Beyond the Cliff - Ashburton's Perspective Jan 2013

January 2013

Perspective WELCOME

| OUTLOOK

| THEMATIC OUTLOOK | AFRICA

| NEWS

| PERFORMANCE

The year that was

The year ahead

Current themes

Time to invest?

Latest news

Our latest fund performance figures

The industry trends and macro drivers shaping our equity methodology.

The continent Investment roadshows, As at 31 December 2012. with considerable fund raisers and investment potential. opportunities in India.

Ashburton’s Managing Expectations for global Director, Peter Bourne, markets in 2013. looks back on 2012.

Beyond the cliff After a last minute deal in the US Congress, we look beyond the ‘fiscal cliff’ at what lies ahead for investors in 2013, our preferred themes within equities and opportunities for investing in Africa.

www.ashburton.com A member of the FirstRand Group

Contributors Tristan Hanson

Contents

Tristan is Ashburton’s Head of Asset Allocation, with responsibility for Ashburton’s Multi Asset Strategies and related research. He holds a Masters in Public Administration in International Development (MPA/ID) from Harvard University’s Kennedy School of Government and the Securities and Investments Diploma.

Welcome Ashburton’s Managing Director, Peter Bourne, reflects on the most popular news searches of 2012.

03

Jonathan Aldrich-Blake

04

Jonathan Aldrich-Blake is an Investment Manager in the Global Equities team. Jonathan joined Ashburton in 2005. He graduated from the University of Exeter with a BSc (Hons) in Engineering and holds the Investment Management Certificate (IMC), the Securities Institute Diploma, and is a Chartered Fellow of the Chartered Institute for Securities and Investments.

Macro Outlook Beyond the cliff

By Tristan Hanson We anticipate the outlook for global markets in the coming year.

Thematic Outlook Equity themes

By Jonathan Aldrich-Blake, Simon Finch, Craig Farley & Alan Le Maistre

06

The fundamental industry trends and macro considerations which are shaping our strategic roadmap.

Africa Is it time to invest in Africa?

By Paul Clark

09

Our African Investment Specialist explains why Africa is a prime investment region.

News An update on Ashburton’s latest investment events, fund launches and fund raising efforts.

10

Performance Our latest fund performance figures as at 31 December 2012.

11

Contacts Details for our contacts in Jersey, South Africa and the UK.

12

Simon Finch Simon Finch is the Assistant Investment Manager for the Chindia Equity Fund. Simon joined Ashburton in 2007 and has 11 years experience in the finance industry. Simon qualified as a Chartered Accountant in 2004 and holds the IMC designation as well as a BA (Hons) in Finance from the Nottingham Business School.

Alan Le Maistre Alan is an Assistant Investment Manager within Ashburton’s European Equities team. Alan joined Ashburton in 2007 having graduated from Cardiff University.

He holds the Investment Management Certificate (IMC) and is currently studying towards the Chartered Market Technician (CMT) qualification and passed Level I of the CFA examination in 2012.

Craig Farley Craig Farley is an Investment Manager at Ashburton with responsibility for the Chindia Equity Fund alongside Jonathan Schiessl. Craig joined Ashburton in 2003 having graduated from the University of Reading, upper second class (hons.) in Business & Management. He is currently studying for the Chartered Financial Analyst qualification (CFA).

Paul Clark Paul joined Ashburton in South Africa in January 2012 as an African Investment Specialist for the FirstRand Group. He holds a Bachelor of Engineering (Chemical) degree from the University of Stellenbosch as well as a Bachelor of Commerce (Accounting) degree from the University of the Witwatersrand, and is a CFA charter holder.

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| 2 | 3 |

Welcome

The year that was This year, though, I tried a shortcut! I took advantage of modern technology and parsed the top global searches of 2012 made on various internet search engines such as Google, Bing, and Yahoo and social media links like Twitter.

The results were generally consistent but overwhelmingly reflective of the consumption, information and technology trends which shape so much of our lives today.

Fortunately, the US elections and President Obama’s re-election did stand out as a top news event in 2012, demonstrating that politics still does matter for some. But I didn’t find too much mention of other market-moving events though; what happened to the Euro Crisis, the fast brewing Middle East tensions and China’s prolonged leadership transition?

One of the privileges I have in writing this introduction to Perspective is the license to look back over the year that was. I enjoy the process, which always unearths some forgotten aspect or two of what has been a busy calendar. It is also a useful reminder that market events are often short-lived, even though they seem all consuming at the time. There is a lot to be said for long-term investing and ignoring the short-term noise.

Apple, (which we hold in various portfolios) scored very highly in the overall search results with various iPad and iPhone releases; how frequently they seem to come now. The flop of Facebook’s much-heralded initial public offering was also there but further down the lists (we don’t own this).

Hurricane Sandy was the most significant natural disaster we faced, although the comi-tragic sinking of the Costa Concordia certainly gripped our attention. Sadly and inconceivably, the massacre of children and their teachers at Sandy Hook Elementary in December highlighted once again just how prevalent this type of senseless killing has become in the US. On a lighter note, the world celebrated the success of Olympics and Paralympics as well as the Queen’s Jubilee. En route, James Bond looked slightly uncomfortable with those corgis.

Other members of Her Majesty’s family were high up on the charts as well, although one suspects not always for the right reasons. Whitney Houston passed away and was widely mourned.

In some contrast, a portly South Korean with the unlikely name of PSY took over the world with his monster hit “Gangnam Style”. I confess to having it on my iPad but blame my children.

Markets finally went up in 2012 and pretty convincingly at that, but it did feel as if it was against investors’ better judgement. I sense there has been a steady accretion of better economic news and a dilution of the immediate market risks, which should continue to stand us in good stead for the year ahead. I feel compelled to add the now standard risk warning of heightened volatility, but in a sense this has almost become the new normal. As usual, our investment team adds more colour and depth to our outlook for 2013 and I trust you will find this as informative and useful as always.

“I sense there has been a steady

accretion of better economic news and a dilution of the immediate market risks, which should continue to stand us in good stead for the year ahead.”

Ashburton has also had a busy year. We embarked on a new strategic path earlier this year, which has resulted in us consolidating our fund range and aligning our future product development plans to those of our parent, FirstRand Group. The Ashburton brand will play a central role in the Group’s ambitious investment management plans across all our markets.

Here in Jersey, we launched the first of our new Funds, an Indian Equity Opportunities Fund, in September and have a number of exciting product initiatives planned for the New Year.

I speak for our teams in Jersey, London and South Africa when I say that we are very excited by what lies ahead. I trust you will have as rewarding and as enjoyable a year as we anticipate in 2013.

Regards

Peter Bourne Managing Director

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Beyond

the cliff

2013 Outlook

At the last minute, the US Congress agreed a deal to avoid the worst of the ‘fiscal cliff ’ tax hikes, scheduled to take effect at the start of 2013. In a compromise outcome, scheduled income tax rate increases (expiration of the Bush tax cuts) have been avoided for those earning less than $400k (i.e. the majority). However, the expiration of other tax cuts (e.g. payroll taxes rise from 4.2% to 6.2%) means a material fiscal tightening will occur in the US this year (perhaps to the tune of 1.5% of GDP).

Written by Tristan Hanson Head of Asset Allocation

Having announced further US Treasury purchases in December, we expect the Federal Reserve’s QE policy to extend into the second half of 2013 at least and possibly to year-end.

The US Furthermore, decisions over spending cuts have been delayed by two months and the US debt ceiling limit will have to be renegotiated in the first quarter. Accordingly, further wrangling between Democrats and Republicans is likely to continue for a few months yet. This fiscal tightening is likely to dampen US growth early in the year. However, the underlying recovery in US housing, labour and credit markets should support growth through the year.

Having announced further US Treasury purchases in December, we expect the Federal Reserve’s QE policy to extend into the second half of 2013 at least and possibly to year-end.

Fed Chairman Bernanke’s term ends in January 2014, which may create some policy uncertainty, although with Obama’s re-election, Janet Yellen is the frontrunner to take over which would mean a continuation of current policy.

Europe Growth in Europe is expected to remain very weak, although a gradual emergence from recession is expected. It is very plausible that a further flare up in the European sovereign debt crisis occurs at some point, although this would likely be countered by the ECB’s OMT (Outright Monetary Transactions) as a backstop response. Indeed, it may take a further “accident” in Spain to prompt the introduction of this ECB policy. While short-term risks of a Greek default were addressed at November’s Eurogroup meeting, further debt restructuring may appear necessary by late 2013. German federal elections in Autumn 2013 could play a role in the timing of any further debt relief.

Italian elections in early 2013 may also create volatility and additional euro-area risk, although the recently stated willingness of outgoing

| 4 | 5 |

In a low growth and policy-uncertain world, we believe investors will continue to put a premium on sustainable free cash flow generation and dividends. Should macro conditions accelerate, such companies will likely underperform. But from an absolute return perspective, we believe shares in such companies will generate attractive returns relative to cash or fixed income assets.

Earnings Yield 8.0

Real Cash Rate Real Bond Yield

6.0 4.0 2.0 0.0 -2.0

Mar-12

Mar-09

Mar-06

-4.0

Source: Ashburton calculations, S&P, Bloomberg as at 02/01/2013

10.0

Mar-03

Under our base case scenario, we anticipate further upside for global equity markets, although perhaps not the extent of gains seen in 2012.

US equities offer relative value: Cyclically-adjusted earnings yield versus real cash and bond yields

Mar-00

Geopolitical tensions are also likely to rise if analysts are to be believed that Iran is months away from attaining nuclear missile capability.

We expect this to be a major foreign policy challenge facing President Obama next year. The impact on global markets from an escalation in Middle East tensions may be limited so long as the oil price remains contained, although this would be a major risk. The situation presents two-way risks, a negotiated agreement with Iran would present an upside surprise, a sharp escalation in tensions a downside risk, which perhaps carries a higher probability.

Across the major currencies we believe a range-trading environment is likely to persist.

Relatively stronger economic growth in the US may lend support to the US dollar although the outcome of ongoing fiscal negotiations could weigh on sentiment. The Yen has weakened materially already following December’s election result, but we would expect the currency to generally remain on a weakening trend in 2013.

Overall, however, we expect modest outperformance from corporate bonds relative to government bonds, although to a much lesser extent than in recent years. High yield continues to look moderately attractive although may underperform equities this year.

Mar-97

Victory for Shinzo Abe and the LDP party in Japan has lifted hopes of more aggressive BoJ policy and further fiscal stimulus. This may act to weaken the yen and support growth and local equity markets. However, expectations have already risen somewhat and specific policy decisions remain to be seen.

With corporate bond yields now very low for investment grade companies, we would expect a gradual re-leveraging of balance sheets via share buybacks or debt-financed acquisitions.

This ‘equity-friendly’ activity could be an adverse development for corporate credit.

Mar-94

Growth in China is expected to accelerate early in the year in response to previous policy easing. However, we expect the acceleration to remain modest by the standards of recent decades. Should inflation or the housing market re-ignite then some policy tightening is possible as the year develops. We expect the People’s Bank of China to maintain the current policy stance for the time being, but would be ready to either tighten or indeed loosen policy if conditions require it.

We expect very muted returns (close to zero) on safe haven developed market bonds such as the US, Germany or the UK. Without an imminent change in interest rate policy, yields may remain low by historic standards but offer little scope for further decline on our base case scenario. For the time being, we expect such bonds to be negatively correlated with growth surprises and equity performance although at some future point this is likely to change.

Our current positioning within equities sees us overweight Europe and Emerging Asia, neutral Japan and underweight the US. We do see some downside risk to earnings expectations, which look high given economic growth and elevated margins. However, companies with sound balance sheets may look to expand share buybacks in order to support earnings growth.

Mar-91

Asia

Under our base case scenario, we anticipate further upside for global equity markets, although perhaps not the extent of gains seen in 2012. Valuations have re-rated somewhat on a year ago as risk premia and implied volatility have fallen in many assets.

Mar-88

The ECB appears to be unlikely to change policy in the immediate future, with a rate cut becoming less likely as financial conditions ease. We do not expect the ECB to launch any bold policy initiatives unless there is a re-emergence of financial distress.

Markets

%

prime minister Mario Monti to lead a coalition into the election is encouraging.

Emerging market bonds have been stunning performers again in 2012. We believe value opportunities are diminishing in this space, especially in hard currency denominated bonds. We expect EM fixed income returns (hard and local currency) to become more divergent over time on a country by country basis. However, we still find some EM currencies such as the Mexican peso, Malaysian ringgit and Korean won attractive.

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Equity

themes

Our strategic roadmap for equities includes top-down views derived from fundamental industry trends and macro considerations.

Our equity methodology is a thematically led process; we identify macro drivers, derived from fundamental industry trends, to create global and regional themes. This forms the basis of our long-term top-down view.

Our bottom-up process is then employed to identify individual stocks that have exposure to these themes.

Here we discuss some current examples within our Innovation, Energy and Emerging Growth themes including interactive mobile devices, the death of cheap oil, rural consumption in India and the rise of pharmaceutical and healthcare products in both India and China. We explain why we believe these examples have investable merit and how we go about investing in the underlying trends.

Energy

Evolving themes

The roadmap and its sub-clusters express medium-term thematic views that can evolve over time.

Macro induced

Strategic equity themes (Q1 2013)

Deleveraging

Fundamental industry trends

Emerging Growth

Innovation

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Innovation

by Jonathan Aldrich-Blake Innovation encompasses the ever changing world in which we live, as we look to invest in the ideas and innovations that will change and lead industries. Undoubtedly the biggest change and evolution we have seen in recent years has been the invention of the internet.

This has transformed the way we view and interact with information, data and media.

The evolution of mobile data has resulted in the proliferation of mobile devices that interact with the internet. Some estimates say that at peak times, 70% of internet traffic is related to streaming media, mainly videos and films.

The key to the success of these devices has been the evolution of the ‘thin client’: end devices that do not require power intensive computing ability, as this is done in the ‘cloud’ and the data or media is streamed to the device. This has only become possible in recent times because of the speed and quality of data that can be sent over the air. Increasingly, mobile data speeds are comparable, and often better, than home internet speeds.

The penetration of the smart phone is still in its infancy in many geographies, and with low cost devices now becoming available to the masses, it has brought down the threshold at which emerging economies can afford to enter the computing world. Within our portfolios, we play this theme through names which have a dominant position or have intellectual property protection over their assets, as the general supply chain tends to be very commoditised.

Energy – Death of Cheap Oil

by Alan Le Maistre In 2012, a large portion of the outperformance of our European stocks was fuelled by oil.

Our Death of Cheap Oil Supply theme was the greatest alpha contributor in a broader market that was up almost 18%. It may be surprising then to learn that across the broader European market, energy was the second worst performing sector over the year, falling 4%. This dislocation in performance between our energy holdings versus our benchmark holdings highlights the heterogeneous nature of the sector and supports our long held belief that high energy prices (Brent crude averaged $109/barrel in 2012) are not capitalised equally by all energy stocks and that outperformance of the sector requires careful selection.

The ‘macro malaise’ was a large driver of the weakness in the energy sector in 2012, as the markets focused on weak Chinese demand and a struggling Europe!

If we look past the macros and into the specific companies, we also saw many of the majors troubled by cost over runs (often due to the increasingly complicated engineering of wells) and production misses (often due to surprisingly high depletion rates). Both of these issues require increased (per barrel) spend. Consequently, we are confident of the continued increase of budgetary spend devoted to engineering, exploration and production – an important driver for oil service companies.

The US domestic production increase also drew a disproportionately high level of focus.

US oil production is effectively ‘land locked’ (due to the inability for the US to export) therefore the impact on international blends will, in all likelihood, be moderate. The greatest implications will be felt by industries being helped or hindered (depending on their locations) by the resulting changing volumes and composition of refined products. This will likely bring huge investment opportunities going forward.

Risks to the global oil supply abound in Nigeria, Iraq and Russia and of course the wildcard that is Iran remains...

When considering oil prices (outside of the US), some of the “upside” risks are being largely ignored and alongside the oil services companies, selective majors now present an entry opportunity with data out of China improving refinery runs and increased crude oil demand. Risks to the global oil supply abound in Nigeria, Iraq and Russia and of course the wildcard that is Iran remains.

We remain optimistic for energy sector performance in 2013.

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Emerging Growth Consumer and Lifestyle

by Craig Farley A major component of our emerging market consumer and lifestyle theme is rural consumption within India. So far, the Indian growth story that we know about (positive demographics, a highly educated workforce, increasing household incomes, urbanisation and rising aspirations amongst the youth) and that is driving GDP growth has centered on the 50 cities with populations of over one million people. In reality, 70% of the country’s population lives in rural India where the growth profile is more compelling than metro and tier one cities and where per-capita income spreads are narrowing rapidly.

One of the major trends we are seeing is that the rural consumer is, in effect, becoming non-rural. Until recently, generations of workers have been solely dependent on agriculture, which in turn was reliant on two harvests a year, leading to volatility and uncertainty of income. This is now being supplanted by regular, non-farm income. In addition, rural incomes generated in prospering nearby towns are high, but expenditures are far less, leading to a disposable surplus that is three times higher in proportionate terms than residents in big cities. By 2020, an estimated 150 million

people will have shifted from the poor (earning less than one US dollar a day) to the middle class. In essence, the population pyramid will shift to a population diamond.

Within our India portfolio, we directly play this theme through a white goods manufacturer, a rural housing loan finance provider and a cement company that supplies only rural Indian construction companies for home construction.

We also recently added a national cable television provider to the portfolio that will be a major beneficiary of an India governmentsupported shift to digitalisation. This is a four phase process that successfully began two months ago in India’s four largest cities and will be rolled out across the country by 2014.

By 2020, an estimated 150 million people will have shifted from the poor (earning less than one US dollar a day) to the middle class.

Emerging Growth Pharmaceutical and Healthcare

by Simon Finch “We’re not getting any younger” is an oft-used throw away phrase, but this is one theme that we are running within the Asian portfolios.

Whilst it is widely recognised that Japan for instance has a rapidly ageing population, China and India’s demographics are quickly becoming an area of focus for investors seeking to capture the early growth potential of pharmaceutical and healthcare companies in these jurisdictions. Coupled with the rise in GDP per capita, and therefore increased spending capacity of the demographic, we are witnessing new audiences for these types of goods being uncovered in both India and China. In fact, a number of Indian and Chinese pharmaceutical and healthcare companies are not only supplying and selling into their domestic markets, but are also making successful forays into the western developed markets, either on their own, or through strategic joint ventures.

As one might expect, pharmaceutical manufacturers have taken a little longer to start benefitting from cheaper labour and lower operational costs, largely due to skill-set needs and regulatory barriers.

So, given ageing, as well as increasingly richer populations, both India and China are now rapidly moving up the consumption curve with regards to pharmaceutical and healthcare products. Trends that have been seen in the western world such as obesity are also now impacting on Asian developing nations, with diabetes one disease which is anticipated to have a significant impact on both the region.

One positive trend has been the rise of new pharmaceutical products being brought to market by Indian companies such as SunPharma. Positive expectations for their pipeline of drugs to be launched both domestically and in the US are a sign that a growing number of Indian as well as Chinese pharmaceutical and healthcare companies are rivalling the more traditional pharmaceutical manufacturers.

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Is it time to invest in Africa?

Written by Paul Clark African Investment Specialist

The strong growth experienced over the past decade is forecast to continue with Africa being one of the fastest growing regions for the next five years.

The new Ikeja Mall which opened in Lagos, 2012.

Investing in Africa means different things to different people. For many it is investing in South Africa that comes to mind first. After all, South Africa is Africa’s largest economy with the most sophisticated financial markets.

This connection reinforces the thought that investing in Africa relies on a resources or commodity cycle theme (the Johannesburg Stock Exchange is particularly resource heavy). This is also true for investors who focus on “African” shares listed on global exchanges (e.g. on AIM in London or the TSX in Toronto) who are invariably invested in resource linked companies (as most offshore listings are in this sector).

However, the rest of Africa paints a different picture of the sources of economic growth.

According to McKinsey, during the strong commodity price boom from 2002 to 2007, only 24% of the change in Africa’s real GDP growth came from resources, indicating a strong trend of economic growth from other sectors. During 2008 and especially 2009, as the globe fell into recession and commodity

prices fell, Africa remained one of the few regions in the world where GDP continued to grow - indicating that there is more going on in the continent than simply a resource play.

The strong growth experienced over the past decade is forecast to continue, with Africa being one of the fastest growing regions for the next five years.

GDP growth Africa ex SA

Advanced economies

SSA or ex SA

7 6 5 4 3 2 1 0

2012

2013

2014

2015

2016

2017

Source: IMF World Economic Outlook - October 2012

8

The unstoppable forces of urbanisation and strong demographics will continue to support this trend as more consumers will be purchasing their goods and services rather than subsisting in rural areas. This has led to growth in formal retail shopping patterns, as opposed to previous informal market places, and the Ikeja Mall that opened in 2012 in Lagos, Nigeria is a good example of this.

African equity markets outside of South Africa have yet to recover from the risk aversion that saw them decline with global markets in 2008.

The generally improving political landscape across the continent is leading to improved and more stable economies. Unfortunately, change is usually resisted by those with vested interests and it is these stories that tend to dominate the media rather than the good news that is happening every day.

Although Frontier market investing (as Africa ex South Africa is) is not for the faint hearted, for those who have taken the time to understand the politics and economics as well as to visit the companies across the continent, opportunities with considerable potential return can be discovered.

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News Ashburton Indian Equities Opportunities Fund Launch

Marathon Run On 7 October 2012, the Jersey office entered two relay teams into the annual Jersey marathon relay race.

Both teams, made up of a mix of investment managers, marketing and finance staff, successfully crossed the finishing line, with one group clocking in at 3 hours and 8 minutes, ranking an impressive 13th out of 290 teams.

Ashburton launched the Indian Equity Opportunities Fund on Monday 10 September 2012. This is an expert fund targeting sophisticated and institutional investors.

The aim of the Fund is to achieve long-term capital growth through equity or equity related investments predominantly in the stockmarkets of India. The Fund also invests in companies traded in other markets where a significant proportion of growth in their underlying business is derived from India.

This new Fund offers investors access to one of the largest, fastest growing and most exciting economies in the world through a well diversified portfolio of Indian equities. It is managed on an active and unconstrained basis, allowing investment in a variety of sectors and companies on the basis of conviction rather than being driven by a

benchmark and is managed by a team that has been actively investing in Indian companies since 1997.

The Indian Equities Opportunities Fund seeks to deliver alpha through a combination of a rigorous top-down thematic overlay with a bottom-up stock selection process, with particular emphasis on the quality of management and consistency of earnings.

Currently you must be an ‘Expert Investor’ or ‘Sophisticated investor’ as defined by the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 of Mauritius to invest in this Fund. An expert investor is an investor making an initial investment of not less than US$100,000 or its equivalent in any currency in the Fund.

Ashburton hopes to be in a position to offer a retail version of the Indian Equity Opportunities Fund within the next few months.

Fund Managers

Around the World in 80 Minutes In November 2012, Ashburton hosted a series of investment briefings in South Africa and Jersey, the theme of which was ‘Around the World in 80 minutes’.

Speakers Tristan Hanson, Head of Asset Allocation, and Peter Bourne, Managing Director, explored themes, opportunities and new frontiers in global markets.

We look forward to welcoming our Jersey audiences again in February 2013, whilst our annual South African conferences are scheduled to take place mid-2013 in Johannesburg, Cape Town and Durban.

Ashburton finds appeal in the 1980s The Jersey team also stepped back in time on 16 November 2012 to raise money for the BBC’s annual Children In Need appeal.

Jonathan Schiessl

Craig Farley

Simon Finch

Staff dressed up in 1980s outfits for the day, with elaborate costumes ranging from a team of punk rockers and a Flash Dance quartet to Darth Vader, the Karate Kid and the Ghostbusters crew.

The ‘80s theme was chosen to coincide with celebrating Ashburton’s 30th year in business and the day raised almost £1500 (R21,000) for the BBC fundraising appeal.

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Performance % Growth

| 10 | 11 |

as at 31 December 2012

YTD

1 year

3 year

5 year

10 year

Since Launch

Launch Date

Yield (%)

Sterling Asset Management - Accumulating*

6.53

6.53

15.62

10.06

71.00

257.76

04/02/92

n/a

MSCI, JPM & Cash GBP (Hedged)

6.07

6.07

10.84

8.50

60.69

254.54

-

-

Sterling Asset Management - Distributing*

6.28

6.28

16.46

10.65

70.69

283.84

01/01/92

0.71

MSCI, JPM & Cash GBP (Hedged)

6.07

6.07

10.84

8.50

60.69

256.12

-

-

Dollar Asset Management - Accumulating*

6.69

6.69

13.85

2.52

69.05

216.58

04/02/92

n/a

MSCI, JPM & Cash USD (Hedged)

5.98

5.98

10.55

6.39

47.34

-

-

-

Euro Asset Management - Accumulating*

6.29

6.29

17.74

8.83

-

53.99

25/04/03

n/a

MSCI, JPM & Cash EUR (Hedged)

5.69

5.69

10.23

6.43

-

44.61

-

-

Multi Asset Cautious Fund GBP

3.52

3.52

11.56

4.95

-

17.89

19/06/06

0.45

MSCI, JPM & Cash GBP (Hedged)

6.07

6.07

10.84

8.50

-

21.52

-

-

Multi Asset Balanced Fund GBP

4.36

4.36

14.38

5.97

-

22.22

19/06/06

n/a

MSCI, JPM & Cash GBP (Hedged)

6.07

6.07

10.84

8.50

-

21.52

-

-

Multi Asset Balanced Fund USD

5.19

5.19

13.17

0.82

-

23.39

19/06/06

n/a

MSCI, JPM & Cash USD (Hedged)

5.98

5.98

10.55

6.39

-

19.18

-

-

Multi Asset Balanced Fund EUR

4.08

4.08

15.13

-

-

4.43

18/02/08

n/a

MSCI, JPM & Cash EUR (Hedged)

5.69

5.69

10.23

-

-

8.67

-

-

Multi Asset Aggressive Fund GBP

7.13

7.13

13.65

-1.81

-

13.41

19/06/06

n/a

12.56

12.56

11.58

-18.12

-

-4.36

-

-

7.83

7.83

11.35

-15.62

59.85

294.99

01/01/92

nil

MSCI World TR GBP

11.42

11.42

23.54

18.84

115.49

356.46

-

-

Global Dollar International Equity Fund PC

12.47

12.47

10.82

-26.37

69.95

2.60

06/04/00

nil

MSCI World TR USD

16.54

16.54

24.35

-2.96

117.57

25.88

-

-

Chindia Equity Fund

17.25

17.25

-10.83

-37.56

-

-2.51

01/12/06

nil

Chindia Benchmark

24.69

24.69

5.70

-16.54

-

35.50

-

-

European Equity Fund PC

21.53

21.53

28.41

-10.73

153.86

251.37

06/01/97

nil

MSCI Europe TR USD

18.09

18.09

22.05

-8.25

87.93

151.82

-

-

Chindia Equity Fund - £ Feeder PC

10.78

10.78

-11.89

-24.10

-

16.35

01/12/06

nil

European Equity Fund - £ Feeder PC

18.15

18.15

16.58

-1.99

-

30.06

01/12/06

nil

0.63

0.63

1.64

7.68

-

32.27

25/10/02

0.25

-0.10

-0.10

0.05

2.64

-

16.97

25/10/02

0.01

Multi Asset Funds

MSCI World Hdg PR GBP Equity Funds Global Sterling International Equity Fund PC

Feeder Funds

Money Market Funds Sterling Money Market Fund Dollar Money Market Fund

Please note: The comparative performance benchmarks for the Multi Asset Funds have changed to composite benchmarks, which we feel are more representative of the underlying asset allocation of each Fund. Abbreviations: MSCI: Morgan Stanley Capital International Global Equity Index, JPM: JP Morgan Global Bond Index.

Please note that the Euro Money Market Fund was closed on 30 November 2012. Performance data up to that date is available by emailing enquiries@ashburton.com FOR PROFESSIONAL ADVISERS ONLY. Issued by Ashburton (Jersey) Limited. Registered Office 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. Regulated by the Jersey Financial Services Commission.

Figures are calculated on a bid to bid price basis, ignoring initial charge, with gross income reinvested. The value of investments, and the income from them, can go down as well as up, is not guaranteed, and you could receive back less than you invested. This could also happen as a result of changes in the rate of currency exchange, particularly where overseas securities are held. Past performance is not necessarily a guide to future performance. If you undertake investment business with a non-UK firm, you will be excluded from the benefit of the rules and regulations made under the UK’s Financial Services and Markets Act 2000, including the UK Financial Services Compensation Scheme. Approved for issue in the UK by FirstRand Bank Limited (London Branch) whose Registered office is at 20 Gracechurch Street, London EC3V 0BG and which is authorised and regulated by the UK Financial Services Authority.

Global Contacts JERSEY

SOUTH AFRICA

Ashburton (Jersey) Limited PO Box 239 17 Hilary Street St Helier Jersey JE4 8SJ

Johannesburg Merchant Place 1 Fredman Drive Sandton 2196 South Africa

Cape Town The Pavilion 155 Campground Road Newlands 7700 South Africa

Gavin Fraser Direct dial: +44 (0)1534 512234 Email: gavin.fraser@ashburton.com

David Christie Direct dial: +27 (0)82 897 6695 Email: david.christie@ashburton.co.za

Adam Benzimra Direct dial: +27 (0)72 268 8791 Email: adam.benzimra@ashburton.co.za

Tom Zambon Direct dial: +44 (0)1534 512010 Email: tom.zambon@ashburton.com

Claire Davies Direct dial: +27 (0)83 624 4286 Email: claire.davies@ashburton.co.za

Lara Ellis Green Direct dial: +27 (0)83 283 2227 Email: lara.ellisgreen@ashburton.co.za

Kellie Christian Direct dial: +44 (0)1534 512118 Email: kellie.christian@ashburton.com

Adriaan Van der Merwe Direct dial: +27 (0)82 450 2142 Email: adriaan.vandermerwe@ashburton.co.za

Stefan Heiberg Direct dial: +27 (0)82 560 3814 Email: stefan.heiberg@ashburton.co.za

UK

Trevor Lee Direct dial: +27 (0)82 458 2298 Email: trevor.lee@ashburton.co.za

Durban Block C Torino Court 4 Crooked Lane Hillcrest 3610 South Africa

London 5th floor 20 Gracechurch Street London EC3V 0BG United Kingdom

Clare Buthelezi Direct dial: +27 (0)72 064 6561 Email: clare.buthelezi@ashburton.co.za

Terry James Direct dial: +44 (0)207 939 1803 Email: terry.james@ashburton.com

Issued by Ashburton (Jersey) Limited. Registered Office 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. The views expressed in this document represent the collective views of the Ashburton investment team and its external advisers, which will change with altering market conditions and may not necessarily be reflected in the composition of portfolios managed by Ashburton. The value of investments, and the income from them, can go down as well as up, is not guaranteed, and you could receive back less than you invested. This could also happen as a result of changes in the rate of currency exchange, particularly where overseas securities are held. Past performance is not necessarily a guide to future performance.

Ashburton (Jersey) Limited and Ashburton Fund Managers Limited are regulated by the Jersey Financial Services Commission. Ashburton (Jersey) Limited is also registered as a Foreign Investment Services Provider in South Africa in accordance with Section 8 of the Financial Advisory & Intermediary Services Act 2002. If you undertake investment business with a non-UK firm, you will be excluded from the benefit of the rules and regulations made under the UK’s Financial Services and Markets Act 2000, including the UK Financial Services Compensation Scheme. Approved for issue in the UK by FirstRand Bank Limited (London Branch) whose Registered office is at 20 Gracechurch Street, London EC3V 0BG and which is authorised and regulated by the UK Financial Services Authority.

Debbie Miskin Direct dial: +27 (0)82 449 8639 Email: debbie.miskin@ashburton.co.za