southern charter bci worldwide flexible fof as at 31 may ... · year 2015 2014 2013 2012 2011 2010...

Southern Charter BCI Worldwide Flexible FoF as at 31 May 2016Minimum Disclosure Document - Date of issue 25 June 2016 page 1|2

Risk profile

Low Low-Mod Mod Mod-High High

Portfolio manager

Ursula Maritz / Mark Thompson

First Floor, Silverberg Terrace

Steenberg Office Park

Steenberg Road

TOKAI, 7945

Authorised Financial Services Provider

FSP No. 740

Contact: Mark Thompson / Ursula MaritzTelephone: (021) 7001000Web: http://www.southerncharter.co.za

Portfolio details

Sector: Worldwide Multi Asset FlexibleLaunch date: 01 October 2013Size of fund: R79.0 MBenchmark: CPI+5% p.a.

Minimum investment

R10 000 Lump sum or R1000 monthly debit order.

Income distribution

Income distribution 2015: 0.52 centsIncome distribution 2016: 0.33 centsDeclaration date 29 Feb, 31 AugPayment date 2nd working day of March /SeptemberValuation time 08h00 (T + 1)Transaction time 14H00

Total Expense Ratio (TER)

Total Expense Ratio (Including VAT) 2.78%Performance fee included in TER 0.16%Portfolio Transaction Cost 0.11%Total Investment Charge (TER + TC) 2.89%

A higher TER ratio 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. Transaction Costs are 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. The

TER and Transaction cost is calculated for the 3 year

period / since inception (annualised) ending 31 March

2016.

Fees incl VAT

Manager's upfront charge (max) 0.00%FSP upfront commission (max) 0.00%Annual management fee 1.14%

Performance fee

15% of excess performance above benchmark,

calculated over a 2 year rolling period, capped at a

maximum of 1.5% p.a. ex VAT.

Investment objectiveThe Southern Charter BCI Worldwide Flexible Fund of Funds primary objective is to generate moderateto high long term total returns. The fund aims to provide investors with capital growth of 5 % aboveinflation over a 2 year rolling period, by investing in a combination of asset classes including local andinternational equities, fixed interest, property and cash. The manager shall have maximum flexibility interms of asset allocation and shall not be precluded from continually varying the underlying exposureto both local and offshore assets such as equities, non-equity securities, bonds, preference shares,property, fixed interest and money market portfolios and assets in liquid form. This fund is NOTRegulation 28 compliant and therefore will reflect our best unconstrained asset allocation strategy. It isideal for investors with discretionary funds and who are willing to have a high exposure to offshoreassets.

StrategyThe Fund is actively managed and reflects our best unconstrained asset allocation strategy.

Fund Performance (net of all fees)

Fund Return 1 Year Since Inception

SC Flexible FoF's Cumulative 11.4% 41.2%

CPI + 5% Cumulative 11.5% 32.4%

SC Flexible FoF's Annualised 11.4% 13.8%

CPI + 5% Annualised 11.5% 11.1%

Highest and Lowest Monthly Figures per Calendar Year

Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

High 5.60% 1.98% 2.88 - - - - - - -

Low -2.03% -0.51% 0.54 - - - - - - -

R145K

R141K

Fund Average Fund

Ince

ptio

n

Sep

13

Oct

13

Nov

13

Dec

13

Jan

14

Feb

14

Mar

14

Apr

14

May

14

Jun

14

Jul 1

4

Aug

14

Sep

14

Oct

14

Nov

14

Dec

14

Jan

15

Feb

15

Mar

15

Apr

15

May

15

Jun

15

Jul 1

5

Aug

15

Sep

15

Oct

15

Nov

15

Dec

15

Jan

16

Feb

16

Mar

16

Apr

16

May

16

95K

100K

105K

110K

115K

120K

125K

130K

135K

140K

145K

Fund CommentarySARB held its rates steady at its May meeting to favour growth fundamentals as opposed to inflationdynamics. Global risk aversion and renewed fears of a downgrade were among the factors driving therand lower against major currencies. The rand depreciated by 10.4% vs the USD in May, which led torand hedges outperforming significantly, as BAT, SABMiller and Naspers soared +11.3%, +12.8% and+18.4% respectively. Hence the ALSI gained +1.8%, although gains were not across the board asthe resources index fell -3.8%, tracking commodity prices lower, whilst financial shares followed therand and bond yields lower, losing -2.0%, banks were down -4.0% on fears of a downgrade andhigher borrowing costs.

The SA 10-year yield jumped from 8.96% at the end of the previous month to 9.37% the end of May.As a result, the ALBI rendered a -1.5% return for the month. South African markets have seen capitaloutflows in both equity- and bond markets for May, to the tune of R17.2 bn and R10.1 bnrespectively. However on an YTD basis, bond inflows amount to R24.7 bn, with equity outflows atR60.2 bn.

The global growth recovery remains fragile and inflation out of sight, which should cap developedmarket bond yields, especially as inflation pressures remain subdued. Continued uncertaintyregarding the Chinese economy remains a risk, especially for commodity producers like South Africa.

Southern Charter BCI Worldwide Flexible FoF as at 31 May 2016 page 2|2

Risk profile

Low Low-Mod Mod Mod-High High

Medium | Medium-High Risk

These portfolio's generally hold more equity exposure

than low risk portfolio's but less than high risk

portfolios. In turn the expected volatility is higher than

low risk portfolios, but less than high risk portfolios.

The probability of losses are higher than that of the low

risk portfolios, but less than high risk portfolios.

Expected potential long term investment returns could

therefore be lower than high risk portfolios due to lower

equity exposure, but higher than low risk portfolios.

FAIS Disclosure

Please note that your financial advisor may be a related

party to the conaming partner and/or BCI. It is your

financial advisor's responsibility to disclose all fees

he/she receives from any related party. The portfolio's

TER includes all fees paid by portfolio to BCI, the

trustees, the auditors, banks, the co-naming partner,

underlying portfolios, and any other investment

consultants/managers as well as distribution fees and

LISP rebates, if applicable. The portfolio's performance

numbers are calculated net of the TER expenses. The

investment manager earns a portion of the service

charge and performance fees where applicable. In some

instance portfolios invest in other portfolios which forms

part of the BCI Schemes. These investments will be

detailed in this document, as applicable.

JSE Code

Southern Charter BCI Flexible Fund of Funds: SCMCA

ISIN Code

Southern Charter BCI Flexible Fund of Funds:

ZAE000182911

Bloomberg Code

SOCMWFA: SJ

Full details and basis of the award is available from the

company

Asset Allocation

Fund Benchmark *

27.5%

7.7%

1.5%

4.3%

1.9%

8.1%

45.6%

3.4%

52.5%

9.0%

13.5%

0.0%

0.0%

0.0%

15.0%

10.0%

Local Equity

Property

Bonds

Cash

Int Cash

Int Property

Int Equity

Int Fixed Income

0 % 10 % 20 % 30 % 40 % 50 % 60 %

Asset Class Performance

Monthly 1 Year

1.8%

-3.5%

-1.5%

0.6%

10.9%

11.6%

9.1%

6.3%

9.4%

1.0%

6.8%

32.1%

24.9%

36.2%

ALSI

Property

Bonds

Cash

Global Property

MSCI World

Global Bonds

0% 10% 20% 30%

Manager Selection

1.1%8.1%

2.7%

6.2%

2.8%

1.7%

13.3%

6.3%

17.4%

9.5%

13.1%

3.8%

6.3%

7.7%

Atlantic Stable Income - 1.1%Catalyst Global Property - 8.1%Coronation Global Strategic USD Inc FF - 2.7%DBX Euro 50 - 6.2%DB X-TRACKER MSCI JAPAN - 2.8%Money Market - 1.7%Foord Equity - 13.3%Foord Int Feeder Fund - 6.3%Nedgroup Global Equity - 17.4%Nedgroup Mining & Resource - 9.5%Investec Worldwide Equity - 13.1%Prescient Income Provider - 3.8%Prudential Dividend Maximiser - 6.3%Prudential Property Tracker - 7.7%

Top 10 Equity Holdings

Holding Fund Weight Holding Fund Weight

Sasol 3.29% Steinhoff 1.51%

Billiton 2.47% SAB 1.47%

BAT 2.31% Anglos 1.47%

Naspers 1.77% Mondi Plc 1.36%

Comcast 1.66% First Rand 1.29%

Additional information●Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge or can be accessed on ourwebsite www.bcis.co.za●Valuation takes place daily and prices can be viewed on our website (www.bcis.co.za) or in the daily newspaper.●Actual annual performance figures are available to existing investors on request.●Upon request the Manager will provide the investor with portfolio quarterly investment holdings reports.

Custodian: The Standard Bank of South Africa Limited: Tel (021) 441-4100. Boutique Collective Investments (RF) (Pty) Limited, Catnia Building,Bella Rosa Village, Bella Rosa Street, Bellville, 7530. Tel: 021 007 1500/1/2 | Fax: 086 502 5319 | Email: clientservices@bcis.co.za|www.bcis.co.za. Registration No 2003/024082/07.Boutique Collective Investments (RF) (Pty) Ltd ("BCI") is a registered Manager of the Boutique Collective Investments Scheme, approved in terms ofthe Collective Investments Schemes Control Act, No 45 of 2002 and is a full member of the Association for Savings and Investment SA. CollectiveInvestment Schemes in securities are generally medium to long term investments. The value of participatory interests may go up or down and pastperformance is not necessarily an indication of future performance. The Manager does not guarantee the capital or the return of a portfolio.Collective Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees, charges and maximumcommissions is available on request. BCI reserves the right to close and reopen certain portfolios from time to time in order to manage them moreefficiently. Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge. Performancefees are calculated and accrued on a daily basis based upon the daily outperformance, in excess of the benchmark, multiplied by the share rate andpaid over to the manager monthly. Performance figures quoted are from Morningstar, as at the date of this MDD for a lump sum investment, usingNAV-NAV with income reinvested and do not take any upfront manager's charge into account. Income distributions are declared on the ex-dividenddate. Actual investment performance will differ based on the initial fees charge applicable, the actual investment date, the date of reinvestment anddividend withholding tax. Investments in foreign securities may include additional risks such as potential constraints on liquidity and repatriation offunds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of marketinformation. Boutique Collective Investments (RF) Pty Ltd retains full legal responsibility for the third party named portfolio. Although reasonablesteps have been taken to ensure the validity and accuracy of the information in this document, BCI does not accept any responsibility for any claim,damages, loss or expense, however it arises, out of or in connection with the information in this document, whether by a client, investor orintermediary. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice or guidance in anyform whatsoever. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any ofBCI/the Manager's products. A fund of funds is a portfolio that invests in portfolios of collective investment schemes that levy their own charges,which could result in a higher fee structure. A fund of funds is a portfolio that invests in portfolios of collective investment schemes that levy theirown charges, which could result in a higher fee structure.