DECEMBER 2022

MSCI AA
E SG RAT I NGS
CCC B BB BBB A AA AAA

OLD MUTUAL BALANCED FUND

FUND INFORMATION

RISK PROFILE ESG FUND RATING

The environmental, social and governance (ESG) fund ratings are based
on the exposure of the underlying assets held to industry-specific
Low Low to Moderate Moderate High
Moderate to High ESG risks and the ability to manage those risks relative to peers.

RECOMMENDED INVESTMENT TERM

FUND OBJECTIVE
This fund aims to achieve long-term inflation-beating growth. The
1 year+ 2 years+ 3 years+ 5 years+ 7 years+ fund has a growth asset bias and will invest more heavily in shares.
The portfolio manager actively allocates to other asset classes to
BENCHMARK: take advantage of changing market conditions and to manage
CPI the fund’s volatility.

PERFORMANCE TARGET: WHO IS THIS FUND FOR?

CPI + 4% to 5% p.a. (net of fees)
This fund is suitable for investors wanting moderate to high long-
Performance is targeted over the recommended minimum investment
term and is not guaranteed. term growth, with less volatility in the short term than pure equity.
It is suitable as a stand-alone retirement investment.
ASISA CATEGORY:
South African – Multi-Asset – High Equity INVESTMENT MANDATE
The fund is exposed to all sectors of the market (shares, bonds and
LAUNCH DATE:
property) and may gain exposure to foreign assets up to a maximum
01/03/1994
of 45% of its portfolio. Derivatives may be used for efficient portfolio
SIZE OF FUND: management purposes.
R20.7bn
REGULATION 28 COMPLIANCE
DISTRIBUTIONS: (Half-yearly)* The fund complies with retirement fund legislation. It is therefore
Date Dividend Interest Total Total % suitable as a stand-alone fund in retirement products where
31/12/2022 12.46c 18.96c 31.42c 1.65%
Regulation 28 compliance is specifically required. 
30/06/2022 9.33c 12.92c 22.25c 1.23%
* Class A fund distributions

TAX REFERENCE NUMBER:

9440/007/60/8

CODES JSE ISIN

Class A OMBFA ZAE000097424
Class B1 OMBB1 ZAE000171096
Class R OMSL ZAE000020780

CONTACT DETAILS

Funds are also available via Old Mutual Wealth and MAX Investments.

0860 234 234 www.oldmutualinvest.com unittrusts@oldmutual.com Invest now

HOW TO READ AN MDD.

THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92

 DECEMBER 2022

OLD MUTUAL BALANCED FUND

FUND PERFORMANCE AS AT 31/12/2022

PERFORMANCE SINCE INCEPTION 5-YEAR ANNUALISED ROLLING RETURNS

(FUND VS BENCHMARK/PERFORMANCE TARGET)
3 000 20%
Fund Fund
Indexed to 100 on 28 Feb 1994

Indexed to 100 on 28 Dec 1994

2 500 CPI + 4% CPI + 4%
16%
CPI CPI
2 000
12%
1 500
8%
1 000

500 4%

0 0%
Feb 94 Nov 99 Aug 05 May 11 Feb 17 Nov 22 Dec 12 Dec 14 Dec 16 Dec 18 Dec 20 Dec 22

Past performance is no indication of future performance.

% Performance (Annualised) Rolling 12-Month Return Highest Average Lowest

Since Fund (Since Inception) 45.5% 12.4% -23.2%
1-Yr 3-Yr 5-Yr 7-Yr 10-Yr Inception1
Fund (Class R) -0.9% 8.5% 6.1% 6.4% 8.3% 11.8%
Risk Statistics (Since Inception)
Fund (Class A) 2
-1.3% 8.2% 5.7% 6.1% 7.7% -
Maximum Drawdown -29.1%
Fund (Class B1)3 -0.9% 8.6% 6.2% 6.5% 8.2% -
Months to Recover 17
Benchmark* 7.4% 5.3% 4.9% 5.1% 5.2% 6.2%
% Positive Months 65.0%
* The CPI figures are lagged by one month as the number was calculated before this
month’s inflation rate was released. Annual Standard Deviation 12.2%
1
Performance since inception of the fund. Sharpe Ratio 0.21
2
Inception: 30 June 2007.
Risk statistics are calculated based on monthly performance data from inception
3
Inception: 31 October 2012. Class B1 is available through investment platforms such
of the fund.
as Old Mutual Wealth.
Performance measurements over periods shorter than the recommended investment
term may not be appropriate. Past performance is no indication of future performance.
Fund returns are net of fees and measured against the benchmark.

FUND COMPOSITION

ASSET & PERCENTAGE ALLOCATION PRINCIPAL HOLDINGS

SA Equities 41.8% Holding % of Fund

R2032 8.25% 31/03/2032 8.1%
International Equities 22.7%
R2035 8.875% 28/02/2035 7.3%
SA Bonds 21.9% Prosus NV 3.5%
International Fixed FirstRand Ltd 3.5%
Interest 7.2%
Standard Bank Group Ltd 3.1%
SA Property 3.3%
British American Tobacco 2.7%
SA Cash 1.5% R2037 8.50% 31/01/2037 2.5%
Commodities 1.0% R2040 9.00% 31/01/2040 2.3%
SA Multi Asset Class Glencore Plc 1.9%
Funds 0.6%
Anheuser Busch Inbev 1.8%

THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92

 DECEMBER 2022

OLD MUTUAL BALANCED FUND

PORTFOLIO MANAGERS COMMENTARY
OLD MUTUAL INVESTMENT GROUP | MACROSOLUTIONS

GRAHAM TUCKER WARREN VAN DER WESTHUIZEN

• BSc Actuarial Science (Hons), CFA • BCom (Hons), CFA
• 22 years of investment experience • 22 years of investment experience

Despite action taken during the year to reduce Within equities we remain cautiously positioned relative valuations and where the US and
the degree of cyclicality in the portfolio, the given our expectation of earnings pressure this China find themselves in their respective
low returns experienced at an asset class level year. We adopted a more defensive positioning economic cycles.

translated into a disappointing return for the within local equity during 2022 through
2023 will likely test the resolve of many investors.
fund for the year. reducing exposure to companies such as
Poor returns in 2022, rates still rising, the
Sasol, MTN, banks and clothing retailers. More
increased likelihood of a recession and a
We have consistently expressed a clear recently we have been buyers of resources,
continuation of load shedding locally make
preference for local bonds over local cash. Naspers and Anheuser-Busch in the fund
it increasingly important to have a long-term
While this detracted from performance in on the expectation of China reopening its
plan in place and to stick to it. What we know
2022, we believe local bonds remain one of the economy.
from analysing decades of market returns is
most attractive asset classes globally. We are
This view has been further expressed in the that the best returns are often achieved when
of the view that Government’s commitment to
portfolio as we shifted our global equity focus the sentiment is the poorest.
fiscal consolidation reflects a positive change.
away from the expensive US equity market
While we would expect a greater emphasis
towards emerging markets and specifically Asia
on reform given the outcome of the ANC in 2022. This positioning came under pressure
Elective Conference, we recognise that the during the year, as US equity continued to
challenges remain, especially when it comes outperform through to end of October and
to energy security. That said, longer-term bond China maintained its very strict zero-Covid
yields north of 10% remain very attractive in strategy until late in the year. However, we
a relative context. remain committed to this positioning given

Source: Old Mutual Investment Group as at 31/12/2022

OTHER INVESTMENT CONSIDERATIONS

MINIMUM INVESTMENTS*: ONGOING

Monthly: R500 Class A Class B1 Class R
Lump sum: R10 000 Annual service fees (excl. VAT) 1.30% 0.95% 1.00%
Ad hoc: R500 Please note: Class B1 is available through investment platforms such as Old Mutual Wealth.
* These investment minimums are not limited to this fund. They can be Class R is closed to new business.
apportioned across the funds you have selected in your investment contract.
The 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.
INITIAL CHARGES (Incl. VAT): These include the fees and costs relating to underlying global asset class exposures, which
Initial adviser fee will be between 0% and 3.45%. range between 0.20% and 0.50% as the fee for equity exposures is typically higher than
the fee for fixed income or money market exposures. A portion of Old Mutual Unit Trusts’
annual service fees may be paid to administration platforms.

36 Months 12 Months
Total Expenses (Incl. Annual Service Fee) (30/09/2022) Class A Class B1 Class R Class A Class B1 Class R
Total Expense Ratio (TER) Incl. VAT 1.62% 1.22% 1.28% 1.61% 1.20% 1.26%
Transaction Cost (TC) 0.10% 0.10% 0.10% 0.09% 0.09% 0.09%
Total Investment Charge 1.72% 1.32% 1.38% 1.70% 1.29% 1.35%
Please note: Class B1 is available through investment platforms such as Old Mutual Wealth.
Class R is closed to new business.
TER is a historic measure of the impact the deduction of management and operating costs has on a fund’s value. A higher TER does not necessarily imply a poor return, nor
does a low TER imply a good return. The current TER, which includes the annual service fee, may not necessarily be an accurate indication of future TERs. Transaction Cost (TC)
is a necessary cost in administering the fund and impacts fund returns. It should not be considered in isolation as returns may be impacted by many other factors over time
including market returns, the type of fund, the investment decisions of the investment manager and the TER.

THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92

 DECEMBER 2022

OLD MUTUAL BALANCED FUND

DISCLAIMER
We aim to treat our clients fairly by giving you the information you need in as simple a way as possible, to enable you to make informed
decisions about your investments.
• We believe in the value of sound advice and so recommend that you consult a financial planner before buying or selling unit trusts. You may,
however, buy and sell without the help of a financial planner. If you do use a planner, we remind you that they are entitled to certain negotiable
planner fees or commissions.
• You should ideally see unit trusts as a medium- to long-term investment. The fluctuations of particular investment strategies affect how a
fund performs. Your fund value may go up or down. Therefore, we cannot guarantee the investment capital or return of your investment. How
a fund has performed in the past does not necessarily indicate how it will perform in the future.
• The fund fees and costs that we charge for managing your investment are disclosed in this Minimum Disclosure Document (MDD) and in the
table of fees and charges, both of which are available on our public website or from our contact centre.
• Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained,
free of charge, from Old Mutual Unit Trust Managers (RF) (Pty) Ltd, from our public website at www.oldmutualinvest.com or our contact centre
on 0860 234 234.
• Our cut-off time for client instructions (e.g. buying and selling) is at 15:00 each working day for all our funds, except for our money market
funds, where the cut-off is at 12:30.
• The valuation time is set at 15:00 each working day for all our funds, excluding our money market funds which is at 13:00, to determine the daily
ruling price (other than at month-end when we value the Old Mutual Index Funds and Old Mutual Multi-Managers Fund of Funds range at
17:00 close). Daily prices are available on the public website and in the media.
• Unit trusts are traded at ruling prices, may borrow to fund client disinvestments and may engage in scrip lending. The daily ruling price is based
on the current market value of the fund’s assets plus income minus expenses (NAV of the portfolio) divided by the number of units on issue.
• This fund holds assets in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic
situations, foreign exchange, tax, settlement, and the availability of information.
• The Net Asset Value to Net Asset Value figures are used for the performance calculations. The performance quoted is for a lump sum investment.
The performance calculation includes income distributions prior to the deduction of taxes and distributions are reinvested on the ex-dividend
date. Performances may differ as a result of actual initial fees, the actual investment date, the date of reinvestment and dividend withholding
tax. Annualised returns are the weighted average compound growth rates over the performance period measured. Performances are in ZAR
and as at 31 December 2022. Sources: Morningstar and Old Mutual Investment Group (FSP no. 604).
• MSCI ESG Research LLC’s (“MSCI ESG”) Fund Metrics and Ratings (“the information”) provide environmental, social and governance data with
respect to underlying securities within more than 31 000 multi-asset class mutual funds and ETFs globally. MSCI ESG is a registered investment
adviser under the Investment Advisers Act of 1940. MSCI ESG materials have not been submitted to, nor received approval from the US SEC or
any other regulatory body. None of the information constitutes an offer to buy or sell, or a promotion or recommendation of any security, financial
instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast
or prediction. None of the information can be used to determine which securities to buy or sell or when to buy or sell them. The information
is provided “as is” and the user of the information assumes the entire risk of any use it may make or permit to be made of the information.

Old Mutual Unit Trust Managers (RF) (Pty) Ltd, registration number 1965 008 47107, is a registered manager in terms of the Collective Investment
Schemes Control Act 45 of 2002. Old Mutual is a member of the Association for Savings and Investment South Africa (ASISA). Old Mutual Unit
Trust Managers has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate.

Trustee: Standard Bank, PO Box 54, Cape Town 8000. Tel: +27 21 401 2002, Fax: +27 21 401 3887

CONTACT DETAILS

Funds are also available via Old Mutual Wealth and MAX Investments.

0860 234 234 www.oldmutualinvest.com unittrusts@oldmutual.com Invest now

THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92 Issued: January 2023