abridged annual report for the year ended 31 march … · over the past year we have continued to...

31 MARCH 2014

ABRIDGED ANNUAL REPORTFOR THE YEAR ENDED

CONTENTS PAGE

director’s report 3

retail class units 5

unit trusts 10

financial information 70

trustees report 79

DIRECTOR’S REPORT

It gives me great pleasure to report on the activities and results of the Prescient Collective Investment Schemes for the year ended 31 March 2014.

The annual financial statements have been audited by KPMG and were are delighted that both the auditors and the Trustees of the Scheme (Nedbank) have given the Scheme a clean

bill of health.

The information contained in this report relates to the financial year ended 31 March 2014 and thus does not reflect current market and fund performance. More up to date Fund Fact sheets

are available on our website and those of our co-named partners. These contain more detailed fund information and commentary.

Market Comment 31 March 2014

Global economic news remained mixed over the past year. Signs of recovery are evident in the US; however the Fed has indicated that they will maintain liquidity in the market. The US

started tapering but has maintained a slow and steady pace with commentary indicating that this stance will continue for some time to come. The steady tapering has resulted in long term

bond yields remaining depressed, albeit off the lows. In South Africa, economic news has been poor, mainly affected by continued strikes in the gold and platinum sectors. Forecasters

reduced expectations for South African growth and combined with the increased ceiling on the Debt-to-GDP ratio announced in the budget, it fuelled fears of a rating and/or outlook down

grade by the major rating agency, a fact that materialized following the year-end.

Continued stimulus resulted in global equity markets delivering strong returns over the past year with the MSCI World Index gaining 19.1%. In US dollar terms, the Eurostoxx 50 which

rose by 33.3% was one of the stronger performers, gaining from both equity market as well as strong currency performance. The S & P 500 was up 21.9%, while the FTSE100 only gained

16.9%, mainly due to currency gains as the equity market delivered a lack luster 6.7% in Sterling. The Japanese market was the weakest over the year (+11.0%). Japanese economic

data suggests a weak economy with the weak currency driving inflation higher, an outcome that many hoped to avoid with their aggressive quantitative easing (QE) program.

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25 June 2014

DIRECTOR’S REPORT (CONT.)

In South Africa, the FTSE/JSE All Share Index (ALSI) gained 23.6% for the year, following on the gains of over 20% the previous year. Similar to the previous year, basic materials

continued to lag, delivering 15.1% as the sectors plagued by the strikes did poorly. Gold mining, coal mining and platinum mining delivered minus 21.2%, minus 12.1% and plus

2.6% respectively. The banks all lagged the overall index over the year, with Barclays Africa being the poorest of the lot, delivering a negative return. The rand depreciated by

14% relative to the dollar over the year and this buoyed rand hedge shares. Counters such as Richemont and Naspers faired extremely well, delivering more than 100% each.

Another star performer was Telkom (+124%); this was in anticipation of a strong recovery off a very low base. The price earnings ratio of the ALSI was 17.1x at the end of March,

above its long-term average.

The South African bond market reacted negatively in mid-2013 to the US tapering and the Fed’s announcement that rates must normalise over the cycle. This saw longer dated bond

yields move from 7.4% at the end of March last year to 8.23% at the end of December 2013. In early 2014, fears surrounding the fragile five, which includes South Africa, resulted in

yields moving closer to 9% in January, before dropping back to 8.4% at the end of March. The 1% upward movement in yield resulted in capital losses for bond holders, which after

including interest equates to a paltry total return of 0.6% on the All Bond Index.

Volatility has been dropping in equity and currency markets around the globe, reflecting that markets are pricing in good times, this is often a signal to be more cautious.

NEW FUNDS AND ASSETS UNDER MANAGEMENT

Over the past year we have continued to grow our range of funds. 11 new funds were launched whilst 2 were closed. Of the new funds launched 3 are part of the Prescient in-house

stable and 8 were through our co-named partners. We are pleased with the growth in assets and management which now exceeds R32.4bn up from R22.9bn last year.

Many thanks to our co-naming partners as well as all our investors for their continued support.

PRESCIENT FUNDS

ANNUAL MANAGEMENT FEE (EXCL VAT)

Prescient Africa Equity Fund 1.15%

Prescient Absolute Balanced Fund 1.00%

Prescient Bond QuantPlus Fund 0.75%

Prescient China Balanced Feeder Fund 0.50%

Prescient Equity Active Quant Fund 1.00%

Prescient Equity Defender Fund 1.00%

Prescient Equity Income Fund 1.00%

Prescient Equity Quant Fund 0.50%

Prescient Global Positive Return Feeder Fund 1.00%

Prescient Global Growth Feeder Fund 1.00%

Prescient Global Income Feeder Fund 1.00%

Prescient Income Provider Fund 0.75%

Prescient Income Saver Fund 0.75%

Prescient Living Planet Fund 1.50%

Prescient Money Market Fund 0.35%

Prescient Optimised Balanced Fund of Funds 1.25%

Prescient Optimised Conservative Fund of Funds 1.00%

Prescient Optimised Growth Fund of Funds 1.25%

Prescient Optimised Moderate Fund of Funds 1.25%

Prescient Property Equity Fund 1.00%

Prescient Positive Return QuantPlus Fund 1.00%

Prescient Stable Income Fund 0.75%

Prescient Wealth Balanced Fund of Funds 0.45%

Prescient Wealth Income Fund of Funds 0.45%

Prescient Yield QuantPlus 0.50%

RETAIL CLASS UNITS

ABRIDGED ANNUAL REPORT 5

Co-named FUNDS

(EXCL VAT)

1.15%

0.63%

0.63%

0.63%

0.63%

1.50%

0.80%

ANNUAL MANAGEMENT FEE

3Laws Climate Change Equity Prescient Fund

27four Asset Select Prescient Fund of Funds

27four Balanced Prescient Fund of Funds

27four Equity Prescient Fund of Funds

27four Global Equity Prescient Feeder Fund

27four Shari’ah Active Equity Prescient Fund

27four Shari’ah Balanced Prescient Fund of Funds

27four Stable Prescient Fund of Funds 0.63%

*Abax Absolute Return Prescient Fund 0.65%

Abax Balanced Prescient Fund 0.50%

Abax Diversified Income Prescient Fund 0.90%

Abax Equity Prescient Fund 0.90%

Aeon Balanced Prescient Fund 0.50%

Aeon Enhanced Equity Prescient Fund 0.50%

Afena Equity Prescient Fund 1.50%

Afena Managed Prescient Fund 1.50%

Aylett Balanced Prescient Fund 1.00%

Aylett Equity Prescient Fund 1.00%

Bateleur Flexible Prescient Fund 1.25%

ClucasGray Equity Prescient Fund 2.00%

ClucasGray Future Titans Prescient Fund 1.30%

Cordatus WW Flexible Prescient Fund 0.65%

Cordatus WW Flexible Prescient Fund of Funds 0.45%

Fairtree Equity Prescient Fund 1.25%

Fairtee Flexible Balanced Prescient Fund 1.25%

Huysamer Equity Prescient Fund 1.00%

Huysamer Opportunity Prescient Fund 1.00%

Integre Large Cap Prescient Fund 1.50%

Laurium Flexible Prescient Fund 1.00%

Prescient Private Clients Flexible Fund 1.25%

Prescient Private Clients Managed Fund 1.25%

Maestro Equity Prescient Fund 1.75%

Mergence CPI+4% Prescient Fund 1.00%

Mergence Equity Prescient Fund 1.00%

*Retail performance based fee for Abax Absolute Return Prescient Fund: 0% base feeplus 10% of positive performance capped at 3% over a rolling 12 month period. A permanent high-water mark applies.

RETAIL CLASS UNITS


(CONTINUED)

DISTRIBUTIONS

PRESCIENT FUNDS

ANNUAL Distributions

FUND DECLARATION DATE CENTS PER UNIT

Prescient Africa Equity Fund 1 April 2013 1.75

Prescient Absolute Balanced Fund 1 April 2013 8.20

Prescient Equity Active Quant Fund 1 April 2013 48.03

Prescient Equity Defender Fund 1 April 2013 3.47

Prescient Equity Income Fund 1 April 2013 4.29

Prescient Equity Quant Fund 1 April 2013 13.35

Prescient Global Income Feeder Fund 1 April 2013 0.03

Prescient Optimised Balanced Fund of Funds 1 April 2013 1.35

Prescient Optimised Conservative Fund of Funds 1 April 2013 4.74

Prescient Optimised Growth Fund of Funds 1 April 2013 0.04

Prescient Optimised Moderate Fund of Funds 1 April 2013 1.74

Prescient Positive Return QuantPlus Fund 1 April 2013 8.40

Prescient Property Equity Fund 1 April 2013 7.92

Prescient Wealth Balanced Fund of Funds 1 April 2013 2.07

bi-aNNUAL Distributions

Prescient Bond QuantPlus Fund 1 April 2013 3.97

1 October 2013 4.20

Prescient Wealth Income Fund of Funds 1 April 2013 4.52

1 October 2013 1.92

Note: The Prescient Income Provider, Prescient Income Saver, Prescient Money Market, Prescient Stable Income Fund and Prescient Yield QuantPlus® Funds distribute monthly.

RETAIL CLASS UNITS (CONTINUED)


Co-named funds

ANNUAL Distributions

FUND DECLARATION DATE CENTS PER UNIT

27four Asset Select Prescient Fund of Funds 1 April 2013 2.00

27four Shari’ah Active Equity Prescient Fund 1 April 2013 0.98

27four Shari’ah Balanced Prescient Fund 1 April 2013 2.84

27four Stable Prescient Fund of Funds 1 April 2013 10.43

Abax Absolute Return Prescient Fund 1 April 2013 5.75

Abax Balanced Prescient Fund 1 April 2013 3.65

Abax Equity Prescient Fund 1 April 2013 87.14

Aeon Balanced Prescient Fund 1 April 2013 1.42

Aeon Enhanced Equity Prescient Fund 1 April 2013 2.06

Afena Equity Prescient Fund 1 April 2013 2.66

Afena Managed Prescient Fund 1 April 2013 4.03

Aylett Equity Prescient Fund 1 April 2013 52.68

Bateleur Flexible Prescient Fund 1 April 2013 1.09

ClucasGray Equity Prescient Fund 1 April 2013 1.68

ClucasGray Future Titans Fund 1 April 2013 1.54

Fairtree Equity Prescient Fund 1 April 2013 3.37

Huysamer Equity Prescient Fund 1 April 2013 27.38

Huysamer Opportunity Prescient Fund 1 April 2013 26.57

Integre Large Cap Prescient Fund 1 April 2013 3.32

Laurium Flexible Prescient Fund 1 April 2013 0.81

Prescient Private Clients Flexible Fund 1 April 2013 2.07

Maestro Equity Prescient Fund 1 April 2013 19.61

Mergence Equity Fund 1 April 2013 2.57



Co-named funds (continued)

bi-aNNUAL Distributions

27four Balanced Prescient Fund of Funds 1 April 2013 8.22

1 October 2013 20.25

Mergence CPI + 4% Prescient Fund 1 April 2013 0.59

1 October 2013 1.22

QUArterly Distributions

Abax Diversified Income Prescient Fund 1 April 2013 1.54

1 July 2013 1.86

1 October 2013 1.79

1 January 2013 1.74

27four Stable Prescient Fund of Funds 1 April 2013 10.43

1 July 2013 10.76

1 October 2013 11.47

1 January 2013 11.50



PRESCIENT FUNDS

Prescient Africa Equity Fund

Prescient Absolute Balanced Fund

Prescient Bond QuantPlus® Fund

Prescient China Balanced Feeder Fund

Prescient Equity Active Quant Fund

Prescient Equity Defender Fund

Prescient Equity Income Fund

Prescient Equity Quant Fund

Prescient Global Positive Return Feeder Fund

Prescient Global Growth Feeder Fund

Prescient Global Income Feeder Fund

Prescient Income Provider Fund

Prescient Income Saver Fund

Prescient Living Planet Fund

Prescient Money Market Fund

Prescient Optimised Balanced Fund of Funds

Prescient Optimised Conservative Fund of Funds

Prescient Optimised Growth Fund of Funds

Prescient Optimised Moderate Fund of Funds

Prescient Positive Return QuantPlus® Fund

Prescient Property Equity Fund

Prescient Stable Income Fund

Prescient Wealth Balanced Fund of Funds

Prescient Wealth Income Fund of Funds

Prescient Yield QuantPlus® Fund

CO-NAMED FUNDS

3Laws Climate Change Equity Prescient Fund



27four Equity Prescient Fund of Funds

27four Global Equity Prescient Feeder Fund



27four Stable Prescient Fund of Funds

Abax Absolute Return Prescient Fund

Abax Balanced Prescient Fund

Abax Diversified Income Prescient Fund

Abax Equity Prescient Fund

Aeon Balanced Prescient Fund

Aeon Enhanced Equity Prescient Fund

Afena Equity Prescient Fund

Afena Managed Prescient Fund

Aylett Balanced Prescient Fund

Aylett Equity Prescient Fund

Bateleur Flexible Prescient Fund

ClucasGray Equity Prescient Fund

ClucasGray Future Titans Prescient Fund

Cordatus WW Flexible Prescient Fund

Cordatus WW Flexible Prescient Fund of Funds

Fairtree Equity Prescient Fund

Fairtree Flexible Balanced Prescient Fund

Huysamer Equity Prescient Fund

Huysamer Opportunity Prescient Fund

Integre Large Cap Prescient Fund

Laurium Flexible Prescient Fund

Prescient Private Clients Flexible Fund

Prescient Private Clients Managed Fund

Maestro Equity Prescient Fund

Mergence CPI + 4% Prescient Fund

Mergence Equity Prescient Fund

our UNIT TRUSTS


FUND INFORMATION

Fund manager: Eldria Fraser, Fazila Manjoo, Johan Steyn

Fund classification: Regional Equity General

Benchmark: MSCI EFM Africa ex ZA Net Total Return Index

Fund size: R59.2m

Inception date: 31 March 2011

Risk Profile: Aggressive

Objective

The Fund invests in listed equity markets across Africa, excluding South Africa. It aims to achieve returns above the MSCI Emerging and Frontier Markets Africa ex South Africa Index by investing in shares that

are showing value relative to their trading price.

Asset allocation

Egypt 25.90%

Kenya 16.00%

Mauritius 2.40%

Morocco 13.20%

Nigeria 42.50%

Performance FUND Benchmark

1 Year 21.25% 22.68%

3 Years (p.a) 23.60% 25.82%

Since inception (p.a.) 23.60% 25.82%

PRESCIENT AFRICA EQUITY FUND


FUND INFORMATION

Fund manager: Guy Toms, Liang Du

Fund classification: South African – Multi-Asset – High Equity

Benchmark: Headline CPI

Fund size: R520.0m

Inception date: 01 July 2003

Risk Profile: Moderate

Objective

The Fund is a balanced offering which aims to achieve sustainable real returns over time. The Fund is Regulation 28 compliant.

Asset allocation

Financials 4.36%

Resources 4.25%

Industrials 3.77%

0.57%

2.12%

0.01%

60.66%

17.89%

Property

Information technology

Specialist securities

Unit trusts

Bonds

Cash 6.37%

PerformanceFUND benchmark

1 Year 10.56% 5.17%

3 Years (p.a.) 9.31% 5.69%

5 Years (p.a.) 10.11% 5.26%


Prescient Absolute Balanced Fund


FUND INFORMATION

Fund manager: Guy Toms, Sanveer Hariparsad

Fund classification: South African – Interest Bearing – Variable term

Benchmark: BEASSA All Bond Index

Fund size: R306.2m


Risk Profile: Moderately Conservative

Objective

The Fund aims to generate returns above the BEASSA All Bond Index over time, utilising active bond management combined with strategies which aims to reduce risk over time.

12.04%

Asset allocation

Cash and money market instruments

Fixed rate instruments 87.96%


1 Year 2.03% 0.56%

3 Years (p.a.) 8.17% 9.20%

5 Years (p.a.) 8.49% 8.99%


Since inception (total return) 149.02% 152.86%

PRESCIENT Bond QuantPlus® FUND


FUND INFORMATION

Fund manager:

Fund classification:

Benchmark:

Fund size:

Inception date:

Risk Profile:

Liang Du, Shaun Hu

Regional – Multi-Asset – Flexible

China CPI + 3%

R196.6m

10 April 2013

Aggressive

Objective

The Fund aims to generate capital growth and to outperform Chinese inflation by 3% over the long-term. To achieve this, the Fund will invest predominantly in mainland Chinese equities, bonds, cash and

money market instruments. The Fund may also invest in global equities, bonds and other interest bearing securities such as certificates if deposits, money market instruments, global currencies and through

Regulated Funds, which have good risk adjusted pricing characteristics.

The Fund is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time.

Asset allocation

Unit trusts 99.97%

Cash 0.03%



Prescient China Balanced Feeder Fund


FUND INFORMATION

Fund manager: Eldria Fraser, Fazila Manjoo

Fund classification: South African – Equity General

Benchmark: FTSE/JSE Africa Shareholder Weighted All Share TR Index (SWIX)

Fund size: R290.8m

Inception date: 1 November 2006


Objective

The Fund aims to achieve returns above the FTSE/JSE Africa Shareholder Weighted Total Return Index (SWIX) by investing in shares that offer value relative to its trading price.

Asset allocation

Financials 28.46%

Resources 28.22%

Industrials 23.66%

Property 3.52%

Information technology 13.02%

Specialist securities 0.08%

Cash 3.04%

Performance FUND benchmark

1 Year 22.13% 24.48%

3 Years (p.a.) 16.23% 19.24%

5 Years (p.a.) 20.85% 22.88%


Prescient Equity Active Quant Fund


FUND INFORMATION

Fund manager: Liang Du, Nafees Hossain

Fund classification: South African – Multi-Asset – Flexible

Benchmark: 70% All Share SWIX 30% SteFi Call

Fund size: R32.4m



Objective

The Fund aims to provide equity-like returns over the long term while aiming to have negative drawdowns that is much lower than the equity market over the shorter term.

Asset allocation

Financials 18.89%

Resources 24.88%

Industrials 23.52%

Property 2.68%



Cash 22.50%

PerformanceFUND Benchmark

1 Year 13.40% 18.41%


Prescient Equity Defender Fund


FUND INFORMATION


Fund classification: South African – Equity – General

Benchmark: FTSE/JSE Africa Shareholder Weighted TR Index (SWIX)

Fund size: R15.2m



Objective

The Fund aims to provide an income from dividends that is greater than the FTSE/JSE Africa Shareholder Weighted All Share Index by investing in shares that offer an attractive yield relative to the benchmark.

It further aims to outperform the benchmark over the long-term.

Asset allocation

Financials 21.65%

Resources 34.37%

Industrials 19.46%

Property 10.34%



Cash 1.26%

Performance FUND Benchmark

1 Year 20.12% 24.48%


Prescient Equity Income Fund


FUND INFORMATION

Fund manager: Justin Sage, Rasebolelo Maleka

Fund classification: South African – Equity Large Cap

Benchmark: FTSE/JSE Africa Top 40 Index

Fund size: R276.2m

Inception date: 30 June 2003


Objective

The Fund is an enhanced equity index fund. Returns are enhanced by taking advantage of low risk arbitrage opportunities in the market and other quantitative techniques. Additional benefits are gained from

efficient implementation of cashflows, dividend reinvestments, management of corporate actions and index rebalancing. Tracking error to the index is minimised in the process.

Asset allocation

Financials 10.60%

Resources 22.59%

Industrials 30.27%

Property 1.20%



Unit trusts 3.19%

Cash and call 26.44%


1 Year 25.67% 25.67%

3 Years (p.a.) 17.29% 17.48%

5 Years (p.a.) 21.24% 21.67%


Prescient Equity Quant Fund


FUND INFORMATION

Fund manager: Liang Du, Guy Toms

Fund classification: Global – Multi-Asset – Medium Equity

Benchmark: EU Harmonised CPI + 1%

Fund size: R49.6m

Inception date: 31 August 2007

Risk Profile: Moderately aggressive

Objective

The Fund aims to generate returns in excess of global inflation. The Fund is an asset allocation fund and may employ active asset allocation strategies. It will be suitable for low risk and retirement fund investors.

The Fund will have as its primary objective the aim to minimise volatility in the individual equity markets by utilising investment strategies to protect against downside volatility. It will have as a secondary objective

a return in excess of global inflation as measured by EU Harmonised inflation.

Asset allocation

Unit trusts 99.63%

Cash and call 0.37%


1 Year 28.58% 24.13%

3 Years (p.a.) 18.93% 17.82%

5 Years (p.a.) 8.11% 5.68%


*G7 Inflation from inception of the Fund to December 2008 and EU Harmonised CPI +1% thereafter.

PRESCIENT Global Positive Return Feeder FUND


FUND INFORMATION


Fund classification: Global – Multi-Asset – Flexible

Benchmark: OECD G7 Inflation + 1.5%

Fund size: R4.3m



Objective

The Fund aims to gain broad exposure to global markets, primarily equities, with asset allocation used to reduce volatility. The asset allocation is managed on an active basis and may at times include some

protection strategies in an aim to reduce market volatility. Being a growth-focused fund, the equity allocation of the Fund will tend to be higher over time, but the manager has full discretion to lower this

allocation when valuations warrant this. The equity within the Fund will be managed according to Prescient’s Equity Active Global Model. This is a quantitative bottom up process that aims to generate superior

performance in a structured manner by investing in a selection of shares from the MSCI World Index.

Asset allocation

Unit trusts 98.89%

Cash and call 1.11%

Performance FUND benchm,ark

1 Year 33.96% 16.86%

3 Years (p.a.) 24.02% 18.93%

5 Years (p.a.) 12.92% 6.64%


PRESCIENT Global Growth Feeder FUND


FUND INFORMATION

Fund manager: Guy Toms, Jean-Pierre du Plessis

Fund classification: Global – Multi-Asset – Income

Benchmark: US 90 Day Treasury Bill

Fund size: R132.7m

Inception date: 31 October 2004


Objective

The Fund aims to take advantage of investment opportunities in the international credit and currency markets. Such investments will include, amongst others, fixed and floating rate money market and bond

market investments, derivatives and global currencies. Focus is placed on maintaining the high credit quality of the Fund and the benchmark for the Fund is the 90 Day US Treasury Bill.

Asset allocation

Unit trusts 99.97%

Cash and call 0.03%


1 Year 15.53% 14.08%

3 Years (p.a.) 17.55% 15.53%

5 Years (p.a.) 5.82% 1.74%


PRESCIENT Global Income Feeder FUND


FUND INFORMATION

Fund manager: Guy Toms, Farzana Bayat, Jean-Pierre du Plessis

Fund classification: South African – Multi-Asset – Income

Benchmark: SteFi Call 110%

Fund size: R3.95bn

Inception date: 31 December 2005

Risk Profile: Moderately conservative

Objective

The Fund aims to generate income and outperform the South African cash and short-term bond market through a full interest rate cycle. In addition, the Fund aims to provide some growth in capital. The Fund is

Regulation 28 compliant.

Asset allocation

International equities 4.49%

Property 1.83%

Derivatives 0.23%

Unit trusts 22.22%

Bonds 45.49%


Performance FUND benchmark 1–3 YR BI

1 Year 8.68% 5.25% 4.17%

3 Years (p.a.) 9.04% 5.50% 7.00%

5 Years (p.a.) 8.11% 6.22% 7.28%

Since inception (p.a.) 9.55% 7.79% 7.83%

Prescient Income Provider Fund


FUND INFORMATION

Fund manager: Farzana Bayat, Jean-Pierre du Plessis

Fund classification: South African – Multi-Asset – Medium Equity

Benchmark: SteFi Call 70%

Fund size: R209.8m



Objective

The Fund aims to deliver returns that exceed cash investments on an after tax basis. The Fund can invest in cash, short- and long-term, high-quality capital market instruments, preference shares, property

and hedged equity.

Asset allocation

Derivatives 0.13%

Bonds 91.57%

Cash and call 8.30%

Performance Fund benchmark

1 Year 6.72% 3.31%

3 Years (p.a.) 6.25% 3.47%


Prescient Income Saver Fund


FUND INFORMATION

Fund manager: Farzana Bayat, Teresa Lu

Fund classification: South African – Interest Bearing – Money Market

Benchmark: SteFi Call

Fund size: R1.1bn

Inception date: October 2009

Risk Profile: Conservative

Objective

The Fund aims to achieve returns above the benchmark, while minimising the risk of any underperformance. At the same time, it aims to maintain capital stability and liquidity. This Fund is managed on a

Regulation 28 basis.

9.31%

Asset allocation

Bonds

Cash and money market instruments 90.69%


1 Year 5.19% 4.75%

3 Years (p.a) 5.46% 4.99%


Prescient Money Market Fund


FUND INFORMATION

Fund manager: Nafees Hossain


Benchmark: Headline CPI + 5%

Fund size: R7.6m

Inception date: 31 January 2006


Objective

The Fund is designed to pay out an income of 5% p.a. while striving to maintain the real value of the underlying capital over time. Maintaining the real value of capital requires a high exposure to shares and

a reasonable degree of short-term volatility in returns. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets. The Fund is

managed as a Regulation 28 Fund.

Asset allocation

Unit trusts 99.47%

Cash and call 0.53%


1 Year 9.92% 10.43%

3 Years (p.a.) 8.60% 10.97%

5 Years (p.a.) 10.51% 10.52%


Prescient Optimised Balanced Fund of Funds


FUND INFORMATION




Fund size: R5.0m



Objective

The Fund is designed to pay out an income of 10% p.a. At this high level of income pay out it is generally not possible to maintain the real value of the underlying capital over time. The Fund targets a moderate

exposure to shares and volatility of returns is kept to a minimum. Dynamic protection strategies are employed to limit the potential loss of capital during negative moves in the financial markets. The Fund is

managed to be Regulation 28 compliant.

Asset allocation

Unit trusts 99.06%

Cash and call 0.94%


1 Year 9.29% 7.27%

3 Years (p.a.) 6.78% 7.80%

5 Years (p.a.) 7.08% 7.37%


Prescient Optimised Conservative Fund of Funds


FUND INFORMATION




Fund size: R12.5m



Objective

The Fund is designed to pay out an income of 2.5% pa while striving to ensure real growth of the underlying capital over time. Achieving capital growth requires a high exposure to shares and short term volatility

in returns is possible. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets. The Fund is managed to be Regulation 28

compliant.

Asset allocation

Unit trusts 99.42%

Cash and call 0.58%


1 Year 11.66% 11.48%


Prescient Optimised Growth Fund of Funds


FUND INFORMATION




Fund size: R13.6m



Objective

The Fund is designed to pay out an income of 7% pa while striving to allow only a limited decrease in the real value of the underlying capital over time. This is achieved by targeting a balanced exposure to

shares and allowing only moderate short term volatility in returns. Dynamic protection strategies are employed to limit the potential loss of capital only during major negative moves in the financial markets.

The Fund is managed to be Regulation 28 compliant.

Asset allocation

Unit trusts 97.42%

Cash and call 2.58%


1 Year 10.90% 9.38%

3 Years (p.a.) 8.29% 9.91%

5 Years (p.a.) 9.34% 9.47%


Prescient Optimised Moderate Fund of Funds


FUND INFORMATION

Fund manager: Guy Toms, Liang Du


Benchmark: Headline CPI

Fund size: R1.8bn

Inception date: 30 April 2004


Objective

The Fund aims to achieve sustainable real returns over time. This is achieved by generating consistent positive returns, while safeguarding the portfolio from downside risk. The Fund aims to protect capital

over a 12 month rolling period. The Fund is Regulation 28 compliant.

Asset allocation

Financials 6.11%

Resources 13.01%

Industrials 17.44%

Property 0.69%



Unit trusts 44.08%



1 Year 10.33% 5.17%

3 Years (p.a.) 6.51% 5.69%

5 Years (p.a.) 7.19% 5.26%


Prescient Positive Return QuantPlus® Fund


FUND INFORMATION

Fund manager: Thabo Motloung

Fund classification: South African – Real Estate – General

Benchmark: FTSE/FSE SA Listed Property Index (SAPY) J253

Fund size: R2.1m

Inception date: 08 May 2007

Risk Profile: High

Objective

Prescient views property as a long-term asset class, where the growth in income and capital offers a competitive alternative relative to other income generating asset classes. The Fund aims to give efficient

and cost effective exposure to listed property. The portfolio aims to outperform the SA Listed Property Index.

Asset allocation

Financials 7.22%

Property 90.29%

Cash and call 2.49%

Performance FUND BENCHMARK

1 Year 2.07% 1.12%

3 Years (p.a.) 16.21% 18.63%

5 Years (p.a.) 15.63% 19.62%


Prescient Property Equity Fund


FUND INFORMATION

Fund manager: Guy Toms, Farzana Bayat


Benchmark: SteFI 110%

Fund size: R7.2bn



Objective

The Fund aims to maximize income yield without placing undue risk on the capital of the investor by investing in South African investment markets. The Fund is a Regulation 28 Fund and is suitable for retirement

fund clients whose mandates do not allow for foreign investment.

0.21%

58.77%

Asset allocation

Derivatives

Bonds

Cash and money market Instruments 41.02%

PerformanceFUND BENCHMARK

1 Year 6.99% 5.25%


Prescient Stable income Fund


FUND INFORMATION

Fund manager: Prescient Wealth Management


Benchmark: 50% FTSE/JSE All Share Index, 25% All Bond Index, 10% STeFI Cash, 15% MSCI World Index

Fund size: R98.5m



Objective

The Fund aims to achieve real growth in capital over time. The Fund invests in a combination of collective investment schemes providing exposure to equity, bonds, preference shares, listed property stocks and

cash. The Fund may invest 25% of the portfolio offshore and will comply with the Prudential Investment Guidelines at all times, which makes the Fund ideal for use in retirement portfolios. The Fund employs

a best-of-breed philosphy, thus allowing the inclusion of external managers with demonstrated superior ability in various asset classes or processes.

Asset allocation

Unit trusts 96.68%

Cash and call 3.32%


1 Year 20.20% 17.60%

Since inception (cum) 43.10% 42.40%

Prescient Wealth Balanced Fund of Funds


FUND INFORMATION

Fund manager: Prescient Wealth Management


Benchmark: STeFI + 2%

Fund size: R44.1m



Objective

The Fund aims to achieve an income stream greater than that available on cash deposits while preserving capital. The Fund invests in a combination of collective investment schemes providing exposure to equity,

bonds, preference shares, listed property stocks and cash. The Fund may invest 25% of the portfolio offshore and will comply with the Prudential Investment Guidelines at all times, which makes the Fund ideal

for use in retirement portfolios. The Fund employs a best-of-breed philosphy, thus allowing the inclusion of external managers with demonstrated superior ability in various asset classes or processes.

Asset allocation

Unit trusts 98.66%

Cash and call 1.34%

Performance Fund benchmark

1 Year 6.90% 7.70%

Since inception (cum.) 21.90% 14.90%

Prescient Wealth Income Fund of Funds


FUND INFORMATION

Fund manager: Farzana Bayat; Teresa Lu

Fund classification: South African – Interest Bearing – Short Term

Benchmark: SteFI Call

Fund size: R3.6bn



Objective

The Fund aims to achieve returns above the benchmark, while minimising the risk of any underperformance. At the same time, it aims to maintain capital stability and liquidity.

Asset allocation

Cash and call 0.24%

Derivatives 0.02%

Unit trust 0.32%

Money market instruments 58.05%

Variable rate instruments 7.57%

Fixed rate instruments 33.80%

Performance FUND *benchmark

1 Year 5.95% 4.76%

3 Years (p.a.) 5.74% 4.86%

5 Years (p.a.) 6.50% 5.27%


*IBCR from inception of the Fund to September 2011 and SteFI Call thereafter.

Prescient Yield QuantPlus® Fund


FUND INFORMATION

Fund manager: 27four Investment Managers (Pty) Ltd


Benchmark: South African – Multi-Asset – High Equity Category average

Fund size: R325.5m


Risk Profile: Moderately Aggressive

Objective

A Regulation 28 compliant balanced fund of funds portfolio.The portfolio is designed to maximise investment returns over the long-term. Through its high equity allocation, the portfolio aims to build wealth to

allow for a higher income at retirement. Larger movements in the value of capital in the short to medium term is to be expected .

SECTOR allocation

Unit trusts 91.05%

Cash and call 8.95%

erformance FUND BENCHMARK

1 Year 16.38% 15.17%




FUND INFORMATION

Fund manager: 27four Investment Managers (Pty) Ltd


Benchmark: Multi-Asset – Medium Equity Portfolio Category average (net of fees)

Fund size: R381.6m



Objective

The portfolio has a medium risk profile and is multi-managed across asset class and fund manager investing in equity, bond, property and cash fund managers. The primary objectives are capital growth and

income generation.

SECTOR allocation

Unit trusts 93.42%

Cash and call 6.58%


1 Year 16.31% 12.80%




FUND INFORMATION

Fund manager:


Benchmark:

Fund size:

Inception date:

Risk Profile:

27four Investment Managers (Pty) Ltd

South African – Equity – General

Average of the South African – Equity – General Category

R3.0m

21 August 2013

High

Objective

The fund aims to generate total risk-adjusted investment returns above the benchmark.

SECTOR allocation

Unit trusts 89.74%


Performance

No performance data available yet.

27four equity Prescient Fund of Funds


FUND INFORMATION

Fund manager:


Benchmark:

Fund size:

Inception date:

Risk Profile:

27four Investment Managers (Pty) Ltd

Global – Equity – General

Average of the Global – Equity – General Category

R29.0m

29 November 2013

High

Objective

The fund aims to generate total risk-adjusted investment returns above the benchmark.

SECTOR allocation

Unit trusts 96.84%

Cash and call 3.16%

Performance


27four global equity Prescient Feeder Fund


FUND INFORMATION

Fund manager: Visio Capital (Pty) Ltd

Fund classification: South Africa – Equity General

Benchmark: Average of the Domestic – Equity – General Category

Fund size: R85.9m

Inception date: June 2012

Risk Profile: High

Objective

The portfolio invests in South African listed Shari’ah compliant shares, and hence is suitable for investors with a long term investment horizon. Portfolio returns are generated from a combination of both capital

appreciation and dividends.

39.57%

29.01%

23.09%

0.06%

SECTOR allocation

Resources

Industrials



Cash and call 8.27%


1 Year 24.55% 20.95%




FUND INFORMATION

Multi-manager: 27four Investment Managers (Pty) Ltd


Benchmark: Since January 2013: South African – Multi-Asset – High Equity Category Average

Fund size: R55.2m

Inception date: May 2011

Risk Profile: Medium

Objective

The portfolio has a medium risk profile and is multi-managed across Shari’ah compliant asset classes and fund managers locally and globally. The primary objectives are capital growth and income generation.

SECTOR allocation

Unit trusts 66.90%

Cash 33.10%


1 Year 15.11% 15.17%




FUND INFORMATION

Multi-manager: 27four Investment Managers (Pty) Ltd

Fund classification: South African – Mult-Asset – Low Equity

Benchmark: Multi-Asset – Low Equity Portfolio Category average (net of fees)

Fund size: R369.1m

Inception date: November 2012

Risk Profile: Low

Objective

The portfolio has a low risk profile and is multi-managed across asset class and fund manager investing in equity, bond, property and cash fund managers. The primary objectives are capital protection and

income generation.

SECTOR allocation

Unit trusts 89.89%

Cash 10.11%


1 Year 12.62% 9.81%

3 Year 14.45% 10.77%


27four Stable Prescient Fund of Funds


FUND INFORMATION

Fund manager: Arthur Johnson

Fund classification: South African General Equity

Benchmark: FTSE All Share Index

Fund size: R5.7m

Inception date: April 2013

Risk Profile: Low

Objective

The Investment Objective of the Fund is to provide shareholders with capital appreciation over the medium to long term not only through exposure to resource efficient public companies, but also through public

companies that mitigate, adapt and have an opportunity within the changing climate environment.

SECTOR allocation

Financials 9.48%

Resources 21.61%

Industrials 34.34%

Property 2.09%


Unit trusts 9.40%

Cash 17.25%

Performance


3 Laws climate change equity prescient Fund


FUND INFORMATION

Fund manager: Rashaad Tayob


Benchmark: STeFI Index

Fund size: R27.2m

Inception date: 01 February 2010


Objective

The ABAX Absolute Return Prescient Fund invests in a range of income and protected equity assets and strategies in order to protect capital over a rolling twelve month period; and capture as much of the

upside of equity and fixed income markets as possible. The Fund utilises alpha sources in the equity and fixed income markets in order to generate absolute returns.

SECTOR allocation

Financials 3.50%

Resources 7.38%

Industrials 15.35%

4.06%

1.85%

19.17%

0.12%

12.53%

10.60%

Property



Derivatives

Unit trusts

Bonds

Cash 25.44%


1 Year 18.25% 5.29%

3 Years (p.a) 12.11% 5.45%


Abax Absolute Return Prescient Fund


FUND INFORMATION

Fund manager: Rashaad Tayob


Benchmark: STeFI Index

Fund size: R33.4m

Inception date: 29 December 2011


Objective

The ABAX Balanced Prescient Fund’s investment strategy entails the active management of both the asset allocation and underlying assets of the Fund in order to:

n provide the investor with a simple and comprehensive long term investment strategy;

n deliver inflation beating returns by investing across the full spectrum of equity and fixed income markets;

n protect capital by minimising the risk of drawdowns; and

n generate alpha by actively managing the underlying equity and fixed income assets.

SECTOR allocation

Financials 3.21%

Resources 9.37%

Industrials 16.77%

6.95%

2.30%

4.22%

24.92%

0.10%

9.37%

8.94%

Property


International equities


Derivatives

Unit trusts

Bonds

Cash 13.85%


1 Year 16.50% 5.29%


Abax Balanced Prescient Fund


FUND INFORMATION

Fund manager:


Benchmark:

Fund size:

Inception date:

Risk Profile:

Rashaad Tayob

South African – Multi-Asset – Income

STeFI Call Index.

R471.6m

30 June 2010

Low

Objective

The ABAX Diversified Income Prescient Fund aims to:

n deliver attractive risk adjusted returns, while maintaining an emphasis on liquidity, high credit quality and capital stability;

n outperform both cash and bond funds over the interest rate cycle.

6.05%

2.47%

6.05%

0.22%

48.57%

SECTOR allocation

Industrials

Property


Unit trusts

Bonds

Cash 36.64%


1 Year 9.85% 4.80%

3 Year (p.a) 10.37% 4.99%


Abax Diversified Income Prescient Fund


FUND INFORMATION

Fund manager: Anthony Sedgwick, Omri Thomas, Marius van Rooyen


Benchmark: Inception to 31 Dec 2008: Average of General Equity sector measured by MoneyMate. From 01 Jan 2009: FTSE JSE SWIX Total Return Index.

Fund size: R5.9bn


Risk Profile: High

Objective

The ABAX Equity Fund aims to outperform the JSE Shareholder Weighted Index (JSE SWIX) and the average of its peer group of funds (the General Equity Sector) over the medium and long term.

SECTOR allocation

Financials 14.61%

Resources 23.78%

Industrials 47.29%

0.48%

10.41%

0.78%

Property


Unit trusts

Cash 2.65%

PerformanceBENCHMARK FIXED FEE PERFORMANCE

CLASS CLASS

1 Year 24.48% 26.00% 26.66%

3 Years (p.a.) 19.24% 20.11% 20.73%

5 Years (p.a.) 22.88% 23.22% 23.85%

Abax Equity Prescient Fund


FUND INFORMATION

Fund manager: Asief Mohamed, Jay Vomacka


Benchmark: SteFI Index + 3%

Fund size: R52.8m



Objective

The Aeon Balanced Prescient Fund seeks to achieve:

n Inflation beating returns by investing in the full spectrum of domestic and foreign equity and fixed income markets;

n Provide investors with stable income and modest capital appreciation in the long run;

n Manage risk through disciplined portfolio construction; and

n Employ low cost trading techniques.

SECTOR allocation

Financials 4.61%

Resources 8.58%

Industrials 12.85%

0.67%

2.36%

19.38%

0.04%

33.39%

Property




Unit trusts

Cash 18.12%


1 Year 15.06% 8.53%


Aeon BALANCED Prescient Fund


FUND INFORMATION

Fund manager: Asief Mohamed, Jay Vomacka


Benchmark: SWIX

Fund size: R10.9m


Risk Profile: High

Objective

Aeon’s Enhanced Equity strategy seeks to achieve:

n A consistent outperformance of the benchmark;

n Generate excess returns that are positive, stable, explainable and replicable; and

n Manage risk through disciplined portfolio construction.

SECTOR allocation

Financials 18.03%

Resources 25.60%

Industrials 40.37%

2.61%

13.14%

Property


Cash 0.25%


1 Year 24.20% 23.21%


Aeon Enhanced Equity Prescient Fund


FUND INFORMATION

Fund manager: Andrew Joannou


Benchmark: FTSE/JSE Shareholder Weighted All Share Index (SWIX)

Fund size: R302.7m


Risk Profile: Moderate to High

Objective

We believe that the cycle earnings outcomes are governed by the fundamental economics of a particular business and industry, and that the fundamental economics of any business don’t change very often.

We therefore focus our attention on valuing companies on the basis of their sustainable through the cycle operating performance. It is our firm belief that we can generate superior returns for our clients by

buying companies that are trading significantly below their true worth (intrinsic value) as determined on this basis. The Afena Equity Prescient Fund is a general equity fund that aims to provide investors

with long-term growth in capital and income. The Fund is actively managed in an investment process that is based on fundamental research and bottom up stock selection. A minimum of 90% of the Fund is

invested in equities at all times. The Fund is for investors seeking long term capital growth through exposure to the South African equity market.

SECTOR allocation

Financials 20.29%

Resources 33.65%

Industrials 31.91%

0.06%

11.01%

Property


Cash 3.08%


1 Year 23.70% 24.50%

3 Years (p.a.) 15.20% 19.20%

5 Years (p.a) 20.10% 22.90%


Afena Equity Prescient Fund


FUND INFORMATION

Fund manager: Andrew Joannou

Fund classification: South African – Multi-Asset – High equity

Benchmark: Median of the South African Multi-Asset – High Equity Sector

Fund size: R57.3m



Objective

We believe equities generate the best long term real returns versus bonds and cash. We also believe that equity valuation is the best indicator of when to be or not to be invested in the equity market.Therefore a

quality and proven equity valuation competency can be used to construct a Multi-Asset portfolio with a capital growth priority when equity valuations are favourable and a capital preservation priority when equity

valuations are unfavourable, thus generating significant alpha from asset allocation and equity stock picking. The Afena Managed Prescient Fund aims to generate equity like returns, or better, at significantly

less risk than the equity market. The Fund is an actively managed Multi-Asset class fund that invests in equities, bonds, property and cash and has an inflation plus 5% performance target over rolling five year

periods. The Afena Managed Prescient Fund complies with Annexure A to Regulation 28 of the Pension Funds Act and is therefore suitable for retirement fund investors.

SECTOR allocation

Financials 4.89%

Resources 19.82%

Industrials 12.02%

4.28%

3.21%

20.29%

24.17%

Property



Bonds

Cash 11.32%

Performancefund BENCHMARK

1 Year 13.30% 15.70%

3 Year 16.00% 14.20%


Afena Managed Prescient Fund


FUND INFORMATION

Fund manager: Walter Aylett


Benchmark: 60% SWIX, 20% ALBI, 15% MSCI, 5% SteFI

Fund size: R179.1m


Risk Profile: High

Objective

The Fund will aim to deliver a reasonable level of income and moderate capital growth over time for investors though investing in a broad range of asset classes in a balanced manner.

SECTOR allocation

Financials 14.58%

Resources 9.90%

Industrials 13.48%

9.27%

0.66%

40.22%

5.02%



Unit trusts

Bonds

Cash 6.87%

Performance


Aylett balanced Prescient Fund


FUND INFORMATION

Fund manager: Walter Aylett

Fund classification: South African Equity General

Benchmark: JSE All Share TRI

Fund size: R402.5m


Risk Profile: High

Objective

The Fund’s objective is to provide long-term growth in both capital and income.

SECTOR allocation

Financials 29.93%

Resources 22.22%

Industrials 17.21%

17.93%

1.70%

2.25%



Unit trusts

Cash 8.76%

Performancefund BENCHMARK

1 Year 21.50% 23.60%

3 Years (p.a.) 17.90% 17.60%

5 Years (p.a.) 22.50% 22.00%

Aylett Equity Prescient Fund


FUND INFORMATION

Fund manager: Kevin Williams

Fund classification: South African Multi-Asset Flexible

Benchmark: CPI Inflation

Fund size:

Inception date:

Risk Profile:

R290.9m

July 2010

Moderate

Objective

The Bateleur Flexible Prescient Fund aims to generate returns in excess of inflation over the medium to longer term, whilst placing a high premium on protecting investor capital.

SECTOR allocation

Financials 11.60%

Resources 16.08%

Industrials 38.66%

Property 4.16%

International equities 2.14%

Unit trusts 13.86%

Cash 13.50%


24.00% 5.90%1 Year

3 Years (p.a.)

Since inception (p.a.)

21.50% 6.00%

Bateleur Flexible Prescient Fund


22.90% 6.80%

FUND INFORMATION

Fund Manager: Peter Clucas & Paul Carter


Benchmark: SWIX and South African General Equity Index

Fund size: R58.6m


Risk Profile: High

Objective

The ClucasGray Equity Prescient Fund is a high conviction fund aiming to hold no more than 20 stocks at any one time. Via superior stock selection the Fund aims to provide long term capital growth ahead

of its benchmark (SWIX) and competing unit trust category (South African General Equity Index).

SECTOR allocation

Financials 2.50%

Resources 20.98%

Industrials 50.51%

8.60%

4.58%

Property


Cash 12.83%

PerformanceFund benchmark

1 Year 19.95% 21.84%

Since inception 21.20% 21.50%

ClucasGray Equity Prescient Fund


FUND INFORMATION

Fund manager: Brendon Hubbard

Fund classification: South African – Multi-Asset Flexible

Benchmark: Plexus Flexible Index

Fund size: R463.1m

Inception date: 01 September 2009

Risk Profile: High

Objective

The investment objective of the Fund is to provide long term capital growth through active research and analysis of potential “Future Titans”. The Fund’s mandate is to invest in companies outside the Top40

index and utilise its 20% offshore capacity. Should we take the view that this space is no longer attractive we have the flexibility to increase our cash, bonds and/or property weightings. We believe that this

Fund is an attractive addition to a long term, blue chip portfolio.

SECTOR allocation

Financials 2.45%

Resources 18.42%

Industrials 31.32%

8.74%

11.11%

2.42%

8.01%

0.24%

Property



Units trusts

Bonds

Cash 17.29%

PerformanceFund benchmark

1 Year 21.38% 11.24%

3 Year 25.60% 11.70%


ClucasGray Future Titans Prescient Fund


FUND INFORMATION

Fund Manager: Craig McKay

Fund classification: Worldwide Multi-Asset Flexible

Benchmark: South African CPI + 5%

Fund size: R99.1m


Risk Profile: Moderate/High

Objective

The objective of the Fund is to achieve returns in excess of SA inflation + 5% per annum over the medium to longer-term, whilst actively managing the risk aspects of the portfolio over time. This Fund is not


SECTOR allocation

Financials 6.91%

Resources 11.42%

Industrials 17.56%

4.46%

48.49%

1.99%




Cash 9.17%

Performance


CORDATUS WW FLEXIBLE Prescient Fund


FUND INFORMATION

Fund manager: Craig McKay

Fund classification: Worldwide Multi-Asset Flexible

Benchmark: South African CPI + 5%

Fund size: R229.1m


Risk Profile: Moderate/High

Objective

The objective of the Fund is to achieve returns in excess of SA inflation + 5% per annum over the medium to longer-term, whilst actively managing the risk aspects of the portfolio over time. This Fund is not


97.34%

SECTOR allocation

Unit trusts

Cash 2.66%

Performance


Cordatus ww flexible Prescient Fund of Funds


FUND INFORMATION

Fund manager: Stephen Brown

Fund classification: Domestic General Equity


Fund size: R1.1bn



Objective

n The Fairtree Equity Prescient Fund is an actively managed general equity fund with a focus on maximising total returns for clients.

n The portfolio will invest in offshore securities for the benefit of diversification and higher returns.

n The portfolio aims to actively invest in equities with a level of capital appreciation and income potential which is above the FTSE/JSE Shareholder Weighted All Share Index.

n The portfolio will have a long-term focus and invest in securities across all sectors of the JSE Securities Exchange which trade below intrinsic value or have capital appreciation potential. The portfolio will

invest in offshore securities when the benefit of higher returns and portfolio diversification are available.

n The portfolio aims to be constructed in a diversified manner and provide returns above the index while exhibiting a lower level of volatility in returns than the index.

SECTOR allocation

Financials 28.70%

Resources 30.21%

Industrials 31.44%

8.41%Information technology

Cash 1.24%

PerformanceFund ALL SHARE INDEX

1 Year 29.68% 24.48%


Fairtree Equity Prescient Fund


FUND INFORMATION

Fund manager: Bradley Anthony and Jacobus Lacock

Fund classification: South Africa Multi-Asset High Equity

Benchmark: CPI

Fund size: R35.1m



Objective

The Fairtree Flexible Balanced Prescient Fund is an actively managed multi asset class fund. The fund aims to provide a moderate risk and return profile, from a diversified and balanced range of asset classes. The

Fund targets an annualized return of inflation (CPI) plus 5% over a rolling three year period. This is achieved through active asset allocation and blending together a collection of the best Fairtree ideas into a

diversified portfolio. The portfolio has a long-term focus and invests predominately in domestic securities while a foreign exposure of up to 25% is allowed.

SECTOR allocation

Financials 9.38%

Resources 10.83%

Industrials 11.63%

3.34%

1.08%

0.11%

0.12%

13.71%

6.62%




Derivatives

Unit trusts

Bonds

Cash 43.18%

Performance


Fairtree Flexible Balanced Prescient Fund


FUND INFORMATION

Fund manager:


Benchmark:

Fund size:

Inception date:

Risk Profile:

Danie Berrange

South African General Equity

FTSE/JSE: SWIX

R19.8m

01 July 2006

High

Objective

Equity markets have shown that they are the only asset class to consistently outperform inflation over the long term. Short term volatility is used to purchase good companies at reasonable prices. The primary

objective of the Fund is to seek capital growth in excess of inflation over the long term. The target of the Fund is to consistently add value by outperforming the benchmark over the long term, even though the

portfolio will be managed with a relative low tracking error to the benchmark. The portfolio equity exposure will always exceed 75%.

SECTOR allocation

Financials 15.50%

Resources 27.84%

Industrials 39.39%


Cash 6.94%

PerformanceFund BENCHMARK

1 Year 18.70% 20.60%

3 Year 35.60% 53.50%


Huysamer Equity Prescient Fund


FUND INFORMATION

Fund manager: Danie Berrange

Fund classification: South African – Multi-Asset – Flexible (Regulation 28 Compliant)

Benchmark: 70% SWIX / 30% Cash

Fund size: R11.1m


Risk Profile: High

Objective

Equity markets have shown that they are the only asset class to consistently outperform inflation over the long term. Short term volatility is used to purchase good companies at good prices. The Fund's

investment strategy is to earn a return in excess of CPI (3 month lag) +4% over the long term. This portfolio is for the client who seeks long-term wealth creation with a similar risk appetite than the average

person investing in pension funds. This portfolio typically has an investment horizon of three years plus.

SECTOR allocation

Financials 11.86%

Resources 21.48%

Industrials 26.36%


Cash 31.06%


1 Year 19.10% 17.30%


Huysamer Opportunity Prescient Fund


FUND INFORMATION

Fund manager: Arthur Thompson

Fund classification: South African Equity Large Cap

Benchmark: FTSE-JSE Top40 Index (TOPI)

Fund size: R49.9m



Objective

Integre Large Cap Fund’s (ILCF) objective is to produce a superior return to the benchmark FTSE-JSE Top40 Index (TOPI) over the longer-term, without excessive increase of the risk exposure of the portfolio.

SECTOR allocation

Financials 28.78%

Resources 5.08%

Industrials 11.65%

12.19%

13.36%

17.59%

Property



Cash 11.35%


1 Year 7.10% 17.80%


Integre Large Cap PRESCIENT Fund


FUND INFORMATION

Fund manager: Gavin Vorwerg, Murray Winckler

Fund classification: South Africa Multi-Asset Flexible

Benchmark: CPI +5%

Fund size: R178.4m



Objective

The Laurium Flexible Prescient Fund has a primary investment objective of long-term capital growth. The Fund aims to achieve a return of at least 5% above CPI per annum, measured over rolling 3 year periods.

SECTOR allocation

Financials 15.83%

Resources 16.16%

Industrials 38.90%

0.60%

7.36%

7.04%

9.91%

Property




Cash 4.20%

Performance


Laurium Flexible PRESCIENT Fund


FUND INFORMATION

Fund manager: Investec Asset Managers

Fund classification: South African – Equity – General

Benchmark: FTSE / JSE All Share Index(ALSI)

Fund size: R133.3m



Objective

The portfolio uses a specialist equity strategy with prudential foreign exposure. This type of portfolio can be used as a component of a larger portfolio, offering the prospect of significant outperformance of

South African equity indices, using a responsible investment process. The strategy seeks to integrate greater environmental and social information into the investment decision making process, seeking to build

a portfolio of investments that meet long term capital growth objectives. Investec will target returns in excess of the benchmark, measured over rolling three-year periods (ALSI + 2%p.a gross of fees and tax

over rolling three-year periods, under current market conditions).

SECTOR allocation

Financials 13.16%

Resources 32.22%

Industrials 35.26%

12.14%

1.34%



Cash 5.88%


1 Year 15.80% 23.60%


PRESCIENT living planet Fund


FUND INFORMATION

Fund manager: David Hansford


Benchmark: 75% FTSE/JSE Shareholder Weighted All Share Index (SWIX) Total Return + 25% Cash (SteFI)

Fund size: R40.7m



Objective

The Prescient Private Clients Flexible Fund is an actively managed portfolio which aims to provide real long-term growth in capital. Investors should note that a flexible collective investment scheme can hold

any combination of shares, bonds and cash, as well as invest up to 25% of the portfolio in foreign assets. The Fund will predominantly invest in equities and may either hold cash and/or make use of derivatives

to protect capital in periods of market turbulence.

SECTOR allocation

Financials 16.02%

Resources 36.50%

Industrials 5.91%

7.47%

18.66%

3.82%




Cash 11.62%


1 Year 19.68% 19.61%

3 Years (p.a.) 13.73% 15.84%


Prescient Private Clients Flexible Fund


FUND INFORMATION

Fund manager: David Hansford


Benchmark: 62.5% FTSE/JSE Shareholder Weighted All Share Index Total Return (SWIX) + 12.5% All Bond Index Total Return (ALBI) + 25% Cash (STEFI)

Fund size: R5.7m



Objective

The Prescient Private Clients Managed Fund is an actively managed portfolio which aims to provide real long-term growth in capital. The Fund invests in shares, bonds, cash, ETFs, listed real estate and

derivatives, with up to 25% of the portfolio in foreign assets. The Fund may either hold cash and/or make use of derivatives to protect capital in periods of market turbulence. The Fund is managed in accordance

with Regulation 28.

SECTOR allocation

Financials 11.36%

Resources 24.86%

Industrials 6.39%

6.79%

5.83%

18.45%

7.59%

0.01%

6.58%

Property




Unit trusts

Bonds

Cash 12.14%


1 Year 14.44% 16.54%

Prescient Private Clients Managed Fund


FUND INFORMATION

Fund manager: Luke Sparks, Andre Joubert

Fund classification: South African Equity General

Benchmark: FTSE-JSE All Share Index

Fund size: R126.0m



Objective

The Fund’s objective is to produce above average long-term returns by investing in the South African equity market. It will simultaneously aim to assume less risk than the risk inherent in the market itself.

The Fund adopts a conservative investment philosophy.

SECTOR allocation

Financials 17.45%

Resources 16.78%

Industrials 44.83%


Cash 5.45%


1 Year 23.63% 23.55%

3 Years (p.a.) 16.32% 17.62%

5 Years (p.a.) 18.06% 21.98%


Maestro Equity prescient Fund


FUND INFORMATION

Fund manager: Mergence Investment Managers (Pty) Ltd

Fund classification: South African – Multi-Asset – Medium equity

Benchmark: Headline Consumer Price Index + 4%

Fund size: R17.8m


Risk Profile: Low

Objective

The Fund is managed with the objective of producing a real return of CPI plus 4% per annum over the longer term while preserving capital over rolling 36 month periods. It may underperform relative to overall

equity markets due to its focus on capital preservation and long-term capital growth.

SECTOR allocation

Financials 10.52%

Resources 10.00%

Industrials 20.25%

3.42%

3.87%

22.18%

2.76%

Property



Bonds

Cash 27.00%


1 Year 9.80% 9.92%


Mergence CPI+4% Prescient Fund


FUND INFORMATION

Fund manager: Mergence Investment Managers

Fund classification: South African General Equity


Fund size: R69.4m


Risk Profile: Low

Objective

The objective is to achieve returns that are in excess of the FTSE/JSE Shareholder Weighted Index (SWIX) over any three-year rolling period, without exposing the Fund to excessive risk.

SECTOR allocation

Financials 22.09%

Resources 23.15%

Industrials 42.30%


Cash 2.27%


1 Year 24.61% 24.48%

3 Years (p.a.) 19.24% 19.24%


Mergence Equity Prescient Fund


Statement of Financial Position

Prescient FundsR’000

OUR FINANCIAL INFORMATION

Securities at market value 55,900 524,226 307,498 196,557 297,182 29,931 15,666

Other assets 5,576 14,289 13,763 186 5,215 3,687 248

Total 61,476 538,515 321,261 196,743 302,397 33,618 15,914

Total unitholder funds 59,278 520,012 306,231 196,625 290,800 32,484 15,289

Total liabilities 2,198 18,503 15,030 118 11,597 1,134 625

Total 61,476 538,515 321,261 196,743 302,397 33,618 15,914

Net income 16,227 49,151 17,942 8,789 54,691 4,392 2,862

Distributions 2,418 15,518 36,148 - 11,532 1,068 624

Undistributed income/(deficit) at year end 13,809 33,633 -18,206 8,789 43,159 3,324 2,238

Prescient Prescient Prescient Prescient Prescient Prescient Prescient

Africa Absolute Bond China Equity Active Equity Equity

Equity Balanced QuantPlus® Balanced Quant Defender Income

Fund Fund Fund Feeder Fund Fund Fund Fund



Prescient Funds (continued)R’000


Securities at market value 268,292 49,425 4,255 132,657 3,889,034 209,087 128,046

Other assets 17,156 187 49 109 112,768 2,794 8,463

Total 285,448 49,612 4,304 132,766 4,001,802 211,881 136,509

Total unitholder funds 276,250 49,611 4,303 132,703 3,958,824 209,828 133,326

Total liabilities 9,198 1 1 63 42,978 2,053 3,183

Total 285,448 49,612 4,304 132,766 4,001,802 211,881 136,509

61,004 11,424 844 15,224 330,330 16,183 17,427

9,128 - - - 204,476 15,802 3,020

Net income

Distributions

Undistributed income at year end 51,876 11,424 844 15,224 125,854 381 14,407


Equity Global Global Global Income Income Living

Quant Positive Return Growth Income Provider Saver Planet

Fund Feeder Fund Feeder Fund Feeder Fund Fund Fund Fund





Securities at market value 1,029,301 7,863 5,169 12,918 13,780 1,838,759 2,216

Other assets 99,608 58 64 88 375 36,864 61

Total 1,128,909 7,921 5,233 13,006 14,155 1,875,623 2,277

Total unitholder funds 1,123,625 7,618 5,020 12,581 13,639 1,802,236 2,114

Total liabilities 5,284 303 213 425 516 73,387 163

Total 1,128,909 7,921 5,233 13,006 14,155 1,875,623 2,277

Net income 68,270 854 445 1,530 1,624 190,887 44

Distributions 68,257 287 197 412 505 70,127 163

Undistributed income/(deficit) at year end 13 567 248 1,118 1,119 120,760 -119


Money Optimised Optimised Optimised Optimised Positive Return Property

Market Balanced Conservative Growth Moderate QuantPlus® Equity

Fund Fund of Funds Fund of Funds Fund of Funds Fund of Funds Fund Fund





Securities at market value 7,188,575 96,935 44,681 3,688,739

Other assets 113,064 3,425 605 31,700

Total 7,301,639 100,360 45,286 3,720,439

Total unitholder funds 7,216,174 98,583 44,161 3,699,170

Total liabilities 85,465 1,777 1,125 21,269

Total 7,301,639 100,360 45,286 3,720,439

344,720 15,257 2,677 278,602

317,976 1,683 1,566 263,562

Net income

Distributions

Undistributed income at year end 26,744 13,574 1,111 15,040

Prescient Prescient Prescient Prescient

Stable Wealth Wealth Yield

Income Balanced Income QuantPlus®

Fund Fund of Funds Fund of Funds Fund



Co-named FundsR’000



Other assets 1,070 29,958 25,745 419 977 9,342 6,119

Total 5,804 329,739 386,509 3,055 29,098 89,003 56,012


Total liabilities 98 4,200 4,842 55 60 3,099 796

Total 5,804 329,739 386,509 3,055 29,098 89,003 56,012

Net income 512 28,369 47,103 170 -695 13,292 6,362

Distributions 41 3,723 7,367 - - 1,167 490

Undistributed income/(deficit) at year end 471 24,646 39,736 170 -695 12,125 5,872

3Laws 27four 27four 27four 27four 27four 27four

Climate Change Asset Select Balanced Equity Global Equity Shari’ah Shari’ah Balanced

Equity Prescient Prescient Prescient Prescient Active Equity Prescient

Prescient Fund Fund of Funds Fund of Funds Fund of Funds Feeder Fund Prescient Fund Fund of Funds



Co-named Funds (continued)R’000


Securities at market value 334,229 27,323 31,984 414,037 5,897,316 49,294 11,171

Other assets 37,990 1,372 2,940 74,536 205,464 4,918 112

Total 372,219 28,695 34,924 488,573 6,102,780 54,212 11,283

Total unitholder funds 369,147 27,291 33,491 471,686 5,915,977 52,809 10,984

Total liabilities 3,072 1,404 1,433 16,887 186,803 1,403 299

Total 372,219 28,695 34,924 488,573 6,102,780 54,212 11,283

34,549 4,368 4,750 35,796 1,307,455 8,271 2,068

8,563 1,402 1,386 24,639 169,034 1,366 248

Net income

Distributions

Undistributed income at year end 25,986 2,966 3,364 11,157 1,138,421 6,905 1,820

27four Abax Abax Abax Abax Aeon Aeon

Stable Absolute Return Balanced Diversified Income Equity Balanced Enhanced Equity


Fund of Funds Fund Fund Fund Fund Fund Fund






Other assets 10,897 6,861 13,670 36,733 44,706 7,976 83,299

Total 311,443 59,134 185,952 419,308 300,219 59,953 470,183


Total liabilities 8,722 1,809 6,852 16,797 9,258 1,317 6,985

Total 311,443 59,134 185,952 419,308 300,219 59,953 470,183

72,167 7,419 7,827 106,330 53,881 10,403 56,931

8,674 1,726 1,935 6,885 5,184 1,228 5,458

Net income

Distributions

Undistributed income at year end 63,493 5,693 5,892 99,445 48,697 9,175 51,473

Afena Afena Aylett Aylett Bateleur ClucasGray ClucasGray

Equity Managed Balanced Equity Flexible Equity Future Titans


Fund Fund Fund Fund Fund Fund Fund





Securities at market value 91,439 224,974 1,123,202 26,427 18,758 7,816 45,223

Other assets 9,623 6,320 27,721 10,975 1,526 3,636 11,455

Total 101,062 231,294 1,150,923 37,402 20,284 11,452 56,678

Total unitholder funds 99,190 229,199 1,108,539 35,163 19,890 11,172 49,958

Total liabilities 1,872 2,095 42,384 2,239 394 280 6,720

Total 101,062 231,294 1,150,923 37,402 20,284 11,452 56,678

14,660 30,527 249,127 2,870 3,672 1,727 4,862

1,807 1,938 30,920 500 325 204 1,168

Net income

Distributions

Undistributed income at year end 12,853 28,589 218,207 2,370 3,347 1,523 3,694

Cordatus Cordatus Fairtree Fairtree Huysamer Huysamer Integre

WW Flexible WW Flexible Equity Flexible Balanced Equity Opportunity Large Cap


Fund Fund of Funds Fund Fund Fund Fund Fund





Securities at market value 174,640 36,013 5,062 121,200 13,182 69,123

Other assets 12,532 4,835 776 7,832 5,090 2,446

Total 187,172 40,848 5,838 129,032 18,272 71,569

Total unitholder funds 178,414 40,742 5,769 126,036 17,814 69,407

Total liabilities 8 758 106 69 2 996 458 2 162

Total 187 172 40 848 5 838 129 032 18 272 71 569

22,365 5,918 580 24,689 1,664 14,775

4,117 21 3 2,171 599 1,501

Net income

Distributions

Undistributed income at year end 18,248 5,897 577 22,518 1,065 13,274

Laurium Prescient Prescient Maestro Mergence Mergence

Flexible Private Clients Private Clients Equity CPI + 4% Equity

Prescient Flexible Managed Prescient Prescient Prescient

Fund Fund Fund Fund Fund Fund


Report in terms of Section 70(1)(f) of the Collective Investment Schemes Control Act 2002 (Act No 45 of 2002), for the period 01 April 2013 to 31 March 2014

– Prescient Management Company (RF) Limited (‘The Manager’).

As trustee of the above mentioned Collective Investment Scheme, we advise that we have controls in place to give us reasonable assurance that the following are being

complied with by you, the Manager:

i. The limitations imposed on the investment and borrowing powers of the Manager by the Act; and

ii. The provision of the Act and the Trust Deed.

There were no material instances of compliance contraventions and therefore no consequent losses incurred by the Portfolios in the year.

Yours truly

Renee Theron Shonese Hassim

Senior Manager Manager CIS Trustee

TrusteeS Report


Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CIS are traded at the ruling price and can engage scrip lending and borrowing up to 10% of the market value of the portfolio to bridge insufficient liquidity. A schedule of fees, charges and maximum commissions is available on request from Prescient Management Company Ltd. Commission and incentives may be paid and if so, would be included in the overall costs. Different classes of units may apply in a portfolio and are subject to different fees and charges. A fund of funds is a portfolio that invests in portfolios of collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. 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. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of any underlying international investments to go up and down. CIS prices are calculated on a net asset basis, which is the total value of all the assets in the portfolio including any income accruals and less any permissible deductions (Brokerage, STT, VAT, Auditor’s fees, Bank Charges, Trustee and Custodian fees and the annual Management fee) from the portfolio divided by the number of participatory interests (units) in issue. 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 TER’s. During the phase in period TER’s do not include information gathered over a full year.

Contact Information

Prescient House, Westlake Business Park

Otto Close, Westlake

Cape Town, South Africa

PO Box 31142, Tokai 7966

Tel: +27 21 700 3600

Fax: +27 21 700 3700

Website: www.prescient.co.za

abridged annual report for the year ended 31 march … · over the past year we have continued to...

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