Old Mutual Balanced Fund January 2007 - Old Mutual Kenya by maclaren1


									                                                                                                                                      Rafiki Halisi
                                          Unit Trusts

                                OLD MUTUAL BALANCED FUND
   Fact Sheet                                                                                                                  January 2007

  Fund Objective                                                     Technical Information
To maximize total return through investment in a diversified       Fund Launch Date                                 August 2005
portfolio of interest bearing assets, domestic equities and        Fund Size                                        KShs 697.9 m
offshore investments. Due to the diversified nature of the         Asset Manager                                    Old Mutual Asset Managers
                                                                   Custodian                                        Kenya Commercial Bank
portfolio, the fund offers a medium risk profile.
                                                                                                                    Custodial Services
The Old Mutual Balanced Fund may vary at any one time              Initial Fee                                      4%
depending on the manager’s assessment of economic and              Annual Management Fee                            2%
market factors but will always invest at least 25% of the          Accounting Date                                  31st December
fund’s total assets in interest bearing assets.                    Distribution Dates                               31st Mar/ 30th June/ 30 Sept/ 31st Dec

                                                                   Prices & Performance are quoted net of ALL taxes and management fees
  Investment Commentary
Statistics from Central Bank show that economic growth            Sector Breakdown as at 29th December 2006
remains strong with all key sectors indicating strong                                         OFFSHORE
growth of the nine months to September 06. Strong                                                6%
inflows from the capital account have supported the
surplus balance of payment of US dollars 777 million as
of August 06. However inflation remains a concern with
overall inflation at 15.6% in December 06.
The equity market reversed the declining trend in                                                                                          EQUITIES
November by gaining in December. The NSE 20 share                                                                                            45%
index gained 1.67% during the month. Performance of
the market was mixed with demand marginally
outstripping supply. Demand in select blue chip stock                           IBA
supported market growth.                                                        49%

Exposure to domestic equities reduced to 44.9% in
December 06 from 46.5% due to increased inflow in to
the fund during the month. We continued to build our
large cap holdings to take advantage of the value
proposition being offered in the market. We have
                                                                  Performance Against Benchmark
positioned the portfolio well and expect to gain from an                Balanced Fund Performance Against Weighted                                   BENCHMARK
upward movement in prices in the market while
                                                                                    Average Benchmark                                                Inflation
mitigating the down risk with a robust treasury                   28.00%
management on the interest bearing portion of our
assets.                                                           24.00%

Interest rates as indicated by the 91-day Treasury bills          20.00%
declined from an average 6.37% in November to 5.75%               16.00%
in December. The declining interest rates are attributable
to the high level of liquidity in the banking sector. We          12.00%
believe these low interest rates may not be sustainable            8.00%
given the higher inflationary environment.
We will continue to focus on yield enhancement within
acceptable duration.
                                                                                   3 Month              6 Months             9 Months             12 Months
The shilling remained strong in December gaining 0.8%
against the US dollar and Euro. The strong shilling has        Prices and Performance are quoted net of ALL taxes and management fees.
been supported by the strong foreign currency inflows as       This fact sheet is for information purposes only and is not a solicitation to buy or sell. The price of
                                                               units and the income from them can go down as well as up, as a result of changes in the value of
shown by the growing surplus balance of payment.
                                                               underlying securities. Past performance is not necessarily a guide to future investment
Recovery of the Global equity market continued in              performance. An investor may not get back the full amount invested and in certain circumstances
December buoyed by falling international crude oil             the right to redeem your units may be suspected.
prices.                                                        Please note that investment incomes on Old Mutual Funds are taxed at source and withheld taxes
                                                               are remitted to the Kenya Revenue Authority.
Strong performance from the local equity market
                                                               For further information please contact:
continues to drive overall fund performance. The Fund          Old Mutual Investment Services (K) Ltd
managed to generate a return of 24.0% for the twelve           Old Mutual Building
months to December 2006.                                       Corner of Mara/Hospital Road
                                                               P.O.Box 30059, GPO 00100 Nairobi, Kenya
                                                               Tel:      +254-(0)20-2829 333
                                                               Fax:      +254-(0)20-2722 415
                                                               Email:    ut@oldmutualkenya.com
                                                               Website: www.oldmutualkenya.com
                                                               REGULATED BY THE CAPITAL MARKETS AUTHORITY

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