The Matrix ReviewJune 2019

This presentation is a private publication, please do not redistribute.Date Published: 15 July 2019

Business Update

• A diversified boutique asset manager• Long funds R6.2 billion

• Hedge funds R3.1 billion

• Strong growth of Long assets in 2018

• Hedge funds since 2006 (12+ years)• Stable assets in tough environment

• Delivering uncorrelated absolute returns

2Source: Matrix

• A Level 3 B-BBEE contributor

• Consistent performance across product range

AUM Growth since 2006 (R millions)

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

06 07 08 09 10 11 12 13 14 15 16 17 18 19

Hedge Long

What Funds do we offer?

3Source: Matrix

Type of Fund Fund Name Target Note

Low Equity Sanlam Select Defensive Balanced Fund CPI + 3% Number 2 in Low Equity Category since inceptionAchieved CPI + 3%, minimal drawdowns

Medium Equity Sanlam Select Absolute Fund CPI + 4% Took over mandate in October 2017Number 4 in Category since under Matrix management

High Equity Matrix Novare Balanced Fund CPI + 5% Launched Fund in February 2018Utilising asset allocation skills with higher equity content

Income Matrix Novare Stable Income Fund CPI + 3% Launched Fund in December 2018Ran a number of segregated accounts prior to this

Multi Asset CIS

Type of Fund Fund Name Target Note

Equity Matrix Novare Equity Fund SWIX + 1% Number 5 in General Equity Category Since InceptionAchieved SWIX + 1.92% after all fees

Bond Sanlam Select Bond Plus Fund ALBI Delivered ALBI since inceptionAnnualised return over 5 years of 8.89%

Money Market Matrix Novare Money Market Fund STEFI Comp Competitive feesDelivered Stefi Composite + 0.25%

Single Asset CIS

All performance throughout this report after all fees and costs

Main CIS Funds vs Peer Groups and Indices since inception

4Performance from 1 June 2014– 30 June 2019Source: Morningstar, Matrix, Reuters

Sanlam Select Defensive Balanced A1

Sanlam Select Bond Plus B2

Matrix Novare Equity C

ALBI

SWIX TR

ALSI TR

CPI

Cash

Average FI Manager

Average Low Equity Manager

Average Gen Eqty Manager

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

An

nu

alis

ed

Re

turn

Volatility

What Funds do we offer?

5

Type of Fund Fund Name Target Note

Fixed Income Matrix NCIS Fixed Income Retail Hedge Fund Cash + 8% Achieved Cash + 10% after all fees since inceptionLow Correlation to asset classes with moderate volatility

Multi Strategy Matrix NCIS Multi Strategy Retail Hedge Fund Cash + 8% Outperforming local Equities at Bond like volatilityDiversified mix of Hedge Fund strategies

Hedge Funds CIS

Performance from 1 October 2008 – 30 June 2019Source: Morningstar, Matrix, Reuters

Matrix NCIS Multi Strategy Retail Hedge Fund

Matrix NCIS Fixed Income Retail Hedge Fund

Cash

ALBI

ALSI TR

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%

An

nu

alis

ed R

etu

rns

Volatility

Traditional FundsFund Specific Performance

Traditional Funds rolling 24M PeriodsQuartile vs Peers*

7

* The chart shows the ranking of funds managed by Matrix Fund Managers compared to peer groups in the multi asset low equity, and general equity categories from ASISA.Performance from 1 June 2014 – 30 June 2019Source: Morningstar, Matrix

Consistent Top Quartile ranking for both funds

over 24M periods

0%

10%

20%

30%

40%

50%

60%

30

-Jun

-19

31

-May-1

9

30

-Ap

r-19

31

-Mar-1

9

28

-Feb

-19

31

-Jan-1

9

31

-Dec-1

8

30

-No

v-18

31

-Oct-1

8

30

-Sep

-18

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-Au

g-18

31

-Jul-1

8

30

-Jun

-18

31

-May-1

8

30

-Ap

r-18

31

-Mar-1

8

28

-Feb

-18

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-Jan-1

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-Dec-1

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30

-No

v-17

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-Oct-1

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-Sep

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-Au

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-Jul-1

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-Jun

-17

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-May-1

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-Ap

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-Mar-1

7

28

-Feb

-17

31

-Jan-1

7

31

-Dec-1

6

30

-No

v-16

31

-Oct-1

6

Sanlam Select Defensive Balanced A1 Matrix Novare Equity C 1ST Quartile 2ND Quartile

Multi Asset CIS Fund vs Peers Since InceptionASISA MA Low Equity Category

8Performance from 1 June 2014 – 30 June 2019Source: Morningstar, Matrix

8.16%

6.09%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

NFB Ci Stable A

Sanlam Select Defensive Balanced A1

Abax Absolute Prescient A

Sygnia Skeleton Balanced 40 A

Sasfin BCI Stable A

Sanlam Multi Mgd Conservative FoF A2

Kagiso Stable A

Prime Balanced Income FoF B1

Hollard Prime Strategic Defensive FoF B

SIM Inflation Plus

Prime Classic Port Conservative FoF C

Allan Gray Stable A

Discovery Cautious Balanced

Optimum BCI Stable A

Prime Cabernet Stable FoF C

Allan Gray Optimal A

ABSA Inflation Beater A

Nedgroup Inv Core Guarded C

PSG Wealth Preserver FoF D

Investec Cautious Managed B

Platinum BCI Income Provider FoF

Plexus Wealth BCI Conservative A

Old Mutual Real Income A

MI-PLAN IP Inflation Plus 3 B5

Average

Ranked 2nd out of 91 funds

Multi Asset CIS Fund vs CPI Since Inception

9Performance from 1 June 2014 – 30 June 2019Source: Morningstar, Matrix

Achieving CPI+ 3%Worst Drawdown -2.7%

-5%

0%

5%

10%

15%

20%

25%

90

100

110

120

130

140

150

May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19

Drawdown (RHS) Sanlam Select Defensive Balanced A1 CPI CPI+3%

Multi Asset CIS Fund vs Peers Since InceptionASISA MA Medium Equity Category

10

Ranked 4th out of 102 funds

Performance from 1 November 2017 – 30 June 2019Source: Morningstar, Matrix

Only 20 Months of performance!!

5.37%

1.97%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%

Counterpoint SCI Moderate R

Wealth Associates BCI Moderate FoF A

Prescient Pos Rtn QuantPlus C

Sanlam Select Absolute A1

Kagiso Protector A

Novare Multikor Moderate FoF A

Coreshares OUTStable Index O

Prime Chardonnay Moderate FoF C

Fairtree Flex Balanced Prescient A1

Sasfin BCI Balanced A

Sygnia Skeleton Balanced 60 A

Ci Moderate Strategic A

FNB Moderate FoF B1

ABSA Wealth Preserver Plus A

Prime Optimal Balanced FoF B1

MI-PLAN IP Inflation Plus 7 B5

Momentum Target 4 Fund of Funds A

ABSA Multi Managed Passive Accum B

Mergence CPI + 4% Prime A1

Momentum Target 5 Fund of Funds A

SIM Mgd Moderate FoF A2

MI-PLAN IP Inflation Plus 5 B5

Optimum BCI Balanced A

Old Mutual Moderate Balanced A

Average

Multi Asset CIS Fund vs Peers Since InceptionASISA MA High Equity Category

11Performance from 1 March 2018 – 30 June 2019Source: Morningstar, Matrix

Ranked 66th out of 220 funds

Only 16 Months of performance!!

4.09%

3.29%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%

Long Beach Managed Prescient A1

H4 Diversified B1

Financial Fitness Balanced IP FoF A

Warwick BCI Balanced B

Counterpoint SCI Balanced Plus A1

Element Islamic Balanced SCI A

Kagiso Balanced A

Sentio SCI HIKMA Shariah Balanced A2

Denker SCI Balanced A

Sasfin BCI Prudential A1

Investec Opportunity B

Nedgroup Inv Balanced A

Fairtree Balanced Prescient A1

Sanlam Private Wealth Balanced

AF Investments Aggessive Passive A1

Element Balanced SCI A

NFB Ci Managed A

Rezco Managed Plus A

Kanaan BCI Balanced FoF

Coreshares OUTModerate Index O

Gryphon Prudential FoF B

ABAX Balanced Prescient A1

SIM Mgd Moderate Aggr FoF A2

Matrix Novare Balanced A2

Average

Matrix Novare Equity Fund vs Peers Since Inception*ASISA General Equity Category

12

*This fund was run as a segregated mandate from 1 June 2014 to 30 November 2015. The Matrix Novare Equity C Fund was launched on 1 December 2015 with a similar mandate to the segregated account. The source of return data for the initial 18 month period is therefore Matrix Fund Managers.

Performance from 1 June 2014 – 30 June 2019Source: Morningstar, Matrix

7.79%

5.87%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Fairtree Equity Prescient A1

Momentum Emerg Mgr Growth F1

Satrix Momentum Index A1

Anchor BCI Equity A

Matrix Novare Equity C

Momentum Macro Growth B1

Aylett Equity Prescient A1

Investec Equity A

Sygnia Divi Index A

Sanlam Value Institutional B1

Satrix Dividend Plus Index A1

ABSA Prime Equity A

36ONE BCI Equity A

Sygnia Active Equity A

Gryphon All Share Tracker

Momentum Ultra Long-Term Value B4

Laurium Equity Prescient A1

FTSE/JSE All Share SWIX TR

Prime General Equity B

Truffle SCI General Equity A

Melville Douglas STANLIB High Alpha A

SIM Top Choice Equity A1

Marriott Dividend Growth R

ClucasGray Equity Prescient A1

H4 Focused Wealth A1

Ranked 5th out of 123 funds

Bond CIS Fund vs Peers Since InceptionASISA IB Variable Term Category

13Performance from 1 June 2014 – 30 June 2019Source: Morningstar, Matrix

8.89%

8.65%

0% 2% 4% 6% 8% 10% 12%

Investec Corporate Bond Z

Allan Gray Bond A

ABSA Bond A

Coronation Bond R

Momentum Managed Bond B1

Momentum Active Bond B1

Sanlam Select Bond Plus B2

Beassa ALBI TR

STANLIB Bond R

Nedgroup Inv Core Bond A

Oasis Bond D

Community Growth Gilt

AF Investments Pure Fixed Interest A

Investec Gilt A

ABSA Multi-Managed Bond A

Ashburton Multi Manager Bond B1

Citadel SA Bond H4 B1

SIM Bond Plus R

Momentum Bond B7

Satrix Bond Index A1

Old Mutual Bond R

Average

Prudential High Yield Bond A

SMM Yield Plus B8

Sanlam Multi Mgd Bond B1

Ranked 7th out of 40 funds

Money Market Fund vs Peers Since InceptionASISA Money Market Category

14

Ranked 15th out of 45 funds

funds

Performance from 1 August 2016 – 30 June 2019Source: Morningstar, Matrix

7.67%

7.42%

7.00% 7.20% 7.40% 7.60% 7.80% 8.00% 8.20% 8.40%

Old Mutual Inst Money Mkt B2

Momentum Outcome Based Money Market B4

ACI Money Market A1

SIS Money Market

Prescient Money Market A

BCI Money Market A

Cadiz Money Market A

Allan Gray Money Market

Hollard Prime Money Market B

Coronation Money Market A

Citadel SA Money Market H4 B1

Ashburton Money Market B1

Granate SCI Money Market A

RECM Money Market A

Matrix Novare Money Market B1

Old Mutual Multi-Managers MoneyMarket A

Gryphon Money Market A

STANLIB Corporate Money Market B1

Old Mutual Money Market A

Nedgroup Inv Money Market R

Glacier Money Market A

Average

Momentum Money Market A

Prudential Money Market A

STeFI Composite

Hedge FundsFund Specific Performance

Matrix NCIS Fixed Income Retail Hedge Fund

Net Investment Performance

Periods Greater than 1 year are annualised Growth of R100 invested since inception (1 Oct 2008)

16The Fund converted to a regulated CIS Hedge Fund on 1 September 2016.Performance prior to that date is from an unregulated environment.

Jun- 19Matrix Fixed

Income Hedge Fund

Cash Bonds SA Equity

YTD 7.01% 3.2% 7.7% 12.2%

1 Year 15.7% 6.6% 11.5% 4.4%

3 Years 10.9% 6.8% 9.9% 6.9%

5 Years 9.0% 6.5% 8.6% 5.8%

Since Inception 15.8% 6.3% 9.0% 11.9%

Correlation 1.00 0.26 0.59 0.01

Volatility 11.2% 0.4% 7.2% 13.6%

Outperforming Equities with lower volatility and no correlation

Performance from 1 October 2008 – 30 June 2019Source: Matrix, Reuters

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Sep-08 Mar-10 Sep-11 Mar-13 Sep-14 Mar-16 Sep-17 Mar-19

Matrix NCIS Fixed Income Retail Hedge Fund Cash ALBI ALSI TR

Matrix NCIS Multi Strategy Retail Hedge Fund

Net Investment Performance

Periods Greater than 1 year are annualised Growth of R100 invested since inception (1 Oct 2006)

17The Fund converted to a regulated CIS Hedge Fund on 1 September 2016.Performance prior to that date is from an unregulated environment.

Jun-19Matrix Multi

Strategy Hedge Fund

Cash Bonds SA Equity

YTD 7.2% 3.2% 7.7% 12.2%

1 Year 10.7% 6.6% 11.5% 4.4%

3 Years 6.6% 6.8% 9.9% 6.9%

5 Years 8.2% 6.5% 8.6% 5.8%

Since Inception 11.8% 6.8% 8.7% 11.0%

Correlation 1.00 0.14 0.30 -0.01

Volatility 8.6% 0.5% 7.4% 14.6%

Equity like return with Bond volatility and low correlation to asset classes

Performance from 1 October 2006 – 30 June 2019Source: Matrix, Reuters

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Sep-06 Mar-08 Sep-09 Mar-11 Sep-12 Mar-14 Sep-15 Mar-17 Sep-18

Matrix NCIS Multi Strategy Retail Hedge Fund Cash ALBI ALSI TR

Regulatory Requirements

18Matrix Fund Managers. Authorised Financial Services Provider.

Mandatory DisclosuresCollective Investment Schemes (unit trusts) are generally medium to long-terminvestments. Past performance is not necessarily a guide to future performance.The manager does not provide any guarantee in respect to the capital or thereturn of the portfolio. The performance figures given show the yield calculatedon a Net Asset Value (“NAV”) basis. The NAV is the total value of all the assets inthe portfolio including any income accruals and less any permissible deductions(brokerage, STT, VAT, auditor’s fees, bank charges, administration fees, trusteeand custodian fees, the annual management fee and other transaction fees) fromthe portfolio divided by the number of participatory interests (units) in issue.Individual investor performance may differ as a result of initial fees, time ofentry/actual investment date, date of reinvestment, and dividends withholdingtax.

Collective investments are traded at ruling prices and can engage in scrip lendingand borrowing. Forward pricing is used. Excessive withdrawals from the portfoliomay place the portfolio under liquidity pressures and a process of ring-fencing ofwithdrawal instructions and managed pay-outs over time may be followed. TheManager retains full legal responsibility for any portfolio hosted on its CISplatform. The value of an investment is dependent on numerous factors whichmay include, but not limited to, share price fluctuations, interest and exchangerates and other economic factors. Where foreign securities are included in aportfolio there may be potential constraints on liquidity and the repatriation offunds, macroeconomic risk, political risk, currency risk, tax risk, settlement risksand potential limitations on the availability of market information. As a result thevalue per unit may go up or down, however, our robust investment processtakes these factors into account.

Additional information, including but not limited to; how we treat our investors(TCF), key investor information documents, minimum disclosure documents(MDD), conflict of interest management policy, as well as other informationrelating to the portfolios, including the basis on which the manager undertakes torepurchase participatory interests offered to it, and the basis on which selling andrepurchase prices will be calculated, as well as a detailed description of how

performance fees are calculated and applied, is available on request from the

Manager and on the Manager’s website.

Website: matrixfundmanagers.co.za

matrixfundmanagers/funds

Disclaimer

This presentation is a private publication intended for private circulation and may

not be distributed to any persons other than the intended recipients. It is for

information purposes only and should not be seen as a legal offer document. It is

the responsibility of any person in possession of this document to inform

themselves of, and observe, any applicable laws and regulations of the relevant

jurisdiction.

Matrix Fund Managers is approved by the Financial Sector Conduct Authority

(previously; the South African Financial Services Board) as a hedge fund

investment manager (Financial Advisory and Intermediary Services Act Category I,

II & IIA licence, FSP Registration No. 44663).

During 2016 the Matrix hedge funds converted from being unregulated

investment funds to regulated Collective Investment Schemes in Hedge Funds in

terms of the Collective Investment Schemes Control Act and Board Notice 52 of

2015. Matrix Fund Managers has entered into a co-naming agreement with

Novare CIS (RF), a regulated Collective Investment Scheme Management

Company whereby the Matrix hedge funds are administered by Novare CIS.

Performance numbers are historical, the value of all investments and the income

there from can go down as well as up, and as such the past is not necessarily a

guide to future performance. The performance and risk statistics contained

herein are net of fees. Historical performance numbers will include performance

from the periods when the relevant fund was an unregulated hedge fund. Further

detail about the relevant conversion dates can be requested from Matrix Fund

Managers.

Eben Karsten

T +27 (0)21 673 7890

C +27 (0)79 898 5576

eben@matrixfm.co.za

matrixfundmanagers.co.za

Thank you