Manager Watch Survey of Retirement Fund Investment Managers by Alexforbes

ANNUAL SURVEY

Can we benchmark the industry? Manager Watchâ&#x201E;¢ Survey of Retirement Fund Investment Managers December 2016

FINANCIAL SERVICES

We have a clear understanding of our clients because we are, in effect, clients ourselves. Peter Linley Boutique Head Old Mutual Equities

INVEST WHERE THE FUND MANAGERS INVEST At Old Mutual Investment Group, our fund managers invest their own money alongside yours. The Old Mutual Investors’ Fund - South Africa’s longest running unit trust - recently celebrated its 50th anniversary. The fund has beaten inflation by 8.2% per annum over the last 50 years.

Speak to an Old Mutual financial adviser or your broker about investing alongside our fund managers or call 0860 INVEST (468378).

www.oldmutualinvest.com/asinvested

*SA - Equity - General Category. Source: Morningstar as at 31 December 2016. Inception Date: October 1966. Old Mutual Investment Group (Pty) Limited (Reg No 1993/003023/07) is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers (www.fsb.co.za) to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Unit Trust Managers (RF) (Pty) Ltd (OMUT) is a registered manager in terms of the Collective Investment Schemes Control Act 45 of 2002. The fund fees and costs that we charge for managing your investment are accessible on the fund’s Minimum Disclosure Document (MDD) or table of fees and charges, both available on our public website, or from our contact centre. The Net Asset Value to Net Asset Value figures are used for the performance calculations. The performance quoted is for a lump sum investment and in respect of the Old Mutual Investors’ Fund. The performance includes income distributions prior to the deduction of taxes and distributions are reinvested on the ex-dividend date. Actual performance may differ as a result of actual initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. Past performance is not a guide to future performance. Annualised returns are the weighted average compound growth rate over the performance period measured. The actual highest, average and lowest actual 12-month return figures since inception to 31 December 2016 are 96.0% (highest), 19.9% (average) and -45.7% (lowest). Morningstar and Old Mutual Investment Group calculated the performance of the fund as at 31 December 2016. Old Mutual is a member of the Association for Savings & Investment South Africa (ASISA). Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full amount invested. FCB10021848JB/E

MANAGER WATCH™ SURVEY

Content Section One............................................................................................................................................. 3

Introduction.......................................................................................................................................... 4 History of Alexander Forbes Performance Surveys................................................................................. 5 Survey Changes 2016........................................................................................................................... 5 Alexander Forbes Assets under Management Review............................................................................ 6 Market Indices and Statistics as at 31 December 2016.......................................................................... 9 Benchmarking your Investment Strategy.............................................................................................. 11

Section Two........................................................................................................................................... 23

Survey Notes....................................................................................................................................... 24 SA Balanced Manager WatchTM Survey – Best Investment View............................................................ 28 Global Balanced Manager WatchTM Survey – Dynamic......................................................................... 31 Global Balanced Manager WatchTM Survey – Best Investment View...................................................... 34 Global Balanced Manager WatchTM Survey – Conservative.................................................................... 38 SA Balanced Manager WatchTM Survey – Best Investment View Risk.................................................... 41 Global Balanced Manager WatchTM Survey – Dynamic Risk.................................................................. 42 Global Balanced Manager WatchTM Survey – Best Investment View Risk............................................... 43 Global Balanced Manager WatchTM Survey – Conservative Risk............................................................ 44 SA and Global Balanced Manager WatchTM Survey – Volatility vs Return............................................... 45 Global Balanced Manager WatchTM Survey – Conservative and Dynamic – Volatility vs Return............... 46 Global and SA Balanced Manager WatchTM Survey – Asset Allocation................................................... 47 Composite Dispersion of SA Balanced Manager WatchTM Managers..................................................... 48 Composite Dispersion of Global Balanced Manager WatchTM Managers................................................ 49 Introducing phi: What trustees need to understand about “the hidden variable in investment performance”................................................................................ 50

Section Three........................................................................................................................................ 65

SA Equity Manager Watch™ Survey.................................................................................................... 66 SA Equity Manager WatchTM Survey Composite Dispersion................................................................... 79 SA Bond Manager Watch™ Survey..................................................................................................... 81 SA Bond Manager Watch™ Survey Composite Dispersion................................................................... 87 SA Money Market Manager WatchTM Survey......................................................................................... 89 SA Money Market Manager Watch™ Survey Composite Dispersion...................................................... 95 Absolute Return Manager Watch™ Survey.......................................................................................... 96 Absolute Return Manager Watch™ Survey Composite Dispersion...................................................... 102 Targeted Development Investments Manager Watch™ Survey........................................................... 104 Fund of Hedge Funds Manager Watch™ Survey............................................................................... 107 SA Property Manager Watch™ Survey............................................................................................... 109 Multi-Manager WatchTM (Specialist) Survey........................................................................................ 112 Multi-Manager WatchTM (Balanced) Survey........................................................................................ 115 SA Medical Aid Manager Watch™ Survey.......................................................................................... 120 BEE Manager Watch™ Survey – Performance Results....................................................................... 122 BEE Manager Watch™ Survey – Empowerment Details..................................................................... 123 LDI Manager WatchTM Survey............................................................................................................ 124

Section Four........................................................................................................................................ 133

Base Fees – Indicative Range............................................................................................................ 134 Base Fees plus Performance Fees – Indicative Ranges...................................................................... 135 Fee Analysis...................................................................................................................................... 136

Section Five........................................................................................................................................ 143 Investment Survey Glossary............................................................................................................... 144

Section Six.......................................................................................................................................... 151 Directory of South African Asset Managers........................................................................................ 152

Y&R1507354

Investing for a better tomorrow As long-term stewards of your capital, we are not only committed to providing you with a dignified retirement, but also to contributing to a sustainable world. Why put money away today, if it canâ&#x20AC;&#x2122;t be used in a tomorrow that is better than the today in which it was created? Visit investecassetmanagement.com, call 0860 500 900 or contact your financial advisor.

Unit Trusts

Retirement Funds

Offshore Investments

Investec Asset Management is an authorised ďŹ nancial services provider.

MANAGER WATCHâ&#x201E;¢ SURVEY

1 SECTION 1 Introduction History of Alexander Forbes Performance Survey Survey Changes 2016 Alexander Forbes Assets under Management Review Market Indices and Statistics as at 31 December 2016 Benchmarking your Investment Strategy

MANAGER WATCH™ SURVEY

Introduction Manager Watch™ Survey of Retirement Fund Investment Managers 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 structure of the survey This edition includes fifteen surveys with 54 managers and 331 funds, covering four balanced surveys, ten specialist surveys, and the multi-manager survey. The criteria for participation in any of the surveys remains unchanged from 2010 where a fund size of R200 million, as well as a 12-month track record, is prerequisite. The R200 million criteria is applicable to all funds in most survey categories except where it is specifically indicated that this criteria 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. The following surveys are included: ■ SA Manager Watch™ and 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 Funds Survey ■ SA Property Manager Watch™ Survey ■ Multi-Manager Watch™ Survey ■ Medical Aid Manager Watch™ Survey ■ BEE Manger Watch™ Survey ■ LDI Manager Watch™ Survey Each survey shows performance returns over different time periods as well as risk-adjusted performance over a 4

three-year period in figures and an easy to use graphical format. 2016 saw a number of exits as well as new entries to the existing surveys with many managers improving their data delivery standards to adhere to the Alexander Forbes data standards. The table on page 5 reflects funds that entered or exited the surveys over the past year, as well as any name changes. The primary surveys (namely balanced, equity, bond, money market and absolute return) include a detailed commentary around the pertinent issues experienced by funds within this survey over the various periods to December 2016. This serves to inform readers of the themes that the markets are being influenced by. We also 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 mandates within the industry as a means of providing trustees 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 three years to provide deeper insight into trends in various fee categories and inherent implications. The key note article for this year’s publication is entitled: Benchmarking your Investment Strategy. The intention of this article is to demonstrate the importance of spending sufficient time and effort in selecting appropriate benchmarks for your investment strategy and each of the underlying asset classes or strategies.

Section 2 provides an in depth look at when it comes to assessing investment potential, how do we shift our focus from an obsession with short term performance to whether we are meeting our specific investment goals? In this section we also provide an economic review of what happened in 2016 and how balanced managers navigated the prevailing economic conditions. A glossary of commonly used investment terms is included.

Conclusion Remember that the surveys only provide a platform for asset managers to display returns simply and credibly. 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! To access our Manager WatchTM Series of Surveys: https://www. alexanderforbes.co.za/ research/publications

SECTION 1

History of Alexander Forbes Performance Surveys Enhancements post-1998 • Risk profiling • SA-only and Global-only portfolios • Benchmark returns • Risk-adjusted measures

1994

Manager Watch Performance-Only Survey – a market first!

2001

■■ ■■

■■

2003

Absolute Return Survey

1998 ■■

Specialist Equity Survey

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)

Money Market Survey

Surveys Revamped

2013

Medical Aid Survey

2004

Hedge FOF Survey

2006

International Survey

2010

BEE Survey

2012

LDI Survey

2017

2015

Formalised Survey Goverance

2007

Specialist Bond Survey

2002

Property Survey

New Survey Techonology Roll-out

Survey Rules

2014

Equity Funds Analysis

2016

Survey Rules Updated, New LMW Definition

Survey changes 2016 Survey SA Best Investment View SA Large Global Dynamic Global Best Investment View Global Conservative Global Large Bond Survey

Equity Survey

Absolute Survey

Money Market Survey

Exits SIM Domestic Unique Investment Solutions Entrepreneur Investment Solutions Value Alpha Local SIM Domestic Unique OMIG MacroSolutions Edge28 RECM Global No changes Momentum AM Inflation Linked Bond Fund Citadel Asset Management Domestic Equity Composite ELECTUS Multi-Cap Portfolio Investment Solutions Entrepreneur Equity Momentum AM Core Equity Fund Cadiz Inflation Plus 3 Cadiz Inflation + 5% RECM Balanced Full Discretion Composite STANLIB AM Absolute STANLIB Domestic Absolute Return Prudential Global Inflation Plus 6% RECM Money Market Fund JM BUSHA CashPlus

BEE Survey Medical Aid Survey Property Survey Fund Of Hedge Funds Survey LDI Survey

OMIG Capital Builder Momentum AM Medical Provider Fund Alpha Saturn Fund Blue Ink Equity Aggressive Blue Ink Fixed Income Arbitrage SIM Composite 2

TDI Survey Investment Solutions Entrepreneur Multi Manager Survey

Entries

Stanlib Multi Manager Balanced Fund STANLIB Multi-Manager Defensive Fund No changes Aluwani Capital Partners – Inflation Linked Bond Composite Stanlib Multi-Manager Bond Aluwani Capital Partners – SA Bond Composite Absa Asset Management Core Equity First Avenue Focused Equity First Avenue General Equity Mazi Capital Equity SWIX Composite Old Mutual Equities Investors Portfolio SIM Top Choice Equity Fund Balondolozi Absolute Return Fund Stanlib Inflation Plus 3% Fund STANLIB Multi-Manager Real Return Fund

Aluwani - Money Market (Max 90) Aluwani - Money Market (Max 91-180) Aluwani - SA Bond Aluwani - Medical Aid Money Market Aluwani - Money Market (Max 90) Aluwani - Money Market (Max 91-180) Aluwani Capital Partners - Medical Aid Money Market Composite Coronation Medical Cash Stanlib MM Property

Ashburton Mergence SRI Fund Mergence ESG Equity Fund Mergence High Impact Debt Fund Stanlib Multi-Manager Defensive Balanced Fund Stanlib Multi Manager Balanced Fund Stanlib Multi-Manager Bond STANLIB MM Enhanced Yield Stanlib Multi-Manager Real Return Fund

MANAGER WATCH™ SURVEY

Alexander Forbes Assets under Management Review Top 20 Asset Managers Ranked by Total Assets Under Management (AUM) as at 30 June 2016 2015 Rank

2016 Rank

Asset Manager

AUM (Rm) including International Mandates

Old Mutual Investment Group

631 105

AUM (Rm)*

BEE Status

513 242

Level 2

Coronation Fund Managers

536 806

489 444

Level 3

Investec Asset Management

469 695

322 513

Level 2

Allan Gray Limited

461 660

326 043

Level 3

Sanlam Investment Management

439 868

383 150

Level 2

STANLIB Asset Management

357 627

340 411

Level 2

Investment Solutions

279 562

212 416

Level 3

Prudential Portfolio Managers

195 315

167 228

Level 2

Futuregrowth Asset Management

172 390

Level 2

Sanlam Multi-Manager International

127 592

140 177

Level 3

Foord Asset Management

162 679

120 634

N/A

Momentum Asset Managers

141 505

64 461

Level 2

N/A

Sygnia Asset Management

130 177

102 359

Level 2

Absa Asset Management

115 016

110 574

Level 3

Taquanta Asset Managers

105 590

104 175

Level 2

Old Mutual Multi Managers

101 734

88 422

Level 2

Momentum Manager of Managers

84 596

Level 2

Ashburton Investments

76 679

Level 2

Prescient Investment Management

76 056

73 798

Level 3

Abax Investments

63 691

60 817

Level 3

# AuM as reported in the Alexander Forbes AuM survey June 2016 - these figures represent AuM that exclude international mandates; *Not Available at time of printing. Please note that due to standardization methodology, numbers may be overstated.

Review of AUM for June 2016 Out of the 44 participating asset managers, Old Mutual Investment Group (OMIG) is now the biggest South African asset manager with International investment mandates. OMIG’s growth in AuM of 9.4% was largely attributed to new mandates acquired over the year. Coronation Fund Managers followed, albeit that the asset management house saw a reduction in AuM due to market movement and a subsequent loss in mandates. Investec Asset Management remained in third position while Allan Gray Ltd moved up to fourth position on

the back of strong performance despite a 1% decrease in their AuM. Sanlam Investment Management moved into 5th place. Sygnia Asset Management and Aluwani Capital Partners were two new additions to the survey. The Total AuM including Multi Managers decreased by 3.7% over the 12 months. The 10 largest investment management companies in South Africa accounted for 69.7% of total AUM including Multi

Managers, reflecting a 4.3% decline since June 2015. The next grouping of 10 asset managers (ranked by size) saw an increase in AuM of 1.8% over the same period, while the balance of the asset managers within the survey universe grew by 2.5%.

SECTION 1

Total Value of Assets Managed (31 December 2004 to 30 June 2016) Growth in Assets (year on year) 6 000 000

5 000 000

4 000 000

3 000 000

2 000 000

1 000 000

Dec-2006

Dec-2007

Dec-2008

Dec-2009

Dec-2010

Dec-2011

Jun-2012

Jun-2013

Jun-2014

Jun-2015

Jun-2016

Total AUM (R m)

2 218 265

2 627 889

2 465 853

2 718 458

3 082 163

3 187 853

3 300 885

3 926 696

4 940 445

5 204 943

5 014 927

Total AUM (R m) excl Multi-Manager

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

4 409 561

4 291 267

Total AUM (R m)

Total AUM (R m) excl Multi-Manager

Asset Distribution to Manager Size 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun-2012

Jun-2013 Top 10 Managers

Jun-2014 Next 10 Managers

Jun-2015

Jun-2016

Remaining Managers

MANAGER WATCHâ&#x201E;˘ SURVEY

Asset Distribution to Manager BEE ratings The asset distribution shifted in 2016 towards Level 2 asset managers with a 9.5% drop in the Level 3 contributors. While the comparative change from 2014 to 2015 was distorted by a significant change in the calculation methodology for the BBBEE scorecard, the change from 2015 to 2016 was indicative of an increase in assets being managed by BBBEE (Broad Based Black Economic Empowerment) managers. A Level 2 asset manager that moved to Level 3 BBBEE status was Prescient Investment Management. Sanlam Investment Management, a level 3 contributor in 2015, moved to Level 2 in 2016 while First Avenue Investment Management moved from a Level 2 contributor to Level 1 in 2016.

Growth in Assets (year on year) 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

Level 1

Level 2

Level 3

Level 4

Level 5

Level 6

Level 7

Level 8

N/A

2015

1.56%

50.30%

43.77%

0.33%

0.10%

0.48%

0.00%

3.47%

2016

1.26%

58.59%

34.27%

0.19%

0.21%

1.71%

0.00%

0,00%

3,77%

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

Asset Distribution to Manager BEE ratings Almost 60% of the top 10 managers were rated Level 2 contributors with the remaining managers being Level 3 contributors. Aeon, Oasis, Pam, JM Busha, Perpetua and First Avenue are the only Level 1 contributors out of the 44 participating asset managers. There are 3 asset managers in the universe who remain unrated. 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

Level 1

Level 2

Level 3

Level 4

Level 5

Level 6

Level 7

Level 8

N/A

Top 10 Managers

0.00%

59.83%

40.17%

0,00%

0.00%

Next 10 Managers

0.00%

60.53%

24.09%

0.00%

15.83%

Remaining Managers

13.77%

44.57%

12.76%

2.11%

2.26%

18.75%

0.00%

5.79%

SECTION 1

Market Indices and Statistics as at 31 December 2016 1 Year (%)

3 Years (% p.a.)

5 Years (% p.a.)

7 Years (% p.a.)

10 Years (% p.a.)

Equity (Total Return Indices) FTSE/JSE All Share Index

2.63%

6.16%

12.97%

12.26%

10.51%

FTSE/JSE Capped All Share Index

3.94%

6.68%

13.33%

12.67%

11.01%

FTSE/JSE SWIX All Share Index

4.13%

7.59%

14.18%

12.90%

9.59%

FTSE/JSE Top 40 Index

-1.60%

4.92%

12.33%

11.54%

9.91%

FTSE/JSE Resource 20 Index

28.92%

-11.33%

-5.88%

-3.60%

-0.51%

FTSE/JSE Industrial 25 Index

-8.46%

8.15%

20.35%

19.76%

16.37%

FTSE/JSE Financial 15 Index

3.56%

10.19%

17.18%

15.27%

9.66%

FTSE/JSE Mid Cap Index

26.89%

11.96%

15.48%

15.85%

13.58%

FTSE/JSE Small Cap Index

20.90%

11.88%

17.93%

16.28%

12.83%

Cash (Total Return Indices) Alexander Forbes Money Market Index

7.42%

6.60%

6.14%

6.19%

7.45%

Short Term Fixed Interest Rate Index

7.37%

6.58%

6.09%

6.17%

7.32%

Bonds (Total Return Indices) All Bond Index

15.45%

6.90%

7.36%

8.62%

7.97%

1 - 3 Year Bond Index

10.08%

6.78%

6.60%

7.23%

7.82%

3 - 7 Year Bond Index

13.44%

7.30%

7.33%

8.50%

8.27%

7 - 12 Year Bond Index

15.40%

6.56%

7.41%

8.99%

8.15%

12+ Year Bond Index

17.46%

7.23%

7.78%

8.64%

7.14%

Barclays Capital ILB Index

6.27%

6.99%

8.06%

9.17%

9.45%

OTHI Index

16.73%

7.40%

8.21%

9.45%

8.33%

GOVI Index

14.93%

6.81%

7.20%

8.50%

7.90%

10.20%

14.65%

17.29%

17.73%

15.76%

Real Estate (Total Return Indices) FTSE/JSE SA Listed Property Index Global (In Rands) (Total Indices) MSCI World

-4.55%

14.09%

23.38%

18.83%

11.57%

Citi WGBI

-10.34%

8.38%

10.02%

10.29%

10.08%

Citi 3M US Treasury Bill

-11.51%

9.42%

11.22%

9.35%

7.62%

6.85%

Exchange rates Rand / $US

-11.75%

9.30%

11.12%

9.25%

Rand / Pound

-26.01%

-0.87%

6.13%

5.15%

2.05%

Rand / Euro

-14.31%

-0.02%

6.60%

4.55%

4.49%

Inflation Headline Inflation

6.61%

5.72%

5.62%

5.40%

6.07%

Headline CPI + 3%

9.61%

8.72%

8.63%

8.40%

9.27%

Headline CPI + 4%

10.61%

9.72%

9.63%

9.40%

9.27%

Headline CPI + 5%

11.61%

10.72%

10.63%

10.40%

11.26%

Headline CPI + 6%

12.61%

11.72%

11.62%

11.40%

12.27%

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

Exchange Rates for the past 10 years to December South Africa Rand To Us $

South Africa Rand To Uk £

2007/12/31

6.83

13.60

South Africa Rand To Euro € 9.99

2008/12/31

9.25

13.29

12.85

2009/12/31

7.36

11.89

10.57

2010/12/31

6.62

10.36

8.88

2011/12/30

8.07

12.55

10.48

2012/12/31

8.48

13.79

11.19

2013/12/31

10.47

17.35

14.43

2014/12/31

11.57

18.04

14.00

2015/12/31

15.50

22.84

16.83

2016/12/30

13.68

16.90

14.42

MANAGER WATCHâ&#x201E;¢ SURVEY

SECTION 1

Benchmarking

INVESTMENT

STRATEGY

Benchmarking your Investment Strategy Performance measurers seek benchmarks the way bees seek honey – Peter Bernstein

Performance, performance, performance! There seems to be an unnatural obsession about performance in the investment industry. Each year the top-performing funds draw not only accolades, but attract significant capital inflows. How can an award-winning fund for the year not be the right strategy going forward? If one reviews the outcomes of the Alexander Forbes Large Manager Watch™ and Equity surveys over the previous two years, the answer is not so simple. Many of the top quartile performers of 2015 have moved to the bottom quartile for 2016 while some of the poorest performers of 2015 are in the top quartile of this year’s surveys. (This is not an outlier phenomenon!) Whenever you forget that it is myopic to draw conclusions on the quality of your investment strategy purely based on historic performance – remember the health warning for funds – Past performance is no indicator of the future.

PERFORMANCE is an after-the-fact measurement and remains largely a measure of the efficacy of the implementation of your overall investment strategy. It represents how you were rewarded by the market based on the risks that you were exposed to. A good manager can have perceived irregular performance due to the cyclicality of investment styles and the changes in the risk factors, which are not at that point in time positively aligned to the underlying investment philosophy. One thing that you can be sure about performance is that it is never constant – the market giveth and the market taketh.

MANAGER WATCHâ&#x201E;˘ SURVEY

The critical problem lies in the inferences that you draw from performance and is usually based on some top-level peer group or index benchmark comparison. Investors would invariably conclude that sustained underperformance is reflective of a poor manager and becomes a predictor of future poor performance, or vice versa. This inadvertently gives significant power to the chosen benchmark! As such, the selection of the benchmark cannot be taken lightly. It must be reflective of the objectives that the strategy is seeking to achieve or else you are comparing apples with oranges. Does it make sense to compare your equity portfolio against a cash index? A multi-asset strategy to equity benchmarks? Does it make sense for a small cap equity strategy to have the broad market index as its benchmark? Does it even make sense to compare a targeted multimanager strategy to the Large Manager Watch Index? 12

You would expect your invested portfolio to perform broadly in line with your chosen benchmark. But your benchmark also articulates your risk appetite, and therefore, it will impact on other decisions such as your choice of underlying strategies, manager selection and in more advanced strategies the use of tactical hedging. This has a further implication â&#x20AC;&#x201C; a top level performance comparison provides an incomplete perspective of the full risk return dimension. In an ever evolving world of savings and investments, specifically given the current shift towards goals-based investing frameworks, it makes the understanding of the performance and its underlying attribution a core requirement for trustees, asset consultants, managers and strategy designers. The intention of this article is to demonstrate the importance of spending sufficient time and effort in selecting appropriate benchmarks for

your investment strategy and each of the underlying asset classes or strategies. The first part of this article is very practical and explains what constitutes a good benchmark as well as how benchmarks are constructed and measured. Part two of the article dissects the investment strategy development process and the impact that benchmarks can have on defining and assessing the strategy. You should at this point realise that multi-asset class strategies should never have an equity index, peer group or worse still, an inflation measure as its primary benchmark. Such relationships are highly disconnected from academic research and is at best anecdotal.

SECTION 1

PART 1:

BENCHMARKS 101 Investment benchmarks are in their simplest form the reference point to gauge sentiment or performance. Like all things in finance, the understanding and use of benchmarks evolved. Recently, the focus on benchmarks and risk management has shifted to such esoterica as smart beta, non-market cap related benchmarks, and benchmarks that capture goals-based solutions. Consider that now benchmarks need to help us address appropriate asset allocations, model expected liabilities, define asset class relationships, articulate risk tolerances, and of course, proxy past performance.

Your choice of benchmark plays four principal roles within your investment strategy: 1. It must capture the return profile of the strategy or asset class. The risk risk premiums that drives return for the benchmark must be similar to your strategy. This makes attribution of performance easier, allowing for a superior understanding of the underlying strategy and manager selection decisions. 2. It must capture the risk profile of the strategy or asset class. This is similar to the return profile but extends to other dimensions of risk such as risk of capital loss. The relevant risk characteristics of your benchmarks must be similar to your strategy and your risk tolerances. The sensitivities of the benchmarks must to a large degree have similar sensitivities as your objective. If the risk profile is significantly different, then fundamental elements of your strategy are not being captured in your benchmark framework. 3. It should largely reflect the strategic (long-term) investment opportunity set of the asset class securities that you intend to hold. An inflationary or peer group benchmark may not be appropriate as it does not provide a framework for defining the investable universe. In some instances the benchmark not only sets what can be invested in but also what cannot. 4. It must be transparent enough to make meaningful comparisons and attribution for performance and risk. If risk and return attribution has a larger component from non-benchmark sources, the investment strategy and benchmark framework need to be reviewed.

There are four popular types of benchmarks: MARKET OR CUSTOM INDICES Portfolios of securities weighted by market capitalisation, risk exposures or other acceptable weighting framework. These are investable portfolios and provide the basis for implementing a passive solution over an active one.

TARGET RETURN

Either a risk free

or inflation

type of benchmark. These benchmarks capture the return but not the risk expectations of the strategy or the universe. Therefore, this becomes a limiting option.

PEER GROUPS Usually a collection of competitors for a specific strategy or objective. However, the return of peer groups is not achievable because one cannot know the constituents in advance and all peer groups will suffer from survivorship biases.

RANDOM PORTFOLIOS Also known as PODs. Probability Opportunity Distribution is a hypothetical set of distributions drawn from a universe of investable securities ranging from being 100% invested in the best asset to 100% invested in the worst asset. The strategy and manager outcome should be within the top half of the distribution. Although favoured by analysts it is a difficult concept to understand. The value of PODs though is that this type of benchmark can be structured to reflect only the universe that the manager invests in and, as such, is probably one of the best ways to capture manager skill.

MANAGER WATCH™ SURVEY

You will see later that, although selecting a specific benchmark is an individual decision, it has a profound effect on how you would manage and implement your strategy. The Chartered Financial Analyst (CFA) institute and the investment industry have agreed that there are some minimum standards that a benchmark should meet. A benchmark must be: ■■ Unambiguous – the individual securities and their weights in a benchmark should be clearly identifiable. Each security is clearly understood with a defined exposure. ■■ Investable – it must be possible to replicate and hold the benchmark to earn its return. If the benchmark is not investable, it is not a viable investment alternative. ■■ Measurable – you must be able to timeously and readily calculate the benchmark’s return and other relevant metrics. ■■ Appropriate – the benchmark must be consistent with the manager’s investment style or area of expertise. ■■ Specified in advance – it must be constructed prior to the evaluation period so that the manager is not judged against benchmarks created after the fact. ■■ Accountable – managers must accept being held accountable to the benchmark. ■■ Reflective of the manager’s current investment opinions – the manager should be familiar with the securities that constitute the benchmark and their risk exposures. ■■ Meaningful – the investment objective it reflects must be a meaningful proxy for trustees or investors’ funding requirements.

This framework is supportive of the use of index-based benchmarking as the table below examines the four popular benchmark types against some of the minimum criteria.

Characteristic

Index

Target return

Random portfolios

Unambiguous

Investable

Measurable

Appropriate

Specified in advance

Accountable

It is not unpopular to have multiple benchmarks. Although this practice is acceptable and can be used to provide insight into your investment strategy, portfolio managers should be given only one benchmark to work with. Carl Bacon, a doyen in performance measurement, says that, “giving a portfolio manager multiple benchmarks simultaneously creates a potential conflict of interest. A classic example is assigning an index and a peer group as benchmarks and asking a portfolio manager to outperform both at the same time. This type of objective is muddled.”

Peer group

Indices are not static and evolve over time due to market activities such as mergers, secondary listings and IPOs; underlying processes such as index rebalancing; and most importantly index methodology changes. The following is a review of three of the most significant practical aspects within an index construction methodology that results in differences between index providers but more importantly within the risk-return profile:

1. Eligible securities The choice of securities that represents an asset class, market or strategy can vary. We will look at the definitions of security inclusion for the equity indices of the Johannesburg Securities Exchange (JSE) as defined by three major global index providers: FTSE Russell, Standard & Poor’s (S&P) and MSCI to understand the differences that can arise from the universe definition.

SECTION 1

FTSE RUSSELL Extract from FTSE/JSE Index rules

All classes of ordinary shares in issue, excluding inward listings affecting foreign portfolio investment allowances, are eligible for inclusion in the FTSE/JSE Africa Index Series, subject to conforming to all other rules of eligibility, free float and liquidity. For the purposes of the FTSE/JSE Africa Index Series, where a security is listed on the JSE and is traded on the JSE trading system, that security will be considered as South African for the purposes of nationality and therefore eligible for the FTSE/JSE Africa Index Series, subject to conforming to all other eligibility criteria. Convertible preference shares and loan stocks are excluded until converted. There are further considerations regarding trading volume and that the index will reflect 99% of the market of the JSEâ&#x20AC;&#x2122;s main board. The S&P methodology for SA equities is defined slightly differently:

S&P Extract from S&P South Africa Index rules

To be eligible for inclusion in the S&P South Africa Composite, a companyâ&#x20AC;&#x2122;s primary market listing must be included in the S&P Global Broad Market Index (BMI) or the S&P Frontier BMI. This includes both foreign domiciled (non-South African) and domestic domiciled (South African) companies as defined by S&P Dow Jones Indices. Exchange Listing. The security must trade on the Johannesburg Stock Exchange. Market Capitalization. New additions to the index must have a float-adjusted market capitalization equal to or greater than US$ 100 million. At the annual reconstitution, any constituent with a floatadjusted market capitalization that falls below US$ 75 million is removed. Trading Volume. At the annual reconstitution, stocks must have an annual dollar value traded of at least US$ 50 million over the previous 12 months for inclusion in the S&P South Africa Composite. Index constituents are removed if their annual dollar value traded falls below US$ 35 million during the previous 12 months.

MANAGER WATCH™ SURVEY

MSCI restricts the universe to ordinary shares only in issue with a primary listing on the JSE. All secondary-listed securities are excluded resulting in a very different universe. Shares such as AB InBev, Richemont, BHP Billiton, Anglo American and Old Mutual to name a few are all excluded due to this definition. As a result the number of shares used in the MSCI South Africa Index is significantly different from the other two providers. S&P’s definition also allows for the use of preference shares and other share classes whereas the FTSE Russell definition does not. Factor Indices Evolutions in universe definition have resulted in the emergence of factor indices and the Smart Beta market. Here the broad market is further filtered based on a share’s primary risk premiums or factors. It is based on academic research where evidence that market returns are driven by predefined factors – first popularised by the Fama-French 3-factor model. Style indices are derived from this group – value, momentum, quality, size and others. Fundamental indices such as the RAFI are another universe filter where fundamental (financial statement driven) characteristics are used to reduce the investment universe. Similar to the risk premiums approach, metrics such as Price to Earnings ratios, dividend yield and so on are used to define the index universe. 16

2. Weighting structures The most common weighting structure that is largely consistent with Modern Portfolio Theory is the use of the market capitalisation approach where the proportional market value of the share relative to the total market value is the final weighting. Of course the bigger the market cap of the firm then the bigger its weighting. A less popular approach would be a price weighted index, where the price of a share determines its weighting and not the size of the firm. South Africa does not have any public price weighted indices. Newer approaches have looked at risk as a determinant to weight the portfolio and not the company size. The earliest of these were equally weighted indices where each share had the same weight in the index, allowing for equal exposure of company specific risk. Risk parity weighting is an approach which looks at the expected risk of each share (every share should have a different level of risk). The weighting is then determined by a process where each share contributes the same amount of risk within the overall index. This would result in an index slightly different from the equally weighted model. Market-capped indices. Markets with high or skewed concentrations have had to look at approaches to limit the exposure of shares, which dominate the index and create a perceived market

or liquidity risk. Capping limits can be regulatory or consensus based. Nokia and Ericsson’s size dominated the Finnish and Swedish markets in the early 2000s not dissimilar to Anglo American in South Africa. In South African markets Naspers is the dominant share at over 15% in many broad market indices. Many market practitioners believe that capping the share in the index is more appropriate. Evolutions that have followed are the use of Free-float and Domestic shareholder weighted methodologies. A Free-float methodology adjusts the market capitalisation by adjusting the market capitalisation for shares available for trade in the market. It excludes strategic shares held by government, corporates and other entities. This new market capitalisation determines the weighting. Similarly shareholder weighted methodologies (for example SWIX) would adjust market capitalisation further to reflect what is assumed to be freely available shares available to domestic funds. Fundamental, factor, style and other smart beta indices can use any of these weighting methods for construction. The combination of this universe definition and weighting methodology can create customised solutions for funds.

SECTION 1

3. Rebalancing process This is an often neglected area of understanding, but once an index is implemented it becomes a dynamic structure like any portfolio. Market price movements will, through time, change the weights of each share – the winners become bigger and the losers, smaller. Rebalancing is the process of resetting the weights in line with the methodology. It also takes into consideration new entrants and other corporate activity. The longer the period of rebalancing, the more drift (misalignment to method) can be introduced into the portfolio. The index may not capture new entrants

and new eligible companies due to other corporate activity. Too short a period, and you introduce unnecessary turnover and change to the underlying tracking portfolios. Fixed income benchmarks are not as straightforward as equity indices. Firstly, if one assumes a market cap weighting framework then you are exposed to those countries or entities that issue the most debt – which might represent the more risky strategy. A popular global benchmark is the Citibank World Government Bond Index with over 55% of its exposure solely to US and Japanese debt. Another issue with fixed income benchmarks is that many instruments

are illiquid and difficult to price. Thirdly, the duration, the key sensitivity of the asset, is driven by the bond issuer characteristics and is not reflective of the investor preference of risk. Jointly these issues make some of the interpretations of performance and risk for fixed income more nuanced than equity. With practice, performance and risk attribution become easier to interpret. With benchmarks today covering all types of assets and investment strategies, it makes sense to choose carefully but only after deciding one’s investment goals and risk tolerance.

PART 2: THE EFFECT OF

BENCHMARKS IN DEFINING YOUR INVESTMENT STRATEGY Asset managers will argue that there is far more value in trying to make sure that they generate absolute returns for investors than beat benchmarks, which in many instances would be correct if they were designing and managing the complete investment strategy and not a sub-component of a bigger strategy.

We know that the investment strategy has many moving parts, starting with an innate understanding of the investment objective. Most retirement funds’ define this objective as achieving a specific Net Replacement Ratio (NRR), which represents the percentage of final monthly salary that the member will be able to replace based on the value of the savings accumulated at retirement. The set objective will set a precedent for defining the required investment strategy. The higher you set the target NRR the more you will require the use of aggressive strategies to achieve the outcome. The higher you set the contributions per month the more the use of defensive strategies becomes viable. A higher retirement age of a firm, would also allow for more aggressive strategies. Thus there is no one-size-fits-all strategy but an interplay between investment objective, horizon and the available level of funding needs to be considered in the design of the appropriate strategy. Other significant elements that impact on the definition of the investment strategy include the investment beliefs of the fund, the available risk budget, liquidity requirements, risk management framework, governance framework and other specific exclusions.

MANAGER WATCHâ&#x201E;˘ SURVEY

The fund analysis and governance set out the framework to define and frame the investment objectives. Thereafter, each decision made will have an impact on the risk profile of the strategy used to meet the objective. The traditional approach to design the investment strategy starts with defining an SAA (strategic asset allocation) using a long-term Asset-Liability Model (ALM) or risk model as the central methodology. This modelling framework captures assumptions for investment horizon, risk, returns, mortality, asset class relationships and so on. What is important is that these models attempt to isolate the risk premia that drive asset class performance and simultaneously define the inter-relationship of performance between asset classes. This is usually modelled using broad market indices, one for each asset class. If you change the definition of the index representing an asset class you will change the relationship to the other asset classes. If the relationship changes then the mechanism that determines asset class diversification (capturing return at lower risk) would also change, and as a result the calculated strategic weights for the same objective would be different for each set of inputs.

A holistic consulting framework to define and review the fund investment strategy would be:

Fund and Member Analysis

Governance

Monitoring

HOLISTIC CONSULTING

FRAMEWORK

Manager Selection

Investment Objectives / Risk budget

Portfolio Construction

Strategic Asset Allocation

SECTION 1

UNDERSTANDING

THE RISK-RETURN TRADE OFF To understand the inter-relationship of asset classes requires one to understand correlations and the mathematics to define the volatility of a portfolio of assets. We will use a simple case of a two-asset portfolio to demonstrate this calculation. The equation takes into account five variables:

w(1) = the portfolio weight of the first asset

v(1) = the volatility of the first asset

w(2) = the portfolio weight of the second asset

v(2) = the volatility of the second asset

c(1,2) = correlation between the two assets

Portfolio volatility = (w(1)^2 × v(1)^2) + (w(2)^2 × v(2)^2) + (2 × (w(1)v(1)w(2)v(2)c(1,2)) We will use this formulae in simple application of defining a two-asset investment strategy using equity and bonds. Assume that you are building your strategy on the following assumptions: equity with a volatility of 18% and bonds at 8%, with a correlation of 0.5. The calculated volatility of a 60% equity- 40% bond portfolio will then be 12.71%. For purposes of illustration, let us further assume that volatility captures the optimal strategy.

Now assume that you used a more volatile index to estimate equity risk – say 20% volatility, but with no change to the correlation. The resultant volatility will be 13.88%, much more than your original (optimal) portfolio risk. To have the same level of risk, you would need to adjust the exposure to equities downwards by almost 8%, resulting in a 52% equity and 48% bond portfolio. The reciprocal scenario also holds true and this is analogous for liability driven analytics as well.

A fairly common mistake is to model the underlying investment strategy with risk defined by one benchmark and to then implement the solution using a completely different benchmark. The unintended consequence is a very different risk profile than was original captured. Sometimes the differences are small but in others it can result in a large disconnect to expected outcomes.

This is a critical risk management process at two levels: operational implementation and investment risk measurement.

A decision such as this must be intentional.

MANAGER WATCHâ&#x201E;˘ SURVEY

PORTFOLIO

CONSTRUCTION PHASE The portfolio construction phase looks at how the SAA is decomposed into asset class strategies, including the use of hedge funds, alternatives and other unlisted assets. Each of these would be assigned a benchmark; even the traditional asset classes may be assigned different benchmarks. This change in benchmark may be considered a change in risk and, therefore, a shift in expected performance. This can be further compounded by incorrectly matching strategies to the original asset classes, for example choosing an equity hedge fund strategy instead of implementing a cash mandate. Hedge funds have notoriously referenced a cash plus alpha benchmark for many years, despite the underlying strategy being significantly exposed to equity risks. A more appropriate benchmark for hedge funds would actually be a composite benchmark of equity and cash. The effect of these decisions may not be obvious at first glance. The selection of manager phase can result in a further change of benchmarks, and hence a change of the risk-return framework. Tactical decisions, including decisions to hedge, can create deviations from the original strategy. In theory, a fund that has implemented a risk budget or risk monitoring framework would be able to quantify and attribute the risk of each of these decisions:

Fund liabilities ALM model SAA SAA implementation

1 2 3

ALM model SAA SAA implementation Asset manager

SAA implementation

Tactical decisions

ALM model SAA

Total plan

Fund liabilities

Total plan

SECTION 1

At this point it should become obvious that the selection of the correct benchmark is critically important for several reasons. First, your investment strategy risk and return profile will be heavily influenced by the benchmark. Second, inappropriate selection can result in unexplained deviations of performance to the objective, as asset class exposures will be incorrectly set. Third, secondary decisions such as manager selection, tactical hedging and so on will become significantly influenced by the benchmark. Fourth, some benchmarks are better suited to specific investment goals than others. If the primary goal is capital preservation, an important consideration for the bond index might be credit quality and therefore a government bond index is more suitable. If the portfolio is intended to offset liabilities that change with interest rates, the most important consideration would be selecting a benchmark with high interest rate sensitivity, rather than just prospective returns. You should evaluate your return goals and risk tolerance to guide the selection of an index. In most instances a

composite benchmark with the correct weighting of underlying broad market indices reflecting the asset classes would suffice. However, in some instances a more customised view may need to be adopted to meet unique goals and risk tolerances. For example, an investor with a low risk tolerance should select a bond index with a shorter duration and/ or higher credit quality. An investor seeking higher returns in the equity space should implement a composite index with exposures to particular risk premia such as size and value, which should generate higher returns over the long run but may simultaneously exhibit significant performance volatility and negative returns over shorter time periods. Funds with specific long-term liabilities should consider not only the cash flows associated with their liabilities, but also the risk factors that can cause changes in the liabilities. It might be of value to create a custom benchmark composed of a combination of government bonds, index-linked bonds, swaps and corporate bonds that closely matches the risk factors of the liabilities. This customisation could be better than

existing indices as it provides a better frame of reference while also providing flexibility to adapt to changes in the liability stream over time. Funds with high staff turnover, retirement strategies that draw down, DB schemes and such others will need more liquid portfolios. They should select benchmarks for their cash and fixed interest components with a shorter duration. Using longer dated benchmarks that contain fewer liquid securities will exhibit greater interest rate sensitivity and a false reflection of both the investable universe and the risk return profile. Remember at its very basic level a benchmark can simply be used as a gauge for performance but retirement funds should not be interested in the basics. You have a responsibility to your members to ensure that the objectives and expectations set out by the fund are implemented in an appropriate fiduciary manner. Correctly setting your benchmarks will assist in executing your strategy at multiple levels.

STANLIB is an authorised financial services provider.

If you’re in commodities,

you’re in slowing economies.

Today, in investments, everything is connected. Like the local mining industry and the decreasing demand of one of its biggest export markets. Understanding these connections is the difference between profit and loss. That’s why STANLIB connects multiple specialists across asset classes and markets to make better investment decisions for you. Because a connected world demands multi-specialist investing. #ConnectedInvesting

stanlib.com

MANAGER WATCH™ SURVEY

2 SECTION 2 Survey Notes Balanced Manager Watch™ Survey Balanced Manager Watch™ Risk vs Return Balanced Manager Watch™ Survey Asset Allocation Balanced Manager Watch™ Survey Composite Dispersions Introducing Phi: What trustees need to understand about “the hidden variable in investment performance”: ■■ What the problem is and how it came about? ■■ How we need to shift our focus: Phi – The Hidden Performance Variable. ■■ Investment professional imperative – Business success or fiduciary? ■■ How do we stimulate excellence with investment professionals? ■■ Four potential models for an enhanced Phi score. ■■ How relevant is Phi to South African investors?

MANAGER WATCH™ SURVEY

Survey notes

The Manager Watch™ Series of Surveys The Manager Watch™ Series of Surveys focuses on multi-asset class mandates traditionally known as Balanced mandates in the South African industry. It is made up of seven surveys, with the following being material events over 2016:

SA Manager WatchTM – Best Investment View SIM Domestic Unique exited the survey in September 2016.

SA Manager Watch™ – Conservative: No Changes to this category.

SA Large Manager Watch™: SIM Domestic Unique exited the category in January 2016.

Global Manager Watch™ – Dynamic: OMIG MacroSolutions Edge28 exited the category in March 2016. Investment Solutions Entrepreneur exited the category in Septemeber 2016.

Global Manager Watch™ – Best Investment View: RECM Global exited the survey in January 2016. Stanlib Multi Manager Balanced Fund entered the survey in June 2016.

Global Manager Watch™ – Conservative: STANLIB Multi-Manager Defensive Fund entered the category in September 2016.

Global Large Manager Watch™: RECM Global exited the survey in January 2016.

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 funds use peer relative performance benchmarks and not investable benchmarks. The current positioning and exposure of funds, is more relevant to an investment strategy. Please use all information within this survey and interpretations therefrom cautiously and use an asset consultant when matching your liabilities to appropriate assets and fund strategies.

Sources of performance Multi-Asset class portfolios build and implement their investment strategies based on a multitude of methods; the most popular being economic macro research; asset allocation modelling (strategic and tactical); relative asset class valuation; assessment of market risks; security valuation; portfolio construction and market hedging strategies. Its primary driver of return is its asset allocation strategy as it will seek to take advantage of the different expected returns between assets; while sector and/or security selection within the asset seek to provide additional sources of performance. The portfolio manager will also use the asset class exposures to manage an overall risk strategy. 24

SECTION 2

Market dynamics that influenced performance and strategy over 2016 2016 was another tough year for local investors, especially for those approaching retirement where investment returns for many have been negative in real terms for the last two years. The year had a number of significant events which in itself did not define the year but rather sustained already difficult economic conditions. The dominant economic themes that influenced markets and portfolio management strategy were: ■■ The most significant story of 2016 had to be the unexpected vote by Britain to leave the European Union (Brexit). The sharp sell-off in June, was followed by a quick recovery as investors realised that the exit will be drawn out, with downside risks expected to be absorbed via monetary stimulus by central banks. The full impact to the global economy is uncertain as negotiations begin to manage the exit. The British pound has slid by over 10% to most major currencies (18% to the USD) at that point, reflecting a devalued economy going forward. The UK is a country that consumes more than it manufactures and imports more than it exports. Inflation is a major concern for the economy at this stage; and as a major economy, it may introduce contagion into its Emerging Markets (EM) trading partners. The Bank of England (BOE) still saw it fit to cut its 2017 growth forecasts from 2.3% to 0.8%. The full ramifications of Brexit are still to be seen. ■■ Continuing concerns over the Chinese economy and in turn global growth peaked in January when the government announced another monetary and fiscal stimulus package to support economic growth. These efforts provided a noticeable boost to commodities and Emerging Markets that had both started the year on a tough footing. Despite the recovery in growth expectations by late June the Chinese stock market experienced its worst decline since the 2008 financial crisis. Of more importance to international investors was the local currency, the yuan. The government frequently adjusted the USD-CNY currency peg to allow depreciation of its currency but at the same time spent billions of its dollar reserves

to ensure a gradual shift in the exchange rate rather than a dramatic depreciation that many hedge funds began to speculate on. The Chinese economy still showed positive growth of 6.7% in the last quarter but the on-going shifts in economic policy suggest that the government will continue to struggle to meet its targets in 2017. ■■ After starting the year with expectations of numerous interest rate increases, the Federal Reserve eventually raised interest rates by 0.25% in December, with the new rate now standing at 0.75%. Failure to hike earlier in the year was a boost to commodity, equity and Emerging Markets that had all suffered when the market initially priced in much higher global discount rates. In contrast to the US, Europe and Japan cut rates into negative interest rate territory. While growth has been improving in Europe, it has been at a very slow rate. ■■ In January, the oil price sank to a 13 year low as it hit $27 a barrel. Since then, the oil price recovered and ended the year at approximately $55. This has driven an overall rally across most commodities through the year; a significant factor for Africa’s resource driven economy. ■■ Locally, the focus was on South Africa’s credit rating review by the three major credit rating agencies. Once again, South Africa was able to avoid the downgrade to non-investment grade (“junk status”). Political instability, low growth and unemployment were highlighted as on-going concerns for the credit agencies with all three major agencies assessed the outlook for the rating as negative. ■■ Local politics dominated news over the year for both the right and wrong reasons. The 2016 Local Government Elections was largely a peaceful and fair event. On the downside, political uncertainty regarding policy direction and continued political pressure on the Finance Minister resulted in spurts of local currency and bond weakness. On the whole, the Rand recovered strongly through the year vs. developed currencies, in-line with most other Emerging Markets

■■ Over the year, the Reserve Bank’s Monetary Policy Committee (MPC) opted to keep the repo rate unchanged at 7% per annum, after raising lending rates by 0.75% in a pre-emptive move to try to curb inflation in January. In its September statement, the Reserve Bank noted, “Should current forecasts transpire, we may be close to the end of the tightening cycle”, cautiously signaling the end of the current tightening cycle. Despite a turbulent year, global equity and bond markets still managed positive gains over the year, returning 8.5% (MSCI ACWI) and 1.6% (Citi WGBI) respectively (both in US dollars). Emerging markets (MSCI EM) returned 11.6% to outperform their developed counterparts over the year (in US dollars). In the final quarter, the 10-year US bond yield spiked up by 0.85% to 2.44%, because of a recovery in growth and inflation expectations that were aided by Donald Trump’s US election victory. This negatively affected global bond markets (Citi WGBI) over December (-0.7%) and the quarter (-8.5%) (in US dollars). Market volatility, low economic growth as well as local and global political uncertainty made 2016 tough for the local asset classes. In the local market, nominal bonds were the best performing asset class for 2016, delivering a total return of 15.5%, on the back of improving political developments and stabilisation of local inflation expectations. Local equity returns were muted over the year, returning 2.6%. Resources was the best performing sector, returning 34.2% for the year boosted by the recovery in commodity prices. Financials, up 5.4% for the year, benefited from the rand’s appreciation against the major currencies and South Africa avoiding a credit downgrade over the year. Industrials (-6.6%) lagged behind because of large-cap rand hedge stocks that have been negatively affected by the rand’s appreciation against the major currencies.

MANAGER WATCHâ&#x201E;˘ SURVEY

The top three performing sectors during the fourth quarter were banks (11.0%), telecommunications (6.7%) and chemicals (5.7%). At the bottom were consumer services (-11.0%), healthcare (-10.7%) and basic materials (-1.2%). Mid caps (26.9%) outperformed small caps (20.9%) while large caps (-1.6%) struggled over the year.

A deterioration in foreign sentiment towards local equities was confirmed by the considerable level of foreign capital outflows from equity markets, amassing around R124.8 billion cumulatively for 2016 and an outflow of around R28 billion in the fourth quarter.

The rand experienced strong appreciation against the US dollar (11.5%), euro (14.0%) and sterling (26.0%) over the year.

How the managers performed over 2016 The difficult macro environment that transpired was expected with most managers feeling finally justified in structuring their portfolios defensively, with lower equity exposures and higher cash exposure vs longer term averages. Like the recent past the most influential factor on multi-asset mandates was the allocation to global assets, in particular the allocation to developed markets and currencies; which performed poorly and proved to be a complete reversal of 2015. The four most contributing factors and themes that led to differentiated performances amongst funds were: 1. Exposure to local cash vs local bonds for defensive allocations 2. Allocation to developed markets and currencies 3. Exposure to commodities and resource shares 4. Choosing Rand hedge stocks for local equity 26

The majority of the SA BIV managers kept their asset allocations relatively stable for the year, with only Investec and Prescient making significant increases in local equity exposure (c.+10% and +20%) respectively. Prescient started the year with the lowest average equity exposure of 38.3% and has simply moved to the peer group average exposure. Unfortunately this was a relatively poor decision and was an under par performance outcome for investors. Oasis and Coronation, Stanlib were the three managers with differing asset allocation to the peer universe with c. 70%, 69% and 48% equity exposure relative to the peer average of 58%. With Bonds being the best performing asset for the year, investment in this asset class was a key differentiator of performance. Pan Africaâ&#x20AC;&#x2122;s 40% exposure to the asset class almost double the exposure of the next manager was a winning decision for the manager, with a return of 14.67%. This was a driver for its leading performance for the year in

the category; a reversal of 2015 where it was actually the poorest manager. Foord and Prescient had the lowest exposure at 7.37% and 6.2% respectively favouring cash instead. Both managers struggled due to this. Foord was the poorest performer returning 4.07%. Another key differentiator of performance in the SA BIV category, lay in whether being overweight to resources and underweight to Rand hedge securities. Investec, the top performing strategy for 2015, was in the bottom quartile this year due to its low exposure to the resource sector and rand hedge exposure which contributed to its strong performance in 2015. Stanlib had a strong asset allocation framework which did not convert into strong performance for similar reasons. Allan Gray was the most consistent manager through both cycles, based on security selection and hedging decisions. All managers delivered a positive return for investors.

SECTION 2

The Global BIV funds significantly underperformed the domestic mandates with c.450bp performance differential between the medians a direct opposite of its positive c600bp in 2015. Global markets were subdued but positive in US$, but currency strength was the differentiating factor in performance. Asset allocation views remained closely aligned to the domestic themes but most global BIV managers’ continued to remain at the limits allowed by Regulation 28 of the Pension Funds Act. Of the 23 managers only 4 were lower than the Regulation 28 limit of 25% by more than 2%. Prescient was lowest at 7.96%, followed by Cadiz (14.05%) with PSG, and Stanlib at 22.89% and 22.86% respectively. Cadiz and PSG used this as a basis to deliver top quartile performance but this was not the case for the other two managers. Prescient and Foord’s preference for cash to bonds remained consistent in the global funds and was a key detractor of performance leaving them languishing

in the bottom quartile. Another manager that held this view was Rezco, 2015’s top manager which unfortunately was the poorest performer of 2016 losing 4.36% of investor’s capital. PSG reversed a poor 2015, being the strongest manager for 2016, returning 14.53% despite high global exposure. This was driven by an equity selection that was a reversal of positions built in the past such as the cyclical mining counters. It also used the local ratings uncertainty to time its entry into the financial sector which benefitted from a late rally.

5% property, 15% global equity, 10% global bonds would have returned 10.2% and would have only performed better than 4 of the 23 managers in the survey. The performance differentials (best fund to worst fund) over one year on the Global BIV has decreased to 19% from 37.25% in 2015, largely due to less outlier negative performance as seen in the past by managers that have now exited the survey. Removing the top fund and the bottom three funds, the remaining 19 funds differ by less than 7%. The performance differential in the SA BIV also reduced to 10.6% from 15.1% in 2015.

Investec’s had similar woes to domestic portfolio; and Allan Gray’s SA BIV performance was repeated in its Global BIV portfolios with Orbis it global partner delivering strong US$ returns. Interestingly a passive strategy of 45% local equity, 15% local bonds, 10% cash,

SHIFT YOUR PERSPECTIVE We see things differently. Shift your perspective to take advantage of unobvious investment opportunities. Our experienced and highly qualified investment team have a long track record of managing hedge funds in South Africa, delivering consistent superior risk adjusted returns.

We know hedge funds

T +27 11 263 7700 E laurium@lauriumcapital.com www.lauriumcapital.com

Laurium is an authorised financial services provider (FSP No 34142).Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to www.lauriumcapital.com.

MANAGER WATCH™ SURVEY

SA Balanced Manager WatchTM Survey – Best Investment View Objective: The portfolios are balanced (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 2016 30% 25% 20% 15% 10% 5% 0% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable) 1 Year

3 Years (p.a.)

5 Years (p.a.)

7 Years (p.a.)

10 Years (p.a.)

High

14.67%

10.93%

13.93%

14.23%

12.82%

Upper Quartile

10.63%

8.04%

12.84%

13.08%

12.04%

Median

9.33%

6.96%

11.31%

11.66%

10.82%

Average

8.62%

6.47%

10.63%

11.14%

10.39%

Asset-weighted Average

7.00%

7.04%

10.29%

10.48%

9.09%

Lower Quartile

5.20%

5.62%

10.65%

11.23%

10.14%

Low

4.07%

4.60%

10.10%

11.01%

9.68%

Range

10.60%

6.33%

3.84%

3.21%

3.14%

Number of Participants

Note: The statistics above only include those portfolios that are investable, in other words those portfolios that are closed to new business will be excluded from the calculations.

SECTION 2

SA Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (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 Investment Managers

GIPS™ (Verified / Compliant)

Portfolio Type

Benchmark Description

No. of Funds in Composite

Portfolio Size (R m)

Absa Asset Management Domestic Balanced

Segregated

65% SWIX, 25% ALBI, 10% STeFI 3 month NCD (effective 1 August 2015)

4 075

Allan Gray

Segregated

SA LMW Average

16 007

Coronation

Segregated

SA LMW Median

12 900

Foord Domestic Balanced

Segregated

65% ALSI, 5% PROP, 25% ALBI, 5% STFCAD

9 619

Investec Asset Management

Segregated

SA LMW Median

7 007

Pooled multi-manager

SA LMW Median

N/A

10 574

Investment Solutions Performer Local

N/A

Oasis

Segregated

SA BIV Average

148

Pan-African

Segregated

ALSI 60%: ALBI 40%

326

Prescient Domestic Balanced

Segregated

Inflation

250

5 569

Prudential Domestic Balanced

Segregated

The total fund is benchmarked against the Median performance of the Domestic LMW performance.

Stanlib AM

Segregated

SA LMW Median

Total

930 67 406

V = Verified C = Compliant

MANAGER WATCH™ SURVEY

Investment Data to the end of December 2016 – Performance Data Investment Manager 1 Year Portfolio Absa Asset Management Domestic Balanced

8.34%

3 Years (p.a.) Rank Benchmark Portfolio 5

7.31%

6.99%

5 Years (p.a.)

Rank Benchmark Portfolio 5

6.45%

7 Years (p.a.)

Rank Benchmark

10.65%

10.98%

Portfolio 11.18%

10 Years (p.a.)

Rank Benchmark Portfolio 9

10.97%

Rank Benchmark

11.18%

10.03%

Allan Gray

13.14%

8.32%

10.93%

6.80%

12.60%

11.10%

12.78%

11.53%

12.04%

10.58%

Coronation

7.01%

8.28%

6.84%

6.72%

12.50%

11.31%

12.97%

11.61%

12.14%

10.86%

Foord Domestic Balanced

4.07%

5.79%

6.86%

6.76%

13.93%

11.54%

14.23%

11.37%

12.52%

9.92%

Investec Asset Management

5.07%

8.28%

9.72%

6.72%

12.84%

11.31%

12.67%

11.61%

12.82%

10.86%

Investment Solutions Performer Local

8.18%

8.28%

8.25%

6.71%

12.85%

11.30%

13.08%

11.59%

11.98%

10.85%

Oasis

10.95%

8.62%

4.75%

6.47%

10.10%

10.63%

11.01%

11.14%

10.14%

10.39%

Pan-African

14.67%

9.33%

6.94%

7.32%

11.33%

11.53%

11.23%

11.82%

9.96%

10.93%

Prescient Domestic Balanced

5.58%

7.84%

5.21%

6.09%

Prudential Domestic Balanced

9.67%

8.28%

7.40%

6.72%

12.76%

11.31%

13.19%

11.61%

12.04%

10.86%

Stanlib AM

4.74%

9.33%

4.60%

6.96%

10.60%

11.31%

11.69%

11.66%

9.68%

10.82%

Investment Data to the end of December for the past 5 Calendar years Investment Manager

2015

2014

Portfolio

Rank

2013

Portfolio

Rank

Portfolio

2012 Rank

Portfolio

2011 Rank

Portfolio

Rank

Absa Asset Management Domestic Balanced

3.21%

9.53%

15.02%

17.75%

6.22%

Allan Gray

6.31%

13.47%

15.33%

15.01%

10.10%

Coronation

2.84%

10.81%

21.81%

21.34%

6.48%

Foord Domestic Balanced

3.06%

13.78%

20.20%

30.89%

9.60%

Investec Asset Management

9.95%

14.34%

15.45%

19.94%

6.15%

Investment Solutions Performer Local

4.51%

12.19%

18.29%

21.97%

8.09%

Oasis

-5.19%

9.27%

13.45%

24.05%

7.90%

Pan-African

-1.91%

8.73%

16.11%

20.46%

6.45%

Prescient Domestic Balanced

2.72%

7.37%

10.75%

11.63%

Prudential Domestic Balanced

1.97%

10.80%

17.83%

24.87%

8.87%

Stanlib AM

0.67%

8.53%

13.08%

27.88%

8.66%

SECTION 2

Global Balanced Manager Watch™ Survey – Dynamic Objective: The portfolios are balanced (multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and aim to maximise long-term (more than 5 years) capital growth. This may lead to volatility of returns in the short term (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 2016 30% 25% 20% 15% 10% 5% 0% -5% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable) 1 Year

3 Years (p.a.)

5 Years (p.a.)

7 Years (p.a.)

10 Years (p.a.)

High

7.87%

10.92%

15.43%

14.09%

Upper Quartile

4.79%

10.30%

14.34%

13.18%

12.07% 11.98%

Median

3.63%

9.22%

14.36%

13.64%

11.80%

Average

4.04%

9.38%

13.95%

13.25%

11.58%

Asset-weighted Average

2.51%

8.39%

11.63%

11.39%

10.52%

Lower Quartile

2.32%

9.30%

12.87%

12.84%

11.27%

Low

-0.82%

7.77%

10.75%

10.89%

10.51%

Range

8.69%

3.15%

4.69%

3.19%

1.55%

Number of Participants

Note: The statistics above only include those portfolios that are investable, in other words those portfolios that are closed to new business will be excluded from the calculations.

MANAGER WATCH™ SURVEY

General information Investment Managers

Portfolio Type

Benchmark Description

No. of Funds in Composite

Portfolio Size (R m)

Allan Gray Life Global Absolute Portfolio

Pooled

Global LMW Average

N/A

Coronation (Managed)

Pooled

Global LMW Average

N/A

9 537

Investec Asset Management Managed

Pooled

Global LMW Median

N/A

10 305

Investec Opportunity Composite

Pooled

CPI + 6%

N/A

51 975

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

2 171

Pooled multi-manager

50% SWIX , 10% Property, 17% SteFI, 20% MSCI World Index, 3% All Africa Top 100 (excl SA)

N/A

2 205

OMIG MacroSolutions (Profile Edge28)

Old Mutual Multi Managers Aggressive Total V = Verified C = Compliant

GIPS™ (Verified / Compliant)

3 063

79 255

SECTION 2

Investment Data to the end of December 2016 – Performance Data Investment Managers

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 Allan Gray Life Global Absolute Portfolio

7.87%

3.72%

Coronation (Managed)

7.96%

Investec Asset Management Managed

4.79%

Investec Opportunity Composite

2.32%

OMIG MacroSolutions (Profile Edge28) Old Mutual Multi Managers Aggressive

10.30%

6.96%

10.75%

12.59%

10.89%

12.31%

11.98%

3.74%

8.06%

6.85%

15.28%

12.51%

14.94%

12.21%

13.53%

10.52%

3.58%

10.92%

7.89%

15.43%

13.22%

14.09%

12.57%

11.87%

10.81%

12.61%

9.30%

11.72%

12.87%

11.62%

12.84%

11.40%

12.07%

12.26%

3.07%

9.51%

14.34%

13.18%

11.27%

-0.82%

3.18%

7.77%

9.74%

13.36%

15.58%

12.85%

14.46%

10.51%

11.81%

Investment Data to the end of December for the past 5 Calendar years Investment Managers

2015 Portfolio

2014 Rank

Portfolio

2013 Rank

Portfolio

2012 Rank

Portfolio

2011 Rank

Portfolio

Rank

Allan Gray Life Global Absolute Portfolio

11.63%

11.45%

16.78%

6.29%

14.00%

Coronation (Managed)

5.10%

11.22%

30.10%

24.01%

9.04%

Investec Asset Management Managed

19.31%

9.14%

23.46%

21.66%

8.80%

Investec Opportunity Composite

15.53%

10.46%

16.23%

20.72%

12.59%

OMIG MacroSolutions (Profile Edge28)

11.07%

14.72%

23.71%

20.27%

6.65%

Old Mutual Multi Managers Aggressive

11.84%

12.83%

26.60%

18.17%

8.29%

MANAGER WATCH™ SURVEY

Global Balanced Manager WatchTM Survey – Best Investment View Objective: The portfolios are balanced (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 2016 25% 20% 15% 10% 5% 0% -5% -10% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable) 1 Year

3 Years (p.a.)

5 Years (p.a.)

7 Years (p.a.)

10 Years (p.a.)

High

14.53%

11.49%

16.07%

14.17%

13.29%

Upper Quartile

5.00%

9.02%

14.57%

13.79%

12.09%

Median

3.53%

7.68%

12.92%

12.40%

10.78%

Average

4.04%

7.15%

12.48%

12.40%

10.78%

Asset-weighted Average

3.73%

7.78%

12.34%

11.38%

10.55%

Lower Quartile

2.44%

7.54%

12.73%

12.31%

10.04%

Low

-4.39%

4.64%

8.07%

10.33%

8.93%

Range

18.92%

6.86%

8.00%

3.84%

4.36%

Number of Participants

Note: The statistics above only include those portfolios that are investable, in other words those portfolios that are closed to new business will be excluded from the calculations.

SECTION 2

Global Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (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 Investment Managers

GIPS™ (Verified / Compliant)

Portfolio Type

Benchmark Description

No. of Funds in Composite

Portfolio Size (R m)

Absa Asset Management Global Balanced

Pooled

AF Large Manager Watch Median

5 529

Allan Gray

Segregated

Global LMW Average (Non Investable)

75 769

Cadiz Global Balanced

Segregated

Global LMW Median

209

Coronation

Segregated

Global LMW Median

45 756

Foord Global Balanced

Segregated

55% ALSI, 9% MSCI, 6% CITI, 5% PROP, 20% ALBI, 5% STFCAD

69 937

Investec Asset Management

Segregated

Global LMW Median

67 983

Investment Solutions (Performer)

Pooled multi-manager

Alexander Forbes Investable Global Large Manager™ Watch Median

N/A

89 693

Investment Solutions (Spectrum)

Pooled multi-manager

Alexander Forbes Investable Global Large Manager™ Watch Average

N/A

1 783

Segregated

Global LMW Median

4 471

Pooled

55% FTSE/JSE SWIX,10% FTSE/JSE SA Listed Property Index, 5% ALBI, 5% Barclays BEASSA SA Government ILB Index, 20% MSCI All Countries World Index, 5% Citigroup World Government Bond Index

N/A

16 890

Pooled

CPI + 5%

N/A

2 751

Segregated

Global BIV Average

1 158

Old Mutual Multi Managers Managed

Pooled multi-manager

Median of Alexander Forbes Global Large Manager Watch (Non Investable)

N/A

2 582

Old Mutual Multi-Managers Inflation Plus 5-7%

Pooled multi-manager

CPI + 6%

N/A

4 412

Segregated

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

3 860

N/A

554

MMI - Global Balanced

Momentum MoM Enhanced Factor 7

Nedgroup Investments XS Diversified Fund of Funds Oasis

OMIG MacroSolutions

N/A V

OMIG MacroSolutions (Profile Balanced)

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

Prescient Global Balanced

Segregated

Inflation

236

Segregated

The total fund is benchmarked against the total MEDIAN performance of the Global LMW participants.

29 147

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)

6 670

Prudential Balanced

PSG Balanced Fund

Rezco Value Trend

Pooled

FTSE/JSE All Share

7 550

SIM Global Unique

Segregated

Global LMW Median

14 963

Stanlib AM

Segregated

Forbes MW - Global Best Invest

2 605

Pooled

AF Global Manager Watch BIV Median Non Investable

N/A

4 833

Stanlib Multi Manager Balanced Fund Total

459 342

V = Verified C = Compliant

MANAGER WATCH™ SURVEY

Global Balanced Manager Watch™ Survey – Best Investment View Objective: The portfolios are balanced (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.

Investment Data to the end of December 2016 – Performance Data Investment Managers

1 Year

3 Years (p.a.)

5 Years (p.a.)

Portfolio Rank Benchmark Portfolio Rank

7 Years (p.a.)

10 Years (p.a.)

Benchmark Portfolio Rank Benchmark Portfolio Rank

Absa Asset Management Global Balanced

3.70%

3.58%

7.82%

7.89%

11.92%

13.22%

Allan Gray

7.51%

3.72%

10.17%

6.96%

14.00%

12.59%

13.47%

Cadiz Global Balanced

5.86%

3.58%

4.64%

7.89%

10.48%

13.22%

Coronation

3.44%

3.58%

8.08%

7.89%

14.65%

Foord Global Balanced

0.53%

3.92%

7.24%

7.69%

13.94%

Investec Asset Management

1.68%

3.58%

9.95%

7.89%

Investment Solutions (Performer)

5.05%

3.42%

9.02%

Investment Solutions (Spectrum)

4.48%

3.69%

7.29%

MMI - Global Balanced

2.33%

3.58%

Momentum MoM Enhanced Factor 7

3.96%

Nedgroup Investments XS Diversified Fund of Funds

4.87%

Oasis Old Mutual Multi Managers Managed

Benchmark Portfolio Rank

Benchmark

12.31%

12.24%

10.59%

10.33%

12.57%

8.93%

10.81%

13.22%

14.14%

12.57%

12.68%

10.81%

12.69%

14.03%

12.18%

12.09%

10.25%

14.68%

13.22%

13.62%

12.57%

13.29%

10.81%

7.84%

14.46%

13.19%

13.96%

12.80%

12.09%

11.33%

6.81%

12.81%

12.49%

12.35%

10.86%

10.81%

8.22%

7.89%

12.94%

13.22%

11.88%

12.57%

10.03%

10.81%

3.00%

9.00%

9.56%

14.88%

15.00%

14.17%

14.05%

11.48%

11.44%

11.95%

8.21%

11.01%

12.57%

10.90%

12.42%

10.40%

4.43%

4.04%

7.63%

7.15%

13.27%

12.48%

12.39%

12.40%

9.98%

10.78%

4.03%

3.23%

7.76%

7.89%

Old Mutual MultiManagers Inflation Plus 5-7%

2.77%

12.97%

9.10%

10.23%

16.07%

10.73%

OMIG MacroSolutions

3.40%

2.94%

7.96%

8.67%

12.79%

13.43%

12.20%

12.97%

10.41%

11.17%

OMIG MacroSolutions (Profile Balanced)

3.42%

4.24%

8.05%

9.20%

12.83%

14.10%

12.22%

13.64%

10.21%

11.58%

Prescient Global Balanced

-1.37%

7.84%

5.05%

5.86%

8.07%

5.71%

Prudential Balanced

6.60%

3.58%

9.02%

7.89%

14.69%

13.22%

14.03%

12.57%

12.11%

PSG Balanced Fund

14,53%

11,61%

11,49%

7,15%

15,49%

12,51%

Rezco Value Trend

-4,39%

2,63%

SIM Global Unique

6,87%

3,58%

8,19%

7,89%

13,11%

13,22%

12,63%

12,57%

10,06%

10,81%

Stanlib AM

0,42%

3,53%

6,01%

7,68%

12,67%

12,92%

12,94%

12,40%

9,90%

10,78%

Stanlib Multi Manager Balanced Fund

3,24%

3,46%

* 4

10.81%

SECTION 2

Investment Data to the end of December for the past 5 Calendar years Investment Managers

2015 Portfolio

2014 Rank

2013

Portfolio

Rank

2012

Portfolio

Rank

2011

Portfolio

Rank

Portfolio

Rank

Absa Asset Management Global Balanced

8.34%

11.57%

16.72%

20.01%

8.39%

Allan Gray

12.77%

10.29%

25.05%

15.14%

12.63%

Cadiz Global Balanced

4.90%

3.17%

18.18%

21.54%

4.36%

Coronation

8.89%

12.09%

28.88%

21.73%

8.21%

Foord Global Balanced

10.51%

11.00%

24.02%

25.57%

11.40%

Investec Asset Management

15.41%

13.26%

23.67%

20.67%

7.59%

Investment Solutions (Performer)

10.64%

11.50%

25.53%

20.77%

9.54%

Investment Solutions (Spectrum)

7.21%

10.27%

22.59%

20.67%

8.65%

MMI - Global Balanced

12.07%

10.52%

21.20%

Momentum MoM Enhanced Factor 7

9.72%

13.55%

25.63%

22.99%

8.06%

Nedgroup Investments XS Diversified Fund of Funds

8.57%

11.29%

21.45%

17.49%

9.39%

Oasis

5.73%

12.91%

23.11%

21.47%

8.55%

Old Mutual Multi Managers Managed

8.02%

11.36%

25.59%

22.88%

9.66%

Old Mutual Multi-Managers Inflation Plus 5-7%

11.28%

13.54%

29.54%

25.24%

7.82%

OMIG MacroSolutions

8.52%

OMIG MacroSolutions (Profile Balanced)

8.76%

12.15%

20.84%

19.95%

7.84%

Prescient Global Balanced

5.99%

10.89%

12.63%

12.87%

Prudential Balanced

8.84%

11.67%

24.84%

22.67%

8.92%

PSG Balanced Fund

6.77%

13.33%

28.25%

15.61%

10.08%

Rezco Value Trend

17.99%

10.99%

30.09%

32.64%

15.48%

SIM Global Unique

6.45%

11.32%

21.63%

20.21%

7.64%

Stanlib AM

8.18%

9.69%

22.29%

24.63%

9.34%

Stanlib Multi Manager Balanced Fund

10.55%

* 15

MANAGER WATCH™ SURVEY

Global Balanced Manager Watch™ Survey – Conservative Objective: The portfolios are balanced (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 (less than one year) capital loss while targeting long-term (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.

Range of Returns of Global Conservative Investable Universe for the periods ending 31 December 2016 30% 25% 20% 15% 10% 5% 0% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable) 1 Year

3 Years (p.a.)

5 Years (p.a.)

7 Years (p.a.)

10 Years (p.a.)

High

7.36%

9.82%

12.45%

10.49%

10.60%

Upper Quartile

5.48%

8.49%

10.74%

10.41%

10.34%

Median

4.72%

8.29%

10.91%

10.67%

10.19%

Average

4.44%

8.06%

10.76%

10.57%

10.04% 10.26%

Asset-weighted Average

4.26%

8.51%

10.65%

10.29%

Lower Quartile

3.32%

7.83%

10.52%

10.23%

9.86%

Low

1.44%

6.63%

9.75%

9.94%

9.75%

Range

5.92%

3.19%

2.70%

0.55%

0.84%

Number of Participants

Note: The statistics above only include those portfolios that are investable, in other words those portfolios that are closed to new business will be excluded from the calculations.

SECTION 2

General information Investment Managers

GIPS™ (Verified / Compliant)

Portfolio Type

Benchmark Description

No. of Funds in Composite

Allan Gray Life Global Stable Portfolio

Pooled

Alexander Forbes 3 month Deposit Index plus 2%

Foord Conservative Balanced

Pooled

CPI + 4%

1 583

Investec Cautious Managed Fund

Pooled

GLMW Median

11 490

Pooled multi-manager

FTSE/JSE SWIX 32.00%, BEASSA All Bond Index 24.00%,STeFI Call Deposit Index 24.00%, MSCI AC World 7.90%, Citi WGBI 6.00%,US Treasury Bill 3.05%,French Treasury Bill 3.05%

N/A

3 233

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

609

Old Mutual Multi Managers Absolute Balanced Fund

Pooled multi-manager

CPI + 6%

N/A

2 184

STANLIB Multi-Manager Defensive Balanced Fund

Pooled multi-manager

CPI + 3

N/A

2 529

Investment Solutions (Conserver)

OMIG MacroSolutions (Profile Capital)

TOTAL

N/A

Portfolio Size (R m) 5 555

27 184

V = Verified C = Compliant

MANAGER WATCH™ SURVEY

Investment Data to the end of December 2016 – Performance Data Investment Managers

1 Year Portfolio

3 Years (p.a.) Rank Benchmark Portfolio

Allan Gray Life Global Stable Portfolio

7.36%

9.20%

9.82%

Foord Conservative Balanced

1.44%

8.89%

Investec Cautious Managed Fund

2.86%

3.58%

8.49%

Investment Solutions (Conserver)

5.31%

5.04%

OMIG MacroSolutions (Profile Capital)

5.64%

Old Mutual Multi Managers Absolute Balanced Fund

4.37%

STANLIB Multi-Manager Defensive Balanced Fund

3.77%

5 Years (p.a.)

Rank Benchmark Portfolio 1

8.37%

10.74%

7.89%

10.52%

6.63%

7.60%

6.29%

7.83%

12.43%

8.30%

9.79%

7 Years (p.a.)

Rank Benchmark Portfolio 2

7.93%

10.38%

13.22%

10.33%

9.75%

10.42%

8.10%

10.58%

11.99%

12.45%

8.79%

10 Years (p.a.)

Rank Benchmark Portfolio 2

Rank Benchmark

7.99%

10.60%

12.57%

10.26%

8.74%

9.94%

10.37%

9.75%

9.41%

9.67%

10.49%

10.03%

9.89%

9.47%

12.30%

Investment Data to the end of December for the past 5 Calendar years Investment Managers

2015 Portfolio

2014 Rank

2013

Portfolio

Rank

2012

Portfolio

Rank

8.13%

Rank 5

Portfolio

14.46%

7.77%

16.29%

Foord Conservative Balanced

10.39%

9.56%

Investec Cautious Managed Fund

13.34%

9.54%

14.64%

12.61%

12.98%

Investment Solutions (Conserver)

6.65%

7.93%

14.74%

14.49%

9.86%

OMIG MacroSolutions (Profile Capital)

8.17%

9.73%

12.70%

16.99%

9.75%

Old Mutual Multi Managers Absolute Balanced Fund

11.62%

9.03%

19.84%

18.10%

10.30%

STANLIB Multi-Manager Defensive Balanced Fund

10.02%

13.31%

Rank

Allan Gray Life Global Stable Portfolio

2011

Portfolio

10.93%

6.84%

6.86%

9.72%

8.25%

4.75%

6.94%

5.21%

7.40%

4.60%

Allan Gray

Coronation

Foord Domestic Balanced

Investec Asset Management

Investment Solutions Performer Local

Oasis

Pan-African Asset Management

Prescient Domestic Balanced

Prudential Domestic Balanced

Stanlib AM

5.67%

4.60%

Number of participants

7.15%

6.37%

7.13%

6.02%

Average

Lower Quartile

Lowest

7.17%

7.83%

6.94%

Upper Quartile

Median

2.67%

8.00%

8.34%

6.33%

10.93%

Rank

Lower volatility= higher ranking

5.93%

7.43%

5.67%

7.75%

8.34%

7.17%

8.28%

6.66%

8.26%

7.06%

6.07%

Range

Highest

Statistics

6.99%

Absa Asset Management Domestic Balanced

Volatility

-2.36%

-1.01%

0.36%

0.11%

1.11%

4.12%

6.49%

-2.36%

0.68%

-0.89%

-1.14%

-1.72%

1.54%

3.00%

0.10%

0.11%

4.12%

0.54%

Active Return

Tracking Error

Sharpe Ratio

1.33%

2.40%

2.96%

3.23%

3.29%

5.71%

4.38%

2.28%

1.52%

5.71%

3.33%

3.50%

1.33%

3.25%

3.23%

3.25%

2.52%

2.69%

-33.68%

-9.56%

6.45%

4.46%

17.01%

61.35%

95.03%

-0.34

0.11

-0.24

0.04

-0.22

0.23

0.38

0.04

0.03

0.61

0.07

10.10%

10.82%

12.02%

12.55%

12.82%

13.93%

3.84%

10.60%

12.76%

11.33%

10.10%

12.85%

12.84%

13.93%

12.50%

12.60%

10.65%

Rank

1.84%

6.33%

6.73%

7.31%

7.48%

7.74%

8.17%

Rank

Lower volatility= higher ranking

6.41%

7.67%

7.57%

8.17%

7.09%

8.08%

7.39%

7.77%

6.61%

6.33%

Volatility

-0.71%

-0.48%

0.74%

1.33%

1.52%

2.39%

3.10%

-0.71%

1.45%

-0.67%

-0.53%

1.55%

1.53%

2.39%

1.20%

1.50%

-0.34%

Active Return

3 Year Return (p.a.)

Rank

Calculated on 5 year Performance Returns 5 Year Return (p.a.)

Calculated on 3 year Performance Returns

Investment Data to the end of December 2016 - Volatility vs Return

1.17%

2.33%

2.51%

2.71%

2.99%

3.25%

2.07%

2.42%

1.55%

2.77%

3.07%

1.17%

3.15%

3.25%

2.77%

2.65%

2.30%

Tracking Error

0.70

0.87

0.69

0.49

0.95

0.83

1.06

0.82

0.98

0.72

Sharpe Ratio

SECTION 2

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

Objective: The portfolios are balanced (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.

8.06%

10.92%

9.30%

9.51%

7.77%

Coronation (Managed)

Investec Asset Management Managed

Investec Opportunity Fund

OMIG MacroSolutions (Profile Edge28)

Old Mutual Multi Managers Aggressive

9.58%

9.28%

8.37%

7.77%

Upper Quartile

Median

Average

Lower Quartile

Lowest

10.11%

Highest

Number of participants

3.15%

10.92%

Range

Statistics

10.30%

Allan Gray Life Global Absolute Portfolio

Rank

4.55%

5.31%

5.94%

5.99%

6.37%

7.55%

Lower volatility = higher ranking

6.41%

6.26%

5.72%

5.17%

7.55%

4.55%

Volatility

-2.42%

-1.98%

0.64%

1.21%

3.02%

3.35%

-1.98%

-2.42%

3.02%

1.21%

3.35%

Active Return

Tracking Error

Sharpe Ratio

2.84%

3.09%

3.98%

3.65%

4.63%

5.71%

3.09%

5.71%

3.65%

2.84%

4.63%

0.18

0.26

0.49

0.47

0.73

0.84

0.18

0.47

0.84

0.19

0.81

10.75%

13.00%

13.75%

14.57%

15.04%

15.43%

4.69%

13.36%

14.34%

12.87%

15.43%

15.28%

10.75%

Rank

4.78%

6.08%

6.58%

6.71%

7.09%

8.17%

Lower volatility = higher ranking

7.04%

7.11%

5.98%

6.39%

8.17%

4.78%

Volatility

-2.21%

-1.84%

0.43%

1.25%

2.21%

2.77%

-2.21%

1.25%

2.21%

2.77%

-1.84%

Active Return

3 Year Return (p.a.)

Rank

Calculated on 5 year Performance Returns 5 Year Return (p.a.)

Calculated on 3 year Performance Returns

Investment Data to the end of December 2016 - Volatility vs Return

2.57%

2.98%

3.95%

3.22%

5.08%

5.88%

2.98%

5.88%

3.22%

2.57%

5.08%

Tracking Error

0.97

1.05

1.15

1.13

1.15

1.46

1.03

1.16

1.13

1.46

1.12

0.97

Sharpe Ratio

MANAGER WATCH™ SURVEY

Global Balanced Manager Watch™ Survey – Dynamic Risk

Objective: The portfolios are balanced (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 (more than 5 years) capital returns. This may lead to volatility of returns in the short term (less than one year).

8.08%

7.24%

9.95%

9.02%

7.29%

8.22%

9.00%

8.21%

7.63%

7.76%

9.10%

7.96%

8.05%

5.05%

9.02%

11.49%

6.01%

Coronation

Foord Global Balanced

Investec Asset Management

Investment Solutions (Performer)

Investment Solutions (Spectrum)

MMI - Global Balanced

Momentum MoM Enhanced Factor 7

Nedgroup Investments XS Diversified Fund of Funds

Oasis

Old Mutual Multi Managers Managed

Old Mutual Multi-Managers Inflation Plus 5-7%

OMIG MacroSolutions

OMIG MacroSolutions (Profile Balanced)

Prescient Global Balanced

Prudential Balanced

PSG Balanced Fund

Stanlib AM

6.15%

5.17%

7.63%

4.64%

Lower Quartile

6.80%

Average

Lowest

5.78%

6.87%

Median

6.06%

5.95%

6.52%

9.02%

Upper Quartile

7.49%

6.86%

11.49%

Number of participants

Rank

Lower volatility = higher ranking

5.17%

6.68%

5.78%

5.26%

5.87%

5.95%

6.15%

6.52%

6.67%

5.36%

7.18%

6.15%

5.50%

5.79%

6.33%

6.53%

7.49%

5.80%

Highest

5.18%

Range

Statistics

4.64%

Cadiz Global Balanced

10.17%

Allan Gray

7.82%

Absa Asset Management Global Balanced

Volatility

0.52%

-3.26% 21

1.66%

2.86%

2.50%

3.71%

6.56%

2.32%

6.56%

1.19%

5.44%

2.25%

1.76%

5.77%

1.45%

2.68%

5.17%

1.71%

1.52%

0.52%

1.27%

2.71%

3.88%

2.86%

3.66%

2.71%

1.77%

-0.81%

0.05%

-0.07%

0.48%

4.34%

-1.67%

4.34%

1.12%

-0.81%

-1.15%

-0.71%

-1.14%

-0.13%

0.47%

-2.80%

-0.56%

0.33%

0.48%

1.19%

2.06%

-0.45%

0.19%

-3.26%

3.22%

-0.07%

-0.34

0.16

0.24

0.25

0.41

0.73

-0.11

0.73

0.42

-0.29

0.25

0.23

0.41

0.18

0.16

0.30

0.34

0.26

0.13

0.42

0.53

0.10

0.20

-0.34

0.58

0.24

8.07%

12.76%

11.10%

11.42%

14.66%

16.07%

8.00%

12.67%

15.49%

14.69%

8.07%

12.83%

12.79%

16.07%

13.27%

12.57%

14.88%

12.94%

12.81%

14.46%

14.68%

13.94%

14.65%

10.48%

14.00%

11.92%

Rank

6.03%

6.43%

6.69%

6.58%

6.88%

7.80%

Lower volatility = higher ranking

6.15%

6.51%

6.68%

6.42%

6.64%

6.52%

6.84%

7.02%

6.03%

7.25%

6.62%

6.43%

6.70%

7.45%

7.28%

7.80%

6.54%

6.09%

Volatility

5 Year Return Rank (p.a.)

Sharpe Ratio

Calculated on 5 year Performance Returns Tracking Error

3 Year Return Rank (p.a.) Active Return

Calculated on 3 year Performance Returns

Investment Data to the end of December 2016 – Volatility vs Return

-2.75%

-0.25%

0.75%

1.02%

1.46%

5.34%

-0.24%

2.98%

1.46%

2.36%

-1.27%

-0.64%

5.34%

0.79%

1.67%

-0.12%

-0.28%

0.32%

1.27%

1.45%

1.26%

1.42%

-2.75%

1.41%

-1.31%

Active Return

0.51%

1.66%

2.98%

2.29%

3.56%

6.57%

2.21%

6.34%

1.20%

6.49%

2.14%

1.75%

6.57%

2.29%

5.93%

1.56%

1.43%

0.51%

1.27%

2.79%

3.51%

2.55%

3.61%

2.68%

1.84%

Tracking Error

0.31

1.02

1.07

1.08

1.21

1.46

1.07

1.44

1.29

0.31

1.01

1.03

1.46

1.02

1.07

1.21

1.03

1.04

1.25

1.15

1.08

1.10

0.67

1.21

0.96

Sharpe Ratio

SECTION 2

Global Balanced Manager Watch™ Survey – Best Investment View Risk

Objective: The portfolios are balanced (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.

10.93%

6.84%

6.86%

9.72%

8.25%

4.75%

6.94%

5.21%

7.40%

4.60%

Allan Gray

Coronation

Foord Domestic Balanced

Investec Asset Management

Investment Solutions Performer Local

Oasis

Pan-African Asset Management

Prescient Domestic Balanced

Prudential Domestic Balanced

Stanlib AM

4.60%

Number of participants

Lowest

7.15%

7.13%

6.02%

Average

7.17%

6.94%

Median

5.67%

6.37%

8.00%

7.83%

Upper Quartile

8.34%

6.33%

10.93%

Lower Quartile

Rank

Lower volatility = higher ranking

5.93%

7.43%

5.67%

7.75%

8.34%

7.17%

8.28%

6.66%

8.26%

7.06%

6.07%

Highest

Volatility

Range

Statistics

6.99%

Absa Asset Management Domestic Balanced

Rank

-2.36%

-0.63%

0.43%

0.11%

1.11%

4.12%

-2.36%

0.68%

-0.89%

-0.38%

-1.72%

1.54%

3.00%

0.10%

0.11%

4.12%

0.54%

1.33%

2.40%

2.91%

2.75%

3.25%

5.71%

2.28%

1.52%

5.71%

2.75%

3.50%

1.33%

3.25%

3.23%

3.25%

2.52%

2.69%

-0.34

-0.10

0.06

0.04

0.17

0.61

-0.34

0.11

-0.24

0.04

-0.22

0.23

0.38

0.04

0.03

0.61

0.07

10.10%

10.82%

12.02%

12.55%

12.82%

13.93%

3.84%

10.60%

12.76%

11.33%

10.10%

12.85%

12.84%

13.93%

12.50%

12.60%

10.65%

Rank

6.33%

6.73%

7.31%

7.48%

7.74%

8.17%

Lower volatility = higher ranking

6.41%

7.67%

7.57%

8.17%

7.09%

8.08%

7.39%

7.77%

6.61%

6.33%

Volatility

-0.71%

-0.30%

0.79%

1.33%

1.52%

2.39%

-0.71%

1.45%

-0.20%

-0.53%

1.55%

1.53%

2.39%

1.20%

1.50%

-0.34%

Active Return

Calculated on 5 year Performance Returns Sharpe Ratio

5 Year Return (p.a.)

Tracking Error

3 Year Return (p.a.)

Active Return

Calculated on 3 year Performance Returns

Investment Data to the end of December 2016 - Volatility vs Return

1.17%

2.31%

2.47%

2.53%

2.99%

3.25%

2.42%

1.55%

2.36%

3.07%

1.17%

3.15%

3.25%

2.77%

2.65%

2.30%

Tracking Error

0.70

0.87

0.69

0.49

0.95

0.83

1.06

0.82

0.98

0.72

Sharpe Ratio

MANAGER WATCH™ SURVEY

Global Balanced Manager Watch™ Survey – Conservative Risk

Objective: The portfolios are balanced (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 (less than one year) capital loss while targeting long-term (more than five years) capital growth.

SECTION 2

SA and Global Manager Watch™ – Volatility vs Return Volatility vs Return Scatterplot – SA Best Investment View 3 years ended 31 December 2016 14.80% 13.30% 11.80%

Return (p.a.)

Allan Gray

10.30% Investec Asset Management

8.80%

Investment Solutions Performer Local Foord Domestic Balanced

7.30%

Coronation

Absa Asset Management Domestic Balanced

5.80%

Pan-African Asset Management Prudential Domestic Balanced

Prescient Domestic Balanced

Oasis

Stanlib AM

4.30% 2.80% 4.80%

5.30%

5.80%

6.30%

6.80%

7.30%

7.80%

8.30%

8.80%

9.30%

Volatility (p.a.) (standard deviation)

Volatility vs Return Scatterplot – Global Best Investment View 3 years ended 31 December 2016 22.20% Nedgroup Investments XS Diversified Fund of Funds Absa Asset Management Global Balanced SIM Global Unique Prudential Balanced

17.20%

Return (p.a.)

OMIG MacroSolutions Investment Solutions (Performer) Allan Gray Old Mutual Multi Managers Inflation Plus 5-7

12.20%

PSG Balanced Fund Old Mutual Multi Managers Managed Momentum MoM Enhanced Factor 7 Coronation

7.20%

Oasis Foord Global Balanced Investec Asset Management MMI – Global Balanced OMIG MacroSolutions (Profile Balanced)

STANLIB AM Prescient Global Balanced

Cadiz Global Balanced Investment Solutions (Spectrum)

2.20% 4.50%

5.50%

6.50%

7.50%

8.50%

9.50%

10.50%

Volatility (p.a.) (standard deviation)

MANAGER WATCH™ SURVEY

Global Balanced Manager Watch™ – Conservative and Dynamic – Volatility vs Return Volatility vs Return Scatterplot – Global Conservative 3 years ended 31 December 2016 11.00%

10.00%

Return (p.a.)

Allan Gray Life Global Stable Portfolio

9.00% Investec Cautious Managed Fund Old Mutual Multi Managers Absolute Balanced Fund

8.00% OMIG Macro Solutions (Profile Capital)

7.00% Investment Solutions (Conserver)

6.00% 2.60%

3.10%

3.60%

4.10%

4.60%

5.10%

5.60%

Volatility (p.a.) (standard deviation)

Volatility vs Return Scatterplot – Global Dynamic 3 years ended 31 December 2016 17.00%

Return (p.a.)

15.00% 13.00% Investec Asset Management Managed

11.00%

Allan Gray Life Global Absolute Portfolio OMIG MacroSolutions (Profile Edge28)

9.00%

Investec Opportunity Fund

Coronation (Managed)

Old Mutual Multi Managers Aggressive

7.00% 5.00% 4.00%

5.00%

6.00%

7.00%

Volatility (p.a.) (standard deviation)

8.00%

9.00%

SECTION 2

Global and SA Balanced Manager Watch™ Survey – Asset Allocation

Average Asset Allocation of Global Best Investment View as at 31 December 2016 100%

90%

Global 23.38%

23.60%

0.89%

0.74%

70%

13.67%

12.06%

60%

0.36% 2.91%

0.13% 2.97%

11.31%

12.43%

80%

50%

26.46%

25.98%

25.23%

24.12%

SA Other SA Cash

0.78%

1.81%

14.68%

14.52%

0.41% 2.35%

0.00% 4.10%

11.07%

2.07% 1.69%

SA Real Estate 13.20%

16.83% 0.00% 4.23%

12.12%

0.06% 5.05% 13.84%

12.24%

40%

SA Listed Property SA Bonds SA Equities

30% 47.47%

48.07%

44.26%

41.48%

36.99%

41.67%

2011

2012

2013

2014

2015

2016

20% 10% 0%

Average Asset Allocation of SA Best Investment View as at 31 December 2016 100%

1.16%

2.72%

1.46%

1.87%

1.92%

1.87%

SA Other

90%

17.98%

15.67%

18.33%

18.91%

18.28%

15.78%

SA Cash

80%

0.66% 2.54%

0.22% 3.60%

1.04% 2.61%

0.00% 4.51%

0.00% 4.87%

0.00% 4.83%

SA Real Estate

70%

16.01%

15.69%

14.68%

14.80%

17.42%

17.71%

SA Listed Property SA Bonds

60% SA Equities 50% 40% 61.65%

62.10%

61.88%

59.91%

57.50%

59.80%

2011

2012

2013

2014

2015

2016

30%

20% 10% 0%

MANAGER WATCHâ&#x201E;˘ SURVEY

Composite Dispersion of SA Balanced Manager WatchTM Managers SA Best Investment View Allan Gray

0.32%

Coronation Domestic

0.21%

Foord Segregated Domestic

0.78%

Investec Domestic Balanced

0.14%

Prudential Domestic Balanced

0.08%

0.00%

0.20%

0.30%

0.40%

Median Composite Return

0.50%

0.60%

0.70%

0.80%

0.90%

Minimum Return

Maximum Return

Allan Gray

12.75%

13.73%

13.13%

0.32%

0.24%

0.14%

Coronation Domestic

6.32%

7.10%

6.96%

0.21%

0.11%

0.07%

Foord Segregated Domestic

3.12%

5.61%

4.56%

0.78%

0.09%

0.56%

Investec Domestic Balanced

4.84%

5.25%

5.01%

0.14%

0.36%

0.28%

Prudential Domestic Balanced

9.53%

9.76%

9.57%

0.08%

SA Best Investment View

* Data not available.

0.10%

Composite Dispersion (1yr)

Composite Dispersion (3yrs)

1.00%

Composite Dispersion (5yrs)

SECTION 2

Composite Dispersion of Global Balanced Manager WatchTM Managers Global Best Investment View 0.59%

Allan Gray 0.07%

Coronation

0.91%

Foord Global Balanced 0.40%

Investec Asset Management

1.94%

Oasis 0.15%

OMIG MacroSolutions

0.10%

Prudential Global Balanced

0.27%

SIM Global Unique

0.42%

Stanlib AM

0.00%

Global Best Investment View Allan Gray

0.50%

1.00%

1.50%

2.00%

2.50%

Minimum Return

Maximum Return

Median Composite Return

Composite Dispersion (1yr)

Composite Dispersion (3yrs)

Composite Dispersion (5yrs)

7.01%

9.50%

7.79%

0.59%

0.22%

0.10%

Coronation

3.27%

3.58%

3.42%

0.07%

0.08%

Foord Global Balanced

-1.59%

1.65%

0.24%

0.91%

0.65%

0.72%

Investec Asset Management

1.20%

2.90%

1.57%

0.40%

0.36%

0.07%

Oasis

2.13%

7.68%

3.58%

1.94%

0.55%

0.46% 0.05%

OMIG MacroSolutions

3.37%

3.70%

3.38%

0.15%

0.07%

Prudential Global Balanced

6.30%

6.64%

6.46%

0.10%

SIM Global Unique

6.23%

6.89%

6.44%

0.27%

0.29%

0.75%

Stanlib AM

-0.42%

0.75%

0.40%

0.42%

6.01%

12.66%

* Data not available.

MANAGER WATCH™ SURVEY

Introducing

Phi

What trustees need to understand about the ‘hidden variable in investment performance’

THE HIDDEN VARIABLE We know it’s wrong but how do we stop ourselves? When it comes to assessing investment potential, how do we shift our focus from an obsession with short-term performance to whether we’re meeting our specific investment goals?

We aren’t the only ones trying to grapple with this challenge. The CFA Institute has placed such a priority on changing this mindset in the industry that it has formed a collaboration with the State Street Center for Applied Research to address the issue. The CFA Institute (Charter Financial Analyst) sets the professional standards and code of ethics for investment management practitioners globally and broadly engages other finance professionals through their interactions with the investment management industry. Over 120 000 investment and finance professionals globally have passed the vigorous set of exams set by the institute and now hold the designation CFA. The result of the collaboration is a powerful discussion around what should matter most for delivering investment excellence and how we should assess it. We have been loosely involved in this discussion and, as such, felt it was worth sharing some of the preliminary but promising results of this work.

What follows is a discussion of: ■■ what the problem is and how it came about ■■ how we need to shift our focus: phi, the hidden variable behind performance ■■ whether investing is a business or profession ■■ how we stimulate excellence in managers ■■ the four potential models for an enhanced phi score: • the business model of the asset manager (including how talent is attracted, developed and compensated), how profits are shared, how costs are conceptualised and how the business is transformed • the product design • how and where the assets are invested and by whom • the mandate taker versus the mandate giver ■■ how relevant phi is to South African asset managers and trustees.

SECTION 2

What the problem is and how it came about In December 2014, The State Street Center for Applied Research published a powerful assessment of the asset management industry. Titled The Folklore of Finance, it argued that: ■■ Just because the industry is profitable, doesn’t mean it’s successful. Not only were asset managers not producing alpha – the study argued that only 14% of asset managers were delivering against this criterion – but, more importantly, investors were not achieving their long-term goals, which were defined as meeting liabilities, meeting income or cash flow requirements, managing against loss of capital or deriving inflation-beating growth. ■■ The heart of the problem could be found in the ‘folklore’ that governs both how investment professionals behave as well as how investors assess their managers’ worth. This is a folklore that obsesses with past performance and peer outperformance and tends to attribute any success on either front to manager skill and any failure to the markets.1 ■■ The net effect has been an industry grappling with investor distrust, investor dissatisfaction, and increasing disintermediation. The 2015 Hot Topics investment seminar examined in detail why past performance had come to dominate manager selection, despite our understanding that it provided little promise about future performance.

Much was owed to: ■■ the rapid democratisation of the market in the 1980s to the retail investor ■■ the limits of technology to provide decision-making support that would allow individuals to select mutual funds (unit trusts) that could best meet their investment goals. In many ways, past performance was the only criterion available for that choice and so became well entrenched in the industry and with investors. Over the past 30 years, there have been important advances in our understanding about investments. The most important have been around what drives performance outcomes and how tenuous a connection there is between purported manager skill and manager performance outcomes.2 Essentially, we created a ‘cult of performance’ where managers who perform well are deemed to have done so because of intrinsic skills and managers who fail do so because of extrinsic factors. While neither presumption is correct, marketing material for asset managers often highlights performance as the ultimate determinant.

When you outperform Emotions and courage to go against markets

The investment process of my employer

Experience and analytical process

My psychological and physical health

ATTRIBUTED TO INTERNAL FACTORS

When you underperform

Performance of the market generally

My clients’ expectations

Senior management of companies or funds I invest in

ATTRIBUTED TO EXTERNAL FACTORS

Source: The folklore of finance, State Street Center for Applied Research

1 State Street Center for Applied Research. 2014. The folklore of finance: How beliefs and behaviors sabotage success in the investment management industry. www.statestreet.com. Accessed 24 February 2017. 2 See works by Michael Mauboussin. The success equation: Untangling skill and luck and Nassim Taleb, Fooled by randomness for more complete discussions here.

MANAGER WATCH™ SURVEY

performance, irrespective of whether it was because of market conditions or manager skill. And yet, just as a manager’s contract was terminated, changes in market structure and market drivers would often reverse those performance fortunes.3 The travesty was that asset management businesses would fail on the back of these uninformed decisions.

The consequences of this unfortunate folklore go beyond the simple inadequacy of criteria for manager selection. Over the past decade, several well-documented studies concluded that much of the frenetic activity around manager hiring and firing is destroying rather than adding value over time for their clients. The culprit: decision-making based on poor

In the final analysis, the real loss would be a loss of confidence in the industry. Whether it be asset managers, consultants and advisers, or even solution providers, the growing concern from clients was whether their needs and concerns came first.

Both providers and clients believe providers fail to act in the clients’ best interest

Provider

Client

Providers offer products in the firm’s best interest

PERCEPTION

(Percentage of survey respondents, rank ordered by total)1

Strongly agree

Neutral

Strongly disagree

Providers offer products in the firm’s best interest (Percentage of survey respondents, rank ordered by total)1

Strongly disagree n = 762 0%

10%

20%

30%

40%

50% Americas

n = 762

60%

0% Europe, Middle East and Africa

10%

20%

30%

40%

50%

60%

Asia Pacific

Source: IBM Global Business Services, Towards transparency and stability: Building a new financial order

By contrast, in the Center for Applied Research and The CFA Institute study, 62% of investment professionals believed that their organisations were placing their own interests first while, tellingly, only 51% of their retail clients believed that financial service companies were placing their interests first.

How we need to shift our focus: phi – the hidden performance variable Both asset management and consulting are powerful tools for achieving a specific end but only when we understand how to correctly use and assess them. The good news is that advances in both technology and our understanding about performance drivers now mean that significantly more can be done to identify what specific client needs are and how to develop solutions that address them. This is less about such issues as decisions around active or

passive but more to do with whether we have the right expectations around the true value of investing and what it can realistically achieve. At both the 2015 and 2016 Hot Topics investment seminars, we highlighted the fact that when investment strategies are employed to address well-defined and articulated investment goals for clients, these strategies have a far higher probability of meeting the required investment goals.

It also means that solving for client needs could create as much demand for active strategies (for example identifying companies where managers have responsible and sustainable business models or dynamically shifting asset mixes to meet specific outcomes in variable market conditions) as they might have for passive strategies (for example smart beta, low-cost exchange traded funds and so on).

3 Jenkinson, T, Jones, H & Martinez, JV. 2013. Picking winners: Investment consultants’ recommendations of fund managers. Oxford: Oxford University.

SECTION 2

The bottom line is that if we could shift the investment industry’s focus away from chasing short-term returns to meeting client-specific investment goals, we could have a significant impact on clients’ assessment of the value provided by the industry. This is exactly the issue that The CFA Institute and the State Street Center for Applied Research focused on. Their quest was to determine what that hidden variable might be that would change both the outcomes for the client and the perceptions of the industry. The result of their research was the identification of a measurable factor that they defined as phi. Phi is distinctly different from the short-term performance motivation or asset-gathering focus of our industry’. As their paper, Discovering phi, Motivation as the hidden variable of performance, defines it, phi is about ‘the motivation forces of: ■■ purpose ■■ habits ■■ incentives that govern (the managers’) behaviours and actions’.4 For the manager who gets these three factors right, the pay-off is significant.

When: ■■ purpose translates into client focus, ■■ habit translates into a culture of meeting client needs, and ■■ incentives translate into rewards that are granted on the basis meeting client requirements, then the potential to change perceptions of excellence are significant. It’s not surprising then that the team termed phi the ‘hidden variable’. As in quantum mechanics, a hidden variable is one that, without it, the system would be incomplete. Phi clearly provides the much-needed missing element for giving meaning to investing. What is it about phi that produces such an improvement in outcomes? The study’s insights draw from: ■■ motivational theory ■■ the in-depth interviews the team conducted with more than 200 global industry leaders ■■ the survey they conducted of 6 938 investors, investment providers, government officials and regulators across 20 countries. Much of the motivational thinking in the study comes from academics. But perhaps it’s best summed up in Daniel Pink’s book on motivation,

Applied

Phi

A one-point increase in phi is associated with:

28%

greater odds of excellent organisational performance

55%

greater odds of excellent client satisfaction

57%

greater odds of excellent employee engagement.

4 State Street Center for Applied Research. 2016. Phi – The hidden performance variable. www.statestreet.com. Accessed 24 June 2017. 5 Pink, D. 2009. Drive: The surprising truth about what motivates us. New York: Riverhead Books. p. 219 6 Ibid, p. 220.

Drive: The surprising truth about what motivates us. In Pink’s own recap of the arguments, he states: Our current business operating system, which is built around external, carrot-and-stick motivators, doesn’t work and often does harm. We need an upgrade ... [A better] approach has three essential elements: 1. Autonomy. The desire to direct our own lives 2. Mastery. The urge to make progress and get better at something that matters 3. Purpose. The yearning to do what we do in the service of something larger than ourselves.5 How well do the current business models and incentives in financial services reinforce those essential elements? When asset managers are given substantial bonuses to outperform their peer or specific benchmarks or to simply increase assets under management, these types of extrinsic or externally motivated rewards fail because: ■■ achieving these goals is largely out of the control of an asset manager. As such, they fail in fulfilling our sense of mastery or autonomy ■■ these rewards tend to ignore much of the third element of drive (a purpose that is greater than self-interest) and part of the second element of drive (an urge to get better at something that matters) ■■ they make the individual feel less autonomous ■■ they emphasise the extrinsic rewards at the expense of the intrinsic rewards that are a powerful factor in motivation. Employing extrinsic monetary rewards on these bases may be fine if the task at hand is routine and rule based, but it’s an absolute deterrent for professionals when creativity, self-determination and a commitment that goes beyond a simple nine-to-five obligation is in order.6 The great value of a reward framework that capitalises on intrinsic motivation, or motivations that bolster an individual’s sense of purpose and value, is that it stimulates and sustains investment professionals who see their careers as vocations (higher callings) and not simply jobs. These professionals see themselves as fiduciaries first and not profit drivers for their businesses.

MANAGER WATCH™ SURVEY

Investment professional imperative: business success or fiduciary? Making this distinction is not simply an exercise in semantics. It gets right to the heart of the trust issues with financial services. Consider how the concept of professional has evolved over the past few decades. Doctors, lawyers, consultants, accountants and, for the sake of this exercise, asset managers were all people who were schooled and skilled in areas where the layperson did not have the time, interest or talent to develop these essential capabilities. Professionals are experts who offer this knowledge on behalf of their clients: they represent their clients’ interests in disputes, act as fiduciaries in financial affairs, or provide them with advice and guidance that best advances their personal health, wealth and mental well-being. Ever so subtly, these professions morphed into serious businesses. What is the distinction here? The following table7 highlights the key differences:

Basis for comparison

Business

Professional

Meaning

Business is an economic activity concerned with the production or purchase and sale of merchandise and rendering of services with the purpose of earning profit

Profession is a form of economic activity, requiring special skills, knowledge and expertise to be applied in one’s occupation

Basic objective

Earning profit

Rendering services

Establishment

On the decision of entrepreneur and fulfilment of legal formalities

Membership of the respective professional body and certificate to practise

Qualification

No minimum qualification

Specialised knowledge of study

Capital

Required according to the size and nature of the business

Limited capital is required

Reward

Profit

Professional fee

Code of conduct

No prescribed code of conduct

Follow the code of conduct prescribed by the professional body

Products and services are advertised to increase sales

Advertisement is prohibited in terms of the professional code of conduct

At first it was argued that professional services would benefit all stakeholders by becoming more ‘business-like’. To begin with, being more cost conscious would surely be in the interests of all participants. Focusing on developing greater efficiencies, fewer redundancies and better allocation of time and resources were all considered steps that would enhance the quality of the service delivery while introducing greater cost control.

The question worth considering is whether the pendulum shift from a professional imperative to a business imperative may have swung too far. Trust in the financial services industries and confidence in the ‘value-add’ of asset management professionals is being challenged.8 Concerningly, equally poor ratings are being given to lawyers, accountants, consultants and now, increasingly doctors – all very much for the same reasons.9 However, this is beyond the scope of

this Hot Topics seminar. At the heart of this downward perception spiral is a question mark about whose interests are served first in the ‘business’ of these professional services. Charles Ellis, the managing partner of Greenwich Associates, addresses the dynamic of business versus profession in his seminal article, Will business success spoil the investment management profession? The key issues are summarised on the next page.10

7 Adapted from Surbhi, S. 2016. Difference between business and profession. http://keydifferences.com/difference-between-business-and-profession.html. Accessed 20 February 2017. 8 McKinsey & Company, The asset management industry: Outcomes are the new alpha, October 2012. 9 For further discussion on this point, see Visser,W and Sunter, C. 2002. Beyond reasonable greed, Tafelberg: Human & Rousseau. 10 Ellis, C. 2001, Will business success spoil the investment management profession? The Journal of Portfolio Management. Spring.

SECTION 2

The rhythms of a business and the rhythms of a profession do differ; the appropriate measurement intervals differ: business intervals are short, while professional investment intervals are long. Business managers will know they should cut costs when the stock market goes seriously down and asset-based fees are reduced. Investment professionals, mindful of the longer term imperative to protect the professional capacity to continue producing superior value, would know better than to cut costs that assure that they can deliver good work. Business practitioners will want to sell what clients want to buy. But investment professionals know that few investors will want to buy at cyclical lows, or sell after a big run-up, and that what may seem compelling in the short run can be quite harmful in the long run. So while business professionals focus on not making operational mistakes and maximizing current operating profits – and sell what clients think they want to buy – investment professionals will want to sell what clients will want to own in the future, even when this means recommending currently unpopular things that can prove to be very right for long-term investors.

One can begin to appreciate where the concept of phi is compelling. For consultants, trustees and indeed the State Street Center for Applied Research, measuring phi allows us to determine how aligned the asset manager’s interests and ambitions are with the investor’s. The appeal here is that, while alpha (above-market performance) and beta (market performance) may well be beyond managers’ control, phi, mostly, is in a firm’s control and can be readily cultivated. A high phi score suggests that the manager or investment firm could be well suited as a component of a goals-based solution. For The CFA Institute, promulgating phi provides an even more pressing pay-off: a focus on phi reinvigorates the notion of investing as a profession, a vocation, with a clear code of conduct.

MANAGER WATCH™ SURVEY

How do we stimulate excellence with investment professionals?

32%

11 State Street Center for Applied Research. 2016. Discovering phi: Motivation as the hidden variable of performance. www.statestreet.com. Accessed 24 February 2017. p. 16. 12 Fender, R. 2016. CFA Institute financial newsbrief poll.

1% Media

Friends or family

9% Colleagues at your firm in similar roles

This is clearly why introducing a concept such as phi into our measurement criteria, not just for manager selection, but for all the stakeholders in the delivery continuum (including boards of trustees), is such a powerful concept. It allows us to quietly nudge all stakeholders towards behaviours, values and incentive programmes that have a positive effect on the probability of decent outcomes for the investor.

18%

By contrast, a Newsbrief poll of 679 respondents from The CFA Institute identified client recognition as the most meaningful form of recognition for these managers.12 Clearly, this reflects either a misalignment or a missed opportunity by industry management.

None, the internal satisfaction matters most

It’s probably less about rewards being for controllable outcome and more about penalties being for uncontrollable ones.

PERCENTAGE OF RESPONDENTS

Colleagues at your firm who are senior to you

Perhaps most concerning is that 92% of investment professionals were demotivated in some way. This brings up important questions: ■■ How should we account for this? ■■ Has there been inadequate mentoring around an investment professional’s purpose? ■■ Do rewards not recognise what is and isn’t in professionals’ control?

In reference to risks: ■■ around 50% worry about career risk and, of this group, the majority (52%) believed that 18 months of underperformance could result in their being fired ■■ 36% were concerned that acting in the best interests of clients might pose a career risk.11

Whose recognition is most meaningful to you when you accomplish something in your job?

37%

This lack of client focus owes much to the leadership style prevalent in the industry. Of all responding investment professionals: ■■ only 15% strongly felt their leaders articulated a compelling vision and purpose ■■ only 41% believed their leaders openly articulated values and beliefs to employees.

For example, in reference to rewards: ■■ only 44% considered their compensation structure fair ■■ 40% believed it was transparent ■■ only 34% saw it as controllable.

Clients

When the Center for Applied Research and the CFA team examined the issue of motivation in the investment industry, their findings were not particularly encouraging. While 53% of the respondents indicated that they pursued this career because they were passionate about markets, only 28% were motivated by helping clients achieve their goals.

SECTION 2

Four potential models for an enhanced phi score Perhaps the most important aspect of the Center for Applied Research and CFA Institute study was its assessment of the industry now. How do those phi scores look? Disturbingly, only 16.62% of investment professionals achieved a high phi score. A high phi score meant that not only were their personal values and goals aligned with those of their organisations, but they were also in line with those of their clients. Conversely, 53.5% of those surveyed reflected either low or no phi scores. Although these numbers were based on an assessment of global asset managers and asset owners, South African managers were included.13 What we know about the research behind phi is that there is much that can be done to make its measurement more robust and tangible. Both the Center for Applied Research and The CFA Institute

would acknowledge this. To that end, we need to understand what kinds of investment firms appear to be winning in this space and what characteristics best capture the essence of phi.

Phi distribution sources for investment professionals N=1.486

There are potentially four broad areas that illustrate a focused alignment with client needs and values: 1. Business model of the asset manager, including: • how talent is attracted, developed and compensated • how profits are shared • how costs are conceptualised • transformation. 2. Product design 3. Choice of investments 4. Mandate taker versus mandate giver We look at each of these elements in more details below.

13.19% (0 no phi)

40.31%

(1 low phi)

29.88%

16.62%

(2 moderate phi) (3 high phi)

A CLIENT-ALIGNED BUSINESS MODEL

Many organisations will declare a client-focused purpose in their mission statement. Phi helps us identify whether the systems and structures are in place to translate mission into values, into behaviours, into habits and then outcomes.

For some time, there has been mounting evidence that the business model of a financial service company matters, both in deriving the best performance from a management team as well as ensuring the sustainability of that performance. As such, analysing an asset manager’s business model is hardly a new thought. Due diligences on asset managers invariably incorporate some element of business model scrutiny. For example, Mercer, a business partner of Alexander Forbes, applies the following four-factor framework of assessment of their fund managers:

IDEA GENERATION

■■ Philosophy ■■ Investment process ■■ Competitive advantage ■■ Resources

PORTFOLIO CONSTRUCTION

■■ Guidelines ■■ Style ■■ Risk ■■ Monitoring

IMPLEMENTATION

■■ Trading ■■ Turnover ■■ Capacity

BUSINESS MANAGEMENT

■■ Business structure ■■ Business environment or culture ■■ Remuneration ■■ Non-investment distraction

3 4

13 State Street Center for Applied Research. 2016. Discovering phi: Motivation as the hidden variable of performance. www.statestreet.com. Accessed 24 February 2017. p. 26. 14 Ibid p. 26.

MANAGER WATCH™ SURVEY

Under this framework, ‘business management’ refers to such considerations as how the business: ■■ effectively manages its people ■■ keeps its talent engaged, focused and not burdened by administrative distractions ■■ stimulates performance and accountability ■■ attracts and retains talent ■■ ensures that there is diversity of thinking and that different voices are heard in the decision-making process. Essentially, we want to get to the heart of the asset manager’s corporate culture.15 Similarly, various studies16, 17 focus our attention on the business models and belief systems of fund managers to assess a manager’s alpha generation potential. But in all three of the above cases, the central pretext for understanding a manager’s corporate culture and business model is in how these two dynamics support or reinforce the investment decision-making process. Phi, as characterised by the Center for Applied Research and The CFA Institute, brings a different dynamic to the table altogether. Through a series of interrogations with asset managers about how they are led, how they are rewarded and most importantly, how well their business models support delivery to specific client needs, the research delves into the motivational heart of the matter. The central thesis is that if these

three elements are all aligned around the higher purpose of fulfilling client needs, the impact this has on creating a sense of accomplishment and achievement for the investment professional translates directly to a more creative, focused, stable and higher quality outcome.

example. As one of the most successful asset managers in the world, with more than $3.6 trillion under management, Vanguard illustrates that putting clients first is simply good business. Their website says it all:

From a slightly different perspective, Phi also allows us to assess how effectively an asset manager or consultant’s business model manages the natural tension between clients’ and shareholders’ interests. In the words of Ben Carlson:

Unlike any other investment company, we are built to create wealth only for our clients – not for outside owners. That motivates us to keep costs low – currently less than one-fifth the industry average. This helps our fund investors to seek better earnings over time.19

The longer I work in the investment field, the more convinced I’ve become that organisational culture is far more important for lasting success than investment acumen. There are plenty of great investors and investment strategies; there are very few great investment organisations.18 Bottom line, business model probably trumps investment cleverness when it comes to providing sustainable excellence for investors. Which financial services company then would merit a high phi score with regard to business model? Probably Vanguard would represent an excellent

While Vanguard is perhaps the most vociferous proponent of passive investing, their phi score would owe less to their investment philosophy than to their business philosophy. It’s a business model that focuses first on the value that can be returned to clients, and not channelled off to shareholders or into maintaining costly overheads. But there are plenty of active managers who might also warrant attractive phi scores based on their business model. Bridgewater Asset Managers could be a case in point, again, because of its brand of client-centeredness.

15 Kinney, M and Armstrong, C. 2016. How diversity impacts Mercer’s manager ratings. Mercer Research Perspectives 4(3). December. 16 Koedijk, K and Slager, A. 2007. Investment beliefs: The importance of focus for an institutional investor. Working paper prepared for the ICPM, Netspar and Maastricht University Joint Discussion Forum. 17 Hsu, J, Ware, J & Heisinger, C. 2015. The folly of blame: Why investors should care about their managers’ culture. The Journal or Portfolio Management. Spring. 18 Carlson, B. 2017. The unfortunate realities of the institutional asset management business. http://awealthofcommonsense.com. Accessed 24 February 2017. 19 Vanguard home page, https://about.vanguard.com/.

SECTION 2

A CLIENT-FOCUSED PRODUCT DESIGN

In October 2012, McKinsey produced a report20 on the state of the asset management industry titled Outcomes are the new alpha. In the introduction, they state: Traditional means to achieve growth – namely beating a benchmark – are no longer proving sufficient and account for just over one-third of the average asset manager’s growth. More critical now is meeting a changing set of client needs, which increasingly means shifting from alpha to outcomes.

But, as McKinsey argues, while there is now a dramatic shift in the global investment industry towards solutionsbased products, it’s already apparent that becoming a winner in this space demands some equally dramatic shifts in the asset manager’s corporate culture. Already a sizeable portion of the industry who purport to offer solutions-based products are failing in achieving client alignment. As McKinsey points out: Few companies in this space have meaningfully reallocated their investment spend and fewer still have begun to retool their business models to meet the shift in client needs.21 The report goes on to identify where companies typically fail and what needs to be done:

■■ Firms often under-invest in understanding client needs and packaging them in a way that resonates with consumers and their advisers. ■■ Incentives for professionals are still based on beating relative-return benchmarks. ■■ There is an urgent need to develop ways to organise and compensate managers in relation to client outcome (for example, income generation, inflation protection and so on), rather than outperforming an asset class or a peer group. ■■ As much attention needs to be given to managing income drawdown requirements, capital protection, and the probability of meeting targeted outcomes as it is given to managing returns.22

What type of company would currently rank high on this score? One example might well be Dimensional Fund Advisers (DFA). DFA has applied a rigorously researched approach to identifying how to create individualised investment solutions that recognise that, in life’s financial journey, everyone, by necessity, needs to solve for their own path. These paths will vary significantly depending on: ■■ where the individual is trying to get to (and with how much certainty) ■■ over what period ■■ given their level of regular (or irregular) contribution ■■ market movements, which, over that journey, will dictate a constant recalibration of how to achieve those goals. From the perspective of product design, DFA managers appear to meet this objective.

Asset managers face capability and credibility challenges in their efforts to deliver investment solutions

RESPONDENTS

PERCENTAGE OF

Challenges faced in offering investment solutions and outcome-oriented products

57% 54% 55% 46% 43%

Distribution talent and capabilities for selling solutions. Investment talent and capabilities (for example packaging, multi-asset overlay construction). Solutions credibility among clients and consultants.

Ability to compete with ‘at-scale’ solutions-focused asset managers. Investment advisory solutions talent and capabilities.

“Sales really struggles with how to sell solutions products. They don’t know what risk parity or volatility management is.” “It is easy for me to hire solutions capabilities, but how do I make it a branded capability? Am I credible?” “The technology investment is very high. We need to catch up. The big firms have the scale and have made these investments over time.”

20 McKinsey & Company. 2012. The asset management industry: Outcomes are the new alpha. www.mckinsey.com. Accessed 24 February 2017. p. 2. 21 Ibid p. 35 22 Ibid. p. 31

MANAGER WATCH™ SURVEY

HOW, WHERE AND BY

WHOM THE ASSETS ARE INVESTED In October 2005, the United Nations Environment Program (UNEP) launched its Principles for Responsible Investment that currently guides our thinking around integrating economic, social and governance (ESG) oversight into our institutional investment process. Interestingly, the CRISA principles for sustainable institutional investing in South Africa are based on these principles. Much of the early thinking for this initiative was based on a study of global fiduciary conventions, produced by the law firm, Freshfields Buckhaus Deringer. Perhaps the most memorable paragraph of this study was embedded in the introduction of the paper:

Are the best interests of savers only to be defined as their financial interest? If so, in respect [of] which horizon? Are not the social and environmental interests of savers also to be taken into account? Indeed, many people wonder what good an extra percent or three of patrimony are worth if the society in which they are to enjoy retirement and in which their descendants will live deteriorates. Quality of life and quality of the environment are worth something, even if not, or particularly because, they are not reducible to financial percentages.

This was the paragraph that challenged the investment industry’s thinking around responsible investing. If asset managers were going to put clients’ needs first, then clients’ money needs to also be advancing these individuals’ social and community needs. One asset manager that embodies this aspect of alignment would be Al Gore’s Generation Asset Management (GAM). GAM looks at long-term sustainable investing as a client partnership. That’s a compelling positioning statement and certainly one that would elevate a phi score. The differentiator here is that this is not just ESG investing to make the world a better place but ESG investing because of what it can mean to the lives of clients.

In South Africa, responsible investing implies an additional concern: transformation. From a client-focus perspective, there is an aspect of this ambition that is completely consistent, particularly when it addresses the issues of skills development and wealth distribution in South Africa. The reality is that integrating new asset managers with limited track records is not the risk many trustees perceive. If the mandates are properly defined and the risk budgets clearly thought out, transformation could easily be fast-tracked. This can only be achieved though if trustees, consultants and asset managers give far more attention to measuring and monitoring risk.

SECTION 2

THE MANDATE TAKER VERSUS THE MANDATE GIVER

The concept of phi also introduces some interesting ideological debates for asset managers. One relates to the question whether the better manager is one who is a mandate giver or a mandate taker. For example, for some managers, their mandates are non-negotiable: clients get what they are offered by the manager with no negotiation. But designing goals-based solutions or venturing into new worlds of non-traditional asset classes or strategies often requires an iterative, cooperative effort where a manager tries to tailor what they offer to fit more neatly into an end product that demands a high level of consistency and predictability. The best way forward, then are mandates that are collaborative.

Consultants and clients are often loathe to make these kinds of requests of their managers and yet, some of the best investment outcomes come from such collaborations. In this regard, an asset manager who is prepared to partner would earn a higher phi score than an asset manager that says to clients, “This is who we are. Take it or leave it.” Possibly the best examples of this type of manager are ones who apply quantitative means to respond to very specific risk budgets or style and factor requirements. These types of managers can slot neatly into goals-based solutions. Similarly fixed income mandates that can be specifically tailored against credit,

derivative or infrastructure investment parameters provide further excellent examples of mandates that meet client needs. And along this line of thinking, the liability-driven investment strategy (LDI) and absolute return boutiques are other potential areas for development since they can be employed by clients to solve highly specific funding issues such as defined benefit funds, mining rehabilitation funds and medical aid funds. In this regard, South African managers have been offering these types of services for some time. Over the past ten years, South African examples would be the Satrix team at Sanlam, Old Mutual’s

infrastructure and alternative investment teams, the portable alpha strategy that Investec structured at a multi-manager’s request, and a myriad of other worthy examples. For the most part, these managers and their willingness to experiment with ideas on behalf of clients are the unsung high-phi managers in South Africa. This is one area of expansion in asset management that will hold out some of the most interesting development potential considering our phi focus. Watch this space.

MANAGER WATCH™ SURVEY

How relevant is phi to South African investors? We’ve only just begun to formulate meaningful ways to assess phi in the asset management world. No doubt, the criteria could be expanded considerably. But while we’ve presented four compelling aspects of phi that could provide a basis for measurement, in the first three cases, the examples we used are all non-South African entities. That leads us to an important question: should South African investors care about measuring manager phi? The answer is yes. In environments where investors are less sophisticated, and yet require even greater certainty about investment strategies that can deliver on specific funding needs, a focus on phi provides a powerful way for investors to identify which managers or financial service companies have a greater probability of catering to those needs. South Africans are gradually waking up to the power of outcomes-based investing. In that regard, phi is a powerful ally. That said, South Africa still fervently believes in the notion of asset manager as king. Indeed, the spectacular returns that several asset managers have been able to earn for their clients over the last twenty years suggests that that cult-like status may well be deserved. But there is a significant gap between published manager returns and the outcomes that individual investors have earned for themselves in this country. That gap is a function of a few factors: chopping and changing managers, costs, inappropriate expectations, inappropriate marketing and inappropriate advice. In that regard, the concept of phi holds out the potential for creating a whole new mindset around investing and the client-manager collaboration and focus that will be required for all stakeholders to come out ahead. So, how could trustees and management committees get better value for their members from both their investment managers and investment decisions? We believe that measuring phi allows us to shift the industry conversation away from pure performance and towards performance that delivers on members’ specific needs, therefore demonstrating a higher probability of meeting their investment goals. That must be a better outcome. 62

Applied

Phi

What do trustees need to do to benefit from this value potential?

Ask more of your asset consultants and multi-managers:

Ask how they are assessing asset manager alignment to client needs and outcomes (because it’s time to rethink the basis on which we select managers). ■■ Be clear on business models, manager compensation and rewards, mission statement and leadership. ■■ Understand how mandates between asset manager and fund or solutions provider are formulated.

Rethink your investment policy statement. ■■ Be explicit in defining what your investment needs and goals are. ■■ Set out a risk budget that provides the control parameters for meeting those goals. ■■ Define how you will integrate responsible investing and transformation into your investment solution.

Align your criteria for assessing success to whether your fund or its members are meeting that goal. ■■ Remove confusing or irrelevant language around why managers would be fired. ■■ Rethink performance fees. Most traditional forms of performance fees do not reward the right behaviours and do not align the interests of fund managers with the needs of clients. ■■ Maintain a constant monitor of where individual members are in their retirement savings journey and what would need to be done to nudge them back on track.

Change your messaging to your members. It’s about their personal outcomes and successes and not just the fund’s. Ask yourselves whether you’ve set up the right expectations with these members.

Lest we forget, in the final analysis, it’s all about how we can win with them. It’s all about their financial well-being.

YOU DO LIFE

WEâ&#x20AC;&#x2122;LL MAKE IT COUNT

with Alexander Forbes Umbrella Funds When it comes to securing your employeesâ&#x20AC;&#x2122; financial well-being, nothing should be left to chance. As an employer of choice, you need expert advice that will help your employees make the right financial decisions at every stage of their lives. Invest in a partnership that you and your employees can depend on. www.alexanderforbes.co.za/umbrella-funds

A licensed financial services provider

FUTUREFOCUS YOUR RETIREMENT FUND INVESTMENT GOALS With the ups and downs of the investment markets, you want to do the best to secure a comfortable retirement outcome for your members. At Old Mutual Multi-Managers, we use our proven investment process to help your members stay on track to reach their retirement goals, even through turbulent times.

For more information, visit us at www.oldmutual.co.za/multimanagers

Old Mutual Multi-Managers is a division of Old Mutual Life Assurance Company (South Africa) Limited, a discretionary financial services provider. FSP 703.

FCB10022283JB/E

MANAGER WATCHTM SURVEY

3 SECTION 3 Manager Watch™ Series of Surveys 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 BEE Manager Watch ™ Survey – Performance Results BEE Manager Watch ™ Survey – Empowerment Details LDI Manager Watch™ Survey

MANAGER WATCH™ SURVEY

SA 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.

Range of Returns of SA Equity Total Investable Universe for the periods ending 31 December 2016 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable) SA Equity Total

1 Year

3 Years (p.a.)

5 Years (p.a.)

7 Years (p.a.)

53.62%

12.93%

18.83%

17.73%

Upper Quartile

6.05%

8.60%

15.09%

14.58%

11.74%

Median

4.21%

6.86%

13.86%

12.76%

10.72%

13.78%

10.56%

Average

5.77%

6.56%

12.97%

12.51%

Lower Quartile

1.84%

4.91%

11.14%

11.19%

9.68%

Low

-4.14%

-0.90%

3.21%

4.89%

5.80%

Range

57.77%

13.82%

15.62%

12.83%

7.98%

Number of Participants

Benchmarks of Portfolios in the equity survey as a percentage of the Survey Benchmark FTSE/JSE All Share Index

10 Years (p.a.)

High

% of Universe 15.38%

FTSE/JSE Capped All Share Index

3.85%

FTSE/JSE SWIX All Share Index

63.46%

FTSE/JSE Top 40 Index

5.77%

Other

11.54%

SECTION 3

General information Investment Managers

GIPS™ (Verified/ Compliant)

Managed ITO Regulation 28? (Y/N)

Benchmark Description

No. of Funds in Composite

FTSE/JSE Top 40 Index

212

FTSE/JSE SWIX All Share Index

2 966

Portfolio Size (R m)

Enhanced Index Prescient Equity Quant Fund

Stanlib Enhanced Index Fund

Total

3 178

Benchmark Cognisant Absa Asset Management Large Cap

Absa Asset Management Core Equity

FTSE/JSE Top 40 Index

FTSE/JSE SWIX All Share Index

Abax Equity Fund

FTSE/JSE SWIX All Share Index

N/A

8 771

Aeon Active Equity Fund

FTSE/JSE SWIX All Share Index

3 143 1 392

1 040 639

Afena Capital Equity SWIX

FTSE/JSE SWIX All Share Index

Afena Capital Equity CAPI

FTSE/JSE Capped All Share Index

369

Argon SA Equity Fund

FTSE/JSE SWIX All Share Index

6 792

Coronation Core Equity

FTSE/JSE SWIX All Share Index

9 104

FTSE/JSE SWIX All Share Index

3 828

FTSE/JSE SWIX All Share Index

2 505

FTSE/JSE SWIX All Share Index

N/A

26 180

Fairtree Capital Equity Fund First Avenue General Equity

Investment Solutions Pure Equity Kagiso Core SWIX Fund

FTSE/JSE SWIX All Share Index

1 939

Mergence SWIX Fund

FTSE/JSE SWIX All Share Index

11 038

Mergence CAPI Fund

FTSE/JSE Capped All Share Index

1 000

FTSE/JSE SWIX All Share Index

13 483

Momentum MoM Classic Equity OMIG Double Alpha Top 40

FTSE/JSE Top 40 Index

370

Old Mutual Equities Classic Portfolio

FTSE/JSE SWIX All Share Index

27 960

OMIG Managed Alpha Equity

FTSE/JSE SWIX All Share Index

450

Prescient Equity Active Quant

FTSE/JSE SWIX All Share Index

172

Prudential Core Equity ALSI

FTSE/JSE All Share Index

9 265

Prudential Deep Value Equity

Fund weighted CAPI SWIX index

6 057

Prudential Core Equity SWIX

FTSE/JSE SWIX All Share Index

14 666

Sentio General Equity Fund

FTSE/JSE SWIX All Share Index

5 974

SIM Moderate Equity

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

2 151

SIM Aggressive Equity

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

400

Stanlib Core Equity

Sygnia Core Equity Fund Vunani Core Equity Fund Total

FTSE/JSE SWIX All Share Index

1 915

FTSE/JSE SWIX All Share Index

N/A

2 615

FTSE/JSE SWIX All Share Index

1 510 164 727

V = Verified C = Compliant

MANAGER WATCH™ SURVEY

SA 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.

General information Investment Managers

GIPS™ (Verified/ Compliant)

Managed ITO Regulation 28? (Y/N)

Benchmark Description

No. of Funds in Composite

Portfolio Size (R m)

Not Benchmark Cognisant ABSA Asset Management Value

FTSE/JSE All Share Index

7 609

Allan Gray

FTSE/JSE All Share Index

57 847

Cannon All Equities ALSI Portfolio

FTSE/JSE All Share Index

434

Coronation Aggressive Equity

FTSE/JSE SWIX All Share Index

15 344

Coronation Houseview Equity

FTSE/JSE SWIX All Share Index

22 337

Element Equity

FTSE/JSE SWIX All Share Index

304

First Avenue Focused Equity

FTSE/JSE SWIX All Share Index

5 052

Foord Domestic Equity

FTSE/JSE All Share Index

20 871

Investec Equity

FTSE/JSE SWIX All Share Index

7 365

Investec Value

FTSE/JSE All Share Index

7 302

Kagiso Managed Equity Fund

FTSE/JSE SWIX All Share Index

4 233

Mazi Capital Equity SWIX Composite

FTSE/JSE SWIX All Share Index

11 603

Oasis Specialist Domestic

South Africa OE (ASISA) Domestic Equity General

7 765

OMIG Managed Volatility Capability

FTSE/JSE SWIX All Share Index

262

OMIG Premium Equity

FTSE/JSE SWIX All Share Index

529

FTSE/JSE SWIX All Share Index

6 006

FTSE/JSE SWIX: 97%; STeFI: 3%

1 204

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

1 931

Old Mutual Equities Investors Portfolio SIM Top Choice Equity Fund SIM Unconstrained Equity

Stanlib Unconstrained Equity

FTSE/JSE All Share Index

604

Stanlib Value Fund

FTSE/JSE All Share Index

947 3 344

Sygnia Absolute Focus Equity Fund

FTSE/JSE SWIX All Share Index

Old Mutual Multi-Managers Equity Portfolio

FTSE/JSE SWIX All Share Index

N/A

Total V = Verified C = Compliant

1 101 183 996

SECTION 3

Investment Data to the end of December 2016 – Performance Data Investment Managers

Benchmark

1 Year Portfolio

3 Years (p.a.) Benchmark Portfolio

5 Years (p.a.)

Benchmark Portfolio

7 Years (p.a.)

Benchmark Portfolio

10 Years (p.a.)

Benchmark Portfolio

Benchmark

Enhanced Index Prescient Equity Quant Fund

FTSE/JSE Top 40 Index

-1.55%

-1.61%

5.03%

4.92%

11.40%

12.33%

10.93%

11.50%

9.75%

9.88%

Stanlib Enhanced Index Fund

FTSE/JSE SWIX All Share Index

0.66%

4.13%

6.03%

7.59%

13.14%

14.18%

12.76%

13.62%

11.12%

11.38%

Absa Asset Management Large Cap

FTSE/JSE Top 40 Index

3.75%

-1.60%

8.63%

4.92%

14.90%

12.33%

Absa Asset Management Core Equity

FTSE/JSE SWIX All Share Index

2.14%

4.13%

Abax Equity Fund

FTSE/JSE SWIX All Share Index

-0.97%

4.14%

8.06%

7.59%

15.47%

14.18%

15.25%

13.63%

12.54%

11.38%

Aeon Active Equity Fund

FTSE/JSE SWIX All Share Index

1.86%

4.13%

7.39%

7.59%

15.09%

14.18%

14.07%

13.63%

Afena Capital Equity SWIX

FTSE/JSE SWIX All Share Index

8.39%

4.13%

4.94%

7.59%

10.60%

14.18%

10.38%

13.63%

9.52%

11.38%

Afena Capital Equity CAPI

FTSE/JSE Capped All Share Index

7.66%

3.94%

3.93%

6.68%

9.20%

13.33%

9.07%

12.66%

8.86%

10.99%

Argon SA Equity Fund

FTSE/JSE SWIX All Share Index

0.36%

4.13%

8.60%

7.59%

15.12%

14.18%

13.50%

13.63%

11.03%

11.37%

Coronation Core Equity

FTSE/JSE SWIX All Share Index

5.55%

4.13%

5.93%

7.59%

14.49%

14.18%

14.57%

13.63%

13.55%

11.38%

Fairtree Capital Equity Fund

FTSE/JSE SWIX All Share Index

10.75%

4.13%

12.93%

7.59%

18.83%

14.18%

First Avenue General Equity

FTSE/JSE SWIX All Share Index

-2.68%

4.13%

6.67%

7.59%

13.86%

14.18%

Investment Solutions Pure Equity

FTSE/JSE SWIX All Share Index

4.20%

4.13%

5.20%

7.59%

12.03%

14.18%

12.23%

13.63%

10.64%

11.38%

Kagiso Core SWIX Fund

FTSE/JSE SWIX All Share Index

6.05%

4.14%

3.47%

7.59%

11.78%

14.18%

11.94%

13.63%

10.80%

11.38%

Mergence SWIX Fund

FTSE/JSE SWIX All Share Index

4.67%

4.13%

8.78%

7.59%

15.43%

14.18%

13.92%

13.63%

Mergence CAPI Fund

FTSE/JSE Cappe All Share Index

4.47%

3.94%

7.63%

6.68%

14.27%

13.33%

12.69%

12.66%

Benchmark Cognisant

FTSE/JSE SWIX Momentum MoM Classic Equity All Share Index

5.89%

4.13%

6.86%

7.59%

14.02%

14.18%

13.65%

13.63%

11.33%

11.38%

OMIG Double Alpha Top 40

FTSE/JSE Top 40 Index

-0.01%

-1.61%

5.95%

4.92%

13.77%

12.33%

13.31%

11.50%

Old Mutual Equities Classic Portfolio

FTSE/JSE SWIX All Share Index

0.11%

4.14%

7.30%

7.59%

14.55%

14.18%

13.24%

13.63%

10.99%

11.38%

OMIG Managed Alpha Equity

FTSE/JSE SWIX All Share Index

2.07%

4.14%

8.71%

7.59%

16.46%

14.18%

15.39%

13.63%

Prescient Equity Active Quant

FTSE/JSE SWIX All Share Index

-1.76%

4.14%

5.62%

7.59%

11.78%

14.18%

11.89%

13.63%

10.49%

11.38%

Prudential Core Equity ALSI

FTSE/JSE All Share Index

3.04%

2.64%

6.86%

6.16%

14.57%

12.98%

13.70%

12.25%

11.91%

10.51%

Prudential Deep Value Equity

Fund weighted CAPI SWIX index

5.09%

4.12%

8.53%

7.51%

15.60%

14.10%

14.65%

13.51%

12.83%

11.37%

Prudential Core Equity SWIX

FTSE/JSE SWIX All Share Index

5.86%

4.13%

8.84%

7.59%

16.51%

14.18%

15.59%

13.63%

13.17%

11.38%

Sentio General Equity Fund

FTSE/JSE SWIX All Share Index

4.98%

4.13%

SIM Moderate Equity

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

5.30%

4.19%

7.63%

7.57%

15.05%

14.01%

14.44%

13.47%

SIM Aggressive Equity

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

13.19%

4.19%

7.18%

7.57%

13.17%

14.01%

13.05%

13.47%

11.56%

11.31%

Stanlib Core Equity

FTSE/JSE SWIX All Share Index

-0.07%

4.13%

3.10%

7.59%

12.02%

14.18%

12.67%

13.63%

9.73%

11.38%

Sygnia Core Equity Fund

FTSE/JSE SWIX All Share Index

1.82%

4.13%

5.61%

7.59%

13.20%

14.18%

Vunani Core Equity Fund

FTSE/JSE SWIX All Share Index

4.36%

4.13%

7.03%

7.59%

14.52%

14.18%

Market Indices & Statistics FTSE/JSE All Share Index

2.63%

6.16%

12.97%

12.25%

10.50%

FTSE/JSE Capped All Share Index

3.94%

6.68%

13.33%

12.67%

11.01%

FTSE/JSE SWIX All Share Index

4.13%

7.59%

14.18%

13.62%

11.38%

FTSE/JSE Mid Cap Index

26.88%

11.95%

14.57%

13.98%

11.19%

FTSE/JSE Small Cap Index

20.91%

11.89%

17.04%

14.60%

10.51%

FTSE/JSE Top 40 Index

-1.60%

4.92%

12.33%

11.54%

9.91%

FTSE/JSE Value Index

17.15%

1.80%

8.54%

9.96%

8.79%

FTSE/JSE Growth Index

-3.63%

9.24%

16.00%

13.47%

11.37%

MANAGER WATCH™ SURVEY

Investment Data to the end of December 2016 – Performance Data Investment Managers

Benchmark

1 Year Portfolio

3 Years (p.a.) Benchmark Portfolio

5 Years (p.a.)

Benchmark Portfolio

7 Years (p.a.)

Benchmark Portfolio

10 Years (p.a.)

Benchmark Portfolio

Benchmark

Not Benchmark Cognisant ABSA Asset Management Value

FTSE/JSE All Share Index

6.09%

2.64%

4.89%

6.16%

11.18%

12.98%

12.26%

12.25%

12.95%

10.51%

Allan Gray

FTSE/JSE All Share Index

12.66%

2.63%

11.05%

6.16%

14.92%

12.97%

14.68%

12.25%

13.21%

10.50%

Cannon All Equities ALSI Portfolio

FTSE/JSE All Share Index

21.42%

2.63%

2.02%

6.16%

6.82%

14.57%

7.16%

12.25%

7.34%

FTSE/JSE SWIX Coronation Aggressive Equity All Share Index

15.98%

4.13%

4.22%

7.59%

13.27%

14.18%

14.02%

13.63%

13.04%

11.38%

Coronation Houseview Equity

FTSE/JSE SWIX All Share Index

6.83%

4.13%

5.60%

7.59%

14.77%

14.18%

14.58%

13.63%

13.16%

11.38%

Element Equity

FTSE/JSE SWIX All Share Index

21.57%

4.14%

1.03%

7.59%

3.21%

14.18%

4.89%

13.63%

5.80%

11.38%

First Avenue Focused Equity

FTSE/JSE SWIX All Share Index

-4.14%

4.13%

Foord Domestic Equity

FTSE/JSE All Share Index

3.11%

2.63%

7.18%

6.16%

15.95%

12.97%

16.14%

12.25%

13.78%

10.50%

Investec Equity

FTSE/JSE SWIX All Share Index

2.47%

4.13%

11.61%

7.59%

16.33%

14.18%

14.63%

13.63%

11.45%

11.38%

Investec Value

FTSE/JSE All Share Index

53.62%

2.63%

12.15%

6.16%

7.70%

12.97%

9.09%

12.25%

9.04%

10.50%

Kagiso Managed Equity Fund

FTSE/JSE SWIX All Share Index

10.64%

4.14%

2.83%

7.59%

10.33%

14.18%

11.16%

13.63%

10.65%

11.38%

Mazi Capital Equity SWIX Composite

FTSE/JSE SWIX All Share Index

-2.54%

4.14%

7.87%

7.59%

16.69%

14.18%

17.73%

13.63%

Oasis Specialist Domestic

South Africa OE (ASISA) Domestic Equity General

15.02%

3.41%

4.79%

4.62%

11.09%

10.29%

11.87%

10.07%

10.51%

8.99%

OMIG Managed Volatility Capability

FTSE/JSE SWIX All Share Index

1.71%

4.14%

8.07%

7.59%

13.98%

14.18%

OMIG Premium Equity

FTSE/JSE SWIX All Share Index

5.70%

4.14%

8.79%

7.59%

14.90%

14.18%

15.08%

Old Mutual Equities Investors Portfolio

FTSE/JSE SWIX All Share Index

-0.29%

4.13%

SIM Top Choice Equity Fund

FTSE/JSE SWIX: 97%; STeFI: 3%

4.70%

4.24%

8.65%

7.57%

15.91%

13.94%

15.01%

13.41%

SIM Unconstrained Equity

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

17.09%

4.19%

4.60%

7.57%

10.40%

14.01%

10.79%

13.47%

Stanlib Unconstrained Equity

FTSE/JSE All Share Index

2.73%

2.63%

-0.90%

6.16%

8.10%

12.97%

8.38%

12.25%

6.45%

10.50%

Stanlib Value Fund

FTSE/JSE All Share Index

4.21%

2.63%

1.59%

6.16%

8.65%

12.97%

9.71%

12.25%

Sygnia Absolute Focus Equity Fund

FTSE/JSE SWIX All Share Index

2.34%

4.13%

10.28%

7.59%

14.81%

14.18%

Old Mutual Multi-Managers Equity Portfolio

FTSE/JSE SWIX All Share Index Excluding Old Mutual

4.79%

4.13%

5.86%

7.59%

10.84%

14.18%

11.20%

13.63%

9.68%

11.38%

Market Indices & Statistics

FTSE/JSE All Share Index

2.63%

6.16%

12.97%

12.25%

10.50%

FTSE/JSE Capped All Share Index

3.94%

6.68%

13.33%

12.67%

11.01%

FTSE/JSE SWIX All Share Index

4.13%

7.59%

14.18%

13.62%

11.38%

FTSE/JSE Mid Cap Index

26.88%

11.95%

14.57%

13.98%

11.19%

FTSE/JSE Small Cap Index

20.91%

11.89%

17.04%

14.60%

10.51%

FTSE/JSE Top 40 Index

-1.60%

4.92%

12.33%

11.54%

9.91%

FTSE/JSE Value Index

17.15%

1.80%

8.54%

9.96%

8.79%

FTSE/JSE Growth Index

-3.63%

9.24%

16.00%

13.47%

11.37%

SECTION 3

SA Equity Manager Watchâ&#x201E;¢ 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.

Investment Data to the end of December for the past 5 Calendar years Investment Managers

Benchmark

Enhanced Index Prescient Equity Quant Fund FTSE/JSE Top 40 Index Stanlib Enhanced FTSE/JSE SWIX Index Fund All Share Index Benchmark Cognisant Absa Asset Management Large Cap Absa Asset Management Core Equity

FTSE/JSE Top 40 Index

FTSE/JSE SWIX All Share Index FTSE/JSE SWIX Abax Equity Fund All Share Index FTSE/JSE SWIX Aeon Active Equity Fund All Share Index FTSE/JSE SWIX Afena Capital Equity SWIX All Share Index FTSE/JSE Capped Afena Capital Equity CAPI All Share Index FTSE/JSE SWIX Argon SA Equity Fund All Share Index FTSE/JSE SWIX Coronation Core Equity All Share Index FTSE/JSE SWIX Fairtree Capital Equity Fund All Share Index FTSE/JSE SWIX First Avenue General Equity All Share Index Investment Solutions FTSE/JSE SWIX Pure Equity All Share Index FTSE/JSE SWIX Kagiso Core SWIX Fund All Share Index FTSE/JSE SWIX Mergence SWIX Fund All Share Index FTSE/JSE Capped Mergence CAPI Fund All Share Index Momentum MoM FTSE/JSE SWIX Classic Equity All Share Index OMIG Double Alpha Top 40 FTSE/JSE Top 40 Index FTSE/JSE SWIX Old Mutual Equities All Share Index FTSE/JSE SWIX OMIG Managed Alpha Equity All Share Index Prescient Equity Active FTSE/JSE SWIX Quant All Share Index Prudential Core Equity ALSI FTSE/JSE All Share Index Prudential Deep Value Fund weighted CAPI Equity SWIX index FTSE/JSE SWIX Prudential Core Equity SWIX All Share Index 2% 4 Major bank Call Rate; SIM Moderate Equity 98% FTSE/JSE SWIX 2% 4 Major bank Call Rate; SIM Aggressive Equity 98% FTSE/JSE SWIX FTSE/JSE SWIX Stanlib Core Equity All Share Index FTSE/JSE SWIX Sygnia Core Equity Fund All Share Index FTSE/JSE SWIX Vunani Core Equity Fund All Share Index Market Indices & Statistics FTSE/JSE All Share Index FTSE/JSE Capped All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE Mid Cap Index FTSE/JSE Small Cap Index FTSE/JSE Top 40 Index FTSE/JSE Value Index FTSE/JSE Growth Index

2015 Portfolio

2014 Benchmark Portfolio

2013 Benchmark Portfolio

2012 Benchmark Portfolio

2011 Benchmark Portfolio

Benchmark

7.40%

7.52%

9.57%

9.17%

17.15%

22.77%

26.41%

26.12%

2.62%

2.20%

2.91%

3.62%

15.08%

15.42%

18.88%

20.71%

30.84%

29.09%

3.35%

4.26%

9.76%

7.52%

12.58%

9.17%

26.82%

22.77%

23.16%

26.12%

5.76%

2.20%

10.04%

3.62%

11.01%

3.62%

14.77%

15.42%

28.05%

20.71%

27.07%

29.09%

8.89%

4.26%

7.14%

3.62%

13.48%

15.42%

28.23%

20.71%

27.16%

29.09%

3.18%

4.26%

-1.53%

3.62%

8.27%

15.42%

20.27%

20.71%

19.06%

29.09%

2.71%

4.26%

-0.81%

5.17%

5.12%

11.08%

18.63%

21.55%

16.61%

26.69%

1.58%

3.04%

9.81%

3.62%

16.22%

15.42%

25.26%

20.71%

26.05%

29.09%

1.13%

4.26%

0.34%

3.62%

12.25%

15.42%

29.01%

20.71%

28.28%

29.09%

5.57%

4.26%

8.30%

3.62%

20.07%

15.42%

24.93%

20.71%

31.72%

29.09%

9.53%

3.62%

13.85%

15.42%

20.21%

20.71%

31.20%

29.09%

1.11%

3.62%

10.52%

15.42%

22.98%

20.71%

23.22%

29.09%

4.94%

4.26%

-4.73%

3.62%

9.65%

15.42%

25.92%

20.71%

25.09%

29.09%

4.30%

4.26%

7.31%

3.62%

14.61%

15.42%

25.46%

20.71%

26.88%

29.09%

6.23%

4.26%

7.78%

5.17%

10.74%

11.08%

25.07%

21.55%

24.95%

26.69%

3.74%

3.04%

2.58%

3.62%

12.34%

15.42%

25.37%

20.71%

26.01%

29.09%

5.16%

4.26%

8.32%

7.52%

9.82%

9.17%

23.90%

22.77%

29.32%

26.12%

4.35%

2.20%

6.77%

3.62%

15.58%

15.42%

27.59%

20.71%

25.10%

29.09%

3.87%

4.26%

8.78%

3.62%

15.69%

15.42%

24.91%

20.71%

33.53%

29.09%

3.58%

4.26%

3.70%

3.62%

15.64%

15.42%

18.01%

20.71%

25.50%

29.09%

3.83%

4.26%

6.99%

5.13%

10.68%

10.88%

27.37%

21.43%

27.01%

26.68%

4.49%

2.57%

6.22%

3.78%

14.53%

14.99%

26.76%

20.79%

27.41%

28.85%

4.74%

4.16%

5.82%

3.62%

15.10%

15.42%

28.07%

20.71%

30.01%

29.09%

6.67%

4.26%

3.43%

3.67%

14.49%

15.22%

26.83%

20.39%

27.46%

28.57%

4.62%

4.30%

-1.97%

3.67%

10.95%

15.22%

25.61%

20.39%

20.04%

28.57%

3.48%

4.30%

-0.37%

3.62%

10.07%

15.42%

18.65%

20.71%

35.69%

29.09%

6.47%

4.29%

3.42%

3.62%

11.85%

15.42%

25.52%

20.71%

25.71%

29.09%

3.42%

4.26%

7.60%

3.62%

9.18%

15.42%

21.88%

20.71%

31.80%

29.09%

5.13% 11.08% 15.42% 19.62% 20.57% 9.17% 4.59% 14.90%

10.88% 11.08% 15.42% 19.62% 20.57% 9.17% 4.59% 14.90%

21.43% 21.55% 20.71% 12.33% 26.12% 22.77% 17.47% 23.28%

26.68% 26.69% 29.09% 25.24% 24.35% 26.12% 21.57% 30.68%

2.57% 3.09% 4.25% 0.65% -2.28% 2.44% 5.35% -0.22%

MANAGER WATCH™ SURVEY

Investment Data to the end of December for the past 5 Calendar years Investment Managers

Benchmark

2015 Portfolio

2014 Benchmark Portfolio

2013 Benchmark Portfolio

2012 Benchmark Portfolio

2011 Benchmark Portfolio

Benchmark

Not Benchmark Cognisant ABSA Asset Management Value

FTSE/JSE All Share Index

-3.24%

5.13%

12.39%

10.88%

18.72%

21.43%

24.02%

26.68%

6.29%

2.57%

Allan Gray

FTSE/JSE All Share Index

5.16%

5.13%

15.59%

10.88%

22.90%

21.43%

19.08%

26.68%

8.71%

2.57%

Cannon All Equities ALSI Portfolio

FTSE/JSE All Share Index

-10.84%

5.13%

-1.91%

10.88%

16.02%

21.43%

12.91%

26.68%

-1.71%

2.57%

Coronation Aggressive Equity

FTSE/JSE SWIX All Share Index

-8.85%

3.62%

7.08%

15.42%

30.91%

20.71%

25.82%

29.09%

5.05%

4.26%

FTSE/JSE SWIX Coronation Houseview Equity All Share Index

0.11%

3.62%

10.11%

15.42%

32.52%

20.71%

27.60%

29.09%

3.51%

4.26%

Element Equity

FTSE/JSE SWIX All Share Index

-16.14%

3.62%

1.15%

15.42%

2.18%

20.71%

11.15%

29.09%

3.97%

4.26%

First Avenue Focused Equity

FTSE/JSE SWIX All Share Index

12.86%

3.62%

14.29%

15.42%

20.78%

20.71%

Foord Domestic Equity

FTSE/JSE All Share Index

2.90%

5.13%

16.05%

10.88%

28.48%

21.43%

32.47%

26.68%

8.10%

2.57%

Investec Equity

FTSE/JSE SWIX All Share Index

15.26%

3.62%

17.73%

15.42%

22.45%

20.71%

25.14%

29.09%

6.50%

4.26%

Investec Value

FTSE/JSE All Share Index

-18.82%

5.13%

13.09%

10.88%

-0.28%

21.43%

3.03%

26.68%

1.48%

2.57%

Kagiso Managed Equity Fund

FTSE/JSE SWIX All Share Index

-8.71%

3.62%

7.66%

15.42%

25.13%

20.71%

20.16%

29.09%

4.65%

4.26%

Mazi Capital Equity SWIX Composite

FTSE/JSE SWIX All Share Index

12.51%

3.62%

14.48%

15.42%

26.10%

20.71%

36.69%

29.09%

12.44%

4.26%

Oasis Specialist Domestic

South Africa OE (ASISA) Domestic Equity General

-9.49%

1.04%

10.53%

9.61%

16.55%

19.35%

26.15%

19.40%

7.18%

2.95%

OMIG Managed Volatility Capability

FTSE/JSE SWIX All Share Index

7.45%

3.62%

15.49%

15.42%

16.24%

20.71%

31.13%

29.09%

OMIG Premium Equity

FTSE/JSE SWIX All Share Index

6.12%

3.62%

14.79%

15.42%

17.97%

20.71%

31.84%

29.09%

12.21%

4.26%

SIM Top Choice Equity Fund

FTSE/JSE SWIX: 97%; STeFI: 3%

7.43%

3.72%

14.04%

15.13%

32.22%

20.24%

SIM Unconstrained Equity

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

-11.72%

3.67%

10.70%

15.22%

18.03%

20.39%

21.44%

28.57%

1.55%

4.30%

Stanlib Unconstrained Equity

FTSE/JSE All Share Index

-9.96%

5.13%

5.22%

10.88%

16.27%

21.43%

30.43%

26.68%

3.80%

2.57%

Stanlib Value Fund

FTSE/JSE All Share Index

2.78%

5.13%

-2.13%

10.88%

19.20%

21.43%

21.17%

26.68%

3.47%

2.57%

Sygnia Absolute Focus Equity Fund

FTSE/JSE SWIX All Share Index

11.68%

3.62%

17.35%

15.42%

22.49%

20.71%

21.42%

29.09%

6.74%

4.26%

Old Mutual Multi-Managers Equity Portfolio

FTSE/JSE SWIX All Share Index

1.31%

3.62%

11.75%

15.42%

20.25%

20.71%

17.28%

29.09%

3.82%

4.26%

Market Indices & Statistics

FTSE/JSE All Share Index

5.13%

10.88%

21.43%

26.68%

2.57%

FTSE/JSE Capped All Share Index

5.17%

11.08%

21.55%

26.69%

3.09%

FTSE/JSE SWIX All Share Index

3.62%

15.42%

20.71%

29.09%

4.25%

FTSE/JSE Mid Cap Index

-7.54%

19.62%

12.33%

25.24%

0.65%

FTSE/JSE Small Cap Index

-3.92%

20.57%

26.12%

24.35%

-2.28% 2.44%

FTSE/JSE Top 40 Index

7.52%

9.17%

22.77%

26.12%

FTSE/JSE Value Index

-13.90%

4.59%

17.47%

21.57%

5.35%

FTSE/JSE Growth Index

17.72%

14.90%

23.28%

30.68%

-0.22%

FTSE/JSE SWIX All Share Index

4.26%

3.72%

FTSE/JSE SWIX All Share Index

FTSE/JSE Capped All Share Index

FTSE/JSE SWIX All Share Index

Aeon Active Equity Fund

Afena Capital Equity SWIX

Afena Capital Equity CAPI

Argon SA Equity Fund

Coronation Core Equity

Fairtree Capital Equity Fund

First Avenue General Equity

Investment Solutions Pure Equity

Kagiso Core SWIX Fund

-1.98%

FTSE/JSE SWIX All Share Index

FTSE/JSE Top 40 Index

FTSE/JSE SWIX All Share Index

FTSE/JSE All Share Index

Fund weighted CAPI SWIX index

Momentum MoM Classic Equity

OMIG Double Alpha Top 40

Old Mutual Equities Classic Portfolio

OMIG Managed Alpha Equity

Prescient Equity Active Quant

Prudential Core Equity ALSI

Prudential Deep Value Equity

-2.31%

0.23%

FTSE/JSE SWIX All Share Index

SIM Aggressive Equity

Stanlib Core Equity

Sygnia Core Equity Fund

4.13%

26.88%

20.91%

-1.60%

17.15%

-3.63%

FTSE/JSE Mid Cap Index

FTSE/JSE Small Cap Index

FTSE/JSE Top 40 Index

FTSE/JSE Value Index

FTSE/JSE Growth Index

3.94%

FTSE/JSE SWIX All Share Index

2.63%

FTSE/JSE Capped All Share Index

0.11%

9.24%

1.80%

4.92%

11.89%

11.95%

7.59%

6.68%

16.00%

8.54%

12.33%

17.04%

14.57%

14.18%

13.33%

13.47%

9.96%

11.54%

14.60%

13.98%

13.62%

12.67%

11.37%

8.79%

9.91%

10.51%

11.19%

11.38%

11.01%

14.90%

4.59%

9.17%

20.57%

19.62%

15.42%

11.08%

14.90%

4.59%

9.17%

20.57%

19.62%

15.42%

11.08%

23.28%

17.47%

22.77%

26.12%

12.33%

20.71%

21.55%

21.43%

1.17%

4.81%

-2.06%

5.22%

6.44%

7.36%

5.97%

5.94%

-2.70%

4.20%

6.88%

1.12%

4.66%

3.52%

4.75%

5.21%

2.27%

-0.50%

4.22%

8.30%

4.55%

-2.93%

-0.44%

7.52%

7.34%

4.05%

-1.83%

-5.62%

30.68%

21.57%

26.12%

24.35%

25.24%

29.09%

26.69%

26.68%

2.71%

-3.38%

6.60%

-8.53%

-1.11%

0.92%

-1.44%

0.33%

-3.59%

4.44%

-3.98%

3.19%

-3.08%

-1.74%

-2.20%

-4.00%

-5.87%

2.11%

2.63%

-0.81%

-3.04%

-10.07%

-10.02%

-1.93%

-2.02%

-2.97%

1.75%

0.28%

-0.22%

5.35%

2.44%

-2.28%

0.65%

4.25%

3.09%

Rank

2.57%

-0.84%

2.18%

-0.81%

0.33%

2.41%

0.59%

1.92%

-0.43%

-0.68%

-0.39%

2.15%

0.90%

0.70%

1.96%

0.04%

0.68%

1.31%

-3.14%

-1.46%

-1.55%

-1.08%

4.62%

3.55%

-0.91%

0.42%

Active Active Rank Return - Rank Return 2012 - 2011

Calender Year Returns Active Rank Return - 2013

10.88%

-6.24%

-3.57%

-5.35%

-4.27%

-0.73%

-0.32%

-0.46%

-0.20%

0.22%

0.27%

0.16%

0.65%

-3.08%

-0.34%

-0.81%

-5.77%

-4.90%

-1.57%

4.65%

-3.17%

0.80%

-5.95%

-7.15%

-1.94%

-0.65%

3.40%

-0.34%

0.40%

Active Rank Return - 2014

5.13%

3.98%

-0.20%

-3.99%

-5.65%

-0.25%

2.20%

2.45%

1.86%

0.09%

5.16%

3.15%

0.81%

-1.04%

2.61%

3.69%

-8.34%

-2.51%

5.91%

4.68%

-3.28%

6.19%

-5.98%

-5.14%

3.52%

7.40%

6.42%

2.24%

-0.71%

-0.12%

Active Rank Return - 2015

10.50%

-1.65%

0.25%

1.79%

1.46%

1.41%

-0.39%

-0.05%

-0.58%

-0.73%

2.17%

-0.34%

-1.86%

1.16%

-0.26%

-0.13%

Active Return: Rank 10 Years (p.a.)

12.25%

-0.96%

-0.42%

0.96%

1.97%

1.14%

1.45%

-1.74%

-0.38%

0.02%

0.03%

0.30%

-1.69%

-1.40%

0.94%

-0.13%

-3.59%

-3.25%

0.45%

1.62%

-0.87%

-0.57%

Active Return: Rank 7 Years (p.a.)

12.97%

0.34%

-0.98%

-2.15%

-0.84%

1.04%

2.33%

1.50%

1.59%

-2.40%

2.28%

0.37%

1.44%

-0.15%

0.94%

1.25%

-2.40%

-2.15%

-0.31%

4.65%

0.31%

0.95%

-4.13%

-3.58%

0.91%

1.29%

2.57%

-1.03%

-0.93%

Active Return: Rank 5 Years (p.a.)

6.16%

-0.56%

-1.98%

-4.49%

-0.39%

0.07%

1.25%

1.03%

0.70%

-1.97%

1.11%

-0.29%

1.03%

-0.73%

7 9

0.95%

1.20%

-4.12%

-2.38%

-0.92%

5.34%

-1.65%

1.01%

-2.75%

-2.65%

-0.20%

0.46%

3.71%

-1.56%

Active Return: Rank 3 Years (p.a.)

FTSE/JSE All Share Index

Market Indices & Statistics

Vunani Core Equity Fund

9.00%

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

-4.20%

1.11%

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

SIM Moderate Equity

1.73%

0.86%

FTSE/JSE SWIX All Share Index

Prudential Core Equity SWIX

Sentio General Equity Fund

0.97%

0.40%

-5.90%

-2.07%

-4.03%

1.59%

1.76%

0.54%

0.53%

FTSE/JSE SWIX All Share Index

FTSE/JSE Capped All Share Index

Mergence SWIX Fund

Mergence CAPI Fund

1.91%

0.07%

-6.80%

6.61%

1.42%

-3.77%

-2.27%

-5.12%

FTSE/JSE SWIX All Share Index

5.35%

Abax Equity Fund

FTSE/JSE Top 40 Index

0.06%

-3.47%

Absa Asset Management Core Equity

Absa Asset Management Large Cap

Benchmark Cognisant

FTSE/JSE Top 40 Index

Stanlib Enhanced Index Fund

Benchmark

Prescient Equity Quant Fund

Enhanced Index

Investment Managers

Active Return: 1 Year

Due to differing benchmarks, the portfolios below are ranked by active returns only (actual performance less benchmark return) and are purely for illustrative purposes.

Investment Data to the end of December 2016 – Performance Data

SECTION 3

SA Equity Manager Watch™ Survey

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

OMIG Premium Equity

OMIG Managed Volatility Capability

Oasis Specialist Domestic

Mazi Capital Equity SWIX Composite

Kagiso Managed Equity Fund

Investec Value

Investec Equity

Foord Domestic Equity

First Avenue Focused Equity

Element Equity

Coronation Houseview Equity

Coronation Aggressive Equity

Cannon All Equities ALSI Portfolio

Allan Gray

ABSA Asset Management Value

Not Benchmark Cognisant

Investment Managers

FTSE/JSE All Share Index FTSE/JSE All Share Index FTSE/JSE All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE All Share Index FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index South Africa OE (ASISA) Domestic Equity General FTSE/JSE SWIX All Share Index FTSE/JSE SWIX All Share Index

Benchmark

1.56%

-2.43%

11.61%

-6.67%

6.50%

51.00%

-1.66%

0.48%

-8.27%

17.43%

2.70%

11.85%

18.79%

10.03%

3.45%

1.20%

0.48%

0.17%

0.28%

-4.76%

5.99%

4.02%

1.03%

-6.56%

-1.99%

-3.36%

-4.13%

4.89%

-1.27%

Active Active Return: Return: Rank 3 Years 1 Year (p.a.)

0.72%

-0.20%

0.80%

2.51%

-3.85%

-5.27%

2.15%

2.97%

-10.97%

0.59%

-0.91%

-7.75%

1.95%

-1.79%

Active Return: Rank 5 Years (p.a.)

1.80%

4.10%

-2.47%

-3.16%

1.00%

3.89%

-8.73%

0.96%

0.40%

-5.09%

2.42%

0.00%

Active Return: Rank 7 Years (p.a.)

1.51%

-1.47%

0.07%

3.28%

-5.58%

1.78%

1.66%

2.71%

2.44%

2.50%

3.83%

-10.53%

8.89%

-12.33%

-23.94%

11.64%

-2.23%

9.24%

-19.76%

-3.51%

-12.46%

-15.97%

0.03%

-8.36%

-0.64%

0.07%

0.92%

-0.94%

-7.76%

2.21%

2.31%

5.17%

-1.13%

-14.28%

-5.31%

-8.34%

-12.79%

4.72%

1.52%

Calender Year Returns Active Active Active Return: Rank Rank Return Rank Return 10 Years - 2015 - 2014 (p.a.)

-2.74%

-4.47%

-2.80%

5.39%

4.42%

-21.71%

1.74%

7.05%

0.07%

-18.53%

11.81%

10.20%

-5.41%

1.46%

-2.71%

Active Rank Return - 2013

2.76%

2.04%

6.76%

7.60%

-8.93%

-23.66%

-3.94%

5.79%

-17.93%

-1.49%

-3.27%

-13.77%

-7.60%

-2.66%

Active Rank Return - 2012

7.94%

4.23%

8.18%

0.39%

-1.09%

2.24%

5.53%

-0.29%

-0.76%

0.79%

-4.28%

6.15%

3.72%

Active Rank Return Rank - 2011

Due to differing benchmarks, the portfolios below are ranked by active returns only (ie actual performance less benchmark return) and are purely for illustrative purposes.

Investment Data to the end of December 2016

MANAGER WATCH™ SURVEY

SA Equity Manager Watch™ Survey

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

Benchmark

Not Benchmark Cognisant Old Mutual Equities FTSE/JSE SWIX All -4.42% 20 Investors Portfolio Share Index SIM Top Choice Equity FTSE/JSE SWIX: 0.46% 15 Fund 97%; STeFI: 3% 2% 4 Major bank Call SIM Unconstrained Equity Rate; 98% FTSE/JSE 12.90% 4 SWIX Stanlib Unconstrained FTSE/JSE 0.10% 16 Equity All Share Index FTSE/JSE Stanlib Value Fund 1.59% 11 All Share Index Sygnia Absolute Focus FTSE/JSE SWIX All -1.79% 18 Equity Fund Share Index FTSE/JSE SWIX Old Mutual Multi-Managers All Share Index 0.66% 13 Equity Portfolio Excluding Old Mutual Market Indices & Statistics FTSE/JSE All Share Index 2.63% FTSE/JSE Capped All Share Index 3.94% FTSE/JSE SWIX All Share Index 4.13% FTSE/JSE Mid Cap Index 26.88% FTSE/JSE Small Cap Index 20.91% FTSE/JSE Top 40 Index -1.60% FTSE/JSE Value Index 17.15% FTSE/JSE Growth Index -3.63%

Investment Managers

14 20 17 4 12

-2.97%

-7.05%

-4.57%

2.69%

-1.73%

6.16% 6.68% 7.59% 11.95% 11.89% 4.92% 1.80% 9.24%

1.96%

1.08%

10.50% 11.01% 11.38% 11.19% 10.51% 9.91% 8.79% 11.37%

-1.70%

-4.05%

5.13% 5.17% 3.62% -7.54% -3.92% 7.52% -13.90% 17.72%

-2.31%

8.06%

-2.35%

-15.08%

-15.39%

3.71%

26.68% 26.69% 29.09% 25.24% 24.35% 26.12% 21.57% 30.68%

-11.80%

-7.66%

-5.51%

3.75%

-7.13%

Rank

2.57% 3.09% 4.25% 0.65% -2.28% 2.44% 5.35% -0.22%

-0.45%

2.47%

0.90%

1.24%

-2.75%

Active Active Rank Return - Rank Return 2012 - 2011

21.43% 21.55% 20.71% 12.33% 26.12% 22.77% 17.47% 23.28%

-0.46%

1.78%

-2.23%

-5.17%

-2.36%

11.98%

Active Rank Return - 2013

10.88% 11.08% 15.42% 19.62% 20.57% 9.17% 4.59% 14.90%

-3.67%

1.92%

-13.01%

-5.66%

-4.52%

-1.10%

Calender Year Returns Active Active Active Return: Rank Rank Return Rank Return 10 Years - 2015 - 2014 (p.a.)

12.25% 12.67% 13.62% 13.98% 14.60% 11.54% 9.96% 13.47%

-2.42%

-2.54%

-3.87%

-2.68%

1.60%

Active Return: Rank 7 Years (p.a.)

12.97% 13.33% 14.18% 14.57% 17.04% 12.33% 8.54% 16.00%

-3.34%

0.63%

-4.32%

-4.88%

-3.61%

Active Return: Rank 5 Years (p.a.)

Active Active Return: Return: Rank 3 Years 1 Year (p.a.)

Investment Data to the end of December 2016

SECTION 3

SA Equity Manager Watchâ&#x201E;¢ Survey (continued)

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

Vunani Core Equity Fund

All Share Index

FTSE/JSE SWIX

All Share Index

7.03%

5.61%

3.10%

FTSE/JSE SWIX All Share Index

Stanlib Core Equity

Sygnia Core Equity Fund

7.63%

7.18%

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

SIM Moderate Equity

SIM Aggressive Equity

FTSE/JSE SWIX

8.84%

Prudential Core Equity SWIX

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

8.53%

Fund weighted CAPI SWIX index

Prudential Deep Value Equity

FTSE/JSE SWIX All Share Index

5.62%

6.86%

FTSE/JSE All Share Index

Prescient Equity Active Quant

Prudential Core Equity ALSI

Mergence CAPI Fund

8.71%

7.63%

FTSE/JSE Capped All Share Index

Mergence SWIX Fund

FTSE/JSE SWIX All Share Index

8.78%

FTSE/JSE SWIX All Share Index

3.47%

FTSE/JSE SWIX All Share Index

Kagiso Core SWIX Fund

OMIG Managed Alpha Equity

6.67%

5.20%

FTSE/JSE SWIX All Share Index

First Avenue General Equity

Investment Solutions Pure Equity

7.30%

12.93%

FTSE/JSE SWIX All Share Index

Fairtree Capital Equity Fund

FTSE/JSE SWIX All Share Index

5.93%

FTSE/JSE SWIX All Share Index

Coronation Core Equity

Old Mutual Equities Classic Portfolio

8.60%

FTSE/JSE SWIX All Share Index

Argon SA Equity Fund

6.86%

3.93%

FTSE/JSE SWIX All Share Index

Afena Capital Equity CAPI

5.95%

4.94%

FTSE/JSE Capped All Share Index

Afena Capital Equity SWIX

FTSE/JSE Top 40 Index

7.39%

FTSE/JSE SWIX All Share Index

Aeon Active Equity Fund

OMIG Double Alpha Top 40

8.06%

FTSE/JSE SWIX All Share Index

Abax Equity Fund

FTSE/JSE SWIX Momentum MoM Classic Equity All Share Index

8.63%

FTSE/JSE Top 40 Index

FTSE/JSE SWIX All Share Index

Absa Asset Management Large Cap

Benchmark Cognisant

5.03%

6.03%

FTSE/JSE Top 40 Index

FTSE/JSE SWIX All Share Index

3 year return

Rank

Lower volatility = higher ranking

9.97%

9.80%

9.72%

10.31%

10.22%

10.00%

9.65%

9.72%

10.90%

10.24%

10.05%

10.90%

9.62%

9.69%

10.15%

10.36%

9.63%

10.94%

11.34%

10.46%

10.41%

10.37%

10.19%

9.84%

10.62%

9.69%

Lower volatility = higher ranking

10.56%

10.31%

Volatility (Risk)

-0.56%

-1.98%

-4.49%

-0.39%

0.07%

1.25%

1.03%

0.70%

-1.97%

1.11%

-0.29%

1.03%

-0.73%

0.95%

1.20%

-4.12%

-2.38%

-0.92%

5.34%

-1.65%

1.01%

-2.75%

-2.65%

-0.20%

0.46%

3.71%

-1.56%

0.11%

Active Return

Calculated on 3 year performance returns

Prescient Equity Quant Fund

Benchmark

Stanlib Enhanced Index Fund

Enhanced Index

Investment Managers

Investment Data to the end of December 2016 – Volatility vs Return

Rank

2.64%

1.50%

3.57%

3.79%

1.44%

2.25%

2.17%

2.29%

2.91%

2.25%

2.34%

0.80%

2.28%

1.87%

2.02%

3.93%

2.71%

3.65%

4.34%

2.65%

3.04%

3.25%

3.40%

2.26%

3.79%

2.72%

1.92%

1.38%

Tracking Error

-0.21

-1.32

-1.26

-0.10

0.05

0.56

0.47

0.31

-0.68

0.50

-0.12

1.30

-0.32

0.51

0.59

-1.05

-0.88

-0.25

1.23

-0.63

0.33

-0.85

-0.78

-0.09

0.12

1.36

-0.81

0.08

Information Ratio

Rank

14.52%

13.20%

12.02%

13.17%

15.05%

16.51%

15.60%

14.57%

11.78%

16.46%

14.55%

13.77%

14.02%

14.27%

15.43%

11.78%

12.03%

13.86%

18.83%

14.49%

15.12%

9.20%

10.60%

15.09%

15.47%

14.90%

13.14%

11.40%

5 Year Return

Rank

Lower volatility = higher ranking

10.42%

10.34%

9.82%

10.79%

10.49%

10.30%

10.07%

11.04%

10.26%

9.87%

10.09%

11.95%

9.69%

10.38%

10.19%

10.95%

9.89%

10.46%

11.14%

11.18%

10.52%

11.01%

10.29%

9.91%

10.57%

11.35%

Lower volatility = higher ranking

10.22%

10.68%

Volatility (Risk)

0.34%

-0.98%

-2.15%

-0.84%

1.04%

2.33%

1.50%

1.59%

-2.40%

2.28%

0.37%

1.44%

-0.15%

0.94%

1.25%

-2.40%

-2.15%

-0.31%

4.65%

0.31%

0.95%

-4.13%

-3.58%

0.91%

1.29%

2.57%

-1.03%

-0.93%

Active Return

Calculated on 5 year performance returns

Rank

2.71%

2.32%

3.10%

3.90%

2.02%

2.45%

2.36%

2.31%

2.64%

1.99%

2.33%

0.85%

2.16%

1.76%

2.04%

3.99%

2.68%

3.79%

3.98%

3.23%

2.79%

3.30%

3.59%

2.31%

3.72%

2.66%

1.93%

3.12%

Tracking Error

0.12

-0.42

-0.69

-0.22

0.51

0.95

0.64

0.69

-0.91

1.15

0.16

1.68

-0.07

0.53

0.61

-0.60

-0.80

-0.08

1.17

0.10

0.34

-1.25

-1.00

0.40

0.35

0.97

-0.53

-0.30

Information Ratio

Rank

MANAGER WATCH™ SURVEY

SA Equity Manager Watch™ Survey Risk

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

6.16%

6.68%

7.59%

11.95%

11.89%

4.92%

1.80%

9.24%

FTSE/JSE Capped All Share Index

FTSE/JSE SWIX All Share Index

FTSE/JSE Mid Cap Index

FTSE/JSE Small Cap Index

FTSE/JSE Top 40 Index

FTSE/JSE Value Index

FTSE/JSE Growth Index

5.86%

Rank

FTSE/JSE All Share Index

Market Indices & Statistics

FTSE/JSE SWIX All Share Index

Old Mutual Multi-Managers Equity Portfolio

10.28%

1.59%

FTSE/JSE All Share Index

FTSE/JSE SWIX All Share Index

Stanlib Value Fund

Sygnia Absolute Focus Equity Fund

4.60%

-0.90%

FTSE/JSE All Share Index

SIM Unconstrained Equity

SIM Top Choice Equity Fund

Stanlib Unconstrained Equity

8.79%

OMIG Premium Equity

8.65%

8.07%

FTSE/JSE SWIX All Share Index

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

4.79%

FTSE/JSE SWIX All Share Index

Oasis Specialist Domestic

OMIG Managed Volatility Capability

FTSE/JSE SWIX: 97%; STeFI: 3%

7.87%

FTSE/JSE SWIX All Share Index

South Africa OE (ASISA) Domestic Equity General

Mazi Capital Equity SWIX Composite

2.83%

FTSE/JSE All Share Index

FTSE/JSE SWIX All Share Index

Foord Domestic Equity

Investec Equity

12.15%

7.18%

11.61%

FTSE/JSE SWIX All Share Index

Coronation Houseview Equity

Element Equity

FTSE/JSE All Share Index

5.60%

1.03%

FTSE/JSE SWIX All Share Index

4.22%

FTSE/JSE SWIX All Share Index

Coronation Aggressive Equity

Investec Value

2.02%

FTSE/JSE All Share Index

Cannon All Equities ALSI Portfolio

Kagiso Managed Equity Fund

4.89%

11.05%

FTSE/JSE All Share Index

3 year return

Rank

10.23%

14.54%

10.50%

11.71%

13.82%

10.29%

9.81%

9.80%

Lower volatility = higher ranking

9.82%

9.34%

12.46%

12.23%

12.80%

10.26%

9.08%

9.69%

11.49%

9.73%

10.95%

24.33%

10.53%

9.63%

13.88%

10.75%

11.92%

11.18%

10.36%

9.86%

Volatility (Risk)

-1.73%

2.69%

-4.57%

-7.05%

-2.97%

1.08%

1.20%

0.48%

0.17%

0.28%

-4.76%

5.99%

4.02%

1.03%

-6.56%

-1.99%

-3.36%

-4.13%

4.89%

-1.27%

Active Return

Calculated on 3 year performance returns

ABSA Asset Management Value FTSE/JSE All Share Index

Benchmark

Allan Gray

Not Benchmark Cognisant

Investment Managers

Investment Data to the end of December 2016 – Volatility vs Return

Rank

3.42%

3.32%

10.28%

6.42%

7.86%

3.79%

1.94%

3.84%

6.39%

3.80%

6.43%

23.17%

4.29%

3.41%

11.68%

4.20%

6.37%

9.49%

3.95%

3.48%

Tracking Error

-0.51

0.81

-0.44

-1.10

-0.38

0.28

0.62

0.12

0.03

0.07

-0.74

0.26

0.94

0.30

-0.56

-0.47

-0.53

-0.44

1.24

-0.37

Information Ratio

Rank

16.00%

8.54%

12.33%

17.04%

14.57%

14.18%

13.33%

Rank

12.97%

10.84%

14.81%

8.65%

8.10%

10.40%

15.91%

14.90%

13.98%

11.09%

16.69%

10.33%

7.70%

16.33%

15.95%

3.21%

14.77%

13.27%

6.82%

14.92%

11.18%

5 Year Return

Rank

11.41%

12.71%

11.60%

10.11%

11.61%

10.03%

10.36%

10.46%

Lower volatility = higher ranking

10.17%

8.85%

11.25%

11.59%

12.04%

11.00%

9.17%

8.87%

10.96%

9.39%

11.27%

20.61%

10.72%

10.21%

12.67%

11.13%

11.97%

11.10%

9.96%

10.05%

Volatility (Risk)

-3.34%

0.63%

-4.32%

-4.88%

-3.61%

1.96%

0.72%

-0.20%

0.80%

2.51%

-3.85%

-5.27%

2.15%

2.97%

-10.97%

0.59%

-0.91%

-7.75%

1.95%

-1.79%

Active Return

Calculated on 5 year performance returns

Rank

3.70%

3.14%

8.50%

5.72%

6.48%

4.21%

1.94%

4.07%

5.24%

3.56%

6.00%

18.86%

4.24%

3.67%

9.97%

4.26%

5.66%

8.41%

4.09%

3.06%

Tracking Error

-0.90

0.20

-0.51

-0.85

-0.56

0.47

0.37

-0.05

0.15

0.71

-0.64

-0.28

0.51

0.81

-1.10

0.14

-0.16

-0.92

0.48

-0.59

Information Ratio

Rank

SECTION 3

SA Equity Manager Watch™ Survey Risk (continued)

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

MANAGER WATCH™ SURVEY

SA Equity Manager Watch™ Survey – Volatility vs Return Volatility vs Return Scatterplot on SA Equity Managers – Enhanced Index and Benchmark Cognisant 3 Years ended 31 December 2016 14.0% Fairtree Capital Equity Fund

13.0% 12.0% 11.0% Mergence SWIX Fund

10.0%

Prudential Core Equity SWIX Absa Asset Management Large Cap

Return (p.a.)

9.0%

OMIG Double Alpha Top 40 OMIG Managed Aplha Equity Argon SA Equity Fund Abax Equity Fund

Prudential Deep Value Equity

8.0%

Mergence CAPI Fund Aeon Active Equity Fund Momentum MoM Classic Equity Prudential Core Equity ALSI FTSE/JSE All Share Index Sygnia Core Equity Fund Investment Solutions Pure Equity

7.0% 6.0% 5.0%

FTSE/JSE SWIX All Share Index SIM Aggressive Equity First Avenue General Equity Stanlib Enhanced Index Fund Prescient Equity Active Quant SIM Moderate Equity Prescient Equity Quant Fund

4.0%

Afena Capital Equity SWIX

Afena Capital Equity CAPI Kagiso Core SWIX Fund

3.0%

Stanlib Core Equity

Old Mutual Equities Classic Portfolio

2.0%

Coronation Core Equity

1.0%

Vunani Core Equity Fund

0% 6.0%

7.0%

8.0%

9.0%

10%

11%

12%

13%

14%

Volatility (p.a.) (standard deviation)

Volatility vs Return Scatterplot on SA Equity Managers – Not Benchmark Cognisant 3 years ended 31 December 2016 18.0% 16.0%

Sygnia Absolute Focus Equity Fund

14.0%

OMIG Managed Volatility Capability

Return (p.a.)

10.0% 8.0% 6.0%

OMIG Premium Equity Mazi Capital Equity SWIX Composite

2.0%

-2.0%

Foord Domestic Equity Old Mutual Multi-Managers Equity Portfolio

-4.0% 5.8%

7.8%

Allan Gray SIM Top Choice Equity Fund FTSE/JSE SWIX All Share Index

4.0%

0.0%

Investec Value

Investec Equity

12.0%

9.8%

FTSE/JSE All Share Index Coronation Houseview Equity Oasis Specialist Domestic SIM Unconstrained Equity Coronation Aggressive Equity Kagiso Managed Equity Fund Stanlib Value Fund Element Equity Stanlib Unconstrained Equity

Cannon All Equities ALSI Portfolio ABSA Asset Management Value

11.8%

13.8%

15.8%

17.8%

19.8%

Volatility (p.a.) (standard deviation)

19.8%

21.8%

23.8%

24.8%

SECTION 3

Composite Dispersion of SA Equity Manager Watchâ&#x201E;˘ Survey 1 Year to 31 December 2016 Benchmark Cognisant Absa Asset Management Core Equity

0.43%

Aeon Active Equity Fund

0.02% 0.14%

Afena Capital Equity SWIX 0.04%

Argon SA Equity Fund Coronation Core Equity

0.63% 0.06%

First Avenue General Equity

0.78%

Mergence SWIX Fund Old Mutual Equities Classic Portfolio

0.42%

Prudential Core Equity SWIX

0.07%

Prudential Deep Value Equity

0.32%

SIM Moderate Equity

0.42%

Vunani Core Equity Fund

0.48% 0.00%

0.10%

0.20%

0.30%

0.40%

Composite Dispersion (1yr)

0.60%

0.70%

Composite Dispersion (3yrs)

0.80%

0.90%

Minimum Return

Maximum Return

Absa Asset Management Core Equity

1.27%

2.30%

1.64%

0.43%

Aeon Active Equity Fund

1.97%

2.02%

2.00%

0.02%

Afena Capital Equity SWIX

8.32%

8.65%

8.44%

0.14%

0.03%

0.04%

Argon SA Equity Fund

0.32%

0.43%

0.37%

0.04%

0.00%

0.02%

Coronation Core Equity

3.60%

5.75%

5.69%

0.63%

0.05%

First Avenue General Equity

-3.04%

-2.39%

-2.57%

0.06%

0.08%

0.07%

Mergence SWIX Fund

2.51%

5.03%

4.81%

0.78%

0.42%

0.01%

Old Mutual Equities Classic Portfolio

-0.20%

0.86%

-0.01%

0.42%

Prudential Core Equity SWIX

5.75%

6.01%

5.84%

0.07%

Prudential Deep Value Equity

4.43%

5.46%

5.14%

0.32%

0.42%

SIM Moderate Equity

4.82%

5.84%

5.26%

0.42%

Vunani Core Equity Fund

1.43%

2.65%

2.63%

0.48%

Benchmark Cognisant

Median Composite Return

0.50%

Composite Dispersion (5yrs) *

* Data not available.

MANAGER WATCHâ&#x201E;˘ SURVEY

Composite Dispersion of SA Equity Manager Watchâ&#x201E;˘ Survey 1 Year to 31 December 2016 Not Benchmark Cognisant 1.54%

ABSA Asset Management Value Allan Gray

0.41%

Coronation Aggressive Equity

0.30%

Coronation Houseview Equity

0.12%

First Avenue Focused Equity

0.45%

Foord Domestic Equity

0.24%

Investec Equity

0.15%

Investec Value

10.16%

Kagiso Managed Equity Fund

0.08%

Mazi Capital Equity SWIX Composite

0.59%

Oasis Specialist Domestic

2.01%

SIM Unconstrained Equity

0.28% 0.00%

Not Benchmark Cognisant

Minimum Return

Maximum Return

4.00%

Median Composite Return

6.00%

Composite Dispersion (1yr)

8.00%

10.00%

Composite Dispersion (3yrs)

12.00%

Composite Dispersion (5yrs)

ABSA Asset Management Value

3.35%

8.04%

6.41%

1.54%

0.98%

Allan Gray

12.31%

13.90%

13.15%

0.41%

0.25%

0.35%

Coronation Aggressive Equity

15.64%

16.59%

16.08%

0.30%

0.13%

0.06%

Coronation Houseview Equity

6.58%

7.21%

6.86%

0.12%

0.07%

0.05%

First Avenue Focused Equity

-5.64%

-3.60%

-4.68%

0.45%

0.08%

Foord Domestic Equity

2.98%

3.73%

3.40%

0.24%

0.36%

0.44%

Investec Equity

2.06%

2.55%

2.26%

0.15%

0.10%

Investec Value

35.62%

63.83%

56.42%

10.16%

1.47%

0.83%

Kagiso Managed Equity Fund

10.69%

10.87%

10.73%

0.08%

Mazi Capital Equity SWIX Composite

-4.43%

-2.73%

-3.71%

0.59%

0.89%

1.10%

Oasis Specialist Domestic

12.82%

19.63%

16.00%

2.01%

0.47%

0.61%

SIM Unconstrained Equity

16.81%

17.55%

17.35%

0.28%

* Data not available.

2.00%

SECTION 3

SA Bond Manager Watch™ Survey 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.

Range of Returns of Bond Universe for the periods ending 31 December 2016 30% 25% 20% 15% 10% 5% 0% 1 Year

3 Years (p.a.)

5 Years (p.a.) 25% – 75%

7 Years (p.a.)

Min – Max

10 Years (p.a.)

Median

Return Statistics (Investable)

Highest

Return - 1 Year

Return - 3 Years (p.a.)

Return - 5 Years (p.a.)

Return - 7 Years (p.a.)

17.51%

9.38%

10.08%

11.41%

Return - 10 Years (p.a.) 10.44%

Upper Quartile

16.70%

7.93%

8.54%

9.74%

8.97%

Median

16.36%

7.41%

7.99%

9.42%

8.88%

Average

16.36%

7.60%

8.25%

9.55%

8.98%

Lower Quartile

16.00%

7.33%

7.96%

9.33%

8.75%

Lowest

15.47%

7.09%

7.79%

8.82%

8.46%

Range

2.04%

2.29%

2.59%

1.99%

Number of participants

Note: The statistics above only include those portfolios that are investable, in other words those portfolios that are closed to new business will be excluded from the calculations.

MANAGER WATCH™ SURVEY

General information Investment Managers

GIPS™ Managed ITO (Verified/ Regulation Compliant) 28? (Y/N)

Benchmark Description

Portfolio Modified Duration

% Invested in AAA Rated Instruments

No. of Portfolio Funds in Size (R M) Composite

Specialist Bonds Absa Asset Management Bond Fund

All Bond Index

6.70

79.79%

1 250

Aluwani Capital Partners - SA Bond Composite

All Bond Index

7.06

76.11%

4 620

Argon SA Bond Fund

All Bond Index

6.72

86.24%

1 209

Atlantic Bond Composite

All Bond Index

7.34

44.61%

141

Cadiz Houseview Bond Fund

All Bond Index

8.30

60.74%

687

Coronation Active Bond Portfolio (Composite)

All Bond Index

7.3

77.63%

5 480

Coronation Strategic Bond Composite

All Bond Index

7.0

72.11%

2 999

Futuregrowth Core Bond Composite

All Bond Index

6.5

59.90%

18 547

Futuregrowth Yield Enhanced

All Bond Index

7.14

25.14%

12 014

Investec Corporate Bond Composite

All Bond Index

6.88

34.06%

12 409

Investec Triple Alpha

All Bond Index

6.93

62.17%

3 057

N/A

All Bond Index

5.84

N/A

4 319

JM BUSHA BondPlus

All Bond Index

6.92

1 179

MMI - SA Bond

All Bond Index

7.18

82.54%

13 473

Investment Solutions Pure Fixed Interest Portfolio

Momentum MoM Moderate Bond FoF

All Bond Index

6.99

70.46%

186

Pan Africa AM Segregated Domestic Bond

All Bond Index

6.96

62.69%

1 556

Prescient Bond Quant

All Bond Index

7.09

85.50%

375

Prescient Bond QuantPlus

All Bond Index

6.91

75.50%

7 712

Prudential Yield Enhanced Portfolio

All Bond Index

7.27

79.79%

2 534

SIM Institutional Total Return Bond Fund

All Bond Index

7.40

74.84%

6 931

Stanlib Core Bond Portfolio

All Bond Index

6.83

68.00%

6 673

N/A

All Bond Index

6.32

72.60%

N/A

4 325

All Bond Index

7.10

61.34%

STANLIB Multi-Manager Bond Vunani Active Bond Fund Total

1 040 112 716

Inflation Linked Bonds Aluwani Capital Partners - Inflation Linked Bond Composite

Barclays ILB Index (ILBI)

11.86

61.3%

2 166

Coronation Absolute Bond Portfolio

CPI + 4%pa

3.97

27.3%

6 142

11.89

77.5%

3 111

Investec Inflation Linked Bond Composite

Barclays - BESA SA Inflation Linked Index

Prescient Inflation Linked Bond Composite

90 ILBI / 10 STeFI Call

10.2

72.2%

3 417

Barclays BESA Govt Inflation-linked Bond Index

11.82

80.9%

2 474

SIM Inflation Linked Bond Fund

Total

15 145

Inflation Linked Bonds All Bond Index V = Verified C = Compliant

7.14

SECTION 3

Investment Data to the end of December 2016 – Performance Data Investment Managers

1 Year

Rank

3 Years (p.a.)

Rank

5 Years (p.a.)

Rank

7 Years (p.a.)

Rank

10 Years (p.a.)

Specialist Bonds Absa Asset Management Bond Fund Aluwani Capital Partners - SA Bond Composite Argon SA Bond Fund Atlantic Bond Composite Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Coronation Strategic Bond Composite Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha Investment Solutions Pure Fixed Interest Portfolio JM BUSHA BondPlus MMI - SA Bond Momentum MoM Moderate Bond FoF Pan Africa AM Segregated Domestic Bond Prescient Bond Quant Prescient Bond QuantPlus Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund Stanlib Core Bond Portfolio STANLIB Multi-Manager Bond Vunani Active Bond Fund

16.63% 16.28% 16.37% 16.70% 15.47% 16.65% 16.12% 15.79% 16.95% 17.13% 15.99% 16.53% 15.73% 16.00% 16.02% 15.82% 16.11% 16.36% 16.52% 16.73% 17.51% 16.24% 16.93%

Specialist Bonds Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of participants

17.51% 16.70% 16.36% 16.36% 16.00% 15.47% 2.04% 23

Inflation Linked Bonds Aluwani Capital Partners - Inflation Linked Bond Composite Coronation Absolute Bond Portfolio Investec Inflation Linked Bond Composite Prescient Inflation Linked Bond Composite SIM Inflation Linked Bond Fund

6.82%

10.02% 5.62% 6.64% 6.43%

7.82% 6.76% 6.81% 6.97%

8.25% 7.89% 7.38% 8.12%

10.07% * 8.45% *

10.44% * * *

Inflation Linked Bonds Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of participants

10.02% 7.48% 6.53% 7.18% 6.23% 5.62% 4.40% 5

7.82% 7.18% 6.89% 7.09% 6.79% 6.76% 1.05% 4

8.25% 8.15% 8.01% 7.91% 7.76% 7.38% 0.87% 4

10.07% 9.67% 9.26% 9.26% 8.86% 8.45% 1.62% 2

* * * * * * * 1

Indices All Bond Index 1-3 Year Bond Index 3-7 Year Bond Index 7-12 Year Bond Index 12+ Year Bond Index Barclays - BESA SA Inflation Linked Index BESA Standard Bank Credit Index GOVI OTHI STeFI

15.45% 10.08% 13.44% 15.40% 17.46% 6.27% 1.37% 14.93% 16.73% 7.39%

6.90% 6.78% 7.30% 6.56% 7.23% 6.99% 0.65% 6.81% 7.40% 6.59%

7.36% 6.60% 7.33% 7.41% 7.78% 8.06% 2.89% 7.21% 8.21% 6.10%

8.62% 7.23% 8.50% 8.99% 8.64% 9.17% 6.38% 8.32% 9.44% 6.17%

7.97% 7.82% 8.27% 8.15% 7.14% 9.45% 6.58% 7.58% 8.32% 7.31%

8 13 11 6 23 7 15 21 3 2 19 9 22 18 17 20 16 12 10 5 1 14 4

* 7.32% 8.03% * 7.38% 8.01% 8.20% 7.20% 9.38% 7.77% 7.35% 8.05% 7.44% 7.26% 7.27% 7.33% 7.41% 7.86% 7.09% 7.33% 7.61% * 7.46%

9.38% 7.93% 7.41% 7.60% 7.33% 7.09% 2.29% 20

16 4 12 5 2 19 1 7 13 3 10 18 17 14 11 6 20 15 8 9

* 7.99% 8.95% * 8.13% 8.69% 9.01% 8.09% 10.08% 8.64% 7.99% 8.43% 7.81% 7.94% 7.87% 7.97% 7.79% 7.97% 7.93% 7.97% 8.33% * 8.36%

10.08% 8.54% 7.99% 8.25% 7.96% 7.79% 2.29% 20

11 3 9 4 2 10 1 5 12 6 19 16 18 15 20 13 17 14 8 7

* 9.39% 9.32% * 9.35% 9.85% 10.13% 9.42% 11.41% 10.44% 9.43% 9.54% 8.82% 9.34% 9.19% 9.35% 9.08% 9.11% 9.60% 9.43% 9.76% * 9.71%

11.41% 9.74% 9.42% 9.55% 9.33% 8.82% 2.59% 20

12 16 13 4 3 11 1 2 10 8 20 15 17 14 19 18 7 9 5 6

* 8.97% 8.46% * 8.80% 9.10% * 8.70% 10.44% 9.73% * 8.94% * 8.94% 8.89% 8.81% 8.59% 9.00% 8.87% 8.65% 8.91% * *

Rank

5 16 12 3 13 1 2 7 6 9 11 15 4 10 14 8

10.44% 8.97% 8.88% 8.98% 8.75% 8.46% 1.99% 16

MANAGER WATCH™ SURVEY

Investment Data to the end of December for the past 5 Calendar years Investment Managers Specialist Bonds Absa Asset Management Bond Fund Aluwani Capital Partners - SA Bond Composite Argon SA Bond Fund Atlantic Bond Composite Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Coronation Strategic Bond Composite Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha Investment Solutions Pure Fixed Interest Portfolio JM BUSHA BondPlus MMI - SA Bond Momentum MoM Moderate Bond FoF Pan Africa AM Segregated Domestic Bond Prescient Bond Quant Prescient Bond QuantPlus Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund Stanlib Core Bond Portfolio STANLIB Multi-Manager Bond Vunani Active Bond Fund

2015 -1.14% -3.52% -2.47% -2.48% -2.51% -2.98% -2.33% -3.56% -0.82% -0.20% -2.00% -2.56% -2.22% -3.53% -3.48% -3.21% -3.08% -1.67% -4.05% -4.29% -3.25% -2.67% -3.25%

Rank 3 19 8 9 10 13 7 21 2 1 5 11 6 20 18 15 14 4 22 23 16 12 17

2014 10.27% 10.18% 11.08% 10.92% 9.98% 11.33% 11.69% 10.33% 12.81% 7.08% 8.83% 11.08% 9.59% 10.27% 10.22% 10.31% 10.12% 9.66% 9.86% 10.67% 9.61% * 9.69%

Rank 11 13 5 6 15 3 2 8 1 22 21 4 20 10 12 9 14 18 16 7 19 17

2013 * 1.38% 2.69% 2.32% 1.93% 2.30% 2.76% 2.10% 3.29% 3.22% 1.91% 2.40% 1.28% 1.36% 1.63% 1.72% 1.60% 3.01% 1.78% 1.70% 1.66% * 2.41%

Rank

19 5 8 11 9 4 10 1 2 12 7 21 20 17 14 18 3 13 15 16 6

2012 * 17.21% 18.55% * 17.14% 17.66% 18.25% 17.30% 19.59% 17.16% 16.49% 16.05% 15.97% 17.17% 16.44% 16.63% 15.55% 13.54% 17.14% 16.69% 17.77% * 17.56%

Rank

8 2 12 5 3 7 1 10 15 17 18 9 16 14 19 20 11 13 4 6

2011 * 9.63% 6.81% * 8.98% 9.85% 9.70% 9.35% 11.27% 11.56% 9.82% 9.27% 9.16% 9.58% 9.38% 9.14% 9.46% 9.17% 10.58% 9.67% 10.61% * 9.74%

Specialist Bonds Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of participants

-0.20% -2.27% -2.67% -2.67% -3.37% -4.29% 4.09% 23

12.81% 10.85% 10.25% 10.25% 9.74% 7.08% 5.73% 22

3.29% 2.41% 1.93% 2.12% 1.66% 1.28% 2.01% 21

19.59% 17.59% 17.15% 16.99% 16.48% 13.54% 6.05% 20

11.56% 9.83% 9.61% 9.64% 9.25% 6.81% 4.75% 20

4.11% 4.98% 3.88% 3.66% 3.73%

* 8.51% 10.91% 10.22% 10.87%

* 4.56% 1.11% 1.35% 1.12%

* 13.44% 18.81% * 19.39%

* 13.88% 13.56% * *

Inflation Linked Bonds Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of participants

4.98% 4.16% 3.81% 4.06% 3.72% 3.66% 1.32% 5

10.91% 10.88% 10.55% 10.13% 9.80% 8.51% 2.40% 4

4.56% 2.15% 1.23% 2.03% 1.12% 1.11% 3.44%

19.39% 19.10% 18.81% 17.21% 16.12% 13.44% 5.95% 3

13.88% 13.80% 13.72% 13.72% 13.64% 13.56% 0.32% 2

Indices All Bond Index 1-3 Year Bond Index 3-7 Year Bond Index 7-12 Year Bond Index 12+ Year Bond Index Barclays - BESA SA Inflation Linked Index BESA Standard Bank Credit Index GOVI OTHI STeFI

-3.93% 4.10% 0.93% -3.19% -7.04% 3.68% -7.85% -3.44% -5.08% 6.49%

10.15% 6.23% 7.90% 8.30% 12.91% 11.15% 9.14% 9.81% 11.81% 5.90%

0.64% 4.42% 1.46% -0.21% -0.69% 0.79% -2.29% 0.52% 1.49% 5.18%

15.99% 8.30% 13.65% 18.40% 18.81% 19.37% 15.74% 15.64% 17.98% 5.55%

8.82% 8.90% 10.18% 10.20% 6.00% 13.05% 10.95% 7.84% 8.10% 5.73%

Rank

10 20 19 5 8 14 2 1 6 15 17 11 13 18 12 16 4 9 3 7

8.03% 7.32% 7.38% 8.01% 8.20% 7.20% 9.38% 7.77% 7.35% 8.05% 7.44% 7.26% 7.27% 7.33% 7.41% 7.86% 7.09% 7.33% 7.61% 7.46%

9.38% 7.90% 7.42% 7.64% 7.32% 7.09% 20

7.82% 6.76% 6.81% 6.97%

7.82% 7.18% 6.89% 7.09% 6.79% 6.76% 4

6.90% 6.99% 0.65%

Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Number of participants

Inflation Linked Bonds Coronation Absolute Bond Portfolio Investec Inflation Linked Bond Composite Prescient Inflation Linked Bond Composite SIM Inflation Linked Bond Fund

Statistics Highest Upper Quartile Median Average Lower Quartile Lowest Number of participants

Indices All Bond Index Barclays - BESA SA Inflation Linked Index BESA Standard Bank Credit Index

4 16 12 5 2 19 1 7 13 3 10 18 17 14 11 6 20 15 8 9

Rank

8.58% 5.31% 7.64%

5.30% 5.27% 4.95% 4.44% 4.13% 2.57% 4

2.57% 5.30% 4.64% 5.26%

8.99% 8.40% 8.23% 8.25% 8.09% 7.66% 20

8.31% 12 8.38% 14 7.66% 1 8.22% 10 7.87% 2 8.57% 18 8.23% 11 8.07% 5 8.15% 7 7.89% 3 8.03% 4 8.37% 13 8.44% 16 8.16% 8 8.39% 15 8.09% 6 8.67% 19 8.99% 20 8.44% 17 8.17% 9 Lower volatility = higher ranking

3 Year Volatility Rank Return (p.a.) (Risk)

2.48% 0.99% 0.52% 0.73% 0.42% 0.19% 20

1.13% 0.41% 0.47% 1.11% 1.30% 0.30% 2.48% 0.87% 0.45% 1.14% 0.53% 0.36% 0.37% 0.43% 0.51% 0.95% 0.19% 0.42% 0.71% 0.56%

Active Return

Calculated on 3 year Performance Returns

Specialist Bonds Argon SA Bond Fund Aluwani Capital Partners - SA Bond Composite Cadiz Houseview Bond Fund Coronation Active Bond Portfolio (Composite) Coronation Strategic Bond Composite Futuregrowth Core Bond Composite Futuregrowth Yield Enhanced Investec Corporate Bond Composite Investec Triple Alpha Investment Solutions Pure Fixed Interest Portfolio JM BUSHA BondPlus MMI - SA Bond Momentum MoM Moderate Bond FoF Pan Africa AM Segregated Domestic Bond Prescient Bond Quant Prescient Bond QuantPlus Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund Stanlib Core Bond Portfolio Vunani Active Bond Fund

Investment Managers

Investment Data to the end of December 2016 – Volatility vs Return

4 16 12 5 2 19 1 7 13 3 10 18 17 14 11 6 20 15 8 9

2.71% 1.05% 0.81% 0.93% 0.63% 0.38% 20

0.81% 0.56% 1.36% 0.60% 1.09% 0.64% 0.94% 2.71% 1.46% 0.94% 0.82% 0.51% 1.04% 0.64% 0.38% 1.04% 0.65% 0.53% 0.73% 1.07%

Tracking Rank Error

2.63 1.19 0.72 0.88 0.44 0.29 20

1.39 0.73 0.35 1.85 1.19 0.46 2.63 0.32 0.31 1.21 0.65 0.70 0.35 0.68 1.34 0.92 0.29 0.81 0.97 0.52

Information Ratio 3 10 17 2 6 15 1 18 19 5 13 11 16 12 4 8 20 9 7 14

7.36% 8.06% 2.89%

8.25% 8.15% 8.01% 7.91% 7.76% 7.38% 4

8.25% 7.89% 7.38% 8.12%

10.08% 8.48% 8.04% 8.30% 7.96% 7.79% 20

8.95% 7.99% 8.13% 8.69% 9.01% 8.09% 10.08% 8.64% 7.99% 8.43% 7.81% 7.94% 7.87% 7.97% 7.79% 7.97% 7.93% 7.97% 8.33% 8.36%

3 11 9 4 2 10 1 5 12 6 19 16 18 15 20 13 17 14 8 7

7.91% 6.13% 7.72%

6.03% 5.90% 5.47% 4.94% 4.50% 2.78% 4

2.78% 5.86% 5.08% 6.03%

8.10% 7.71% 7.54% 7.53% 7.34% 6.95% 20

7.62% 13 7.72% 16 7.28% 4 7.54% 11 7.36% 6 7.74% 17 7.47% 8 7.22% 3 7.43% 7 7.15% 2 7.30% 5 7.71% 15 7.68% 14 7.53% 10 7.60% 12 6.95% 1 7.97% 19 8.10% 20 7.77% 18 7.52% 9 Lower volatility = higher ranking 2.72% 1.13% 0.68% 0.94% 0.60% 0.43% 20

1.59% 0.63% 0.77% 1.33% 1.65% 0.73% 2.72% 1.29% 0.63% 1.07% 0.45% 0.59% 0.52% 0.61% 0.43% 0.62% 0.57% 0.61% 0.98% 1.00%

Calculated on 5 year Performance Returns 5 Year Active Volatility Rank Return Rank Rank Return (Risk) (p.a.) 3 11 9 4 2 10 1 5 12 6 19 16 18 15 20 13 17 14 8 7

Rank

2.23% 1.00% 0.79% 0.89% 0.59% 0.46% 20

0.74% 0.50% 1.09% 0.64% 0.97% 0.76% 1.14% 2.23% 1.23% 0.96% 0.82% 0.46% 0.87% 0.60% 0.50% 1.56% 0.55% 0.56% 0.67% 0.91%

Tracking Error

2.38 1.33 1.06 1.14 0.68 0.39 20

2.16 1.27 0.71 2.09 1.71 0.96 2.38 0.58 0.51 1.12 0.55 1.28 0.59 1.02 0.86 0.39 1.04 1.08 1.46 1.11

2 7 15 3 4 13 1 17 19 8 18 6 16 12 14 20 11 10 5 9

Information Rank Ratio

SECTION 3

SA Bond Manager Watch™ Survey Risk

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.

MANAGER WATCH™ SURVEY

SA Bond Manager Watch™ Survey Active Return vs Tracking Error Scatterplot on SA Bond Managers – 3 Years ended 31 December 2016 IR = 2

3.0%

2.5% Futuregrowth Yield Enhanced

IR = 1

2.0%

Return (p.a.)

Argon SA Bond Fund JM BUSHA BondPlus

1.5%

Investment Solutions Pure Fixed Interest Portfolio

Coronation Active Bond Portfolio (Composite)

IR = 0.5

Coronation Strategic Bond Composite

1.0%

Prescient Bond QuantPlus

Prescient Bond Quant

Investec Corporate Bond Composite

Stanlib Core Bond Portfolio Cadiz Houseview Bond Fund Investec Triple Alpha

0.5%

Momentum Moderate Bond FoF

0.0%

-0.5%

MMI - SA Bond SIM Institutional Total Return Bond Fund Aluwani Capital Partners - SA Bond Composite

0.1%

Vunani Active Bond Fund Pan Africa AM Segregated Domestic Bond Futuregrowth Core Bond Composite Prudential

0.6%

1.1%

1.6%

2.1%

2.6%

Tracking Error (p.a.)

Volatility vs Return Scatterplot on SA Bond Managers – 3 Years ended 31 December 2016 9.5%

Futuregrowth Yield Enhanced

9.0%

8.5%

Coronation Active Bond Portfolio (Composite)

Return (p.a.)

Coronation Strategic Bond Composite

Argon SA Bond Fund

Investment Solutions Pure Fixed Interest Portfolio

8.0%

Prescient Bond QuantPlus Investec Corporate Bond Composite Stanlib Core Bond Portfolio Vunani Active Bond Fund Stanlib Core Bond Portfolio

7.5%

Cadiz Houseview Bond Fund SIM Institutional Total Return Bond Fund Futuregrowth Core Bond Composite

JM BUSHA BondPlus

7.0%

Investec Triple Alpha Pan Africa AM Segregated Domestic Bond

6.5%

All Bond Index Momentum Moderate Bond FoF MMI - SA Bond Aluwani Capital Partners - SA Bond Composite Prescient Bond Quant

6.0% 6.5%

7.0%

7.5%

8.0%

8.5%

Volatility (p.a.) (standard deviation)

9.0%

9.5%

10.0%

SECTION 3

Composite Dispersion of SA Bond Manager Watchâ&#x201E;˘ Survey 1 Year to 31 December 2016 Specialist Bonds Aluwani Capital Partners â&#x20AC;&#x201C; SA Bond Composite

0.14%

Coronation Active Bond Portfolio (Composite)

0.33%

Coronation Strategic Bond Composite

0.44%

Investec Corporate Bond Composite

0.11% 0.08%

Investec Triple Alpha

0.18%

JM BUSHA BondPlus Prescient Bond QuantPlus

0.20%

Prudential Yield Enhanced Portfolio

0.19%

SIM Institutional Total Return Bond Fund

0.20%

Stanlib Core Bond Portfolio

1.70%

Vunani Active Bond Fund

0.07% 0.00%

Specialist Bonds Aluwani Capital Partners - SA Bond Composite Coronation Active Bond Portfolio (Composite) Coronation Strategic Bond Composite Investec Corporate Bond Composite Investec Triple Alpha JM BUSHA BondPlus Prescient Bond QuantPlus Prudential Yield Enhanced Portfolio SIM Institutional Total Return Bond Fund Stanlib Core Bond Portfolio Vunani Active Bond Fund

0.20%

Minimum Return

0.40%

Maximum Return

0.60%

0.80%

Median Composite Return

1.00%

1.20%

Composite Dispersion (1yr)

1.40%

1.60%

1.80%

Composite Composite Dispersion (3yrs) Dispersion (5yrs)

16.03%

16.42%

16.14%

0.14%

0.08%

16.39% 15.87% 16.94% 15.85% 15.08% 15.95% 16.33% 16.58% 11.76% 1.54%

17.35% 16.91% 17.19% 16.10% 15.49% 16.60% 16.88% 17.33% 17.95% 1.77%

16.50% 15.92% 17.14% 16.07% 15.44% 16.44% 16.46% 16.81% 16.62% 1.69%

0.33% 0.44% 0.11% 0.08% 0.18% 0.20% 0.19% 0.20% 1.70% 0.07%

0.24% 0.02% 0.55% 0.07% 0.02% 0.10% 0.23% 0.16% 7.56% *

0.20% 0.03% 0.25% 0.05% 0.08% 0.12% * 0.28% 8.28% *

* Data not available.

MANAGER WATCH™ SURVEY

Composite Dispersion of SA Bond Manager Watch™ Survey 1 Year to 31 December 2016

Inflation Linked Bonds Aluwani Capital Partners - Inflation Linked Bond Composite

0.05%

Investec Inflation Linked Bond Composite

0.07%

Prescient Inflation Linked Bond Composite

0.50% 0.00%

0.20%

Minimum Return

Maximum Return

6.27%

6.38%

Investec Inflation Linked Bond Composite

5.94%

6.09%

Prescient Inflation Linked Bond Composite

5.96%

7.11%

Inflation Linked Bonds Aluwani Capital Partners - Inflation Linked Bond Composite

* Data not available.

0.10%

0.30%

Median Composite Return

0.40%

0.60%

Composite Dispersion (3yrs)

Composite Dispersion (5yrs)

0.05%

5.97%

0.07%

0.09%

0.24%

6.87%

0.50%

6.36%

Composite Dispersion (1yr)

0.50%

STANLIB Money Market Portfolio

Coronation Insitutional Cash

Futuregrowth 180 Day Enhanced Money Market Composite

Investec Money Fund

Prudential High Interest Fund

SIM Cash Enhanced

STANLIB Enhanced Yield Fund

V = Verified C = Compliant

Total

STeFI

Taquanta Cash Fund

Segregated

Pooled

STeFI 3mnth Pooled

Pooled

Segregated

Pooled

STeFI

Pooled Segregated

Old Mutual Multi-Managers Money Market.

STeFI STeFI

Segregated

Pooled

Segregated

Pooled

Segregated

Sygnia Money Market Fund

Prescient Yield Quantplus Fund Y

Y Y

Nedgroup Investments Core Income Fund

STeFI

Total

STeFI

Pooled

Segregated

Pooled

STeFI 3mnth Segregated

STeFI

MMI - Money Market (Max 91-180)

Pooled

Segregated

Pooled

Classification

STeFI 3mnth Segregated

STeFI

Benchmark Description

Momentum MoM Money Market

Argon Enhanced Money Market Fund

Investment Solutions Banker

Y Y

Aluwani - Money Market (Max 91-180)

This includes multi-managers thus must be noted as possible "double-counting"

Atlantic Core Cash

Maximum duration up to 91-180 days

Pan Africa Segregated Domestic Cash*

Able to invest in instruments that have a maturity longer that one year

MMI - Money Market (Max 90)

Able to invest in instruments that have a maturity longer that one year

Prescient Money Market Composite

Investec Money Market Fund

Futuregrowth Core Money Market Composite

Nedgroup Investments Corporate Money Market Fund

Coronation Strategic Cash*

Able to invest in instruments that have a maturity longer that one year

Managed ITO Regulation 28? (Y/N)

Nedgroup Investments Money Market Fund

Absa Asset Management Money Market

GIPS™ (Verified / Notes Compliant)

Aluwani - Money Market (Max 90)

Maximum duration up to 90 days

Investment Managers

General information

90 days

Maximum Duration of Portfolio

90 days

180 days

90 days

180 days

Mark-to-Market 180 days

Mark-to-Market

Mark-to-Market 180 days

Mark-to-Market

Mark-to-Market 180 days

Mark-to-Market

Accrual

Mark-to-Market

Mark-to-Market 180 days

Mark-to-Market

Mark-to-Market 180 days

Mark-to-Market

Accrual

Mark-to-Market

Mark-to-Market 90 days

Accrual

Mark-to-Market

Accrual

Mark-to-Market 90 days

Accrual

Mark-to-Market

Accrual

Valuation Methodology

Dec-21

Aug-20

May-19

Jun-24

Nov-19

Dec-19

May-21

Aug-21

May-22

May-21

Dec-21

Oct-19

Jun-21

Oct-19

Jun-21

Dec-20

Oct-17

Aug-18

Oct-17

Sep-17

Sep-19

Dec-17

Sep-19

Mar-20

Dec-17

Maturity of longest dated instrument

100%

97%

95%

100%

84%

90%

75%

100%

90%

89%

98%

100%

97%

100%

66%

100%

92%

100%

96%

100%

99%

100%

N/A

117 726

6 318

2 674

828

10 102

7 630

7 243

15 193

21 140

4 160

389

17 546

9 225

6 047

317

864

7 464

586

226 138

73 346

641

3 880

24 112

9 686

4 186

29 072

14 200

2 992

1 806

62 218

% of portfolio No. of invested Portfolio Funds in in F1 and Size (R m) Composite better rated instruments

SECTION 3

SA Money Market Manager Watch™ Survey

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

90 5

8.86%

8.16%

8.09%

8.21%

8.95%

8.21%

MMI - Money Market (Max 90)

Nedgroup Investments Money Market Fund

Nedgroup Investments Corporate Money Market Fund

Prescient Money Market Composite

Pan Africa Segregated Domestic Cash*

STANLIB Money Market Portfolio

0.70%

6.02% 6.26% 6.79%

6.84%

7.05%

7.58%

8.00%

STeFI Call Deposit Index

STeFI 3 Month NCD Rate

STeFI 6 Month NCD Rate

STeFI 12 Month NCD Rate

7.15%

6.59%

7.42%

7.39%

Alexander Forbes Money Market Index

6.60%

7.12%

Short Term Fixed Interest Rate Index

Market Statistics

0.86%

Number of participants

Range

7.05%

8.19%

8.09%

Lower Quartile

Lowest

7.21% 7.31%

8.23%

8.39%

Median

Average

7.49%

8.95%

8.55%

7.75%

7.11%

7.75%

7.25%

7.07%

7.18%

7.61%

7.21%

Highest

7.12%

7.57%

7.42%

7.05%

Upper Quartile

Statistics

8.14%

Investec Money Market Fund

8.56%

8.23%

Coronation Strategic Cash*

8.54%

Futuregrowth Core Money Market Composite

8.29%

Aluwani - Money Market (Max 90)

3 Years Portfolio

Rank

1 Year

Portfolio

Absa Asset Management Money Market

Maximum duration up to 90 days

Investment Managers

Investment Data to the end of December 2016

Rank

5 Years

6.60%

6.25%

5.83%

5.59%

6.10%

6.14%

0.94%

6.51%

6.60%

6.84%

6.67%

7.06%

7.44%

6.58%

7.44%

6.69%

6.64%

7.12%

6.65%

6.58%

7.24%

6.91%

6.51%

Portfolio

Rank

7 Years

6.73%

6.29%

5.88%

5.64%

6.17%

6.19%

0.84%

6.58%

6.66%

6.91%

6.75%

7.15%

7.42%

6.65%

7.40%

6.78%

6.71%

7.21%

6.70%

6.62%

7.42%

6.98%

6.58%

Portfolio

Rank

10 Years

7.83%

7.43%

7.08%

6.81%

7.31%

7.45%

0.60%

7.73%

7.85%

8.02%

7.93%

8.29%

8.33%

7.80%

8.31%

7.96%

8.33%

7.91%

7.86%

8.29%

7.73%

Portfolio

Rank

MANAGER WATCHâ&#x201E;˘ SURVEY

SA Money Market Manager Watchâ&#x201E;˘ Survey

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

3 Years Portfolio

Rank

1 Year

Portfolio

Rank

Portfolio

5 Years Rank

Portfolio

7 Years Rank

Portfolio

10 Years Rank

8 16 12 13 4 9

8.78%

8.23%

8.60%

8.55%

8.97%

Argon Enhanced Money Market Fund

Coronation Insitutional Cash

Futuregrowth 180 Day Enhanced Money Market Composite

Investec Money Fund

Investment Solutions Banker

8.78%

Taquanta Cash Fund

0.87%

6.02% 6.26% 6.79%

6.84%

7.05%

7.58%

8.00%

STeFI Call Deposit Index

STeFI 3 Month NCD Rate

STeFI 6 Month NCD Rate

STeFI 12 Month NCD Rate

7.15%

6.59%

7.42%

7.39%

Alexander Forbes Money Market Index

6.60%

7.37%

Short Term Fixed Interest Rate Index

Market Statistics

1.56%

Number of participants

Range

6.98%

8.55%

8.01%

Lower Quartile

Lowest

7.52% 7.49%

8.74%

Median

Average

7.64%

9.56%

8.90%

7.85%

7.54%

7.20%

6.98%

7.68%

7.66%

7.40%

7.85%

7.45%

7.61%

7.48%

7.69%

7.35%

7.37%

7.52%

7.33%

Highest

7.53% 7.64%

Upper Quartile

Statistics

8.01%

8.40%

Old Mutual Multi-Managers Money Market

Sygnia Money Market Fund

9.18%

9.56%

SIM Cash Enhanced

8.90%

9.16%

Prescient Yield Quantplus Fund

Prudential High Interest Fund

STANLIB Enhanced Yield Fund

8.71%

Nedgroup Investments Core Income Fund

8.74%

8.66%

Momentum MoM Money Market

MMI - Money Market (Max 91-180)

8.53%

8.89%

Atlantic Core Cash

Aluwani - Money Market (Max 91-180)

6.10%

6.14%

0.71%

6.62%

6.90%

7.05%

7.04%

7.22%

7.33%

7.21%

6.86%

6.62%

7.25%

7.18%

6.95%

7.33%

7.09%

7.24%

7.01%

7.22%

7.02%

6.80%

7.04%

6.89%

7.22%

6.90%

6.17%

6.19%

0.57%

6.79%

7.14%

7.18%

7.25%

7.31%

7.36%

7.33%

6.79%

7.29%

7.14%

7.32%

7.25%

7.36%

7.26%

7.18%

7.14%

6.84%

7.31%

7.45%

0..52%

7.93%

8.17%

8.28%

8.38%

8.42%

8.45%

8.44%

7.94%

8.39%

8.17%

8.44%

8.38%

8.45%

8.38%

8.32%

8.14%

7.93%

8.41%

Maximum duration up to 91 - 180 days

Investment Managers

Investment Data to the end of December 2016

SECTION 3

SA Money Market Manager Watchâ&#x201E;˘ Survey

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

Market statistics Alexander Forbes Money Market Index Short Term Fixed Interest Rate Index

Investment Managers

6.60% 6.59%

0.18% 0.21%

6.14% 6.10%

0.21% 0.24%

Calculated on 3 year Performance Returns Calculated on 5 year Performance Returns 3 Year Return (p.a.) Rank Volatility (Risk) Rank Active Return Rank 5 Year Return (p.a.) Rank Volatility (Risk) Rank Maximum duration up to 90 days Absa Asset Management Money Market 7.05% 11 0.35% 10 0.46% 11 6.51% 10 0.33% 9 Aluwani - Money Market (Max 90) 7.42% 4 0.26% 7 0.82% 4 6.91% 4 0.28% 6 Coronation Strategic Cash* 7.57% 3 0.24% 5 0.98% 3 7.24% 2 0.26% 2 Futuregrowth Core Money Market Composite 7.12% 8 0.28% 8 0.53% 8 6.58% 8 0.29% 7 Investec Money Market Fund 7.21% 6 0.23% 2 0.62% 6 6.65% 6 0.26% 3 MMI - Money Market (Max 90) 7.61% 2 0.29% 9 1.02% 2 7.12% 3 0.29% 8 Nedgroup Investments Money Market Fund 7.18% 7 0.23% 1 0.59% 7 6.64% 7 0.25% 1 Nedgroup Investments Corporate Money Market Fund 7.07% 10 0.24% 4 0.48% 10 * * Prescient Money Market Composite 7.25% 5 0.23% 3 0.66% 5 6.69% 5 0.26% 4 Pan Africa Segregated Domestic Cash* 7.75% 1 0.37% 11 1.16% 1 7.44% 1 0.55% 10 STANLIB Money Market Portfolio 7.11% 9 0.25% 6 0.52% 9 6.58% 9 0.27% 5 Lower volatility = higher Lower volatility = higher ranking ranking Maximum duration up to 91 - 180 days Atlantic Core Cash 7.53% 8 0.34% 6 0.93% 8 6.90% 13 0.34% 7 Aluwani - Money Market (Max 91-180) 7.64% 5 0.30% 4 1.04% 5 7.22% 4 0.28% 4 Argon Enhanced Money Market Fund 7.33% 15 0.41% 11 0.72% 15 6.89% 14 0.38% 13 Coronation Insitutional Cash 7.52% 9 0.25% 1 0.91% 9 7.04% 9 0.26% 1 Futuregrowth 180 Day Enhanced Money Market Composite 7.37% 13 0.33% 5 0.76% 13 6.80% 16 0.34% 6 Investec Money Fund 7.35% 14 0.39% 8 0.74% 14 7.02% 10 0.33% 5 Investment Solutions Banker 7.69% 2 0.41% 10 1.09% 2 7.22% 5 0.37% 12 Momentum MoM Money Market 7.48% 10 0.41% 9 0.87% 10 7.01% 11 0.36% 10 MMI - Money Market (Max 91-180) 7.61% 6 0.27% 2 1.00% 6 7.24% 3 0.26% 2 Nedgroup Investments Core Income Fund 7.45% 11 0.47% 14 0.85% 11 7.09% 8 0.39% 14 Prescient Yield Quantplus Fund 7.85% 1 0.36% 7 1.24% 1 7.33% 1 0.36% 9 Prudential High Interest Fund 7.40% 12 0.50% 15 0.79% 12 6.95% 12 0.42% 16 SIM Cash Enhanced 7.66% 4 0.43% 13 1.06% 4 7.18% 7 0.37% 11 STANLIB Enhanced Yield Fund 7.68% 3 0.56% 17 1.08% 3 7.25% 2 0.46% 17 Old Mutual Multi-Managers Money Market 6.98% 17 0.28% 3 0.38% 17 6.62% 17 0.28% 3 Sygnia Money Market Fund 7.20% 16 0.42% 12 0.60% 16 6.86% 15 0.35% 8 Taquanta Cash Fund 7.54% 7 0.52% 16 0.93% 7 7.21% 6 0.42% 15

Volatility vs Return

5 1 9

13 4 14 9 16 10 5 11 3 8 1 12 7 2 17 15 6

0.76% 1.09% 0.75% 0.91% 0.66% 0.88% 1.08% 0.87% 1.10% 0.95% 1.19% 0.81% 1.04% 1.11% 0.48% 0.72% 1.07%

10 4 2 8 6 3 7

Rank

0.41% 0.81% 1.14% 0.48% 0.55% 1.02% 0.54% * 0.59% 1.34% 0.48%

Active Return

MANAGER WATCHâ&#x201E;˘ SURVEY

SA Money Market Manager Watchâ&#x201E;˘ Survey Risk

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

SECTION 3

SA Money Market Manager Watch™ Survey Volatility vs Return Scatterplot on Money Market Managers (up to 90 day duration) – 3 Years ended 31 December 2016 8.0%

7.8%

Pan Africa Segregated Domestic Cash* MMI - Money Market (Max 90)

7.6%

Coronation Strategic Cash* Aluwani - Money Market (Max 90)

Return (p.a.)

7.4% Prescient Money Market Composite

7.2% Nedgroup Investments Money Market Fund

Investec Money Market Fund Futuregrowth Core Money Market Composite Absa Asset Management Money Market

Nedgroup Investments Corporate Money Market Fund

7.0%

STANLIB Money Market Portfolio

6.8%

6.6%

6.4% 0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

Volatility (p.a.) (standard deviation)

Volatility vs Return Scatterplot on Money Market Managers (91–180 day duration) – 3 Years ended 31 December 2016 8.0% Prescient Yield Quantplus Fund

7.8%

Aluwani - Money Market (Max 91-180)

Investment Solutions Banker

MMI - Money Market (Max 91-180)

Return (p.a.)

7.6%

STANLIB Enhanced Yield Fund SIM Cash Enhanced Taquanta Cash Fund Nedgroup Investments Core Income Fund

Atlantic Core Cash Coronation Insitutional Cash

7.4%

Prudential High Interest Fund

Futuregrowth 180 Day Enhanced Money Market Composite

7.2%

Sygnia Money Market Fund

Argon Enhanced Money Market Fund

7.0%

Old Mutual Multi-Managers Money Market

Investec Money Fund Momentum MoM Money Market

6.8% 6.6% 6.4% 0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

Volatility (p.a.) (standard deviation)

MANAGER WATCHâ&#x201E;˘ SURVEY

SA Money Market Manager Watchâ&#x201E;˘ Survey Objective: The portfolios in this survey represent short-term debt securities that are highly marketable and trade in large denominations.

Investment Data to the end of December for the past 5 Calendar years Investment Managers 2015 Maximum duration up to 90 days Absa Asset Management Money Market 6.94% Aluwani - Money Market (Max 90) 7.23% Coronation Strategic Cash* 7.32% Futuregrowth Core Money Market Composite 6.87% Investec Money Market Fund 7.15% MMI - Money Market (Max 90) 7.37% Nedgroup Investments Money Market Fund 7.00% Nedgroup Investments Corporate Money Market Fund 6.91% Prescient Money Market Composite 7.02% Pan Africa Segregated Domestic Cash* 7.59% 6.88% STANLIB Money Market Portfolio

2014

2013

2012

2011

5.94% 6.49% 6.83% 6.28% 6.36% 6.61% 6.39% 6.22% 6.53% 6.74% 6.24%

5.52% 5.99% 6.79% 5.63% 5.70% 6.18% 5.74% 5.54% 5.68% 6.40% 5.68%

5.86% 6.31% 6.70% 5.90% 5.92% 6.58% 5.95% * 6.03% 7.55% 5.90%

6.08% 6.54% 7.35% 5.95% 6.13% 6.86% 6.12% * 6.27% 6.92% 6.12%

Maximum duration 91 - 180 days Atlantic Core Cash 7.55% Aluwani - Money Market (Max 91-180) 7.37% Argon Enhanced Money Market Fund 6.92% Coronation Insitutional Cash 7.56% Futuregrowth 180 Day Enhanced Money Market Composite 7.15% Investec Money Fund 7.28% Investment Solutions Banker 7.38% Momentum MoM Money Market 7.38% MMI - Money Market (Max 91-180) 7.47% Nedgroup Investments Core Income Fund 7.51% Prescient Yield Quantplus Fund 7.53% Prudential High Interest Fund 6.67% SIM Cash Enhanced 7.31% STANLIB Enhanced Yield Fund 7.04% Old Mutual Multi-Managers Money Market. 6.73% Sygnia Money Market Fund 7.21% Taquanta Cash Fund 7.57%

6.52% 6.67% 6.30% 6.76% 6.36% 6.23% 6.74% 6.33% 6.71% 6.16% 7.11% 6.39% 6.53% 6.46% 6.22% 6.01% 6.28%

5.80% 6.42% 5.89% 6.04% 5.67% 6.35% 6.46% 6.25% 6.47% 6.32% 6.62% 6.09% 6.36% 6.71% 5.92% 6.31% 6.50%

6.10% 6.78% 6.60% 6.63% 6.26% 6.71% 6.56% 6.37% 6.91% 6.75% 6.49% 6.45% 6.55% 6.50% 6.25% 6.41% 6.95%

6.94% 7.04% 6.23% 6.97% * 6.90% 6.80% 6.42% 7.08% 6.98% 6.68% 6.55% 6.46% 6.75% 6.62% 6.61% 7.05%

Market statistics Alexander Forbes Money Market Index 6.42% Short Term Fixed Interest Rate Index 6.49% 5.79% STeFI Call Deposit Index STeFI 3 Month NCD Rate 6.08% STeFI 6 Month NCD Rate 6.69% STeFI 12 Month NCD Rate 7.16%

5.97% 5.90% 5.42% 5.65% 6.11% 6.32%

5.31% 5.18% 4.79% 5.03% 5.29% 5.56%

5.58% 5.55% 5.11% 5.34% 5.62% 5.99%

5.77% 5.73% 5.29% 5.48% 5.76% 6.34%

SECTION 3

Composite Dispersion of SA Money Market Manager Watch™ Survey 1 Year to 31 December 2016 Maximum duration up to 90 days Aluwani - Money Market (Max 90)

0.12%

Prescient Money Market Composite

0.05% 0.00%

0.02%

0.04%

Minimum Return

Maximum up to 90 days

0.06%

Maximum Return

Median Composite Return

0.08%

Composite Dispersion (1yr)

0.10%

0.12%

Composite Dispersion (3yrs)

0.14%

Composite Dispersion (5yrs)

Aluwani - Money Market (Max 90)

8.34%

8.64%

8.45%

0.12%

0.15%

0.17%

Prescient Money Market Composite

8.10%

8.27%

8.20%

0.05%

0.06%

0.07%

* Data not available.

Maximum duration from 91–180 days Atlantic Core Cash

0.10%

Aluwani - Money Market (Max 91-180)

0.16%

Prescient Yield Quantplus Fund

0.27%

SIM Cash Enhanced

0.15% 0.00%

0.05%

0.10%

0.20%

0.25%

Composite Dispersion (1yr)

Composite Dispersion (3yrs)

0.30%

Minimum Return

Maximum Return

Atlantic Core Cash

8.53%

8.82%

8.73%

0.10%

Aluwani - Money Market (Max 91-180)

8.47%

9.00%

8.83%

0.16%

0.13%

0.09%

Prescient Yield Quantplus Fund

8.36%

9.22%

8.72%

0.27%

0.25%

0.20%

SIM Cash Enhanced

8.99%

9.43%

9.21%

0.15%

0.27%

0.65%

Maximum from 91–180 days

Median Composite Return

0.15%

Composite Dispersion (5yrs)

* Data not available.

Oct-06

V C

Mar-08

Jul-07

Jan-04 Jun-02 Oct-02 May-03 Oct-06 Jul-06

Nov-03

Jul-03 Aug-03 Nov-09 Dec-02

Jan-07

Dec-03

OMIG Capital Builder

OMIG MacroSolutions Stable Growth Fund Headline CPI + 5% Coronation Absolute Foord Absolute Investment Solutions Real Return Focus Local Investment Solutions Real Return Focus Portfolio JM BUSHA Absolute AllClass Mergence CPI + 5% Fund

MMI - Absolute Return (CPI + 5%)

Old Mutual Multi-Managers Inflation Plus 3-5% OMIG Wealth Defender Prudential Domestic Real Return Plus 5% Prudential Global Real Return Plus 5%

SIM CPI + 5%

SIM CPI + 5% Global

Aug-99 Aug-99 Apr-12 Dec-02

Jan-03

Dec-05

Headline CPI + 6% Coronation Absolute Investec Opportunity MMI - Absolute Return (CPI + 6%) Prudential Domestic Real Return Plus 6 %

SIM CPI + 6%

STANLIB Absolute Plus Fund Total

V = Verified C = Compliant

Mar-05

STANLIB Multi-Manager Real Return Fund

V V V V

Domestic

Global Global Global Domestic

Mar-05

Domestic Domestic and Global

Sep-02

Global Global

May-03

Global

Domestic

Global Global Domestic Global

Global

Domestic Global Domestic Global Domestic Domestic

Global

SMM Absolute Return Old Mutual Multi Managers Absolute Defensive Fund Vunani Fund Managers CPI + 5%

C V V

C V

C Domestic

Y Y Y Y

Domestic Domestic Domestic Domestic

Oct-06 Apr-05 Dec-03 Oct-09

Y Y Y Y

Y Y Y Y Y Y

Y Y

Domestic

Dec-06

Aug-09

Y Y Y Y Y Y

Stanlib Inflation Plus 3% Fund Headline CPI + 4% Absa Asset Management Absolute Global CPI + 4% Absa Asset Management Absolute Domestic CPI + 4% Argon Absolute Return Fund Investment Solutions Stable Focus Momentum MoM Absolute Strategies Mergence CPI + 4% Fund

Domestic

Global

Dec-01

SIM Absolute

Domestic Domestic Global Domestic Global Domestic

Global

V V V

Oct-02 Mar-12 Oct-09 Jul-03 Oct-99

Headline CPI + 3% Absa Asset Management Absolute CPI + 3% Balondolozi Absolute Return Fund Coronation Inflation Plus Fund Momentum MoM Real Return Old Mutual Multi-Managers Inflation Plus 1-3% Prescient Positive Return Fund

Headline CPI + 6%

Headline CPI + 6% Headline CPI + 6% Headline CPI + 6% Headline CPI + 6%

Headline CPI + 5%

Headline CPI + 4%

Headline CPI + 5%

Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5%

Headline CPI + 5%

Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5% Headline CPI + 5%

Headline CPI + 4%

Headline CPI + 4% Headline CPI + 4% Headline CPI + 4% Headline CPI + 4%

Headline CPI + 4%

Headline CPI + 3%

Headline CPI + 3% Headline CPI + 3% Headline CPI + 3.5% Headline CPI + 3% Headline CPI + 3% Headline CPI + 3%

Global / Managed ITO Domestic Regulation CPI/X Target Return Mandate 28? (Y/N)

GIPS™ (Verified / Compliant)

Investment Managers

Portfolio Inception Date

General Information

Preserve capital over a rolling 12m period

Non-negative returns over rolling 1-year periods

N/A SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods. SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods.

Non-negative returns over a rolling 1-year period CPI +5% (gross of fees) over a rolling 3-year period, and a low probability of losing capital over a rolling 1-year period.

No negative returns over rolling 12 month period No negative returns over rolling 12 month period

Preserve capital over a rolling 12m period

Targets both positive returns every quarter and CPI + 4% pa, or Cash+3% pa over rolling 3-year periods.

Non negative returns over 1 year rolling period No negative returns over rolling 12 month period

SIM targets low volatility real returns that match the upside return objective (e.g. CPI+X %) over rolling three-year periods. At the same time, they target not to lose capital over rolling one-year periods.

Preserve capital over a rolling 12m period

Dual Objective (if applicable)

1 14 1 4

N/A

N/A 4 4 2

9 2 N/A N/A 2 1

3 N/A N/A 4

1 4 1 N/A N/A 9

1 837 214 642

707

5 122 51 975 251 3 606

1 233

2 055

958

566

16 286

1 633

3 955 6 811 1 369 37 735

586

5 797 497 6 133 3 971 1 050 1 001

5 359

2 245

1 124 6 806 2 541 2 643

10 587

14 788

728

968

424 970 3 899 1 151 260 5 016

No. of Funds Portfolio in Composite Size (R m)

MANAGER WATCH™ SURVEY

Absolute Return Manager Watch™ Survey

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

Calendar Year Returns

9.07% 7.45% 6.56% 2.79% 6.77% 3.45% 8.84% 4.99% 9.90% 4.61% 7.13% 8.31% 6.53% 8.68% 8.03% 7.29% * 12.26% 8.59% 10.72% 4.35% 8.92% 6.54% 5.78% 6.12% 6.12% 6.12% 5.73% 30

17.79% 17.62% 12.63% 9.44% 16.36% 10.14% 17.47% 15.18% 26.06% 13.67% 13.47% 24.25% 18.22% 17.80% 21.68% 16.92% * 21.31% 13.88% 13.76% 12.28% 15.05% 22.72% 14.39% 5.60% 5.60% 5.60% 5.55% 30

8.30%

Argon Absolute Return Fund 6.62% 10.61% 8.49% 9.72% 10.71% 9.62% 10.18% 9.40% 9.32% 9.27% 7.19% 11.75% 10.72% Investment Solutions Stable Focus 6.38% 10.61% 6.61% 9.72% 8.26% 9.62% 8.33% 9.40% 9.55% 9.27% 4.53% 8.98% 8.94% Momentum MoM Absolute Strategies 7.56% 10.61% 6.95% 9.72% 7.43% 9.62% 7.02% 9.40% 7.52% 9.27% 4.91% 8.41% 6.88% Mergence CPI + 4% Fund 5.82% 10.61% 6.08% 9.72% 8.69% 9.62% 8.47% 9.40% * * 5.05% 7.37% 9.23% OMIG Capital Builder 5.09% 10.61% 5.46% 9.72% 7.28% 9.62% 6.58% 9.40% * * 3.39% 7.93% 9.99% OMIG MacroSolutions Stable Growth Fund 5.43% 10.61% 8.09% 9.72% 11.13% 9.62% 10.93% 9.40% * * 8.57% 10.33% 14.27% Headline CPI + 5% Coronation Absolute 8.37% 11.61% 6.02% 10.72% 9.13% 10.62% 10.21% 10.40% 10.58% 11.27% 0.05% 9.90% 12.76% Foord Absolute -0.82% 11.61% 7.03% 10.72% 14.04% 10.62% 13.64% 10.40% 11.75% 11.26% 11.20% 11.15% 24.82% Investment Solutions Real Return Focus Local 7.70% 11.61% 7.06% 10.72% 9.12% 10.62% 9.12% 10.40% 9.65% 11.26% 3.28% 10.33% 10.90% Investment Solutions Real Return Focus Portfolio 5.16% 11.61% 7.73% 10.72% 10.23% 10.62% 9.86% 10.40% 9.68% 11.26% 8.06% 10.01% 14.72% JM BUSHA Absolute AllClass 7.89% 11.61% 6.45% 10.72% 10.95% 10.62% 11.06% 10.40% 9.94% 11.27% -0.29% 12.12% 12.17% Mergence CPI + 5% Fund 6.66% 11.61% 6.51% 10.72% 9.41% 10.62% 8.99% 10.40% 8.76% 11.26% 3.80% 9.13% 9.78% MMI - Absolute Return (CPI + 5%) 0.97% 11.61% 6.02% 10.72% 9.73% 10.62% 10.10% 10.40% 7.92% 11.27% 7.63% 9.65% 13.36% 14.60% 10.62% * * * * 10.86% 12.91% 24.94% Old Mutual Multi-Managers Inflation Plus 3-5% 3.86% 11.61% 9.14% 10.72% 11.61% 7.55% 10.72% 11.58% 10.62% 10.94% 10.40% 10.22% 11.27% 9.45% 9.16% 18.94% OMIG Wealth Defender 4.11% Prudential Domestic Real Return Plus 5% 9.29% 11.61% 8.89% 10.72% * * * * * * 4.08% 13.51% * Prudential Global Real Return Plus 5% 5.13% 11.61% 9.52% 10.72% 13.31% 10.62% 13.14% 10.40% * * 10.23% 13.36% 17.23% SIM CPI + 5% 10.25% 11.61% 8.75% 10.72% 10.49% 10.62% 10.73% 10.40% 10.22% 11.27% 6.39% 9.65% 12.41% SIM CPI + 5% Global 6.41% 11.61% 9.40% 10.72% 11.74% 10.62% 11.35% 10.40% 10.50% 11.26% 12.06% 9.82% 16.95% SMM Absolute Return 2.15% 11.61% 8.60% 10.72% 11.18% 10.62% 10.49% 10.40% 10.51% 11.26% 11.27% 12.69% 18.11% Old Mutual Multi Managers Absolute Defensive Fund 3.96% 11.61% 8.69% 10.72% 11.64% 10.62% 11.12% 10.40% 10.12% 11.27% 12.15% 10.14% 17.39% Vunani Fund Managers CPI + 5% 3.10% 11.61% 7.29% 10.72% 11.23% 10.62% 11.08% 10.40% 9.80% 11.27% 9.43% 9.46% 12.36% STANLIB Multi-Manager Real Return Fund 3.18% 11.61% 6.95% 10.72% 9.66% 10.62% 9.62% 10.40% 9.90% 11.27% 8.40% 9.37% 13.32% Market Statistics Combination of old CPIX and new CPI 6.61% 5.72% 5.62% 5.40% 6.27% 4.77% 5.80% 5.35% Consumer Price Inflation (Old/New combined CPI) 6.61% 5.72% 5.62% 5.40% 6.26% 4.77% 5.80% 5.35% Consumer Price Inflation (Headline CPI) [I-Net 6.61% 5.72% 5.62% 5.40% 6.07% 4.77% 5.80% 5.35% code: AECPI] STeFI 7.39% 6.59% 6.10% 6.17% 7.31% 6.49% 5.90% 5.18% Number of Participants 33 31 30 27 22 33 31 30

* Inflation figures in this table are lagged by one month

10.60%

16.71%

9.70%

9.33% * 10.32% 3.10% 7.67% 3.19% 10.05% *

14.47% * 14.52% 9.16% 18.22% 8.45% 11.69% *

5.53% * 13.61% 10.53% 20.13% 10.85% 9.80% *

2011

2012

2013

1 Year 3 Years 5 Years 7 Years 10 Years Investment Managers 2015 2014 Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Headline CPI + 3% Absa Asset Management Absolute CPI + 3% 7.13% 9.61% 7.34% 8.72% 8.36% 8.62% 8.77% 8.40% 9.44% 9.27% 5.13% 9.82% Balondolozi Absolute Return Fund 5.40% 9.61% * * * * * * * * 6.04% * Coronation Inflation Plus Fund 6.27% 10.11% 7.76% 8.72% 10.24% 8.62% 11.05% 8.40% * * 7.48% 9.56% Momentum MoM Real Return 6.97% 9.61% 6.93% 8.72% 8.09% 8.62% 7.43% 8.40% 8.97% 9.27% 5.34% 8.51% Old Mutual Multi-Managers Inflation Plus 1-3% 5.31% 9.61% 8.72% 8.72% 12.79% 8.62% * * * * 8.57% 12.40% Prescient Positive Return Fund 6.81% 9.61% 6.55% 8.72% 7.78% 8.62% 7.21% 8.40% 8.78% 9.27% 5.82% 7.03% SIM Absolute 11.05% 9.61% 8.79% 8.72% 9.57% 8.62% 10.19% 8.40% 10.00% 9.26% 6.73% 8.65% Stanlib Inflation Plus 3% Fund 5.22% 9.61% * * * * * * * * 6.73% * Headline CPI + 4% Absa Asset Management Absolute Global CPI + 4% 3.94% 10.61% 8.31% 9.72% 10.22% 9.62% 10.63% 9.40% 11.15% 9.27% 9.54% 11.59% Absa Asset Management Absolute Domestic 7.24% 10.61% 7.46% 9.72% 9.62% 9.62% * * * * 4.96% 10.26% CPI + 4%

Investment Data to the end of December 2016

SECTION 3

Absolute Return Manager Watchâ&#x201E;˘ Survey

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

Portfolio

Benchmark

Portfolio

Benchmark

Portfolio

5 Years Benchmark

Portfolio

7 Years Benchmark

Portfolio

10 Years Benchmark

2015

-0.03%

9.08%

9.74%

4.97%

MMI - Absolute Return (CPI + 6 %)

Prudential Domestic Real Return Plus 6 %

SIM CPI + 6%

STANLIB Absolute Plus Fund

12.61%

7.53%

7.57%

8.79%

8.98%

6.03%

9.30%

11.72%

12.15%

10.11%

11.06%

12.86%

12.87%

11.62%

12.25%

10.56%

11.26%

13.16%

12.84%

11.40%

11.69%

9.79%

12.45%

12.07%

12.27%

12.26%

12.27%

6.21%

7.78%

6.35%

11.42%

4.33%

15.53%

9.91%

10.02%

10.31%

13.73%

13.74%

10.46%

21.20%

15.40%

14.15%

20.57%

13.11%

16.23%

6.59%

7.39%

* Inflation figures in this table are lagged by one month

Number of Participants

6.94%

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

STeFI

5.89%

6.61%

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

5.72%

6.61%

Consumer Price Inflation (Old/New combined CPI)

5.72%

6.61%

Combination of old CPIX and new CPI*

6.10%

5.75%

5.62%

6.17%

5.53%

5.40%

7.31%

6.30%

6.07%

6.26%

6.27%

6.49%

4.77%

5.90%

5.80%

5.18%

5.35%

Market Statistics

6.52%

2.32%

Coronation Absolute

Investec Opportunity

2013

5.55%

5.60%

12.67%

14.97%

21.62%

25.04%

20.72%

17.74%

2012

Calendar Year Returns 2014

Headline CPI + 6%

Investment Managers

3 Years

1 Year

Investment Data to the end of December 2016

5.3%

6.12%

9.33%

8.14%

11.67%

9.97%

12.59%

7.73%

2011

MANAGER WATCH™ SURVEY

Absolute Return Manager Watch™ Survey

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

3.53%

4.66%

2.38%

3.46%

2.61%

2.35%

4.01%

Coronation Inflation Plus Fund

Momentum MoM Real Return

Old Mutual Multi-Managers Inflation Plus 1-3%

Prescient Positive Return Fund

SIM Absolute

Stanlib Inflation Plus 3% Fund

4.33%

2.85%

3.87%

4.16%

2.11%

3.34%

Argon Absolute Return Fund

Investment Solutions Stable Focus

Momentum MoM Absolute Strategies

Mergence CPI + 4% Fund

OMIG Capital Builder

OMIG MacroSolutions Stable Growth Fund

8.83%

4.17%

3.94%

6.37%

5.35%

4.49%

5.64%

5.16%

5.37%

4.42%

3.26%

3.77%

5.74%

4.62%

4.26%

5.86%

Foord Absolute

Investment Solutions Real Return Focus Local

Investment Solutions Real Return Focus Portfolio

JM BUSHA Absolute AllClass

Mergence CPI + 5% Fund

MMI - Absolute Return (CPI + 5%)

Old Mutual Multi-Managers Inflation Plus 3-5%

OMIG Wealth Defender

Prudential Domestic Real Return Plus 5%

Prudential Global Real Return Plus 5%

SIM CPI + 5%

SIM CPI + 5% Global

SMM Absolute Return

Old Mutual Multi Managers Absolute Defensive Fund

Vunani Fund Managers CPI + 5%

STANLIB Multi-Manager Real Return Fund

1.38%

0.13%

Combination of old CPIX and new CPI

Consumer Price Inflation (Old/New combined CPI)

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

STeFI

Market Indices & Statistics

5.39%

Coronation Absolute

Headline CPI + 5%

3.47%

3.06%

Absa Asset Management Absolute Global CPI + 4%

Absa Asset Management Absolute Domestic CPI + 4%

Headline CPI + 4%

2.93%

Balondolozi Absolute Return Fund

Volatility

Absa Asset Management Absolute CPI + 3%

Headline CPI + 3%

Investment Managers

1 Year

Investment Data to the end of December 2016

66.67%

58.33%

66.67%

83.33%

58.33%

66.67%

50.00%

66.67%

58.33%

75.00%

66.67%

75.00%

66.67%

83.33%

100.00%

91.67%

58.33%

75.00%

66.67%

75.00%

% Positive Months

-2.17%

-1.20%

-1.44%

-2.33%

-0.88%

-0.18%

-1.30%

-1.21%

-2.22%

-2.21%

-2.04%

-1.12%

-1.44%

-1.12%

-0.41%

-3.49%

-1.50%

-1.18%

-0.47%

-0.98%

-1.22%

-0.58%

-1.29%

-0.49%

-1.95%

0.24%

-0.97%

-1.17%

-0.53%

-1.08%

-1.22%

-0.40%

Worst Month

-2.29%

-3.41%

-2.29%

-3.34%

-1.45%

-1.68%

-2.16%

-3.90%

0.00%

-2.52%

-3.00%

-3.74%

-7.25%

-1.80%

-3.81%

-7.01%

-6.42%

-1.78%

-0.85%

-3.90%

-2.27%

-2.47%

-2.66%

-2.85%

-3.02%

-0.81%

-1.11%

-1.73%

-2.06%

-1.92%

-3.02%

-2.05%

Maximum Drawdown

6.59%

5.72%

6.95%

7.29%

8.69%

8.60%

9.40%

8.75%

9.52%

8.89%

7.55%

9.14%

6.02%

6.51%

6.45%

7.73%

7.06%

7.03%

6.02%

8.09%

5.46%

6.08%

6.95%

6.61%

8.49%

7.46%

8.31%

8.79%

6.55%

8.72%

6.93%

7.76%

7.34%

3 Year Return (p.a.)

3 Years

0.21%

1.52%

4.54%

4.96%

3.50%

4.63%

2.86%

3.25%

4.47%

6.40%

4.17%

4.58%

4.31%

5.13%

7.59%

3.78%

4.80%

7.15%

5.64%

3.22%

2.68%

4.22%

4.36%

3.80%

4.20%

3.94%

3.53%

2.33%

3.30%

3.40%

3.55%

3.77%

3.39%

Volatility

66.67%

77.78%

72.22%

83.33%

77.78%

69.44%

66.67%

69.44%

77.78%

63.89%

61.11%

58.33%

72.22%

63.89%

69.44%

61.11%

72.22%

66.67%

63.89%

72.22%

75.00%

69.44%

83.33%

91.67%

75.00%

72.22%

66.67%

77.78%

% Positive Months

-2.17%

-1.61%

-1.44%

-2.33%

-0.88%

-1.27%

-1.63%

-3.75%

-2.22%

-2.21%

-2.04%

-1.80%

-3.67%

-1.25%

-1.96%

-3.49%

-3.44%

-1.18%

-1.41%

-1.67%

-2.57%

-1.59%

-2.29%

-1.98%

-1.95%

-0.98%

-1.32%

-1.17%

-1.55%

-1.11%

-1.28%

-1.88%

Worst Month

-2.29%

-3.41%

-2.29%

-3.34%

-1.45%

-1.84%

-2.16%

-4.03%

0.00%

-2.52%

-3.00%

-3.74%

-7.25%

-1.80%

-3.81%

-7.01%

-6.42%

-1.78%

-1.88%

-4.03%

-2.74%

-2.70%

-2.66%

-2.85%

-3.02%

-1.22%

-1.55%

-1.73%

-2.06%

-1.92%

-3.02%

-2.05%

Maximum Drawdown

5 Years

6.10%

5.62%

9.66%

11.23%

11.64%

11.18%

11.74%

10.49%

13.31%

6.40%

11.58%

14.60%

9.73%

9.41%

10.95%

10.23%

9.12%

14.04%

9.13%

11.13%

7.28%

8.69%

7.43%

8.26%

10.71%

9.62%

10.22%

9.57%

7.78%

12.79%

8.09%

10.24%

8.36%

5 Year Return (p.a.)

0.24%

1.42%

4.63%

5.49%

4.06%

5.01%

3.14%

3.11%

4.96%

6.40%

4.51%

5.25%

4.51%

4.88%

6.93%

4.26%

4.57%

7.87%

5.58%

3.53%

3.05%

4.06%

4.49%

3.74%

4.12%

3.82%

3.49%

2.09%

3.76%

3.91%

3.78%

3.80%

3.23%

Volatility

71.67%

81.67%

75.00%

88.33%

83.33%

76.67%

53.33%

83.33%

71.67%

68.33%

75.00%

71.67%

73.33%

68.33%

80.00%

75.00%

68.33%

76.67%

75.00%

85.00%

91.67%

75.00%

81.67%

73.33%

80.00%

% Positive Months

-2.69%

-3.61%

-1.81%

-2.33%

-1.36%

-1.27%

-3.57%

-3.75%

-2.26%

-2.68%

-2.56%

-3.67%

-2.94%

-2.53%

-3.72%

-3.44%

-2.23%

-1.94%

-3.36%

-2.32%

-2.29%

-1.98%

-1.95%

-0.98%

-1.94%

-1.72%

-2.55%

-1.88%

Worst Month

-2.67%

-3.61%

-2.29%

-3.34%

-1.45%

-1.84%

-3.57%

-4.03%

-2.52%

-3.00%

-3.74%

-7.25%

-2.94%

-3.81%

-7.01%

-6.42%

-2.23%

-1.94%

-3.36%

-2.70%

-2.66%

-2.85%

-3.02%

-1.22%

-1.94%

-1.73%

-2.55%

-2.05%

Maximum Drawdown

SECTION 3

Absolute Return Manager Watchâ&#x201E;˘ Survey Risk

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

100

Volatility

% positive months

1 Year

Worst month

Maximum drawdown Maximum drawdown

Volatility Volatility

66.67%

75.00%

5.98%

5.87%

4.16%

3.75%

MMI - Absolute Return (CPI + 6%)

Prudential Domestic Real Return Plus 6%

SIM CPI + 6%

STANLIB Absolute Plus Fund

66.67%

-2.22%

-1.84%

-0.57%

-1.14%

-2.52%

-2.67%

-3.00%

-2.82%

-2.40%

-4.73%

0.00%

-5.75%

7.53%

7.57%

8.79%

8.98%

6.03%

9.30%

5.43%

3.74%

3.99%

6.81%

5.22%

5.72%

66.67%

75.00%

69.44%

66.67%

-2.22%

-1.84%

-1.45%

-3.56%

-2.52%

-2.67%

-3.24%

-2.82%

-2.40%

-4.73%

0.00%

-5.75%

12.15%

10.11%

11.06%

12.86%

12.87%

6.06%

4.27%

3.86%

6.59%

5.98%

73.33%

75.00%

81.67%

75.00%

73.33%

1.38%

0.13%

Consumer Price Inflation (Old/New combined CPI)

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

STeFI

* Inflation figures in this table are lagged by one month

1.38%

Combination of old CPIX and new CPI

6.59%

5.72%

0.21%

1.52%

6.10%

5.62%

0.24%

1.42%

Market Statistics

75.00%

58.33%

6.76%

6.38%

Coronation Absolute

Investec Opportunity

% Positive months

5 Years Worst month

5 Year Return (p.a.)

% Positive months

3 Years 3 Year Return (p.a.)

Headline CPI + 6%

Investment Managers

Investment Data to the end of December 2016

-1.84%

-1.45%

-3.56%

-3.05%

-3.58%

Worst month

-2.82%

-2.40%

-4.73%

-5.75%

-3.58%

Maximum drawdown

MANAGER WATCH™ SURVEY

Absolute Return Manager Watch™ Survey Risk (continued)

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

SECTION 3

Absolute Return Manager Watch™ Survey Volatility vs Return Scatterplot for Absolute Return Managers – All categories for the 3 Years ended 31 December 2016 17.0% 16.0%

Prudential Domestic Real Return Plus 6% Prudential Domestic Real Return Plus 5%

15.0%

Coronation Inflation Plus Fund

14.0%

Investment Solutions Real Absa Asset Management Absolute Global CPI + 4% Return Focus Portfolio

13.0%

SIM CPI + 6% Argon Absolute Return Fund

Old Mutual Multi Managers Absolute Defensive Fund Old Mutual Multi-Managers Inflation Plus 1-3%

12.0%

SIM CPI + 5%

CPI + 6%

Old Mutual Multi-Managers Inflation Plus 3-5%

11.0%

Return (p.a.)

10.0%

CPI + 5%

Investec Opportunity

SIM CPI + 5% Global

CPI + 4%

9.0%

SIM Absolute

SMM Absolute Return Prudential Global Real Return Plus 5%

OMIG MacroSolutions Stable Growth Fund

8.0%

Coronation Absolute

Absa Asset Management Absolute CPI + 3%

7.0%

Prescient Positive Return Fund

Coronation Absolute

OMIG Capital Builder

Vunani Fund Managers CPI + 5%

Momentum MoM Real Return

Investment Solutions Stable Focus

3.0%

MMI - Absolute Return (CPI + 6%)

Investment Solutions Real Return Focus Local Momentum MoM Absolute Strategies

STANLIB Absolute Plus Fund

4.0%

CPI + 3%

Mergence CPI + 5% Fund

6.0% 5.0%

Foord Absolute

MMI - Absolute Return (CPI + 5%)

Absa Asset Management Absolute Domestic CPI + 4%

OMIG Wealth Defender

2.0%

STANLIB Multi-Manager Real Return Fund JM BUSHA Absolute AllClass

1.0% 0.0% 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Volatility (p.a.) (standard deviation)

101

MANAGER WATCHâ&#x201E;˘ SURVEY

Composite Dispersion of Absolute Return Manager Watchâ&#x201E;˘ Survey 1 Year to 31 December 2016 Headline CPI + 3% Prescient Positive Return Fund

0.69% 0.00%

Headline CPI + 3%

0.10%

0.20%

Minimum Return

Maximum Return

5.41%

7.45%

Prescient Positive Return Fund

0.30%

0.40%

Median Composite Return

0.50%

0.60%

Composite Dispersion (1yr)

6.30%

0.70%

0.80%

Composite Dispersion (3yrs)

0.69%

0.90%

Composite Dispersion (5yrs)

0.60%

0.58%

* Data not available.

Headline CPI + 4% Absa Asset Management Absolute Global CPI + 4%

1.40%

Absa Asset Management Absolute Domestic CPI + 4%

0.70%

Mergence CPI + 4% Fund

1.32%

0.00%

Headline CPI + 4%

0.20%

Minimum Return

0.40%

0.60%

Maximum Return

0.80%

Median Composite Return

1.00%

1.20%

Composite Dispersion (1yr)

1.40%

1.60%

Composite Dispersion (3yrs)

Composite Dispersion (5yrs)

Absa Asset Management Absolute Global CPI + 4%

0.27%

4.00%

2.69%

1.40%

0.12%

0.66%

Absa Asset Management Absolute Domestic CPI + 4%

6.52%

9.13%

7.23%

0.70%

0.35%

0.41%

Mergence CPI + 4% Fund

2.85%

6.78%

5.59%

1.32%

0.25%

0.13%

* Data not available.

102

SECTION 3

Composite Dispersion of Absolute Return Manager Watchâ&#x201E;˘ Survey 1 Year to 31 December 2016 Headline CPI + 5% Coronation Absolute

0.38%

MMI - Absolute Return (CPI +5%)

0.04% 0.83%

OMIG Wealth Defender Prudential Domestic Real Return Plus 5%

0.20% 0.38%

SIM CPI + 5% SIM CPI + 5% Global

0.27%

Vunani Fund Managers CPI+5%

0.01% 0.00%

0.10%

0.20%

Minimum Return

Headline CPI + 5%

0.30%

0.40%

Median Composite Return

Maximum Return

0.50%

0.60%

Composite Dispersion (1yr)

0.70%

Composite Dispersion (3yrs)

0.90%

0.80%

Composite Dispersion (5yrs)

Coronation Absolute

7.55%

8.76%

8.21%

0.38%

0.06%

0.05%

MMI - Absolute Return (CPI + 5%)

0.87%

0.97%

0.89%

0.04%

0.26%

0.66%

OMIG Wealth Defender

4.05%

6.02%

4.14%

0.83%

Prudential Domestic Real Return Plus 5%

8.87%

9.43%

9.22%

0.20%

SIM CPI + 5%

9.99%

11.03%

10.51%

0.38%

0.61%

0.99%

SIM CPI + 5% Global

6.03%

6.76%

6.67%

0.27%

0.22%

0.64%

Vunani Fund Managers CPI + 5%

0.95%

0.98%

0.01%

* Data not available.

Headline CPI + 6% Investec Opportunity

0.41%

Prudential Domestic Inflation Plus 6%

0.16%

SIM CPI + 6%

0.15% 0.00%

Headline CPI + 6%

0.05%

Minimum Return

0.10%

0.15%

Maximum Return

0.20%

Median Composite Return

0.25%

0.30%

Composite Dispersion (1yr)

0.35%

0.40%

0.45%

Composite Dispersion (3yrs)

Composite Dispersion (5yrs) 0.29%

Investec Opportunity

1.37%

2.99%

1.97%

0.41%

0.29%

Prudential Domestic Inflation Plus 6%

8.82%

9.22%

9.15%

0.16%

SIM CPI + 6%

9.44%

9.81%

9.59%

0.15%

0.14%

0.87%

* Data not available.

103

MANAGER WATCH™ SURVEY

Targeted Development Investments Manager Watch™ Survey

Investment data to the end of December 2016 – Performance Data 1 Year Investment Managers

Classification

Fund Size (R m)

Fund

3 Years (p.a.) Rank

Return Benchmark

Fund

Rank

5 Years (p.a.) Return Benchmark

Fund

Rank

Return Benchmark

Balanced Momentum MoM Supernation Fund

Pooled

22.0

10.41%

7.90%

6.74%

6.97%

10.02%

11.20%

Stanlib Wealth Development Fund

Pooled

44.8

11.12%

8.55%

9.87%

7.67%

13.85%

7.68%

Mergence SRI Fund

Pooled

168.3

9.31%

9.61%

8.94%

8.72%

9.49%

8.62%

Equity Element Earth Equity

Unit Trust

52.0

25.57%

4.26%

2.37%

6.71%

3.54%

13.78%

Futuregrowth Development Equity Composite

Pooled

1 933.9

5.89%

16.61%

15.78%

15.74%

14.09%

15.63%

Oasis Crescent Equity Fund

Unit Trust

6 362.3

8.42%

12.93%

5.41%

3.51%

11.71%

7.71%

Oasis Crescent International Feeder Fund

Unit Trust

1 271.1

-9.27%

-5.30%

11.10%

11.13%

19.43%

16.38%

Mergence ESG Equity Fund

Segregated

343.1

2.90%

4.13%

8.10%

7.59%

15.06%

14.18%

8 014.8

12.84%

13.61%

15.21%

12.72%

15.48%

12.62%

278.5

15.07%

14.81%

6.72%

6.29%

7.65%

6.73%

Alternative OMIG Alternative Investments IDEAS Fund

Pooled

Fixed Interest Community Growth Gilt Fund

Unit Trust

Futuregrowth Infrastructure & Development Bond Fund

Pooled

12 172.7

16.63%

15.44%

9.31%

6.90%

10.13%

7.36%

Mergence High Impact Debt Fund

Pooled

152.8

11.85%

9.61%

10.43%

8.72%

9.38%

8.62%

2 508.1

24.31%

10.61%

16.75%

9.72%

14.31%

9.78%

Property Futuregrowth Community Property Fund

Pooled

Total

33 324.50

Statistics & Market Indices Alexander Forbes SA Best Investment View Average

8.62%

6.47%

10.63%

Alexander Forbes SA Equity Average

7.10%

5.69%

12.32%

Alexander Forbes SA Bond Average

15.23%

6.92%

7.42%

Combination of old CPIX and new CPI

6.61%

5.72%

5.62%

Consumer Price Inflation (Old/New combined CPI)

6.61%

5.72%

5.62%

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

6.94%

5.89%

5.75%

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

6.61%

5.72%

5.62%

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

104

SECTION 3

Targeted Development Investments Manager Watchâ&#x201E;˘ Survey

Investment Data to the end of December for the past 5 Calendar years Investment Managers

2015 Portfolio

2014 Benchmark Portfolio

2013 Benchmark Portfolio

2012 2011 3 Year Rank Benchmark Portfolio Benchmark Portfolio Benchmark Volatility

Balanced Momentum MoM Supernation Fund

-0.92%

0.78%

11.16%

12.55%

11.67%

13.14%

18.68%

22.79%

5.56%

5.71%

7.14%

Stanlib Wealth Development Fund

5.83%

6.71%

12.79%

7.75%

0.72%

7.83%

43.20%

7.56%

1.71%

5.80%

17.46%

Mergence SRI Fund

7.39%

7.77%

10.14%

8.80%

6.73%

8.31%

14.03%

8.61%

2.21%

9.18%

2.77%

Equity Element Earth Equity

-15.64%

5.49%

1.27%

10.49%

1.11%

21.43%

9.72%

29.21%

2.09%

4.77%

13.47%

Futuregrowth Development Equity Composite

23.00%

14.79%

19.17%

15.81%

10.44%

15.32%

12.77%

15.62%

13.67%

16.18%

7.09%

Oasis Crescent Equity Fund

-1.43%

-6.72%

9.58%

5.28%

23.63%

15.24%

20.18%

13.44%

3.19%

2.87%

9.03%

Oasis Crescent International Feeder Fund

29.82%

29.34%

16.44%

12.06%

54.08%

38.63%

14.98%

12.23%

15.47%

14.34%

14.07%

Mergence ESG Equity Fund

5.12%

3.62%

16.79%

15.42%

21.90%

20.71%

10.09%

14.92%

11.97%

17.91%

12.82%

18.86%

11.79%

12.98%

12.71%

17.95%

13.07%

8.82%

Alternative OMIG Alternative Investments IDEAS Fund Fixed Interest Community Growth Gilt Fund

-3.91%

-4.49%

9.94%

9.49%

1.78%

0.03%

16.83%

15.31%

8.96%

8.17%

8.65%

Futuregrowth Infrastructure & Development Bond Fund

-0.71%

-3.92%

8.24%

Mergence High Impact Debt Fund

8.29%

7.77%

11.18%

8.80%

6.57%

8.31%

9.11%

8.61%

10.76%

9.18%

1.73%

17.44%

8.77%

9.00%

10.81%

10.39%

9.01%

11.12%

9.71%

5.10%

10.12%

8.19%

Property Futuregrowth Community Property Fund Statistics & Market Indices Alexander Forbes SA Best Investment View Average

10.07%

14.60%

Alexander Forbes SA Equity Average

10.13%

20.64%

Alexander Forbes SA Bond Average

7.53%

3.01%

19.83%

18.29%

23.66%

8.72%

25.52%

20.18%

30.61%

9.97%

13.58%

13.99%

3.25%

3.00%

Combination of old CPIX and new CPI

5.80%

5.35%

5.60%

3.58%

5.09%

5.31%

Consumer Price Inflation (Old/New combined CPI)

5.80%

5.35%

5.60%

3.58%

4.79%

5.31%

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

5.99%

5.47%

5.74%

3.57%

5.08%

5.37%

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

5.80%

5.35%

5.60%

3.58%

5.83%

5.31%

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

105

MANAGER WATCH™ SURVEY

Targeted Development Investments Manager Watch™ Survey Volatility vs Return – TDI Balanced, Equity, Absolute, Alternative & Property Portfolios 3 years ended 31 December 2016 23.0%

19.0% Futuregrowth Community Property Fund

Annualised Return

Futuregrowth Development Equity Composite

OMIG Alternative Investments IDEAS Fund

15.0%

Oasis Crescent International Feeder Fund

11.0% Mergence SRI Fund

Momentum Supernation Fund

7.0%

Stanlib Wealth Development Fund

Mergence ESG Equity Fund

Oasis Crescent Equity Fund Alexander Forbes SA Equity Average

Alexander Forbes SA Best Investment View Average

3.0% 1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

18.0%

Annualised Risk

Volatility vs Return – TDI Fixed Interest Portfolios 3 years ended 31 December 2016 11.00% 10.50%

Mergence High Impact Debt Fund

10.00% 9.50%

Annualised Return

Futuregrowth Infrastructure & Development Bond Fund

9.00% 8.50% 8.00% 7.50% 7.00%

Alexander Forbes SA Fund Average

Community Growth Gilt Fund

6.50% 6.00% 1.0%

3.0%

5.0% Annualised Risk

106

7.0%

9.0%

SECTION 3

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 Data to the end of December 2016 Investment Manager

Fund Status Open / Closed

Inception Date

Open

Mar-04

Fund Size (R m)

Return Objectives

1 Year

3 Years

5 Years

Calendar Year 2015

Calendar Year 2014

Calendar Year 2013

3.30%

6.51%

7.29% 6.31%

Multi Strategy Alpha Cautious Hedge Fund

184.3

CPI + (4% - 6%) net of fees (previously CPIX)

3.92%

4.57%

6.04%

Blue Ink Yellowwood

Open

Nov-02

955.3

Cash + 2-3%

6.42%

7.03%

7.23%

6.21%

8.48%

Caveo Moderate Portfolio

Open

Mar-00

1 519.5

30% SWIX + 70% STeFI

1.95%

8.23%

9.35%

13.69%

9.38%

9.87%

Caveo Performance Portfolio

Open

Jan-06

383.6

40% SWIX + 60% STeFI

3.51%

8.33%

10.89%

7.99%

13.72%

14.31%

Caveo Stable Portfolio

Open

Jan-06

766.7

15% SWIX + 85% STeFI

8.69%

8.65%

9.23%

9.39%

7.88%

8.68%

Momentum ZAR Diversified Fund

Open

Nov-07

2 057.8

STeFI + 4% net of fees

5.94%

7.18%

7.36%

6.65%

8.99%

7.30%

Sygnia Absolute Fund Of Hedge Funds

Open

Nov-03

492.9

CPI + 3%

-0.27%

7.44%

9.74%

14.08%

9.01%

14.41%

Sygnia All-Star Fund of Hedge Funds

Open

Dec-06

906.6

CPI + 5%

-3.57%

8.17%

12.53%

17.00%

12.17%

21.09%

Sygnia Signature Fund Of Hedge Funds

Open

Nov-03

2 608.2

CPI + 5%

-1.88%

7.73%

10.72%

14.90%

10.89%

16.79%

Mayibentsha Neutral Fund of Hedge Funds

Open

Apr-08

528.7

CPI + 2.5%

5.33%

9.18%

Mayibentsha Moderate Fund of Hedge Funds

Open

Apr-03

881.7

CPI + 3.5%

2.01%

11.63%

Mayibentsha Focused Fund of Hedge Funds

Open

Dec-08

682.7

CPI + 4.5%

-2.87%

7.87%

Alpha Equity Hedge Fund

Open

Nov-07

551.2

JSE All Share Index

2.38%

9.43%

12.27%

12.73%

Alpha Fixed Income Blend of Funds

Open

Jan-06

52.0

CPI + 3% net of fees

7.98%

5.14%

3.52%

-2.79%

10.74%

-6.25%

Caveo Focus Portfolio

Open

Feb-11

1 546.9

65% SWIX + 35% STeFI

0.61%

7.74%

11.77%

10.39%

Edge RCIS Matador Retail Hedge Fund

Open

May-04

29.5

STeFI + 4%

-0.26%

12.21%

9.86%

19.21%

TriAlpha Enhanced Fixed Income Fund

Open

Aug-07

286.2

STeFI + 2%

8.55%

7.81%

6.08%

8.81%

3.48%

27four Alternative Equity Fund of Hedge Funds

Open

Feb-09

865.2

STeFI + 4%

-2.32%

5.83%

10.84%

9.48%

Highest

8.69%

9.43%

12.53%

17.00%

13.72%

21.09%

Median

2.19%

7.73%

9.54%

9.89%

9.38%

9.27%

Average

2.56%

7.38%

9.22%

9.52%

9.69%

10.21%

Lowest

-3.57%

4.57%

3.52%

-2.79%

6.51%

-6.25%

Specialist Mandates

Statistics

Number of participants Fund Size Total

15 299.18

Market Statistics FTSE/JSE All Share Index

2.63%

6.16%

12.97%

5.13%

10.88%

21.43%

STeFI

7.39%

6.59%

6.10%

6.49%

5.90%

5.18%

All Bond Index

15.45%

6.90%

7.36%

-3.93%

10.15%

0.64%

Consumer Price Inflation (Old/New combined CPI)*

6.61%

5.72%

5.62%

4.77%

5.80%

5.35%

Combination of old CPIX and new CPI*

6.61%

5.72%

5.62%

4.77%

5.80%

5.35%

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

6.61%

5.72%

5.62%

4.77%

5.80%

5.35%

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

6.94%

5.89%

5.75%

4.75%

5.99%

5.37%

* Inflation figures in this table are lagged by one month

107

MANAGER WATCH™ SURVEY

Investment Data to the end of December 2016 – Quantitative Analysis 1 Year Investment Manager

3 Years

Percentage of positive months

Worst month

Standard Deviation

Percentage of positive months

Worst month

Max Drawdown

Standard Deviation

Multi Strategy Alpha Cautious Hedge Fund

50.00%

-1.34%

3.53%

69.44%

-1.34%

-1.48%

2.66%

Blue Ink Yellowwood

66.67%

-0.58%

2.64%

80.56%

-1.44%

0.00%

2.38%

Caveo Moderate Portfolio

41.67%

-1.29%

4.13%

75.00%

-1.29%

-1.60%

3.67%

Caveo Performance Portfolio

50.00%

-1.45%

4.53%

61.11%

-2.09%

-2.63%

4.82%

Caveo Stable Portfolio

91.67%

-0.45%

1.85%

94.44%

-1.44%

2.09%

Momentum ZAR Diversified Fund

66.67%

-1.28%

3.31%

75.00%

-1.65%

-1.80%

3.32%

Sygnia Absolute Fund Of Hedge Funds

58.33%

-1.80%

5.00%

77.78%

-1.80%

-1.89%

4.06%

Sygnia All-Star Fund of Hedge Funds

25.00%

-3.52%

7.58%

63.89%

-3.52%

0.00%

5.98%

Sygnia Signature Fund Of Hedge Funds

41.67%

-2.57%

5.78%

69.44%

-2.57%

-2.79%

4.74%

Mayibentsha Neutral Fund of Hedge Funds

75.00%

-0.33%

2.31%

Mayibentsha Moderate Fund of Hedge Funds

50.00%

-1.38%

4.00%

Mayibentsha Focused Fund of Hedge Funds

50.00%

-2.93%

5.14%

Alpha Equity Hedge Fund

58.33%

-1.78%

4.86%

69.44%

-1.78%

0.00%

4.35%

Alpha Fixed Income Blend of Funds

66.67%

-1.14%

3.83%

66.67%

-3.85%

-5.93%

4.12%

Caveo Focus Portfolio

50.00%

-2.81%

6.99%

63.89%

-2.81%

0.00%

6.10%

Edge RCIS Matador Retail Hedge Fund

41.67%

-2.87%

6.18%

TriAlpha Enhanced Fixed Income Fund

100.00%

0.14%

0.89%

97.22%

-0.45%

0.00%

1.05%

27four Alternative Equity Fund of Hedge Funds

50.00%

-3.28%

7.05%

63.89%

-3.28%

0.00%

5.44%

Specialist Mandates

Statistics Highest

100.00%

0.14%

7.58%

97.22%

-0.45%

0.00%

6.10%

Median

50.00%

-1.41%

4.33%

69.44%

-1.79%

-1.46%

4.09%

Average

57.41%

-1.70%

4.42%

73.41%

-2.09%

-1.40%

3.91%

Lowest

25.00%

-3.52%

0.89%

61.11%

-3.85%

-5.93%

1.05%

Number of participants * Inflation figures in this table are lagged by one month

108

* Inflation figures in this table are lagged by one month

Total

Futuregrowth Community Property Fund

0% - 74% Listed Property

Total

CPI + 4%

FTSE/JSE SA Listed Property

Stanlib Property Income Fund

FTSE/JSE SA Listed Property

Stanlib MM Property

SIM Property Fund

Stanlib Institutional Property Fund

Sesfikile Property Composite

OMIG Quoted Property Portfolio

FTSE/JSE SA Listed Property

Momentum MoM Property Portfolio

Prudential Enhanced SA Property Tracker Fund

FTSE/JSE SA Listed Property

IS Property Fund

Annually

Daily

Daily Daily

FTSE/JSE SA Listed Property

Daily

Valuation Frequency

FTSE/JSE SA Listed Property

MMI - SA Property

Coronation Property Equity

Investec Property Equity Fund

FTSE/JSE SA Listed Property

Catalyst FM Composite SA Listed Property Index Funds

Benchmark Description

FTSE/JSE SA Listed Property

GIPS™ (Verified / Compliant)

Absa Asset Management Domestic Property

75% - 100% Listed Property

Investment Managers

General information

Monthly

N/A

Daily

N/A

Daily

N/A

Daily

Cash Flow Frequency in IRR Calc

97%

50%

95%

90%

95%

85%

95%

80%

85%

80%

50%

95%

75%

Minimum Listed Property Allocation

10%

50%

10%

15%

20%

15%

20%

50%

25%

Maximum Cash Exposure Allowed

Up to 3 years

48 Hours

24 Hours

48 hours

24 hours

48 hours

24 hours

48 hours

Disinvestment Notice Period

N/A

48 Hours

N/A

Lock-in Period

N/A

No. of Funds in Composite

81 257

2 508

78 749

3 522

7 297

5 620

5 776

14 594

7 371

5 522

3 080

1 061

3 781

5 487

2 379

10 811

2 447

Portfolio Size (R m)

SECTION 3

SA Property Manager Watch™ Survey

109

110

1 Year

16.09%

10.20%

9.60%

6.83%

10.96%

8.30%

10.54%

5.04%

11.17%

10.37%

11.88%

12.46%

13.02%

9.79%

Highest Upper Quartile Median Average Lower Quartile Lowest Range Number of participants

Statistics

Futuregrowth Community Property Fund

27.51% 16.96% 16.45% 17.19% 15.80% 15.34% 12.17%

16.75%

16.34%

16.68%

16.45%

15.46%

17.89%

16.12%

15.51%

16.89%

15.36%

17.02%

24.31% 11.80% 10.86% 11.12% 9.70% 5.04% 19.27%

24.31%

10.61%

15.34%

10.20%

10.86%

18.43%

10.20%

11.72%

0% – 74% Listed Property

Absa Asset Management Domestic Property Catalyst FM Composite SA Listed Property Index Funds Coronation Property Equity Investec Property Equity Fund IS Property Fund MMI - SA Property Momentum MoM Property Portfolio OMIG Quoted Property Portfolio Prudential Enhanced SA Property Tracker Fund Sesfikile Property Composite SIM Property Fund Stanlib Institutional Property Fund Stanlib Property Income Fund Stanlib MM Property

27.51%

10.06%

14.65%

25.61% 19.39% 18.79% 19.04% 18.28% 14.31% 11.30%

14.31%

18.91%

18.67%

17.45%

20.47%

18.36%

18.01%

18.63%

18.95%

19.22%

19.89%

25.61%

9.78%

17.29%

19.33% 18.98% 18.73% 18.00% 18.32% 12.50% 6.83%

12.50%

19.03%

18.82%

16.84%

18.74%

18.22%

18.62%

18.72%

19.15%

19.33%

9.50%

17.73%

17.16%

17.73%

17.72%

17.73%

17.72%

17.73%

17.52% 17.23% 16.86% 16.32% 16.58% 13.21% 4.31%

13.21%

17.52%

17.23%

14.47%

16.81%

16.86%

16.96%

16.58%

17.24%

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

75% – 100% Listed Property

Specialist Property

Investment Managers

Investment Data to the end of December 2016 2013

2012

2011

10.14%

15.82%

15.76%

13.64%

15.76%

15.28%

15.76%

30.40% 14.46% 11.83% 13.47% 10.46% 7.88% 22.51%

17.44%

12.10%

9.33%

9.71%

7.88%

14.87%

10.81%

14.04%

11.81%

11.79%

11.83%

14.04%

10.11%

15.91%

30.40%

8.77%

7.99%

8.00%

7.99%

8.00%

7.99%

29.27% 29.18% 28.43% 27.89% 27.33% 9.00% 20.27%

9.00%

27.94%

28.55%

27.99%

27.53%

29.22%

27.11%

28.65%

29.22%

26.79%

29.15%

28.43%

27.14%

29.27%

42.30%

10.81%

26.64%

13.22% 10.34% 9.82% 10.26% 9.59% 8.42% 4.79%

9.00%

9.63%

9.47%

9.83%

13.22%

10.03%

9.69%

8.42%

9.86%

12.87%

9.80%

11.27%

9.01%

8.39%

39.07% 36.60% 35.68% 33.94% 35.15% 11.12% 27.94%

11.12%

36.53%

36.17%

32.21%

36.80%

34.84%

35.38%

35.25%

38.55%

39.07%

35.80%

35.57%

9.71%

35.88%

35.89%

35.88%

10.23% 9.76% 9.17% 8.66% 8.21% 5.10% 5.13%

5.10%

10.00%

9.76%

6.97%

9.74%

8.99%

9.36%

8.23%

10.23%

8.20%

10.12%

8.93%

8.92%

8.93%

8.92%

8.93%

Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark

Calendar Year Returns 2015 2014

MANAGER WATCH™ SURVEY

SA Property Manager Watch™ Survey

15.34%

16.09%

17.02%

15.36%

16.89%

15.51%

16.12%

17.89%

15.46%

16.45%

16.68%

16.34%

Coronation Property Equity

Investec Property Equity Fund

IS Property Fund

MMI - SA Property

Momentum MoM Property Portfolio

OMIG Quoted Property Portfolio

Prudential Enhanced SA Property Tracker Fund

Sesfikile Property Composite

SIM Property Fund

Stanlib Institutional Property Fund

Stanlib Property Income Fund

Stanlib MM Property

16.45%

17.19%

15.80%

15.34%

Median

Average

Lower Quartile

Lowest

16.96%

Upper Quartile

Number of participants

27.51%

Highest

Statistics

Futuregrowth Community Property Fund

16.75%

18.43%

Catalyst FM Composite SA Listed Property Index Funds

0% – 74% Listed Property

27.51%

3 Year Return

Rank

8.19%

11.85%

11.90%

12.09%

12.44%

12.97%

8.19%

11.72%

12.33%

12.20%

12.51%

12.57%

12.61%

11.42%

12.06%

11.98%

12.97%

12.36%

11.40%

12.04%

12.09%

Volatility (Risk)

Rank

0.69%

1.15%

2.84%

1.80%

2.80%

12.86%

6.69%

1.69%

2.03%

1.80%

0.81%

3.23%

1.47%

0.85%

2.24%

0.70%

2.37%

1.44%

0.69%

3.78%

12.86%

Active Return

Calculated on 3 Year Performance Returns

Absa Asset Management Domestic Property

75% – 100% Listed Property

Specialist Property

Investment Managers

Investment Data to the end of December 2016 Volatility vs Return

Rank

1.13%

1.84%

2.93%

2.20%

3.29%

8.63%

2.74%

1.75%

1.93%

1.27%

1.68%

1.13%

3.73%

2.26%

2.84%

4.45%

2.07%

2.20%

1.96%

5.31%

Tracking Error

0.23

0.57

0.98

0.78

1.23

2.42

0.78

0.62

1.16

0.93

0.64

1.92

1.30

0.23

0.99

0.25

0.53

0.70

0.31

1.93

2.42

Information Ratio

Rank

14.31%

18.28%

19.04%

18.79%

19.39%

25.61%

14.31%

18.91%

18.67%

17.45%

20.47%

18.36%

18.01%

18.63%

18.95%

19.22%

19.89%

25.61%

5 Year Return

Rank

6.44%

13.17%

12.90%

13.51%

13.77%

13.95%

6.44%

13.77%

13.61%

13.38%

13.92%

13.80%

13.20%

13.44%

13.95%

12.69%

13.58%

13.08%

Volatility (Risk)

Rank

0.16%

1.28%

2.38%

1.64%

2.74%

8.32%

4.53%

1.62%

1.39%

0.16%

3.18%

1.07%

0.71%

1.34%

1.66%

1.93%

2.60%

8.32%

Active Return

Calculated on 5 Year Performance Returns

Rank

1.05%

1.51%

2.72%

1.70%

3.34%

7.06%

1.47%

1.62%

1.52%

1.44%

1.05%

2.94%

5.37%

1.73%

2.20%

1.67%

4.57%

Tracking Error

0.11

0.54

0.97

0.92

1.22

2.20

0.64

1.11

0.85

0.11

2.20

1.02

0.24

0.25

0.96

0.88

1.56

1.82

Information Ratio

Rank

SECTION 3

SA Property Manager Watch™ Survey Risk

111

112

Portfolio Benchmark

1 Year

5 Years

7 Years

6.59%

5.72%

7.39%

6.61%

5.62%

6.10%

7.36%

14.18%

7.59%

6.90%

4.13%

12.97%

6.16%

15.45%

2.63%

* Inflation figures in this table are lagged by one month.

Market Data FTSE / JSE All Share Index (Free Float) FTSE / JSE SWIX All Share Index All Bond Short Term Fixed Interest Rate Index Combination of old CPIX and new CPI* Consumer Price Inflation (Old/New combined CPI)* Consumer Price Inflation (Headline CPI)

10 Years

5.40%

6.17%

8.62%

13.62%

12.25%

-0.53% 0.72% -0.01%

10.39% 10.40% 12.40%

-0.80%

-1.27%

10.39%

9.26%

-0.86%

9.19%

0.74%

6.05%

1.70%

0.92%

8.61%

-2.42%

13.63%

5.56%

0.57%

0.02%

13.63%

8.62%

-1.40%

13.63%

6.07%

6.26%

6.27%

7.31%

7.97%

11.38%

10.50%

9.88%

10.96%

10.12%

9.68%

7.94%

8.38%

8.89%

8.94%

9.68%

11.33%

10.64%

10.09%

13.35%

11.27%

11.54%

7.23%

6.76%

7.97%

11.38%

-0.21%

-2.39%

-1.15%

-1.86%

0.71%

1.62%

0.92%

0.96%

-1.70%

-0.73% -0.05%

11.38% 11.38%

602

1 233

566

2 184

958

3 971

6 133

6 806

1 845

828

2 674

17 546

186

4 325

4 319

1 101

3 344

281

2 615

13 483

26 180

Portfolio Active Active Active Active Active Rank Portfolio Benchmark Rank Portfolio Benchmark Rank Portfolio Benchmark Rank Portfolio Benchmark Rank Size Return Return Return Return Return (R M)

3 Years

Equity Mandates Benchmark Cognisant Investment Solutions Pure 4.20% 4.13% 0.07% 3 5.20% 7.59% -2.38% 3 12.03% 14.18% -2.15% 2 12.23% Equity Local Momentum MoM 5.89% 4.13% 1.76% 1 6.86% 7.59% -0.73% 1 14.02% 14.18% -0.15% 1 13.65% Classic Equity Sygnia Core Equity Fund 1.82% 4.13% -2.31% 4 5.61% 7.59% -1.98% 2 * * * * Momentum MoM 4.13% 0.50% 2 * * * * * * * 4.63% Target Equity Non Benchmark Cognisant Sygnia Absolute Focus 2.34% 4.13% -1.79% 2 10.28% 7.59% 2.69% 1 * * * * Equity Fund Old Mutual Multi-Managers 4.79% 4.13% 0.66% 1 5.86% 7.59% -1.73% 2 10.84% 14.18% -3.34% 1 11.20% Equity Portfolio Bond Mandates Investment Solutions Pure Fixed Interest 16.53% 15.39% 1.14% 1 8.05% 6.89% 1.16% 1 8.43% 7.35% 1.08% 1 9.54% Portfolio Local Stanlib Multi-Manager Bond 16.24% 15.45% 0.78% 2 * * * * * * * Momentum MoM Moderate 16.02% 15.45% 0.57% 3 7.27% 6.91% 0.36% 2 7.87% 7.36% 0.51% 2 9.19% Bond FOF Money Market Mandates Investment Solutions 8.97% 6.71% 2.26% 2 7.69% 5.87% 1.82% 1 7.22% 5.48% 1.74% 1 7.26% Banker Sygnia Money Market Fund 8.40% 7.39% 1.01% 3 7.20% 6.58% 0.62% 3 * * * * Old Mutual Multi-Managers 8.01% 7.02% 0.98% 4 6.98% 6.33% 0.65% 2 6.62% 5.94% 0.68% 2 6.79% Money Market Portfolio Stanlib MM Enhanced Yield 8.96% 3.64% 5.32% 1 * * * * * * * Absolute Return Mandates Investment Solutions 6.38% 9.61% -3.23% 2 6.61% 9.37% -2.75% 3 8.26% 9.28% -1.02% 4 8.33% Stable Focus Investment Solutions Real 7.70% 10.61% -2.91% 1 7.06% 10.38% -3.32% 4 9.12% 10.42% -1.30% 5 9.12% Return Focus Local Investment Solutions Real 5.16% 10.61% -5.45% 3 7.73% 10.38% -2.66% 2 10.23% 10.42% -0.19% 3 9.86% Return Focus Portfolio Old Mutual Multi-Managers -6.53% 4 8.69% 9.74% -1.05% 1 11.64% 10.62% 1.02% 1 11.12% Absolute Defensive 3.96% 10.49% Portfolio Old Mutual 5 12.45% 12.62% -0.18% 2 12.39% Multi-Managers Absolute 4.37% 12.43% -8.06% 5 8.30% 11.99% -3.69% Balanced Fund SMM Absolute Return 2.15% 11.57% -9.41% 7 * * * * * * * Stanlib Multi-Manager Real 3.18% 11.79% -8.61% 6 * * * * * * * Return Fund Medical Aid Mandates IS Medical Schemes Real 7.73% 9.74% -2.00% 7.02% 9.31% -2.29% 8.23% 9.40% -1.18% 8.46% Return Focus

Investment Managers

Investment Data to the end of December 2016 – Performance Data

MANAGER WATCH™ SURVEY

Multi-Manager Watch™ Survey (Specialist Mandates)

Calendar Year 2015

Portfolio Benchmark

Active Return

Calendar Year 2014

Rank Portfolio Benchmark

Active Return

Calendar Year 2013 Rank Portfolio Benchmark

Active Return

Calendar Year 2012

5.90%

5.80%

5.99%

5.80%

6.49%

4.77%

4.75%

4.77%

5.35%

5.37%

5.35%

5.18%

0.64%

20.71%

15.42%

10.15%

3.62%

21.43%

10.88%

-3.93%

5.13%

* Inflation figures in this table are lagged by one month.

5.60%

5.74%

5.60%

5.55%

15.99%

29.09%

26.68%

Calendar Year 2011

* 6.56%

* -7.66% -11.80% 0.03% * 0.45% 1.46% 0.87% 0.71% * 3.69% 3.07% 2.87% 4.02% 4.99% 1.19% * *

29.09% 29.09% 16.02% * 15.99% 5.10% 5.54% 5.54% * 8.94% 10.60% 10.60% 11.03% 13.11% 11.08% * *

1 2

5.16%

6.12%

6.37%

6.12%

5.73%

8.82%

4.25%

2.57%

4.35%

10.30%

8.92%

7.13%

4.61%

6.62%

6.80% 6.61%

9.38%

9.27%

3.82%

6.74%

3.42%

1 2

-3.08% -3.38%

4.94%

29.09%

9.83%

13.53%

11.82%

11.48%

10.48%

5.70%

5.27% 5.73%

8.82%

8.80%

4.26%

29.09%

4.26%

Rank Portfolio Benchmark

29.09%

-5.87%

Active Return

29.09%

Rank Portfolio Benchmark

Equity Mandates Benchmark Cognisant Investment Solutions Pure 1.11% 3.62% -2.51% 4 10.52% 15.42% -4.90% 4 22.98% 20.71% 2.27% 3 23.22% Equity Local Momentum MoM 2.58% 3.62% -1.04% 3 12.34% 15.42% -3.08% 2 25.37% 20.71% 4.66% 2 26.01% Classic Equity Sygnia Core Equity Fund 3.42% 3.62% -0.20% 1 11.85% 15.42% -3.57% 3 25.52% 20.71% 4.81% 1 25.71% Momentum MoM 2.92% 3.62% -0.69% 2 14.99% 15.42% -0.43% 1 19.82% 20.71% -0.89% 4 * Target Equity Non Benchmark Cognisant Sygnia Absolute Focus 11.68% 3.62% 8.06% 1 17.35% 15.42% 1.92% 1 22.49% 20.71% 1.78% 1 21.42% Equity Fund Old Mutual Multi-Managers 1.31% 3.62% -2.31% 2 11.75% 15.42% -3.67% 2 20.25% 20.71% -0.46% 2 17.28% Equity Portfolio Bond Mandates Investment Solutions Pure -2.56% -3.93% 1.37% 1 11.08% 10.15% 0.93% 1 2.40% 0.63% 1.77% 1 16.05% Fixed Interest Portfolio Local Stanlib Multi-Manager Bond -2.67% -3.93% 1.26% 2 * * * * * * * Momentum MoM Moderate -3.48% -3.92% 0.45% 3 10.22% 10.15% 0.08% 2 1.63% 0.63% 0.99% 2 16.44% Bond FOF Money Market Mandates Investment Solutions Banker 7.38% 5.60% 1.78% 1 6.74% 5.29% 1.44% 1 6.46% 4.68% 1.78% 1 6.56% Sygnia Money Market Fund 7.21% 6.46% 0.75% 2 6.01% 5.90% 0.10% 3 6.31% 5.18% 1.12% 2 6.41% Old Mutual Multi-Managers 6.73% 6.06% 0.66% 3 6.22% 5.91% 0.31% 2 5.92% 5.20% 0.73% 3 6.25% Money Market Portfolio Stanlib MM Enhanced Yield 6.99% 6.43% 0.57% 4 * * * * * * * Absolute Return Mandates Investment Solutions 4.53% 8.69% -4.16% 6 8.98% 9.81% -0.83% 4 8.94% 9.35% -0.42% 6 12.63% Stable Focus Investment Solutions Real 3.28% 9.69% -6.41% 7 10.33% 10.85% -0.52% 3 10.90% 10.36% 0.55% 5 13.67% Return Focus Local Investment Solutions Real 8.06% 9.69% -1.63% 5 10.01% 10.85% -0.84% 5 14.72% 10.36% 4.37% 4 13.47% Return Focus Portfolio Old Mutual Multi-Managers 12.15% 8.93% 3.22% 1 10.14% 9.82% 0.32% 2 17.39% 10.11% 7.29% 3 15.05% Absolute Defensive Portfolio Old Mutual Multi-Managers -0.29% 3 9.03% 11.63% -2.60% 6 19.84% 12.42% 7.42% 2 18.10% 11.62% 11.91% Absolute Balanced Fund SMM Absolute Return 11.27% 9.97% 1.30% 2 12.69% 9.52% 3.16% 1 18.11% 10.41% 7.70% 1 12.28% Stanlib Multi-Manager Real 8.40% 9.68% -1.28% 4 * * * * * * * Return Fund Medical Aid Mandates IS Medical Schemes Real 4.12% 8.69% -4.57% 1 9.26% 9.51% -0.25% 1 9.93% 9.40% 0.52% 1 * Return Focus

Investment Managers

Investment Data to the end of December for the past 5 Calendar years

-5.48%

-3.23%

-2.90%

-4.35%

-6.87%

-3.92%

0.92%

1.53% 0.88%

0.56%

0.48%

-0.45%

2.47%

-3.38%

0.90%

0.68%

Active Return

1 3

Rank

SECTION 3

Multi-Manager Watchâ&#x201E;˘ Survey (Specialist Mandates)

113

MANAGER WATCH™ SURVEY

Multi-Manager Watch™ Survey Risk (Specialist Mandates) Investment Data to the end of December 2016 – Volatility vs Return Investment Managers

3 Year Return (p.a.)

Rank

Risk (Volatility)

Rank

Active Return

Rank

Tracking Error

Information Ratio

Rank

Benchmark Cognisant Investment Solutions Pure Equity Local

5.20%

9.63%

-2.38%

2.71%

-0.88

Momentum MoM Classic Equity

6.86%

9.62%

-0.73%

2.28%

-0.32

Sygnia Core Equity Fund

5.61%

9.80%

-1.98%

1.50%

-1.32

Sygnia Absolute Focus Equity Fund

10.28%

9.34%

2.69%

3.32%

0.81

Old Mutual Multi-Managers Equity Portfolio

5.86%

9.82%

-1.73%

3.42%

-0.51

Investment Solutions Pure Fixed Interest Portfolio

8.05%

7.89%

1.16%

0.90%

1.30

Momentum MoM Moderate Bond FOF

7.27%

8.44%

0.36%

1.04%

0.35

Investment Solutions Banker

7.69%

0.41%

1.82%

0.30%

6.11

Sygnia Money Market Fund

7.20%

0.42%

0.62%

0.34%

1.83

Old Mutual Multi-Managers Money Market Portfolio

6.98%

0.28%

0.65%

0.17%

3.83

Investment Solutions Stable Focus

6.61%

3.80%

-2.75%

3.87%

-0.71

Investment Solutions Real Return Focus Local

7.06%

4.80%

-3.32%

4.76%

-0.70

Investment Solutions Real Return Focus Portfolio

7.73%

3.78%

-2.66%

3.78%

-0.70

Old Mutual Multi-Managers Absolute Defensive Portfolio

8.69%

3.50%

-1.05%

3.53%

-0.30

Old Mutual Multi-Managers Absolute Balanced Fund

8.30%

4.16%

-3.69%

4.01%

-0.92

7.02%

3.37%

3.40%

-0.67

Non Benchmark Cognisant

Bond Mandates

Money Market Mandates

Absolute Return Mandates

Medical Aid Mandates IS Medical Schemes Real Return Focus

-2.29%

Market Indices & Statistics FTSE / JSE All Share Index (Free Float)

6.16%

9.80%

FTSE / JSE SWIX All Share Index

7.59%

10.29%

All Bond

6.90%

8.58%

Short Term Fixed Interest Rate Index

6.59%

0.21%

Consumer Price Inflation (Ex. Mortgage Interest)

5.72%

1.52%

Consumer Price Inflation (Headline)

5.72%

1.52%

114

SECTION 3

Multi-Manager Watch™ Survey (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 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.

Investment Data to the end of December 2016 – Performance Data 1 Year Investment Managers

Portfolio

3 Years Benchmark

Active Return

Rank

Portfolio

5 Years Benchmark

Active Return

Rank

Portfolio

Benchmark

Active Return

Rank

Fixed Asset Allocation Equity Band: 15% – 34% (Local & International Equity) Investment Solutions Low Equity

6.55%

5.68%

0.87%

7.54%

7.44%

0.11%

10.04%

9.78%

0.26%

Momentum MoM Enhanced Factor 3

6.07%

6.43%

-0.36%

8.11%

8.15%

-0.04%

9.39%

9.99%

-0.60%

Equity Band: 35% – 44% (Local & International Equity) 27Four CPI + 3% Fund

2.70%

6.02%

-3.32%

9.17%

8.60%

0.57%

Investment Solutions 37.5% Equity

5.37%

4.73%

0.63%

7.57%

7.83%

-0.26%

10.93%

11.10%

-0.16%

Momentum MoM Enhanced Factor 4

5.79%

6.00%

-0.21%

8.47%

8.50%

-0.03%

10.42%

10.81%

-0.39%

Sygnia Signature 40 Fund

2.18%

6.09%

-3.91%

9.11%

8.56%

0.55%

12.73%

11.24%

1.49%

Equity Band: 45% – 54% (Local & International Equity) 27Four CPI + 5% Fund

1.43%

5.01%

-3.57%

9.27%

8.73%

0.54%

Investment Solutions Medium Equity

3.97%

3.56%

0.40%

7.27%

8.08%

-0.81%

11.69%

10.32%

1.37%

Momentum MoM Enhanced Factor 5

5.19%

4.76%

0.43%

8.90%

9.02%

-0.12%

11.70%

12.01%

-0.31%

SMM 50

5.70%

5.35%

0.36%

7.30%

7.97%

-0.67%

11.34%

11.50%

-0.16%

Sygnia Signature 50 Fund

1.36%

5.19%

-3.83%

9.09%

8.60%

0.49%

13.45%

12.03%

1.41%

Equity Band: 55% – 69% (Local & International Equity) 27Four CPI + 7% Fund

0.14%

4.12%

-3.98%

9.47%

9.05%

0.42%

Investment Solutions 62.5% Equity

2.38%

2.24%

0.15%

7.19%

8.33%

-1.14%

12.32%

13.25%

-0.93%

Momentum MoM Classic Factor 6

4.49%

3.25%

1.24%

9.04%

9.44%

-0.41%

14.20%

14.25%

-0.04%

Momentum MoM Enhanced Factor 6

4.15%

3.25%

0.90%

8.90%

9.44%

-0.54%

13.87%

14.25%

-0.37%

SMM 60

5.51%

5.44%

0.07%

7.09%

8.15%

-1.06%

11.44%

12.39%

-0.95%

Sygnia Signature 60 Fund

0.80%

4.07%

-3.27%

9.28%

8.88%

0.39%

14.25%

13.03%

1.22%

Equity Band: 70% – 75% (Local & International Equity) Investment Solutions High Equity

2.29%

1.90%

0.39%

7.25%

8.43%

-1.18%

12.89%

13.96%

-1.07%

Momentum MoM Classic Factor 7

4.76%

3.00%

1.76%

9.25%

9.56%

-0.31%

15.20%

15.00%

0.20%

Momentum MoM Enhanced Factor 7

3.96%

3.00%

0.96%

9.00%

9.56%

-0.56%

14.88%

15.00%

-0.12%

Momentum MoM Target Factor 7

3.14%

3.00%

0.14%

SMM 70

4.58%

4.73%

-0.16%

7.00%

8.27%

-1.27%

12.65%

13.13%

-0.47%

Sygnia Signature 70 Fund

-0.35%

3.25%

-3.60%

9.40%

8.91%

0.49%

14.72%

13.82%

0.90%

4 1

Old Mutual Multi-Managers Aggressive.

-0.82%

3.18%

-4.00%

7.77%

9.74%

-1.98%

13.36%

15.58%

-2.21%

Strategic Asset Allocation Low Volatility Investment Solutions Conserver

5.31%

5.04%

0.27%

6.63%

7.60%

-0.98%

9.75%

10.42%

-0.67%

Nedgroup Investment XS Guarded Fund of Funds

6.43%

9.81%

-3.38%

9.09%

8.90%

0.19%

11.56%

8.80%

2.76%

Stanlib Multi-Manager Defensive Balanced Fund

3.77%

9.79%

-6.02%

Best Investment View Investment Solutions Performer

5.05%

3.42%

1.63%

9.02%

7.84%

1.19%

14.46%

13.19%

1.27%

Investment Solutions Spectrum

4.48%

3.69%

0.79%

7.29%

6.81%

0.48%

12.81%

12.49%

0.32%

Momentum MoM Flexible Factor 6

3.22%

3.25%

-0.03%

9.16%

9.29%

-0.13%

Momentum MoM Flexible Factor 7

2.86%

3.00%

-0.14%

8.68%

9.56%

-0.88%

Nedgroup Investments XS Diversified Fund of Funds

4.87%

11.95%

-7.08%

8.21%

11.01%

-2.80%

Old Mutual Multi-Managers Managed.

4.03%

3.25%

0.78%

7.76%

7.89%

-0.13%

Stanlib Multi Manager Balanced Fund

3.24%

3.31%

-0.07%

115

MANAGER WATCH™ SURVEY

Investment Data to the end of December 2016 – Performance Data 7 Years Investment Managers

Portfolio

10 Years Benchmark

Active Return

Rank

Portfolio

Benchmark

Active Return

Rank

Portfolio Size (R M)

Equity Allocation

Fixed Asset Allocation Domestic

International

Equity Band: 15% – 34% (Local & International Equity) Investment Solutions Low Equity Momentum MoM Enhanced Factor 3

10.01%

9.50%

0.51%

9.53%

8.94%

0.59%

146

20.15%

6.20%

4 542

21.68%

5.54%

776

22.56%

11.94%

263

28.07%

8.81%

Equity Band: 35% – 44% (Local & International Equity) 27Four CPI + 3% Fund

10.86%

10.74%

Momentum MoM Enhanced Factor 4

Sygnia Signature 40 Fund

Investment Solutions 37.5% Equity

10.01%

9.69%

0.32%

401

27.80%

10.30%

1 439

22.59%

16.77%

1 073

34.64%

13.86%

193

35.38%

13.84%

2 084

35.33%

15.24%

Equity Band: 45% - 54% (Local & International Equity) 27Four CPI + 5% Fund

Investment Solutions Medium Equity

11.58%

12.21%

-0.62%

Momentum MoM Enhanced Factor 5

11.35%

11.34%

0.00%

SMM 50 Sygnia Signature 50 Fund

2 1

10.28%

14.07%

-3.79%

9.94%

10.15%

-0.20%

2 1

404

35.52%

13.69%

1 168

32.44%

18.41%

1 069

43.90%

16.52%

127

41.92%

18.79%

301

45.17%

20.23% 20.43%

Equity Band: 55% – 69% (Local & International Equity) 27Four CPI + 7% Fund

Investment Solutions 62.5% Equity

12.10%

12.79%

-0.69%

Momentum MoM Classic Factor 6

Momentum MoM Enhanced Factor 6

13.43%

13.44%

-0.02%

SMM 60

11.47%

11.95%

-0.48%

Sygnia Signature 60 Fund

10.54%

10.81%

-0.26%

11.23%

11.22%

0.01%

5 031

43.37%

10.04%

10.44%

-0.40%

374

42.07%

13.76%

1 999

39.36%

20.33%

1 128

49.08%

19.26%

120

53.70%

19.73%

16 890

49.36%

20.08%

224

51.61%

21.39%

797

49.14%

15.86%

8 486

47.01%

20.67%

49.95%

18.00%

Equity Band: 70% – 75% (Local & International Equity) Investment Solutions High Equity

12.56%

13.37%

-0.81%

10.71%

11.07%

-0.35%

Momentum MoM Classic Factor 7

14.17%

14.05%

0.12%

11.48%

11.44%

0.04%

12.11%

12.40%

-0.29%

10.28%

10.48%

-0.20%

12.85%

14.46%

-1.61%

10.51%

11.81%

-1.30%

2 205

Momentum MoM Enhanced Factor 7 Momentum MoM Target Factor 7 SMM 70 Sygnia Signature 70 Fund Old Mutual Multi-Managers Aggressive

3 1 2

Strategic Asset Allocation Low Volatility 9.94%

10.37%

-0.43%

9.75%

9.41%

0.34%

3 233

27.11%

8.52%

Nedgroup Investment XS Guarded Fund of Funds

588

14.31%

10.85%

Stanlib Multi-Manager Defensive Balanced Fund

2 529

18.63%

12.47%

Investment Solutions Performer

13.96%

12.80%

1.16%

12.09%

11.33%

0.77%

89 693

41.92%

19.77%

Investment Solutions Spectrum

12.49%

12.35%

0.14%

10.86%

10.81%

0.05%

1 783

40.05%

19.72%

Momentum MoM Flexible Factor 6

681

38.34%

22.56%

Momentum MoM Flexible Factor 7

2 455

45.38%

22.49%

Nedgroup Investments XS Diversified Fund of Funds

2 751

39.44%

12.87%

Old Mutual Multi-Managers Managed.

2 582

40.18%

22.58%

Stanlib Multi Manager Balanced Fund

4 833

49.52%

16.71%

Investment Solutions Conserver

Best Investment View

116

Calendar Year 2015

Portfolio Benchmark

4.65% 14.26%

6.18% 9.64%

Best Investment View Investment Solutions Performer Investment Solutions Spectrum Momentum MoM Flexible Factor 6 Momentum MoM Flexible Factor 7 Nedgroup Investments XS Diversified Fund of Funds Old Mutual Multi-Managers Managed Stanlib Multi Manager Balanced Fund

Strategic Asset Allocation Low Volatility Investment Solutions Conserver Nedgroup Investment XS Guarded Fund of Funds Stanlib Multi-Manager Defensive Balanced Fund

10.00%

9.06%

9.03%

8.57%

8.02%

10.55%

7.68%

10.02%

8.58% 6.69% 10.03% 10.24%

7.91%

9.55%

10.64% 7.21% 11.32% 10.72%

7.13%

6.65%

Equity Band: 70% - 75% (Local & International Equity) 9.71% Investment Solutions Entrepreneur 6.89% Investment Solutions High Equity 8.56% 9.81% Momentum MoM Classic Factor 7 9.31% 10.24% Momentum MoM Enhanced 9.72% 10.24% Factor 7 Momentum MoM Target Factor 7 9.61% 10.24% SMM 70 4.81% 6.82% Sygnia Signature 70 Fund 15.08% 9.94% Old Mutual Multi-Managers 11.84% 10.49% Aggressive

SMM 60 Sygnia Signature 60 Fund

Equity Band: 55% - 69% (Local & International Equity) 14.35% 9.00% 27Four CPI + 7% Fund Investment Solutions 62.5% Equity 8.33% 9.69% Momentum MoM Classic Factor 6 9.89% 10.48% Momentum MoM Enhanced 10.07% 10.48% Factor 6

Equity Band: 45% - 54% (Local & International Equity) 12.64% 8.03% 27Four CPI + 5% Fund Investment Solutions 7.01% 8.09% Medium Equity Momentum MoM Enhanced 9.69% 8.65% Factor 5 SMM 50 5.41% 6.62% Sygnia Signature 50 Fund 14.10% 8.42%

Equity Band: 35% â&#x20AC;&#x201C; 44% (Local & International Equity) 12.25% 7.64% 27Four CPI + 3% Fund Investment Solutions 37.5% Equity 6.71% 6.98% Momentum MoM Enhanced 8.90% 7.12% Factor 4 Sygnia Signature 40 Fund 13.80% 7.95%

Fixed Asset Allocation Equity Band: 15% - 34% (Local & International Equity) 6.03% 5.93% Investment Solutions Low Equity Momentum MoM Enhanced 8.38% 6.63% Factor 3

Investment Managers

Performance Data

4 7 1

-0.64% -2.01% 5.14%

1.34%

1.52%

-1.05%

-1.43%

2.06% 0.51% 1.30% 0.48%

2.34%

1.65%

1 4 3 5

-0.53%

-0.48%

8 6 5

-2.81% -1.25% -0.94%

6 2

-0.41%

5 1

-1.21% 5.68%

1 5 4

1.04%

5.34% -1.36% -0.60%

5.85%

4.61%

1.78%

-1.08%

2 4

4.60% -0.26%

0.10%

-1.53% 4.62%

Calendar Year 2014

11.36%

11.29%

11.50% 10.27% 13.19% 12.73%

11.34%

7.93%

12.83%

15.53% 11.75% 14.19%

13.55%

13.41% 11.08% 13.87%

11.22% 13.29%

12.65%

14.57% 11.03% 12.89%

10.88% 12.25%

11.93%

10.96%

14.18%

11.72%

10.79%

12.87% 10.70%

9.92%

10.09%

11.53%

11.09%

11.68% 10.15% 14.91% 15.82%

8.98%

10.72%

15.94%

15.82% 13.43% 13.80%

15.82%

14.69% 13.92% 15.82%

12.97% 13.13%

14.91%

14.28% 13.36% 14.91%

12.08% 12.32%

13.84%

12.80%

13.31%

11.70%

12.49%

12.23% 11.90%

11.46%

10.77%

Rank Portfolio Benchmark

1.75%

Active Return

-0.16%

0.20%

-0.18% 0.11% -1.72% -3.09%

2.36%

-2.78%

-3.11%

-0.29% -1.69% 0.39%

-2.27%

-1.27% -2.84% -1.95%

-1.75% 0.16%

-2.26%

0.30% -2.33% -2.01%

-1.20% -0.07%

-1.91%

-1.84%

0.88%

0.01%

-1.70%

0.64% -1.20%

-1.55%

-0.69%

Active Return

Investment Data to the end of December for the past 5 Calendar years Calendar Year 2013

4 2 5 6

2 4 1

3 7 5

3 2

1 6 4

3 2

1 3

25.59%

21.45%

25.53% 22.59% 20.87% 22.66%

17.37%

14.74%

26.60%

* 22.95% 26.73%

25.63%

20.17% 23.53% 25.93%

18.15% 24.35%

22.60%

24.44% 21.38% 23.31%

18.04% 22.49%

14.97%

18.53%

20.35%

20.21%

11.67%

16.86% 15.07%

9.11%

12.24%

23.13%

10.63%

22.50% 22.72% 20.52% 22.53%

8.58%

13.49%

26.40%

* 19.12% 20.86%

22.53%

19.76% 21.37% 22.53%

16.79% 19.15%

20.52%

20.50% 19.38% 20.52%

14.95% 16.14%

13.34%

16.51%

17.10%

13.94%

10.92%

13.89% 13.37%

9.38%

10.39%

Rank Portfolio Benchmark

2.46%

10.82%

3.02% -0.13% 0.35% 0.12%

8.79%

1.25%

0.20%

* 3.83% 5.87%

3.09%

0.41% 2.16% 3.40%

1.36% 5.20%

2.08%

3.94% 1.99% 2.79%

3.10% 6.35%

1.63%

2.02%

3.25%

6.27%

0.75%

2.96% 1.70%

-0.27%

1.85%

Active Return

Calendar Year 2012

2 6 4 5

2 1

6 5 3

6 1

2 5 3

3 1

2 3

22.88%

17.49%

20.77% 20.67% 17.23% 18.63%

14.49%

18.17%

* 20.48% 19.76%

22.99%

18.84% 20.32% 23.55%

18.44% 19.96%

20.93%

* 19.59% 21.54%

17.33% 18.17%

17.12%

18.79%

15.17%

* 17.29%

13.59%

15.59%

20.01%

10.85%

20.94% 20.43% 23.20% 24.81%

16.10%

23.45%

* 22.56% 22.38%

24.81%

24.19% 24.23% 24.81%

21.40% 19.95%

23.20%

* 22.76% 23.20%

19.11% 18.65%

20.07%

21.37%

17.92%

* 19.06%

16.32%

16.49%

Rank Portfolio Benchmark

2.87%

6.63%

-0.18% 0.24% -5.97% -6.19%

-1.61%

-5.28%

* -2.08% -2.62%

-1.82%

-5.36% -3.91% -1.26%

-2.96% 0.02%

-2.27%

* -3.17% -1.66%

-1.78% -0.48%

-2.95%

-2.58%

-2.75%

* -1.77%

-2.73%

-0.90%

Active Return

Calendar Year 2011

4 3 5 6

3 4

7 5 1

4 1

5 2

2 1

9.66%

9.39%

9.54% 8.65% 8.90%

9.86%

8.29%

* 6.23% 8.79%

8.06%

7.06% 8.17% 8.45%

8.12% *

8.58%

* 8.50% 9.01%

8.08% 8.96%

9.02%

8.74%

* 9.54%

8.14%

9.58%

8.30%

11.40%

9.54% 9.88% 7.90%

9.49%

7.73%

* 7.52% 7.93%

7.57%

9.13% 9.20% 8.03%

8.36% *

7.99%

* 9.51% 8.56%

8.85% 8.01%

10.10%

9.82%

* 9.01%

11.54%

8.68%

Rank Portfolio Benchmark

1.36%

-2.01%

0.00% -1.23% 1.00%

0.37%

0.56%

* -1.29% 0.87%

0.48%

-2.07% -1.02% 0.42%

-0.24% *

0.60%

* -1.02% 0.44%

-0.77% 0.95%

-1.07%

-1.08%

* 0.53%

-3.40%

0.89%

Active Return

3 4 2

6 1

7 5 4

4 2

2 1

Rank

SECTION 3

Multi-Manager Watchâ&#x201E;˘ Survey (Balanced Mandates)

117

MANAGER WATCH™ SURVEY

Multi-Manager Watch™ Survey Risk (Balanced Mandates) 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. 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.

Investment Data to the end of December 2016 – Volatility vs Return Risk vs Return (Calculated on 3 Year Performance) Investment Managers

3 Year Return (p.a.) Rank

Risk (Volatility) Rank

Active Return

Rank

Tracking Error

Information Ratio

Rank

Fixed Asset Allocation Equity Band: 15% - 34% (Local & International Equity) Investment Solutions Low Equity

7.54%

3.37%

0.11%

0.88%

0.12

Momentum MoM Enhanced Factor 3

8.11%

3.30%

-0.04%

1.90%

-0.02

Equity Band: 35% - 44% (Local & International Equity) 27four CPI + 3% Fund

9.17%

4.26%

0.57%

2.16%

0.26

Investment Solutions 37.5% Equity

7.57%

4.17%

-0.26%

1.02%

-0.25

Momentum MoM Enhanced Factor 4

8.47%

4.14%

-0.03%

1.84%

-0.01

Sygnia Signature 40 Fund

9.11%

4.41%

0.55%

2.62%

0.21

27Four CPI + 5% Fund

9.27%

5.03%

0.54%

2.30%

0.23

Investment Solutions Medium Equity

7.27%

4.94%

-0.81%

1.27%

-0.64

Equity Band: 45% - 54% (Local & International Equity)

Momentum MoM Enhanced Factor 5

8.90%

5.37%

-0.67%

1.72%

-0.39

SMM 50

7.30%

4.99%

-0.12%

1.81%

-0.07

Sygnia Signature 50 Fund

9.09%

5.09%

0.49%

2.56%

0.19

Equity Band: 55% - 69% (Local & International Equity) 27Four CPI + 7% Fund

9.47%

6.07%

0.42%

2.45%

0.17

Investment Solutions 62.5% Equity

7.19%

5.78%

-1.14%

1.51%

-0.76

Momentum MoM Classic Factor 6

9.04%

6.41%

-0.41%

1.44%

-0.28

Momentum MoM Enhanced Factor 6

8.90%

6.53%

-0.54%

1.69%

-0.32

SMM 60

7.09%

5.68%

-1.06%

2.14%

-0.49

Equity Band: 70% - 75% (Local & International Equity) Investment Solutions High Equity

7.25%

6.41%

-1.18%

1.71%

-0.69

Momentum MoM Classic Factor 7

9.25%

7.14%

-0.31%

1.45%

-0.22

Momentum MoM Enhanced Factor 7

9.00%

7.18%

-0.56%

1.71%

-0.33

SMM 70

7.00%

6.50%

-1.27%

2.17%

-0.59

Sygnia Signature 70 Fund

9.40%

6.46%

0.49%

2.19%

0.23

Old Mutual Multi-Managers Aggressive

7.77%

6.41%

-1.98%

3.09%

-0.64

Strategic Asset Allocation Low Volatility Investment Solutions Conserver

6.63%

3.49%

-0.98%

1.68%

-0.58

Nedgroup Investment XS Guarded Fund of Funds

9.09%

3.07%

0.19%

3.04%

0.06

Investment Solutions Performer

9.02%

5.79%

1.19%

1.27%

0.94

Investment Solutions Spectrum

7.29%

5.50%

0.48%

0.52%

0.92

Momentum MoM Flexible Factor 6

9.16%

5.98%

-0.13%

2.04%

-0.07

Best Investment View

Momentum MoM Flexible Factor 7

8.68%

6.33%

-0.88%

2.49%

-0.35

Nedgroup Investments XS Diversified Fund of Funds

8.21%

5.36%

-2.80%

5.17%

-0.54

Old Mutual Multi-Managers Managed

7.76%

6.52%

-0.13%

1.45%

-0.09

118

SECTION 3

Multi-Manager Watch™ Survey (Balanced Mandates) Excess Return vs Tracking Error Scatterplot – Multi-Managers Fixed & Strategic Asset Allocation 3 Years ended 31 December 2016 13.00%

27Four CPI + 5% Fund Sygnia Signature 40 Fund 27Four CPI + 3% Fund Investment Solutions Conserver Investment Solutions Low Equity

11.00%

Momentum MoM Flexible Factor 7 27Four CPI + 7% Fund Momentum MoM Flexible Factor 6 Investment Solutions Performer Sygnia Signature 60 Fund

Momentum MoM Enhanced Factor 3 Nedgroup Investments XS Guarded Fund of Funds

Return (p.a)

Momentum MoM Enhanced Factor 7 Momentum MoM Classic Factor 7 Momentum MoM Enhanced Factor 6 Sygnia Signature 70 Fund Momentum MoM Classic Factor 6

9.00% Investment Solutions 62.5% Equity

7.00%

SMM 60 IS Spectrum

Investment Solutions 37.5% Equity Momentum MoM Enhanced Factor 4

Old Mutual Multi-Managers Managed

Investment Solutions Medium Equity

5.00%

SMM 70

SMM 60

Investment Solutions Entrepreneur Old Mutual Multi-Managers Aggressive

Sygnia Signature 50 Fund Nedgroup Investments XS Diversified Fund of Funds Momentum MoM Enhanced Factor 5

3.00% 2.40%

3.40%

4.40%

5.40%

6.40%

7.40%

8.40%

Active Risk (p.a)(tracking error)

Volatility vs Return – Multi Managers Fixed & Strategic Asset Allocations 3 years ended 31 December 2016 6.00% Sygnia Signature 40 Fund

27Four CPI + 5% Fund

Nedgroup Investments XS Guarded Fund of Funds 27Four CPI + 7% Fund Investment Solutions Low Equity Momentum MoM Enhanced Factor 3

4.00%

Return (p.a)

SMM 50

2.00%

Investment Solutions Performer

Old Mutual Multi-Managers Managed Investment Solutions 37.5% Equity Momentum MoM Enhanced Factor 6 Momentum MoM Enhanced Factor 7

Sygnia Signature 60 Fund Sygnia Signature 70 Fund SMM 70 Momentum MoM Enhanced Factor 4 Momentum MoM Flexible Factor 6 27Four CPI + 3% Fund Momentum MoM Enhanced Factor 6 Momentum MoM Enhanced Factor 5 Momentum MoM Flexible Factor 7 SMM 60 Investment Solutions Conserver Investment Solutions Equity High

0.00%

-2.00%

Investment Solutions 62.5% Equity Investment Solutions Medium Equity Momentum MoM Classic Factor 7 Momentum MoM Classic Factor 6 Investment Solutions Spectrum

-4.00% 0.30%

1.30%

2.30%

Old Mutual Multi-Managers Aggressive

3.30%

4.30%

5.30%

6.30%

Volatility (p.a)(tracking error)

119

MANAGER WATCH™ SURVEY

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.

General information Investment Managers

Fund Classification

Benchmark Description

No. of funds in composite

Portfolio Size (R m)

Absolute Return Funds Absa Asset Management Medical Aid Fund

Segregated

Headline CPI + 4%

538

Argon Absolute Return Medical Fund

Segregated

Headline CPI + 4%

1 163

Coronation Medical Absolute

Pooled

Headline CPI + 3%

N/A

1 312

IS Medical Schemes Real Return Focus

Pooled Multi-Managed

Headline CPI + 4%

N/A

602

OMIG MacroSolutions Medical Aid Portfolio

Segregated

Headline CPI + 4% (CPI + 5% prior Dec 14)

734

Prescient Positive Return Medical Aid Fund

Segregated

CPI + 3% (CPIX + 3% prior Jan 09)

799

Prudential Medical Aid Fund

Segregated

Headline CPI +5%

1 493

SIM Medical Aid Domestic Absolute

Pooled

Headline CPI + 5%

1 699

STANLIB Medical Investment Fund

Unit Trust

Headline CPI + 5%

500

STeFI

2 443

Money Market Funds Aluwani Capital Partners - Medical Aid Money Market Composite Cadiz African Harvest Core Money Market

Segregated

STeFI

203

Coronation Medical Cash

Pooled

STeFI

N/A

423

Investec Stable Money Fund

Pooled

STeFI

N/A

1 223

MMI - Medical Aid Money Market

Segregated

STeFI

120

Nedgroup Investments Corporate Money Market Fund

Pooled

STeFI

24 112

SIM Enhanced Cash Medical

Segregated

STeFI

Taquanta Core Cash

Segregated

STeFI

6 318

Allan Gray Life Stable Medical Portfolio

Pooled

Headline CPI + 3%, Alexander Forbes 3 month Deposit Index plus 2%

N/A

1 935

Foord Medical

Segregated

40% ALSI, 10% SAPY, 50% Call Rate + 2%

239

Balanced Funds

Total

120

45 854

9.00%

Taquanta Core Cash

7.88%

6.61%

5.46%

2.63%

4.13%

7.39%

15.45%

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

Medical Consumer Price Inflation

FTSE / JSE All Share Index (Free Float)

FTSE / JSE SWIX All Share Index

Short Term Fixed Interest Rate Index

All Bond Index

* Inflation figures in this table are lagged by one month.

6.61%

Consumer Price Inflation (Old/New combined CPI)

Number Of Participants

6.61%

Combination of old CPIX and new CPI

Statistics

10.29%

Allan Gray Life Stable Medical Portfolio

Foord Medical

Balanced Funds

8.09%

8.82%

SIM Enhanced Cash Medical

8.53%

MMI - Medical Aid Money Market

Nedgroup Investments Corporate Money Market Fund

8.43%

Investec Stable Money Fund

6.52%

9.61%

7.39%

8.15%

8.55%

Cadiz Money Market

Coronation Medical Cash

Aluwani Capital Partners - Medical Aid Money Market Composite

11.61%

4.13%

4.82%

STANLIB Medical Investment Fund

11.61%

8.23%

10.09%

SIM Medical Aid Domestic Absolute

Money Market Funds

7.45%

Prudential Medical Aid Fund

9.61%

9.72%

7.04%

6.61%

OMIG MacroSolutions Medical Aid Portfolio

9.61%

10.61%

8.24%

7.73%

Coronation Medical Absolute

IS Medical Schemes Real Return Focus

Prescient Positive Return Medical Aid Fund

10.61%

8.34%

6.73%

Absa Asset Management Medical Aid Fund

6.90%

6.59%

7.59%

6.16%

5.75%

5.72%

7.43%

9.82%

7.67%

7.07%

7.13%

7.50%

6.90%

7.22%

7.68%

8.66%

9.03%

7.01%

6.62%

7.02%

6.16%

Portfolio

10.61%

3 Years (p.a)

Benchmark

1 Year

Portfolio

Argon Absolute Return Medical Fund

Absolute Return Funds

Investment Managers

Investment Data to the end of December 2016 â&#x20AC;&#x201C; Performance Data

7.74%

8.72%

6.59%

10.72%

8.72%

9.30%

9.72%

8.72%

Benchmark

8.58%

0.21%

10.29%

9.80%

3.26%

1.52%

4.36%

2.94%

0.67%

0.24%

0.37%

0.26%

0.88%

0.26%

3.70%

3.16%

4.61%

3.06%

4.69%

3.37%

4.17%

Volatility

7.36%

6.10%

14.18%

12.97%

5.44%

5.62%

10.62%

8.80%

7.36%

6.72%

6.56%

9.78%

10.39%

11.81%

8.31%

9.17%

8.23%

9.13%

Portfolio

5 Years (p.a)

10.45%

8.62%

6.10%

10.62%

8.62%

9.89%

9.62%

8.62%

Benchmark

7.91%

0.24%

10.03%

10.46%

3.33%

1.42%

4.40%

2.60%

0.53%

0.33%

0.70%

3.33%

3.05%

4.76%

3.75%

4.58%

3.44%

4.21%

Volatility

8.62%

6.17%

13.62%

12.25%

5.65%

5.40%

10.62%

9.03%

7.43%

6.87%

6.61%

8.81%

10.59%

12.09%

7.68%

9.62%

8.46%

9.84%

Portfolio

7 Years (p.a)

10.37%

8.40%

6.17%

7.62%

6.17%

10.40%

8.40%

9.94%

9.40%

8.40%

Benchmark

7.97%

7.31%

11.38%

10.50%

6.26%

6.07%

6.26%

6.27%

9.98%

9.94%

8.48%

8.02%

7.84%

8.96%

9.50%

9.44%

9.88%

10.27%

Portfolio

10 Years (p.a)

10.33%

9.26%

7.31%

10.26%

9.27%

11.06%

10.26%

9.26%

Benchmark

SECTION 3

SA Medical Aid Manager WatchTM Survey

121

122 Domestic

79.00%

100.00%

69.30%

100.00%

Total empowerment Shareholding (%)

2 055.2

51.6

1 001.2

77.4

1 049.6

Fund Size (R m)

9.61% 11.61%

3.10%

11.61%

4.21%

6.66%

12.45%

11.61%

South Africa OE (ASISA) Domestic FI Bond

All Bond Index

Oasis Bond Unit Trust Fund

Pan-African AM Segregated Domestic Bond Fund

Vunani Active Bond Fund

Domestic

73.27%

100.00%

71.00%

100.00%

4 619.8

1 040.4

1 556.3

406.7

1 178.5

16.28%

16.93%

15.82%

14.10%

15.73%

15.45%

13.60%

15.45%

7.32%

7.46%

7.33%

7.43%

7.44%

SA BIV Median

Pan-African AM Balanced Fund

Domestic Domestic

Domestic 71.00%

69.30%

100.00%

71.9 326.0

54.6

0.21% 14.67%

13.22% 9.33%

9.33%

10.61%

7.56% 6.94%

3.24%

Domestic

2 442.7

641.1

565.5

62.0

7 463.6

1 805.8

8.23%

8.95%

7.78%

7.57%

8.89%

8.54%

7.39%

7.42%

7.82%

7.39%

7.42%

7.22%

7.75%

6.90%

6.97%

7.64%

7.42%

Domestic

FTSE/JSE SWIX

FTSE/JSE ALSI

Vunani Core Equity Fund

Maestro Equity Prescient Fund

57.00%

79.00%

100.00%

3 143.0

118.5

1 509.8

7 764.8

999.9

11 038.4

11 603.5

4 232.6

1 938.9

1 224.7 4.13%

4.13% 2.63%

4.36% -0.17%

3.41%

15.02%

3.94%

4.67% 4.47%

4.12% 4.13%

-2.54%

4.13%

6.05% 10.64%

4.13% 4.13%

1.86% 0.86%

7.39%

5.98%

7.03%

4.79%

7.63%

8.78%

7.88%

2.83%

3.47%

7.96%

Domestic

50% 0-3 yrs Bonds, 25% Real estate Development & Services (J863) and 25% Real Estate Investment Trusts (J867)

Vunani Property Income Fund

2.63% 4.13% 15.45% 7.39%

FTSE/JSE All Share Index

FTSE/JSE SWIX All Share

All Bond Index

Short Term Fixed Interest Index

6.59%

6.90%

7.59%

6.16%

5.72%

8.61%

16.66%

5.89%

0.03%

10.20%

6.61%

0.04%

10.08%

6.94%

82 218.3

155.6

12 019.0

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

79.00%

100.00%

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

Market Statistics

Total

Domestic

FTSE/JSE South African Listed Property Index (J253)

Meago Composite

Property Funds

Domestic

Domestic Domestic

FTSE/JSE Capped Index (CAPI)

South Africa OE (ASISA) Domestic Equity General

Mergence CAPI Fund

100.00%

90.00% 100.00%

Domestic

69.30%

73.27%

100.00%

Domestic

Oasis Specialist Domestic Equity

FTSE/JSE SWIX

Mazi Capital Composite

Mergence SWIX Fund

Domestic

FTSE/JSE SWIX

Kagiso Core Swix Fund

Kagiso Managed Equity Fund

Domestic Domestic

FTSE/JSE SWIX

FTSE/JSE SWIX 40

Aeon Active Equity Fund

Aluwani - Equity

Equity Funds

71.00%

100.00%

AF Money Market Index

Pan-African AM Segregated Domestic Cash Fund

Domestic

South Africa OE (ASISA) Domestic FI Money Domestic Market

Oasis Money Market Fund

73.27% 100.00%

Domestic

Alexander Forbes Money Market Index/STEFI

STeFI

Domestic

73.27% 73.27%

Aluwani - Money Market (Max 91-180)

Domestic

JM BUSHA CashPlus

STeFI

Aluwani - Medical Aid Money Market

Aluwani - Money Market (Max 90)

Money Market Funds

STeFI + 3% / CPI + 5%

SA BIV Median

Aeon Balanced Fund

Kagiso Balanced Fund

5 Years

9.45%

14.65%

6.16%

7.59%

4.62%

6.68%

7.59%

6.60%

6.63%

6.59%

6.58%

6.60%

6.10%

7.36%

14.18%

12.97%

5.75%

5.62%

18.78%

13.82%

14.52%

11.09%

14.27%

15.43%

16.85%

10.33%

11.78%

15.75%

15.09%

7.44%

6.34%

6.53%

7.22%

6.91%

11.33%

7.32% 6.58%

7.80%

8.36%

7.97%

7.88%

7.81%

7.99%

11.23%

8.33%

9.41%

8.64%

10.95%

Fund

7.32%

9.80%

6.90%

7.16%

6.90%

10.72%

8.72%

10.72%

Benchmark

Balanced Funds

All Bond Index

Aluwani - SA Bond

JM BUSHA BondPlus

7.29%

6.19%

6.51%

6.75%

6.45%

Fund

7.89%

3 Years

Fund

Benchmark

1 Year

Bond Funds

CPI + 5%

Vunani Domestic Target Return CPI + 5%

Domestic

CPI + 5%

CPI + 3%

Mergence Absolute + 5% Fund

Vunani Domestic Target Return CPI + 3%

Domestic

CPI + 5% pa/ STeFI + 4% pa

CPI + 5%

Domestic

Global / Domestic Mandate

JM BUSHA Absolute AllClass

Benchmark

Kagiso Protector Fund

Absolute Return Funds

Investment Managers

Investment Data to the end of December 2016

17.29%

14.18%

10.29%

13.33%

14.18%

6.14%

6.08%

6.07%

6.09%

6.14%

11.53%

7.36%

7.77%

7.37%

7.36%

10.62%

8.62%

10.62%

Benchmark

MANAGER WATCH™ SURVEY

BEE Manager Watch™ Survey – Performance Figures

Objective: The purpose of the BEE Manager Watch™ Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers.

93.00%

100.00%

71.00%

79.60%

57.00%

Mergence Investment Managers

Oasis Group Holdings (Pty) Ltd

Pan-African Asset

Vunani Fund Managers (Pty) Ltd

Maestro

10%

13%

20%

88.00%

67.00%

87.00%

50.00%

71.42%

15.00%

Mergence Investment Managers

Oasis Group Holdings (Pty) Ltd

Pan-African Asset

Vunani Fund Managers (Pty) Ltd

Maestro

63.30%

Kagiso Asset Management (Pty ) Limited

100.00%

JM Busha

Mazi Capital Composite

59.46%

Meago (Pty) Ltd

85.71%

ALUWANI Capital Partners

Total Staff Empowerment (%)

Mboweni Brothers Capital, Staff, Mineworkers Charitable Trust

11%

89.0%

Vunani Capital (Pty) Ltd

Lexshell 630 Investments (Pty) Ltd)

71.00%

100.00%

Assupol

Three

Meago Staff

90.00%

34.83%

Black Staff

Mazi Staff

52.60%

40.00%

MMI Strategic Investments (Pty) Ltd

Kagiso Trust

20.00%

40.00%

ALUWANI Management Partners (Pty) Ltd

Main Street 1413 (Pty) Ltd

100.00%

Asief Mohamed

Partner(s)

13.00%

100.00%

40.00%

80.00%

100.00%

75.00%

83.30%

100.00%

87.50%

100.00%

Board Members (%)

13.00%

50.00%

87.00%

60.00%

90.00%

75.00%

60.00%

100.00%

75.00%

100.00%

2.00%

53.57%

66.67%

46.00%

51.50%

0.00%

31.00%

55.10%

63.00%

48.65%

42.86%

12.00%

7.14%

40.00%

75.00%

62.50%

30.00%

88.00%

72.20%

100.00%

10.81%

83.33%

Investment Analyst (%)

Level 2

Level 1 Contributor (AAA)

Level 2

Level 1 contributor*

Level 2

Level 6

Level 1 contributor

0.00%

50.00%

60.00%

20.00%

33.33%

0.00%

33.30%

0.00%

25.00%

50.00%

0.00%

60.00%

100.00%

20.00%

0.00%

40.00%

0.00%

50.00%

0.00%

Executives (%)

2.00%

42.85%

50.00%

48.00%

77.00%

31.00%

56.80%

63.00%

40.54%

50.00%

Staff (excl management) (%)

Staff and Management (Female) Board Members (%)

0.00%

7.14%

40.00%

13.00%

37.50%

33.33%

11.00%

38.10%

20.00%

13.51%

33.33%

Investment Analyst (%)

0.00%

100.00%

0.00%

11.00%

0.00%

2.70%

0.00%

Portfolio Manager (%)

(Percentage of staff)

12.00%

41.20%

70.00%

10.00%

56.79%

50.00%

40.00%

21.00%

90.00%

82.00%

57.00%

Use of black brokerages as a percentage of total brokerages used (by volume)

12.00%

14.28%

50.00%

100.00%

43.00%

30.00%

88.00%

33.33%

100.00%

8.11%

50.00%

Portfolio Manager (%)

Empowerment Rating (if available)

12.00%

64.20%

50.00%

87.00%

78.00%

10.00%

88.00%

63.60%

100.00%

51.35%

83.33%

Staff (excl Executives management) (%) (%)

Staff and Management (Empowerment) (Percentage of staff)

Total Staff Female (%)

Partner(s) shareholding (%)

Empowerment Shareholding

Aeon Investment Management

Manager

90.00%

51.16%

Kagiso Asset Management (Pty) Limited

100.00%

JM Busha

Meago (Pty) Ltd

73.27%

ALUWANI Capital Partners

Mazi Capital Composite

100.00%

Total empowerment Shareholding (%)

Aeon Investment Management

Manager

Details of Empowerment Shareholding as at 31 December 20165

SECTION 3

BEE Manager Watch™ Survey – Empowerment Details

123

MANAGER WATCH™ SURVEY

LDI Manager Watch™ Survey 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.

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 acheived. 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 skillset 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. However, it is 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

124

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 don’t have a track record this long. It is useful in such cases to look at the manager’s performance in ordinary credit portfolios.

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, while 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.

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 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 of between nine and twelve years at current yields.

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

The “% exposure to credit assets” measures the exposure to risky assets, excluding government-linked bonds and some forms of cash. All else equal, the larger this percentage is, the greater one would

SECTION 3

expect the long-term outperformance of liabilities to be. This figure may also reflect mandate constraints regarding the inclusion of credit. The “% unlisted exposure” shows the proportion of the portfolio which is invested in unlisted instruments. Unlisted instruments may (but are not necessarily) subject to 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.

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.

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.

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.

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

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.

125

MANAGER WATCH™ SURVEY

LDI Specific Measures

126

Liability outperformance shows how much value, in excess of the growth in liabilities, the manager was able to add for their client.

Liability convexity and duration are technical measures of certain liability characteristics.

% exposure to credit assets measures the exposure to risky assets, excluding government-linked bonds and some forms of cash.

% unlisted exposure shows the proportion of the portfolio which is invested in unlisted instruments.

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.

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.

Tracking error shows the dispersion of portfolio returns relative to the investor’s liability.

The risk adjusted outperformance shows the extent to which managers outperform liabilities, adjusted for the tracking error or risk they have introduced.

SECTION 3

LDI Manager Watchâ&#x201E;˘ Survey General market commentary

Inflation-linked bond section

Nominal and real bond yields weakened across the quarter with significant volatility in the nominal curve. Both curves showed some reshaping as well, which can affect manager performance.

The real yield curve increased across the quarter. Short dated yields increased more than longer dated yields, resulting in flat yield curve by the end of the period. This yield curve offers no additional term premium for holding long dated bonds. The lack of gradient on the real curve (particularly relative to the nominal curve) may point to a market dominated by investors with long term hedging needs.

South Africa avoided downgrade to junk status from any of the major ratings agencies during the quarter, though a risk of downgrade during 2017 remains. Political uncertainty remained a major theme both locally and internationally. Trump won the US election, promising material changes in US foreign and trade policies. Locally charges against the Finance Minister were dropped, though political news flows remained tense. Inflation (6.8%) was also well above the target window (3-6%) at the end of December. Across the quarter the vast majority of local composites in all survey categories outperformed benchmark liabilities. The remainder were near flat. All else equal, benchmark liabilities and bond values decrease when yields increase. Given that both the nominal and real yield curve rose across the quarter, it is possible that the industry was marginally under-hedged, with a view that rising yields were more likely than falling yields. If this is the case, the extent of under-hedging was marginal, as the size of the outperformance was not very large on average. Given the de-risking objective of LDI portfolios, managers would typically only take small views on interest rate changes.

Larger increases in short dated yields can impact the performance of partially funded LDI mandates; i.e. mandates where the manager may take less hedging exposure than the value of the liability they are benchmarked against. Such managers may choose to hold bonds with a longer duration than their liability benchmark to increase the sensitivity of the assets to shifts in yields. In months where short dated yields increase significantly, their benchmark liabilities may decrease in value more than the assets they manage. It is interesting to note that Colourfield Composite 3, which invests 25% or less of benchmark liability value outperformed by 2.11% during the quarter. The flattening of the yield curve may in part have contributed to this. The increase in the level and changes in the shape of the curve can result in over or under performance for portfolios with specific rates views â&#x20AC;&#x201C; i.e. where liabilities are not fully or perfectly hedged. It is unsurprising to see some volatility in results during the last month, in line with the extent of curve movement.

Stanlib Composite 1 and Composite 3 were the conventional (full liability value exposure allowed) composites that achieved the highest and lowest risk adjusted outperformance for 2016 respectively. Across a longer 3 year period, Colourfield Composite 1 has achieved the highest risk adjusted outperformance.

Nominal bond section The nominal curve was volatile during the quarter, reshaping and shifting significantly. This environment can be testing for LDI managers. There are only three participants in the nominal survey. One of these is short dated (Investec) and one is Namibian, further limiting meaningful comparison and inference. Although the nominal curve shifted up materially across the quarter (more than 0.25% p.a. for most input instruments), the ALBI return for the quarter was marginally positive. The accrual of interest across the quarter was large enough to offset the losses due to the increases in yields.

Nominal and inflation-linked section Colourfield Composite 4 ended the quarter marginally positive, outperforming liabilities by 15 basis points (0.15%). Due 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 3 year period the mandate has delivered outperformance of +0.74% p.a. 127

128

-0.04%

2.11%

0.04%

0.37%

-0.15%

0.95%

-0.02%

0.24%

-0.24%

Colourfield Composite 2

Colourfield Composite 3

Sanlam Structured Solutions

STANLIB Composite 1

STANLIB Composite 3

0.71%

0.10%

STANLIB Composite 2

1.57%

-0.29%

-0.34%

0.63%

All Bond Index

BESA Standard Bank Credit Index

STeFI

0.15%

Barclays - BESA SA Inflation Linked Index

Market Indices & Statistics

Total

Colourfield Composite 4

1.88%

-0.68%

-1.07%

0.35%

0.55%

Nominal & Inflation Linked Bond Curve Benchmarking

-0.47%

-0.17%

SIM Composite 3 (Namibia)

0.00%

Investec

Nominal Bond Yield Curve Benchmarking

0.15%

0.07%

Colourfield Composite 1

0.22%

-0.01%

0.88%

Ashburton

0.74%

1.20%

-2.48%

0.00%

2.68%

0.46%

4.73%

0.40%

0.89%

7.39%

1.37%

6.27%

6.59%

0.65%

6.99%

15.45% 6.90%

1.22%

1.47%

-6.63%

0.00%

0.17%

3.60%

0.09%

4.59%

0.47%

0.62%

Outperformance of Liability 3rd Party 3 Years Assets Month Quarter 1 Year (p.a.)

Inflation-Linked Bond Yield Curve Benchmarking

Investment Managers

Investment Data to the end of December 2016

6.10%

2.89%

8.06%

7.36%

-1.13%

0.00%

0.89%

3.31%

0.55%

0.98%

5 Years (p.a.) % unlisted exposure

6.58

7.40

9.10

3.20

13.11

9.48

8.73

10.38

9.14

10.82

9.64

84.28

111.59

143.99

11.00

279.65

162.91

74.26

179.07

149.15

195.69

1 242.00

3.03%

13.53%

5.5%

17.0%

0.0%

100.0%

56.6%

0.92%

7.43%

5.91%

8.8%

0.00%

1.4%

0.0%

21.68%

52.2%

0.00%

2.26%

1.48%

0.00%

38 162.36

1 016.22

160.12

1 079.95

3 543.31

1 107.62

828.67

430.71

Although mandated to manage 100% of liability risk, a portion of investor’s remaining assets 3 584.68 are invested in fixed income and similar assets. The contribution of these assets is accounted for in the manager’s benchmark.

15 070.85

10 345.62

994.60

Notes

Portfolio Size (R M)

% exposure to credit assets

Portfolio Characteristics

Liability Benchmark Convexity

Liability Characteristics Liability Benchmark Duration

Liability benchmark, zero spread

Liability benchmark, -25bps spread

Liability benchmark, zero spread

Benchmark

MANAGER WATCH™ SURVEY

LDI Manager Watch™ Survey

Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.

PE PE

STANLIB

Colourfield Composite 4

Nominal & Inflation Linked Bond Curve Benchmarking

SIM Composite 3 (Namibia)

Investec

Nominal Bond Yield Curve Benchmarking

STANLIB Composite 3

STANLIB Composite 1

Sanlam Structured Solutions

Colourfield Composite 3

Colourfield Composite 2

Colourfield Composite 1

Ashburton

>75% 99.12%

100.25%

100.44%

99.53%

100.00%

99.90%

99.93%

100.04%

100.43%

99.96%

100.07%

99.86%

100.19%

93.37%

100.00%

99.41%

100.04%

99.79%

100.59%

100.01%

100.06%

1 Year

99.98%

100.41%

92.74%

100.00%

99.94%

100.33%

101.17%

100.02%

100.11%

3 Years

94.49%

100.00%

99.68%

98.69%

99.82%

100.06%

5 Years

Quarter

50-75%

<25%

25-50%

Minimum funding level assuming an artificial starting level of 100% at the start of the period

Inflation-Linked Bond Yield Curve Benchmarking

Investment Managers

Risk Statistics

LDI portfolio as a percentage of liability (P = Physical / E = Effective)

Investment Data to the end of December 2016

0.20%

0.61%

0.79%

0.00%

1.48%

0.57%

0.12%

0.90%

0.49%

0.14%

5.73%

Quarter

0.63%

0.53%

4.31%

0.00%

1.16%

1.47%

0.41%

1.16%

0.44%

0.30%

1 Year

1.07%

0.75%

2.67%

0.00%

1.29%

0.56%

1.68%

0.39%

0.31%

3 Years

Tracking Error (Annualised)

2.24%

0.00%

0.88%

2.39%

0.54%

0.44%

5 Years

SECTION 3

LDI Manager Watchâ&#x201E;˘ Survey

Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.

129

MANAGER WATCHâ&#x201E;˘ SURVEY

LDI Manager Watchâ&#x201E;˘ Survey Objective: The portfolios included in this survey represent liability-driven investment funds with benchmarks expressly referencing investor liabilities.

Investment Data to the end of December 2016 Investment Managers

1 Year

3 Years (p.a.)

5 Years (p.a.)

Inflation-Linked Bond Yield Curve Benchmarking Ashburton

Colourfield Composite 1

2.06

2.90

2.21

Colourfield Composite 2

1.08

1.03

Colourfield Composite 3

3.95

2.82

1.39

Sanlam Structured Solutions

0.21

0.82

1.01

Nominal Bond Yield Curve Benchmarking Investec

Zero tracking error

SIM Composite 3 (Namibia)

-1.54

-0.93

-0.50

STANLIB

2.76

1.59

1.95

0.69

Nominal Bond Yield Curve Benchmarking Colourfield Composite 4

Results yes, excellence no problem. At Sentio Capital Management the highly skilled teams of professionals believe that humility and discipline deliver exceptional performance and sustainable returns. Our track record and robust methodology delivers for the good of our clients, the environment and for humanity. Contact Sentio Capital Management and understand that investment for good is for good.

www.sentio-capital.com info@sentio-capital.com Tel: +27 11Â 880 1994, 3rd Floor, Global House, 28 Sturdee Avenue, Rosebank, Johannesburg. Sentio Capital Management (Pty) Ltd is an authorized Financial Services Provider. FSP No.33843

MANAGER WATCHTM SURVEY

4 SECTION 4 Fees – Indicative Range Base Fees plus Performance Fees – Indicative Ranges Fee Analysis

MANAGER WATCH™ SURVEY

Base Fees – Indicative Range

Multi–Asset Class Mandates Global Mandate, BIV, Segregated Portfolios Average fee per band Fee Band

Average Fee(%)

0-50 million 0.74% 51-100 million 0.73% 101-150 million 0.71% 151-250 million 0.69% 251-500 million 0.67% 500 + million 0.65% International 1.20% Highest and Lowest per fee band Fee Band High 0-50 million 0.85% 51-100 million 0.85% 101-150 million 0.85% 151-250 million 0.85% 251-500 million 0.85% 500 + million 0.85% International 1.50%

Average fee per band Participants per Fee Band 8 8 8 8 8 8 8 Low 0.60% 0.60% 0.55% 0.50% 0.45% 0.45% 0.60%

Domestic Mandate, BIV, Segregated Portfolios Average fee per band Fee Band

Average Fee (%)

0-50 million 0.77% 51-100 million 0.76% 101-150 million 0.74% 151-250 million 0.73% 251-500 million 0.70% 500 + million 0.66% Highest and Lowest per fee band Fee Band High 0-50 million 1.50% 51-100 million 1.50% 101-150 million 1.50% 151-250 million 1.50% 251-500 million 1.50% 500 + million 1.50%

Global Mandate, BIV, Pooled Portfolios

Fee Band

Average Fee (%)

0-50 million 0.68% 51-100 million 0.67% 101-150 million 0.64% 151-250 million 0.59% 251-500 million 0.55% 500 + million 0.51% International 0.60% Highest and Lowest per fee band Fee Band High 0-50 million 0.70% 51-100 million 0.70% 101-150 million 0.70% 151-250 million 0.65% 251-500 million 0.60% 500 + million 0.59% International 0.60%

Participants per Fee Band 3 3 3 3 3 3 3 Low 0.65% 0.60% 0.55% 0.50% 0.45% 0.45% 0.60%

Domestic Mandate, BIV, Pooled Portfolios Average fee per band

Participants per Fee Band 18 18 18 18 18 18 Low 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%

Fee Band

Average Fee (%)

0-50 million 0.71% 51-100 million 0.69% 101-150 million 0.66% 151-250 million 0.65% 251-500 million 0.63% 500 + million 0.62% Highest and Lowest per fee band Fee Band High 0-50 million 1.35% 51-100 million 1.35% 101-150 million 1.35% 151-250 million 1.35% 251-500 million 1.35% 500 + million 1.35%

Global Absolute Mandate, BIV, Segregated Portfolios Average fee per band Fee Band

Average Fee (%)

0-50 million 0.79% 51-100 million 0.78% 101-150 million 0.78% 151-250 million 0.77% 251-500 million 0.75% 500 + million 0.72% International 1.17% Highest and Lowest per fee band Fee Band High 0-50 million 0.95% 51-100 million 0.95% 101-150 million 0.95% 151-250 million 0.95% 251-500 million 0.95% 500 + million 0.95% International 1.50%

Participants per Fee Band 13 13 13 13 13 13 13 Low 0.60% 0.60% 0.55% 0.55% 0.50% 0.43% 0.60%

Domestic Absolute Return Mandate Average fee per band

Participants per Fee Band 33 33 33 33 33 33 Low 0.15% 0.15% 0.15% 0.15% 0.15% 0.15%

Fee Band

Average Fee (%)

0-50 million 0.66% 51-100 million 0.63% 101-150 million 0.60% 151-250 million 0.59% 251-500 million 0.55% 500 + million 0.53% Highest and Lowest per fee band Fee Band High 0-50 million 1.00% 51-100 million 1.00% 101-150 million 1.00% 151-250 million 1.00% 251-500 million 0.95% 500 + million 0.95%

Participants per Fee Band 30 30 30 30 30 30 Low 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%

Single Asset (Specialist) Mandate Specialist Domestic Equity Mandate Average fee per band Fee Band

Average Fee (%)

0-50 million 0.73% 51-100 million 0.72% 101-150 million 0.70% 151-250 million 0.69% 251-500 million 0.66% 500 + million 0.63% Highest and Lowest per fee band Fee Band High 0-50 million 1.35% 51-100 million 1.35% 101-150 million 1.35% 151-250 million 1.35% 251-500 million 1.35% 500 + million 1.35%

134

Specialist Domestic Fixed Interest Mandate Average fee per band

Participants per Fee Band 43 43 43 43 43 43 Low 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%

Fee Band

Average Fee (%)

0-50 million 0.39% 51-100 million 0.36% 101-150 million 0.34% 151-250 million 0.33% 251-500 million 0.30% 500 + million 0.28% Highest and Lowest per fee band Fee Band High 0-50 million 0.70% 51-100 million 0.58% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50%

Specialist Domestic Money Market Mandate Average fee per band

Participants per Fee Band 40 40 40 40 40 40 Low 0.18% 0.18% 0.18% 0.15% 0.13% 0.10%

Fee Band

Average Fee (%)

0-50 million 0.23% 51-100 million 0.21% 101-150 million 0.19% 151-250 million 0.19% 251-500 million 0.17% 500 + million 0.15% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.40% 101-150 million 0.30% 151-250 million 0.30% 251-500 million 0.30% 500 + million 0.30%

Participants per Fee Band 33 33 33 33 33 33 Low 0.10% 0.10% 0.09% 0.08% 0.08% 0.08%

SECTION 4

Base Fees plus Performance Fees â&#x20AC;&#x201C; Indicative Ranges

Multiâ&#x20AC;&#x201C;Asset Class Mandates Global Mandate, BIV, Segregated Portfolios

Average fee per band

Average fee per band Fee Band

Average Fee (%)

0-50 million 0.48% 51-100 million 0.44% 101-150 million 0.42% 151-250 million 0.40% 251-500 million 0.39% 500 + million 0.38% Performance fees 17.27% Highest and Lowest per fee band Fee Band High 0-50 million 0.65% 51-100 million 0.53% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 25.00%

Participants per Fee Band 11 11 11 11 11 11 11 Low 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 10.00%

Domestic Mandate, BIV, Segregated Portfolios Average fee per band Fee Band

Fee Band

Average Fee (%)

0-50 million 0.49% 51-100 million 0.45% 101-150 million 0.42% 151-250 million 0.39% 251-500 million 0.38% 500 + million 0.37% Performance fees 18.89% Highest and Lowest per fee band Fee Band High 0-50 million 0.65% 51-100 million 0.53% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 25.00%

Participants per Fee Band 9 9 9 9 9 9 9 Low 0.30% 0.30% 0.30% 0.30% 0.30% 0.25% 10.00%

Domestic Mandate, BIV, Pooled Portfolios Average fee per band

Average Fee (%)

0-50 million

Global Mandate, BIV, Pooled Portfolios

Participants per Fee Band

0.39%

51-100 million 0.39% 101-150 million 0.39% 151-250 million 0.38% 251-500 million 0.37% 500 + million 0.37% Performance fees 18.57% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 25.00%

7 7 7 7 7 7 7 Low 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 15.00%

Fee Band

Average Fee (%)

0-50 million 0.37% 51-100 million 0.37% 101-150 million 0.36% 151-250 million 0.35% 251-500 million 0.34% 500 + million 0.33% Performance fees 17.00% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 20.00%

Global Absolute Mandate, Biv, Segregated Portfolios Average fee per band Fee Band

Average Fee (%)

0-50 million 0.40% 51-100 million 0.39% 101-150 million 0.38% 151-250 million 0.38% 251-500 million 0.38% 500 + million 0.38% Performance fees 14.00% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 20.00%

Participants per Fee Band 5 5 5 5 5 5 5 Low 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 10.00%

Domestic Absolute Return Mandate Average fee per band

Participants per Fee Band 5 5 5 5 5 5 5 Low 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 15.00%

Fee Band

Average Fee (%)

0-50 million 0.36% 51-100 million 0.36% 101-150 million 0.35% 151-250 million 0.35% 251-500 million 0.35% 500 + million 0.34% Performance fees 18.57% Highest and Lowest per fee band Fee Band High 0-50 million 0.50% 51-100 million 0.50% 101-150 million 0.50% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 25.00%

Participants per Fee Band 7 7 7 7 7 7 7 Low 0.25% 0.25% 0.25% 0.25% 0.25% 0.20% 15.00%

Single Asset (Specialist) Mandate Specialist Domestic Equity Mandate Average fee per band Fee Band

Average Fee (%)

0-50 million 0.40% 51-100 million 0.39% 101-150 million 0.37% 151-250 million 0.35% 251-500 million 0.34% 500 + million 0.32% Performance fees 17.63% Highest and Lowest per fee band Fee Band High 0-50 million 0.73% 51-100 million 0.64% 101-150 million 0.55% 151-250 million 0.50% 251-500 million 0.50% 500 + million 0.50% Performance fees 20.00%

Specialist Domestic Fixed Interest Mandate Average fee per band

Participants per Fee Band 19 19 19 19 19 19 19 Low 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 10.00%

Fee Band

Average Fee (%)

0-50 million 0.19% 51-100 million 0.19% 101-150 million 0.19% 151-250 million 0.19% 251-500 million 0.19% 500 + million 0.19% Performance fees 18.13% Highest and Lowest per fee band Fee Band High 0-50 million 0.20% 51-100 million 0.20% 101-150 million 0.20% 151-250 million 0.20% 251-500 million 0.20% 500 + million 0.20% Performance fees 25.00%

Specialist Domestic Money Market Mandate Average fee per band

Participants per Fee Band 8 8 8 8 8 8 8 Low 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 15.00%

Fee Band

Average Fee (%)

0-50 million 0.10% 51-100 million 0.10% 101-150 million 0.10% 151-250 million 0.10% 251-500 million 0.10% 500 + million 0.10% Performance fees 15.00% Highest and Lowest per fee band Fee Band High 0-50 million 0.10% 51-100 million 0.10% 101-150 million 0.10% 151-250 million 0.10% 251-500 million 0.10% 500 + million 0.10% Performance fees 15.00%

Participants per Fee Band 1 1 1 1 1 1 1 Low 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 15.00%

135

MANAGER WATCH™ SURVEY

Fee Analysis Investment management fees 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.

The main types of investment fees are annual base fees, with some funds charging an additional performance fee. Fees can be quoted on a fixed basis or a sliding scale. A fixed fee is a constant % fee charged irrespective of the value of the assets being managed. A sliding scale fee is a structure where the % fee charged reduces as the value of assets managed increases. The performance fee is generally charged when the manager outperforms its specified benchmark. The manager therefore earns a percentage of the investment profits (often both realised and unrealised). In simple terms we can define performance fees as the manager’s share of the fund’s profits but not in their losses.

Alexander Forbes Fee Study 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 fee survey utilised data over a five year time period (i.e. 2012 to 2016) to show fee trends if any in the industry. Data was obtained through liaising and collecting data from asset managers and the validity thereof was checked. The Survey was conducted as at November 2016 across nine popular pension fund mandates:

Multi Asset Class Mandates

Single Asset (Specialist) Mandates

Global Mandate, BIV*, Segregated Portfolio

Domestic Equity Mandate

Domestic Mandate, BIV*, Segregated Portfolio

Domestic Fixed Income Mandate

Global Mandate, BIV*, Pooled Portfolio

Domestic Money Market Mandate

Domestic Mandate, BIV*, Pooled Portfolio Global Absolute Mandate Domestic Absolute Mandate

The managers were asked to break down their fee structure into a standardised sliding scale framework using distinct Asset under Management bands: R0-50 million R51-100 million R101-150 million R151-250 million R251-500 million R500 + million Where relevant the fee charged for international assets was collected. * Best Investment View Balanced Portfolios.

136

Limitations of study: 1. The universe was restricted to asset managers that participate in the Alexander Forbes Surveys. 2. Participation in the survey was voluntary, and therefore selection may be biased 3. The standardisation of fees in AuM categories may not reflect an individual manager’s fee scale. Participation in the 2016 survey has increased from 22 to 25 participants. Three new participants joined the 2016 survey. This increased participation in the following Mandates: ■■ Domestic Absolute Mandate ■■ Domestic Equity Mandate ■■ Domestic Mandate, BIV, Pooled Portfolio ■■ Domestic Mandate, BIV, Segregated Portfolio

SECTION 4

Analysis of Asset Management Fees Fees have decreased across all surveys compared to 2015 except for Domestic Equity mandates which have increased on average by 8.7% across all assets under management (AUM) bands. We note an upward trend in Domestic Equity fees since 2014, at a peak of 73bps in 2016 compared to the previous high of 63bps in 2013. Domestic Absolute mandates experienced the largest decrease in fees, a drop of 8.3% on average across all AUM bands. Despite the increase in Domestic Equity fees, Domestic BIV Segregated remains the most expensive domestic category ranging from 66 to 77bps. Domestic Money Market remains the cheapest mandate across all categories ranging from 15 to 23bps.

Domestic BIV Segregated mandates continue to be more expensive than the Global BIV Segregated mandates. This implies that global mandates manage domestic assets cheaper than domestic mandates alone. In 2016, the range was 3-5bps across the scale and reflects a narrowing compared to the 2015 range of 6-8bps across the scale. Fees on mandates that include global assets, increased significantly across all survey categories. Global Absolute mandates experienced the biggest increase of almost 17% compared to 2015. There were however only four participating funds in 2015, but fees increased by 12.8% compared to 2014, hence the upward trend has continued. It is also the most expensive category with fees ranging between 72 and 79bps.

Fees on Global BIV Pooled mandates increased by 2.6% on average (0-3bps across the various AUM bands) since 2015, whereas fees on Global BIV Segregated mandates increased by 4.2% on average (2-4bps across the various AUM bands). Governance costs are much higher for segregated mandates than for pooled assets. As a result the fees on segregated assets, which previously experienced a decline, have increased substantially when compared to pooled products. Participation across these mandated varied. Domestic Equity Mandate offered the highest participation with 19 managers out of 26 covering 52 domestic equity funds from the performance surveys.

Global Balanced Segregated Mandate Fees on the Global Balanced Segregated mandates on average increased up by 4.2% with a range of 10bps across the AUM categories. The largest range across categories was in 2012 at 18bps. Participation in this category decreased. 1.40% 1.20% 1.00% AUM 0-50 million AUM 51-100 million

0.80%

AUM 101-150 million AUM 151-250 million

0.60%

AUM 251-500 million AUM 500 + million

0.40%

International

0.20% 0.00% 2012

2013

2014

2015

2016

137

MANAGER WATCHâ&#x201E;˘ SURVEY

Domestic Balanced Mandates Fees on the Domestic Balanced Segregated mandates on average declined by 2.2% with a range of 11bps across the AUM categories. The largest range across categories was in 2012 and 2013 at 16bps. Participation in this category increased.

0.90% 0.80% 0.70% AUM 0-50 million

0.60%

AUM 51-100 million

0.50%

AUM 101-150 million AUM 151-250 million

0.40%

AUM 251-500 million

0.30%

AUM 500 + million

0.20% 0.10% 0.00% 2012

2013

2014

2015

2016

Global Absolute Mandates Fees on the Global Absolute mandates on average increased by 16.9% with a range of 7bps across the AUM categories. The largest range across categories was in 2015 at 17bps. Participation in this category increased.

1.40% 1.20%

AUM 0-50 million

1.00%

AUM 51-100 million

0.80%

AUM 101-150 million

0.60%

AUM 251-500 million

AUM 151-250 million AUM 500 + million

0.40%

International

0.20% 0.00% 2012

138

2013

2014

2015

2016

SECTION 4

Domestic Absolute Mandates Fees on the Domestic Absolute mandates on average declined by 8.3% with a range of 13bps across the AUM categories. The largest range across categories was in 2013 at 17bps. Participation in this category increased.

0.90% 0.80% 0.70% AUM 0-50 million

0.60%

AUM 51-100 million

0.50%

AUM 101-150 million AUM 151-250 million

0.40%

AUM 251-500 million

0.30%

AUM 500 + million

0.20% 0.10% 0.00% 2012

2013

2014

2015

2016

Domestic Equity Mandates Fees on the Domestic Equity mandates on average increased by 8.7% with a range of 10bps across the AUM categories. The largest range across categories was in 2013 at 12bps. Participation in this category increased.

0.90% 0.80% 0.70% AUM 0-50 million

0.60%

AUM 51-100 million

0.50%

AUM 101-150 million AUM 151-250 million

0.40%

AUM 251-500 million

0.30%

AUM 500 + million

0.20% 0.10% 0.00% 2012

2013

2014

2015

2016

139

MANAGER WATCHâ&#x201E;˘ SURVEY

Domestic Fixed Income Mandates Fees on the Domestic Fixed Income mandates on average declined by 4.4% with a range of 11bps across the AUM categories. The largest range across categories was in 2014 at 13bps. Participation in this category increased.

0.45% 0.40% 0.35% AUM 0-50 million

0.30%

AUM 51-100 million

0.25%

AUM 101-150 million

0.20%

AUM 151-250 million AUM 251-500 million

0.15%

AUM 500 + million

0.10% 0.05% 0.00% 2012

2013

2014

2015

2016

Domestic Money Market Mandates Fees on the Domestic Money Market mandates on average declined by 2.2% with a range of 8bps across the AUM categories. The largest range across categories was in 2014 at 9bps. Participation in this category increased.

0.30% 0.25% AUM 0-50 million

0.20%

AUM 51-100 million AUM 101-150 million

0.15%

AUM 151-250 million AUM 251-500 million

0.10%

AUM 500 + million

0.05% 0.00% 2012

140

2013

2014

2015

2016

What happened to 9 – 5? If you travel for business, there’s a good chance you’ve had red eyes at 4am, worked on a presentation whilst crammed between two strangers and travelled thousands of kilometres to attend a 2-hour meeting.

NET#WORK BBDO 812905/AF/E

You work hard for your money. If you’re thinking of investing, visit www.coronation.com

Coronation is an authorised financial services provider and approved manager of collective investment schemes. Trust is Earned™.

WHAT’S THE

WORST THAT COULD HAPPEN? Global extinction. Entire hives of honey bees are dying in huge numbers. This is worrying because plant-life and honey bees have had a mutualistic relationship for millions of years – each needs the other to survive. Without them, things could become catastrophic. The agricultural industry would collapse, global markets could crash, and, most significantly, life on Earth would become endangered. We’ve built our investment portfolios keeping the worst in mind. In a world where opportunity can’t exist without risk, we use our expertise to navigate these uncertain times. Organised like a swarm of bees, we meticulously manage risk to deliver sustainable benchmark-beating retuns for our clients. Only once you’ve considered the risks, can you plan a more certain future.

Only once you’ve considered the risks, can you plan a more certain future.

Investment Solutions Holdings Limited. Registration number 1997/022540/06.

MANAGER WATCHTM SURVEY

5 SECTION 5 Investment Survey Glossary

MANAGER WATCH™ SURVEY

Investment Survey Glossary Absolute Return Investment Strategy

Balanced Fund 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.

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.

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.

144

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.

SECTION 5

Compound Rate Of Return

Equities

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.

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.

Convertible preference share A preference share that includes an option that allows the investor to convert the preference share into a fixed number of ordinary shares.

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, such as 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, in other words 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.

Fixed Income A major category of asset class that includes cash, nominal bonds, inflation linked bonds and credit instruments.

GBI (Goals-based Investing) Goals-based investing are investment strategies that maximise the probability of meeting your financial objectives. Unlike traditional investing it is not only about maximising risk and return.

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 (such as short positions, leverage and so on). The funds can be used in a Regulation 28 strategy but are not compliant as stand-alone products.

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, such as 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. 145

MANAGER WATCH™ SURVEY

Investment Philosophy

Market Capitalisation

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.

The value of a company’s issued share capital, in other words share price multiplied by number of shares on the stock exchange.

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.

146

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 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.

SECTION 5

Peer Group

Risk budgeting

Usually refers to a set of similarly managed investment mandates.

The process of measuring, allocating and controlling risk of the individual components (Asset classes, individual funds, strategies, and even instrument types) in the context of maintaining an overall risk limit for the aggregate investment portfolio.

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 costeffective 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 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 investorâ&#x20AC;&#x2122;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.

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.

147

MANAGER WATCHâ&#x201E;˘ SURVEY

Short Position

Time-Weighted Rate of Return

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.

The compound rate of return over a stated evaluation period of one unit of money initially invested in the portfolio or strategy.

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, and so on) or investment strategies (hedge funds, impact investing, and so on) 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 longterm 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 to enhance returns in the short term and maximise risk adjusted returns.

Term To Maturity The time remaining on the life of a bond, in other words time remaining for the bond to be fully repaid. 148

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.

This is wealth management at its ďŹ nest: a diverse selection of investments, expertly put together for the discerning investor who seeks high-yield returns. We achieve long-term growth in a complex global economy with our team of seasoned specialists and their commitment to excellence, integrity and growth.

www.fairtree.com

Fairtree Capital (Pty) Ltd (Reg No 2004/033269/07) is a licensed Financial Services Provider (FSP 25917).

MANAGER WATCHTM SURVEY

6 SECTION 6 Directory of South African Asset Managers

MANAGER WATCH™ SURVEY

27four Investment Managers (Pty) Ltd www.27four.com

Company details FAIS FSP registration number: 31045 Switchboard: +27 11 442 2464 Fax number: +27 11 442 2465 General email: info@27four.com Website: www.27four.com Address: 54 on Bath, Ground Floor, 54 Bath Avenue, Rosebank, 2196 PO Box 522417, Saxonwold, Johannesburg, 2132 Compliance 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 152

to business, compliance, operational and administrative risks as is applied to investment performance risk.

FAIS requirements Who is your FAIS complaints officer? Enrique Goosen Please provide the link to the complaints policy on your website: http://www.27four.com/wp-content/ uploads/2013/02/FAIS-DisclosureDocument.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 Preez Do 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? 2007-09-01 List of mergers that have taken place since being established: None.

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 2016-09-29

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R19 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R16 billion Retail: R3 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 11 Fatima Vawda Managing Director MSc Applied Mathematics 21 years’ industry experience 9.4 years with firm Claire Rentzke Chief Investment Officer BBusSci (Hons), CFA 16 years’ industry experience 4.5 years with firm Vic du Preez Head of Risk Management B Com (Hons) 9 years’ industry experience 9 years with firm Nadir Thokan Portfolio Manager B Com (Hons) 6 years’ industry experience 6 years with firm

SECTION 6

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: 22877 Switchboard: +27 21 927 6700 Fax number: +27 21 927 6550 General email: chris.watts@absacapital.com Website: https://www.absainvestments.co.za/ wealth-and-investment-management/ alternative-asset-management.html Address: Absa East, Bridgeway, Century City, 7441 PO Box 4110, Tygervalley, 7536 Compliance officer name: Samantha Padayachee +27 11 243 4545

Investment philosophy The Absa Alternative Asset Management (Pty) Ltd (AAM) team specialises in the design and management of index tracking, alpha generating (Smart Alpha), absolute return, overlay protection, alpha transport, hedge fund and other alternative investment strategies. Portfolios are designed to meet the unique goals of each investor with a high degree of certainty, in a cost-effective way, by using a range of traditional and non-traditional building blocks.

FAIS requirements Who is your FAIS complaints officer? Samantha Padayachee Please 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 Ltd Who are the directors of the company? Andre Visser, Glanville Retief, Clinton Clarke, Armien Tyer, Luyolo Poswa

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? 1999 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes, as the South African operations of Barclays Africa Group Limited with all the underlying legal entities, including Absa Alternative Asset Management (Pty) Ltd, specified. What is your B-BBEE status? Level 3 By whom have you been accredited? National Empowerment Rating Agency Date of accreditation: 2016-03-02

GIPS Are you GIPS compliant? No Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R52.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R40.2 billion Retail: R7.3 billion Life: R3.4 billion Other: R1.2 billion

Key investment personnel Size of Investment Team: 9 Andre Visser CEO B Com (Hons), CA (SA) 20 years’ industry experience 17 years with firm Chris Watts Portfolio Manager B Bus Sci (Hons), CFA, FRM 10 years’ industry experience 7 years with firm St John Bunkell Portfolio Manager M Sc (Chem Eng) 20 years’ industry experience 7 years with firm Aaron Masina Portfolio Manager B Com, CFA 13 years’ industry experience 5 years with firm Glanville Retief Head of Products B Com (Hons) Mathematics 18 years’ industry experience 12 years with firm Jean-Pierre Matthews Portfolio Manager, Chairperson of Investment Committee B Sc (Actuarial Science), CFP, CFA 20 years’ industry experience 5 years with firm Suvarn Naidoo Portfolio Manager B Sc (Actuarial Science), FRM 8 years’ industry experience 3 years with firm Pieter van der Merwe Portfolio Manager M Com (Inv Mgmt), FCIS 25 years’ industry experience 1 years with firm

153

MANAGER WATCH™ SURVEY

ABSA Asset Management (Pty) Ltd www.absainvestments.co.za

Company details

History

Key investment personnel

FAIS FSP registration number: 522 Switchboard: +27 11 243 4554 Fax number: +27 086 532 2607 General email: info@abam.co.za Website: www.absainvestments.co.za Address: Barclays Sandton South Campus, 15 Alice Lane, Sandton, 2146 Private Bag 291509, Mellville, 2109 Compliance officer name: Samantha Padayachee +27 11 243 4545

When was the company established? 1997-10-23 List of mergers that have taken place since being established: None

Size of Investment Team: 17

Investment philosophy 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 Padayachee Please 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? Carel Gronum, Nomkita Nqweni, Armien Tyer, Errol Shear, Ann Leepile Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No 154

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? NERA Date of accreditation: 2016-03-02

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? KPMG Date of verification: 2016-12-31 Expiry date of verification: Verified for the period 1 Jan 2004 to 31 December 2015

Investment mandates What are your total assets under management? R124.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R117.5 billion Retail: N/A Life: R6.7 billion Other: N/A

Errol Shear Chief Investment Strategist / Head of Absolute Franchise B.Bus Sc, CA (SA), CFA 31 years’ industry experience 11 years with firm Eben Mare Head of Fixed Income Franchise Ph.D, M.Sc, B.Sc. (Hons), B.Sc. 29 years’ industry experience 1 year with firm Stephen Arthur Head of Equity Franchise BSc (Eng), CFA 28 years’ industry experience 10 years with firm Kurt Benn Head of Balanced Franchise B.Bus.Sc, B.Com (Hons), CFA 19 years’ industry experience 1 month with firm Godfrey Mwanza Head of Pan African Franchise B Sc (Economics) (Hons), CFA 10.5 years’ industry experience 3 years with firm Fayyaz Mottiar Head of Property Franchise B.Econ Sc, CFA 14 years’ industry experience 6 years with firm

SECTION 6

Aeon Investment Management (Pty) Ltd www.aeonim.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 27126 Switchboard: +27 21 204 6063 General email: investment.team@aeonim.co.za Website: www.aeonim.co.za Address: 4th Floor, The Citadel, 15 Cowen and 1st, Street Claremont, 7708 PO Box 24020, Claremont, 7735 Compliance officer name: Debbi Wahl (Independent Compliance Services) +27 21 975 6597

Who is your FAIS complaints officer? Asief Mohamed Please provide the link to the complaints policy on your website: http://www.aeonim.co.za/ complaintspolicy.asp

Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment philosophy 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 systematically 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 utilises a systematic return modelling process and a disciplined investment methodology.

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 Mohamed, Nocamagu (Cami) Mbulawa Do 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.

Investment mandates What are your total assets under management? R3.22 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.14 billion Retail: R86 million Life: N/A Other: N/A

History

Key investment personnel

When was the company established? 2005-05-01 List of mergers that have taken place since being established: None

Size of Investment Team: 6

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? B-BBEE Level 1 By whom have you been accredited? Veridex B-BBEE Verification Agents Date of accreditation: 2016-03-09

Asief Mohamed Chief Investment Officer B Com CA (SA), CFA 28 years’ industry experience 11 years with firm Jay Vomacka Head of Research CFA, BSc (Eng)(Elec), MSc (Eng)(Ind), CFTe (IFTA, London) 10 years’ industry experience 4 years with firm Uwais Asmal Chief Operating Officer & Analyst B Acc, CA (SA) 5 years’ industry experience 8 months with firm

155

MANAGER WATCH™ SURVEY

AFC Investment Management (Pty) Ltd www.afcinvestment.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 706 Switchboard: +27 21 673 2620 Fax number: +27 21 683 2610 General email: dee@afcinvestment.co.za Website: www.afcinvestment.co.za Address: 3rd Floor Mill House, Boundary Terraces, Corner Campground and Mariendahl Lane Newlands, 7700 3rd Floor Mill House, Boundary Terraces, Corner Campground and Mariendahl Lane Newlands, 7700 Compliance officer name: Rodney Reid +27 21 785 3107

Who is your FAIS complaints officer? IA Mackenzie Please provide the link to the complaints policy on your website: www.afcinvestment.co.za

Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment philosophy Philosophy and style AFC 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.

156

Ownership What is the ownership structure of the company? 100% owned by IA Mackenzie Family Trust Who are the directors of the company? DS Campouroglou, IA Mackenzie 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? 1960s List 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? No What is your B-BBEE status? None By whom have you been accredited? N/A Date of accreditation: N/A

Investment mandates What are your total assets under management? R887 million Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R474 million Retail: R413 million Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 2 DS Campouroglou Chief Investment Officer BSC 37 years’ industry experience 20 years with firm IA Mackenzie Head of Equities BA Economics 32 years’ industry experience 26 years with firm

SECTION 6

Afena Capital Proprietary Ltd www.afenacapital.com

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 25033 Switchboard: +27 21 657 6240 Fax number: +21 21 671 4658 General email: info@afenacapital.com Website: www.afenacapital.com Address: 5th Floor MontClare Place, Corner Campground & Main Roads, Claremont, 7708 PO Box 23883, Claremont, 7735 Compliance officer name: Zain Parker (Internal Compliance Officer) +27 21 657 6277 Tim Howse (External Compliance Officer) +27 21 671 8162

Who is your FAIS complaints officer? Tim Howse Please provide the link to the complaints policy on your website: http://www.afenacapital.com/complaints. html

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? eComply Date of verification: 2016-06-14 Expiry date of verification: 2015-12-31

Investment philosophy Afena follows a valuation based investment approach. 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’s true economics, and not its short-term performance. This also means they tend to favour businesses they understand with good long-term economics. Afena is 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.

Ownership What is the ownership structure of the company? 100% owned by management and staff Who are the directors of the company? Zain Parker, Grant Cloete, Shoaib Vayej and Mila Mafanya Do 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 hold 100% of the equity shares of Afena Capital through directly held shares.

Investment mandates What are your total assets under management? R3.0 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.0 billion Retail: N/A Life: N/A Other: N/A

History

Key investment personnel

When was the company established? The company was established on the 1st of November 2005 List of mergers that have taken place since being established: There have been no mergers since the establishment of the company.

Size of Investment Team: 5

B-BBEE credentials

Shoaib Vayej Portfolio Manager BSc(ENG), CFA 13 years’ industry experience 5 years with firm

Are you B-BBEE accredited? Yes, Afena Capital is B-BBEEE accredited. What is your B-BBEE status? Afena Capital is a Level 2 contributor to Black Economic Empowerment By whom have you been accredited? AQRate Verification Services Date of accreditation: 2016-08-12

Mila Mafanya Head of Equities BBusSc, CFA 13 years’ industry experience 6 years with firm

Zahira Osman Portfolio Manager BBusSc, CFA 14 years’ industry experience 12 years with firm

157

MANAGER WATCH™ SURVEY

Allan Gray (Pty) Ltd www.allangray.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 27145 Switchboard: +27 21 415 2300 Fax number: +27 21 415 2400 General email: info@allangray.co.za Website: www.allangray.co.za Address: 1 Silo Square, V&A Waterfront, Cape Town, 8001 PO Box 51318, V&A Waterfront, Cape Town, 8002 Compliance officer name: Ian Barow +27 21 415 9364

What is the ownership structure of the company? Allan Gray is a privately owned company. Who are the directors of the company? Mahesh Cooper, Rob Dower, William Gray*, Andrew Lapping, Ian Liddle (Chairman)*, Teboho Mahuma*, Thando Mhlambiso, Khumo Morolo*, Nhlanhla Nene* (*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.

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst and Young Date of verification: 2016-10-06

Investment philosophy Allan Gray’s investment philosophy is valuation orientated which means that their 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. They 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 Bester Please provide the link to the complaints policy on your website: https://www.allangray.co.za/globalassets/ legal/complaints-process.pdf

158

History When was the company established? 1973 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Verification Services Date of accreditation: 2016-04-29

Expiry date of verification: The assurance report confirms compliance with the Global Investment Performance Standards (GIPS) for the period from 1 January 2015 to 31 December 2015. We are in the process of obtaining verification for 2016.

Investment mandates What are your total assets under management? R491.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R228 billion Retail: R254.4 billion Life: N/A Other: R9 billion

SECTION 6

Allan Gray (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 27 Andrew Lapping Deputy Chief Investment Officer, Portfolio Manager, Analyst BSc (Eng), B Com, CFA 15 years’ industry experience 15 years with firm Duncan Artus Portfolio Manager, Analyst BBusSc, PGDA, CFA, CMT 16 years’ industry experience 15 years with firm Simon Raubenheimer Portfolio Manager, Analyst B Com (Hons), CFA 14 years’ industry experience 14 years with firm

Ruan Stander Portfolio Manager, Analyst BSc (Hons), FIA, FRM (GARP) 9 years’ industry experience 9 years with firm Jacques Plaut Portfolio Manager, Analyst BSc (Hons) 9 years’ industry experience 9 years with firm Leonard Krüger Portfolio Manager, Analyst BSc (Hons), FFA, FASSA 9 years’ industry experience 9 years with firm Nick Ndiritu Portfolio Manager, Analyst BSc (Eng), MBA 7 years’ industry experience 7 years with firm

Mark Dunley-Owen Portfolio Manager, Analyst BBusSc, CFA 13 years’ industry experience 7 years with firm

159

MANAGER WATCH™ SURVEY

Alpha Wealth (Pty) Ltd www.alphawealth.co.za

Company details

FAIS requirements

Investment mandates

FAIS FSP registration number: 13808 Switchboard: +27 31 835 0400 Fax number: +27 31 566 1310 General email: info@alphawealth.co.za Website: www.alphawealth.co.za Address: Cape Town: 25 Protea Road, 2nd Floor, The Terraces, Claremont 7708 Johannesburg: Alpha House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston Durban: Lincoln on The Lake, 2 The High Street, Parkside, Umhlanga Ridge, 4319 Compliance officer name: Roelien De Lange, Financial Manager

Who is your FAIS complaints officer? Roelien De Lange, Financial Manager Please provide the link to the complaints policy on your website: N/A

What are your total assets under management? R10 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R9 billion Retail: R1 million Life: N/A Other: N/A

Investment philosophy AlphaWealth’s philosophy is to provide investors with an independent approach to managing traditional asset classes such as equity and fixed income. Their solutions are engineered through sophisticated fund management techniques and are actively managed by investment professionals with relevant experience and expertise. Resultant solutions focus on capital preservation and capital growth which is achieved through rigorous bottom-up analysis of the key drivers of volatility in portfolios, and the blending of skilled practitioners. Alpha Wealth’s investment strategies are highly specialised and require an understanding of both technical risk management and proactive fund management supported by a disciplined processes. A!phaWealth has developed a unique investment process and framework for analysing and monitoring fund managers. They recognise the importance of qualitative and quantitative factors which drive return, volatility and predictability. 160

Ownership What is the ownership structure of the company? Private company Who are the directors of the company? Kerry West Fynn, James Duncan Gilfillan 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? 14/09/2004 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? N/A By whom have you been accredited? N/A Date of accreditation: N/A

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Key investment personnel Size of Investment Team: 7 Jacques Du Plessis Chief Investment Officer CAIA 18 years’ industry experience 15 years with firm John Haslett Portfolio Manager CA(SA), FRM 8 years’ industry experience 6 years with firm Hazel Pillay Research Analyst B Com (Accounting) 8 years’ industry experience 8 years with firm Nick Pawley Research Analyst CFA, B Com Finance Honours 5.5 years’ industry experience 5.5 years with firm

SECTION 6

Aluwani Capital Partners (Pty) Ltd www.aluwanicapital.co.za

Company details FAIS FSP registration number: 46196 Switchboard: +27 21 204 3800 General email: aluwani@aluwanicapital.co.za Website: www.aluwanicapital.co.za Address: EPPF Office Park, 24 Georgian Crescent East, Bryanston East, Gauteng, 2152 Compliance officer name: Timothy Howse +27 21 671 8162

Investment philosophy Their philosophy is underpinned by the following: ■■ A belief in a valuation driven process in order to determine where value lies ■■ An investment approach that is supported by a robust portfolio construction process ■■ Focused risk management that ensures competitive, risk-adjusted returns consistently ■■ Team based approach that allows them to leverage off the combined knowledge of their strong in-house specialists.

FAIS requirements Who is your FAIS complaints officer? Timothy Howse Please provide the link to the complaints policy on your website: http://www.aluwanicapital.co.za/legal/

Ownership What is the ownership structure of the company? 40% management and staff; 40% MMI Holdings; 20% Main Street 1413 (Pty) Ltd (BEE consortium). Who are the directors of the company? Jabu Moleketi, Sibusiso Mabuza, Thabiso Foto, Gill Raine, Ben van der Ross, Mary Vilakazi, Thinus Alsworth-Elvey, Mlondolozi Mahlangeni, Warren Wheatley

Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 40% of the company is held by management and staff.

History When was the company established? The company became operational as of 1 December 2015. List of mergers that have taken place since being established: None (Aluwani was created out of a management buyout at Momentum Asset Management).

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 6 By whom have you been accredited? NERA Date of accreditation: 2016-04-21

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Aluwani Capital Partners are a new company with intentions of being compliant and verified in the near future. At an operational level, their calculation of performance returns and composite calculations satisfies the requirements of the GIPS standards. By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R42.9 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R42.4 billion Retail: R554 million Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 17 Patrick Mathidi Head of Equities, Multi Asset Class Strategies BCompt (Hons), MSc (Fin) 19 years’ industry experience 1 year with firm Conrad Wood Head of Fixed Income Strategies BCom (Econ), CFA 22 years’ industry experience 1 year with firm Mishnah Seth Head of Frontier Strategies CFA, B Acc (Hons) 14 years’ industry experience 1 year with firm Stephen Charangwa Africa Fixed Income Portfolio Manager MSc Investment Analysis, PgDiploma Business Project Management,BA(Hons) 5 years’ industry experience 1 year with firm Jason Hall Head: Credit BCom (Hons) 17 years’ industry experience 1 year with firm Mamokete Lijane Head of Macro Strategy B.Bus.Sc (Actuarial), CFA (SA) 16 years’ industry experience 11 month with firm 161

MANAGER WATCH™ SURVEY

Argon Asset Management (Pty) Ltd www.argonassetmanagement.co.za

Company details

Ownership

Investment mandates

FAIS FSP registration number: 835 Switchboard: +27 21 670 6570 Fax number: +27 21 671 8252 General email: jeremy@argonasset.co.za Website: www.argonassetmanagement.co.za Address: 1st Floor, Colinton House, The Oval, 1 Oakdale Road, Newlands, 7700 PO Box 23254, Claremont, 7735 Compliance officer name: Tim Howse, eComply +27 21 671 8162

What is the ownership structure of the company? Independent, in other words no group structure Who are the directors of the company? Mothobi Seseli, Luyanda Joxo and Sello Setai Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 100%

What are your total assets under management? R28.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R27.3 billion Retail: R843 million Life: N/A Other: N/A

Investment philosophy Argon Asset Management is a clientcentric 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. They follow a bottom-up, fundamental research, valuation based equity investment process. Multi asset class investments follow an active tactical asset allocation approach, with a strong capital protection underpin and volatility enhancing strategies that generate extra yield. They also follow a multi-strategy fixed income process, diversifying sources or risk and return with a mix of duration, credit and yield curve tactical trades.

FAIS requirements Who is your FAIS complaints officer? Tim Howse Please provide the link to the complaints policy on your website: http://www.argonassetmanagement. co.za/about-argon/regulatory-details/

162

History When was the company established? 2005-04-01 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? Empowerdex (Pty) Ltd Date of accreditation: 2016-07-07

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ms Lesley Harvey of eComply www.ecomply.co.za Date of verification: 2015-09-23 Expiry date of verification: 2014-12-31

Key investment personnel Size of Investment Team: 16 Dr Manas Bapela Chief Investment Officer M Sc (Mathematics) cum laude, PhD (Mathematics) Univ of PTA, Global Investment Risk Mgt (Saïd Bus School, Oxford Univ) UK 16 years’ industry experience 7 years with firm Kyle Hulett Deputy CIO & Head of Multi Asset Class B Bus Sc (Actuarial Science) UCT, Fellow of the Faculty of Actuaries FFA (UK), CFA 16 years’ industry experience 6 years with firm Krishna Sathee Acting Head of Fixed Income B Sc, B Sc (Hons) Statistics (UNISA) 20 years’ industry experience 7 years with firm Junaid Bray Head of Equities BBus Sc (Finance) UCT, CFA 14 years’ industry experience 3 years with firm

SECTION 6

Ashburton Fund Managers (Pty) Ltd www.ashburtoninvestments.co.za

Company details FAIS FSP registration number: 40169 Switchboard: +27 11 282 8800 Fax number: +27 11 282 1619 General email: query@ashburtoninvest.co.za. Website: www.ashburtoninvestments.co.za Address: 3rd Floor, 4 Merchant Place, 1 Fredman Drive, Sandton, 2196 PO Box 650149, Benmore, 2010 Compliance officer name: Segabe Ditodi +27 11 282 1664

Investment philosophy A core belief of Ashburton Investments is to provide investors with access to more sources of return in order to more efficiently achieve their investment objectives. As such, they have multiple investment capabilities within their business that span both traditional and alternative strategies. For one of their core investment capabilities, the Multi-asset strategy, Ashburton’s investment philosophy is encapsulated below: ■■ It is their belief that asset allocation delivers the bulk of a multi-asset portfolio return. They therefore follow a top-down approach as a first step in the investment process; ■■ They focus on determining the key investment drivers across asset classes (themes). Thus there is a theme driven bias to portfolio construction. A theme is an area of investment that will deliver superior or inferior market returns. The portfolio weightings are adjusted based upon the thematic overlay to the portfolio; ■■ Within the equity asset class they are style agnostic. It is their contention that value, growth and momentum styles of investment vary through the business cycle. Ashburton is biased towards thematic drivers, more so than specific investment styles;

■■ Within equity selection, they focus on growth at a reasonable value as they believe that the price paid and earnings growth over time translate into equity returns; ■■ Investment decisions are taken with a three- to five-year investment horizon. The philosophy is to identify the best businesses and management in particular sectors and hold these investments. Short-term share price movements can trigger buy or sell decisions; ■■ Ashburton is benchmark aware but not benchmark driven. In this manner multi-asset portfolios are managed to generate alpha; ■■ A caveat to the investment philosophy is that within equities they are high-conviction investors. This is achieved through investing in concentrated portfolios of between 18 and 30 shares; ■■ It is their thesis that primary returns are obtained through asset allocation, then sector selection and lastly stock selection.

FAIS requirements Who is your FAIS complaints officer? Segabe Ditodi Please provide the link to the complaints policy on your website: http://www.ashburtoninvestments. com/docs/default-source/documents/ legal/fais-complaints-resolution-policy. pdf?sfvrsn=2

Ownership What is the ownership structure of the company? Ashburton is 100% owned by the FirstRand Group Who are the directors of the company? Boshoff Grobler, Paolo Senatore, Richard Pampel, Caryn Nicolai Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Ashburton is 100% owned by the FirstRand Group. Staff ownership is at FirstRand Group level.

History When was the company established? In 2013, the FirstRand Group consolidated all the investment capabilities within the group into Ashburton Investments to provide investors with a comprehensive range of new generation investment offerings. While Ashburton Investments has been in existence in its current format since 2013 its history dates back to the genesis of Ashburton Jersey, which forms an intricate part of the offshore investment offering, in the early 1980’s. List of mergers that have taken place since being established: At the end of 2015 Ashburton Investments acquired Atlantic Asset Management.

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 15 February 2016

GIPS Are you GIPS compliant? No. Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

163

MANAGER WATCH™ SURVEY

Ashburton Fund Managers (Pty) Ltd Continued

Investment mandates What are your total assets under management? R106.0 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R36.9 billion Retail: R69.1 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 70 Paolo Senatore Chief Investment Officer MSc (Mechanical Engineering) 22 years’ industry experience 22 years with firm Mark Appleton SA Strategist BCom, CFA 35 years’ industry experience 7 years with firm Shalin Bhagwan Head of Fixed Income BSc Hons, FFA, FASSA 23 years’ industry experience 4 years with firm Franco Barnard Head of South African Fund Management B.Com 20 years’ industry experience 10 years with firm Rob Hamer Head of Alternative Assets Masters (Comm), CA (SA) and ACA (UK) 26 years’ industry experience 4 year with firm Vladimir Nedeljkovic Head of Fund Solutions PhD, MSc, MBA 19 years’ industry experience 2 year with firm

164

Nicholas Lee Head of Portfolio Management Services MSI 37 years’ industry experience 19 years with firm Jonathan Schiessl Chief Investment Officer (Int) B.Soc Sci (Economics) 21 years’ industry experience 17 years with firm Heather Jackson Head of Specialised Credit BA (Hons), CFA 25 years’ industry experience 1 year with firm Wayne McCurrie Senior Portfolio Manager B Compt (Hons), CA (SA) 30 years’ industry experience Joined October 2016 Marianna Georgakopoulou Head of Asset Allocation BSC (Hons) Psychology, BSC Molecular Biology 11 years’ industry experience 2 years with firm Tony Cadle Senior Portfolio Manager / Head of Resources -– Balanced PhD 20 years’ industry experience 17 years with firm Simon Fifield Head of Africa Real Estate BSc Survey, MSc Survey, CFA 15 years’ industry experience 15 years with firm Corneleo Keevy Head Credit Risk Management BAcc (Hons), CA (SA) 16 years’ industry experience 7 years with firm Arno Lawrenz Head Fixed Income Portfolio Management BSc (Hons), CFA 25 years’ industry experience 1 years with firm

SECTION 6

Blue Ink Investments (Pty) Ltd www.blueink.co.za

Company details

FAIS requirements

FAIS FSP registration number: 712 Switchboard: +27 21 950 2600 Fax number: +27 21 950 2126 General email: clientservices@blueink.co.za Website: www.blueink.co.za Address: 55 Willie van Schoor Avenue, Bellville, 7530 Private Bag X8, Tyger Valley, 7536 Compliance officer name: Francis Hitchinson +27 21 950 2980

Who is your FAIS complaints officer? Francis Hitchinson Please provide the link to the complaints policy on your website: Complaints made directly to CEO

Investment philosophy Blue Ink’s investment philosophy is to protect capital when markets are penalised and grow it when markets are rewarded, with little excuse for the directional trends in the market. We believe the following: ■■ We are ultimately undergoing a talent search. There exists a niche group of investment talent that have individually proven to be successful in wealth creation through non-habitual investment approaches. Our core skill is to identify this talent and extract it for the benefit of a client’s investment purpose. We look for managers who are flexible enough to look for new opportunities within their investment style and be prepared to aggressively adjust their gross and net exposure when required. ■■ To calibrate for risk is to calibrate for opportunities. It is our belief that when combining different strategies, there are risks one cannot control and those that we can successfully manage. The latter is at the core of Blue Ink’s investment philosophy. ■■ The degrees of freedom are essential. The ability to deliver investment returns agnostic to markets conditions, requires a significant increase in the investment toolkit.

Ownership What is the ownership structure of the company? 100% owned by Sanlam. Who are the directors of the company? St. John Bungey, Selwyn Pillay, Nersan Naidoo, Bonolo Zwane, Robert Roux Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: N/A

By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R3.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.0 billion Retail: R1.0 million Life: N/A Other: N/A

Key investment personnel

History

Size of Investment Team: 5

When was the company established? 1994 List 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 25%. 2016 – Sanlam acquires 25% Ubuntu-Botho Stake.

Selwyn Pillay Chief Investment Officer BSc. (Actuarial Science), Post Grad Diploma in Management Studies (Actuarial Science) 13 years’ industry experience 6 years with firm

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Date of accreditation: 2016-07-01

GIPS Are you GIPS compliant? No Are you GIPS verified? No

Peter Urbani Research and Process Engineer 20 years’ industry experience 14 year with firm Lilian Lerm Manager Research B.Com Honours (Financial Analysis) 7 years’ industry experience 7 year with firm Suvira Bodha Investment Analyst B.BusSC (Analytics) 1 years’ industry experience 1 year with firm Tintswalo Mukansi Investment Analyst B.BusSC (Economics) 1 years’ industry experience 1 year with firm

165

MANAGER WATCH™ SURVEY

Cadiz Asset Management (Pty) Ltd www.cadiz.co.za

Company details FAIS FSP registration number: 636 Switchboard: +27 21 670 4600 Fax number: +27 21 670 4651 General email: info@cadiz.co.za Website: www.cadiz.co.za Address: 4th Floor The Terraces, 25 Protea Road, Claremont, 7700 PO Box 44547, Claremont, 7735 Compliance officer name: Charl Schmahl +27 21 670 4692

Investment philosophy 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. 166

In this way, they aim to generate superior returns for their clients with the least amount of risk.

GIPS

Who is your FAIS complaints officer? Charl Schmahl Please provide the link to the complaints policy on your website: http://www/cadiz.com/wp.content/ uploads/20160705-FAIS-Client. ComplaProcedure-manc.pdf

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? E-Comply Consultants (Pty) Ltd Date of verification: For the period Jan 2014 - Dec 2015 Expiry date of verification: Verification will proceed in the following year.

Ownership

Investment mandates

What is the ownership structure of the company? 100% subsidiary of Stellar Capital Partners Who are the directors of the company? Shawn Stockigt, Matt Brenzel and Fraser Shaw Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 10% is held by staff through a share equity scheme.

What are your total assets under management? R8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.9 billion Retail: R4.1 billion Life: N/A Other: N/A

FAIS requirements

History When was the company established? 1996 List 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? Yes What is your B-BBEE status? Level 5 By whom have you been accredited? Empowerdex Date of accreditation: 2017-01-07

Key investment personnel Size of Investment Team: 12 Matt Brenzel Chief Investment Officer M Com 38 years’ industry experience 17 years with firm Alastair Sellick Head of Fixed Income B Bus Sci (Actuarial) 15 years’ industry experience 2 year with firm Brian Munro Head of Multi-Assets B Sc (Stats) Hons 18 years’ industry experience 18 years with firm Graeme Ronne Head of Equities B Com (Hons), CFA 9 years’ industry experience 5 years with firm

SECTION 6

Cannon Asset Managers (Pty) Ltd www.cannonassets.co.za

Company details FAIS FSP registration number: 736 Switchboard: +27 11 722 7580 Fax number: +27 11 722 7578 General email: info@cannonassets.co.za Website: www.cannonassets.co.za Address: 6A Sandown Valley Crescent, Sandown Sandton, 2196 PO Box 651969, Benmore, 2010 Compliance officer name: Elsa de Kock +27 11 722 7659

Investment philosophy 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 priceearnings 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 characterised 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? Elsa de Kock Please 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 Managers Who are the directors of the company? Adrian Saville, Geoff Blount, Andrew Moller*, BM Griesel*, Piet Swart* (*non-executive) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 35% held by management.

History When was the company established? 2000 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 4 By whom have you been accredited? AQ Rate Date of accreditation: 2016-03-07

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R1.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R750 million Retail: R135 million Life: N/A Other: R450 million

Key investment personnel Size of Investment Team: 5 Adrian Saville Chief Strategist & Portfolio Manager B.A. (Hons) (cum laude), M.Com (cum laude), Ph.D. 18 years’ industry experience 18 years with firm Andrew Dittberner Chief Investment Officer B.Econ (Hons), M.Com, PhD 11 years’ industry experience 11 years with firm 167

MANAGER WATCH™ SURVEY

Catalyst Fund Managers SA (Pty) Ltd www.catalyst.co.za

Company details FAIS FSP registration number: 36009 Switchboard: +27 21 657 5500 Fax number: +27 21 683 7579 General email: operations@catalyst.co.za Website: www.catalyst.co.za Address: 4th Floor Protea Place, Claremont, 7708 PO Box 44845, Claremont, 7735 Compliance officer name: Tim Howse (eComply) +27 21 671 8162

Investment philosophy Property – Income – Security Their 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,

168

designed specifically for listed property assessment, differentiates them from their competitors and allows them to add real value to their clients’ portfolios.

FAIS requirements Who is your FAIS complaints officer? Michael Arbuthnot Please provide the link to the complaints policy on your website: http://www.catalyst.co.za/wp-content/ uploads/2016/02/Catalyst_Conflicts_of_ Interest_policy.pdf

Ownership What is the ownership structure of the company? Catalyst Fund Managers 74.9%, Directors 15%, Staff Trust 10.1% Who are the directors of the company? P Duncan, R D Du Plooy, T S Sishuba, M Arbuthnot, Z Sulaiman, K Mahura Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, Directors – 15%, Management – 10% Staff Trust – 10.1%

History When was the company established? 2006 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? CM Rating Solutions Date of accreditation: 2016-11-04

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R11.2 billion (CFM Group: R18.6 billion) Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R10.1 billion Retail: R1.1 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 4 Zayd Sulaiman Portfolio manager CA, SA 17 years’ industry experience 10 years with firm

SECTION 6

Colourfield Liability Solutions (Pty) Ltd www.colourfield.co.za

Company details

Ownership

Investment mandates

FAIS FSP registration number: 35113 Switchboard: 086 100 7656 Fax number: 086 579 8592 General email: cls@colourfield.co.za Website: www.colourfield.co.za Address: Unit 16B, 3 Melrose Boulevard, Melrose Arch, 2192 Compliance officer name: Elzabe Botha, Compli-Serve 086 127 3783 Elzabe@compliserve.co.za

What is the ownership structure of the company? Privately-owned company Who are the directors of the company? Nick Sennett, Costa Economou, Shaun Levitan Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 72.5% owned by staff and management

What are your total assets under management? R48 billion Please detail the mandates you currently manage and the size of each of these mandates: All segregated, 3rd party, LDI mandates

Investment philosophy

History When was the company established? 2006 List of mergers that have taken place since being established: None

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. We utilise a scientific approach to portfolio construction that will track a liability-based benchmark irrespective of market circumstances.

B-BBEE credentials

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.

GIPS

FAIS requirements Who is your FAIS complaints officer? Elzabe Botha Please provide the link to the complaints policy on your website: N/A

Are you B-BBEE accredited? In progress What is your B-BBEE status? N/A By whom have you been accredited? N/A Date of accreditation: N/A

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Date of verification: 2016-05-13 Expiry date of verification: N/A

Key investment personnel Size of Investment Team: 6 Dr Nick Sennett Chief Investment Officer Actuary, PhD degree in Finance 26 years’ industry experience 9.5 years with firm Nishaan Desai Head of Research Actuary, CFA Charter Holder, CIPM Charter Holder 12 years’ industry experience 6 years with firm Troy du Plessis Trader Actuary, CFA Charter Holder, CAIA Charter Holder 11 years’ industry experience 8 years with firm Shaun Levitan Chief Operating Officer and Specialist Portfoilio Structurer Actuary, MSc (Actuarial Science), CFA Charter Holder 16 years’ industry experience 8 years with firm

169

MANAGER WATCHâ&#x201E;˘ SURVEY

Coronation Asset Management (Pty) Ltd www.coronation.com

Company details

Ownership

GIPS

FAIS FSP registration number: 548 Switchboard: +27 21 680 2000 Fax number: +27 21 680 2100 General email: clientservice@coronation.co.za Website: www.coronation.com Address: 7th Floor MontClare Place, Cnr Campground and Main Roads, Claremont, Cape Town, South Africa, PO Box 44684, Claremont, Cape Town, 7735 Compliance officer name: Ms Jamie Rowland +27 21 680 2809

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 and John Snalam Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Staff in aggregate hold approximately 24% of the shares of Coronation Fund Managers, being the holding company of Coronation Asset Management- staff therefore do, indirectly, have an ownership interest in Coronation Asset Management.

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst and Young Date of verification: 2015-01-01 Expiry date of verification: 2015-12-31

Investment philosophy All Coronation products are managed according to a single investment philosophy. It is based on two key tenets: using a long-term horizon to establish a companyâ&#x20AC;&#x2122;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 Rowland and Mr Stephan Kemp Please 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

170

History When was the company established? Founded in 1993 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? EMPOWERDEX Date of accreditation: 2016-12-20

Investment mandates What are your total assets under management? R598.6 billion (as at September 2016) Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R373.3 billion Retail: R225.3 billion Life: N/A Other: N/A

SECTION 6

Coronation Asset Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 67 Karl Leinberger Chief Investment Officer BBusSc, CA (SA), CFA 16 years’ industry experience 16 years with firm Sarah-Jane Alexander Portfolio Manager BBusSc, CFA 13 years’ industry experience 8 years with firm Duane Cable Head of SA Equities BCom (Hons), CA (SA), CFA 10 years’ industry experience 10 years with firm Quinton Ivan Head of SA Equity Research BBusSc, Bcom (Hons), CA (SA), CFA 11 years’ industry experience 11 years with firm Neil Young Portfolio Manager BBusSc, CA (SA), CFA 18 years’ industry experience 18 years with firm Neville Chester Senior Portfolio Manager BCom, CA (SA), CFA 20 years’ industry experience 16 years with firm Pallavi Ambekar Portfolio Manager BBusSc, CA (SA), CFA 14 years’ industry experience 14 years with firm Charles de Kock Head of Absolute Return BCom (Hons), MCom 31 years’ industry experience 12 years with firm

Nishan Maharaj Head of Fixed Income BSc (Hons), MBA 14 years’ industry experience 4 years with firm Mark le Roux Portfolio Manager BCom 25 years’ industry experience 11 years with firm Gavin Joubert Head of Global Emerging Markets BBusSc, CA (SA), CFA 17 years’ industry experience 17 years with firm Suhail Suleman Portfolio Manager BBusSc, CFA 14 years’ industry experience 9 years with firm Peter Leger Head of Global Frontiers BScEng, BCom (Hons), CFA 19 years’ industry experience 11 years with firm Anthony Gibson Portfolio Manager BCom 36 years’ industry experience 23 years with firm Louis Stassen Head of Global Developed Markets BSc, BCom (Hons), CFA 27 years’ industry experience 23 years with firm Neil Padoa Head of Global Developed Markets Research BEconSc, FFA 17 years’ industry experience 4 years with firm

171

MANAGER WATCH™ SURVEY

Electus Fund Managers Proprietary Limited www.electus.co.za

Company details

FAIS requirements

B-BBEE credentials

FAIS FSP registration number: 46077 Switchboard: +27 21 680 7500 Fax number: +27 21 680 7501 General email: info@electus.co.za Website: www.electus.co.za Address: Ground Floor, Great Westerford, 240 Main Road, Newlands, 7700 Compliance officer name: Gerry Grispos, Compli-Serve SA 0861 273 783

Who is your FAIS complaints officer? Tali Anderssen Please provide the link to the complaints policy on your website: http://www.electus.co.za/media/76123/ client_complaint_process_ draft_02_11_2015.pdf

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 4 By whom have you been accredited? DTI Date of accreditation: 2016-11-05

Investment philosophy We invest in a consistently disciplined and focused manner, based on an unwavering investment philosophy of striving to buy into high quality businesses at prices that are low compared to their long term investment valuations. We construct concentrated, but welldiversified portfolios, normally holding ±35 shares. We manage portfolios with high conviction and choose shares in an unconstrained manner, giving clients the benefit of our proven stock-picking ability. Benchmarks are less relevant in the portfolio construction process as share weightings are determined based on our understanding of volatility, share liquidity and market leadership. We aim to identify companies that have sustainable competitive advantages within their industries, which should enable them to consistently earn returns on capital above their cost of capital. We also strive to identify mispriced companies through our disciplined, focused and opportunistic proprietary research and analysis. Our limited asset base is an advantage that enables us to invest across the broader SA stock market and we aim to deliver long term relative outperformance supported by superior risk/return characteristics. 172

Ownership What is the ownership structure of the company? All staff have ownership. Who are the directors of the company? Neil Brown and Richard Hasson Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 100% owned by staff and management.

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

History

Investment mandates

When was the company established? January 2007 List of mergers that have taken place since being established: Richard Hasson and Neil Brown have known each other since 1997 and started working together and jointly managing funds in 2005, as employees of Old Mutual Investment Group (OMIG). In January 2007, Richard and Neil formally started Electus, as a two person fund management boutique within OMIG. Electus was easily the most successful of Electus’ equity boutiques, winning >15 funds since its inception. Although Electus had been very successful, both in terms of Client fund performance, asset growth and profitability, in January 2015, OMIG decided to consolidate its offering and close the Electus boutique. Richard and Neil decided to continue the Electus business and seamlessly transition its clients into a 100% independent Electus business.

What are your total assets under management? R1.35 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: N/A Retail: R1.25 billion Life: N/A Other: R118 million

Key investment personnel Size of Investment Team: 4 Neil Brown Co-Chief Investment Officer / Portfolio Manager N Dip Bus Admin, MBA (Finance) 24 years’ industry experience 10 years with firm Richard Hasson Co-Chief Investment Officer / Portfolio Manager B Com, CA(SA) CFA 19 years’ industry experience 10 years with firm

SECTION 6

Element Investment Managers www.elementim.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 663 Switchboard: +27 21 426 1313 Fax number: +27 21 426 0999 General email: info@elementim.co.za Website: www.elementim.co.za Address: 405 Manhattan Place, 130 Bree Street, Cape Town, 8001 Compliance officer name: Riana Grobler (CompliServe) +27 21 683 6824

What is the ownership structure of the company? Element Investment Team – 30% First South Group – 25% VC Investors and non-Investment Element Staff – 25% Private Equity Financial Services Investor – 20% Total BEE Shareholding > 50% Who are the directors of the company? Dr Anwah Nagia, Terence Craig, Jayendra Naidoo*, Mandisa Zungu*, Tom Barlow* (*Non-Executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, > 35%

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ernst & Young Date of verification: September 2016 for year ending 31 December 2015. Expiry date of verification: 2017-04-04

Investment philosophy 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 realised. 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? Dr Anwah Nagia Please provide the link to the complaints policy on your website: www.elementim.co.za/institutions/riskmanagement-and-compliance

History When was the company established? 1998 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? BEESCORE Date of accreditation: 2016-04-15

Investment mandates What are your total assets under management? R1.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R285 million Retail: R806 million Life: N/A Other: R9 million

Key investment personnel Size of Investment Team: 6 Terence Craig Chief Investment Officer B Bus Sc (Hons), CA (SA), CFA 23 years’ industry experience 16 years with firm Jeléze Hattingh Portfolio Manager M.Sc. Business Mathematics and Information Science (Cum Laude), CFA, CMT 15 years’ industry experience 7 years with firm Shamier Khan Shari’ah Portfolio Manager B Com, CA (SA), CFA 15 years’ industry experience 4 years with firm Andrew Bishop Shari’ah Portfolio Manager B Com (Hons), CA (SA), CFA 10 years’ industry experience 10 years with firm 173

MANAGER WATCH™ SURVEY

Fairtree Capital (Pty) Ltd www.fairtree.com

Company details FAIS FSP registration number: 25917 Switchboard: +27 21 943 3760 Fax number: +27 21 914 3103 General email: info@fairtree.com Website: www.fairtree.com Address: Willowbridge Place, Cnr Carl Cronje & Old Oak Road, Bellville, 7530 PO Box 4124, Tygervalley, 7536 Compliance officer name: Graeme Rate at Sanne Group

Investment philosophy Fairtree Capital is a leading South African investment management firm with extensive experience in alternative and traditional investments. Our team of more than 40 investment professionals manage in excess of 15 independent strategies which make up our combined AUM of ~R30bn (~ US$2.2 billion). Firmly rooted in Cape Town, South Africa, we offer retail and institutional funds across multiple asset classes and geographies, with a focus on South Africa. Our investment process is flexible and holistic, incorporating meticulous top-down and bottom-up analysis to ensure that our portfolios are best positioned to deliver competitive returns to our investors. We are one of the largest managers of alternative strategies in South Africa, managing roughly 9% of the total South African hedge fund market. Our hedge fund strategies focus on a wide range of asset classes, including equity, fixed income, commodities and multi strategy portfolios, while our private equity funds focus on hospitality and empowerment. Our Fairtree Market Neutral hedge fund is the longest running hedge fund of its kind in the South African market. Our various hedge fund strategies have received 11 awards to date for risk-adjusted performance. 174

Furthermore, we manage traditional portfolios in equities, fixed income, smart beta and multi-asset space. Our portfolios have been recognised to be world class, receiving appointments from several large global allocators, including the Norwegian Sovereign Wealth Fund, resulting in more than 50% of our AUM being represented by foreign investors. Locally, our client base continues to grow and is supported with a “buy” recommendation from the largest institutional and retail asset consultants and multi-managers in the South African market. Three values define Fairtree Capital, namely Integrity, Excellence and Growth. These values support every decision we make, and ensure that we continue to meet the high expectations our Clients place on us.

B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? By whom have you been accredited? Date of accreditation: N/A

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

FAIS requirements Who is your FAIS complaints officer? Graeme Rate at Sanne Group Please 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 staff Who are the directors of the company? Andre Malan, Kobus Nel, Bradley Anthony Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 100%

History When was the company established? 2006 List of mergers that have taken place since being established: N/A

Investment mandates What are your total assets under management? R31 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R25.8 billion Retail: R5.2 billion Life: N/A Other: N/A

SECTION 6

Fairtree Capital (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 41 Andre Malan Director B Com, MBA 23 years’ industry experience 12 years with firm Kobus Nel Director CA (SA), CFA 17 years’ industry experience 11 years with firm Bradley Anthony Director BA (Economic History), CAIA 24 years’ industry experience 6 years with firm Hannes van den Berg Portfolio Manager CA (SA), CFA, M Acc 9 years’ industry experience 9 years with firm Johannes Corbett Portfolio Manager B Sc Agric (Honours), Food Manufacturing Degree (NQF6), MBA 9 years’ industry experience 8 years with firm Ian Millard Portfolio Manager B Com 27 years’ industry experience 7 years with firm Stephen Brown Portfolio Manager B Com, MBA, CFA 20 years’ industry experience 6 years with firm

Jacobus Lacock Macro Strategist B Com (Financial Economics), CFA 13 years’ industry experience 6 years with firm Danie Pretorius Portfolio Manager B Com Cum Laude (Actuarial Science), MBA 9 years’ industry experience 6 years with firm Cor Booysen Portfolio Manager B Ing 12 years’ industry experience 5 years with firm Louis Antelme Portfolio Manager CFA 23 years’ industry experience 5 years with firm Paul Crawford Portfolio Manager BSc Eng (Elec), MBA, CFA 20 years’ industry experience 5 years with firm Rademeyer Vermaak Portfolio Manager M Eng (Electronic), CFA 12 years’ industry experience 4 years with firm Jean Pierre Verster Portfolio Manager Hons.B.Compt (Accounting), CFA, CA(SA), CAIA 10 years’ industry experience Less than 1 year with firm

175

MANAGER WATCH™ SURVEY

First Avenue Investment Management (Pty) Ltd www.firstavenue.co.za

Company details FAIS FSP registration number: 42693 Switchboard: +27 11 772 2480 General email: admin@firstavenue.co.za Website: www.firstavenue.co.za Address: 21 Fricker Road, Ground Floor, Cnr Chaplin and Fricker Road Illovo, 2196 PostNet Suite 92, Private Bag X11, Birnam Park, 2015 Compliance officer name: Deon Harmse +27 21 554 5745

Investment philosophy First Avenue focuses purely in long only equities as a specialist manager. Within equities, their research shows that investing in high quality companies generates superior outcomes compared to any other strategy. This is because high quality companies are able to produce persistently high and stable profits independent of market conditions by controlling ‘fundamental risk’. As the returns earned by equity holders are ultimately driven by corporate profits, this results in superior stock returns with lower ‘price risk’ or volatility. Modern corporate finance theory would expect investors to receive higher rates of return on investment for bearing greater risk. With this view of the world, high quality companies appear to be an anomaly delivering higher returns with lower risk. High quality companies possess sustainable competitive advantages that allow them to dominate the profit pool of an industry and earn returns above their cost of capital for extended periods. These advantages or economic moats enable a company to remain resilient throughout the entire economic cycle by leveraging unique attributes such as superior pricing power or cost control. 176

Their research shows that this universe of companies has a high propensity to outperform the market and also offers greater downside protection during periods of distress. By restricting their universe to high quality companies only, their portfolio is inherently of lower fundamental risk. Their view is that risk (not valuation) is a continuum from low to extreme risk. As one moves up the continuum, the investment philosophy also shifts from a probabilistic exercise to pure speculation highly reliant on timing. Instead of trying to predict the turn of the economic cycle or movements in commodity prices and exchange rates, they study the sustainability of a company’s economic moat to arrive at an intrinsic value. In their world, the greatest risk is a loss of quality and earnings power through economic changes and deterioration of management as put forward by Benjamin Graham. They therefore aim for consistently high returns through the entire economic cycle.

FAIS requirements Who is your FAIS complaints officer? Jorge Haynes Please provide the link to the complaints policy on your website: http://firstavenue.co.za/disclaimer/

Ownership What is the ownership structure of the company? 15% Sanlam Investment Holdings, 85% Staff Who are the directors of the company? Hlelo Giyose, Jorge Haynes, Nersan Naidoo, Nadim Mohamed Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 85% staff ownership

History When was the company established? Sep-10 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Qualifying Small Enterprise (QSE Level 2) – Sworn affidavit as per BEE Act Date of accreditation: 2015/05/20

GIPS Are you GIPS compliant? Yes Are you GIPS verified? PriceWaterhouseCoopers By whom have you been verified? N/A Date of verification: July 2016 Expiry date of verification: N/A

SECTION 6

First Avenue Investment Management (Pty) Ltd Continued

Investment mandates What are your total assets under management? R12.29 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11 billion Retail: R1.28 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 5 Hlelo Giyose Chief Investment Officer / Portfolio Manager BSc. Business Administration, MSc. Investment Management 21 years’ industry experience 6 years with firm

Dhersan Chetty Investment Analyst Bachelor of Business Science (Finance Honours) 11 years’ industry experience 1 year, 9 months with firm Anele Ngidi Analyst Bachelor of Commerce – Accounting, Tax, Auditing, CAIA Level 1, Registered Persons’ Exams, SAIFM (2006) 6 years’ industry experience 1 year, 5 months with firm Yanni Yang Investment Analyst Bachelor of Business Science (Honours) – Quantitative Finance, MPhil in Mathematical Finance (with distinction), FRM, CFA 5 years’ industry experience 1 year, 3 months with firm

Nadiim Mohammed Investment Analyst MSc Engineering (cum laude), MBA (cum laude) 10 years’ industry experience 5 years with firm

177

MANAGER WATCH™ SURVEY

Foord Asset Management (Pty) Ltd www.foord.co.za

Company details FAIS FSP registration number: 578 Switchboard: +27 21 532 6988 Fax number: +27 21 532 6999 General email: info@foord.co.za Website: www.foord.co.za Address: 8 Forest Mews, Forest Drive, Pinelands, 7405 PO Box 135, Howard Place, 7450 Compliance officer name: Diane Behr +27 21 532 6916

Investment philosophy How Foord thinks about investments determines how they act. The tenets of their investment philosophy are the lights that guide what they do: Get the big calls right Meaningful 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 price The 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.

178

Take a long-term view and be patient Speculation 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 portfolios A 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 risk Diversification 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 Behr Please 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 company Who are the directors of the company? PE Cluer, B Africa, WL Fraser, P Desai Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 90%

History When was the company established? 1981 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 6 By whom have you been accredited? AQ Rate Date of accreditation: 2016-09-01

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

SECTION 6

Foord Asset Management (Pty) Ltd Continued

Investment mandates What are your total assets under management? R170 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R106 billion Retail: R64 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 19 Dave Foord Chief Investment Officer B Com, CA(SA) 37 years’ industry experience 34 years with firm William Fraser Strategy, Portfolio Manager, Director B Com, Actuarial, Cert (Financial Engineering) 18 years’ industry experience 11 years with firm

Daryll Owen Deputy CIO B Com, CAIB(SA), AEP 31 years’ industry experience 3 years with firm Brian Davey Portfolio Manager, Director B Com, CA(SA) 25 years’ industry experience 21 years with firm Nick Balkin Portfolio Manager and Head of Equity Research B Com (Hons), CFA 14 years’ industry experience 11 years with firm Michael Townshend Senior Analyst B Sc (Hons), BA, MBA 19 years’ industry experience 11 years with firm

Dane Schrauwen Portfolio Manager and Analyst BA LLB 22 years’ industry experience 7 years with firm

179

MANAGER WATCH™ SURVEY

Futuregrowth Asset Management (Pty) Ltd www.futuregrowth.co.za

Company details FAIS FSP registration number: 520 Switchboard: +27 21 659 5300 Fax number: +27 21 659 5400 General email: info@futuregrowth.co.za Website: www.futuregrowth.co.za Address: 3rd Floor, Great Westerford, Main Road, Rondebosch, 7700 Private Bag X6, Rondebosch, 7725 Compliance officer name: Ryan Kieser +27 21 659 5447

Investment philosophy 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.

180

Along with the intense scrutiny they pay to the interest rate process, they 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 practised 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 Kieser Please provide the link to the complaints policy on your website: N/A

Ownership What is the ownership structure of the company? As at June 2016 the dispersion of Futuregrowth shares was as follows: Old Mutual Investment Group (SA) (Pty) Ltd: 78.28%, OMIGSA Black Management Trust: 4.55%, OMIGSA Management Trust: 11.97% and Imfundo SP Holdings (Pty) Ltd: 5.30%. Who are the directors of the company? Henk Beets, Andrew Canter, Paul Rackstraw, Mobasheer Patel, Hywel George, Dineo Lerutla Interest in ownership? Please provide the percentage held by staff and management: Yes, 16.427%

History When was the company established? 2000 List of mergers that have taken place since being established: 2008 – OMIGSA became the majority shareholder

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2015-04-30

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? E-Comply Date of verification: 2012-01-01 Expiry date of verification: 2013-01-01. Latest verification expected soon.

SECTION 6

Futuregrowth Asset Management (Pty) Ltd Continued

Investment mandates What are your total assets under management? R158.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R34.7 billion Retail: R31.2 billion Life: R10.5 billion Other: R82.1 billion

Key investment personnel Size of Investment Team: 33 Andrew Canter Chief Investment Officer, Head of Fixed Income BSc, CFA 27 years’ industry experience 16 years with Futuregrowth

Michael van Rensburg Head: Dealing, Portfolio Manager B Com 28 years’ industry experience 18 years with OMIGSA/Futuregrowth Jason Lightfoot Portfolio Manager / Credit Analyst BA, B Com (Hons) 20 years’ industry experience 16 years with Futuregrowth Mei-Chi Liou Portfolio Manager M Bus Sc 15 years’ industry experience 14 years with Futuregrowth James Howard Portfolio Manager B Com 29 years’ industry experience 16 years with Futuregrowth

Wikus Furstenberg Portfolio Manager MCom 27 years’ industry experience 18 years with OMIGSA/Futuregrowth Daphne Botha Portfolio Manager B Com (Hons), Diploma in Financial Markets 21 years’ industry experience 16 years with Futuregrowth

181

MANAGER WATCH™ SURVEY

Investec Asset Management (Pty) Ltd www.investecassetmanagement.com

Company details

Ownership

B-BBEE credentials

FAIS FSP registration number: 587 Switchboard: +27 21 416 2000 General email: natalie.phillips@investecmail.com Website: www.investecassetmanagement.com Address: 36 Hans Strijdom Avenue, Foreshore, Cape Town, 8001 PO Box 1655, Cape Town, 8000 Compliance officer name: Darryl Adams +27 21 416 1684

What is the ownership structure of the company? IAM (Pty) Ltd is a wholly owned subsidiary of IAM Holdings (Pty) Ltd. IAM Holdings (Pty) Ltd is owned 84% by Investec Ltd, with the other 16% being held by senior employees of Investec Asset Management. Who are the directors of the company? Board of Directors: Investec Asset Management (Pty) Ltd Hendrik du Toit – Executive – CEO, Thabo Khojane, Khaya Gobodo, Nazmeera Moola – Executive Director, Noluthando Gosa – Non-Executive Director Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, key employees own 16% of the company; includes senior investment professionals.

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Premier Verification (Pty) Ltd Date of accreditation: 2016-10-18

Investment philosophy Investec Asset Management (IAM) does not have an over-arching house style instead choosing to allow the heads of our specialist investment teams the freedom to operate according to their investment beliefs, with complete discretion over their own teams. They have multi-specialist investment teams which manage our various investment strategies across four primary asset classes; Equity, Fixed Income, Alternatives and Multi-Asset. Each of these teams have their own specific investment philosophy which gives them a unified view on investing. They apply this philosophy to the strategies they manage through rigorous disciplined investment processes. Their multi-specialist teams are SA Equity and Multi-Asset, Value, Quality, Emerging Market Fixed Income, 4FactorTM Equities and Multi-Asset.

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 Ltd is July 1986.

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? KPMG Date of verification: 2016-08-31 Expiry date of verification: Investec Asset Management is verified on an annual basis.

Investment mandates What are your total assets under management?* R474.89 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R357.53 billion Retail: R117.36 billion Life: N/A Other: N/A

FAIS requirements Who is your FAIS complaints officer? Nicholas Crosskill Please provide the link to the complaints policy on your website: http://goo.gl/9zWKRJ

* Data as at 31 December 2016. The AuM numbers reflected as per survey requirements: Local Investors with local mandates; Local investors with foreign mandates; and Foreign investors with South African domiciled investments.

182

SECTION 6

Investec Asset Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: Cape Town (64), Botswana (2), Johannesburg (2), Singapore (3), Hong Kong (3), London (115) and New York (3) John McNab Co-Chief Investment Officer BEng Industrial (Cum Laude), MEng Industrial (Cum Laude), CFA 21 years’ industry experience 21 years with firm Mimi Ferrini Co-Chief Investment Officer B Com 28 years’ industry experience 24 years with firm James Hand Co-Chief Investment Officer, Co-Head of 4Factor Equity BA Economics, ASIP 19 years’ industry experience 16 years with firm Werner Gey van Pittius Co-Head of Emerging Market Fixed Income B Com (Hons.) Financial Economics, B Com Insurance Science, MSc Applied Statistics, CFA 13 years’ industry experience 13 years with firm Peter Eerdmans Co-Head of Emerging Market Fixed Income MSc Econometrics 21 years’ industry experience 11 years with firm Andre Roux Co-Head of Emerging Market Fixed Income MPhil Economics, MSc Mathematics, BSc (Hons.) Mathematics 17 years’ industry experience 17 years with firm Mark Breedon Co-Head of 4Factor Equity BA Economics 39 years’ industry experience 13 years with firm

Simon Howie Co-Head of SA and Africa Fixed Income BArch, MBA, CFA 18 years’ industry experience 11 years with firm Peter Kent Co-Head of SA and Africa Fixed Income B Com (Hons.) Accounting, MSc Finance, CA(SA), CFA 16 years’ industry experience 4 years with firm Nazmeera Moola Co-Head of SA and Africa Fixed Income BBusSc (Hons.) Economics, Finance & Management Studies, CFA 16 years’ industry experience 3 years with firm Khaya Gobodo Strategy Leader: Africa B Com, MSc Investment Management, CFA 16 years’ industry experience 8 years with firm Chris Freund Co-Head of SA Equity and Multi-Asset B Com, BCompt (Hons.) Accounting, CA (SA), CFA 26 years’ industry experience 11 years with firm Rhynhardt Roodt Co-Head of SA Equity and Multi-Asset B Com Financial Management Sciences, B Com (Hons.) (Cum Laude) Investment Management, MCom Financial (Cum Laude) Management, CFA 13 years’ industry experience 11 years with firm

Simon Brazier Co-Head of Quality BA Honours degree in Economics with French, IIMR Certificate 18 years’ industry experience 2 year with firm Sumesh Chetty Portfolio Manager BBusSc (Hons.) Actuarial Science, PGDip Actuarial Science, FIA 14 years’ industry experience 9 years with firm Rob Forsyth Head of Quality Research BBusSc (Hons.) Finance 21 years’ industry experience 21 years with firm John Stopford Co-Head of Multi-Asset Income BA Chemistry, CFA 26 years’ industry experience 23 years with firm Phillip Saunders Co-Head of Multi-Asset Growth BA History 35 years’ industry experience 35 years with firm Michael Spinks Co-Head of Multi-Asset Growth BA (Hons.) Mathematics & Economics, CFA 20 years’ industry experience 4 years with firm

John Biccard Portfolio Manager – SA Value Equity B Com (Hons.) Economics, CFA 26 years’ industry experience 16 years with firm Clyde Rossouw Co-Head of Quality BSc Statistics & Actuarial Science, CAT, CFI, CFA 22 years’ industry experience 17 years with firm

183

MANAGER WATCH™ SURVEY

Investment Solutions Ltd www.investmentsolutions.co.za

Company details

History

Key investment personnel

FAIS FSP registration number: 711 Switchboard: +27 11 505 6000 Fax number: +27 11 263 1001 General email: info@ishltd.co.za Website: www.investmentsolutions.co.za Address: 115 West Street, Sandown, Sandton, 2196 PO Box, 786055, Sandton, 2146 Compliance officer name: Samantha Williams +27 11 505 6115

When was the company established? 1997 List of mergers that have taken place since being established: Superflex 1999

Size of Investment Team: 25

Investment philosophy Provider of asset management services, multi-manager, investment administration and investment advices.

FAIS requirements Who is your FAIS complaints officer? Samantha Williams Please 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 Holdings Who are the directors of the company? A Dafoor, DV Viljoen, DTV Msibi, M Collier, D Konar, S Reddy, RM Kgosana, N Nyawo, M Ramplin JE Salvado –Company Secretary. Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No

184

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2016-05-20

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R282.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R226.8 billion Retail: R22.4 billion Life: R33.4 billion Other: N/A

Mark Lindhiem Chief Investment Officer BCom (Hons), CFA 19 years’ industry experience 11 years with firm Nina Saad Deputy Chief Investment Officer BSc, CFA 20 years’ industry experience 8 years with firm Lesiba Mothata Chief Economist B Com, B Com(Hons), MCom 14 years’ industry experience 4 years with firm Gyongyi King Deputy Chief Investment Officer BSc, CFA 19 years’ industry experience 8 years with firm

SECTION 6

JM Busha Asset Managers (Pty) Ltd www.jmbusha.com

Company details

Ownership

Investment mandates

FAIS FSP registration number: 730 Switchboard: +27 11 325 2027 Fax number: +27 11 325 2047 General email: invest@jmbusha.com Website: www.jmbusha.com Address: 28 Bompas Road, Dunkeld West, Johannesburg, 2196 PO Box 31250, Braamfontein, 2017 Compliance officer name: Joseph Makamba Busha +27 11 325 2027

What is the ownership structure of the company? 100% Employee owned Who are the directors of the company? L. Vilakazi-Tselane (Ms) (Chairperson)*, J.M. Busha (Managing), T.C. Musiyambiri* *Non-executive Directors Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, 100% employee owned

What are your total assets under management? R4.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R4.1 billion Retail: R17.5 million Life: R20 million Other: R29 million

Investment philosophy ■■ 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.

History When was the company established? 2000 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level one By whom have you been accredited? Abacus BEE Verification (Pty) Ltd Date of accreditation: 2016-09-01

FAIS requirements

GIPS

Who is your FAIS complaints officer? Joseph Makamba Busha Please provide the link to the complaints policy on your website: www.jmbusha.com

Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Key investment personnel Size of Investment Team: 11 Joseph Makamba Busha Chief Investment Officer BSc., BSc.(Hons.), MSc.(Derivatives) M.Phil (Finance). 24 years’ industry experience 16 years with firm Limakatso Lehobo Head of Research BA, B Com, MCom 9 years’ industry experience 8 years with firm

185

MANAGER WATCH™ SURVEY

Kagiso Asset Management (Pty) Ltd www.kagisoam.com

Company details FAIS FSP registration number: 784 Switchboard: +27 21 673 6300 Fax number: 086 675 8501 General email: info@kagisoam.com Website: www.kagisoam.com Address: 5th Floor MontClare Place, Cnr Main & Campground Roads, Claremont, 7708 PO Box 1016, Cape Town, 8000 Compliance officer name: Tracy-Lee Scott +27 21 673 6303

Investment philosophy Kagiso Asset Management 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 Asset Management avoids such overvalued investments for as long as the market price is above the intrinsic value. 186

Kagiso Asset Management 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 their positions, hedge risk and seek out potential asymmetries.

FAIS requirements Who is your FAIS complaints officer? Tracy-Lee Scott Please 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 staff Who are the directors of the company? M Danisa, F Gillion, RG Greaver, Y Mahlangu, GJ Wood, J Chikaonda Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes – 49.9%

History When was the company established? 2001 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2016-12-15

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PriceWaterhouseCooper Date of verification: 2016-11-22 Expiry date of verification: 2015-12-31

Investment mandates What are your total assets under management? R39.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R37.5 billion Retail: R2.1 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 21 Gavin Wood Chief Investment Officer BBusSc, FFA, CFA 21 years’ industry experience 15 years with firm Abdul Davids Head of Research B Com, CFA 18 years’ industry experience 9 years with firm

SECTION 6

Maestro Investment Management (Pty) Ltd www.maestroinvestment.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 739 Switchboard: +27 21 674 9220 Fax number: +27 21 674 3209 General email: info@maestroinvestment.co.za Website: www.maestroinvestment.co.za Address: Fourth Floor, Letterstedt House, Newlands on Main, Main Road, Newlands, 7700 PO Box 1289, Cape Town, 8000 Compliance officer name: Debra Carse, Independent Compliance Services +27 21 975 6597

Who is your FAIS complaints officer? Debra Carse, Independent Compliance Services Please provide the link to the complaints policy on your website: N/A

Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment philosophy Our investment philosophy focuses on opportunities for long-term value creation through the generation of consistent performance. We are active fund managers. We believe that, over time, the value of a company is driven by the underlying fundamentals of the sector that it operates in, as well as the economic value created by management. Our investment research process seeks to identify companies with a clear strategy of increasing shareholder value, accompanied by a consistent and excellent management track record. Our investment decisions are based on fundamental research which incorporates a top-down approach, supported by a bottom-up detailed analysis. The analysis focusses on finding companies which we benchmark against global peers in terms of best management practices and standards. Our process incorporates risk management into every level of investment decision-making. Our approach, aimed at minimizing the potential for capital loss, is focussed primarily on quality companies. Environmental, Social and Governance (ESG) screening is part of our investment decision-making process and we employ quantitative and qualitative approaches in our analysis.

Ownership What is the ownership structure of the company? Staff and management 46%, Magnus Opus Trust 43%, Mboweni Brothers Capital 4%, R Miyambo 3%, Mineworkers Charitable Trust Fund 2%, Music works 1% and V Mupunga 1%. Who are the directors of the company? Andre Joubert, Ronny Miyambo, Alto Mboweni, Sue Joubert, Anthony Coombe and Glynnis Jeffries Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes, management and staff hold 46% of the firm.

History When was the company established? 2000 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 BEE By whom have you been accredited? Moore Stephens Date of accreditation: 2016-04-19

Investment mandates What are your total assets under management? R700 million Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R94 million Retail: R605.4 million Life: N/A Other: R0.6 million

Key investment personnel Size of Investment Team: 4 Andre Joubert Co-Chief Investment Officer B Com (Hons) 31 years’ industry experience 17 years with firm David Pfaff Head of Private Clients, Portfolio Manager B Com (Hons) 11 years’ industry experience 10 years with firm Luke Sparks Co-Chief Investment Officer, Portfolio Manager B Bus Sc, CFA 7 years’ industry experience 7 years with firm

187

MANAGER WATCHâ&#x201E;˘ SURVEY

Mazi Capital (Pty) Ltd www.mazi.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 46405 Switchboard: +27 10 001 8300 Fax number: +27 10 001 8600 General email: info@mazi.co.za Website: www.mazi.co.za Address: 4th Floor North Wing, 90 Rivonia Road, Sandton, 2196 PO Box 784583, Sandton, 2146 Compliance officer name: Anel Naude +27 0861 273 783

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

Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

History

What are your total assets under management? R39 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R37.7 billion Retail: R1.3 billion Life: N/A Other: N/A

Investment philosophy Mazi employs a disciplined long-term fundamental valuation philosophy. Their tenets for sound investments comprise the following: Sustainability of the business model; quality of management team and board of directors; balance sheet strength and clarity of cash generation; defensiveness â&#x20AC;&#x201C; offering downside protection; price relative to its fundamental value.

FAIS requirements Who is your FAIS complaints officer? Bonolo Boikanyo Please provide the link to the complaints policy on your website: N/A

188

When was the company established? 2006-07-03 List 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? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 2016-09-30

Investment mandates

SECTION 6

Mazi Capital (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 16 Malungelo Zilimbola Chief Investment Officer BSc (Hons), B Com (Hons) 17 years’ industry experience 10 years with firm Asanda Notshe Head of Research BBusSc, FAFFA, FIA 13 years’ industry experience 6 years with firm Seth Boakye-Dankwa Portfolio Manager / Analyst BSc (Hons), MA 28 years’ industry experience 3 years with firm Francois Olivier Portfolio Manager / Analyst CA (SA), CFA 17 years’ industry experience 3 years with firm

Keonethebe Bosigo Portfolio Manager / Analyst B Com (Hons), CAIA, CFA 11 years’ industry experience 3 years with firm Kopano Makhu Portfolio Manager BSc (Hons) 13 years’ industry experience 1.7 months with firm Chris Reddy Portfolio Manager/ Analyst BBusSc, CFA 10 years’ industry experience 1 year, 1 month with firm Khanyisa Ngesi Portfolio Manager/ Analyst BSc Hons, MSc (Stats) 10 years’ industry experience 1 year, 5 months with firm

Malusi Cele Portfolio Manager / Analyst B Soc Sci, BSc 18 years’ industry experience 4 years with firm Kgapu Mphahlele Portfolio Manager / Analyst B Com (Hons) Acc 16 years’ industry experience 3 years with firm

189

MANAGER WATCH™ SURVEY

Meago (Pty) Ltd www.meago.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 24919 Switchboard: +27 11 646 2944 Fax number: 086 644 8909 General email: thabor@meago.co.za Website: www.meago.co.za Address: 73 Oxford Road, Saxonwold, 2196 PO Box 1180, Edenvale, 1610 Compliance officer name: Sharen Gerald +27 11 969 1649 / 083 662 2161

Who is your FAIS complaints officer? Bongwa Mthembu Please provide the link to the complaints policy on your website: N/A

Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment philosophy 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 longterm sector and fundamental trends. Invest in companies with assets in strong and growing nodes Invest in companies with good corporate governance and are conscious of social and environmental issues

190

Ownership What is the ownership structure of the company? 90% by directors and 10% by employees. Who are the directors of the company? HT Ramushu, J Padayachi, S Hoosen and A Madhi Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 90% by directors and 10% by employees.

History When was the company established? 30/09/2005 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level One Contibutor and 135% BEE Procurement Recognition Level By whom have you been accredited? We have an affidavit (according to the new code). Date of accreditation: 2014-04-22

Investment mandates What are your total assets under management? R12.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11.9 billion Retail: N/A Life: R348.7 million Other: N/A

Key investment personnel Size of Investment Team: 6 HT Ramushu Portfolio Manager B Com, MSc (Real Estate) 18 years’ industry experience 11 years with firm J Padayatchi Portfolio Manager BSc(Quantity Surveying), B Com(Hons), CA(SA), HDip Tax 18 years’ industry experience 11 years with firm Anas Madhi Portfolio Manager MBBCH, MBA (Cum Laude) 13 years’ industry experience 10 years with firm

SECTION 6

Melville Douglas Investment Management (Pty) Ltd www.melvilledouglas.co.za

Company details FAIS FSP registration number: 595 Switchboard: +27 11 721 7964 Fax number: 086 202 7235 General email: Admin.MelvilleDouglas@standardbank.co.za

Website: www.melvilledouglas.co.za Address: 8th Floor, West Wing, Standard Bank, 30 Baker Street, Rosebank, 2196 PO Box 411184, Craighall, 2024 Compliance officer name: Camille Mahomed +27 11 721 5250

Investment philosophy Their investment philosophy is rooted in their mission to preserve the capital entrusted to them and deliver superior risk adjusted investment returns. Only fundamental research aimed at establishing the true intrinsic value of the investment opportunities can provide true insight. They acknowledge the importance of balance: ■■ Balance between investment returns and the risk associated with delivering those returns. They are long-term investors who demand a high margin of safety at the point of investing and maintain a low level of turnover within portfolios. ■■ Balance between capital growth and cash generation. ■■ Balance between compound and cyclical price performers. Their philosophy results in the core of the portfolio being invested in businesses with more predictable, less cyclical earnings profiles. Cyclical businesses are not ignored; however, the risk is managed via the weighting.

Melville Douglas’ philosophy is based on the firm belief that long-term investment returns depend on two key investment characteristics: ■■ the stable compounding ability of the underlying cash stream; and ■■ the price the investor pays. Investments with no cash streams (return on capital) are usually purely speculative, and are near-impossible to value appropriately. As the key factor affecting the longterm returns of an investment is the price paid, they focus on identifying the intrinsic value of an investment opportunity and then ensuring they invest only when there is an appropriate margin of safety. This margin of safety allows them to absorb short-term market shifts, strengthens their ability to take a longer term investment view and allows portfolios to benefit from the power of compounding returns. They believe in buying superior businesses with strong cash flows, known integrity and competence of management, at compelling valuations. Their philosophy has been adopted and carried forward since the inception of the company. It has been a core principle of the firm and its investment professionals. The investment process has been refined and improved over the years, but the core investment approach and philosophy has been unwavering. Their approach aims at achieving alpha by avoiding investments with high downside risk (or high volatility) and doubtful compounding ability; and by patiently allowing the compounding effect to work.

FAIS requirements Who is your FAIS complaints officer? Carol Bromberg Please provide the link to the complaints policy on your website: N/A

Ownership What is the ownership structure of the company? 100% owned by Standard Bank Group Limited Who are the directors of the company? GS Baillie, CA Broadley, BJ Drotschie, MJ Laws, JB O’Regan 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? 1983 List of mergers that have taken place since being established: Purchased by Standard Bank Group Limited in 2001

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 19 February 2015

191

MANAGER WATCH™ SURVEY

Melville Douglas Investment Management (Pty) Ltd Continued

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R28.54 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.99 billion Retail: R23.70 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 17 Jerome O’Regan Chief Investment Officer BA (Hons), MBA, CFA 33 years’ industry experience 12 years with firm Bernard Drotschie Deputy CIO B Com (Hons) – Econ, CFA, CFP 17 years’ industry experience 14 years with firm

192

Graham Baillie Executive Chairman/Portfolio Manager B Com, MBA 26 years’ industry experience 13 years with firm Michael Laws Managing Director / Fund Manager B Com, CFA, CFP 16 years’ industry experience 19 years with firm Rob Stewart Portfolio Manager BSc (Hons), PDM, CFA, CFP 14 years’ industry experience 11 years with firm Susan Gawith Portfolio Manager BSc, MBA 18 years’ industry experience 11 years with firm Mervin Naidoo Head of Equity Research B Com (Hons),CA (SA) 14 years’ industry experience 4 years with firm Greg Wood Fund Manager B Bus Sci (Hons) – Economics, CFA 12 years’ industry experience 12 years with firm

SECTION 6

Mergence Investment Managers (Pty) Ltd www.mergence.co.za

Company details FAIS FSP registration number: 16134 Switchboard: +27 21 433 2960 Fax number: +27 21 433 0675 General email: info@mergence.co.za Website: www.mergence.co.za Address: 6th Flr, The Equinox, cnr Milton & Main Road, Sea Point, 8005 PO Box 8275, Roggebaai, 8012 Compliance officer name: Gerry Grispos (outsourced to CompliServe) 086 127 3783

Investment philosophy Mergence Investment Managers is an independent asset management company founded in 2004. Mergence has a pragmatic approach / philosophy to investing, which means that they attempt to understand how the world really works rather than how they think it should work, especially concerning markets and investing. They manage listed investments, listed equity and multi-asset class portfolios, as well as unlisted equity and debt mandates with a particular bias toward renewable energy and infrastructure.

FAIS requirements Who is your FAIS complaints officer? Mr Andy Howard (COO) 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 subsidiary of Mergence Africa Holdings.

Who are the directors of the company? Masimo Magerman, Fabian de Beer, Relebohlie Mapetla (Non-Executive Director) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 29% is owned by staff directly.

Key investment personnel

History

Bradley Preston CIO: Listed Investments BSc Hons, MSc (Financial Mathematics) 11 years’ industry experience 11 years with firm

When was the company established? August 2004 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Aqua BEE Date of accreditation: 2016-12-20

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PwC Date of verification: 2016-11-24 Expiry date of verification: 2017-11-23

Investment mandates What are your total assets under management? R22.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R21.7 billion Retail: R299 million Life: R292 million Other: N/A

Size of Investment Team: 19 Fabian de Beer Director: Investments B Com, H.Dip.Ed 30 years’ industry experience 10 years with firm

Peter Takaendesa Portfolio Manager M Com (Economics), M Com (Finance & Economics) 10 years’ industry experience 3 years with firm Patric Ho Head: Absolute Return Funds B Com (Hons), CA (SA) 31 years’ industry experience 4 years with firm Dirk Steyn Portfolio Manager BSc, B Eng and MSc (Financial Mathematics) 12 years’ industry experience 10 years with firm Mark van Wyk Head: Unlisted Investments B Com (Hons), CA (SA) 17 years’ industry experience 6 years with firm Kasief Isaacs Portfolio Manager B Com (Hons), CA (SA) 23 years’ industry experience 2 year with firm

193

MANAGER WATCH™ SURVEY

Momentum Investments www.momentuminv.co.za

Company details

FAIS requirements

FAIS FSP registration number: 19840 Switchboard: 086 153 8732 Fax number: 086 573 7384 General email: InvestmentsComms@momentum.co.za Website: www.momentuminv.co.za Address: 268 West Avenue, Centurion, 0.0157 PO Box 7400, Centurion, 0.0046 Compliance officer name: Bernard Pieterse

Who is your FAIS complaints officer? Shital Jeeva Please 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

Investment philosophy Momentum Investments follows an Outcomes-based investment philosophy They have adapted their unique value proposition to create investment portfolios that centre around their 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 mandates to match and deliver on the objectives that have been set. Momentum executes 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. 194

Ownership What is the ownership structure of the company? MMI Holdings Ltd Who are the directors of the company? Ben van der Ross (Chair), Frans Truter, Johan van Reenen, Neil Krige, Syd Muller, Nicholaas Kruger, Mary Vilakazi, Etienne de Waal, Herman Schoeman, Khanyi Nzukuma, Thinus Alsworth-Elvey 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? 2004-01-01 List of mergers that have taken place since being established: Momentum Investments includes all the investments-related businesses of MMI Holdings Limited and offers a wide spectrum of investment services and solutions to individual and institutional investors. Momentum Investments includes the businesses previously known as Momentum OutcomeBased Solutions, Momentum Asset Management, Momentum Alternative Investments, Momentum Global Investment Management and the Eris Property Group. The investment capabilities have been re-organised and rebranded as Portfolio Solutions, Research & Insights, Alternatives Growth through Rates

(fixed interest capabilities), Growth through Capital (listed property), Systematic Strategies & structuring (indexation capabilities) and Global Investment Management.

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 Contributor By whom have you been accredited? National Empowerment Rating Agency Date of accreditation: 2016-05-19

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R412.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: N/A Retail: N/A Life: N/A Other: N/A

SECTION 6

Momentum Investments Continued

Key investment personnel Size of Investment Team: 82 Sonja Saunderson Chief Investment Officer BSc, BCom (Hons), MCom (Cum Laude) 16 years’ industry experience 16 years with firm Michael Adsetts Investment Strategist BSc Hons, MBA, CFA 12 years’ industry experience 8 years with firm Eugene Botha Head: Portfolio Solutions BSc (Hons), MSc 10 years’ industry experience 10 years with firm Nessi Chetty Head: Growth through Capital BComs (Hons) Cum Laude, CFA 14 years’ industry experience 13 years with firm

Motlatsi Mutlanyane Head: Alternatives BSc (Hons), MBA, FIA, FASSA 20 years’ industry experience 8 years with firm Wayne Dennehy Head: Systematic Strategies & Structuring BCom, BSc (Hons), Fellow of the Institute of Actuaries, FRM 23 years’ industry experience 11 years with firm Herman van Papendorp Head: Research & Insights B Com (Actuarial Science), B Com (Hons) (Economics), M Com (Econometrics) (Cum Laude) 24 years’ industry experience 3 years with firm Michael Allen Momentum Global Investment Management – Chief Investment Officer B BusSc in Actuarial Science 18 years’ industry experience 18 years with firm

Louis Scheepers Head: Growth through Rates B. Acc (Hons), B.Compt (Hons) CA(SA), CFA 16 years’ industry experience 15 years with firm

195

MANAGER WATCH™ SURVEY

Nedgroup Investments (Pty) Ltd www.nedgroupinvestments.co.za

Company details

Ownership

Investment mandates

FAIS FSP registration number: N/A Switchboard: 0860 123 263 Fax number: 0860 119 733 General email: institutional@nedgroupinvestments.co.za Website: www.nedgroupinvestments.co.za Address: 2nd Floor, Nedbank Clocktower, Clocktower Precinct, V&A Waterfront, Cape Town, 8001 PO Box 1510, Cape Town, 8000 Compliance officer name: Liezel Momberg +27 21 416 6204

What is the ownership structure of the company? Wholly owned subsidiary on Nedbank Group Ltd Who are the directors of the company? NA Andrew, CE Sevenaoks, I Ruggiero Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: No

What are your total assets under management? R213.8 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R106.3 billion Retail: R107.5 billion Life: N/A Other: N/A

Investment philosophy 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/A Please provide the link to the complaints policy on your website: http://www.nedgroupnvestments.co.za/ Files/Fetch/906

196

History When was the company established? 1997 List 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 accreditation What is your B-BBEE status? Level 2 By whom have you been accredited? Sizwe Ntsaluba Gobodo Date of accreditation: 2015-02-20

GIPS Are you GIPS compliant? No Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Key investment personnel Size of Investment Team: 26 Nic Andrew Executive Head, Asset Management B.Comm., CA(SA), PG Dip Tax Law, CFA, AMP(Insead) 21 years’ industry experience 18 years with firm Trevor Garvin Head of Investments & Multi-management B.Com (Hons) Economics, M.Com (Finance), MBA, Dip FMI (Cum Laude), SAFEX, ACIBM, CAIA 20 years’ industry experience 14 years with firm

SECTION 6

Novare Investments (Pty) Ltd www.novare.com

Company details * FAIS FSP registration number: 757 Switchboard: +27 21 914 3499 Fax number: +27 21 914 7733 General email: yonela@novare.com Website: www.novare.com Address: 5th Floor, The Cliffs Office Block 1, Niagara Way, Tygerfalls, Carl Cronje Drive, Bellville, South Africa 7530 PO Box 4742, Tyger Valley, South Africa 7536 Compliance officer name: Amanda Erasmus +27 11 447 9605

owns 100% of: Novare Actuaries & Consultants, Novare CIS (Manco), Novare Wealth NH owns: ■■ 94.7% of Novare Equity Partners ■■ 90% of Novare Capital (administrators for NI) ■■ 51% of Novare Actuaries and Consultants Botswana ■■ 38.8% of Matrix Fund Managers. Who are the directors of the company? Mr MN Thobejane, Derrick Roper, Andromeda Jooste Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Novare Holdings is owned by Workers Health Henn Trust and Roper Trust. Workers Health is a 100% black owned investment holding business with broad based beneficiaries.

Investment philosophy *

History *

Novare’s goal is to be recognised by their clients as the multi-manager fund provider of choice. They follow a focused, specialist approach to investment management and have developed an innovative research framework incorporating traditional and alternative asset classes into their unique product offerings. Novare’s approach and philosophy combined, provide clients with superior multi-manager products that are based on risk cognisant investment performance, exceptional service delivery and ethically sound and sustainable investment solutions.

When was the company established? 08/08/2000 List of mergers that have taken place since being established: No mergers

FAIS requirements * Who is your FAIS complaints officer? Amanda Erasmus Please provide the link to the complaints policy on your website: Available on request

Ownership * What is the ownership structure of the company? Novare Investments is 100% owned by Novare Holdings (NH). NH also

B-BBEE credentials * Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Rademeyer Wesson Date of accreditation: 2016-01-14

GIPS * Are you GIPS compliant? No (All returns are verified by an external source) Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates * What are your total assets under management? R15.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R9.2 billion Retail: R3.8 billion Life: R2.3 billion Other: N/A

Key investment personnel * Size of Investment Team: 7 Eugene Visagie Head of Hedge Fund Investments M.Comm. (Financial Risk Management) 8 years’ industry experience 8 years with firm Francois van der Merwe Head of Macro Research BComm (Hons) (Quantitative Investment Management) |CFA 14 years’ industry experience 14 years with firm Francois Botha Head of Multi-Management M.Comm. (Financial Risk Management) 6 years’ industry experience 6 years with firm Busi Ngqondoyi Portfolio Manager B.Comm. Accounting, FAPM 9 years’ industry experience 7 years with firm Neil Verster Portfolio Manager BSc (Hons) (Finance) | FASSA 5 years’ industry experience 1 year with firm

* Data as at 2015.

197

MANAGER WATCH™ SURVEY

Oasis Asset Management Ltd www.oasiscrescent.com

Company details

FAIS requirements

FAIS FSP registration number: 603 Switchboard: +27 21 413 7860 Fax number: +27 21 413 7900 General email: Clients@za.oasiscrescent.com Website: www.oasiscrescent.com Address: Oasis House, 96 Upper Roodebloem Road, University Estate, Cape Town, 7925 Oasis Asset Management Ltd., PO Box 1217, Cape Town, South Africa, 8000 Compliance officer name: Nazeem Ebrahim +27 21 413 7860

Who is your FAIS complaints officer? Nazeem Ebrahim Please provide the link to the complaints policy on your website: Complaints policies are available from the compliance department on request.

Investment philosophy 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 utilisation of proven stock selection skills that leverage off a meticulous research process to provide superior returns at lower than market risk.

Ownership What is the ownership structure of the company? The company is 100% owned by Oasis Group Holdings (Pty) Ltd Who are the directors of the company? Mohamed Shaheen 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? 1997-01 List 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? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? SAB & T Date of accreditation: 2016-09-02

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes

198

By whom have you been verified? SAB & T Date of verification: 2016-01-01 – 2016-12-31 Expiry date of verification: 2017-12-31

Investment mandates What are your total assets under management? R15.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: Not disclosed Retail: Not disclosed Life: Not disclosed Other: Not disclosed

Key investment personnel Size of Investment Team: 23 Adam Ebrahim Chief Investment Officer CA(SA), CFA 33 years’ industry experience 19 years with firm Mohamed Shaheen Ebrahim Strategist AltX Dip WBS 43 years’ industry experience 19 years with firm Nazeem Ebrahim Strategist B. Soc.Sci & B. Proc 35 years’ industry experience 19 years with firm Micheal Swingler Ebrahim Senior Analyst CA(SA), CFA 22 years’ industry experience 19 years with firm Hassan Motala Senior Analyst CA (SA), CFA 18 years’ industry experience 15 years with the firm

SECTION 6

Oasis Crescent Capital (Pty) Ltd www.oasiscrescent.com

Company details

FAIS requirements

FAIS FSP registration number: 796 Switchboard: +27 21 413 7860 Fax number: +27 21 413 7900 General email: Clients@za.oasiscrescent.com Website: www.oasiscrescent.com Address: Oasis House, 96 Upper Roodebloem Road, University Estate, Cape Town, 7925 Oasis Crescent Capital (Pty) Ltd., PO Box 1217, Cape Town, South Africa, 8000 Compliance officer name: Nazeem Ebrahim +27 21 413 7860

Who is your FAIS complaints officer? Nazeem Ebrahim Please provide the link to the complaints policy on your website: Complaints policies are available from the compliance department on request.

Investment philosophy 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 utilisation of proven stock selection skills that leverage off a meticulous research process to provide superior returns at lower than market risk.

Ownership What is the ownership structure of the company? The company is 100% owned by Oasis Group Holdings (Pty) Ltd Who are the directors of the company? Mohamed Shaheen 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? 2002-03 List 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? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? SAB & T Date of accreditation: 2016-09-02

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes

By whom have you been verified? SAB & T Date of verification: 2016-01-01 – 2016-12-31 Expiry date of verification: 2017-12-31

Investment mandates What are your total assets under management? R23.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: Not disclosed Retail: Not disclosed Life: Not disclosed Other: Not disclosed

199

MANAGER WATCH™ SURVEY

Old Mutual Customised Solutions www.oldmutualinvest.com

Company details

Ownership

GIPS

FAIS FSP registration number: 721 Switchboard: +27 21 509 5022 Fax number: +27 21 509 5025 General email: listening@oldmutualinvest.com Website: www.oldmutualinvest.com Address: West Campus Entrance 1, Mutual Park, Jan Smuts Drive, Pinelands Cape Town, 7405 PO Box 878, Cape Town 8000 Compliance officer name: Shaheed Mohamed +27 21 504 7296

What is the ownership structure of the company? Old Mutual Customised Solutions is 100% owned by Old Mutual Investment Group Holdings Who are the directors of the company? The directors of Old mutual Customised Solutions are (Pty) Ltd are: CM Chambers, M Patel, H George, J Gilchrist, G Watson Do 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 hold 5.3% with the remaining 74.7% ultimately being owned by Old Mutual Plc.

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PriceWaterhouseCoopers Date of verification: 2014-12-01 Expiry date of verification: N/A

Investment philosophy Old Mutual Customised Solutions focuses on partnering with clients and leveraging off their extensive skills and experience to create value-adding solutions that meet clients’ needs. Their goal is to provide their clients with superior investment returns over the long run, regardless of the Mandate. They believe appropriate portfolio construction is the most critical part of long-term wealth creation. They also pay careful attention to the analysis and management of risk across all our portfolios. Old Mutual Customised Solutions manage various building blocks – from active equity to indexation and risk managed solutions. This puts them in a unique position. They believe that implementing both active and index investment strategies within an investor’s portfolio can provide significant value to the investor.

FAIS requirements Who is your FAIS complaints officer? Shaheed Mohamed Please provide the link to the complaints policy on your website: http://ww2.oldmutual.co.za/docs/defaultsource/old-mutual-south-africa/omig/ omig-about-us/responsible-investments/ omigsacomplaintspolicy.pdf 200

History When was the company established? 2001 List of mergers that have taken place since being established: ■■ In 2001 Old Mutual Global Index Trackers (OMGXT) sold a 20% ownership stake to Old Mutual Investment Group. 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%. ■■ Customised Solutions was formed in 2016 and consists of the boutiques previously known as Old Mutual Global Index Trackers, Absolute Return Investments and Quantitative Investments.

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2016-05-16

Investment mandates What are your total assets under management? R106.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R36.7 billion Retail: R35.3 billion Life: R34.2 billion Other: N/A

Key investment personnel Size of Investment Team: 24 Grant Watson Joint Boutique Head M.Com, MBA, SAIS, CMMD 23 years’ industry experience 13 years with firm John Gilchrist Joint Boutique Head CA (SA), MBA (Insead – France) 19 years’ industry experience 12 years with firm Kingsley Williams Chief Investment Officer: Indexation MBA, BSC (Honours) 17 years’ industry experience 9 years with firm

SECTION 6

Old Mutual Investment Group (Pty) Ltd www.oldmutualinvest.com

Company details

FAIS requirements

B-BBEE credentials

FAIS FSP registration number: 604, 520, 721, 592 Switchboard: +27 21 509 5022 Fax number: +27 21 509 5025 General email: listening@oldmutualinvest.com Website: www.oldmutualinvest.com Address: West Campus Entrance 1, Mutual Park, Jan Smuts Drive, Pinelands Cape Town, 7405 PO Box 878, Cape Town 8000 Compliance officer name: Shaheed Mohamed +27 21 504 7296

Who is your FAIS complaints officer? Shaheed Mohamed Please provide the link to the complaints policy on your website: http://ww2.oldmutual.co.za/docs/defaultsource/old-mutual-south-africa/omig/ omig-about-us/responsible-investments/ omigsacomplaintspolicy.pdf

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Date of accreditation: 2016-05-16

Ownership

GIPS

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: Dr Deenadayalen Konar, Ralph Mupita, Mobasheer Patel, Peter de Beyer, Zanele Matala, Dave Macready Do 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% specially reserved by black staff. The Imfundo Trust hold 5.3% with the remaining 74.7% ultimately being owned by Old Mutual Plc.

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PriceWaterhouseCoopers Date of verification: 2014-12-31 Expiry date of verification: N/A

Investment philosophy Our investment capabilities are managed by a range of independent investment boutiques. This gives their clients a single point of access to world-class, specialist expertise in a comprehensive range of listed and unlisted investment capabilities. Our investment professionals are invested experts because they have meaningful equity ownership stakes in their investment businesses and are invested alongside their clients in the funds they manage. This allows them to be independent and entrepreneurial and offers them a powerful incentive to deliver strong performance. The multi-boutique structure also gives them the agility to seize market opportunities and the ability to use distinctly different investment approaches and styles. The accolades they have achieved and performance track records they have built up over decades are confirmation that Old Mutual Investment Group have achieved the right formula for securing our clientsâ&#x20AC;&#x2122; long-term financial success.

Investment mandates What are your total assets under management? R595.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R142.1 billion Retail: R261.9 billion Life: R191.6 billion Other: N/A

History When was the company established? 1993 List 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 FSPâ&#x20AC;&#x2122;s.

201

MANAGER WATCH™ SURVEY

Old Mutual Investment Group (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 185 Hywel George Director of Investments BSc: Economics 28 years’ industry experience 2 years with firm John Gilchrist Boutique Co-Head: Customised Solutions CA (SA), MBA (Insead – France) 19 years’ industry experience 12 years with firm Grant Watson Boutique Co-Head: Customised Solutions B Com, BSc, Hons, MBA, SAIS, CMMD 23 years’ industry experience 13 years with firm Paul Boynton Head: Alternative Investments B Com, BSc, Hons, MBA, CA (SA), FCMA 28 years’ industry experience 22 years with firm Peter Linley Head: Old Mutual Equities BA (Economics), B Com, Hons 32 years’ industry experience 29 years with firm Peter Brooke Head: MacroSolutions BBusSC Hons (Finance) 22 years’ industry experience 12 years with firm

202

Bradley Kalil Head: Old Mutual Specialised Finance (OMSFIN) BBSc, CA(SA), CFA 22 years’ industry experience 20 years with firm Paul Rackstraw Head: Futuregrowth Asset Management CA (SA) 27 years’ industry experience 27 years with firm Simon Pierse Head: Marriott Income Specialists B Com, MBA, DBA 23 years’ industry experience 23 years with firm Feroz Basa Boutique Co-Head: Global Emerging Markets B.Com (Hons) 13 years’ industry experience 19 years with firm Siboniso Nxumalo Boutique Co-Head: Global Emerging Markets B.Com (Hons), MBA 11 years’ industry experience 12 years with firm

SECTION 6

Old Mutual Multi-Managers www.ommultimanagers.co.za

Company details

Ownership

B-BBEE credentials

FAIS FSP registration number: 703 Switchboard: +27 21 524 4430 Fax number: +27 21 441 1199 General email:

What is the ownership structure of the company? Old Mutual Multi-Managers was formed through the business consolidation of SYm|mETRY Multi-Manager and the Acsis Research and Investment Management team. 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 (Chairman), B M Rapiya (Deputy Chairman), D Macready (Chief Executive Officer), Ms N T Moholi, Ms CWN Molope, PGM Truyens (Dutch), IG Williamson and Ms EM Kirsten (Company Secretary) Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: ■■ 4.73% to management and staff ■■ 57.95% to the rest of the beneficiaries comprising intermediaries and customers, black business partners and black beneficiaries via mandated investments

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQ Rate Verification Services Date of accreditation: 2016-05-11

ommmclientquery@ommultimanagers.co.za

Website: www.ommultimanagers.co.za Address: The Estuaries, 2 Oxbow Crescent, Century City, 7441 PO Box 44604, Claremont, 7735 Compliance officer name: Denver Hendricks

Investment philosophy The philosophy of Old Mutual Multi-Managers revolves around clearly defining each client’s objectives, together with the client, and then aiming to deliver on those objectives. This means that the main focus is on inflation, particularly in relation to retirement funds and its members, and this enables the team to avoid some of the pitfalls of worrying what the rest of the investor herd is up to. The business has a long-term view that we believe enables the 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 Hendricks Please provide the link to the complaints policy on your website: http://www.omwealth. co.za/BusinessPolicies/ ComplaintsResolutionProcess

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 SYm|mETRY Multi-Manager and the Acsis Research and Investment Management team. The consolidation process began in 2013.

GIPS Are you GIPS compliant? Not applicable as Old Mutual Multi-Managers is a Multi-Manager and this applies to underlying managers. Old Mutual Multi-Managers perform an annual due diligence on all underlying managers as part of the company’s risk process. Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R101.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R45.9 billion Retail: R55.5 billion Life: N/A Other: N/A

203

MANAGER WATCH™ SURVEY

Old Mutual Multi-Managers Continued

Key investment personnel Size of Investment Team: 14 Andrew Salmon Head: Investments BEcon, B Com (Honours) 33 years’ industry experience 9 years with firm Ameer Amod Head: Absolute & Fixed Interest Manager Research Mcom (Financial Management); MSc (Engineering) 15 years’ industry experience 5 years with firm Monene Watson Head: Equity Manager Research B Com (Honours); CFA; PGDip (Financial Planning), CFP 23 years’ industry experience 14 years with firm Andreea Bunea Head: Global Investments B Com (Honours), CFA 14 years’ industry experience 8 years with firm Stephen Brierley Head: Fund of Hedge Funds B Com (Economics) 7 years’ industry experience 7 years with firm Michael Dodd Senior Investment Analyst BBusSc(Hons), FRM, CFA 10 years’ industry experience 9 years with firm

204

Dave Mohr Chief Investment Strategist Mcom (Economics) 33 years’ industry experience 18 years with firm Taruona Mhuru Product Manager MSc (Financial Mathematics), BSc Honours (Mathematics) 10 years industry experience 8 years with firm Barry van Zyl Senior Investment Analyst B Com (Hons), BSc 13 years’ industry experience 13 years with firm Craig Whitfield Investment Analyst B Com (Honours) , CFP 7 years’ industry experience 4 years with firm Izak Odendal Investment Strategist MPhil 12 years’ industry experience 4 years with firm Taj Badrodien Performance Analyst B Com (Honours), Post Graduate Diploma in Financial Planning 10 years’ industry experience 1 year with the firm Olebogeng Motswai Performance Analyst B Com (Financial Accounting) 6 years’ industry experience 1 year with the firm

SECTION 6

Pan-African Asset Management (Pty) Ltd www.pam-asset.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 620 Switchboard: +27 11 463 0300 Fax number: +27 11 463 0299 General email: insight@pam-asset.co.za Website: www.pam-asset.co.za Address: 6 Blackpool Road, Bryanston, Gauteng, 2021 Private bag X9962, Sandton, Gauteng, 2146 Compliance officer name: Maria Helena RossouwInternal Compliance officer +27 11 463 0300

What is the ownership structure of the company? PAM is a subsidiary of the PGC Group of Companies. PGC has the vision to become the Leading Workers owned Investment Group in Africa to general and invest finance capital on behalf of Workers. Who are the directors of the company? ZR Mdletshe, AM Sibande, Dr GF Lindeque, HM Masson, PM Scheepers. Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 32%

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Ramathe Chartered Accounts (SA) Date of verification: 2016-07-01 Expiry date of verification: 2017-06-30

Investment philosophy

When was the company established? 1997 List of mergers that have taken place since being established: Real African Asset Management “RAAM” was established in 1997 as the first Black asset management company. WIPAM, a subsidiary of WIPHOLD, was established as the first Woman asset management company in 1999. RAAM and WIPAM merged in October 2001. The company was re-branded as Pan-African Asset Management (“PAM”) in 2006. PGC Group, 100% black owned and 38% black women owned, became the controlling shareholder of PAM in 2016.

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 Services Please provide the link to the complaints policy on your website: www.pam-asset.co.za

History

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Authentic Ratings Date of accreditation: 2016-02-01

Investment mandates What are your total assets under management? R3.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R3.5 billion Retail: R225 million Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 7 Mphile A Sibande Chief Executive Officer B Com, MBA 10 years’ industry experience 1 years with firm Helen M Masson Chief Investment Officer CFA, M.Com Econometrics (UJ) 37 years’ industry experience 16 years with firm Courtenay Harebottle ESG Research B Com Marketing 34 years’ industry experience 13 years with firm C Julian Masson Portfolio Manager (Analyst) CFA, B Com Hons (Financial Analyst and Portfolio Management) (UCT) 8 years’ industry experience 6 years with firm

205

MANAGER WATCH™ SURVEY

Perpetua Investment Managers (Pty) Ltd www.perpetua.co.za

Company details FAIS FSP registration number: 29977 Switchboard: +27 21 674 4274 Fax number: +27 21 674 4599 General email: info@perpetua.co.za Website: www.perpetua.co.za Address: 5th Floor, The Citadel, 15 Cavendish Street, Claremont, 7708 PO Box 44367, Claremont, 7735 Compliance officer name: James George 0861 273 783

Investment philosophy Perpetua is a value-oriented investment manager with the belief that the best predictor of returns is the price paid for an investment relative to a determination its true value. The investment philosophy is centred on the bottom-up, fundamental research of companies. Perpetua seeks out mispriced, undervalued companies and invest with a long-term and patient view. Their investment process ensures investments are made according to the convictions of their research, not to benchmarks. The firm is therefore unconstrained in its approach to portfolio management and is concerned with doing what is right for the long-term, not simply what is popular for now. They pursue their own interpretation of value investing, termed True Value investing. True Value investing that: ■■ Undervalued shares can be uncovered due to more than one central thesis - from “mean reversion” on one end to “quality at a reasonable price” at the other end. ■■ Correctly determining the “value thesis” at the point of investment reduces the typical shortfalls of more 206

one-dimensional value investors. Theses can and do change over the lifecycle of the investment. ■■ Share attributes or metrics (low or high P/E; low or high Price to Book) do not indicate fundamental under/ over valuation in isolation.

FAIS requirements Who is your FAIS complaints officer? Logan Govender Please provide the link to the complaints policy on your website: Perpetua’s complaints policy is accessible in the governance section of the website: www.perpetua.co.za.

Ownership What is the ownership structure of the company? 100% of the shares in the company are held by directors and staff. Perpetua has granted RMI Investment Managers an option to acquire 25% of the shareholding in Perpetua. Who are the directors of the company? Delphine Govender, Logan Govender, Patrick Ntshalintshali, Raymond Ndlovu Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Currently 100% owner-managed 12,5% has been reserved for the Staff Share Incentive Scheme

History When was the company established? 2012 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? MD Accountants and Auditors Date of accreditation: 2016-10-31

GIPS Are you GIPS compliant? No Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R6.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R5.9 billion Retail: R0.2 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 10 Delphine Govender Chief Investment Officer CA (SA), CFA 19 years’ industry experience 4 years with firm Lonwabo Maqubela Head of Research and Portfolio Manager CA (SA), CFA 10 years’ industry experience 4 years with firm Patrick Ntshalintshali Portfolio Manager Bcom (Hons), EDP 20 years’ industry experience 2 year with firm Mark Butler Portfolio Manager CA (SA), CFA 19 years’ industry experience 2 year with firm

SECTION 6

Prescient Investment Management (Pty) Ltd www.prescient.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 612 Switchboard: +27 21 700 3600 Fax number: +27 21 700 3700 General email: info@prescient.co.za Website: www.prescient.co.za Address: Prescient House, Westlake Business Park, Otto Close,Westlake, Cape Town, 7945 PO Box 31142, Tokai, 7966 Compliance officer name: Christine Pretorius +27 21 700 3607

Who is your FAIS complaints officer? Christine Pretorius Please provide the link to the complaints policy on your website: https://www.prescient.co.za/holdings/ files/complaints_handling.pdf

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Date of verification: 01 April 2015 Expiry date of verification: 31 March 2016

Investment philosophy 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.

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, Raphael Nkomo, Sharon Bailey, Monei Pudumo-Roos, Farzana Bayat, Meyer Coetzee, Eldria Fraser Do 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.1998/23640/07 List of mergers that have taken place since being established: N/A

B-BBEE credentials

Investment mandates What are your total assets under management? R76.1 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R60.1 billion Retail: R15.2 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 21 Raphael Nkomo Chief Investment Officer & Head of Equities MCom (Economics) PhD (Comp Finance) 17 years’ industry experience 1 year 5 months with Prescient Guy Toms Chief Strategist & Head of Fixed Interest B.Bus.Sc (Hons) 31 years’ industry experience 18 years with Prescient

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Date of accreditation: 30 April 2015

207

MANAGER WATCH™ SURVEY

Prowess Investment Managers (Pty) Ltd www.prowessinvestments.com

Company details

History

Key investment personnel

FAIS FSP registration number: 38318 Switchboard: +27 21 5650065 Fax number: +27 086 614 7173 General email: info@prowessinvestments.com Website: www.prowessinvestments.com Address: 20th Floor, Thibault Square, 1 Long Street, Cape Town, 8001 Private Bag 15086, Vlaeberg, 8078 Compliance officer name: Debbi Wahl representing Independent Compliance Services +27 21 975 6597

When was the company established? 2008/12/31 List of mergers that have taken place since being established: N/A

Size of Investment Team: 3

Investment philosophy

Are you GIPS compliant? Not yet. We are in the process of being GIPS compliant and verified Are you GIPS verified? Not yet. We are in the process of being GIPS compliant and verified By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Maximizing returns for clients based on a sound value system; and preserving purchasing value of money for clients by making investment decisions based on fair value analysis, market trends and cycles; and being proactive in moving client funds into assets that will preserve value when required.

FAIS requirements Who is your FAIS complaints officer? Kelebogile Moloko Please 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, Renier Schonken, Louisa Xabela, Janine De Bryn Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Management own 100% of the company. 208

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 as an exempt micro enterprise By whom have you been accredited? AQRate Date of accreditation: 22 April 2016

GIPS

Investment mandates What are your total assets under management? Not confirmed at time of publication Please detail the mandates you currently manage and the size of each of these mandates: Institutional: N/A Retail: N/A Life: N/A Other: N/A

Kelebogile Moloko Chief Investment Officer / Head of Fixed Income B Com (Economics & Finance Majors), B Com Honours: Financial Analysis & Portfolio Management, INSET Leadership Advancement Diploma 18 years’ industry experience 8 years with firm Shane Johns Assistant Portfolio Manager / Head of Dealing CFA, B Com Hons(Economics), B Com Hons(Financial Analysis and Portfolio Analysis), B Soc Sc(Economics). He is a member of The Institute of Financial Markets and holds an Investment Management Certificate. 11 years’ industry experience 1 month with firm

SECTION 6

Prudential Investment Managers www.prudential.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 45199 Switchboard: +27 21 670 5100 Fax number: +27 21 683 7156 General email: info@prudential.co.za Website: www.prudential.co.za Address: 7th Floor, Protea Place, Corner Dreyer Street and Protea Road, Claremont, 7708 PO Box 44813, Claremont, 7735 Compliance officer name: Kerry Horsley (Head of Risk and Compliance) +27 21 670 2858

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. Who are the directors of the company? *GD Mason (Chairman), BR Fick (Chief Executive Officer), ML Burnett, WT Africa, MP Beckenstrater, *TP Leeuw, *S Mthembu, ** BW Grater, **S Moore, **L Yanta, ***G Speirs

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? KMPG Date of verification: 2015-12-31 Expiry date of verification: 2017-12-31

Investment philosophy Prudential are prudent, value investors who place a special emphasis on managing risk in their client portfolios. 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. Short-term inefficiencies are essentially driven by repeating behavioural 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 like Prudential to earn excess returns by investing in mis-priced assets.

*Non-Executive Director **Independent Non-Executive Director ***UK National Non-Executive Director Do 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? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? AQRate Verification Services Date of accreditation: 2016-07-22

Investment mandates What are your total assets under management? R214 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R137 billion Retail: R69.6 billion Life: R7.4 billion Other: N/A

Key investment personnel Size of Investment Team: 34 David Knee Chief Invesment Officer B.Sc.(Eco), M.Sc (Eco), ASIP 27 years’ industry experience 19 years with firm

FAIS requirements Who is your FAIS complaints officer? Kerry Horsley Please provide the link to the complaints policy on your website: https://www.prudential.co.za/terms-andconditions 209

MANAGER WATCHâ&#x201E;˘ SURVEY

PSG Asset Management Holdings (Pty) Ltd www.psg.co.za/Asset-Management

Company details FAIS FSP registration number: 29524 Switchboard: +27 21 799 8000 Fax number: +27 21 799 8182 General email: psgassetmanagement@psg.co.za Website: www.psg.co.za/asset-management Address: 1st Floor, PSG House, Alphen Park, Constantia Main Rd, Constantia, Cape Town PBX3, Constantia, 7848 Compliance officer name: Elana Honiball elana.honiball@psg.co.za

Investment philosophy PSG puts 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 Mâ&#x20AC;&#x2122;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.

210

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? Elana Honiball Please 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 Ltd Who are the directors of the company? Anet Ahern, Greg Hopkins, Chris Henderson, Terence Collopy Do 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? 1999-02-01 List 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? Yes What is your B-BBEE status? Level 6 By whom have you been accredited? AQRate Date of accreditation: 2016-07-14

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R32 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R13.5 billion Retail: R18.5 billion Life: N/A Other: N/A

SECTION 6

PSG Asset Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 13 Greg Hopkins Chief Investment Officer, Portfolio Manager BCom(UCT) CA(SA), CFA 20 years’ industry experience 7 years with firm Ian Scott Head of Fixed Income, Portfolio Manager BCom(Econ), BCom(Hons) Investment Management 18 years’ industry experience 4 years with firm

Heinrich Dietzch Portfolio Manager MSc (Statistics) 37 years’ industry experience 18 years with firm Tyron Green Portfolio Manager BCom(Hons), CA(SA), MBA 10 years’ industry experience 3 years with firm Kevin Cousins Head of Research BCom(UKZN), CA(SA) 24 years’ industry experience 2 years with firm

Paul Bosman Portfolio Manager BCom(Hons)(Stell), CFA 13 years’ industry experience 13 years with firm Phillip Worz Portfolio Manager BCom(Hons)(Stell), CFA 10 years’ industry experience 10 years with firm

211

MANAGER WATCH™ SURVEY

Regarding Capital Management (Pty) Ltd www.recm.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 18834 Switchboard: +27 21 657 3440 Fax number: +27 21 674 1085 General email: info@recm.co.za Website: www.recm.co.za Address: 6th Floor, Claremont Central, 8 Vineyard Road, Claremont, 7700 PO Box 45040, Claremont, 7735 Compliance officer name: Mr Guy Simpson +27 21 657 3441

Who is your FAIS complaints officer? Mr Guy Simpson Please provide the link to the complaints policy on your website: https://www.recm.co.za/ Search?SearchTerm=complaints

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Date of verification: 2015-12-31 Expiry date of verification: N/A

Investment philosophy 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.

212

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 Akherwaray Do 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 When was the company established? 19/03/2004 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? N/A By whom have you been accredited? N/A Date of accreditation: N/A

Investment mandates What are your total assets under management? R7.2 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R1.2 billion Retail: R6.0 billion Life: N/A Other: N/A

SECTION 6

Regarding Capital Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 10 Johannes Visser Analyst B Com (Hons), Finance, CFA 12 years’ industry experience 8 years with firm Piet Viljoen Analyst & Portfolio Manager & Chairman B Com (Hons), CFA 31 years’ industry experience 14 years with firm

Paul Whitburn Analyst & Portfolio Manager B Com (Hons), Finance (Cum Laude) 14 years’ industry experience 6 years with firm Linda Eedes Senior Analyst B Com (Hons), Finance (Cum Laude), CFA 17 years’ industry experience 6 years with firm

Jan Van Niekerk Analyst, CEO & CIO B Com (Hons) Math, FIA, CFA 19 years’ industry experience 3.5 years with firm Wilhelm Hertzog Analyst & Portfolio Manager B Com (Law), B Acc (Hons), CA (SA), CFA 12 years’ industry experience 9 years with firm

213

MANAGER WATCH™ SURVEY

Rezco Asset Management www.rezco.co.za

Company details

FAIS requirements

GIPS

FAIS FSP registration number: 702 Switchboard: 0861 739 468 Fax number: 086 532 8925 General email: info@rezco.co.za Website: www.rezco.co.za Address: Unit 33, 4th Floor, Katherine & West Building, 114 West Street, Sandton, 2196 146 Main Road, Port Elizabeth, 6001 Compliance officer name: Ronald Cape 082 888 7466

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/complaintspolicy/

Are you GIPS compliant? In progress Are you GIPS verified? No By whom have you been verified? Ashland Partners & Company LLP Date of verification: N/A Expiry date of verification: N/A

Investment philosophy 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.

214

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 Plessis Who are the directors of the company? WJH Gray, RB Spanjaard, PR Du Toit, RR Cape, B Nackan, L Kaplan, J Krynauw, B du Plessis Do 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? 1981 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? No What is your B-BBEE status? Level 5 By whom have you been accredited? N/A Date of accreditation: N/A

Investment mandates What are your total assets under management? R9.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R2.8 billion Retail: R6.7 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 10 Rob Spanjaard Chief Investment Officer B.Com, CTA 23 years’ industry experience 18 years with firm Wally Gray Head of Research B.Sc (Eng), MBL Cum laude 42 years’ industry experience 35 years with firm Jann Krynauw Head of Fixed Income Actuary 14 years’ industry experience 5 years with firm Rob Spanjaard Head of Equities B.Com, CTA 23 years’ industry experience 18 years with firm

SECTION 6

Sanlam Investment Management (Pty) Ltd www.sanlaminvestments.com

Company details FAIS FSP registration number: 579 Switchboard: +27 21 950 2500 Fax number: +27 21 950 2916 General email: institutional@sanlaminvestments.com Website: www.sanlaminvestments.com Address: 55 Willie van Schoor Avenue, Tygervalley, Bellville, 7530 Private Bag X8, Tygervalley, 7536 Compliance officer name: Nelize Jacobs +27 21 950 2690

Investment philosophy 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 their 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 Jacobs Please 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 Ltd Who are the directors of the company? Yaganthrie Ramiah, Temba Irvine Mvusi, Nersan Ranjan Naidoo, Robert Roux Do 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.

History When was the company established? 1967-11-13 List of mergers that have taken place since being established: None

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Date of accreditation: 2016-06-03 Expiry date: 2017-06-02

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PWC Date of verification: 2016-10-31 Expiry date of verification: N/A

Investment mandates What are your total assets under management? R439.9 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R188.3 billion Retail: R43.2 billion Life: R208.3 billion Other: N/A

215

MANAGER WATCH™ SURVEY

Sanlam Investment Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 32 Gerhard Cruywagen Chief Investment Officer and Head: Asset Allocation BSc (Pure & Applied Maths), BSc Hons (Applied Mathematics), DPhil (Mathematics), CFA 21 years’ industry experience 8 years with firm

Fred White Head: Balanced BEng, Meng, MBA, CFA 26 years’ industry experience 14 years with firm

Andrew Kingston Head: Equity Research B Com, GDipAcc, CA (SA), CFA 27 years’ industry experience 18 years with firm

Arthur Kamp Chief Economist BEcon Hons, MSc 21 years’ industry experience 11 years with firm

Barend Ritter Senior Equity Portfolio Manager CFA, BChemical Engineering, MChemical Engineering 20 years’ industry experience 9 years with firm

Mokgatla Madisha Head: Fixed Income B Com Honours (Financial Analysis & Portfolio Management) BSc Eng 17 years’ industry experience 1 years with firm

Patrice Rassou Head of Equities BSc Hons (Economics), MSc (Economics), MBA, CA (UK) 20 years’ industry experience 10 years with firm

216

Philip Liebenberg Head: Absolute Return PhD (Chem.Eng.); Diploma (Investment Management); M Eng (Chem.Eng), CFA 17 years’ industry experience 9 years with firm

SECTION 6

Sanlam Multi Manager International (Pty) Ltd www.sanlaminvestments.com

Company details FAIS FSP registration number: 845 Switchboard: +27 21 950 2600 Fax number: +27 21 950 2126 General email: institutional@sanlaminvestments.com Website: www.sanlaminvestments.com Address: 55 Willie van Schoor Avenue, Bellville, 7530 Private Bag X8, Tygervalley, 7736 Compliance officer name: Nelize Jacobs +27 21 950 2690

Investment philosophy SMMI believes that the market displays short-term inefficiency which causes asset prices to deviate from their fair value in the short term. This creates the potential for superior investment managers to take advantage of deviations between fair value and market price, and consequently to generate substantial outperformance of the general market or benchmark over time. Given that past performance is not an indication of future performance, SMMI’s skill lies in distinguishing whether outperformance was due to luck and unlikely to be repeated, or due to skill and therefore repeatable. SMMI believe 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 outstanding proprietary research platform enables them to distinguish between managers displaying skill and lucky managers, without being blinded by short-term performance noise in the market. They continuously analyse the performance characteristics of various managers and develop an understanding of their particular portfolio construction process. As a result they understand which manager combinations will lead to a concentration or under allocation of risk in the portfolio

that will ultimately jeopardises the ability of the portfolio to meet the client’s performance expectations in the long run and construct robust portfolios free from these biases. FAIS requirements Who is your FAIS complaints officer? Nelize Jacobs Please provide the link to the complaints policy on your website: N/A

Ownership What is the ownership structure of the company? As part of the company’s endeavour to ensure Black Economic Empowerment, Sanlam Limited (Sanlam) and by extension SMMI entered into an arrangement with Ubuntu-Botho Investments (Pty) Ltd (UB) whereby UB currently holds a 13.3% stake in Sanlam. Who are the directors of the company? Nersan Naidoo, Carla Fouché, Selwyn Pillay, Robert Roux 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? 2002 List 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? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? AQRate Date of accreditation: 2016-06-03 Expiry date: 2017-06-02

GIPS Are you GIPS compliant? No Are you GIPS verified? N/A By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R105.81 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R66.46 billion Retail: R39.35 billion Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 12 Selwyn Pillay Chief Investment Officer BSc Actuarial Science, Post Graduate Diploma (Actuarial Science) 13 years’ industry experience 13 years with firm David Galloway Stategist B BusSc (Hons), B Com Hons, M Com 24 years’ industry experience 10 years with firm Paul Wilson Head of Manager Research BSc Hons (Actuarial Mathematics), CFA 13 years’ industry experience 5 years with firm

217

MANAGER WATCH™ SURVEY

Sentio Capital Management (Pty) Ltd www.sentio-capital.com

Company details

Ownership

Investment mandates

FAIS FSP registration number: 33843 Switchboard: +27 11 880 1994 Fax number: +27 11 447 8818 General email: lsithole@sentio-capital.com Website: www.sentio-capital.com Address: 3rd Floor Global House, 28 Sturdee Avenue Cnr Jellicoe Avenue, Rosebank Johannesburg, South Africa, 2191 PO Box 1120, Houghton, Johannesburg, South Africa, 2041 Compliance officer name: Stephen Martin Gerber +27 21 558 5605

What is the ownership structure of the company? Managemenet and staff 82%, RMI – 18% Who are the directors of the company? Mohamed Mayet, Rayhaan Joosub, Imtiaz Suliman, Olwethu Notshe, Traugott (TC) von Czettritz und Neuhaus, Chris Meyer Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes they do,16%

What are your total assets under management? R10.3 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R8.9 billion Retail: R1.4 billion Life: N/A Other: N/A

History

Mohamed Mayet Chief Investment Officer / Head of research B Com (Wits), B Com Hons (Adv Fin), NASD (USA) 21 years’ industry experience 9 years with firm

Investment philosophy Sentio customized investment filters used to highlight high probability investment opportunities and risk categorization. Detailed fundamental models using multidimensional analysis are used to value companies. Management interaction and macro analysis to highlight key risks and catalysts for each investment opportunity. The stock selection process is integrated with quantitative portfolio construction to make buy and sell decisions. These decisions are made with a view to building portfolios that deliver superior risk-adjusted returns.

FAIS requirements Who is your FAIS complaints officer? Stephen Martin Gerber Please provide the link to the complaints policy on your website: http://www.sentio-capital.com/complaints

When was the company established? 2007-08-01 List of mergers that have taken place since being established: N/A

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 1 By whom have you been accredited? Premier Verification Date of accreditation: 2016-12-05

GIPS Are you GIPS compliant? Not yet Are you GIPS verified? Not Yet By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Key investment personnel Size of Investment Team: 8

Rayhaan Joosub Chief Investment Officer BSc Chemical Engineering (Wits), B Com (Unisa) 19 years’ industry experience 9 years with firm Sanveer Hariparsad Head of Fixed Income Actuarial Exams (Current) (Completed: CT1-9, ST 0, ST5, CA3, CA2); CFA; CAIA; MSc (Financial Engineering); BSc (Hons) (Financial Mathematics) (Cum Laude); BSc (Actuarial Science) 10 years’ industry experience 0 years with firm Imtiaz Suliman Senior Portfolio Management CFA: CFA Institute, BSc: Financial Mathematics, University of Pretoria 14 years’ industry experience 6 years with firm Olwethu Notshe Senior Portfolio Management B.Bus Sci, CFA, CAIA 9 years’ industry experience 5 years with firm

218

SECTION 6

Sesfikile Capital (Pty) Ltd www.sesfikilecapital.com

Company details FAIS FSP registration number: 39946 Switchboard: +27 11 684 2679 Fax number: 086 619 5265 General email: Sescap@sescap.co.za Website: www.sesfikilecapital.com Address: 1st Floor, 30 Melrose Boulevard, Melrose Arch, 2076 Suite 334, Private Bag X1, Melrose Arch, 2076 Compliance officer name: Enrique Goosen +27 21 975 6597

Investment philosophy 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/A Please provide the link to the complaints policy on your website: Available on request

Ownership What is the ownership structure of the company? Ukukhlua Sibanye En Commandite Partnership: 37.4%, Evan Jankelowitz: 12.50%, Mohammed Kalla: 12.50%, Kundayi Munzara: 12.5% and Royal Investment Managers: 25.01% 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 37.5% 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? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Empowerdex Date of accreditation: 2015-07-20

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R14.5 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R13.7 billion Retail: R874 million Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 3 Evan Jankelowitz Portfolio Manager B Com (Financial Management; Cum Laude) from the University of Johannesburg, CFA 12.5 years’ industry experience 6 years with firm Mohamed Kalla Portfolio Manager B Com (Investment Management; Cum Laude) from the University of Pretoria, CFA 12 years’ industry experience 6 years with firm Kundayi Munzara Portfolio Manager BSc. (Hons) in Property Studies, CFA 11.5 years’ industry experience 6 years with firm

219

MANAGER WATCH™ SURVEY

STANLIB Asset Management Ltd www.stanlib.com

Company details FAIS FSP registration number: 26/10/719 Switchboard: +27 11 448 6000 Fax number: N/A General email: contact@stanlib.com Website: www.stanlib.com Address: 17 Melrose Boulevard, Melrose Arch, Johannesburg, 2196 PO Box 202, Melrose Arch, 2076 Compliance officer name: Diketso Mashigo +27 11 448 6826

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 currrently employs 95 investment professionals.

FAIS requirements Who is your FAIS complaints officer? Diketso Mashigo Please provide the link to the complaints policy on your website: http://www.stanlib.com/Contactus/Pages/ FurtherQueries.aspx

Investment philosophy

Ownership

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.

What is the ownership structure of the company? STANLIB Asset Management (STANLIB) is wholly 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, MW Hlahla, AP Cunningham, JH Sutcliffe, CG Troskie 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 professionals have a direct interest in the success of their franchise(s), funds, clients and the overall firm.

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, listed 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

220

History When was the company established? STANLIB was formed in May 2002 following the merger of the Liberty Asset Management (LIBAM) and Standard Corporate and Merchant (SCIMB) Bank asset management. 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. In 2016 STANLIB subsequently sold it’s entire share holding to Ethos Private Equity Proprietary Limited.

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? AAA - Level 2 By whom have you been accredited? EMPOWERDEX Date of accreditation: 2016-07-11

SECTION 6

STANLIB Asset Management Ltd Continued

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? PricewaterhouseCoopers Date of verification: 31 December 2014. Expiry date of verification: No expiry date. We are in the final stages of finalising GIPS verification for the period ending 31/12/2015.

Investment mandates What are your total assets under management? R584 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R317 billion Retail: R214 billion Africa: R53 billion Other: N/A

Key investment personnel Size of Investment Team: 95 Herman Van Velze Head of Equity Franchise BEng, MBL 24 years’ industry experience 20 years with firm Henry Munzara Head of Research BA (Hons) Economics 19 years’ industry experience 9 years with firm Henk Viljoen Co-Head of Fixed Interest Franchise MCOM (Econ) (cum laude) 31 years’ industry experience 25 years with firm

Alphonso Raats Head of Equity and Derivative Dealing BAcc, B.Com(Hons), MCOM (Cum Laude) 18 years’ industry experience 17 years with firm Robin Eager Head of Multi-Asset Franchise B.Sc (Engineering), Accounts Conversion (UCT) 20 years’ industry experience 11 years with firm

Greg Babaya Head of Infrastructure Investments B Com, B Com (Hons) Accounting, MBA 20 years’ industry experience 4 years with firm Patrick Mamathuba Head of Direct Property Franchise B Com (Hons), CFA 24 years’ industry experience 17 years with firm

Ansie van Rensburg Head of Money Market B Com (Hons) (Economics) 35 years’ industry experience 25 years with firm

Amelia Beattie Chief Executive Officer – Liberty Two Degrees B Com (Financial Accounting and Transport Economics) 18 years’ industry experience 5 years with firm

Victor Mphaphuli Co-Head of Fixed Interest Franchise B Com (Hons) (Econometrics) 20 years’ industry experience 16 years with firm

Kevin Lings Chief Economist B Com (Hons) Economics 27 years’ industry experience 15 years with firm

Keillen Ndlovu Head of Listed Property Franchise B Com (Hons), CAIB (SA), Property Development programme 12 years’ industry experience 12 years with firm

Joao Frasco Chief Investment Officer – STANLIB Multi-Manager Franchise B.Sc (Acturial Science and Mathematics Statistics), CFA, CIPM, FASSA, FIA, CAIA 15 years’ industry experience 5 years with firm

Brian Kipps MD: Quantitive Investment Strategies B Bus Sc, FIA, FASSA, CFA, AMP(MIT) 18 years’ industry experience Recently joined Stanlib Marius Oberholzer Head of Absolute Return Franchise B Com (Economics and Commercial Law), M.Sc (Global Finance) 17 years’ industry experience 3 years with firm

Johan Marnewick Head of Unlisted/Llliquid Credit Investment Team B Com (Law), LLB, B Com (Accounting, PGDA, CA (SA), HDIP(Tax) 15 years’ industry experience Recently joined Stanlib

John Mackie Head of Pan Africa Franchise B Com (Hons) (Econ) 32 years’ industry experience 32 years with firm

221

MANAGER WATCH™ SURVEY

Sygnia Asset Management Proprietary Ltd www.sygnia.co.za

Company details

History

Key investment personnel

FAIS FSP registration number: 873 Switchboard: +27 21 446 4940 Fax number: +27 21 446 4950 General email: info@sygnia.co.za Website: www.sygnia.co.za Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001 PO Box 5191, Waterfront, 8002 Compliance officer name: Nadia Muller +27 21 446 2436

When was the company established? March 2003 List of mergers that have taken place since being established: N/A

Size of Investment Team: 19

Investment philosophy

GIPS

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.

Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

FAIS requirements Who is your FAIS complaints officer? Nadia Muller Please 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 Sygnia Limited. Who are the directors of the company? M. Budge, N. Giles, C. Leetjer, S. Peile, M. Wierzycka, H. Bhorat Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 75.9%

222

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 By whom have you been accredited? Grant Thornton Verification Dervices (Pty) Ltd Date of accreditation: 2015-12-15

Investment mandates What are your total assets under management? R158 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R147 billion Retail: R11 billion Life: R39 billion Other: R119 billion

Magda Wierzcyka Chief Executive Officer BBusSc(Actuarial), PhDip(Actuarial), FFA, FASSA, CFP FIFIM 23 years’ industry experience 13 years with firm Iain Anderson Head: Investments BMath (Honours) Acturial Science, CFA 15 years’ industry experience 6 years with firm

SECTION 6

Taquanta Asset Managers (Pty) Ltd www.taquanta.co.za

Company details

Ownership

GIPS

FAIS FSP registration number: 618 Switchboard: +27 21 681 5100 Fax number: +27 21 681 5199 General email: crm@taquanta.co.za Website: www.taquanta.co.za Address: 7th Floor, Newlands Terraces, Boundary Road, Newlands, 7700 PO Box 23540, Claremont, South Africa, 7735 Compliance officer name: Timothy Howse +27 21 671 8162

What is the ownership structure of the company? 100% Private Who are the directors of the company? Dr TV Maphai (Chairman), J Kretzschmar (CEO), SPC Rogers (MD), L Jakavula, S Matsebula, SDM Zungu, Company Secretary: Humeira Kazi Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 31.37%

Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? eComply Consultants (Pty) Ltd Date of verification: 2016-09-05 Expiry date of verification: 2016-12-31

Investment philosophy Taquantaâ&#x20AC;&#x2122;s investment philosophy is guided by the premise that investors are in general too easily swayed by shortterm sentiment and that a rules based, systematic approach guided by a sound investor hypothesis will outperform in the long term. Taquanta view themselves as being style agnostic, focusing on delivering tailor-made solutions across all asset classes focused on investor preferences and or constraints. Taquanta fundamentally believes that a product or portfolio is born only where their process meets an investors preference.

History When was the company established? 1999 List of mergers that have taken place since being established: N/A

B-BBEE credentials

Investment mandates What are your total assets under management? R115.7 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R115.7 billion Retail: N/A Life: N/A Other: N/A

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level Two By whom have you been accredited? AQRate Verification Services Date of accreditation: 2016-10-19

FAIS requirements Who is your FAIS complaints officer? Timothy Howse Please provide the link to the complaints policy on your website: timh@taquanta.com

223

MANAGER WATCH™ SURVEY

Taquanta Asset Managers (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 11 Ray Wallace Chief Investment Officer BCompt (Hons), CFA 21 years’ industry experience 20 years with firm Stephen Rogers Managing Director FCIS 32 years’ industry experience 31 years with firm Thembumenzi (Menzi) Lukhele Head of Business Development BA: Economics & International Relations 8 years’ industry experience 1 year with firm Charles Allderman Head of Fixed Income BCom, CFA 21 years’ industry experience 20 years with firm Peter Ebell Head of Equities BSc (Metallugical Engineering), MBA 25 years’ industry experience 1 years with firm Bernisha Lakhoo Lala Senior Portfolio Manager BSc Hons (Fin. Eng),CFA 12 years’ industry experience 10 years with firm Sharika Salie Senior Portfolio Manager B.Com (Hons) 11 years’ industry experience 9 years with firm

224

Marshall Brown Senior Portfolio Manager Bcom (Law & Business Economics) Adv Dip Banking 23 years’ industry experience 4 years with firm Faith Muramba Portfolio Manager BSC (Hons), CFA 7 years’ industry experience 6 years with firm Clyde Gangerdine Portfolio Manager BCom (Finance) 8 years’ industry experience 5 years with firm Liezel Louw Portfolio Manager (under supervision) B.Com( Hons) Financial Management, CFA 13 years’ industry experience 6 years with firm David Nathanson Portfolio Manager B Com (Mathematical Science) 8 years’ industry experience 2 years with firm Molefi Ramatsebe Portfolio Manager (under supervision) B Sc, B Com (Hons) 3 years’ industry experience 2 years with firm

SECTION 6

TriAlpha Investment Management (Pty) Ltd www.trialpha.co.za

Company details FAIS FSP registration number: 28090 Switchboard: +27 21 809 5400 Fax number: +27 21 882 8717 General email: info@trialpha.co.za Website: http://www.trialpha.co.za Address: G05A, Ground Floor, La Gratitude Offices, 97 Dorp Street, Stellenbosch, 7600 Postnet Suite 250, Private Bag X5061, Stellenbosch, 7599 Compliance officer name: Timothy Howse +27 21 671 8162

Investment philosophy 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, inflationlinked 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 Wyk Please provide the link to the complaints policy on your website: http://www.trialpha.co.za/complaints

Ownership What is the ownership structure of the company? StonehageFleming Group: 52.0%, Black Empowerment Partners: 21.5%, Management and Staff = 26.5% Who are the directors of the company? W T van Wyk, E Oblowitz, A H Sternberg, RCJ Shanglee, Dr M Phosa Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: Yes. 26.5%

History When was the company established? 2006 List of mergers that have taken place since being established: None

GIPS Are you GIPS compliant? Yes Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R16.4 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R16.4 billion Retail: N/A Life: N/A Other: N/A

Key investment personnel Size of Investment Team: 10 (SA & UK based) Theron van Wyk Chief Investment Officer B Com (Hons), FFA 19 years’ industry experience 10 years with firm Emile Visser Head of Fixed Income BSc (Hons), CAIA, FRM, CFA 10 years’ industry experience 10 years with firm

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 3 By whom have you been accredited? Acker & Maloney Inc. Date of accreditation: 2016-09-09 225

MANAGER WATCH™ SURVEY

Visio Capital Management (Pty) Ltd www.visiocapital.co.za

Company details FAIS FSP registration number: 871 Switchboard: +27 11 245 8900 Fax number: +27 11 245 8915 General email: info@visiocapital.co.za Website: www.visiocapital.co.za Address: The Place, 1 Sandton Drive Ground Floor, South Wing Sandton, 2196 Compliance officer name: Debbi Carse – ICS +27 21 975 6597

Investment philosophy 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 underresearched, 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.

226

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 maintains 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 capitalisations and through the use of a number of different investment instruments. Those include not just listed shares, but also listed commodity ETFs, 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 Engling Please 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 Moyal Who are the directors of the company? Patrice Moyal & Paul Sundelson Do 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? 2003 List of mergers that have taken place since being established: There have been no mergers since the company was established

B-BBEE credentials Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 4 By whom have you been accredited? Nolands Date of accreditation: 2016-04-26

GIPS Are you GIPS compliant? No Are you GIPS verified? No By whom have you been verified? N/A Date of verification: N/A Expiry date of verification: N/A

Investment mandates What are your total assets under management? R43 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R32 billion Retail: R3 billion Life: R8 billion Other: N/A

SECTION 6

Visio Capital Management (Pty) Ltd Continued

Key investment personnel Size of Investment Team: 13 Patrice Moyal Chief Investment Officer Chartered Accountant 20 years’ industry experience 14 years with firm Kerris Foster Head of Research BSc Chemical Engineering 16 years’ industry experience 11 years with firm Paul Sundelson Head of Equities B Com, CFA Charter Holder 19 years’ industry experience 14 years with firm Douglas Wallace Portfolio Manager / Analyst CA (SA), CFA Charter Holder, ACA 20 years’ industry experience 10 years with firm Ofri Kahlon Portfolio Manager / Analyst Master of Mathematics, Operational Research, Statistics & Economics 10 years’ industry experience 10 years with firm Ronald Chabvonga Portfolio Manager / Analyst CA (Z), CA (SA) 13 years’ industry experience 8 years with firm

Phihlelo Matjekane Portfolio Manager / Analyst B Com, CFA Charter Holder 13 years’ industry experience 6 years with firm Mark Wadley Portfolio Manager / Analyst MBBCH Medicine & Surgery, MBA 8 years’ industry experience 3 years with firm Tassin Meyer Portfolio Manager / Analyst / IR BBusSci (Hons) 13 years’ industry experience 3 years with firm Kathryn Robinson Portfolio Manager / Analyst B Com, (Hons) 8 years’ industry experience 2 year with firm Sindiso Mujaji Fund Manager BBusSci (Honours), CFA 9 years’ industry experience 2 year with firm Pumla Molope Fund Manager / Client Relations BBusSci (Honours), CFA 6 years’ industry experience 0.5 year with firm

Naeem Badat Portfolio Manager / Analyst BSc, B Com, CAIA, CFA Charter Holder 9 years’ industry experience 4 years with firm

227

MANAGER WATCH™ SURVEY

Vunani Fund Managers (Pty) Ltd www.vunanifm.co.za

Company details FAIS FSP registration number: 608 Switchboard: +27 21 670 4900 Fax number: +27 21 683 5788 General email: info@vunanifm.co.za Website: www.vunanifm.co.za Address: 6th Floor, Letterstedt House, Newlands on Main, Newlands, 7700 PO Box 44586, Claremont, 7735 Compliance officer name: Victor Ndlhovu +27 21 670 4980

Investment philosophy Vunani Fund Managers (VFM) has a strong investment capability in the areas of absolute return (CPI + range), enhanced income, vanilla bond, ILB, core domestic equity, specialist equity, global equity capability, as well as property funds. Their investment philosophy is based on the use of inference as opposed to forecasting and the minimisation of drawdown risk across all product groups. To this end the following principles guide their investment process and philosophy ■■ Risk control. Their objective in each of their product groups is to deliver performance that exceeds benchmark but with less-than-commensurate risk. ■■ Emphasis on consistency. They value consistency in everything they do. This includes delivering alpha as consistently as they are able to. ■■ Market efficiency. Unlike most market participants that believe that they possess some skill or are able to find inefficiencies in the market. Whilst this is possible in some cases Vunani Fund Managers don’t believe it to be the primary source of long term alpha generation. ■■ Specialization. They believe that specialization offers the surest path to the achievement of results. In a world of increasing complexity they focus each product area on “just one thing”. 228

■■ Macro-environment. Using inference as opposed to forecasting they extract the key values discounted by the market at any point in time and debate these. Their analysis shows that aggregate return expectations differ for both asset classes and companies in each of the three regimes identified within the macro-economic environment. ■■ Market timing. Whilst they do not seek to time the market or believe that its time in the market that counts, they focus their market timing decisions in the context of the potential for drawdown risk as defined by their composite macro indicator.

History

FAIS requirements

Are you B-BBEE accredited? Yes What is your B-BBEE status? Level 2 Contributor By whom have you been accredited? EmpowerLogic Date of accreditation: 2016-03-18

Who is your FAIS complaints officer? Victor Ndlhovu Please provide the link to the complaints policy on your website: http://www.vunanifm.co.za/Uploads/ Documents/News/0_Vunani%20 Fund%20Managers%20FAIS%20 Disclosure%202017.pdf

Ownership What is the ownership structure of the company? Vunani Capital = 79.8%; Lexshell 630 Investments (Pty) Ltd = 20.2% Who are the directors of the company? Executive Directors: Butana Khoza, Letshego Rankin Non-Executive Directors: Nathi Chonco (Chairman), Manana Nhlanhla Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 20.2%, a staff share scheme was set up in order to align the business and its staff. This is effectively a share award plan and staff are awarded shares for no consideration. Currently, 20.2% is owned by individuals involved in the operation/management of Vunani Fund Managers. Further share issues are still to be made to share scheme to bring total interest to 30%.

When was the company established? 1999 List 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

GIPS Are you GIPS compliant? Yes Are you GIPS verified? Yes By whom have you been verified? Deloitte & Touche Date of verification: 2015-01-01 Expiry date of verification: 2015-12-31

SECTION 6

Vunani Fund Managers (Pty) Ltd Continued

Investment mandates What are your total assets under management? R14.6 billion Please detail the mandates you currently manage and the size of each of these mandates: Institutional: R11.19 billion Retail: R3.40 billion Life: N/A Other: N/A

Fernando Durrell Head: Absolute Return PhD, CFA 13 years’ industry experience 13 years with firm Ntsekhe Moiloa Portfolio Manager: Absolute Return MA (Econ), LLM (Fin.), CAIA 12 years’ industry experience Recently joined Vunani Fund Managers

Size of Investment Team: 10

Craig MacArthur Head: Passive BSc (Hons), CFA 23 years’ industry experience 16 years with firm

Tony Bell Chief Investment Officer B Com (Hons), MBA 28 years’ industry experience 16 years with firm

Nandipha Makananda Trainee Analyst: Equity BCom (Hons) 2 years’ industry experience 2 years with firm

Rowan Williams-Short Head: Fixed Interest MSc, FIFM, CFA, CIPM 27 years’ industry experience 9 years with firm

Nompumelelo Qwabe Graduate Trainee Analyst: Equity BCom (Hons) 1 years’ industry experience 1 year with firm

Key investment personnel

Safs Narker Head: Equities CA (SA), CFA 10 years’ industry experience 4 years with firm Johan de Kock Portfolio Manager: Equity B Com (Hons), MBA 27 years’ industry experience 3 years with firm Nino Frodema Portfolio Manager: Equity MSc, CAIA 9 years’ industry experience 1 years with firm

229

MANAGER WATCHâ&#x201E;˘ SURVEY

Allan Gray Proprietary Limited Grant Pitt / Tamryn Lamb Tel: +27 21 415 2300 Email: institutional@allangray.co.za www.allangray.co.za

Aluwani Capital Partners (Pty) Ltd Lonwabo Dambuza Tel: +27 21 204 3813 Cell: +27 82 331 5009 Email: lonwabo.dambuza@aluwanicapital.co.za www.aluwanicapital.co.za

Argon Asset Management (Pty) Ltd Luyanda Joxo, CFA Tel: +27 21 670 6576 Fax: +27 86 674 1100 Email: Luyanda@argonasset.co.za www.argonassetmanagement.co.za An African investment firm with global standards

Cachalia Capital (PTY) LTD Mashuda Cassim Tel: +27 11 326 6699 Email: mashuda@cachaliacapital.com www.cachaliacapital.com

Cadiz Asset Management (Pty) Ltd Gerald Mafunda Tel: +27 21 657 8656 Fax: +27 21 657 8306 Email: gerald.mafunda@cadiz.co.za www.cadiz.co.za

230

SECTION 6

Coronation Fund Managers Kirshni Totaram Tel: +27 (0) 21 680 2000 Email: ktotaram@coronation.com www.coronation.com

Foord Asset Management William Fraser Tel: +27 21 532 6935 Fax: +27 21 532 6965 Email: william.fraser@foord.co.za www.foord.co.za Seriously growing your assets

Futuregrowth Asset Management (Pty) Ltd Thembela Mandla Tel: +27 21 659 5450 Fax: +27 21 659 5333 Email: thembelam@futuregrowth.co.za www.futuregrowth.co.za Choose returns that matter

Investec Asset Management Natalie Phillips Tel: +27 21 416 1700 Fax: +27 21 416 2700 Email: natalie.phillips@investecmail.com www.investecassetmanagement.com Investing for a better tomorrow

Investment Solutions Ltd Mark Lindhiem Tel: +27 11 505 6000 Fax: +27 11 263 1001 Email: info@ishltd.co.za www.investmentsolutions.co.za

231

MANAGER WATCH™ SURVEY

JM BUSHA Asset Managers (Pty) Ltd Joseph Busha Tel: +27 11 325 2027 Fax: +27 11 325 2047 Email: invest@jmbusha.com www.jmbusha.com Absolutely Positive Performance

Mergence Investment Managers (Pty) Ltd Ronél Bantjes Tel: +27 21 433 2960 Email: ronel@mergence.co.za www.mergence.co.za Pragmatic investing

Oasis Asset Management Limited Adam Ebrahim Tel: +27 21 413 7860 Fax: +27 21 413 7900 Email: clients@za.oasiscrescent.com www.oasiscrescent.com Superior Returns at Lower than Market Risk

Old Mutual Investment Group (Pty) Ltd Reagon Graig Tel: +27 21 509 7010 Email: RGraig@oldmutualinvest.com www.oldmutualinvest.com

Old Mutual Multi-Managers Trevor Pascoe Tel: +27 21 524 4815 Email: tpascoe@ommultimanagers.co.za www.ommultimanagers.co.za Your Future. Our Focus.

232

SECTION 6

Perpetua Investment Managers (Pty) Ltd Logan Govender Tel: +27 21 674 4274 Fax: +27 21 674 4599 Email: logan@perpetua.co.za www.perpetua.co.za Disciplined value investing

Prescient Investment Management (Pty) Ltd Monei Pudumo-Roos Tel: +27 21 700 3600 Fax: +27 21 700 3700 Email: monei@prescient.co.za www.prescient.co.za

PSG Asset Management (Pty) Ltd Joseph Taboola Tel: +27 21 799 8237 Email: joseph.taboola@psg.co.za www.psg.co.za/asset-management

Sanlam Investments Guy Fletcher / Todd Micklethwaite Tel: +27 21 950 2761 Email: SIInstitutional@sanlaminvestments.com www.sanlaminvestments.com

TriAlpha Investment Management (Pty) Ltd Russell Shanglee Tel: +27 21 809 5407 Fax: +27 21 882 8717 Email: russell.shanglee@trialpha.co.za www.trialpha.co.za

233

MANAGER WATCH™ SURVEY

Vunani Fund Managers (Pty) Ltd Letshego Rankin Tel: +27 11 263 9583 / +27 21 670 4900 Fax: +27 21 683 5788 Email: letshegor@vunanifm.co.za www.vunanifm.co.za “It’s about growth”

234

SECTION 6

Thank you The Annual Retirement Fund Survey 2016 is the product of the Surveyâ&#x20AC;&#x2122;s team on behalf of Alexander Forbes Financial Services. The team consists of Kim Strydom, Cyril Tshehla, Kavindra Naidu, Thokozani Zwane and Joseline Munsami. Through extensive research within the industry and comprehensive quantitative analysis of asset manager data, the team produced a complete analysis of performance over 2016. The Survey Team would like to thank the following people for their extensive contribution to this publication in service of the asset management industry of South Africa: Dwayne Kloppers

Anne Cabot-Alletzhauser

Nimisha Bhawan

External parties who contributed special articles: Deslin Naidoo

Alexander Forbes Communications team: Lebogang Mokoana Project Manager

Nkgomo Bojosinyane Art Director

Sharon Stephen Digital Design

Sharmaine Chanee Production

Kim Jonson Designer and DTP

A special thank you to the asset management industry for supplying Alexander Forbes with the necessary data and information in order for this publication to be produced. Thank you!

235

Your financial peace of mind is our priority

www.alexanderforbes.co.za

A licensed financial services provider

KINGJAMES 37493

When your signature impacts many, caution becomes critical. There’s a time to be bold and a time to be cautious. But when your decisions impact on the wellbeing of your employees, members, stakeholders and clients, caution is the more prudent strategy. That’s why we take our time to scrutinise every risk and requirement, consider every eventuality, before making decisions. Which means that, when the time comes to sign on behalf of others, you can do so boldly.

Our expertise includes: Active | Passive | Alternative | Multi-Management

Investments www.sanlaminvestments.com

Sanlam Investments consists of the following authorised Financial Services Providers: Sanlam Investment Management (Pty) Ltd (“SIM”), Sanlam Multi Manager International (Pty) Ltd (“SMMI”), Satrix Managers (RF) (Pty) Ltd, Graviton Wealth Management (Pty) Ltd (“GWM”), Graviton Financial Partners (Pty) Ltd (“GFP”), Radius Administrative Services (Pty) Ltd (“Radius”), Blue Ink Investments (Pty) Ltd (“Blue Ink”), Sanlam Capital Markets (Pty) Ltd (“SCM”), Sanlam Private Wealth (Pty) Ltd (“SPW”) and Sanlam Employee Benefits (Pty) Ltd (“SEB”), a division of Sanlam Life Insurance Limited, and has the following approved Management Companies under the Collective Investment Schemes Control Act: Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) and Satrix Managers (RF) (Pty) Ltd (“Satrix”).

ALEXANDER FORBES FINANCIAL SERVICES Alexander Forbes, 115 West Street, Sandton PO Box 787240, Sandton, 2146 Tel:+27 (0)11 269 0000 Fax: +27 (0)11 263 1441 email: managerwatch@aforbes.co.za or munsamij@aforbes.co.za www.alexanderforbes.co.za

Alexander Forbes Financial Services is a licensed financial services provider (FSP 1177). 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. This information is not advice nor is it intended as a personal recommendation, guidance or a proposal on the suitability of any financial product or course of action as defined in the Financial Advisory and Intermediary Services (FAIS) Act. While care has been taken to present correct information, Alexander Forbes and its directors, officers and employees take no responsibility for any actions taken based on this information, all of which require advice. Note that past performance is not a reliable indicator of future investment returns. Please speak to your financial adviser for tailored advice based on your individual financial needs before you make financial decisions based on this information. Designed by Alexander Forbes Communications. Photos: Gallo Images. 12634-SUR-2017-02