with less emphasis on infrastructure. Recovery in the US has been relatively slow triggering fears of rising interest rates. Against this weak backdrop and experiencing the effects of the widespread drought on agriculture, South Africans will also remember December 2015 as the month of having three Finance Ministers in less than one week. The dismissal of respected Finance Minister Nhlanhla Nene, and his replacement with little-known David van Rooyen, caused a dramatic loss of investor confidence, evidenced by a slump in the rand and a sell-off in bonds with a surge in yields. The re-appointment of former Finance Minister Pravin Gordhan a few days later restored some measure of calm, but the events caused significant and lasting damage. HIGHER INFLATION AND TAXES The damage includes an impact in the shorter term, as the failure of the rand to retrace its losses will result in higher than expected inflation in 2016 and probably more interest rate increases than would otherwise have been necessary. In addition, the higher bond yields and deteriorating growth outlook will put further pressure on South Africa s fiscal situation. ECONOMIC GROWTH OUTLOOK LOW Higher food prices due to the drought, the necessity for a brake on government spending and the relatively weak position of household finances have adversely impacted the economic outlook for 2016. As a result of the weak data, 2015 and 2016 growth forecasts have generally been cut to around 1% for both years, with risks perceived to be skewed to the downside. JUNK STATUS LOOMS Against this backdrop, concerns are relentlessly mounting that South Africa will lose its investment grade status in the not-too-distant future an event that could have a further negative impact on the already weak growth potential of the economy and, if effected, could cause significant economic and market turmoil in the short term. It should be noted, however, that it is the rating on hard-currency debt that is under threat in other words, the rating relating to domestic, randdenominated government debt (the bulk of the national debt) is not in danger. LOOKING AHEAD With the world economy likely to grow at a moderate rate, and in light of the aforementioned factors, a scenario of low growth, a weak rand and inflationary pressures is likely. There will, however, be opportunity for sectors that benefit from currency weakness. NOT ALL DOOM AND GLOOM In the aftermath of the events in December, we have seen a broad recognition of the reality that we are a small open economy and reliant on foreign capital and trade to grow and meet the aspirations of our people. We have recently seen much-improved dialogue between Government and the business and commercial sectors in an effort to find solutions to South Africa s economic challenges. It is crucial that South Africa make the most of this crisis to address structural impediments to growth. As the National Development Plan says, The future is ours, we must make it work. And making it work requires collaboration between Government, business and labour. STICK TO YOUR PLAN We can never predict the future, but we ve learnt a lot from the past. Amid turbulent times and stock market volatility, investors need to stay calm and ignore the noise. Most of all, resist the temptation to react impulsively and remember that investing is for the long term. Stick to a plan based on sound investment principles. OUR KEY INVESTMENT PRINCIPLES A comprehensive financial plan helps build confidence regardless of what the market is doing. A diversified portfolio will help to manage your risk. Always consider your investments as a whole. It s time in the market that counts, not timing the market. Cash is unlikely to deliver the returns needed to outpace inflation over the long term. Investing regularly over the longer term mostly generates the best returns. Invest with the assistance of a financial planner who is experienced in managing different market conditions. Each investor s solution is unique. HIGHLIGHTS Unit Trusts Tax-Free Investment National Treasury has introduced new regulations to the Income Tax Act of South Africa that make investments of R30 000 per tax year (subject to a maximum of R500 000 over your lifetime) 100% tax free. This means that your investment, any income earned and all capital growth are free of income tax, dividend tax and capital gains tax. 3
Unit Trusts was quick to launch complying investment products, offering a market-leading tax-free solution. To invest in our tax-free product, visit www.omut.co.za or contact your adviser. You can also call our service centre at 0860 234 234 or send an email to unittrusts@oldmutual.com. ENHANCEMENTS TO OUR STRATEGY FUNDS We have introduced a number of enhancements to our Strategy range to offer appropriate returns aimed at meeting long-term goals, including: Introducing the Moderate Balanced, our new fund designed to deliver inflation plus 3-4% Renaming the SYm metry range to Launching two new multi-manager funds, namely the Manager Aggressive Balanced of s and the Manager Maximum Return of s We will be balloting all investors involved regarding the possible merger of the Enhanced Income into the Real Income. This will improve the ability of investors in the Enhanced Income to meet the objective of a growing income stream over time. The Investors will be celebrating its 50th anniversary in May 2016 and has delivered great long-term performance over all periods. IT IS YOUR TRUST THAT DRIVES US I would like to take this opportunity to thank you for your continued trust and support. I am humbled by the tremendous effort, passion and dedication of our employees, financial advisers, brokers, management and the Board of Directors in delivering excellent results in a very volatile environment. It is your commitment and focus that enables us to deliver to clients needs. We remain focused on understanding your goals and helping you to achieve them as we continue to build for the future. Peter de Beyer Chairman: Unit Trusts PERFORMANCE AND AWARDS The Global Equity and International Growth of s both won awards in their respective categories at the 20th annual Raging Bull Awards held in January 2016. The Global Equity went home with two wins. For the fourth year in a row, the fund was awarded a Raging Bull Award for Top Performance by a Domestic Collective Investment Scheme for the three-year period ended 31 December 2015, as the Best (SA- Domiciled) Global Equity General. It was also recognised with a certificate for Best Performance on the basis of Risk-adjusted Returns by a Domestic Collective Investment Scheme for the five-year period ended 31 December 2015, in the category (SA Domiciled) Global Equity General s. The International Growth of s received a certificate for Top Performance by a Domestic Collective Investment Scheme for the three-year period ended 31 December 2015, in the category (SA-Domiciled) Global Asset Flexible s. These awards showcase the excellence of our offshore offering in both the global equity and global multi-asset space, offering diversified exposure to quality assets across the globe. 4
ABRIDGED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2015 R 000 Balanced CLASSIC INVESTMENT COLLECTION FUNDS Flexible Maximum Return of s Moderate Balanced Money Market Net (loss)/income from operations before finance costs 1 101 538 372 499 28 986 570 653 958 Total finance costs 464 282 104 423 3 297 367 653 958 Distributions 462 264 103 899 3 273 366 653 958 Withholding tax on foreign dividends 2 018 524 24 1 - Change in net assets attributable to unitholders 637 256 268 076 25 689 203 - Total assets 16 564 420 4 420 706 290 791 18 252 10 436 067 Total liabilities, excluding net assets attributable to unitholders 259 160 57 294 3 408 299 59 455 Net assets attributable to unitholders 16 305 260 4 363 412 287 383 17 953 10 376 612 Real Income Stable Growth Albaraka Balanced Albaraka Equity Bond Net (loss)/income from operations before finance costs 261 201 327 763 96 948 140 332 ( 18 859) Total finance costs 208 019 193 997 31 050 33 716 33 405 Distributions 205 532 193 920 30 243 31 479 33 405 Withholding tax on foreign dividends 2 487 77 807 2 237 - Change in net assets attributable to unitholders 53 182 133 766 65 898 106 616 ( 52 264) Total assets 4 488 798 4 953 166 1 156 695 2 144 747 379 470 Total liabilities, excluding net assets attributable to unitholders 49 175 107 195 18 400 137 099 16 591 Net assets attributable to unitholders 4 439 623 4 845 971 1 138 295 2 007 648 362 879 Capital Builder Core Diversified Dynamic Floor Enhanced Income Financial Services Net (loss)/income from operations before finance costs 66 295 5 181 198 587 65 477 3 305 Total finance costs 88 285 6 362 85 976 127 466 21 095 Distributions 87 778 6 343 83 208 127 466 21 095 Withholding tax on foreign dividends 507 19 2 768 - - Change in net assets attributable to unitholders ( 21 990) ( 1 181) 112 611 ( 61 989) ( 17 790) Total assets 1 972 072 226 308 2 671 504 2 065 771 712 208 Total liabilities, excluding net assets attributable to unitholders 44 426 3 478 46 014 31 256 12 809 Net assets attributable to unitholders 1 927 646 222 830 2 625 490 2 034 515 699 399 5
ABRIDGED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2015 R 000 Global Bond Feeder Global Currency Feeder Global Emerging Market Global Equity Global FTSE RAFI All World Index Feeder Net (loss)/income from operations before finance costs 23 412 84 243 165 330 2 615 165 142 730 Total finance costs 68 1 597 21 059 43 349 - Distributions 68 1 597 17 851 22 251 - Withholding tax on foreign dividends - - 3 208 21 098 - Change in net assets attributable to unitholders 23 344 82 646 144 271 2 571 816 142 730 Total assets 106 344 381 317 1 323 857 10 957 426 544 743 Total liabilities, excluding net assets attributable to unitholders 134 1 786 18 589 19 987 322 Net assets attributable to unitholders 106 210 379 531 1 305 268 10 937 439 544 421 Gold Growth High Yield Opportunity Income Industrial Net (loss)/income from operations before finance costs ( 15 102) 57 246 (238 584) 56 775 186 611 Total finance costs 144 27 603 145 451 79 898 18 445 Distributions - 27 524 145 070 79 898 18 342 Withholding tax on foreign dividends 144 79 381-103 Change in net assets attributable to unitholders ( 15 246) 29 643 (384 035) ( 23 123) 168 166 Total assets 296 546 1 633 308 2 536 730 1 336 397 1 531 949 Total liabilities, excluding net assets attributable to unitholders 440 16 874 58 593 19 143 18 343 Net assets attributable to unitholders 296 106 1 616 434 2 478 137 1 317 254 1 513 606 Interest Plus International Growth of s Investors' Managed Alpha Equity Mid & Small- Cap Net (loss)/income from operations before finance costs 106 949 78 761 907 409 30 472 6 495 Total finance costs 106 063-268 197 5 611 26 233 Distributions 106 063-267 178 5 565 26 233 Withholding tax on foreign dividends - - 1 019 46 - Change in net assets attributable to unitholders 886 78 761 639 212 24 861 (19 738) Total assets 1 605 725 363 091 14 506 638 460 808 970 182 Total liabilities, excluding net assets attributable to unitholders 9 632 633 184 938 2 740 7 969 Net assets attributable to unitholders 1 596 093 362 458 14 321 700 458 068 962 213 6
ABRIDGED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2015 R 000 Mining & Resources RAFI 40 Tracker SA Quoted Property Top 40 Old Mutual Top Companies Net (loss)/income from operations before finance costs ( 212 069) (59 058) 666 721 42 668 56 635 Total finance costs 41 547 25 797 236 636 20 933 48 176 Distributions 41 376 25 567 236 105 20 623 48 073 Withholding tax on foreign dividends 171 230 531 310 103 Change in net assets attributable to unitholders ( 253 616) (84 855) 430 085 21 735 8 459 Total assets 762 112 644 894 5 809 486 608 922 2 063 576 Total liabilities, excluding net assets attributable to unitholders 15 086 19 604 53 715 2 225 31 390 Net assets attributable to unitholders 747 026 625 290 5 755 771 606 697 2 032 186 Aggressive Balanced of s Balanced of s MULTI-MANAGER FUNDS Cautious of s Defensive of s Enhanced Income of s Net (loss)/income from operations before finance costs 21 1 106 111 10 476 443 195 11 273 Total finance costs - 383 920 10 876 192 323 13 423 Distributions - 383 211 10 863 191 996 13 419 Withholding tax on foreign dividends - 709 13 327 4 Change in net assets attributable to unitholders 21 722 191 ( 400) 250 872 (2 150) Total assets 2 319 15 956 342 292 583 6 870 607 230 822 Total liabilities, excluding net assets attributable to unitholders 5 223 976 4 557 87 439 4 016 Net assets attributable to unitholders 2 314 15 732 366 288 026 6 783 168 226 806 Equity of s Maximum Return of s Net (loss)/income from operations before finance costs 8 411 36 Total finance costs 5 199 - Distributions 5 143 - Withholding tax on foreign dividends 56 - Change in net assets attributable to unitholders 3 212 36 Total assets 288 692 1 213 Total liabilities, excluding net assets attributable to unitholders 5 592 3 Net assets attributable to unitholders 283 100 1 210 7
PORTFOLIO COMPOSITION (%) AS AT 31 DECEMBER 2015 Cash and cash equivalents* Money market instruments Derivatives at fair value # Bonds Unit trusts Equity Local Foreign Local Foreign Balanced 15.16 4.99-14.36-28.37 37.12 - Flexible 13.82 0.02-9.03-27.17 48.37 1.59 Maximum Return of s 12.19 - - - 43.67 44.14 - - Moderate Balanced 26.22 11.61-13.45-25.39 23.33 - Money Market 100.00 - - - - - - - Real Income 14.32 6.51-50.95-8.74 12.00 7.48 Stable Growth 11.07 21.42-27.85-26.78 12.88 - Albaraka Balanced 7.52 26.47-5.40 - - 40.38 20.23 Albaraka Equity 6.72 - - - - - 69.92 23.36 Bond 2.81 - - 97.19 - - - - Capital Builder 20.76 13.86-10.88 3.55-50.95 - Core Diversified 0.13 - - 16.08 24.45 6.06 53.28 - Dynamic Floor 14.75 24.13-16.86 - - 19.49 24.77 Enhanced Income 3.21 4.46-89.52 - - 2.81 - Financial Services 0.25 - - - 1.54-98.21 - Global Bond Feeder 0.95 - - - - 99.05 - - Global Currency Feeder 2.58 - - - - 97.42 - - Global Emerging Market 0.46 - - - - - 12.27 87.27 Global Equity 5.09 - - - - - - 94.91 Global FTSE RAFI All World Index Feeder 0.43 - - - - 99.57 - - Gold 1.90 - - - - - 61.98 36.12 Growth 0.07 - - - 1.10 16.65 82.18 - High Yield Opportunity 0.05 - - - 2.73-97.22 - Income 1.45 6.88-91.67 - - - - Industrial 0.16 - - - 3.82-96.02 - Interest Plus 2.56 51.56-45.88 - - - - International Growth of s 18.21 - - 10.79-71.00 - - Investors' 0.92 - - - 3.04-96.04 - Managed Alpha Equity 0.75 - - - - - 99.25 - Mid & Small-Cap 0.02 - - - - - 99.98 - Mining & Resources 3.98 - - - - - 79.64 16.38 RAFI 40 Tracker 2.20 - - - - - 97.80 - SA Quoted Property 0.03 - - - 1.77-98.20 - Top 40 0.24 - - - - - 99.76 - Top Companies 0.22 - - - 2.67-97.11 - Aggressive Balanced of s 0.51 - - - 70.95 28.54 - - Balanced of s 0.04 - - - 66.11 33.85 - - Cautious of s 0.06 - - - 75.40 24.54 - - Defensive of s 0.06 - - - 65.29 34.65 - - Enhanced Income of s 0.10 - - - 99.90 - - - Equity of s 0.04 - - - 99.96 - - - Maximum Return of s 0.93 - - - 50.58 48.49 - - * Only capital, current and call deposits are included. # Where portfolios hold SAFEX instruments the fair value of derivative assets and liabilities is zero. 8
INVESTMENT PERFORMANCE (%) AS AT 31 DECEMBER 2015 1 YEAR 3 YEARS 5 YEARS 7 YEARS (Class A) (Class R) (Class A) (Class R) (Class A) (Class R) (Class A) (Class R) Balanced 7.2 7.6 11.6 12.7 11.6 12.5 12.5 13.4 Flexible 8.9 9.3 14.2 15.3 12.4 13.3 14.5 15.3 Maximum Return of s 15.6 - - - - - - - Moderate Balanced * - - - - - - - - Money Market 6.4-5.7-5.6-6.3 - Real Income 5.8-7.1-8.6-9.7 - Stable Growth 7.2-9.2-9.8-10.2 - Albaraka Balanced 9.4-10.7-9.2 - - - Albaraka Equity 7.4-11.9-13.1-14.3 - Bond - -4.4-1.9-6.0-6.2 Capital Builder 2.0-5.2-5.3-6.0 - Core Diversified * - - - - - - - - Dynamic Floor 7.4-9.6-9.7-10.3 - Enhanced Income 2.7-4.1-5.8-6.3 - Financial Services -0.1 0.2 13.7 14.0 15.6 15.9 17.0 17.3 Global Bond Feeder 27.9-17.7-17.5-11.4 - Global Currency Feeder 29.2 - - - - - - - Global Emerging Market 10.2-14.5 - - - - - Global Equity 35.3 35.9 40.1 41.0 32.0 32.6 22.2 22.9 Global FTSE RAFI All World Index Feeder 26.1-29.8 - - - - - Gold -7.5-8.7-12.6-12.5-9.4-9.4-3.6-3.4 Growth 3.7 3.4 12.1 12.0 10.3 10.1 14.2 14.2 High Yield Opportunity -8.6-6.9-6.9-12.6 - Income - 4.1-4.7-6.1-6.8 Industrial 12.8 13.1 19.4 19.8 18.4 18.7 20.8 21.1 Interest Plus 6.5-5.8 - - - - - International Growth of s 29.2-30.0-24.8-16.7 - Investors' 6.2 6.6 15.6 16.1 14.4 14.6 16.5 16.7 Managed Alpha Equity 7.1-14.5-15.1-17.5 - Mid & Small-Cap -0.2 0.3 10.6 11.2 12.5 13.1 16.7 17.4 Mining & Resources -21.0-20.8-10.1-9.9-8.8-8.5 0.2 0.5 RAFI 40 Tracker -8.4-4.1-7.2-12.3 - SA Quoted Property 12.4-15.4-17.1-18.0 - Top 40 6.7-12.0-12.2-15.2 - Top Companies 2.4 2.2 12.3 12.3 10.7 10.6 14.5 14.5 Aggressive Balanced of s* - - - - - - - - Balanced of s 6.7-10.5-11.1-12.3 - Cautious of s 4.0-6.7-6.6 - - - Defensive of s 6.3-10.0-9.8-10.3 - Enhanced Income of s 5.0-5.3-6.5-7.3 - Equity of s 2.2-9.7-9.3-12.9 - Maximum Return of s* - - - - - - - - * No performance figures are available as these funds have traded for less than one year. 9
INCOME DISTRIBUTION PER UNIT (CENTS) AS AT 31 DECEMBER 2015 MARCH 2015 JUNE 2015 SEPTEMBER 2015 DECEMBER 2015 (Class A) (Class R) (Class A) (Class R) (Class A) (Class R) (Class A) (Class R) Balanced - - 17.19 19.69 - - 17.08 19.63 Flexible - - 11.69 14.20 - - 12.13 14.76 Maximum Return of s - - - - - - 2.50 - Moderate Balanced - - 1.41 - - - 3.12 - Money Market - - - - - - - - Real Income 3.34-3.18-3.35 2.60 - Stable Growth - - 5.39 - - - 5.28 - Albaraka Balanced - - 0.91 - - - 2.95 - Albaraka Equity - - 19.47 - - - 11.51 - Bond - - - 14.02 - - - 13.98 Capital Builder - - 4.32 - - - 4.03 - Core Diversified - - 2.37 - - - 2.43 - Dynamic Floor - - 6.36 - - - 6.59 - Enhanced Income 3.41 3.58-3.41-3.32 - Financial Services - - 14.48 16.64 - - 20.97 23.13 Global Bond Feeder - - - - - - - - Global Currency Feeder - - - - - - 0.93 - Global Emerging Market - - - - - - 0.51 - Global Equity - - 0.35 8.51 - - - 3.55 Global FTSE RAFI All World Index Feeder - - - - - - - - Gold - - - - - - - - Growth - - 26.84 22.74 - - 27.35 23.98 High Yield Opportunity - - 54.69 - - - 34.20 - Income - 1.75-1.72-1.74-1.64 Industrial - - 12.72 16.32 - - 11.38 15.12 Interest Plus 1.05-1.02-0.56-1.10 - International Growth of s - - - - - - - - Investors' - - 350.17 406.68 - - 239.90 355.84 Managed Alpha Equity - - 75.64 - - - 30.41 - Mid & Small-Cap - - 30.80 36.38 - - 8.20 13.82 Mining & Resources - - 154.81 163.32 - - 69.40 76.43 RAFI 40 Tracker - - 7.33 - - - 4.75 - SA Quoted Property 9.97-10.72-9.63-7.24 - Top 40 7.28-9.89-9.74-2.52 - Top Companies - - 39.73 35.13 - - 31.34 27.39 Aggressive Balanced of s - - - - - - - - Balanced of s 1.42-4.07-1.68-10.42 - Cautious of s 1.64-1.81-2.24-2.79 - Defensive of s 2.71-3.95-2.95-6.70 - Enhanced Income of s 3.09-3.77-3.69-3.90 - Equity of s - - - - - - 14.12 - Maximum Return of s - - - - - - - - 10
PRICE, TOTAL EXPENSE RATIO (TER) AND PERFORMANCE FEE AS AT 31 DECEMBER 2015 LAST PUBLISHED PRICE TOTAL EXPENSE RATIO (TER) PERFORMANCE FEE COMPONENT OF TER (31/12/2015) Percentage per Class (%) % (Class A) (Class R) (Class A) (Class R) Balanced 1 477.17 1 479.71 2.37 1.37 0.89 Flexible 1 518.54 1 521.15 2.37 1.36 0.93 Maximum Return of s 300.67-2.27 - N/A Moderate Balanced 206.58-2.17 - N/A Money Market 100.00-0.58 - N/A Real Income 276.83-1.43 - N/A Stable Growth 297.82-2.01-0.54 Albaraka Balanced 292.80-1.51 - N/A Albaraka Equity 1 990.17-1.77 - N/A Bond - 333.88-0.88 N/A Capital Builder 250.81-1.82-0.65 Core Diversified 201.15-0.84 - N/A Dynamic Floor 459.88-2.08-0.85 Enhanced Income 243.96-1.15 - N/A Financial Services 1 386.74 1 388.60 1.45 1.17 N/A Global Bond Feeder 621.45-1.92 - N/A Global Currency Feeder 376.30-1.07 - N/A Global Emerging Market 346.17-2.56-0.74 Global Equity 2 437.51 2 456.68 2.08 1.23 N/A Global FTSE RAFI All World Index Feeder 448.10-1.16 - N/A Gold 563.96 570.49 1.75 1.18 N/A Growth 2 883.95 2 880.62 1.25 1.33 0.19 High Yield Opportunity 1 603.91-1.44 - N/A Income - 121.18-0.87 N/A Industrial 2 666.50 2 670.34 1.45 1.17 N/A Interest Plus 201.49-0.64 - N/A International Growth of s 588.31-2.78 - N/A Investors' 41 264.31 41 377.56 1.60 1.16 0.74 Managed Alpha Equity 8 869.74-1.55-0.65 Mid & Small-Cap 1 859.44 1 864.90 1.73 1.16 N/A Mining & Resources 4 508.57 4 514.90 1.45 1.16 N/A RAFI 40 Tracker 279.19-0.89 - N/A SA Quoted Property 995.67-1.44 - N/A Top 40 904.29-0.71 - N/A Top Companies 3 218.81 3 214.94 1.13 1.16 0.25 Aggressive Balanced of s 201.52-4.97 - N/A Balanced of s 899.41-2.35 - N/A Cautious of s 227.95-1.59 - N/A Defensive of s 631.67-2.11 - N/A Enhanced Income of s 248.27-1.40 - N/A Equity of s 913.52-1.16 - N/A Maximum Return of s 206.66-5.42 - N/A 11
OLD MUTUAL UNIT TRUST MANAGERS (RF) (Pty) Ltd ABRIDGED ANNUAL REPORT 2015 TRUSTEES REPORT Standard Bank of South Africa Limited provides custodian services for a fee as disclosed in the statement of comprehensive income. Report in terms of section 70(f) of the Collective Investment Schemes Control Act (the Act), No. 45 of 2002, for the period 1 January 2015 to 31 December 2015 Unit Scheme and Investors Scheme. We confirm that according to the records available to us, no losses were suffered in the portfolios and no investor was prejudiced as a result thereof. We conclude our report by stating that we reasonably believe that the Manager has administered the Schemes in accordance with: (i) the limitations imposed on the investment and borrowing powers of the manager by the Act; and (ii) the provisions of the Act and the deed. Standard Chartered Bank We hereby confirm that as required in terms of section 70 (3) of the Collective Investment Schemes Control Act, No. 45 of 2002, as amended (the Act), we have satisfied ourselves that every statement of comprehensive income, statement of financial position and other return prepared by the Manager of the Scheme in terms of section 90 of the Act fairly represent the assets and liabilities, as well as the income and distribution of income, of every portfolio of the Scheme administered by the Manager of the Scheme. IMPORTANT NOTICE: In terms of the Collective Investment Schemes Control Act, the trustees of all unit trust companies must report on their adherence to limitations imposed on investing, borrowing powers and the general provisions of the Act and Trust Deed. Our trustees, Standard Bank of South Africa Limited and Standard Chartered Bank, have released Unit Trusts report for 2015. The report does not detail any material breaches and is available from the Manager on request and may be viewed at the registered offices of the Manager. STATUTORY INFORMATION: Only the A and R Class fund portfolios have been included in this Abridged Annual Report. Performance figures are only disclosed for funds that have been in existence for more than one year. A fund portfolio is identical for all the respective classes of that fund. Different classes purely reflect different fee structures, not different portfolio compositions. The A and R Classes have been selected for this Annual Report as these are the only two classes of units which a retail investor can purchase directly from Unit Trust (RF) (Pty) Ltd. Note that full details of all the funds and classes are available in the full Annual Report. All performance figures are based on lump sum investments to December 2015. Unit trusts are generally medium- to long-term investments. Past performance is no indication of future growth. Shorter term fluctuations can occur 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. Unit trusts can engage in borrowing and scrip lending. The fund s Total Expense Ratio (TER) reflects the percentage of the average Net Asset Value of the portfolio that was incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. A schedule of fees, charges and maximum commissions is available from the company. You may sell your investment at the ruling price of the day (calculated at 15h00 on a forward pricing basis and 17h00 at month-end for the RAFI 40 Tracker, Top 40 and the Equity of s). The Money Market unit price aims to be static but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13h00), but may also include any gain/loss on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the fund. Specialist equity funds may hold a greater risk as exposure limits to a single security may be higher. A feeder fund is a portfolio that, apart from assets in liquid form, consists solely of participatory interests in a single portfolio of a collective investment scheme. A fund of funds unit trust invests only in other collective investment schemes, which may levy their own charges. Certain funds may be capped to be managed in accordance with their mandates. is a member of the Association for Savings and Investment SA. Source: Morningstar. The performance is calculated on a NAV-NAV basis and does not take any initial fees into account. Income is reinvested on the ex-dividend date. Actual investment performance will differ based on the initial fees applicable, the actual investment date and the date of reinvestment of income. The trademarks Research Affiliates, amental Index, amentals Weighted and RAFI are the exclusive intellectual property of and are being used under licence with Research Affiliates, LLC. Any use of these trade names and logos without the prior written permission of Research Affiliates, LLC is expressly prohibited. amental Index, the non-capitalisation method of creating and weighting an index of securities, is the patent-pending property of Research Affiliates, LLC (Patent Pending. Publ. Nos. US-2005-0171884-A1, US-2006-0015433-A1, US-2006-0149645-A1, US-2007-0055598-A1, WO 2005/076812, WO 2007/078399 A2 and EPN 1733352).