manager watch™...11 - futuregrowth asset management 137 734 137 734 level 2 12 foord asset...

DECEMBER 2014

MANAGER WATCH™SURVEY OF RETIREMENTFUND INVESTMENT MANAGERS

FINANCIAL SERVICES

Research & Product Development

We create, grow and protect your wealth and assets.

www.alexanderforbes.comA licensed financial services provider

RETIREMENT l INVESTMENT l LIFE l INSURANCE

MANAGER WATCH™ SURVEY

1

Content

Section 1 ........................................................................................................................3Introduction ....................................................................................................................4History Of Alexander Forbes Performance Surveys ........................................................5Survey Changes 2014 ....................................................................................................5Alexander Forbes Assets under Management Review .....................................................6Market Indices and Statistics as at 31 December 2014 ...................................................9Peeling back the layers: There is more to an equity manager than their performance! ....11

Section 2 ......................................................................................................................21Survey Notes ...............................................................................................................22SA Balanced Manager WatchTM Survey – Best Investment View ....................................26Global Balanced Manager WatchTM Survey – Dynamic ....................................................30Global Balanced Manager WatchTM Survey – Best Investment View ................................34Global Balanced Manager WatchTM Survey – Conservative .............................................38SA Balanced Manager WatchTM Survey – Best Investment View Volatility .......................42Global Balanced Manager WatchTM Survey – Dynamic Volatility ......................................43Global Balanced Manager WatchTM Survey – Best Investment View Volatility ..................44Global Balanced Manager WatchTM Survey – Conservative Volatility ...............................45SA and Global Balanced Manager WatchTM Survey – Volatility vs Return ........................46Global Balanced Manager WatchTM Survey – Conservative and Dynamic – Volatility vs Return .......................................................................................47Global and SA Balanced Manager WatchTM Survey – Asset Allocation ............................48Composite Dispersion (Standard Deviation) of SA Balanced Manager WatchTM Managers ..........................................................................................49Composite Dispersion (Standard Deviation) of Global Balanced Manager WatchTM Managers ..........................................................................................50

Section 3 ......................................................................................................................53SA Equity Manager Watch™ Survey ..............................................................................54SA Equity Manager WatchTM Survey Composite Dispersion ...........................................68SA Bond Manager Watch™ Survey ...............................................................................70SA Bond Manager Watch™ Survey Composite Dispersion .............................................76SA Money Market Manager WatchTM Survey .................................................................78SA Money Market Manager Watch™ Survey Composite Dispersion ...............................82Absolute Return Manager Watch™ Survey ....................................................................83Absolute Return Manager Watch™ Survey Composite Dispersion ..................................89Targeted Development Investments Manager Watch™ Survey .......................................91SA Fund of Hedge Funds Survey .................................................................................94SA Property Manager Watch™ Survey ..........................................................................96Multi-Manager WatchTM (Specialist) Survey .....................................................................99Multi-Manager WatchTM (Balanced) Survey ...................................................................102SA Medical Aid Manager Watch™ Survey ....................................................................107LDI Manager WatchTM Survey ......................................................................................109

Section 4 ....................................................................................................................117Case Study: A summary analysis of South African Equity Managers ...........................118Base Fees – Indicative Range .....................................................................................130Base Fees plus Performance Fees – Indicative Ranges ...............................................131Fee Analysis ...............................................................................................................132

Section 5 ....................................................................................................................137Glossary .....................................................................................................................138

Section 6 ....................................................................................................................145Directory of South African Asset Managers ................................................................146

MANAGER WATCHTM SURVEY

Introduction

History of Alexander Forbes Performance Survey

Survey Changes 2014

Alexander Forbes Assets under Management Review

Market Indices and Statistics as at 31 December 2014

Peeling back the layers: There is more to an equity manager than their performance!

1

4


Introduction

The Structure of the Retirement Fund Survey

This edition includes fourteen surveys with 46 managers and 335 funds, covering four balanced surveys, nine specialist surveys, and the multi-manager survey.

The criteria for participation in any of the surveys remain unchanged from 2010 where a fund size of R200 million, as well as a 12-month track record, is prerequisite. The R200 million criterion is applicable to all funds in most survey categories except where it is specifically indicated that this criterion is excluded.

Managers are encouraged to submit new entrants into the surveys promptly as we are cognisant of not allowing back-fill bias to skew our historical databases.

All participants are, from time to time, expected to sign a document pertaining to participation rules for the Alexander Forbes Manager Watch™ surveys.

Each survey shows performance returns over different time periods as well as risk-adjusted performance over a three-year period in figures and an easy-to-use graphical format. 2014 saw a number of exits as well as a few entries to the existing surveys. The table on page 7 reflects funds that entered or exited the surveys over the past year, as well as any name changes.

The Manager Watch™ Survey includes a detailed commentary around the pertinent issues experienced by funds within this survey over the various periods to December 2014. This serves to inform readers of the themes that the markets are being influenced by.

We give indicative fee ranges for the different mandates based on fee scales that asset managers submit. We have also differentiated between base fees and performance fees. The fee survey provides transparency and scrutiny of fee structures for different investment mandate within the industry as a means of providing trustees with insight into the costing

of different mandates which can be implemented subject to the cost sensitivities of pension funds. This year we have included an analysis of fee structures over the last 3 years to provide deeper insight into trends in various fee categories and inherent implications.

It is important to note that actual negotiated fees could be lower than published fees.

This publication lists the decomposition of equity funds and explores whether SA Equity managers are different. We also provide a review of what happened in 2014 and how managers performed in light of prevailing economic conditions.

A glossary of commonly used investment terms is included.

Conclusion

It is important to remember that the surveys provide only a platform for asset managers to display returns in a simple and credible way. Whilst trying to keep these surveys simple and easy to read it is imperative to include a number of useful indicators for greater understanding of risk and performance.

Manager evaluation should never be done in isolation but rather with a clear understanding of the weaknesses that any data sources inherently bring to the table. Ideally, analyses need to be done through different market environments using a number of different sources and advice, before a fair assessment of strengths and weaknesses can be made. Lastly, past performance is no indication of future performance – Caveat Emptor!

The Manager Watch™ Survey of Retirement Fund Investment Managers is an annual survey that showcases the performance of institutional fund managers in South Africa and has been published since 1994.

The following surveys are included: ■ SA Manager Watch™ & Global Manager Watch™ Survey – Balanced Mandates

■ SA Equity Manager Watch™ Survey ■ SA Bond Manager Watch™ Survey ■ SA Money Market Manager Watch™ Survey ■ Absolute Return Manager Watch™ Survey ■ Targeted Development Investment Survey ■ Fund of Hedge Fund Survey ■ SA Property Manager Watch™ Survey ■ Multi Manager Watch™ Survey ■ Medical Aid Manager Watch™ Survey ■ LDI Manager Watch™ Survey

5

SECTION 1

Exits Entries

SA Best Investment View Momentum AM Domestic Balanced Fund STANLIB AM(Domestic)

SA Large Momentum AM Domestic Balanced Fund

Global Dynamic OMIG MacroSolutions Edge 28

Global Best Investment View Momentum MoM Enhanced Factor 7

Global Conservative

Global Large

Equity Survey ABSA Asset Management Core Equity

Investec RI Equity Fund

Community Growth Equity Fund

SA Bonds Survey Cadiz Core Bond Atlantic Bond Composite

Investec Dynamic Bond Portfolio

SA Money Market Survey Argon Enhanced Money Market Fund

Absolute Return Survey Vunani Fund Managers CPI +3 % Prudential Domestic Real Return + 5%

Argon Absolute Return OMIG Wealth Defender

RECM Balanced Full Discretion Composite

Mergence CPI + 4% Fund

SA Medical Aid Survey Momentum AM Medical Money Market Fund

ABSA Asset Management Medical Aid Fund

SIM Enhanced Cash Medical

Nedgroup Investments Coporate Money Market Fund

SA Fund of Hedge Funds Survey Edge Iconic Absolute Return Fund

SA Property Survey Catalyst FM Composite Property Capped Index Funds Sesfikile Property Composite

Momentum MoM Property Portfolio

Multi-Manager Survey Momentum MoM Classic Factor 5 Momentum MoM Target Factor 7

Momentum MoM Target Equity

Targeted Development Investment Survey

Investec RI Equity Fund

Community Growth Equity Fund

Cadiz Infrastructure Bond Fund

History Of Alexander Forbes Performance Surveys

Survey Changes 2014

2002Money Market Survey

2004Hedge FOF Survey

2007Medical Aid Survey

2010BEE Survey

2012LDI Survey

2014Equity Funds Analysis

2003 Specialist Bond Survey

2006 International Survey

2013 FormalisedSurvey Goverance

2015 Survey Rules

Specialist Equity Survey Property Survey Surveys Revamped

1994Manager Watch™ Performance-Only Survey – a market first!

1998 ■ Manager Watch™ Survey revamped ■ Participation criteria set ■ Large Manager Watch™

- Launched June 1998 - Top 10 active balanced

managers ■ RDP Survey (later renamed

Targeted Development Investments Survey)

2001Absolute Return Survey

Enhancements post-1998

• Risk profiling• SA-only and Global-only portfolios• Benchmark returns• Risk-adjusted measures

6


Alexander Forbes Assets under Management Review

2014 Rank Asset Manager AuM (R m) including

International Mandates AuM (R m)* BEE Status

1 Coronation Fund Managers 576 566 552 150 Level 3

2 Old Mutual Investment Group 574 663 553 982 Level 2

3 Investec Asset Management 505 369 430 103 Level 2

4 Allan Gray Ltd 462 089 435 742 Level 3

5 Sanlam Investment Management 446 270 423 478 Level 2

6 - STANLIB Asset Management 403 101 403 101 Level 2

7 - Investment Solutions 270 651 269 605 Level 2

8 - Momentum Asset Managers 179 975 179 975 Level 3

9 Prudential Portfolio Managers 177 693 161 130 Level 2

10 Momentum Manager of Managers 170 625 170 625 Level 2

11 - Futuregrowth Asset Management 137 734 137 734 Level 2

12 Foord Asset Management 136 534 136 534 N/A

13 - ABSA Asset Management 104 398 104 398 Level 3

14 - Sanlam Multi-Manager International 93 192 93 192 Level 2

15 - Taquanta Asset Managers 90 175 90 175 Level 2

16 - ABAX investments 73 676 57 617 N/A

17 Kagiso Asset Management 71 412 71 412 Level 2

18 Old Mutual Global Index Trackers 64 118 49 430 Level 2

19 Prescient Investment Management 59 064 59 064 Level 2

20 SymmETRY Multi-Manager 56 488 56 488 Level 2

* AuM as reported in the Alexander Forbes AuM survey June 2014. These figures represent AuM that exclude international mandates. Please note that due to standardisation methodology, numbers may be overstated.

Top 20 Asset Managers ranked by Total Assets Under Management (AuM) as at 30 June 2014

Review of AuM for June 2014

Out of the 40 participating asset managers, Coronation Fund Managers is now the biggest manager with South African investment mandates. Coronation’s growth in AuM of 32.8% was attributed to strong market movements and retail inflows with institutional flows flat for the period. Old Mutual Investment Group and Investec Asset Management are close behind and may be bigger investment houses but this is due to international mandates.

Allan Gray moved up to fourth and had the second highest increase in AuM of 22.6% which was largely driven by market movements. Sanlam Investment Management settled as fifth largest manager despite a 11.0% rise in their asset base. Prescient Investment Management had a substantial drop in their AuM since 2013, attributable to Prescient (Ireland) being sold to J&E Davey, and a change in the reporting requirements of the survey.

Fairtree and Rezco became the two new additions in the survey with AuMs of R15 881m and R2 056m respectively. The total AuM including multi managers has grown by 20.4% over the 12 months. The 10 largest investment management companies in South Africa accounted for 79% of total AuM including multi managers.

7

SECTION 1

Total Value of Assets Managed (31 December 2004 to 30 June 2014)

Asset Distribution to Manager Size

Dec-2011 Jun-2012 Jun-2013 Jun-2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Next 10 Managers Remaining ManagersTop 10 Managers

Growth in Assets (year on year)

Total AuM (R m) excl Multi-ManagerTotal AuM (R m)

Total AuM (R m)

Total AuM (R m)excl Multi-Manager

Dec-2004

1 519 642 1 897 841 2 218 265 2 627 889 2 465 853 2 718 458 3 082 163 3 187 853 3 300 885 3 929 696 4 940 445

1 385 371 1 706 124 1 943 400 2 362 524 2 190 067 2 433 650 2 760 257 2 850 977 2 950 020 3 428 804 4 147 637

Dec-2005 Dec-2006 Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Jun-2012 Jun-2013 Jun-20140

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

8


Asset Distribution to Manager BEE Ratings

The asset distribution shifted positively in 2014 towards Level 2 asset managers with a 16% drop in the Level 3 contributors. This was not a decision by trustees to allocate assets to better BEE managers but rather an increase in the number of large managers improving their BEE score to Level 2 contributors.

Asset Managers with a BEE status of Level 1 saw no growth in their relative asset base over the last year. The Level 3 asset managers that moved to Level 2 BEE status and improved their rating were Element, Investment Solutions, Prudential, Sanlam Multi

Managers and SIM. AFENA Capital and JM Busha who were Level 5 contributors in 2013 also jumped to Level 2 in 2014. There has been no change to calculation methodology for the BEE scorecard over this period.

Manager Distribution according to BEE Ratings

A total of 7 of the top 10 managers were rated Level 2 contributors and the remaining 3 managers were

Level 3 contributors. Aeon, Argon, Mergence, Oasis, Pam and Vunani are the only Level 1 contributors out of

the 40 participating asset managers. There are 5 asset managers in the universe who remain unrated.

Top 10 Managers

Next 10 Managers

Remaining Managers

Level 1

0.00% 70.00% 30.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00%

30.00%

70.00%

25.00%

10.00%

15.00%

0.00%

5.00%

0.00%

5.00%

0.00%

0.00%

0.00%

0.00%

0.00%

5.00%

20.00%

15.00%

Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 N/A0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

70.00%

60.00%

BEE Ratings of the asset managers were accredited by the following companies: NERA, Veridex BBBEE Verification Agents, AQRate Verification Services, Kbonga BEE Verification Agency (Pty) Ltd, Moore Stephens B-BBEE Verification and Consulting, Sizwe Ntsaluba Gobodo, National Empowerment Rating Agency, Empowerdex, BEESCORE, The Financial Sector Code, Abacus BEE Verification (Pty) Ltd, Honeycomb, Authentic Rating, SAB & T, EVS -Express Verification Service member of Empowerdex, MD Accountants & Auditors,Grant Thornton Verification Devices(Pty) Ltd, Acker & Maloney Inc., EmpowerLogic.

Growth in Assets (year on year)

2013

2014

Level 1

1.90% 45.99% 44.71% 1.73% 0.65% 0.00% 0.00% 0.55% 4.47%

1.91% 63.69% 28.67% 0.57% 0.04% 0.00% 0.00% 0.41% 4.70%

Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 N/A0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

70.00%

60.00%

9

SECTION 1

1 Year (%) 2 Years (% p.a.) 3 Years (% p.a.) 5 Years (% p.a.)

Equity (Total Return Indices)

FTSE/JSE All Share Index 10.88% 16.04% 19.48% 15.79%

FTSE/JSE Capped All Share Index 11.08% 16.20% 19.59% 16.08%

FTSE/JSE SWIX All Share Index 15.42% 18.04% 21.61% 17.78%

FTSE/JSE Top 40 Index 9.17% 15.77% 19.13% 15.16%

FTSE/JSE Resource 20 Index -15.01% -6.54% -3.43% -1.17%

FTSE/JSE Industrial 25 Index 17.22% 27.24% 32.77% 26.77%

FTSE/JSE Financial 15 Index 27.83% 23.77% 28.28% 20.90%

FTSE/JSE Mid Cap Index 19.62% 16.26% 20.51% 19.01%

FTSE/JSE Small Cap Index 20.57% 23.41% 25.23% 19.87%

Cash (Total Return Indices)

Alexander Forbes Money Market Index 5.97% 5.64% 5.62% 5.90%

Short Term Fixed Interest Rate Index 5.90% 5.54% 5.55% 5.85%

Bond (Total Return Indices)

All Bond Index 10.15% 5.28% 8.74% 10.01%

1 - 3 Year Bond Index 6.23% 5.32% 6.31% 7.32%

3 - 7 Year Bond Index 7.90% 4.63% 7.55% 9.13%

7 - 12 Year Bond Index 8.30% 3.96% 8.56% 10.38%

12+ Year Bond Index 12.91% 5.89% 10.03% 10.40%

Barclays Capital ILB Index 11.15% 5.84% 10.17% 10.90%

OTHI Index 11.81% 6.53% 10.22% 11.17%

GOVI Index 9.81% 5.04% 8.46% 9.79%

Real Estate (Total Return Indices)

FTSE/JSE SA Listed Property Index 26.64% 17.16% 23.10% 21.37%

FTSE/JSE Property Unit Trust Index 31.09% 17.01% 20.28% 19.63%

Global (in Rands) (Total Indices)

MSCI World ! 16.53% 35.36% 30.92% 21.29%

Citi WGBI ! 9.93% 14.14% 11.65% 11.28%

Citi 3M US Treasury Bill 10.49% 16.82% 12.80% 9.53%

Exchange Rates

Rand / $US 10.45% 16.77% 12.74% 9.46%

Rand / Pound 3.99% 14.37% 12.86% 8.69%

Rand / Euro -3.00% 11.87% 10.13% 5.79%

Foreign Indices (Source: Bloomberg, INET Bridge and Data Stream)All returns quoted above are Total Returns


All rights in the FTSE/JSE Africa Index Series vest in the JSE Securities Exchange South Africa (JSE) and in FTSE International Ltd (FTSE) jointly. FTSETM is a trademark of the London Stock Exchange Ltd (LSE) and The Financial Times Ltd (FT) jointly and issued by FTSE under licence. JSE is a trademark of the JSE.

The FTSE/JSE Africa Index Series is calculated by FTSE International Ltd (FTSE) in conjunction with the JSE Securities Exchange South Africa (JSE) in accordance with standard criteria. The FTSE/JSE Africa Index Series is the proprietary information of FTSE and the JSE. All copyright subsisting in the FTSE/JSE Africa Index values and constituent list vests in FTSE and the JSE jointly. All their rights are reserved.

Manager WatchTM is a registered trademark of Alexander Forbes Financial Services (Pty) Ltd, a licensed financial services provider. FAIS FSP registration number 1177.

DisclaimerIn preparing this survey, we have taken, on trust, the data supplied by the participants. The data has been checked for reasonability where possible. Although we have taken reasonable care to ensure this document is fair and accurate in all material respects, such accuracy cannot be guaranteed.

Benchmark returns may not line up with stated indices as managers have changed their benchmark during the period of participation.

Reasonable use of the survey may be made for purposes of comment and study, provided that full acknowledgment is made to Alexander Forbes Research & Product Development. Past performance is not necessarily a guide to future performance.

FAIS notice disclaimerThis information is not advice as defined and contemplated in the Financial Advisory and Intermediary Services Act 37 of 2002 as amended. Alexander Forbes Research & Product Development shall not be liable for any actions taken by any person based on the information in this survey.

11

SECTION 1

Here’s a provocative starting point:you don’t do it by looking at manager performance!

Of course that comment might be a bit extreme, but it makes an important point. What we now understand about performance and skill suggests that returns data is so “noisy” – so contaminated by factors outside of a manager’s control – that attributing outcomes to skill can be a profoundly dangerous leap of faith.

This article attempts to help trustees, consultants and even asset managers themselves learn how to peel back just enough of the layers of performance obfuscation to get to the heart of what trustees should really care about most: what exactly is the value-add that this particular manager brings to my solution that will enhance my blend of manager selections?

Let’s start at the very beginning… a very good place to start.

Boards of trustees do not select active equity managers in isolation. Before managers can be selected, boards need to identify what outcome they want their total portfolios to achieve. From this desired outcome, the board will identify the asset allocation for their portfolios and the benchmarks for each of the asset classes in the asset allocation.

Once this is done, a strategy can be devised for each of the asset classes. In the case of equity, this strategy is of particular importance because equity is likely to the largest asset allocation in the portfolio. When the assignment to equity is made in the asset allocation, it is based on the characteristics of the equity market as a whole.

Peeling back the layers: There is more to equity managers than their performance!

Understanding that the asset allocation is based on the characteristics of equities as a whole is important. It means that the primary purpose of an equity strategy is to harvest a typical equity risk premium over the long term. One statistic that allows us to summarise risk structure of this equity exposure is BETA.

The benchmark of a portfolio is set as the most effective reference framework for an investor to access the equity risk premium. The simplest implementation to access this BETA is using a passive equity portfolio. However, a passive equity portfolio will only ever provide the benchmark’s return less the costs of investing in that benchmark. It cannot outperform the benchmark and it cannot cushion market falls by having the ability to reduce risk in the portfolio.

Using an active equity manager provides the possibility of either improving the returns of the portfolio or reducing its risk, preferably a combination of both. The value of an active equity manager lies in their ability to do harvest the equity risk premium on a better risk-return basis than the benchmark. One statistic that is used to summarise this value is known as alpha.

The important thing is that the quest for alpha cannot be allowed to over-shadow the portfolio’s need for beta. The reality is that the only way to gain alpha is to differ from the benchmark in some way, which means potentially compromising on the beta. Trustees need to be aware of this trade-off so that they can appropriately select and blend managers in their equity strategy.

Creating an effective blend of managers is not just about combining historical returns to deliver the best historical

How do we identify manager skill?

Or, if we want to make this question more “goals-based” friendly, perhaps we should ask, “how do we identify whether an investment manager is doing what we require them to do to meet our specified outcome?”

outcome. This approach is tantamount to data mining. Also, because it is not based on an analysis of how managers generate returns – and risk – it potentially opens the portfolio to a multitude of unforeseen risks.

It is also extremely dangerous to attempt to pick the best managers over the next period. Numerous studies have shown this verges on impossible. In addition, it raises the risk of being invested in very similar managers who are all likely to fail simultaneously.

By blending managers, we seek to reduce, not amplify, risk. The purpose of selecting multiple equity managers should be to diversify manager investment approaches to assume the right balance of risk in the fund that maximises the probability of getting a consistent positive alpha through different market cycles over the long term. The performance of the fund should be generated from risk that has been intentionally assumed.

Most pension fund assets are structured as long-term investments. The amount of risk that it chooses to take within the fund (risk tolerance) sets the guidelines that define how robust the solution needs to be to market events over shorter terms. This tolerance will also drive the underlying solutions and strategies used by the fund in achieving its objectives.

Different investment styles are rewarded across different horizons and different periods. This means that an individual manager is likely to have periods of out- and under-performance. Trying to predict which manager will outperform in which period is a fruitless exercise and simply shifts the arena of skill and luck to another layer of decision making.

12


As is illustrated below, we expect different types of managers to generate alpha in waves of different lengths.

Fig 1: Describing the cyclicality and horizon of investment styles

Blending multiple managers with different types of consistent skill reduces the uncertainty. It should allow trustees to maximise the periods through which the total equity strategy generates outperformance. But doing this requires understanding each of those equity managers properly.

The last few years have seen the value style significantly underperform while earnings momentum has been rewarded much more than market indices. These are two of the styles prevalent in South Africa. Examples include:

■ Value (shares with low PE ratios/price to book ratios/high dividend yields)

■ Earnings Momentum (shares with positive earnings revisions over the recent past)

■ Price Momentum (shares with positive price movements over the recent past)

■ Growth (shares that are reinvesting retained earnings to grow the firm)

■ Size (biases based on the market capitalisation of the share, e.g. small cap)

■ Earnings Variability (shares with fluctuating earnings over different economic cycles)

Understanding a manager’s style and its consistency is critical as the style determines the typical types of risks in the portfolio. An equity manager cannot (and should not) integrate all styles as

this will compromise their investment philosophy. Therefore, a blended equity portfolio using different managers with different styles would seek to intentionally combine styles consistent with the pension fund philosophy as stated in the Investment Policy Statement.

Consistency of style will imply greater predictability of a manager’s behavior in a blended solution. This is called style diversification.

In order to understand alpha, simply comparing a manager’s return to the benchmark returns falls woefully short. Understanding the manager’s style is crucial to understanding their past and future performance. Numerous studies have shown that a manager’s return is influenced by both skill and luck and simply looking at returns is not going to disentangle these two.

Identifying the skill to generate alpha requires:1. Understanding how a manager’s

philosophy and process provide opportunities to identify and capture alpha;

2. Examining the portfolio to see whether this philosophy is reflected in the risks taken in their portfolios; and

3. Seeing whether the risks they take are appropriately rewarded by alpha.

Such a process must examine managers and their portfolios through time!

Understanding the active manager

Consider what an active manager does. They aim to add value above and beyond what an investor could obtain from a passive indexed solution by strategically differing from the benchmark. The investment philosophy and style of the manager is used to identify shares that are mispriced in the market.

This philosophy could manifest in a number of ways. A manager could believe that macro-thematic works allows them to identify how the economy is evolving and they then choose to differ from the benchmark on the basis of sectors. Or they could believe that certain shares are over- or under-valued by the market due, for instance to price to earnings ratios. Or maybe they think that less volatile shares or high dividend-yielding shares are best options over the longterm – or in a particular market cycle. These differences are captured in the portfolio construction process. Differences to the benchmark arise by tilting the portfolios towards or against certain groups of shares.

So, there are multiple approaches or philosophies that a manager could use. Their choice of their philosophy is not what is important. What is important is:

Deep value strategy may require 7 year performance period for review

Momentum/growth strategy might require three year time-frame for review

Multi-factor quant strategy may only require 1 year period for review

Allocate active risk to strategies and managers

13

SECTION 1

■ That an active manager has a consistent investment philosophy;

■ That this philosophy is theoretically supported and has a coherent basis;

■ That they understand how that philosophy translates into their portfolio construction, and from there, into their performance;

■ That an active manager is consistent in the application of their philosophy throughout the investment process.

From their philosophy, each phase of their process needs to flow. It is only through the overall consistency of the

philosophy and process that it will be possible to distinguish between skill and luck. Such a process does not guarantee good outcomes, but it does guarantee that we can identify where the outcomes come from.

Understanding the active equity portfolio

Once the manager’s philosophy and process is understood, their portfolios need to be examined. The test of a good manager is that they can translate their philosophy into their portfolio construction and that they get their performance from those areas where they consciously chose to take on risk.

There are three broad categories that typify the aggressiveness of the portfolio construction of the active positions implemented:

■ Enhanced Index strategies: These funds typically attempt to outperform the index by incremental amounts (0.5%-1% per annum) while simultaneously taking only small amounts of additional (active) risk. The risk exposure of these funds would be quite close to the benchmark.

■ Non-Benchmark Cognisant (Unconstrained) strategies: In many cases, these portfolios should be constructed with little or no reference to share weightings in the benchmark. Alternately, they are constructed to take on high levels of relative risk against the benchmark. These portfolios will also invest in shares that are not in the benchmark. These strategies should either outperform or underperform the benchmark for protracted periods of time. These strategies would

require the fund to have a high tolerance for poor performance.

■ Benchmark Cognisant (Constrained) strategies: These are portfolios that would rely on similar investment philosophies to a Non-Benchmark cognisant or unconstrained strategies. However, they also recognise that these investment views need to be very carefully constructed around the benchmark. Portfolio construction is crucial to the success of this strategy. Managers would need to carefully balance the risks of the benchmark against the identified sources of return – in other words, they actively manage the alpha-beta trade-off. These portfolios should have characteristics that fall between enhanced indexed and unconstrained strategies.

In order to identify how a manager is translating their philosophy requires examining manager’s portfolios in terms of their holdings and their transactions through time. The reason why it is important to consider these issues through time is that we need to understand:1. if sources of risk have translated into

subsequent sources of return2. how consistent the investment

process is3. how to identify changes and uncover

the reasons for this

This allows us to look beyond historical returns to drive our decisions. We are

focusing on the interaction between philosophy, risk and return of the manager. There are three areas which we can consider when examining equity portfolios:

• Level of conviction;• Magnitude of risk;• Quality of Risk and Style

Each of these measures provides insight into the portfolio that complements our understanding of the equity portfolio and manager style.

Measures of conviction

Conviction is an expression to generally describe how the manager chooses to implement their views on stocks in their portfolio. We do not measure conviction to test for the skill of the manager but rather to test whether the portfolio is correctly positioned relative to its expected risk characteristics.

Managers that have high convictions (usually non-benchmark cognisant managers) would be more aggressive in implementing their view by holding less stocks and have more concentrated positions. Benchmark-cognisant managers would tend to hold more shares with smaller active positions. This is consistent with academic literature. 1

Quantitative ways to measure conviction include:1. Number of instruments;2. Concentration;3. Active share

1 Grinhold and Khan (1999) “Active Portfolio Management: A Quantitative approach for producing superior returns and controlling risk”

Qualitative assessment Quantitative assessment

Statutory and regulatory framework Persistence of investment style and philosophy

Consistency of investment philosophy in the firm Portfolio construction

Manager belief structure Risk tolerance and controls

Share valuation process and horizon Holdings analysis through time

Portfolio construction framework Transaction decomposition

Trading processes Performance and risk attribution

Portfolio constraints Trading/implementation impact

Issues to consider when evaluating an equity manager’s philosophy:

14


Number of instruments

As the name indicates, this is simply the number of instruments held in the portfolio. By comparing this number to the number of instruments in the benchmark, we get a high-level indication of the manager’s level of conviction.

For an enhanced indexer, we expect the number of instruments in the portfolio to be close to identical to the number of instruments in the portfolio. In contrast, for an unconstrained manager, we expect this number to be low relative to the benchmark.

As a comparison, a common benchmark used by South African retirement funds for equity portfolios is the FTSE / JSE Shareholder Weighted All Share Index, commonly known as the SWIX. Through time, the SWIX has been composed of 150-180 shares.

Given that a small number of instruments tend to dominate the South African equity market, one needs to interpret this number with caution. In evaluating SA equity portfolios, it is also important to consider the weights of shares. For instance, many shares may have an insignificant weight and make little difference to the overall performance of the portfolio.

Concentration

A common understanding of concentration in investment portfolios is that a concentrated portfolio is one where the bulk of the money in the fund is held in a small number of securities. For instance, unconstrained equity managers would express their strongest view by allocating the largest amount of their portfolio to that small set of securities. This has a material bearing on risk and subsequent return.

When measuring concentration, the objective is to understand whether the risk and return of a portfolio is being driven by a small or a large number of instruments. If it’s been driven by a small number of instruments, then we expect the concentration measure to be high and this would reflect a high level of conviction. In contrast, a portfolio being driven by a large number of instruments, then the concentration measure will be low.

There a many ways to quantitatively measure concentration. One framework is to measure the relative distribution of share weights against an equally weighted portfolio. A concentration index is one method which allows us to examine this. In the graph below, we show straight lines that would indicate the concentration of equally-weighted portfolios of various sizes.

We also show two commonly used equity portfolio benchmarks, the All Share Index (ALSI) and the

Shareholder Weighted Index (SWIX). This shows us that the concentration of the ALSI is higher than that of the SWIX. The ALSI tends to have similar concentration to that of a portfolio with 40 equally weighted securities, whereas the SWIX is closer to a portfolio with 60 equally-weighted securities. Given that both benchmarks have around 165 instruments, this corroborates the market intuition that these benchmarks are highly concentrated given the number of instruments held.

40

35

30

25

20

15

10

5

0

2007

/10/

01

2013

/10/

01

2013

/04/

01

2012

/10/

01

2012

/10/

01

2011

/10/

01

2011

/04/

01

2010

/10/

01

2010

/04/

01

2009

/10/

01

2009

/04/

01

2008

/10/

01

2008

/04/

01

SWIX

40 Equally Weighted 80 Equally Weighted

60 Equally Weighted 100 Equally Weighted

ALSI

Figure 2: The Concentration Index

Active share

Active share measures how much an equity portfolio’s holdings differ from the constituents of its benchmark index. It is a gauge of how different the active manager’s positions are relative to the benchmark and is used as an indicator of potential future variation in return.

15

SECTION 1

The previous measures of conviction overlook the effect of how the manager constructs their portfolio relative to a benchmark. They focus on absolute levels of conviction, rather than relative levels versus the benchmark. Active share aims to measure how different a portfolio is to the benchmark.

Active share picks up two types of deviation between the portfolio and its benchmark:1. Shares that are in the portfolio, but

not the benchmark.2. Shares that are held in a different

weighting in the portfolio versus the benchmark.

To aggregate this, active share captures what percentage of the portfolio does not reflect the benchmark. Mathematically, this is the percentage not held in the benchmark but held in the portfolio, and is illustrated in figure 3.

We would expect unconstrained equity managers to have high active share and enhanced indexers to have low active share. This is a particularly important measure for understanding whether the classification of a manager is correct.

Active share helps investors compare managers that have similar share universes and benchmarks to measure their relative conviction of their portfolios to their benchmarks.

Magnitude of risk

It is widely understood that to generate additional return one needs to assume risk. In this section we define risk more explicitly in order to measure how a manager is different from a benchmark. The two relevant concepts are:1. risk of variation – this measures how

different the expected outcomes can be from the benchmark

2. risk of loss – this measures the expected losses that can be incurred by the portfolio

The second important distinction is that risk can be measured on a historical or a prospective basis. Historical risk is a translation of what actually happened in the market and the effect does not necessarily reflect the amount of risk that prevailed when the investment was made. Prospective risk takes into consideration that markets can experience different future outcomes.

Figure 3: Active Share

Common Weight

Portfolio

Active Share Benchmark

Active Share

Let’s look at this using a statistical example: Assume that we have a fair coin; what is the probability of tossing 5 heads in row? If we measure this after 5 heads in a row were tossed, we would say that empirically it is 100%. However, if we measured this before we started tossing the coins it would be 3%.

This is the difference between historical (empirical) measures of risk and prospective (probabilistic) measures of risk. From the example above, it is clear that a manager could take on extremely high levels of risk, which if it worked out would look like low risk. It is important to evaluate risk at the outset – is your manager betting on tossing 5 heads in a row?

There are numerous metrics that can be used to measure these risks. For purposes of simplicity, we restrict it to:1. Beta – a sensitivity measure2. Tracking Error – a magnitude

measure3. Value at Risk – a loss measure

South African predictive equity risk models have been available for almost two decades, with significant strides being made in its predictive quality. Systems such as MSCI Barra, Sungard APT, EM Applications and others have specific South African equity models for this purpose.

Beta

Earlier in the article, we described the benchmark as a mechanism to access the equity risk premium. The benchmark therefore embodies the market risk structure that the pension fund has considered acceptable and

its neutral position for equity as an asset class. We will continue with this definition but will now describe beta as the forecasted statistical sensitivity of the equity portfolio to the benchmark.

The relationship between the future return of the portfolio to the future benchmark return can be simplistically described as:E(Rp) = α + β. E(Rb) whereE(Rp): Expected return of the

portfolioα: Alpha of the portfolio E(Rb): Expected return of the

benchmarkβ: Beta of the portfolio to

the benchmark

Beta measures the sensitivity of changes in the portfolio return to changes in the benchmark return. A Beta of 1 means that we expect a 10% increase in the benchmark to result in a 10% increase in the portfolio. A Beta of 0.5 means that we expect a 10% increase in the benchmark to result in a 5% increase in the portfolio.

We expect enhanced index portfolios to have betas close to 1, while unconstrained managers could have betas much higher or much lower than 1. These variations reflect the different drivers of risk between the portfolio and the benchmark. This can be share-specific, sector, style or another significant market factor. Risk decomposition is a critical element of fund analysis to understand the quality of risk taken.

16


The beta framework is very insightful but is limited by its inability to describe the variation due to factors other than the benchmark. Decomposing this further is not a simple exercise and requires the use of equity risk models.

Tracking error

This is one of the most popular measures used to describe the active (relative) risk taken by the equity portfolio against the benchmark. Tracking error predicts the potential return variation between the portfolio and the benchmark and can viewed as an expected range of outcomes.

When we see a tracking error figure – say of 1% – this means that we expect that when the portfolio’s returns deviate from the benchmarks, in two of our every three times, it will lie within the tracking error. Conversely, this means that in one out of every three instances when the portfolio differs from the benchmark returns, it will do so by more than the tracking error.

What is useful about the tracking error is that it gives a sense not only of the risk of the portfolio, but also of its expected return relative to benchmark!

Therefore, funds with low tracking errors are expected to have returns with little expected variation to their benchmark. Enhanced index equity funds usually have tracking errors from 0.5% to 2%. The probability of these funds producing returns exceeding the benchmark by 5% is extremely unlikely.

Benchmark cognisant funds understand the need to take on risk in order to deliver greater returns different from the benchmark. The amount of active risk taken is a function of the trustees’ tolerance for variation. It is generally accepted that 3-5% tracking error limits describe benchmark cognisant funds. This relates to the expected target returns of these funds which are usually 1-2% more than the benchmark.

Enhanced index funds and benchmark cognisant funds would tend to construct their portfolios with a consistent tracking error in order to capture opportunities that generate differences in returns. This is not a requirement for unconstrained strategies.

Tracking error may vary significantly for an unconstrained portfolio based on the manager’s prevailing view of the market. In fact, in the absence of opportunities, the manager should revert to his risk-neutral state which is the benchmark. At these points in time the fund will generate returns no different from the benchmark. The concern with this is that you would now have a very expensive way of accessing a passive strategy.

Therefore, the analysis of tracking error for these funds is to determine through time both the level of risk and the changes to risk taken by a manager.

Value at Risk (VaR)

Value at risk is a loss concept that usually measures the minimum loss that the portfolio is expected to experience in extreme market conditions (e.g. 95% level of confidence). For purposes of differentiating equity strategies we analyse whether the portfolio has greater or less risk than the benchmark and seek to understand the reasons for this.

Enhanced index strategies and benchmark-cognisant strategies with low tracking errors and low active share would tend to have a VaR not dissimilar from the benchmark. However, portfolios with high tracking errors and high active share can result in the underlying risk structure to move significantly away from the benchmark. This would imply that downside risk exposure of the fund would also become different.

Unconstrained portfolios are expected to be built from first principles and would seek to optimise diversification. In most instances, it would be expected to reduce risk relative to market cap indices and benchmarks. Additional downside risk also implies that the overall investment strategy may be impacted by the equity allocation unless it is diversified by other asset classes or explicitly hedged.

Consider a portfolio that has a forecasted beta of 0.8 to the benchmark. This implies that the portfolio, without any alpha is expected to underperform the benchmark in a positive market and outperform the benchmark in a negative market.

Remember: E(Rp) = α + β. E(Rb)

If the expected return of benchmark is +10%, then the expected portfolio return would be 8% + alpha generated. In this case the alpha needs to be at least 2% to compensate for the change in the risk structure.

If the expected return of benchmark is -10%, then the expected portfolio return would be -8% + alpha generated. In this case the lower beta allows the fund to beat the benchmark.

The opposite holds true if beta was greater than 1.

17

SECTION 1

Quality of Risk and Style

The final layer that needs to be understood is decomposing the quality of the risk taken by the manager and relating the managers investment philosophy to quantitatively defined styles. From a pragmatic perspective, this allows one to understand whether the stated investment thesis is proven to be consistent.

This requires a detailed through-time analysis of the fund, relating some of the metrics described above to understand the portfolio strategy. We work from the premise that the manager’s philosophy should be expressed though portfolio construction.

The analysis looks for persistence in behaviour across known risk and fundamental characteristics, and an interrogation of events where the risk structure has fundamentally changed. This process of individually analyzing

the fund will complete the process of differentiating and profiling the portfolio strategy.

Understanding Quality of Risk

One of the expectations of an active manager is the ability to diversify market risk in the portfolio (known as systematic risk), and isolate specific risks (risk that is unique to a share and cannot be diversified). Most risk models would provide algorithms to decompose the diversifiable elements of a risk measure from the share specific components.

This describes the quality of the risk. Good portfolios are constructed with high exposure to specific risks, specifically tracking error, implying that the expected differences in performance to the benchmark are a function of share specific outcomes and not market factors.

Market tails may be “fatter than normalTail events are very rare in a normal curve, but market tails are in fact “fatter” or more frequent , than many people realize.

Normal distribution

“Fat tail” distribution

The bell curves are used for illustrative purposes only and do not represent the distribution of reward and risk for any specific investment.

GainsLosses

Higher probability of big losses

Freq

uenc

y of

eve

nts

Value at Risk were originally calculated using statistical distributions, specifically the normal curve. This came under significant scrutiny in the 1998 crash, due to underestimating risk. The concept of a fat tail which represents the increased likelihood of extreme events was introduced. Additional measures such as Conditional Value at Risk are now very popular.

Another element of good quality of risk is that the sources of risk are intended and are usually well balanced (no single source of risk).

Decomposing tracking error

One of the methods of analysing quality is decomposing tracking error into the specific risk component and the diversifiable risk component. For example, if the total risk is 45% systematic and 55% specific, then this implies that a larger part of the potential performance differences to the benchmark is due to the share selection of the manager and not market attributes. Internationally, there are some funds that have their fee structures tied to the amount of specific risk taken.

Tracking error (and other risk measures) can be decomposed to a share (sector or factor) level where the contribution of each share in the portfolio to the risk can be analysed. This is best illustrated graphically.

18


Figure 4.1: Diversifiable contribution to risk

The contribution to diversifiable risk of each share as measured on the vertical access is well balanced with no share contributing more than 6%. Negative contributions reflect diversification. This implies that the risk is well structured to market factors.

The specific risk decomposition indicates a slightly different outcome. In this example, the specific risk contribution of Naspers represents almost 18% of the portfolio. This implies that the behaviour of Naspers will be the largest driver of performance variation in the portfolio. If this position was not deliberate then the portfolio is poorly structured, as the variation of expected return comes from an unintended source of risk.

Figure 4.2: Specific contribution to risk

Transactional Behaviour

A large focus of attention on managers is what shares are in their portfolio. What they are buying, when are they buying and why are they buying it? But there is a lot less attention paid to how these managers execute the decisions and when do they do so.

Transactions-based analytics helps interrogate the timing of manager’s decisions and this can shed light

on their style. For instance, a value manager may claim to buy stocks based on their price-to-earnings ratio, and their portfolio may reflect this. However, a transaction analysis may show that they are not buying and selling when we would expect based on their style.

For instance, a manager may fall into the trap of selling winners and buying losers. The composition of their portfolio appears fine, but their timing is always off.

These questions lead us into transactional based analytics which provides you with a framework to evaluate the consistency and persistence of a manager’s investment process and to determine how they add value through their decision making and implementation. Timing is critical in managing equities and transactional analysis is one of the few methods to really understand its role.

This allows us to establish the link between a manager’s investment

In this example the manager has taken a few aggressive positions, e.g. zero holdings in Naspers (NPN), with overweight positions in Billiton (BIL), Investec (INL), Anglo American (AGL) and Impala Platinum (IPL).

Figures 4.1 and 4.2 show the share level contribution to tracking error split into diversifiable and specific components.

19

SECTION 1

process and their resultant performance by identifying how effective their investment decision making has been in adding value (as described by alpha). It sheds light on:1. The characteristics of the shares

being bought and sold;2. The horizon over which managers

make decisions;3. The frequency of trading where no

cash has flowed into or out of the portfolio.

This tells us whether managers are sticking to their investment philosophy, or whether the way they are buying and selling shares indicate a capitulation of sorts. For instance, in a period of underperformance does the manager deviate from their style by selling out the shares that they would be expected to hold?

Understanding style

For the purposes of this article, this is the last layer that needs to be understood. The purpose of selecting multiple equity managers should be to diversify manager investment approaches to assume the right balance of risk in the fund that maximises the probability of getting a consistent positive alpha through different market cycles over the long term. The performance of the fund should be generated from risk that has been intentionally assumed. Therefore the purpose of analysing an equity portfolio in this detail is also to understand how it fits into a blend of equity strategies.

One aspect of this analysis is a robust qualitative review of the investment style. This is not sufficient to incorporate into a technical framework. A quantitative technique to understand the manager style is called style a decomposition and attribution. These types of analysis would require an equity risk model. Style factors are defined (system specific definitions) and the portfolios are analysed to these factors. E.g. Sungard APT defines its Value factor as based on the Price to Book Ratio.

In conclusion, what this article serves to demonstrate is that identifying manager skill goes far beyond looking at their performance.

Performance is so inextricably bound with both luck and skill that it takes a multi-layered analysis to distinguish between the two.

To understand whether a manager is skillful, we have to consciously peel back the layers of their portfolio, using

In figure 5, we have three portfolios that have a consistent positive bias to the Sungard Value factor through time. This would provide supportive evidence for the manager if the investment philosophy is based on Price to Book analysis, even if the manager does not explicitly term their process as value.

The persistence of style biases through time or market cycles would provide an easier basis to include a manager in a blended solution.

Concluding Thoughts

various analysis techniques. This also involves understanding how their philosophy translates into their portfolio construction and from there into the risk and return characteristics. Historical performance is only a measure of how successful a strategy was but does not adequately describe the nature of the strategy. When building a blended equity solution, we need to:

■ take risks that are intended and which we have a basis to expect will generate higher returns or reduce risk;

■ evaluate risk characteristics on a prospective, rather than a retrospective, basis.

By doing this, we can blend managers sensibly with a relatively high degree of confidence that they will perform in expected ways under differing market conditions and that the blend will produce expected outcomes.

Contributors to this article:Deslin Naidoo, Trevino Ramsamy, Kenneth Mabebe, Amy Underwood, Anne Cabot-Alletzhauser

1.2

1

0.8

0.6

0.4

0.2

0

-0.2

Manager A Manager B Manager C

Fig. 5: Value factor exposure relative to benchmark

31/0

1/20

06

31/0

1/20

07

31/0

1/20

08

31/0

1/20

09

31/0

1/20

10

31/0

1/20

11

31/0

1/20

12

31/0

1/20

13

31/0

7/20

06

31/0

7/20

07

31/0

7/20

08

31/0

7/20

09

31/0

7/20

10

31/0

7/20

11

31/0

7/20

12

31/0

7/20

13

2


Survey Notes

Balanced Manager Watch™ Survey

Balanced Manager Watch™ Volatility vs Return

Balanced Manager Watch™ Survey Asset Allocation

Balanced Manager Watch™ Survey Composite Dispersions

22


1 SA Manager Watch™: Best Investment View: The STANLIB AM Fund rejoined the survey in Q1 2014 and the Momentum AM Domestic Balanced Fund exited the survey in Q3 2014.

4 Global Manager Watch™ Dynamic: The OMIG MacroSolutions Edge 28 Fund entered the survey in Q2 2014.

2 SA Manager Watch™: Conservative: No change in the participants of this survey.

3 SA Large Manager Watch™: No change in the participants of this survey.

5 Global Manager Watch™: Best Investment View: The Momentum MOM Enhanced Factor 7 Fund entered the survey in Q3 2014.

6 Global Manager Watch™: Conservative: No change in the participants of this survey.

7 Global Large Manager Watch™: No change in the participants of this survey.

It should be noted that historical performance is not an indication of future performance, nor is it a direct indicator of skill. Many of these composites use peer relative performance benchmarks and not investable benchmarks. The current positioning and exposure of composites are more relevant to an investment strategy. Please use all information within this survey and interpretations therefrom cautiously and consult an asset consultant when matching your liabilities to appropriate assets and manager strategies.

Sources of performance

In multi-asset class composites, the primary drivers of long-term returns are their asset allocation strategies as they will seek to take advantage of the different expected returns between assets, while sector and/or security selection within an asset class seeks to provide additional sources of performance. Multi-asset class portfolios build and implement their investment strategies based on a multitude of methods with the most popular being: macroeconomic research; asset allocation modelling (strategic and tactical); relative asset class valuation; assessment of market risks; security valuation; portfolio construction and market hedging strategies. The portfolio manager will also use the asset class exposures to manage an overall risk strategy.

Survey Notes

Market dynamics that influenced performance and strategy over 2014

Since the 2008 global financial crisis, investors globally have operated in a risk-on/risk-off framework. Six years on, the intervention policies and strategies applied to stabilise global capital markets and restore confidence remain significant drivers of investment decision making and valuation. This juxtaposition of weak economies and high levels of artificial liquidity has led to significant rotation between asset classes as managers seek to balance safety with the quest for yield.

The role of primary providers of stimulus shifted in 2014 in response to changes in underlying economies. After a difficult 2013, the US economy is showing strong signs of recovery

allowing it to close its QE programme. As a result, US equities and bonds performed very well and the dollar strengthened substantially against other developed currencies.

In contrast, concerns about lacklustre growth and stagflation have brought Japan and the EU to the fore in stimulus programmes. Consequently, earnings have been low in these markets and interest rates have at times even been negative.

In addition to these evolutions in the ongoing and persistent theme of global stimulus, 2014 also saw a number of its own particular quirks. Concerns around the Chinese economy have been present for a while, but in 2014, the Chinese statistics department confirmed that the economy is slowing. This is primarily due to efforts to shift

It is made up of 7 surveys, with the following being material events over 2014:

The Manager Watch™ Series of Surveys focuses on multi-asset class mandates traditionally known as balanced mandates in the South African industry.

23

SECTION 2

the economy from an export-driven structure to a consumption-driven one. As such, a resumption in its demand for commodities is not anticipated.

On the commodities front, oil had a dramatic collapse in the second half of the year (down -48.3% for the year), providing welcome relief to emerging markets but jitters to oil producing nations.

Oils woes only exacerbated Russia’s woes after geopolitical tensions within Ukraine have tarnished its global image. In the wake of this, the rouble collapsed and Russian bonds flounder at junk status.

On the local front, commodity woes in the last part of the year came on top of a mining strike in the first part. Together with a myriad of other economic challenges, the SA outlook weakened in the latter half of the year.

Global market performance echoed the economic trends in many ways. Buoyed by a strong performance by US equity markets (+13.7%), developed equity markets finished off 2014 on a positive note in US dollar terms (MSCI World +5.5%). The US’s strong performance masked a negative year for other major developed markets with Europe down 5.7% and Japan down 3.7%. Emerging markets were little better at -1.8%, while frontier markets were 9.0% down. Many frontier markets are reliant on trade with Japan and Europe, which led to their dismal performance.

Overall, the MSCI All Countries Index – which combines both developed and emerging equity markets – returned +4.7% in dollar terms. Global government bonds were relatively flat; the Citibank WGB Index being down -0.5% in dollar terms. The depreciation of the rand to the dollar meant that the rand returns of these indices were significantly higher – with the MSCI All Countries returning +15.7% and the WGB Index up +9.9%.

Despite deteriorating local economic conditions, the South African equity market finished the year in positive territory, though slightly down from its peak in July. Domestic consensus is that the local equity market is overpriced and may be heading into an asset price bubble. Another surprise for the year was the divergence in performance between the two major equity benchmarks. The FTSE JSE All Share Index (ALSI) returned +10.9%

over the year, while the FTSE JSE Shareholder Weighted All Share Index (SWIX) returned +15.4% over the year. At 4.5%, this divergence is at the highest in its history.

The major difference between the two indices is that the ALSI holds 6% more in Resources than the SWIX, 5% less in Financials and 11% less in Industrials. This super-sector difference contributed to 2.5% of the performance differential as Financial shares outperformed Resources by 42%. The early part of the year saw Resources shares gain ground on the other two sectors, but this trend fell apart in the latter half, with Resources ending the year down 14.7%.

The best performing sub-sector within Financials was Banking (+32.1%) despite the collapse of African Bank and rising interest rates. Other sub-sectors also contributing to performance were Real Estate (+26.5%) and Life Insurance (+21.5%). Industrials were bolstered by Health Care (+35.9%), Consumer Services (+29.7%), and Consumer Goods (+14.1%) with muted returns from Technology (+12.7%), Telecomms (+9.7%) and Industrials (+7.0%). Aside from Forestry and Paper (+11.7%), it was red across all the Resources sub-sectors.

An analysis of equity investment styles proved that Momentum, Minimum Volatility and Quality were rewarded in 2014. What is also very clear is that Value, and Deep Value in particular, has continued to struggle. For instance, the FTSE JSE Value Index returned 4.59% for the year, trailing the major indices by a considerable margin. Earnings and Price Momentum continues to dominate market returns to the detriment of the many South African managers who favour Deep Value and Contrarian styles.

South Africa’s Monetary Policy Committee (MPC) hiked the repo rate twice over the course of 2014. The 50 basis point (bp) hike in January of 2014 caught the market unawares, introducing significant volatility to both interest rate and currency markets. The 25bp hike in July met a more muted response, but it did accelerate net foreign bond outflows. For the year, net foreign bond outflows totalled R58 billion as sovereign credit expectations deteriorated.

The drivers behind these hikes remained consistent through the year, including: concerns about the weak rand; rising inflation; labour conflicts

and high wage increases; moderate to weak economic growth; a wider current account deficit; and stubborn unemployment. These drivers also led to credit agencies downgrading SA multiple times over the course of the year.

Despite these myriad concerns, bond markets delivered strong returns in line with equity markets. Inflation-linked bonds beat the ALSI with a +11.1% return as real rates continued to remain low. Nominal bonds were not far behind at +10.1%. Factors that significantly drove bond market performance were instrument term (duration) and credit pick-up. The long end of the SA 10-year government bond curve (bonds maturing >12 years) flattened during 2014, most noticeably in Q4 as inflation expectations diminished with falling commodity prices. The short end of the curve (bonds maturing within 3 years) displayed the opposite effect by rising during the quarter and year due to the interest rate hikes. Fixed rate bonds remain unattractive compared to floating rate notes in the short end. Cash returns were the weakest asset class with the STeFI returning +5.3%.

The local property market shrugged off a poor 2013, and returned to its status as the best performing asset class (+26.6%). It gave a strong performance over the second half of the year due to lower longer term bond yields and high income yields relative to prevailing rates.

All in all, market direction proved difficult to call both globally and locally.

How the managers performed over 2014

Managers expected a volatile 2014 and most structured their portfolios defensively at the outset, lowering equity exposure and raising cash exposure. Despite the volatility materialising, markets posted good returns and this defensive posture weighed against managers. As a result, 2014 was a tough market to out-perform in, while maintaining adequate risk control.

Across the asset classes that SA BIV managers and Global BIV managers utilise, returns were very similar. This meant asset class decisions played

24


a more muted role in explaining outperformance than it normally does for these categories. Instead, managers needed to take advantage of opportunities to add value through tactical asset allocation, sector rotation, security selection and trading.

In 2013, the most important call for Global BIV was their allocation to global assets. In 2014, the only asset allocation call that made a significant difference was a manager’s cash allocation – which affected both SA and Global BIV managers.

Within asset classes, the two most significant building blocks to get correct were SA equity and global equity. To harvest alpha in SA equity, it made a significant difference how managers structured their portfolios and what their exposure to resources was, given resources’ dismal performance. For Global BIV managers to do well in their global equity building block, they needed to have been overweight in US markets.

In both cases, the role of benchmarks is significant. As mentioned earlier, higher resources exposure in ALSI weighs against managers who use this as a reference to construct portfolios. For managers benchmarked to SWIX, Naspers is almost impossible to overweight and as it had an excellent 2014, this created problems for managers. Similarly, the US has a high weighting in global indices and is almost impossible to overweight in global portfolios.

The majority of the SA BIV managers left their asset allocation largely unchanged through 2014, with the trend being to reduce equity exposure. Prescient and ABSA reduced their equity exposure early, switching into cash and ending the year with the lowest equity exposures. As such, this asset allocation decision by these two managers was a primary factor for their relative underperformance over one year.

RECM was another manager with approximately 40% held in cash positions. They were the only manager to deliver a negative return over 2014. However, the major contributor to their poor performance was their overweight exposure to resources, particularly platinum stocks.

The top two SA BIV managers (Investec, Foord) held the highest average exposure (>72%) to equities and property over

the year, and these houses were also top quartile performers in the equity surveys. Allan Gray, also a top performer in local equity, was the third best SA BIV manager, compensating for its lower equity exposure by investing in bonds, rather than cash.

While SA BIV managers only have access to local asset classes, Global BIV managers have access to all global asset classes. Their composites are managed in line with Regulation 28.

Despite this access to additional building blocks, Global BIV composites did not significantly outperform domestic mandates. The gap between the medians of the two categories was only 0.60% versus almost 7% in 2013. As discussed above, the rand returns of global asset classes were very similar to local asset classes.

Most global BIV managers continue to remain at the limits of their global allocations as allowed by Regulation 28 of the Pension Funds Act. Within their global allocations, most managers retain upwards of 90% in equities. ABSA was the only one to buck this trend. It has had a relatively low global exposure for the past two years and has preferred currency-driven positions to equities. This has worked well and tactically added value.

As in SA BIV, RECM’s Global BIV composite disappointed, again the only composite to lose value over the year. Key factors were its exposure to the global oil and gas sector, UK food retailers and Russian stocks. The composite also held over 75% in growth assets, the third highest exposure.

The best performing composite was an aggressive growth specialist multi-asset class composure. As a specialist composite, Momentum Enhanced Factor 7 composite uses a largely static asset allocation to take advantage of

the long-term equity risk premium. As a result, the portfolio held over 80% in growth assets, including a 9.6% exposure to property.

Allan Gray’s global in-house partner Orbis – one of the top equity funds globally in 2013 – had a poor 2014. The portfolio is defensively positioned with almost 20% of the equity exposure hedged. Exposure to energy stocks and underweight exposure to the US detracted from performance in their global portfolio with the global composite underperforming the local composite by over 3%.

Even though Investec was the third best performing composite, it underperformed its local composite by more than 1%, due to an unimpressive global performance. Oasis did the opposite with its Global BIV composite outperforming its SA BIV composite by over 3.5%. This was due to their having the highest exposure to growth assets (82%) of the Global BIV composites, and achieving strong returns from its global investments which were only invested in equity.

The performance differentials (best composite to worst composite) over one year on the Global BIV has decreased to 15.92% from 16.24% in 2013. Removing the bottom three composites, the remaining 19 composites performed within 3.9% of each other over 2014. This convergence of performance was also seen in the SA BIV although the differential increased to 15.3% from 13.8%, due to RECM’s outlying performance. Removing the bottom two composites, the remaining 12 composites have performed within 5.8% of each other. This was in part due to many managers having similar asset allocations (close to average) through the year.

What stands out for 2014 across SA BIV, and especially Global BIV, is how it reversed many of the trends from 2013. Trends which worked for managers in 2013 worked against them in 2014, and vice versa. This illustrates how chopping and changing managers in the multi-asset class categories can be perilous for investors.

26


SA Balanced Manager WatchTM Survey – Best Investment View

Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in South Africa only. These portfolios represent the managers’ best investment view. The statistics represent the various categories that portfolios are represented in but only for those managers that are open to new investments.

Range of Returns of SA Best Investment View Investable Universe for the periods ending 31 December 2014

15%

20%

25%

30%

10%

5%

0%

3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)1 Year

25% – 75% Min – Max Median

-5%

1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)High 14.34% 21.42% 18.80% 15.03% 19.11%

Upper Quartile 12.32% 17.10% 15.75% 12.92% 17.29%

Median 10.94% 15.70% 14.43% 11.89% 16.11%

Average 10.40% 14.88% 13.89% 11.38% 15.73%

Asset-weighted Average 10.02% 12.90% 12.00% 9.98% 12.99%

Lower Quartile 8.62% 14.87% 13.91% 10.76% 14.91%

Low -0.98% 3.84% 6.34% 7.40% 11.20%

Range 15.31% 17.58% 12.45% 7.64% 7.90%

Number of Participants 13 12 12 12 12

Note: The statistics above only include those portfolios that are investable i.e. those portfolios that are closed to new business will be excluded from the calculations.

Return Statistics (Investable)

27

SECTION 2

SA Balanced Manager Watch™ Survey – Best Investment View

Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in South Africa only. These portfolios represent the managers’ best investment view.

General information

GIPS™ (Verified / Compliant)

Portfolio Type Benchmark Description No. of Funds in Composite

Portfolio Size (R m)

ABSA Asset Management Domestic Balanced V Segregated 65% Capped All Share Index; 25% BESA All Bond

Index; 10% STEFI Index 2 2 678

Allan Gray V Segregated SA LMW Average 15 22 686

Coronation V Segregated SA LMW Median 10 13 940

Foord Segregated Domestic C Segregated 65% ALSI, 5% PROP, 25% ALBI, 5% STFCAD 7 6 314

Investec Asset Management V Segregated SA LMW Median 8 5 861

Investment Solutions Performer Local N/A Pooled multi-manager SA LMW Median N/A 8 975

Investment Solutions Value Alpha Local N/A Pooled multi-manager SA LMW Median N/A 460

Oasis V Segregated SA BIV Average 1 452

Pan-African V Segregated ALSI 60%: ALBI 40% 4 352

Prescient Domestic Balanced V Segregated Inflation 2 199

Prudential Domestic Balanced V Segregated The total fund is benchmarked against the MEDIAN

performance of the Domestic LMW performance. 3 3 348

RECM Balanced Domestic Composite V Segregated CPI + 5% 1 660

SIM Domestic Unique V Segregated SA LMW Median 2 1 086

STANLIB AM C Segregated SA BIV Median 3 1 603

Total 68 614

V = VerifiedC = Compliant

28




1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)

Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark Portfolio Rank Benchmark

ABSA Asset Management Domestic Balanced

9.53% 9 10.53% 14.05% 12 15.58% 13.47% 11 13.66% 12.32% 6 11.37% 16.55% 8 15.27%

Allan Gray 13.47% 3 10.07% 14.60% 11 15.22% 14.05% 10 14.17% 12.12% 7 11.28% 17.79% 3 15.81%

Coronation 10.81% 6 10.52% 17.88% 2 15.81% 16.37% 2 14.42% 13.89% 2 11.85% 17.93% 2 16.19%

Foord Segregated Domestic

13.78% 2 11.18% 21.42% 1 16.41% 18.80% 1 14.20% 15.03% 1 10.90% 19.11% 1 15.22%

Investec Asset Management

14.34% 1 10.52% 16.55% 6 15.81% 14.82% 7 14.42% 11.96% 8 11.85% 17.23% 6 16.19%

Investment Solutions Performer Local

12.19% 5 10.77% 17.41% 4 15.90% 15.89% 4 14.45% 13.17% 4 11.87% 17.10% 7 16.21%

Investment Solutions Value Alpha Local

12.32% 4 10.77% 17.00% 5 15.90% 15.71% 5 14.45% 12.83% 5 11.87% 17.27% 5 16.21%

Oasis 9.27% 10 10.40% 15.43% 9 14.88% 14.59% 8 13.89% 11.20% 9 11.38% 15.60% 9 15.73%

Pan-African 8.62% 11 10.94% 14.96% 10 15.70% 13.34% 12 14.43% 10.80% 10 11.89% 14.51% 12 16.11%

Prescient Domestic Balanced

7.37% 13 5.78% * * * * * * * *

Prudential Domestic Balanced

10.80% 7 10.94% 17.69% 3 15.70% 16.31% 3 14.43% 13.31% 3 11.89% 17.33% 4 16.11%

RECM Balanced Domestic Composite

-0.98% 14 11.34% 3.84% 13 13.02% 6.34% 13 13.09% 7.40% 13 14.19% 11.20% 13 14.10%

SIM Domestic Unique 10.72% 8 10.52% 15.95% 8 15.81% 14.46% 9 14.42% 10.66% 11 11.85% 14.75% 11 16.19%

STANLIB AM 8.53% 12 10.94% 16.21% 7 15.70% 15.51% 6 14.43% 9.98% 12 11.89% 14.96% 10 16.11%

Investment Data to the end of December 2014

29

SECTION 2



Calendar Years

2013 2012 2011 2010 2009

Portfolio Rank Portfolio Rank Portfolio Rank Portfolio Rank Portfolio Rank

ABSA Asset Management Domestic Balanced 15.02% 10 17.74% 11 6.14% 11 19.50% 6 20.85% 10

Allan Gray 15.33% 9 15.01% 12 10.10% 1 16.46% 11 20.54% 12

Coronation 21.81% 1 21.34% 8 6.48% 8 22.35% 1 27.36% 2

Foord Segregated Domestic 20.20% 2 30.89% 1 9.60% 2 20.59% 2 24.47% 4

Investec Asset Management 15.45% 8 19.94% 10 6.15% 10 18.75% 9 28.80% 1

Investment Solutions Performer Local 18.29% 3 21.97% 6 8.09% 6 19.50% 5 24.01% 5

Investment Solutions Value Alpha Local 16.36% 5 22.55% 5 9.11% 3 18.68% 10 21.79% 9

Oasis 13.45% 11 24.05% 4 7.90% 7 19.04% 7 18.73% 13

Pan-African 16.11% 6 20.46% 9 6.45% 9 15.67% 13 22.89% 7

Prescient Domestic Balanced 10.75% 13 11.63% 13 * * *

Prudential Domestic Balanced 17.83% 4 24.87% 3 8.87% 4 19.90% 4 22.90% 6

RECM Balanced Domestic Composite 8.03% 14 4.65% 14 4.42% 13 16.33% 12 20.82% 11

SIM Domestic Unique 15.78% 7 21.59% 7 6.02% 12 18.88% 8 25.75% 3

STANLIB AM 13.08% 12 27.88% 2 8.66% 5 20.58% 3 22.20% 8


30


Global Balanced Manager Watch™ Survey – Dynamic

Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (i.e. more than 5 years) capital growth. This may lead to volatility of returns in the short term (i.e. less than one year). The statistics represent the various categories that portfolios are represented in but only for those managers that are open to new investments.

Range of returns of Global Dynamic Investable Universe for the periods ending 31 December 2014

15%

20%

25%

30%

10%

5%

0%



-5%


Upper Quartile 13.74% 18.78% 15.59% 12.12% 15.91%

Median 12.41% 19.05% 16.12% 12.63% 16.11%

Average 11.86% 17.97% 15.36% 12.28% 15.89%


Lower Quartile 10.87% 16.15% 14.65% 11.75% 15.49%

Low 9.14% 11.43% 11.36% 11.02% 15.14%

Range 6.19% 8.08% 4.66% 1.66% 1.97%




31

SECTION 2


Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (i.e. more than 5 years) capital growth. This may lead to volatility of returns in the short term (i.e. less than one year).

General information




Allan Gray Life Global Absolute Portfolio V Pooled Global LMW Average N/A 3 473

Coronation (Managed) V Pooled Global LMW Average N/A 16 037

Investec Asset Management Managed V Pooled Global LMW Median 1 7 194

Investec Opportunity Composite V Pooled CPI + 6% 15 52 524

Investment Solutions Entrepreneur Pooled multi-manager

56.3% SWIX, 15% ALBI, 3.8% SAPY, 16.3% MSCI World Index, 3.8% LBGAI, 2.5% 90-day US Treasury Bill, 2.5% 90-day US Treasury Bill + 2%

N/A 1 000

OMIG MacroSolutions Edge 28 C Pooled CPI 1 1 994

OMIG MacroSolutions (Profile Pinnacle) V Pooled

This fund holds no specific benchmark. The asset allocation is aggressively managed seeking to maximise short-term opportunities by actively switching between asset classes and asset sectors.

N/A 1 777

Momentum AM Optimiser Fund V Pooled Global LMW Median 1 315

SYmmETRY Aggressive V Pooled multi-manager 50% SWIX , 10% Property, 17% SteFI, 20% MSCI World Index, 3% All Africa Top 100 (excl SA) N/A 2 288

Total 86 600


32


Global Balanced Manager WatchTM Survey – Dynamic

Objective: The portfolios are balanced (i.e. multiple asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (i.e. more than 5 years) capital returns. This may lead to volatility of returns in the short term (i.e. less than one year).



Allan Gray Life Global Absolute Portfolio

11.45% 5 10.31% 11.43% 7 17.71% 11.36% 7 15.23% 12.16% 3 11.50% 17.11% 2 *

Coronation (Managed) 11.22% 6 10.15% 21.52% 1 17.64% 18.50% 1 15.12% 15.36% 1 11.43% 18.62% 1 15.60%

Investec Asset Management Managed

9.14% 9 11.68% 17.91% 4 18.28% 15.01% 5 15.30% 11.02% 7 11.65% 15.14% 7 15.70%

Investec Opportunity Composite

10.46% 8 11.80% 15.73% 6 11.58% 14.53% 6 11.29% 12.68% 2 12.12% 15.87% 4 11.99%

Investment Solutions Entrepreneur

13.41% 3 14.69% 17.44% 5 19.48% 15.11% 4 16.57% 11.79% 5 12.22% 15.48% 6 16.10%

OMIG MacroSolutions Edge 28

15.33% 1 13.62% * * * * * * * *

OMIG MacroSolutions (Profile Pinnacle)

14.72% 2 * 19.51% 2 * 15.75% 3 * 12.02% 4 * 15.92% 3 *

Momentum AM Optimiser Fund

11.00% 7 11.68% * * * * * * * *

SYmmETRY Aggressive 12.83% 4 15.63% 19.07% 3 21.74% 16.01% 2 17.63% 11.74% 6 12.98% 15.53% 5 16.71%


33

SECTION 2

Global Balanced Manager WatchTM Survey – Dynamic


Calendar Years

2013 2012 2011 2010 2009


Allan Gray Life Global Absolute Portfolio 16.78% 8 6.29% 8 14.00% 1 8.58% 8 13.58% 8

Coronation (Managed) 30.10% 1 24.01% 1 9.04% 3 19.40% 1 25.89% 1

Investec Asset Management Managed 23.46% 6 21.66% 3 8.80% 4 12.81% 7 21.32% 5

Investec Opportunity Composite 16.23% 9 20.72% 4 12.59% 2 12.94% 6 21.84% 4

Investment Solutions Entrepreneur 20.18% 7 18.83% 6 7.06% 7 16.57% 2 22.45% 3

OMIG MacroSolutions Edge 28 23.82% 4 * * * *

OMIG MacroSolutions (Profile Pinnacle) 23.71% 5 20.27% 5 6.65% 8 14.17% 4 20.69% 6

Momentum AM Optimiser Fund 25.56% 3 21.82% 2 8.69% 5 13.88% 5 22.71% 2

SYmmETRY Aggressive 26.60% 2 18.17% 7 8.29% 6 14.97% 3 18.06% 7


34


Global Balanced Manager WatchTM Survey – Best Investment View


Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view. The statistics represent the various categories that portfolios are represented in but only for those managers that are open to new investments.

Range of Returns of Global Best Investment View Investable Universe for the periods ending 31 December 2014


Upper Quartile 12.14% 19.12% 16.54% 12.77% 16.71%

Median 11.50% 17.91% 15.15% 11.71% 15.65%

Average 9.99% 17.19% 14.85% 11.71% 15.65%


Lower Quartile 10.29% 16.36% 14.56% 10.46% 14.42%

Low -2.37% 8.76% 9.84% 8.95% 13.09%

Range 15.92% 11.84% 7.83% 5.11% 5.29%




15%

20%

25%

30%

10%

5%

0%



-5%

35

SECTION 2

Global Balanced Manager Watch™ Survey – Best Investment View

Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.

General information




ABSA Asset Management Global Balanced V Pooled AF Large Manager Watch Median 3 3 596

Allan Gray V Segregated Global LMW Average 20 68 555Cadiz Global Balanced V Segregated Global LMW Median 2 551Coronation V Segregated Global LMW Median 16 41 881

Foord Asset Management C Segregated 55% ALSI, 9% MSCI, 6% CITI, 5% PROP, 20% ALBI, 5% STFCAD 12 62 464

Investec Asset Management V Segregated Global LMW Median 31 53 906Investment Solutions (Performer) Pooled multi-manager Alexander Forbes Investable Global Large

Manager™ Watch Median N/A 74 401

Investment Solutions (Spectrum) Pooled multi-manager Alexander Forbes Investable Global Large

Manager™ Watch Average N/A 2 444

Momentum Balanced Pooled Global LMW Median N/A 868Nedgroup Investments XS Diversified Fund of Funds N/A Pooled CPI + 5% N/A 2 325

Oasis V Segregated Global BIV Average 7 1 232

OMIG MacroSolutions V SegregatedThe benchmark for our full discretionary funds is calculated in-house, using FTSE free market indices and estimated peer group weightings.

3 3 299

OMIG MacroSolutions (Profile Balanced) V Pooled

45% FTSE/JSE Shareholder Wghted Index + 20% MSCI ACWI Free Index (R) + 15% BEASSA Index + 7.5%Stefi 3 Months + 5% 50/50 JPM Intl Bond Index/Barclay Cap Global Bnd Agg Index (R) + 5% FTSE/JSE SA Quoted Prop + 2.5% SPDR Gold Trust ETF

N/A 1 122

Prescient Global Balanced V Segregated Inflation 2 642

Prudential Global Balanced V SegregatedThe total fund is benchmarked against the total MEDIAN performance of the Global LMW participants.

9 22 823

PSG Balanced Fund

The "Performance Target" is CPI + 5%. The Benchmark is 60% JSE ALSI, 10% All Bond Index, 10% STEFI Cash, 12% MSCI World Index, 4% USD Month Deposit Rate, 4% JPM GBI (all in ZAR)

N/A 4 157

Momentum AM Global Balanced Fund V Segregated Global LMW Median 6 5 767

Momentum MoM Enhanced Factor 7 Pooled CPI +7% N/A 12 718

RECM V Pooled CPI + 5% 6 5 435SIM Global Unique V Segregated Global LMW Median 3 10 880STANLIB AM V Segregated Forbes MW - Global Best Invest 10 2 574

SYmmETRY Managed Pooled multi-manager Median of Alexander Forbes Global Large Manager Watch N/A 1 942

Total 383 581


36



Objective: The portfolios are balanced (i.e. multiple asset class) portfolios with exposure to global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers’ best investment view.

Performance Data



ABSA Asset Management Global Balanced

11.57% 9 11.68% 16.05% 16 18.28% * * * * * *

Allan Gray 10.29% 17 10.31% 16.67% 15 17.71% 14.84% 11 15.23% 12.53% 7 11.50% 17.38% 4 15.66%

Cadiz Global Balanced 3.17% 20 11.68% 14.01% 17 18.28% 12.38% 15 15.30% 9.48% 16 11.65% 13.77% 15 15.70%

Coronation 12.09% 7 11.68% 20.70% 1 18.28% 17.52% 2 15.30% 14.45% 1 11.65% 17.90% 2 15.70%

Foord Asset Management 11.00% 14 11.65% 20.01% 3 17.56% 17.67% 1 14.85% 14.06% 2 11.20% 18.39% 1 15.00%


13.26% 3 11.68% 19.12% 7 18.28% 15.80% 7 15.30% 12.82% 5 11.65% 17.46% 3 15.70%

Investment Solutions (Performer)

11.50% 10 11.66% 19.12% 6 18.27% 16.51% 6 15.65% 13.07% 4 12.39% 16.68% 6 16.22%

Investment Solutions (Spectrum)

10.27% 18 10.20% 17.71% 10 17.66% 15.27% 9 15.36% 11.68% 8 11.86% 15.77% 8 15.85%

Momentum Balanced 1.11% 21 11.68% 12.58% 18 18.28% 11.39% 16 15.30% 8.95% 17 11.65% 13.09% 17 15.70%

Nedgroup Investments XS Diversified Fund of Funds

11.29% 13 11.09% * * * * * * * *

Oasis 12.91% 4 9.99% 19.08% 8 17.19% 15.46% 8 14.85% 10.65% 12 11.71% 15.09% 10 15.65%

OMIG MacroSolutions 12.14% 6 13.19% 17.61% 12 18.31% 14.81% 12 15.67% 11.10% 9 12.01% 15.30% 9 16.03%

OMIG MacroSolutions (Profile Balanced)

12.15% 5 14.03% 17.58% 13 19.20% 14.79% 13 16.46% 10.83% 11 12.66% 14.48% 13 16.05%

Prescient Global Balanced

10.89% 15 5.09% 12.13% 19 5.35% * * * * * *

Prudential Global Balanced

11.67% 8 11.50% 19.59% 5 17.91% 16.66% 4 15.15% 13.10% 3 11.71% 16.80% 5 15.65%

PSG Balanced Fund 13.33% 2 10.93% * * * * * * * *

Momentum AM Global Balanced Fund

10.52% 16 11.68% 17.03% 14 18.28% 13.85% 14 15.30% 10.47% 13 11.65% 14.26% 14 15.70%

Momentum MoM Enhanced Factor 7

13.55% 1 15.82% 20.61% 2 20.99% 17.26% 3 17.20% 12.76% 6 12.59% 16.26% 7 16.27%

RECM -2.37% 22 11.33% 8.76% 20 13.02% 9.84% 17 13.09% 9.59% 15 14.19% 13.27% 16 14.10%

SIM Global Unique 11.32% 12 11.68% 17.63% 11 18.28% 15.11% 10 15.30% 10.93% 10 11.65% 14.77% 12 15.70%

STANLIB AM 9.69% 19 11.50% 18.68% 9 17.91% 16.62% 5 15.15% 10.43% 14 11.71% 14.78% 11 15.65%

SYmmETRY Managed 11.37% 11 11.61% 19.79% 4 18.28% * * * * * *


37

SECTION 2



Calendar Year Returns

2013 2012 2011 2010 2009


ABSA Asset Management Global Balanced 16.72% 21 20.01% 14 8.39% 11 * *

Allan Gray 25.05% 6 15.14% 19 12.63% 1 11.68% 16 15.62% 16

Cadiz Global Balanced 18.18% 19 21.54% 7 4.36% 20 15.91% 7 20.33% 6

Coronation 28.88% 1 21.73% 6 8.21% 12 17.78% 2 25.14% 2

Foord Asset Management 24.02% 8 25.57% 1 11.40% 2 17.16% 3 17.93% 14

Investec Asset Management 23.67% 9 20.67% 10 7.59% 16 14.53% 10 26.17% 1

Investment Solutions (Performer) 25.53% 5 20.77% 9 9.54% 5 15.98% 6 20.40% 5

Investment Solutions (Spectrum) 22.59% 11 20.67% 11 8.65% 9 14.81% 9 21.07% 3

Momentum Balanced 17.55% 20 20.06% 13 7.24% 19 12.05% 14 20.25% 7

Nedgroup Investments XS Diversified Fund of Funds 21.45% 15 17.49% 18 9.39% 6 * *

Oasis 23.11% 10 21.47% 8 8.55% 10 11.95% 15 15.61% 17

OMIG MacroSolutions 20.89% 17 19.99% 15 7.57% 17 14.03% 11 19.03% 11

OMIG MacroSolutions (Profile Balanced) 20.84% 18 19.95% 16 7.84% 14 13.70% 12 18.14% 13

Prescient Global Balanced 12.63% 22 12.87% 20 * * *

Prudential Global Balanced 24.84% 7 22.67% 5 8.92% 8 15.98% 5 20.01% 8

PSG Balanced Fund 28.25% 2 * * * *

Momentum AM Global Balanced Fund 21.20% 16 19.65% 17 7.54% 18 10.98% 17 19.84% 10

Momentum MoM Enhanced Factor 7 25.63% 3 22.99% 3 8.06% 13 16.94% 4 18.68% 12

RECM 22.31% 12 7.75% 21 9.66% 3 13.31% 13 19.95% 9

SIM Global Unique 21.63% 14 20.21% 12 7.64% 15 15.33% 8 20.98% 4

STANLIB AM 22.29% 13 24.63% 2 9.34% 7 18.02% 1 17.77% 15

SYmmETRY Managed 25.60% 4 22.88% 4 9.64% 4 * *


38


Objective: The portfolios are balanced (i.e. multiple asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (i.e. less than one year) capital loss while targeting long-term (i.e. more than five years) capital return. The statistics represent the various categories that portfolios are represented in but only for those managers that are open to new investments.

Global Balanced Manager Watch™ Survey – Conservative


High 9.73% 15.56% 14.23% 10.77% 12.86%

Upper Quartile 9.54% 13.10% 11.96% 10.76% 12.76%

Median 9.10% 12.97% 11.81% 10.75% 12.91%

Average 8.81% 12.85% 11.75% 10.55% 12.84%


Lower Quartile 7.93% 12.25% 11.28% 10.54% 12.02%

Low 7.77% 10.66% 10.19% 10.29% 11.38%

Range 1.96% 4.90% 4.04% 0.48% 1.48%

Number of participants 5 5 5 4 3



Range of Returns of Global Conservative Investable Universe for the periods ending 31 December 2014

15%

20%

25%

30%

10%

5%

0%



-5%

39

SECTION 2


Objective: The portfolios are balanced (i.e. multiple asset class) portfolios with exposure to both global and local assets, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (i.e. less than one year) capital loss while targeting long-term (i.e. more than five years) capital return.

General information




Allan Gray Life Global Stable Portfolio V Pooled Alexander Forbes 3 month Deposit Index plus 2% N/A 5 011

Investec Cautious Managed Fund V Pooled GLMW Median 1 8 150

Investment Solutions (Conserver) Pooled multi-manager

30% SWIX, 22.5% ALBI, 22.5% SteFI Call Deposit Index, 11.3% MSCI World Index, 5% LBGAI, 3.1% 90-day US Treasury Bill, 1.9% One-month French Treasury Bill, 3.8% 90-Day US Treasury Bill + 2%

N/A 3 685

OMIG MacroSolutions (Profile Capital) V Pooled

The Profile Capital Portfolio is continually evaluated against its' performance benchmarks, seeking to outperform the returns which would be generated by adopting a passive strategy, that is, by simply holding the stated asset class and sector allocation

N/A 353

SYmmETRY Absolute Balanced Fund Pooled multi-manager CPI + 6% N/A 4 039

TOTAL 17 198


40






Allan Gray Life Global Stable Portfolio

7.77% 5 7.71% 10.66% 5 7.43% 10.19% 5 7.71% 10.29% 4 9.01% 12,66% 2 *

Investec Cautious Managed Fund

9.54% 2 11.68% 12.25% 4 18.28% 11.28% 4 15.30% 10.75% 2 11.65% * *

Investment Solutions (Conserver)

7.93% 4 10.72% 12.34% 3 13.41% 11.56% 3 12.13% 10.62% 3 10.22% 12,86% 1 12,27%

OMIG MacroSolutions (Profile Capital)

9.73% 1 10.47% 13.10% 2 11.54% 11.96% 2 11.29% 10.77% 1 10.24% 11,38% 3 11,10%

SYmmETRY Absolute Balanced Fund

9.03% 3 11.57% 15.56% 1 12.14% 14.23% 1 11.98% * * * *


41

SECTION 2




2013 2012 2011 2010 2009


Allan Gray Life Global Stable Portfolio 16.29% 2 8.13% 5 13.31% 1 5.80% 5 7.46% 5

Investec Cautious Managed Fund 14.64% 4 12.61% 4 12.98% 2 6.82% 4 12.98% 3

Investment Solutions (Conserver) 14.74% 3 14.49% 3 9.86% 4 10.94% 2 13.95% 2

OMIG MacroSolutions (Profile Capital) 12.70% 5 16.99% 2 9.75% 5 10.79% 3 8.84% 4

SYmmETRY Absolute Balanced Fund 19.84% 1 18.10% 1 10.30% 3 14.25% 1 14.66% 1


42


S.A. Balanced Manager Watch™ Survey – Best Investment View


Cal

cula

ted

on 3

yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

k A

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

5 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

kA

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

AB

SA

Ass

et M

anag

emen

t D

omes

tic B

alan

ced

14.0

5%12

6.03

%4

-1.5

3%1.

82%

1.41

13.4

7%11

7.38

%5

-0.1

9%1.

80%

1.03

Alla

n G

ray

14.6

0%11

5.65

%1

-0.6

2%2.

41%

1.60

14.0

5%10

5.59

%1

-0.1

1%3.

28%

1.47

Cor

onat

ion

17.8

8%2

6.00

%3

2.07

%1.

99%

2.06

16.3

7%2

7.41

%6

1.95

%1.

69%

1.42

Foor

d S

egre

gate

d D

omes

tic21

.42%

17.

25%

125.

01%

3.07

%2.

1918

.80%

18.

33%

124.

60%

2.88

%1.

55

Inve

stec

Ass

et

Man

agem

ent

16.5

5%6

7.69

%13

0.74

%3.

07%

1.43

14.8

2%7

8.32

%11

0.40

%2.

61%

1.08

Inve

stm

ent S

olut

ions

P

erfo

rmer

Loc

al17

.41%

46.

22%

51.

51%

0.83

%1.

9115

.89%

47.

22%

41.

44%

1.05

%1.

39

Inve

stm

ent S

olut

ions

Va

lue

Alp

ha L

ocal

17.0

0%5

6.30

%6

1.10

%1.

34%

1.82

15.7

1%5

6.84

%3

1.26

%1.

84%

1.44

Oas

is15

.43%

97.

01%

100.

55%

2.38

%1.

4114

.59%

87.

65%

80.

70%

2.03

%1.

14

Pan

-Afri

can

Ass

et

Man

agem

ent

14.9

6%10

6.79

%9

-0.7

4%1.

76%

1.39

13.3

4%12

7.52

%7

-1.0

9%1.

82%

1.00

Pru

dent

ial D

omes

tic

Bal

ance

d17

.69%

37.

06%

111.

99%

1.38

%1.

7216

.31%

38.

70%

131.

87%

1.74

%1.

20

RE

CM

Bal

ance

d D

omes

tic C

ompo

site

3.84

%13

5.91

%2

-9.1

9%5.

82%

-0.2

96.

34%

135.

59%

2-6

.75%

5.58

%0.

09

SIM

Dom

estic

Uni

que

15.9

5%8

6.36

%8

0.14

%1.

05%

1.63

14.4

6%9

7.80

%9

0.04

%1.

01%

1.10

STA

NLI

B A

M16

.21%

76.

33%

70.

51%

2.40

%1.

6915

.51%

68.

27%

101.

07%

2.30

%1.

17

Low

er v

olat

ility

= hi

gher

ran

king

Low

er v

olat

ility

= hi

gher

ran

king

Stat

istic

sR

ange

17.5

8%12

.45%

Hig

hest

21.4

2%7.

69%

5.01

%5.

82%

2.19

18.8

0%8.

70%

4.60

%5.

58%

1.55

Upp

er Q

uarti

le17

.41%

7.01

%1.

51%

2.41

%1.

8215

.89%

8.27

%1.

44%

2.61

%1.

42

Med

ian

15.7

5%6.

33%

0.55

%1.

99%

1.63

14.4

9%7.

52%

0.70

%1.

84%

1.17

Aver

age

14.8

3%6.

51%

0.12

%2.

26%

1.54

13.9

0%7.

43%

0.40

%2.

28%

1.16

Low

er Q

uarti

le14

.96%

6.03

%-0

.62%

1.38

%1.

4114

.05%

7.22

%-0

.11%

1.74

%1.

08

Low

est

3.84

%5.

65%

-9.1

9%0.

83%

-0.2

96.

34%

5.59

%-6

.75%

1.01

%0.

09

Num

ber o

f par

ticip

ants

1313

1313

1313

1313

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 - V

ola

tilit

y v

s R

etu

rn

43

SECTION 2



Cal

cula

ted

on 3

yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

k A

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

5 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

kA

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

Alla

n G

ray

Life

Glo

bal

Abs

olut

e P

ortfo

lio11

.43%

74.

63%

1-6

.29%

5.07

%1.

2711

.36%

74.

29%

1-3

.87%

6.75

%1.

28

Cor

onat

ion

(Man

aged

)21

.52%

17.

37%

73.

88%

2.04

%2.

1718

.50%

17.

80%

63.

37%

1.75

%1.

62

Inve

stec

Ass

et

Man

agem

ent M

anag

ed17

.91%

46.

78%

5-0

.37%

2.65

%1.

8215

.01%

57.

32%

5-0

.29%

3.34

%1.

25

Inve

stec

Opp

ortu

nity

Fu

nd15

.73%

65.

39%

24.

14%

5.13

%1.

8914

.53%

65.

48%

23.

25%

5.39

%1.

58

Inve

stm

ent S

olut

ions

E

ntre

pren

eur

17.4

4%5

6.04

%3

-2.0

5%2.

21%

1.97

15.1

1%4

6.92

%4

-1.4

6%2.

09%

1.34

OM

IG M

acro

Sol

utio

ns

(Pro

file

Pin

nacl

e)19

.51%

26.

80%

6*

*2.

0515

.75%

37.

86%

7*

*1.

26

SY

mm

ETR

Y A

ggre

ssiv

e19

.07%

36.

34%

4-2

.68%

3.14

%2.

1316

.01%

26.

88%

3-1

.61%

3.00

%1.

48

Low

er v

olat

ility

=

high

er r

anki

ngLo

wer

vol

atili

ty =

hi

gher

ran

king

Stat

istic

sR

ange

10.0

9%7.

14%

Hig

hest

21.5

2%7.

37%

4.14

%5.

13%

2.17

18.5

0%7.

86%

3.37

%6.

75%

1.62

Upp

er Q

uarti

le19

.29%

6.79

%2.

82%

4.59

%2.

0915

.88%

7.56

%2.

36%

4.88

%1.

53

Med

ian

18.9

4%6.

34%

-1.2

1%2.

89%

1.97

16.1

7%6.

92%

-0.8

7%3.

17%

1.34

Aver

age

17.7

0%6.

19%

-0.5

6%3.

37%

1.90

15.2

5%6.

65%

-0.1

0%3.

72%

1.40

Low

er Q

uarti

le16

.58%

5.72

%-2

.52%

2.32

%1.

8614

.77%

6.18

%-1

.58%

2.32

%1.

27

Low

est

11.4

3%4.

63%

-6.2

9%2.

04%

1.27

11.3

6%4.

29%

-3.8

7%1.

75%

1.25

Num

ber o

f par

ticip

ants

77

66

77

76

67

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 - V

ola

tilit

y v

s R

etu

rn

44




Cal

cula

ted

on 3

yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

k A

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

5 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

kA

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

Alla

n G

ray

16.6

7%15

6.05

%5

-1.0

5%2.

40%

1.84

14.8

4%11

5.54

%1

-0.3

9%3.

40%

1.62

Cad

iz G

loba

l Bal

ance

d14

.01%

166.

71%

14-4

.27%

3.80

%1.

2612

.38%

157.

40%

12-2

.91%

3.35

%0.

88C

oron

atio

n20

.70%

16.

64%

132.

43%

1.91

%2.

2817

.52%

27.

00%

62.

22%

1.69

%1.

67Fo

ord

Ass

et

Man

agem

ent

20.0

1%3

6.86

%15

2.46

%2.

79%

2.11

17.6

7%1

7.48

%13

2.82

%2.

67%

1.58

Inve

stec

Ass

et

Man

agem

ent

19.1

2%7

7.58

%17

0.84

%2.

78%

1.79

15.8

0%7

7.55

%15

0.51

%2.

30%

1.32

Inve

stm

ent S

olut

ions

(P

erfo

rmer

)19

.12%

66.

44%

110.

85%

1.14

%2.

1116

.51%

66.

73%

20.

87%

1.19

%1.

58

Inve

stm

ent S

olut

ions

(S

pect

rum

)17

.71%

106.

18%

70.

06%

0.47

%1.

9715

.27%

96.

76%

3-0

.10%

0.67

%1.

39

Mom

entu

m B

alan

ced

12.5

8%17

7.19

%16

-5.6

9%4.

19%

0.98

11.3

9%16

7.85

%17

-3.9

1%3.

47%

0.70

Oas

is19

.08%

86.

22%

81.

89%

1.75

%2.

1715

.46%

86.

83%

50.

61%

1.79

%1.

41O

MIG

Mac

roS

olut

ions

17.6

1%12

5.98

%3

-0.7

0%1.

65%

2.02

14.8

1%12

7.18

%10

-0.8

6%1.

56%

1.25

OM

IG M

acro

Sol

utio

ns

(Pro

file

Bal

ance

d)17

.58%

136.

30%

9-1

.62%

2.10

%1.

9114

.79%

137.

11%

9-1

.67%

2.06

%1.

26

Pru

dent

ial G

loba

l B

alan

ced

19.5

9%5

6.40

%10

1.68

%1.

17%

2.19

16.6

6%4

7.72

%16

1.51

%1.

52%

1.40

Mom

entu

m A

M G

loba

l B

alan

ced

Fund

17.0

3%14

6.03

%4

-1.2

5%1.

26%

1.90

13.8

5%14

7.08

%8

-1.4

5%1.

27%

1.13

Mom

entu

m M

oM

Enh

ance

d Fa

ctor

720

.61%

26.

06%

6-0

.39%

1.41

%2.

4817

.26%

37.

32%

110.

06%

1.39

%1.

56

RE

CM

8.

76%

187.

93%

18-4

.26%

7.66

%0.

419.

84%

176.

78%

4-3

.25%

6.68

%0.

59S

IM G

loba

l Uni

que

17.6

3%11

5.82

%1

-0.6

5%1.

42%

2.08

15.1

1%10

7.03

%7

-0.1

9%1.

34%

1.32

STA

NLI

B A

M18

.68%

95.

96%

20.

78%

2.04

%2.

2016

.62%

57.

50%

141.

47%

2.30

%1.

43S

Ym

mE

TRY

Man

aged

19.7

9%4

6.54

%12

1.51

%1.

04%

2.18

**

**

*Lo

wer

vol

atili

ty =

hi

gher

ran

king

Low

er v

olat

ility

=

high

er r

anki

ngSt

atis

tics

Ran

ge11

.94%

7.83

%H

ighe

st20

.70%

7.93

%2.

46%

7.66

%2.

4817

.67%

7.85

%2.

82%

6.68

%1.

67U

pper

Qua

rtile

19.1

2%6.

71%

0.85

%2.

78%

2.17

16.6

2%7.

48%

0.87

%2.

67%

1.56

Med

ian

15.8

8%6.

30%

-0.3

9%1.

91%

2.02

14.5

3%7.

11%

-0.1

0%1.

79%

1.39

Aver

age

15.2

2%6.

49%

-0.5

2%2.

35%

1.86

14.1

7%7.

11%

-0.2

7%2.

27%

1.30

Low

er Q

uarti

le17

.03%

6.05

%-1

.25%

1.41

%1.

8414

.79%

6.83

%-1

.45%

1.39

%1.

25Lo

wes

t8.

76%

5.82

%-5

.69%

0.47

%0.

419.

84%

5.54

%-3

.91%

0.67

%0.

59N

umbe

r of p

artic

ipan

ts18

1818

1817

1717

17

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 - V

ola

tilit

y v

s R

etu

rn

45

SECTION 2


Objective: The portfolios are balanced (i.e. multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to minimise the probability of short-term (i.e. less than one year) capital loss while targeting long-term (i.e. more than five years) capital growth.

Cal

cula

ted

on 3

yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

k A

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

5 Ye

ar

Ret

urn

(p.a

.)R

ank

Vola

tility

Ran

kA

ctiv

e R

etur

nTr

acki

ng

Erro

rSh

arpe

R

atio

Alla

n G

ray

Life

Glo

bal S

tabl

e P

ortfo

lio10

.66%

54.

18%

43.

23%

4.18

%1.

2210

.19%

53.

92%

42.

49%

3.94

%1.

11

Inve

stec

Cau

tious

Man

aged

Fu

nd12

.25%

44.

04%

2-6

.03%

3.07

%1.

6611

.28%

43.

56%

2-4

.01%

4.22

%1.

52

Inve

stm

ent S

olut

ions

(C

onse

rver

)12

.34%

34.

08%

3-1

.07%

1.72

%1.

6711

.56%

33.

79%

3-0

.57%

1.84

%1.

51

OM

IG M

acro

Sol

utio

ns

(Pro

file

Cap

ital)

13.1

0%2

3.53

%1

1.56

%1.

91%

2.14

11.9

6%2

3.32

%1

0.67

%1.

82%

1.84

SY

mm

ETR

Y A

bsol

ute

Bal

ance

d Fu

nd15

.56%

14.

83%

53.

42%

4.70

%2.

0714

.23%

15.

06%

52.

25%

5.13

%1.

65

Low

er v

olat

ility

=

high

er r

anki

ngLo

wer

vol

atili

ty =

hi

gher

ran

king

Stat

istic

sR

ange

4.90

%4.

04%

Hig

hest

15.5

6%4.

83%

3.42

%4.

70%

2.14

14.2

3%5.

06%

2.49

%4.

22%

1.84

Upp

er Q

uarti

le13

.10%

4.18

%3.

23%

4.18

%2.

0711

.96%

3.92

%1.

12%

4.01

%1.

65

Med

ian

12.9

6%4.

08%

1.56

%3.

07%

1.67

11.8

3%3.

79%

0.05

%2.

89%

1.52

Aver

age

12.6

6%4.

13%

0.22

%3.

12%

1.75

11.6

5%3.

93%

-0.3

6%2.

96%

1.52

Low

er Q

uarti

le12

.25%

4.04

%-1

.07%

1.91

%1.

6611

.28%

3.56

%-1

.43%

1.83

%1.

51

Low

est

10.6

6%3.

53%

-6.0

3%1.

72%

1.22

10.1

9%3.

32%

-4.0

1%1.

82%

1.11

Num

ber o

f par

ticip

ants

55

55

55

55

55

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 - R

isk v

s R

etu

rn

46


SA Manager Watch™ – Best Investment View

Volatility vs Return Scatterplot – SA Best Investment View 3 years ended 31 December 2014

3.50%

4.80% 5.30% 5.80% 6.30% 6.80% 7.30% 7.80% 8.30% 8.80%

5.00%

6.50%

8.00%

9.50%

11.00%

12.50%

14.00%

15.50%

17.00%

18.50%

20.00%

21.50%

23.00%

Ret

urn

(p.a

.)

Volatility (p.a.) (standard deviation)


Allan Gray


RECM Balanced Domestic Composite


Oasis

Prudential Domestic BalancedCoronation

STANLIB AM

SIM Domestic Unique

Investment SolutionsPerformer Local

Investment Solutions Value Alpha Local

Pan-African Asset Management

Global Manager Watch™ – Global Best Investment View

Volatility vs Return Scatterplot – Global Best Investment View 3 years ended 31 December 2014

8.50%

4.65% 5.15% 5.65% 6.15% 6.65% 7.15% 7.65% 8.15%

10.50%

12.50%

14.50%

16.50%

18.50%

20.50%

22.50%

Ret

urn

(p.a

.)


RECM

Momentum Balanced

Cadiz Global Balanced

Allan GrayOMIG Macrosolutions

SIM Global Unique

OMIG MacroSolutions (Profile Balanced)Investment Solutions (Spectrum)

Momentum AM Global

Balanced Fund

OasisSTANLIB AM

CoronationFoord Asset Management

SYmmETRY ManagedInvestment Solutions (Performer)



Investec AssetManagement

47

SECTION 2

Global Manager Watch™ – Global Conservative

Global Manager Watch™ – Global Dynamic

Volatility vs Return Scatterplot – Global Dynamic 3 years ended 31 December 2014

10.20%

4.00% 5.00% 6.00% 7.00% 8.00% 9.00%

12.20%

14.20%

16.20%

18.20%

20.20%

22.20%

Ret

urn

(p.a

.)


Allan Gray Life Global Absolute Portfolio

Investec Opportunity Fund


SYmmETRY Aggressive

Investec Asset Management Managed

OMIG MacroSolutions (Profile Pinnacle

Coronation (Managed)

Volatility vs Return Scatterplot – Global Conservative 3 years ended 31 December 2014

9.70%

2.60% 3.10% 3.60% 4.10% 4.60% 5.10% 5.60%

10.70%

11.70%

12.70%

13.70%

14.70%

15.70%

16.70%

17.70%

Ret

urn

(p.a

.)


SYmmETRY Absolute Balanced Fund

Allan Gray Life Global Stable Portfolio

Investec Cautious Managed FundInvestment Solutions (Conserver)

OMIG Macro Solutions (Profile Capital)

48


Global and SA Balanced Manager Watch™ Survey – Asset Allocation

Average Asset Allocation of SA Best Investment View as at 31 December 2014

SA Equities

SA Bonds

SA Listed Property

SA Real Estate

SA Cash

SA Other

2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

67.01%

12.68%

3.72%1.13%

13.96%

1.50%

2.81%0.65%

14.95%

66.69%

13.61%

1.28%

17.98%

1.16%

2.54%0.66%

61.65%

16.01%

3.60%0.22%

15.67%

2.72%

62.10%

15.69%

18.33%

1.46%

2.61%1.04%

61.88%

14.68%

18.91%

1.87%

4.51%0.00%

59.91%

14.80%

Average Asset Allocation of Global Best Investment View as at 31 December 2014

SA Equities

SA Bonds

SA Listed Property

SA Real Estate

SA Cash

SA Other

Global

2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

47.47%

11.31%

2.91%0.36%

13.67%

0.89%

23.38% 23.60%

0.74%

12.06%

0.13%2.97%

12.43%

48.07% 44.26%

11.07%

2.35%0.41%

14.68%

0.77%

26.46%

56.06%

10.48%

4.16%0.84%

10.19%

0.99%

17.28%

55.02%

10.13%

10.13%3.51%

11.49%

0.73%

18.23%

41.48%

12.12%

0.00%

14.52%

1.81%

25.98%

4.10%

49

SECTION 2

Composite Dispersion (Standard Deviation) of SA Balanced Manager WatchTM Managers

SA Best Investment View Minimum Return Maximum Return

Median Composite Return

Composite Dispersion (1yr)

Composite Dispersion (3yrs)


ABSA Asset Management Domestic Balanced 9.11% 11.47% 10.29% 1.18% 0.88% 1.31%

Allan Gray 12.84% 14.16% 13.49% 0.30% 0.31% 0.23%

Coronation Domestic 10.69% 11.00% 10.89% 0.08% 0.05% 0.05%

Foord Segregated Domestic 13.12% 15.26% 13.89% 0.63% 1.17% *

Investec Domestic Balanced 13.08% 15.28% 13.70% 0.82% 0.42% *

Pan-African 7.10% 9.70% 8.70% 0.93% 0.71% 0.53%

Prescient Domestic Balanced 7.37% 8.48% 7.93% 0.56% 0.56% *

Prudential Domestic Balanced 10.67% 10.86% 10.76% 0.10% * *

SIM Domestic Unique 10.72% 10.74% 10.73% 0.009% * *

STANLIB AM 8.36% 8.65% 8.51% 0.14% 8.22% 9.79%

* Not all managers made data available at time of publication.

SA Best Investment View


Allan Gray

Coronation Domestic


Investec Domestic Balanced

Pan-African

Prescient Domestic Balanced

Prudential Domestic Balanced

SIM Domestic Unique

STANLIB AM

0.00% 0.20%

1.18%

0.30%

0.08%

0.63%

0.82%

0.93%

0.56%

0.10%

0.14%

0.009%

0.60% 0.80% 1.00% 1.20% 1.40%0.40%

50


Composite Dispersion (Standard Deviation) of Global Balanced Manager WatchTM Managers

Global Best Investment View Minimum Return Maximum Return





Allan Gray 9.41% 10.77% 10.23% 0.28% 0.15% 0.31%

Cadiz Global Balanced 2.63% 3.27% 2.95% 0.32% 0.42% *

Coronation Full Discretion 11.98% 12.29% 12.15% 0.08% 0.14% 0.06%

Foord Global Balanced 10.33% 12.66% 11.01% 0.69% 0.72% 0.82%

Investec Balanced International 12.63% 16.07% 12.94% 0.59% 0.12% 0.09%

Oasis 11.99% 14.26% 13.73% 0.67% 0.52% 5.44%

OMIG MacroSolutions 12.06% 12.16% 12.11% 0.03% 0.01% 0.01%

Prescient Global Balanced 9.53% 11.31% 10.42% 0.89% 0.89% *

Prudential Global Balanced 11.10% 11.70% 11.25% 0.15% 0.14% 0.32%

Momentum AM Global Balanced Fund 9.95% 10.08% 10.00% 0.04% 0.71% 0.62%

SIM Global Unique 11.30% 11.83% 11.68% 0.20% 0.71% 0.00%

STANLIB AM 8.58% 10.64% 9.13% 0.34% 7.48% 8.82%


Global Best Investment View

Allan Gray

Cadiz Global Balanced

Coronation Full Discretion

Foord Global Balanced

Investec Balanced International

Oasis

OMIG MacroSolutions

Prescient Global Balanced


Momentum AM Global Balanced Fund

SIM Global Unique

STANLIB AM

0.28%

0.32%

0.08%

0.69%

0.59%

0.67%

0.03%

0.89%

0.20%

0.34%

0.04%

0.15%

0.00% 0.10% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00%0.20%


SA Equity Manager Watch™ Survey

SA Equity Manager Watch™ Survey Composite Dispersions

SA Bond Manager Watch™ Survey

SA Bond Manager Watch™ Survey Composite Dispersions

SA Money Market Manager Watch™ Survey

SA Money Market Manager Watch™ Survey Composite Dispersions

Absolute Return Manager Watch™ Survey

Absolute Return Manager Watch™ Survey Composite Dispersions

Targeted Development Investments Manager Watch™ Survey

SA Fund of Hedge Funds Survey

SA Property Manager Watch™ Survey

Multi-Manager Watch™ (Specialist) Survey

Multi-Manager Watch™ (Balanced) Survey

SA Medical Aid Manager Watch™ Survey

LDI Manager Watch™ Survey

3

54


S.A. Equity Manager Watch™ Survey

Objective: The portfolios included in this survey comply with Regulation 28 and represent specialist active actual equity portfolios with various benchmarks. No carve-outs are reflected.

SA Equity Total 1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)High 17.73% 25.47% 21.86% 16.78% 21.61%

Upper Quartile 14.59% 21.52% 17.63% 12.97% 19.77%

Median 11.79% 19.15% 16.30% 11.86% 17.89%

Average 10.65% 18.08% 15.37% 11.27% 17.70%

Lower Quartile 8.93% 16.77% 14.22% 10.42% 16.82%

Low -4.10% 4.73% 6.51% 5.87% 13.66%

Range 21.83% 20.74% 15.35% 10.91% 7.96%



Range of Returns of SA Equity Total Investable Universe for the periods ending 31 December 2014

15%

20%

25%

30%

10%

5%

0%



-5%

Benchmark % of UniverseFTSE/JSE All Share Index 22.00%

FTSE/JSE Capped All Share Index 4.00%

FTSE/JSE SWIX All Share Index 56.00%

FTSE/JSE Top 40 Index 4.00%

Other 14.00%

Benchmarks of Portfolios in the Equity Survey as a Percentage of the Survey

55

SECTION 3



General information – Investment Managers Specialist Equity

GIPS™ (Verified/ Compliant)

Managed ITO Regulation 28? (Y/N)

Benchmark Description No. of Funds in Composite


Enhanced IndexKagiso Core SWIX Fund V Y FTSE/JSE SWIX All Share Index 10 4 285

Prescient Equity Quant Fund V Y FTSE/JSE Top 40 Index 1 262

STANLIB Enhanced Index Fund V FTSE/JSE SWIX All Share Index 1 3 983

Total 8 530

Benchmark CognisantAfena Capital Equity SWIX V Y FTSE/JSE SWIX All Share Index 7 3 385

Afena Capital Equity CAPI V Y FTSE/JSE Capped All Share Index 4 4 369

Coronation Core Equity V Y FTSE/JSE SWIX All Share Index 12 31 278

Investment Solutions Entrepreneur Equity Y FTSE/JSE SWIX All Share Index N/A 651

Investment Solutions Pure Equity Y FTSE/JSE SWIX All Share Index N/A 31 953

Kagiso Managed Equity Fund V Y FTSE/JSE SWIX All Share Index 19 15 583

Mergence SWIX Fund V Y FTSE/JSE SWIX All Share Index 5 5 557

Mergence CAPI Fund V Y FTSE/JSE Capped All Share Index 2 892

Momentum MoM Classic Equity Y FTSE/JSE SWIX All Share Index 1 11 436

OMIG Double Alpha Top 40 V Y FTSE/JSE Top 40 Index 2 341

Prescient Equity Active Quant V Y FTSE/JSE SWIX All Share Index 1 166

Prudential Core Equity ALSI V Y FTSE/JSE All Share Index 1 3 282

Prudential Core Equity SWIX V Y FTSE/JSE SWIX All Share Index 9 15 708

SIM Moderate Equity V Y 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 3 1 757

STANLIB Core Equity V FTSE/JSE SWIX All Share Index 2 2 715

STANLIB Research V FTSE/JSE SWIX All Share Index 1 7 941

Sygnia Core Equity Fund Y FTSE/JSE SWIX All Share Index N/A 1 793

Taquanta Active All Share V Y FTSE/JSE All Share Index 1 540

Taquanta Active SWIX V Y FTSE/JSE SWIX All Share Index 2 1 031

Total 140 378


56



Objective: The portfolios included in this Survey comply with Regulation 28 and represent specialist active actual equity portfolios with various benchmarks. No carve-outs are reflected.

General information


Benchmark Description No. of Funds in Composite


Enhanced IndexNon Benchmark CognisantABSA Asset Management Value V FTSE/JSE All Share Index 9 7 948

Allan Gray V FTSE/JSE All Share Index 63 63 029

Argon Specialist Equity V FTSE/JSE SWIX All Share Index 12 5 292

Cannon All Equities ALSI Portfolio FTSE/JSE All Share Index 1 404

Cannon All Equities SWIX Portfolio FTSE/JSE SWIX All Share Index 5 288

Coronation Aggressive Equity V FTSE/JSE SWIX All Share Index 8 19 686

Coronation Houseview Equity V FTSE/JSE SWIX All Share Index 39 23 299

ELECTUS Growth Portfolio V FTSE/JSE SWIX All Share Index 3 605

ELECTUS Multi-Cap Portfolio V FTSE/JSE SWIX All Share Index 5 12 468

Element Equity V FTSE/JSE SWIX All Share Index 3 352

Foord Asset Management C FTSE/JSE All Share Index 4 20 210

Investec Equity V FTSE/JSE SWIX All Share Index 11 10 580

Investec Value V FTSE/JSE All Share Index 43 15 324

Momentum AM Core Equity Fund V

Please note the benchmark for Momentum AM Core Equity Fund was the Momentum AM Capped Shareholder Weighted Index up to 30 September 2012. As at 1 October 2012 the benchmark has changed to FTSE/JSE SWIX All Share Index

4 12 967

Oasis Specialist Domestic V South Africa OE (ASISA) Domestic Equity General 8 11 230

Old Mutual Equities V FTSE/JSE SWIX All Share Index 4 26 857

OMIG Active Quant Equity Fund V FTSE/JSE SWIX All Share Index 1 432

OMIG Managed Volatility Capability V FTSE/JSE SWIX All Share Index 2 240

OMIG Premium Equity V FTSE/JSE SWIX All Share Index 2 474

Citadel Asset Management Domestic Equity Composite V FTSE/JSE All Share Index 3 447

Prudential Deep Value Equity V Fund weighted CAPI SWIX index 7 5 859

Regarding Capital Management V FTSE/JSE All Share Index 3 2 639

SIM Aggressive Equity V 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 2 472

SIM Unconstrained Equity V 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 11 6 485

STANLIB Unconstrained Equity V FTSE/JSE All Share Index 1 851

STANLIB Value Fund V FTSE/JSE All Share Index 1 1 198

Sygnia Absolute Focus Equity Fund FTSE/JSE SWIX All Share Index 1 1 335

SYmmETRY Equity Portfolio FTSE/JSE SWIX All Share Index Excluding Old Mutual N/A 1 396

Total 252 369


57

SECTION 3


Objective: The portfolios included in this survey represent specialist active actual equity portfolios with various benchmarks. No carve-outs are reflected.

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Due

to d

iffer

ing

benc

hmar

ks, t

he p

ortfo

lios

belo

w a

re ra

nked

by

activ

e re

turn

s on

ly (i

.e a

ctua

l per

form

ance

less

ben

chm

ark

retu

rn) a

nd a

re p

urel

y fo

r illu

stra

tive

purp

oses

.

Cal

ende

r Yea

r Ret

urns

Ben

chm

ark

Act

ive

Ret

urn:

1

Year

Ran

k

Act

ive

Ret

urn:

3

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

5

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

7

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

10

Yea

rs

(p.a

.)

Ran

kA

ctiv

e R

etur

n - 2

013

Ran

kA

ctiv

e R

etur

n

- 201

2R

ank

Act

ive

Ret

urn

- 201

1R

ank

Act

ive

Ret

urn

- 201

0R

ank

Act

ive

Ret

urn

- 200

9R

ank

Enha

nced

Inde

x

Kag

iso

Cor

e S

WIX

Fun

d FT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-5

.77%

3-1

.63%

3-0

.93%

30.

17%

1*

5.21

%1

-4.0

0%3

0.01

%2

0.12

%2

3.60

%1

Pre

scie

nt E

quity

Qua

nt

Fund

FT

SE

/JS

E T

op 4

0 In

dex

0.41

%1

-1.6

1%2

-0.8

6%2

-0.3

7%3

-0.3

5%2

-5.6

2%3

0.28

%2

0.19

%1

0.21

%1

-0.5

2%3

STA

NLI

B E

nhan

ced

Inde

x Fu

ndFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x0.

05%

2-0

.06%

1-0

.23%

1-0

.15%

20.

02%

1-1

.83%

21.

75%

1-0

.94%

30.

07%

3-0

.09%

2

Ben

chm

ark

Cog

nisa

ntA

fena

Cap

ital E

quity

S

WIX

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-7.1

5%18

-5.8

7%16

-4.4

4%16

-2.2

5%11

*-0

.44%

13-1

0.02

%18

-1.5

7%17

-3.4

2%16

2.01

%6

Afe

na C

apita

l Equ

ity

CA

PI

FTS

E/J

SE

Cap

ped

All

Sha

re In

dex

-5.9

5%15

-6.3

0%17

-4.6

4%18

-2.7

7%12

*-2

.93%

17-1

0.07

%19

-1.5

1%16

-3.1

9%15

0.57

%10

Cor

onat

ion

Cor

e E

quity

FT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-3

.17%

101.

32%

51.

81%

33.

31%

12.

48%

18.

30%

1-0

.81%

61.

28%

63.

89%

13.

39%

4

Inve

stm

ent S

olut

ions

E

ntre

pren

eur E

quity

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-3.6

3%12

-4.3

4%15

-2.5

5%14

*-0

.80%

14-8

.77%

16-0

.58%

140.

62%

71.

52%

7

Inve

stm

ent S

olut

ions

P

ure

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-4

.90%

13-2

.86%

13-1

.48%

12-0

.68%

8-0

.99%

62.

27%

11-5

.87%

140.

65%

80.

23%

10-0

.88%

13

Kag

iso

Man

aged

Equ

ity

Fund

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-7.7

5%19

-4.2

0%14

-2.0

6%13

-0.3

7%7

*4.

40%

8-8

.92%

170.

36%

101.

69%

46.

32%

1

Mer

genc

e S

WIX

Fun

dFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-0

.81%

70.

58%

6-0

.52%

9*

4.75

%6

-2.2

0%9

1.94

%3

-6.4

4%18

0.81

%9

Mer

genc

e C

AP

I Fun

dFT

SE

/JS

E C

appe

d A

ll S

hare

Inde

x-0

.34%

50.

47%

8-0

.65%

100.

04%

5*

3.52

%9

-1.7

4%8

0.65

%9

-5.3

7%17

-0.1

8%11

Mom

entu

m M

oM C

lass

ic

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-3

.08%

9-0

.54%

9-0

.13%

80.

26%

4-0

.48%

44.

66%

7-3

.08%

100.

87%

7-0

.06%

12-1

.89%

15

OM

IG D

oubl

e A

lpha

To

p 40

FTS

E/J

SE

Top

40

Inde

x0.

64%

11.

60%

32.

021

**

1.12

%12

3.19

%2

1.92

%4

3.39

%2

*

Pre

scie

nt E

quity

Act

ive

Qua

ntFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x0.

23%

2-1

.97%

12-1

.19%

11-0

.74%

9-2

.70%

16-3

.59%

12-0

.46%

120.

30%

91.

44%

8

Pru

dent

ial C

ore

Equ

ity

ALS

IFT

SE

/JS

E A

ll S

hare

Inde

x-0

.20%

31.

95%

21.

58%

41.

82%

30.

96%

25.

94%

40.

33%

51.

86%

50.

15%

11-2

.08%

16

Pru

dent

ial C

ore

Equ

ity

SW

IXFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-0

.32%

42.

60%

11.

96%

22.

16%

2*

7.36

%2

0.92

%4

2.38

%1

-0.4

4%14

-2.4

2%17

SIM

Mod

erat

e E

quity

2%

4 M

ajor

ban

k C

all R

ate;

98%

FT

SE

/JS

E S

WIX

-0.7

3%6

1.51

%4

1.21

%5

**

6.44

%3

-1.1

1%7

0.33

%11

1.31

%5

3.57

%3

STA

NLI

B C

ore

Equ

ity

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-5.3

5%14

-0.6

0%10

0.50

%6

-1.5

4%10

-0.6

3%5

-2.0

6%15

6.60

%1

2.18

%2

1.85

%3

-1.3

7%14

STA

NLI

B R

esea

rch

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-2.6

5%8

0.48

%7

0.26

%7

-0.1

1%6

0.03

%3

3.40

%10

0.94

%3

-0.5

1%13

0.48

%8

-0.5

0%12

Syg

nia

Cor

e E

quity

Fun

dFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-3

.57%

11-0

.76%

11*

**

4.81

%5

-3.3

8%11

-0.8

7%15

**

Taqu

anta

Act

ive

All

Sha

reFT

SE

/JS

E A

ll S

hare

Inde

x-6

.30%

16-6

.47%

18-4

.10%

15*

*-8

.09%

19-4

.92%

13-1

.95%

180.

74%

63.

22%

5

Taqu

anta

Act

ive

SW

IXFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-6

.70%

17-6

.94%

19-4

.56%

17*

*-7

.47%

18-6

.63%

15-2

.06%

19-0

.12%

135.

69%

2

Mar

ket I

ndic

es &

Sta

tistic

sFT

SE

/JS

E A

ll S

hare

Inde

x10

.88%

19.4

8%15

.79%

11.2

7%18

.00%

21.4

3%26

.68%

2.57

%18

.98%

32.1

3%FT

SE

/JS

E C

appe

d A

ll S

hare

Inde

x11

.08%

19.5

9%16

.09%

11.8

1%18

.35%

21.5

5%26

.69%

3.09

%19

.56%

32.2

9%FT

SE

/JS

E S

WIX

All

Sha

re In

dex

15.4

2%21

.61%

17.7

8%12

.68%

18.5

7%20

.71%

29.0

9%4.

25%

20.8

6%29

.91%

FTS

E/J

SE

Mid

Cap

Inde

x19

.62%

18.9

5%16

.33%

11.6

2%16

.48%

12.3

3%25

.24%

0.65

%25

.77%

30.2

7%FT

SE

/JS

E S

mal

l Cap

Inde

x20

.57%

23.6

6%17

.44%

8.77

%16

.56%

26.1

2%24

.35%

-2.2

8%20

.93%

22.7

9%FT

SE

/JS

E T

op 4

0 In

dex

9.17

%19

.13%

15.2

1%10

.75%

17.6

4%22

.77%

26.1

2%2.

44%

17.2

2%31

.73%

FTS

E/J

SE

Val

ue In

dex

4.59

%14

.31%

14.0

2%10

.38%

17.1

7%17

.47%

21.5

7%5.

35%

22.4

5%38

.25%

FTS

E/J

SE

Gro

wth

Inde

x14

.90%

22.7

9%16

.38%

11.6

1%17

.91%

23.2

8%30

.68%

-0.2

2%15

.57%

26.0

8%

58




Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Due

to

diff

erin

g be

nchm

arks

. th

e po

rtfo

lios

belo

w a

re r

anke

d by

act

ive

retu

rns

only

(ie

act

ual p

erfo

rman

ce le

ss b

ench

mar

k re

turn

) an

d ar

e pu

rely

for

illu

stra

tive

pur

pose

s.

Cal

ende

r Yea

r Ret

urns

Ben

chm

ark

Act

ive

Ret

urn:

1

Year

Ran

k

Act

ive

Ret

urn:

3

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

5

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

7

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

10

Yea

rs

(p.a

.)

Ran

kA

ctiv

e R

etur

n

- 201

3R

ank

Act

ive

Ret

urn

- 2

012

Ran

kA

ctiv

e R

etur

n

- 201

1R

ank

Act

ive

Ret

urn

- 201

0R

ank

Act

ive

Ret

urn

- 2

009

Ran

k

Not

Ben

chm

ark

Cog

nisa

nt

AB

SA

Ass

et M

anag

emen

t Va

lue

FTS

E/J

SE

All

Sha

re In

dex

1.52

%6

-1.1

9%13

1.13

%7

5.04

%2

3.33

%2

-2.7

0% 1

8 -2

.66%

11

3.65

% 5

5.

34%

4

4.50

% 5

Alla

n G

ray

FTS

E/J

SE

All

Sha

re In

dex

4.72

%2

-0.3

3%10

1.30

%5

2.38

%5

3.11

%3

1.46

% 1

3 -7

.60%

18

6.09

% 2

0.

72%

12

-6.3

6% 2

6

Arg

on S

peci

alis

t Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x0.

80%

80.

82%

7-0

.68%

120.

13%

9*

4.55

% 7

-3

.04%

12

-3.1

3% 2

5 -2

.23%

18

-2.5

3% 2

2

Can

non

All

Equ

ities

ALS

I P

ortfo

lioFT

SE

/JS

E A

ll S

hare

Inde

x-1

2.79

%24

-10.

77%

24-7

.90%

23-6

.80%

20*

-5.4

1% 2

5 -1

3.77

% 2

4 -4

.33%

26

-0.3

0% 1

7 3.

29%

7

Can

non

All

Equ

ities

SW

IX

Por

tfolio

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-14.

88%

27-1

1.25

%25

-7.8

8%22

**

-4.6

7% 2

3 -1

3.90

% 2

5 -5

.40%

27

-0.2

2% 1

6 4.

93%

4

Cor

onat

ion

Agg

ress

ive

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-8

.34%

23-0

.79%

111.

05%

82.

88%

3*

10.2

0% 2

-3

.27%

13

0.76

% 1

1 7.

06%

1

6.82

% 1

Cor

onat

ion

Hou

sevi

ew

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-5

.31%

201.

41%

41.

60%

42.

78%

41.

97%

411

.81%

1

-1.4

9% 9

-0

.78%

19

4.95

% 5

5.

19%

3

ELE

CTU

S G

row

th

Por

tfolio

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-1.3

1%14

-3.2

5%19

**

4.10

% 9

-1

2.68

% 2

2 -3

.10%

24

*

*

ELE

CTU

S M

ulti-

Cap

P

ortfo

lio

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-2.8

3%15

-3.9

1%20

-3.4

4%7

**

3.90

% 1

0 -1

2.88

% 2

3 -3

.04%

23

-2.4

5% 1

9 6.

01%

2

Ele

men

t Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-1

3.24

%26

-16.

52%

28-1

1.07

%25

-6.3

6%19

-5.1

7%13

-18.

53%

27

-17.

93%

26

-0.3

2% 1

4 -6

.12%

22

-3.2

4% 2

3

Foor

d A

sset

Man

agem

ent

FTS

E/J

SE

All

Sha

re In

dex

5.16

%1

5.98

%1

6.05

%1

5.50

%1

3.60

%1

7.05

% 3

5.

79%

2

5.48

% 3

6.

85%

2

-0.9

4% 2

0

Inve

stec

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x2.

31%

30.

12%

8-0

.68%

13-1

.61%

13-1

.63%

71.

74%

12

-3.9

4% 1

4 2.

21%

7

-6.2

6% 2

3 -3

.43%

24

Inve

stec

Val

ueFT

SE

/JS

E A

ll S

hare

Inde

x2.

21%

4-1

4.35

%26

-7.7

3%21

-3.4

6%15

-4.1

0%11

-21.

71%

28

-23.

66%

28

-1.1

4% 2

1 6.

06%

3

-0.0

7% 1

6

Mom

entu

m A

M C

ore

Equ

ity F

und

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

-3.1

6%16

-1.4

3%15

-0.2

0%10

0.15

%8

-2.2

8%9

0.59

% 1

4 -1

.61%

10

1.97

% 8

0.

95%

11

-0.5

2% 1

9

Oas

is S

peci

alis

t Dom

estic

Sou

th A

frica

OE

(A

SIS

A) D

omes

tic

Equ

ity G

ener

al0.

92%

71.

54%

32.

69%

21.

89%

60.

92%

5-2

.80%

20

6.76

% 1

4.

23%

4

4.42

% 6

-7

.25%

27

Old

Mut

ual E

quiti

esFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x0.

16%

101.

04%

6-0

.34%

11-0

.20%

10*

6.88

% 4

-3

.98%

15

-0.4

1% 1

5 -4

.27%

20

-1.5

3% 2

1

OM

IG A

ctiv

e Q

uant

E

quity

Fun

dFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x0.

26%

92.

88%

21.

87%

3*

*4.

20%

8

4.44

% 3

-0

.70%

18

*

*

OM

IG M

anag

ed V

olat

ility

C

apab

ility

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

0.07

%11

-0.8

7%12

**

*-4

.47%

22

2.04

% 6

*

*

*

OM

IG P

rem

ium

Equ

ityFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-0

.64%

13-0

.30%

91.

19%

6*

*-2

.74%

19

2.76

% 5

7.

92%

1

*

*

Cita

del A

sset

M

anag

emen

t Dom

estic

E

quity

Com

posi

te

FTS

E/J

SE

All

Sha

re In

dex

-5.9

8%22

-2.7

7%18

-1.6

4%15

**

-3.4

6% 2

1 1.

78%

7

-0.5

1% 1

7 0.

50%

13

0.13

% 1

0

59

SECTION 3

S.A. Equity Manager Watch™ Survey (continued)


Cal

ende

r Yea

r Ret

urns

Ben

chm

ark

Act

ive

Ret

urn:

1

Year

Ran

k

Act

ive

Ret

urn:

3

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

5

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

7

Year

s (p

.a.)

Ran

k

Act

ive

Ret

urn:

10

Yea

rs

(p.a

.)

Ran

kA

ctiv

e R

etur

n

- 201

3R

ank

Act

ive

Ret

urn

- 2

012

Ran

kA

ctiv

e R

etur

n

- 201

1R

ank

Act

ive

Ret

urn

- 201

0R

ank

Act

ive

Ret

urn

- 2

009

Ran

k

Not

Ben

chm

ark

Cog

nisa

ntP

rude

ntia

l Dee

p Va

lue

Equ

ityFu

nd w

eigh

ted

CA

PI S

WIX

inde

x-0

.46%

121.

34%

50.

88%

91.

48%

70.

68%

65.

97%

5

-1.4

4% 8

0.

59%

12

-0.1

4% 1

5 -0

.38%

17

Reg

ardi

ng C

apita

l M

anag

emen

tFT

SE

/JS

E A

ll S

hare

Inde

x-1

4.91

%28

-14.

58%

27-8

.14%

24-3

.71%

16-4

.34%

12-9

.71%

26

-19.

00%

27

0.57

% 1

3 2.

46%

9

-3.7

3% 2

5

SIM

Agg

ress

ive

Equ

ity2%

4 M

ajor

ban

k C

all R

ate;

98%

FT

SE

/JS

E S

WIX

-4.2

7%18

-2.5

5%16

-1.2

4%14

-0.3

5%11

*5.

22%

6

-8.5

3% 2

0 -0

.81%

20

2.27

% 1

0 4.

04%

6

SIM

Unc

onst

rain

ed E

quity

2% 4

Maj

or b

ank

Cal

l Rat

e; 9

8%

FTS

E/J

SE

SW

IX-4

.52%

19-4

.63%

21-2

.86%

17-0

.95%

12*

-2.3

6% 1

7 -7

.13%

17

-2.7

5% 2

2 2.

47%

8

2.53

% 8

STA

NLI

B U

ncon

stra

ined

E

quity

FTS

E/J

SE

All

Sha

re In

dex

-5.6

6%21

-2.6

3%17

-2.1

2%16

-4.8

0%18

*-5

.17%

24

3.75

% 4

1.

18%

9

-4.3

2% 2

1 0.

51%

9

STA

NLI

B V

alue

Fun

dFT

SE

/JS

E A

ll S

hare

Inde

x-1

3.01

%25

-7.2

5%23

-3.5

1%20

-3.7

3%17

-2.7

9%10

-2.2

3% 1

6 -5

.51%

16

0.84

% 1

0 3.

11%

7

0.03

% 1

1

Syg

nia

Abs

olut

e Fo

cus

Equ

ity F

und

FTS

E/J

SE

SW

IX

All

Sha

re In

dex

1.92

%5

-1.2

1%14

**

*1.

78%

11

-7.6

6% 1

9 2.

45%

6

*

*

SY

mm

ETR

Y E

quity

P

ortfo

lioFT

SE

/JS

E S

WIX

A

ll S

hare

Inde

x-3

.67%

17-5

.48%

22-3

.27%

18-1

.92%

14-1

.88%

8-1

.20%

15

-11.

80%

21

-0.4

6% 1

6 0.

21%

14

-0.4

1% 1

8

Mar

ket I

ndic

es &

Sta

tistic

s

FTS

E/J

SE

All

Sha

re In

dex

10.8

8%19

.48%

15.7

9%11

.27%

18.0

0%21

.43%

26.6

8%2.

57%

18.9

8%32

.13%

FTS

E/J

SE

Cap

ped

All

Sha

re In

dex

11.0

8%19

.59%

16.0

9%11

.81%

18.3

5%21

.55%

26.6

9%3.

09%

19.5

6%32

.29%

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x15

.42%

21.6

1%17

.78%

12.6

8%18

.57%

20.7

1%29

.09%

4.25

%20

.86%

29.9

1%

FTS

E/J

SE

Mid

Cap

Inde

x19

.62%

18.9

5%16

.33%

11.6

2%16

.48%

12.3

3%25

.24%

0.65

%25

.77%

30.2

7%

FTS

E/J

SE

Sm

all C

ap In

dex

20.5

7%23

.66%

17.4

4%8.

77%

16.5

6%26

.12%

24.3

5%-2

.28%

20.9

3%22

.79%

FTS

E/J

SE

Top

40

Inde

x9.

17%

19.1

3%15

.21%

10.7

5%17

.64%

22.7

7%26

.12%

2.44

%17

.22%

31.7

3%

FTS

E/J

SE

Val

ue In

dex

4.59

%14

.31%

14.0

2%10

.38%

17.1

7%17

.47%

21.5

7%5.

35%

22.4

5%38

.25%

FTS

E/J

SE

Gro

wth

Inde

x14

.90%

22.7

9%16

.38%

11.6

1%17

.91%

23.2

8%30

.68%

-0.2

2%15

.57%

26.0

8%

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

60




Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 –

Vola

tilit

y v

s R

etu

rn

Ben

chm

ark

Cal

cula

ted

on 3

yea

r per

form

ance

retu

rns

Cal

cula

ted

on 5

yea

r per

form

ance

retu

rns

3 ye

ar

retu

rn

Rank

Vola

tility

(R

isk)

Rank

Activ

e Re

turn

Rank

Trac

king

Er

ror

Info

rmat

ion

Ratio

Rank

5 Ye

ar

Retu

rnRa

nkVo

latil

ity(R

isk)

Rank

Act

ive

Ret

urn

Rank

Trac

king

Er

ror

Info

rmat

ion

Ratio

Rank

Enha

nced

Inde

xK

agis

o C

ore

SW

IX

Fund

FT

SE

/JS

E S

WIX

All

Sha

re In

dex

19.9

8%2

10.1

0%3

-1.6

3%3

3.99

%-0

.41

216

.86%

211

.46%

2-0

.93%

33.

27%

-0.2

83

Pre

scie

nt E

quity

Q

uant

Fun

d FT

SE

/JS

E T

op 4

0 In

dex

17.5

1%3

9.99

%2

-1.6

1%2

3.93

%-0

.41

314

.35%

312

.74%

3-0

.86%

23.

56%

-0.2

42

STA

NLI

B E

nhan

ced

Inde

x Fu

ndFT

SE

/JS

E S

WIX

All

Sha

re In

dex

21.5

5%1

8.75

%1

-0.0

6%1

1.73

%-0

.03

117

.55%

111

.34%

1-0

.23%

11.

60%

-0.1

51

Low

er v

olat

ility

=

high

er r

anki

ngLo

wer

vol

atili

ty

= hi

gher

ran

king

Ben

chm

ark

Cog

nisa

ntA

fena

Cap

ital E

quity

S

WIX

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x15

.74%

169.

24%

6-5

.87%

163.

84%

-1.5

316

13.3

4%15

10.8

5%4

-4.4

4%16

3.32

%-1

.34

15

Afe

na C

apita

l Equ

ity

CA

PI

FTS

E/J

SE

Cap

ped

All

Sha

re In

dex

13.2

9%18

10.5

3%15

-6.3

0%17

3.41

%-1

.85

1711

.44%

1811

.82%

13-4

.64%

183.

01%

-1.5

417

Cor

onat

ion

Cor

e E

quity

FT

SE

/JS

E S

WIX

All

Sha

re In

dex

22.9

3%2

10.4

8%14

1.32

%5

3.53

%0.

375

19.5

9%2

12.0

5%14

1.81

%3

2.91

%0.

624

Inve

stm

ent S

olut

ions

En

trepr

eneu

r Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

17.2

7%15

8.70

%2

-4.3

4%15

3.76

%-1

.15

1515

.23%

149.

96%

1-2

.55%

143.

46%

-0.7

414

Inve

stm

ent S

olut

ions

P

ure

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

18.7

5%13

8.98

%5

-2.8

6%13

2.76

%-1

.04

1416

.30%

1110

.41%

3-1

.48%

122.

50%

-0.5

912

Kag

iso

Man

aged

E

quity

Fun

dFT

SE

/JS

E S

WIX

All

Sha

re In

dex

17.4

1%14

10.1

0%12

-4.2

0%14

5.49

%-0

.76

1215

.73%

1210

.91%

6-2

.06%

134.

65%

-0.4

411

Mer

genc

e S

WIX

Fun

dFT

SE

/JS

E S

WIX

All

Sha

re In

dex

22.1

9%4

9.46

%8

0.58

%6

1.99

%0.

298

17.2

6%8

11.5

1%9

-0.5

2%9

1.97

%-0

.26

9

Mer

genc

e C

AP

I Fun

dFT

SE

/JS

E C

appe

d A

ll S

hare

Inde

x20

.06%

1110

.11%

130.

47%

81.

53%

0.30

715

.44%

1312

.15%

14-0

.65%

101.

54%

-0.4

210

Mom

entu

m M

oM

Cla

ssic

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

21.0

7%7

8.55

%1

-0.5

4%9

2.11

%-0

.26

1017

.65%

610

.20%

2-0

.13%

82.

03%

-0.0

68

OM

IG D

oubl

e A

lpha

To

p 40

FTS

E/J

SE

Top

40

Inde

x20

.73%

1011

.66%

181.

60%

30.

93%

1.71

117

.23%

9

13.7

2% 1

8 2.

02%

1

0.86

%2.

35 1

Pre

scie

nt E

quity

A

ctiv

e Q

uant

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x19

.64%

128.

79%

3-1

.97%

122.

32%

-0.8

513

16.5

9%10

10.9

0%5

-1.1

9%11

2.00

%-0

.60

13

Pru

dent

ial C

ore

Equ

ity

ALS

IFT

SE

/JS

E A

ll S

hare

In

dex

21.4

3%6

10.9

0%16

1.95

%2

2.12

%0.

923

17.3

8%7

12.8

1%16

1.58

%4

1.98

%0.

803

Pru

dent

ial C

ore

Equ

ity

SW

IXFT

SE

/JS

E S

WIX

All

Sha

re In

dex

24.2

1%1

9.46

%9

2.60

%1

2.50

%1.

042

19.7

4%1

11.7

4%11

1.96

%2

2.41

%0.

812

SIM

Mod

erat

e E

quity

2%

4 M

ajor

ban

k C

all

Rat

e; 9

8% F

TSE

/JS

E

SW

IX22

.78%

39.

68%

111.

51%

42.

28%

0.66

418

.74%

311

.62%

101.

21%

52.

10%

0.58

5

STA

NLI

B C

ore

Equ

ity

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x21

.01%

88.

84%

4-0

.60%

102.

50%

-0.2

49

18.2

8%4

11.3

6%8

0.50

%6

2.32

%0.

216

STA

NLI

B R

esea

rch

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x22

.09%

59.

31%

70.

48%

71.

49%

0.32

618

.04%

511

.27%

70.

26%

71.

35%

0.19

77

Syg

nia

Cor

e E

quity

Fu

ndFT

SE

/JS

E S

WIX

All

Sha

re In

dex

20.8

5%9

9.54

%10

-0.7

6%11

2.89

%-0

.26

11*

Taqu

anta

Act

ive

All

Sha

reFT

SE

/JS

E A

ll S

hare

In

dex

13.0

1%19

11.6

1%17

-6.4

7%18

3.35

%-1

.93

1811

.71%

1713

.18%

17-4

.10%

152.

76%

-1.4

816

Taqu

anta

Act

ive

SW

IXFT

SE

/JS

E S

WIX

All

Sha

re In

dex

14.6

7%17

9.93

%12

-6.9

4%19

3.10

%-2

.24

1913

.23%

1611

.82%

12-4

.56%

172.

63%

-1.7

318

Low

er v

olat

ility

=

high

er r

anki

ngLo

wer

vol

atili

ty

= hi

gher

ran

king

Mar

ket I

ndic

es &

Sta

tistic

sFT

SE

/JS

E A

ll S

hare

Inde

x19

.48%

9.97

%15

.79%

12.1

6%FT

SE

/JS

E C

appe

d A

ll S

hare

Inde

x19

.59%

9.82

%16

.09%

11.9

5%FT

SE

/JS

E S

WIX

All

Sha

re In

dex

21.6

1%8.

82%

17.7

8%11

.06%

FTS

E/J

SE

Mid

Cap

Inde

x18

.95%

8.15

%16

.33%

9.11

%FT

SE

/JS

E S

mal

l Cap

Inde

x23

.66%

6.46

%17

.44%

7.93

%FT

SE

/JS

E T

op 4

0 In

dex

19.1

3%11

.35%

15.2

1%13

.41%

FTS

E/J

SE

Val

ue In

dex

14.3

1%9.

30%

14.0

2%11

.40%

FTS

E/J

SE

Gro

wth

Inde

x22

.79%

11.2

7%16

.38%

13.4

8%

61

SECTION 3



Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 –

Vola

tilit

y v

s R

etu

rn

Ben

chm

ark

Cal

cula

ted

on 3

yea

r per

form

ance

retu

rns

Cal

cula

ted

on 5

yea

r per

form

ance

retu

rns

3 ye

ar

retu

rnRa

nkVo

latil

ity

(Ris

k)Ra

nkAc

tive

Retu

rnRa

nkTr

acki

ng

Erro

rIn

form

atio

n Ra

tioRa

nk5

Year

Re

turn

Ra

nkVo

latil

ity(R

isk)

Rank

Act

ive

Ret

urn

Rank

Trac

king

Er

ror

Info

rmat

ion

Ratio

Rank

Not

Ben

chm

ark

Cog

nisa

ntA

BS

A A

sset

M

anag

emen

t Val

ueFT

SE

/JS

E A

ll S

hare

In

dex

18.2

9%16

9.09

%7

-1.1

9%13

2.42

%-0

.49

1416

.94%

1210

.46%

91.

13%

73.

17%

0.36

7

Alla

n G

ray

FTS

E/J

SE

All

Sha

re

Inde

x19

.15%

138.

79%

5-0

.33%

103.

86%

-0.0

89

17.1

0%10

9.00

%2

1.30

%5

5.08

%0.

269

Arg

on S

peci

alis

t E

quity

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x22

.43%

69.

53%

160.

82%

72.

30%

0.36

617

.10%

1110

.32%

8-0

.68%

123.

11%

-0.2

213

Can

non

All

Equ

ities

A

LSI P

ortfo

lioFT

SE

/JS

E A

ll S

hare

In

dex

8.72

%25

9.95

%21

-10.

77%

246.

37%

-1.6

926

8.43

%22

11.1

4%14

-7.9

0%23

6.00

%-1

.32

23

Can

non

All

Equ

ities

S

WIX

Por

tfolio

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x10

.36%

249.

21%

12-1

1.25

%25

6.69

%-1

.68

259.

90%

2110

.60%

10-7

.88%

225.

96%

-1.3

224

Cor

onat

ion

Agg

ress

ive

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

20.8

2%9

10.4

8%26

-0.7

9%11

4.57

%-0

.17

1018

.84%

512

.10%

241.

05%

83.

77%

0.28

8

Cor

onat

ion

Hou

sevi

ew

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

23.0

2%3

9.97

%22

1.41

%4

4.23

%0.

337

19.3

8%3

11.5

1%21

1.60

%4

3.42

%0.

474

ELE

CTU

S G

row

th

Por

tfolio

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x18

.36%

159.

79%

19-3

.25%

195.

14%

-0.6

316

**

ELE

CTU

S M

ulti-

Cap

P

ortfo

lio

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x17

.70%

179.

90%

20-3

.91%

205.

08%

-0.7

719

14.3

5%17

11.2

0%15

-3.4

4%19

4.27

%-0

.80

19

Ele

men

t Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

4.73

%28

10.5

6%27

-16.

52%

288.

36%

-1.9

827

6.51

%25

9.81

%3

-11.

07%

257.

68%

-1.4

425

Foor

d A

sset

M

anag

emen

tFT

SE

/JS

E A

ll S

hare

In

dex

25.4

7%1

9.50

%15

5.98

%1

3.69

%1.

622

21.8

6%1

10.9

1%12

6.05

%1

3.61

%1.

671

Inve

stec

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

21.7

3%7

10.1

1%25

0.12

%8

4.02

%0.

038

17.1

0%9

11.3

9%19

-0.6

8%13

3.86

%-0

.18

12

Inve

stec

Val

ueFT

SE

/JS

E A

ll S

hare

In

dex

5.13

%26

14.4

1%28

-14.

35%

2611

.09%

-1.2

923

8.07

%23

13.0

2%25

-7.7

3%21

9.55

%-0

.81

20

Mom

entu

m A

M C

ore

Equ

ity F

und

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x20

.51%

119.

15%

10-1

.43%

151.

84%

-0.7

820

17.3

5%8

11.3

2%17

-0.2

0%10

1.74

%-0

.12

10

Oas

is S

peci

alis

t D

omes

ticS

outh

Afri

ca O

E (A

SIS

A)

Dom

estic

Equ

ity G

ener

al17

.57%

189.

14%

81.

54%

32.

91%

0.53

416

.07%

1410

.04%

42.

69%

23.

31%

0.81

3

Old

Mut

ual E

quiti

esFT

SE

/JS

E S

WIX

All

Sha

re In

dex

22.6

5%5

9.15

%11

1.04

%6

2.14

%0.

485

17.4

4% 7

11

.41%

20

-0.3

4% 1

1 2.

19%

-0.1

6 1

1

OM

IG A

ctiv

e Q

uant

E

quity

Fun

dFT

SE

/JS

E S

WIX

All

Sha

re In

dex

24.5

0%2

8.52

%3

2.88

%2

1.46

%1.

981

19.6

6% 2

10

.88%

11

1.87

% 3

1.

71%

1.09

2

OM

IG M

anag

ed

Vola

tility

Cap

abili

tyFT

SE

/JS

E S

WIX

All

Sha

re In

dex

20.7

4%10

6.96

%1

-0.8

7%12

4.20

%-0

.21

12*

**

**

OM

IG P

rem

ium

Equ

ityFT

SE

/JS

E S

WIX

All

Sha

re In

dex

21.3

1%8

8.66

%4

-0.3

0%9

1.71

%-0

.17

1118

.97%

4

10.2

4% 6

1.

19%

6

3.21

%0.

37 6

Cita

del A

sset

M

anag

emen

t D

omes

tic E

quity

C

ompo

site

FTS

E/J

SE

All

Sha

re

Inde

x16

.74%

209.

04%

6-2

.77%

184.

32%

-0.6

417

14.1

8% 1

8 11

.32%

18

-1.6

4% 1

5 3.

81%

-0.4

3 1

5

62


S.A. Equity Manager Watch™ Survey (continued)


Ben

chm

ark

Cal

cula

ted

on 3

yea

r per

form

ance

retu

rns

Cal

cula

ted

on 5

yea

r per

form

ance

retu

rns

3 ye

ar

retu

rnRa

nkVo

latil

ity

(Ris

k)Ra

nkAc

tive

Retu

rnRa

nkTr

acki

ng

Erro

rIn

form

atio

n Ra

tioRa

nk5

Year

Re

turn

Ra

nkVo

latil

ity(R

isk)

Rank

Act

ive

Ret

urn

Rank

Trac

king

Er

ror

Info

rmat

ion

Ratio

Rank

Not

Ben

chm

ark

Cog

nisa

ntP

rude

ntia

l Dee

p Va

lue

Equ

ityFu

nd w

eigh

ted

CA

PI

SW

IX in

dex

22.7

5%4

9.35

%14

1.34

%5

2.42

%0.

563

18.4

6%6

11.5

9%22

0.88

%9

2.29

%0.

395

Reg

ardi

ng C

apita

l M

anag

emen

tFT

SE

/JS

E A

ll S

hare

In

dex

4.88

%27

9.14

%9

-14.

58%

277.

21%

-2.0

228

7.65

%24

8.88

%1

-8.1

4%24

7.74

%-1

.05

22

SIM

Agg

ress

ive

Equ

ity2%

4 M

ajor

ban

k C

all

Rat

e; 9

8% F

TSE

/JS

E

SW

IX18

.71%

1410

.06%

24-2

.55%

163.

84%

-0.6

718

16.2

9%13

11.6

7%23

-1.2

4%14

3.49

%-0

.35

14

SIM

Unc

onst

rain

ed

Equ

ity

2% 4

Maj

or b

ank

Cal

l R

ate;

98%

FTS

E/J

SE

S

WIX

16.6

3%21

9.63

%17

-4.6

3%21

4.17

%-1

.11

2214

.67%

1510

.98%

13-2

.86%

173.

86%

-0.7

418

STA

NLI

B

Unc

onst

rain

ed E

quity

FTS

E/J

SE

All

Sha

re

Inde

x16

.86%

199.

71%

18-2

.63%

175.

09%

-0.5

215

13.6

9%19

11.2

8%16

-2.1

2%16

4.68

%-0

.45

16

STA

NLI

B V

alue

Fun

dFT

SE

/JS

E A

ll S

hare

In

dex

12.2

3%23

10.0

2%23

-7.2

5%23

6.91

%-1

.05

2112

.30%

2010

.25%

7-3

.51%

206.

45%

-0.5

417

Syg

nia

Abs

olut

e Fo

cus

Equ

ity F

und

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x20

.40%

127.

59%

2-1

.21%

142.

62%

-0.4

613

**

SY

mm

ETR

Y E

quity

P

ortfo

lioFT

SE

/JS

E S

WIX

All

Sha

re In

dex

16.1

3%22

9.26

%13

-5.4

8%22

3.89

%-1

.41

2414

.51%

1610

.06%

5-3

.27%

183.

62%

-0.9

021

Low

er v

olat

ility

=

high

er r

anki

ngLo

wer

vol

atili

ty

= hi

gher

ran

king

Mar

ket I

ndic

es &

Sta

tistic

sFT

SE

/JS

E A

ll S

hare

Inde

x19

.48%

9.97

%15

.79%

12.1

6%

FTS

E/J

SE

Cap

ped

All

Sha

re In

dex

19.5

9%9.

82%

16.0

9%11

.95%

FTS

E/J

SE

SW

IX A

ll S

hare

Inde

x21

.61%

8.82

%17

.78%

11.0

6%

FTS

E/J

SE

Mid

Cap

Inde

x18

.95%

8.15

%16

.33%

9.11

%

FTS

E/J

SE

Sm

all C

ap In

dex

23.6

6%6.

46%

17.4

4%7.

93%

FTS

E/J

SE

Top

40

Inde

x19

.13%

11.3

5%15

.21%

13.4

1%

FTS

E/J

SE

Val

ue In

dex

14.3

1%9.

30%

14.0

2%11

.40%

FTS

E/J

SE

Gro

wth

Inde

x22

.79%

11.2

7%16

.38%

13.4

8%

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 –

Vola

tilit

y v

s R

etu

rn

63

SECTION 3

SA Equity Manager Watch™ Survey

Volatility vs Return Scatterplot on SA Equity Managers – Enhanced Index and Benchmark Cognisant 3 Years ended 31 December 2014

12.0%

7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

23.0%

24.0%

25.0%

Ret

urn

(p.a

.)


Prudential Core Equity SWIX

SIM Moderate EquitySTANLIB Research

STANLIB Enhanced Index Fund

STANLIB Core Equity

FTSE/JSE All Share IndexPrescient Equity Active Quant

Prescient Equity Quant FundInvestment Solutions Entrepreneur Equity

Investment Solutions Pure Equity

Sygnia Core Equity Fund

Afena Capital Equity SWIX


Taquanta Active SWIX

Taquanta Active All Share

Kagiso Core SWIX Fund

Momentum MoM Classic EquityFTSE/JSE Swix All Share Index

Mergence SWIX Fund

Coronation Core Equity

Prudential Core Equity ALSI

OMIGSA Double Alpha Top 40

Kagiso Managed Equity Fund

Mergence Capi Fund

Volatility vs Return Scatterplot on SA Equity Managers – Not Benchmark Cognisant 3 years ended 31 December 2014

3.0%

6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 15.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

27.0%

Ret

urn

(p.a

.)


Investec Value

14.0%

Element EquityRegarding Capital Management

Cannon All Equities ALSI Portfolio

Cannon All Equities SWIX Portfolio

STANLIB Value Fund

OMIG Active Quant Equity Fund

Old Mutual EquitiesFTSE/JSE SWIX All Share Index

FTSE/JSE All Share IndexAllan Gray

ABSA Asset Management ValueOasis Specialist Domestic

Citadel Asset Management Domestic Equity Composite

Coronation Houseview EquityArgon Specialist Equity

Investec EquityCoronation Aggressive Equity

Prudential Deep Value Equity

OMIG Premuim Equity

SYmmETRY Equity Portfolio

Sygnia Absolute Focus Equity Fund

OMIG Managed Volatility Capability

Foord Asset Management

SIM Aggressive EquityElectus Multi-Cap Portfolio

STANLIB Unconstrained EquitySIM Unconstrained Equity

Electus Growth Portfolio

Momentum AM Core Equity Fund

64





Benchmark1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)

Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio BenchmarkEnhanced Index

Kagiso Core SWIX Fund FTSE/JSE SWIX All Share Index

9.65% 15.42% 19.98% 21.61% 16.86% 17.78% 12.85% 12.68% 18.51% 18.58%

Prescient Equity Quant Fund FTSE/JSE Top 40 Index 9.57% 9.16% 17.51% 19.12% 14.35% 15.21% 10.38% 10.75% 17.36% 17.71%


FTSE/JSE SWIX All Share Index

15.47% 15.42% 21.55% 21.61% 17.55% 17.78% 12.54% 12.68% 18.79% 18.77%

Benchmark Cognisant

Afena Capital Equity SWIXFTSE/JSE SWIX All Share Index

8.27% 15.42% 15.74% 21.61% 13.34% 17.78% 10.43% 12.68% * *

Afena Capital Equity CAPIFTSE/JSE Capped All Share Index

5.12% 11.08% 13.29% 19.59% 11.44% 16.09% 9.04% 11.81% * *

Coronation Core Equity FTSE/JSE SWIX All Share Index

12.25% 15.42% 22.93% 21.61% 19.59% 17.78% 16.00% 12.68% 21.04% 18.56%

Investment Solutions Entrepreneur Equity


11.79% 15.42% 17.27% 21.61% 15.23% 17.78% 11.71% 12.68% * *



10.52% 15.42% 18.75% 21.61% 16.30% 17.78% 12.00% 12.68% 17.67% 18.65%

Kagiso Managed Equity FundFTSE/JSE SWIX All Share Index

7.67% 15.42% 17.41% 21.61% 15.73% 17.78% 12.32% 12.68% * *

Mergence SWIX FundFTSE/JSE SWIX All Share Index

14.61% 15.42% 22.19% 21.61% 17.26% 17.78% 12.99% 12.68% * *

Mergence CAPI FundFTSE/JSE Capped All Share Index

10.74% 11.08% 20.06% 19.59% 15.44% 16.09% 11.86% 11.81% * *

Momentum MoM Classic Equity


12.34% 15.42% 21.07% 21.61% 17.65% 17.78% 12.94% 12.68% 18.10% 18.58%

OMIG Double Alpha Top 40 FTSE/JSE Top 40 Index 9.82% 9.18% 20.73% 19.13% 17.23% 15.21% * * * *

Prescient Equity Active QuantFTSE/JSE SWIX All Share Index

15.64% 15.42% 19.64% 21.61% 16.59% 17.78% 11.95% 12.68% * *

Prudential Core Equity ALSI FTSE/JSE All Share Index 10.68% 10.88% 21.43% 19.48% 17.38% 15.80% 13.10% 11.28% 18.97% 18.01%

Prudential Core Equity SWIXFTSE/JSE SWIX All Share Index

15.10% 15.42% 24.21% 21.61% 19.74% 17.78% 14.84% 12.68% 19.77% 18.58%

SIM Moderate Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX

14.49% 15.22% 22.78% 21.27% 18.74% 17.53% * * * *

STANLIB Core Equity FTSE/JSE SWIX All Share Index

10.07% 15.42% 21.01% 21.61% 18.28% 17.78% 11.14% 12.68% 18.14% 18.77%

STANLIB ResearchFTSE/JSE SWIX All Share Index

12.77% 15.42% 22.09% 21.61% 18.04% 17.78% 12.58% 12.68% 18.79% 18.77%

Sygnia Core Equity FundFTSE/JSE SWIX All Share Index

11.85% 15.42% 20.85% 21.61% * * * * * *

Taquanta Active All Share FTSE/JSE All Share Index 4.58% 10.88% 13.01% 19.48% 11.71% 15.80% 9.30% 11.28% * *

Taquanta Active SWIXFTSE/JSE SWIX All Share Index

8.72% 15.42% 14.67% 21.61% 13.23% 17.78% * * * *

Market Indices & StatisticsFTSE/JSE All Share Index 10.88% 19.48% 15.79% 11.27% 18.00%

FTSE/JSE Capped All Share Index 11.08% 19.59% 16.09% 11.81% 18.35%

FTSE/JSE SWIX All Share Index 15.42% 21.61% 17.78% 12.68% 18.57%

FTSE/JSE Mid Cap Index 19.62% 18.95% 16.33% 11.62% 16.48%

FTSE/JSE Small Cap Index 20.57% 23.66% 17.44% 8.77% 16.56%

FTSE/JSE Top 40 Index 9.17% 19.13% 15.21% 10.75% 17.64%

FTSE/JSE Value Index 4.59% 14.31% 14.02% 10.38% 17.17%

FTSE/JSE Growth Index 14.90% 22.79% 16.38% 11.61% 17.91%

65

SECTION 3





Benchmark2013 2012 2011 2010 2009

Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio BenchmarkEnhanced Index

Kagiso Core SWIX Fund FTSE/JSE SWIX All Share Index

25.92% 20.71% 25.09% 29.09% 4.30% 4.29% 20.98% 20.86% 33.51% 29.91%

Prescient Equity Quant Fund FTSE/JSE Top 40 Index 17.15% 22.77% 26.41% 26.12% 2.62% 2.43% 17.43% 17.22% 31.21% 31.73%



18.88% 20.71% 30.84% 29.09% 3.35% 4.29% 20.93% 20.86% 29.83% 29.91%

Benchmark Cognisant

Afena Capital Equity SWIXFTSE/JSE SWIX All Share Index

20.27% 20.71% 19.06% 29.09% 2.71% 4.29% 17.44% 20.86% 31.92% 29.91%

Afena Capital Equity CAPIFTSE/JSE Capped All Share Index

18.63% 21.55% 16.61% 26.69% 1.58% 3.08% 16.38% 19.56% 32.86% 32.29%

Coronation Core Equity FTSE/JSE SWIX All Share Index

29.01% 20.71% 28.28% 29.09% 5.57% 4.29% 24.74% 20.86% 33.31% 29.91%

Investment Solutions Entrepreneur Equity


19.91% 20.71% 20.31% 29.09% 3.71% 4.29% 21.48% 20.86% 31.43% 29.91%



22.98% 20.71% 23.22% 29.09% 4.94% 4.29% 21.09% 20.86% 29.03% 29.91%

Kagiso Managed Equity FundFTSE/JSE SWIX All Share Index

25.11% 20.71% 20.16% 29.09% 4.65% 4.29% 22.55% 20.86% 36.24% 29.91%

Mergence SWIX FundFTSE/JSE SWIX All Share Index

25.46% 20.71% 26.88% 29.09% 6.23% 4.29% 14.42% 20.86% 30.73% 29.91%

Mergence CAPI FundFTSE/JSE Capped All Share Index

25.07% 21.55% 24.95% 26.69% 3.74% 3.09% 14.19% 19.56% 32.10% 32.29%

Momentum MoM Classic Equity


25.37% 20.71% 26.01% 29.09% 5.16% 4.29% 20.80% 20.86% 28.02% 29.91%

OMIG Double Alpha Top 40 FTSE/JSE Top 40 Index 23.90% 22.77% 29.32% 26.12% 4.35% 2.44% 20.60% 17.22% * *

Prescient Equity Active QuantFTSE/JSE SWIX All Share Index

18.01% 20.71% 25.50% 29.09% 3.83% 4.29% 21.16% 20.86% 31.35% 29.91%

Prudential Core Equity ALSI FTSE/JSE All Share Index 27.37% 21.43% 27.01% 26.68% 4.49% 2.62% 19.13% 18.98% 30.06% 32.13%

Prudential Core Equity SWIXFTSE/JSE SWIX All Share Index

28.07% 20.71% 30.01% 29.09% 6.67% 4.29% 20.42% 20.86% 27.49% 29.91%

SIM Moderate Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX

26.83% 20.39% 27.46% 28.57% 4.62% 4.30% 21.88% 20.58% 33.07% 29.49%

STANLIB Core Equity FTSE/JSE SWIX All Share Index

18.65% 20.71% 35.69% 29.09% 6.47% 4.29% 22.71% 20.86% 28.55% 29.91%

STANLIB ResearchFTSE/JSE SWIX All Share Index

24.11% 20.71% 30.02% 29.09% 3.78% 4.29% 21.34% 20.86% 29.42% 29.91%

Sygnia Core Equity FundFTSE/JSE SWIX All Share Index

25.52% 20.71% 25.71% 29.09% 3.42% 4.29% * * * *

Taquanta Active All Share FTSE/JSE All Share Index 13.35% 21.43% 21.76% 26.68% 0.67% 2.62% 19.72% 18.98% 35.35% 32.13%

Taquanta Active SWIXFTSE/JSE SWIX All Share Index

13.24% 20.71% 22.46% 29.09% 2.23% 4.29% 20.74% 20.86% 35.61% 29.91%





FTSE/JSE Small Cap Index 26.12% 24.35% -2.28% 20.93% 22.79%



FTSE/JSE Growth Index 23.28% 30.68% -0.22% 15.57% 26.08%

66





Benchmark 1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) 10 Years (p.a.)

Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio BenchmarkNot Benchmark CognisantABSA Asset Management Value FTSE/JSE All Share Index 12.39% 10.88% 18.29% 19.48% 16.94% 15.80% 16.31% 11.28% 21.33% 18.00%

Allan Gray FTSE/JSE All Share Index 15.59% 10.88% 19.15% 19.48% 17.10% 15.79% 13.64% 11.27% 21.11% 18.00%

Argon Specialist Equity FTSE/JSE SWIX All Share Index 16.22% 15.42% 22.43% 21.61% 17.10% 17.78% 11.94% 11.81% * *

Cannon All Equities ALSI Portfolio FTSE/JSE All Share Index -1.91% 10.88% 8.72% 19.48% 8.43% 16.33% 5.87% 12.68% * *


FTSE/JSE SWIX All Share Index 0.54% 15.42% 10.36% 21.61% 9.90% 17.78% 7.24% 12.68% * *

Coronation Aggressive Equity FTSE/JSE SWIX All Share Index 7.08% 15.42% 20.82% 21.61% 18.84% 17.78% 15.56% 12.68% 20.45% 18.58%

Coronation Houseview Equity FTSE/JSE SWIX All Share Index 10.11% 15.42% 23.02% 21.61% 19.38% 17.78% 15.46% 12.68% 20.80% 18.82%

ELECTUS Growth Portfolio FTSE/JSE SWIX All Share Index 14.11% 15.43% 18.36% 21.61% * * * * * *

ELECTUS Multi-Cap Portfolio FTSE/JSE SWIX All Share Index 12.60% 15.43% 17.70% 21.61% 14.35% 17.78% 10.78% 12.68% * *

Element Equity FTSE/JSE SWIX All Share Index 1.15% 14.39% 4.73% 21.25% 6.51% 17.57% 6.18% 12.54% 13.77% 18.94%

Foord Asset Management FTSE/JSE All Share Index 16.05% 10.89% 25.47% 19.48% 21.86% 15.81% 16.78% 11.28% 21.61% 18.01%

Investec Equity FTSE/JSE SWIX All Share Index 17.73% 15.42% 21.73% 21.61% 17.10% 17.78% 11.08% 12.68% 16.95% 18.58%

Investec Value FTSE/JSE All Share Index 13.09% 10.88% 5.13% 19.48% 8.07% 15.80% 7.81% 11.28% 13.91% 18.01%


FTSE/JSE SWIX All Share Index 12.26% 15.42% 20.51% 21.94% 17.35% 17.55% 12.97% 12.82% 16.82% 19.10%

Oasis Specialist Domestic South Africa OE (ASISA) Domestic Equity General 10.53% 9.61% 17.57% 16.03% 16.07% 13.38% 11.49% 9.60% 17.68% 16.76%

Old Mutual Equities FTSE/JSE SWIX All Share Index 15.58% 15.42% 22.65% 21.61% 17.44% 17.78% 12.49% 12.68% * *


FTSE/JSE SWIX All Share Index 15.69% 15.43% 24.50% 21.61% 19.66% 17.78% * * * *


FTSE/JSE SWIX All Share Index 15.49% 15.43% 20.74% 21.61% * * * * * *

OMIG Premium Equity FTSE/JSE SWIX All Share Index 14.79% 15.43% 21.31% 21.61% 18.97% 17.78% * * * *

Citadel Asset Management Domestic Equity Composite FTSE/JSE All Share Index 4.98% 10.96% 16.74% 19.51% 14.18% 15.82% * * * *

Prudential Deep Value Equity Fund weighted CAPI SWIX index 14.53% 14.99% 22.75% 21.41% 18.46% 17.58% 14.10% 12.62% 19.24% 18.56%

Regarding Capital Management FTSE/JSE All Share Index -4.10% 10.82% 4.88% 19.46% 7.65% 15.79% 7.55% 11.27% 13.66% 18.00%

SIM Aggressive Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 10.95% 15.22% 18.71% 21.27% 16.29% 17.53% 12.23% 12.58% * *

SIM Unconstrained Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 10.70% 15.22% 16.63% 21.27% 14.67% 17.53% 11.63% 12.58% * *

STANLIB Unconstrained Equity FTSE/JSE All Share Index 5.22% 10.88% 16.86% 19.48% 13.69% 15.80% 6.48% 11.28% 15.34% 18.01%

STANLIB Value Fund FTSE/JSE All Share Index -2.13% 10.88% 12.23% 19.48% 12.30% 15.80% 7.54% 11.28% 15.22% 18.01%



SYmmETRY Equity Portfolio FTSE/JSE SWIX All Share Index 11.75% 15.42% 16.13% 21.61% 14.51% 17.78% 10.76% 12.68% 16.70% 18.58%





FTSE/JSE Small Cap Index 20.57% 23.66% 17.44% 8.77% 16.56%



FTSE/JSE Growth Index 14.90% 22.79% 16.38% 11.61% 17.91%

67

SECTION 3





Benchmark 2013 2012 2011 2010 2009

Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio BenchmarkNot Benchmark CognisantABSA Asset Management Value FTSE/JSE All Share Index 18.74% 21.43% 24.02% 26.68% 6.27% 2.62% 24.32% 18.98% 36.64% 32.13%

Allan Gray FTSE/JSE All Share Index 22.90% 21.43% 19.08% 26.68% 8.71% 2.62% 19.70% 18.98% 25.78% 32.13%

Argon Specialist Equity FTSE/JSE SWIX All Share Index 25.26% 20.71% 26.05% 29.09% 1.13% 4.26% 18.63% 20.86% 27.38% 29.91%

Cannon All Equities ALSI Portfolio FTSE/JSE All Share Index 16.02% 21.43% 12.91% 26.68% -1.71% 2.62% 18.69% 18.98% 35.42% 32.13%


FTSE/JSE SWIX All Share Index 16.04% 20.71% 15.19% 29.09% -1.11% 4.29% 20.64% 20.86% 34.85% 29.91%

Coronation Aggressive Equity FTSE/JSE SWIX All Share Index 30.91% 20.71% 25.82% 29.09% 5.05% 4.29% 27.92% 20.86% 36.73% 29.91%

Coronation Houseview Equity FTSE/JSE SWIX All Share Index 32.52% 20.71% 27.60% 29.09% 3.51% 4.29% 25.81% 20.86% 35.11% 29.91%

ELECTUS Growth Portfolio FTSE/JSE SWIX All Share Index 24.81% 20.71% 16.41% 29.09% 1.18% 4.29% * * * *

ELECTUS Multi-Cap Portfolio FTSE/JSE SWIX All Share Index 24.61% 20.71% 16.21% 29.09% 1.25% 4.29% 18.41% 20.86% 35.92% 29.91%

Element Equity FTSE/JSE SWIX All Share Index 2.18% 20.71% 11.15% 29.09% 3.97% 4.29% 14.74% 20.86% 26.67% 29.91%

Foord Asset Management FTSE/JSE All Share Index 28.48% 21.43% 32.47% 26.68% 8.10% 2.62% 25.84% 18.98% 31.19% 32.13%

Investec Equity FTSE/JSE SWIX All Share Index 22.45% 20.71% 25.14% 29.09% 6.50% 4.29% 14.60% 20.86% 26.49% 29.91%

Investec Value FTSE/JSE All Share Index -0.28% 21.43% 3.03% 26.68% 1.48% 2.62% 25.05% 18.98% 32.06% 32.13%


FTSE/JSE SWIX All Share Index 21.30% 20.71% 28.52% 30.13% 6.15% 4.17% 19.79% 18.84% 31.77% 32.29%

Oasis Specialist Domestic South Africa OE (ASISA) Domestic Equity General 16.55% 19.35% 26.15% 19.40% 7.18% 2.95% 20.92% 16.50% 24.89% 32.13%

Old Mutual Equities FTSE/JSE SWIX All Share Index 27.59% 20.71% 25.10% 29.09% 3.87% 4.29% 16.59% 20.86% 28.39% 29.91%


FTSE/JSE SWIX All Share Index 24.91% 20.71% 33.53% 29.09% 3.58% 4.29% 22.72% 20.86% * *



OMIG Premium Equity FTSE/JSE SWIX All Share Index 17.97% 20.71% 31.84% 29.09% 12.21% 4.29% 18.98% 20.86% * *

Citadel Asset Management Domestic Equity Composite FTSE/JSE All Share Index 17.97% 21.43% 28.46% 26.68% 2.11% 2.62% 19.49% 18.98% 32.26% 32.13%

Prudential Deep Value Equity Fund weighted CAPI SWIX index 26.76% 20.79% 27.41% 28.85% 4.74% 4.16% 20.42% 20.56% 29.95% 30.32%

Regarding Capital Management FTSE/JSE All Share Index 11.73% 21.43% 7.68% 26.68% 3.19% 2.62% 21.45% 18.98% 28.41% 32.13%

SIM Aggressive Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 25.61% 20.39% 20.04% 28.57% 3.48% 4.30% 22.85% 20.58% 33.53% 29.49%

SIM Unconstrained Equity 2% 4 Major bank Call Rate; 98% FTSE/JSE SWIX 18.03% 20.39% 21.44% 28.57% 1.55% 4.30% 23.05% 20.58% 32.02% 29.49%

STANLIB Unconstrained Equity FTSE/JSE All Share Index 16.27% 21.43% 30.43% 26.68% 3.80% 2.62% 14.66% 18.98% 32.65% 32.13%

STANLIB Value Fund FTSE/JSE All Share Index 19.20% 21.43% 21.17% 26.68% 3.47% 2.62% 22.10% 18.98% 32.16% 32.13%


FTSE/JSE SWIX All Share Index 22.49% 20.71% 21.42% 29.09% 6.74% 4.29% * * * *

SYmmETRY Equity Portfolio FTSE/JSE SWIX All Share Index 19.51% 20.71% 17.28% 29.09% 3.82% 4.29% 21.07% 20.85% 29.50% 29.91%





FTSE/JSE Small Cap Index 26.12% 24.35% -2.28% 20.93% 22.79%



FTSE/JSE Growth Index 23.28% 30.68% -0.22% 15.57% 26.08%

68


Composite Dispersion of SA Equity Manager Watch™ Survey

1 Year to 31 December 2014

Enhanced Index Minimum Return Maximum ReturnMedian Composite Return

Kagido Core Swix Fund



Kagiso Core SWIX Fund 9.18% 9.72% 9.51% 0.16% 0.21% 0.11%

Benchmark Cognisant Minimum Return

Maximum Return





Afena Capital Equity SWIX 8.02% 8.37% 8.24% 0.08% 0.12% 0.13%Afena Capital Equity CAPI 5.10% 5.46% 5.10% 0.13% 0.08% 0.07%Coronation Core Equity 12.14% 12.38% 12.27% 0.06% 0.10% 0.06%Kagiso Managed Equity Fund 7.64% 7.99% 7.82% 0.06% 0.05% *Mergence SWIX Fund 14.42% 16.53% 14.84% 0.69% 0.03% *Mergence CAPI Fund 10.72% 10.76% 10.74% 0.02% 0.01% *OMIG Double Alpha Top 40 9.70% 9.91% 9.81% 0.11% * *Prudential Core Equity SWIX 14.83% 15.34% 15.06% 0.11% 0.11% 0.25%SIM Moderate Equity 14.31% 14.55% 14.45% 0.08% * *Taquanta Active SWIX 8.81% 8.96% 8.89% 0.08% 0.26% *


Enhanced Index

Kagiso Core Swix Fund

0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16%

0.16%

0.18%

Benchmark Cognisant


Afena Capital Equity CAPI

Coronation Core Equity

Kagiso Managed Equity Fund

Mergence SWIX Fund

Mergence CAPI Fund

OMIG Double Alpha Top 40

Prudential Core Equity SWIX

SIM Moderate Equity

Taquanta Active SWIX

0.00% 0.10%

0.08%

0.13%

0.06%

0.06%

0.69%

0.11%

0.11%

0.8%

0.8%

0.30% 0.40% 0.50% 0.60% 0.70%0.20%

0.02%

69

SECTION 3

Composite Dispersion of SA Equity Manager Watch™ Survey

Not Benchmark Cognisant Minimum Return

Maximum Return





ABSA Asset Management Value 8.54% 16.13% 11.70% 1.70% 0.85% 0.43%Allan Gray 14.49% 16.82% 15.58% 0.45% 0.55% 0.39%Argon Specialist Equity 16.21% 16.24% 16.24% 0.01% 0.03% 0.03%Cannon All Equities SWIX Portfolio 0.84% 1.35% 1.10% 0.19% 0.26% 0.55%Coronation Aggressive Equity 6.97% 7.32% 7.18% 0.10% 0.05% 0.13%Coronation Houseview Equity 9.64% 10.53% 10.15% 0.10% 0.06% 0.12%ELECTUS Growth Portfolio 13.19% 14.73% 14.15% 0.56% 0.26% 0.27%ELECTUS Multi-Cap Portfolio 12.29% 12.67% 12.49% 0.13% 0.09% 0.04%Element Equity 0.96% 1.27% 1.12% 0.16% * *Foord Specialist Domestic Equity 15.26% 17.07% 16.38% 0.29% 0.67% 0.82%Investec Equity 17.55% 17.96% 17.80% 0.12% 0.21% 0.21%Investec Value 9.37% 16.32% 12.54% 1.66% 0.89% 0.57%Momentum AM Core Equity Fund 12.09% 13.70% 12.77% 0.56% 1.13% 1.00%Oasis Specialist Domestic 7.44% 12.24% 9.73% 0.81% 0.97% 5.31%Old Mutual Equities 15.50% 16.20% 15.63% 0.23% 0.17% 0.11%OMIG Managed Volatility Capability 15.47% 15.54% 15.51% 0.03% * *OMIG Premium Equity 14.60% 14.83% 14.72% 0.12% * *Prudential Deep Value Equity 10.46% 15.20% 14.82% 1.08% 0.95% 0.86%Regarding Capital Management -5.22% -3.61% -4.01% 0.63% 0.45% 0.33%SIM Aggressive Equity 10.29% 11.11% 10.70% 0.41% * *SIM Unconstrained Equity 10.56% 10.88% 10.72% 0.09% 0.36% 0.21%


Not Benchmark Cognisant

ABSA Asset Management Value

Allan Gray

Argon Specialist Equity


Coronation Aggressive Equity

Coronation Houseview Equity

ELECTUS Growth Portfolio

ELECTUS Multi-Cap Portfolio

Element Equity

Foord Specialist Domestic Equity

Investec Equity

Investec Value


Oasis Specialist Domestic

Old Mutual Equities


OMIG Premium Equity

Prudential Deep Value Equity

Regarding Capital Management

SIM Aggressive Equity

SIM Unconstrained Equity

0.00% 0.20%

0.10%

0.10%

0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80%0.40%

1.70%

0.45%

0.01%

0.19%

0.56%

0.13%

0.29%

0.12%

1.66%

0.56%

0.81%

0.23%

0.03%

0.12%

1.08%

0.63%

0.41%

0.9%

0.16%

70



Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of +/- 2 years around the ALBI.

Return - 1 Year Return - 3 Years (p.a.)

Return - 5 Years (p.a.)



High 12.81% 11.70% 12.93% 11.94% 10.75%

Upper Quartile 10.57% 9.70% 11.04% 10.40% 9.51%

Median 10.17% 9.43% 10.78% 10.19% 9.41%

Average 10.10% 9.51% 10.84% 10.28% 9.50%

Lower Quartile 9.67% 9.00% 10.57% 10.11% 9.38%

Low 7.08% 8.65% 9.81% 9.18% 9.05%

Range 5.73% 3.05% 3.12% 2.76% 1.69%

Number of participants 18 17 17 17 12



Range of Returns of Bond Universe for the periods ending 31 December 2014

15%

20%

25%

30%

10%

5%

0%



-5%

71

SECTION 3


Objective: The portfolios included in this survey represent specialist bond portfolios with ALBI as their benchmark and have an effective modified duration mandate of ±2 years around the ALBI.

General information


Managed ITO Regulation 28? (Y/N)

Benchmark Description

Portfolio Modified Duration

% Invested in AAA Rated Instruments

No. of Funds in Composite

Portfolio Size (R M)

Specialist BondsArgon Domestic Core Bond C Y All Bond Index 6.79 46.81% 4 711Atlantic Bond Composite C Y All Bond Index 6.19 28.42% 3 646Cadiz Houseview Bond Fund C Y All Bond Index 5.00 67.28% 9 4 522Coronation Active Bond Portfolio (Composite) C Y All Bond Index 6.55 79.81% 9 8 118

Coronation Strategic Bond Composite C Y All Bond Index 6.38 64.55% 8 4 429

Futuregrowth Core Bond Composite V Y All Bond Index 7.16 68.36% 4 18 144

Futuregrowth Yield Enhanced V N All Bond Index 7.06 21.70% 5 5 439Investec Corporate Bond Composite V Y All Bond Index 6.29 34.10% 3 13 317

Investec Triple Alpha Y All Bond Index 6.49 58.37% 16 3 661Investment Solutions Pure Fixed Interest Portfolio N/A Y All Bond Index 4.82 63.51% 4 861

JM BUSHA BondPlus C Y All Bond Index 6.79 84.76% 3 855Momentum AM Bond Fund C Y All Bond Index 6.22 76.57% 10 8 450Momentum MoM Moderate Bond FOF Y All Bond Index 6.16 63.46% 2 206

Pan Africa AM Segregated Domestic Bond C Y All Bond Index 6.75 38.20% 5 1 899

Prescient Bond Quant V Y All Bond Index 6.05 59.03% 2 456Prescient Bond QuantPlus V Y All Bond Index 5.53 53.90% 11 7 485Prudential Yield Enhanced Portfolio V Y All Bond Index 6.64 55.45% 8 2 748

SIM Institutional Total Return Bond Fund V Y All Bond Index 6.88 81.61% 15 7 139

STANLIB Core Bond Portfolio V Y All Bond Index 6.29 57.00% 8 4 831Vunani Active Bond Fund V Y All Bond Index 6.56 48.98% 6 822Total 97 381

Inflation Linked BondsCoronation Absolute Bond Portfolio C N CPI + 4%pa 1.79 12.81% 2 7 605

Investec Inflation Linked Bond Composite V Y Barclays - BESA SA

Inflation Linked Index 11.48 88.70% 3 3 105

Momentum AM Inflation Linked Bond Fund C Y Barclays - BESA SA

Inflation Linked Index 11.30 79.29% 4 1 406

Prescient Inflation Linked Bond Composite V Y 90 ILBI / 10 STEFI Call 9.86 84.60% 3 2 810

Prudential Inflation Linked Bond Fund V Y Barclays South Africa

Inflation Linked Index 11.76 77.69% 1 231

SIM Inflation Linked Bond Fund V YBarclays BESA Govt Inflation-linked Bond Index”

11.43 82.00% 2 3 593

Inflation Linked BondsAll Bond IndexTotal 18 749


72





1 Year Rank 3 Years (p.a.) Rank 5 Years (p.a.) Rank 7 Years (p.a.) Rank 10 Years (p.a.) RankSpecialist BondsArgon Domestic Core Bond 11.08% 5 10.58% 3 10.45% 16 9.63% 18 *Atlantic Bond Composite 10.65% 7 * * * *Cadiz Houseview Bond Fund 9.98% 13 9.51% 9 10.68% 13 10.17% 13 9.50% 5Coronation Active Bond Portfolio (Composite) 11.33% 3 10.25% 4 11.27% 4 10.48% 5 9.70% 2

Coronation Strategic Bond Composite 11.69% 2 10.71% 2 11.61% 2 11.00% 2 *Futuregrowth Core Bond Composite 10.33% 8 9.73% 5 10.96% 9 10.19% 11 9.29% 12Futuregrowth Yield Enhanced 12.81% 1 11.70% 1 12.93% 1 11.94% 1 10.75% 1Investec Corporate Bond Composite 7.08% 20 9.00% 15 11.39% 3 10.98% 3 *Investec Triple Alpha 8.83% 19 8.92% 17 10.57% 14 10.11% 15 *Investment Solutions Pure Fixed Interest Portfolio 11.08% 4 9.70% 7 10.75% 12 10.21% 9 9.40% 8

JM BUSHA BondPlus 9.59% 18 8.78% 18 9.81% 19 9.18% 19 *Momentum AM Bond Fund 10.27% 10 9.41% 13 10.79% 10 10.45% 6 9.52% 3Momentum MoM Moderate Bond FOF 10.22% 11 9.26% 14 10.57% 15 10.23% 8 9.40% 9Pan Africa AM Segregated Domestic Bond 10.27% 9 9.43% 11 10.78% 11 10.21% 10 9.39% 10

Prescient Bond Quant 10.12% 12 8.94% 16 10.31% 17 9.88% 17 9.05% 13Prescient Bond QuantPlus 9.66% 16 8.65% 19 9.98% 18 10.09% 16 9.42% 7Prudential Yield Enhanced Portfolio 9.86% 14 9.42% 12 11.18% 5 10.40% 7 9.51% 4SIM Institutional Total Return Bond Fund 10.67% 6 9.51% 8 10.97% 8 10.13% 14 9.34% 11STANLIB Core Bond Portfolio 9.61% 17 9.49% 10 11.04% 7 10.18% 12 9.46% 6Vunani Active Bond Fund 9.69% 15 9.72% 6 11.09% 6 10.72% 4 *

Specialist Bonds StatisticsHighest 12.81% 11.70% 12.93% 11.94% 10.75%Upper Quartile 10.77% 9.72% 11.13% 10.46% 9.51%Median 10.17% 9.43% 10.78% 10.19% 9.41%Average 10.10% 9.51% 10.84% 10.28% 9.50%Lower Quartile 9.69% 9.13% 10.57% 10.12% 9.39%Lowest 7.08% 8.65% 9.81% 9.18% 9.05%Range 5.73% 3.05% 3.12% 2.76% 1.69%Number of participants 18 17 17 17 12

Inflation Linked BondsCoronation Absolute Bond Portfolio 8.51% 8.77% 11.13% 11.61% 10.64%Investec Inflation Linked Bond Composite 10.91% 10.04% * * *Momentum AM Inflation Linked Bond Fund 10.86% 10.34% 11.29% * *

Prescient Inflation Linked Bond Composite 10.22% * * * *

Prudential Inflation Linked Bond Fund 10.33% 10.22% 11.10% 11.02% *SIM Inflation Linked Bond Fund 10.87% 10.21% * * *

Inflation Linked Bonds StatisticsHighest 10.91% 10.34% 11.29% 11.61% *Upper Quartile 10.87% 10.22% 11.21% 11.46% *Median 10.60% 10.21% 11.13% 11.32% *Average 10.29% 9.91% 11.18% 11.32% *Lower Quartile 10.25% 10.04% 11.12% 11.17% *Lowest 8.51% 8.77% 11.10% 11.02% *Range 2.40% 1.56% 0.19% 0.59% *Number of participants 6 5 3 2 *

IndicesAll Bond Index 10.15% 8.74% 9.97% 9.29% 8.54%1-3 Year Bond Index 6.23% 6.31% 7.31% 8.15% 7.75%3-7 Year Bond Index 7.90% 7.55% 9.11% 9.10% 8.36%7-12 Year Bond Index 8.30% 8.56% 10.34% 9.43% 8.87%12+ Year Bond Index 12.91% 10.03% 10.35% 8.75% 8.03%Barclays - BESA SA Inflation Linked Index 11.15% 10.17% 10.90% 10.81% 11.19%

BESA Standard Bank Credit Index 9.14% 7.27% 10.54% 9.95% *GOVI 9.81% 8.47% 9.54% 8.70% 8.14%OTHI 11.81% 10.22% 11.16% 9.97% 8.89%STeFI 5.90% 5.55% 5.86% 7.14% 7.38%

73

SECTION 3




Calendar Year Returns2013 Rank 2012 Rank 2011 Rank 2010 Rank 2009 Rank

Specialist BondsArgon Domestic Core Bond 2.69% 5 18.55% 2 6.81% 19 13.81% 18 -1.04% 19Atlantic Bond Composite 2.32% 8 * * * *Cadiz Houseview Bond Fund 1.93% 11 17.14% 11 8.98% 18 16.07% 12 0.71% 11Coronation Active Bond Portfolio (Composite) 2.30% 9 17.66% 5 9.85% 5 15.86% 13 0.00% 15

Coronation Strategic Bond Composite 2.76% 4 18.25% 3 9.70% 8 16.34% 9 1.14% 7Futuregrowth Core Bond Composite 2.10% 10 17.30% 7 9.35% 13 16.39% 8 -0.27% 17Futuregrowth Yield Enhanced 3.29% 1 19.59% 1 11.27% 2 18.44% 2 1.06% 8Investec Corporate Bond Composite 3.22% 2 17.16% 9 11.56% 1 18.70% 1 2.63% 2Investec Triple Alpha 1.91% 12 16.49% 14 9.82% 6 16.48% 7 0.60% 13Investment Solutions Pure Fixed Interest Portfolio 2.40% 7 16.05% 16 9.27% 14 15.52% 15 0.75% 10

JM BUSHA BondPlus 1.28% 20 15.97% 17 9.16% 16 13.64% 19 1.88% 5Momentum AM Bond Fund 1.36% 19 17.17% 8 9.58% 10 16.30% 10 1.35% 6Momentum MoM Moderate Bond FOF 1.63% 17 16.44% 15 9.38% 12 15.82% 14 2.14% 4Pan Africa AM Segregated Domestic Bond 1.71% 14 16.83% 12 9.07% 17 16.72% 5 0.65% 12

Prescient Bond Quant 1.60% 18 15.55% 18 9.46% 11 15.40% 16 0.96% 9Prescient Bond QuantPlus 3.01% 3 13.54% 19 9.17% 15 14.91% 17 3.59% 1Prudential Yield Enhanced Portfolio 1.78% 13 17.14% 10 10.58% 4 17.30% 3 0.03% 14SIM Institutional Total Return Bond Fund 1.70% 15 16.69% 13 9.67% 9 16.82% 4 -0.78% 18STANLIB Core Bond Portfolio 1.66% 16 17.77% 4 10.61% 3 16.26% 11 -0.19% 16Vunani Active Bond Fund 2.41% 6 17.56% 6 9.74% 7 16.72% 6 2.33% 3

Specialist Bonds StatisticsHighest 3.29% 19.59% 11.56% 18.70% 3.59%Upper Quartile 2.48% 17.61% 9.83% 16.72% 1.61%Median 1.92% 17.14% 9.58% 16.30% 0.75%Average 2.15% 16.99% 9.63% 16.18% 0.92%Lower Quartile 1.69% 16.47% 9.22% 15.67% 0.02%Lowest 1.28% 13.54% 6.81% 13.64% -1.04%Range 2.01% 6.05% 4.75% 5.05% 4.64%Number of participants 20 19 19 19 19

Inflation Linked BondsCoronation Absolute Bond Portfolio 4.56% 13.44% 13.88% 15.66% 12.34%Investec Inflation Linked Bond Composite 1.11% 18.81% 13.56% * *Momentum AM Inflation Linked Bond Fund 1.21% 19.73% 13.48% 12.00% *

Prescient Inflation Linked Bond Composite * 15.63% 11.45% 10.92% *

Prudential Inflation Linked Bond Fund 1.14% 19.98% 13.32% 11.59% 8.23%SIM Inflation Linked Bond Fund 1.12% 19.39% * * *

Inflation Linked Bonds StatisticsHighest 4.56% 19.98% 13.88% 15.66% 12.34%Upper Quartile 1.21% 19.64% 13.56% 12.92% 11.31%Median 1.14% 19.10% 13.48% 11.79% 10.28%Average 1.83% 17.83% 13.14% 12.54% 10.28%Lower Quartile 1.12% 16.42% 13.32% 11.42% 9.26%Lowest 1.11% 13.44% 11.45% 10.92% 8.23%Range 3.44% 6.55% 2.43% 4.75% 4.11%Number of participants 5 6 5 4 2

IndicesAll Bond Index 0.64% 15.99% 8.82% 14.96% -0.99%1-3 Year Bond Index 4.42% 8.30% 8.90% 8.75% 7.74%3-7 Year Bond Index 1.46% 13.65% 10.18% 12.79% 2.80%7-12 Year Bond Index -0.21% 18.40% 10.20% 16.00% -2.19%12+ Year Bond Index -0.69% 18.81% 6.00% 15.86% -7.47%Barclays - BESA SA Inflation Linked Index 0.79% 19.37% 13.05% 10.97% 7.66%

BESA Standard Bank Credit Index -2.29% 15.74% 10.95% 20.50% 2.51%GOVI 0.52% 15.64% 7.84% 14.58% -0.44%OTHI 1.49% 17.98% 8.10% 17.28% -1.91%STeFI 5.18% 5.55% 5.73% 6.93% 9.13%

74


S.A. Bond Manager Watch™ Survey


Cal

cula

ted

on 3

yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Retu

rn

(p.a

.)Ra

nkVo

latil

ity

(Ris

k)Ra

nkAc

tive

Retu

rnRa

nkTr

acki

ng

Erro

rIn

form

atio

n Ra

tioRa

nk5

Year

Re

turn

(p

.a.)

Rank

Vola

tility

(Ris

k)Ra

nkA

ctiv

eR

etur

nRa

nkTr

acki

ng

Erro

rIn

form

atio

n Ra

tioRa

nk

Spec

ialis

t Bon

dsA

rgon

Dom

estic

Cor

e B

ond

10.5

8%3

6.34

%7

1.84

%3

0.91

%2.

024

10.4

5%16

6.24

%16

0.48

%16

1.22

%0.

3917

Cad

iz H

ouse

view

Bon

d Fu

nd9.

51%

96.

35%

80.

77%

91.

10%

0.70

1310

.68%

135.

99%

70.

71%

130.

91%

0.78

12C

oron

atio

n A

ctiv

e B

ond

Por

tfolio

(Com

posi

te)

10.2

5%4

6.47

%10

1.51

%4

0.66

%2.

303

11.2

7%4

6.06

%12

1.30

%4

0.63

%2.

054

Cor

onat

ion

Stra

tegi

c B

ond

Com

posi

te10

.71%

26.

48%

111.

97%

20.

75%

2.63

111

.61%

26.

01%

91.

64%

20.

70%

2.34

1Fu

ture

grow

th C

ore

Bon

d C

ompo

site

9.73

%5

6.52

%14

0.99

%5

0.75

%1.

337

10.9

6%9

6.05

%10

0.98

%9

0.66

%1.

508

Futu

regr

owth

Yie

ld E

nhan

ced

11.7

0%1

6.38

%9

2.96

%1

1.20

%2.

462

12.9

3%1

5.74

%4

2.95

%1

1.37

%2.

162

Inve

stec

Cor

pora

te B

ond

Com

posi

te9.

00%

156.

11%

30.

26%

152.

75%

0.09

1711

.39%

35.

78%

51.

41%

32.

20%

0.64

15In

vest

ec T

riple

Alp

ha8.

92%

176.

29%

50.

18%

171.

50%

0.12

1610

.57%

145.

99%

80.

60%

141.

20%

0.50

16In

vest

men

t Sol

utio

ns P

ure

Fixe

d In

tere

st P

ortfo

lio9.

70%

76.

00%

20.

96%

71.

00%

0.96

1110

.75%

125.

65%

20.

78%

120.

88%

0.89

11JM

BU

SH

A B

ondP

lus

8.78

%18

6.19

%4

0.04

%18

0.81

%0.

0518

9.81

%19

5.73

%3

-0.1

6%19

0.79

%-0

.21

19M

omen

tum

AM

Bon

d Fu

nd9.

41%

136.

63%

160.

67%

130.

48%

1.40

510

.79%

106.

10%

140.

82%

100.

49%

1.66

6M

omen

tum

MoM

Mod

erat

e B

ond

FOF

9.26

%14

6.51

%13

0.52

%14

0.89

%0.

5914

10.5

7%15

6.08

%13

0.59

%15

0.89

%0.

6713

Pan

Afri

ca A

M S

egre

gate

d D

omes

tic B

ond

9.43

%11

6.49

%12

0.69

%11

0.64

%1.

088

10.7

8%11

6.18

%15

0.80

%11

0.61

%1.

339

Pre

scie

nt B

ond

Qua

nt8.

94%

166.

54%

150.

20%

160.

57%

0.35

1510

.31%

176.

05%

110.

33%

170.

51%

0.65

14P

resc

ient

Bon

d Q

uant

Plu

s8.

65%

195.

75%

1-0

.09%

191.

84%

-0.0

519

9.98

%18

5.31

%1

0.01

%18

1.59

%0.

0018

Pru

dent

ial Y

ield

Enh

ance

d P

ortfo

lio9.

42%

126.

84%

190.

68%

120.

67%

1.01

911

.18%

56.

36%

181.

21%

50.

59%

2.05

3S

IM In

stitu

tiona

l Tot

al R

etur

n B

ond

Fund

9.

51%

86.

79%

170.

77%

80.

57%

1.36

610

.97%

86.

36%

190.

99%

80.

51%

1.96

5S

TAN

LIB

Cor

e B

ond

Por

tfolio

9.49

%10

6.80

%18

0.75

%10

0.74

%1.

0110

11.0

4%7

6.29

%17

1.06

%7

0.65

%1.

637

Vuna

ni A

ctiv

e B

ond

Fund

9.72

%6

6.29

%6

0.98

%6

1.09

%0.

8912

11.0

9%6

5.97

%6

1.11

%6

0.89

%1.

2510

Low

er v

olat

ility

=

high

er ra

nkin

gLo

wer

vol

atili

ty

= hi

gher

rank

ing

Stat

istic

sH

ighe

st11

.70%

6.84

%2.

96%

2.75

%2.

6312

.93%

6.36

%2.

95%

2.20

%2.

34U

pper

Qua

rtile

9.72

%6.

53%

0.98

%1.

10%

1.38

11.1

3%6.

14%

1.16

%1.

06%

1.81

Med

ian

9.49

%6.

47%

0.75

%0.

81%

1.01

10.7

9%6.

05%

0.82

%0.

79%

1.25

Aver

age

9.62

%6.

41%

0.88

%1.

00%

1.07

10.9

0%6.

00%

0.93

%0.

91%

1.17

Low

er Q

uarti

le9.

13%

6.29

%0.

39%

0.66

%0.

4710

.57%

5.88

%0.

60%

0.62

%0.

65Lo

wes

t8.

65%

5.75

%-0

.09%

0.48

%-0

.05

9.81

%5.

31%

-0.1

6%0.

49%

-0.2

1N

umbe

r of p

artic

ipan

ts19

1919

1919

1919

1919

19

Infla

tion

Link

ed B

onds

Cor

onat

ion

Abs

olut

e B

ond

Por

tfolio

8.77

%3.

00%

11.1

3%3.

31%

Inve

stec

Infla

tion

Link

ed B

ond

Com

posi

te10

.04%

6.55

%*

*M

omen

tum

AM

Infla

tion

Link

ed B

ond

Fund

10.3

4%6.

83%

11.2

9%6.

07%

Pre

scie

nt In

flatio

n Li

nked

Bon

d C

ompo

site

**

**

Pru

dent

ial I

nflat

ion

Link

ed B

ond

Fund

10.2

2%7.

02%

11.1

0%6.

13%

SIM

Infla

tion

Link

ed B

ond

Fund

10

.21%

6.84

%*

*

Stat

istic

sH

ighe

st10

.34%

7.02

%11

.29%

6.13

%U

pper

Qua

rtile

10.2

2%6.

84%

11.2

1%6.

10%

Med

ian

10.2

1%6.

83%

11.1

3%6.

07%

Aver

age

9.91

%6.

05%

11.1

8%5.

17%

Low

er Q

uarti

le10

.04%

6.55

%11

.12%

4.69

%Lo

wes

t8.

77%

3.00

%11

.10%

3.31

%N

umbe

r of p

artic

ipan

ts 5

5

3

3

Indi

ces

All

Bon

d In

dex

8.74

%6.

90%

9.97

%6.

40%

Bar

clay

s - B

ES

A S

A In

flatio

n Li

nked

Inde

x10

.17%

6.95

%10

.90%

6.08

%B

ES

A S

tand

ard

Ban

k C

redi

t Ind

ex7.

27%

7.93

%10

.54%

7.01

%

Vola

tilit

y v

s R

etu

rn

75

SECTION 3


Volatility vs Return Scatterplot on SA Bond Managers – 3 Years ended 31 December 2014

6.5%

4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

Ret

urn

(p.a

.)


Futuregrowth Yield Enhanced

Argon Domestic Core Bond

Vunani Active Bond Fund

Investment Solutions Pure Fixed Interest Portfolio

Cadiz Houseview Bond FundPan Africa AM Segregated Domestic Bond

Investec Corporate Bond Composite

Coronation Strategic Bond Composite

Coronation Active Bond Portfolio (Composite)

Futuregrowth Core Bond Composite

Momentum AM Bond FundMomentum Moderate Bond FOF

Prescient Bond Quant

Prescient Bond QuantPlus

JM Busha BondPlusInvestec Triple Alpha

All Bond Index

Prudential

SIM Institutional TotalReturn Bond Fund

STANLIB Core Bond Portfolio

Active Return vs Tracking Error Scatterplot on SA Bond Managers – 3 Years ended 31 December 2014

-0.5%

0.1% 0.6% 1.1% 1.6% 2.1% 2.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Ret

urn

(p.a

.)

Tracking Error (p.a.)

Futuregrowth Yield Enhanced


Coronation Active Bond Portfolio (Composite)


Investec Triple Alpha


JM Busha BondPlus

Argon Domestic Core Bond

IR = 2

IR = 1

IR = 0.5


Momentum Moderate Bond FOF


Cadiz Houseview Bond Fund


Futuregrowth Core Bond Composite

Investment Solutions Pure Fixed Interest Portfolio

SIM Institutional Total Return Bond Fund

Momentum AM Bond Fund

Prudential

Pan Africa AM Segregated Domestic Bond

76


Composite Dispersion (Standard Deviation) of SA Bond Manager Watch™ Survey


Specialist Bonds Minimum Return Maximum Return





Atlantic Bond Composite 7.60% 13.44% 10.17% 2.03% 4.14% *Cadiz Houseview Bond Fund 10.51% 10.63% 10.57% 0.06% 0.05% 0.01%Coronation Active Bond Portfolio 10.94% 11.67% 11.20% 0.18% 0.18% 0.15%Coronation Strategic Bond Composite 10.77% 11.96% 11.69% 0.24% 0.02% 0.11%

Investec Corporate Bond Composite 2.22% 7.58% 3.07% 2.19% 0.61% *Investec Triple Alpha 8.79% 8.89% 8.81% 0.03% 0.01% 0.03%JM BUSHA BondPlus 9.50% 9.88% 9.53% 0.16% 0.19% 0.20%Momentum AM Bond Fund 9.79% 10.48% 10.30% 0.16% 0.11% 0.16%Pan Africa AM Segregated Domestic Bond 10.00% 10.90% 10.50% 0.20% * *

Prescient Bond Quant 11.87% 11.90% 11.89% 0.01% 0.01% *Prescient Bond QuantPlus 9.29% 11.36% 11.27% 0.56% 0.71% 0.44%Prudential Yield Enhanced Portfolio 9.73% 10.29% 9.94% 0.17% 0.26% 0.36%SIM Institutional Total Return Bond Fund 10.46% 10.80% 10.64% 0.07% 0.21% 0.21%

STANLIB Core Bond Portfolio 9.41% 9.82% 9.48% 0.11% 6.02% 5.96%Vunani Active Bond Fund 9.30% 10.80% 10.20% 0.37% 0.17% 0.02%


Specialist Bonds

Atlantic Bond Composite

Cadiz Houseview Bond Fund

Coronation Active Bond Portfolio



Investec Triple Alpha

JM BUSHA BondPlus

Momentum AM Bond Fund

Pan Africa AM Segregated Domestic Bond


2.03%

0.06%

0.18%

0.24%

2.19%

0.16%

0.16%

0.01%

0.20%


Prudential Yield Enhanced Portfolio

SIM Institutional Total Return Bond Fund



0.56%

0.17%

0.11%

0.37%

0.7%

0.00% 0.50% 1.50% 2.00% 2.50%1.00%

0.03%

77

SECTION 3

Composite Dispersion (Standard Deviation) of SA Bond Manager Watch™ Survey


Inflation Linked Bonds Minimum Return Maximum Return





Coronation Absolute Bond Portfolio 8.09% 8.53% 8.31% 0.22% * *

Investec Inflation Linked Bond Composite 10.75% 11.07% 10.85% 0.12% 0.35% *

Momentum AM Inflation Linked Bond Fund 10.56% 11.19% 11.12% 0.22% 0.02% *

Prescient Inflation Linked Bond Composite 10.14% 10.21% 10.18% 0.02% 0.03% 0.01%

SIM Inflation Linked Bond Fund 10.71% 11.02% 10.87% 0.15% * *


Inflation Linked Bonds

Coronation Absolute Bond Portfolio

Investec Inflation Linked Bond Composite

Momentum AM Inflation Linked Bond Fund

Prescient Inflation Linked Bond Composite

SIM Inflation Linked Bond Fund

0.22%

0.02%

0.15%

0.00% 0.05% 0.15% 0.20% 0.25%0.10%

0.12%

0.22%

78



Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.

GIP

S™

(Ver

ified

/ C

ompl

iant

)N

otes

Man

aged

IT

O

Reg

ulat

ion

28?

(Y/N

)

Ben

chm

ark

Des

crip

tion

Cla

ssifi

catio

nVa

luat

ion

Met

hodo

logy

Max

imum

D

urat

ion

of

Port

folio

Mat

urity

of

long

est

date

d in

stru

men

t

% o

f po

rtfo

lio

inve

sted

in

f1 a

nd

bette

r rat

ed

inst

rum

ents

No.

of

Fund

s in

C

ompo

site

Port

folio

Si

ze (R

m)

Max

imum

dur

atio

n up

to 9

0 da

ysA

BS

A A

sset

Man

agem

ent M

oney

M

arke

tV

YS

TeFI

Poo

led

Acc

rual

90

days

D

ec-1

510

0%7

48 5

74

Cor

onat

ion

Stra

tegi

c C

ash

VA

ble

to in

vest

in in

stru

men

ts

that

hav

e a

mat

urity

long

er

that

one

yea

rY

STe

FIP

oole

dA

ccru

al 9

0 da

ys

Nov

-17

98%

197

5

Futu

regr

owth

Cor

e M

oney

Mar

ket

Com

posi

teV

YS

TeFI

3m

nth

Seg

rega

ted

Mar

k-to

-Mar

ket

90

days

D

ec-1

591

%7

13 4

72

Gry

phon

Mon

ey M

arke

tC

STe

FIS

egre

gate

dA

ccru

al 9

0 da

ys

Oct

-15

100%

267

5In

vest

ec M

oney

Mar

ket F

und

VY

STe

FIP

oole

dA

ccru

al 9

0 da

ys

Dec

-15

98%

122

632

Mom

entu

m A

M M

oney

Mar

ket F

und

VA

ble

to in

vest

in in

stru

men

ts

that

hav

e a

mat

urity

long

er

that

one

yea

rY

STe

FIS

egre

gate

dM

ark-

to-M

arke

t 9

0 da

ys

Dec

-17

100%

33

313

Ned

grou

p In

vest

men

ts M

oney

Mar

ket

Fund

NS

TeFI

Poo

led

Acc

rual

90

days

D

ec-1

510

0%1

9 96

4

Ned

grou

p In

vest

men

ts C

orpo

rate

M

oney

Mar

ket F

und

YS

TeFI

Poo

led

Acc

rual

90

days

D

ec-1

510

0%1

7 34

6

Pre

scie

nt M

oney

Mar

ket C

ompo

site

YS

TeFI

3m

nth

Seg

rega

ted

Mar

k-to

-Mar

ket

90

days

D

ec-1

510

0%4

2 41

8

Pan

Afri

ca S

egre

gate

d D

omes

tic

Cas

hV

Abl

e to

inve

st in

inst

rum

ents

th

at h

ave

a m

atur

ity lo

nger

th

at o

ne y

ear

YS

TeFI

Seg

rega

ted

Mar

k-to

-Mar

ket

90

days

Ju

l-21

100%

445

1

RE

CM

Mon

ey M

arke

t Fun

dV

NS

TeFI

Poo

led

Acc

rual

90

days

D

ec-1

510

0%1

2 09

7S

TAN

LIB

Mon

ey M

arke

t Por

tfolio

VY

STe

FIP

oole

dM

ark-

to-M

arke

t 9

0 da

ys

Jan-

1698

%3

68 3

00Th

is in

clud

es m

ulti-

man

ager

s th

us m

ust b

e no

ted

as

poss

ible

"dou

ble-

coun

ting"

Tota

l18

0 21

7

Max

imum

dur

atio

n up

to 9

1-18

0 da

ysA

tlant

ic C

ash

Plu

sS

TeFI

Seg

rega

ted

Acc

rual

90

days

M

ar-1

976

%13

1 07

2A

rgon

Enh

ance

d M

oney

Mar

ket F

und

VY

STe

FIS

egre

gate

dM

ark-

to-M

arke

t 1

80 d

ays

Dec

-17

92%

271

0C

oron

atio

n In

situ

tiona

l Cas

hV

YS

TeFI

Seg

rega

ted

Mar

k-to

-Mar

ket

180

day

s Ju

n-21

93%

228

5Fu

ture

grow

th 1

80 D

ay E

nhan

ced

Mon

ey M

arke

t Com

posi

teV

YS

TeFI

Poo

led

Mar

k-to

-Mar

ket

180

day

s D

ec-1

586

%5

5 69

8

Inve

stec

Mon

ey F

und

VY

STe

FIP

oole

dM

ark-

to-M

arke

t 1

80 d

ays

Aug

-17

89%

16

326

Inve

stm

ent S

olut

ions

Ban

ker

YS

TeFI

Poo

led

Mar

k-to

-Mar

ket

90

days

D

ec-1

993

%N

/A16

558

JM B

US

HA

Cas

hPlu

sC

STe

FIS

egre

gate

dA

ccru

al 1

80 d

ays

Dec

-15

88%

215

1M

omen

tum

MoM

Mon

ey M

arke

tS

TeFI

Poo

led

Acc

rual

180

day

s A

ug-1

997

%1

413

Mom

entu

m A

M C

ashP

lus

Fund

VY

STe

FIS

egre

gate

dM

ark-

to-M

arke

t 1

80 d

ays

Sep

-19

100%

2215

744

Ned

grou

p In

vest

men

ts C

ore

Inco

me

Fund

YS

TeFI

Poo

led

Mar

k-to

-Mar

ket

180

day

s O

ct-1

910

0%1

9 45

6

Pre

scie

nt Y

ield

Qua

ntpl

us F

und

VY

STe

FIS

egre

gate

dM

ark-

to-M

arke

t 1

80 d

ays

Nov

-17

100%

1315

630

Pru

dent

ial H

igh

Inte

rest

Fun

dV

YS

TeFI

Poo

led

Mar

k-to

-Mar

ket

180

day

s D

ec-1

794

%1

12 9

31S

IM C

ash

Enh

ance

dV

YS

TeFI

Seg

rega

ted

Mar

k-to

-Mar

ket

180

day

s D

ec-1

794

%18

10 8

67S

TAN

LIB

Enh

ance

d Yi

eld

Fund

VN

STe

FIP

oole

dM

ark-

to-M

arke

t 1

80 d

ays

Jun-

2497

%2

11 5

85S

Ym

mE

TRY

Mon

ey M

arke

tS

TeFI

Poo

led

Mar

k-to

-Mar

ket

180

day

s Fe

b-16

90%

N/A

423

Syg

nia

Mon

ey M

arke

t Fun

dS

TeFI

Poo

led

Mar

k-to

-Mar

ket

135

days

Apr

-17

100%

174

0Ta

quan

ta C

ore

Cas

h Fu

ndV

YS

TeFI

Seg

rega

ted

Mar

k-to

-Mar

ket

180

day

s Ju

n-19

100%

15

781

This

incl

udes

mul

ti-m

anag

ers

thus

mus

t be

note

d as

po

ssib

le "d

oubl

e-co

untin

g"To

tal

112

588

V = V

erifi

edC

= C

ompl

iant

Genera

l in

form

ati

on

79

SECTION 3


SA Money Market Manager Watch™ SurveyIn

vest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Cal

enda

r Yea

r Ret

urns

1 Ye

ar3

Year

s5

Year

s7

Year

s10

Yea

rs20

1320

1220

1120

1020

09Po

rtfo

lioR

ank

Port

folio

Ran

kPo

rtfo

lioR

ank

Port

folio

Ran

kPo

rtfo

lioR

ank

Port

folio

Port

folio

Port

folio

Port

folio

Port

folio

Max

imum

dur

atio

n up

to 9

0 da

ysA

BS

A A

sset

Man

agem

ent M

oney

M

arke

t5.

94%

125.

78%

116.

21%

97.

48%

97.

77%

85.

52%

5.86

%6.

31%

7.42

%9.

47%

Cor

onat

ion

Stra

tegi

c C

ash

6.83

%1

6.78

%1

7.21

%1

8.41

%1

8.20

%2

6.79

%6.

70%

7.35

%8.

40%

9.72

%Fu

ture

grow

th C

ore

Mon

ey M

arke

t C

ompo

site

6.28

%7

5.94

%9

6.24

%8

7.67

%6

7.88

%5

5.63

%5.

90%

5.95

%7.

46%

9.70

%

Gry

phon

Mon

ey M

arke

t6.

22%

115.

85%

106.

25%

77.

52%

87.

80%

75.

47%

5.86

%6.

11%

7.61

%9.

68%

Inve

stec

Mon

ey M

arke

t Fun

d6.

36%

65.

99%

76.

33%

57.

69%

57.

91%

45.

70%

5.92

%6.

13%

7.56

%9.

83%

Mom

entu

m A

M M

oney

Mar

ket F

und

6.61

%2

6.46

%3

6.85

%3

8.13

%2

8.27

%1

6.18

%6.

58%

6.86

%8.

03%

10.0

7%N

edgr

oup

Inve

stm

ents

Mon

ey

Mar

ket F

und

6.39

%5

6.03

%6

**

*5.

75%

5.95

%6.

12%

**

Ned

grou

p In

vest

men

ts C

orpo

rate

M

oney

Mar

ket F

und

6.23

%9

**

**

5.54

%*

**

*

Pre

scie

nt M

oney

Mar

ket C

ompo

site

6.55

%3

6.13

%4

6.46

%4

7.83

%4

*5.

67%

6.17

%6.

21%

7.70

%10

.12%

Pan

Afri

ca S

egre

gate

d D

omes

tic

Cas

h6.

23%

106.

66%

26.

90%

27.

94%

38.

02%

36.

43%

7.32

%6.

65%

7.85

%9.

12%

RE

CM

Mon

ey M

arke

t Fun

d6.

50%

46.

06%

5*

**

5.75

%5.

92%

5.79

%*

*S

TAN

LIB

Mon

ey M

arke

t Por

tfolio

6.24

%8

5.94

%8

6.29

%6

7.61

%7

7.82

%6

5.68

%5.

90%

6.12

%7.

51%

9.61

%

Stat

istic

sH

ighe

st6.

83%

6.78

%7.

21%

8.41

%8.

27%

6.79

%7.

32%

7.35

%8.

40%

10.1

2%U

pper

Qua

rtile

6.51

%6.

29%

6.85

%7.

94%

8.06

%5.

86%

6.38

%6.

48%

7.85

%9.

83%

Med

ian

6.32

%6.

03%

6.33

%7.

69%

7.89

%5.

69%

5.92

%6.

13%

7.61

%9.

70%

Aver

age

6.37

%6.

15%

6.53

%7.

81%

7.96

%5.

84%

6.19

%6.

33%

7.73

%9.

70%

Low

er Q

uarti

le6.

23%

5.94

%6.

25%

7.61

%7.

81%

5.61

%5.

90%

6.11

%7.

51%

9.61

%Lo

wes

t5.

94%

5.78

%6.

21%

7.48

%7.

77%

5.47

%5.

86%

5.79

%7.

42%

9.12

%R

ange

0.89

%1.

00%

1.00

%0.

93%

0.50

%1.

32%

1.46

%1.

55%

0.98

%1.

00%

Num

ber o

f par

ticip

ants

1211

99

812

1111

99

Mar

ket S

tatis

tics

Ale

xand

er F

orbe

s M

oney

Mar

ket

Inde

x5.

97%

5.62

%5.

90%

7.23

%7.

62%

5.31

%5.

58%

5.77

%6.

88%

8.90

%

Sho

rt Te

rm F

ixed

Inte

rest

Rat

e In

dex

5.90

%5.

55%

5.86

%7.

14%

7.38

%5.

18%

5.55

%5.

73%

6.93

%9.

13%

STe

FI C

all D

epos

it In

dex

5.29

%5.

02%

5.32

%6.

59%

6.90

%4.

67%

5.09

%5.

29%

6.26

%8.

36%

STe

FI 3

Mon

th N

CD

Rat

e5.

65%

5.34

%5.

61%

6.90

%7.

22%

5.03

%5.

34%

5.48

%6.

58%

8.64

%S

TeFI

6 M

onth

NC

D R

ate

6.11

%5.

67%

5.96

%7.

23%

7.46

%5.

28%

5.62

%5.

76%

7.01

%9.

16%

STe

FI 1

2 M

onth

NC

D R

ate

8.32

%6.

61%

6.79

%7.

98%

8.02

%5.

56%

5.98

%6.

34%

7.76

%10

.34%

80



SA Money Market Manager Watch™ SurveyIn

vest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Cal

enda

r Yea

r Ret

urns

1 Ye

ar3

Year

s5

Year

s7

Year

s10

Yea

rs20

1320

1220

1120

1020

09Po

rtfo

lioR

ank

Port

folio

Ran

kPo

rtfo

lioR

ank

Port

folio

Ran

kPo

rtfo

lioR

ank

Port

folio

Port

folio

Port

folio

Port

folio

Port

folio

Max

imum

dur

atio

n up

to 9

0 da

ysA

tlant

ic C

ash

Plu

s6.

52%

6*

**

*5.

80%

6.10

%6.

94%

**

Arg

on E

nhan

ced

Mon

ey M

arke

t Fun

d6.

30%

12*

**

*5.

89%

6.60

%*

**

Cor

onat

ion

Insi

tutio

nal C

ash

6.76

%2

6.48

%7

6.83

%8

8.06

%8

*6.

04%

6.63

%6.

97%

7.76

%9.

51%

Futu

regr

owth

180

Day

Enh

ance

d M

oney

Mar

ket C

ompo

site

6.36

%10

6.09

%14

**

*5.

67%

6.26

%*

**

Inve

stec

Mon

ey F

und

6.23

%14

6.43

%8

6.89

%7

8.20

%5

8.30

%3

6.35

%6.

71%

6.90

%8.

24%

10.0

1%In

vest

men

t Sol

utio

ns B

anke

r6.

74%

36.

59%

36.

90%

58.

20%

68.

28%

46.

46%

6.56

%6.

80%

7.93

%9.

92%

JM B

US

HA

Cas

hPlu

s6.

46%

86.

07%

156.

48%

117.

79%

117.

92%

75.

63%

6.13

%6.

50%

7.71

%10

.31%

Mom

entu

m M

oM M

oney

Mar

ket

6.33

%11

6.32

%10

**

*6.

25%

6.37

%6.

42%

**

Mom

entu

m A

M C

ashP

lus

Fund

6.71

%4

6.70

%2

7.09

%1

8.32

%1

*6.

47%

6.91

%7.

08%

8.27

%10

.15%

Ned

grou

p In

vest

men

ts C

ore

Inco

me

Fund

6.16

%16

6.41

%9

6.91

%4

8.20

%7

*6.

32%

6.75

%6.

98%

8.34

%10

.03%

Pre

scie

nt Y

ield

Qua

ntpl

us F

und

7.09

%1

6.74

%1

6.93

%3

8.23

%3

8.35

%2

6.62

%6.

49%

6.70

%7.

77%

9.91

%P

rude

ntia

l Hig

h In

tere

st F

und

6.39

%9

6.31

%11

**

*6.

09%

6.45

%6.

55%

**

SIM

Cas

h E

nhan

ced

6.53

%5

6.48

%6

6.70

%9

7.95

%9

8.05

%5

6.36

%6.

55%

6.46

%7.

62%

9.50

%S

TAN

LIB

Enh

ance

d Yi

eld

Fund

6.46

%7

6.56

%5

6.90

%6

8.20

%4

*6.

71%

6.50

%6.

75%

8.06

%10

.23%

SY

mm

ETR

Y M

oney

Mar

ket

6.22

%15

6.13

%13

6.57

%10

7.84

%10

7.99

%6

5.92

%6.

25%

6.62

%7.

84%

9.85

%S

ygni

a M

oney

Mar

ket F

und

6.01

%17

6.24

%12

**

*6.

31%

6.41

%6.

61%

**

Taqu

anta

Cor

e C

ash

Fund

6.28

%13

6.58

%4

6.99

%2

8.25

%2

8.39

%1

6.50

%6.

95%

7.05

%8.

18%

10.0

2%St

atis

tics

Hig

hest

7.09

%6.

74%

7.09

%8.

32%

8.39

%6.

71%

6.95

%7.

08%

8.34

%10

.31%

Upp

er Q

uarti

le6.

53%

6.57

%6.

92%

8.21

%8.

32%

6.46

%6.

63%

6.96

%8.

21%

10.0

9%M

edia

n6.

39%

6.43

%6.

90%

8.20

%8.

28%

6.31

%6.

50%

6.75

%7.

93%

10.0

1%Av

erag

e6.

44%

6.41

%6.

83%

8.11

%8.

18%

6.20

%6.

51%

6.76

%7.

97%

9.95

%Lo

wer

Qua

rtile

6.28

%6.

28%

6.77

%8.

00%

8.02

%5.

92%

6.37

%6.

58%

7.77

%9.

88%

Low

est

6.01

%6.

07%

6.48

%7.

79%

7.92

%5.

63%

6.10

%6.

42%

7.62

%9.

50%

Ran

ge1.

09%

0.66

%0.

60%

0.53

%0.

47%

1.08

%0.

85%

0.65

%0.

72%

0.80

%N

umbe

r of p

artic

ipan

ts17

1511

117

1717

1511

11

Mar

ket S

tatis

tics

Ale

xand

er F

orbe

s M

oney

Mar

ket

Inde

x5.

97%

5.62

%5.

90%

7.23

%7.

62%

5.31

%5.

58%

5.77

%6.

88%

8.90

%

Sho

rt Te

rm F

ixed

Inte

rest

Rat

e In

dex

5.90

%5.

55%

5.86

%7.

14%

7.38

%5.

18%

5.55

%5.

73%

6.93

%9.

13%

STe

FI C

all D

epos

it In

dex

5.29

%5.

02%

5.86

%7.

14%

7.38

%4.

67%

5.09

%5.

29%

6.26

%8.

36%

STe

FI 3

Mon

th N

CD

Rat

e5.

65%

5.34

%5.

86%

7.14

%7.

38%

5.03

%5.

34%

5.48

%6.

58%

8.64

%S

TeFI

6 M

onth

NC

D R

ate

6.11

%5.

67%

5.86

%7.

14%

7.38

%5.

28%

5.62

%5.

76%

7.01

%9.

16%

STe

FI 1

2 M

onth

NC

D R

ate

8.32

%6.

61%

5.86

%7.

14%

7.38

%5.

56%

5.98

%6.

34%

7.76

%10

.34%

81

SECTION 3


Volatility vs Return Scatterplot on Money Market Managers (up to 90 day duration) – 3 Years ended 31 December 2014

5.4%

0.0% 0.1% 0.2% 0.4%0.3% 0.6%0.5%

5.6%

5.8%

6.0%

6.2%

6.4%

6.6%

7.0%

6.8%

Ret

urn

(p.a

.)


Pan Africa Segregated Domestic Cash*

ABSA Asset Management Money Market

Futuregrowth Core Money Market Composite

Gryphon Money Market

Nedgroup Investments Money Market Fund

Investec Money Market Fund

Coronation Strategic Cash*

Momentum AM Money Market Fund*

Prescient Money Market Composite

RECM Money Market FundSTANLIB Money Market Portfolio

Volatility vs Return Scatterplot on Money Market Managers (91-180 day duration) – 3 Years ended 31 December 2014

5.8%

0.1% 0.2% 0.3% 0.5%0.4%

6.0%

6.2%

6.4%

6.6%

6.8%

7.0%

7.2%

Ret

urn

(p.a

.)


JM BUSHA CashPlusSYmmETRY Money Market

Sygnia Money Market Fund

Investec Money Fund

Investment Solution Banker Fund

SIM Cash Enhanced

Coronation Institutional Cash

Taquanta Core Cash FundSTANLIB Enhanced Yield Fund

Prescient Yield QuantPlus Fund

Momentum MoM Money Market

Momentum AM CashPlus Fund

Nedgroup Investments Core Income Fund

Prudential High Interest Fund

82


Composite Dispersion (Standard Deviation) of SA Money Market Manager Watch™ Survey


Maximum up to 90 days Minimum Return

Maximum Return





Futuregrowth Core Money Market Composite 6.08% 6.29% 6.28% 0.05% 0.05% *

Gryphon Money Market 6.22% 6.22% 6.22% 0.00% * *Momentum AM Money Market Fund* 6.60% 6.64% 6.62% 0.01% 0.11% 0.13%Prescient Money Market Composite 6.38% 6.64% 6.56% 0.08% 0.06% *Pan Africa Segregated Domestic Cash* 6.25% 7.11% 6.59% 0.36% * *

SIM Cash Enhanced 5.92% 6.95% 6.49% 0.21% 0.27% 0.34%STANLIB Money Market Portfolio 6.18% 6.28% 6.20% 0.04% 0.10% 0.10%


Maximum duration up to 90 days

Futuregrowth Core Money Market Composite

Gryphon Money Market

Momentum AM Money Market Fund*

Prescient Money Market Composite

Pan Africa Segregated Domestic Cash*

SIM Cash Enhanced

STANLIB Money Market Portfolio

0.05%

0.08%

0.21%

0.04%

0.00% 0.05% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40%0.10%

0.00%

0.01%

0.36%

Maximum from 91-180 days Minimum Return

Maximum Return





Atlantic Cash Plus 6.40% 7.53% 7.07% 0.42% 0.77% 1.00%JM BUSHA CashPlus 6.30% 6.54% 6.42% 0.12% 3.03% 3.48%Momentum AM CashPlus Fund 6.32% 7.16% 6.60% 0.17% 0.10% 0.49%Prescient Yield Quantplus Fund 6.57% 7.63% 6.69% 0.27% 0.23% *


Maximum duration from 91-180 days

Atlantic Cash Plus

JM BUSHA CashPlus

Momentum AM CashPlus Fund

Prescient Yield Quantplus Fund

0.42%

0.17%

0.27%

0.00% 0.05% 0.15% 0.20% 0.25% 0.30% 0.35% 0.45%0.40%0.10%

0.12%

83

SECTION 3


Objective: The portfolios in this survey comply with Regulation 28 and represent products targeted at real returns with a CPI Objective.

Port

folio

In

cept

ion

Dat

e

GIP

S™

(Ver

ified

/ C

ompl

iant

)

Glo

bal /

D

omes

tic

Man

date

Man

aged

ITO

R

egul

atio

n 28

? (Y

/N)

CPI

/X T

arge

t Ret

urn

Dua

l Obj

ectiv

e (if

app

licab

le)

No.

of F

unds

in

Com

posi

tePo

rtfo

lio

Size

(R m

)

Hea

dlin

e C

PI +

3%

AB

SA

Ass

et M

anag

emen

t Abs

olut

e C

PI +

3%O

ct-0

2V

Dom

estic

YH

eadl

ine

CP

I + 3

%1

697

Cad

iz In

flatio

n P

lus

3O

ct-0

6V

Dom

estic

YH

eadl

ine

CP

I + 3

%4

1 64

5C

oron

atio

n In

flatio

n P

lus

Fund

Oct

-09

VG

loba

l Y

Hea

dlin

e C

PI +

3.5

%P

rese

rve

capi

tal o

ver a

rolli

ng 1

2m p

erio

d1

2 65

5M

omen

tum

MoM

Rea

l Ret

urn

Jul-0

3D

omes

ticY

Hea

dlin

e C

PI +

3%

N/A

1 00

4P

resc

ient

Pos

itive

Ret

urn

Fund

Jan-

99V

Dom

estic

YH

eadl

ine

CP

I + 3

%14

5 88

5P

resc

ient

Pos

itive

Ret

urn

Med

ical

A

id F

und

May

-02

VD

omes

ticY

Hea

dlin

e C

PI +

3%

780

9

SIM

Abs

olut

eD

ec-0

1V

Dom

estic

YH

eadl

ine

CP

I + 3

%S

IM ta

rget

s lo

w v

olat

ility

real

retu

rns

that

mat

ch th

e up

side

retu

rn

obje

ctiv

e (e

.g. C

PI+

X %

) ove

r rol

ling

thre

e-ye

ar p

erio

ds. A

t the

sam

e tim

e, th

ey ta

rget

not

to lo

se c

apita

l ove

r rol

ling

one-

year

per

iods

467

5

SIM

Abs

olut

e R

etur

n In

com

e Fu

ndM

ay-0

4V

Dom

estic

YH

eadl

ine

CP

I + 3

%S

IM ta

rget

s lo

w v

olat

ility

real

retu

rns

that

mat

ch th

e up

side

retu

rn

obje

ctiv

e (e

.g. C

PI+

X %

) ove

r rol

ling

thre

e-ye

ar p

erio

ds. A

t the

sam

e tim

e, th

ey ta

rget

not

to lo

se c

apita

l ove

r rol

ling

one-

year

per

iods

34

980

Taqu

anta

Abs

olut

eJu

n-01

VD

omes

ticY

Hea

dlin

e C

PI +

3%

670

5H

eadl

ine

CPI

+ 4

%A

BS

A A

sset

Man

agem

ent A

bsol

ute

Glo

bal C

PI +

4%D

ec-0

6V

Glo

bal

YH

eadl

ine

CP

I + 4

%3

19 7

55

AB

SA

Ass

et M

anag

emen

t Abs

olut

e D

omes

tic C

PI+

4%A

ug-0

9D

omes

ticY

Hea

dlin

e C

PI +

4%

99

719

Arg

on A

bsol

ute

Ret

urn

Oct

-06

VD

omes

ticY

Hea

dlin

e C

PI +

4%

Non

neg

ativ

e re

turn

s ov

er 1

yea

r rol

ling

perio

d.3

935

Inve

stm

ent S

olut

ions

Sta

ble

Focu

sA

pr-0

5D

omes

ticY

Hea

dlin

e C

PI +

4%

No

nega

tive

retu

rns

over

rolli

ng 1

2 m

onth

per

iod

N/A

2 31

0M

omen

tum

MoM

Abs

olut

e S

trate

gies

Dec

-03

Dom

estic

YH

eadl

ine

CP

I + 4

%N

/A2

076

Mer

genc

e C

PI +

4%

Fun

dO

ct-0

9C

Dom

estic

YH

eadl

ine

CP

I + 4

%4

1 29

7

OM

IG C

apita

l Bui

lder

Mar

-08

VD

omes

ticY

Hea

dlin

e C

PI +

4%

Targ

ets

both

pos

itive

retu

rns

ever

y qu

arte

r and

CP

I+4%

pa,

or

Cas

h+3%

pa

over

rolli

ng 3

-yea

r per

iods

.1

1 99

2

OM

IG M

acro

Sol

utio

ns S

tabl

e G

row

th

Fund

Jul-0

7V

Glo

bal

YH

eadl

ine

CP

I + 4

%1

3 88

1

Hea

dlin

e C

PI +

5%

Cad

iz In

flatio

n +

5%Fe

b-06

VD

omes

ticY

Hea

dlin

e C

PI +

5%

128

8C

oron

atio

n A

bsol

ute

Jan-

04V

Dom

estic

YH

eadl

ine

CP

I + 5

%P

rese

rve

capi

tal o

ver a

rolli

ng 1

2m p

erio

d12

9 22

6Fo

ord

Abs

olut

eJu

n-02

CG

loba

lY

Hea

dlin

e C

PI +

5%

41

522

Inve

stm

ent S

olut

ions

Rea

l Ret

urn

Focu

s Lo

cal

Oct

-02

Dom

estic

YH

eadl

ine

CP

I + 5

%N

o ne

gativ

e re

turn

s ov

er ro

lling

12

mon

th p

erio

dN

/A6

234

Inve

stm

ent S

olut

ions

Rea

l Ret

urn

Focu

s P

ortfo

lioM

ay-0

3G

loba

l Y

Hea

dlin

e C

PI +

5%

No

nega

tive

retu

rns

over

rolli

ng 1

2 m

onth

per

iod

N/A

3 84

7

JM B

US

HA

Abs

olut

e A

llCla

ssO

ct-0

6C

Dom

estic

YH

eadl

ine

CP

I + 5

%3

1 33

3M

erge

nce

CP

I +5%

Fun

dJu

l-06

VD

omes

ticY

Hea

dlin

e C

PI +

5%

Non

-neg

ativ

e re

turn

s ov

er a

rolli

ng 1

-yea

r per

iod

21

698

Mom

entu

m A

M C

PI+

5% G

loba

l Fun

dN

ov-0

3V

Glo

bal

YH

eadl

ine

CP

I + 5

%C

PI +

5% (g

ross

of f

ees)

ove

r a ro

lling

3-y

ear p

erio

d, a

nd a

low

pr

obab

ility

of l

osin

g ca

pita

l ove

r a ro

lling

1-y

ear p

erio

d.N

/A89

5

Pru

dent

ial D

omes

tic R

eal R

etur

n P

lus

5%N

ov-0

9V

Dom

estic

YH

eadl

ine

CP

I + 5

%3

1 04

0

Pru

dent

ial G

loba

l Infl

atio

n P

lus

5%D

ec-0

2V

Glo

bal

YH

eadl

ine

CP

I + 5

%N

/A1

27 9

19O

MIG

Wea

lth D

efen

der

Aug

-03

CG

loba

lY

Hea

dlin

e C

PI +

5%

46

113

RE

CM

Bal

ance

d Fu

ll D

iscr

etio

n C

ompo

site

Jul-0

3V

Glo

bal

YH

eadl

ine

CP

I + 5

%6

5 43

5

SIM

CP

I + 5

%Ja

n-07

VD

omes

ticY

Hea

dlin

e C

PI +

5%

SIM

targ

ets

low

vol

atili

ty re

al re

turn

s th

at m

atch

the

upsi

de re

turn

ob

ject

ive

(e.g

. CP

I+X

%) o

ver r

ollin

g th

ree-

year

per

iods

. At t

he s

ame

time,

they

targ

et n

ot to

lose

cap

ital o

ver r

ollin

g on

e-ye

ar p

erio

ds8

1 70

3

SIM

CP

I + 5

% G

loba

lD

ec-0

3V

Glo

bal

YH

eadl

ine

CP

I + 5

%S

IM ta

rget

s lo

w v

olat

ility

real

retu

rns

that

mat

ch th

e up

side

retu

rn

obje

ctiv

e (e

.g. C

PI+

X %

) ove

r rol

ling

thre

e-ye

ar p

erio

ds. A

t the

sam

e tim

e, th

ey ta

rget

not

to lo

se c

apita

l ove

r rol

ling

one-

year

per

iods

811

664

SM

M A

bsol

ute

Ret

urn

May

-03

Glo

bal

YH

eadl

ine

CP

I + 5

%1

462

STA

NLI

B A

M A

bsol

ute

Jul-0

1V

Glo

bal

YH

eadl

ine

CP

I + 5

%C

apita

l pre

serv

atio

n ov

er a

rolli

ng 1

2 m

onth

per

iod

13

873

STA

NLI

B D

omes

tic A

bsol

ute

Ret

urn

Mar

-04

VD

omes

ticY

Hea

dlin

e C

PI +

5%

Cap

ital p

rese

rvat

ion

over

a ro

lling

12

mon

th p

erio

d1

302

SY

mm

ETR

Y A

bsol

ute

Def

ensi

ve F

und

Sep

-02

Glo

bal

YH

eadl

ine

CP

I + 4

%N

on-n

egat

ive

retu

rns

over

rolli

ng 1

-yea

r per

iods

N/A

1 16

5Vu

nani

Fun

d M

anag

ers

CP

I+ 5

M

ar-0

5V

Dom

estic

YH

eadl

ine

CP

I + 5

%3

1 69

5H

eadl

ine

CPI

+ 6

%C

adiz

Equ

ity L

adde

r Fun

dA

ug-0

1V

Dom

estic

YH

eadl

ine

CP

I + 6

%1

176

Cor

onat

ion

Abs

olut

e A

ug-9

9V

Glo

bal

YH

eadl

ine

CP

I + 6

%P

rese

rve

capi

tal o

ver a

rolli

ng 1

2m p

erio

d1

7 02

9In

vest

ec O

ppor

tuni

ty

Aug

-99

VG

loba

lY

Hea

dlin

e C

PI +

6%

1552

524

Mom

entu

m A

M (C

PI+

6% G

loba

l)A

pr-1

2V

Glo

bal

YH

eadl

ine

CP

I + 6

%N

/A26

3P

rude

ntia

l Dom

estic

Infla

tion

Plu

s 6%

Dec

-02

VD

omes

ticY

Hea

dlin

e C

PI +

6%

N/A

42

530

Pru

dent

ial G

loba

l Infl

atio

n P

lus

6%

Dec

-02

VG

loba

l Y

Hea

dlin

e C

PI +

6%

N/A

126

2

SIM

CP

I + 6

%Ja

n-03

VD

omes

ticY

Hea

dlin

e C

PI +

6%

SIM

targ

ets

low

vol

atili

ty re

al re

turn

s th

at m

atch

the

upsi

de re

turn

ob

ject

ive

(e.g

. CP

I+X

%) o

ver r

ollin

g th

ree-

year

per

iods

. At t

he s

ame

time,

they

targ

et n

ot to

lose

cap

ital o

ver r

ollin

g on

e-ye

ar p

erio

ds2

519

STA

NLI

B A

bsol

ute

Plu

s Fu

ndD

ec-0

5V

Dom

estic

YH

eadl

ine

CP

I + 6

%C

apita

l pre

serv

atio

n ov

er a

rolli

ng 1

2 m

onth

per

iod

12

294

Tota

l21

3 03

0

Genera

l In

form

ati

on

V = V

erifi

ed

C =

Com

plia

nt

84




Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Cal

enda

r Yea

r Ret

urns

1 Ye

ar3

Year

s5

Year

s7

Year

s10

Yea

rs20

1320

1220

1120

1020

09Po

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kH

eadl

ine

CPI

+ 3

%

AB

SA

Ass

et M

anag

emen

t Abs

olut

e C

PI +

3%9.

82%

8.80

%9.

88%

8.58

%9.

85%

8.29

%10

.19%

9.12

%9.

89%

*5.

53%

14.4

7%9.

33%

10.2

7%10

.48%

Cad

iz In

flatio

n P

lus

34.

72%

8.80

%9.

93%

8.58

%10

.47%

8.29

%*

**

*8.

60%

16.8

0%7.

64%

15.0

8%*

Cor

onat

ion

Infla

tion

Plu

s Fu

nd9.

56%

9.30

%12

.54%

8.58

%12

.77%

8.29

%*

**

*13

.61%

14.5

2%10

.32%

15.9

5%*

Mom

entu

m M

oM R

eal R

etur

n 8.

51%

8.80

%9.

40%

8.58

%7.

95%

8.29

%9.

16%

9.12

%11

.95%

*10

.53%

9.16

%3.

10%

8.60

%11

.67%

Pre

scie

nt P

ositi

ve R

etur

n M

edic

al A

id F

und

8.24

%8.

80%

9.60

%8.

58%

8.21

%8.

29%

9.58

%9.

20%

12.5

4%9.

00%

11.8

7%8.

71%

3.44

%8.

95%

12.8

6%P

resc

ient

Pos

itive

Ret

urn

Fund

7.03

%8.

80%

8.81

%8.

58%

7.54

%8.

29%

8.81

%9.

20%

11.8

3%9.

00%

11.1

4%8.

30%

3.22

%8.

18%

11.8

3%S

IM A

bsol

ute

8.65

%8.

80%

10.0

4%8.

58%

10.7

3%8.

29%

10.0

9%9.

12%

11.0

5%8.

99%

9.80

%11

.69%

10.0

5%13

.51%

13.1

7%S

IM A

bsol

ute

Ret

urn

Inco

me

Fund

7.58

%8.

80%

7.59

%8.

58%

8.42

%8.

29%

9.06

%9.

12%

**

6.64

%8.

56%

8.63

%10

.72%

8.51

%Ta

quan

ta A

bsol

ute

3.76

%8.

80%

4.82

%8.

58%

6.30

%8.

29%

8.00

%9.

20%

8.24

%9.

00%

4.58

%6.

13%

6.99

%10

.13%

12.7

9%

Hea

dlin

e C

PI +

4%

A

BS

A A

sset

Man

agem

ent A

bsol

ute

Glo

bal

CP

I +4%

11.5

9%N

/A12

.63%

9.58

%12

.24%

9.29

%12

.10%

10.1

2%*

*9.

70%

16.7

1%10

.60%

12.7

2%12

.04%

AB

SA

Ass

et M

anag

emen

t Abs

olut

e D

omes

tic

CP

I+4%

10.3

2%N

/A11

.97%

9.58

%*

**

**

*8.

33%

17.4

6%9.

07%

**

Arg

on A

bsol

ute

Ret

urn

11.7

5%N

/A13

.32%

9.58

%11

.52%

9.29

%9.

12%

10.2

0%*

*10

.72%

17.6

2%7.

45%

10.3

2%10

.25%

Inve

stm

ent S

olut

ions

Sta

ble

Focu

s8.

98%

N/A

10.1

7%9.

58%

9.50

%9.

29%

10.2

9%10

.12%

**

8.94

%12

.63%

6.56

%10

.50%

13.5

1%M

omen

tum

MoM

Abs

olut

e S

trate

gies

8.41

%N

/A8.

24%

9.58

%7.

33%

9.29

%7.

41%

10.1

2%10

.04%

9.00

%6.

88%

9.44

%2.

79%

9.29

%10

.93%

Mer

genc

e C

PI +

4%

Fun

d7.

37%

N/A

**

**

**

**

**

**

*O

MIG

Cap

ital B

uild

er7.

93%

N/A

9.35

%9.

58%

7.54

%9.

29%

**

**

9.99

%10

.14%

3.45

%6.

31%

12.1

5%O

MIG

Mac

roS

olut

ions

Sta

ble

Gro

wth

Fun

d10

.33%

N/A

13.9

9%9.

58%

12.5

5%9.

29%

10.9

8%10

.12%

**

14.2

7%17

.47%

**

*

Hea

dlin

e C

PI +

5%

C

adiz

Infla

tion

+ 5%

4.

47%

N/A

11.6

7%10

.58%

12.0

2%10

.29%

11.6

2%11

.20%

**

9.58

%21

.65%

5.81

%19

.70%

18.8

4%C

oron

atio

n A

bsol

ute

9.90

%N

/A12

.59%

10.5

8%12

.74%

10.2

9%12

.17%

11.2

0%15

.48%

11.0

0%12

.76%

15.1

8%4.

99%

21.5

4%22

.94%

Foor

d A

bsol

ute

11.1

5%N

/A20

.49%

10.5

8%17

.28%

10.2

9%13

.48%

11.1

2%18

.08%

10.9

9%24

.82%

26.0

6%9.

90%

15.4

4%18

.18%

Inve

stm

ent S

olut

ions

Rea

l Ret

urn

Focu

s Lo

cal

10.3

3%N

/A11

.62%

10.5

8%10

.62%

10.2

9%10

.39%

11.1

2%12

.99%

10.9

9%10

.90%

13.6

7%4.

61%

13.8

2%16

.09%

Inve

stm

ent S

olut

ions

Rea

l Ret

urn

Focu

s P

ortfo

lio10

.01%

N/A

12.7

2%10

.58%

11.1

9%10

.29%

10.2

4%11

.12%

12.7

0%10

.99%

14.7

2%13

.47%

7.13

%10

.76%

12.9

9%

JM B

US

HA

Abs

olut

e A

llCla

ss

12.1

2%N

/A16

.04%

10.5

8%14

.14%

10.2

9%11

.54%

11.2

0%12

.55%

11.0

0%12

.17%

24.2

5%8.

31%

14.4

8%14

.75%

Mer

genc

e C

PI +

5% F

und

9.13

%N

/A12

.30%

10.5

8%10

.53%

10.2

9%9.

24%

11.1

2%*

*9.

78%

18.2

2%6.

53%

9.37

%12

.79%

Mom

entu

m A

M C

PI+

5% G

loba

l Fun

d9.

65%

N/A

13.5

5%10

.58%

12.5

3%10

.29%

9.12

%11

.20%

11.1

2%11

.00%

13.3

6%17

.80%

8.68

%13

.41%

15.1

1%O

MIG

Wea

lth D

efen

der

9.16

%N

/A*

**

**

**

**

**

**

Pru

dent

ial D

omes

tic R

eal R

etur

n P

lus

5%13

.51%

N/A

**

**

**

**

**

**

*P

rude

ntia

l Glo

bal I

nflat

ion

Plu

s 5%

13.3

6%N

/A17

.25%

10.5

8%15

.42%

10.2

9%13

.03%

11.1

2%*

*17

.23%

21.3

1%12

.26%

13.1

8%12

.12%

RE

CM

Bal

ance

d Fu

ll D

iscr

etio

n C

ompo

site

-2.3

8%N

/A*

**

**

**

**

**

**

SIM

CP

I + 5

%9.

65%

N/A

11.9

7%10

.58%

11.7

1%10

.29%

10.5

0%11

.12%

**

12.4

1%13

.88%

8.59

%14

.12%

15.3

0%S

IM C

PI +

5%

Glo

bal

9.82

%N

/A13

.47%

10.5

8%12

.22%

10.2

9%10

.65%

11.1

2%11

.90%

10.9

9%16

.95%

13.7

6%10

.72%

10.0

4%10

.99%

SM

M A

bsol

ute

Ret

urn

12.6

9%N

/A14

.33%

10.5

8%12

.08%

10.2

9%11

.40%

11.1

2%12

.11%

10.9

9%18

.11%

12.2

8%4.

35%

13.4

4%18

.70%

STA

NLI

B A

M A

bsol

ute

5.16

%N

/A10

.25%

10.5

8%9.

06%

10.2

9%7.

65%

11.1

2%9.

87%

10.9

9%9.

56%

16.3

1%7.

02%

7.58

%7.

40%

STA

NLI

B D

omes

tic A

bsol

ute

Ret

urn

6.57

%N

/A11

.09%

10.5

8%9.

56%

10.2

9%8.

09%

11.1

2%10

.34%

10.9

9%8.

67%

18.4

0%6.

63%

7.96

%10

.66%

SY

mm

ETR

Y A

bsol

ute

Def

ensi

ve F

und

10.1

4%N

/A14

.16%

10.5

8%12

.40%

10.2

9%10

.71%

11.2

0%12

.54%

11.0

0%17

.39%

15.0

5%8.

92%

10.7

1%10

.75%

Vuna

ni F

und

Man

ager

s C

PI+

5

9.46

%N

/A14

.71%

10.5

8%13

.09%

10.2

9%10

.85%

11.2

0%*

*12

.36%

22.7

2%6.

54%

15.0

2%14

.53%

Mar

ket S

tatis

tics

C

ombi

natio

n of

old

CP

IX a

nd n

ew C

PI

5.80

%5.

58%

5.29

%6.

20%

6.00

%5.

35%

5.60

%6.

12%

3.58

%5.

09%

Con

sum

er P

rice

Infla

tion

(Old

/New

com

bine

d C

PI)

5.80

%5.

58%

5.29

%6.

12%

5.99

%5.

35%

5.60

%6.

12%

3.58

%4.

79%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et c

ode:

AE

CP

I]5.

80%

5.58

%5.

29%

6.04

%5.

55%

5.35

%5.

60%

6.12

%3.

58%

5.83

%

STE

FI5.

90%

5.55

%5.

86%

7.14

%7.

38%

5.18

%5.

55%

5.73

%6.

93%

9.13

%N

umbe

r of P

artic

ipan

ts36

3231

2818

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

85

SECTION 3



Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Cal

enda

r Yea

r Ret

urns

1 Ye

ar3

Year

s5

Year

s7

Year

s10

Yea

rs20

1320

1220

1120

1020

09Po

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kPo

rtfo

lioB

ench

mar

kH

eadl

ine

CPI

+ 6

%

Cad

iz E

quity

Lad

der F

und

-1.8

9%N

/A2.

13%

11.5

8%3.

00%

11.2

9%9.

95%

12.1

2%*

*0.

73%

7.78

%0.

29%

8.50

%*

Cor

onat

ion

Abs

olut

e9.

91%

N/A

16.1

9%11

.58%

14.6

9%11

.29%

13.0

7%12

.20%

16.1

1%12

.00%

21.2

0%17

.74%

7.73

%17

.45%

20.1

5%

Inve

stec

Opp

ortu

nity

10

.46%

N/A

15.7

3%11

.58%

14.5

3%11

.29%

12.6

8%12

.20%

15.8

7%12

.00%

16.2

3%20

.72%

12.5

9%12

.94%

21.8

4%

Mom

entu

m A

M (C

PI+

6% G

loba

l)10

.01%

N/A

**

**

**

**

**

**

*

Pru

dent

ial D

omes

tic In

flatio

n P

lus

6%13

.74%

N/A

17.1

7%11

.58%

15.8

6%11

.29%

13.9

9%12

.12%

16.1

1%12

.00%

13.1

1%25

.04%

9.97

%18

.03%

17.1

9%

Pru

dent

ial G

loba

l Infl

atio

n P

lus

6%

13.7

3%N

/A18

.59%

11.5

8%16

.17%

11.2

9%13

.60%

12.1

2%15

.20%

11.9

9%20

.57%

21.6

2%11

.67%

13.5

9%12

.45%

SIM

CP

I + 6

%10

.31%

N/A

13.1

3%11

.58%

12.5

8%11

.29%

11.1

8%12

.12%

**

14.1

5%14

.97%

8.14

%15

.52%

17.8

9%

STA

NLI

B A

bsol

ute

Plu

s Fu

nd11

.13%

N/A

13.0

5%11

.58%

12.5

1%11

.29%

11.4

5%12

.12%

**

15.4

0%12

.67%

9.33

%14

.12%

18.5

7%

Mar

ket S

tatis

tics

C

ombi

natio

n of

old

CP

IX a

nd n

ew C

PI*

5.80

%5.

58%

5.29

%6.

20%

6.00

%5.

35%

5.60

%6.

12%

3.58

%5.

09%

Con

sum

er P

rice

Infla

tion

(Old

/New

co

mbi

ned

CP

I)5.

80%

5.58

%5.

29%

6.12

%5.

99%

5.35

%5.

60%

6.12

%3.

58%

4.79

%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et c

ode:

AE

CP

I]5.

80%

5.58

%5.

29%

6.04

%5.

55%

5.35

%5.

60%

6.12

%3.

58%

5.83

%

Con

sum

er P

rice

Infla

tion

excl

udin

g O

ER

[I-

Net

cod

e: A

EC

PIX

U]

5.99

%5.

73%

5.42

%6.

22%

6.01

%5.

47%

5.74

%6.

37%

3.57

%5.

08%

STE

FI5.

90%

5.55

%5.

86%

7.14

%7.

38%

5.18

%5.

55%

5.73

%6.

93%

9.13

%

Num

ber o

f Par

ticip

ants

87

77

47

77

76

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

86




1 Ye

ar3

Year

s5

Year

s

Vola

tility

%

Posi

tive

Mon

ths

Wor

st

Mon

thM

axim

um

Dra

wdo

wn

3 Ye

ar

Ret

urn

(p.a

.)Vo

latil

ity%

Po

sitiv

e M

onth

s

Wor

st

Mon

thM

axim

um

Dra

wdo

wn

5 Ye

ar

Ret

urn

(p.a

.)Vo

latil

ity%

Po

sitiv

e M

onth

s

Wor

st

Mon

thM

axim

um

Dra

wdo

wn

Hea

dlin

e C

PI +

3%

AB

SA

Ass

et M

anag

emen

t Abs

olut

e C

PI +

3%3.

46%

91.6

7%-1

.88%

-1.8

8%9.

88%

3.11

%86

.11%

-1.8

8%-1

.88%

9.85

%2.

61%

88.3

3%-1

.88%

-1.8

8%C

adiz

Infla

tion

Plu

s 3

3.92

%75

.00%

-2.0

0%-2

.97%

9.93

%3.

76%

80.5

6%-2

.00%

-2.9

7%10

.47%

3.90

%*

**

Cor

onat

ion

Infla

tion

Plu

s Fu

nd2.

82%

83.3

3%-1

.10%

-1.1

0%12

.54%

3.45

%88

.89%

-2.2

8%-2

.28%

12.7

7%2.

97%

**

*M

omen

tum

MoM

Rea

l Ret

urn

3.22

%83

.33%

-1.0

2%-1

.02%

9.40

%3.

81%

77.7

8%-2

.55%

-2.5

5%7.

95%

3.32

%75

.00%

-2.5

5%-2

.55%

Pre

scie

nt P

ositi

ve R

etur

n M

edic

al A

id F

und

3.27

%75

.00%

-0.9

2%-0

.92%

9.60

%4.

17%

75.0

0%-1

.94%

-1.9

4%8.

21%

3.63

%73

.33%

-1.9

4%-1

.94%

Pre

scie

nt P

ositi

ve R

etur

n Fu

nd3.

03%

83.3

3%-1

.34%

-1.3

4%8.

81%

4.03

%77

.78%

-2.0

6%-2

.06%

7.54

%3.

42%

75.0

0%-2

.06%

-2.0

6%S

IM A

bsol

ute

1.98

%91

.67%

-0.5

9%-0

.59%

10.0

4%1.

76%

91.6

7%-0

.59%

-0.5

9%10

.73%

2.03

%91

.67%

-0.5

9%-0

.59%

SIM

Abs

olut

e R

etur

n In

com

e Fu

nd1.

45%

91.6

7%-0

.36%

-0.3

6%7.

59%

1.04

%97

.22%

-0.3

6%-0

.36%

8.42

%1.

15%

96.6

7%-0

.36%

-0.3

6%Ta

quan

ta A

bsol

ute

2.47

%75

.00%

-1.3

4%-1

.53%

4.82

%1.

63%

86.1

1%-1

.34%

-1.5

3%6.

30%

1.43

%91

.67%

-1.3

4%-1

.53%

Hea

dlin

e C

PI +

4%

AB

SA

Ass

et M

anag

emen

t Abs

olut

e G

loba

l CP

I +4

%2.

96%

83.3

3%-1

.98%

-1.9

8%12

.63%

3.20

%83

.33%

-1.9

8%-1

.98%

12.2

4%3.

05%

**

*

AB

SA

Ass

et M

anag

emen

t Abs

olut

e D

omes

tic

CP

I+4%

3.85

%91

.67%

-1.4

0%-1

.40%

11.9

7%3.

59%

88.8

9%-1

.68%

-1.6

8%*

*90

.00%

-1.6

8%-1

.68%

Arg

on A

bsol

ute

Ret

urn

3.57

%83

.33%

-1.1

4%-1

.14%

13.3

2%3.

77%

80.5

6%-1

.60%

-1.6

0%11

.52%

4.04

%78

.33%

-1.6

7%-1

.67%

Inve

stm

ent S

olut

ions

Sta

ble

Focu

s3.

43%

83.3

3%-1

.41%

-1.4

1%10

.17%

3.52

%83

.33%

-2.3

2%-2

.32%

9.50

%2.

97%

86.6

7%-2

.32%

-2.3

2%M

omen

tum

MoM

Abs

olut

e S

trate

gies

2.86

%75

.00%

-0.4

6%-0

.85%

8.24

%4.

18%

75.0

0%-3

.36%

-3.3

6%7.

33%

3.86

%70

.00%

-3.3

6%-3

.36%

Mer

genc

e C

PI +

4%

Fun

d3.

50%

75.0

0%-1

.42%

-1.4

2%*

**

*O

MIG

Cap

ital B

uild

er2.

58%

83.3

3%-0

.69%

-0.6

9%9.

35%

3.16

%80

.56%

-1.9

4%-1

.94%

7.54

%3.

35%

73.3

3%-1

.96%

-1.9

6%O

MIG

Mac

roS

olut

ions

Sta

ble

Gro

wth

Fun

d1.

79%

91.6

7%-0

.26%

-0.2

6%13

.99%

3.24

%91

.67%

-2.2

3%-2

.23%

12.5

5%3.

50%

88.3

3%-2

.23%

-2.2

3%

Hea

dlin

e C

PI +

5%

Cad

iz In

flatio

n +

5%

5.44

%58

.33%

-2.1

8%-4

.09%

11.6

7%5.

63%

72.2

2%-2

.29%

-4.0

9%12

.02%

6.08

%73

.33%

-2.7

1%-4

.09%

Cor

onat

ion

Abs

olut

e 3.

98%

75.0

0%-1

.49%

-1.4

9%12

.59%

4.92

%77

.78%

-2.9

9%-2

.99%

12.7

4%5.

29%

73.3

3%-2

.99%

-2.9

9%Fo

ord

Abs

olut

e4.

39%

83.3

3%-2

.17%

-2.1

7%20

.49%

7.31

%80

.56%

-3.7

2%-3

.72%

17.2

8%7.

74%

75.0

0%-4

.36%

-5.0

2%In

vest

men

t Sol

utio

ns R

eal R

etur

n Fo

cus

Loca

l4.

15%

83.3

3%-1

.94%

-1.9

4%11

.62%

4.11

%83

.33%

-2.5

3%-2

.53%

10.6

2%3.

89%

80.0

0%-2

.53%

-2.5

3%In

vest

men

t Sol

utio

ns R

eal R

etur

n Fo

cus

Por

tfolio

2.38

%91

.67%

-0.4

8%-0

.48%

12.7

2%4.

14%

83.3

3%-2

.94%

-2.9

4%11

.19%

3.67

%81

.67%

-2.9

4%-2

.94%

JM B

US

HA

Abs

olut

e A

llCla

ss

7.23

%75

.00%

-3.6

2%-3

.62%

16.0

4%6.

04%

80.5

6%-3

.62%

-3.6

2%14

.14%

6.21

%75

.00%

-3.6

2%-3

.62%

Mer

genc

e C

PI +

5% F

und

4.40

%83

.33%

-1.7

9%-1

.79%

12.3

0%4.

33%

80.5

6%-2

.56%

-2.5

6%10

.53%

4.78

%68

.33%

-2.5

6%-3

.00%

Mom

entu

m A

M C

PI+

5% G

loba

l Fun

d5.

23%

91.6

7%-1

.09%

-1.0

9%13

.55%

4.20

%86

.11%

-2.6

8%-2

.68%

12.5

3%4.

92%

78.3

3%-2

.68%

-3.6

4%O

MIG

Wea

lth D

efen

der

3.03

%83

.33%

-0.8

6%0.

00%

**

**

**

**

**

Pru

dent

ial D

omes

tic R

eal R

etur

n P

lus

5%6.

62%

83.3

3%-3

.75%

-3.7

5%*

**

**

**

**

*P

rude

ntia

l Glo

bal I

nflat

ion

Plu

s 5%

3.44

%91

.67%

-1.6

3%-1

.63%

17.2

5%4.

82%

88.8

9%-3

.57%

-3.5

7%15

.42%

4.69

%85

.00%

-3.5

7%-3

.57%

RE

CM

Bal

ance

d Fu

ll D

iscr

etio

n C

ompo

site

7.36

%41

.67%

-3.4

0%0.

00%

**

**

**

**

**

SIM

CP

I + 5

%2.

83%

100.

00%

0.30

%0.

00%

11.9

7%2.

82%

97.2

2%-1

.36%

-1.3

6%11

.71%

3.25

%90

.00%

-1.3

6%-1

.36%

SIM

CP

I + 5

% G

loba

l1.

26%

83.3

3%-0

.99%

-0.9

9%13

.47%

2.91

%88

.89%

-1.0

3%-1

.03%

12.2

2%3.

14%

83.3

3%-1

.03%

-1.0

3%S

MM

Abs

olut

e R

etur

n2.

05%

91.6

7%-0

.07%

-0.0

7%14

.33%

4.59

%83

.33%

-2.2

9%-2

.29%

12.0

8%4.

18%

80.0

0%-2

.29%

-2.2

9%S

TAN

LIB

AM

Abs

olut

e3.

40%

75.0

0%-1

.31%

-1.3

1%10

.25%

4.06

%83

.33%

-1.5

6%-1

.56%

9.06

%3.

99%

75.0

0%-1

.56%

-1.5

6%S

TAN

LIB

Dom

estic

Abs

olut

e R

etur

n4.

45%

75.0

0%-1

.86%

-2.3

9%11

.09%

4.17

%80

.56%

-1.8

6%-2

.39%

9.56

%4.

16%

75.0

0%-1

.86%

-2.3

9%S

Ym

mE

TRY

Abs

olut

e D

efen

sive

Fun

d1.

61%

91.6

7%-0

.14%

-0.1

4%14

.16%

3.91

%88

.89%

-1.8

1%-1

.81%

12.4

0%3.

64%

86.6

7%-1

.81%

-1.8

1%Vu

nani

Fun

d M

anag

ers

CP

I+ 5

3.

77%

75.0

0%-1

.46%

-1.4

6%14

.71%

5.36

%77

.78%

-3.6

1%-3

.61%

13.0

9%5.

71%

73.3

3%-3

.61%

-3.6

1%

Mar

ket I

ndic

es &

Sta

tistic

sC

ombi

natio

n of

old

CP

IX a

nd n

ew C

PI

1.47

%5.

58%

1.32

%5.

29%

1.21

%C

onsu

mer

Pric

e In

flatio

n (O

ld/N

ew c

ombi

ned

CP

I)1.

47%

5.58

%1.

32%

5.29

%1.

21%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et

code

: AE

CP

I]1.

47%

5.58

%1.

32%

5.29

%1.

21%

STE

FI0.

14%

5.55

%0.

13%

5.86

%0.

19%

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

87

SECTION 3



Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

1 Ye

ar

3 Ye

ars

5 Ye

ars

Vola

tility

% p

ositi

ve

mon

ths

Wor

st

mon

thM

axim

um

draw

dow

n3

Year

R

etur

n (p

.a.)

Vola

tility

% P

ositi

ve

mon

ths

Wor

st

mon

thM

axim

um

draw

dow

n5

Year

R

etur

n (p

.a.)

Vola

tility

% P

ositi

ve

mon

ths

Wor

st

mon

thM

axim

um

draw

dow

n

Hea

dlin

e C

PI +

6%

C

adiz

Equ

ity L

adde

r Fun

d7.

65%

50.0

0%-4

.58%

-7.9

6%2.

13%

8.55

%52

.78%

-5.8

1%-1

2.05

%3.

00%

8.58

%50

.00%

-5.8

1%-1

2.05

%C

oron

atio

n A

bsol

ute

2.87

%83

.33%

-0.7

5%-0

.75%

16.1

9%5.

70%

83.3

3%-3

.58%

-3.5

8%14

.69%

5.28

%80

.00%

-3.5

8%-3

.58%

Inve

stec

Opp

ortu

nity

2.

99%

83.3

3%-0

.75%

-0.7

5%15

.73%

5.39

%83

.33%

-3.0

5%-3

.05%

14.5

3%5.

48%

83.3

3%-3

.05%

-3.0

5%M

omen

tum

AM

(CP

I+6%

Glo

bal)

2.81

%91

.67%

-0.8

5%0.

00%

**

**

**

**

**

Pru

dent

ial D

omes

tic In

flatio

n P

lus

6%6.

57%

83.3

3%-3

.54%

-3.5

4%17

.17%

6.17

%83

.33%

-3.5

4%-3

.54%

15.8

6%6.

57%

80.0

0%-3

.54%

-3.5

4%P

rude

ntia

l Glo

bal I

nflat

ion

Plu

s 6%

3.

37%

91.6

7%-1

.47%

-1.4

7%18

.59%

4.90

%91

.67%

-3.4

0%-3

.40%

16.1

7%5.

02%

83.3

3%-3

.40%

-3.4

0%S

IM C

PI +

6%

3.39

%83

.33%

-1.2

0%-1

.20%

13.1

3%3.

48%

88.8

9%-1

.44%

-1.4

4%12

.58%

4.25

%80

.00%

-1.4

4%-1

.70%

STA

NLI

B A

bsol

ute

Plu

s Fu

nd3.

05%

83.3

3%-0

.70%

-0.7

0%13

.05%

4.31

%77

.78%

-1.2

0%-1

.20%

12.5

1%4.

76%

71.6

7%-1

.23%

-1.6

1%

Mar

ket S

tatis

tics

C

ombi

natio

n of

old

CP

IX a

nd n

ew C

PI

1.47

%5.

58%

1.32

%5.

29%

1.21

%C

onsu

mer

Pric

e In

flatio

n (O

ld/N

ew c

ombi

ned

CP

I)1.

47%

5.58

%1.

32%

5.29

%1.

21%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et c

ode:

AE

CP

I]1.

47%

5.58

%1.

32%

5.29

%1.

21%

STE

FI0.

14%

5.55

%0.

13%

5.86

%0.

19%

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

88



Volatility vs Return Scatterplot for Absolute Return Managers – All categories for the 3 Years ended 31 December 2014

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

21.0%

18.0%

19.0%

20.0%

Ret

urn

(p.a

.)

0.0% 1.0% 2.0% 4.0%3.0% 6.0% 7.0% 8.0% 9.0%5.0%


Foord Absolute

Prudential Global Inflation Plus 6%

Prudential Global Inflation Plus 5%

Argon Absolute ReturnSYmmETRY Absolute Defensive Fund

Prudential Domestic Inflation Plus 6%

JM BUSHA Absolute AllClassCoronation Absolute

Coronation Inflation Plus Fund

OMIG MacroSolutions Stable Growth Fund

Investec Opportunity

Vunani Fund Managers CPI+ 5SMM Absolute Return

Cadiz Equity Ladder Fund

Taquanta Absolute

SIM Absolute Return Income Fund

Momentum MoM Absolute Strategies

Momentum MoM Real Return

Cadiz Inflation Plus 3

Prescient Positive Return Medical Aid Fund

STANLIB Absolute

STANLIB Domestic Absolute ReturnInvestment Solutions Real Return Focus Local

Cadiz Inflation + 5%Mergence CPI +5% Fund

Investment Solutions Real Return Focus Portfolio

Global Fund

Coronation AbsoluteSTANLIB Absolute Plus Fund

Prescient Positive Return Fund

SIM Absolute

SIM CPI +5%

SIM CPI +6%

SIM CPI +5% Global

OMIG Capital Builder

ABSA Asset Management Absolute CPI +3%

ABSA Asset Management Absolute Global CPI +4%

ABSA Asset Management Absolute Domestic CPI +4%

Investment Solutions Stable Focus

89

SECTION 3

Composite Dispersion (Standard Deviation) of Absolute Return Manager Watch™ Survey

Headline CPI + 3% Minimum Return Maximum Return





Cadiz Inflation Plus 3 3.96% 4.83% 4.52% 0.31% 0.49% *Prescient Positive Return Fund 6.72% 7.65% 7.18% 0.23% 0.64% 0.39%Prescient Positive Return Medical Aid Fund 8.23% 8.38% 8.34% 0.05% 0.06% 0.03%

SIM Absolute 8.55% 8.70% 8.61% 0.06% 0.08% 0.55%SIM Absolute Return Income Fund 7.21% 7.71% 7.48% 0.17% 0.03% 0.54%Taquanta Absolute 3.21% 5.11% 3.33% 0.46% 0.12% 0.10%


Headline CPI + 3%

Cadiz Inflation Plus 3

Prescient Positive Return Fund

Prescient Positive Return Medical Aid Fund

SIM Absolute

SIM Absolute Return Income Fund

Taquanta Absolute

0.05%

0.17%

0.46%

0.00% 0.05% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50%0.10%

0.31%

0.23%

0.06%






ABSA Asset Management Absolute Global CPI +4% 10.36% 12.02% 11.60% 0.64% 0.99% 0.67%

ABSA Asset Management Absolute Domestic CPI+4% 9.59% 10.99% 10.45% 0.37% 0.38% *

Argon Absolute Return 11.58% 11.98% 11.71% 0.15% 0.03% *Mergence CPI + 4% Fund 6.45% 9.91% 7.82% 0.98% 2.15% *


Headline CPI + 4%

ABSA Asset Management Absolute Global CPI +4%

ABSA Asset Management Absolute Domestic CPI+4%

Argon Absolute Return

Mergence CPI + 4% Fund 0.98%

0.15%

0.64%

0.00% 0.20% 0.40% 0.60% 0.80% 1.20%1.00%

0.37%

90


Composite Dispersion (Standard Deviation) of Absolute Return Manager Watch™ Survey






Coronation Absolute 9.36% 10.33% 9.81% 0.15% 0.17% 0.19%Foord Absolute 10.33% 12.66% 11.41% 0.99% 0.52% 0.40%JM BUSHA Absolute All Class 10.21% 12.78% 12.30% 1.04% 0.72% 0.29%Mergence CPI + 5% Fund 8.99% 9.14% 9.06% 0.07% 0.07% 0.72%RECM Balanced Full Discretion Composite -2.04% -1.71% -1.82% 0.12% 0.17% *

SIM CPI + 5% 9.30% 9.90% 9.66% 0.20% 0.48% 0.99%SIM CPI + 5% Global 9.65% 10.29% 9.97% 0.13% 0.62% 1.01%Vunani Fund Managers CPI + 5% 8.30% 9.90% 9.10% 0.80% * *


Headline CPI + 5%

Coronation Absolute

Foord Absolute

JM BUSHA Absolute All Class

Mergence CPI + 5% Fund

RECM Balanced Full Discretion Composite

SIM CPI + 5%

SIM CPI + 5% Global

Vunani Fund Managers CPI + 5%

1.04%

0.12%

0.13%

0.20%

0.80%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20%

0.15%

0.99%

0.07%






Investec Opportunity 9.47% 10.97% 10.41% 0.36% 0.27% 0.13%Prudential Domestic Inflation Plus 6% 12.78% 14.13% 14.01% 0.57% * *

SIM CPI + 6% 10.31% 10.40% 10.35% 0.05% 0.52% *


Headline CPI + 6%

Investec Opportunity

Prudential Domestic Inflation Plus 6%

SIM CPI + 6%

0.57%

0.05%

0.00% 0.10% 0.20% 0.30% 0.40% 0.70%0.60%0.50%

0.36%

91

SECTION 3


1 Year 3 Years (p.a.) 5 Years (p.a.)

Classification Fund Size (R m) Fund Rank Return

Benchmark Fund Rank Return Benchmark Fund Rank Return

BenchmarkBalancedMomentum MoM Supernation Fund Pooled 52.9 11.16% 2 12.55% 13.79% 2 15.90% 12.67% 2 14.14%

STANLIB Wealth Development Fund Pooled 83.9 12.79% 1 7.75% 17.61% 1 7.72% 18.16% 1 6.47%

EquityElement Earth Equity Unit Trust 269.1 1.27% 4 10.49% 3.96% 4 20.13% 5.37% 4 17.00%

Futuregrowth Development Equity Composite Pooled 1 637.9 19.18% 1 15.80% 14.07% 3 15.64% 13.44% 3 15.31%

Oasis Crescent Equity Fund Unit Trust 6 365.8 9.58% 3 5.28% 17.64% 2 11.23% 13.70% 2 10.79%

Oasis Crescent International Feeder Fund Unit Trust 1 086.5 16.44% 2 12.06% 27.30% 1 20.36% 17.51% 1 14.12%

Absolute ReturnCadiz High Impact Bond Fund Segregated 175.3 10.77% 1 8.80% 9.53% 1 8.92% 10.61% 1 10.26%

Investec TDI Fund Pooled 45.9 8.53% 2 10.80% 9.07% 2 10.58% 10.08% 2 10.29%

Alternative OMIG Alternative Investments IDEAS Fund Pooled 6 353.9 17.91% 1 12.80% 16.55% 1 12.58% 16.56% 1 12.29%

Fixed InterestCommunity Growth Gilt Fund Unit Trust 254.7 9.94% 2 9.49% 9.34% 2 8.09% 10.63% 2 9.32%

Futuregrowth Infrastructure & Development Bond Composite

Pooled 9 451.9 12.81% 1 10.14% 11.85% 1 8.74% 13.14% 1 9.97%

PropertyFuturegrowth Community Property Composite Pooled 4 710.9 9.00% 1 9.80% 10.16% 1 9.58% 9.34% 1 9.22%

Statistics & Market IndicesAlexander Forbes SA Best Investment View Average

10.40% 14.88% 13.89%

Alexander Forbes SA Equity Average 10.13% 18.59% 16.25%

Alexander Forbes SA Bond Average 7.53% 7.95% 9.61%

Combination of old CPIX and new CPI# 5.80% 5.58% 5.29%

Consumer Price Inflation (Old/New combined CPI)#

5.80% 5.58% 5.29%

Consumer Price Inflation excluding OER [I-Net code: AECPIXU]

5.99% 5.73% 5.42%

Consumer Price Inflation (Headline CPI) [I-Net code: AECPI]

5.80% 5.58% 5.29%

All inflation figures in this table are lagged by 1 month.

Investment data to the end of December 2014

92



Calendar Year Returns Volatility2013 2012 2011 2010 2009

Volatility RankPortfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark

BalancedMomentum MoM Supernation Fund 11.67% 13.14% 18.68% 22.26% 5.56% 6.06% 16.73% 17.30% 20.59% 20.28% 6.55% 1

STANLIB Wealth Development Fund 0.72% 7.83% 43.20% 7.56% 1.71% 5.80% 39.20% 3.48% 4.92% 6.33% 12.53% 2

EquityElement Earth Equity 1.11% 21.43% 9.72% 29.21% 2.09% 4.77% 13.26% 20.73% 26.28% 31.53% 10.60% 3

Futuregrowth Development Equity Composite 10.44% 16.03% 12.77% 15.39% 13.67% 16.11% 11.35% 13.55% 13.13% 16.37% 6.35% 1

Oasis Crescent Equity Fund 23.63% 15.24% 20.18% 13.44% 3.19% 2.87% 13.11% 17.92% 19.63% 21.07% 8.92% 2

Oasis Crescent International Feeder Fund 54.08% 38.63% 14.98% 12.23% 15.47% 14.34% -5.92% -2.92% 4.15% 3.32% 11.62% 4

Absolute ReturnCadiz High Impact Bond Fund 3.46% 9.32% 14.66% 8.64% 9.48% 9.25% 15.07% 15.43% -0.38% -0.99% 4.98% 2

Investec TDI Fund 6.06% 10.65% 12.73% 10.93% 6.56% 11.38% 16.93% 8.64% 22.31% 11.62% 4.78% 1

Alternative OMIG Alternative Investments IDEAS Fund 18.86% 11.79% 12.98% 12.71% 17.95% 13.07% 15.19% 10.49% 6.56% 13.72% 7.53% 1

Fixed InterestCommunity Growth Gilt Fund 1.78% 0.03% 16.83% 15.31% 8.96% 8.17% 16.33% 14.28% -0.65% -1.57% 6.67% 2


3.66% 0.64% 19.66% 15.99% 11.40% 8.82% 18.92% 14.96% 1.58% -0.99% 6.31% 1

PropertyFuturegrowth Community Property Composite 10.38% 10.41% 11.12% 10.74% 5.09% 8.73% 11.20% 6.80% 8.22% 11.25% 1.38% 1

Statistics & Market IndicesAlexander Forbes SA Best Investment View Average

14.60% 19.83% 6.84% 18.29% 23.66% 6.09%

Alexander Forbes SA Equity Average 20.64% 25.52% 5.93% 20.18% 30.61% 8.82%

Alexander Forbes SA Bond Average 3.01% 13.58% 10.32% 13.99% 3.25% 4.28%

Combination of old CPIX and new CPI# 5.35% 5.60% 6.12% 3.58% 5.09% 1.32%

Consumer Price Inflation (Old/New combined CPI)#

5.35% 5.60% 6.12% 3.58% 4.79% 1.32%


5.47% 5.74% 6.37% 3.57% 5.08% 1.42%


5.35% 5.60% 6.12% 3.58% 5.83% 1.32%

All inflation figures in this table are lagged by 1 month.


93

SECTION 3


Volatility vs Return – TDI Fixed Interest Portfolios 3 years ended 31 December 2014

0.085%

5.4% 5.6% 6.0% 6.4% 6.8%5.8% 6.2% 7.0%6.6%

0.09%

0.095%

0.1%

0.105%

0.11%

0.115%

0.125%

0.12%

Ann

ualis

ed R

etur

n

Annualised Risk

Community Growth Gilt Fund


Volatility vs Return – TDI Balanced, Equity, Absolute, Alternative & Property Portfolios 3 years ended 31 December 2014

3.0%

1.0% 5.0% 9.0% 13.0%11.0% 17.0%15.0%

7.0%

11.0%

15.0%

19.0%

23.0%

Ann

ualis

ed R

etur

n

Annualised Risk

Investec TDI Fund

Element Earth Equity

Cadiz High Impact Bond Fund

Futuregrowth Community Property Fund

OMIG Alternative Investment IDEAS Fund

Oasis Crescent Equity Fund

Alexander Forbes SA Best Investment View Average

STANLIB Wealth Development Fund

Oasis Crescent International Feeder Fund

Alexander Forbes SA Equity Average

Futuregrowth Development Equity Composite

3.0% 7.0%

Momentum/Advantage Supernation Fund

27.0%

94


Fund of Hedge Funds Manager Watch™ Survey

Objective: The portfolios in this survey show the performance of fund of hedge fund managers. FoHF managers select a number of underlying single hedge fund managers to provide diversification across a range of alternative strategies.


Investment Manager

Fund Status Open / Closed

Inception Date

Fund Size (R m)

Return Objectives1 Year 3 Years 5 Years Calendar

Year 2013Calendar Year 2012

Calendar Year 2011

Multi Strategy

Alpha Cautious Hedge Fund Open Mar-04 147.1CPI + (4% - 6%) net of fees (previously CPIX)

6.51% 7.69% 6.85% 7.29% 9.30% 4.24%

Blue Ink Yellowwood Open Nov-02 1 187.1 Cash + 2-3% 8.48% 7.84% 7.99% 6.31% 8.76% 6.92%

Blue Ink Meteor Fund of Hedge Funds Open Aug-01 102.8 15% net of fees 8.72% 8.79% 8.41% 7.52% 10.13% 7.29%

Caveo Moderate Portfolio Open Mar-00 1 352.5 CPI + 5% net of fees 9.38% 10.48% 9.99% 9.87% 12.23% 9.68%

Caveo Performance Portfolio Open Jan-06 332.6 35%Equities - 65% Cash 13.72% 14.48% 12.67% 14.31% 15.41% 10.23%

Caveo Stable Portfolio Open Jan-06 708.8 CPI + 3% net of fees 7.88% 9.36% 8.64% 8.68% 11.55% 7.62%

Momentum ZAR Diversified Fund Open Nov-07 2 198.3 STeFI + 4% net of fees 8.99% 8.07% 7.97% 7.30% 7.94% 7.71%

Alpha Saturn Fund Open Jun-07 81.6 STeFI + 5% 8.51% 9.06% 8.12% 8.36% 10.32% 7.65%

Sygnia Absolute Fund Of Hedge Funds Open Nov-03 193.8 CPI +3% 9.01% 11.83% 10.40% 14.41% 12.14% 9.23%

Sygnia All-Star Fund of Hedge Funds Open Dec-06 287.5 CPI + 5% 12.17% 16.94% * 21.09% 17.74% 11.01%

Sygnia Signature Fund Of Hedge Funds Open Nov-03 1 325.2 CPI + 5% 10.89% 13.86% 11.91% 16.79% 13.97% 10.68%

Specialist MandatesAlpha Equity Hedge Fund Open Nov-07 493.9 JSE All Share Index 13.55% 15.62% * 16.91% * *

Alpha Fixed Income Blend of Funds Open Jan-06 57.2 CPI + 3% net of fees 10.74% 4.24% 6.25% -6.25% 9.09% 5.79%

Blue Ink Equity Aggressive Open Jan-09 643.3 SteFi 11.09% 13.28% * 17.58% 11.29% 9.61%

Blue Ink Fixed Income Arbitrage Open Jan-09 337.9 SteFi 16.47% 8.02% * -4.25% 13.01% 9.49%

Caveo Focus Portfolio Open Feb-11 1 606.4 65%Swix 35%Stefi 12.60% 16.23% * 19.98% * *

Edge Iconic Matador Fund Open May-04 27.2 STeFI + 4% 10.22% * * 19.21% 14.72% 11.21%

TriAlpha Enhanced Fixed Income Fund Open Aug-07 291.5 STeFI + 2% 8.81% * * 3.48% * *

27four Alternative Equity Fund of Hedge Funds Open Feb-09 1 090.2 STeFI + 4% 9.48% 14.12% * 17.66% 15.38% *

StatisticsHighest 16.47% 16.94% 12.67% 21.09% 17.74% 11.21%

Median 9.48% 10.48% 8.41% 9.87% 11.85% 9.23%

Average 10.38% 11.17% 9.02% 10.85% 12.06% 8.56%

Lowest 6.51% 4.24% 6.25% -6.25% 7.94% 4.24%

Number of participants 19 17 11 19 16 15

Fund Size Total

Market Statistics FTSE/JSE All Share Index 10.88% 19.48% 15.79% 21.43% 26.68% 2.57%

STeFI 5.90% 5.55% 5.86% 5.18% 5.55% 5.73%

All Bond Index 10.15% 8.74% 9.97% 0.64% 15.99% 8.82%

Consumer Price Inflation (Old/New combined CPI)* 5.80% 5.58% 5.29% 5.35% 5.60% 6.12%

Combination of old CPIX and new CPI* 5.80% 5.58% 5.29% 5.35% 5.60% 6.12%

Consumer Price Inflation (Headline CPI) [I-Net code: AECPI] 5.80% 5.58% 5.29% 5.35% 5.60% 6.12%

Consumer Price Inflation excluding OER [I-Net code: AECPIXU] 5.99% 5.73% 5.42% 5.47% 5.74% 6.37%

* Inflation figures in this table are lagged by one month

95

SECTION 3

Fund of Hedge Funds Manager Watch™ Survey (continued)

Objective: The portfolios in this survey show the performance of fund of hedge fund managers. FoHF managers select a number of underlying single hedge fund managers to provide diversification across a range of alternative strategies.


Quantitative Analysis

Investment Manager

1 Year 3 Years

Percentage of positive months Worst month Standard

DeviationPercentage of positive months Worst month Max

DrawdownStandard Deviation

Multi Strategy

Alpha Cautious Hedge Fund 91.67% -0.09% 1.48% 91.67% -1.39% -1.39% 1.82%

Blue Ink Yellowwood 91.67% -0.20% 1.76% 88.89% -1.11% 0.00% 2.03%

Blue Ink Meteor Fund of Hedge Funds 91.67% -0.54% 1.98% 91.67% -2.97% -2.97% 3.00%

Caveo Moderate Portfolio 91.67% -1.27% 3.28% 88.89% -1.27% -1.27% 2.50%

Caveo Performance Portfolio 83.33% -0.09% 3.11% 86.11% -1.56% -1.56% 3.67%

Caveo Stable Portfolio 91.67% -1.44% 2.81% 94.44% -1.44% -1.44% 2.06%

Momentum ZAR Diversified Fund 83.33% -0.49% 2.72% 83.33% -0.62% -0.62% 2.45%

Alpha Saturn Fund 91.67% -0.08% 2.05% 83.33% -1.51% 0.00% 2.43%

Sygnia Absolute Fund Of Hedge Funds 91.67% -0.62% 2.38% 94.44% -1.04% -1.04% 2.34%

Sygnia All-Star Fund of Hedge Funds 91.67% -1.58% 3.67% 88.89% -1.58% 0.00% 3.90%

Sygnia Signature Fund Of Hedge Funds 91.67% -0.70% 2.78% 94.44% -0.73% -0.73% 2.71%

Specialist MandatesAlpha Equity Hedge Fund 83.33% -0.08% 3.07% 88.89% -1.33% 0.00% 3.83%

Alpha Fixed Income Blend of Funds 91.67% -0.33% 2.46% 72.22% -4.71% -8.97% 4.53%

Blue Ink Equity Aggressive 83.33% -1.19% 4.43% 77.78% -3.03% 0.00% 5.33%

Blue Ink Fixed Income Arbitrage 75.00% -0.68% 4.28% 63.89% -5.22% 0.00% 6.48%

Caveo Focus Portfolio 91.67% -1.08% 3.64% 91.67% -1.89% 0.00% 4.39%

Edge Iconic Matador Fund 83.33% -0.52% 3.26% * * * *

TriAlpha Enhanced Fixed Income Fund 100.00% 0.33% 0.95% * * * *

27four Alternative Equity Fund of Hedge Funds 83.33% -0.93% 3.43% 88.89% -1.72% 0.00% 3.84%

StatisticsHighest 100.00% 0.33% 4.43% 94.44% -0.62% 0.00% 6.48%

Median 91.67% -0.54% 2.81% 88.89% -1.51% -0.62% 3.00%

Average 88.60% -0.61% 2.82% 86.44% -1.95% -1.18% 3.37%

Lowest 75.00% -1.58% 0.95% 63.89% -5.22% -8.97% 1.82%

Number of participants 19 19 19 17 17 17 17

Fund Size Total

Market StatisticsFTSE/JSE All Share Index

STeFI

All Bond Index

Consumer Price Inflation (Old/New combined CPI)*

Combination of old CPIX and new CPI*



* Inflation figures in this table are lagged by one month

96


S.A. Property Manager Watch™ Survey

Genera

l in

form

ati

on

GIP

S™

(Ver

ified

/ C

ompl

iant

)B

ench

mar

k D

escr

iptio

nVa

luat

ion

Freq

uenc

y

Cas

h Fl

ow

Freq

uenc

y in

IR

R C

alc

Min

imum

Li

sted

Pr

oper

ty

Allo

catio

n

Max

imum

C

ash

Expo

sure

A

llow

ed

Dis

inve

stm

ent

Not

ice

Perio

dLo

ck-in

Pe

riod

No.

of F

unds

in

Com

posi

tePo

rtfo

lio S

ize

(R m

)

75%

- 10

0% L

iste

d Pr

oper

tyA

BS

A A

sset

Man

agem

ent

Dom

estic

Pro

perty

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly75

%25

%48

hou

rsN

/A1

648

Cat

alys

t FM

Com

posi

te S

A Li

sted

Pro

perty

Inde

x Fu

nds

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly95

%5%

24 h

ours

N/A

148

163

Cor

onat

ion

Pro

perty

Equ

ityV

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly50

%50

%24

hou

rsN

/A1

2 46

1In

vest

ec P

rope

rty E

quity

Fun

dV

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly80

%20

%24

hou

rsN

/A1

5 38

8IS

Pro

perty

Fun

dFT

SE

/JS

E S

A Li

sted

Pro

perty

Dai

lyN

/A85

%15

%24

hou

rsN

/AN

/A36

5M

omen

tum

AM

Pro

perty

Dai

lyD

aily

80%

20%

24 h

ours

N/A

292

6M

omen

tum

MO

M P

rope

rty

Por

tfolio

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly95

%5%

48 h

ours

N/A

N/A

2 43

0

OM

IG Q

uote

d P

rope

rty

Por

tfolio

VFT

SE

/JS

E S

A Li

sted

Pro

perty

Dai

lyN

/A85

%15

%48

hou

rsN

/A1

5 25

2

Pru

dent

ial E

nhan

ced

SA

Pro

perty

Tra

cker

Fun

dV

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly95

%5%

24 h

ours

N/A

35

009

Ses

fikile

Pro

perty

Com

posi

teFT

SE

/JS

E S

A Li

sted

Pro

perty

Dai

lyD

aily

90%

10%

48 h

ours

N/A

318

351

SIM

Pro

perty

Fun

dV

FTS

E/J

SE

SA

List

ed P

rope

rtyD

aily

Dai

ly90

%10

%24

hou

rsN

/A1

5 00

2S

TAN

LIB

Inst

itutio

nal P

rope

rty

Fund

VD

aily

Dai

ly95

%5%

48 h

ours

48 h

ours

14

238

STA

NLI

B P

rope

rty In

com

e Fu

ndFT

SE

/JS

E S

A Li

sted

Pro

perty

Dai

lyD

aily

50%

50%

48 h

ours

48 h

ours

16

594

Tota

l54

828

0% -7

4% L

iste

d Pr

oper

tyFu

ture

grow

th C

omm

unity

P

rope

rty F

und

CP

I + 4

%A

nnua

llyM

onth

ly0%

10%

Up

to 3

yea

rsN

/A1

4 71

1

Tota

l11

4 36

6

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

97

SECTION 3

S.A. Property Manager Watch™ SurveyC

alen

dar Y

ear R

etur

ns20

1320

1220

1120

1020

09

1 Ye

arB

ench

mar

k3

Year

s (p

.a.)

Ben

chm

ark

5 Ye

ars

(p.a

.)B

ench

mar

k7

Year

s (p

.a.)

Ben

chm

ark

10

Year

s (p

.a.)

Ben

chm

ark

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Spec

ialis

t Pro

pert

y

75%

– 1

00%

Lis

ted

Prop

erty

AB

SA

Ass

et

Man

agem

ent

Dom

estic

P

rope

rty

42.3

0%26

.64%

29.0

0%23

.10%

**

**

**

11.2

7%8.

39%

35.5

7%35

.88%

**

**

**

Cat

alys

t FM

C

ompo

site

SA

List

ed P

rope

rty

Inde

x Fu

nds

29.2

6%26

.64%

24.4

4%23

.10%

21.7

9%21

.37%

17.0

8%16

.25%

**

9.81

%8.

39%

35.7

5%35

.89%

8.08

%8.

92%

28.6

9%29

.62%

16.0

5%14

.07%

Cor

onat

ion

Pro

perty

Equ

ity27

.14%

26.6

4%25

.90%

23.0

9%23

.09%

21.3

7%18

.03%

16.2

0%21

.37%

20.0

0%12

.87%

8.39

%39

.07%

35.8

8%10

.23%

8.92

%28

.44%

29.6

2%16

.32%

13.4

7%

Inve

stec

Pro

perty

E

quity

Fun

d28

.43%

26.6

4%25

.04%

23.1

0%22

.24%

21.3

7%17

.12%

16.2

5%23

.03%

21.4

7%9.

86%

8.39

%38

.55%

35.8

8%8.

23%

8.93

%28

.99%

29.6

3%11

.72%

14.0

7%

IS p

rope

rty fu

nd29

.15%

26.6

4%23

.72%

23.1

0%21

.64%

21.3

7%17

.12%

16.2

5%21

.95%

21.4

7%8.

42%

8.39

%35

.25%

35.8

8%9.

36%

8.93

%28

.57%

29.6

2%16

.21%

14.0

7%M

omen

tum

AM

P

rope

rty26

.79%

26.6

4%*

**

**

**

*11

.01%

8.39

%*

**

**

**

*

Mom

entu

m M

oM

Pro

perty

Por

tfolio

29.2

2%26

.64%

**

**

**

**

**

**

**

**

**

OM

IG Q

uote

d P

rope

rty P

ortfo

lio28

.65%

26.6

5%24

.08%

23.1

0%21

.92%

21.3

7%*

**

*9.

69%

8.39

%35

.38%

35.8

9%8.

99%

8.92

%29

.37%

29.6

3%*

*

Pru

dent

ial

Enh

ance

d S

A P

rope

rty T

rack

er

Fund

27.3

3%26

.64%

23.6

0%23

.10%

22.0

3%21

.37%

17.2

7%16

.25%

**

10.0

0%8.

39%

34.8

2%35

.88%

9.74

%8.

93%

30.5

7%29

.62%

15.2

8%14

.07%

Ses

fikile

Pro

perty

C

ompo

site

28.8

5%26

.65%

25.6

2%23

.10%

**

**

**

**

**

**

**

**

SIM

Pro

perty

Fu

nd27

.53%

26.6

4%22

.80%

23.1

0%19

.75%

20.5

6%14

.62%

14.3

3%19

.81%

19.2

8%9.

83%

8.39

%32

.21%

35.8

8%6.

97%

8.93

%24

.32%

25.3

3%15

.31%

12.8

0%

STA

NLI

B

Inst

itutio

nal

Pro

perty

Fun

d27

.99%

26.6

4%24

.03%

23.1

0%22

.06%

21.3

7%17

.52%

16.2

5%22

.39%

21.4

7%9.

47%

8.39

%36

.17%

35.8

8%9.

76%

8.93

%29

.40%

29.6

2%17

.37%

14.0

7%

STA

NLI

B

Pro

perty

Inco

me

Fund

28.5

5%26

.64%

24.3

8%23

.10%

22.3

3%21

.37%

17.9

4%16

.27%

22.9

8%21

.60%

28.5

5%26

.64%

9.63

%8.

39%

36.5

3%35

.88%

10.0

0%8.

93%

29.4

5%29

.62%

0% –

74%

Lis

ted

Prop

erty

Futu

regr

owth

C

omm

unity

P

rope

rty F

und

9.00

%9.

48%

10.1

6%10

.21%

9.34

%9.

22%

9.08

%10

.35%

13.1

5%9.

80%

9.63

%8.

39%

36.5

3%35

.88%

10.0

0%8.

93%

29.4

5%29

.62%

18.4

5%14

.07%

Stat

istic

sH

ighe

st42

.30%

29.0

0%23

.09%

18.0

3%23

.03%

12.8

7%39

.07%

10.2

3%30

.57%

18.4

5%U

pper

Qua

rtile

29.0

7%25

.18%

22.1

9%17

.52%

22.6

8%10

.54%

36.3

5%9.

76%

29.3

9%16

.32%

Med

ian

28.4

9%24

.23%

21.9

7%17

.12%

21.9

5%9.

85%

35.5

7%9.

17%

28.8

4%16

.05%

Aver

age

27.8

7%23

.56%

20.6

2%16

.20%

20.6

7%10

.19%

33.6

7%8.

64%

26.9

0%14

.99%

Low

er Q

uarti

le27

.38%

23.6

9%21

.68%

17.0

8%20

.59%

9.67

%35

.04%

8.12

%28

.47%

15.2

8%Lo

wes

t9.

00%

10.1

6%9.

34%

9.08

%13

.15%

8.42

%11

.12%

5.09

%11

.20%

8.22

%R

ange

33.3

0%18

.83%

13.7

5%8.

94%

9.88

%4.

45%

27.9

4%5.

14%

19.3

7%10

.23%

Num

ber o

f pa

rtici

pant

s 1

4 1

2 1

0 9

7

1

2 1

1 1

0 1

0 9

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

98


S.A. Property Manager Watch™ Survey

Cal

cula

ted

on 3

Yea

r Per

form

ance

Ret

urns

C

alcu

late

d on

5 Y

ear P

erfo

rman

ce R

etur

ns

3 Ye

ar

Ret

urn

Ran

kVo

latil

ity

(Ris

k)R

ank

Act

ive

Ret

urn

Ran

kTr

acki

ng

Erro

rIn

form

atio

n R

atio

Ran

k5

Year

R

etur

n R

ank

Vola

tility

(R

isk)

Ran

kA

ctiv

e R

etur

nR

ank

Trac

king

Er

ror

Info

rmat

ion

Rat

ioR

ank

Spec

ialis

t Pro

pert

y75

% –

100

% L

iste

d Pr

oper

tyA

BS

A A

sset

Man

agem

ent

Dom

estic

Pro

perty

29.0

0%1

13.4

1%9

5.90

%1

4.02

%1.

472

**

**

*

Cat

alys

t FM

Com

posi

te S

A Li

sted

P

rope

rty In

dex

Fund

s24

.44%

414

.39%

41.

34%

41.

03%

1.29

421

.79%

712

.37%

30.

42%

71.

01%

0.42

6

Cor

onat

ion

Pro

perty

Equ

ity25

.90%

213

.15%

102.

81%

22.

12%

1.33

323

.09%

111

.33%

91.

72%

12.

07%

0.83

2In

vest

ec P

rope

rty E

quity

Fun

d25

.04%

314

.76%

11.

94%

31.

20%

1.62

122

.24%

312

.70%

10.

87%

31.

18%

0.73

4In

vest

men

t Sol

utio

ns P

rope

rty

Fund

23.7

2%8

13.5

4%8

0.63

%8

6.03

%0.

109

21.6

4%8

11.7

7%8

0.27

%8

4.84

%0.

068

Om

ig Q

uote

d P

rope

rty P

ortfo

lio24

.08%

613

.94%

60.

98%

61.

87%

0.52

821

.92%

612

.12%

60.

55%

61.

57%

0.35

7P

rude

ntia

l Enh

ance

d S

A P

rope

rty

Trac

ker F

und

23.6

0%9

14.4

1%3

0.50

%9

0.88

%0.

577

22.0

3%5

12.3

2%4

0.66

%5

0.86

%0.

763

Sim

Pro

perty

Fun

d22

.80%

1013

.80%

7-0

.29%

101.

65%

-0.1

810

19.7

5%9

11.8

6%7

-0.8

0%9

1.72

%-0

.47

9S

TAN

LIB

Inst

itutio

nal P

rope

rty

Fund

24.0

3%7

14.2

7%5

0.93

%7

1.31

%0.

716

22.0

6%4

12.2

6%5

0.70

%4

1.11

%0.

625

STA

NLI

B P

rope

rty In

com

e Fu

nd24

.38%

514

.46%

21.

28%

51.

14%

1.12

522

.33%

212

.37%

20.

96%

20.

99%

0.98

1

0% –

74%

Lis

ted

Prop

erty

Futu

regr

owth

Com

mun

ity P

rope

rty

Fund

10.1

6%1.

38%

-0.0

4%3.

44%

-0.0

19.

34%

1.94

%0.

11%

3.84

%0.

03

Stat

istic

sH

ighe

st29

.00%

14.7

6%5.

90%

6.03

%1.

6223

.09%

12.7

0%1.

72%

4.84

%0.

98U

pper

Qua

rtile

24.7

4%14

.40%

1.64

%2.

78%

1.31

22.1

9%12

.36%

0.82

%1.

99%

0.76

Med

ian

24.0

8%13

.94%

0.98

%1.

65%

0.71

21.9

7%12

.19%

0.60

%1.

38%

0.52

Aver

age

23.3

8%12

.86%

1.45

%2.

24%

0.78

20.6

2%11

.10%

0.55

%1.

92%

0.43

Low

er Q

uarti

le23

.66%

13.4

7%0.

56%

1.17

%0.

3121

.68%

11.7

9%0.

31%

1.03

%0.

13Lo

wes

t10

.16%

1.38

%-0

.29%

0.88

%-0

.18

9.34

%1.

94%

-0.8

0%0.

86%

-0.4

7N

umbe

r of p

artic

ipan

ts11

1111

1111

1010

1010

10

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014 R

isk v

s R

etu

rn

99

SECTION 3

Multi-Manager Watch™ Investment Performance (Specialist Mandates)

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

1 Ye

ar3

Year

s5

Year

s7

Year

s10

Yea

rs

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lio

Size

(R

M)

Equi

ty M

anda

tes

Ben

chm

ark

Cog

nisa

ntIn

vest

men

t Sol

utio

ns

Pur

e E

quity

Loc

al10

.52%

15.4

2%-4

.90%

418

.75%

21.6

1%-2

.86%

316

.30%

17.7

8%-1

.48%

212

.00%

12.6

8%-0

.68%

217

.67%

18.6

5%-0

.99%

231

953

Mom

entu

m M

oM

Cla

ssic

Equ

ity12

.34%

15.4

2%-3

.08%

221

.07%

21.6

1%-0

.54%

117

.65%

17.7

8%-0

.13%

112

.94%

12.6

8%0.

26%

118

.10%

18.5

8%-0

.48%

111

436

Syg

nia

Cor

e E

quity

Fu

nd11

.85%

15.4

2%-3

.57%

320

.85%

21.6

1%-0

.76%

2*

**

**

**

**

1 79

3

Mom

entu

m M

oM T

arge

t E

quity

14.9

9%15

.42%

-0.4

3%1

**

**

**

**

**

**

253

Non

Ben

chm

ark

Cog

nisa

ntS

ygni

a A

bsol

ute

Focu

s E

quity

Fun

d17

.35%

15.4

2%1.

92%

120

.40%

21.6

1%-1

.21%

1*

**

**

**

**

1 33

5

SY

mm

ETR

Y E

quity

P

ortfo

lio11

.75%

15.4

2%-3

.67%

216

.13%

21.6

1%-5

.48%

214

.51%

17.7

8%-3

.27%

110

.76%

12.6

8%-1

.92%

116

.70%

18.5

8%-1

.88%

11

396

Bon

d M

anda

tes

Inve

stm

ent S

olut

ions

P

ure

Fixe

d In

tere

st

Por

tfolio

Loc

al11

.08%

10.1

5%0.

93%

19.

70%

8.75

%0.

95%

110

.75%

9.97

%0.

78%

110

.21%

9.29

%0.

92%

29.

40%

8.54

%0.

86%

14

861

Mom

entu

m M

oM

Mod

erat

e B

ond

FOF

10.2

2%10

.15%

0.08

%2

9.26

%8.

74%

0.52

%2

10.5

7%9.

97%

0.60

%2

10.2

3%9.

29%

0.94

%1

9.40

%8.

54%

0.86

%2

206

Mon

ey M

arke

t Man

date

s

In

vest

men

t Sol

utio

ns

Ban

ker

6.74

%5.

29%

1.44

%1

6.59

%5.

03%

1.56

%1

6.90

%5.

32%

1.58

%1

8.20

%6.

59%

1.61

%1

8.28

%6.

90%

1.37

%1

16 5

58

Syg

nia

Mon

ey M

arke

t Fu

nd6.

01%

5.90

%0.

10%

36.

24%

5.54

%0.

70%

2*

**

**

**

**

740

SY

mm

ETR

Y M

oney

M

arke

t6.

22%

5.91

%0.

31%

26.

13%

5.55

%0.

58%

36.

57%

5.85

%0.

71%

27.

84%

7.13

%0.

70%

2*

**

*42

3

Abs

olut

e R

etur

n M

anda

tes

Inve

stm

ent S

olut

ions

S

tabl

e Fo

cus

8.98

%9.

81%

-0.8

3%4

10.1

7%9.

37%

0.80

%5

9.50

%9.

21%

0.29

%4

10.2

9%9.

98%

0.31

%1

**

*2

310

Inve

stm

ent S

olut

ions

R

eal R

etur

n Fo

cus

Loca

l10

.33%

10.8

5%-0

.52%

311

.62%

10.6

0%1.

02%

410

.62%

10.4

8%0.

13%

510

.39%

11.4

6%-1

.06%

3*

**

6 23

4

Inve

stm

ent S

olut

ions

R

eal R

etur

n Fo

cus

Por

tfolio

10.0

1%10

.85%

-0.8

4%5

12.7

2%10

.60%

2.12

%3

11.1

9%10

.48%

0.71

%3

10.2

4%11

.46%

-1.2

1%4

12.7

0%11

.65%

1.05

%3

847

SY

mm

ETR

Y A

bsol

ute

Def

ensi

ve F

und

10.1

4%9.

82%

0.32

%2

14.1

6%10

.32%

3.84

%1

12.4

0%10

.29%

2.11

%1

10.7

1%11

.20%

-0.5

0%2

12.5

4%11

.00%

1.55

%1

165

SY

mm

ETR

Y A

bsol

ute

Bal

ance

d Fu

nd9.

03%

11.5

7%-2

.54%

615

.56%

12.1

4%3.

42%

214

.23%

12.2

9%1.

94%

211

.87%

13.2

0%-1

.34%

513

.86%

**

4 03

9

SM

M A

bsol

ute

Ret

urn

12.6

9%9.

52%

3.16

%1

**

**

**

**

**

**

462

Med

ical

Aid

Man

date

sIS

Med

ical

Sch

emes

R

eal R

etur

n Fo

cus

9.26

%9.

51%

-0.2

5%9.

80%

9.53

%0.

27%

9.50

%9.

28%

0.22

%10

.52%

9.90

%0.

62%

12.6

3%10

.05%

2.58

%47

1

Mar

ket D

ata

FTS

E /

JSE

All

Sha

re

Inde

x (F

ree

Floa

t)10

.88%

19.4

8%15

.79%

11.2

7%18

.00%

FTS

E /

JSE

SW

IX A

ll S

hare

Inde

x 15

.42%

21.6

1%17

.78%

12.6

8%18

.57%

All

Bon

d10

.15%

8.74

%9.

97%

9.29

%8.

54%

Sho

rt Te

rm F

ixed

In

tere

st R

ate

Inde

x5.

90%

5.55

%5.

86%

7.14

%7.

38%

Com

bina

tion

of o

ld

CP

IX a

nd n

ew C

PI*

5.80

%5.

58%

5.29

%6.

20%

6.00

%

Con

sum

er P

rice

Infla

tion

(Old

/New

co

mbi

ned

CP

I)*5.

80%

5.58

%5.

29%

6.12

%5.

99%

Con

sum

er P

rice

Infla

tion

excl

udin

g O

ER

5.

99%

5.73

%5.

42%

6.22

%6.

01%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

5.80

%5.

58%

5.29

%6.

04%

5.55

%

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

.

100



Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Cal

enda

r Yea

r 201

3C

alen

dar Y

ear 2

012

Cal

enda

r Yea

r 201

1C

alen

dar Y

ear 2

010

Cal

enda

r Yea

r 200

9

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

k

Equi

ty M

anda

tes

Ben

chm

ark

Cog

nisa

ntIn

vest

men

t Sol

utio

ns P

ure

Equ

ity L

ocal

22.9

8%20

.71%

2.27

%3

23.2

2%29

.09%

-5.8

7% 3

4.

94%

4.29

%0.

65%

2

21.0

9%20

.86%

0.23

% 1

29

.03%

29.9

1%-0

.88%

1

Mom

entu

m M

oM C

lass

ic

Equ

ity25

.37%

20.7

1%4.

66%

226

.01%

29.0

9%-3

.08%

1

5.16

%4.

29%

0.87

% 1

20

.80%

20.8

6%-0

.06%

2

28.0

2%29

.91%

-1.8

9%2

Syg

nia

Cor

e E

quity

Fun

d25

.52%

20.7

1%4.

81%

125

.71%

29.0

9%-3

.38%

2

3.42

%4.

29%

-0.8

7% 3

*

**

**

*

Non

Ben

chm

ark

Cog

nisa

ntS

ygni

a A

bsol

ute

Focu

s E

quity

Fun

d22

.49%

20.7

1%1.

78%

121

.42%

29.0

9%-7

.66%

16.

74%

4.29

%2.

45%

1*

**

**

*

SY

mm

ETR

Y E

quity

Por

tfolio

19.5

1%20

.71%

-1.2

0%2

17.2

8%29

.09%

-11.

80%

23.

82%

4.29

%-0

.46%

221

.07%

20.8

5%0.

21%

129

.50%

29.9

1%-0

.41%

1

Bon

d M

anda

tes

Inve

stm

ent S

olut

ions

Pur

e Fi

xed

Inte

rest

Por

tfolio

Loc

al2.

40%

0.63

%1.

77%

116

.05%

16.0

2%0.

03%

29.

27%

8.80

%0.

48%

215

.52%

14.9

6%0.

56%

20.

75%

-0.9

9%1.

73%

2

Mom

entu

m M

oM M

oder

ate

Bon

d FO

F1.

63%

0.63

%0.

99%

216

.44%

15.9

9%0.

45%

19.

38%

8.82

%0.

56%

115

.82%

14.9

6%0.

86%

12.

14%

-0.9

9%3.

13%

1

Mon

ey M

arke

t Man

date

s

In

vest

men

t Sol

utio

ns

Ban

ker

6.46

%4.

68%

1.78

%1

6.56

%5.

10%

1.46

% 1

6.

80%

5.27

%1.

53%

17.

93%

6.26

%1.

68%

19.

92%

8.36

%1.

56%

1

Syg

nia

Mon

ey M

arke

t Fun

d6.

31%

5.18

%1.

12%

26.

41%

5.54

%0.

87%

2

6.61

%5.

73%

0.88

%3

**

**

**

SY

mm

ETR

Y M

oney

Mar

ket

5.92

%5.

20%

0.73

%3

6.25

%5.

54%

0.71

% 3

6.

62%

5.70

%0.

92%

27.

84%

6.93

%0.

91%

29.

85%

9.13

%0.

72%

2

Abs

olut

e R

etur

n M

anda

tes

Inve

stm

ent S

olut

ions

Sta

ble

Focu

s8.

94%

9.35

%-0

.42%

612

.63%

8.94

%3.

69%

36.

56%

10.4

8%-3

.92%

310

.50%

7.48

%3.

02%

413

.51%

10.3

3%3.

17%

3

Inve

stm

ent S

olut

ions

Rea

l R

etur

n Fo

cus

Loca

l10

.90%

10.3

6%0.

55%

513

.67%

10.6

0%3.

07%

44.

61%

11.4

8%-6

.87%

613

.82%

9.14

%4.

68%

216

.09%

12.3

4%3.

76%

2

Inve

stm

ent S

olut

ions

Rea

l R

etur

n Fo

cus

Por

tfolio

14.7

2%10

.36%

4.37

%4

13.4

7%10

.60%

2.87

%5

7.13

%11

.48%

-4.3

5%4

10.7

6%9.

14%

1.62

%5

12.9

9%12

.34%

0.66

%4

SY

mm

ETR

Y A

bsol

ute

Def

ensi

ve F

und

17.3

9%10

.11%

7.29

%3

15.0

5%11

.03%

4.02

%2

8.92

%11

.82%

-2.9

0%1

**

**

**

SY

mm

ETR

Y A

bsol

ute

Bal

ance

d Fu

nd19

.84%

11.7

2%8.

12%

118

.10%

13.1

5%4.

96%

110

.30%

13.9

3%-3

.63%

214

.25%

9.56

%4.

69%

1*

**

SM

M A

bsol

ute

Ret

urn

18.1

1%10

.41%

7.70

%2

12.2

8%11

.08%

1.19

%6

4.35

%9.

83%

-5.4

8%5

13.4

4%8.

93%

4.51

%3

18.7

0%11

.63%

7.08

%1

Med

ical

Aid

Man

date

sIS

Med

ical

Sch

emes

Rea

l R

etur

n Fo

cus

9.93

%9.

40%

0.52

%10

.20%

9.67

%0.

52%

4.22

%10

.19%

-5.9

7%*

**

**

*

Mar

ket D

ata

FTS

E /

JSE

All

Sha

re In

dex

(Fre

e Fl

oat)

21.4

3%26

.68%

2.57

%18

.98%

32.1

3%

FTS

E /

JSE

SW

IX A

ll S

hare

In

dex

20.7

1%29

.09%

4.25

%20

.86%

29.9

1%

All

Bon

d0.

64%

15.9

9%8.

82%

14.9

6%-0

.99%

Sho

rt Te

rm F

ixed

Inte

rest

R

ate

Inde

x5.

18%

5.55

%5.

73%

6.93

%9.

13%

Com

bina

tion

of o

ld C

PIX

an

d ne

w C

PI*

5.35

%5.

60%

6.12

%3.

58%

5.09

%

Con

sum

er P

rice

Infla

tion

(Old

/New

com

bine

d C

PI)*

5.35

%5.

60%

6.12

%3.

58%

4.79

%

Con

sum

er P

rice

Infla

tion

excl

udin

g O

ER

[I-N

et c

ode:

A

EC

PIX

U]

5.47

%5.

74%

6.37

%3.

57%

5.08

%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et c

ode:

A

EC

PI]

5.35

%5.

60%

6.12

%3.

58%

5.83

%

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

.

101

SECTION 3


Investment Data to the end of December 2014 – Volatility vs Return (Calculated on 3 year Performance Returns)

3 Year Return (p.a.) Rank Risk

(Volatility) Rank Active Return Rank Tracking

ErrorInformation Ratio Rank

Benchmark CognisantInvestment Solutions Pure Equity 18.75% 3 8.98% 2 -2.86% 3 2.76% -1.04 3Momentum MoM Classic Equity 21.07% 1 8.55% 1 -0.54% 1 2.11% -0.26 1Sygnia Core Equity Fund 20.85% 2 9.54% 3 -0.76% 2 2.89% -0.26 2

Non Benchmark CognisantSygnia Absolute Focus Equity Fund 20.40% 1 7.59% 1 -1.21% 1 2.62% -0.46 1SYmmETRY Equity Portfolio 16.13% 2 9.26% 2 -5.48% 2 3.89% -1.41 2

Bond MandatesInvestment Solutions Pure Fixed Interest Portfolio Local 9.70% 1 6.00% 1 0.95% 1 0.98% 0.97 1

Momentum MoM Moderate Bond FOF 9.26% 2 6.51% 2 0.52% 2 0.89% 0.59 2

Money Market MandatesInvestment Solutions Banker 6.59% 1 0.31% 2 1.56% 1 0.27% 5.75 1Sygnia Money Market Fund 6.24% 2 0.31% 3 0.70% 2 0.34% 2.07 3SYmmETRY Money Market 6.13% 3 0.22% 1 0.58% 3 0.19% 3.11 2

Absolute Return MandatesInvestment Solutions Stable Focus 10.17% 5 3.52% 5 0.80% 5 3.45% 0.23 5Investment Solutions Real Return Focus Local 11.62% 4 4.11% 3 1.02% 4 4.03% 0.25 4Investment Solutions Real Return Focus Portfolio 12.72% 3 4.14% 2 2.12% 3 4.10% 0.52 3SYmmETRY Absolute Defensive Fund 14.16% 2 3.91% 4 3.84% 1 3.87% 0.99 1SYmmETRY Absolute Balanced Fund 15.56% 1 4.83% 1 3.42% 2 4.70% 0.73 2

Medical Aid MandatesIS Medical Schemes Real Return Focus 9.80% 3.35% 0.27% 3.46% 0.08

Market Indices & StatisticsFTSE / JSE All Share Index (Free Float) 19.48% 9.97%FTSE / JSE SWIX All Share Index 21.61% 8.82%All Bond 8.74% 6.90%Short Term Fixed Interest Rate Index 5.55% 0.13%Consumer Price Inflation (Ex. Mortgage Interest) 5.58% 1.32%Consumer Price Inflation (Headline) 5.58% 1.32%

102


Multi-Manager Watch™ Investment Performance (Balanced Mandates)

Fixed Asset Allocation: Managers included in the below survey typically make use of fixed asset allocations, which means that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations others may allow these allocations to drift slightly within certain margins.

Strategic Asset Allocation: Although managers included in the above survey may have long-term strategic asset allocation targets, they actively manage the asset allocation in an attempt to enhance returns. The different categories above (Low Volatility, Best Investment View and Dynamic) represent the different risk profiles of the funds. The Low Volatility category represents the manager’s most conservatively managed portfolio while the Dynamic category represents the manager’s most aggressively managed portfolio, according to the manager’s discretion.

Performance Data1 Year 3 Years 5 Years

Portfolio Benchmark Active Return Rank Portfolio Benchmark Active

Return Rank Portfolio Benchmark Active Return Rank

Fixed Asset Allocation

Equity Band: 15% – 34% (Local & International Equity)Investment Solutions Low Equity 10.09% 10.77% -0.69% 1 12.62% 12.52% 0.10% 1 11.53% 11.01% 0.52% 1Momentum MOM Enhanced Factor 3 9.92% 11.46% -1.55% 2 10.85% 12.35% -1.50% 2 * * *Equity Band: 35% – 44% (Local & International Equity)Investment Solutions 37.5% Equity 10.70% 11.90% -1.20% 2 14.32% 14.74% -0.41% 2 12.85% 12.76% 0.09% 1Momentum MoM Enhanced Factor 4 10.79% 12.49% -1.70% 3 12.53% 13.73% -1.21% 3 * * *Sygnia Signature 40 Fund 11.72% 11.70% 0.01% 1 16.12% 14.14% 1.98% 1 * * *Equity Band: 45% – 54% (Local & International Equity)27four CPI+5% Fund 14.19% 13.31% 0.88% 1 * * * * * *Investment Solutions Medium Equity 10.96% 12.80% -1.84% 4 16.03% 14.56% 1.47% 2 14.12% 10.32% 3.80% 1Momentum MoM Enhanced Factor 5 11.93% 13.84% -1.91% 5 14.65% 15.71% -1.06% 4 * * *SMM 50 10.88% 12.08% -1.20% 3 15.37% 15.34% 0.03% 3 13.75% 13.56% 0.19% 2Sygnia Signature 50 Fund 12.25% 12.32% -0.07% 2 17.56% 15.67% 1.89% 1 * * *Equity Band: 55% – 69% (Local & International Equity)27Four CPI+ 7% 14.58% 14.28% 0.30% 1 * * * * * *Investment Solutions 62.5% Equity 11.03% 13.36% -2.33% 6 17.24% 18.12% -0.88% 4 14.94% 15.49% -0.55% 3Momentum MoM Classic Factor 6 12.89% 14.91% -2.01% 4 19.16% 19.49% -0.33% 2 * * *Momentum MoM Enhanced Factor 6 12.65% 14.91% -2.26% 5 18.64% 19.49% -0.85% 3 16.07% 16.21% -0.14% 1SMM 60 11.22% 12.97% -1.75% 3 15.89% 17.00% -1.12% 5 14.13% 14.50% -0.37% 2Sygnia Signature 60 Fund 13.29% 13.13% 0.16% 2 19.12% 17.37% 1.74% 1 * * *Equity Band: 70% – 75% (Local & International Equity)Investment Solutions Entrepreneur 13.41% 14.69% -1.27% 4 17.44% 19.48% -2.05% 7 15.11% 16.57% -1.46% 4Investment Solutions High Equity 11.08% 13.92% -2.84% 9 18.19% 19.76% -1.57% 6 15.57% 16.56% -0.99% 3Momentum MoM Classic Factor 7 13.87% 15.82% -1.95% 6 21.00% 20.99% 0.01% 2 * * *Momentum MoM Enhanced Factor 7 13.55% 15.82% -2.27% 7 20.61% 20.99% -0.39% 5 17.26% 17.20% 0.06% 1Momentum MoM Target Factor 7 15.53% 15.82% -0.29% 3 * * * * * *SMM 70 11.75% 13.43% -1.69% 5 18.29% 18.31% -0.02% 4 15.23% 15.17% 0.06% 2Sygnia Signature 70 Fund 14.19% 13.80% 0.39% 1 20.12% 18.95% 1.16% 1 * * *SYmmETRY Aggressive 12.83% 15.63% -2.80% 8 19.07% 21.74% -2.68% 8 16.01% 17.63% -1.61% 5Strategic Asset AllocationLow VolatilityInvestment Solutions Conserver 7.93% 10.72% -2.78% 2 12.34% 13.41% -1.07% 2 11.56% 12.13% -0.57% 1Nedgroup Investment XS Guarded Fund of Funds 11.34% 8.98% 2.36% 1 14.01% 8.77% 5.29% 1 * * *

Best Investment ViewInvestment Solutions Performer 11.50% 11.56% -0.06% 3 19.12% 18.24% 0.88% 1 16.51% 15.63% 0.89% 1Investment Solutions Spectrum 10.27% 10.20% 0.07% 2 17.71% 17.65% 0.06% 2 15.27% 15.36% -0.10% 2Momentum MoM Flexible Factor 6 13.19% 14.91% -1.72% 5 17.06% 19.49% -2.44% 3 * * *Momentum MoM Flexible Factor 7 12.73% 15.82% -3.09% 6 17.93% 20.99% -3.06% 4 * * *Nedgroup Investments XS Diversified Fund of Funds 11.29% 11.09% 0.20% 1 * * * * * *

SYmmETRY Managed 11.37% 11.53% -0.16% 4 * * * * * *


103

SECTION 3

Multi-Manager Watch™ Investment Performance (Balanced Mandates) (continued)

Fixed Asset Allocation: Managers included in the below survey typically make use of fixed asset allocations, which means that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations others may allow these allocations to drift slightly within certain margins.


Performance Data7 Years 10 Years

Portfolio Benchmark Active Return Rank Portfolio Benchmark Active

Return Rank Portfolio Size (R M) Equity Allocation

Fixed Asset AllocationDomestic International

Equity Band: 15% – 34% (Local & International Equity)Investment Solutions Low Equity 10.35% 9.75% 0.60% 1 11.48% 10.97% 0.51% 1 150 20.93% 7.68%Momentum MOM Enhanced Factor 3 * * * * * * 3 834 24.46% 5.34%Equity Band: 35% – 44% (Local & International Equity)Investment Solutions 37.5% Equity 11.02% 10.71% 0.31% 1 12.71% 12.46% 0.25% 1 257 28.69% 10.88%Momentum MoM Enhanced Factor 4 * * * * * * 237 29.41% 10.29%Sygnia Signature 40 Fund * * * * * * 528 26.49% 23.20%Equity Band: 45% – 54% (Local & International Equity)27four CPI+5% Fund * * * * * * 737 35.80% 17.10%Investment Solutions Medium Equity 11.50% 12.21% -0.71% 2 13.80% 14.07% -0.27% 2 220 35.66% 13.91%Momentum MoM Enhanced Factor 5 * * * * * * 1 072 36.59% 15.91%SMM 50 11.24% 11.21% 0.03% 1 13.57% 13.77% -0.20% 1 429 35.32% 18.77%Sygnia Signature 50 Fund * * * * * * 808 38.70% 23.29%Equity Band: 55% – 69% (Local & International Equity)27Four CPI+ 7% * * * * * * 668 47.10% 21.87%Investment Solutions 62.5% Equity 11.76% 11.91% -0.15% 2 14.76% 14.98% -0.22% 3 171 41.94% 17.45%Momentum MoM Classic Factor 6 * * * * * * 338 45.37% 20.64%Momentum MoM Enhanced Factor 6 12.39% 12.30% 0.09% 1 15.32% 15.40% -0.08% 1 5 191 44.36% 21.02%SMM 60 11.24% 11.53% -0.29% 3 14.57% 14.67% -0.10% 2 367 43.00% 19.54%Sygnia Signature 60 Fund * * * * * * 783 44.86% 23.24%Equity Band: 70% – 75% (Local & International Equity)Investment Solutions Entrepreneur 11.79% 12.22% -0.43% 3 15.48% 16.10% -0.62% 4 1 000 44.04% 25.89%Investment Solutions High Equity 11.82% 12.27% -0.44% 3 15.54% 16.09% -0.55% 3 1 234 48.29% 18.84%Momentum MoM Classic Factor 7 * * * * * * 121 51.88% 21.41%Momentum MoM Enhanced Factor 7 12.76% 12.59% 0.17% 2 16.26% 16.27% -0.01% 2 12 718 51.37% 20.26%Momentum MoM Target Factor 7 * * * * * * 244SMM 70 11.62% 11.50% 0.12% 2 15.27% 15.18% 0.09% 1 889 51.02% 19.44%Sygnia Signature 70 Fund * * * * * * 3 923 55.45% 23.23%SYmmETRY Aggressive 11.74% 12.98% -1.24% 4 15.53% 16.71% -1.18% 5 2 288 43.02% 27.41%Strategic Asset AllocationLow VolatilityInvestment Solutions Conserver 10.62% 10.22% 0.39% 1 12.86% 12.27% 0.60% 1 3 685 28.33% 7.72%Nedgroup Investment XS Guarded Fund of Funds * * * * * * 152 16.02% 14.76%

Best Investment ViewInvestment Solutions Performer 13.07% 12.38% 0.69% 1 16.68% 16.21% 0.47% 1 74 401 41.71% 21.26%Investment Solutions Spectrum 11.68% 11.85% -0.17% 2 15.77% 15.85% -0.08% 2 2 444 44.42% 20.04%Momentum MoM Flexible Factor 6 * * * * * * 272 N/A N/AMomentum MoM Flexible Factor 7 * * * * * * 2 236 N/A N/ANedgroup Investments XS Diversified Fund of Funds * * * * * * 2 325 41.97% 16.25%

SYmmETRY Managed * * * * * * 1 942 40.91% 22.60%


104



Perf

orm

ance

Dat

aC

alen

dar Y

ear 2

013

Cal

enda

r Yea

r 201

2C

alen

dar Y

ear 2

011

Cal

enda

r Yea

r 201

0C

alen

dar Y

ear 2

009

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

kPo

rtfo

lioB

ench

mar

kA

ctiv

e R

etur

nR

ank

Port

folio

Ben

chm

ark

Act

ive

Ret

urn

Ran

k

Fixe

d A

sset

Allo

catio

nEq

uity

Ban

d: 1

5% -

24%

(Loc

al &

Inte

rnat

iona

l Equ

ity)

Inve

stm

ent S

olut

ions

Low

E

quity

12.2

4%10

.39%

1.85

%1

15.5

9%16

.49%

-0.9

0%1

9.58

%8.

68%

0.89

%1

10.2

8%8.

88%

1.40

%1

10.2

9%8.

28%

2.01

%1

Mom

entu

m M

OM

Enh

ance

d Fa

ctor

39,

11%

9,38

%-0

,27%

2

13,5

9%16

,32%

-2,7

3% 2

8,

14%

11,5

4%-3

,40%

2

**

**

**

Equi

ty B

and:

35%

– 4

4% (L

ocal

& In

tern

atio

nal E

quity

)In

vest

men

t Sol

utio

ns 3

7.5%

E

quity

15.0

7%13

.37%

1.70

%2

17.2

9%19

.06%

-1.7

7% 2

9.

54%

9.01

%0.

53%

211

.82%

10.7

2%1.

10%

112

.07%

10.0

4%2.

03%

1

Mom

entu

m M

oM E

nhan

ced

Fact

or 4

11,6

7%10

,92%

0,75

% 3

15

,17%

17,9

2%-2

,75%

3

8,87

%9,

49%

-0,6

2% 3

*

**

**

*

Syg

nia

Sig

natu

re 4

0 Fu

nd20

.21%

13.9

4%6.

27%

116

.58%

16.8

4%-0

.26%

1

9.07

%8.

31%

0.77

%1

**

**

**

Equi

ty B

and:

45%

- 54

% (L

ocal

& In

tern

atio

nal E

quity

)27

four

CP

I+5%

Fun

d20

.35%

17.1

0%3.

25%

2

**

**

**

**

**

**

Inve

stm

ent S

olut

ions

Med

ium

E

quity

18.5

3%16

.51%

2.02

% 4

18

.79%

21.2

4%-2

.45%

3

8.74

%9.

42%

-0.6

8%2

13.9

5%12

.92%

1.04

%2

14.5

5%12

.57%

1.98

%1

Mom

entu

m M

oM E

nhan

ced

Fact

or 5

14.9

7%13

.34%

1.63

% 5

17

.12%

20.0

7%-2

.95%

4

9.02

%10

.10%

-1.0

7%4

**

**

**

SM

M 5

018

.04%

14.9

5%3.

10%

3

17.3

3%19

.11%

-1.7

8% 2

8.

08%

8.85

%-0

.77%

314

.74%

13.0

7%1.

67%

113

.78%

12.8

6%0.

92%

2S

ygni

a S

igna

ture

50

Fund

22.4

9%16

.14%

6.35

% 1

18

.17%

18.6

5%-0

.48%

1

8.96

%8.

01%

0.95

%1

**

**

**

Equi

ty B

and:

55%

- 69

% (L

ocal

& In

tern

atio

nal E

quity

)27

Four

CP

I +7%

24.4

4%20

.50%

3.94

% 2

*

**

**

**

**

**

*In

vest

men

t Sol

utio

ns 6

2.5%

E

quity

21.3

8%19

.37%

2.01

% 4

19

.59%

21.7

9%-2

.20%

2

8.50

%9.

50%

-1.0

0%4

14.7

0%13

.84%

0.87

%3

16.9

5%15

.42%

1.54

%2

Mom

entu

m M

oM E

nhan

ced

Fact

or 6

22.6

0%20

.52%

2.08

% 3

20

.93%

23.2

0%-2

.27%

3

8.58

%7.

99%

0.60

%2

16.1

9%15

.05%

1.14

%2

16.8

9%16

.32%

0.57

%3

SM

M 6

018

.15%

16.7

9%1.

36%

5

18.4

4%21

.40%

-2.9

6% 4

8.

12%

8.36

%-0

.24%

315

.08%

13.3

9%1.

69%

117

.46%

15.8

6%1.

59%

1S

ygni

a S

igna

ture

60

Fund

24.3

5%19

.15%

5.20

% 1

19

.96%

19.9

5%0.

02%

1

9.15

%8.

13%

1.02

%1

**

**

**

Equi

ty B

and:

70%

- 75

% (L

ocal

& In

tern

atio

nal E

quity

)In

vest

men

t Sol

utio

ns

Ent

repr

eneu

r20

.18%

19.7

6%0.

42%

5

18.8

3%24

.19%

-5.3

6% 6

7.

06%

9.13

%-2

.07%

6

16.5

7%15

.64%

0.93

%2

22.4

5%18

.83%

3.62

%1

Inve

stm

ent S

olut

ions

Hig

h E

quity

23.5

3%21

.37%

2.16

% 4

20

.32%

24.2

3%-3

.91%

4

8.17

%9.

20%

-1.0

2% 4

15

.44%

14.7

2%0.

72%

419

.77%

18.5

9%1.

18%

2

Mom

entu

m M

oM E

nhan

ced

Fact

or 7

25.6

3%22

.53%

3.09

% 3

22

.99%

24.8

1%-1

.82%

1

8.06

%7.

57%

0.48

% 3

16

.94%

16.0

3%0.

91%

318

.68%

18.7

5%-0

.06%

4

SM

M 7

022

.95%

19.1

2%3.

83%

2

20.4

8%22

.56%

-2.0

8% 2

6.

23%

7.52

%-1

.29%

5

15.5

0%13

.78%

1.72

%1

19.5

7%18

.59%

0.98

%3

SY

mm

ETR

Y A

ggre

ssiv

e26

.60%

26.4

0%0.

20%

6

18.1

7%23

.45%

-5.2

8% 5

8.

29%

7.73

%0.

56%

2

14.9

7%15

.84%

-0.8

7%5

18.0

6%18

.96%

-0.9

1%5

Syg

nia

Sig

natu

re 7

0 Fu

nd26

.73%

20.8

6%5.

87%

1

19.7

6%22

.38%

-2.6

2% 3

8.79

%7.

93%

0.87

% 1

*

**

**

*

Stra

tegi

c A

sset

Allo

catio

nLo

w V

olat

ility

Inve

stm

ent S

olut

ions

C

onse

rver

14.7

4%13

.49%

1.25

%1

14.4

9%16

.10%

-1.6

1%1

9,86

%9,

49%

0,37

% 2

10

.94%

11.0

0%-0

.06%

113

.95%

10.4

8%3.

47%

1

Ned

grou

p In

vest

men

t XS

G

uard

ed F

und

of F

unds

17,3

7%8,

58%

8,79

% 1

13

,42%

8,75

%4,

67%

1

11,1

9%9,

28%

1,90

% 1

*

**

**

*

Bes

t Inv

estm

ent V

iew

Inve

stm

ent S

olut

ions

P

erfo

rmer

25.5

3%22

.50%

3.02

%1

20.7

7%20

.94%

-0.1

8%3

15.9

8%14

.15%

1.83

%1

15.9

8%14

.15%

1.83

%1

20.4

0%20

.51%

-0.1

1%2

Inve

stm

ent S

olut

ions

S

pect

rum

22.5

9%22

.72%

-0.1

3%3

20.6

7%20

.43%

0.24

%2

14.8

1%14

.18%

0.64

%2

14.8

1%14

.18%

0.64

%2

21.0

7%19

.83%

1.24

%1

SY

mm

ETR

Y M

anag

ed25

.60%

23.1

3%2.

47%

222

.88%

20.0

1%2.

87%

1*

**

**

**

**

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

105

SECTION 3

Risk vs Return (Calculated on 3 Year Performance)3 Year Return (p.a.) Rank Risk

(Volatility) Rank Active Return Rank Tracking

ErrorInformation Ratio Rank

Fixed Asset AllocationEquity Band: 15% - 24% (Local & International Equity)Investment Solutions Low Equity 12.62% 1 3.46% 1 0.10% 1 1.02% 0.10 1Momentum MOM Enhanced Factor 3 10,85% 2 3,51% 2 -1,50% 2 2,62% -0,57 2

Equity Band: 35% - 44% (Local & International Equity)Investment Solutions 37.5% Equity 14.32% 2 4.29% 1 -0.41% 2 1.14% -0.36 2Momentum MoM Enhanced Factor 4 12,53% 3 3,68% 3 -1,21% 3 2,34% -0,52 3Sygnia Signature 40 Fund 16.12% 1 3.96% 2 1.98% 1 1.75% 1.13 1

Equity Band: 45% - 54% (Local & International Equity)Investment Solutions Medium Equity 16.03% 2 5.26% 3 1.47% 2 1.51% 0.97 2SMM 50 15.37% 3 5.37% 4 0.03% 3 2.14% 0.01 3Momentum MoM Enhanced Factor 5 14.65% 4 3.95% 1 -1.06% 4 1.99% -0.53 4Sygnia Signature 50 Fund 17.56% 1 4.46% 2 1.89% 1 1.75% 1.08 1

Equity Band: 55% - 69% (Local & International Equity)Investment Solutions 62.5% Equity 17.24% 4 5.94% 5 -0.88% 4 1.59% -0.55 5Momentum MoM Classic Factor 6 19.16% 1 5.59% 4 -0.33% 2 1.63% -0.20 2Momentum MoM Enhanced Factor 6 18.64% 3 5.57% 3 -0.85% 3 1.79% -0.47 3SMM 60 15.89% 5 5.56% 2 -1.12% 5 2.15% -0.52 4Sygnia Signature 60 Fund 19.12% 2 5.02% 1 1.74% 1 1.54% 1.13 1

Equity Band: 70% - 75% (Local & International Equity)Investment Solutions Entrepreneur 17.44% 6 6.04% 2 -2.05% 5 2.21% -0.93 6Investment Solutions High Equity 18.19% 5 6.71% 6 -1.57% 4 1.87% -0.84 4Momentum MoM Enhanced Factor 7 20.61% 1 6.06% 3 -0.39% 3 1.41% -0.27 3SMM 70 18.29% 4 6.60% 5 -0.02% 2 2.35% -0.01 2Sygnia Signature 70 Fund 20.12% 2 5.78% 1 1.16% 1 1.80% 0.65 1SYmmETRY Aggressive 19.07% 3 6.34% 4 -2.68% 6 3.14% -0.85 5

Strategic Asset AllocationLow VolatilityInvestment Solutions Conserver 12.34% 2 4.08% 1 -1.07% 2 1.72% -0.62 2Nedgroup Investment XS Guarded Fund of Funds 14,01% 1 3,50% 2 5,24% 1 3,56% 1,48 1

Best Investment ViewInvestment Solutions Performer 19.12% 1 6.44% 4 0.88% 1 1.14% 0.77 1Investment Solutions Spectrum 17.71% 3 6.18% 3 0.06% 2 0.47% 0.13 2Momentum MoM Flexible Factor 6 17.06% 4 5.03% 1 -2.44% 3 2.11% -1.15 3Momentum MoM Flexible Factor 7 17.93% 2 5.70% 2 -3.06% 4 2.28% -1.35 4


Fixed Asset Allocation: Managers included in the below survey typically make use of fixed asset allocations, which mean that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these managers adhere rigidly to these fixed asset allocations others may allow these allocations to drift slightly within certain margins.



106



Excess Return vs Tracking Error Scatterplot – Multi Managers Fixed & Strategic Asset Allocation 3 Years ended 31 December 2014

-4%

-3%

0.5% 2.5% 3% 3.5%

-2%

-1%

0

1%

2%

3%

4%

5%

Act

ive

Ret

urn

(p.a

)

Active Risk (p.a)(tracking error)

SYmmETRY Aggressive

Momentum MoM Flexible Factor 7



Momentum MoM Classic Factor 6

Investment Solutions 62.5% Equity


Investment Solutions Performer

Sygnia Signature 70 FundInvestment Solutions Medium Equity

Sygnia Signature 60 Fund





Investment Solutions Low Equity


Investment Solutions High Equity

SMM 60

Investment Solutions Conserver

2%1% 1.5%

SMM 70

SMM 50

Volatility vs Return – Multi Managers Fixed & Strategic Asset Allocations 3 years ended 31 December 2014

11.2%

2.4% 3.4% 5.4% 7.4%4.4% 6.4% 8.4%

13.2%

15.2%

17.2%

19.2%

21.2%

Ret

urn

(p.a

)

Volatility (p.a)(tracking error)

Investment Solutions Low Equity


Investment Solutions Conserver



Momentum MoM Enhanced Factor 5 Sygnia Signature 50 FundMomentum MoM Flexible Factor 7



Momentum MoM Classic Factor 6


Investment Solutions EntrepreneurIS Spectrum

SYmmETRY AggressiveInvestment Solutions High Equity

Investment Solutions Performer




SMM 50

SMM 60

SMM 70

Investment Solutions Medium Equity

Nedgroup Investment XS Guarded Fund of Funds



Nedgroup Investment XS Guarded Fund

of Funds


107

SECTION 3

SA Medical-Aid Manager WatchTM Survey

Objective: The portfolios in this survey are targeted at medical aids and are bound by the restrictions imposed by Regulation 30 of the Medical Schemes Act.

Fund Classification Benchmark Description Portfolio Size (R m)Absolute Return FundsABSA Asset Management Medical Aid Fund Segregated Headline CPI+4% 261

Cadiz Medical Aid Fund Segregated Headline CPI +4% 205

Coronation Medical Absolute Pooled Headline CPI +3% 1 388

IS Medical Schemes Real Return Focus Pooled Multi-Managed Headline CPI +4% 471

Momentum AM Medical Provider Fund Pooled CPI + 3% (CPIX +3% prior Jan 09) 106

OMIG Capital Builder Pooled Headline CPI +4% 1 992

Prescient Positive Return Medical Aid Fund Segregated CPI + 3% (CPIX +3% prior Jan 09) 809

Prudential Medical Aid Fund Segregated Headline CPI +5% 760

SIM Medical Aid Domestic Absolute Segregated Headline CPI +5% 576

STANLIB Medical Investment Fund Pooled (Unit Trust) Headline CPI +5% 294

Taquanta Medical Absolute Pooled Headline CPI +4.5% 621

Money Market FundsCadiz Money Market Segregated STEFI 215

Gryphon Domestic Specialist MM Segregated STEFI 675

Investec Stable Money Fund Pooled STEFI 1 376

Momentum AM Medical Money Market Fund Segregated STEFI 1 824

Nedgroup Investments Corporate Money Market Fund Pooled STEFI 7 346

SIM Enhanced Cash Medical Pooled STEFI 33

Taquanta Medical Cash Segregated STEFI 6 060

Balanced Funds

Allan Gray Life Stable Medical Portfolio PooledHeadline CPI +3%, Alexander Forbes 3 month Deposit Index plus 2%

1 586

Foord Medical Segregated 40% ALSI, 10% SAPY, 50% Call Rate + 2% 252

OMIG MacroSolutions Medical Aid Portfolio Segregated Headline CPI +5% 528

Total 27 116


108


SA Medical-Aid Manager WatchTM SurveyIn

vest

ment

Data

to t

he e

nd

of

Decem

ber

2014

1 Ye

ar3

Year

s (p

.a)

5 Ye

ars

(p.a

)7

Year

s (p

.a)

10 Y

ears

(p.a

)

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Vola

tility

Port

folio

Ben

chm

ark

Vola

tility

Port

folio

Ben

chm

ark

Port

folio

Ben

chm

ark

Abs

olut

e R

etur

n Fu

nds

AB

SA

Ass

et M

anag

emen

t Med

ical

Aid

Fun

d10

.47%

9.80

%*

**

**

**

**

*C

adiz

Med

ical

Aid

Fun

d4.

27%

9.80

%*

**

**

**

**

*C

oron

atio

n M

edic

al A

bsol

ute

9.07

%8.

80%

12.1

7%8.

58%

3.81

%11

.95%

8.29

%3.

89%

11.7

0%9.

12%

14.0

2%8.

99%

IS M

edic

al S

chem

es R

eal R

etur

n Fo

cus

9.26

%9.

80%

9.80

%9.

58%

3.35

%9.

50%

9.29

%3.

36%

10.5

2%10

.12%

12.6

3%9.

99%

Mom

entu

m A

M M

edic

al P

rovi

der F

und

8.91

%8.

80%

10.3

6%8.

58%

3.44

%10

.17%

8.29

%4.

48%

9.37

%9.

20%

11.8

7%9.

00%

OM

IG C

apita

l Bui

lder

7.93

%9.

80%

9.35

%9.

58%

3.16

%7.

54%

9.29

%3.

35%

**

**

Pre

scie

nt P

ositi

ve R

etur

n M

edic

al A

id F

und

8.24

%8.

80%

9.60

%8.

58%

4.17

%8.

21%

8.29

%3.

63%

9.58

%9.

20%

12.5

4%9.

00%

Pru

dent

ial M

edic

al A

id F

und

12.0

9%10

.80%

14.7

5%10

.58%

4.77

%13

.96%

10.2

9%5.

28%

12.5

0%11

.12%

**

SIM

Med

ical

Aid

Dom

estic

Abs

olut

e9.

50%

10.8

0%11

.84%

10.5

8%2.

78%

11.5

4%10

.29%

3.21

%10

.51%

11.1

2%*

*S

TAN

LIB

Med

ical

Inve

stm

ent F

und

8.75

%10

.80%

11.5

8%10

.58%

2.77

%9.

48%

10.2

9%3.

50%

8.51

%11

.12%

**

Taqu

anta

Med

ical

Abs

olut

e3.

53%

10.3

0%4.

13%

10.0

8%1.

78%

5.86

%9.

79%

1.61

%7.

63%

10.6

2%8.

17%

10.4

9%

Mon

ey M

arke

t Fun

dsC

adiz

Mon

ey M

arke

t6.

13%

5.90

%6.

08%

5.55

%0.

54%

6.34

%5.

86%

0.46

%7.

73%

7.14

%7.

94%

7.38

%G

ryph

on D

omes

tic S

peci

alis

t MM

6.22

%5.

90%

5.85

%5.

55%

0.12

%6.

25%

5.86

%0.

22%

7.52

%7.

14%

7.80

%7.

38%

Inve

stec

Sta

ble

Mon

ey F

und

5.91

%5.

90%

6.04

%5.

55%

0.23

%6.

52%

5.86

%0.

27%

7.82

%7.

62%

**

Mom

entu

m A

M M

edic

al M

oney

Mar

ket F

und

6.33

%5.

90%

**

**

**

**

**

Ned

grou

p In

vest

men

ts C

orpo

rate

Mon

ey M

arke

t Fu

nd6.

23%

5.90

%*

**

**

**

**

*

SIM

Enh

ance

d C

ash

Med

ical

6.31

%5.

90%

**

**

**

**

**

Taqu

anta

Med

ical

Cas

h6.

52%

5.90

%6.

75%

5.55

%0.

65%

7.08

%5.

86%

0.53

%8.

29%

7.14

%8.

37%

*

Bal

ance

d Fu

nds

Alla

n G

ray

Life

Sta

ble

Med

ical

Por

tfolio

9.98

%8.

80%

8.18

%8.

58%

2.01

%8.

74%

8.29

%1.

76%

9.40

%9.

12%

11.9

3%8.

99%

Foor

d M

edic

al11

.21%

11.1

3%14

.10%

13.4

7%4.

09%

12.7

1%12

.14%

4.32

%10

.66%

10.8

2%13

.50%

13.7

8%O

MIG

Mac

roS

olut

ions

Med

ical

Aid

Por

tfolio

9.85

%10

.80%

12.0

2%10

.58%

4.10

%11

.51%

10.2

9%4.

30%

10.3

4%11

.12%

12.4

0%10

.55%

Stat

istic

sC

ombi

natio

n of

old

CP

IX a

nd n

ew C

PI

5.80

%5.

58%

1.32

%5.

29%

1.21

%6.

20%

6.00

%C

onsu

mer

Pric

e In

flatio

n (O

ld/N

ew c

ombi

ned

CP

I)5.

80%

5.58

%1.

32%

5.29

%1.

21%

6.12

%5.

99%

Con

sum

er P

rice

Infla

tion

excl

udin

g O

ER

[I-N

et

code

: AE

CP

IXU

]5.

99%

5.73

%1.

42%

5.42

%1.

31%

6.22

%6.

01%

Con

sum

er P

rice

Infla

tion

(Hea

dlin

e C

PI)

[I-N

et

code

: AE

CP

I]5.

80%

5.58

%1.

32%

5.29

%1.

21%

6.04

%5.

55%

Med

ical

Con

sum

er P

rice

Infla

tion

6.12

%5.

35%

3.40

%5.

68%

3.83

%6.

57%

6.48

%FT

SE

/ JS

E A

ll S

hare

Inde

x (F

ree

Floa

t)10

.88%

19.4

8%9.

97%

15.7

9%12

.16%

11.2

7%18

.00%

FTS

E /

JSE

SW

IX A

ll S

hare

Inde

x 15

.42%

21.6

1%8.

82%

17.7

8%11

.06%

12.6

8%18

.57%

Sho

rt Te

rm F

ixed

Inte

rest

Rat

e In

dex

5.90

%5.

55%

0.13

%5.

86%

0.19

%7.

14%

7.38

%A

ll B

ond

Inde

x10

.15%

8.74

%6.

90%

9.97

%6.

40%

9.29

%8.

54%

Num

ber O

f Par

ticip

ants

2116

1615

11

* In

flati

on fi

gure

s in

thi

s ta

ble

are

lagg

ed b

y on

e m

onth

.

109

SECTION 3


General

The LDI survey reports on the outperformance LDI asset managers deliver relative to a liability based benchmarks. The survey provides simple numerical measures that encapsulate the risk these managers have exposed clients to as well as the outperformance they have achieved. The survey reports on the performance of ‘composites’, or groups of portfolios with similar characteristics.

Most LDI hedging techniques are based on algorithmic solutions (or rules based mathematical techniques), suggesting that ineffective hedging techniques will very rapidly show up in this survey. The skill set of managers offering low risk solutions, tracking liabilities closely with tight mandate restrictions will generally show up over even short periods such as one year. It is, however, always preferable to evaluate these managers over a longer period if this is available. The period used for analysis should include at least one large shift in yield curves. More than one large shift in yields has occurred during the last twelve months; the short history available in this survey is hence adequate for judging manager’s ability to create effective hedges.

In addition to focusing on tracking liabilities, some managers target outperformance of liabilities by investing in riskier asset classes such as credit (and potentially view taking on the markets). An evaluation of the approach used and the skills of each manager is required to access how likely these managers are to

deliver alpha in the future. The past performance of these managers can be used as part of this evaluation. Longer periods will be required to accurately form a view of how good the manager is at choosing and managing credit. The exact length will depend on the strategy used, but may require five years or longer. Many LDI managers do not have a track record this long. It is useful in such cases to look at the manager’s performance in ordinary credit portfolios.

Investors also need to consider the time frame over which they measure risk when choosing a manager and more importantly, in setting their mandates, mandate restrictions and portfolio targets. For example, listed companies may need to manage pension fund or other sinking fund risks over a very short period to match their reporting requirements. Pension funds that are valued once every three years, with a larger risk appetite and a desire to target growth could use a longer evaluation period such as three years.

Specific measures

Liability outperformance shows how much value, in excess of the growth in liabilities, the manager was able to add for their client. All else being equal, a larger outperformance is preferable. Investors should consider a sufficiently long performance period to smooth over interest, credit and inflation cycles if they are primarily concerned with the longer term performance of their liability hedging activities. For example, certain investors may require close tracking

on a monthly basis, whilst others may be more concerned with longer term value-add. Investors should therefore give adequate attention to manager performance over periods that match their own reporting, risk evaluation and risk tolerance frequency. Consideration should be given to all the stakeholders associated with the liability in reaching this decision.

Liability convexity and duration are technical measures of certain liability characteristics. In general, the larger these quantities are, the more difficult it is to create an effective hedge. These measures can hence be seen as one of the constraining factors governing managers’ efficacy in hedging and adding outperformance. Performance is therefore not necessarily comparable between managers with vastly different liability durations and convexities. A typical defined benefit pensioner liability increasing with full inflation annually has a duration between nine and twelve years at current yields.

The percentage of government bonds shows the portion of the manager’s portfolios invested in government issued bonds. All else equal, the lower this percentage is, the greater one would expect the long-term outperformance of liabilities to be. This figure may also reflect mandate constraints regarding the inclusion of credit.

The percentage of unlisted exposure shows the proportion of the portfolio which is invested in unlisted instruments. Unlisted instruments may (but are not necessarily) subject to

How to interpret and use this survey

LDI is a complex area of investment. Alexander Forbes strongly recommends that investors obtain professional assistance in determining whether a specific LDI strategy or LDI manager is appropriate for them. The guide below is not sufficiently comprehensive to enable most investors to reliably choose an LDI manager without further assistance. The guide will help investors appreciate the drivers of differential performance between managers and strategies at specific times in the market.

110


poor valuations or infrequent valuations by the manager. Many unlisted instruments such as swaps may be valued independently by a counterparty bank, partially mitigating this risk.

A brief description of the benchmark used is given for each composite. Only similar composites should be compared directly. For example, swap-based and bond-based benchmarks are not directly comparable.

Portfolio as a percentage of liability shows the size of the assets managed by the manager relative to the size of the liability the manager is mandated to hedge. For example, a pension fund with a R100 liability that gives their LDI manager R50 and invests R50 into the equity market would have a proportion of 50%. All else being equal, the larger this portion is, the easier it is to hedge a liability. This is hence an additional constraining factor on managers. Portfolios in the survey have been grouped into bands expected to offer similar hedging efficacy.

The minimum funding level shows the lowest funding level that would have applied over various time periods, assuming the investor’s liabilities and assets were equal at the start of the period. Assuming all else is equal, larger minimum funding levels are preferable. A minimum funding level is an important risk measure in evaluating how well a manager can manage downside risk relative to the investor’s liability.

Tracking error shows the dispersion of portfolio returns relative to the investor’s liability. All else being equal, a lower tracking error is preferable. Unfortunately tracking error captures outperformance (desirable) as well as underperformance (undesirable). Where close liability tracking is not essential, the minimum funding level is a

superior measure of risk. For example, a manager providing a high degree of outperformance and high minimum funding levels may be a suitable choice even if this manager has a high tracking error.

The risk adjusted outperformance shows the extent to which managers outperform liabilities, adjusted for the tracking error or risk they have introduced. All else equal, a larger risk adjusted return is preferable. The risk adjusted return may, however, be an inappropriate measure for certain investors with specific liability objectives. For example, some risk-tolerant investors wish to maximise long-term outperformance of liabilities. Such investors should focus on outperformance of liabilities in choosing a manager. Other risk-averse investors may wish to track their liabilities as closely as possible. Such investors should focus on choosing a manager based on tracking error.

LDI Manager Watch™ Survey Commentary

Overall market commentary

Each week National Treasury issues new bonds on behalf of the South African government. This is used to gradually raise money across the year to meet the spending needs of the state. These auctions play a very important role in price discovery for these bonds. These auctions are not conducted through most of December and early January. Trading volumes in the secondary market for these and other bonds also decrease during December as many market participants take time off during the festive season. The price levels observed during December are hence not always reliable indications of where the market will settle during the new year. We caution against reading too much into the volatility observed during December.

During December nominal bond yields increased drastically. Mid-duration yields increased by as much as 54 basis points (+0.54%) with the longest nominal rates remaining reasonably stable across December. The increase in yields occurred relatively linearly

across December and then reversed (again relatively linearly) across the first half of January. A contributing factor to these losses may have been foreigners selling holdings of local bonds due to currency volatility early on in December. The currency lost 75 cents a dollar during a two-week period.

It is not uncommon to see portfolios (including non-LDI) positioned neutrally during December. This is sometimes done to minimise risk while part or all of the portfolio management staff are away. It is also sometimes done to avoid impacting on quarter-end results in December with large swings in value resulting from (spurious, low-trade volume) volatility. As such, it is unsurprising to see that both the inflation-linked bond and nominal bond sections of the survey showed a narrow band of results around 0% outperformance of benchmark liabilities.

Inflation-linked section

At all durations longer than seven years, the inflation-linked bond curve fluctuated within a range of 10 basis points (0.10%), not following the much larger shift seen in the nominal curve. Again, we caution against reading much into the December numbers. Composite performance ranged from -0.05% to +0.15% for the month.

For the calendar year of 2014 Sanlam Structured Solutions was again the top performing composite in absolute terms (1.09%) and on a risk adjusted basis (1.6) for conventional composites with more than 50% of benchmark liabilities invested as assets. The composite holds the same accolade for three-year performance. The composite has an exposure to credit risk of around 60% of the portfolio value.

111

SECTION 3

One can therefore (very roughly) approximate the total return on the inflation-linked composite benchmarks with the 11% return of the BSAGI. Across the year, the FTSE/JSE All Share Total Return Index also returned around 11%. This shows the importance of monitoring performance relative to your liabilities. An investor looking at the 11% return for equities in isolation might think he or she has done well across the year; they earned a positive return and outperformed inflation by a little over 5.5% for the year. In reality the equities are likely to only just have kept pace with the rate of growth in a typical defined benefit pension fund’s liabilities. To the extent that the investor was diversified across equity, cash and shorter duration nominal bonds, they would have likely underperformed their liability benchmark.

Across 2014, the Barclays South Africa Government Inflation-linked Index (BSAGI) returned 11%. The duration of the BSAGI is around 12 years, marginally longer than most of the inflation-linked bond section composites in the survey.

LDI Manager Watch™ Survey Commentary continued

Nominal bond section

A similarly narrow dispersion (0.00%-0.20%) of results was seen in the nominal bond survey. This dispersion is particularly small in the context of the changes in the yield curve across the month. The nominal curve rose dramatically (by up to 54 basis points or +0.54%) at medium-term durations during December. The long end of the curve dropped by around 5 basis points (-0.05%).

Across the year Stanlib’s composite delivered the highest outperformance on an absolute and risk adjusted basis.

Nominal and inflation-linked bond section

Colourfield Composite 4 outperformed liabilities by 1.46% during the month. Owing to the technical nature of this composite (partially funded relative to benchmark liabilities and mixed nominal and inflation-linked exposure) it is important to look at a longer history. Across a 1-year period the mandate has delivered outperformance of 1.76%.

112



Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.

Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

3rd

Part

y A

sset

s

Out

perf

orm

ance

of L

iabi

lity

Liab

ility

Cha

ract

eris

tics

Port

folio

Cha

ract

eris

tics

Mon

thQ

uart

er1

Year

3 Ye

ars

(p.a

.)5

Year

s (p

.a.)

Liab

ility

B

ench

mar

k D

urat

ion

Liab

ility

B

ench

mar

k C

onve

xity

% e

xpos

ure

to c

redi

t as

sets

%

unlis

ted

expo

sure

Port

folio

Si

ze (R

M)

Not

esB

ench

mar

k

Infla

tion-

Link

ed B

ond

Yiel

d C

urve

Ben

chm

arki

ng

Col

ourfi

eld

Com

posi

te 1

ü0.

15%

0.27

%0.

60%

0.94

%*

9.88

53.9

33.

42%

9.98

% 2

020

.36

Liab

ility

be

nchm

ark,

zer

o sp

read

Col

ourfi

eld

Com

posi

te 2

ü0.

12%

0.04

%0.

20%

0.59

%*

9.37

67.9

66.

72%

4.98

% 1

3 78

9.77

Li

abili

ty

benc

hmar

k, z

ero

spre

ad

Col

ourfi

eld

Com

posi

te 3

ü0.

08%

1.86

%5.

72%

2.70

%*

10.4

684

.19

2.38

%0.

00%

2 4

55.8

4

Alth

ough

man

date

d to

man

age

100%

of l

iabi

lity

risk,

a p

ortio

n of

inve

stor

’s re

mai

ning

ass

ets

are

inve

sted

in fi

xed

inco

me

and

sim

ilar a

sset

s. T

he c

ontri

butio

n of

thes

e as

sets

is a

ccou

nted

for

in th

e m

anag

er’s

ben

chm

ark.

Liab

ility

be

nchm

ark,

zer

o sp

read

San

lam

Stru

ctur

ed S

olut

ions

ü-0

.05%

0.52

%1.

09%

1.39

%*

9.23

77

.56

59.4

2%55

.36%

448

.11

Liab

ility

be

nchm

ark,

zer

o sp

read

STA

NLI

B C

ompo

site

1ü

0.13

%0.

30%

0.69

%*

*10

.03

180.

2810

0.00

%4.

78%

831

.96

Liab

ility

be

nchm

ark,

zer

o sp

read

Nom

inal

Bon

d Yi

eld

Cur

ve B

ench

mar

king

Inve

stec

ü0.

00%

0.00

%0.

00%

0.03

%*

2.50

9.00

37.5

0%9.

70%

3 3

59.5

4 Li

abili

ty

benc

hmar

k, z

ero

spre

ad

SIM

Com

posi

te 2

0.20

%-0

.37%

0.02

%0.

54%

0.80

%10

.25

186.

0414

.74%

9.74

% 2

0 49

4.72

Li

abili

ty

benc

hmar

k, z

ero

spre

ad

SIM

Com

posi

te 3

(Nam

ibia

)0.

07%

0.12

%-0

.06%

0.61

%1.

14%

10.0

018

3.68

11.0

0%1.

44%

1 0

98.8

8 Li

abili

ty

benc

hmar

k, z

ero

spre

ad

STA

NLI

B C

ompo

site

2ü

0.06

%0.

56%

1.61

%*

*7.

4611

2.34

7.43

%0.

00%

94.

68

Liab

ility

be

nchm

ark,

-2

5bps

spr

ead

Nom

inal

& In

flatio

n Li

nked

Bon

d C

urve

Ben

chm

arki

ng

Col

ourfi

eld

Com

posi

te 4

ü1.

46%

0.90

%1.

76%

**

7.67

54.5

26.

02%

0.00

% 1

023

.31

Liab

ility

be

nchm

ark,

zer

o sp

read

Tota

l 4

5 61

7.19

Mar

ket I

ndic

es &

Sta

tistic

sA

ll B

ond

Inde

x-1

.55%

4.25

%10

.15%

8.74

%9.

97%

Bar

clay

s - B

ES

A S

A In

flatio

n Li

nked

Inde

x-0

.13%

2.24

%11

.15%

10.1

7%10

.90%

BE

SA

Sta

ndar

d B

ank

Cre

dit

Inde

x-0

.92%

5.37

%9.

14%

7.27

%10

.54%

STe

FI0.

56%

1.55

%5.

90%

5.55

%5.

86%

113

SECTION 3



Invest

ment

Data

to t

he e

nd

of

Decem

ber

2014

Ris

k St

atis

tics

LDI p

ortfo

lio a

s a

perc

enta

ge o

f lia

bilit

y

(P =

Phy

sica

l / E

= E

ffect

ive)

Min

imum

fund

ing

leve

l ass

umin

g an

art

ifici

al

star

ting

leve

l of 1

00%

at t

he s

tart

of t

he p

erio

dTr

acki

ng E

rror

(Ann

ualis

ed)

<25%

25-5

0%50

-75%

>75%

Qua

rter

1 Ye

ar3

Year

s5

Year

sQ

uart

er1

Year

3 Ye

ars

5 Ye

ars

Infla

tion-

Link

ed B

ond

Yiel

d C

urve

Ben

chm

arki

ngC

olou

rfiel

d C

ompo

site

1P

E10

0.10

%10

0.09

%99

.96%

*0.

23%

0.55

%0.

72%

*C

olou

rfiel

d C

ompo

site

2P

E99

.92%

100.

01%

99.8

2%*

0.42

%0.

38%

0.62

%*

Col

ourfi

eld

Com

posi

te 3

P E

101.

17%

101.

17%

98.6

9%*

1.88

%2.

34%

2.92

%*

San

lam

Stru

ctur

ed S

olut

ions

P E

100.

14%

100.

33%

99.6

8%*

0.85

%0.

68%

1.05

%*

STA

NLI

B C

ompo

site

1P

E10

0.17

%99

.94%

**

0.34

%1.

35%

**

Nom

inal

Bon

d Yi

eld

Cur

ve B

ench

mar

king

Inve

stec

P E

100.

00%

100.

00%

100.

00%

*0.

00%

0.00

%0.

04%

*S

IM C

ompo

site

2P

E99

.43%

99.8

2%10

0.00

%10

0.57

%1.

00%

0.78

%0.

68%

0.70

%S

IM C

ompo

site

3 (N

amib

ia)

P E

100.

05%

99.8

0%10

0.48

%10

1.56

%0.

14%

0.33

%0.

97%

2.29

%S

TAN

LIB

P E

100.

05%

100.

41%

**

0.78

%1.

05%

**

Nom

inal

& In

flatio

n Li

nked

Bon

d C

urve

Ben

chm

arki

ngC

olou

rfiel

d C

ompo

site

4P

E99

.44%

100.

29%

**

3.49

%1.

97%

**

114




Risk Adjusted Measure Quarter 1 Year 3 Years (p.a.) 5 Years (p.a.)

Inflation-Linked Bond Yield Curve BenchmarkingColourfield Composite 1 - 1.09 1.32 *

Colourfield Composite 2 - 0.53 0.95 *

Colourfield Composite 3 - 2.44 0.93 *

Sanlam Structured Solutions - 1.60 1.33 *

STANLIB Composite 1 - 0.51 * *

Nominal Bond Yield Curve BenchmarkingInvestec - Zero tracking error 0.86 *

SIM Composite 2 - 0.02 0.80 1.15

SIM Composite 3 (Namibia) - -0.19 0.62 0.50

STANLIB - 1.54 * *

Nominal Bond Yield Curve BenchmarkingColourfield Composite 4 - 0.89 * *



4Case Study

Fees – Indicative Range

Base Fees plus Performance Fees – Indicative Ranges

Fee Analysis

118


The metrics explored in this case study are based on holdings data and use ex-ante measures. The risk engine used in computing ex-ante risk measures is SunGard APT.

Certain assumptions were made to facilitate this process. They include:

■ Fixed income instruments were consolidated as cash.

■ Proxies were set for instruments not covered in the risk model.

■ Sub-funds were unpacked or mapped to respective instruments that represent the fund in the risk model.

■ Derivatives exposures were calculated using full revaluation.

If an instrument not covered in the risk model cannot be treated and accounted for in any of the methods outlined

Case Study: A Summary Analysis of South African Equity Managers

above, the model assumes 50% specific risk for it with zero correlation to other instruments and hence no diversification is realised from it. The results are presented anonymously.

What are the distinguishing characteristics of SA Active Managers?

The study utilised a holdings based approach. In this section the study will focus on describing the characteristics of the Benchmark cognisant category and Non-benchmark cognisant category of the equity survey. Conviction, magnitude of risk, quality of risk, style and other measures were constructed and analysed. However, given the emphasis of the main article, the analysis presented is restricted to the following measures:

1. Number of Instruments2. Concentration Index3. Active Share4. Beta5. Tracking Error6. Value at Risk (VaR)7. Style Analysis

The measures presented give a fair representation of the empirical distribution of risk measures within South African asset managers. The reader is cautioned that the analysis has survivorship biases (Read: Appendix Methodology) and interpretation of results needs to be tempered. The analysis further highlighted that some composites were categorised incorrectly as the characteristics displayed were inconsistent to the peer group.

This case study is an extension of the earlier article: “Peeling back the layers: There is more to an equity manager than their performance” and should be read first to assist the reader with the results presented here.

The case study is based on the equity composites that participate in the Alexander Forbes Manager Watch™ Equity Survey. Participation in this study was voluntary and restricted to managers who are in the survey or applied to be in the survey at the time of the analysis. Multi-managers were excluded as the purpose of the survey was to analyse single-manager composites.

119

SECTION 4

Number of Instruments

Number of Instruments

Fig. 1: Number of Instruments held in each composite (Benchmark Cognisant)

Fig. 2: Number of Instruments held in each composite (Non-Benchmark Cognisant)

Benchmark Cognisant

The bulk of the investment manager composites in the benchmark cognisant category are fairly aggressive as measured by the number of instruments held in the composite. This ranges between 30 and 87 shares, with the median usually being less than a third of the number of shares in the benchmark.

The composites that have much higher numbers of shares are quantitative strategies. These strategies purchase most of the shares in the benchmark, but weight them differently and they occasionally purchase shares outside the benchmark. Instances of off-benchmark holdings tend to be very rare.

Non-Benchmark Cognisant

The composites in the non-benchmark cognisant category are aggressive except a few outlying ones, with the number of instruments ranging between 30 and 65.

There are fewer outlying composites in this category. Those that do exist represent strategies that:

■ Hold small weights in off-benchmark positions or small capitalization shares

Some of the composites with a higher number of instruments have requested to be moved to the benchmark cognisant category. Using further measures, we will investigate if they share other characteristics with the benchmark cognisant category as then the move will be warranted.

The median number of shares in the non-benchmark cognisant category is not significantly different from the median in the benchmark cognisant category; the median numbers are respectively 44 and 50.

We have found that number of instruments on its own is not enough to differentiate the two categories and we need to use additional measures to differentiate the categories based on conviction.

120


Fig. 3: Concentration Index: Survey Category Medians

Concentration Index

Category Medians

The graph shows the median concentration across composites of each category and indicates that there is no meaningful difference between the categories based on this measure. The non-benchmark cognisant composites tend to have high concentration than the benchmark cognisant composite, but this distinction is minor.

Active Share

Category Medians

Using active share, it is far easier to distinguish between the two categories. The median measure of active share for non-benchmark cognizant composites is significantly higher than for benchmark-cognisant managers.

This suggests that managers express higher levels of conviction relative to the benchmark when managing non-benchmark composites. This could be due to portfolio construction methods that either disregard the benchmark or seek to take very large positions relative to the benchmark.

Looking at active share is important as having small positions in a large number of shares is likely to be indicative of a low-conviction approach. It is also likely to generate returns similar to the benchmark. In the section on number of shares, composites MGR 6, MGR 14 and MGR 15 are shown with a high number of instruments. In the following graph, we can also see that these three composites have low active shares.

Fig. 4: Active Share: Survey Category medians

121

SECTION 4

Active Share

Non-Benchmark Cognisant

In contrast to benchmark cognisant composites, the non-benchmark cognisant composites are very aggressive with an average median active share of 58% and average maximum active share of 85%. The particularly high numbers for active share tend to be concentrated amongst the value managers.

Composites in this category do reduce their active shares in times where they see the market as offering fewer opportunities for excess returns. However, there are some managers with lower active shares in this category and those managers have requested to change category. These are the same managers highlighted in the earlier discussion on number of instruments as being outliers.

This indicates how complementary the various measures of conviction are. This discussion also demonstrates that in the universe of large South African equity managers for retirement funds, the most important metric for distinguishing conviction is active share.

Benchmark Cognisant

Looking at the active share distribution of the benchmark cognisant managers, the average median active share in this category is 36% and average maximum active share of 51%. This indicates that, in most cases, the composites tend not to take significant positions relative to respective indices or benchmarks. This is consistent with our expectation of the category.

Active Share

Fig. 5: Active Share: Benchmark Cognisant

Fig. 6: Active Share: Non-Benchmark Cognisant

122


Beta

Beta

Benchmark Cognisant

Benchmark-managers tend to have betas of between 0.85 and 1.1 through time. The graph reflects some stability with very little variation in the beta measure.

Fig. 7: Box and Whisker Plot: Beta - Benchmark Cognisant

Non-benchmark Cognisant

Unlike benchmark cognisant managers, non-benchmark managers show significant variation in their betas, ranging from 0.4 to 1.4. Managers with a clear non-benchmark characteristics are those with either:1. Average beta not close to one2. High variations of beta

Fig. 8: Box and Whisker Plot: Beta – Non-Benchmark Cognisant

123

SECTION 4

Tracking Error

Tracking Error

Benchmark Cognisant

The benchmark cognisant universe of composites has a long term median tracking error of 3.1% with the average maximum tracking error being 4.2%. There have been brief instances of managers exceeding 5% but this usually reversed in subsequent months. Due to the return expectations related to the tracking error, managers with less than 2% tracking error are not expected to generate high active returns and border on the enhanced index category.

Fig. 9: Tracking Error: Benchmark Cognisant

Non-benchmark Cognisant

The non-benchmark cognisant universe of composites has a long-term median tracking error of 6.1% with the average maximum tracking error being 12%. The lower quartile average tracking error is greater than 4%. Managers with clear non-benchmark cognisant characteristics are those with either:1. High average tracking errors2. Large variation in tracking errors

Fig. 10: Tracking Error: Non-Benchmark Cognisant

124


Value at Risk (VaR)

Fig. 11: Value At Risk: Benchmark Cognisant

Fig. 12: Value at Risk: Non-Benchmark Cognisant

The composites VaR numbers resemble the volatility structure of the market, showing an increase over periods when volatility in the market is high and decreasing when market volatility is coming down.

It is not obvious from the graphs below, but the non-benchmark cognisant composites generally have low VaR and this is revealed when we seek to answer the question: “Do South African equity managers protect the investor in down markets?”

125

SECTION 4

Value Style

Momentum Style

Active Value Score: Non-benchmark Cognisant

There are a number of non-benchmark cognisant composites with prevalent value bias relative to their respective benchmarks. Analyzing individual managers as demonstrated we have established that most managers have consistently applied their bias to this factor; by either being consistently positively biased, negatively biased or neutral. These composites invest in shares with high price to book ratios relative to shares in their respective benchmarks.

Fig. 13: Value Style: Non-Benchmark Cognisant

Active Momentum Score: Benchmark Cognisant

Momentum as a factor is calculated as an average of 3-month, 6-month and 12-month weekly price returns. Momentum is not a dominant theme in this category, yet we note composites in the benchmark cognizant category are somewhat neutral momentum in the period 2009 and 2010.

Fig. 14: Momentum Style: Benchmark Cognisant

126


Momentum Style

Does the empirical evidence support expected statistical relationships?

Active Momentum Score: Non-benchmark Cognisant

There a number of non-benchmark composites that have exposure to momentum; they have negative relative momentum scores to their benchmarks. This means they are, relative to their benchmarks, underweight stocks with high momentum scores. Analyzing individual managers as demonstrated we have established that most managers have not consistently applied their bias to this factor; by switching exposure in different market cycles to momentum. This is true for both categories.

Fig. 15: Momentum Style: Non-Benchmark Cognisant

This does not mean that these variables do not provide insight into the risk but rather that it provides little predictive value for the other variables. The more interesting relationships are explored below. The following scatterplots visually describe relationships between the two sets of data – SA Benchmark cognisant survey managers (Blue dots) and SA Non-benchmark cognisant survey managers (Red circles).

This study provided an ideal empirical basis to test the existence of relationships between the various metrics that were used to analyse equity composites. These metrics have often proved to be Rules of Thumb that are applied to funds. It provides a framework of reference for the South African equity managers and measuring the active risk characteristics. The following variables showed little or no relationship to other variables:1. Number of instruments2. Concentration3. Style Factors

127

SECTION 4

Tracking Error vs Active Share

Tracking Error vs Beta

Tracking Error vs Active Share

There exists an almost linear relationship between the two variables, where one expects the tracking error of the portfolio to be higher where active share is higher. This is consistent with heuristic thinking on the relationship between the variables.

Fig. 16: Scatterplot: Tracking Error vs Active Share

Tracking Error vs Beta

There is a marked difference between the two category types. In Benchmark cognisant portfolio construction there seems to be little relationship between beta and tracking error, indicative of a relative approach to portfolio construction. Within non-benchmark cognisant composites there is evidence that as the beta approaches one, the tracking error approaches zero.

Reciprocally, we could say that as the beta of the portfolio moves away from one the tracking error estimate becomes larger. This may be a function of the absolute mindset of portfolio construction. The empirical evidence shows that it is also possible to construct low beta portfolios without taking on significant active risk. Fig. 17: Scatterplot: Tracking Error vs Beta

128


Value at Risk (VaR) vs Beta

Value at Risk vs Beta

Again there is a dichotomous result between the two categories. Benchmark cognisant composites have little or no relationship to each other. A weak relationship exists for non-benchmark cognisant composites that high beta portfolios lead to higher VaR outcomes.

Fig. 18: Scatterplot: Value at Risk vs Beta

Fig. 19: % of Composites with VaR better than SWIX

Many managers (specifically non benchmark strategies) have stated that they have a mindset which biases their portfolio towards protecting the investor against downside risks. This study was an ideal position to test this understanding. The VaR for each composite through time was computed and was then compared against the VaR of the SWIX benchmark (This could have been done to any market benchmark).

Remember: The VaR estimates the minimum loss of the portfolio under extreme market conditions (used 95% level of probability). A portfolio with a lower VaR is expected to lose less and is better at protecting the investor.

% Composite with VaR less than Market VaR (SWIX)

For the entire period under analysis, there were only 3 periods where the non-benchmark cognisant funds in the analysis had a worse prospective VaR estimate than the SWIX. Up to 2009, the more than 75% of composites had better VaR estimates but this has degraded subsequently. However, most funds are expected to lose less than the SWIX in negative markets. This provides empirical support for the

Do South African equity managers protect the investor in down markets?

managers that they have constructed portfolios that were structured to protect better in a down market.

One should note that markets were positive and there is no such thing as a “free lunch”. These portfolios by protecting the investor against

negative markets simultaneously gave up performance in positive markets and would have had to rely on stock specific outcomes to outperform the SWIX.

More analysis on this component will be conducted in the future.

129

SECTION 4

Survivorship: Full Period

In the following graph, we represent survivorship over the full period. The number in red represents the composites that no longer participate in 2014, while the blue number represents those that do.

Appendix One: Methodology

Participants were required to send monthly month-end composite holdings from the earlier of January 2006 and inception up until December 2013.

Survivorship: Year-on-Year

The diagram illustrates survivorship over this period on a year-on-year basis. For instance, in 2006 there were 45 participants and 42 (blue bar) of them continued to participate in 2007, meaning 3 (dark red bar) were not participants in 2007. This could be due to:

■ Mergers and changes in the name of the manager;

■ Managers or funds ceased to exist;

■ Voluntary withdrawal.

For instance, only around 45% of the equity survey participants in 2006 continue to participate in 2014. What this demonstrates is the role of survivorship bias, especially give

the voluntary nature of the survey. This danger is a key reason in why applications to join the survey are interrogated and why managers need to be closely monitored once they join

the survey. Only by examining metrics beyond the standard risk-return metrics can we ensure that “apples” are being compared with “apples”.

130


Base Fees – Indicative Range

Bala

nced

Glo

bal M

andate

, B

IV, S

egre

gate

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Parti

cipa

nts

per F

ee B

and

0-50

mill

ion

0.64

% 9

51

-100

mill

ion

0.66

% 1

0 10

1-15

0 m

illio

n0.

63%

10

151-

250

mill

ion

0.62

% 1

0 25

1-50

0 m

illio

n0.

59%

10

500

+ m

illio

n0.

55%

10

Inte

rnat

iona

l1.

12%

10

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

85%

0.35

%51

-100

mill

ion

1.00

%0.

35%

101-

150

mill

ion

0.85

%0.

35%

151-

250

mill

ion

0.85

%0.

35%

251-

500

mill

ion

0.85

%0.

35%

500

+ m

illio

n0.

85%

0.35

%In

tern

atio

nal

1.50

%0

60%

Bala

nced G

lobal M

andate

, B

IV, P

oole

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

72%

13

51-1

00 m

illio

n0.

69%

14

101-

150

mill

ion

0.67

% 1

4 15

1-25

0 m

illio

n0.

64%

14

251-

500

mill

ion

0.62

% 1

4 50

0 +

mill

ion

0.59

% 1

4 In

tern

atio

nal

0.89

% 1

4 H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

1.10

%0.

50%

51-1

00 m

illio

n1.

00%

0.50

%10

1-15

0 m

illio

n1.

00%

0.50

%15

1-25

0 m

illio

n1.

00%

0.48

%25

1-50

0 m

illio

n1.

00%

0.45

%50

0 +

mill

ion

1.00

%0.

40%

Inte

rnat

iona

l1.

35%

0.60

%

Bal

ance

d D

omes

tic

Man

dat

e, B

IV, S

egre

gate

d P

ortf

olio

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.72

% 7

51

-100

mill

ion

0.74

% 1

0 10

1-15

0 m

illio

n0.

70%

10

151-

250

mill

ion

0.68

% 1

0 25

1-50

0 m

illio

n0.

65%

10

500

+ m

illio

n0.

61%

10

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n1.

10%

0.60

%51

-100

mill

ion

1.10

%0.

55%

101-

150

mill

ion

1.10

%0.

54%

151-

250

mill

ion

1.10

%0.

51%

251-

500

mill

ion

1.10

%0.

49%

500

+ m

illio

n1.

10%

0.40

%

Bala

nced D

om

est

ic M

andate

, B

IV, P

oole

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

75%

7

51-1

00 m

illio

n0.

64%

8

101-

150

mill

ion

0.63

% 8

15

1-25

0 m

illio

n0.

60%

8

251-

500

mill

ion

0.58

% 8

50

0 +

mill

ion

0.57

% 8

H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

1.10

%0.

30%

51-1

00 m

illio

n1.

10%

0.15

%10

1-15

0 m

illio

n1.

10%

0.13

%15

1-25

0 m

illio

n1.

10%

0.13

%25

1-50

0 m

illio

n1.

10%

0.13

%50

0 +

mill

ion

1.10

%0.

10%

Specia

list

Dom

est

ic E

quit

y M

andate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.69

% 1

6 51

-100

mill

ion

0.65

% 1

8 10

1-15

0 m

illio

n0.

60%

18

151-

250

mill

ion

0.58

% 1

8 25

1-50

0 m

illio

n0.

55%

18

500

+ m

illio

n0.

51%

18

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n1.

25%

0.39

%51

-100

mill

ion

1.10

%0.

35%

101-

150

mill

ion

1.10

%0.

33%

151-

250

mill

ion

1.10

%0.

33%

251-

500

mill

ion

1.10

%0.

33%

500

+ m

illio

n1.

10%

0.29

%

Specia

list

Dom

est

ic F

ixed Inte

rest

Mandate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.40

% 1

3 51

-100

mill

ion

0.35

% 1

4 10

1-15

0 m

illio

n0.

32%

14

151-

250

mill

ion

0.30

% 1

4 25

1-50

0 m

illio

n0.

28%

14

500

+ m

illio

n0.

25%

14

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

70%

0.17

%51

-100

mill

ion

0.58

%0.

15%

101-

150

mill

ion

0.47

%0.

13%

151-

250

mill

ion

0.45

%0.

11%

251-

500

mill

ion

0.41

%0.

11%

500

+ m

illio

n0.

39%

0.10

%

Specia

list

Dom

est

ic M

oney M

ark

et

Mand

ate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.25

%15

51-1

00 m

illio

n0.

23%

1610

1-15

0 m

illio

n0.

22%

1615

1-25

0 m

illio

n0.

21%

1625

1-50

0 m

illio

n0.

19%

1650

0 +

mill

ion

0.17

%16

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

40%

0.12

%51

-100

mill

ion

0.30

%0.

10%

101-

150

mill

ion

0.30

%0.

10%

151-

250

mill

ion

0.30

%0.

10%

251-

500

mill

ion

0.30

%0.

08%

500

+ m

illio

n0.

30%

0.08

%

Specia

list

Dom

est

ic A

bso

lute

Retu

rn M

and

ate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.73

% 1

1 51

-100

mill

ion

0.69

% 1

1 10

1-15

0 m

illio

n0.

67%

11

151-

250

mill

ion

0.66

% 1

1 25

1-50

0 m

illio

n0.

63%

11

500

+ m

illio

n0.

60%

11

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n1.

25%

0.50

%51

-100

mill

ion

1.25

%0.

30%

101-

150

mill

ion

1.25

%0.

25%

151-

250

mill

ion

1.25

%0.

25%

251-

500

mill

ion

1.25

%0.

25%

500

+ m

illio

n1.

25%

0.25

%

Specia

list

Glo

bal A

bso

lute

Retu

rn M

and

ate

, B

IV,

Segre

gate

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

77%

9

51-1

00 m

illio

n0.

73%

9

101-

150

mill

ion

0.69

% 1

0 15

1-25

0 m

illio

n0.

68%

10

251-

500

mill

ion

0.64

% 1

0 50

0 +

mill

ion

0.61

% 1

0 In

tern

atio

nal

0.98

% 1

0 H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

1.00

%0.

52%

51-1

00 m

illio

n0.

90%

0.50

%10

1-15

0 m

illio

n0.

90%

0.48

%15

1-25

0 m

illio

n0.

90%

0.48

%25

1-50

0 m

illio

n0.

89%

0.48

%50

0 +

mill

ion

0.89

%0.

43%

Inte

rnat

iona

l1.

35%

0.60

%

131

SECTION 4

Base Fees plus Performance Fees – Indicative Ranges

Bala

nced

Glo

bal M

andate

, B

IV, S

egre

gate

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Parti

cipa

nts

per F

ee B

and

0-50

mill

ion

0.35

% 5

51

-100

mill

ion

0.35

% 5

10

1-15

0 m

illio

n0.

34%

5

151-

250

mill

ion

0.33

% 5

25

1-50

0 m

illio

n0.

32%

5

500

+ m

illio

n0.

31%

5

Per

form

ance

fees

15.0

0% 5

H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

0.45

%0.

25%

51-1

00 m

illio

n0.

45%

0.25

%10

1-15

0 m

illio

n0.

45%

0.25

%15

1-25

0 m

illio

n0.

45%

0.25

%25

1-50

0 m

illio

n0.

45%

0.25

%50

0 +

mill

ion

0.45

%0.

25%

Per

form

ance

fees

20.0

0%10

.00%

Bala

nced G

lobal M

andate

, B

IV, P

oole

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

39%

5

51-1

00 m

illio

n0.

39%

5

101-

150

mill

ion

0.38

% 5

15

1-25

0 m

illio

n0.

37%

5

251-

500

mill

ion

0.36

% 5

50

0 +

mill

ion

0.35

% 5

P

erfo

rman

ce fe

es17

.00%

5

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

50%

0.30

%51

-100

mill

ion

0.50

%0.

30%

101-

150

mill

ion

0.50

%0.

30%

151-

250

mill

ion

0.50

%0.

30%

251-

500

mill

ion

0.50

%0.

30%

500

+ m

illio

n0.

50%

0.25

%P

erfo

rman

ce fe

es20

.00%

10.0

0%

Bal

ance

d D

omes

tic

Man

dat

e, B

IV, S

egre

gate

d P

ortf

olio

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.42

% 3

51

-100

mill

ion

0.42

% 3

10

1-15

0 m

illio

n0.

41%

3

151-

250

mill

ion

0.40

% 3

25

1-50

0 m

illio

n0.

39%

3

500

+ m

illio

n0.

38%

3

Per

form

ance

fees

18.3

3% 3

H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

0.45

%0.

40%

51-1

00 m

illio

n0.

45%

0.40

%10

1-15

0 m

illio

n0.

45%

0.37

%15

1-25

0 m

illio

n0.

45%

0.34

%25

1-50

0 m

illio

n0.

45%

0.31

%50

0 +

mill

ion

0.45

%0.

30%

Per

form

ance

fees

20.0

0%15

.00%

Bala

nced D

om

est

ic M

andate

, B

IV, P

oole

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

45%

2

51-1

00 m

illio

n0.

45%

2

101-

150

mill

ion

0.44

% 2

15

1-25

0 m

illio

n0.

42%

2

251-

500

mill

ion

0.41

% 2

50

0 +

mill

ion

0.40

% 2

P

erfo

rman

ce fe

es17

.50%

2

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

50%

0.40

%51

-100

mill

ion

0.50

%0.

40%

101-

150

mill

ion

0.50

%0.

37%

151-

250

mill

ion

0.50

%0.

34%

251-

500

mill

ion

0.50

%0.

31%

500

+ m

illio

n0.

50%

0.30

%P

erfo

rman

ce fe

es20

.00%

15.0

0%

Specia

list

Dom

est

ic E

quit

y M

andate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.44

% 1

0 51

-100

mill

ion

0.36

% 1

0 10

1-15

0 m

illio

n0.

34%

10

151-

250

mill

ion

0.33

% 1

0 25

1-50

0 m

illio

n0.

31%

10

500

+ m

illio

n0.

30%

10

Per

form

ance

fees

15.6

2% 1

0 H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

1.25

%0.

15%

51-1

00 m

illio

n0.

64%

0.15

%10

1-15

0 m

illio

n0.

54%

0.15

%15

1-25

0 m

illio

n0.

49%

0.15

%25

1-50

0 m

illio

n0.

43%

0.15

%50

0 +

mill

ion

0.43

%0.

15%

Per

form

ance

fees

20.0

0%10

.00%

Specia

list

Dom

est

ic F

ixed Inte

rest

Mandate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.20

% 3

51

-100

mill

ion

0.20

% 3

10

1-15

0 m

illio

n0.

20%

3

151-

250

mill

ion

0.20

% 3

25

1-50

0 m

illio

n0.

20%

3

500

+ m

illio

n0.

20%

3

Per

form

ance

fees

20.0

0% 3

H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

0.20

%0.

20%

51-1

00 m

illio

n0.

20%

0.20

%10

1-15

0 m

illio

n0.

20%

0.20

%15

1-25

0 m

illio

n0.

20%

0.20

%25

1-50

0 m

illio

n0.

20%

0.20

%50

0 +

mill

ion

0.20

%0.

20%

Per

form

ance

fees

25.0

0%15

.00%

Specia

list

Dom

est

ic M

oney M

ark

et

Mand

ate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.14

%2

51-1

00 m

illio

n0.

14%

210

1-15

0 m

illio

n0.

14%

215

1-25

0 m

illio

n0.

14%

225

1-50

0 m

illio

n0.

14%

250

0 +

mill

ion

0.14

%2

Per

form

ance

fees

17.5

0%2

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

15%

0.13

%51

-100

mill

ion

0.15

%0.

13%

101-

150

mill

ion

0.15

%0.

13%

151-

250

mill

ion

0.15

%0.

13%

251-

500

mill

ion

0.15

%0.

13%

500

+ m

illio

n0.

15%

0.13

%P

erfo

rman

ce fe

es20

.00%

15.0

0%

Specia

list

Dom

est

ic A

bso

lute

Retu

rn M

and

ate

Aver

age

fee

per b

and

Fee

Ban

dAv

erag

e Fe

e (%

)P

artic

ipan

ts p

er F

ee B

and

0-50

mill

ion

0.42

% 5

51

-100

mill

ion

0.35

% 6

10

1-15

0 m

illio

n0.

33%

6

151-

250

mill

ion

0.33

% 6

25

1-50

0 m

illio

n0.

33%

6

500

+ m

illio

n0.

32%

6

Per

form

ance

fees

14.6

0% 6

H

ighe

st a

nd L

owes

t per

fee

band

Fee

Ban

d H

igh

Low

0-50

mill

ion

0.50

%0.

30%

51-1

00 m

illio

n0.

50%

0.20

%10

1-15

0 m

illio

n0.

50%

0.15

%15

1-25

0 m

illio

n0.

50%

0.15

%25

1-50

0 m

illio

n0.

50%

0.15

%50

0 +

mill

ion

0.50

%0.

15%

Per

form

ance

fees

20.0

0%10

.00%

Specia

list

Glo

bal A

bso

lute

Retu

rn M

and

ate

, B

IV,

Segre

gate

d P

ort

folio

sAv

erag

e fe

e pe

r ban

dFe

e B

and

Aver

age

Fee

(%)

Par

ticip

ants

per

Fee

Ban

d0-

50 m

illio

n0.

39%

4

51-1

00 m

illio

n0.

38%

4

101-

150

mill

ion

0.38

% 4

15

1-25

0 m

illio

n0.

38%

4

251-

500

mill

ion

0.38

% 4

50

0 +

mill

ion

0.38

% 4

P

erfo

rman

ce fe

es15

.00%

4

Hig

hest

and

Low

est p

er fe

e ba

ndFe

e B

and

Hig

hLo

w0-

50 m

illio

n0.

50%

0.35

%51

-100

mill

ion

0.50

%0.

33%

101-

150

mill

ion

0.50

%0.

30%

151-

250

mill

ion

0.50

%0.

30%

251-

500

mill

ion

0.50

%0.

30%

500

+ m

illio

n0.

50%

0.30

%P

erfo

rman

ce fe

es20

.00%

10.0

0%

132


Fee Analysis

Investment management fees are intended to compensate investment managers for their time and skill to manage the assets of a fund, and are usually in the form of a percentage of the assets managed.

Africa are among the highest in the world”. The purpose of the Alexander Forbes Fee Survey is to create transparency and visibility of fees charged by the investment industry for institutional pension fund mandates.

The main benefit is to provide trustees, asset consultants, and advisors with a framework to benchmark the fees that they are being charged. The survey was conducted across nine popular pension fund mandates:

Fees can be on a fixed or sliding scale that decreases with fund size. The main types of investment fees are annual base fees and performance fees. The performance fee is generally calculated as a percentage of investment profits, often both realised and unrealised, in simple terms we can define performance fees as managers share in the funds' profits but not in their losses.

Fees have become exceedingly popular in the last couple of years with National Treasury raising concerns regarding investment fees in South Africa, “Retirement investment fees in South

Balanced Mandates Specialist Mandates

Global Mandate, Biv, Segregated Portfolio Domestic Equity Mandate

Domestic Mandate, Biv, Segregated Portfolio Domestic Bond Mandate

Global Mandate, BIV, Pooled Portfolio Domestic Cash Mandate

Domestic Mandate, BIV, Pooled Portfolio Domestic Absolute Mandate

Global Absolute Mandate

Limitations: ■ The universe was restricted to asset managers that participate in the Alexander Forbes surveys.

■ Participation in the survey was voluntary. ■ Not all managers offer all the mandates, so participants across these mandates varied.

■ Not all managers have a base-only fee offering. ■ The standardisation of fees in AuM categories does not reflect an individual manager’s fee scale.

■ The participants in each annual survey were not constant.

The managers were asked to break down their fee structure into a standardised Asset under Management (AuM) framework:0 -50 million51-100 million101-150 million151 -250 million251 – 500 million500 + millionInternational

133

SECTION 4

Domestic Balanced Mandates

The average Balanced mandate fee has increased in 2014 by more than 10%. This was for both segregated and pooled mandates. An interesting trend observed in this survey was

that Balanced pooled products have shifted from a flat fee across all AuM categories to a sliding fee scale similar to segregated mandates. There are no material differences in fees between

segregated and pooled products, but segregated products offer many advantages over pooled solutions to a pension fund.

Global Balanced Mandates

On the positive side the average global balanced mandates has become cheaper in 2014, after seeing an increase in fees over 2013. Fees for segregated mandates were

Generally, more managers offered performance fee mandate options. Overall base fees on all mandates decreased, with the performance fee element within these mandates also following suit.

marginally cheaper than pooled products. Segregated product fees ranged between 50 bps and 63 bps. International fees however are becoming more expensive on average,

higher by over 15bps in 2014. Fees for minimum assets (AuM 0-50 million) have come down by on average 7 bps which is beneficial for smaller funds.

Domestic Balanced Segregated

0.80%

0.00%

2012 2013 20140.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

AuM 0-50 million

AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

Global Balanced Segregated

0.00%2012 2013 2014

0.20%

0.40%

0.60%

0.80%

1.00%

1.20% AuM 0-50 million

AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

AuM International

134


Domestic Money Mandates

Domestic Fixed Income Mandates

Domestic fixed income fees average between 27 bps and 41 bps. Fees have declined across the AuM categories by 2-4 bps,

Domestic equity mandate fees ranged between 49 bps and 59 bps. After seeing a slight spike in 2013, fees were reduced between 3-5 bps across all categories. Maximum fees have also reduced.

implying a reduction in fee of over 10%. Average fees have declined largely due to managers in the top end having reduced their fees.

Minimum fees have crept back to 2012 levels. However, fees for small mandates have increased.

Domestic Equity

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

2012 2013 2014

AuM 0-50 million

AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

Domestic Fixed Income

0.15%

2012 2013 2014

0.10%

0.05%

0.00%

0.20%

0.25%

0.30%

0.35%

0.40%


AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

135

SECTION 4

Global Absolute Return Mandates

Domestic fees for global absolute return mandates ranged between 59 bps and 75 bps. Global and domestic fees have increased

by similar margins for smaller AuMs and have declined for larger AuMs. On average Absolute return

strategies remain more expensive than pure balanced mandates by over 10 bps.

Domestic Money Market Mandates

After showing an initial declining trend, money market fees are back to 2012 levels with fees ranging between 17 bps and 25 bps. Fees for minimum assets (AuM 0-50 million) are actually up by 1 basis point, implying 4% increase in fee.

Global Absolute Fees

0.60%

2012 2013 2014

0.40%

0.20%

0.00%

0.80%

1.00%


AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

AuM International

0.05%

0.00%

0.10%

0.15%

0.20%

0.25%

0.30%

Domestic Money Market Fees

2012 2013 2014

AuM 0-50 million

AuM 151-200 million

AuM 51-100 million

AuM 101-150 million

AuM 251-500 million

AuM 500 million+

5Glossary


138


Investment Survey Glossary

Absolute Return Investment Strategy

An actively managed investment objective that seeks consistent, positive returns regardless of whether markets are rising or falling; and without reference to a benchmark index for comparison. While not all absolute return strategies are alike, typically, the goal is to produce returns in excess of the inflation rate and/or cash that can be measured by the consumer price index (CPI) while protecting against capital losses.

Active Fund Management

An investment approach that relies on the belief that it is possible to outperform the market. Typically an actively managed fund would select asset classes and investment securities that are expected to perform better than the market or benchmark.

Active Return

The difference in returns between a fund and its benchmark at each point in time.

ALBI (All Bond Index)

A popular index used to benchmark performance for South African fixed income (bond) portfolios. This index represents a weighted basket of the top 20 South African bonds ranked dually by market capitalisation and liquidity.

ALSI (FTSE JSE All Share Index)

A popular index used to benchmark performance for South African equity portfolios. This index represents a weighted basket of 99% of the full market capitalisation of all eligible companies listed on the main board of the JSE subject to free float and liquidity criteria. The index can be divided by size into the Top 40, Mid Cap and Small Cap Indices.

Annualised Return

To convert an investment return over a period other than one year into an equivalent one-year rate of return for comparative purposes. Annualising returns for periods shorter than a year is not recommended.

Asset Class

Categories of investments that behave similarly and are subject to similar market forces. Major asset classes include equities (shares), fixed income (bonds and cash), commodities and property.

AuM (Assets Under Management)

The market value of assets held by an investment manager on behalf of clients.

Balanced Fund Strategy

An actively managed investment framework where the asset allocation, strategies employed and risk assumed to achieve the specified investment objective is delegated to the investment manager.

Basis Point

One hundredth of 1%, e.g.100 basis points = 1% (one basis point is 1/100th of 1%).

Benchmark

An independently constructed reference (usually a publicly available index) that sets an objective rate of return (the neutral position) that should be used to test the effective implementation of an investment strategy. A good benchmark will also be representative of the asset class or mandate and is investable itself.

Bonds

Debt issued by a government or a company, typically promising regular payments of coupons (interest) on specified dates with a final capital payment on the maturity date. It can be viewed as a loan given to bond issuers by bond holders.

BSAGI (Barclays SA Government Inflation Linked Bond Index)

A popular index used to benchmark performance for local inflation linked bonds. This index represents a weighted basket of SA government issued inflation linked bonds calculated by Barclays Capital.

Cash

A major category of asset class, which is commonly used to represent short-term deposits, NCDs and other negotiable instruments (usually held in a bank) that can be readily exchanged into coins and banknotes. This is usually considered the risk-free asset.

Composite

A group of similarly managed portfolios within a single investment manager and typically defined within the investment managers’ Global Investment Performance Standards (GIPS™) policy.

Composite Dispersion

The extent to which the returns of all portfolios within a composite differ. It can be measured in different ways, including: the difference between the maximum and the minimum return (range); the difference between the first and third quartile (inter-quartile range); the standard deviation of returns, or mean absolute deviation.

139

SECTION 5

Compound Rate Of Return

A compound rate of return that expresses the relationship between the initial investment and the returns earned on that investment, incorporating future returns which are earned on past returns. For most investors, this is the most accurate way to calculate their returns as most investors will leave their returns in an investment.

Coupon Rate

A bond’s coupon rate is the rate used to calculate the periodic interest payments paid by the issuer of a bond to its owner at the time of payment. It is set when the bond is issued and is usually related to the nominal value of the bond at the time of issuance.

CPI (Consumer Price Index)

CPI is an estimate of the inflation rate measuring the price of goods and services in the economy.

Credit

A type of bond issued by a non-governmental entity. These bonds typically carry a higher risk than government guaranteed bonds, e.g. bonds issued by companies.

Credit Risk

Credit risk refers to the risk that a bond issuer will default on any type of debt by failing to make required payments, i.e. probability that the bond issuer will make debt payments late.

Cumulative Returns

The cumulative return for a portfolio or an asset is the cumulative compound return over the full length of a specified time period. The percentage measure of this return is not annualised and as such represents the actual total return of the portfolio or asset over the period. By annualising the percentage figure, one can calculate the average annual return of the portfolio or asset over the period.

Duration

Duration is a measure of interest rate risk for a bond or portfolio of bonds. It measures the sensitivity of the value of a bond – or collection of bonds – to a change in interest rates.

Effective Interest Rate

The effective rate converts the compounding rate of return into a simple rate of return. This means that the effective rate of return can simply be multiplied by the investment period to calculate the cumulative rate of return.

Equities

A major category of asset class, which is a commonly used name for ordinary shares, representing ownership in a company. The owner of the share (shareholder) will generally be able to vote on company issues; and will be entitled to dividends declared.

Fixed Income

A major category of asset class that includes cash, nominal bonds, inflation linked bonds and credit instruments.

GIPS™

The Global Investment Performance Standards (GIPS) is a set of standardised, industry-wide ethical principles that guide investment firms on how to calculate and present their investment results to prospective clients.

Hedge Funds

These are usually absolute return investment strategies that use alternative investment techniques (e.g. short positions, leverage, etc.). The funds can be used in a Regulation 28 strategy but are not compliant as stand-alone products.

140


Inflation

The increase in the general price level in the economy. The inflation rate is calculated by defining a basket of goods and services that a typical consumer would consume and calculating a weighted average of the prices of those goods to arrive at a single percentage number, e.g. CPI.

ILBs (Inflation Linked Bonds)

An inflation linked bond is a type of bond where the final capital payment is adjusted by the inflation rate for the term of the bond.

Information Ratio

A risk-adjusted measure of return calculated by dividing the active return of a fund by the tracking error of the fund.

Inter-Quartile Range

A statistical measure representing the difference between the medians of the upper half and the lower half of a ranked set of data.

Investment Manager

An organisation that invests assets on behalf of third parties for a fee.

Investment Philosophy

A framework of principles and way of thinking about markets that underlies the beliefs and approach of an investment manager. It drives which asset classes and investment securities to include in the investment portfolio. It can be used to describe the style of a manager.

JSE (Johannesburg Securities Exchange)

Currently the only South African Exchange which offers a centralised trading platform to capital markets across a diverse set of investment securities, in particular, equities, bonds and derivatives.

Long Position

It is a positive holding in a portfolio that results from buying investments in the portfolio. This is done when the manager believes that the value of this investment security will increase in the future and they will be able to sell it for a higher price and create a profit. This is directly opposite to a short position.

Leverage

It is a holding in a portfolio that results from using complex alternative trading techniques that allows the manager to buy investment securities with money borrowed or by using collateral as a means of payment.

Lower Quartile

A statistical measure representing the bottom 25% of observations in a ranked set of data.

Maximum Drawdown

A risk of loss measure that is calculated as the maximum loss incurred by an investment over a stated time horizon.

Market Capitalisation

The value of a company’s issued share capital, i.e. share price multiplied by number of shares on the stock exchange.

Mean Absolute Deviation

A measure of dispersion calculated as the average of the absolute differences between each value and the mean in a data set.

Median

A statistical measure representing the midpoint value in a ranked set of data.

Modified Duration

Modified duration is a type of duration measure which measures the approximate sensitivity of the value of a bond – or collection of bonds – to a change in interest rates, assuming the

141

SECTION 5

cash flows remain unchanged. As such, it is only appropriate for bonds with no embedded options.

Money Market

Market for short-term loans and deposits with a maturity less than one year.

Money Weighted Return

Measures internal rate of return, to identify when cash flows are entering or exiting an investment by discounting cash flows to the beginning value.

Overweight

Exposure to a specific investment security or asset class in a portfolio, which is higher than the proportion it represents in the market index or benchmark it is being compared to.

Peer Group

Usually refers to a set of similarly managed investment mandates.

Passive Investing

An implementation approach of a specialist fund strategy where the need to outperform the benchmark is not required in order to meet the investment objective. The specialist investment strategy is invested in passive funds. Not to be confused with passive fund management.

Passive Fund Management

An investment approach that seeks to replicate the performance and risk of an investable benchmark/index. Typically the investment portfolio will mirror the holdings of a market index. Passive managers believe that this is a more efficient and cost-effective way of accessing the risk and return profile of an asset class or investment style.

Pooled Portfolio

Funds from many individual investors that are aggregated for the purposes of investment, as in the case of a

retirement fund. Investors in pooled fund investments benefit from economies of scale, which allow for lower trading costs, diversification and professional fees. Pooled funds are generally backed by a policy of insurance.

Quarterly

Usually refers to 3-month periods ending 31 March, 30 June, 30 September and 31 December.

Range

A statistical measure representing the difference between the maximum and minimum values in a ranked set of data.

Real Return Portfolios

An alternative name for a portfolio using an absolute return investment strategy.

Regulation 28

Investment limits set by the Pensions Fund Act on retirement funds to protect against imprudent investment decisions.

Return

Percentage increase in the value of an investment over a period of time, expressed as a percentage of the value of the investment at the start of the period. All returns in this survey are calculated as time weighted rates of return.

Risk

Risk is a very generic term used to calculate either variation in returns or as a measure of losses. Volatility is usually used as a proxy for risk that measures variation. Maximum drawdown is usually used as a proxy of risk that measures loss.

Risk Premium

The return differential between the risk-free asset (cash) and a risky asset.

Rolling Return

A time series of a rate of return with the same time horizon for a portfolio, asset class or investment security. It represents a realistic way of reporting returns, which takes into account different market and economic environments.

Scatter Plot

A diagram illustrating the relationship between two sets of quantities using dots that can be used to generate a line of best fit.

Sector

All instruments within a particular area of activity or industry for an asset class. The JSE defines sectors as Financials, Basic Materials, Oil and Gas Producers, Industrials, Consumer Goods, Healthcare, Consumer Services, Telecommunications and Technology. The Bond sectors are Government, Parastatals, State Owned Enterprises, Corporates and Other.

Simple Rate Of Return

A simple rate of return that expresses the relationship between the initial investment and the rate at which returns are earned on that investment, ignoring any ability for further returns to be earned on past returns. This is only an accurate reflection of the investor’s return when all returns are paid out from the portfolio when they are earned.

Segregated Portfolio

Segregated portfolios are not pooled with those of other investors and so the performance and expenses of an investment account are not affected by the activities of any other investors in the portfolio.

Sharpe Ratio

Risk adjusted return ratio of return per unit of risk. It is calculated as excess return (over the risk-free return) divided by volatility.

142


Short Position

It is a negative holding in a portfolio that results from using complex alternative trading techniques that allows the sale of an investment security that is not owned. This is done when the manager believes that the value of this investment security will decrease in the future and they will be able to buy it back later for a lower price and create a profit. This is directly opposite to a long position.

Sortino Ratio (Capital Loss Or Inflation)

A risk adjusted return measure similar to the Sharpe ratio. The Sortino ratio measures risk as the volatility of the returns below a certain target (0% in the case of capital loss and inflation in the case of inflation).

Specialist Fund Strategy

An investment approach where the asset allocation, investment strategies employed and risk assumed to achieve the specified investment objectives are explicitly defined and not delegated to the investment manager. A specialist investment strategy may be implemented actively or passively.

Specialist Mandate

A mandate given to an investment manager to manage specific asset classes (equities, bonds, etc.) or investment strategies (hedge funds, impact investing, etc.) as part of a specialist fund strategy.

STeFI (Short Term Fixed Interest Index)

A popular index used to benchmark performance for South African cash portfolios. This index represents a weighted basket of money market instruments of different investment maturities such as NCDs and call deposits.

SAA (Strategic Asset Allocation)

An investment technique that sets the medium- to long-term allocation to

asset classes which will primarily meet the investment objectives within a defined level of risk. Used primarily in specialist fund strategies.

SWIX (FTSE JSE Shareholder Weighted Index)

A popular index used to benchmark performance for South African equity portfolios. This index represents a shareholder weighted basket of companies listed on the main board of the JSE with all constituents down weighted by applying an alternative free float known as the SWIX free float.

TAA (Tactical Asset Allocation)

An investment technique that periodically adjusts the SAA to take advantage of opportunities in the market in order to enhance returns in the short term; and maximise risk adjusted returns.

Term To Maturity

The time remaining on the life of a bond, i.e. time remaining for the bond to be fully repaid.

Time-Weighted Rate Of Return

The compound rate of return over a stated evaluation period of one unit of money initially invested in the portfolio or strategy.

Time Horizon

The time period relating to the rate of return measurement calculation. It can also refer to the time set to meet a certain investment objective or goal.

Top 40 (FTSE/JSE Top 40 Index)

A popular index used to benchmark performance for South African large equity portfolios. This index represents a weighted basket of the forty largest companies which are constituents of the FTSE / JSE All Share Index, ranked by full market

capitalisation. Interestingly the number of constituents can exceed 40, as some companies issue multiple share types (e.g. Investec, Mondi).

Tracking Error

Measure of variability of returns relative to benchmark or index. It is usually expressed as an annualised standard deviation of active returns.

Underweight

Exposure to a specific investment security or asset class in a portfolio which is lower than the proportion it represents in the market index or benchmark it is being compared to.

Upper Quartile

The top 25% of observations in a ranked set of data.

Volatility

Is a proxy for risk and is calculated as the annualised standard deviation of monthly returns.

Yield

Return on a security usually expressed in percentage terms.

Yield Curve

The relationship between time to maturity and yield to maturity of bonds.

Yield To Maturity

An estimate of the rate of return that would be earned on a bond if the bond is held to its maturity date. It assumes that interest earned is reinvested in the bond.

143

SECTION 5

Notes


6Directory of South African Asset Managers

146


27four Investment Managers (Pty) Ltd

www.27four.com

Company details

FAIS FSP registration number:31045Switchboard:+27 11 442 2464Fax number:+27 11 442 2465General email: [email protected]: www.27four.comAddress:54 on Bath, Ground Floor, 54 Bath Avenue, Rosebank, 2196PO Box 522417, Saxonwold, Johannesburg, 2132Compliance officer name:Independent Compliance Services - Enrique Goosen+27 21 975 6597

Investment philosophy

27Four focuses on building well-diversified portfolios that are linked to a broad spectrum of investor goals and appetites for risk.

They believe that asset allocation is the primary determinant of variation in portfolio return and is the cornerstone of portfolio construction. Their skilled investment team is experienced in the application of quantitative techniques to identify the sources of asset class returns across different market cycles to derive their long-term asset allocation views.

They invest in a combination of large, well known managers and smaller untapped “boutiques” who they believe possess a distinct performance advantage as they are more nimble and opportunistic, especially in asset classes where the ability to take calculated risks and move swiftly is vital to success.

Core to their investment philosophy is risk mitigation. Rigorous risk management and monitoring is applied

at every level of their investment process and equal importance is given to business, compliance, operational and administrative risks as is applied to investment performance risk.

FAIS requirements

Who is your FAIS complaints officer?Enrique GoosenPlease provide the link to the complaints policy on your website:http://www.27four.com/wp-content/uploads/2013/02/FAIS-Disclosure-Document.pdf

Ownership

What is the ownership structure of the company?60%: Fatima Vawda (founder & managing director); 40%: Staff (share ownership scheme)Who are the directors of the company?Fatima Vawda; Vic du PreezDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes. 100%

History

When was the company established?2007-09-01List of mergers that have taken place since being established:None.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?Sizwe Ntsaluba GobodoDate of accreditation:2014-08-01

GIPS

Are you GIPS compliant?NoAre you GIPS verified?NoBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R11.0 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R8.8 billionRetail: R2.2 billionLife: N/AOther: N/A

Key investment personnel

Size of Investment Team: 9

Fatima VawdaChief Investment OfficerMSc Applied Mathematics18 years industry experience7 years with firm

Claire RentzkeHead of ResearchBBusSci (Hons), CFA13 years industry experience1.5 years with firm

Vic du PreezHead of Risk ManagementB Com (Hons)7 years industry experience7 years with firm

Oliver HoffmanPortfolio ManagerB Com (Hons), CFA, MBA16 years industry experience3 years with firm

147

SECTION 6

ABSA Asset Management (Pty) Ltd

www.absainvestments.co.za

Company details

FAIS FSP registration number:522Switchboard:+27 11 480 5344Fax number:+27 11 480 5351General email:[email protected]: www.absainvestments.co.zaAddress:Block A - 1st Floor, 65 Empire Road Parktown, 2193Private Bag 291509, Mellville, 2109Compliance officer name:Samantha Padayachee +27 11 480 5190


Pragmatic value, investing in long only instruments over long term brackets beyond 3 years. Strong risk management overlay in the construction of a single houseview portfolio. A bottom up fundamental research approach is adopted with a single top down forecast of macroeconomic indicators.

FAIS requirements

Who is your FAIS complaints officer?Samantha PadayacheePlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?100% owned subsidiary of Barclays Africa Group Ltd (BAGL)Who are the directors of the company?Willie Lategan, Carel Gronum, Nomkita Nqweni, Armien Tyer, Errol ShearDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1997-10-23List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3 ContributorBy whom have you been accredited?NERADate of accreditation:2014-02-28

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?KPMGDate of verification:2014-09-01Expiry date of verification:Verified for the period 1 Jan 2004 to 31 December 2013

Investment mandates

What are your total assets under management?R100.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R100.3 billionRetail: N/ALife: R1.4 billionOther: R98.9 billion



Errol ShearChief Investment OfficerB.Bus Sc, CA (SA), CFA29 years industry experience9 years with firm

Stephen ArthurHead of ResearchBSc (Eng), CFA26 years industry experience8 years with firm

Juan BekkerHead of Fixed IncomeSAIFM25 years industry experience7 years with firm

Stephen ArthurHead of EquitiesBSc (Eng), CFA26 years industry experience8 years with firm

Greg KettlesHead of GlobalsB.Com, CA (SA), CFA21 years industry experience8 years with firm

Godfrey MwanzaHead of AfricaB Sc (Economics) (Hons), CFA8.5 years industry experience10 months years with firm

Fayyaz MottiarProperty Fund ManagerB.Econ Sc, CFA13 years industry experience4 years with firm

148


ABSA Alternative Asset Management (Pty) Ltd

https://www.absainvestments.co.za/wealth-and-investment-management/alternative-asset-management.html

Company details

FAIS FSP registration number:22877Switchboard:+27 21 927 6700Fax number:+27 21 927 6550General email: [email protected]: https://www.absainvestments.co.za/wealth-and-investment-management/alternative-asset-management.htmlAddress:163 Uys Krige Drive, PlattekloofPO Box 4110, Tygervalley, 7500Compliance officer name:Samantha Padayachee+27 11 480 5190


ABSA Alternative Asset Management (Pty) Ltd (AAM) is a FSB registered asset management business with Category I, II and IIA licenses. The team specializes in the design and management of alternative investment strategies including absolute return, overlay protection, alpha transport and other alternative investment portfolios. The series of absolute return portfolios managed by the team since 1999 have not only provided investors with explicit capital protection at various levels, but also achieved returns significantly in excess of inflation over this period. The building blocks of all AAM’s solutions are acquired through the mechanism of a proven independent, broad-based, best price procedure. Other areas of expertise include bespoke strategies for retail investors, index tracking and quantitatively driven enhanced index strategies across all asset classes as well as hedge fund strategies.

FAIS requirements

Who is your FAIS complaints officer?Samantha PadayacheePlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?100% owned by Barclays Africa Group LtdWho are the directors of the company?Andre Visser, Glanville Retief, Clinton Clarke, Armien TyerDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1999List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?Yes, at a Group level as Barclays Africa Group LtdWhat is your B-BBEE status?Level 3 ContributorBy whom have you been accredited?National Empowerment Rating AgencyDate of accreditation:2014-02-28

GIPS

Are you GIPS compliant?NoAre you GIPS verified?N/ABy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R43.2 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R41.4 billionRetail: R1.3 billionLife: R0.5 billionOther: N/A



Andre VisserHead of business, Chairman of Investment CommitteeB Com (Hons), CA (SA)17 years industry experience15 years with firm

Chris WattsPortfolio ManagerB Bus Sci (Hons), CFA, FRM8 years industry experience5 years with firm

St John BunkellPortfolio ManagerM Sc (Chem Eng)17 years industry experience5 years with firm

Aaron MasinaPortfolio ManagerB Com, CFA11 years industry experience3 years with firm

Glanville RetiefHead of Portfolio ConstructionB Com (Hons) Mathematics15 years industry experience10 years with firm

Suvarn NaidooPortfolio Management AssistantBSc Actuarial Science6 years industry experience1 years with firm

149

SECTION 6

Company details

FAIS FSP registration number:27126Switchboard:+27 21 670 5297Fax number:086 508 0685General email: [email protected]: www.aeonim.co.zaAddress:4th Floor MontClare Place, Cnr Campground and Main Roads, Claremont, 7708PO Box 24020, Claremont, 7735Compliance officer name:Debbi Wahl(Independent Compliance Services)+27 21 975 6597


Active Equity: Style is that of Growth At a Reasonable Price (GARP). Their adaptation of the GARP style seeks to combine the best of growth and value investing, by buying companies with long term sustainable growth rates greater than that implied by the company’s market valuation.

Enhanced: Uses quantitatively driven fundamental security selection and statistical trading models to manage a portfolio designed to outperform the SWIX benchmark. The portfolio is designed to add value in a risk managed framework.

Balanced Fund: Invests in a range of income and protected equity assets and strategies in order to protect 90% of capital over a rolling twelve month period and capture as much of the upside of equity and fixed income markets as possible. The fund invests in domestic and global equities, fixed income as well as derivatives instruments. It utilizes a systematic return modeling process and a disciplined investment methodology.

FAIS requirements

Who is your FAIS complaints officer?Asief MohamedPlease provide the link to the complaints policy on your website:http://www.aeonim.co.za/complaintspolicy.asp

Ownership

What is the ownership structure of the company?100 % owned by Asief Mohamed (Director and CIO)Who are the directors of the company?Asief MohamedDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Management owns 100% of the shares. Up to 30% of pretax profits gets distributed to all staff every 6 months.

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?BBBEE Level 1By whom have you been accredited?Veridex BBBEE Verification AgentsDate of accreditation:2014-01-13

GIPS

Are you GIPS compliant?YesAre you GIPS verified?NoBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R2.023 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.950 billionRetail: R73 million (CIS included in institutional)Life: R184 million (Pooled Life fund included in institutional)Other: N/A



Asief MohamedChief Investment OfficerB Com CA (SA), CFA26 years industry experience9 years with firm

Jay VomackaHead of ResearchCFA, BSc (Eng)(Elec), MSc (Eng)(Ind), CFTe (IFTA, London)8 years industry experience2 years with firm

Aeon Investment Management (Pty) Ltd

www.aeonim.co.za

150


AFC Investment Management (Pty) Ltd

www.afcinvestment.co.za

Company details

FAIS FSP registration number:706Switchboard:+27 21 673 2620Fax number:+27 21 683 2610General email: [email protected]: www.afcinvestment.co.zaAddress:3rd Floor Mill House, Boundary Terraces, Corner Campground and Mariendahl Lane Newlands, 77003rd Floor Mill House, Boundary Terraces, Corner Campground and Mariendahl Lane Newlands, 7700Compliance officer name:Rodney Reid+27 21 785 3107


Philosophy and styleAFC employs a multi-disciplinary approach to asset management, involving fundamental as well as behavioural (technical) forms of analysis.

AFC believes that in excess of 90% of performance is derived from correct asset allocation and industry selection, so the majority of analysis time is spent on understanding the macro environment. The investment style is thematic, with stock selection reflecting those themes believed to be impacting the investment environment at any point in time. As thematic investing relies on understanding the changes within economies, its implementation will result in portfolio structures that are not carbon-copies of market indices. A by-product of the thematic and behavioural approach is that views will sometimes be taken against market consensus, but resulting in superior performance at lower than average risk.

GIPS


Investment mandates

What are your total assets under management?R927 millionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R508 millionRetail: R400 millionLife: N/AOther: N/A



DS CampouroglouChief Investment OfficerBSC32 years industry experience19 years with firm

IA MackenzieHead of EquitiesBA Economics30 years industry experience24 years with firm

FAIS requirements

Who is your FAIS complaints officer?IA MackenziePlease provide the link to the complaints policy on your website:www.afcinvestment.co.za

Ownership

What is the ownership structure of the company?100% owned by IA Mackenzie Family TrustWho are the directors of the company?DS Campouroglou, IA MackenzieDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1960’sList of mergers that have taken place since being established:Independent until 1998 when acquired by Appleton/PSG. Sold on to T- Sec in 2003. Management buy-back in 2005.

B-BBEE Credentials

Are you B-BBEE accredited?NoWhat is your B-BBEE status?NoneBy whom have you been accredited?N/ADate of accreditation:N/A

151

SECTION 6

Afena Capital Proprietary Ltd

www.afenacapital.com

Company details

FAIS FSP registration number:25033Switchboard:+27 21 657 6240Fax number:+21 21 671 4658General email: [email protected]: www.afenacapital.comAddress:5th Floor MontClare Place, Corner Campground & Main Roads, Claremont, 7708PO Box 23883, Claremont, 7735Compliance officer name:Michael Dabrowski (Internal Compliance Officer) and Tim Howse (External Compliance Officer)+27 21 657 6270 and +27 21 671 8162 respectively


Afena are Value Managers. Their investment philosophy is to buy businesses below their assessment of intrinsic value. They estimate the value of a business based on its normal through the cycle operating performance. This forces them to be patient long term investors as they believe that share prices ultimately reflect a business’ true economics, and not its short term performance. This also means they tend to favour businesses they understand with good long term economics.

Afena are a bottom up stock picking house with a strong commitment to insightful proprietary research. They are disciplined and consistent in the execution of Their philosophy. As bottom up stock pickers they do not make decisions based on short term company performance or any view of the short term performance of the economic environment. They are long term investors and as such, pay no attention to short term share price movements.

FAIS requirements

Who is your FAIS complaints officer?Tim HowsePlease provide the link to the complaints policy on your website:http://www.afenacapital.com/complaints.html

Ownership

What is the ownership structure of the company?71.2% owned by management and staff.28.8% owned by BrimstoneWho are the directors of the company?Tebogo Naledi, Andrew Joannou, Khulekani Dlamini, Nicole Henriques, Tiloshani Moodley, Gerhard KotzeDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes. The management and staff of Afena Capital collectively hold 71.2% of the equity shares of Afena Capital through directly held shares (63.7%) and through the Afena Capital Staff Trust (7.5%).

History

When was the company established?The company was established on the 1st of November 2005List of mergers that have taken place since being established:There have been no mergers since the establishment of the company.

B-BBEE Credentials

Are you B-BBEE accredited?Yes, Afena Capital is BBBEEE accredited.What is your B-BBEE status?Afena Capital is a Level 2 contributor to Black Economic EmpowermentBy whom have you been accredited?AQRate Verification ServicesDate of accreditation:28/07/2014

GIPS

Are you GIPS compliant?Yes, Afena Capital is GIPS compliant.Are you GIPS verified?Yes, Afena Capital is GIPS verified.By whom have you been verified?eComplyDate of verification:28/03/2013Expiry date of verification:2013-12-31

Investment mandates

What are your total assets under management?R14.4 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R14.3 billionRetail: R131 millionLife: N/AOther: N/A



Andrew JoannouChief Investment OfficerBBusSc, CFA15 years industry experience9 years with firm

Khulekani DlaminiHead of ResearchBSc, MSc15 years industry experience9 years with firm

Shoaib VayejPortfolio Manager (Equity)BSc (Eng), CFA11 years industry experience3 years with firm

Mila MafanyaPortfolio Manager (Equity)BBusSc, CFA11 years industry experience4 years with firm

152


Allan Gray (Pty) Ltd

www.allangray.co.za

Company details

FAIS FSP registration number:27145Switchboard:+27 21 415 2300Fax number:+27 21 415 2400General email: [email protected]: www.allangray.co.zaAddress:1 Silo Square, V&A Waterfront, Cape Town, 8001PO Box 51318, V&A Waterfront, Cape Town, 8002Compliance officer name:Ian Barow+27 21 415 9364


Allan Gray’s investment philosophy is valuation orientated which means that our research effort is focused on identifying good quality assets that are priced below intrinsic value. Intrinsic value is calculated using a number of methodologies but is usually defined as the discounted value of expected future cash flows. We typically buy shares when research and analysis indicates that the intrinsic value of the company far exceeds its market price, in anticipation of the price rising to its intrinsic value. This is in contrast to the “momentum” approach where a manager identifies an upward trend and follows this by purchasing stock in the belief that the trend will continue.

FAIS requirements

Who is your FAIS complaints officer?Emile BesterPlease provide the link to the complaints policy on your website:http://www.allangray.co.za/assets/legal/Complaints_Process.pdf

Ownership

What is the ownership structure of the company?Allan Gray is a privately owned company.Who are the directors of the company?Simon Marais (Non-Executive Chairman), Rob Dower, Ian Liddle, Mahesh Cooper, Thando Mhlambiso, William Gray*, Teboho Mahuma*, Khumo Morolo* (*Non-Executive Directors)Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:Past and present directors own shares in Allan Gray. Additionally 14% of the company has been reserved for our staff share scheme.

History

When was the company established?1973List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3 contributorBy whom have you been accredited?AQRate Verification ServicesDate of accreditation:2014-07-21

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?Ernst and YoungDate of verification:2014-10-01

Expiry date of verification:The assurance report confirms compliance with the Global Investment Performance Standards (GIPS) for the period from 1 January 2013 to 31 December 2013. We are in the process of obtaining verification for 2014.

Investment mandates

What are your total assets under management?R458.5 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R229.2 billion Retail: R217.4 billionLife: N/AOther: R11.9 billion



Ian LiddleChief Investment Officer, Equity Portfolio Manager, AnalystBBusSc, CFA13 years industry experience13 years with firm

Duncan ArtusEquity Portfolio Manager, AnalystBBusSc, PGDA, CFA, CMT14 years industry experience13 years with firm

Andrew LappingEquity and Fixed Interest Portfolio Manager, AnalystBSc (Eng), B Com, CFA14 years industry experience14 years with firm

Simon RaubenheimerEquity Portfolio Manager, AnalystB Com (Hons) CFA13 years industry experience13 years with firm

153

SECTION 6

Alpha Wealth (Pty) Ltd

www.alphawealth.co.za

Company details

FAIS FSP registration number:13808Switchboard:+27 11 707 1340Fax number:+27 11 706 9711General email: [email protected]: www.alphawealth.co.zaAddress:Block D, Hobart Square, 10 Hobart Road, Bryanston, 2021Postnet Suite 575, Private Bag X 9, Benmore, 2010Compliance officer name:Sueney de Bruin+27 11 707 1341


The Alpha Group is a multi-manager investment specialist covering long only asset allocation as well as alternative investment solutions such as hedge funds and private equity, both locally and internationally. The group was established in 1997 and has developed into a best of breed asset manager servicing a full spectrum of clients from private banks, independent financial advisors and retirement funds through to family offices. Bespoke holistic investment solutions are constructed in line with the Alpha Groups’ value proposition which is to deliver relevant investment advice, superior risk-adjusted investment performance and unparalleled service delivery. Their core philosophy is to preserve and grow capital strategically over the long term, whilst participating tactically in superior return- generating opportunities.

FAIS requirements

Who is your FAIS complaints officer?Sueney de BruinPlease provide the link to the complaints policy on your website:[email protected].

Ownership

What is the ownership structure of the company?Private CompanyWho are the directors of the company?Kerry West Fynn; James Duncan Gilfillan, Gustaaf Charles Garfield AllenDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?14/09/2004List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?NoWhat is your B-BBEE status?N/ABy whom have you been accredited?N/ADate of accreditation:N/A

GIPS


Investment mandates

What are your total assets under management?R7 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R6.3 billionRetail: R700 millionLife: N/AOther: N/A



Jacques Du PlessisChief Investment OfficerCAIA16 Years industry experience4 years with firm

James GillfillanChief Investment StrategistAB Harvard, CFA24 Years industry experience16 Years with firm

John HaslettPortfolio ManagerCA(SA)4 Years industry experience34 Years with firm

Chris PretoriusPortfolio Manager/Wealth ManagerCFA12 Years industry experience4 Years with firm

154


Argon Asset Management (Pty) Ltd

www.argonassetmanagement.co.za

Company details

FAIS FSP registration number:835Switchboard:+27 21 670 6570Fax number:+27 21 671 8252General email: [email protected]: www.argonassetmanagement.co.zaAddress:1st Floor, Colinton House, The Oval, 1 Oakdale Road, Newlands, 7700PO Box 23254, Claremont, 7735 Compliance officer name:Lentle & Associates,Bontle Matlou-CO 3407+27 11 339 7647


Argon Asset Management is a client-centric investment management firm that is committed to internationally accepted best practices and global standards. They have a high performance culture that filters through to the long-term sustainable success of their investment portfolios. Their ethos is underpinned by values of honesty, integrity, thoroughness, accountability, good ethics and respect for themselves and others. Argon value their employees as their most important asset and recognise that a continued investment in their development assures they are the true ambassadors of the firm.

FAIS requirements

Who is your FAIS complaints officer?Lentle & AssociatesPlease provide the link to the complaints policy on your website:http://www.argonassetmanagement.co.za/about-argon/regulatory-details/

Ownership

What is the ownership structure of the company?Independent, i.e. no group structureWho are the directors of the company?Mothobi Seseli, Luyanda Joxo & Sello SetaiDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, 100%

History

When was the company established?2005-04-01List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?Kbonga BEE Verification Agency (Pty) LtdDate of accreditation:11 February 2015

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?Ms Lesley Harvey of eComply www.ecomply.co.zaDate of verification:2012-01-01Expiry date of verification:2012-12-31

Investment mandates

What are your total assets under management?R25 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R25 billionRetail: N/ALife: N/AOther: N/A



Dr Manas BapelaChief Investment OfficerM Sc (Mathematics) cum laude, PhD (Mathematics) Univ of PTA, Global Investment Risk Mgt (Saïd Bus School, Oxford Univ) UK14 years industry experience5 years with firm

Kyle Hulett, CFAHead of Multi Asset ClassB Bus Sc (Actuarial Science) UCT, Fellow of the Faculty of Actuaries FFA (UK)14 years industry experience4 years with firm

Mokgatla MadishaHead of Fixed IncomeB Sc (Mechanical Engineering), B Com Hons (Financial Analysis & Portfolio Management) UCT15 years industry experience4 years with firm

Saul MillerHead of EquitiesM Bus Sc (Actuarial Science) UCT, Fellow of the Faculty of Actuaries FFA (UK)17 years industry experience3.5 years with firm

155

SECTION 6

Atlantic Asset Management (Pty) Ltd

www.atlanticam.com

Company details

FAIS FSP registration number:31756Switchboard:+27 21 418 7801Fax number:+27 21 418 7635General email: N/AWebsite: www.atlanticam.comAddress:10th Floor, 22 Bree street, Cape Town, 8000Postnet suite 152, Private bag X3, Rogge bay, 8012Compliance officer name:Louise Ruwiel


Atlantic’s approach to money management is based on a MACRO-THEMATIC top-down asset allocation philosophy with a quantitative overlay. They formulate a framework of scenarios detailing the secular forces influencing the local and global economy, and the expected impacts on local yield curve and rate sensitive assets.

Their scenario analysis then allows them to move on to determine Expected Value, where they determine expected returns under various scenarios.

FAIS requirements

Who is your FAIS complaints officer?Louise RuwielPlease provide the link to the complaints policy on your website:www.atlanticam.com/sites/all/themes/bootstrap-child/documents/complants-procedure.pdf

Ownership

What is the ownership structure of the company?40% Arno Lawrenz, 30% Murray Anderson, 15% Roddy Sparks, 15% Plexus Private EquityWho are the directors of the company?Roddy Sparks; Murray Anderson; Arno Lawrenz; Albert Botha; Heather JacksonDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:1

History

When was the company established?07/2007List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2 B-BEE statusBy whom have you been accredited?Moore Stephens B-BBEE Verification and ConsultingDate of accreditation:03/10/2014

GIPS

Are you GIPS compliant?Our reporting is GIPS compliantAre you GIPS verified?We are in the process of finalising the engagement of Ecomply Consultants to conduct the independent verification of our GIPS reporting which will take place shortly.By whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R4.23bnPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: 3020.24mRetail: 987.86mLife: 14.9mOther:


Size of Investment Team:

Arno LawrenzChief Investment OfficerB.Sc. (Hons), CFA23 years industry experience7 years with firm

Heather JacksonCEO of Atlantic Specialised Finance and Portfolio managerBA (Hons)(Econ), CFA23 years industry experience2 years with firm

Albert BothaPortfolio Manager and DirectorB.Com (Ac Sci)8 years industry experience5 years with firm

Rob NagelCIO of Atlantic Specialised Finance and Portfolio managerCA (SA)17 years industry experience2 years with firm

156


Blue Ink Investments (Pty) Ltd

www.blueink.co.za

Company details

FAIS FSP registration number:712Switchboard:+27 21 950 2600Fax number:+27 21 950 2176General email: [email protected]: www.blueink.co.zaAddress:55 Willie van Schoor Avenue, Bellville, 7530Private Bag X8, Tyger Valley, 7536Compliance officer name:Francis Hitchinson+27 21 950 2980


Blue Ink believes that investment returns can be generated across a variety of different sources. It is their belief that they are required to be both absolute and unconstrained in exploiting these investment opportunities. The “tools of modern finance” is appropriate and essential to the unconstrained framework of investing. They believe they have the necessary skill to seek out and participate/co-invest with those managers that have exhibited skill in this increased opportunity set.

FAIS requirements

Who is your FAIS complaints officer?Francis HitchinsonPlease provide the link to the complaints policy on your website:Complaints made directly to CEO

Ownership

What is the ownership structure of the company?75% owned by Sanlam Investments, a division of Sanlam and 25% owned Ubuntu-Botho Investment Holdings, a broad-based black empowerment consortium.Who are the directors of the company?St.John Bungey, Selwyn Pillay, Nersan NaidooDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:N/A

History

When was the company established?1994List of mergers that have taken place since being established:

■ 1994-2007 Blue Ink Investments 100% owned by management

■ June 2007 Blue Ink Investments 50% acquired by Sanlam Investments and 50% by Octane Group

■ December 2009 Sanlam Investments acquires additional 25% and Ubuntu-Botho Investment Holdings acquires

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 4By whom have you been accredited?AQRateDate of accreditation:2014-07-01

GIPS

Are you GIPS compliant?NoAre you GIPS verified?NoBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification: N/A

Investment mandates

What are your total assets under management?R4.2 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R4.0 billionRetail: R200 millionLife: N/AOther: N/A



Selwyn PillayChief Investment OfficerB.Sc. (Actuarial Science), Post Grad Diploma in Management Studies (Actuarial Science)11 years industry experience4 years with firm

Grant HoganPortfolio ManagerB.Com Honours (Economics)5 years industry experience5 years with firm

Tatenda ChapindukaPortfolio ManagerB.BusSC (Actuarial Science)5 years industry experience5 years with firm

157

SECTION 6

Cadiz Asset Management (Pty) Ltd

www.cadiz.co.za

Company details

FAIS FSP registration number:636Switchboard:+27 21 670 4600Fax number:+27 21 670 4651General email: [email protected]: www.cadiz.co.zaAddress:4th Floor The Terraces, 25 Protea Road, Claremont, 7700PO Box 44547, Claremont, 7735Compliance officer name:Lynne Jennings+27 21 670 4692


Cadiz Asset Management are value investors. Value investing has a proven history of generating better returns than the market over the long term, but also has implicit downside protection characteristcs. Their approach is based on the belief that markets are inefficient in the short term. Within a normal business cycle, asset prices can be substantially different from their long-run true business or intrinsic value. These differences between asset prices and asset values are caused by the collective behaviour of investors acting out of fear or greed. Investors tend to over extend recent asset price trends upwards (in greed) or downwards (in fear).

Cadiz strives to remain rational, dispassionate and exploit the opportunities that investor behaviour creates, thereby generating superior returns for their clients. In order to identify the mispriced opportunities, they follow a sound, systematic and disciplined bottom-up fundamental approach. This means they do not perform any forecasting in their investment process but rather price an asset by studying its long-term

performance and risk compensation metrics and by normalising these trends. As a discipline, they only become interested in buying an asset once they are convinced that they will be generously compensated for the risk they propose to take. Conversely, Cadiz only sells an asset once they believe that they have been more than compensated by its return. In this way, they aim to generate superior returns for their clients with the least amount of risk.

FAIS requirements

Who is your FAIS complaints officer?Shaheed MohamedPlease provide the link to the complaints policy on your website:Is not currently displayed on our website. Please refer to our detailed complaints policy.

Ownership

What is the ownership structure of the company?Management and staff - 25%, Makana Investment Corporation 15% and Institutional and private shareholders 60%Who are the directors of the company?Fraser Shaw, Brian Wootton and Francois van WykDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, it is currently 25% with a further 15% allocated in the form of share options which will vest subject to certain conditions.

History

When was the company established?1996List of mergers that have taken place since being established:Cadiz Holdings bought Prodigy Coris in 2004, then acquired African Harvest Fund Managers in Nov 2006; both were integrated into CSAM; CSAM underwent a name change to Cadiz Asset Management in 2009

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?We are a level 3 contributorBy whom have you been accredited?EmpowerdexDate of accreditation:2014-01-09

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?E-Comply Consultants (Pty) LtdDate of verification:For the period Jan 2013 - Dec 2014Expiry date of verification:Verification will proceed in the following year.

158



Continued

Investment mandates

What are your total assets under management?R25 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R13.6 billionRetail: R6.2 billionLife: R5.2 billionOther: N/A



Francois van WykChief Investment Officer, Head of Equities and Head of Multi Asset Class ProductsBSc. (Agric) (Hons), MBA19 years industry experience9 years with firm

Jonathan Myerson;Head of Fixed IncomeM.Soc.Sci (Econ)19 years industry experience8 years with firm

Bronwyn BloodPortfolio ManagerB Com (Hons)15 years industry experience10 years with firm

Vaneshen NaidooPortfolio ManagerMSc. Engineering, CFA8 years industry experience8 years with firm

Carron HowardPortfolio ManagerB Com, LLB, CFA18 years industry experience5 years with firm

159

SECTION 6

Cannon Asset Managers (Pty) Ltd

www.cannonassets.co.za

Company details

FAIS FSP registration number:736Switchboard:+27 31 560 7180Fax number:+27 31 560 7232General email: [email protected]: www.cannonassets.co.zaAddress:2 Pencarrow Park, Pencarrow Place, La Lucia Ridge, 4019PO Box 5009, Pencarrow Park, La Lucia Ridge, 4019Compliance officer name:Craig Simpkins+27 31 560 7172


The price you pay for an investment is the primary determinant of your investment return.

Deep value fundamental stock picker using a rules driven framework for stock selection and fund construction. Cannon Asset Managers seeks cheap, high quality stocks that also have higher relative forecast returns than the market.

As explained, they identify and buy stocks that, on balance, represent deep value. These factors include lower price-earnings ratios than the market, higher dividend yields than the market, lower price-to-book ratios than the market, lower price-to-sales ratios than the market, and attractive CAPE ratios, that give through-the-cycle insights.

Cannon have demonstrated that portfolios with these attributes will outperform over time. They further enhance their certainty of alpha by not just owning stocks with the above attributes, but by ensuring that they (relative to their peers) also are of higher quality with;

■ lower exogenous risk (legal, governance and macro); and

■ lower financial risk (profitability, financial performance and operating efficiency).

■ preferably have positive momentum; and

■ have higher three-year earnings expectations than the market as a whole and their sector peers.

Hence, Cannon portfolios are characterized by three attributes, namely evidence of value, robust financial quality and an earnings expectation that is better than the broader market.

FAIS requirements

Who is your FAIS complaints officer?Craig SimpkinsPlease provide the link to the complaints policy on your website:http://www.cannonassets.co.za/?p=complaints_policy.html

Ownership

What is the ownership structure of the company?65% owned by Peregrine Holdings Ltd, 35% owned by executive directors of Cannon Asset ManagersWho are the directors of the company?Geoff Blount, Adrian Saville, Craig Simpkins, Jonathan Hertz* and Robert Katz* (* = non-exec)Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:35% held by management.

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level IIBy whom have you been accredited?EmpowerdexDate of accreditation:2013-05-01

GIPS


Investment mandates

What are your total assets under management?R2.8bnPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.8 billionRetail: R90 millionLife: N/AOther: R910 million



Adrian SavilleChief Investment OfficerB.A. (Hons) (cum laude), M.Com (cum laude), Ph.D.15 years industry experience15 years with firm

Andrew DittbernerHead of ResearchB.Econ (Hons), M.Com8 years industry experience8 years with firm

160


Catalyst Fund Managers SA (Pty) Ltd

www.catalyst.co.za

Company details

FAIS FSP registration number:36009Switchboard:+27 21 657 5500Fax number:+27 21 683 7579General email: [email protected]: www.catalyst.co.zaAddress:4th Floor Protea Place, Claremont, 7708PO Box 44845, Claremont, 7735Compliance officer name:Gerry Grispos086 127 3783


Property - Income - SecurityTheir commitment is to provide the client with a securitised real estate portfolio solution incorporating total return objectives, risk tolerance, investment horizon and liquidity requirements.

Their approach is research driven and long-term orientated.

Their objective is to identify value opportunities on the basis of total return in a property and company specific risk return framework.

This asset class offers a high income yield with the potential for long term capital value appreciation.

Their view is that real estate is a separate asset class, providing diversification benefits to a multi-asset class portfolio resulting in enhanced risk adjusted returns.

Their philosophy also drives their independent internal company research capability, which consolidates property knowledge with company specific features. This together

with consistently applied valuation methodology, designed specifically for listed property assessment, differentiates them from their competitors and allows them to add real value to their client’s portfolios.

FAIS requirements

Who is your FAIS complaints officer?Charles BuchananPlease provide the link to the complaints policy on your website:http://www.catalyst.co.za/Conflicts_of_Interest_policy.pdf?1

Ownership

What is the ownership structure of the company?Catalyst Fund Managers - 75%, Directors - 25%Who are the directors of the company?P Duncan, R D Du Plooy, T S Sishuba, A Stadler, Z Sulaiman, N SalieDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, Directors - 25%, Management - 20%

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1By whom have you been accredited?EmpoweredexDate of accreditation:2012/11/15 (new certificate pending)

GIPS


Investment mandates

What are your total assets under management?R11.5 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R7.8 billionRetail: R 332.5 millionLife: N/AOther: R3.4 billion



Paul DuncanPortfolio managerCFA, MBA10 years industry experience10 years with firm

Zayd SulaimanPortfolio managerCA, SA13 years industry experience7 years with firm

161

SECTION 6

Caveo Fund Solutions (Pty) Ltd

www.caveo.co.za

Company details

FAIS FSP registration number:24297Switchboard:+27 11 505 6200Fax number:+27 11 263 0747General email: [email protected]:www.caveo.co.zaAddress:Building 1 - Inanda Greens Office Park, 54 Wierda Road West - Wierda Valley, Sandton, 2196PO Box 786055, Sandton, 2146Compliance officer name:Gigi Vorlaufer +27 11 505 6033


Diversification across manager styles is essential for a portfolio to achieve required investment returns in various market conditions. Our philosophy is primarily about controlling risk while attaining targeted returns. Ensuring disclosure of information from underlying managers is a prerequisite to conducting effective ongoing risk management with dedicated specialists who are required to construct and monitor fund of fund investment portfolios as a result of the unique complexities and risk of such investment strategies.

FAIS requirements

Who is your FAIS complaints officer?Gigi VorlauferPlease provide the link to the complaints policy on your website:www.caveo.co.za/contact us

Ownership

What is the ownership structure of the company?Joint venture investment management company between Investment Solutions Holdings (50.1%) and Peregrine Holdings (49.9%). Investment Solutions is a wholly owned subsidiary of Alexander Forbes.Who are the directors of the company?BA Green, M Yachad, DTV Msibi, SD Price, J HertzDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?AAA - Level twoBy whom have you been accredited?EmpowerdexDate of accreditation:2014-05-20

GIPS


Investment mandates

What are your total assets under management?R4.2 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R4.1 billionRetail: N/ALife: N/AOther: R166.4 million



Gyongyi KingChief Investment Officer(BSc.), CFA15 years industry experience6 years with firm

Kagiso MatholeInvestment AnalystB.B.A - Diploma in Financial Markets and Instruments10 years industry experience4 years with firm

162


Colourfield Liability Solutions (Pty) Ltd

www.colourfield.co.za

Company details

FAIS FSP registration number:35113Switchboard:086 100 7656Fax number:086 579 8592General email: [email protected]: www.colourfield.co.zaAddress:Unit 16B, 3rd Floor, 3 Melrose Boulevard, Melrose Arch, 2076Compliance officer name:Liza Hietbrink 086 127 3783


Colourfield is South Africa’s largest and only dedicated “liability driven” investment management business. As an LDI manager, Colourfield’s investment philosophy is built around the understanding and de-risking of liabilities. They utilise a scientific approach to portfolio construction that will track a liability- based benchmark irrespective of market circumstances.

Unlike other investment managers that attempt to outperform a benchmark where the core- components are known in advance, Colourfield has the objective of tracking the movement of a non-investable liability stream.

FAIS requirements

Who is your FAIS complaints officer?Liza HietbrinkPlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?Privately-owned companyWho are the directors of the company?Neal Sennett, Costantinos Economou, Shaun LevitanDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:100% owned by staff and management

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1 ContributorBy whom have you been accredited?AQ Rate Verification ServicesDate of accreditation:2014-08-01

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PricewaterhouseCoopersDate of verification:2013-04-15Expiry date of verification:N/A

Investment mandates

What are your total assets under management?R30 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R30 billionRetail: N/ALife: N/AOther: N/A



Nick SennettChief Investment OfficerActuary, PhD degree in Finance24 years industry experienceFounder (6 years) with firm

Nishaan DesaiHead of ResearchActuary, CFA Charterholder, CIPM Charterholder10 years industry experience4 years with firm

Troy du PlessisHead of Fixed IncomeActuary, CFA Charterholder, CAIA Chartholder9 years industry experience6 years with firm

Shaun LevitanChief Operation Officer and Specialist Portfoilio StructurerActuary, MSc (Actuarial Science), CFA Charterholder14 years industry experience6 years with firm

163

SECTION 6

Coronation Asset Management (Pty) Ltd

www.coronation.com

Company details

FAIS FSP registration number:548Switchboard:+27 21 680 2000Fax number:+27 21 680 2100General email: [email protected]: www.coronation.comAddress:7th Floor MontClare Place, Cnr Campground and Main Roads, Claremont, Cape Town, South Africa, PO Box 44684, Claremont, Cape Town, 7735Compliance officer name:Ms Jamie Rowland +27 21 680 2809


All Coronation products are managed according to a single investment philosophy. It is based on two key tenants; using a long-term horizon to establish a company’s fair value and a disciplined valuation-driven approach which drives buy and sell decisions.

FAIS requirements

Who is your FAIS complaints officer?Ms Jamie RowlandPlease provide the link to the complaints policy on your website:The complaints policy is not on our website. It is located on our internal intranet site

Ownership

What is the ownership structure of the company?Coronation Asset Management (Pty) Ltd is listed on the JSE with share code CML hence ownership is open to all.Who are the directors of the company?Anton Pillay, Jock McKenzie, Alexandra Watson, Judith February, Shams Pather, John Snalam and Lulama BoyceDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, 24% of the business is staff owned

History

When was the company established?Founded in 1993List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level three contributorBy whom have you been accredited?EMPOWERDEXDate of accreditation:23 January 2015

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?Ernst and YoungDate of verification:2013-03-31Expiry date of verification:2013-12-31

Investment mandates

What are your total assets under management?R604 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R390 billionRetail: R213 billionLife: N/AOther: N/A

164


Coronation Asset Management (Pty) Ltd

Continued



Karl LeinbergerChief Investment OfficerBBus Sci, PGDA, CFA, CA(SA)14 years industry experience14 years with firm

Quinton IvanHead of ResearchB Com (Hons), BBusSc, (CA) SA, CFA10 years industry experience9 years with firm

Mark le RouxHead of Fixed IncomeB Com23 years industry experience9 years with firm

Duane CableHead of SA EquitiesB Com (Hons), CA (SA), CFA9 years industry experience9 years with firm

Charles de KockSenior portfolio managerB Com (Hons), MCom (Econ)29 years industry experience9 years with firm

Neville ChesterSenior portfolio managerB Com, PGDA, CA (SA), CFA18 years industry experience14 years with firm

Gavin JoubertHead of Emerging MarketsBBusSc, CA(SA), CFA15 years industry experience15 years with firm

Louis StassenHead of Global EquityBSc, B Com (Hons), CFA23 years industry experience20 years with firm

Peter LegerHead of Global FrontiersBSc Eng (Chem), B Com (Hons), CFA15 years industry experience9 years with firm

Anthony GibsonPortfolio managerB Com34 years industry experience22 years with firm

Neil YoungPortfolio managerBBusSc (Hons), CA (SA), CFA16 years industry experience16 years with firm

Pallavi AmbekarPortfolio managerBBusSci, CA (SA), CFA12 years industry experience12 years with firm

Henk GroenevaldPortfolio managerBSc (Eng), CFA 11 years industry experience9 years with firm

Suhail SulemanPortfolio managerBBusSc (Hons), ACI, CFA11 years industry experience6 years with firm

165

SECTION 6

Element Investment Managers

www.elementim.co.za

Company details

FAIS FSP registration number:663Switchboard:+27 21 426 1313Fax number:+27 21 426 0999General email: [email protected]: www.elementim.co.zaAddress:25th Floor, Atterbury House, 9 Riebeek Street, Cape Town, 8001PO Box 13, Cape Town, 8000Compliance officer name:Richard Rattue +27 21 683 6824


Element Investment Managers, believe that a disciplined long-term contrarian approach is the most reliable way to achieve superior absolute returns for investors over the long term. They are index agnostic as their aim is to research companies and assets and buy them when their current prices are below their long term intrinsic values and have the discipline to hold them until these intrinsic values are realized. As a result of their long-term contrarian philosophy, it is likely that their portfolios will at times be materially different from other market participants or indices against which they are measured.

FAIS requirements

Who is your FAIS complaints officer?Richard RattuePlease provide the link to the complaints policy on your website:www.elementim.co.za/institutions/risk-management-and-compliance

Ownership

What is the ownership structure of the company?Staff and Staff Trust – 51.2%Original Frater family(selling out) – 3.8%BEE Venture Capital Investors – 19.5% The J&J Group - 25.5%Who are the directors of the company?Dr Anwah Nagia, Terence Craig, Lulamile Xate, Jayendra Naidoo, Ashleen Bredevelt, Geoff Everingham, Richard Rattue, Mandisa ZunguDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, 51.2%

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?BEESCOREDate of accreditation:8 September 2014

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?Ernst and YoungDate of verification:August 2014 (for calendar year ending 31 December 2013)Expiry date of verification:The audit for 2014 (calendar year) is scheduled for 1st half 2015

Investment mandates

What are your total assets under management?R1.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R77 millionRetail: R1.2 billionLife: N/AOther: R9 million



Terence CraigChief Investment OfficerB Bus Sc (Hons), CA (SA), CFA20 years industry experience13 years with firm

166


Fairtree Capital (Pty) Ltd

www.fairtree.com

Company details

FAIS FSP registration number:25917Switchboard:+27 21 943 3760Fax number:+27 21 914 3103General email: [email protected]: www.fairtree.comAddress:Willowbridge Place, Cnr Carl Cronje & Old Oak Road, Bellville, 7530PO Box 4124, Tygervalley, 7536Compliance officer name:Graeme Rate at Prime Administration+27 21 202 8275


As a diversified fund manager, they offer retail and institutional investments in hedge funds and long only funds across multiple asset classes and geographies, with a focus on South Africa and Africa. At Fairtree Capital they pride themselves on their acclaimed specialist teams and “tried, tested and proven” risk and portfolio management processes. Their investment process is based on meticulous top-down and bottom-up analysis to ensure a diversified selection of investments in each fund.

Three integral values define Fairtree Capital: Integrity, Excellence and Growth. With these values supporting each decision they make and they have been able to leverage their combined investment and risk management skills across various investment strategies and asset classes, securing their position at the forefront of the industry.

FAIS requirements

Who is your FAIS complaints officer?Graeme Rate at Prime AdministrationPlease provide the link to the complaints policy on your website:www.fairtree.com

Ownership

What is the ownership structure of the company?100% owned by staffWho are the directors of the company?Andre Malan, Kobus Nel, Bradley AnthonyDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:100%

History


B-BBEE Credentials

Are you B-BBEE accredited?NoWhat is your B-BBEE status?By whom have you been accredited?Date of accreditation:N/A

GIPS


Investment mandates


167

SECTION 6

Fairtree Capital (Pty) Ltd

Continued



Andre MalanDirectorB Comm, MBA20 years industry experience9 years with firm

Kobus NelDirectorCA (SA), CFA14 years industry experience8 years with firm

Bradley AnthonyDirectorBA (Economic History), CAIA21 years industry experience3 years with firm

Hannes van den BergPortfolio ManagerCA (SA), CFA, M Acc6 years industry experience6 years with firm

Johannes CorbettPortfolio ManagerB Sc Agric (Honours), Food Manufacturing Degree (NQF6), MBA6 years industry experience5 years with firm

Ian MillardPortfolio ManagerB Comm24 years industry experience4 years with firm

Stephen BrownPortfolio ManagerB Comm, MBA, CFA17 years industry experience3 years with firm

Jacobus LacockMacro StrategistB Comm (Financial Economics), CFA10 years industry experience3 years with firm

Danie PretoriusPortfolio ManagerB Comm Cum Laude (Actuarial Science), MBA6 years industry experience3 years with firm

Cor BooysenPortfolio ManagerB Ing9 years industry experience2 years with firm

Louis AntelmePortfolio ManagerCFA20 years industry experience2 years with firm

Paul CrawfordPortfolio ManagerBSc Eng (Elec), MBA, CFA17 years industry experience2 years with firm

168


Foord Asset Management (Pty) Ltd

www.foord.co.za

Company details

FAIS FSP registration number:578Switchboard:+27 21 532 6988Fax number:+27 21 532 6999General email: [email protected]: www.foord.co.zaAddress:8 Forest Mews, Forest Drive, Pinelands, 7405PO Box 135, Howard Place, 7450Compliance officer name:Diane Behr+27 21 532 6916


How Foord think about investments determines how they act. The tenets of their investment philosophy are the lights that guide what they do:

Get the big calls rightMeaningful investment returns are not earned by making incremental decisions. Superior long-term returns are generated by identifying and taking advantage of economic cycles. In the long term, it is never beneficial to invest in the fast hounds of the slow pack.

Buy at the right priceThe price at which one purchases an investment dictates future returns: pay too dear, and future returns are compromised. “Cheap” or “dear” are concepts that crystallise with fundamental analysis of the future revenue streams and associated risks of an investment security. Investing with a margin of safety is critical to reducing the future risk of loss.

Take a long term view and be patientSpeculation is a short-term activity with an inherently uncertain result. Investment is a long-term activity with a more certain result. Like the maturation of a good wine or the growing of a tree, an investment’s full potential realises over time.

Ignore the benchmark when building portfoliosA benchmark is often representative of what is in vogue or what is simply big. Bigger isn’t always better and fashion is fickle. Portfolios should be constructed by applying objective, independent perspectives to their composition. To outperform the herd you have to be different from the herd.

Diversify and manage riskDiversification offers possibly the only “free lunch” in the market – it affords the investor the chance to manage the risk of being wrong. Diversification should be used often, but not excessively. Where careful analysis gives an investor greater conviction, less diversification is needed – because the risk of being wrong is lower.

FAIS requirements

Who is your FAIS complaints officer?Diane BehrPlease provide the link to the complaints policy on your website:http://www.foord.co.za/foord/content/en/foord-home

Ownership

What is the ownership structure of the company?Privately owned companyWho are the directors of the company?PE Cluer, BR Davey, D Foord, WL FraserDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:92%

History


B-BBEE Credentials


GIPS


169

SECTION 6

Foord Asset Management (Pty) Ltd

Continued

Investment mandates




Dave FoordChief Investment OfficerB Com, CA(SA)35 years industry experience32 years with firm

Carolyn LevinPortfolio Manager and AnalystB Bus Sc (Hons), CA(SA), CFA9 years industry experience7 years with firm

William FraserStrategy, Fixed Income and Property Analyst; DirectorB Com, Actuarial, Cert (Financial Engineering)16 years industry experience9 years with firm

Dane SchrauwenPortfolio Manager and AnalystBA LLB20 years industry experience5 years with firm

Daryll OwenDeputy CIOB Com, CAIB(SA), AEP29 years industry experience1 years with firm

Brian DaveyPortfolio Manager, DirectorB Com, CA(SA)23 years industry experience19 years with firm

Nick BalkinPortfolio Manager and Head of Equity ResearchB Com (Hons), CFA12 years industry experience9 years with firm

Michael TownshendSenior AnalystB Sc (Hons), BA, MBA17 years industry experience9 years with firm

170


Futuregrowth Asset Management (Pty) Ltd

www.futuregrowth.co.za

Company details

FAIS FSP registration number:520Switchboard:+27 21 659 5300Fax number:+27 21 659 5400General email: [email protected]: www.futuregrowth.co.zaAddress:3rd Floor, Great Westerford, Main Road, Rondebosch, 7700Private Bag X6, Rondebosch, 7725Compliance officer name:Ryan Kieser+27 21 659 5447


Futuregrowth’s Fixed Interest investment philosophy is to maximise long-term investment returns by identifying, measuring and managing all value-adding components of interest bearing investments.

This can be broadly broken down into two core areas. Firstly, the interest rate process involves the determination of the most likely future direction of interest rates, followed by the most appropriate allocation to money market, nominal and inflation-linked bonds as well as yield curve positioning across all three of these broad interest rate asset classes.

The interest rate strategy is expressed mainly by utilising the most liquid RSA government bond market. The process endeavours to identify market anomalies by finding balance between economic fundamental analysis (top down) and market valuation (bottom-up). They frequently find a mismatch which enables them to express their view, preferably against a well-priced market consensus.

Along with the intense scrutiny they pay to the interest rate process, tey channel substantial efforts into asset selection. The core of the asset selection process is the creation of diversified portfolios with substantial yield enhancement through a robust credit/analysis process. As a result the portfolio’s running yield should produce long term, stable outperformance.

In terms of market anomalies, Futuregrowth believe that they can add alpha through focused exploitation of market inefficiencies. They use well practiced quantitative processes to select high credit quality and high yielding assets. They do realise that in the course of earning higher yields the portfolio is exposed to both default risk and widening credit spreads. These risks are minimised in a number of ways that include:

■ Using a rigorous fundamental process that screens good assets for inclusion in the portfolio

■ Ensuring diversity by credit exposure limits (issuer, credit class, sector)

■ Negotiating strong lender covenants, security and protections which reduce the likelihood of default and also increase our estimated recovery rates in an event of default

■ Actively monitoring and managing these assets

■ Pricing appropriately for credit risk

FAIS requirements

Who is your FAIS complaints officer?Ryan KieserPlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?As at December 2012 the dispersion of Futuregrowth shares was as follows:Old Mutual Investment Group (SA (Pty) Ltd: 81.25%OMIGSA Black Management Trust: 2.08%OMIGSA Management Trust: 11.37%Imfundo SP Holdings (Pty) Ltd: 5.30%Who are the directors of the company?Diane Radley, Henk Beets, Andrew Canter, Paul Rackstraw, Mobasheer Patel, Hywel George, Mabatho SeeisoInterest in ownership? Please provide the percentage held by staff and management:Yes, 13.5%

History

When was the company established?2000List of mergers that have taken place since being established:2008 - OMIGSA became the majority shareholder

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?AQRateDate of accreditation:29/09/2014

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?E-ComplyDate of verification:01/01/2010Expiry date of verification:01/01/2011. Latest verification expected soon.

171

SECTION 6


Continued

Investment mandates

What are your total assets under management?R139.5bn (at November 2014)Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R20.8bn (as at June 2014, December is not yet ready)Retail: R59.1bn (as at June 2014, December is not yet ready)Life: R8.8bn (as at June 2014, December is not yet ready)Other: N/A



Andrew Canter Chief Investment Officer, Head of Fixed IncomeBSc, CFA25 years industry experience14 years with Futuregrowth

Wikus FurstenbergPortfolio ManagerMCom25 Years industry experience16 years with OMIGSA/Futuregrowth

Daphne BothaPortfolio ManagerB Com (Hons), Diploma in Financial Markets19 Years industry experience14 years with Futuregrowth

Michael van RensburgHead: Dealing, Portfolio ManagerB Com26 years industry experience16 years with OMIGSA/Futuregrowth

Jason LightfootPortfolio Manager / Credit AnalystBA, B Com (Hons)18 Years industry experience14 years with Futuregrowth

Mei-Chi Liou Portfolio Manager M Bus Sc 13 Years industry experience 12 years with Futuregrowth

172


Gryphon Asset Management Pty Ltd

www.gryphon.com

Company details

FAIS FSP registration number:581Switchboard:+27 21 915 5100Fax number:+27 21 915 5111General email: [email protected]: www.gryphon.comAddress:Prosano Park East, Southgate Tyger Waterfront, Carl Cronje Drive, Bellville, 7530Private Bag x20, Tyger Vallei, 7536Compliance officer name:MJ Kellerman+27 21 915 5120


Gryphon Asset Management is a specialist investment house, managing equity, interest bearing and derivative instruments. One of the major risks to generating investment returns is emotion. To mitigate against this risk, we are process driven, with fundamental valuation as the foundation of our investment decisions.

Our Indexation Investment philosophy is: ■ Keep indexation simple; minimise tracking error and deliver returns in line with the respective benchmarks and mandates;

■ No risk taking tolerated within portfolios to “enhance” returns. Value and returns at the core can be enhanced for clients, if so desired, by leveraging the asset base of portfolios (script lending, dividend stripping, etc.);

■ Be fully invested at all times; reinvest income and dividends upon receipt;

■ Derivatives only to be used in indexation portfolios for liquidity purposes.

■ Our Alternative Investment philosophy is:

■ To keep strategies simple; ■ Follow a disciplined approach; ■ To be transparent.

Our Asset Allocation philosophy is: ■ To be active; ■ Follow a disciplined approach; ■ Research driven; ■ To be transparent.

FAIS requirements

Who is your FAIS complaints officer?MJ KellermanPlease provide the link to the complaints policy on your website:http://www.gryphonam.co.za/Gryphon/wp-content/uploads/2014/04/Gryphon-Complaints-Handling-Policy-31-03-2010.pdf

Ownership

What is the ownership structure of the company?100% by Gryphon Financial ServicesWho are the directors of the company?MJ Kellerman; A Du PlessisDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes; 100% via Gryphon Financial Services

History

When was the company established?1998-10-01List of mergers that have taken place since being established:N/A

B-BBEE Credentials


GIPS

Are you GIPS compliant?YesAre you GIPS verified?Not verifiedBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates




Reuben Beelderschief investment OfficerB.Com (Hons), CA (SA), CFA18 years industry experience14 years with firm

Casparus TreurnichtHead of Fixed ResearchB.Com (Hons)4 years with firm7 years industry experience

Abri Du PlessisHead of Fixed IncomeM Com 24 years industry experience16 years with firm

Sunette SwartPortfolio ManagerB Compt Hons, CA (SA)10 years industry experience10 years with firm

173

SECTION 6

Investec Asset Management (Pty) Ltd

www.investecassetmanagement.com

Company details

FAIS FSP registration number:587Switchboard:+27 21 416 2000Fax number:N/AGeneral email: [email protected]: www.investecassetmanagement.comAddress:36 Hans Strijdom Avenue, Foreshore, Cape Town, 8001Compliance officer name:Clifford Clibborn-Dyer+27 21 416 1281


Investec Asset Management firmly believes in the power of specialisation and that great investments come from bold and well-tested ideas. Investec Asset Management has seven specialist investment capabilities managed by dedicated investment teams. These teams have their own specific investment philosophy which gives them a unified view on investing. They apply this philosophy to the underlying strategies they manage through rigorous, disciplined investment processes.

FAIS requirements

Who is your FAIS complaints officer?Clifford Clibborn-DyerPlease provide the link to the complaints policy on your website:http://goo.gl/9zWKRJ

Ownership

What is the ownership structure of the company?Investec Asset Management (Pty) Ltd is an independently managed and 85% owned entity of Investec Ltd, (an international specialist banking and asset management group) the other 15% is owned by senior employees of Investec Asset Management.Who are the directors of the company? Board of Directors: Investec Asset Management (Pty) LtdHendrik du Toit, John Green, Thabo Khojane, André Roux, Cunningham Ngcukana, John McNab, Kim McFarland, Noluthando GosaDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, senior employees of Investec Asset Management own 15% of the firm.

History

When was the company established?Investec Asset Management was established in South Africa in November 1991.List of mergers that have taken place since being established:IAM acquired Guinness Flight Hambro in 1998 and started international operations at that date as Investec Asset Management Ltd. Guinness Flight Hambro was originally incorporated in July 1986. As such, the incorporation date for Investec Asset Management.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?The Financial Sector CodeDate of accreditation:2014-10-01

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?KPMGDate of verification:2014-09-30Expiry date of verification:Investec Asset Management is verified on an annual basis

Investment mandates

What are your total assets under management?R494 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R307 billionRetail: N/AOther: N/A

174



Size of Investment Team: Cape Town 67; London 93; Singapore 2; Hong Kong 1

John McNabCo-Chief Investment OfficerBEng Industrial (Cum Laude), MEng Industrial (Cum Laude), CFA;19 years industry experience19 years with firm

Mimi FerriniCo-Chief Investment OfficerB Com26 years industry experience22 years with firm

Werner Gey van PittiusCo-Head of Fixed IncomeB Com (Hons.) Financial Economics, B Com Insurance Science, MSc Applied Statistics;11 years industry experience11 years with firm

Peter EerdmansCo-Head of Fixed IncomeMSc Econometrics19 years industry experience9 years with firm

Andre RouxCo-Head of Fixed IncomeMPhil Economics, MSc Mathematics, BSc (Hons.) Mathematics15 years industry experience15 years with firm

Simon HowieHead of SA and Africa CreditBArch, MBA, CFA16 years industry experience9 years with firm

Malcolm CharlesPortfolio ManagerB Com Accounting, Business Administration & Commercial Law18 years industry experience13 years with firm

Investec Asset Management (Pty) Ltd

Continued

Peter KentPortfolio ManagerB Com (Hons.) Statistics, MSc Finance, CA(SA), CFA14 years industry experience2 years with firm

Nazmeera MoolaEconomist and StrategistB.Bus.Sc; CFA14 years industry experience1 years with firm

Khaya GobodoStrategy Leader Africa PublicB Com, MSc Investment Management, CFA14 years industry experienceKhaya rejoined the firm in 2014 and has 6 years’ previous experience with the firm years with firm

Christopher FreundStrategy Leader SA Balanced & SA General EquityB Com, BCompt (Hons.) Accounting, CA (SA), CFA24 years industry experience9 years with firm

Rhynhardt RoodtPortfolio Manager - SA Balanced & SA General EquityB Com Financial Management Sciences, B Com (Hons.) (Cum Laude) Investment Management, MCom Financial (Cum Laude) Management, CFA11 years industry experience9 years with firm

John BiccardPortfolio Manager - SA Value EquityB Com (Hons.) Economics, CFA24 years industry experience14 years with firm

Clyde RossouwHead of QualityBSc Statistics & Actuarial Science, CAT, CFI, CFA20 years industry experience15 years with firm

Sumesh ChettyPortfolio ManagerBBusSc (Hons.) Actuarial Science, PGDip Actuarial Science, FIA12 years industry experience7 years with firm

Rob ForsythHead of Quality ResearchBBusSc (Hons.) Finance19 years industry experience19 years with firm

John StopfordCo-Head of Global Multi-AssetBSc Chemistry, CFA 24 years industry experience21 years with firm

Phillip SaundersCo-Head of Global Multi-AssetBA History; 33 years industry experience33 years with firm

Michael Spinks: BA (Hons.) Co-Head of Global Multi-Asset Mathematics & Economics, CFA18 years industry experience2 years with firm

175

SECTION 6

Investment Solutions Ltd

www.investmentsolutions.co.za

Company details

FAIS FSP registration number:711Switchboard:+27 11 505 6000Fax number:+27 11 263 1001General email: [email protected]:www.investmentsolutions.co.zaAddress:115 West Street, Sandown, Sandton, 2196PO Box, 786055, Sandton, 2146Compliance officer name:Gigi Vorlaufer+27 11 505 6033


Provider of asset management services, Multi-manager, investment administration and investment advices.

FAIS requirements

Who is your FAIS complaints officer?Linda ViviersPlease provide the link to the complaints policy on your website:https://sa.investmentsolutions.co.za/Risk-Compliance/Legislation

Ownership

What is the ownership structure of the company?100% owned by AF equity HoldingsWho are the directors of the company? EC Kieswetter, DV Viljoen (alternate)Managing Director - DTV MsibiDirectors - M Collier, D Konar, M Msimang, N Nyawo, B Petersen, M Ramplin, Company Secretary - JE SalvadoDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1997List of mergers that have taken place since being established:Superflex 1999

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?EmpowerdexDate of accreditation:2014-05-01

GIPS


Investment mandates

What are your total assets under management?R269.5 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R228.3 billionRetail: R16,1 billionLife: R25,1 billionOther: N/A



Glenn SilvermanChief Investment OfficerB Com, BAcc, CA(SA), CFA22 Years industry experience 15 years with firm

Ann LeepileHead: Manager ResearchB Com, CFA13 years industry experience 4 years with firm

Nina SaadHead: Portfolio Management (Solutions)BSc, CFA18 years of industry experience 6 years with firm

Kabelo RikhotsoHead: Portfolio Management (Products)BSc, B Com(Hons), MCom, CFA11 years industry experience 7 years with firm

Lesiba MothataHead: Market and Economic ResearchB Com, B Com(Hons), MCom12 years industry experience 2 years with firm

Linda van TonderProduct Head: GlobalBSc, BSc(Hons)13 years of industry experience 7 years with firm

Veenesh DhayalamHead: Quant ResearchBSc, Higher Diploma in Education16 years of industry experience 6 years with firm

Ernest MabasoProduct Head: Multi-asset classB Com, ACMA, MBA14 years industry experience 7 years with firm

176


JM Busha Asset Managers (Pty) Ltd

www.jmbusha.com

Company details

FAIS FSP registration number:730Switchboard:+27 11 325 2027Fax number:+27 11 325 2047General email: [email protected]: www.jmbusha.comAddress:28 Bompas Road, Dunkeld West, Johannesburg, 2196PO Box 31250, Braamfontein, 2017Compliance officer name:Joseph Makamba Busha+27 11 325 2027


■ Disciplined strategic investment process based on thorough quantitative research drives performance. Strategic asset allocation

■ Risk minimisation through well-defined procedures and controls, diversified portfolios.

■ Tactical Asset Allocation (TAA) strategies enhance performance. Bottom-up stock driven.

■ Deliver chosen benchmark returns as minimum. Performance is everything.

FAIS requirements

Who is your FAIS complaints officer?Joseph Makamba BushaPlease provide the link to the complaints policy on your website:www.jmbusha.com

Ownership

What is the ownership structure of the company?100% Employee ownedWho are the directors of the company? L. Vilakazi-Tselane (Ms) (Chairperson)*, J.M. Busha (Managing), T.C. Musiyambiri*,M. M. Kabi (Ms)**Non-executive DirectorsDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, 100% employee owned

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level twoBy whom have you been accredited?Abacus BEE Verification (Pty) LtdDate of accreditation:2014-10-15

GIPS


Investment mandates

What are your total assets under management?R5.2 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.1 billionRetail: R14.7 millionLife: N/AOther: R29.3 million



Joseph Makamba BushaChief Investment OfficerBSc., BSc.(Hons.), MSc.(Derivatives)M.Phil (Finance).23 years industry experience15 years with firm

Limakatso LehoboHead of ResearchBA, B Com, MCom8 years industry experience7 years with firm

Farai MapfinyaHead of EquitiesBSc. (IT), B Com10 years industry experience1 year with firm

177

SECTION 6

Kagiso Asset Management (Pty) Ltd

www.kagisoam.com

Company details

FAIS FSP registration number:784Switchboard:+27 21 673 6300Fax number:086 675 8501General email: [email protected]: www.kagisoam.comAddress:5th Floor MontClare Place, Cnr Main & Campground Roads, Claremont, 7708PO Box 1016, Cape Town, 8000Compliance officer name:Tracy-Lee Scott+27 21 673 6303


Kagiso makes investment decisions based on mispricings they observe in the market. Simply put, they buy investments that are priced well below their intrinsic values and avoid those that they believe are overpriced.

Opportunities arise when market prices deviate from intrinsic value.

All investments represent a set of future cash flows, which can be valued with reasonable accuracy. Over time, this intrinsic value progresses at a fairly stable pace. Asset prices, however, fluctuate considerably through time. This is largely due to self-reinforcing cycles of enthusiasm or negativity, often fuelled by an excessive focus on near-term data and news flow.

Their aim is to identify and exploit mispricings in the markets. They therefore buy investments at prices well below their estimation of intrinsic value and hold them while they deliver strong cash returns and until they can be sold above this value. Once sold, Kagiso avoids such overvalued investments for as long as the market price is above the intrinsic value.

Kagiso recognises that there is considerable danger in operating with the comfort of a false sense of certainty and the accompanying behavioural reinforcement cycles that lead to a distorted evaluation of new information. As a result, they understand that despite their best efforts, they cannot possibly know all the facts.

This drives them to think more deeply, to work harder and to be more alert. They view the future in terms of probabilities, explore alternative scenarios, diversify our positions, hedge risk and seek out potential asymmetries.

FAIS requirements

Who is your FAIS complaints officer?Tracy-Lee ScottPlease provide the link to the complaints policy on your website:http://www.kagisoam.com/legal/

Ownership

What is the ownership structure of the company?50.1% owned by Kagiso Tiso Holdings 49.9% owned by management and staffWho are the directors of the company?Roland Greaver, Gavin Wood, William Cosby, Siphokazi MahlanguDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes - 49.9%

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2 contributorBy whom have you been accredited?NERADate of accreditation:2014-11-21

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PricewaterhouseCooperDate of verification:31 July 2014Expiry date of verification:31 December 2014

Investment mandates

What are your total assets under management?R66.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R63.3 billionRetail: R3 billionLife: N/AOther: N/A



Gavin WoodChief Investment OfficerBBusSc, FFA, CFA19 years industry experience13 years with firm

Abdul DavidsHead of ResearchB Com, CFA16 years industry experience7 years with firm

178


Mazi Capital (Pty) Ltd

www.mazi.co.za

Company details

FAIS FSP registration number:27404Switchboard:+27 10 001 8300Fax number:+27 10 001 8600General email: [email protected]: www.mazi.co.zaAddress:11th Floor Sandton Eye, 126 West Street, Sandton, 2196PO Box 784583, Sandton, 2146Compliance officer name:Niel Wessels+27 11 794 1189


Mazi employ disciplined long term fundamental valuation philosophy. Their tenets for sound investments comprise of the following: -Sustainability of the business model; quality of management team and board of directors; balance sheet strength and clarity of cash generation; defensiveness - offering downside protection; Price relative to its fundamental value.

FAIS requirements

Who is your FAIS complaints officer?Vanessa De SousaPlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?Mazi Capital is an independent, staff owned and investment focused business with no subsidiaries or affiliates.Who are the directors of the company?Malungelo Zilimbola and Asanda Notshe

Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:100% Staff

History

When was the company established?2006-07-03List of mergers that have taken place since being established:Mazi Capital entered into joint venture with another fledgling company to pool resources and share company research. The joint venture was dissolved in 2013 to facilitate institutionalisation of Mazi Capital, address key man risk and to align interest of the investment team with those of the client

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3By whom have you been accredited?Sizwe Ntsaluba GobodoDate of accreditation:2014-07-11

GIPS


Investment mandates

What are your total assets under management?R19.1 billion

Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R18.5 billionRetail: R600 millionLife: N/AOther: N/A



Malungelo ZilimbolaChief Investment OfficerBSc (Hons), B Com (Hons)15 years industry experienceSince inception years with firm

Asanda NotsheHead of ResearchBBusSc, FAFFA, FIA11 years industry experience5 years with firm

Seth Boakye-DankwaPortfolio Manager/ AnalystBSc (Hons), MA26 years industry experience1 years with firm

Francois OlivierPortfolio Manager/ AnalystCA (SA), CFA15 years industry experience1 years with firm

Malusi CelePortfolio Manager/ AnalystB Soc Sci, BSc16 years industry experience1 years with firm

Kgapu MphahlelePortfolio Manager/ AnalystB Com (Hons) Acc14 years industry experience1 years with firm

Keonethebe BosigoPortfolio Manager/ AnalystB Com (Hons), CAIA, CFA9 years industry experience1 years with firm

179

SECTION 6

Meago (Pty) Ltd

www.meago.co.za

Company details

FAIS FSP registration number:24919Switchboard:+27 11 646 2944Fax number:086 644 8909General email: [email protected]: www.meago.co.zaAddress:73 Oxford Road, Saxonwold, 2196PO Box 1180, Edenvale, 1610Compliance officer name:Sharen Gerald+27 11 969 1649 / 083 662 2161


Meago constructs property portfolio to reflect the fundamental investment principles: Attractive recurring income at reasonable risk.

Be overweight with companies with reasonable valuations relative to investment alternatives.

Have the ability to continually sell outperforming assets at the right time and use the funds to buy underperforming shares at opportune times.

Invest in companies with sustainable cash flow and a strong balance sheet that can grow and support the dividend pay-out.

Property types that will benefit from long term sector and fundamental trends.

Invest in companies with assets in strong and growing nodes Invest in companies with good corporate governance and are conscious on social and environmental issues

FAIS requirements

Who is your FAIS complaints officer?Mosibudi RamatswiPlease provide the link to the complaints policy on your website:N/A

Ownership

What is the ownership structure of the company?The company is 100% owned by 4 individuals. HT Ramushu owns 30%; J Padayatchi owns 30%; S Hoosen owns 30% and A Madhi owns the remaining 10%.Who are the directors of the company?HT Ramushu; J Padayachi; S Hoosen and A MadhiDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Management owns a 100% of the company.

History

When was the company established?30/09/2005List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level One Contibutor and 135% BEE Procurement Recognition LevelBy whom have you been accredited?HoneycombDate of accreditation:22/04/2014

GIPS


Investment mandates

What are your total assets under management?R7.6 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R7.6 billionRetail: N/ALife: N/AOther: N/A



HT RamushuPortfolio ManagerB Com, MSc (Real Estate)16 years industry experience9 years with firm

J PadayatchiPortfolio ManagerBSc(Quantity Surveying), B Com(Hons), CA(SA), HDip Tax16 years industry experience9 years with firm

180


Mergence Investment Managers (Pty) Ltd

www.mergence.co.za

Company details

FAIS FSP registration number:16134Switchboard:+27 21 433 2960Fax number:+27 21 433 0675General email: [email protected]: www.mergence.co.zaAddress:6th Flr, The Equinox, cnr Milton & Main Road, Sea Point, 8005PO Box 8275, Roggebaai, 8012Compliance officer name:Gerry Grispos (outsourced to CompliServe)086 127 3783


Mergence Investment Managers is an independent boutique asset manager with a pragmatic investment approach that readily enables offerings across the investment risk spectrum.

Our pragmatic investment philosophy recognises the dynamism of markets and thus the cyclicality of performance of different investment styles over time. At Mergence, we aim to understand how the world really works rather than how we think it should work (pragmatism), especially pertaining to markets and investments. Furthermore, a responsible investing (ESG) ethos is embedded in our investment process.

FAIS requirements

Who is your FAIS complaints officer?Mr Andy Howard (Chief Operating Officer)Please provide the link to the complaints policy on your website:www.mergence.co.za/about-us/operations-governance

Ownership

What is the ownership structure of the company?Mergence Investment Managers is a wholly owned subsidiary of Mergence Africa Holdings.Who are the directors of the company?Masimo Magerman, Fabian de Beer, Bongani JackDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:In August 2014, 20.67% of Mergence Investment Managers’ equity was acquired by staff through an incentive scheme.

History

When was the company established?August 2004List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3By whom have you been accredited?Authentic RatingsDate of accreditation:2014-12-31

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PwCDate of verification:2014-03-28Expiry date of verification:2013-08-31

Investment mandates

What are your total assets under management?R15.7 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R15.3 billionRetail: R158 millionLife: R192 millionOther: N/A



Fabian de BeerChief Investment OfficerB Com, H.Dip.Ed27 years industry experience8 years with firm

Bradley PrestonPortfolio Manager (Equities)BSc Hons, MSc (Financial Mathematics)9 years industry experience9 years with firm

Dirk SteynPortfolio Manager (Absolute Return)BSc, B Eng and MSc (Financial Mathematics)9 years industry experience7 years with firm

Imtiaz AhmedPortfolio Manager (Balanced)B Com, CA (SA)22 years industry experience2 years with firm

Mark van WykPortfolio Manager (Impact/SRI)B Com (Hons), CA (SA)14 years industry experience3 years with firm

Patric HoPortfolio Manager (Absolute Return)B Com (Hons), CA (SA)28 years industry experience2 years with firm

181

SECTION 6

Momentum Asset Management (Pty) Ltd

www.momentum.co.za/assetmanagement

Company details

FAIS FSP registration number:6406Switchboard:+27 11 505 1000Fax number:086 573 7662General email: [email protected]: www.momentum.co.za/assetmanagementAddress:13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196Private Bag 9959, Sandton, 2146Compliance officer name:Pheona Hartel+27 12 673 7561


Momentum aim to generate competitive, risk-adjusted returns on a consistent basis through a full market cycle. They do this through a focus on active investing based on asset allocation and equity selection, and integrate these with portfolio construction process to control risk.

A top-down strategy is applied in deciding asset and sector emphasis, while the bottom-up approach is driven by the belief that intrinsic company valuation is the only basis for sustained long-term performance. While some value may be added through other, more short-term considerations, this contribution is regarded as less reliable and should only constitute a small portion of the overall risk budget, and hence of the overall return.

They believe that a clear investment team structure and disciplined adherence to a clearly defined investment process is necessary for investment success. Hence a rigorous formal risk-budgeting and portfolio construction processes are applied as core competencies. These processes

ensure investment discipline and maintain that our views are transferred into our portfolios consistently and efficiently.

FAIS requirements

Who is your FAIS complaints officer?Pheona HartelPlease provide the link to the complaints policy on your website:http://mconnect.mmiholdings.co.za/Search/Pages/Results.aspx?sq=1&k=complaints%20procedure&s=All%20Sites

Ownership

What is the ownership structure of the company?Momentum Asset Management (Pty) Ltd is a wholly owned subsidiary of Momentum Investments, which is a wholly owned subsidiary of one of South Africa’s largest life assurance companies listed on the JSE, MMI Holdings.Who are the directors of the company?1. Sibusiso Comfort Mabuza. 2. Andre Nortje

Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1987List of mergers that have taken place since being established:Momentum Asset Management was born out of a merger between RMB Asset Management and Metropolitan Asset Managers. Both companies were long established within the asset management industry. RMB Asset Management was formed in 1990, and Metropolitan Asset Managers in 1998. As part of the merger, the name of the asset management companies was changed to Momentum Asset Management in 2011.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3 ContributorBy whom have you been accredited?National Empowerment Rating Agency (Pty) LtdDate of accreditation:2014-12-17

GIPS


Investment mandates

What are your total assets under management?R180.5 billionPlease detail the mandates you currently manage and the size of each of these mandates:Institutional: R36.9 billionRetail: R31.5 billionLife: R112.1 billionOther: N/A

182




Patrick MathidiHead: Core StrategiesBCompt (Hons), MSc (Fin)17 years industry experience8 years with firm

Herman van PapendorpHead of Macro Research, Co-Manager: Balanced FundsBSc Actuarial Sc, Masters in Econometrics22 years industry experience2 years with firm

Conrad WoodHead of Fixed IncomeB Com (Economics), CFA21 years industry experience21 years with firm

Leon MichaelidesHead: Equity Research, Co-Manager - Core EquityB Com(Hons), CA (SA)15 years industry experience5 years with firm

Loftie BothaPortfolio Manager: Absolute Return PortfoliosBEng, B Com (Hons)(Inv), MCom (Business Man)20 years industry experience5 years with firm

Norman MackechniePortfolio Manager: Life and Conservative FundsMSc(Eng), DIC, MBA, CFA27 years industry experience14 years with firm

Richard KlotnickPortfolio Manager: Fixed Income StrategiesB Com Hons (Fin), CFA11 years industry experience5 years with firm

Sam HoulieHead: Unconstrained StrategiesBCompt (Hons), CA (SA), CFA18 years industry experience3 years with firm

Rodger WaltersPortfolio Manager: Unconstrained StrategiesB Com (Hons), CA (Namibia), CFA19 years industry experience2 years with firm

Shawn StockigtPortfolio Manager: Unconstrained StrategiesB Com (Law)19 years industry experience2 years with firm

Glen CopansHead: Beta StrategiesBCompt (Hons)(Cum Laude), CFA14 years industry experience8 years with firm

Mishnah SethHead: Frontier MarketsB Com (Hons), CFA12 years industry experience1 years with firm


Continued

183

SECTION 6

Momentum Outcome-based Solutions (Pty) Ltd

www.momentuminv.co.za/MomentumOutcome-basedSolutions

Company details

FAIS FSP registration number:19840Switchboard:086 153 8732Fax number:086 573 7384General email: [email protected]: www.momentuminv.co.za/MomentumOutcome-basedSolutionsAddress:268 West Avenue, Centurion, 0.0157PO Box 7400, Centurion, 0.0046Compliance officer name:Shital Jeeva


They have therefore adapted our unique value proposition to create investment portfolios that centre around your clients and increase the likelihood of reaching their investment goal.

Their unique value proposition is to understand clients’ goals and their attitudes and capacities to take on risk. They recognise and understand market forces and human behaviour (for example the herd mentality – investors making the wrong investment decisions at times of stress). They craft investment solutions for clients by considering their liabilities or needs, defining a goal, risk tolerance and appropriate time frame and then diversifying across multiple asset classes, investment strategies and vehicles to match and deliver on the objectives that have been set.

Momentum execute robust solutions by blending asset classes and strategies in the most efficient and optimal manner through modern financial engineering techniques. They help clients understand and articulate their needs and solve for appropriate investment outcomes. Their investment team

remains focused on the right outcome and makes this journey as comfortable as possible

FAIS requirements

Who is your FAIS complaints officer?Shital JeevaPlease provide the link to the complaints policy on your website:http://www.momentuminv.co.za/Libraries/Legal_Documents/Complaints_Resolution_Policy_and_Procedure.sflb.ashx

Ownership

What is the ownership structure of the company?MMI Holdings LtdWho are the directors of the company?LP Greyling, H Kerwan, N Pillay, SC Saunderson, F van Heerden (non-executive)Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?2004-01-01List of mergers that have taken place since being established:Momentum Outcome-based Solutions was born from Advantage Asset Managers (Pty) Ltd, which was established on 1 January 2005 as a result of the merger of two prominent South African multi-managers, evolving from roots that extend as far back as 1994. The company changed its name from Momentum Manager of Managers in July 2014 with the amalgamation of Momentum Manager of Managers, Momentum Alternative Investments and Momentum Investment Consulting.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?BB-BEE level 2 contributorBy whom have you been accredited?National Empowerment Rating AgencyDate of accreditation:2014-04-14

GIPS


Investment mandates

What are your total assets under management?R318 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: N/ARetail: N/ALife: N/AOther: N/A

184



Size of Investment Team: 30*

Sonja SaundersonChief Investment OfficerBSc,B Com(Hons), MCom (Cum Laude)13 years industry experience

Eugene BothaHead of ResearchBSc (Hons), MSc8 years industry experience

Mike AdsettsHead: Specialised InvestmentsBSc(Hons), CFA, MBA10 years industry experience

Jako de JagerHead: Portfolio ManagementB Com (Hons)12 years industry experience

Melissa BredaHead: Portfolio ConstructionBSc (Hons)10 years industry experience

Jean BadenhorstHead: Manager ResearchB Com19 years industry experience

Jana van RooyenPortfolio ManagerB Com6 years industry experience

Mohammed SibdaGlobal Portfolio ManagerB Com15 years industry experience

Rian SmitPortfolio ManagerB Com(Acc), B Com(Hons Acc), CTA, CA(SA)15 years industry experience

Kris AdamsPortfolio ManagerBBusSci, CFA10 years industry experience

Earl Van ZylPortfolio ManagerBSc(Eng), MBA, CAIA10 years industry experience

* Momentum Outcome-based Solutions is a newly formed firm.

Momentum Outcome-based Solutions (Pty) Ltd

Continued

185

SECTION 6

Nedgroup Investments (Pty) Ltd

www.nedgroupinvestments.co.za

Company details

FAIS FSP registration number:N/ASwitchboard:0860 123 263Fax number:0860 119 733General email: [email protected]: www.nedgroupinvestments.co.zaAddress:2nd Floor, Nedbank Clocktower, Clocktower Precinct, V&A Waterfront, Cape Town, 8001PO Box 1510, Cape Town, 8000Compliance officer name:Liezel Momberg+27 21 416 6204


They offer individual and institutional investors access to a range of South African and offshore unit trust portfolios to meet their investment needs. These portfolios are managed by a range of Best of Breed™ investment managers that they actively monitor and review, so that clients don’t have to.

FAIS requirements

Who is your FAIS complaints officer?N/APlease provide the link to the complaints policy on your website:http://www.nedgroupnvestments.co.za/Files/Fetch/906

Ownership

What is the ownership structure of the company?Wholly owned subsidiary on Nedbank Group LtdWho are the directors of the company?NA Andrew, CE Sevenaoks, D MacreadyDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1997List of mergers that have taken place since being established:Nov 2003 - African Harvest, BoE, FTNIB, NIBi and Nedbank Unit Trusts merged to form Nedcor Collective Investments. Changed to Nedgroup Collective Investments June 2005

B-BBEE Credentials

Are you B-BBEE accredited?No, fall under Nedbank Ltd accreditationWhat is your B-BBEE status?Level 2 contributorBy whom have you been accredited?Sizwe Ntsaluba GobodoDate of accreditation:2014-02-20

GIPS


Investment mandates




Nic AndrewExecutive Head, Asset ManagementB.Comm., CA(SA), PG Dip Tax Law, CFA, AMP(Insead)19 years industry experience16 years with firm

Matthew de WetHead of InvestmentsBSC CFA, CFP16 years industry experience14 years with firm

Trevor GarvinHead of Multi-managementB.Com (Hons) Economics, M.Com (Finance), MBA, Dip FMI (Cum Laude), SAFEX, ACIBM, CAIA17 years industry experience11 years with firm

186


Oasis Asset Management Ltd

www.oasiscrescent.com

Company details

FAIS FSP registration number:603Switchboard:+27 21 413 7860Fax number:+27 21 413 7900General email: [email protected]: www.oasiscrescent.comAddress:Oasis House, 96 Upper Roodebloem Road, University Estate, Cape Town, 7925Oasis Asset Management Ltd., PO Box 1217, Cape Town, South Africa, 8000Compliance officer name:Nazeem Ebrahim+27 21 413 7860


Oasis Asset Management Ltd strives to provide unrivalled world-class financial services to its clients and is responsible for every aspect of collective investment schemes, property management, retail retirement funds, institutional investment funds and linked investment insurance policies.

The products offered are designed to protect clients’ assets through the application of a low volatility fund management philosophy. This ideology seeks to preserve the capital of investors during downward market movements to facilitate higher levels of growth over the complete investment cycle.

The application of this philosophy is epitomised in the focused management of financial assets through the utilization of proven stock selection skills that leverage off a meticulous research process to provide superior returns at lower than market risk.

FAIS requirements

Who is your FAIS complaints officer?Nazeem EbrahimPlease provide the link to the complaints policy on your website:Complaints policies are available from the compliance department on request.

Ownership

What is the ownership structure of the company?The company is 100% owned by Oasis Group Holdings (Pty) LtdWho are the directors of the company?Mahomed Shahin Ebrahim; Adam Ebrahim; Nazeem Ebrahim; Roshin Ebrahim ( Non Executive Director)Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:Oasis staff incentive scheme is based on profit participation rather than ownership interest. This has resulted in a high staff retention rate over the last five years

History

When was the company established?1997-01List of mergers that have taken place since being established:No mergers have taken place since the establishment of the company

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1 ContributorBy whom have you been accredited?SAB & TDate of accreditation:Latest accreditation 22 August 2014

GIPS

Are you GIPS compliant?YesAre you GIPS verified?Yes

By whom have you been verified?SAB & TDate of verification:01/01/2013 - 31/12/2013Expiry date of verification:Annual Review

Investment mandates

What are your total assets under management?R21.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R15.7 billionRetail: R5 billionLife: R65 millionOther: N/A



Adam EbrahimChief Investment OfficerCA(SA), CFA27 years industry experience17 years with firm

Mahomed Shahin EbrahimStrategistAltX Dip WBS41 years industry experience17 years with firm

Nazeem EbrahimStrategistB. Soc.Sci & B. Proc33 years industry experience17 years with firm

Micheal SwinglerSenior AnalystCA(SA), CFA20 years industry experience17 years with firm

Hassan MotalaSenior AnalystCA (SA), CFA16 years industry experience13 years with the firm

187

SECTION 6

Oasis Crescent Capital (Pty) Ltd

www.oasiscrescent.com

Company details

FAIS FSP registration number:796Switchboard:+27 21 413 7860Fax number:+27 21 413 7900General email: [email protected]: www.oasiscrescent.comAddress:Oasis House, 96 Upper Roodebloem Road, University Estate, Cape Town, 7925Oasis Crescent Capital (Pty) Ltd., PO Box 1217, Cape Town, South Africa, 8000Compliance officer name:Nazeem Ebrahim+27 21 413 7860


Oasis Crescent Capital (Pty) Ltd strives to provide unrivalled world-class Sharia’h compliant wealth management services to its clients and is responsible for every aspect of collective investment schemes, property management, retail retirement funds, institutional investment funds and linked investment insurance policies.

The products offered are designed to protect clients’ assets through the application of a low volatility fund management philosophy. This ideology seeks to preserve the capital of investors during downward market movements to facilitate higher levels of growth over the complete investment cycle.

The application of this philosophy is epitomised in the focused management of financial assets through the utilization of proven stock selection skills that leverage off a meticulous research process to provide superior returns at lower than market risk.

FAIS requirements

Who is your FAIS complaints officer?Nazeem EbrahimPlease provide the link to the complaints policy on your website:Complaints policies are available from the compliance department on request.

Ownership

What is the ownership structure of the company?The company is 100% owned by Oasis Group Holdings (Pty) LtdWho are the directors of the company?Mahomed Shahin Ebrahim; Adam Ebrahim; Nazeem Ebrahim; Roshin Ebrahim ( Non Executive Director)Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:Oasis staff incentive scheme is based on profit participation rather than ownership interest. This has resulted in a high staff retention rate over the last five years

History

When was the company established?2002-03List of mergers that have taken place since being established:No mergers have taken place since the establishment of the company

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1 ContributorBy whom have you been accredited?SAB & TDate of accreditation:Latest accreditation 22 August 2014

GIPS

Are you GIPS compliant?YesAre you GIPS verified?Yes

By whom have you been verified?SAB & TDate of verification:01/01/2013 - 31/12/2013Expiry date of verification:Annual Review

Investment mandates

What are your total assets under management?R20.9 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R2.9 billionRetail: R17.5 billionLife: R496 millionOther: N/A



Adam EbrahimChief Investment OfficerCA(SA), CFA27 years industry experience17 years with firm

Mahomed Shahin EbrahimStrategistAltX Dip WBS41 years industry experience17 years with firm

Nazeem EbrahimStrategistB. Soc.Sci & B. Proc33 years industry experience17 years with firm

Micheal SwinglerSenior AnalystCA(SA), CFA20 years industry experience17 years with firm

Hassan MotalaSenior AnalystCA (SA), CFA16 years industry experience13 years with the firm

188


Old Mutual Global Index Trackers (Pty) Ltd (OMGxT)

www.oldmutualinvest.com

Company details

FAIS FSP registration number:721Switchboard:+27 21 509 5022Fax number:+27 21 509 5025General email: [email protected]: www.oldmutualinvest.comAddress:West Campus Entrance 1, Mutualpark, Jan Smuts Drive, Pinelands, Cape Town, 7405PO Box 878, Cape Town, 8000Compliance officer name:Zulfa Abdurahman+27 21 509 2570


Their aim is to construct portfolios that deliver the return of the underlying benchmark with very low tracking error, and at very low cost. By minimising tracking error:

■ Their aim is to fully replicate the securities that comprise the index depending on liquidity and cashflow requirements.

■ Forecasting any cash-flows i.e. interest accruals; dividends and liquidity screening/forecasting.

■ Anticipating index changes and corporate actions.

■ Monitoring settlement windows by market/monitor market open times and holidays within the international markets that we cover.

■ Automatic system flagging of irregular forecasted tracking errors.

■ Effective use of derivatives where allowed

■ Applying a ringfenced scenario where required.

And by minimising cost: ■ Much lower management fees. ■ Minimising trading costs. ■ Constantly monitor portfolio turnover and liquidity.

■ Constantly manage the trade-off between tracking error and portfolio churn rates.

FAIS requirements

Who is your FAIS complaints officer?Zulfa AbdurahmanPlease provide the link to the complaints policy on your website:http://ww2.oldmutual.co.za/docs/default-source/old-mutual-south-africa/omig/omig-about-us/responsible-investments/omigsacomplaintspolicy.pdf

Ownership

What is the ownership structure of the company?Old Mutual Global Index Trackers is 100% owned by Old Mutual Investment Group (OMIG) Who are the directors of the company? The directors of Old Mutual Global Index Tracker (Pty) Ltd are:Diane Radley, Mobasheer Patel, Craig Chambers, Tendai Musikavhanu, Hywel GeorgeDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No. Old Mutual Investment Group has set aside 20% of each boutique to be owned over time by the teams in the business, with 8% of this 20% specifically reserved for black staff.The Imfundo Trust holds 5.3% with the remaining 74.7% ultimately being owned by Old Mutual Plc.

History

When was the company established?2001List of mergers that have taken place since being established:In 2001 OMGxT initially sold a 20% stake to OMIG. In December 2006, this was increased to 66.7% when OMGxT became the specialist provider of tracker funds in the Old Mutual Investment Group suite of capabilities. In 2011 this was increased to 74.9% and in 2013 to 100%.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?AQ rateDate of accreditation:2014-07-03

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PriceWaterhouseCoopersDate of verification:2012-12-01Expiry date of verification:NA

Investment mandates




Kingsley WilliamsChief Investment OfficerMBA, BSC (Honours)15 years industry experience7 years with firm

Craig ChambersManaging DirectorB Com (Accounts), PDM (Business Administration) CFA, SAFEX SA Futures Exchange Exam19 years industry experience14 years with firm

189

SECTION 6

Old Mutual Investment Group (Pty) Ltd

www.oldmutualinvest.com

Company details

FAIS FSP registration number:604Switchboard:+27 21 509 5022Fax number:+27 21 509 5025General email: [email protected]: www.oldmutualinvest.comAddress:West Campus Entrance 1, Mutualpark, Jan Smuts Drive, Pinelands, Cape Town, 7405PO Box 878, Cape Town, 8000Compliance officer name:Zulfa Abdurahman+27 21 509 2570


OMIG believes that by combining independent boutique businesses with world class research and supporting infrastructure, they have a combination that will deliver consistently to clients’ objectives. They believe that performance is achieved through expert professionals focusing on their areas of specialisation. Boutique members investing alongside their clients for the long term ensures the fortunes of the investment professionals are strongly linked with client outcomes. OMIG fosters a culture that encourages innovation, empowerment and accountability.

FAIS requirements

Who is your FAIS complaints officer?Zulfa AbdurahmanPlease provide the link to the complaints policy on your website:http://ww2.oldmutual.co.za/docs/default-source/old-mutual-south-africa/omig/omig-about-us/responsible-investments/omigsacomplaintspolicy.pdf

Ownership

What is the ownership structure of the company?Old Mutual Investment Group is majority owned by Old Mutual Emerging Markets, which is ultimately owned by Old Mutual Plc.Who are the directors of the company? The directors of Old Mutual Investment Group (Pty) Ltd are:Diane Radley, Hywel George, Mobasheer Patel, Kerrin LandDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Old Mutual Investment Group has set aside 20% of each boutique to be owned over time by the teams in the business, with 8% of this 20% specifically reserved for black staff. The Imfundo Trust holds 5.3% with the remaining 74.7% ultimately being owned by Old Mutual Plc.

History

When was the company established?1993List of mergers that have taken place since being established:Old Mutual Investment Group has been operating as a multi-boutique business since January 2007. Since then we have increased our shareholding in some of our separately registered FSPs.

B-BBEE Credentials


GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PriceWaterhouseCoopersDate of verification:2012-12-01Expiry date of verification:N/A

Investment mandates


190




Hywel George - Director of InvestmentsChief Investment OfficerBSc: Economics26 years industry experience1 years with firm

John GilchristCo Head: Customised SolutionsCA (SA), MBA (Insead - France)17 years industry experience10 years with company

Grant WatsonCo Head: Customised SolutionsB Com, MCom, MBA, SAIS, CMMD21 years industry experience11 years with company

Paul Boynton Head: Alternative InvestmentsB Com, BSc Hons, MBA, CA (SA), FCMA 25 years industry experience19 years with company

Peter Linley Head: Old Mutual EquitiesBA (Economics), B Com Hons29 years industry experience27 years with company

Tanja Tippett Head: Liability Driven InvestmentsMSc (Applied Maths), CFA16 years industry experience9 years with company

Peter Brooke Head: MacroSolutionsBBusSc Hons (Finance)20 years industry experience9 years with company

Old Mutual Investment Group (Pty) Ltd

Continued

Peter LevettHead: Old Mutual PropertyMCom, CA, MBA25 years industry experience17 years with company

Bradley KalilHead: Old Mutual Specialised Finance (OMSFIN)BBSc, CA (SA), CFA20 years industry experience18 years with company

Richard HassonJoint Head: ELECTUS B Com, CA (SA), CFA17 years industry experience 17 years with company

Neil BrownJoint Head: ELECTUSNat DipCo Admin, MBA23 years industry experience10 years with company

Paul Rackstraw Head: Futuregrowth Asset Management CA (SA) 25 years industry experience25 years with company

Simon PearseHead: Marriott Income SpecialistsB Com, MBA, DBA21 years industry experience21 years with company

191

SECTION 6

Old Mutual Multi-Managers

www.ommultimanagers.co.za

Company details

FAIS FSP registration number:703Switchboard:+27 21 524 4430Fax number:+27 21 441 1199General email: [email protected]: www.ommultimanagers.co.zaAddress:The Estuaries, 2 Oxbow Crescent, Century City, 7441PO Box 44604, Claremont, 7735Compliance officer name:N/A


At Old Mutual Multi-Managers their philosophy revolves around clearly defining each client’s objectives, together with the client, and then aiming to deliver on those objectives. This means that their main focus is on inflation, particularly in relation to retirement funds and its members, and this enables them to avoid some of the pitfalls of worrying what the rest of the investor herd is up to. They also have a long term view that they believe enables their investment team to focus on making sound decisions that will deliver for clients rather than satisfying the short term goals of performance charts, awards and surveys.

FAIS requirements

Who is your FAIS complaints officer?Denver HendricksPlease provide the link to the complaints policy on your website:http://ww2.oldmutual.co.za/docs/default-source/old-mutual-south-africa/omig/omig-about-us/responsible-investments/omigsacomplaintspolicy.pdf

Ownership

What is the ownership structure of the company?Old Mutual Multi-Managers was formed through the business consolidation of the SYm|mETRY Multi-Manager and Acsis investment teams.Old Mutual Multi-Managers is a division of Old Mutual Life Assurance Company of South Africa Ltd (OMLACSA), part of the Old Mutual plc Group. Who are the directors of the company?PG de Beyer, BM Rapiya, RT Mupita, Ms K Murray (British), Ms NT Moholi, Ms CWN Molope and PGM Truyens (Dutch). Company Secretary: EM KirstenDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Current ownership (in terms of voting rights), based on the Broad-Based BEE Codes of Good Practice, is as follows:

■ 5.61% to Management and Staff ■ 3.69% to Intermediaries and Customers

■ 6.08% to Black Business Partners ■ 32.66% to Black Persons via Man

History

When was the company established?SYm|mETRY Multi-Manager was established in 2000.List of mergers that have taken place since being established:Old Mutual Multi-Managers was formed through the business consolidation of the SYm|mETRY Multi-Manager and Acsis investment teams. The consolidation process began in 2013.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?AQ Rate Verification ServicesDate of accreditation:2014-05-22

GIPS

Are you GIPS compliant?Not applicable as Old Mutual Multi-Managers is a Multi-Manager and this applies to underlying managers.Are you GIPS verified?N/ABy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates


192



Continued



Andrew SalmonChief Investment OfficerBEcon, B Com (Honours)31 years industry experience7 years with firm

Ameer AmodHead of Fixed IncomeMcom (Financial Management); MSc (Engineering)13 years industry experience3 years with firm

Monene WatsonHead of EquitiesB Com (Honours) ; CFA ; PGDip (Financial Planning), CFP21 years industry experience12 years with firm

Andreea BuneaHead | Global InvestmentsB Com (Honours) , CFA12 years industry experience7 years with firm

Stephen BrierleyHead | Fund of Hedge FundsB Com (Economics)15 years industry experience6 years with firm

Michael DoddHead | Property Management ResearchBBusSc(Hons), FRM, CFA8 years industry experience7 years with firm

Dave MohrChief Investment StrategistMcom (Economics)31 years industry experience2 years with firm

Sameer SinghAbsolute Return and Fixed Manager ResearchB Com (Management)6 years industry experience5 years with firm

Taruona MhuruManager | ProductsMSc (Financial Mathematics), BSc Honours (Mathematics)8 years industry experience6 years with firm

Barry van ZylHead | Quantitative ResearchB Com (Hons), BSc12 years industry experience12 years with firm

Craig WhitfieldInvestment analystB Com (Honours) , CFP3 years industry experience1 years with firm

Izak OdendalInvestment StrategistMphil10 years industry experience1 years with firm

193

SECTION 6

Pan-African Asset Management (Pty) Ltd

www.pam-asset.co.za

Company details

FAIS FSP registration number:620Switchboard:+27 11 463 0300Fax number:+27 11 463 0299General email: [email protected]: www.pam-asset.co.zaAddress:6 Blackpool Road, Bryanston, Gauteng, 2021Private bag X9962, Sandton, Gauteng, 2146Compliance officer name:Maria Helena Rossouw- Internal Compliance officer+27 11 463 0300


The PAM investment process is driven by the underlying investment philosophy that markets are not efficient and that value can be extracted from market drivers that are not fully discounted in the underlying share or asset prices. Inefficiencies typically stem from inter alia the herd effect in markets, interventions from policy makers and asset/liability adjustments.

FAIS requirements

Who is your FAIS complaints officer?Independent Compliance ServicesPlease provide the link to the complaints policy on your website:www.pam-asset.co.za

Ownership

What is the ownership structure of the company?In May 2012 Assupol acquired a controlling stake (56%) in PAM. Assupol Life Ltd (“Assupol Life”) is a black-owned authorised financial services and credit provider with its

main interest and core competency in the provision of long-term insurance products and solutions. PAM is a subsidiary of the Assupol Group and during 2013 Assupol increased its shareholding in PAM to 71%.Who are the directors of the company?Dr GF Lindeque, RF Schmidt, MB Mokwena - Halala, PM Scheepers, Helen Masson Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:N/A

History

When was the company established?1997List of mergers that have taken place since being established:RAAM was established in 1997 as the first Black asset management company. Wipam commenced business on 1 July 1999. Wipam and Real Africa Asset Management merged in October 2001. The company was re-branded as Pan-African Asset Management (“PAM”) in 2006. In May 2012 Assupol acquired a controlling stake (56%) in PAM. During 2013 Assupol increased its shareholding in PAM to 71%. No changes expected in the next 3 years.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1 ContributorBy whom have you been accredited?EVS -Express Verification Service member of EmpowerdexDate of accreditation:2014-06-30

GIPS

Are you GIPS compliant?PAM’s performance measurement is outsourced to Maitland Fund Services (Pty) LtdAre you GIPS verified?which is GIPS compliant.By whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R4,0 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.4 billionRetail: N/ALife: R2.1 billionOther: R0.5 billion



Helen Margaret MassonChief Investment OfficerM.Com Econometrics (University of Free State), CFA35 years industry experience14 years with firm

Carl Julian MassonDealer/TraderB.Com (Hons) Financial Analyst and Portfolio Management - University of C.T.6 years industry experience4 years with firm

Courtenay HarebottleESG ResearchB.Com Marketing33 years industry experience12 years with firm

194


Prescient Investment Management (Pty) Ltd

www.prescient.co.za

Company details

FAIS FSP registration number:612Switchboard:+27 21 700 3600Fax number:+27 21 700 3700General email: [email protected]: www.prescient.co.zaAddress:Prescient House, Westlake Business Park, Otto Close,Westlake, Cape Town, 7945PO Box 31142, Tokai, 7966Compliance officer name:Hoosain Hamdulay+27 21 700 3600


At Prescient, they define risk as the probability of not meeting the investment objectives of the client. To this extent, positions taken in portfolios are mathematically tested using different scenarios to determine the portfolio outcome. This ensures that the position taken will on the upside, deliver on client expectation, while at the same time, in downward markets, it will not breach the risk objective of the client. The core of Prescient’s investment philosophy is capital preservation and the management of downside risk.

Their investment philosophy gives rise to a distinctive style, QuantPlus® which defines the investment process that Prescient employs. The process is essentially an ‘enhanced’ benchmark process, with the client’s risk limits determining the size of positions taken relative to the risk benchmark. “Quants” refers to the quantitative process where the position outcome is tested to ensure that it will meet the client’s objectives. “Plus” refers to the process where the enhancements and positions are systematically taken to generate additional performance above the benchmark, while still adhering to the client’s risk limits.

FAIS requirements

Who is your FAIS complaints officer?Hoosain HamdulayPlease provide the link to the complaints policy on your website:https://www.prescient.co.za/holdings/files/complaints_handling.pdf

Ownership

What is the ownership structure of the company?Prescient Investment Management was established on the 01 September 1998.Prescient Investment Management (Pty) Ltd is 100% owned by Presceint holdings. Prescient Holdings is a Ltd company. Prescient Investment Management is a subsidiary of Prescient Holdings.Who are the directors of the company?Herman Steyn, Guy Toms, Eldria Fraser, Sharon Bailey, Liang Du, Monei Pudumo-Roos, Farzana BayatDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:59%

History

When was the company established?Regulated by the Financial Services Board - Reg no.1998/23640/07List of mergers that have taken place since being established:N/A

B-BBEE Credentials


GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?eComplyDate of verification:Apr-13Expiry date of verification:Mar-14

Investment mandates




Eldria FraserChief Investment Officer & Head of EquitiesB Com(Hons), CFA22 years industry experience9 years with firm

Guy TomsChief Strategist & Head of Fixed InterestB.Bus.Sc (Hons)29 years industry experience17 years with firm

Liang DuHead of Multi-asset classesMBA, B Bus Sc, CFA, Certificate of Quantitative Finance9 years industry experience9 years with firm

Kevin DewarHead of Portfolio ManagementB Com33 years industry experience8 years with firm

195

SECTION 6

Prowess Investment Managers (Pty) Ltd

www.prowessinvestments.com

Company details

FAIS FSP registration number:38318Switchboard:+27 21 5650065Fax number:+27 086 614 7173General email: [email protected]: www.prowessinvestments.comAddress:Unit 2A, 6th Floor, Elkay House, 186 Loop Street, Cape Town, 8001Private Bag 15086, Vlaeberg, 8078Compliance officer name:Debbi Wahl representing Independent Compliance Services+27 21 975 6597


Prowess’ active approach to fixed income investment management is built upon relative value investing, with the goal of producing excess returns over the long term while minimising volatility. Prowess seeks to build diversified portfolios through a) active management of issues, sector, quality and yield curve positions; b) focus on yield enhancement through investments in assets that offer higher value on a relative basis; c) seeking credit quality through rigorous research and analysis, and management of credit risk through various credit trends and d) management of interest rate risk by constraining duration around a client’s target benchmark.

FAIS requirements

Who is your FAIS complaints officer?Kelebogile MolokoPlease provide the link to the complaints policy on your website:No website link but complaints policy available upon request

Ownership

What is the ownership structure of the company?100% of the company is held by the founder Kelebogile Moloko.Who are the directors of the company?Kelebogile Moloko,Janine De Bruyn, Renier Schonken, Pastor-Eze Light, Louisa XabelaDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Management own a 100% of the company. We are in the process of putting an employee shareholding scheme in place which will result in an inclusive ownership structure.

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3 as an excempt micro enterpriseBy whom have you been accredited?AQRateDate of accreditation:2014-06-24

GIPS

Are you GIPS compliant?Not yet. We are in the process of being GIPS compliant and verifiedAre you GIPS verified?Not yet. We are in the process of being GIPS compliant and verifiedBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?Not confirmed at time of publicationPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: N/ARetail: N/ALife: N/AOther: N/A



Kelebogile MolokoChief Investment Officer / Head of Fixed IncomeB Com (Economics & Finance Majors), B Com Honours: Financial Analysis & Portfolio Management, INSETA Leadership Advancement Diploma16 years industry experience6 years with firm

Mzimasi MabeceHead of Research / Portfolio ManagerBSc (Chemistry, Mathematics)10 years industry experience1 year with firm

196


Prudential Investment Managers (South Africa) (Pty) Ltd

www.prudential.co.za

Company details

FAIS FSP registration number:45199Switchboard:+27 21 670 5100Fax number:+27 21 683 7156General email: [email protected]: www.prudential.co.zaAddress:7th Floor, Protea Place, 40 Dreyer Street, Claremont, 7708PO Box 44813, Claremont, 7735Compliance officer name:Kerry Horsley(Head of Risk and Compliance)+27 21 670 2858


Prudential believe that market prices are broadly efficient over the long term, but can be very inefficient over shorter periods. Therefore, at any point in time, market prices may not reflect intrinsic values, either of individual assets or of entire markets. Short-term inefficiencies are essentially driven by repeating behavioral errors by market participants; particularly an alternation between ‘greed and fear’. Prices do not stay at unrealistic levels indefinitely; sooner or later they reflect intrinsic values dictated by fundamental economic factors. Repeating behavioral errors and the eventual convergence of market prices to reflect fundamental values provide sustainable opportunities for active, long-term investors such as Prudential to earn excess returns by investing in mis-priced assets.

FAIS requirements

Who is your FAIS complaints officer?Kerry HorsleyPlease provide the link to the complaints policy on your website:http://www.prudential.co.za/?pid=57

Ownership

What is the ownership structure of the company?49.99% owned by M&G Investments Ltd, 28.01% owned by staff and 22.0% owned by Thesele Group (a BEE consortium).Who are the directors of the company?Graham Mason, Bernard Fick, John Kinsley, Winston Africa, Marc Beckenstrater, Grant Speirs *, Thabo Leeuw **, Sibusiso Mthembo **, Subritha Moodley-Moore *** UK National** Non-Executive DirectorsDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes. 28.01%

History

When was the company established?Prudential Plc was Founded in 1848. The Cape Town Office opened in 1994.List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?AQRate Verification ServicesDate of accreditation:2014-06-25

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?KMPGDate of verification:2013-12-31Expiry date of verification:2015-12-31

Investment mandates




Marc BeckenstraterChief Investment OfficerB.Sc.(Eng.) MBA19 years industry experience14 years with firm

David KneeHead of Fixed IncomeB.Sc.(Eco), M.Sc (Eco), ASIP22 years industry experience16 years with firm

Chris WoodHead of EquitiesB.Sc.(Eng,), MBA, CFA14 years industry experience9 years with firm

197

SECTION 6

PSG Asset Management (Pty) Ltd

www.psg.co.za/Asset-Management

Company details

FAIS FSP registration number:29524Switchboard:+27 21 799 8000Fax number:+27 21 799 8182General email: [email protected]: www.psg.co.za/asset-managementAddress:1st Floor, PSG House, Alphen Park, Constantia Main Rd, Constantia, Cape TownPBX3, Constantia, 7848Compliance officer name:Elana [email protected]


PSG put risk first in all that they do. They look for investment opportunities that will provide them with a sufficient margin of safety and an asymmetrical payoff range. This pay-off range should translate into little downside and sufficient upside. They believe that they will invest in any opportunity (equity or fixed income) provided that there is a sufficient margin of safety to ensure that they are not likely to incur permanent capital loss on that investment.

In essence they compare ideas across a range of opportunities, both fixed income and equity, looking for the highest probability, real, risk-adjusted yields. This leads to an absolute rather than relative mindset.

Their equity philosophy is guided by their simple checklist of the 3 M’s: Moats, Management and Margin of safety. They look to invest in companies with strong business models and management teams and a sufficient margin of safety.

They prefer to invest in high quality compounding return type companies with strong management teams and a long runway of future opportunities to invest in. They will however also invest in mean reverting type companies on a more opportunistic basis, provided there is a sufficient margin of safety.

Their highest return ideas typically come from high quality companies that have a large though fixable problem or temporary headwind, which has resulted in a depressed share price. They then are buying a compounder with strong mean reverting valuation properties.

FAIS requirements

Who is your FAIS complaints officer?Enrique GoosenPlease provide the link to the complaints policy on your website:www.psg.co.za/support/legal/#Complaints-Resolution-Procedure

Ownership

What is the ownership structure of the company?100% owned by PSG Konsult LtdWho are the directors of the company?Anet Ahern, Greg Hopkins, Chris HendersonDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Not directly. Staff and management have shares in PSG Konsult Ltd.

History

When was the company established?1999-02-01List of mergers that have taken place since being established:PSG Tanazanite (PTY) Ltd and Alphen Asset Management were formally merged into PSG Asset Management in Feb 2011.

B-BBEE Credentials

Are you B-BBEE accredited?Via PSG Konsult LtdWhat is your B-BBEE status?Level 8By whom have you been accredited?AQRateDate of accreditation:2014-07-31

GIPS


198



Continued

Investment mandates




Greg Hopkins CIO, Head of ResearchB Com (UCT) CA(SA), CFA17 years industry experience4 years with PSG

Ian ScottHead of Fixed IncomeB Com (Econ), B Com (Hons), Investment Management16 years industry experience2 year with PSG

Jan Mouton Portfolio Manager B.Acc(Hons) (Stellenbosch), CA (SA), M.PhilFinance (Cambridge)12 years industry experience12 years with PSG

Shaun le RouxPortfolio ManagerCA (SA), CFA17 years industry experience15 years with PSG

Paul BosmanPortfolio ManagerB.Com(Hons), CFA10 years industry experience10 years with PSG

Heinrich DietzchPortfolio ManagerMSc (Statistics)31 years industry experience16 years with PSG

Henno VermaakPortfolio ManagerB.Com(Hons) (Stellenbosch), CFA, FFA7 years industry experience6 years with PSG

199

SECTION 6

Regarding Capital Management (Pty) Ltd

www.recm.co.za

Company details

FAIS FSP registration number:18834Switchboard:+27 21 657 3440Fax number:+27 21 674 1085General email: [email protected]: www.recm.co.zaAddress:8th Floor, Claremont Central, 8 Vineyard Road, Claremont, 7700PO Box 45040, Claremont, 7735Compliance officer name:Mr Guy Simpson+27 21 657 3441


RECM’s investment activity is grounded in the value philosophy, with an emphasis on consistently applying a sensible investment process. The investment process is a bottom-up process, based on proprietary research. In addition, the investment process is risk-conscious, where risk is defined as losing money, rather than volatility around a benchmark. The focus is on protecting capital, and growing it where possible and where sensible. Ultimately, such an investment process relies on avoiding, as far as possible, deep drawdowns of capital. It does this by only accepting investment risk where the investor is clearly being paid handsomely to do so – in other words, by only buying assets when the price is significantly below a reasonable estimation of fair value. Sources of return are thus two-fold: the movement from cheap to fair value, as well as the intrinsic growth that most good quality businesses exhibit over time. RECM believes that these are the only two sources of return that investors can access on a consistent basis.

FAIS requirements

Who is your FAIS complaints officer?Mr Guy SimpsonPlease provide the link to the complaints policy on your website:https://www.recm.co.za/Search?SearchTerm=complaints

Ownership

What is the ownership structure of the company?Regarding Capital Management is 75% owned by RECM Holdings (Pty) Ltd and 25% owned by RECM Foundation Investments (Pty) Ltd.Who are the directors of the company?Pieter Gerhardt Viljoen, Johannes Van Niekerk & Farahnaaz AkherwarayDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:72.15% of RECM Holdings (Pty) Ltd is held by staff and their investment team.

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 4By whom have you been accredited?MD Accountants & AuditorsDate of accreditation:2014-07-24

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?eComplyDate of verification:31/12/2013 - awaiting report for 31/12/2014 stillExpiry date of verification:N/A

Investment mandates


200




Daniel MalanChief Investment OfficerB Com (Mathematics), CFA19 years industry experience11 years with firm

Johannes VisserHead of ResearchB Com (Hons), Finance, CFA10 years industry experience6 years with firm

Sean NeethlingHead of Fixed IncomeB Com (Hons), M Com (Finance)8 years industry experience2 years with firm

Piet ViljoenAnalyst & Portfolio Manager & ChairmanB Com (Hons), CFA28 years industry experience11 years with firm

Jan Van NiekerkAnalyst & CEOB Com (Hons) Math, FIA, CFA17 years industry experience1.5 years with firm

Wilhelm HertzogAnalyst & Portfolio ManagerB Com (Law), B Acc (Hons), CA (SA), CFA9 years industry experience7 years with firm

Paul WhitburnAnalyst & Portfolio ManagerB Com (Hons), Finance (Cum Laude)11 years industry experience4 years with firm

Linda EedesSenior AnalystB Com (Hons), Finance (Cum Laude), CFA14 years industry experience4 years with firm

Regarding Capital Management (Pty) Ltd

Continued

201

SECTION 6

Rezco Asset Management

www.rezco.co.za

Company details

FAIS FSP registration number:702Switchboard:0861 739 468Fax number:086 532 8925General email: [email protected]: www.rezco.co.zaAddress:Unit 33, 4th Floor, Katherine & West Building, 114 West Street, Sandton, 2196175 Cape Road, Mill Park, Port Elizabeth, 6001Compliance officer name:Ronald Cape082 888 7466


It is fundamental to their approach that capital must be protected. REZCO objective is to preserve capital during times of market weakness and to outperform the overall index during periods that are positive for equities. Their strategy is to acquire interests in well managed companies for less than they are intrinsically worth, and to timeously position their clients in the correct asset classes. The REZCO investment philosophy combines the best aspects of value investing with superior sustainable earnings growth, primary trend analysis and measured market timing. They seek companies with attractive price earnings ratios relative to their long term growth prospects. Investments are intended for the long term but they recognise the changes in circumstances that can lead to altered risk levels, necessitating earlier adjustments to the portfolios.

FAIS requirements

Who is your FAIS complaints officer?Hendrik Goosen, Independent Compliance Services (Pty) Ltd.Please provide the link to the complaints policy on your website:http://rezco.co.za/policies/complaints-policy/

Ownership

What is the ownership structure of the company?REZCO Collective Investments Ltd is an FSB Registered Manco, 100% held by REZCO Corporate Investments PTY LTD, which is 100% held by staff with the following individuals the larger shareholders: Rob Spanjaard, Wally Gray, Peter du Toit, Jann Krynauw, Ronald Cape, Brian du PlessisWho are the directors of the company?WJH Gray, RB Spanjaard, PR Du Toit, RR Cape, B Nackan, L KaplanDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes, 100%

History


B-BBEE Credentials

Are you B-BBEE accredited?NoWhat is your B-BBEE status?Level 5By whom have you been accredited?N/ADate of accreditation:N/A

GIPS

Are you GIPS compliant?In progress, to be completed 31 May 2015Are you GIPS verified?NoBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R2.6 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R742 millionRetail: R1.8 billionLife: N/AOther: R116 million



Rob SpanjaardChief Investment OfficerB.Com, CTA21 years industry experience16 years with firm

Wally GrayHead of ResearchB.Sc (Eng), MBL Cum laude40 years industry experience33 years with firm

Jann KrynauwHead of Fixed IncomeActuary12 years industry experience3 years with firm

Rob SpanjaardHead of EquitiesB.Com, CTA21 years industry experience16 years with firm

202


Sanlam Investment Management (Pty) Ltd

www.sanlaminvestments.com

Company details

FAIS FSP registration number:579Switchboard:+27 21 950 2500Fax number:+27 21 950 2916General email: [email protected]: www.sanlaminvestments.comAddress:55 Willie van Schoor Avenue, Tygervalley, Bellville, 7530Private Bag X8, Tygervalley, 7536Compliance officer name:Nelize Jacobs+27 21 950 2690


SIM follows a pragmatic value investment philosophy. They believe that financial markets are inefficient and that they can add value relative to the general market indices as a result of this. Market inefficiency exists primarily because financial market participants are driven by human emotions, such as fear and greed. These emotions cause asset prices to move away from their fair values, which creates investment opportunities for patient investors. Also, as various market participants have different investment time frames and liquidity requirements, assets can become mispriced on a temporary basis.

As all information is publicly available, SIM cannot claim to add value by trying to gain an information edge relative to our competitors. The markets are global and they compete against the best teams in London, New York and elsewhere. In light of this, SIM do not believe that it is possible to forecast economic variables and company earnings better than anybody else, and it is a feature of our approach that they do not rely on such forecasts.

Rather, in terms of their pragmatic value approach, they believe that they can identify mispriced assets given current available information. The word “pragmatic” refers to the Charles Peirce School of investment philosophy, which advocates taking a practical approach to matters with reference to historical events. For valuing assets, SIM use a fair value framework based on long-term historical asset returns. Opportunities arise when current prices differ from these long-term fair values. The assumption that assets revert to their long term average real returns is fundamental to their approach. For example, they would assume that a company’s return on equity will return to its long run average over time.

SIM’s approach works particularly well for assets with future cash flow streams. Valuing currencies and commodities are more difficult as economic factors, such as supply and demand, come into play.

FAIS requirements

Who is your FAIS complaints officer?Nelize JacobsPlease provide the link to the complaints policy on your website:SIM does not have a complaints policy on our website.

Ownership

What is the ownership structure of the company?SIM is a wholly owned subsidiary of Sanlam LtdWho are the directors of the company?Yaganthrie Ramiah, Johannes Hendrik Petrus van der Merwe, Cora Hedwick Fernandez, Bhekithemba Thabo Phumula Karl Mangaliso Gamedze,Temba Irvine Mvusi, Nersan Ranjan NaidooDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:As SIM is a wholly owned subsidiary of Sanlam Ltd, staff and management have no direct ownership interest. However, the portfolio managers of SIM Unconstrained Capital Partners have equity stakes in the business. Claude van Cuyck and Ricco Friedrich hold a 35% equity stake in the business, while Sanlam is the majority shareholder with 65% equity.

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2By whom have you been accredited?AQRateDate of accreditation:Verification date 28 February 2014, Expiry Date 27 February 2015

203

SECTION 6

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PWCDate of verification:2014-08-01Expiry date of verification:2014-12-31

Investment mandates




Gerhard CruywagenChief Investment OfficerBSc (Pure & Applied Maths), BSc Hons (Applied Mathematics), DPhil (Mathematics), CFA19 years industry experience6 years with firm

Roy ChapmanHead of ResearchBSc (Engineering), MBA20 years industry experience10 years with firm

Chris HammanHead of Fixed IncomeMA (Economics), MSc (Finance)15 years industry experience15 years with firm

Patrice RassouHead of EquitiesBSc Hons (Economics), MSc (Economics), MBA, CA (UK)17 years industry experience8 years with firm

Philip LiebenbergHead: Absolute ReturnPhD (Chem.Eng.); Diploma (Investment Management); M Eng (Chem.Eng), CFA13 years industry experience8 years with firm

Haydn FranckeissHead: Asset Liability SolutionsCA (SA), B Com, B.Accountancy21 years industry experience15 years with firm

Andre RouxChief Investment Officer: SIM NamibiaB Com Honours (Economics)25 years industry experience16 years with firm

Fred WhiteHead: Asset Allocation and Macro ResearchBEng, Meng, MBA, CFA25 years industry experience16 years with firm

Bruce SimpsonHead of Sanlam Alternative SolutionsBA17 years industry experience17 years with firm

Sanlam Investment Management (Pty) Ltd

Continued

Helena ConradieCEO: SatrixMSc (Applied Mathematics), CFA, B.Sc (Hons)19 years industry experience14 years with firm

Claude van CuyckSIM Unconstrained Capital Partners: Portfolio ManagerB Com Hons, CFA22 years industry experience12 years with firm

Ricco FriedrichSIM Unconstrained Capital Partners: Portfolio ManagerB. Bus. Sc (Finance), CA (SA), CFA16 years industry experience15 years with firm

Arthur KampChief EconomistBEcon Hons, MSc19 years industry experience9 years with firm

204


Sanlam Multi Manager International (Pty) Ltd

www.sanlaminvestments.com

Company details

FAIS FSP registration number:845Switchboard:+27 21 950 2600Fax number:+27 21 950 2126General email: [email protected]: www.sanlaminvestments.comAddress:55 Willie van Schoor Avenue, Bellville, 7530Private Bag X8Tygervalley, 7736Compliance officer name:Nelize Jacobs+27 21 950 2690


Sanlam believes that the market is inefficient in the short term. For various reasons, the market may either under- or overweight the importance of certain information and cause asset prices to deviate from their fair value in the short term. This creates the potential for superior investment managers to take advantage of this deviation between fair value and market price, and to outperform the general market or benchmark substantially over time. Anyone can pick a manager based on past performance. But as is known, past performance is not an indication of future performance. SMMI’s skill lies in distinguishing between whether outperformance was due to luck, and is therefore unlikely to be repeated; or due to skill, and is therefore repeatable in future.

Sanlam also believes that not all managers perform equally well in all phases of the market cycle. At times the market favours a particular investment style, only for another style or bias to outperform at a different time in the cycle. Their world-class research enables them to distinguish between skillful managers and lucky managers, without being blinded by

short term performance noise in the market that happen to favour their particular investment style.

FAIS requirements

Who is your FAIS complaints officer?Nelize JacobsPlease provide the link to the complaints policy on your website:http://www.sanlam.co.za/wps/wcm/connect/sanlam_en/sanlam/contact+us/compliments+and+complaints

Ownership

What is the ownership structure of the company?As part of the company’s endeavour to ensure Black Economic Empowerment, Sanlam Ltd (“Sanlam”) and by extension SMMI entered into an arrangement with Ubuntu-Botho Investments (Pty) Ltd (“UB”) whereby UB currently holds a 9.38% stake in Sanlam. UB also has a right to acquire a further 4.69% depending on the growth of Sanlam’s business.Who are the directors of the company?Johan van Zyl, Carla Fouche, Nersan NaidooDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No

History

When was the company established?1992List of mergers that have taken place since being established:Merger between Sanlam Multi Manager International and Coris Capital

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2 ContributorBy whom have you been accredited?AQRate

Date of accreditation:Verification date 28 February 2014, Expiry Date 27 February 2015

GIPS


Investment mandates




Selwyn PillayChief Investment OfficerBSc Actuarial Science, Post Graduate Diploma (Actuarial Science)11 years industry experience11 years with firm

David GallowayStategistB BusSc (Hons), B Com Hons, M Com21 years industry experience10 years with firm

Paul WilsonHead of Manager ResearchBSc Hons (Actuarial Mathematics), CFA10 years industry experience3 years with firm

205

SECTION 6

Sesfikile Capital (Pty) Ltd

www.sesfikilecapital.com

Company details

FAIS FSP registration number:39946Switchboard:+27 11 684 2681Fax number:086 619 5265General email: [email protected]: www.sesfikilecapital.comAddress:1st Floor, 30 Melrose Boulevard, Melrose Arch, 2076Suite 334, Private Bag X1, Melrose Arch, 2076Compliance officer name:Enrique Goosen+27 21 975 6597


Their knowledge and experience in property markets allows them to take a holistic approach to property investment. They believe in long-term value investment; however their specialist focus allows them to take advantage of short-term growth opportunities.

Their investment decisions are centred on four main pillars – the 4 “d’s”:

■ Their passion for direct property – kicking the tyres,

■ Understanding the broader macroeconomic drivers of property investment,

■ Taking views on corporate action “deals” and spotting the “hidden” potential in the sector. They have also built strong relationships with various stakeholders in the listed property sector.

■ Focus on detail (all stock and sector modelling done in house) distinguishes them from their peers.

■ The team’s combined experience in local and international markets, they believe, is superior to competitors

■ Sesfikile does its own in-house stock modelling and research

■ The team does its own trading and sources lines of stock in house

■ The processes have all been generated by the executive directors and the small specialist boutique approach / structure makes them more nimble and flexible in execution of investment ideas.

FAIS requirements

Who is your FAIS complaints officer?N/APlease provide the link to the complaints policy on your website:Available on request

Ownership

What is the ownership structure of the company?The Ukhukhula Sibanye en Commandite Partnership is a 50% shareholder and the remaining is split between the 3 directors; Evan Jankelowitz 12.5%, Mohamed Kalla 6.25% and Kundayi Munzara 6.25%.Who are the directors of the company?Evan Jankelowitz, Mohamed Kalla and Kundayi Munzara.Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:Staff and management hold a 50% ownership interest in the company.

History

When was the company established?1 December 2010.List of mergers that have taken place since being established:None

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2 ContributorBy whom have you been accredited?EmpowerdexDate of accreditation:2014-01-15

GIPS

Are you GIPS compliant?None applicableAre you GIPS verified?None applicableBy whom have you been verified?N/ADate of verification:N/AExpiry date of verification:N/A

Investment mandates

What are your total assets under management?R10 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R9.4 billionRetail: R600 millionLife: N/AOther: N/A



Evan JankelowitzPortfolio ManagerB Com (Financial Management; Cum Laude) from the University of Johannesburg and Chartered Financial Analyst (“CFA”) designation10.5 years industry experience4 years with firm

Mohamed KallaPortfolio ManagerB Com (Investment Management; Cum Laude) from the University of Pretoria and Chartered Financial Analyst (“CFA”)10 years industry experience4 years with firm

Kundayi MunzaraPortfolio ManagerBSc. (Hons) in Property Studies9.5 years industry experience4 years with firm

206


STANLIB Asset Management Ltd

www.stanlib.com

Company details

FAIS FSP registration number:719Switchboard:+27 11 448 6000Fax number:+27 11 448 5555General email: [email protected]: www.stanlib.comAddress:17 Melrose Boulevard, Melrose Arch, Johannesburg, 2196PO Box 202, Melrose Arch, 2076Compliance officer name:Bernard Pieterse+27 11 448 6399


STANLIB believes that there is no ‘one size fits all’ investment solution for clients. Diverse clients need diverse investment outcomes. They therefore look at investments through many lenses and from many angles - this gives them an in-depth understanding of an ever changing investment landscape. Their investment model thus houses multiple focused units with unique philosophies, which cater for diverse client needs.

The STANLIB investment team consists of Franchises made up of specialist teams of investment professionals. They manage clients’ assets in their area of expertise, namely: fixed interest, property, equities, multi-asset allocation, multi-management and alternatives. These specialist investment teams deal with market changes with agility and speed, as they are supported by dedicated research, trade, implementation, risk management and compliance teams. Their Multi-Specialist Franchise Model truly reflects the complex investment world they operate in and echoes their desire to deliver tailored solutions for diverse clients; the result of which is a broad

investment offering designed to deliver their investment promise to clients.

They strongly believe it is possible to add value both through superior research and a superior investment process. For this reason, STANLIB currently employs 75 investment professionals.

FAIS requirements

Who is your FAIS complaints officer?Barbara EganPlease provide the link to the complaints policy on your website:http://www.stanlib.com/Contactus/Pages/FurtherQueries.aspx

Ownership

What is the ownership structure of the company?STANLIB Asset Management (STANLIB) is 100% owned by Liberty Life, which in turn is 54% owned by the Standard Bank Group.Who are the directors of the company?T Dloti, S Gobalsamy, S Braudo, AP Cunningham, MW Hlahla, JB Hemphill, JH Sutcliffe, CG Troskie, BS Tshabalala Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:Not in the form of share ownership as STANLIB is wholly owned by Liberty. Instead, STANLIB offers incentives in the form of deferred investment units. This deferred scheme is applied to all investment professionals and senior management, and is akin to ownership as investment proffessionals have a direct interest in the success of their Franchise(s), funds, clients and the overall Firm.

History

When was the company established?STANLIB was formed in May 2002 following the merger of the Liberty and Standard Bank asset management companies. Liberty Asset Management was formed in 1969 and SCMB Asset Management in 1974.List of mergers that have taken place since being established:In a move to expand the Firm’s capability across the full spectrum of credit financial instruments and infrastructure assets, STANLIB acquired Mezzanine Partners from Brait, Old Mutual Investment Group and the executive investment team in 2011.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?AAA - Level 2 contributorBy whom have you been accredited?EMPOWERDEXDate of accreditation:2014-06-24

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?PriceWaterhouseCoopersDate of verification:We are in the process of finalising our verification for the period 1 January 2013 to 31 December 2013.Expiry date of verification:Verification for the period 1 January 2014 to 31 December 2014 will take place next year.

207

SECTION 6

Investment mandates

What are your total assets under management?R383.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R122 billionRetail: R135.5 billionLife: R125.8 billionOther: N/A



Herman Van VelzeHead of Investments & Co-Head of the Multi-Asset FranchiseBEng, MBL22 years industry experience18 years with firm

Henry MunzaraHead of ResearchBA (Hons) Economics18 years industry experience8 years with firm

Henk ViljoenHead of Fixed IncomeM.Com (Econ) (cum laude)30 years industry experience24 years with firm

Robin EagerCo-Head of Multi-Asset, Core Equity, and Value EquityB.Sc (Engineering), Accounts Conversion (UCT)18 years industry experience9 years with firm

Andrew VintcentHead of Unconstrained Equities FranchiseB.Bus.Sc, CA(SA), CFA16 years industry experience5 years with firm

Ansie van RensburgHead of Money MarketB Com(Hons)(Economics)33 years industry experience23 years with firm

Victor MphaphuliHead of Bonds & Income FundB Com(Hons)(Econometrics)18 years industry experience14 years with firm

Robin MulderHead: ILB & Asset LiabilityB Com(Hons), CFA17 years industry experience6 years with firm

Phillip MyburghHead of CreditBA LLB, MPA (Harvard), HDipTax (cum laude)25 years industry experience9 years with firm

Warren BuhaiMulti-Asset Senior Portfolio ManagerB.Compt.(Hons), CA (SA), CFA15 years industry experience8 years with firm

Eben MareCo-Head of Absolute Return FranchisePh.D., M.Sc., B.Sc.(Hons)26 years industry experience6 years with firm

Marius OberholzerCo-Head of Absolute Return FranchiseB.Com, M.Sc, Global Finance15 years industry experience1 years with firm

Keillein NdlovuHead of Listed Property FranchiseB.Com(Hons), CAIB (SA) Treasury & Intl Banking10 years industry experience10 years with firm

John Mackie Head of Pan Africa FranchiseB.Com (Hons) (Econ)30 years industry experience30 years with firm

Patrick MamathubaChief Investment Officer - Beta QuantsB.Com (Hons), CFA23 years industry experience16 years with firm

Greg BabayaHead of Infrastructure InvestmentsB.Com, B.Com (Hons) Accounting, MBA18 years industry experience2 years with firm

Amelia BeattieChief Investment Officer - Direct PropertyB.Com(Financial Accounting and Transport Economics)16 years industry experience3 years with firm

Kevin LingsChief EconomistB.Com (Hons) Economics25 years industry experience13 years with firm

STANLIB Asset Management Ltd

Continued

208


Sygnia Asset Management Proprietary Ltd

www.sygnia.co.za

Company details

FAIS FSP registration number:873Switchboard:+27 21 446 4940Fax number:+27 21 446 4950General email: [email protected]: www.sygnia.co.zaAddress:7th Floor, The Foundry, Cardiff Street, Green Point, 8001PO Box 5191, Waterfront, 8002Compliance officer name:Niki Giles+27 21 446 4955


Providing customised multi-manager investment solutions to the institutional investment market, backed by leading edge technology solutions allowing unprecedented levels of investor oversight, reporting and risk management.

FAIS requirements

Who is your FAIS complaints officer?Niki GilesPlease provide the link to the complaints policy on your website:www.sygnia.co.za

Ownership

What is the ownership structure of the company?The company is wholly owned by its management and staff (20% broad-based BEE staff scheme).Who are the directors of the company?M. Budge, N. Giles, C. Leetjer, S. Mkhwanazi, S. Peile, M. WierzyckaDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:100%

History

When was the company established?March 2003List of mergers that have taken place since being established:N/A

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 2 contributorBy whom have you been accredited?Grant Thornton Verification Dervices (Pty) LtdDate of accreditation:2014-10-29

GIPS


Investment mandates

What are your total assets under management?R113 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R105 billionRetail: R8 billionLife: R21 billionOther: R84 billion



Magda WierzcykaChief Executive OfficerBBusSc(Actuarial), PhDip(Actuarial), FFA, FASSA, CFP FIFIM21 years industry experience11 years with firm

Simon PeileJoint Head: InvestmentsBBusSc(Actuarial), FFA, FASSA, CFP26 years industry experience11 years with firm

Willem van der MerweJoint Head: InvestmentsBSc(Actuarial), B Com(Honours in Financial Analysis), CFA17 years industry experience11 years with firm

209

SECTION 6

Taquanta Asset Managers (Pty) Ltd

www.taquanta.co.za

Company details

FAIS FSP registration number:618Switchboard:+27 21 681 5100Fax number:+27 21 681 5199General email: [email protected]: www.taquanta.co.zaAddress:7th Floor, Newlands Terraces, Boundary Road, Newlands, 7700PO Box 23540, Claremont, South Africa, 7735Compliance officer name:Timothy Howse+27 21 671 8162


Taquanta believe market prices are both inefficient and relatively efficient depending on what they are measured against. Market prices are relatively inefficient against true intrinsic value because the bulk of the information that determines true value is currently unavailable. This creates the potential for alpha. However, market prices are relatively efficient when measured against available information: i.e. given that nobody knows the future, the potential for market participants to reliably estimate which asset is relatively overvalued and which undervalued is Ltd. Further they believe investment returns are uncertain, even those that are ostensibly guaranteed. Therefore they term their overall investment philosophy, which guides the building of client portfolios and products, as Defined Certainty at the Right Price. They believe their rigorous investment processes can improve the probability of their clients meeting investment objectives. Defined Certainty speaks to the firm’s belief in clearly defining and communicating the characteristics of the product or portfolio in terms of risk, return, costs

and consistency. The product must be offered at “the Right Price”: such that clients maintain as much benefit as possible after all costs (management fees, trading costs & tax).

FAIS requirements

Who is your FAIS complaints officer?Timothy HowsePlease provide the link to the complaints policy on your website:www.taquanta.co.za

Ownership

What is the ownership structure of the company?100% PrivateWho are the directors of the company?Lusanda Dube, Justin Kretzschmar, Vincent Maphai, Joy Matsebula, Stephen Roberts, Stephen Rogers, Sandile ZunguDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:36.17%

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level Two ContributorBy whom have you been accredited?AQRate Verification ServicesDate of accreditation:2014-10-01

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?eComply Consultants (Pty) LtdDate of verification:2014-09-08Expiry date of verification:2015-09-08

Investment mandates

What are your total assets under management?R90.2 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R90.2 billionRetail: N/ALife: N/AOther: N/A



Ray WallaceChief Investment OfficerBCompt (Hons), CFA20 years industry experience19 years with firm

Steve RogersManaging DirectorFCIS31 years industry experience29 years with firm

Stephen RobertsBusiness Development ExecutiveBA (Hons)30 years industry experience29 years with firm

Richard GosnellSenior Portfolio ManagerMSc (Eng), CFA19 years industry experience19 years with firm

210


TriAlpha Investment Management (Pty) Ltd

www.trialpha.co.za

Company details

FAIS FSP registration number:28090Switchboard:+27 21 809 5400Fax number:+27 21 882 8717General email: [email protected]: http://www.trialpha.co.zaAddress:G05A, Ground Floor, La Gratitude Offices, 97 Dorp Street, Stellenbosch, 7600Postnet Suite 250, Private Bag X5061, Stellenbosch, 7599Compliance officer name:Ms. Sonja Pedall+27 21 4462142


TriAlpha is trusted by large, sophisticated institutional investors to build innovative products that meet their expectations of incremental alpha generation, with an intense focus on downside risk protection. The predominant focus is the management of enhanced Cash and Fixed Income long-only and hedge fund institutional investment mandates using a portable alpha approach. Their portable alpha approach combines different investment styles to achieve consistency throughout the Fixed Income market cycle. By Fixed Income they mean conventional bonds, inflation-linked bonds, convertible bonds, notes, fixed rate agreements, loans, deposits, money market instruments and at the margin preference shares and property.

Portable alpha, also known as “alpha transport”, refers to the ability of a portfolio manager to extract the alpha generated within any investment portfolio from the beta, and to then apply this outperformance to any other asset class the manager chooses, which ultimately eliminates the market risk of the manager’s portfolio.

So the sweet spot for the firm on the relative / absolute return continuum is the cross-section where the return objective leans towards actively exploiting investment opportunity through skills sets, and the risk objective is not to take more than market risk when replicating or beating a benchmark.

FAIS requirements

Who is your FAIS complaints officer?Mr. Theron van WykPlease provide the link to the complaints policy on your website:http://www.trialpha.com/complaints

Ownership

What is the ownership structure of the company?Stonehage Group = 52.0%Black Empowerment Partners = 21.5% Management & Staff = 26.5%Who are the directors of the company?W T van Wyk, E Oblowitz, A H Sternberg, RCJ ShangleeDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:Yes. 26.5%

History


B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 3By whom have you been accredited?Acker & Maloney Inc.Date of accreditation:19 September 2014

GIPS


Investment mandates

What are your total assets under management?R12,1 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R12,1 billionRetail: N/ALife: N/AOther: N/A


Size of Investment Team: 10 (SA & UK based)

Theron van WykChief Investment OfficerB Com (Hons), FFA17 years industry experience years8 years with firm

Emile VisserHead of Fixed IncomeBSc (Hons), CAIA, FRM, CFA8 years industry experience years8 years with firm

211

SECTION 6

Visio Capital Management (Pty) Ltd

www.visiocapital.co.za

Company details

FAIS FSP registration number:871Switchboard:+27 11 245 8900Fax number:+27 11 245 8900General email: [email protected]: www.visiocapital.co.zaAddress:The Place, 1 Sandton DriveGround Floor, South WingSandton, 2196Compliance officer name:JD Wessels+27 11 794 1189


Their investment process is firmly rooted in fundamental analysis. Visio’s approach is predominantly bottom up and sector or theme specific.

Every company is different and is influenced by its own particular factors, hence the need for in-depth research and analysis, regular management contact, site visits, broker and company presentations, etc. They spend a considerable amount of time ‘on the road’ towards achieving this end. Additional attention is devoted to companies that are either under-researched, not covered by sell side analysts or otherwise those businesses considered out of favor from time to time by the investment fraternity. There is limited use of both quantitative techniques and technical analysis in the formulation of their strategies

Their research is not limited to only listed companies. They continuously expand their knowledge and contacts base with many unlisted companies, who are either trading partners or competitors with their listed counterparts.

Their strength lies in their ability to integrate the information which they continuously gather in order to formulate medium to long term investment ideas for the funds. Visio maintain their own financial models on the majority of the listed companies in our investment universe. They update, enhance and tweak those models regularly as they represent the primary tools in their decision making process.

The investment universe spans across industries, market capitalizations and through the use of a number of different investment instruments. Those include not just listed shares, but also listed commodity ETF’s, listed corporate debt issues, index futures and listed options. Portfolio ‘churn’ is low. Significant shareholdings may be accumulated in individual companies or material exposures achieved in certain sectors from time to time. “

FAIS requirements

Who is your FAIS complaints officer?Ulrike EnglingPlease provide the link to the complaints policy on your website:The complaints policy is available on request and not published on our website

Ownership

What is the ownership structure of the company?Visio Capital Management (Pty) Ltd is 100% owned by Patrice Michael MoyalWho are the directors of the company?Patrice Moyal & Paul SundelsonDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:No. The company is owned 100% by Patrice Moyal

History

When was the company established?2003List of mergers that have taken place since being established:There has been no mergers since the company was established

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Visio Fund Management is Level 4 ratedBy whom have you been accredited?EmpowerdexDate of accreditation:24-03-2014

GIPS


Investment mandates

What are your total assets under management?R36 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R24.5 billionRetail: R2.9 billionLife: R6.1 billionOther: R2.5 billion

212




Patrice MoyalChief Investment OfficerChartered Accountant15 years industry experience10 years with firm

Kerris KosterHead of ResearchBSc Chemical Engineering13 years industry experience9 years with firm

Paul SundelsonHead of EquitiesB Com, CFA Charter Holder14 years industry experience11 years with firm

Kerris KosterPortfolio Manager / AnalystBSc Chemical Engineering13 years industry experience9 years with firm

Douglas WallacePortfolio Manager / AnalystCA (SA), CFA Charter Holder, ACA13 years industry experience8 years with firm

Ofri KahlonPortfolio Manager / AnalystMaster of Mathematics, Operational Research, Statistics & Economics8 years industry experience8 years with firm

Ronald ChabvongaPortfolio Manager / AnalystCA (Z), CA (SA)11 years industry experience6 years with firm

Naeem BadatPortfolio Manager / AnalystBSc, B Com, CAIA, CFA Charter Holder8 years industry experience2 years with firm

Phihlelo MatjekanePortfolio Manager / AnalystB Com, CFA Charter Holder11 years industry experience4 years with firm

Mark WadleyPortfolio Manager / AnalystMBBCH Medicine & Surgery, MBA7 years industry experience1 years with firm

Tassin MeyerPortfolio Manager / Analyst / IRBBusSci (Hons)11 years industry experience1 years with firm

Kathryn RobinsonPortfolio Manager / AnalystB Com, (Hons)6 years industry experience0,1 years with firm

Visio Capital Management (Pty) Ltd

Continued

213

SECTION 6

Vunani Fund Managers (Pty) Ltd

www.vunanifm.co.za

Company details

FAIS FSP registration number:608Switchboard:+27 21 670 4900Fax number:+27 21 683 5788General email: [email protected]: www.vunanifm.co.zaAddress:6th Floor, Letterstedt House, Newlands on Main, Newlands, 7700PO Box 44586, Claremont, 7735Compliance officer name:Vuyiseka Kulati+27 21 670 4942


■ They follow a value biased approach informed by the view that the market is, at times, inefficient over the short term.

■ They believe that the market reflects the intrinsic value of any company over the long term.

■ They believe that value opportunities exist – and identify these through a detailed analysis of each company in terms of its sustainable earnings whilst using inference to determine the level of growth currently reflected in the market price.

The approach followed by the investment team at Vunani Fund Managers is based on understanding the difference between value and price. Price is given by the market, value is determined. The first is easy, the second far more challenging.

Intrinsic value is a function of two inputs. In the first instance Vunani computes what the company’s sustainable earnings has been and compare this to the current market price. They then spend a great deal of time assessing what the growth trajectory of the company is likely to be going forward, and how this

translates into a sustainable delivery of shareholder value. Their primary focus is to buy companies that the market has priced at well below intrinsic value after taking all of the above factors into account.

FAIS requirements

Who is your FAIS complaints officer?Vuyiseka KulatiPlease provide the link to the complaints policy on your website:http://www.vunanifm.co.za/Uploads/Documents/News/0_FAIS%20DISCLOSURE%20STATEMENT.pdf?ver=1

Ownership

What is the ownership structure of the company?Vunani Capital = 70%; Vunani Fund Managers Staff = 30* (full share scheme allocation - partially allocated)Who are the directors of the company? Executive Directors: Butana Khoza; Azola Zuma.Non-Executive Directors: Nathi Chonco (Chairman); Manana NhlanhlaDo staff and management have an interest in ownership? Please provide the percentage held by staff and management:30% - full share scheme allocation - partially allocated

History

When was the company established?1999List of mergers that have taken place since being established:None. In June 2010 long-term empowerment partner, the Vunani Group, increased its stake from 11% to a majority 51% shareholding, whilst the controlling company at the time, Peregrine Holdings, retained a meaningful 49% interest. On 15 August 2011 Vunani Fund Managers became 100% owned by Vunani Capital.

B-BBEE Credentials

Are you B-BBEE accredited?YesWhat is your B-BBEE status?Level 1 ContributorBy whom have you been accredited?EmpowerLogicDate of accreditation:13/11/2013 (Please note that our BEE certificate expired on 12/1/2014 and we are currently busy with the accreditation process for 2015)

GIPS

Are you GIPS compliant?YesAre you GIPS verified?YesBy whom have you been verified?Deloitte & ToucheDate of verification:2013-01-01Expiry date of verification:2013-12-01

214


Investment mandates

What are your total assets under management?R12.3 billionPlease detail the mandates you currently manage and the size of each of these mandates: Institutional: R10.4 billionRetail: R1.3 billionLife: N/AOther: R0.6 billion



Tony Bell Chief Investment Officer Portfolio Manager: Equity and Multi-asset B Com (Hons), MBA 26 years industry experience 14 years with Vunani Fund Managers

Rowan Williams-Short Portfolio Manager: Interest Bearing MSc, FIFM, CFA 25 years industry experience 7 years with Vunani Fund Managers

Safs Narker Portfolio Manager: Equity CA (SA), CFA 9 years industry experience 2 year with Vunani Fund Managers

Johan de Kock Portfolio Manager: Equity B Com (Hons), MBA 21 years industry experience 1 years with Vunani Fund Managers

Fernando Durrell Portfolio Manager: Absolute Return PhD, CFA 12 years industry experience 12 years with Vunani Fund Managers

Craig MacArthur Portfolio Manager: Smart Beta BSc (Hons), CFA 20 years industry experience 13 years with Vunani Fund Managers


Continued

216


ABSA Asset Management

Snowy MasakaleTel: +27 11 480 5418Email:[email protected]

Strive for more. Prosper

27four Investment Managers (Pty) Ltd

Claire RentzkeHead of Manager ResearchTel: +27 11 442 2464Fax: +27 11 442 2465Email: [email protected]

WE LIVE INVESTMENTS.

Afena Capital Proprietary Ltd

Tebogo NalediTel: +27 21 657 6240Fax: +27 21 671 4658Email: [email protected]

Allan Gray Proprietary Ltd

Mahesh CooperTel: +27 21 415 2300 Email: [email protected] www.allangray.co.za

Argon Asset Management (Pty) Ltd

Luyanda Joxo, CFAHead of Institutional BusinessTel: +27 21 670 6576Fax: +27 86 674 1100Email: [email protected]

Beyond the benchmark

217

SECTION 6


Gerald Mafunda Tel: +27 21 657 8656 Fax: +27 21 657 8306 Email: [email protected]

Coronation Fund Managers

Kirshni TotaramTel: +27 (0) 21 680 2043Fax: +27 (0) 21 680 2143Email: [email protected]

Colourfield Liability Solutions

Costa EconomouTel: +27 86 100 7656Fax: +27 86 586 0722Email: [email protected]

Caveo Fund Solutions (Pty) Ltd

Byron GreenTel: +27 11 505 6308Email: [email protected]

Largest alternative multi-manager in Africa

Edge Capital (Pty) Ltd

Pieter DavisTel: +27 21 976 1012Email: [email protected]

218


Foord Asset Management

William FraserTel: +27 21 532 6935Fax: +27 21 532 6965Email: [email protected]

Seriously growing your assets

Fairtree Capital

Francis WheelerTel: +27 21 943 3760Fax: +27 21 914 3103Email: [email protected]


Thembela MandlaTel: +27 21 659 5450Fax: +27 21 659 5333Email: [email protected]


Natalie PhillipsTel: +27 21 416 1700Fax: +27 21 416 2700Email: [email protected]

Investment Solutions Ltd

Glenn SilvermanTel: +27 11 505 6000Fax: +27 11 263 1001Email: [email protected]

219

SECTION 6

Jm Busha Investment Group (Pty) Ltd

Joseph Makamba BushaTel: +27 11 325 2027Fax: +27 11 325 2047Email: [email protected]

Absolutely Positive Performance

Mergence Investment Managers (Pty) Ltd

Ronel BantjesTel: +27 21 433 2960Email: [email protected]

Pragmatic investing


Willem GaymansTel: +27 (0)11 505 1075Mobile: +27 (0)82 336 8786Email: [email protected] or [email protected]://www.momentum.co.za/assetmanagement

Oasis Asset Management Ltd

Adam EbrahimTel: +27 21 413 7860Fax: +27 21 413 7900Email: [email protected]

Commitment Unwavering

Nedgroup Investments

Vuyo NogantshiTel: +27 21 416 6767Email: vnogantshi@nedgroupinvestments.co.zawww.nedgroupinvestments.co.za

220


Prudential Portfolio Managers (South Africa) (Pty) Ltd

Bernard FickTel: +27 21 670 5090 Fax: +27 21 683 3018Email: [email protected]

ALL THINGS CONSIDERED

Prescient Investment Management (Pty) Ltd

Monei Pudumo-RoosTel: +27 21 700 3627Email: [email protected]

Pan-African Asset Management (Pty) Ltd

Miranda ScheepersTel: +27 11 463 0300Email: [email protected]

Real in Africa- Real in Returns

OLD MUTUAL INVESTMENT GROUP (SOUTH AFRICA) (PTY) LTD

Janina SlawskiTel: +27 11 217 1873Email: [email protected]


Trevor PascoeTel: +27 (0)21 524 4815Email: www.ommultimanagers.co.zawww.ommultimanagers.co.za

Rational thinking. Smarter investing

221

SECTION 6

Rezco Asset Management

Jann KrynauwLandline: 0861 739 468Mobile: +27 82 928 4511Address: Unit 33, 4th Floor, Katherine & West Building, 114 West Street, SandtonEmail: [email protected]

Regarding Capital Management (Pty) LtdDoug ThomsonTel: +27 21 657 3440Fax: +27 21 674 1085Email: [email protected]

Sanlam Investments

Cora FernandezTel: + 27 21 950 2500Fax: + 27 21 950 2555Email: [email protected]

STANLIB

Gareth Connellan CFP®

Senior Client Fund Manager – Institutional DistributionTel: +27 11 448 6294Email: [email protected]


Andrew TunstallTel: +27 21 799 8000Email: [email protected]

Consistent Conservative Contrarian

222



Azola ZumaTel: +27 11 263 9583Fax: +27 21 683 5788Email: [email protected]

“Delivering on promise”

Taquanta

Stephen RobertsTel: +27 21 681 5155Email: [email protected]

You use this information at your own riskAlexander Forbes does its best to give you information that is current, fair and accurate, but we cannot guarantee that it is. The Alexander Forbes Group is not responsible for any loss you or anyone else may suffer if we have made a mistake or left out important information in this document. Anyone who uses this information does so at their own risk.

The information in this document belongs to Alexander Forbes. You may not copy, distribute or modify any part of this document without the express written permission of Alexander Forbes.

Alexander Forbes Life is a licensed Financial Services provider (FSP 1178).

Written and designed by Alexander Forbes Communications 9863-2015-03. Photos: iStock.

ALEXANDER FORBES RESEARCH & PRODUCT DEVELOPMENT

Alexander Forbes, 115 West Street, Sandown

PO Box 787240, Sandton, 2146

Tel:+27 (0) 11 269 0000

Fax: +27 (0) 11 263 1486

e-mail: [email protected] or [email protected]

www.alexanderforbes.co.za