GLACIER INVEST - MMR Finansiële...

GLACIER INVEST Leaders in Discretionary Fund Management

MMRInves tment Committee Pack

Q1 | 2019

AGENDA

1. Matters Arising

a. Portfolio Changes

b. Investment Committee – Investment Policy Statement

c. Certificate of attendance (Exhibit A)

2. Economic Review

3. Asset Manager Views

4. 2 New Ideas

a. Sanlam Select Strategic Income (Terebinth Capital)

b. Sanlam Select Wealth Protector (Truffle)

5. Portfolio Review

6. Appendices

a. Peer Comparisons

b. Total Expense Ratios – Buy List

7. Disclaimer

1

GLACIER INVEST: TRADES_ELR OF INVESTMENT COMMITTEE MEETING

This document is intended for use by financial intermediaries. The information in this document is provided for information purposes only and any opinions expressed

and information provided by any employee, off icer or director of Sanlam and any of its subsidiar ies dur ing and pursuant to this presentat ion should not be construed as the

render ing of advice to cl ients. Although we have taken reasonable steps to ensure the accuracy of the information, neither Sa nlam nor any of its subsidiaries accept any

l iabil i ty whatsoever for any direct, indirect or consequent ial loss aris ing f rom the use of , or reliance in any manner on the information provided in this document. Glacier

Financial Solut ions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Val ley 7536 | Email c l [email protected] | Tel +27 21 917 9002 / 0860 452

364 | Fax +27 21 947 9210 | Web www.glacier.co.za | Twitter @GlacierBySanlam | Reg No 1999/025360/07 | Licensed Discret ionary Financial Services Provider FSP 770,

trading as Glacier Invest. Sanlam Mult i -Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8 | Tyger Val ley 7536 | Tel +27 21 950 2600 | Fax

+27 21 950 2126 | Web www.smmi.com | Reg No 2002/030939/07 | Licensed Discret ionary Financial Services Provider , act ing as Jurist ic Representat ive under the Glacier

Financial Solut ions FSP 770

________________________________________________________________________________________________________________________________________________________

___________________________________________________________________________________________

MMR IC Meeting held on 26 February 2019 in Vredendal.

Portfolio Review

Portfolio name: MMR Income

Changes on Portfolio: As per below

Portfolio Weighting

Fund names Old New Change

Coronation Strategic Income 25% 25% 0%

Prescient Income Provider 25% 25% 0%

SMM Defensive Fof 10% 10% 0%

SIM Active Income 20% 20% 0%

SIM Inflation Plus 10% 10% 0%

Sanlam Select Defensive Balanced 10% 10% 0%

2

__________________________________________________________________________________________________________________________________________________________


and information provided by any employee, off icer or director of Sanlam and any of its subsidiar ies dur ing and pursuant to th is presentat ion should not be construed as the



Financial Solut ions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Val ley 7536 | Email c l ient.services@gl acier.co.za | Tel +27 21 917 9002 / 0860 452


trading as Glacier Invest . Sanlam Mult i -Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8 | Tyger Val ley 7536 | Tel +27 21 950 2600 | Fax

+27 21 950 2126 | Web www.smmi.com | Reg No 2002/030939/07 | Licensed Discret ionary Financial Services Provider, act ing as Ju rist ic Representat ive under the Glacier


________________________________________________________________________________________________________________________________________________________

Portfolio name: MMR Cautious


Portfolio Weighting


ABSA Property Equity 4% 2% 2%

Coronation Balanced Defensive 10% 10% 0%

Foord Conservative 17% 0% 17%


Prudential Inflation Plus 10% 10% 0%

Rezco Stable 10% 10% 0%

SATRIX Low Equity 15% 15% 0%


Sanlam Select Defensive Balanced 0% 10% 10%

Allan Gray Stable 0% 10% 10%

Portfolio name: MMR Moderate


Portfolio Weighting names



Foord Balanced 9% 0% 9%

Investec Opportunity 9% 11% 2%

Nedgroup Opportunity 11% 13% 2%

Prudential Inflation Plus 10% 13% 3%

PSG Flexible 10% 12% 2%

Rezco Value Trend 9% 9% 0%

SMM Balanced Fof 7% 7% 0%


Truffle SCI Flexible 5% 5% 0%


3

__________________________________________________________________________________________________________________________________________________________


and information provided by any employee, off icer or director of Sanlam and any of its subsidiar ies dur ing and pursuant to th is presentat ion should not be construed as the



Financial Solut ions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Val ley 7536 | Email c l ient.services@gl acier.co.za | Tel +27 21 917 9002 / 0860 452


trading as Glacier Invest . Sanlam Mult i -Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8 | Tyger Val ley 7536 | Tel +27 21 950 2600 | Fax

+27 21 950 2126 | Web www.smmi.com | Reg No 2002/030939/07 | Licensed Discret ionary Financial Services Provider, act ing as Ju rist ic Representat ive under the Glacier


________________________________________________________________________________________________________________________________________________________

Portfolio name: MMR Moderate Aggressive


Portfolio Weighting



Foord Balanced 12% 0% 12%

Investec Global Franchise Feeder Fund 2% 2% 0%

Investec Opportunity 10% 10% 0%

Prudential Balanced 12% 12% 0%

PSG Flexible 10% 10% 0%

Rezco Value Trend 15% 15% 0%

SMM Balanced Fof 15% 15% 0%

SATRIX Balanced Index 12% 12% 0%

Truffle SCI Flexible 7% 7% 0%

Abax Balanced Prescient 0% 12% 12%

Investment Committee Register Sign Off

The committee meeting was closed and signed off by all attendees.

Name Signature

Marlize Roux

Stephan Venter

Esta Theron

Andre van der Merwe

Dupie Du Plessis

Braam de Klerk

Lizelle van Zyl

4

Investment Committee Investment Policy Statement Summary Document

The SMMI Investment Committee Framework offers intermediaries input in the process of multi management. This framework provides investment committee members a platform to share their research and views while adhering to the fundamental principles of investing stipulated in this investment policy document.

Investment Philosophy

The Investment Committee’s (here on referred to as the “committee”) Investment Philosophy is built around the belief

that markets are generally inefficient over the short term and can be exploited through different strategies over the

longer term.

These strategies include the following:

• Selection of skilful managers (Manager selection)

• Combination of complementary managers (Portfolio construction via optimisation methods)

• Successful tactical asset allocation and/or risk management

The committee believes that this can only be accomplished successfully through rigorous research. The committee

believes that a long term investment horizon improves the likelihood of achieving superior investment returns. The

committee however accepts that maintaining a long term horizon could detract from returns in the shorter term based

on prevailing market conditions, but is necessary to achieving long term superior returns.

The committee believes that risk should be managed by holding a diversified portfolio of asset class and investment style, but is cognisant of the risks associated with over diversification in achieving its long term superior

returns.

Investable Universe

The objectives of investment portfolios will be achieved by investing in collective investment schemes, managed by

specialist investment managers. While the investment universe consists of the total universe of collective investment

schemes across asset class, sector and region, the committee understands that not all asset managers or funds may

qualify as the committee believes that skill is rare. Therefore, only a subset of the universe of funds are able to be

invested in based on the asset managers ability to outperform and the use or purpose the fund serves in the overall

portfolio.

Criteria and selection of underlying managers

The manager selection process aims to identify managers with superior skill relative to their peers. Any fund for

consideration must have been researched both qualitatively and quantitatively, and must be rated via the SMMI buy-list or Glacier Shopping List.

The investment committee may put forward a request for a new strategy or fund to be analysed for placement onto the

Buy-List. In doing so the committee firstly provides research showing that the fund adheres to the adequate asset size

or percentage allocation, has a sufficiently long enough track record and has the ability to offer superior long term

performance. The committee will then have to substantiate why it believes this manager has skill in this specific

category/strategy.

Important is that the committee would not terminate a manager due to shorter term underperformance; given the

prevailing market conditions aren’t suitable to the manager’s investment philosophy and process, as these

5

occurrences would be expected. The incumbent buy-list managers will therefore not automatically be terminated

within the portfolios and/or the buy-list in the event of explainable short term poor performance. Given the committee

anticipates managers to underperform in different market cycles; the portfolio will tactically be adjusted to take into

account the prevailing market conditions and the committee’s expectation for the incumbent managers within each

portfolio. A fund may be removed from the buy-list if there are any material changes to the investment team, or if any

quantitative or qualitative concerns arise.

Tactical changes and decision making process

While the Investment Committee believes in a long term approach to managing portfolios to produce long term

superior returns, should compelling and robust research be presented by committee member/s that suggest a tactical

manager change (be it additions, omissions, up-weighting or down-weighting of a fund/manager), underlying

funds/managers may be tweaked so as to benefit from the prevailing market conditions.

Market and Manager Research will form the cornerstone of the any tactical movements within the Investment

Committee Framework. Additionally individuals within the committee may offer their views on the markets and

substantiate their view with research highlighting what direction (overweight/underweight) they would prefer for the

asset class in question.

These tactical changes will be tabled at the quarterly Investment Committee meetings and a decision will be made by

the close of the meeting. This decision will be defined in terms of direction, as well as weighting per asset class and

will adhere to the investment guidelines. The over-riding view within tactical asset allocation however vests with the

asset manager (SMMI) and in cases where opposing views are tabled at the investment committee, the appointed asset manager reserves the right to veto changes tabled.

The committee will refute any recommendations which aren’t within mandate and if the current view breaches

mandate parameters, the committee will also request the portfolio be rebalanced closest to strategy but within

mandate. Intra quarter requests will also be tabled at the next Investment Committee meeting.

Trading and rebalancing

The committee agrees that tactical changes proposed intra quarter or at the Investment Committee meetings will be

implemented within an agreed period after the Investment Committee meeting. In addition to the quarterly Investment

Committee meeting, the committee will make provision for ad hoc meetings/interactions if major exogenous changes

are experienced in financial markets. These exogenous factors include, but are not exclusive to, potential market

crashes based on contagion, any large factors that could have dire consequences on the market, as well as key

changes which will influence the buy-list.

6

INVESTMENT COMMITTEE MEETING

“Exhibit A”

1. Did the intermediary provide quantitative research feedback i.e. research onthe manager vs its peers and benchmarks

2. Did the intermediary provide qualitative research feedback i.e. offered assetallocation and manager views and opinions

3. Did the intermediary provide input during discussion which indicate that theintermediary did research on the portfolio

4. Did the intermediary offer insight into views pertaining to the TAA of the portfolio

Signed at ……………………………………… on……………………………………… 2019

Intermediary signature ………………………….

Intermediary name ……..…………….…….

Chairman signature ………………….………

Chairman name ………………………….

7

INVESTMENT REVIEWAsset Allocation

April 2019

8

ASSET CLASS SUMMARY

ASSET CLASS SUMMARY IN RANDS

Source: IRESS, Bloomberg (2019)

Periods up to 31 Mar 2019 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year

ALSI 1.56% 7.97% 2.71% 5.04% 5.68% 6.50%

SWIX 1.25% 6.01% 1.78% 0.43% 3.73% 6.17%

Capped SWIX -0.18% 3.85% -0.09% -2.55% 2.05% 5.10%

SAPY -1.46% 1.45% -2.590% -5.68% -3.84% 5.63%

ALBI 1.33% 3.81% 6.66% 3.46% 10.11% 8.33%

BARCLAYS SA INFLATION BOND INDEX -0.85% 0.33% 0.56% -3.92% 2.26% 4.37%

STEFI Composite 0.61% 1.77% 3.59% 7.26% 7.43% 7.01%

MSCI WORLD 3.92% 12.76% -0.75% 26.60% 9.95% 13.74%

MSCI EMERGING MARKETS 3.42% 10.18% 3.48% 12.68% 9.97% 10.51%

JP Morgan Global Aggt 4.16% 2.72% 5.84% 22.27% 0.68% 7.79%

JPM EM BONDS 3.70% 6.43% 7.47% 24.86% 3.35% 11.32%

EPRA / NAREIT Dev Mrkts Property 6.32% 15.14% 10.65% 39.46% 6.01% 14.38%

RAND vs US$ -2.50% -0.25% -1.87% -17.84% 0.67% -6.12%

9

DEVELOPED AND EMERGING MARKETS ($ )G R O W T H A N D Q U A L I T Y FAV O U R E D O V E R VA L U E I N Q 1 2 0 1 9

Source: Bloomberg, MSCI (2019)

1.37 0.282.44 2.58 2.96

0.83 0.121.55

12.6310.38

14.9113.14

15.71

9.897.83

12.05

4.552.27

6.78 6.979.27

-7.15-5.27

-9.52-15

-10

-5

0

5

10

15

20

MS

CI W

orld

MS

CI

Wor

ld V

alue

MS

CI

Wor

ld G

row

th

MS

CI

Wor

ld M

omen

tum

MS

CI

Wor

ld Q

ualit

y

MS

CI

Em

erg

ing

Mar

kets

MS

CI

EM

Val

ue

MS

CI

EM

Gro

wth

Re

turn

(%

)

Mar Q1 1 Year

SA STYLE PREMIA (ZAR)L O W B E TA A N D G R O W T H W E R E T H E W I N N E R S I N Q 1 2 0 1 9

Source: Bloomberg, S&P, MSCI (2019)

4.72

-2.98-1.91

-0.47

3.31

-2.89

10.83

-0.25 -0.93

0.69

11.06

1.75

9.49

-8.09 -8.58-6.84

9.91

-4.12

(10.00)

(5.00)

-

5.00

10.00

15.00

SA

Gro

wth

SA

Va

lue

SA

Low

Vol

atili

ty

SA

Qu

alit

y

SA

Lo

w B

eta

SA

Mom

ent

um

Re

turn

(%

)

Mar Q1 1 Year

10

RISK WAS REWARDED IN Q1 2019FA A N G S , N A S P E R S , R E S O U R C E S H A R E S W E R E T H E W I N N E R S

Source: Bloomberg (2019)

IT

Real Estate

Energy

IndustrialsConsumer Discretionary

Materials

Consumer Staples

Communication Services

Utilities

Financials

Health Care

0

0.5

1

1.5

2

2.5

3

3.5

0 5 10 15 20 25

Con

trib

utio

n to

Tot

al R

etur

n

Total Return

Energy

Materials

Consumer Discretionary

Consumer Staples

Real Estate

Communication Services

Financials

Industrials

Information Technology

Health CareUtilities

-1

0

1

2

3

4

5

-50 -40 -30 -20 -10 0 10 20 30

Con

trib

utio

n to

Tot

al R

etur

nTotal Return

MSCI World ($) by Sector Performance ALSI (ZAR) by Sector Performance

THEMES

11

GLOBAL THEMESU N C E R TA I N T Y R E M A I N S C E R TA I N I N A S L O W E R G R O W T H E N V I R O N M E N T

Source: Hedgeye (2019)

S E N T I M E N T I N D I C ATO R S A C R O S S E C O N O M I E S H AV E S L O W E DA L L PA R T S O F T H E W O R L D E C O N O M Y A R E L O S I N G M O M E N T U M


US Confidence

-20

0

20

40

60

80

100

-2.5

0

2.5

5

7.5

May

-20

09

No

v-2

009

May

-20

10

No

v-2

010

May

-20

11

No

v-2

011

May

-20

12

No

v-2

012

May

-20

13

No

v-2

013

May

-20

14

No

v-2

014

May

-20

15

No

v-2

015

May

-20

16

No

v-2

016

May

-20

17

No

v-2

017

May

-20

18

No

v-2

018

Business (LHS) Consumer (RHS)

Eurozone Confidence

-5-4-3-2-1012345

-2.5

0

2.5

Ma

y-20

09

No

v-20

09

Ma

y-20

10

No

v-20

10

Ma

y-20

11

No

v-20

11

Ma

y-20

12

No

v-20

12

Ma

y-20

13

No

v-20

13

Ma

y-20

14

No

v-20

14

Ma

y-20

15

No

v-20

15

Ma

y-20

16

No

v-20

16

Ma

y-20

17

No

v-20

17

Ma

y-20

18

No

v-20

18

Consumer Business

The worsening outlook has sparked warnings from the IMF, who said the fund would cut its growth forecasts.The WTO has said the continued threats of trade skirmishes had weakened forecasts.

12

S E N T I M E N T I N D I C ATO R S A C R O S S E C O N O M I E S H AV E S L O W E DA L L PA R T S O F T H E W O R L D E C O N O M Y A R E L O S I N G M O M E N T U M


OECD Confidence

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

-4

-2

0

2

Jan

-201

1

Jul-2

011

Jan

-201

2

Jul-2

012

Jan

-201

3

Jul-2

013

Jan

-201

4

Jul-2

014

Jan

-201

5

Jul-2

015

Jan

-201

6

Jul-2

016

Jan

-201

7

Jul-2

017

Jan

-201

8

Jul-2

018

Jan

-201

9

Business (LHS) Consumer (RHS)

The worsening outlook has sparked warnings from the IMF, who said the fund would cut its growth forecasts.The WTO has said the continued threats of trade skirmishes had weakened forecasts.

“ G R O W T H S L O W D O W N , P R E C A R I O U S R E C O V E RY ”S L O W I N G G R O W T H W I T H I N F L AT I O N A R Y P R E S S U R E S S TA B L E


No serious threat of synchronised recession.

The slowdown has led to a lowering of expected interest rate hikes by the US and Europe.

GDP Growth

6.6

2.9

1.9

0.7

6.2

2.6

1.6

1.5

6.0

1.9

1.5 2.0

0

2

4

6

8

China US Eurozone South Africa

2018e 2019e 2020e

Inflation

2.2

2.4

1.7

4.7

2.3

2.2

1.6

5.3

2.2

2.2

1.6

5.3

0

2

4

6

China US Eurozone South Africa

2018e 2019e 2020e

13

-6

-4

-2

0

2

4

6

Apr-1962 Apr-1969 Apr-1976 Apr-1983 Apr-1990 Apr-1997 Apr-2004 Apr-2011 Apr-201810Y-2Y 10Y-3M

MUDDLING ALONG AS AUTUMN ARRIVESS L O W E R G R O W T H D O E S N O T M E A N R E C E S S I O N

Source: Bloomberg, Sanlam Investments, JP Morgan Asset Management (2019)

Inversion without recession

Inversion prior to recession

LOCAL THEMESE S K O M R E M A I N S I N F O C U S A H E A D O F T H E E L E C T I O N S

The poor public finances coupled with concern about the global economy may be keeping business sentiment weak, as evidenced by the contraction in capital investment in 2018.

14

TO W H AT E X T E N T I S A D O W N G R A D E P R I C E D I N ?R AT I N G S W AT C H !

Source: Prescient Investment Management, Sanlam Investments (2019)

• With Brazil already rated junk by all threeagencies, it is tempting to say that thecredit markets have already priced in adowngrade for SA.

• The IMF estimates there is still some$1.5bn of WGBI investment in SA bondsthat would be liquidated in the event of adowngrade.

• Contingent liabilities remain a concernamidst somewhat deteriorating growth andfiscal dynamics.

THE MACRO ENVIRONMENT

15

U N E V E N R E C O V E RY TO S Y N C H R O N I S E D S L O W D O W N ?C O N C E R N S A B O U T A L O O M I N G R E C E S S I O N S E E M P R E M AT U R E

Composite PMI Brazil Russia India ChinaSouth Africa US Japan Euro Area UK Global Developed Developing

Current 53,1 54,6 52,7 52,9 45,0 54,6 50,4 51,6 50,0 52,8 52,7 52,8

%Change from 1Y Ago

3,11% 2,63% 3,74% 2,12% -3,64% 0,74% -1,75% -6,52% -4,58% -0,75% -1,68% 0,96%

%Change from 2Y Ago

9,03% -3,02% 0,76% 1,54% -11,42% 3,02% -4,73% -8,51% -8,76% -1,68% -2,77% 0,57%

Source: Bloomberg, Brookings Institute, JP Morgan (2019)

47.5

50

52.5

55

Apr

-201

6

Jul-

201

6

Oct

-20

16

Jan

-201

7

Apr

-201

7

Jul-

201

7

Oct

-20

17

Jan

-201

8

Apr

-201

8

Jul-

201

8

Oct

-20

18

Jan

-201

9

Global PMI (Services) Global PMI (Manufacturing)

Sentiment indicators and economic data across advanced and emerging economies have been deteriorating since last year, suggesting fading momentum in global growth and the need to resort to new forms of economic stimulus.

Generally disappointing economic indicators over the past six months have shown a similar picture in the US, China and in Europe. Delays in the anticipated trade rapprochement between the US and China have also raised questions over the prospects for greater momentum in the world economy.

THE US EXPANSION HAS MODERATEDU S G D P A N D I S M ( + 6 M O N T H S )


-5

-3

-1

1

3

5

7

35

40

45

50

55

60

65

Ma

r-91

Ma

r-93

Ma

r-95

Ma

r-97

Ma

r-99

Ma

r-01

Ma

r-03

Ma

r-05

Ma

r-07

Ma

r-09

Ma

r-11

Ma

r-13

Ma

r-15

Ma

r-17

Ma

r-19

ISM (LHS) GDP (RHS)

16

THE FED DOT PLOTA F E D O N H O L D P L E D G E S PAT I E N C E A N D D ATA D E P E N D E N T


• Is this a pause or peak of the Fed’stightening cycle?

• It depends on economic data in comingmonths, in particular inflation readings.

• The Fed has confirmed its intent to bepatient with its next rate move and may letinflation breach its 2% target.

GOING NO WHERE SLOWLY IN SOUTH AFRICAP O L I T I C A L U N C E R TA I N T Y R E M A I N S A P R O B L E M F O R S E N T I M E N T


42

44

46

48

50

52

54

42

44

46

48

50

52

54

Ma

y-20

16

Au

g-20

16

No

v-2

01

6

Fe

b-2

017

Ma

y-20

17

Au

g-20

17

No

v-2

01

7

Fe

b-2

018

Ma

y-20

18

Au

g-20

18

No

v-2

01

8

Fe

b-2

019

Ba

rcla

yss

Ind

ex

SB

K I

ndex

SBK Absa

17

S A P R I VAT E S E C TO R S P E N D R E M A I N S E L U S I V EP O L I T I C A L E N V I R O N M E N T A N D P O L I C Y U N C E R TA I N T Y I S A S T U M B L I N G B L O C K

Source: IRESS (2019)

-50

-40

-30

-20

-10

0

10

20

30

40

50

Jun-

197

3

Jun-

197

6

Jun-

197

9

Jun-

198

2

Jun-

198

5

Jun-

198

8

Jun-

199

1

Jun-

199

4

Jun-

199

7

Jun-

200

0

Jun-

200

3

Jun-

200

6

Jun-

200

9

Jun-

201

2

Jun-

201

5

Jun-

201

8

Private Sector GFCF Commercial Vehicle Sales +2Q

SA CONSUMER REMAINS UNDER PRESSUREC O N S U M E R S N O T E N O U G H T O D R I V E T H E E C O N O M Y


-60

-40

-20

0

20

40

60

80

-10

-5

0

5

10

15

Se

p-19

74

Se

p-19

77

Se

p-19

80

Se

p-19

83

Se

p-19

86

Se

p-19

89

Se

p-19

92

Se

p-19

95

Se

p-19

98

Se

p-20

01

Se

p-20

04

Se

p-20

07

Se

p-20

10

Se

p-20

13

Se

p-20

16

Se

p-20

19

HFCE (LHS) Car Sales (RHS)

18

UPSIDE RISKS TO INFLATION REMAINL O W I N F L AT I O N A N D W E A K E C O N O M I C G R O W T H O P E N T H E D O O R F O R R AT E C U T


-5

0

5

10

15

20

25

30

35

-40

-20

0

20

40

60

80

100

Oct

-19

91

Oct

-19

93

Oct

-19

95

Oct

-19

97

Oct

-19

99

Oct

-20

01

Oct

-20

03

Oct

-20

05

Oct

-20

07

Oct

-20

09

Oct

-20

11

Oct

-20

13

Oct

-20

15

Oct

-20

17

Oct

-20

19

World Food Prices (LHS) SA Food Inflation (RHS)

SA KEY MACROECONOMIC INDICATORSE C O N O M Y T O S T R E N G T H E N L E S S T H A N E X P E C T E D T H I S Y E A R

Source: Sanlam Investments (2019)

The improved sentiment about the domestic business environment is a positive. However, uncertainty about how much reform will be implemented and rising concerns about global growth are likely to hold back capital spending even after the weakness in 2018.

INDICATOR Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Av: 18 Av: 19 Av: 20 Av: 21

Repo Rate 6,75 6,75 6,75 6,75 7,00 7,25 7,50 7,50

Prime overdraft rate* 10,25 10,25 10,25 10,25 10,50 10,75 11,00 11,00

Real Prime overdraft rate (CPI) 6,2 6,0 5,7 5,5 4,4 4,7 4,9 5,0

SA ALBI bond yield (QE) 9,44 9,30 9,00 9,10 10,00 9,90 9,90 9,80

Real SA ALBI yield (CPI) 5,34 5,00 4,40 4,30 3,90 3,80 3,80 3,80

US 10-Yr Bond Yield* 2,44 2,60 2,80 3,00 3,00 2,90 2,80 2,80

GDP QQSAA -1,0 1,9 3,0 2,2 -0,2 2,3 3,0 2,6 0,8 1,2 1,8 2,0

CPI Headline inflation 4,1 4,3 4,6 4,8 6,1 6,1 6,1 6,0 4,6 4,7 6,1 5,8

Real Repo Rate 2,7 2,5 2,2 2,0 0,9 1,2 1,4 1,5

19

VALUATIONS

MSCI WORLD TOTAL RETURN MATRIX ($ )S C O P E F O R T H E R I S K R A L LY T O P E R S I S T I N T H E N E A R T E R M

Source: Bloomberg, IRESS, Sanlam Investments (2019)

Current P/E Total Return Matrix - MSCI World

17,45 MSCI Valuation Matrix - Consensus vs Top-Down Earnings

Expected Earnings Growth % 10-Yr Exit P/E LT Exit P/E

15,5 16 16,5 17 17,5 18 19 19,5 20 20,5 21 21,5 22

5,0 -4,2 -1,2 1,8 4,8 7,8 10,8 16,9 19,9 22,9 25,9 28,9 31,9 34,9

5,5 -3,8 -0,7 2,3 5,3 8,3 11,4 17,4 20,4 23,4 26,5 29,5 32,5 35,5

6,0 -3,3 -0,3 2,8 5,8 8,8 11,9 17,9 21 24 27,1 30,1 33,1 36,2

6,5 -2,9 0,2 3,2 6,3 9,3 12,4 18,5 21,5 24,6 27,6 30,7 33,8 36,8

7,0 -2,4 0,6 3,7 6,8 9,8 12,9 19 22,1 25,2 28,2 31,3 34,4 37,4

7,5 -2 1,1 4,2 7,3 10,3 13,4 19,6 22,7 25,7 28,8 31,9 35 38,1

8,0 -1,5 1,6 4,7 7,7 10,8 13,9 20,1 23,2 26,3 29,4 32,5 35,6 38,7

8,5 -1,1 2 5,1 8,2 11,3 14,5 20,7 23,8 26,9 30 33,1 36,2 39,3

9,0 -0,7 2,5 5,6 8,7 11,8 15 21,2 24,3 27,5 30,6 33,7 36,8 40 Bloomberg Consensus 2-year Avg

9,5 -0,2 2,9 6,1 9,2 12,3 15,5 21,8 24,9 28 31,2 34,3 37,4 40,6

10,0 0,2 3,4 6,5 9,7 12,8 16 22,3 25,5 28,6 31,8 34,9 38,1 41,2

10,5 0,7 3,8 7 10,2 13,3 16,5 22,8 26 29,2 32,3 35,5 38,7 41,8

11,0 1,1 4,3 7,5 10,7 13,8 17 23,4 26,6 29,8 32,9 36,1 39,3 42,5 Bloomberg Consensus 12 months

11,5 1,6 4,8 8 11,2 14,4 17,5 23,9 27,1 30,3 33,5 36,7 39,9 43,1

12,0 2 5,2 8,4 11,6 14,9 18,1 24,5 27,7 30,9 34,1 37,3 40,5 43,7

12,5 2,5 5,7 8,9 12,1 15,4 18,6 25 28,2 31,5 34,7 37,9 41,1 44,4

13,0 2,9 6,1 9,4 12,6 15,9 19,1 25,6 28,8 32 35,3 38,5 41,8 45

13,5 3,3 6,6 9,9 13,1 16,4 19,6 26,1 29,4 32,6 35,9 39,1 42,4 45,6

14,0 3,8 7,1 10,3 13,6 16,9 20,1 26,7 29,9 33,2 36,5 39,7 43 46,3

20

M S C I E M E R G I N G M A R K E T S TO TA L R E T U R N M AT R I X ( $ )E C O N O M I C R E F O R M S A N D P O L I C Y S T I M U L U S S U P P O R T S E M R A L LY


Current P/E Total Return Matrix - MSCI EM

12,9 MSCI EM's Valuation Matrix - Consensus vs Top-Down EarningsExpected Earnings Growth % 10-Yr Exit P/E LT Exit P/E

11,5 12,0 12,5 13,0 13,5 14,0 14,5 15,0 15,5 16,0 16,5 17,0 17,5 18,0

1,0 -7,2 -3,3 0,7 4,6 8,5 12,4 16,3 20,2 24,2 28,1 32,0 35,9 39,8 43,7

1,5 -6,7 -2,8 1,1 5,1 9,0 12,9 16,9 20,8 24,8 28,7 32,6 36,6 40,5 44,42,0 -6,3 -2,3 1,6 5,6 9,5 13,5 17,4 21,4 25,4 29,3 33,3 37,2 41,2 45,1 Bloomberg Consensus 12 month

2,5 -5,8 -1,9 2,1 6,1 10,1 14,0 18,0 22,0 26,0 29,9 33,9 37,9 41,9 45,8

3,0 -5,4 -1,4 2,6 6,6 10,6 14,6 18,6 22,6 26,6 30,6 34,6 38,5 42,5 46,5

3,5 -5,0 -0,9 3,1 7,1 11,1 15,1 19,1 23,1 27,2 31,2 35,2 39,2 43,2 47,2

4,0 -4,5 -0,5 3,6 7,6 11,6 15,7 19,7 23,7 27,8 31,8 35,8 39,9 43,9 47,94,5 -4,1 0,0 4,0 8,1 12,2 16,2 20,3 24,3 28,4 32,4 36,5 40,5 44,6 48,6

5,0 -3,6 0,5 4,5 8,6 12,7 16,7 20,8 24,9 29,0 33,0 37,1 41,2 45,3 49,3

5,5 -3,2 0,9 5,0 9,1 13,2 17,3 21,4 25,5 29,6 33,7 37,8 41,8 45,9 50,0

6,0 -2,7 1,4 5,5 9,6 13,7 17,8 21,9 26,1 30,2 34,3 38,4 42,5 46,6 50,76,5 -2,3 1,9 6,0 10,1 14,2 18,4 22,5 26,6 30,8 34,9 39,0 43,2 47,3 51,4

7,0 -1,8 2,3 6,5 10,6 14,8 18,9 23,1 27,2 31,4 35,5 39,7 43,8 48,0 52,1

7,5 -1,4 2,8 7,0 11,1 15,3 19,5 23,6 27,8 32,0 36,1 40,3 44,5 48,7 52,8

8,0 -0,9 3,3 7,4 11,6 15,8 20,0 24,2 28,4 32,6 36,8 41,0 45,1 49,3 53,58,5 -0,5 3,7 7,9 12,1 16,3 20,6 24,8 29,0 33,2 37,4 41,6 45,8 50,0 54,2

9,0 0,0 4,2 8,4 12,6 16,9 21,1 25,3 29,5 33,8 38,0 42,2 46,5 50,7 54,9

9,5 0,4 4,6 8,9 13,1 17,4 21,6 25,9 30,1 34,4 38,6 42,9 47,1 51,4 55,6

10,0 0,8 5,1 9,4 13,6 17,9 22,2 26,4 30,7 35,0 39,2 43,5 47,8 52,0 56,3

10,5 1,3 5,6 9,9 14,2 18,4 22,7 27,0 31,3 35,6 39,9 44,2 48,4 52,7 57,011,0 1,7 6,0 10,3 14,7 19,0 23,3 27,6 31,9 36,2 40,5 44,8 49,1 53,4 57,7

11,5 2,2 6,5 10,8 15,2 19,5 23,8 28,1 32,5 36,8 41,1 45,4 49,8 54,1 58,4

12,0 2,6 7,0 11,3 15,7 20,0 24,4 28,7 33,0 37,4 41,7 46,1 50,4 54,8 59,1 Bloomberg Consensus 2-Year Avg

12,5 3,1 7,4 11,8 16,2 20,5 24,9 29,3 33,6 38,0 42,3 46,7 51,1 55,4 59,813,0 3,5 7,9 12,3 16,7 21,1 25,4 29,8 34,2 38,6 43,0 47,4 51,7 56,1 60,5

13,5 4,0 8,4 12,8 17,2 21,6 26,0 30,4 34,8 39,2 43,6 48,0 52,4 56,8 61,2

14,0 4,4 8,8 13,3 17,7 22,1 26,5 30,9 35,4 39,8 44,2 48,6 53,1 57,5 61,9

14,5 4,9 9,3 13,7 18,2 22,6 27,1 31,5 35,9 40,4 44,8 49,3 53,7 58,2 62,615,0 5,3 9,8 14,2 18,7 23,1 27,6 32,1 36,5 41,0 45,5 49,9 54,4 58,8 63,3

ALL SHARE VALUATIONH I S T O R I C A N D R O L L I N G F O R W A R D P R I C E T O E A R N I N G S R AT I O


5

7

9

11

13

15

17

19

21

23

25

Jun-

199

6

Jun-

199

8

Jun-

200

0

Jun-

200

2

Jun-

200

4

Jun-

200

6

Jun-

200

8

Jun-

201

0

Jun-

201

2

Jun-

201

4

Jun-

201

6

Jun-

201

8

ALSI Forward P/E Ratio

EPS Year 2 6,3%Dividend Yield 3,1%ReRating 4,0%Total Return 13,4%

21

ALL SHARE TOTAL RETURN MATRIX (ZAR)C A U T I O U S LY AT T R A C T I V E R E T U R N S E X P E C T E D O V E R T H E F O R E C A S T P E R I O D


Current P/E: Total Return Matrix - SA Equities (Alsi)17,63 FTSE/JSE Valuation Matrix - Consensus vs Top-Down Earnings

Expected Earnings Growth % Exit P/E13,5 14,0 14,5 15,0 15,5 16,0 16,5 17,0 17,5 18,0 18,5 19,0 19,5 20 20,5 21

5,0 -16,6 -13,6 -10,6 -7,7 -4,7 -1,7 1,3 4,2 7,2 10,2 13,2 16,2 19,1 22,1 25,1 28,15,5 -16,2 -13,2 -10,2 -7,2 -4,2 -1,3 1,7 4,7 7,7 10,7 13,7 16,7 19,7 22,7 25,7 28,76,0 -15,8 -12,8 -9,8 -6,8 -3,8 -0,8 2,2 5,2 8,2 11,2 14,2 17,2 20,2 23,2 26,3 29,3 I-Net Consensus Rolling 2-Yr Est6,5 -15,4 -12,4 -9,4 -6,4 -3,4 -0,3 2,7 5,7 8,7 11,7 14,8 17,8 20,8 23,8 26,8 29,97,0 -15,1 -12,0 -9,0 -6,0 -2,9 0,1 3,1 6,2 9,2 12,2 15,3 18,3 21,3 24,4 27,4 30,57,5 -14,7 -11,6 -8,6 -5,5 -2,5 0,6 3,6 6,7 9,7 12,8 15,8 18,9 21,9 25,0 28,0 31,08,0 -14,3 -11,2 -8,2 -5,1 -2,0 1,0 4,1 7,1 10,2 13,3 16,3 19,4 22,5 25,5 28,6 31,68,5 -13,9 -10,8 -7,8 -4,7 -1,6 1,5 4,5 7,6 10,7 13,8 16,9 19,9 23,0 26,1 29,2 32,29,0 -13,5 -10,4 -7,4 -4,3 -1,2 1,9 5,0 8,1 11,2 14,3 17,4 20,5 23,6 26,7 29,7 32,89,5 -13,2 -10,0 -6,9 -3,8 -0,7 2,4 5,5 8,6 11,7 14,8 17,9 21,0 24,1 27,2 30,3 33,4

10,0 -12,8 -9,6 -6,5 -3,4 -0,3 2,8 5,9 9,1 12,2 15,3 18,4 21,5 24,7 27,8 30,9 34,010,5 -12,4 -9,3 -6,1 -3,0 0,1 3,3 6,4 9,6 12,7 15,8 19,0 22,1 25,2 28,4 31,5 34,611,0 -12,0 -8,9 -5,7 -2,6 0,6 3,7 6,9 10,0 13,2 16,3 19,5 22,6 25,8 28,9 32,1 35,211,5 -11,6 -8,5 -5,3 -2,1 1,0 4,2 7,4 10,5 13,7 16,8 20,0 23,2 26,3 29,5 32,7 35,812,0 -11,2 -8,1 -4,9 -1,7 1,5 4,6 7,8 11,0 14,2 17,3 20,5 23,7 26,9 30,1 33,2 36,412,5 -10,9 -7,7 -4,5 -1,3 1,9 5,1 8,3 11,5 14,7 17,9 21,1 24,2 27,4 30,6 33,8 37,0 I-Net Consensus Rolling 2-Yr Avg13,0 -10,5 -7,3 -4,1 -0,9 2,3 5,6 8,8 12,0 15,2 18,4 21,6 24,8 28,0 31,2 34,4 37,613,5 -10,1 -6,9 -3,7 -0,4 2,8 6,0 9,2 12,4 15,7 18,9 22,1 25,3 28,5 31,8 35,0 38,214,0 -9,7 -6,5 -3,2 0,0 3,2 6,5 9,7 12,9 16,2 19,4 22,6 25,9 29,1 32,3 35,6 38,814,5 -9,3 -6,1 -2,8 0,4 3,7 6,9 10,2 13,4 16,7 19,9 23,1 26,4 29,6 32,9 36,1 39,415,0 -8,9 -5,7 -2,4 0,8 4,1 7,4 10,6 13,9 17,2 20,4 23,7 26,9 30,2 33,5 36,7 40,015,5 -8,6 -5,3 -2,0 1,3 4,5 7,8 11,1 14,4 17,6 20,9 24,2 27,5 30,7 34,0 37,3 40,616,0 -8,2 -4,9 -1,6 1,7 5,0 8,3 11,6 14,9 18,1 21,4 24,7 28,0 31,3 34,6 37,9 41,216,5 -7,8 -4,5 -1,2 2,1 5,4 8,7 12,0 15,3 18,6 21,9 25,2 28,6 31,9 35,2 38,5 41,817,0 -7,4 -4,1 -0,8 2,5 5,9 9,2 12,5 15,8 19,1 22,5 25,8 29,1 32,4 35,7 39,0 42,417,5 -7,0 -3,7 -0,4 3,0 6,3 9,6 13,0 16,3 19,6 23,0 26,3 29,6 33,0 36,3 39,6 43,018,0 -6,6 -3,3 0,0 3,4 6,7 10,1 13,4 16,8 20,1 23,5 26,8 30,2 33,5 36,9 40,2 43,618,5 -6,3 -2,9 0,5 3,8 7,2 10,5 13,9 17,3 20,6 24,0 27,3 30,7 34,1 37,4 40,8 44,2 I-Net Consensus Rolling 1-year Est19,0 -5,9 -2,5 0,9 4,2 7,6 11,0 14,4 17,7 21,1 24,5 27,9 31,2 34,6 38,0 41,4 44,719,5 -5,5 -2,1 1,3 4,7 8,1 11,5 14,8 18,2 21,6 25,0 28,4 31,8 35,2 38,6 42,0 45,320,0 -5,1 -1,7 1,7 5,1 8,5 11,9 15,3 18,7 22,1 25,5 28,9 32,3 35,7 39,1 42,5 45,9

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Fe

b-2

010

Fe

b-2

011

Fe

b-2

012

Fe

b-2

013

Fe

b-2

014

Fe

b-2

015

Fe

b-2

016

Fe

b-2

017

Fe

b-2

018

Fe

b-2

019

Discount/Premium of Price to NAV

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

-10

-5

0

5

10

15

20

25

Jun

-200

6

Jun

-200

7

Jun

-200

8

Jun

-200

9

Jun

-201

0

Jun

-201

1

Jun

-201

2

Jun

-201

3

Jun

-201

4

Jun

-201

5

Jun

-201

6

Jun

-201

7

Jun

-201

8

Div %Y/Y (LHS) Property/Bond Yield (RHS)

L ISTED PROPERTY VALUATIONSVA L U AT I O N S R E M A I N AT T R A C T I V E F O R T H E L O N G T E R M , B U T G R O W T H C O N C E R N S …


Slowing distribution growth and struggling consumer Attractive valuations relative to history

22

L I S T E D P R O P E RT Y TO TA L R E T U R N M AT R I X ( Z A R )H I G H E R B O N D Y I E L D S A R E S T I L L S U P P O R T I V E F O R P O S I T I V E R E T U R N S


Current YieldsExpected Dividend Growth %

Total Return Matrix - SA Property (FTSE/JSE SA Listed Property)

Exit Yield

0,99 Prop / Bond Rel Yield 0,87 0,89 0,92 0,94 0,97 0,99 1,02 1,04 1,07 1,09 1,12

8,99 10 Year Bond Yield 9,49 9,49 9,49 9,49 9,49 9,49 9,49 9,49 9,49 9,49 9,49

8,91 Prop Yield 8,22 8,46 8,69 8,93 9,17 9,41 9,64 9,88 10,12 10,35 10,59

10 Year Mean Rel. Yield -4 12,6 9,7 6,9 4,3 1,9 -0,5 -2,7 -4,9 -6,9 -8,8 -10,7

0,9 -3 13,8 10,9 8,1 5,4 2,9 0,5 -1,7 -3,9 -5,9 -7,9 -9,8

-2 15 12 9,2 6,5 4 1,6 -0,7 -2,9 -5 -6,9 -8,8

-1 16,1 13,1 10,3 7,6 5 2,6 0,3 -1,9 -4 -6 -7,9

0 17,3 14,3 11,4 8,7 6,1 3,6 1,3 -0,9 -3 -5 -7

1 18,5 15,4 12,5 9,8 7,2 4,7 2,3 0,1 -2,1 -4,1 -6

2 19,7 16,6 13,6 10,9 8,2 5,7 3,3 1,1 -1,1 -3,1 -5,1

3 20,8 17,7 14,7 11,9 9,3 6,8 4,4 2,1 -0,1 -2,2 -4,2

4 22 18,9 15,9 13 10,3 7,8 5,4 3,1 0,9 -1,2 -3,2

5 23,2 20 17 14,1 11,4 8,8 6,4 4 1,8 -0,3 -2,3

6 24,4 21,1 18,1 15,2 12,5 9,9 7,4 5 2,8 0,7 -1,4

7 25,5 22,3 19,2 16,3 13,5 10,9 8,4 6 3,8 1,6 -0,5

8 26,7 23,4 20,3 17,4 14,6 11,9 9,4 7 4,7 2,6 0,5

9 27,9 24,6 21,4 18,5 15,6 13 10,4 8 5,7 3,5 1,4

10 29,1 25,7 22,5 19,5 16,7 14 11,4 9 6,7 4,5 2,3

RETURN EXPECTATIONS & ASSET ALLOCATION

23

ASSET ALLOCATIONC U R R E N T P O S I T I O N I N G A N D R E T U R N E X P E C TAT I O N S

Source: Sanlam Investments (2019)

12 Month Forecast

Return Expectation

(ZAR)Range of Returns

Return Expectation

($)Range of Returns

SA Equity 13,40% 9,4%-17% 14,53%

SA Bonds 6,10% 6,1%-12,8% 7,16%

SA ILBs 10,90% 7,0%-11,9% 12,01%

SA Property 9,30% 4,4%-12,0% 10,39%

SA Cash 6,80% 6,75%-7,0% 7,87%

DM Equity 7,61% 8,70% 5,6%-11,8%

EM Equity 10,19% 11,30% 7,0%-15,7%

DM Bonds -0,21% 0,80% 0,1%-3,8%

DM ILBs -1,20% -0,20% -2,1%-4,0%

DM Property 1,97% 3,00% 1,3%-4,0%

DM Cash 1,47% 2,50% 2,5%-3,0%

24

Asset Manager Views

Local

Negative Neutral Neutral Neutral Neutral

Cas

h

While cash offers no risk of capital loss, better

opportunities now exist in equities and bonds

where valuations are more realistic. Current 1 year NCDs at 8.2% are not as compelling on a risk adjusted return basis relative to bonds and equity.

This asset class is at fair value, hence the neutral view on it.

There are sufficient opportunities in other asset classes to not

be overweight SA cash.

Cash available for bond/equity weighting as more clarity

on SA growth outlook emerges and around elections.

Local risks may emerge when the dovish risk-on environment begins to fade. As such, they

maintain a neutral holding of money market assets,

as yields are still attractive.

Neutral Neutral Neutral Positive Neutral

Bo

nd

s

The benchmark bond trading at 8.5% does not offer

compelling value, but with lower inflation and a more

benign global liquidity environment requires less excess risk premium with

a higher running yield relative to cash. A risk of renewed increases in global rates

or a notable domestic fiscal deterioration stop us from

going overweight.

This asset class is at fair value, hence the neutral view on it.

Truffle prefer floating rate-subordinated debt

to government debt (and cash), while long duration bond yields have come lower even though SA government

finances continue to deteriorate.

Tantalum has a tactical positioning on the curve based on outlook. Attractive valuations

but risks are heightened until stronger growth outlook

emerges and election clarity. Eskom remains a key risk. Comfortable with current duration, would reduce

into strength.

With Moody's maintaining its stable outlook on SA, S&P being optimistic on growth in

2019, and dovish central bank rhetoric, it seems that the bias for yields are lower. However,

Sentio remain cautiously optimistic given local SOE

contingency risk, fiscal slippage and weak confidence levels,

and prefer to maintain a neutral stance with optionality.

Neutral Negative Positive Negative Neutral

Pro

per

ty

Large cap property stocks are current trading on yields of close

to 10%, which they believe, is an attractive valuation

relative to bonds and equities. Rental escalations

and vacancies are under pressure from weak trading in the retail sector and they

believe this will continue to result in the sector trading at the current steep discount

to bonds and equities over the near term.

Abax feel that there is an oversupply

in the sector and yields are overstated by high

offshore gearing.

Property valuations are now cheap however,

they are concerned about distribution growth,

and they believe that stock picking is key.

Economic fundamentals in the property sector remain weak. Tantalum hold no SA

property stocks. Hold selective UK property stocks listed in SA.

Lower space rollout by retailers is weighing on demand,

which is influencing distribution growth. The office sector is over-spaced and will

take time to absorb the excess space.

Neutral Positive Neutral Positive Neutral

Eq

uit

y

While SA Equity has been recovering during Q1,

the valuation it is trading on, a forward PE of 13×, is not demanding relative to history. Matrix do not

see a near term earnings recovery for domestic SA stocks

as domestic real activity data, confidence indicators and

consumer metrics remain weak which keeps them neutral

on the asset class.

Abax believe that valuations are more attractive now as relative

to EM and DM, where they have been a big

underperformer.

Equities have moved quite a bit higher but

are still not overly expensive.

Good stock specific value continues to present across the board, need to be patient

and respond to market opportunities. They have a core

centred around rand hedge stocks, also modestly reduced

their overweight position in banks, and rotated into retailers

as well as other industrial names. Active management remains key as price action has been volatile and will

remain so.

Select opportunities are starting to emerge from

a valuation perspective given the underperformance in domestic SA stocks.

25

Asset Manager Views

Global

Positive Positive Negative Positive Neutral

Cas

h

After the recent recovery, ZAR is now looking slightly

expensive. Offshore cash offer some protection against

heightened political risks in an election year, fiscal pressures,

Eskom’s liquidity position, and the risk of load shedding

as we move into the high-demand winter period.

This is an attractive asset in a risk-off environment.

Yields are quite low with EURO and JPY short

terms yields below 0.

Better US yields on offer. There is a diversification benefit

and currency protection.

A flat US curve does make cash an attractive

investment on the risk/reward spectrum. Not so, in other DMs

which still accommodative monetary policy.

With a potential slowdown in the US, lower corporate earnings and buybacks, and an extended pause in the US hiking cycle,

they believe a neutral stance on US cash is warranted.

Negative Negative Negative Negative Negative

Bo

nd

s

The US 10-year yield at 2.5% implies a real yield of

0.5%, which in their view is not sufficiently attractive given relatively robust US growth and widening fiscal deficit.

Strong employment, trade tariff pass-through, and recovery in the US housing market

(rental inflation) pose upside risk to core CPI on a multi-quarter horizon.

Abax believe that rates are still too low.

Truffle believe long-term DM bond yields will

move higher.

US Cash provides better risk return/return

alternative to longer dated US Bonds. European bond valuations unattractive.

Investors have become complacent in thinking that the US hiking cycle

has ended. US economic data is still strong albeit slowing.

When inflation starts to emerge the Fed

will continue with its hiking cycle resulting in higher

bond yields, which supports their underweight duration stance.

Negative Negative Neutral Negative

Pro

per

ty

Not covered

The low cost of gearing masks the fundamentals and

UK/European properties are over distributing.

With bond yields, moving higher this will hurt property returns.

Retail assets continue to be negatively affected by the increased share

from online sales.

They have select rand hedge counters.

High debt levels and a faster transition to online are negative

for property.

Negative Neutral Negative Neutral Positive

Eq

uit

y

Global stocks have rerated strongly since the start of the

year and are looking expensive again given the weak global

growth environment. Earnings momentum is likely to turn

negative in their view, coming off a high base caused by the lift

to 2018 earnings from US tax cuts and signs that the Global

economy is past peak growth

Abax feel that DM is fairly values while EM is cheap.

Truffle still find some pockets of good value in global stocks

however, one needs to select carefully.

Tantalum have a quality core basket with a quality

growth bias that is diverse.

Better GDP growth and low interest rates are supportive

for equity. A dovish FED will allay fears of a policy error

and possible recession anytime soon.

26

Asset Manager Views

Local

Neutral Neutral Negative Neutral Negative

Cas

h

In the current environment, holding more real assets than

fixed-rate rand bonds and cash is preferable. It is probable that

real money market future returns will not be as attractive

as they have been recently.

Coronation expect local cash to generate more than a 1% real

return over the following year.

There are decent real yields, but better alternative return prospects from other asset

classes over the medium term.

In real terms, interest rates are still high relative to other regions

and high relative to the past decade. The Rand remains

volatile and is still trading above its equilibrium level of R13/USD.

Prudential remain underweight Cash and where they do have

cash exposure, they hold mainly Floating Rate Notes that are offering an attractive yield

pick-up relative to cash rates.

Positive Positive Neutral Positive Positive

Bo

nd

s

Since, inflationary pressures both globally and domestically

remain benign, the South African Reserve Bank is under no market pressure to increase

interest rates, and left them unchanged at its last Monetary

Policy Committee meeting. Furthermore, SA has to pay high

interest rates to attract and retain funding making SA bond yields the highest among its EM peers currently. In this context,

longer duration bonds look attractive.

SA bonds compare favourably to their EM peers, relative to their own history and offer a

decent cushion against further global policy normalization. At current levels, the yields

on offer in the SA bond market are attractive relative

to their underlying fundamentals and warrant a neutral

to overweight allocation.

In the domestic fixed income spectrum, it remains their

preferred asset class given how attractive the yield over cash is. Valuations are decent given the backdrop of muted growth and inflation. Local economic and

policy uncertainty remains a risk, while the plight of SOEs –

particularly Eskom – is concerning given the risks they pose to the fiscus and global

investor sentiment.

SIM retained their small overweight position they got, when SA conventional long bonds weakened along with

long bonds in other EM. Even though SA long bonds have strengthened since then, the

current yield of about 9% on the ten-year bonds still offers an

attractive prospective real return. CPI is well under control and expected to remain within

the 3%-6% target band for the near future.

In SA nominal bonds, valuations remained cheap over the quarter

compared to their longer-term fair value despite the quarter’s 3.8% return. They still prefer

longer-dated government bonds due to the more attractive yields

on offer. Prudential are also comfortable with the

compensation bonds offer given the risk involved.

Neutral Positive Negative Positive Negative

Pro

per

ty

Listed property, represented by the SAPY, has fallen 28% since peaking in April 2016, generated

negative returns over the last three years and was the worst performing asset class in 2018. Following the recent correction, the SAPY dividend yield is again

on a par with bond yields, suggesting that property offers similar relative value as it did in

2009. Despite the lower valuations, they have not bought

any large positions in listed property, as the excesses of a 20-year bull market

are not undone in just over a year.

Coronation expect domestic properties to show reasonable nominal growth in distributions

over the medium term. While the impact of load shedding is a

concern and the recent rental concessions granted to Edcon is likely to place pressure on reversions, initial yields are

attractive and this, combined with reasonable distribution growth, offers an attractive holding period return. They continue to hold the higher-

quality property names, which they believe, will produce better

returns than bonds and cash over the long term.

Local property – particularly concerning the office and retail

sectors – fundamentals are weak. Although valuations are

attractive following the sell-off in 2018, they believe there are no obvious catalysts in their view that will precipitate a sector

re-rating, hence their modest allocation to the asset class.

They have a modest selective allocation.

SIM remain of the opinion that SA domestic listed property

companies are cheaply priced. This is expressed through an

overweight position in the three largest SA REITs, namely

Growthpoint (40%), Redefine (40%) and Hyprop (20%).

They have a current weighted average dividend yield of 9.6%,

which is attractive relative to bonds yielding 9%.

In SA listed property Prudential are marginally underweight

in their house view portfolios given the higher risks

to earnings going forward compared to the attractive valuations prevailing in the

sector. They remain concerned around the quality of earnings

and possibility of further downward revisions to earnings

forecasts for listed property.

Positive Positive Positive Positive Positive

Eq

uit

y

The poor sentiment towards the SA equity market at the end of 2018 reversed sharply in the first quarter of 2019, with the

JSE appreciating 8%. Despite the South African economy being trapped in stagnation, the prospect of continuing

benign monetary policy from the prudent SARB has buoyed equity prices. In the case of a

number of their largest holdings, their view of the underlying value is unchanged, as you

would expect over a relatively short period.

In terms of asset allocation, equities remain their preferred

asset class for producing inflation-beating returns.

Optimistic on selective opportunities where earnings

revisions are positive and valuations are reasonable. Equity selection remains

balanced in terms of macroeconomic risk sensitives.

Stock selection is currently skewed towards global cyclical companies, including resources

and global industrials. Rand-hedge defensives

and SA 'Inc.' stocks balance their allocation.

SIM retained their overweight position in South African

equities. The SA equity market has rerated since the

introduction of this overweight position, but they remain of the

opinion that it is somewhat undervalued and attractive relative to developed equity markets. The dividend yield on their equity benchmark

is currently at 4.7%, excluding Naspers.

Prudential remain cautiously optimistic regarding SA equity

market returns over the medium term due to the prevailing

excessive levels of pessimism reflected in share prices

and valuations.

27

Asset Manager Views

Global

Neutral Negative Neutral Negative Negative

Cas

h

Although the US economy is doing better than most,

the synchronous slowdown has resulted in the Federal Reserve abandoning its plans to increase

interest rates. Market opinion has shifted to the view that

within the leading economies, the current low levels of interest

will prevail for some time. Nevertheless, holding US dollars remains attractive

compared to other currencies.

In their view, the real returns from international cash are likely

to be poor over the long term.

While they are favourably disposed to equities in the offshore component, they

are not fully invested within their allocation whereby the

balance sits in cash. The cash buffer offers them firepower to add to opportunities when

they present themselves.

SIM view offshore cash as very unattractive. Interest

rates in the US have increased from zero to above 2%. This still means that investors are getting close to zero real returns, and are still paying a high price for

the certainty of having their capital preserved.

Used allocation to fund other more attractive global opportunities within equity

and fixed income.

Negative Negative Negative Neutral Negative

Bo

nd

s

The change in the Fed's stance on interest rate hikes has

resulted in a rally in both share prices and US bonds. Since

low levels of interest will prevail for some time, long-term rates

in the US have declined significantly. The US Federal Reserve’s signal that it is in no hurry to tighten monetary policy has revived the hunt

for attractive yields in emerging markets.

In Coronations view, the real returns from

international bonds are likely to be poor over the long term.

Muted or negative real yields – valuations are increasingly

becoming stretched. Investec remain wary of the asset class and find it difficult to argue for the prolonged persistence of low real yields in global bond markets in the absence of a

recession. They currently have no exposure to this asset class.

SIM retained their underweight position in global sovereign bonds. Apart from the US,

sovereign bonds in the major developed countries are trading

at yields well below their 2% long-run inflation assumption. Given their 1% real required return from DM bonds, global

sovereign bonds therefore remain unattractive.

In global fixed income, despite the rally over the quarter,

US government bonds are still trading at slightly expensive

levels, but are less expensive than other developed markets

like the UK, EU and Japan, where government bond yields

remain at exceptionally low levels. Consequently, the asset

class as whole remains unattractive versus equities.

Neutral Neutral Negative Positive Negative

Pro

per

ty

Volatility, the slowing of economic growth and the Fed's

decision to abandon its plan to increase interest rates may

provide some relief to the property sector over the short term. However, in their view, REITs, which are bond-like

in nature, do not seem especially attractive due to low prevailing yields.

The prospects for global property stocks remain closely tied to the interest rate cycle. Coronation consider global

listed property as fairly valued.

There is reasonable yield, little growth, large regional divergence. They hold very

select counters in this sector though.

SIM view offshore listed property as moderately

attractive. Select offshore property offers yields that are very attractive, both on a stand-alone basis

and relative to other interest bearing assets.

Prudential prefer equity offshore where valuations are more attractive relative

to listed property.

Neutral Positive Positive Neutral Positive

Eq

uit

y

The US market has driven global equity returns over the past 10 years and given that valuations are looking very

stretched, they are struggling to find many opportunities in

the US relative to history despite the depth and breadth of the market. Similarly so, for other developed markets. Emerging

markets (including South Africa) have underperformed against

developed markets and are out of favour with global money

managers. They are currently finding more shares that they believe will beat cash over the long term through their bottom-up investment process in EMs.

In terms of asset allocation, equities remain their preferred

asset class for producing inflation-beating returns.

They have a more positive outlook on EM Equity than DM Equity at these levels

Fundamentals should be supportive in the near term as they expect global growth to remain at or above trend, while global monetary policy

looks set to become a bit more accommodative. Europe and Japan remain their

preferred regional allocations on attractive valuations and

reasonable earnings prospects. They also have exposure

to Hong Kong-listed stocks, businesses offering sustainable

cash flows and attractive dividends (should be more

resilient if the outlook turns out to be more challenging) as well as an allocation to gold equities.

SIM remain underweight global developed market equities,

specifically US equities, which continue to look expensive

by most valuation measures. However, to exploit

the cheapness of EMs and to counter-act their underweight position in the US market they

introduced a small position in EM technology stocks.

They continue to hold an overweight position

in European and UK markets.

For global equities, some DMs have become more

expensive after the quarter’s gains, but they have maintained

their overweight position as a whole given the very high-risk premium from equities versus bonds. EMs and currencies

continue to be especially well valued on many measures,

while the US market is relatively expensive and other markets

offer better value. They continue to prefer the global banking

sector, which has underperformed the broader

market, as well as certain DMs where equities are undervalued, including Germany and Japan,

and selected EMs such as South Korea, Indonesia

and China.

28

TEREBINTH STYLE BETA

• Capital Protector• Conservative: Mostly cash, no

offshore, low volatility• Rate PM and FI team highly

• Core Manager• Consistency: Adds alpha through

different market cycles• Skill in all asset classes

• Macro focused• FI only house• Very active duration management• Agility due to hedge fund background

• More volatile• Utilises all available asset classes, including

offshore• Skilled in FI asset allocation: buy Guy

Toms

FLEXIBLE ASSET ALLOCATION – LIQUIDITY IS KEY!

29

FLEXIBLE DURATION – MACRO DRIVERS

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Oct

-14

No

v-1

4

De

c-1

4

Jan-

15

Feb

-15

Ma

r-15

Ap

r-1

5

Ma

y-15

Jun-

15

Jul-1

5

Au

g-15

Se

p-15

Oct

-15

No

v-1

5

De

c-1

5

Jan-

16

Feb

-16

Ma

r-16

Ap

r-1

6

Ma

y-16

Jun-

16

Jul-1

6

Au

g-16

Se

p-16

Oct

-16

No

v-1

6

De

c-1

6

Jan-

17

Feb

-17

Ma

r-17

Ap

r-1

7

Ma

y-17

Jun-

17

Jul-1

7

Au

g-17

Se

p-17

Oct

-17

No

v-1

7

De

c-1

7

Jan-

18

Feb

-18

Ma

r-18

Ap

r-1

8

Ma

y-18

Jun-

18

Duration through time

SIM Active Income Prescient Income Provider Coro Strat Income Terebinth SS Strategic Income

GOOD COMPLIMENTS IN B IV

30

TRUFFLE STYLE BETA• Captures upside• AA starts with equities but very

conscious of downside risk and diversification.

• Able to distil information into alpha generating ideas

• Core Manager• SAA driven• Shorter term mindset based on

hedge fund background• AA and FI skill

• Captures upside• Follows SAA• Very disciplined, well thought-out

process

• Capital Protector• Different sources of alpha (Selection

skill, AA skill, Derivatives)• Strong Process and Team

CORRELATION AND PERFORMANCE VS LARGEST PEERS

31

OUTPERFORMANCE DESPITE LARGE STEINHOFF HOLDING

Steinhoff effect

Superior downside management

32

MMR Income - CPI+2% over a 2-year rolling period

Strategy (%) Fund TER (%) Wrap TER (%)Coronation Strategic Income 25.00 0.54 0.14Prescient Income Provider 25.00 0.61 0.15Sanlam Multi Managed Defensive FoF 10.00 1.28 0.13SIM Active Income 20.00 0.70 0.14SIM Inflation Plus 10.00 0.79 0.08Terebinth Strategic Income 10.00 0.81 0.08TOTAL Underlying Manager Fee (%) 0.72Wrap Fee (incl VAT) (%) 0.40Portfolio TER (%) 1.12

Q1 2019 Q4 2018 Q3 2018 Q2 2018Fund Size (Million) R 20 R 11 R 8

Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018Coronation Strategic Income 25.00 25.00 25.00Prescient Income Provider 25.00 25.00 25.00Sanlam Multi Managed Defensive FoF 10.00 10.00 10.00SIM Active Income 20.00 20.00 20.00SIM Inflation Plus 10.00 10.00 10.00Terebinth Strategic Income 10.00 10.00 10.00

Mandated Maximum Limits Equity Property Cash Bonds Foreign20% 25% 100% 75% 15%

33

PLEASE NOTE: Attribution of portfolio returns is calculated using the average holding of an underlying fund over the quarter and year-to-date. No attribution of an underlying fund (#N/A) will reflect if a switch occurred during the quarter or in the year even if a fund class has been switched. Contribution of returns takes into account the performance of the underlying fund, its weight and holding period in the portfolio.

MMR Income - CPI+2% over a 2-year rolling period

34

IMPORTANT TO NOTE:Simulated performance is reflected before inception date of fund and is for illustrative purposes only.

Benchmark CPI+2% over a 2-year rolling period

Peer Group SA Multi Asset Income

Inception Date 2018/07/01

Objective High level of income

Risk Objective Absolute and real capital protection

A

B

2018 2017 2016 2015

7.17

6.49

3m 6m YTD 1 Year 2 Years 3 Years 5 Years

● MMR Income 2.67 4.08 2.67 8.51 8.18

■ CPI+2% over a 2-year rolling period 2.12 3.08 2.12 6.71 6.26

Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile

Source: Morningstar Direct

FUND BENCHMARK

Max Drawdown -0.04

Max DD # Periods 2.00

Max DD Valley Date 2019/01/31

Up Period Percent 100.00 91.67

Down Period Percent 0.00 8.33

Best Quarter 2.68 2.12

Worst Quarter 1.37 0.94

Std Dev 1.22 1.08

Sharpe Ratio 0.68 -1.02

MMR Income ROLLING 1 YEAR RETURNS As of 2019/03/31

PERFORMANCE RELATIVE TO PEERS As of 2019/03/31

DRAWDOWNS As of 2019/03/31RISK STATISTICS 2017/04/01 to 2019/03/31

INVESTMENT GROWTH 2017/04/01 to 2019/03/31ABSOLUTE RISK REWARD 2017/04/01 to 2019/03/31

35

SMM BIV Conservative - CPI+2% over a 2-year rolling period

Strategy (%) Fund TER (%) Wrap TER (%)Coronation Strategic Income 25.00 0.54 0.14Prescient Income Provider 16.00 0.61 0.10Sanlam Multi Managed Defensive FoF 10.00 1.28 0.13SIM Active Income 20.00 0.70 0.14SIM Inflation Plus 10.00 0.79 0.08Terebinth Strategic Income 19.00 0.70 0.13TOTAL Underlying Manager Fee (%) 0.71Wrap Fee (incl VAT) (%) 0.00Portfolio TER (%) 0.71

Q1 2019 Q4 2018 Q3 2018 Q2 2018Fund Size (Million) R 0 R 0 R 0 R 0

Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018Coronation Strategic Income 25.00 30.00 30.00 30.00Prescient Income Provider 16.00 12.50 12.50 12.50Sanlam Multi Managed Defensive FoF 10.00 10.00 10.00 10.00SIM Active Income 20.00 23.50 23.50 23.50SIM Inflation Plus 10.00 10.00 10.00 10.00Terebinth Strategic Income 19.00 14.00 14.00 14.00


36


SMM BIV Conservative - CPI+2% over a 2-year rolling period

37



Peer Group SA Multi Asset Income


Objective High level of income

Risk Objective Absolute and real capital protection

A

B

2018 2017 2016 2015

7.03

6.49


● SMM BIV Conservative 2.69 4.05 2.69 8.39 8.12

■ CPI+2% over a 2-year rolling period 2.12 3.08 2.12 6.71 6.26



FUND BENCHMARK

Max Drawdown -0.04






Worst Quarter 1.32 0.94

Std Dev 1.20 1.08

Sharpe Ratio 0.64 -1.02

SMM BIV Conservative ROLLING 1 YEAR RETURNS As of 2019/03/31




38

MMR Cautious - CPI+3% over a 3-year rolling period

Strategy (%) Fund TER (%) Wrap TER (%)ABSA Property Equity 2.00 0.71 0.01Allan Gray Stable 10.00 1.40 0.14Coronation Balanced Defensive 10.00 1.18 0.12Matrix Defensive Balanced 10.00 0.82 0.08Prescient Income Provider 16.00 0.61 0.10Prudential Inflation Plus 10.00 0.93 0.09Rezco Stable 10.00 0.80 0.08Satrix Low Equity 15.00 0.36 0.05SIM Inflation Plus 17.00 0.79 0.13TOTAL Underlying Manager Fee (%) 0.81Wrap Fee (incl VAT) (%) 0.58Portfolio TER (%) 1.39


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018ABSA Property Equity 2.00 4.00 4.00 4.00Allan Gray Stable 10.00 0.00 0.00 0.00Coronation Balanced Defensive 10.00 10.00 10.00 10.00Foord Conservative 0.00 17.00 17.00 17.00Matrix Defensive Balanced 10.00 0.00 0.00 0.00Prescient Income Provider 16.00 14.00 14.00 14.00Prudential Inflation Plus 10.00 10.00 10.00 10.00Rezco Stable 10.00 10.00 10.00 10.00Satrix Low Equity 15.00 15.00 15.00 15.00SIM Inflation Plus 17.00 20.00 20.00 20.00


39


MMR Cautious - CPI+3% over a 3-year rolling period

40


Peer Group SA Multi Asset Low Equity


Objective Stable capital growth and Income

Risk Objective Capital protection

A

B

2018 2017 2016 2015

1.16 9.23 3.61 9.08

7.49 7.70 9.76 8.23

1.24 8.39 3.59 7.60


● MMR Cautious 4.42 2.56 4.42 8.60 6.24 5.61 6.93

■ CPI+3% over a 3-year rolling period 2.35 3.56 2.35 7.71 7.26 7.88 7.99

♦ Avg SA Multi Asset Low Equity 4.01 2.11 4.01 6.66 5.74 5.21 6.28



FUND BENCHMARK

Max Drawdown -3.76






Worst Quarter -2.73 1.18

Std Dev 4.96 1.08

Sharpe Ratio -0.23 -0.09

MMR Cautious ROLLING 1 YEAR RETURNS As of 2019/03/31




41

SMM BIV Cautious - Avg SA Multi Asset Low Equity

Strategy (%) Fund TER (%) Wrap TER (%)Coronation Strategic Income 12.00 0.54 0.06Investec Opportunity 8.00 1.16 0.09Matrix Defensive Balanced 12.00 0.82 0.10Nedgroup Opportunity 12.00 1.13 0.14Prudential Inflation Plus 6.50 0.93 0.06PSG Flexible 15.00 1.26 0.19Sanlam Multi Managed Defensive FoF 7.00 1.28 0.09Satrix Low Equity 8.00 0.36 0.03SIM Active Income 8.00 0.70 0.06SIM Inflation Plus 10.00 0.79 0.08SMM Property 1.50 0.60 0.01TOTAL Underlying Manager Fee (%) 0.90Wrap Fee (incl VAT) (%) 0.00Portfolio TER (%) 0.90


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018Coronation Strategic Income 12.00 12.00 15.00 10.00Investec Opportunity 8.00 8.00 10.00 10.00Matrix Defensive Balanced 12.00 12.00 10.00 10.00Nedgroup Opportunity 12.00 12.00 12.00 12.00Prudential Inflation Plus 6.50 5.00 0.00 0.00PSG Flexible 15.00 15.00 13.00 15.00Sanlam Multi Managed Defensive FoF 7.00 7.00 7.00 10.00Satrix Low Equity 8.00 8.00 10.00 10.00SIM Active Income 8.00 8.00 10.00 10.00SIM Inflation Plus 10.00 10.00 10.00 10.00SMM Property 1.50 3.00 3.00 3.00


42


SMM BIV Cautious - Avg SA Multi Asset Low Equity

43


Benchmark Avg SA Multi Asset Low Equity

Peer Group SA Multi Asset Low Equity


Objective Stable income and capital growth

Risk Objective Capital protection

A

B

2018 2017 2016 2015

1.81

1.24


● SMM BIV Cautious 4.53 2.32 4.53 7.19 6.24

■ Avg SA Multi Asset Low Equity 4.01 2.11 4.01 6.66 5.74



FUND BENCHMARK

Max Drawdown -3.12 -3.55

Max DD # Periods 3.00 3.00

Max DD Valley Date 2018/11/30 2018/11/30




Worst Quarter -2.11 -1.83

Std Dev 4.00 4.17


SMM BIV Cautious ROLLING 1 YEAR RETURNS As of 2019/03/31




44

MMR Moderate - CPI+5% over a 3 year rolling period

Strategy (%) Fund TER (%) Wrap TER (%)ABSA Property Equity 5.00 0.71 0.04Investec Opportunity 11.00 1.16 0.13Nedgroup Opportunity 13.00 1.13 0.15Prescient Income Provider 5.00 0.61 0.03Prudential Inflation Plus 13.00 0.93 0.12PSG Flexible 12.00 1.26 0.15Rezco Value Trend 9.00 1.79 0.16Sanlam Multi Managed Balanced FoF 7.00 1.32 0.09SIM Inflation Plus 20.00 0.79 0.16Truffle SCI Flexible 5.00 0.72 0.04TOTAL Underlying Manager Fee (%) 1.06Wrap Fee (incl VAT) (%) 0.58Portfolio TER (%) 1.64


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018ABSA Property Equity 5.00 5.00 2.00 2.00Foord Balanced 0.00 9.00 10.00 10.00Investec Opportunity 11.00 9.00 10.00 10.00Nedgroup Opportunity 13.00 11.00 11.00 11.00Prescient Income Provider 5.00 5.00 5.00 5.00Prudential Inflation Plus 13.00 10.00 10.00 10.00PSG Flexible 12.00 10.00 10.00 10.00Rezco Value Trend 9.00 9.00 10.00 10.00Sanlam Multi Managed Balanced FoF 7.00 7.00 7.00 7.00SIM Inflation Plus 20.00 20.00 20.00 20.00Truffle SCI Flexible 5.00 5.00 5.00 5.00


45


MMR Moderate - CPI+5% over a 3 year rolling period

46

Benchmark CPI+5% over a 3 year rolling period

Peer Group SA Multi Asset High Equity


Objective

Risk Objective

A

B

2018 2017 2016 2015

-1.00 8.44 1.48 9.21

9.49 9.70 11.76 10.23

-3.60 9.97 1.31 7.66


● MMR Moderate 5.49 1.32 5.49 7.54 5.05 4.40 6.28

■ CPI+5% over a 3 year rolling period 2.82 4.52 2.82 9.71 9.26 9.88 9.99

♦ Avg SA Multi Asset High Equity 5.79 1.03 5.79 5.76 4.60 3.79 5.54



FUND BENCHMARK

Max Drawdown -6.14







Std Dev 6.44 1.06

Sharpe Ratio -0.36 1.79

MMR Moderate ROLLING 1 YEAR RETURNS As of 2019/03/31




47

SMM BIV Moderate - Avg SA Multi Asset Medium Equity

Strategy (%) Fund TER (%) Wrap TER (%)Coronation Strategic Income 7.00 0.54 0.04Investec Opportunity 8.00 1.16 0.09Nedgroup Opportunity 12.00 1.13 0.14Prudential Inflation Plus 15.00 0.93 0.14PSG Flexible 15.00 1.26 0.19Sanlam Multi Managed Balanced FoF 8.00 1.32 0.11Satrix Balanced Index 17.00 0.36 0.06SIM Inflation Plus 5.00 0.79 0.04SMM Property 3.00 0.60 0.02Truffle SCI Flexible 10.00 0.72 0.07TOTAL Underlying Manager Fee (%) 0.89Wrap Fee (incl VAT) (%) 0.00Portfolio TER (%) 0.89


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018Coronation Strategic Income 7.00 7.00 14.00 9.00Investec Opportunity 8.00 8.00 10.00 10.00Nedgroup Opportunity 12.00 12.00 10.00 10.00Old Mutual Global Equity 0.00 0.00 0.00 3.00Prudential Inflation Plus 15.00 15.00 12.00 10.00PSG Flexible 15.00 15.00 13.00 15.00Sanlam Multi Managed Balanced FoF 8.00 8.00 8.00 10.00Satrix Balanced Index 17.00 17.00 15.00 15.00SIM Inflation Plus 5.00 5.00 5.00 5.00SMM Property 3.00 3.00 3.00 3.00Truffle SCI Flexible 10.00 10.00 10.00 10.00


48


SMM BIV Moderate - Avg SA Multi Asset Medium Equity

49


Benchmark Avg SA Multi Asset Medium Equity

Peer Group SA Multi Asset Medium Equity


Objective Moderate growth and low Income

Risk Objective Capital preservation

A

B

2018 2017 2016 2015

-1.04

-1.77


● SMM BIV Moderate 5.33 1.99 5.33 6.97 5.70

■ Avg SA Multi Asset Medium Equity 5.27 1.35 5.27 6.48 5.13



FUND BENCHMARK








Std Dev 5.90 6.34


SMM BIV Moderate ROLLING 1 YEAR RETURNS As of 2019/03/31




50

MMR Moderate Aggressive - CPI+6% over a 5-year rolling period

Strategy (%) Fund TER (%) Wrap TER (%)ABAX Balanced Prescient 12.00 0.81 0.10ABSA Property Equity 5.00 0.71 0.04Investec Global Franchise Feeder 2.00 1.08 0.02Investec Opportunity 10.00 1.16 0.12Prudential Balanced 12.00 0.92 0.11PSG Flexible 10.00 1.26 0.13Rezco Value Trend 15.00 1.79 0.27Sanlam Multi Managed Balanced FoF 15.00 1.32 0.20Satrix Balanced Index 12.00 0.36 0.04Truffle SCI Flexible 7.00 0.72 0.05TOTAL Underlying Manager Fee (%) 1.07Wrap Fee (incl VAT) (%) 0.58Portfolio TER (%) 1.65


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018ABAX Balanced Prescient 12.00 0.00 0.00 0.00ABSA Property Equity 5.00 5.00 5.00 5.00Foord Balanced 0.00 12.00 12.00 12.00Investec Global Franchise Feeder 2.00 2.00 2.00 2.00Investec Opportunity 10.00 10.00 10.00 10.00Prudential Balanced 12.00 12.00 12.00 12.00PSG Flexible 10.00 10.00 10.00 10.00Rezco Value Trend 15.00 15.00 15.00 15.00Sanlam Multi Managed Balanced FoF 15.00 15.00 15.00 15.00Satrix Balanced Index 12.00 12.00 12.00 12.00Truffle SCI Flexible 7.00 7.00 7.00 7.00


51


MMR Moderate Aggressive - CPI+6% over a 5-year rolling period

52




Objective Capital growth

Risk Objective Minimise capital loss

A

B

2018 2017 2016 2015

-3.28 10.95 0.24 9.33

10.49 10.70 12.76 11.23

-3.60 9.97 1.31 7.66


● MMR Moderate Aggressive 6.09 0.94 6.09 7.55 5.14 4.09 6.38

■ CPI+6% over a 5-year rolling period 3.05 5.00 3.05 10.71 10.26 10.88 10.99

♦ Avg SA Multi Asset High Equity 5.79 1.03 5.79 5.76 4.60 3.79 5.54



FUND BENCHMARK

Max Drawdown -7.76







Std Dev 7.91 1.05

Sharpe Ratio -0.28 2.75

MMR Moderate Aggressive ROLLING 1 YEAR RETURNS As of 2019/03/31




53

SMM BIV Moderate Aggressive - Avg SA Multi Asset High Equity

Strategy (%) Fund TER (%) Wrap TER (%)ABAX Balanced Prescient 8.00 0.81 0.06Bateleur Flexible Prescient 8.00 0.91 0.07Coronation Balanced Plus 11.00 1.15 0.13Coronation Global Emerging Markets 2.50 1.14 0.03Fairtree Equity Prescient 4.00 0.89 0.04Old Mutual Global Equity 2.50 1.63 0.04Prescient Income Provider 2.00 0.61 0.01PSG Flexible 11.00 1.26 0.14Sanlam Multi Managed Balanced FoF 8.00 1.32 0.11Satrix Balanced Index 16.00 0.36 0.06SIM Balanced 15.00 1.25 0.19SMM Property 5.00 0.60 0.03Truffle SCI Flexible 7.00 0.72 0.05TOTAL Underlying Manager Fee (%) 0.95Wrap Fee (incl VAT) (%) 0.00Portfolio TER (%) 0.95


Manager Selection (%) Q1 2019 Q4 2018 Q3 2018 Q2 2018ABAX Balanced Prescient 8.00 8.00 10.00 9.00Bateleur Flexible Prescient 8.00 8.00 8.00 8.00Coronation Balanced Plus 11.00 11.00 10.00 9.00Coronation Global Emerging Markets 2.50 2.50 0.00 0.00Fairtree Equity Prescient 4.00 4.00 0.00 5.00Old Mutual Global Equity 2.50 2.50 5.00 5.00Prescient Income Provider 2.00 2.00 4.00 4.00PSG Flexible 11.00 11.00 12.00 10.00Sanlam Multi Managed Balanced FoF 8.00 8.00 8.00 8.00Satrix Balanced Index 16.00 16.00 14.00 14.00Satrix Bond Index 0.00 5.00 0.00 0.00SIM Balanced 15.00 10.00 15.00 14.00SMM Property 5.00 5.00 5.00 5.00Truffle SCI Flexible 7.00 7.00 9.00 9.00


54


SMM BIV Moderate Aggressive - Avg SA Multi Asset High Equity

55


Benchmark Avg SA Multi Asset High Equity



Objective Capital growth

Risk Objective Mitigate capital loss

A

B

2018 2017 2016 2015

-2.69

-3.60


● SMM BIV Moderate Aggressive 6.49 2.18 6.49 7.53 5.99

■ Avg SA Multi Asset High Equity 5.79 1.03 5.79 5.76 4.60



FUND BENCHMARK








Std Dev 7.72 7.51


SMM BIV Moderate Aggressive ROLLING 1 YEAR RETURNS As of 2019/03/31




56

Appendices

57

ROLLING 1YR RETURNS As of 2019/03/31

A M J J A S O N D

2016

J F M A M J J A S O N D

2017


2018


2019

J F M2.5

5.0

7.5

10.0

12.5

15.0

Graviton SCI Flexible Income B1 Nedgroup Inv Flexible Inc A Prescient Income Provider B3SIM Active Income B1 Beassa 1-3 Yr TR ZAR

Ret

urn


1.0

2.0

3.0

4.0

5.0


6.0

7.0

8.0

9.0

10.0

11.0


Ret

urn

3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 2015

Graviton SCI Flexible Income B1

Nedgroup Inv Flexible Inc A

Prescient Income Provider B3

SIM Active Income B1

Beassa 1-3 Yr TR ZAR

3.95

4.71

4.67

4.37

6.08

1.82 1.82

2.45 2.45

2.11 2.11

2.12 2.12

1.87 1.87

7.96

9.76

9.86

7.90

8.34

8.69

8.64

9.48

9.20

9.13

8.27

8.35

10.13

8.78

8.05

8.24

9.57

8.81

7.67

7.94

10.31

9.30

7.96

9.14

8.81

5.98

9.37

9.69

9.64

10.08

9.86

9.65

10.83

10.06

7.09

7.24

10.19

6.72

4.10


As of 2019/03/31DRAWDOWNS

2014 2015 2016 2017 2018 2019-1.5

-1.3

-1.0

-0.8

-0.5

-0.3

0.0


2012/10/01 to 2019/03/31RISK STATISTICS

MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Graviton SCI Flexible Income B1

Nedgroup Inv Flexible Inc A

Prescient Income Provider B3

SIM Active Income B1


-1.65

-0.75

-0.07

-0.37

-1.47

4.00

2.00

1.00

1.00

1.00

91.67

95.83

95.83

97.22

84.72

8.33

4.17

4.17

2.78

15.28

0.47

1.20

2.14

1.48

0.30

2012/10/01 to 2019/03/31ABSOLUTE RISK REWARD

Std Dev

-1.0 1.0 3.0 5.0 7.0 9.00.0

2.0

4.0

6.0

8.0

10.0

12.0


Ret

urn

Source: Morningstar Direct58


A M J J A S O N D

2016


2017


2018


2019

J F M2.0

4.0

6.0

8.0

10.0

12.0

BCI Income Plus C Coronation Strategic Income A Investec Diversified Income ZSanlam Select Strategic Income B2 Beassa 1-3 Yr TR ZAR

Ret

urn


1.0

2.0

3.0

4.0

5.0


6.0

7.0

8.0

9.0

10.0

11.0


Ret

urn

3m 6m YTD 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 2015BCI Income Plus CCoronation Strategic Income AInvestec Diversified Income ZSanlam Select Strategic Income B2Beassa 1-3 Yr TR ZAR

4.854.424.814.026.08

2.67 2.672.54 2.541.99 1.991.90 1.901.87 1.87

10.127.888.698.418.34

9.768.589.069.369.13

9.778.309.06

8.05

9.069.58

7.67

9.957.26

10.169.479.14

10.439.319.069.979.64

8.989.288.569.50

10.06

10.376.69

10.335.894.10



2014 2015 2016 2017 2018 2019-2.0

-1.5

-1.0

-0.5

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

BCI Income Plus C

Coronation Strategic Income A

Investec Diversified Income Z

Sanlam Select Strategic Income B2


-0.10

-0.05

-0.67

-1.47

1.00

1.00

1.00

1.00

98.18

98.18

100.00

92.73

87.27

1.82

1.82

0.00

7.27

12.73

2.86

0.83

1.93

0.75

0.43


Std Dev

-1.0 1.0 3.0 5.0 7.00.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

BCI Income Plus C Coronation Strategic Income A Investec Diversified Income Z

Sanlam Select Strategic Income B2 Beassa 1-3 Yr TR ZAR

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M0.0

5.0

10.0

15.0

20.0

ABAX Absolute Return Prescient B3 Allan Gray Stable A SIM Inflation PlusSanlam Select Defensive Balanced B1 (ASISA) South African MA Low Equity

Ret

urn


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0


ABAX Absolute Return Prescient B3 Allan Gray Stable A Sanlam Select Defensive Balanced B1SIM Inflation Plus (ASISA) South African MA Low Equity

Ret

urn


ABAX Absolute Return Prescient B3

Allan Gray Stable A

Sanlam Select Defensive Balanced B1

SIM Inflation Plus

(ASISA) South African MA Low Equity 2.114.01 4.01 6.66 5.21 6.28 8.43 1.24 8.39 3.59 7.60

4.00

1.10

4.00

2.47

4.45 4.45

4.09 4.09

4.42 4.42

5.08 5.08

10.98

7.52

8.75

9.00

8.33

6.68

8.66

6.53

8.94

8.16

7.59

8.90

9.68

7.49

2.86

5.31

2.67

7.60

9.58

11.59

8.26

10.16

6.36

7.62

4.69

7.39

13.66

10.12

10.95



2014 2015 2016 2017 2018 2019-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

ABAX Absolute Return Prescient B3 Allan Gray Stable A Sanlam Select Defensive Balanced B1SIM Inflation Plus (ASISA) South African MA Low Equity


MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

ABAX Absolute Return Prescient B3

Allan Gray Stable A

Sanlam Select Defensive Balanced B1

SIM Inflation Plus

(ASISA) South African MA Low Equity -3.55 3.00 65.45 34.55

-2.66

-5.68

-2.55

-3.92

2.00

3.00

3.00

3.00

72.73

69.09

76.36

69.09

27.27

30.91

23.64

30.91

0.35

0.22

0.56

0.11

-0.27


Std Dev

0.0 2.0 4.0 6.0 8.0 10.00.0

2.0

4.0

6.0

8.0

10.0

12.0

ABAX Absolute Return Prescient B3 Allan Gray Stable A Sanlam Select Defensive Balanced B1

SIM Inflation Plus (ASISA) South African MA Low Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M0.0

5.0

10.0

15.0

Investec Cautious Managed Z Coronation Balanced Defensive A Nedgroup Inv Stable A(ASISA) South African MA Low Equity

Ret

urn


0.0

2.0

4.0

6.0

8.0


10.0

12.0


Ret

urn


Investec Cautious Managed Z

Coronation Balanced Defensive A

Nedgroup Inv Stable A


3.72

2.74

2.36

6.19 6.19

5.12 5.12

5.34 5.34

11.83

8.28

9.12

7.58

5.80

5.02

8.97

6.82

6.84

11.14

10.26

10.15

6.23

1.96

2.57

8.94

7.80

7.09

3.05

3.90

0.38

13.54

8.11

11.44



2014 2015 2016 2017 2018 2019-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Investec Cautious Managed Z

Coronation Balanced Defensive A

Nedgroup Inv Stable A

(ASISA) South African MA Low Equity 72.993.00 27.01-3.55

-8.05

-3.90

-6.08

2.00

3.00

3.00

77.37

75.18

72.99

22.63

24.82

27.01

0.52

0.51

0.42

0.07


Std Dev

0.0 2.0 4.0 6.0 8.00.0

2.0

4.0

6.0

8.0

10.0

12.0

Investec Cautious Managed Z Coronation Balanced Defensive A Nedgroup Inv Stable A

(ASISA) South African MA Low Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C(ASISA) South African MA Low Equity

Ret

urn


0.0

1.0

2.0

3.0

4.0


5.0

6.0

7.0

8.0

9.0

10.0

11.0


Ret

urn


Graviton SCI Low Equity B1

Sanlam Multi Mgd Defensive FoF A

Satrix Low Equity Balanced Index C


2.95

3.43

2.36

5.06 5.06

4.26 4.26

3.85 3.85

8.72

8.74

6.25

5.69

4.58

5.48

7.10

5.57 8.80

1.82

3.55

0.78

8.42

5.19

10.17

3.14

1.40

4.50

9.66

8.15

7.60



2014 2015 2016 2017 2018 2019-4.5

-3.8

-3.0

-2.3

-1.5

-0.8

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Graviton SCI Low Equity B1

Sanlam Multi Mgd Defensive FoF A

Satrix Low Equity Balanced Index C


-4.06

-3.17

-3.51

3.00

3.00

3.00

66.07

64.29

66.07

33.93

35.71

33.93

-0.06

-0.48

-0.08

-0.30


Std Dev

0.0 2.0 4.0 6.0 8.0 10.00.0

2.0

4.0

6.0

8.0

10.0

12.0

Graviton SCI Low Equity B1 Sanlam Multi Mgd Defensive FoF A Satrix Low Equity Balanced Index C


Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-6.0-4.0-2.00.02.04.06.08.010.012.014.016.018.020.0

Prudential Inflation Plus A Sanlam Select Wealth Protector B1 (ASISA) South African MA Low Equity

Ret

urn


0.0

2.0

4.0

6.0

8.0


10.0

12.0

14.0

16.0

18.0


Ret

urn


Prudential Inflation Plus A

Sanlam Select Wealth Protector B1


0.15

7.14

4.44 4.44

6.24 6.24

2.61

16.36

3.51 6.20 10.39 -5.00

9.31

10.29

4.43

3.61 8.66

2.114.01 4.01 6.66 5.21 6.28 8.43 1.24 8.39 3.59 7.60



2014 2015 2016 2017 2018 2019-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Prudential Inflation Plus A

Sanlam Select Wealth Protector B1


-6.17

-4.61

3.00

4.00

51.61

70.97

48.39

29.03

-0.78

0.19

-0.59


Std Dev

0.0 2.0 4.0 6.0 8.0 10.0-1.0

1.0

3.0

5.0

7.0

9.0

11.0


Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-15.0

-7.5

0.0

7.5

15.0

22.5

Graviton SCI Medium Equity B1 Nedgroup Inv Opportunity A (ASISA) South African MA Medium Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0


Ret

urn


Graviton SCI Medium Equity B1

Nedgroup Inv Opportunity A

(ASISA) South African MA Medium Equity 1.355.27 5.27 6.48 4.21 5.69 9.54 -1.77 9.28 1.54 7.40

1.64

4.80

6.54 6.54

8.23 8.23

6.13

8.47

3.99

3.93

5.72

6.74

-3.75

-2.63

10.42

2.97

0.68

9.64

8.59

4.56



2014 2015 2016 2017 2018 2019-10.0

-8.0

-6.0

-4.0

-2.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Graviton SCI Medium Equity B1

Nedgroup Inv Opportunity A

(ASISA) South African MA Medium Equity -6.21 3.00 65.71 34.29

-7.52

-9.82

3.00

13.00

64.29

62.86

35.71

37.14

0.02

0.26

-0.03


Std Dev

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.00.0

2.0

4.0

6.0

8.0

10.0

12.0


Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-15.0

-7.5

0.0

7.5

15.0

22.5

ABAX Balanced Prescient B3 Centaur BCI Balanced A1 Discovery BalancedFoord Balanced A (ASISA) South African MA High Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0

14.0


Ret

urn


ABAX Balanced Prescient B3

Centaur BCI Balanced A1

Discovery Balanced

Foord Balanced A

(ASISA) South African MA High Equity

3.77

2.36

0.34

-0.33

7.68 7.68

5.14 5.14

5.99 5.99

6.50 6.50

9.77

3.26

4.84

6.47

7.52

8.31

4.32

2.39

1.035.79 5.79 5.76 3.79 5.54 9.81 -3.60 9.97 1.31 7.66

9.65

10.53

7.26

5.04

12.87

11.57

0.81

-3.83

-2.61

-3.79

8.92

14.04

11.35

6.89

11.23

13.25

0.32

-1.00

6.45

9.90

12.92

9.13



2014 2015 2016 2017 2018 2019-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

ABAX Balanced Prescient B3

Centaur BCI Balanced A1

Discovery Balanced

Foord Balanced A


-6.95

-6.87

-9.48

-11.40

-7.53

3.00

3.00 64.71 35.29

10.00

3.00

3.00

66.18

60.29

61.76

63.24

33.82

39.71

38.24

36.76

0.64

0.71

0.31

0.01

0.06


Std Dev

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.00.0

3.0

6.0

9.0

12.0

15.0

ABAX Balanced Prescient B3 Centaur BCI Balanced A1 Discovery Balanced

Foord Balanced A (ASISA) South African MA High Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-15.0

-7.5

0.0

7.5

15.0

22.5

Allan Gray Balanced A Coronation Balanced Plus A Investec Opportunity DSanlam Select Managed B1 (ASISA) South African MA High Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0

14.0


Ret

urn


Allan Gray Balanced A

Coronation Balanced Plus A

Investec Opportunity D

Sanlam Select Managed B1

(ASISA) South African MA High Equity 1.035.79 5.79 5.76 5.54 9.81 -3.603.79 9.97 1.31 7.66

-0.29

2.05

0.89

3.33

5.51 5.51

8.46 8.46

8.77 8.77

7.00 7.00

5.68

5.18

9.07

7.71

4.84

4.32

3.25

4.54

7.31

6.10

5.80

11.61

12.50

9.87

-3.11

-6.34

-2.29

-2.15

11.01

12.69

7.56

7.99

6.31

0.54

-0.61

5.17

12.29

8.06

12.09

9.52



2014 2015 2016 2017 2018 2019-10.0

-8.0

-6.0

-4.0

-2.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Allan Gray Balanced A

Coronation Balanced Plus A

Investec Opportunity D

Sanlam Select Managed B1

(ASISA) South African MA High Equity -7.53 3.00 63.49 36.51

-9.15

-9.22

-9.38

3.00

3.00

4.00

65.08

60.32

58.73

34.92

39.68

41.27

0.14

-0.03

-0.10

-0.15


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

Allan Gray Balanced A Coronation Balanced Plus A Investec Opportunity D

Sanlam Select Managed B1 (ASISA) South African MA High Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-15.0

-7.5

0.0

7.5

15.0

22.5

Sanlam Multi Mgd Balanced FoF A Satrix Balanced Index C Graviton SCI Balanced B1Nedgroup Inv Core Diversified B (ASISA) South African MA High Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0

14.0

Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF ASatrix Balanced Index C (ASISA) South African MA High Equity

Ret

urn


Graviton SCI Balanced B1

Nedgroup Inv Core Diversified B

Sanlam Multi Mgd Balanced FoF A

Satrix Balanced Index C

(ASISA) South African MA High Equity 1.035.79 5.79 5.76 3.79 5.54 9.81 -3.60 9.97 1.31 7.66

1.28

1.17

3.18

1.82

6.68 6.68

5.11 5.11

6.62 6.62

4.57 4.57

5.43

4.62

5.27

2.73

4.17

4.32

3.40

5.51

6.40

6.88

6.08

7.45

10.53

-5.44

-3.61

-3.46

-5.63

12.12

12.39

6.88

19.82

0.87

2.58

2.37

4.68

10.11

8.47

10.08

4.94



2014 2015 2016 2017 2018 2019-10.0

-8.0

-6.0

-4.0

-2.0

0.0

Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF ASatrix Balanced Index C (ASISA) South African MA High Equity


MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Graviton SCI Balanced B1

Nedgroup Inv Core Diversified B

Sanlam Multi Mgd Balanced FoF A

Satrix Balanced Index C


-8.79

-8.13

-7.60

-6.77

3.00

3.00

13.00

3.00

64.62

63.08

60.00

63.08

35.38

36.92

40.00

36.92

0.03

0.10

-0.05

0.13

-0.11


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0-2.0

1.0

4.0

7.0

10.0

13.0

16.0

Graviton SCI Balanced B1 Nedgroup Inv Core Diversified B Sanlam Multi Mgd Balanced FoF A

Satrix Balanced Index C (ASISA) South African MA High Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-15.0

-7.5

0.0

7.5

15.0

22.5

Nedgroup Inv Balanced A Prudential Balanced A PSG Balanced ASIM Balanced R (ASISA) South African MA High Equity

Ret

urn


-6.0

-4.0

-2.0

0.0

2.0


4.0

6.0

8.0

10.0

12.0

14.0


Ret

urn


Nedgroup Inv Balanced A

Prudential Balanced A

PSG Balanced A

SIM Balanced R

(ASISA) South African MA High Equity 1.035.79 5.79 5.76 3.79 5.54 9.81 -3.60 9.97 1.31 7.66

5.16

-0.13

-5.60

2.99

7.44 7.44

6.64 6.64

1.62 1.62

7.38 7.38

11.95

6.13

-0.99

6.48

3.52

5.43

4.79

4.73

7.81

7.20

6.70

5.88

12.68

12.54

11.67

0.72

-3.30

-4.49

-5.29

4.47

11.79

11.00

10.84

-3.17

3.95

12.56

5.36

17.76

8.40

4.97

5.39



2014 2015 2016 2017 2018 2019-10.0

-8.0

-6.0

-4.0

-2.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Nedgroup Inv Balanced A

Prudential Balanced A

PSG Balanced A

SIM Balanced R

(ASISA) South African MA High Equity -7.53 68.54 31.463.00

-8.40

-9.24

-7.85

-8.04

5.00

3.00

4.00

3.00

65.17

67.42

73.03

64.04

34.83

32.58

26.97

35.96

0.66

0.63

0.57

0.44

0.35


Std Dev

0.0 2.0 4.0 6.0 8.0 10.0 12.00.0

3.0

6.0

9.0

12.0

15.0

18.0

Nedgroup Inv Balanced A Prudential Balanced A PSG Balanced A

SIM Balanced R (ASISA) South African MA High Equity

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-7.5

0.0

7.5

15.0

22.5

Rezco Managed Plus A Obsidian SCI Balanced B4 Rezco Value Trend A(ASISA) South African MA High Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0

14.0

Obsidian SCI Balanced B4 Rezco Managed Plus A Rezco Value Trend A(ASISA) South African MA High Equity

Ret

urn


Obsidian SCI Balanced B4

Rezco Managed Plus A

Rezco Value Trend A


5.15

1.15

-0.03

8.45 8.45

6.23 6.23

5.67 5.67

6.55

9.58

8.69

5.65

2.37

2.74

8.62

5.66

5.55

1.035.79 5.79 5.76

11.99

3.79 5.54

-1.69

9.81 -3.60

-0.96

9.97 1.31

-0.68

7.66

7.14

5.37

5.71

7.03

-7.00

-5.82

11.50

17.04

15.49



2014 2015 2016 2017 2018 2019-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

Obsidian SCI Balanced B4 Rezco Managed Plus A Rezco Value Trend A(ASISA) South African MA High Equity


MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Obsidian SCI Balanced B4

Rezco Managed Plus A

Rezco Value Trend A


-6.38

-9.66

-10.11

12.00

3.00

4.00

64.62

56.92

53.85

35.38

43.08

46.15

0.29

-0.07

-0.11

-0.11


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0-2.0

1.0

4.0

7.0

10.0

13.0

16.0

Obsidian SCI Balanced B4 Rezco Managed Plus A Rezco Value Trend A


Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-20.0

-10.0

0.0

10.0

20.0

30.0

PSG Flexible A Sanlam Select Flexible Equity B2 Truffle SCI Flexible A(ASISA) South African MA Flexible

Ret

urn


-5.0

-2.5

0.0

2.5

5.0


7.5

10.0

12.5

15.0

17.5


Ret

urn


PSG Flexible A

Sanlam Select Flexible Equity B2

Truffle SCI Flexible A

(ASISA) South African MA Flexible 0.484.72 4.72 3.95 2.93 4.71 9.91 -4.34 8.69 1.41 6.11

-4.22

2.32

5.39

2.29 2.29

6.59 6.59

7.37 7.37

0.52

-1.72

12.27

5.57

1.63

4.17

7.70

8.50

16.05 -4.16

-8.62

1.17

9.97

11.40

6.98

17.67

-3.02

-4.61

4.99

15.34

19.19



2014 2015 2016 2017 2018 2019-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

PSG Flexible A

Sanlam Select Flexible Equity B2

Truffle SCI Flexible A

(ASISA) South African MA Flexible -6.68 3.00 58.18 41.82

-7.34

-11.54

-7.98

4.00

12.00

5.00

61.82

61.82

60.00

38.18

38.18

40.00

0.11

-0.13

0.11

-0.42


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

PSG Flexible A Sanlam Select Flexible Equity B2 Truffle SCI Flexible A

(ASISA) South African MA Flexible

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-50.0

0.0

50.0

100.0

ABSA Property Equity A Catalyst SA Property Equity Prescient B SMM Institutional Positive Return 3 B3Sesfikile BCI Property B FTSE/JSE SA Listed Property TR ZAR

Ret

urn


-12.5

-10.0

-7.5

-5.0

-2.5


0.0

2.5

5.0

7.5

10.0

12.5

15.0

ABSA Property Equity A Catalyst SA Property Equity Prescient B Sesfikile BCI Property BSMM Institutional Positive Return 3 B3 FTSE/JSE SA Listed Property TR ZAR

Ret

urn


ABSA Property Equity A

Catalyst SA Property Equity Prescient B

Sesfikile BCI Property B

SMM Institutional Positive Return 3 B3

FTSE/JSE SA Listed Property TR ZAR

-5.03

-2.75

-2.60

2.90

-2.59

-1.85 -1.85

1.05 1.05

1.64 1.64

4.25 4.25

1.45 1.45

3.72

-3.45

-6.58

5.05

-5.68

-4.34

-2.87

-0.52

4.97

-3.84

10.65

7.60

9.46

4.83

5.63

14.11

13.02

10.51

12.41

-30.82

-22.51

-19.74

0.74

-25.26

26.79

16.95

19.54

12.97

17.15

9.81

9.07

9.93

-7.28

10.20

27.64

14.35

14.77

8.00

7.99



2014 2015 2016 2017 2018 2019-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

ABSA Property Equity A Catalyst SA Property Equity Prescient B Sesfikile BCI Property BSMM Institutional Positive Return 3 B3 FTSE/JSE SA Listed Property TR ZAR


MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

ABSA Property Equity A

Catalyst SA Property Equity Prescient B

Sesfikile BCI Property B

SMM Institutional Positive Return 3 B3

FTSE/JSE SA Listed Property TR ZAR

-34.54

-22.51

-19.74

-9.89

-25.26

3.00

12.00

12.00

11.00

12.00

68.18

64.77

69.32

64.77

67.05

31.82

35.23

30.68

35.23

32.95

0.47

0.39

0.54

0.12

0.30


Std Dev

0.0 4.0 8.0 12.0 16.0 20.0 24.0-9.0

-6.0

-3.0

0.0

3.0

6.0

9.0

ABSA Property Equity A Catalyst SA Property Equity Prescient B Sesfikile BCI Property B

SMM Institutional Positive Return 3 B3 FTSE/JSE SA Listed Property TR ZAR

Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-20.0

0.0

20.0

40.0

60.0

Investec Glb Franchise FF A Nedgroup Inv Global Equity FF A MSCI World NR USD

Ret

urn


-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0



Ret

urn


Investec Glb Franchise FF A

Nedgroup Inv Global Equity FF A

MSCI World NR USD

3.46

0.45

-0.75

14.34 14.34

13.09 13.09

12.76 12.76

33.86

32.47

26.60

8.21

8.65

9.96

14.81

13.32

13.74

15.58

16.40

17.16

10.85

8.59

6.07

10.85

10.08

10.81

-12.74

-9.07

-5.12

43.92

36.07

32.78



2014 2015 2016 2017 2018 2019-20.0

-15.0

-10.0

-5.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Investec Glb Franchise FF A

Nedgroup Inv Global Equity FF A

MSCI World NR USD

-45.18

-44.53

-50.09

16.00

16.00

15.00

56.94

57.42

57.89

43.06

42.58

42.11

0.14

0.15

0.16


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.00.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


Ret

urn



A M J J A S O N D

2016


2017


2018


2019

J F M-5.0

0.0

5.0

10.0

15.0

20.0

Kagiso Stable A PSG Stable A Rezco Stable Z(ASISA) South African MA Low Equity

Ret

urn


-2.0

0.0

2.0

4.0

6.0


8.0

10.0

12.0

14.0


Ret

urn


Kagiso Stable A

PSG Stable A

Rezco Stable Z

(ASISA) South African MA Low Equity 2.114.01 4.01 6.66 5.21 6.28 8.398.43 3.59 7.601.24

6.19

-0.71

3.25

3.75 3.75

1.97 1.97

4.25 4.25

13.52

2.30

13.21

9.11

6.13

5.11

7.69

6.90

7.67

1.01

5.91

7.10

9.71

6.34

15.19

8.92

-3.24

-2.09

6.98



2014 2015 2016 2017 2018 2019-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0



MaxDrawdown

MaxDrawdown #

Periods

UpPeriod

Percent

DownPeriod

Percent

SharpeRatio

Kagiso Stable A

PSG Stable A

Rezco Stable Z

(ASISA) South African MA Low Equity -3.55 60.87 39.133.00

-6.60

-2.92

-5.63

6.00

4.00

5.00

76.09

67.39

58.70

23.91

32.61

41.30

0.02

-0.31

-0.23

-0.45


Std Dev

0.0 2.0 4.0 6.0 8.0 10.0-1.0

1.0

3.0

5.0

7.0

9.0

11.0

Kagiso Stable A PSG Stable A Rezco Stable Z


Ret

urn


Interest Bearing Money Market TER Interest Bearing Short Term TER Interest Bearing Variable Term TER

Glacier Money Market 0.25% GMMF Nedgroup Inv Core Income (Taquanta) 0.30% NICPC Coronation Bond 0.43%Prescient Yield Quant Plus 0.59% PCQF Prescient Bond Quant Plus 1.15%SIM Enhanced Yield 0.49% SEYB1 SMM Bond (Prescient Bond Quant) 0.59%SMM Yield Plus (Futuregrowth) 0.77% SBTB SMM Inflation Linked Bond (SSS) 0.60%Stanlib Income 0.68% SIFB6 Sanlam Select Bond Plus (Matrix) 0.53%

Satrix Bond Index 0.26%Stanlib Bond 0.86%

Multi Asset Income TER Multi Asset Low Equity TER Multi Asset Medium Equity TER

BCI Income Plus 0.60% BIPF Abax Absolute 0.70% AAPB5 Coronation Capital Plus 1.15%Coronation Strategic Income 0.54% CSIB4 Allan Gray Stable 1.40% AGSC Foord Conservative 0.81%Graviton SCI Flexible Income 0.75% GSFA1 Coronation Balanced Defensive 1.18% CBDB4 Graviton SCI Medium Equity 1.34%Investec Diversified Income 0.45% IDICI Graviton SCI Low Equity 1.30% GSLB1 Nedgroup Inv Opportunity (Abax) 1.13%Nedgroup Inv Flexible Income (Abax) 0.61% NEIFB Investec Cautious Managed 1.01% CMFI Old Mutual Albaraka Balanced 1.19%Prescient Income Provider 0.61% PIPFB5 Nedgroup Inv Stable (Foord) 1.48% NISA Sanlam Select Absolute (Matrix) 0.95%Sanlam Select Strategic Income (Terebinth) 0.70% SPPB3 Prudential Inflation Plus 0.93% PRCB

SIM Active Income 0.70% SIAB4 SMM Defensive FoF 1.28% SADF

Sanlam Select Defensive Balanced (Matrix) 0.82% SPLB3

Sanlam Select Wealth Protector (Truffle) 0.90% SSWB3

Satrix Low Equity Balanced Index 0.36% SLEB1

SIM Inflation Plus 0.79% SAIB4

SAIB4

Multi Asset High Equity TER Multi Asset Flexible TER Real Estate General TER

Abax Balanced Prescient 0.81% ABPB4 36ONE BCI Flexible Opportunity 0.92% TBOC1 ABSA Property 0.71%Allan Gray Balanced 1.55% AGBC Bateleur Flexible Prescient 0.91% BFPB1 Catalyst SA Property Equity Prescient 1.45%Coronation Balanced Plus 1.15% CBFB4 Centaur BCI Flexible 1.50% CMFCC Prudential Enhanced SA Prop Tracker 0.64%Discovery Balanced 1.92% DBFD Laurium Flexible Presicient 1.19% LFPB4 Satrix Property Index 0.23%Foord Balanced 0.84% FBCB2 PSG Flexible 1.26% PFFMC Sesfikile BCI Property 1.06%Graviton SCI Balanced 1.25% GSBB1 Sanlam Select Flexible Equity (Abax) 0.95% SBB2 SMM Inst. Positive Return 3 (Truffle Flex Prop) 0.83%Investec Opportunity 1.16% OPPJ SMM Flexible Equity (Truffle Flexible) 0.84% SPRO SMM Property 0.60%Kagiso Islamic Balanced 1.05% KAICB Truffle SCI Flexible 0.72% TSFH

Nedgroup Investments Core Diversified 0.46% NIDCB VIAB1

Nedgroup Investments Balanced (Truffle) 0.78% TMBFG VIAB1

Obsidian SCI Balanced 1.21% OSBB1

Prescient Living Planet 1.31% PLPB1 SBB2

Prudential Balanced 0.92% PRAB

PSG Balanced 1.17% PBFE

Rezco Managed Plus 1.43% RPFCC

Rezco Value Trend 1.79% RVTCC

Sanlam Select Managed (Tantalum) 0.94% SBPB3

Satrix Balanced Index 0.36% STIB1

SIM Balanced 1.25% SBCB3

SMM Balanced FoF 1.32% SAOF

SAOF

Equity General TER Equity Large Caps TER Global Multi Asset Low Equity TER

36ONE BCI Equity 1.53% MNTR Satrix Equally Weighted Top 40 Index 0.38% STWB1 Allan Gray Orbis Global Optimal FoF 1.87%Aylett Equity Prescient 1.22% AYEA1 Coronation Global Capital Plus FF 0.95%Bateleur Equity Prescient 0.90% BEPFB4

Coronation Equity 0.69% CECB4

Coronation Top 20 0.64% CTTB4

Fairtree Equity Prescient 0.89% FIPFSI

Foord Equity 0.23% FECB2

Investec Equity 0.46% EQTI

Investec Value 1.92% VALI

Marriott Dividend Growth 0.88% mdgc

Mazi Capital Prime Equity 0.90% MCEFB2

Nedgroup Inv Rainmaker 1.28% NIRB

Prudential Dividend Maximiser 1.63% PDMB

Prudential Equity 1.57% PEFB

PSG Equity 2.51% PEFE

Sanlam Select Optimised Equity (Sentio) 1.14% SMGB7

Satrix ALSI Index 0.34% STAB1

Satrix Dividend Plus Index 0.39% STDB1

Satrix Momentum Index 0.46% SMFB2

Satrix RAFI 40 Index 0.54% STRB1

SIM General Equity 0.73% SGEB6

SIM Top Choice Equity 0.96% STTB4

SMM Equity FoF 1.65% SAEF

SMM Equity Index (SWIX) 0.60% SMEB5

Truffle SCI General Equity 0.88% TRGEC

Global Multi Asset High Equity TER Global Multi Asset Flexible TER Global Equity General TER

Coronation Global Managed 1.10% CGMB4 Coronation Global Em Mkts Flex 1.14% CGEMB4 Allan Gray Orbis Global Equity FF 1.97%Investec Global Strategic Managed 1.43% GBFH Foord International FF 1.58% FIFB2 Glacier Global Stock FF* 1.98%

Nedgroup Inv Global Flexible FF 1.17% NEIG Investec Global Franchise FF 1.08%Investec World Wide Equity FF 1.39%Nedgroup Inv Global Equity FF (Veritas) 1.17%Old Mutual Global Equity 1.63%Sanlam Global Equity 1.24%Satrix MSCI World Equity Index FF 0.43%

Global Real Estate General TER Worldwide Multi Asset Flexible TER

Catalyst Global Real Estate Prescient FF 1.45% CGRE Coronation Market Plus 0.98% CMPL4

Nedgroup Inv Global Property 1.25% NEFCB Coronation Optimum Growth 1.03% COGFB4

Foord Flexible FoF 0.35% FFCB2

The Buy list (Preferred list) of funds above follows the rigorous and thorough investment research and analysis process of both the SMM and Glacier research teams. Each fund was carefully selected per category, in order to ensure that they are best in class and assist in the

combination with other strategies/funds. Together, both team have done a comprehensive due diligence per strategy/fund, to ensure investors comfort and peace-of-mind when investing in any of the funds listed above. TER's listed are based on the fee classes available on

the Glacier Platform.

PLEASE NOTE: THIS DOCUMENT IS FOR INTERNAL USE ONLY

*An estimated Total Expense Ratio (TER) is reflected due to insufficient track record.

The TERs disclosed are generally the institutional class (clean class) of the CIS. This entails that a Linked Investment Service Provider does not receive a rebate for housing this class of fund on their platform.

74

Contac t Us

This document is intended for use by financial intermediaries. The

information in this document is provided for information purposes only

and any opinions expressed and information provided by any employee,

officer or director of Sanlam and any of its subsidiaries during and

pursuant to this presentation should not be construed as the rendering of

advice to clients. Although we have taken reasonable steps to ensure the

accuracy of the information, neither Sanlam nor any of its subsidiaries

accept any liability whatsoever for any direct, indirect or consequential

loss arising from the use of, or reliance in any manner on the information

provided in this document.

Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group |

Private Bag X5 | Tyger Valley 7536 | Email [email protected]

| Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web

www.glacier.co.za | Twitter @GlacierBySanlam | Reg No 1999/025360/07

| Licensed Discretionary Financial Services Provider FSP 770, trading as

Glacier Invest.

Sanlam Multi-Manager International (Pty) Ltd. | A member of the Sanlam

Group | Private Bag X8 | Tyger Valley 7536 | Tel +27 21 950 2600 | Fax

+27 21 950 2126 | Web www.smmi.com | Reg No 2002/030939/07 |

Licensed Discretionary Financial Services Provider, acting as Juristic

Representative under the Glacier Financial Solutions FSP 770

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