Elite Funds Commentary and Fairbairn Capital WatchList 3rd Quarter

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Elite Funds Commentary and Fairbairn Capital WatchList 3rd Quarter Powered By Docstoc
					FAIRBAIRN CAPITAL INVESTMENT INTELLIGENCE




Elite Funds Commentary and Fairbairn Capital
WatchList 3rd Quarter
October 2009
Contents



       Elite Funds Commentary


page   3       Introduction: Commentary on Elite Funds
       5       Elite Category: Guide to comments
       6       The Indicator
       7       Asset Class Matrix



       Solution Funds:
       8       Elite Category: High Income Funds
       12      Elite Category: Real Income Funds
       15      Elite Category: Stable Growth
       19      Elite Category: Balanced Growth
       23      Elite Category: High Growth


       Building Block Funds:
       26      Elite Category: Money Market
       27      Elite Category: Fixed Interest
       29      Elite Category: Equity
       34      Elite Category: Property
       36      Elite Category: Foreign Equity
       39      Elite Category: Foreign Asset Allocation and Fixed Interest




       Fairbairn Capital WatchList


       41      Introduction: The WatchList
       42      WatchList: Guide to comments
       43      WatchList: Money Market and Fixed Interest Funds
       47      WatchList: Asset Allocation Funds
       51      WatchList: Equity and Property Funds
       58      WatchList: Foreign Funds (Equity, Fixed Interest and Asset Allocation)


       63      Fund selection methodology


       64      Disclaimer




                                                                                        2
INTRODUCTION: Commentary on Elite Funds




Fairbairn Capital Investment Intelligence presents the quarterly Elite fund comparison, a summary of the performance
of the Elite funds up until the end of September 2009. This is an independent assessment of the performance of the Elite
funds compared to other funds in the same Association of Savings and Investments of South Africa (ASISA) category.


Please note: The funds within each Elite category can have different benchmarks and objectives. Also note that the Elite categories
can contain funds that are from different ASISA categories. Moreover, funds in the ASISA Varied Specialist and Targeted Absolute
and Real Return categories have very diverse benchmarks and objectives. Therefore, this document should be used in conjunction
with the relevant fact sheets of the individual funds as these will contain more detailed information about each fund’s specific
objectives, as well as commentary from the fund manager about the performance of each fund. Investors must bear in mind that
statistical measures are backward looking and their accuracy is, therefore, dependent upon the length of time studied to compute the
measurements. As a result, these statistics cannot tell investors exactly what will happen in the future due to ever changing market
dynamics.


The subsequent pages contain the following information on each of the 11 Elite categories: fund objectives and general
information; our comments on each fund’s risk-adjusted performance; comments from the fund manager where
supplied. The pages also include four diagrams.




1. The risk/return chart
This is a plot of the risk and return of the fund relative to
others in the same Elite category. Funds which fall into a
                                                                                 30%
different ASISA category than the majority of the funds in the
Elite category are indicated by a different shape on the graph.                                 B                        C
                                                                                 25%
As such their performance figures should be interpreted with
care. These funds have been included for completeness.
                                                                                 20%


How to use this chart:
                                                                        Return




                                                                                 15%
It is important to compare like-with-like. In the adjacent
                                                                                                A
diagram: Fund B achieved a higher return by taking on the
                                                                                 10%
same level of risk as fund A and hence is more efficient
than fund A. Fund C takes on more risk than fund B and yet
                                                                                 5%
achieves the same level of return as fund B so it is less efficient
than fund B. Although fund A and B can be directly compared,
                                                                                 0%
as can fund C and B, one needs to be cautious about                                    0%           5%               10%                  15%

comparing fund C to A as fund C takes on more risk to achieve                                              Risk

a higher return than fund A and hence has a more aggressive
risk profile.
                                                                        In this example, C is represented by a circle, because it falls
continued on next page                                                  into a different ASISA category than A and B.

                                                                                                                                                3
2. Risk statistics ranking chart
Risk-adjusted returns are a more accurate method of assessing
the the performance of an investment fund as it is important to
reflect the level of risk taken in generating alpha. In essense,
risk-adjusted statistics measure excess return per unit of
excess risk, another way of asking, “how much bang for your
buck?”


We focus on two standard risk-adjusted measures: the Sharpe
and Sortino ratios.
The Sharpe ratio: measures excess return (above the risk-
free rate) relative to total risk or volatility of the portfolio.
The Sortino ratio: similar to the Sharpe ratio, but it measures
excess return (above a specified benchmark) per unit of
downside risk. Downside risk is measured because investors
dislike underperformance. The two statistics are then combined
over a one, three and five year period and the overall result
is ranked in quartiles. This allows for a comparison of the risk
statistics between funds in each of the Elite categories. This is
the key summary statistic.




How to use this chart:
The higher the risk statistic (Sortino and Sharpe ratios),
the better the fund manager is at generating excess returns
without taking on excessive levels of risk. The risk statistics
have been placed in quartile diagrams for ease of comparison
with peers. Funds in the 1st and 2nd quartiles are those that
have delivered better than average risk-adjusted performance.




3. Quartile Indicator table and
maximum run-up/drawdown
This table displays the quartile ranking of each Elite funds in
categories where such comparisons are allowed. Also included
for certain funds is the maximum drawdown - the largest
loss a fund experienced within a specific time period, measured
from peak to bottom and expressed as a percentage – and
maximum run-up - the largest gain a fund experienced within
a specific time period, measured from bottom to peak and
expressed as a percentage. Dividend yield and historic price:
earnings (PE) ratio are shown for equity funds.




4. Asset Allocation graph
This graph shows how each fund’s asset allocation has changed
over the relevant period. In the case of equity funds, it shows
which sectors the fund manager has invested in.




Please refer to the disclaimer on the final page.


                                                                    4
Elite Category: Guide to Comments

COMMENTS


                           mp le
e xa
Based on the combined results of these
quantitive assessments:                                                                12%

Investec Property Equity: The Fund delivered a higher
rate of return with lower levels of volatility during the period                                                                 Investec Property Equity




                                                                                                                                    le

                                                                   Annualised Return
                                                                                       9%
under consideration, compared to the other Fund in this Elite




                                                                                                                                 mp
category.




                                                                                                xa
The Fund’s ability to convert risk (total and downside) into                           6%
                                                                                                                                                    Old Mutual SA Quoted Property




                                                                                              e
outperformance of the risk free rate and the ASISA prescribed
category benchmark has deteriorated over one year, when
                                                                                       3%
compared to its ASISA category peers. Within this context, the
Fund’s overall ability to convert risk into outperformance was
superior, being positioned in the top quartile.                                        0%
                                                                                            0%           5%           10%              15%           20%             25%            30%

Old Mutual SA Quoted Property: The Fund delivered a                                                               Annualised Standard Deviation
lower rate of return with higher levels of volatility during the
                                                                                       Source: Morningstar                                                           3 year analysis
period under consideration, compared to other Fund in this
Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of the risk free rate and the                             Risk Statistics
ASISA prescribed category benchmark has improved slightly
over one year, when compared to its ASISA category peers.                                               1 Year             3 Years              5 Years               Overall
                                                                                          100%
Within this context, the Fund’s overall ability to convert




                                                                                                                            ple
risk into outperformance was above average, being
                                                                                            75%
positioned in the second quartile.




                                                                                                                         am
                                                                                            50%




                                                                                                   ex
                                                                                                                                                          Key Summary Statistic

                                                                                            25%



                                                                                             0%


                                                                                                       Investec Property Equity
                                                                                                       Old Mutual SA Quoted Property




                                                                                       Source: Morningstar




                                                                                        Quartile Indicator




                                                                                                                ple
                                                                                                                                                      Top quartile    2nd quartile

                                                                                                                                                      3rd quartile    4th quartile




                                                                                                             am
                                                                                                                          Property




                                                                            ex
                                                                                                                                       1 year            3 yrs           5 yrs

                                                                               Investec Property Equity A                                    5.53           9.41              N/A

                                                                               Old Mutual SA Quoted Property                                 6.07           6.36           23.52


                                                                      * Quartile performances of individual funds are ranked within the
                                                                      relevant ASISA unit trust categories.

                                                                    Source: Morningstar




                                                                                                                                                                                          5
The Indicator


                                                                                                                    Global     Global
                                       Equities                     Properties   Bonds    Cash    Interest   CPI   Equities    Bond            Currencies
                                                                                                   Rates             ($)        ($)

 Movement of +/-     5%           5%         5%          5%            5%         1%       1%       1%       1%      5%         1%       10%      10%       10%

                 JSE All        JSE          JSE         JSE         JSE SA      SA All                             MSCi      Barclays   USD      GBP       EUR
 Benchmark        Sare       Financials   Resources   Industrials   Property     Bond     STeFI                     World     (Lehman)   ZAR      ZAR       ZAR

 Coronation


    Foord


  Investec


 OMIGSA MSI


   Marriott


  Prudential


  RMB AM


     SIM


 Consensus
   view




                    KEY
Up movement

Down movement

Neutral/ Within suggested bands

No view




The Indicator gives you a view of what South Africa’s leading investment houses are thinking about which direction various asset
classes and the economy are likely to be moving over the next 12 months. These views were provided between the 1st and 16th
of October 2009. The OMIGSA view is from the Macro Strategy Investments boutique, and the currency view from the Economic
Research Unit. The Consensus View is our snapshot summary of these thoughts.




                                                                                                                                                                  6
Asset Class Matrix

The Asset Class Matrix ranks the total returns of the various
                                                                     RANK            ONE YEAR          THREE YEARS           FIVE YEARS
asset classes, along with inflation (CPI), over the last one,
                                                                        1             Property           Property             Property
three and five years. It gives an indication of how certain funds
would have performed, given various asset allocations.                  2                 Cash             Cash                Equities

                                                                        3       Balanced Portfolio   Balanced Portfolio   Balanced Portfolio
CPI declined during the quarter as lower producer prices                4                 Bonds          Inflation              Cash
started to filter through. CPI eased in September to 6.1%
                                                                        5             Equities            Bonds                Bonds
year-on-year, from 6.4% in August, and is edging closer to
                                                                        6             Inflation           Equities          International
the Reserve Bank’s target of 3%-6%. Food inflation has come
from double digit levels, while goods inflation has also slowed         7          International       International          Inflation

due to a stronger rand. However, above-target level services
                                                                    Source: Inet Bridge
inflation, including Eskom’s proposed 45% tariff hike over the
near term and above-inflation wage settlements, cloud the
inflation outlook. The Bank surprised with a 50 basis point cut
in August, taking the repo rate to 7%, 500 basis points below
the recent peak of 12%. Cash returns have fallen accordingly,
and the performance of cash relative to other asset classes can
be expected to decline.


The bond market had a decent quarter on a stronger rand and
better-than-expected PPI data. The All Bond Index gained 3%
versus a disappointing 0.3% from the previous quarter. It also
has an impressive one-year total return of 9.1%.


Global equity markets rallied with surprising vigour over the
third quarter, as a good outlook on corporate earnings and
fresh hopes about the economic recovery spurred investor
sentiment, and boosted major markets to year-to-date highs.
The rally was auspicious as September marked the one-year
anniversary of the collapse of Lehman’s Brothers. In dollar
terms, the MSCI World index put on 17.6% for the quarter,
while the MSCI Emerging market index added 21%. However,
the rand also continued to strengthen, ending the quarter at
R7.51/$, a 20% year-to-date appreciation against the dollar.
This has eroded the returns from foreign investments in rand
terms.


Local equities performed relatively well in line with global
counterparts, although lagging other emerging markets
(Brazil’s BOVESPA returned 31.5% in dollar terms). The JSE’s
All Share index rose 13.9% (total return) over the quarter,
led by financials and industrials. Despite the spot price of gold
hitting record highs during September, the JSE’s Gold Mining
index only returned 6%.


SA Listed property returned an impressive 12.2% during the          Investors in a balanced portfolio (containing 65% equity, 15%
quarter outperforming bonds and marginally underperforming          cash, 10% bonds and 10% property) would have received
equities as most listed property companies continue to report       inflation-beating returns, over the past one, three and five
distribution growth, even though vacancies are rising. Over         years, while reducing the volatility associated with pure equity
the last one, three and five years, listed property outperformed    or listed property portfolios
all other asset classes.




                                                                                                                                               7
Elite Category: High Income Funds

FUND OBJECTIVES
Coronation Strategic Income: The Fund aims to provide
a higher level of income with greater diversification than a
traditional money market or pure income fund with moderate
                                                                                        15%
capital growth. The Fund has a flexible mandate with no
prescribed maturity limits for the securities in which it invests
and a flexible duration policy as it seeks to protect capital in                        12%
                                                                                                          Nedgroup Inv Flexible
times of bond market weakness. The Fund has a defensive                                                         Income                                                      Old Mutual Enhanced
                                                                                                                                         Coronation Strategic                     Income




                                                                    Annualised Return
asset allocation with exposure to fixed interest instruments,                                                                                  Income
                                                                                         9%
including high yielding corporate bonds, government bonds,                                          Marriott Core Income
                                                                                                                                                            SYmmETRY Fixed Interest


property stocks, preference shares, inflation-linked bonds and
other high yielding investments. The Fund is Regulation 28                              6%

compliant and is managed by Mark le Roux and Tania Miglietta.
Benchmark: BEASSA ALBI (1 – 3 years) Index                                              3%
Risk Factor: 2 (out of 5)
ASISA Category: Domestic Fixed Interest Varied Specialist
Inception: July 2001                                                                    0%
                                                                                               0%              1%                     2%                3%                      4%                 5%

                                                                                                                       Annualised Standard Deviation
Marriott Core Income: The objective of the Fund is
to provide a high and growing managed income from a                                            Source: Morningstar                                                                    3 year analysis


portfolio of high yielding equity, interest bearing and financial
instruments in South Africa. The primary objective is a
yield comparable with the RSA All Bond Index yield with an
important secondary consideration being growth in income.                                Risk Statistics
The universe comprises securities, financial investments listed
on the RSA stock exchange, and liquid assets. The Fund is                                                                                                                              Overall
                                                                                                      1 Year                    3 Years                  5 Years
managed by the Marriott Investment Team.                                                100%

Benchmark: Achieve a yield comparable to the ALBI yield
Risk Factor: 2 (out of 5)                                                               75%


ASISA Category: Domestic Fixed Interest Varied Specialist
                                                                                        50%
Inception: February 2001

                                                                                        25%

Nedgroup Investments Flexible Income: The Fund aims
to maximise income and identify opportunistic capital gains                              0%
                                                                                                                     Coronation Strategic Income       Nedgroup Inv Flexible Income
by actively repositioning the portfolio across a dynamic mix                                                         Old Mutual Enhanced Income
                                                                                                                     Marriott Core Income
                                                                                                                                                       SYmmETRY Fixed Interest


of cash, bonds and other fixed interest securities. The Fund
                                                                    Source: Morningstar

typically displays higher volatility than a money market fund,
but significantly lower volatility than a general equity or            NB: Marriott Core Income is measured against the ALBI

balanced fund. The Fund is managed by Guy Toms and
Eldria Fraser (Prescient).
                                                                                         Performance Indicator
Benchmark: 110% STeFI Call Rate
Risk Factor: 2 (out of 5)
ASISA Category: Domestic Fixed Interest Varied Specialist
                                                                                                                              High Income
Inception: July 1999
                                                                                                                                                   1 year            3 yrs               5 yrs

                                                                              Coronation Strategic Income                                           10.29                 9.21               9.47
Old Mutual Enhanced Income: The Fund aims to offer
a relatively high sustainable level of income as well as                      Marriott Core Income A                                                 9.14                 8.97             12.76

opportunities for capital gains. Income is derived from a range               Nedgroup Inv Flexible Inc A                                           10.30               10.86                9.90
of interest-bearing assets, including exposure to listed property
                                                                              Old Mutual Enhanced Income A                                          10.20                 9.80             10.69
shares, when appropriate. Income is paid in the form of
                                                                              SYmmETRY Fixed Interest FoF A                                          9.18                 9.15               8.82
quarterly distributions and can be supplemented with regular
automatic withdrawals. Capital growth is generated from              * Quartile performances are not disclosed as the unit trusts in this
exposure to bonds and property shares.                               ASISA category have very different return and risk objectives
                                                                        Source: Morningstar
OBJECTIVES continued on next page

                                                                                                                                                                                                        8
The Fund is Regulation 28 compliant and is managed by Wikus
                                                                                          Maximum Drawdown
Furstenberg.
                                                                                                         1 year       3 yrs      5 yrs
Benchmark: BEASSA ALBI (1-3 year) Index (Total Return)
Risk Factor: 2 (out of 5)                                            Coronation Strategic Income          -0.15%     -1.06%      -1.06%

ASISA Category: Domestic Fixed Interest Varied Specialist            Marriott Core Income A                0.00%     -0.12%      -3.47%
Inception: July 2004                                                 Nedgroup Inv Flexible Inc A          -0.07%     -0.73%      -0.73%

                                                                     Old Mutual Enhanced Income A         -1.11%     -2.12%      -2.56%
SYmmETRY Fixed Interest FoF: This is a multi-managed
                                                                     SYmmETRY Fixed Interest FoF A        -0.60%     -0.87%      -2.11%
Regulation 28 compliant domestic fixed interest fund. It is
primarily aimed at investors seeking high levels of income with
                                                                    * Quartile performances are not disclosed as the unit trusts in this
a possibility of capital appreciation over the long term. The       ASISA category have very different return and risk objectives
Fund aims to produce returns superior to those of domestic          Source: Morningstar


income unit trust funds in the medium to long term.
In order to achieve this the investment mandate allows
investment managers to invest in the entire spectrum of                   Fund Yield
interest-bearing securities and listed property, etc. The Fund
is managed by Malcolm Charles (Investec), Mark le Roux and           Coronation Strategic Income                                    7.31
Tania Miglietta (Coronation).                                        Marriott Core Income A                                         9.16
Benchmark: BEASSA ALBI (1-3 year) Index
                                                                     Nedgroup Inv Flexible Inc A                                    9.94
Risk Factor: 2 (out of 5)
                                                                     Old Mutual Enhanced Income A                                   8.33
ASISA Category: Domestic Fixed Interest Varied Specialist
Inception: June 2001                                                 SYmmETRY Fixed Interest FoF A                                  8.68

                                                                    Source: Morningstar


COMMENTS
Based on the combined results of these                                    Fund Size                                               R mill
quantitive assessments:
Nedgroup Investments Flexible Income: The Fund                       Coronation Strategic Income                               2,954.46

delivered a higher rate of return with below average levels of       Marriott Core Income A                                      851.76
volatility during the period under consideration, compared to
                                                                     Nedgroup Inv Flexible Inc A                               4,696.55
other Funds within this Elite category. The Fund’s ability to
                                                                     Old Mutual Enhanced Income A                              2,436.30
convert risk (total and downside) into outperformance of the
                                                                     SYmmETRY Fixed Interest FoF A                               253.19
risk free rate and its benchmark has improved over three years
only to deteriorate over the last 12 months, when compared to
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was                                       Maximum Runup
above average, being positioned in the second quartile.
                                                                                                         1 year       3 yrs      5 yrs

                                                                     Coronation Strategic Income         10.47%      30.31%     57.24%
Marriott Core Income: The Fund delivered a lower rate of
                                                                     Marriott Core Income A                9.13%     29.58%     82.32%
return with low levels of volatility during the period under
consideration, compared to other Funds within this Elite             Nedgroup Inv Flexible Inc A         10.31%      36.31%     60.26%
category. The Fund’s ability to convert risk (total and downside)    Old Mutual Enhanced Income A        10.20%      32.41%     66.05%
into outperformance of the risk free rate and the ALBI has
                                                                     SYmmETRY Fixed Interest FoF A         9.83%     30.08%     52.61%
deteriorated over one and three years, when compared to
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was
above average, being positioned in the second quartile.




                                                                                                                                           9
Coronation Strategic Income: The Fund delivered a below
                                                                    Asset Allocation
average rate of return with above average levels of volatility
during the period under consideration, compared to other            Coronation Strategic Income - 3 years
                                                                                   100%
Funds within this Elite category. The Fund’s ability to convert
risk (total and downside) into outperformance of the risk free                         80%

rate and its benchmark has deteriorated over three years
only to improved over the last 12 months, when compared to                             60%


its ASISA category peers. Within this context, the Fund’s
                                                                                       40%
overall ability to convert risk into outperformance was
above average, being positioned in the second quartile.                                20%



Old Mutual Enhanced Income: The Fund delivered an                                       0%
                                                                                              Sep 06              Sep 07                      Sep 08                      Sep 09
average rate of return with high levels of volatility during the
period under consideration, compared to other Funds within                                     Bonds       Cash      Property           Preference Shares         Other
this Elite category. The Fund’s ability to convert risk (total
and downside) into outperformance of the risk free rate and        Marriott Core Income
its benchmark has deteriorated over one and three years,                               100%

when compared to its ASISA category peers. Within this
                                                                                       80%
context, the Fund’s overall ability to convert risk into
outperformance was above average, being positioned in                                  60%

the second quartile.
                                                                                       40%

SYmmETRY Fixed Interest FoF: The Fund delivered a below
                                                                                       20%
average rate of return with above average levels of volatility
during the period under consideration, compared to other
                                                                                        0%
Funds within this Elite category. The Fund’s ability to convert                               Sep 06              Sep 07                      Sep 08                   Sep 09

risk (total and downside) into outperformance of the risk free
                                                                                                       Bonds                 Cash                   Property
rate and its benchmark has deteriorated slightly over one and
three years, when compared to its ASISA category peers.
                                                                    Nedgroup Investments Flexible Income - 3 years
Within this context, the Fund’s overall ability to convert
                                                                                   100%
risk into outperformance was below average, being
positioned in the third quartile.                                                      80%



                                                                                       60%


ELITE FUND MANAGER’S COMMENTS
                                                                                       40%

Coronation Strategic Income: “The fund delivered 3.51%
                                                                                       20%
for the quarter, comfortably ahead of cash returns of 1.8%.
During September we continued to increase the inflation-
                                                                                        0%
linked and floating rate bond exposure in the fund. During the                                Sep 06              Sep 07                      Sep 08                      Sep 09

month we also sold down the Liberty International position
                                                                                               Bonds     Cash     Property          Preference shares       Foreign Cash
to zero, fortunately prior to the rights issue announcement
which placed the share under a fair amount of pressure. Listed
property holdings were also trimmed as certain stocks had run
hard during the period.”




COMMENTS continued on next page
                                                                                                                                                                                   10
Marriott Core Income: “The fund was restructured four
                                                                      Asset Allocation
months ago to ensure the production of stable distributions for
the next eight months. This restructure involved the purchase
                                                                      Old Mutual Enhanced Income - 3 years
of twelve-month negotiable term deposits and the locking in of                       100%

interest rates which are now higher than current rates. Marriott
                                                                                         80%
aims to take advantage of any price weakness in either the
listed property or the bond market over the eight months as                              60%
the recessionary effects are fully priced into the property and
bond markets. This move into the next part of the investment                             40%

cycle may result in some volatility in price. Investors have
                                                                                         20%
enjoyed capital stability for the last two years, combined
with high income distributions; hence this forecast of income                            0%

stability with a small element of capital volatility remains very                                Sep 06                  Sep 07                   Sep 08                       Sep 09

attractive especially in the light of the potential for a move into
                                                                                                Bonds     Cash      Property      Preference Shares        Inflation Linked bonds
non-cash instruments.”


Nedgroup Investments Flexible Income: “The fund
                                                                      SYmmETRY Fixed Interest FOF - 3 years
structure remains short, mainly invested in money market
                                                                                         100%
floating rate notes, inflation-linked bonds and short-dated
bond credit, while maintaining our zero long government
                                                                                         80%
bond position. Continued funding pressures should place
upward pressure on yields. We have increased credit exposure                             60%

selectively where higher yields could be locked-in. We have
                                                                                         40%
also increased the inflation-linked exposure in the portfolio.
Although property shares strengthened over the quarter,
                                                                                         20%
given that the environment remains difficult due to the rise in
building and funding costs, we continue to hold zero property                             0%
                                                                                                 Sep 06                  Sep 07                   Sep 08                       Sep 09
exposure. We will continue to monitor the asset class for
opportunities in stocks with attractive yields.”                                                                 Bonds            Cash                Property            Other



Old Mutual Enhanced Income: “On a net basis, we created a
fair amount of liquidity/flexibility in the fund by selling nominal
RSA bonds, preference shares (prefer corporate debt) and also
listed property (still concerned about rising vacancies) during
the quarter. Proceeds from these sales were used to increase
the CPI-linked debt holding to 4.7% and non-government
or corporate debt to a total of 33.8%. We continue to like
the combination of the certainty of a six-monthly coupon, a
higher yield (given attractive credit spreads) and lower interest
rate volatility (as the term to maturity of most of our non-
government debt in the fund is below seven years).”


SYmmETRY Fixed Interest FoF: “The Symmetry Fixed
Interest Fund returned 2.84% for the quarter, beating its
ALBI 1-3 yr benchmark by 95 basis points. The fund was
more heavily weighted in the shorter end of the curve but
maintained a longer duration relative to its benchmark
throughout the quarter. Investec continued to sell off equities
during the quarter as they believed they were overpriced,
however they’ve been adding to their bond holdings through
some valuable yield pickups within the corporate bond space.
Coronation has increased its exposure substantially in the 1-3
year areas of the curve over the quarter as it continues to seek
out inflation linked and floating rate bonds.”


                                                                                                                                                                                        11
Elite Category: Real Income Funds

FUND OBJECTIVES
Nedgroup Investments Positive Return: The Fund seeks                                       14%

to offer investors total returns that are in excess of inflation
                                                                                           12%
over the medium-term through active asset allocation and with                                                    Nedgroup Investments
                                                                                                                    Positive Return
a high emphasis on capital protection. The Fund specifically
                                                                                           10%
aims not to have negative returns over any 12 month period.




                                                                      Annualised Return
                                                                                                                            Old Mutual Real Income                             Prudential Inflation Plus
The manager may invest in a mix of local and international                                 8%
equities, bonds, property and cash. A maximum of 75% of                                                                                                                       SIM Inflation Plus


the Fund’s assets may be invested in domestic equities at all                              6%

times. The Fund is Regulation 28 compliant and is managed by
Herman Steyn and Ronell van Rooyen (Prescient).                                            4%

Return Benchmark: CPI+4% p.a.
                                                                                           2%
Risk Benchmark: No negative 12 month period
Risk Factor: 2 (out of 5)                                                                  0%
ASISA Category: Domestic AA Targeted Absolute Return                                            0%          1%             2%                3%         4%       5%                   6%     7%            8%

Inception: June 2006


Old Mutual Real Income: The Fund aims to provide both                                                                        Annualised Downside Deviation

a growing income and some level of capital appreciation.                                   Source: Morningstar                                                                             1 year analysis

It actively seeks opportunities to protect the capital in the
Fund against inflation. This should result in the income being
paid out on an ever-rising capital base. The Fund aims for                                 Risk Statistics
inflation protection by investing across the full spectrum of
fixed interest investments and through selective exposure to
                                                                                                      1 Year                        3 Years                   5 Years                      Overall
equities and listed property. The Fund’s portfolio is limited to a                  100%

combined exposure of 35% to listed property and equities, but
can invest up to a maximum of 25% in either of these asset                                75%


classes. The Fund is managed by Peter Brooke.
Benchmark: CPI+3% p.a.                                                                    50%


Risk Factor: 2 (out of 5)
                                                                                          25%
ASISA Category: Domestic AA Prudential Low Equity
Inception: April 2006
                                                                                          0%

                                                                                                                 Nedgroup Investments Positive Return            Old Mutual Real Income

Prudential Inflation Plus: The Fund aims to produce above                                                        Prudential Inflation Plus                       SIM Inflation Plus



inflation (or real) returns by investing in inflation-linked bonds,
                                                                        Source: Morningstar
other interest-bearing securities and equities. The Fund targets
a benchmark return of inflation plus 6% over a rolling three-
year period (before fees). The Fund is Regulation 28 compliant
                                                                                           Performance Indicator
and is managed by Graham Mason and Michael Moyle.
Benchmark: Headline Inflation + 6%                                                                                                                                     Top quartile         2nd quartile

Risk Factor: 3 (out of 5)                                                                                                                                              3rd quartile         4th quartile


ASISA Category: Domestic AA Targeted Absolute Return
Inception: June 2001                                                                                         Real Income/ Capital Preservation

                                                                                                                                                        1 year             3 yrs              5 yrs
SIM Inflation Plus: The Fund invests in a flexible combination                   Nedgroup Inv Positive Rtn A                                             10.31                11.29                  N/A
of investments in the equity, bond and money markets, both
                                                                                 Prudential Inflation Plus A                                                 8.38                9.29           13.61
locally and abroad, aiming for positive real returns (comprising
                                                                                 SIM Inflation Plus                                                          7.36                7.11           10.64
capital and income growth) over the medium to longer term.
The Fund is Regulation 28 compliant and is managed by Philip                     Old Mutual Real Income A                                                11.83                   8.90                N/A

Liebenberg and Gerhard Cruywagen.
                                                                       * Quartile performances are not disclosed as the unit trusts in the
                                                                       Trageted & Absolute Return category have very different return
                                                                       and risk objectives. The exception is Old Mutual Real Income Fund
                                                                       which belongs to the Prudential Low Equity category.
OBJECTIVES continued on next page                                         Source: Morningstar




                                                                                                                                                                                                                12
Benchmark: CPI + 4% over a rolling three year period (after
                                                                                           Maximum Drawdown
annual service fee)
                                                                                                     1 year   3 yrs     5 yrs
Risk Factor: 3 (out of 5)
ASISA Category: Domestic AA Targeted Absolute Return                 Nedgroup Inv Positive Rtn A     -0.69%   -3.79%       N/A

Inception: April 1999                                                Prudential Inflation Plus A     -6.46%   -8.61%    -8.61%

                                                                     SIM Inflation Plus              -3.00%   -5.63%    -5.63%
COMMENTS
                                                                     Old Mutual Real Income A        -2.12%   -3.61%       N/A
Based on the combined results of these
quantitive assessments:
Nedgroup Investments Positive Return: The Fund
delivered a higher rate of return with low levels of downside
                                                                                             Maximum Runup
volatility during the period under consideration, compared to
                                                                                                     1 year   3 yrs     5 yrs
other Funds within this Elite category. The Fund’s ability to
convert risk (total and downside) into outperformance of the         Nedgroup Inv Positive Rtn A     10.32%   37.92%       N/A

risk free rate and its benchmark has deteriorated slightly over      Prudential Inflation Plus A     13.82%   30.61%   89.32%
the last 12 months, when compared to its ASISA category              SIM Inflation Plus               9.91%   22.93%   65.76%
peers. Within this context, the Fund’s overall ability to
                                                                     Old Mutual Real Income A        13.58%   29.19%       N/A
convert risk into outperformance was superior, being
positioned in the top quartile.


Old Mutual Real Income: The Fund delivered a below
average rate of return with below average levels of downside
volatility during the period under consideration, compared             Fund Size                                         R mill

to other Funds within this Elite category. The Fund’s ability
to convert risk (total and downside) into outperformance of          Nedgroup Inv Positive Rtn A                       3,792.74
the risk free rate and its benchmark has improved over the           Prudential Inflation Plus A                       2,626.68
last 12 months when compared to its ASISA category peers.
                                                                     SIM Inflation Plus                                1,761.85
Within this context, the Fund’s overall ability to convert
                                                                     Old Mutual Real Income A                           304.83
risk into outperformance was above average, being
positioned in the second quartile.


Prudential Inflation Plus: The Fund delivered an above
average rate of return with high levels of downside volatility
during the period under consideration, compared to other
Funds within this Elite category. The Fund’s ability to convert
risk (total and downside) into outperformance of inflation
and its benchmark has deteriorated over one and three years
when compared to its ASISA category peers. Within this
context, the Fund’s overall ability to convert risk into
outperformance was below average, being positioned in
the third quartile.


SIM Inflation Plus: The Fund delivered a lower rate of return
with above average levels of downside volatility during the
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of inflation and its benchmark
has deteriorated over one and three years when compared to
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was
below average, being positioned in the third quartile.




                                                                                                                                  13
ELITE FUND MANAGER’S COMMENTS                                        Asset Allocation

                                                                     Nedgroup Investments Positive Return - since inception
                                                                                        100%
Nedgroup Investments Positive Return: “Over the year,
market gyrations have been used to lift the minimum return of                           80%

the portfolio and adjust portfolio protection. Given the market
                                                                                        60%
rally, the risk-adjusted pricing of equities has deteriorated
and we have reduced protected equity content marginally.
                                                                                        40%
Currently, fully protected equity exposure is approximately
30% with protection out to March 2010. The cap on the                                   20%

portfolio has been maintained. The combined strategy results
                                                                                         0%
in net effective equity exposure marginally below 5%. Going                                    Sep 06                      Sep 07                        Sep 08                      Sep 09
forward, we will use any strength in the equity market to lock
                                                                                                 Net effective equity exposure                    Equity hedge (contract value)
in returns and lift the level of protection further. Should the                                  Money Market Instruments                         Bonds

market fall, we will look at opportunities to rebalance the level
of protection so as to participate in the equity market from a       Old Mutual Real Income - since inception
                                                                                        100%
lower level.”

                                                                                         80%
Old Mutual Real Income: “With interest rates continuing to
fall in the quarter, the fund benefited from its ability to invest                       60%

across the full range of local assets. The stronger returns
                                                                                         40%
available from equity and property were particularly attractive
compared to cash and bond returns helping boost returns. As                              20%

a result the annual return of 11.8% beat all income, money
                                                                                          0%
market and bond funds over the last year. Within its Prudential
                                                                                               Sep 06                      Sep 07                        Sep 08                      Sep 09
Low Equity category, it was the sixth best fund over 12 months
                                                                                                Equities      Property       Bonds          Preference Shares
and would have been in the same position in the specialist
                                                                                                Cash       Commodities
income category. We believe this highlights the value in having
a flexible mandate when searching for income and is a key            Prudential Inflation Plus - 3 years
competitive advantage of the fund.”                                                     100%



                                                                                         80%
Prudential Inflation Plus: “All domestic asset classes made
modest positive return contributions to the fund’s performance                           60%

while the foreign assets detracted slightly. With effect from 1
                                                                                         40%
August 2009, the Fund’s return objective was reduced from CPI
plus 6% to CPI plus 5% over rolling 36-month periods. This is
                                                                                         20%
a consequence of revisions to our long run equilibrium inflation
and real return assumptions for South Africa. We see corporate                           0%
                                                                                               Sep 06                      Sep 07                        Sep 08                      Sep 09
bond valuations as attractive on an absolute basis and
relative to cash. Listed property valuations are somewhat less                                          Equities   Property         Bonds     Inflation-linked bond   Cash        International
compelling on an absolute basis, but compare well with cash.”
                                                                     SIM Inflation Plus - 3 years

SIM Inflation Plus: “The fund’s offshore component                                      100%
disappointed because we had too little equity exposure and the
                                                                                        80%
rand strength also detracted from performance. Our increased
local equity exposure and additional purchase of inflation-                             60%
linked bonds at attractive yields added value. After the recent
                                                                                        40%
equity market gains, we are now adopting a more cautious
approach over the short term. During the past three months,
                                                                                        20%
all additional equity exposure was implemented via protected
                                                                                         0%
equity structures. This provides investors with some downside
                                                                                               Sep 06                     Sep 07                         Sep 08                     Sep 09
protection in a falling market. Over the medium term, however,
                                                                                                Equities                 Property                Bonds                  ILB's
the opportunity for significant real returns still lies within
                                                                                                Cash                     Preference Shares       Other                  International assets
equities as an asset class.”


                                                                                                                                                                                                  14
Elite Category: Stable Growth

FUND OBJECTIVES
Coronation Balanced Defensive: The Fund aims to provide
a reasonable level of current income and seeks to preserve
capital in real terms, with lower volatility over the medium
                                                                                   12%

to long-term. The Fund is broadly diversified across all asset                                                     Coronation Balanced
                                                                                                                        Defensive                      Old Mutual Stable Growth
                                                                                   10%
classes and sectors and will follow an active asset allocation




                                                                   Annualised Return
                                                                                                                         Nedgroup Inv Stable
strategy, combined with an appropriate security selection                              8%
                                                                                                                                                                SYmmETR Y Defensive FoF
process. The Fund complies with Regulation 28 of the South
                                                                                       6%

African Pension Funds Act, which limits exposure to listed real                                                                           RMB Conservative
                                                                                       4%
estate and international assets to 25% and 15% respectively.
In addition, exposure to a combination of domestic and foreign                         2%


equities may not exceed 40%. The Fund’s return objective is to                         0%

outperform cash plus 3% and it is not a guaranteed fund. The                                0%         2%              4%                6%             8%                10%              12%


Fund is managed by Charles de Kock and Mark le Roux.                                                                Annualised Standard Deviation

Benchmark: Alexander Forbes 3-month (STeFI) Index plus
                                                                                        Source: Morningstar                                                                1 year analysis
3% per annum
Risk Factor: 2 (out of 5)                                           * Those funds which fall outside the ASISA unit trust category
                                                                    represented by the majority of funds within this grouping,
ASISA Category: Domestic AA Prudential Low Equity                   are depicted by a full circle.
Inception: February 2007


Old Mutual Stable Growth: The Fund aims to achieve real                                     Risk Statistics
returns of CPI + 4% p.a. over three-year periods as well as
to provide a stable stream of income. It invests in a broad                                         1 Year                  3 Years               5 Years                   Overall
range of asset classes, including local equities, bonds, cash      100%

and property and international equities, bonds and cash.
Up to 15% of the Fund may be invested offshore. The Fund                75%

invests between 10% and 40% in equities and 0% and 15%
in property. Inflation-linked bonds and foreign exposure                50%


could potentially provide some protection against unexpected
                                                                        25%
inflation. The Fund is Regulation 28 compliant and is managed
by Peter Brooke.
                                                                              0%
Benchmark/Performance Target: CPI/CPI + 4% p.a. (gross
                                                                                                        Coronation Balanced Defensive            Nedgroup Inv Stable
of fees) over 3 year periods                                                                            Old Mutual Stable Growth                 RMB Conservative

Risk Factor: 2 (out of 5)                                                                               SYmmETRY Defensive FoF


ASISA Category: Domestic AA Prudential Low Equity                   Source: Morningstar

Inception: July 2007


RMB Conservative: The Fund forms part of the risk-profiled
range of unit trust funds. It seeks to provide a degree of                              Quartile Indicator
income and growth with a lower level of risk and volatility. The
                                                                                                                                                         Top quartile       2nd quartile
Fund will aim to achieve a minimum of 15% and a maximum of
                                                                                                                                                         3rd quartile       4th quartile
35% effective equity exposure to achieve the given objective,
with a lower level of risk. The Fund is managed by Vlad                                                                  Stable Growth
Anuchin.
                                                                                                                                          1 year             3 yrs              5 yrs
Benchmark: 25% ALSI, 25% ALBI, 25% STEFI, 25% Prop
                                                                           Coronation Balanced Def A                                           11.2                 N/A            N/A
Risk Factor: 2 (out of 5)
ASISA Category: Domestic AA Prudential Low Equity                          Nedgroup Inv Stable A                                               8.81                 N/A            N/A

Inception: July 2005                                                       Old Mutual Stable Growth A                                          10.8                 N/A            N/A

                                                                           RMB Conservative A                                                  4.99              6.49              N/A

                                                                           SYmmETRY Defensive FoF A                                            7.99              8.52             12.96


                                                                   * Quartile performances of individual funds are ranked within the
OBJECTIVES continued on next page                                  relevant ASISA unit trust categories.
                                                                    Source: Morningstar


                                                                                                                                                                                                 15
SYmmETRY Defensive FoF: This is a flexible asset allocation
                                                                                       Maximum Drawdown
Fund aimed at long term capital growth, with a bias towards
                                                                                                  1 year   3 yrs     5 yrs
absolute returns and capital preservation. The flexible mandate
is employed not to strive for maximum performance but to          Coronation Balanced Def A       -2.29%      N/A       N/A

allow the portfolio to be biased towards absolute returns and     Nedgroup Inv Stable A           -3.32%      N/A       N/A
capital preservation in the shorter term. Over longer periods     Old Mutual Stable Growth A      -3.88%      N/A       N/A
the Fund attempts to produce inflation-beating returns. This is
                                                                  RMB Conservative A              -3.43%   -7.88%       N/A
achieved through stock selection and an active asset allocation
                                                                  SYmmETRY Defensive FoF A        -6.07%   -9.44%    -9.44%
strategy capable of achieving the performance target. The Fund
is Regulation 28 compliant and is managed by Daniel Malan
(RE:CM), Steve Mills (Sanlam), Clyde Rossouw (Investec).
Benchmark: CPI + 5% p.a. (before fees and income tax) over
any 3 year period
Risk Benchmark: Avoid capital losses over any 12-month                                    Maximum Runup

period                                                                                            1 year   3 yrs     5 yrs
Risk Factor: 2 (out of 5)                                         Coronation Balanced Def A       13.63%      N/A       N/A
ASISA Category: Domestic AA Prudential Variable Equity
                                                                  Nedgroup Inv Stable A           11.46%      N/A       N/A
Inception: June 2001
                                                                  Old Mutual Stable Growth A      14.69%      N/A       N/A

Nedgroup Investments Stable: The Fund seeks to offer              RMB Conservative A               8.94%   21.04%       N/A

investors total returns that are in excess of inflation over      SYmmETRY Defensive FoF A        14.97%   27.87%    84.01%
the medium-term. A maximum of 40% of the Fund’s assets
may be invested in domestic equities at all times. The Fund
is Regulation 28 compliant and is managed by Dave Foord
(Foord).
                                                                    Fund Size                                         R mill
Benchmark: CPI + 4% p.a. over rolling 3-year periods and
after fees
Risk Factor: 2 (out of 5)                                         Coronation Balanced Def A                          623.20

ASISA Category: Domestic AA Prudential Low Equity                 Nedgroup Inv Stable A                              327.38
Inception: November 2007                                          Old Mutual Stable Growth A                         257.36

                                                                  RMB Conservative A                                 716.35

                                                                  SYmmETRY Defensive FoF A                          4,135.58
COMMENTS
Based on the combined results of these
quantitive assessments:
Coronation Balanced Defensive: The Fund delivered a
higher rate of return with below average levels of volatility
during the period under consideration, compared to other
Funds within this Elite category. Within this context, the
Fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and its benchmark
was above average over the one year period when
compared to its ASISA category peers, as it was
positioned in the second quartile.




Comments continued on next page

                                                                                                                               16
Old Mutual Stable Growth: The Fund delivered a above
                                                                     Asset Allocation
average rate of return with above average levels of volatility
during the period under consideration, compared to other             Coronation Balanced Defensive - since inception
Funds within this Elite category. Within this context, the
                                                                                   100%
Fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and its benchmark                             80%

was above average over the one year period when
                                                                                   60%
compared to its ASISA category peers, as it was
positioned in the second quartile.                                                 40%



RMB Conservative: The Fund delivered a lower rate of                               20%

return with low levels of volatility during the period under
                                                                                    0%
consideration, compared to other Funds within this Elite                                  Mar 07                      Dec 07                       Sep 08                  Jun 09
category. The Fund’s ability to convert risk (total and downside)
                                                                                               Equity                       Property                FI/Bonds               Cash
into outperformance of the risk free rate and its benchmark                                    Pref Shares/Other            Int Cash/FI             Int Equities

has deteriorated over the last 12 months, when compared to
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was              Nedgroup Investments Stable - since inception
poor, being positioned in the bottom quartile.                                    100%



                                                                                   80%
SYmmETRY Defensive FoF: : The Fund delivered a below
average rate of return with high levels of volatility during the
                                                                                   60%
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total and                 40%

downside) into outperformance of the risk free rate and its
                                                                                   20%
benchmark has improved over three years only to deteriorate
over the last 12 months, when compared to its ASISA category                        0%
peers. Within this context, the Fund’s overall ability to                                  Dec 07                     Jun 08                  Dec 08                    Jun 09

convert risk into outperformance was below average,                                                Equities                  Property                 Bonds                  Cash

being positioned in the third quartile.                                                            Intl Equities             Intl Commodities         Intl Bonds             Intl Cash



Nedgroup Investments Stable: The Fund delivered an
above average rate of return with below average levels of
volatility during the period under consideration, compared to        Old Mutual Stable Growth - since inception

other Funds within this Elite category. Within this context,                      100%

the Fund’s ability to convert risk (total and downside)
                                                                                  80%
into outperformance of the risk free rate and its
benchmark was below average over the one year period                              60%

when compared to its ASISA category peers, as it was
                                                                                  40%
positioned in the third quartile.
                                                                                  20%


                                                                                   0%
ELITE FUND MANAGER’S COMMENTS                                                             Sep 07                   Mar 08                 Sep 08               Mar 09               Sep 09


Coronation Balanced Defensive: “The fund enjoyed a                                            Equities                           Property                          Bonds
good quarter. The return of 5.5% was comfortably ahead of                                     Cash                               Commodities                       Preference Shares

cash returns of 1.8%. Looking forward, the low interest rate                                  International assets

environment is likely to remain in place for some time. We
will have to seek higher income from areas such as property,
preference shares, corporate bonds and inflation-linked bonds.
Within equities we continue to favour the more predictable
good cash generating business over the cyclical ones.”




FUND MANAGER COMMENTS continued on next page

                                                                                                                                                                                             17
Old Mutual Stable Growth: “Due to its more conservative              Asset Allocation
mandate, the fund, with a maximum of 40% in equity, could
not gain as much as the equity market. However, it enjoyed an
                                                                      RMB Conservative - from March 07*
excellent quarter and year-to-date gains were double digits. It
                                                                                    100%
would appear that the fund bought more growth assets than its
peers in the crash because relative performance has been very
                                                                                        80%
strong recently. As markets have re-rated and expected returns
have fallen we have sold into strength. Therefore, total equity                         60%

exposure has fallen from 35% to 30%. The fund has been very
effective in changing its equity exposure over the last year,                           40%


ranging between 25% and 35%.”
                                                                                        20%


RMB Conservative: “The fund achieved a return of 4.07%
                                                                                        0%
this quarter, boosted by strong equity performance as well                                       Mar 07                      Dec 07              Sep 08                 Jun 09

as the positive returns from the fixed interest component.                                            International assets       Other       Cash            Bonds       Equity

The fund has maintained a slight underweight equity position
and remains fairly sector neutral at present, with a bias to           *Note: RMB Conservative Fund changed from a Fund of Funds
                                                                                                       structure in February 2007
Financials and Industrials where some companies with solid
cash flow prospects trade at discounts to intrinsic value.
Despite further Rand strength we believe that the long-term
fundamentals for offshore allocation remain appealing and will
therefore continue to operate close to prudential limits.”
                                                                      SYmmETRY Defensive FoF - 3 years
                                                                                    100%
SYmmETRY Defensive FoF: “On the back of a strong
performing equity market the Defensive FoF ended the third
                                                                                     80%
quarter well on the front foot, bringing the return over 1 year
to 7.9%. Performance since the Fund’s inception in 2001 is                           60%

well ahead of the Fund’s return target. During September,
                                                                                     40%
we completed the restructuring of the Fund which entailed
the disinvestment of RECM Inflation+7% and investment                                20%

in Coronation Inflation+5%. We are also rebalancing the
                                                                                        0%
managers to ensure no manager is larger than 35% of the
                                                                                                Sep 06                         Sep 07                 Sep 08                      Sep 09
total portfolio to decrease manager concentration risk. The
new Defensive strategic manager weights are (old weights                                     Equity       Property     Bonds     Cash    Preference Shares      Other   International

in brackets): 20% SIM (20%), 30% Prescient (30%), 30%
Investec (50%) and 20% Coronation (0%). We maintain the
50/50 split between more risk aware mandates (Prescient
and SIM) and more return focused mandates (Coronation and
Investec). The best performing manager for the quarter was
Investec, while SIM and Prescient also delivered good returns.“


                                                                  Nedgroup Investments Stable: “The allocation to equity was
                                                                  increased during the quarter, partly due to selective purchases
                                                                  of companies we like, but also due to a reduction in the short
                                                                  future position in the portfolio. The effective allocation to
                                                                  equity, taking into account the international portfolio as well,
                                                                  has increased to 30% during the quarter. The focus, however,
                                                                  remains on quality companies with conservative funding
                                                                  structures and solid balance sheets. We have stayed away from
                                                                  investing in poorer quality companies where the prices have
                                                                  fallen significantly during the preceding six months, especially
                                                                  where question marks around the sustainability of their
                                                                  business models remain.”



                                                                                                                                                                                           18
Elite Category: Balanced Growth

FUND OBJECTIVES
Coronation Balanced Plus: The Fund aims to achieve long-
term capital growth and moderate income generation. The
Fund is managed in accordance with prudential investment
                                                                                         12%
guidelines and represents Coronation’s “best investment                                                                                                                       Coronation Balanced Plus


view” on asset allocation and instrument selection. The Fund                             10%
                                                                                                                                                                             Nedgroup Inv Managed
                                                                                                                                                SYmmETRY Balanced FoF
invests across a variety of asset classes and instruments




                                                                     Annualised Return
                                                                                          8%
with a bias towards equities over the investment cycle. The                                                                                                      Foord Balanced

                                                                                                                                                                                        Old Mutual Balanced
Fund has exposure to a combination of domestic and foreign                                6%


equities which may not exceed 75%, with a maximum offshore
                                                                                          4%

exposure not exceeding 15%.The Fund’s return objective is to
outperform the composite benchmark. The Fund is Regulation                                2%



28 compliant and is managed by Louis Stassen and Karl                                     0%

Leinberger.                                                                                    0%                   3%                 6%                   9%                      12%                       15%


                                                                                                                           Annualised Standard Deviation
Benchmark: Composite benchmark (63% equity, 22% bonds,
10% international and 5% cash)
                                                                                         Source: Morningstar                                                                              3 year analysis
Risk Factor: 3 (out of 5)
ASISA Category: Domestic AA Prudential Variable Equity
Inception: April 1996
                                                                                         Risk Statistics

Foord Balanced: The Fund’s objective is to achieve steady
growth of income and capital as well as the preservation of                                         1 Year                   3 Years                       5 Years                         Overall

                                                                     100%
real capital (capital as adjusted for inflation) and to exceed the
benchmark return (see below). The portfolio is managed to
                                                                       75%
comply with the statutory investment limits set for retirement
funds in South Africa. The Fund is managed by Dave Foord.              50%

Benchmark: Peer Group Average
Risk Factor: 3 (out of 5)                                              25%

ASISA Category: Domestic AA Prudential Variable Equity
Inception: August 2002                                                       0%

                                                                                                Coronation Balanced Plus       Foord Balanced                        Old Mutual Balanced
                                                                                                SYmmETRY Balanced FoF          Nedgroup Inv Managed

Nedgroup Investments Managed: The Fund seeks to offer
                                                                      Source: Morningstar
investors medium- to long-term income and capital growth by
actively investing in a mix of local and international assets. The
manager may invest in a combination of local and international
equities, bonds, property and cash. A maximum of 75% of the
Fund’s assets may be invested in domestic equities at all times.
The Fund is managed by Piet Viljoen (RE:CM).                                             Quartile Indicator

Benchmark: Average of Medium & Variable Equity Prudential                                                                                                            Top quartile          2nd quartile

categories                                                                                                                                                           3rd quartile          4th quartile

Risk Factor: 3 (out of 5)
ASISA Category: Domestic AA Prudential Variable Equity                                                                      Balanced Growth

Inception: November 1997                                                                                                                         1 year                 3 yrs                 5 yrs

                                                                              Coronation Balanced Plus A                                             10.75                 10.53                19.04

                                                                              Foord Balanced                                                           7.23                  7.67               18.85

                                                                              Nedgroup Inv Managed R                                                 15.55                   9.59               16.82

                                                                              Old Mutual Balanced R                                                    7.32                  7.24               15.78

                                                                              SYmmETRY Balanced FoF A                                                11.84                        9.4           16.04




                                                                     * Quartile performances of individual funds are ranked within the
                                                                     relevant ASISA unit trust categories. Source: Morningstar
                                                                      Source: Morningstar
OBJECTIVES continued on next page

                                                                                                                                                                                                                    19
Old Mutual Balanced: The Fund aims to offer investors long
                                                                                           Maximum Drawdown
term capital growth. It invests across equities, bonds and cash
                                                                                                          1 year       3 yrs      5 yrs
with a bias towards equities (shares) offering long term value
rather than those with more cyclical returns. Up to 15% of            Coronation Balanced Plus A         -12.51%     -20.26%    -20.26%

the portfolio may be invested offshore. This balanced portfolio       Foord Balanced                     -11.04%     -19.02%    -19.02%
offers exposure to all sectors of the market but with a lower         Nedgroup Inv Managed R               -6.28%    -11.27%    -11.27%
risk profile than pure equity funds. The Fund is Regulation 28
                                                                      Old Mutual Balanced R              -15.15%     -27.64%    -27.64%
compliant and is managed by Peter Brooke and Anil Thakersee.
                                                                      SYmmETRY Balanced FoF A              -7.27%    -15.17%    -15.17%
Benchmark/Performance Target: CPI/CPI + 6% p.a. (gross
of fees)                                                             * Quartile performances are not disclosed as the unit trusts in this
Risk Factor: 3 (out of 5)                                            ASISA category have very different return and risk objectives
                                                                     Source: Morningstar
ASISA Category: Domestic AA Prudential Variable Equity
Inception: March 1994

                                                                                              Maximum Runup
SYmmETRY Balanced FoF: This is a flexible asset allocation
                                                                                                         1 year      3 yrs       5 yrs
Fund aimed at long term capital growth, with a bias towards
absolute returns and capital preservation. The flexible mandate       Coronation Balanced Plus A         26.56%     35.05%      138.87%

is employed to allow the portfolio to be biased towards               Foord Balanced                     20.20%     27.91%      142.91%
absolute returns and capital preservation in the shorter term.        Nedgroup Inv Managed R             21.13%     31.62%      117.49%
Over longer periods the Fund attempts to produce significant
                                                                      Old Mutual Balanced R              26.49%     34.79%      127.31%
inflation-beating returns. This is achieved through stock
                                                                      SYmmETRY Balanced FoF A            20.58%     30.97%      110.33%
selection and an asset allocation strategy capable of achieving
the performance target. The Fund is Regulation 28 compliant
and is managed by RE:CM, Coronation and Prudential.
Benchmark/Performance Target: CPI + 7% p.a. (before
fees and income tax) over any 3 year period                               Fund Size                                                R mill

Risk Benchmark: Avoid capital losses over any 18 month
periods                                                               Coronation Balanced Plus A                                4,454.52

Risk Factor: 3 (out of 5)                                             Foord Balanced                                            2,533.06
ASISA Category: Domestic AA Prudential Variable Equity                Nedgroup Inv Managed R                                    2,386.25
Inception: June 2001
                                                                      Old Mutual Balanced R                                     1,651.83

                                                                      SYmmETRY Balanced FoF A                                  3,240.99



COMMENTS
Based on the combined results of these
quantitive assessments:


Coronation Balanced Plus: The Fund delivered a higher rate
of return with above average levels of volatility during the
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of the risk free rate and its
benchmark has deteriorated slightly over the last 12 months,
when compared to its ASISA category peers. Within this
context, the Fund’s overall ability to convert risk into
outperformance was superior, being positioned in the
top quartile.




COMMENTS continued on next page


                                                                                                                                            20
Foord Balanced: The Fund delivered a below average rate of          Asset Allocation
return with above average levels of volatility during the period
under consideration, compared to other Funds within this Elite      Coronation Balanced Plus - 3 years

category. The Fund’s ability to convert risk (total and downside)                 100%

into outperformance of the risk free rate and its benchmark
                                                                                   80%
has deteriorated over one and three years, when compared to
its ASISA category peers. Within this context, the Fund’s
                                                                                   60%
overall ability to convert risk into outperformance was
superior, being positioned in the top quartile.                                    40%



                                                                                   20%
Nedgroup Investments Managed: The Fund delivered an
above average rate of return with below average levels of                           0%

volatility during the period under consideration, compared to                             Sep 06                         Sep 07                     Sep 08                       Sep 09

other Funds within this Elite category. The Fund’s ability to                                     Int Equities   Int Cash/FI    Pref Shares/Other   Cash     Bonds    Property     Equity

convert risk (total and downside) into outperformance of the
risk free rate and its benchmark has improved slightly over the
last 12 months, when compared to its ASISA category peers.          Foord Balanced - 3 years

Within this context, the Fund’s overall ability to convert                       100%

risk into outperformance was superior, being positioned
in the top quartile.                                                             80%



                                                                                 60%
Old Mutual Balanced: The Fund delivered a lower rate of
return with high levels of volatility during the period under
                                                                                 40%
consideration, compared to other Funds within this Elite cat-
egory. The Fund’s ability to convert risk (total and downside)
                                                                                 20%
into outperformance of the risk free rate and its benchmark
has deteriorated over one and three years, when compared to
                                                                                  0%
its ASISA category peers. Within this context, the Fund’s                                Sep 06                        Sep 07                       Sep 08                       Sep 09
overall ability to convert risk into outperformance was
below average, being positioned in the third quartile.                                   Equity          Property         Bonds          Cash        Other        International



SYmmETRY Balanced FoF: The Fund delivered an above av-
erage rate of return with below average levels of volatility dur-   Nedgroup Investments Managed - 3 years
ing the period under consideration, compared to other Funds
                                                                                 100%
within this Elite category. The Fund’s ability to convert risk
(total and downside) into outperformance of the risk free rate                    80%

and its benchmark has deteriorated over three years, only to
                                                                                  60%
improve over the last 12 months, when compared to its ASISA
category peers. Within this context, the Fund’s overall
                                                                                  40%
ability to convert risk into outperformance was above
average, being positioned in the second quartile.                                 20%



                                                                                   0%

                                                                                         Sep 06                        Sep 07                       Sep 08                       Sep 09


                                                                                            Equity               Bonds               Cash            International Assets




                                                                                                                                                                                            21
ELITE FUND MANAGER’S COMMENTS                                          Asset Allocation

Coronation Balanced Plus: “The fund had an excellent                   Old Mutual Balanced - 3 years
quarter in a strong market. The fund is the top performing
                                                                                       100%
fund in its sector over virtually all meaningful periods. While
equities remain our preferred asset class, we have taken                               80%

profits in the third quarter rally. Equities now make up 66%
                                                                                       60%
of fund as opposed to 75% earlier in the year. We continue
to believe that global equities are more attractive than local                         40%

equities. Considering the very strong rand, we believe that
                                                                                       20%
investors currently have an excellent opportunity to diversify
their portfolios. We have taken full advantage of this in all our                         0%

funds.”                                                                                           Sep 06                      Sep 07                      Sep 08                       Sep 09


                                                                                               Equity   Property     Bonds   Cash   Local Unit Trusts   Commodities     International Assets
Foord Balanced: “The Foord Balanced Fund retains its
defensive stance. The fund’s preference for quality companies
in the equity component where earnings growth is more certain
                                                                       SYmmETRY Balanced FoF - 3 years
has not changed. We remain unconvinced about the pace of
demand recovery being priced in by commodity shares, and                               100%


have limited the allocation to this sector to a small number of
                                                                                        80%
high quality, well financed businesses. The interest bearing
assets have been diversified to include high quality, short                             60%

duration corporate bonds. The rising distribution growth from
                                                                                        40%
the listed property sector should prove to be a good inflation
hedge, and is preferred over government bonds. We maintain                              20%

a full allocation to foreign assets.”
                                                                                          0%

                                                                                                   Sep 06                     Sep 07                      Sep 08                       Sep 09
Nedgroup Investments Managed: “For the month of                                                             Equity                     Property                       Bonds
                                                                                                            ILB's                      Cash                           Preference Shares
September we really don’t have much to comment on with                                                      Other                      International Assets

regards to the fund composition. Significant activity on the
selling side since July has abated as we finished repositioning
the fund for the latest price-to-value relationships prevailing.
Ultimately, it resulted in the fund carrying around a 52%
exposure to domestic equity, with a further 20% invested in
the RE:CM Global Fund that itself is currently about 35% in
cash. On an add-up basis, the equity exposure is, therefore,
approximately 65% with the balance in cash and related yield
instruments.”


Old Mutual Balanced: “The fund has been positioned for
a global recovery and this remains so. Our key actions for
the quarter were to increase the rand hedge nature of the
portfolio and to take profits on specific counters that have re-    During September, we completed the restructuring of the
rated strongly. We were pleased with the strong performance         Fund which increased the number of managers from 3 to 4
of listed property over the quarter which contributed to the        through the introduction of the Investec Inflation+7% fund.
fund’s performance. We added local inflation linked bonds to        The purpose is to increase the Fund’s manager diversification
the portfolio at attractive real yields. This served to improve     and decrease the maximum exposure to any underlying
the yield generated by the fund and will enhance the risk and       manager to35%. The new strategic weights for Balanced
return profile of the fund.”                                        are (old weights in brackets): 30% Investec (0%), 20%
                                                                    Coronation (40%), 30% Prudential (40%) and 20% RE:CM
SYmmETRY Balanced FoF: “The third quarter saw a                     (20%). RE:CM continued its stellar performance and was the
continuation of the robust performance that started in March.       top performing manager during the quarter. Prudential also
The strong showing this year has led to the Fund returning          continued their superb performance of the past year, while
12.4% over the 1 year period – in line with its return target of    Coronation continued to benefit from the strong recovery in
Inflation+7%.                                                       equity markets.”

                                                                                                                                                                                                22
Elite Category: High Growth

FUND OBJECTIVES
Coronation Market Plus: The Fund aims to achieve
long-term capital growth by investing primarily in equities. The
                                                                                  14%
Fund has a flexible mandate and is broadly diversified across
                                                                                  12%
all asset classes and sectors with an inherent large cap equity                                                                                                             Coronation Market Plus
                                                                                                                               Investec Opportunity
bias over the investment cycle. The equity portion focuses                        10%




                                                                    Annualised Return
on a maximum of 40 shares and invests in “high conviction”                              8%
                                                                                                                                                                     Old Mutual Flexible
ideas to maximise capital growth over the long term. The Fund
                                                                                        6%
has an aggressive asset allocation. A minimum of 80% of the
                                                                                        4%
Fund’s assets may be invested locally, with maximum domestic
exposure of 100%, and with maximum offshore exposure not                                2%


exceeding 20%. The Fund is managed by Neville Chester.                                  0%
                                                                                             0%              4%                   8%                       12%                   16%                    20%
Benchmark: Composite benchmark (63% equity, 22% bonds,
                                                                                                                        Annualised Standard Deviation
10% international and 5% cash) + 2% p.a.
Risk Factor: 3 (out of 5)
                                                                          Source: Morningstar                                                                                           3 year analysis
ASISA Category: Domestic AA Flexible
Inception: July 2001


Investec Opportunity: The Fund aims to produce dependable                                    Risk Statistics

inflation-beating returns, while minimising downside risk. The
Fund invests in a mix of South African equities, bonds and                                         1 Year                  3 Years                        5 Years                       Overall

money market instruments, as well as international equity and         100%


fixed interest investments. Regulation 28 currently limits equity
exposure to 75% of the fund (90% with listed property) and                 75%


international exposure to 20% (for retirement funds exempted
from the 15% limit). The allocation of assets is actively                  50%


managed with a bias towards equities that are attractively
priced given their inherent value. The objective is to achieve             25%


returns well in excess of inflation measured over three to five
year periods. The Fund is managed by Clyde Rossouw.                              0%

                                                                                                      Coronation Market Plus        Old Mutual Flexible          Investec Opportunity
Benchmark/Performance Target: CPI +6% pa (under
current market conditions) measured net of fees over 3 to 5
                                                                        Source: Morningstar
years
Risk Factor: 3 (out of 5)
                                                                                             Quartile Indicator
ASISA Category: Domestic AA Flexible
Inception: May 1997                                                                                                                                                Top quartile          2nd quartile

                                                                                                                                                                   3rd quartile          4th quartile


Old Mutual Flexible: The Fund aims to maximise returns over
                                                                                                                               High Growth
the longer term by investing across equity, bond and money
                                                                                                                                                1 year                3 yrs                5 yrs
markets. It achieves its performance objectives, firstly, by
actively moving between these asset classes (to take                           Coronation Market Plus                                                 12.44              11.20               18.76
advantage of changing economic and market conditions) and,                     Investec Opportunity R                                                  8.14              10.75               18.23
secondly, through focused stock selection based on in-house
                                                                               Old Mutual Flexible R                                                  10.95                8.92              18.03
research. The Fund’s only asset allocation constraint is its 0% -
20% offshore holding. The Fund is managed by Peter Brooke.           * Quartile performances of individual funds are ranked within the
Benchmark/Performance Target: CPI (Effective 01/10/07)/              relevant ASISA unit trust categories

CPI + 8% p.a. (gross of fees)                                            Source: Morningstar


Risk Factor: 4 (out of 5)
ASISA Category: Domestic AA Flexible
Inception: August 1996




                                                                                                                                                                                                              23
COMMENTS                                                                                     Maximum Drawdown

Based on the combined results of these                                                                1 year    3 yrs     5 yrs
quantitive assessments:                                              Coronation Market Plus          -14.16%   -24.39%   -24.39%

Coronation Market Plus: The Fund delivered a high rate               Investec Opportunity R          -11.93%   -18.32%   -18.32%
of return with above average levels of volatility during the         Old Mutual Flexible R           -16.97%   -31.43%   -31.43%
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of the risk free rate and its
benchmark has improved slightly over one and three years,
when compared to its ASISA category peers. Within this                                        Maximum Runup
context, the Fund’s overall ability to convert risk into                                             1 year     3 yrs    5 yrs
outperformance was superior, being positioned in the
                                                                     Coronation Market Plus          31.00%     38.89%   138.55%
top quartile.
                                                                     Investec Opportunity R          22.78%     35.88%   130.94%

Investec Opportunity: The Fund delivered an above aver-              Old Mutual Flexible R           33.62%     41.08%   149.95%

age rate of return with low levels of volatility during the period
under consideration, compared to other Funds within this Elite
category. The Fund’s ability to convert risk (total and downside)
into outperformance of the risk free rate and its benchmark            Fund Size                                            R mill

has deteriorated over one and three years, when compared to
its ASISA category peers. Within this context, the Fund’s            Coronation Market Plus                              1,204.32

overall ability to convert risk into outperformance was              Investec Opportunity R                              5,556.31
above average, being positioned in the second quartile.
                                                                     Old Mutual Flexible R                                429.31


Old Mutual Flexible: The Fund delivered a lower rate of
return with higher levels of volatility during the period under
consideration, compared to other Funds within this Elite cat-
egory. The Fund’s ability to convert risk (total and downside)
into outperformance of the risk free rate and its benchmark
has deteriorated over three years only to improve over the
last 12 months, when compared to its ASISA category peers.
Within this context, the Fund’s overall ability to convert
risk into outperformance was above average, being posi-
tioned in the second quartile.




                                                                                                                                     24
ELITE FUND MANAGER’S COMMENTS                                        Asset Allocation

Coronation Market Plus: “The fund delivered 11.8% for the            Coronation Market Plus - 3 years
quarter, comfortably ahead of the benchmark return of 10.3%                              100%

and for the year to date has delivered a total return of 17.9% -
                                                                                          80%
well ahead of the benchmark return of 10.8%.The benefits of a
fully flexible fund have once again been borne out by the ability
                                                                                          60%
to increase equities appropriately when valuations were very
attractive as well as to move quickly into other asset classes as                         40%

these valuations have also turned.”
                                                                                          20%


Investec Opportunity: “The portfolio enjoyed better returns
                                                                                           0%
in the second quarter, elevating the performance into positive                                     Sep 06                    Sep 07                    Sep 08                  Sep 09

return territory, year to date. The portfolio continues to have                                Equity                        Property                     Bonds
                                                                                               Cash                          Preference Shares/Other      Int Cash/FI
a reasonable holding in equity and we believe that good value                                  Int Equities

is being unlocked by better market conditions. The near term
earnings prognosis for the companies’ shares we hold is muted.       Investec Opportunity - 3 years
However, attractively valued good businesses should at least                            100%

maintain their capital value, and as the economy improves, this
                                                                                        80%
should translate into higher profits and better capital values in
the future. The domestic bond market is starting to struggle                            60%

again, amid sticky inflation and increased issuance of new pa-
per emanating from the anticipated budget shortfall for 2010.                           40%


We continue to wait for more attractive levels before commit-
                                                                                        20%
ting money to this area of the market. Inflation expectations
are also starting to rise globally. In respect of listed property,                       0%

we still do not see much more upside than cash and hence we                                      Sep 06                     Sep 07                  Sep 08                     Sep 09


retain larger holdings in cash.”                                                                   Equity     Property     Bonds      Cash   Commodities        International Assets



Old Mutual Flexible: “The fund enjoyed an excellent quarter
as its exposure to local and international equity and property       Old Mutual Flexible - 3 years
                                                                                         100%
benefited from increased risk appetite. Year-to-date returns of
nearly 20% highlight the importance of being invested despite                            80%

all the uncertainty surrounding markets at the beginning of the
                                                                                         60%
year. Looking forward, the sharp rebound means that there is
less value within equities and we have sold down some of the                             40%

equity exposure during the quarter, increasing cash to 20% of
                                                                                         20%
the fund. Another feature of the quarter has been the contin-
ued strength of the rand. As a result, within local equities we                           0%

have bought some good quality, profitable companies, which                                        Sep 06                     Sep 07                    Sep 08                  Sep 09

will benefit if the rand weakens.”
                                                                                                          Equity                      Property                     Bonds
                                                                                                          Cash                        Commodities                  Local Unit Trusts
                                                                                                          International assets




                                                                                                                                                                                        25
Elite Category: Money Market

FUND OBJECTIVES
Old Mutual Money Market: The Fund aims to preserve the
investor’s capital while offering high levels of income. It invests
                                                                                          0.09%
in money market securities with a maturity of less than 12                                                                                    Old Mutual Money Market A
                                                                                          0.08%
months (securities that are usually only available to the




                                                                      Relative Return
                                                                                          0.07%
wholesale or institutional investor). These are securities such
                                                                                          0.06%
as bankers’ acceptances, commercial paper, negotiable
                                                                                          0.05%
certificates of deposit and government bills. All gains are
                                                                                          0.04%
declared daily and interest is reinvested (compounded)
                                                                                          0.03%
monthly. The Fund’s average duration may not exceed 90 days.
                                                                                          0.02%
It can be used as a safe haven during times of stock market
                                                                                          0.01%
turbulence or to reduce timing risks by phasing a lump sum                                              Peer Average
                                                                                          0.00%
into the stock market over time. The Fund is managed by                                       0.00% 0        .01% 0    .02% 0      .03% 0   .04% 0     .05% 0      .06% 0      .07% 0       .08%

Ameesha Chagan.                                                                                                            Relative Standard Deviation

Benchmark: STeFI
                                                                                        Source: Morningstar                                                                  3 year analysis
Risk Factor: 1 (out of 5)
ASISA Category: Domestic Fixed Interest Money Market                                      Risk Statistics
Inception: August 1998
                                                                                                          1 Year                3 Years          5 Years                  Overall
                                                                                        100%
COMMENTS
Based on the combined results of these                                                   75%

quantitive assessments:
                                                                                         50%
Old Mutual Money Market: the Fund outperformed its ASISA
category peer average during the period under consideration,
                                                                                         25%
while taking on more risk relative to the peer average.
The Fund’s ability to convert risk (total and downside) into
                                                                                          0%
outperformance of the risk free rate and the ASISA prescribed
category benchmark was better than average over five years                                               Old Mutual Money Market


and it improved over one and three years when compared to             Source: Morningstar

its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was                                   Quartile Indicator
above average, being positioned in the second quartile.
                                                                                                                                                           Top quartile      2nd quartile

                                                                                                                                                           3rd quartile      4th quartile




                                                                                                                                Money Market
ELITE FUND MANAGER’S COMMENTS                                                                                                               1 year              3 yrs           5 yrs

                                                                              Old Mutual Money Market                                         10.56              10.28               8.94
Old Mutual Money Market: “During September, maturi-
ties in the fund were mainly used to increase the exposure to         * Quartile performances of individual funds are ranked within the
                                                                      relevant ASISA unit trust categories.
the three-month area of the yield curve. This exposure was
                                                                      Source: Morningstar
predominantly taken through asset backed securities as well
as corporate paper due to the attractive spreads offered. Going
forward, we will invest in the zero to six-month area of the                              Fund Yield
yield curve while continuing to search for single name credits
as they have become rather attractive in our opinion.”                        Old Mutual Money Market                                                                               11.46


                                                                      Source: Morningstar




                                                                                          Fund Size                                                                                 R mill


                                                                              Old Mutual Money Market                                                                        9,387.69


                                                                                                                                                                                                   26
Elite Category: Fixed Interest

FUND OBJECTIVES
Coronation Bond: The Fund aims to offer a balance between
income and capital growth in order to maximise investment
returns. Active duration calls are combined with the active
management of both interest rate and credit risk. The Fund                         12%

invests in domestic fixed interest instruments and cash. The
duration range around the All Bond Index is approximately                          10%
                                                                                                                Old Mutual Income

two. The Fund’s return objective is to outperform the All Bond                                                                                            Coronation Bond




                                                                   Annualised Return
                                                                                       8%
Index. The Fund is managed by Mark le Roux.                                                                                                                          Prudential High Yield Bond

Benchmark: BEASSA All Bond Index                                                       6%

Risk Factor: 3 (out of 5)
                                                                                       4%
ASISA Category: Domestic Fixed Interest Bond
Inception: August 1997
                                                                                       2%




Prudential High Yield Bond: The Fund provides South                                    0%
                                                                                            0%             2%                   4%                       6%                 8%                     10%
African investors access to high-income opportunities in
the South African bond market by investing in a diversified                                                            Annualised Standard Deviation

portfolio of high-yield bonds, including government guaranteed               Source: Morningstar                                                                                   3 year analysis

bonds and corporate bonds. The Fund is managed by Graham
Mason and Gareth Bern.                                                      * Those funds which fall outside the ASISA unit trust category
                                                                            represented by the majority of funds within this grouping,
Benchmark: BEASSA All Bond Index
                                                                            are depicted by a full circle.
Risk Factor: 3 (out of 5)
ASISA Category: Domestic Fixed Interest Bond                                                Risk Statistics
Inception: November 2000

                                                                                                 1 Year                  3 Years                     5 Years                       Overall
Old Mutual Income: The Fund aims to offer a high level
                                                                   100%
of income, together with relative capital stability. It aims to
pay out a high regular income without putting the investor’s
money at undue risk. The Fund invests in local interest-bearing      75%


investments including fixed and floating rate bonds and money
market instruments. The average duration of the Fund will            50%

always be less than two years, which contributes to its relative
capital stability. It can be used as a secure parking bay in         25%

times of stock market instability as well as a means of phasing
money into an equity (share) fund over a period of time. The               0%

Fund is managed by Jennifer Sheehy.                                                                  Coronation Bond        Prudential High Yield Bond         Old Mutual Income

Benchmark: ASISA category average
Risk Factor: 2 (out of 5)                                                  Source: Morningstar


ASISA Category: Domestic Fixed Interest Income
Inception: April 1989
                                                                                            Quartile Indicator

                                                                                                                                                                Top quartile        2nd quartile

COMMENTS                                                                                                                                                        3rd quartile        4th quartile


Based on the combined results of these
                                                                                                                            Fixed Interest
quantitive assessments:
                                                                                                                                              1 year               3 yrs              5 yrs
Coronation Bond: The Fund delivered a below average rate of
                                                                                       Old Mutual Income                                          11.20              10.13                9.07
return with above average levels of volatility during the period
                                                                                       Coronation Bond R                                            9.81               8.22               8.58
under consideration, compared to other Funds within this Elite
category.                                                                              Prudential High Yield Bond A                                 8.71               7.83               8.40


                                                                           * Quartile performances of individual funds are ranked within the
                                                                           relevant ASISA unit trust categories.

COMMENTS continued on next page                                            Source: Morningstar



                                                                                                                                                                                                         27
The Fund’s ability to convert risk (total and downside) into             Fund Yield
outperformance of the risk free rate and the ASISA prescribed
category benchmark improved over the one and three years,
when compared to its ASISA category peers. Within this               Old Mutual Income                                           9.26

context, the Fund’s overall ability to convert risk into             Coronation Bond R                                           7.71
outperformance was above average, being positioned in                Prudential High Yield Bond A                                9.75
the second quartile.
                                                                    Source: Morningstar


Prudential High Yield Bond: The Fund delivered a lower
rate of return with higher levels of volatility during the period
under consideration, compared to other Funds within this                 Modified Duration
Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of the risk free rate and the
                                                                     Old Mutual Income                                           0.80
ASISA prescribed category benchmark improved slightly over
three years, only to deteriorate over the last 12 months,            Coronation Bond R                                           5.92

when compared to its ASISA category peers. Within this               Prudential High Yield Bond A                                5.96
context, the Fund’s overall ability to convert risk into
outperformance was below average, being positioned in
the third quartile.

                                                                         Fund Size                                              R mill
Old Mutual Income: The Fund delivered a higher rate
of return with lower levels of volatility during the period
under consideration, compared to other Funds within this             Old Mutual Income                                     1,181.69
Elite category. The Fund’s ability to convert risk (total and
                                                                     Coronation Bond R                                      218.01
downside) into outperformance of the risk free rate and the
                                                                     Prudential High Yield Bond A                           202.50
ASISA prescribed category benchmark deteriorated over one
and three years when compared to its ASISA category peers.
Within this context, the Fund’s overall ability to convert
risk into outperformance was superior, being positioned
in the top quartile.


ELITE FUND MANAGER’S COMMENTS
Coronation Bond: “Bonds showed a marginally positive
return in September, with the All Bond Index (ALBI) returning
0.08% and a respectable 3.0% for the quarter. Although the
shorter maturity spectrum outperformed in September, it
underperformed the rest of the index for the quarter, with long-
dated bonds and especially non-government bonds being the
best performers. The third quarter also saw bonds outperform
both cash (1.9%) and inflation-linked bonds (1.4%). However,
bonds still show a negative return year to date, lagging well
behind both cash and inflation linkers.”


Prudential High Yield Bond: “Long bond yields ended the             Old Mutual Income: “The fund reduced exposure to interest
month of September 0.11% weaker, yielding 8.86% compared            rates by selling medium-dated RSA bonds. It increased
to August’s closing yield of 8.75%. The fund now has a neutral      exposure to short-dated fixed and floating-rate corporate
duration position relative to the All Bond Index, reflecting our    bonds at attractive spreads and invested surplus cash in bank
view that the real return offered by bonds is currently fair.       NCDs. With the declining short-term interest rate cycle at or
Credit continues to offer value in our opinion and as such we       close to an end, sticky inflation and the substantial amount
continue to look for opportunities to add to the credit exposure    of bond market funding expected in the future, we are
within the fund.”                                                   maintaining a defensive stance towards the bond market at
                                                                    present.”




                                                                                                                                         28
Elite Category: Equity

FUND OBJECTIVES
Coronation Equity: The Fund seeks to achieve long-term
                                                                                           16%
capital growth by investing only in listed equities. The Fund’s
return objective is to provide first quartile relative risk-adjusted                       14%
                                                                                                                                                                                  Old Mutual Mining and
investment returns. The Fund’s emphasis is on active stock                                                                                                                             Resources


selection and endeavours to remain fully invested in domestic                              12%
                                                                                                                                      Prudential Dividend                   Coronation Equity
                                                                                                                                          Maximiser
equities at all times. Investments in the Fund will be focused




                                                                       Annualised Return
                                                                                           10%

on a maximum of 45 stocks. A minimum of 75% of the fund’s                                                                             Nedgroup Investments
                                                                                                                                           Rainmaker
assets will be invested in domestic equities at all times. The                              8%
                                                                                                                                                                      Foord Equity

Fund is managed by Karl Leinberger.                                                                                                                                                  Sanlam Small Cap
                                                                                            6%
Benchmark: FTSE/JSE Shareholders Weighted All Share Index
                                                                                                                                                                      Investec Equity
Risk Factor: 4 (out of 5)                                                                   4%


ASISA Category: Domestic Equity General
                                                                                            2%
Inception: April 1996
                                                                                            0%
                                                                                                 0%         4%              8%             12%              16%             20%            24%             28%
Foord Equity: The Fund’s objective is to earn a higher total
                                                                                                                             Annualised Standard Deviation
rate of return than that of the South African equity market,                    Source: Morningstar                                                                                              3 year analysis

as represented by the return of the FTSE/JSE All Share Index                 * Those funds which fall outside the ASISA unit trust category
including income, without assuming greater risk. The Fund is                 represented by the majority of funds within this grouping,
                                                                             are depicted by a full circle.
managed by Dave Foord.
Benchmark: Total return of the FTSE/JSE All Share Index                                      Risk Statistics
Risk Factor: 4 (out of 5)
                                                                                                         1 Year                       3 Years                       5 Years                      Overall
ASISA Category: Domestic Equity General                                               100%

Inception: August 2002
                                                                                           75%

Investec Equity: The objective is to achieve returns well
                                                                                           50%
in excess of the FTSE/JSE All Share Index, measured over
three year periods. The Fund is actively managed and invests
                                                                                           25%
in South African equities. The mandate is not restricted to
any specific investment style. The investment strategy is                                  0%

underpinned by extensive research focusing on three sector                                            Coronation Equity                                      Foord Equity
                                                                                                      Investec Equity                                        Nedgroup Investments Rainmaker
groupings: resources, industrials and financials. The focus                                           Old Mutual Mining and Resources                        Sanlam Small Cap

is predominantly on individual stock selection. However,                                              Prudential Portfolio Dividend Maximiser

                                                                              Source: Morningstar
macro-economic considerations such as interest rates and                      Please note that the Overall risk statistic indicator for Prudential Dividend Maximiser,
                                                                              Old Mutual Mining & Resources and Coronation Equity overlap on the graph
the performance of the rand also play an integral part in
constructing the portfolio. The Fund is managed by Gail Daniel.
Benchmark: FTSE/JSE All Share Index                                                          Quartile Indicator
Risk Factor: 4 (out of 5)
                                                                                                                                                                             Top quartile        2nd quartile
ASISA Category: Domestic Equity General                                                                                                                                      3rd quartile        4th quartile

Inception: November 1987
                                                                                                                                                Equity
Nedgroup Investments Rainmaker: The Fund seeks to                                                                                                       1 year                    3 yrs             5 yrs
offer investors long-term capital growth through active stock
                                                                                      Old Mutual Mining & Res R                                                   0.94             13.48                  27.38
selection within the South African equity market. A minimum of
                                                                                      Coronation Equity R                                                     12.37                11.47                  21.30
75% of the Fund’s assets will be invested in domestic equities
at all times. The Fund is managed by Tim Allsop and Omri                              Foord Equity                                                                9.83               7.72                 20.21

Thomas (Polaris Capital).                                                             Investec Equity R                                                           1.90               4.53                 18.01
Benchmark: General Equity Unit Trust Mean                                             Nedgroup Inv Rainmaker A                                                11.15                  8.28                 21.20
Risk Factor: 4 (out of 5)
                                                                                      Prudential Dividend Maximiser A                                         17.11                11.78                  23.95
ASISA Category: Domestic Equity General
                                                                                      SIM Small Cap R                                                             1.30               6.37                 20.14
Inception: October 1998
                                                                             * Quartile performances of individual funds are ranked within the
                                                                             relevant ASISA unit trust categories.
OBJECTIVES continued on next page                                             Source: Morningstar


                                                                                                                                                                                                                   29
Old Mutual Mining & Resources: The Fund aims to offer                 Dividend Yield
superior returns over the medium to longer term. It invests in
mining and resources companies showing above average
prospects for growth. Up to 20% of the portfolio may be             Old Mutual Mining & Res R           2.20%
invested offshore. The Fund aims to achieve its performance
                                                                    Coronation Equity R                 2.60%
objectives through well researched and superior share
                                                                    Foord Equity                        3.66%
selection. The Fund is managed by Anwaar Wagner.
Benchmark: ASISA Category Average                                   Investec Equity R                   2.70%

Risk Factor: 5 (out of 5)                                           Nedgroup Inv Rainmaker A            2.30%
ASISA Category: Domestic Equity Oil, Gas and Basic Materials        Prudential Dividend Maximiser A     2.90%
Inception: July 1987
                                                                    SIM Small Cap R                     4.40%

SIM Small Cap: The Fund is managed actively and
aggressively in order to achieve maximum capital appreciation
in the medium to long term. The focus is on small to mid
capitalisation companies with above average growth potential
                                                                       Historic PE
and that have been mispriced by the market. The pragmatic
value approach emphasises the importance of minimising any
downside risk, while maximising the contribution from stock         Old Mutual Mining & Res R            11.00

selection. The Fund is managed by Ricco Friedrich.                  Coronation Equity R                  18.10
Benchmark: FTSE/JSE Market Cap weighted MidSmall Index              Foord Equity                         12.10
Risk Factor: 5 (out of 5)
                                                                    Investec Equity R                    16.20
ASISA Category: Domestic Equity Smaller Companies
                                                                    Nedgroup Inv Rainmaker A              7.50
Inception: June 1997
                                                                    Prudential Dividend Maximiser A      11.50

Prudential Dividend Maximiser: The Fund aims to achieve             SIM Small Cap R                       9.40
a dividend yield better than that of the market through an
aggressive but controlled exposure to shares which offer the
greatest value relative to their sector, whilst taking account of
the appropriate levels of risk. The Fund is managed by Ross
                                                                       Fund Size                         R mill
Biggs and Marc Beckenstrater.
Benchmark: General Equity Unit Trust Mean
Risk Factor: 4 (out of 5)                                           Old Mutual Mining & Res R         1,338.10
ASISA Category: Domestic Equity Value
                                                                    Coronation Equity R               2,183.18
Inception: August 1999
                                                                    Foord Equity                       522.93

                                                                    Investec Equity R                 4,067.31

                                                                    Nedgroup Inv Rainmaker A          9,424.30

                                                                    Prudential Dividend Maximiser A   1,409.04

                                                                    SIM Small Cap R                    244.20




                                                                                                                  30
COMMENTS                                                             Old Mutual Mining & Resources: The Fund delivered a
                                                                     higher rate of return with high levels of volatility during the
Based on the combined results of these                               period under consideration, compared to other Funds within
quantitive assessments:                                              this Elite category. These high levels of volatility are typical of
Coronation Equity: The Fund delivered an above average               sector focused equity funds. The Fund’s ability to convert risk
rate of return with above average levels of volatility during the    (total and downside) into outperformance of the risk free rate
period under consideration, compared to other Funds within           and the ASISA prescribed category benchmark has deterio-
this Elite category. The Fund’s ability to convert risk (total and   rated over one and three years, when compared to its ASISA
downside) into outperformance of the risk free rate and the          category peers. Within this context, the Fund’s overall
ASISA prescribed category benchmark has deteriorated slightly        ability to convert risk into outperformance was superior,
over the last 12 months, when compared to its ASISA category         being positioned in the top quartile.
peers. Within this context, the Fund’s overall ability to
convert risk into outperformance was superior, being                 SIM Small Cap: The Fund delivered a below average rate of
positioned in the top quartile.                                      return with above average levels of volatility during the period
                                                                     under consideration, compared to other Funds within this Elite
Foord Equity: The Fund delivered a below average rate                category. These high levels of volatility are typical of sector fo-
of return with below average levels of volatility during the         cused equity funds. The Fund’s ability to convert risk (total and
period under consideration, compared to other Funds within           downside) into outperformance of the risk free rate and the
this Elite category. The Fund’s ability to convert risk (total       ASISA prescribed category benchmark has deteriorated slightly
and downside) into outperformance of the risk free rate and          over one and three years, when compared to its ASISA cat-
the ASISA prescribed category benchmark has deteriorated             egory peers. Within this context, the Fund’s overall ability
slightly over one and three years, when compared to its ASISA        to convert risk into outperformance was above average,
category peers. Within this context, the Fund’s overall              being positioned in the second quartile.
ability to convert risk into outperformance was above
average, being positioned in the second quartile.
                                                                     Prudential Dividend Maximiser: The Fund delivered an
Investec Equity: The Fund delivered a lower rate of return           above average rate of return with low levels of volatility dur-
with below average levels of volatility during the period            ing the period under consideration, compared to other Funds
under consideration, compared to other Funds within this             within this Elite category. The Fund’s ability to convert risk
Elite category. The Fund’s ability to convert risk (total and        (total and downside) into outperformance of the risk free rate
downside) into outperformance of the risk free rate and the          and the ASISA prescribed category benchmark has deterio-
ASISA prescribed category benchmark has deteriorated over            rated over one and three years, when compared to its ASISA
one and three years, when compared to its ASISA category             category peers. Within this context, the Fund’s overall
peers. Within this context, the Fund’s overall ability to            ability to convert risk into outperformance was superior,
convert risk into outperformance was below average,                  being positioned in the top quartile.
being positioned in the third quartile.


Nedgroup Investments Rainmaker: The Fund delivered
a below average rate of return with below average levels of
volatility during the period under consideration, compared to
other Funds within this Elite category. The Fund’s ability to
convert risk (total and downside) into outperformance of the
risk free rate and the ASISA prescribed category benchmark
has deteriorated over one and three years, when compared to
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was
superior, being positioned in the top quartile.




                                                                                                                                           31
ELITE FUND MANAGER’S COMMENTS                                        Asset Allocation

                                                                     Coronation Equity - 3 years
Coronation Equity: “The fund is one of the top performing
                                                                                    100%
funds in its sector over all meaningful periods. We have taken
profits on equities through the quarter, but we remain of the                       80%

view that equities offer the best prospect of inflation-beating
                                                                                    60%
long-term returns. Markets are likely to remain volatile and
difficult for some time to come. To the long-term investor this
                                                                                    40%
is not bad news. We remain committed to ‘cutting out the
noise’ and focusing on the long-term fundamentals.”                                 20%



                                                                                        0%
Foord Equity: “The fund’s preference for quality companies in                                 Sep 06                         Sep 07                       Sep 08                      Sep 09

the equity component where earnings growth is more certain
                                                                                              Resources        Industrials       Financials        Cash       Other      International
has not changed. We remain unconvinced about the pace of
demand recovery being priced in by commodity shares, and             Foord Equity - 3 years
have limited the allocation to this sector to a small number                        100%
of high quality, well financed businesses. We have included a
position in gold during the quarter. This is a defensive position,                      80%

and in no way a positive reflection on the outlook for the SA
                                                                                        60%
gold sector. The fund continues to hold a large cash position,
for reallocation into shares at better prices.”                                         40%



Investec Equity: “The Investec Equity Fund underperformed                               20%


the ALSI over the quarter. Most of the underperformance can
                                                                                         0%
be attributed to the stronger rand which detracted from the                                   Sep 06                         Sep 07                       Sep 08                      Sep 09

performance of the rand hedge shares held in the portfolio. The
                                                                                                       Resources              Industrials            Financials           Cash
rand’s strength has been attributed to various factors such as
the MTN/Bharti Airtel deal, the return of the carry trade and a      Investec Equity - 3 years
tight correlation to the rampant stock markets. The status quo
                                                                                     100%
of a rampant rand is unlikely to continue in our view.”
                                                                                        80%

Nedgroup Investments Rainmaker: “For the quarter as
                                                                                        60%
a whole, the ALSI gained 13.9%, and, on the back of rising
commodity prices, the rand gained 2.6% to the US dollar. The                            40%

best performing industry group for the quarter was Industri-
                                                                                        20%
als (+21.7%), followed by Consumer Services (+20.9%) and
Consumer Goods (+19.9%). Telecoms (+3.8%) and Oil & Gas
                                                                                         0%
(+4.6%) showed the worst performance. The Nedgroup Invest-                                     Sep 06                        Sep 07                       Sep 08                      Sep 09

ments Rainmaker Fund unit price rose by 1.9% for the month
                                                                                                Resources            Industrials             Financials           Cash        Other
of September, and 13.5% for the quarter. We are satisfied
with the fund’s performance considering the fund’s defensive
positioning. The holdings in Investec Plc (+32.8%), Reunert          Nedgroup Investments Rainmaker - 3 years
(+28.4%) and Naspers (+27.5%) did well during the quarter,                          100%


but on the other hand; Reinet (+0.5%), MTN (+3.2%), Sasol
                                                                                        80%
(+4.6%), NewGold (+5.3%) and British American Tobacco
(+8.8%) were relatively disappointing.”                                                 60%



                                                                                        40%



                                                                                        20%



                                                                                        0%
                                                                                              Sep 06                         Sep 07                       Sep 08                      Sep 09


                                                                                                  Resources           Industrials           Financials      Cash         International




                                                                                                                                                                                               32
Old Mutual Mining & Resources: “Despite the recent signifi-        Asset Allocation
cant share-price outperformance, specific share/sector valu-
ations are still very compelling, such as ArcelorMittal SA, for
those willing to look beyond the short-term outlook and focus      Prudential Dividend Maximiser - 3 years

on the inherent longer-term potential. Nevertheless, the fund                     100%

continues to invest primarily in attractively priced shares, as
                                                                                      80%
opposed to the “flavour of the day”, which could yield relative
outperformance even in a more challenging economic environ-                           60%

ment and, hopefully, even more in a cyclical rebound.”
                                                                                      40%


SIM Small Cap: “The SIM Small Cap unit trust outperformed
                                                                                      20%
the JSE Mid and Small cap Index during the quarter. Our bigger
exposure to cyclical industrial sectors and IT contributed mean-                      0%
                                                                                            Sep 06          Sep 07            Sep 08          Sep 09
ingfully to the strong performance during the quarter. More
specifically, our significant position in very cheap IT stocks                                  Resources   Industrials   Financials   Cash


added alpha on the back of good results. These include our in-
vestments in EOH, Gijima, Paracon and BCX. We bought these
companies at very attractive valuations, with material upside to
fair value at a time when not too many investors were focusing
on this area. Our offshore investments also delivered very
strong results despite these returns being negatively impacted
by the stronger currency. New holdings added to the portfo-
lio included Country Bird, Mvelephanda Resources, Steinhoff,
Spar and Metropolitan. These were financed by the complete
sale of Sentula, ARB Holdings, Austro, JD Group and Shoprite.
Our main reason for selling them was that their share prices
reached or exceeded our assessment of fair value.”


Prudential Dividend Maximiser: “We currently hold a fairly
large position in MTN and were relieved to hear recently that
the proposed deal between MTN and Bharti terminated. A
cross-shareholding where MTN would own shares in Bharti
and Bharti would own shares in MTN can lead to difficult to
understand financial statements. Cross-holdings can result
in misleading reporting as each company can recognise each
other’s income, which if consolidations are incorrectly done,
can result in multiple recognitions of income and expenses.
The second issue was that the proposed pricing of the deal was
not favourable. If one looks at various valuation measures,
Bharti is materially more expensively priced than MTN and
has arguably much less growth prospects than MTN given the
respective markets that they operate in.”




                                                                                                                                                       33
Elite Category: Property

FUND OBJECTIVES
Investec Property Equity: The Fund aims to grow income
and capital. It maintains an exclusive focus on interest-income
generating South African listed property stocks, specifically
                                                                                          18%
Property Unit Trusts (PUTs) and Property Loan Stocks (PLSs).
                                                                                          17%
The investment team utilises Investec Listed Property
                                                                                                                                         Investec Property Equity




                                                                      Annualised Return
Investments’ proprietary research platform to assist in the                               16%

screening and selection of listed property securities. The focus
                                                                                          15%
is on sourcing lines of stock at attractive prices and identifying
                                                                                          14%
value opportunities relative to the sector in order to achieve                                                                                      Old Mutual SA Quoted
                                                                                                                                                          Property
outperformance. The Fund targets returns in excess of the SA                              13%

Listed Property Index, measured over three year periods. The
                                                                                          12%

Fund is managed by Angelique de Rauville and Vuyani Bekwa.                                      0%            5%               10%                15%               20%        25%          30%


Benchmark: SA Listed Property Index                                                                                       Annualised Standard Deviation
Risk Factor: 4 (out of 5)
                                                                                          Source: Morningstar                                                                  3 year analysis
ASISA Category: Domestic Real Estate General
Inception: June 2004


Old Mutual SA Quoted Property: The Fund aims to                                            Risk Statistics

generate sustainable pre-tax income whilst growing the original
capital invested. It invests in a selection of listed South African                                  1 Year                  3 Years                      5 Years               Overall

commercial and industrial property shares. Income is derived          100%

from property shares that offer a secure, escalating income
stream. Capital growth comes from quality shares that show                  75%

potential for an upward share price movement. Further factors
influencing share selection are the quality and location of the             50%

properties as well as the rental growth potential, based on their
tenant quality and lease profile. The Fund aims to remain fully             25%

invested at all times, and may invest up to 20% of its value in
the units of other suitable unit trusts. This Fund provides
                                                                                  0%
exposure to the property market without the potential                                                         Investec Property Equity         Old Mutual SA Quoted Property

difficulties and capital outlay of direct property investments.
                                                                                          Source: Morningstar
The Fund is managed by Len van Niekerk.
Benchmark: SA Listed Property Index
Risk Factor: 4 (out of 5)
ASISA Category: Domestic Real Estate General
Inception: October 2003




                                                                                                                                                                                                  34
COMMENTS                                                                  Quartile Indicator

Based on the combined results of these                                                                                Top quartile   2nd quartile

quantitive assessments:                                                                                               3rd quartile   4th quartile



Investec Property Equity: The Fund delivered a higher                                              Property
rate of return with lower levels of volatility during the period
                                                                                                         1 year         3 yrs          5 yrs
under consideration, compared to other Funds within this
                                                                      Investec Property Equity A              15.32       17.38          25.94
Elite category. The Fund’s ability to convert risk (total and
downside) into outperformance of the risk free rate and the           Old Mutual SA Quoted Property           18.65       14.97          22.81

ASISA prescribed category benchmark has deteriorated over
one year, when compared to its ASISA category peers. Within          * Quartile performances of individual funds are ranked within the
                                                                     relevant ASISA unit trust categories.
this context, the Fund’s overall ability to convert risk
into outperformance was superior, being positioned in                Source: Morningstar

the top quartile.


Old Mutual SA Quoted Property: The Fund delivered a                       Fund Size                                                       R mill
lower rate of return with higher levels of volatility during the
period under consideration, compared to other Funds within            Investec Property Equity A                                     1,850.81
this Elite category. The Fund’s ability to convert risk (total and
                                                                      Old Mutual SA Quoted Property                                  1,393.02
downside) into outperformance of the risk free rate and the
ASISA prescribed category benchmark has improved over one
and three years, when compared to its ASISA category peers.
Within this context, the Fund’s overall ability to convert
risk into outperformance was above average, being
positioned in the second quartile.




ELITE FUND MANAGER’S COMMENTS

Investec Property Equity: “During the third quarter of 2009
the Investec Property Equity Fund marginally underperformed
the SA Listed Property Index while performance was in line
versus its peer group. Although capital returns were in excess
of 10% between 2004 and 2007, property has delivered
income returns of approximately 9.7% over the last 12 years.
Our view is that income will again form a greater portion of
total returns to investors over the medium term. As a result,
the investment strategy employed has been to restructure
the portfolio in order to increase exposure to companies with
attractive entry yields and relatively good distribution growth
prospects over the next 18 months.”


Old Mutual SA Quoted Property: “The listed property sector
continued its defensive ways, with a third quarter 2009 total
return of 12.2%, which outperformed a total return of 5.5%
from bonds, but slightly underperformed equities (13%). Year-
to-date the sector has underperformed equities with a total
return of 9.7% versus an equity total return of 18.3%. Over
this period the sector did, however, outperform bonds which
returned a negative 1.6%. In our view the listed property
sector is fairly valued and offers defensive cash flows, albeit
with lower growth over the next two years (7%-8%) than in
the previous two (12%-14%).”




                                                                                                                                                    35
Elite Category: Foreign Equity

FUND OBJECTIVES
Investec Worldwide Equity Feeder: The Fund’s primary
objective is to grow capital over the long term. This rand-                           10%

denominated Fund invests in shares listed worldwide. Exposure                                                                                         Old Mutual Global Best Ideas

                                                                                      5%
to international equities is obtained by investing directly




                                                                  Annualised Return
into our top performing Investec GSF Global Equity Fund.                              0%
                                                                                                                                Investec World Wide
The majority of the Fund’s investments are in developed                                                                            Equity Feeder
                                                                                      -5%
markets, such as the United States, Europe, UK and Asia.
The focus is on individual stock picking. The investment team                    -10%


uses Investec’s proprietary 4Factor™ process to assist in the
                                                                                 -15%
                                                                                                                                                                             RMB International
screening and selection of companies. The emphasis is on                                                                              Old Mutual Global
                                                                                                                                           Equity                                 Equity

valuation, strategy, earnings dynamics and technical analysis.                   -20%
                                                                                            0%      4%              8%               12%              16%             20%             24%         28%
The Fund is managed by the Global 4Factor team.
Benchmark: MSCI World Index (Gross ZAR)                                                                              Annualised Standard Deviation

Risk Factor: 4 (out of 5)
                                                                                       Source: Morningstar                                                                           3 year analysis
ASISA Category: Foreign Equity General
Inception: March 1995
                                                                                        Risk Statistics
Old Mutual Global Equity: The Fund aims to offer superior
returns over the medium to longer term by means of a broad-                                      1 Year                     3 Years                       5 Years                     Overall
based exposure to quality shares from across the globe. The                    100%

Fund is managed by Old Mutual Asset Management (UK), who
aims to maximise returns by managing country and sector                               75%


exposure. This Fund remains as fully invested in foreign
                                                                                      50%
equities as possible, given regulatory constraints. The Fund is
managed by Ian Heslop of OMAM UK.
                                                                                      25%
Benchmark: 93% MSCI World Index and 7% Call Rate
Risk Factor: 4 (out of 5)
                                                                                      0%
ASISA Category: Foreign Equity General                                                               Investec World Wide Equity Feeder            Old Mutual Global Equity
                                                                                                     RMB International Equity                     Global Best Ideas
Inception: May 1995


RMB International Equity FoF: The Fund invests in a range
of top performing offshore equity funds. It aims to provide
                                                                     Source: Morningstar
offshore diversification, a hedge against rand depreciation,
and steady capital growth over time. The Fund is managed by
Norman Mackechnie.
Benchmark: MSCI World Index
Risk Factor: 3 (out of 5)
ASISA Category: Foreign Equity General
Inception: May 1999


Old Mutual Global Best Ideas Fund: This rand-denominated
offshore LIFE fund is a pure global equity fund presently
managed by Skandia Investment Management Limited. The
Fund has handpicked 10 managers, chosen on the basis
of their ability, specialist expertise, philosophy, investment
process and strong track records. The Fund has global             The Fund is managed by Skandia Investment Management
exposure, but has a core weighting towards the UK. The UK         Limited.
exposure is divided between five different managers who have      Benchmark: The fund does not aim to compete with any
a range of investment styles, aiming to take advantage of         specific benchmark in the industry, due to its unique nature.
the best opportunities in different areas of the market. Five     Risk Factor: 5 (out of 5)
managers have each been selected to manage a specialist           ASISA Category: N/A
overseas area.                                                    Inception: April 2008



                                                                                                                                                                                                        36
COMMENTS                                                                 Quartile Indicator

Based on the combined results of these                                                                             Top quartile   2nd quartile

quantitive assessments:                                                                                            3rd quartile   4th quartile




                                                                                              Foreign Equity

Investec Worldwide Equity Feeder: The Fund delivered an                                                 1 year       3 yrs          5 yrs
above average rate of return with low levels of volatility during    Investec Worldwide Eqty FF R          -4.66       -5.03            7.57
the period under consideration, compared to other Funds
                                                                     Old Mutual Global Equity R           -15.38       -8.48            5.75
within this Elite category. The Fund’s ability to convert risk
                                                                     RMB Intl Equity FoF A                -15.66       -4.19            7.92
(total and downside) into outperformance of the risk free rate
and the ASISA prescribed category benchmark has improved             Old Mutual Global Best Ideas         7.63%           N/A            N/A

over the last 12 months, when compared to its ASISA
category peers. Within this context, the Fund’s overall             * Quartile performances of individual funds are ranked within the
                                                                    relevant ASISA unit trust categories.
ability to convert risk into outperformance was superior,
being positioned in the top quartile.                               Source: Morningstar




RMB International Equity FoF: The Fund delivered a lower
                                                                         Fund Size                                                     R mill
rate of return with above average levels of volatility during the
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total       Investec Worldwide Eqty FF R                                 1,610.55

and downside) into outperformance of the risk free rate and          Old Mutual Global Equity R                                   1,392.72
the ASISA prescribed category benchmark has deteriorated             RMB Intl Equity FoF A                                          228.32
significantly over one and three years, when compared to
                                                                     Old Mutual Global Best Ideas                                     18.70
its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was
above average, being positioned in the second quartile.


Old Mutual Global Equity: The Fund delivered a below
average rate of return with below average levels of volatility
during the period under consideration, compared to other
Funds within this Elite category. The Fund’s ability to convert
risk (total and downside) into outperformance of the risk
free rate and the ASISA prescribed category benchmark has
deteriorated slightly over one and three years, when compared
to its ASISA category peers. Within this context, the Fund’s
overall ability to convert risk into outperformance was
below average, being positioned in the third quartile.


Old Mutual Global Best Ideas Fund: The Fund delivered a
higher rate of return with high levels of volatility during the
period under consideration, compared to other Funds within
this Elite category. The Fund’s ability to convert risk (total
and downside) into outperformance of the risk free rate
and the MSCI World Index (the prescribed benchmark
for similar funds in the ASISA Foreign Equity General
category) was superior when compared to similar funds
belonging to the ASISA Foreign Equity General category,
as it was positioned in the top quartile.




                                                                                                                                                 37
ELITE FUND MANAGER’S COMMENTS

Investec Worldwide Equity Feeder: “During the third
quarter of 2009 the Investec World Wide Equity Feeder
Fund marginally underperformed the MSCI World Index in
rand terms and was in the second quartile versus its peer
group. The resources super sector made the greatest positive
contribution to performance over the period, largely as a
result of good stock selection in the chemicals and mining
sectors. Amongst the miners, our holdings in Grupo Mexico
and Vedanta Resources proved particularly positive, whilst our
position in the chemicals companies, BASF and LG Chemical,
also made significant positive contributions. Positions in the
defensive areas of the consumers super sector hurt relative
performance, with the pharmaceuticals and healthcare sectors
detracting the most value.”


Old Mutual Global Equity: “With some economies now
technically out of recession and others forecast to follow suit
shortly, the improving global macro environment continues to
be reflected in asset prices, although the recovery has been
from very low levels, with further to go to regain previous
highs. Equities remain attractively valued and the extent to
which profits and valuations have fallen suggests potential for
further medium-term recovery, although there is the possibility
of some shorter-term profit taking.”


RMB International Equity FoF: “The fund delivered 12.15%
over the quarter underperforming the MSCI World Index return
of 15.36%. The Americas Equity Fund continues to maintain an
overweight position in Basic Materials, Industrials, Consumer
Discretionary and Healthcare. The Europe Equity Fund remains
underweight the consumer as the de-leveraging process
continues and personal balance sheets are in the process of
being repaired - favoured areas include industrials that will
benefit from further government spend, as well as areas where
there is an expectation of increased contract flows. The fund
manager expects the market to trend higher over the quarter,
and has positioned the portfolio accordingly, especially as the
ongoing correction in China paves the way for opportunities in
selective infrastructure and consumer related stocks.”




                                                                  38
Elite Category: Foreign Asset Allocation and Fixed Interest

FUND OBJECTIVES
Nedgroup Investments Global Balanced: A global balanced
Fund that aims to provide investors with long-term capital
growth and income through a diversified portfolio of foreign
                                                                                        0%
equities and fixed income securities. A minimum of 85% of the
fund’s assets will be invested offshore. The Fund is managed                            -1%




                                                                    Annualised Return
by Sarasin & Partners.
Benchmark: Foreign Flexible Unit Trust Mean                                             -2%
                                                                                                                                                                              Old Mutual UK Money
                                                                                                                                                                                    Market
Risk Factor: 3 (out of 5)                                                                                                                      Nedgroup Investments
                                                                                                                                                 Global Balanced

ASISA Category: Foreign AA Flexible                                                     -3%


Inception: December 1996
                                                                                        -4%

                                                                                               0%               4%                    8%             12%                  16%                   20%

Old Mutual UK Money Market Feeder: The Fund aims to
preserve capital while offering high levels of income. It holds a                                                        Annualised Standard Deviation

portfolio of many different UK deposits and short-dated money         Source: Morningstar                                                                                       3 year analysis
market instruments. These are securities such as bankers’
                                                                     * Those funds which fall outside the ASISA unit trust category rep-
acceptances, commercial paper, repurchase agreements and
                                                                     resented by the majority of funds within this grouping, are depicted
government bills. The Fund invests at least 85% of its assets        by a full circle.
(subject to regulatory and other forex constraints) in the
Premier UK Money Market Fund. A maximum of 15% of the
portfolio is invested locally in the Old Mutual Money Market                              Risk Statistics
Fund. The Fund is managed by Paul Smith of Premier Asset
Management UK.                                                                                       1 Year                    3 Years            5 Years                       Overall
Benchmark: 85% Three-month Interbank pound net rate &                                   100%


15% STeFI Index
                                                                                        75%
Risk Factor: 1 (out of 5)
ASISA Category: Foreign FI Varied Specialist
                                                                                        50%
Inception: April 2000

                                                                                        25%

COMMENTS
Based on the combined results of these                                                   0%


quantitive assessments:                                                                                       Nedgroup Inv Global Balanced   Old Mutual UK Money Market



Nedgroup Investments Global Balanced: The Fund                       Source: Morningstar

delivered an above average rate of return with below average
levels of volatility during the period under consideration,                              Quartile Indicator
compared to other Funds within this Elite category. The Fund’s
                                                                                                                                                             Top quartile       2nd quartile
ability to convert risk (total and downside) into outperformance
                                                                                                                                                             3rd quartile       4th quartile
of the risk free rate and the ASISA category average has
deteriorated over one and three years, when compared to
                                                                                                    Foreign Asset Allocation and Fixed Interest
its ASISA category peers. Within this context, the Fund’s
                                                                                                                                             1 year             3 yrs               5 yrs
overall ability to convert risk into outperformance was
                                                                             Old Mutual UK Money Market FF                                    -17.88                  -2.08             4.06
below average, being positioned in the third quartile.
                                                                             Nedgroup Inv Global Balanced R                                    -9.60                  -2.26             6.18

                                                                    * Quartile performances of individual funds are ranked within the
                                                                    relevant ASISA unit trust categories.
                                                                    Source: Morningstar




                                                                                         Fund Size                                                                                    R mill



                                                                             Old Mutual UK Money Market FF                                                                          405.38

                                                                             Nedgroup Inv Global Balanced R                                                                         492.05
COMMENTS continued on next page

                                                                                                                                                                                                      39
Old Mutual UK Money Market: The Fund delivered a high                  Fund Yield
rate of return with high levels of volatility during the period
under consideration, compared to other Funds within this
Elite category. The Fund’s ability to convert risk (total and      Old Mutual UK Money Market FF                                                       4.17
downside) into outperformance of the risk free rate and the       Source: Morningstar
ASISA category average has remained constant over the
different measurement periods, when compared to its ASISA
category peers. Within this context, the Fund’s overall                                        Maximum Drawdown
ability to convert risk into outperformance was poor,
                                                                                                                      1 year      3 yrs           5 yrs
being positioned in the bottom quartile.
                                                                   Old Mutual UK Money Market FF                     -24.68%     -24.68%       -24.68%

                                                                   Nedgroup Inv Global Balanced                      -21.03%     -27.05%       -27.05%

ELITE FUND MANAGER’S COMMENTS
Nedgroup Investments Global Balanced:
                                                                                                 Maximum Runup
“The portfolio outperformed the benchmark this quarter,
                                                                                                                      1 year      3 yrs           5 yrs
benefiting largely from an increased weighting to equity and
real estate, as well as to gold. We tilted a proportion of the     Old Mutual UK Money Market FF                         9.04%   30.03%          71.98%

equities within the fund to stocks with value, leverage and        Nedgroup Inv Global Balanced                       10.60%     23.39%          75.63%
lower quality characteristics, as seen largely in our Corporate
Restructuring theme. Corporate Restructuring and Pricing
Power both have a weighting of 21% in the portfolio, and
have returned 27% and 15% respectively over the quarter.               Asset Allocation
The outperformance captured in Corporate Restructuring this
quarter can be attributed to the purchase / adding to of a             Nedgroup Investments Global Balanced - 3 years
number of laggard financials, such as UBS, Citigroup, Lloyds
                                                                                        100%
and Hartford Financial Services, as well as other names
including Alcatel Lucent, Fiat, Nissan and Estee Lauder.”
                                                                                        80%


Old Mutual UK Money Market: “The fund continues to be
                                                                                        60%
one of the top performing and most stable funds in the (UK)
IMA Money Market sector. Our prediction that some of those                              40%

money market funds that had lost value would “bounce” has
proven correct, and led to the better return from the sector.                           20%

Looking forward, the UK could face sharper rate rises than the
other G7 countries, especially as the measure of inflation is                            0%

                                                                                               Sep 06                 Sep 07       Sep 08                   Sep 09
closer to the target level. However, we do not perceive a rate
hike this year. Accordingly, we have a bulk of exposure in less                                 International Equities             International Fixed Interest

than one-month maturities, for liquidity purposes, and then a                                   International Cash                 International Property
                                                                                                International Alternative          Domestic Cash
lion’s share in up to four-month maturities taking us into next
year. Exposure at the long end of the money market curve
(nine to twelve months) remains minimal.”




                                                                                                                                                                     40
INTRODUCTION: The Fairbairn Capital WatchList




The Fairbairn Capital WatchList is a list of funds chosen on the basis of a rigorous analysis process. This process is outlined at the end
of the document, but briefl y put: every quarter the risk/return profile of collective investment funds are analysed over one-, three
and five-year periods, with the top performers selected for the WatchList. The selected funds represent broadly the most important
ASISA sub-categories. Only funds on the Fairbairn Capital platform were considered for inclusion on the WatchList, while Elite funds
were not. Should a fund’s risk/return profi le deteriorate, it will be flagged for possible removal off the WatchList.




The Fairbairn Capital WatchList for the 3rd Quarter of 2009
is as follows (grouped together for ease of reference):


Money Market and Fixed Interest Funds:                                    The following funds have been added:
   Investec Opportunity Income Fund                                       RMB International Balanced Fund of Funds
   SIM Active Income Fund
   STANLIB Bond Fund
   STANLIB Income Fund                                                    Apart from general information on each WatchList Fund, each
                                                                          fund information page contains:
Asset Allocation Funds:
   Alan Gray Stable Fund                                                  • A graph plotting performance against benchmark and
   Coronation Absolute Fund                                                 inflation.
   Coronation Capital Plus Fund                                           • Sortino and Sharpe rankings.
   Investec Managed Fund                                                  • A performance quartile diagram (for appropriate categories)
                                                                          • A risk/return plot where the Fund is depicted with a light
Equity and Property Funds:                                                  green diamond, and its peers in dark green.
   Alan Gray Equity Fund
   Element Earth Equity Fund
   Nedgroup Investments Entrepreneur Fund
   Old Mutual Financial Services Fund                                     Please refer to the disclaimer on the final page
   SIM Value Fund
   STANLIB ALSI 40 Fund
   STANLIB Property Income Fund


Foreign Funds
(Equity, Fixed Interest and Asset Allocation):
   Allan Gray - Orbis Global Equity Fund of Funds
   Allan Gray - Orbis Global Fund of Funds
   Coronation World Equity Fund of Funds
   Prudential Global High Yield Fund of Funds
   RMB International Balanced Fund of Funds




                                                                                                                                             41
WatchList: Guide to Comments


Example WatchList Fund


    am                                   ple
                                                                                                Fund Performance against Inflation




 ex                                                                                                                           ple
FUND OBJECTIVES                                                     170




                                                                                                                           am
The Fund provides capital growth and income generation for          160


investors, while limiting the risk involved. The Fund aims to       150




                                                                                                ex
achieve capital growth and income generation by investing           140

in long term fixed interest securities. Securities will normally    130
consist of a spread of gilts, semi-gilts, debentures, loan stock,
                                                                    120
debenture bonds, approved securities, notes and liquid assets
                                                                    110
and any other securities which are consistent with the Fund’s
                                                                    100
investment policy. The weighted average maturity of this Fund
must be more than 2 years. This Fund may not have any                 90
                                                                                   Apr-04              Oct-04   Apr-05   Oct-05   Apr-06   Oct-06    Apr-07   Oct-07   Apr-08    Oct-08
direct/indirect foreign exposure. The Fund is managed by A.N.
                                                                                                                    Fund                   ALBI                    Inflation*
Other.
                                                                    *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                    1 January 2009 Nominal returns, based to 100.
Benchmark: BEASSA All Bond Index (composite)




                                                                                                                                      ple
                                                                    Source: Morningstar and Inet Bridge
Risk Factor: 3 (out of 5)
                                                                                                Performance Quartile
ASISA Category: Domestic Fixed Interest Bonds




                                                                       xa                                                           m
Inception: March 2000                                                                                                           1 year                3 yrs                     5 yrs




                                                                     e
                                                                     1st
If you invested R100 in this Fund five years ago, you would
                                                                     2nd
have about R160 today. The inflation component of your
                                                                     3rd
investment is R137, which means that the real growth rate of
                                                                     4th
your investment to date is 3.4% per annum.
                                                                    Source: Morningstar
Relative to the peer universe of funds considered, the Fund
delivered top qiartile performance over five years and third
quartile performance over one and three years.                                                  Risk Statistics


                                                                                                      Sharpe Ratio Percentile                            Sortino Ratio Percentile
Both Sharpe and Sortino percentile rankings were in the




                                                                                                                                              le
                                                                                                             Ranking                                             Ranking
second quartile over the period considered. This demonstrates       100%                                                                      100%




                                                                                                                                           mp
that the Fund’s ability to convert risk (total and downside)
into outperformance of the risk free rate and ASISA prescribed




                                                                                                    xa
                                                                     75%                                                                       75%
benchmark was above average when compared to its category




                                                                                                  e
peers.
                                                                     50%                                                                       50%
Over a five year period, the Fund achieved high levels of
volatility, while it outperformed its peer average.
                                                                     25%                                                                       25%



                                                                             0%                                                                     0%

                                                                    Source: Morningstar and Inet Bridge



                                                                                                Risk against Annual Returns




                                                                                                                                     ple
                                                                                                11%




                                                                                                                                  am
                                                                     Annualised 5 year return




                                                                                                10%




                                                                                                           ex
                                                                                                9%



                                                                                                8%



                                                                                                7%
                                                                                                      4%                   5%                 6%                       7%                 8%
                                                                                                                             Annualised 5 year standard deviation




                                                                                                                                                                                               42
WatchList: Money Market and Fixed Interest Funds

Investec Opportunity Income Fund                                                                 Fund Performance against Inflation

FUND OBJECTIVES                                                      170


                                                                     160
The Fund aims to grow income and capital. The Fund targets
returns in excess of the All Bond Index, measured over three         150


year periods. The Fund may invest across the full spectrum of        140

South African fixed-income assets. These include government,         130

corporate and inflation-linked bonds as well as listed property      120

and cash. Non-government bond exposure is currently limited
                                                                      110
to 25%. The Fund is managed by Malcolm Charles.
                                                                     100


                                                                           90
Target Return: All Bond Index (ALBI) 1-3 years                                         Oct-04           Apr-05   Oct-06   Apr-06    Oct-06   Apr-07    Oct-07     Apr-08   Oct-08    Apr-09

Risk Factor: 2 (out of 5)                                                                                        Fund                ASISA Category Average                 Inflation*
ASISA Category: Domestic Fixed Interest Varied Specialist
Inception: July 2000                                                 *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                     1 January 2009. Nominal returns, based to 100.
                                                                     Source: Morningstar and Inet Bridge

If you invested R100 in this Fund 5 years ago, you would have
about R159 today. The inflation component of your investment                                     Performance Quartile
is R140, which means that the real growth rate of your
                                                                                                                                   1 year               3 yrs                       5 yrs
investment to date is 2.8% per annum.
                                                                         1st
                                                                         2nd
The Sharpe Ratio percentile ranking was in the bottom quartile,
                                                                         3rd
while Sortino Ratio percentile ranking was in the third quartile
over the period considered. This demonstrates that the fund’s            4th

ability to convert risk (total and downside) into outperformance     Source: Morningstar


of the risk free rate and its target return was poor when
compared to its category peers. Over a five year period, the                                     Risk Statistics
Fund achieved the above average levels of volatility, while it
                                                                                                       Sharpe Ratio Percentile                                  Sortino Ratio Percentile
outperformed its peer average.                                                                                Ranking                                                   Ranking
                                                                     100%                                                                        100%



                                                                      75%                                                                             75%



                                                                      50%                                                                             50%


   Fund Size                                                R mill    25%                                                                             25%


 Investec Opportunity Income                           2,773.57
                                                                                  0%                                                                  0%

                                                                     Source: Morningstar and Inet Bridge




                                                                                                 Risk against Annual Returns


                                                                                                 16%


                                                                                                 14%
                                                                      Annualised 5 year return




                                                                                                 12%


                                                                                                 10%


                                                                                                 8%


                                                                                                 6%


                                                                                                 4%
                                                                                                       0%          1%               2%           3%               4%                5%        6%

                                                                                                                              Annualised 5 year standard deviation



                                                                                                                                                                                                   43
WatchList: Money Market and Fixed Interest Funds


SIM Active Income Fund                                                                          Fund Performance against Inflation


FUND OBJECTIVES                                                     140

                                                                    135
This is an actively managed, flexible fixed interest fund which     130

aims to provide a high level of income whilst maximising            125

returns above the ALBI 1-3 year index. Capital preservation is      120

of primary importance and diversification across high yielding      115

asset classes offers downside capital protection. This fund has     110

                                                                    105
no offshore exposure. The fund is managed by André Roux and
                                                                    100
Philip Liebenberg.
                                                                     95

                                                                      90
Benchmark: BEASSA ALBI (1-3 year) Index                                      Nov-06                        May-07        Nov-07        May-08            Nov-08         May-09

Risk Factor: 2 (out of 5)                                                                                       Fund              ALBI 1-3 years                  Inflation*

ASISA Category: Domestic Fixed Interest Varied Specialist
                                                                    *Composite of CPIX to 31 December 2008 and Headline CPI from
Inception: November 2006
                                                                    1 January 2009. Nominal returns, based to 100.
                                                                    Source: Morningstar and Inet Bridge

If you invested R100 in this Fund at inception, you would have
about R136 today. The inflation component of your investment                                    Performance Quartile

is R127, which means that the real growth rate of your
                                                                                                                           1 year                  3 yrs                 5 yrs
investment to date is 2.6% per annum.
                                                                     1st
                                                                     2nd
Both Sharpe and Sortino percentile rankings were in the top
                                                                     3rd
quartile over the period considered. This demonstrates that
                                                                     4th
the fund’s ability to convert risk (total and downside) into
                                                                    Source: Morningstar
outperformance of the risk free rate and its benchmark was
superior when compared to its category peers. Over the last
12 months the Fund achieved below average levels of volatility,                                 Risk Statistics

while it outperformed its peer average.
                                                                                                      Sharpe Ratio Percentile                        Sortino Ratio Percentile
                                                                                                             Ranking                                         Ranking
                                                                    100%                                                                 100%



                                                                     75%                                                                   75%



                                                                     50%                                                                   50%


   Fund Size                                               R mill
                                                                     25%                                                                   25%


 SIM Active Income                                      1,377.12
                                                                               0%                                                           0%

                                                                    Source: Morningstar and Inet Bridge




                                                                                                Risk against Annual Returns


                                                                                                16%

                                                                                                14%
                                                                     Annualised 1 year return




                                                                                                12%

                                                                                                10%

                                                                                                8%

                                                                                                6%

                                                                                                4%

                                                                                                2%

                                                                                                0%
                                                                                                      0%            3%            6%                9%               12%         15%

                                                                                                                         Annualised 1 year standard deviation



                                                                                                                                                                                       44
WatchList: Money Market and Fixed Interest Funds

STANLIB Bond Fund                                                                                     Fund Performance against Inflation

FUND OBJECTIVES                                                      170


The Fund provides capital growth and income generation for           160

investors, while limiting the risk involved. The Fund aims to        150

achieve capital growth and income generation by investing
                                                                     140
in long term fixed interest securities. Securities will normally
                                                                     130
consist of a spread of gilts, semi-gilts, debentures, loan stock,
                                                                     120
debenture bonds, approved securities, notes and liquid assets
and any other securities which are consistent with the Fund’s        110

investment policy. The weighted average maturity of this             100

Fund must be more than 2 years. This Fund may not have
                                                                            90
any direct/indirect foreign exposure. The Fund is managed by                           Oct-04           Apr-05   Oct-06   Apr-06      Oct-06   Apr-07    Oct-07     Apr-08        Oct-08   Apr-09

Victor Mphaphuli.                                                                                                     Fund                     ALBI                      Inflation*

                                                                                                *Composite of CPIX to 31 December 2008 and Headline CPI from
Benchmark: BEASSA All Bond Index (composite)                                                    1 January 2009 Nominal returns, based to 100.

Risk Factor: 3 (out of 5)                                                                       Source: Morningstar and Inet Bridge


ASISA Category: Domestic Fixed Interest Bonds                                                         Performance Quartile
Inception: March 2000
                                                                                                                                   1 year                  3 yrs                       5 yrs
                                                                                                 1st
If you invested R100 in this Fund 5 years ago, you would have
about R153 today. The inflation component of your investment                                     2nd

is R140, which means that the real growth rate of your                                           3rd

investment to date is 2.0% per annum. Relative to the peer                                       4th

universe of funds considered, the Fund delivered top quartile                                   Source: Morningstar

performance over five years and third quartile performance
over one and three years.                                                                             Risk Statistics


                                                                                                           Sharpe Ratio Percentile                                Sortino Ratio Percentile
Both Sharpe and Sortino percentile rankings were in the
                                                                                                                  Ranking                                                 Ranking
second quartile over the period considered. This demonstrates                                   100%                                                  100%
that the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and ASISA prescribed
                                                                                                 75%                                                    75%
benchmark was above average when compared to its category
peers. Over a five year period, the Fund achieved highest
                                                                                                 50%                                                    50%
levels of volatility, while it outperformed its peer average.

                                                                                                 25%                                                    25%



                                                                                                  0%                                                    0%

    Fund Size                                               R mill                              Source: Morningstar and Inet Bridge



 Stanlib Bond                                              694.39                                     Risk against Annual Returns


                                                                                                11%
                                                                     Annualised 5 year return




                                                                                                10%



                                                                                                9%



                                                                                                8%



                                                                                                7%
                                                                                                      4%                  5%                      6%                         7%                     8%
                                                                                                                             Annualised 5 year standard deviation


                                                                                                                                                                                                         45
WatchList: Money Market and Fixed Interest Funds

STANLIB Income Fund                                                                                   Fund Performance against Inflation

FUND OBJECTIVES                                                                                160


The Fund’s primary objective is to provide a reasonable level                                  150

of current income and maximum stability for capital invested.                                  140

Securities normally to be included in the Fund will consist
                                                                                               130
of fixed income securities embracing non equity securities,
stock, financially sound preference shares, debenture stock,                                   120


debenture bonds and unsecured notes to be acquired at fair                                      110

market prices. The weighted average maturity of this Fund may
                                                                                               100
not exceed 2 Years. This Fund may not have any direct/indirect
                                                                                                90
foreign exposure. The Fund is managed by Victor Mphaphuli.                                        Oct-04      Apr-05   Oct-06   Apr-06   Oct-06   Apr-07    Oct-07     Apr-08   Oct-08       Apr-09


                                                                                                                        Fund                  ALBI 1-3 years                    Inflation*
Benchmark: BEASSA 1 to 3 Year Bond Index (composite)
Risk Factor: 2 (out of 5)                                                            *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                                     1 January 2009. Nominal returns, based to 100.
ASISA Category: Domestic Fixed Interest Income                                       Source: Morningstar and Inet Bridge

Inception: April 1987
                                                                                                      Performance Quartile
If you invested R100 in this Fund 5 years ago, you would
                                                                                                                                     1 year                  3 yrs                       5 yrs
have about R154 today. The inflation component of your
                                                                                               1st
investment is R140, which means that the real growth rate
                                                                                               2nd
of your investment to date is 2.1% per annum. Relative to
                                                                                               3rd
the peer universe of Funds considered, the Fund has achieved
top quartile performance over a five year period and second                                    4th

quartile performance over one and three years.                                       Source: Morningstar




The Sharpe Ratio percentile ranking was in the second quartile,                                       Risk Statistics
while Sortino Ratio percentile ranking was in the top quartile
                                                                                                           Sharpe Ratio Percentile                                Sortino Ratio Percentile
over the period considered. This demonstrates that the fund’s                                                     Ranking                                                 Ranking
ability to convert risk (total and downside) into outperformance                    100%                                                             100%

of the risk free rate and ASISA prescribed benchmark was
above average when compared to its category peers. Over a                                      75%                                                     75%
five year period, the Fund achieved high levels of volatility,
while it outperformed its peer average.                                                        50%                                                     50%



                                                                                               25%                                                     25%



                                                                                                0%                                                         0%

    Fund Size                                              R mill                    Source: Morningstar and Inet Bridge




 Stanlib Income                                          3,586.26                                     Risk against Annual Returns


                                                                                               10.0%


                                                                                                9.5%
                                                                    Annualised 5 year return




                                                                                                9.0%


                                                                                                8.5%


                                                                                                8.0%


                                                                                                7.5%
                                                                                                       0.0%              0.5%             1.0%                  1.5%              2.0%                2.5%

                                                                                                                                 Annualised 5 year standard deviation


                                                                                                                                                                                                             46
WatchList: Asset Allocation Funds

Allan Gray Stable Fund                                                                           Fund Performance against Inflation

FUND OBJECTIVES                                                                      210



The Fund aims to provide a return that exceeds the return on                         190

call deposits plus 2%; on an after-tax basis at a rate of 25%.
                                                                                     170
It also seeks to provide a high level of capital stability and to
minimise the risk of loss over any two-year period. The Fund                         150


is managed by Ian Liddle (Foreign assets are invested in Orbis
                                                                                     130
funds).
                                                                                      110


Benchmark: Return of call deposits (for amounts in excess of                                    90

R5 million) with FirstRand Bank Limited plus 2% on an after-                                     Oct-04    Apr-05   Oct-06   Apr-06   Oct-06   Apr-07    Oct-07   Apr-08    Oct-08     Apr-09

                                                                                                                      Fund                ASISA Category Average                Inflation*
tax basis at rate of 25%.
Risk Factor: 2 (out of 5)
                                                                     *Composite of CPIX to 31 December 2008 and Headline CPI from
ASISA Category: Domestic AA Prudential Low Equity                    1 January 2009 .Nominal returns, based to 100.
Inception: July 2000                                                 Source: Morningstar and Inet Bridge



                                                                                                 Performance Quartile
If you invested R100 in this Fund 5 years ago, you would have
about R194 today. The inflation component of your investment                                                                      1 year                 3 yrs                       5 yrs
is R140, which means that the real growth rate of your                    1st
investment to date is 7.3% per annum. Relative to the peer
                                                                          2nd
universe of funds considered, the Fund delivered top quartile
                                                                          3rd
performance over one, three and five years.
                                                                          4th

                                                                     Source: Morningstar
Both Sharpe and Sortino percentile rankings were in the top
quartile over the period considered. This demonstrates that
                                                                                                 Risk Statistics
the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and its benchmark was
                                                                                                      Sharpe Ratio Percentile                                Sortino Ratio Percentile
superior when compared to its category peers. Over a five
                                                                                                             Ranking                                                 Ranking
year period, the Fund achieved low levels of volatility, while it    100%                                                                        100%
outperformed its peer average.

                                                                        75%                                                                        75%



                                                                        50%                                                                        50%


    Fund Size                                               R mill
                                                                        25%                                                                        25%


 Allan Gray Stable                                       28,321.78
                                                                                   0%                                                                   0%

                                                                     Source: Morningstar and Inet Bridge



   Asset Alocation as at 30 September 2009                                                       Risk against Annual Returns


                                                                                                16%
 Net SA Equity                                   10.5%

 Commodities                                      4.0%
                                                                     Annualised 5 year return




                                                                                                14%
 Local Cash                                      65.3%

 International                                   20.2%                                          12%

                                                100.0%
                                                                                                10%



                                                                                                 8%
                                                                                                      4%                     5%                   6%                       7%                   8%

                                                                                                                               Annualised 5 year standard deviation



                                                                                                                                                                                                     47
WatchList: Asset Allocation Funds

Coronation Absolute Fund                                                                        Fund Performance against Inflation

FUND OBJECTIVES                                                                         250


                                                                                        230
The Fund is diversified across all domestic asset classes and
                                                                                        210
sectors and fully managed with an absolute return orientation.
Investments may be concentrated in specific securities or                               190


themes and asset allocation may be biased towards equities                              170

over the investment cycle. The Fund has an aggressive asset                             150

allocation. A minimum of 80% of the Fund’s assets may be                                130

invested locally, with maximum domestic exposure of 100%,
                                                                                         110
and with maximum offshore exposure not exceeding 20%. The
                                                                                                90
Fund aims to maintain a real growth of assets in excess of CPI                                   Oct-04    Apr-05   Oct-06   Apr-06   Oct-06   Apr-07    Oct-07    Apr-08   Oct-08    Apr-09


+ 6% per annum and to preserve capital over rolling 36 month                                                        Fund                ASISA Category Average                Inflation*

periods. This is not a guaranteed fund. The Fund is managed
                                                                    *Composite of CPIX to 31 December 2008 and Headline CPI from
by Edwin Schultz and Gavin Joubert.                                 1 January 2009 .Nominal returns, based to 100.
                                                                    Source: Morningstar and Inet Bridge

Benchmark: CPI + 6% p.a.
                                                                                                Performance Quartile
Risk Factor: 2 (out of 5)
ASISA Category: Domestic AA Flexible                                                                                             1 year                  3 yrs                       5 yrs
Inception: December 2002                                              1st
                                                                      2nd
If you invested R100 in this Fund 5 years ago, you would have
                                                                      3rd
about R215 today. The inflation component of your investment
                                                                      4th
is R140, which means that the real growth rate of your
                                                                    Source: Morningstar
investment to date is 9.7% per annum. Relative to the peer
universe of funds considered, the Fund delivered top quartile
                                                                                                Risk Statistics
performance over one year and second quartile performance
over three and five years.
                                                                                                      Sharpe Ratio Percentile                                 Sortino Ratio Percentile
                                                                                                             Ranking                                                  Ranking
Both Sharpe and Sortino percentile rankings were in the             100%                                                                         100%
second quartile over the period considered. This demonstrates
that the fund’s ability to convert risk (total and downside) into
                                                                     75%                                                                           75%
outperformance of the risk free rate and its benchmark was
above average when compared to its category peers. Over a
                                                                     50%                                                                           50%
five year period, the Fund achieved below average levels of
volatility, while it outperformed its peer average.
                                                                     25%                                                                           25%


    Fund Size                                              R mill
                                                                               0%                                                                       0%

                                                                    Source: Morningstar and Inet Bridge
 Coronation Absolute                                    1,310.15

                                                                                                Risk against Annual Returns


   Asset Alocation as at 30 September 2009
                                                                                                25%
                                                                                                23%
                                                                                                21%
                                                                     Annualised 5 year return




 Local Equity                                   53.8%                                           19%
                                                                                                17%
 Local Property                                  3.8%
                                                                                                15%
 Local Bonds                                     2.7%                                           13%

 Local Cash                                     22.7%                                           11%
                                                                                                 9%
 Foreign Equity                                 14.6%                                            7%
                                                                                                 5%
 Foreign Cash                                    2.4%
                                                                                                      6%              8%                10%                  12%              14%              16%

                                               100.0%                                                                          Annualised 5 year standard deviation



                                                                                                                                                                                                     48
WatchList: Asset Allocation Funds

Coronation Capital Plus Fund                                                                    Fund Performance against Inflation

FUND OBJECTIVES                                                                            210


The Fund is broadly diversified across all asset classes                                   190

and sectors and is fully managed with an absolute return
                                                                                           170
orientation. Investments may be concentrated in specific
securities or themes and asset allocation may be biased                                    150

towards equities over the investment cycle. The Fund has a
                                                                                           130
defensive asset allocation and exposure to domestic equities
and international equities may not exceed 50% and 15%                                       110

respectively. The Fund may be closed to new investments at
                                                                                                90
Coronation’s discretion. The Fund is managed by Edwin Schultz                                        Oct-04   Apr-05   Oct-06   Apr-06    Oct-06   Apr-07    Oct-07    Apr-08      Oct-08    Apr-09

and Gavin Joubert.                                                                                                                 Fund                               Inflation*



Return Benchmark: CPIX+4% p.a.                                      *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                    1 January 2009. Nominal returns, based to 100.
Risk Benchmark: preserve capital over rolling 12 month              Source: Morningstar and Inet Bridge

periods
Risk Factor: 2 (out of 5)                                                                       Performance Quartile

ASISA Category: Domestic AA Targeted A&R Return
                                                                                                                                    1 year                   3 yrs                          5 yrs
Inception: July 2001
                                                                       1st
                                                                       2nd
If you invested R100 in this Fund 5 years ago, you would have
                                                                       3rd
about R202 today. The inflation component of your investment
                                                                       4th
is R140, which means that the real growth rate of your
investment to date is 8.2% per annum. Relative to the peer          Source: Morningstar

universe of funds considered, the Fund delivered top quartile
                                                                                                Risk Statistics
performance over one and five years and second quartile
performance over three years.
                                                                                                        Sharpe Ratio Percentile                                   Sortino Ratio Percentile
                                                                                                               Ranking                                                    Ranking
The Sharpe Ratio percentile ranking was in the top quartile,        100%                                                                             100%
while Sortino Ratio percentile ranking was in the second
quartile over the period considered. This demonstrates that          75%                                                                               75%
the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and its benchmark was
                                                                     50%                                                                               50%
superior when compared to its category peers. Over five years,
the Fund achieved above average levels of downside volatility,
                                                                     25%                                                                               25%
while it outperformed its peer average.

                                                                                 0%                                                                         0%
   Fund Size                                               R mill
                                                                    Source: Morningstar and Inet Bridge

 Coronation Capital Plus                                4,508.84
                                                                                                Risk/Returns scatter plot (peer category)
   Asset Allocation as at 30 September 2009
                                                                                                20%

 Local Equity                                   37.5%
                                                                                                16%
                                                                     Annualised 5 year return




 Local Bonds                                    17.2%

 Local Property                                  4.6%                                           12%

 Pref Shares & Other                             1.1%
                                                                                                8%
 Local Cash                                     21.2%

 Foreign Equity                                  9.0%                                           4%

 Foreign Bonds                                   0.7%
                                                                                                0%
 Foreign Cash                                    8.8%                                                  0%       1%       2%       3%        4%       5%          6%       7%          8%        9%    10%

                                               100.0%                                                                           Annualised 5 year downside deviation



                                                                                                                                                                                                            49
WatchList: Asset Allocation Funds


Investec Managed Fund                                                               Fund Performance against Inflation


FUND OBJECTIVES                                                                   250


                                                                                  230
The Fund aims to provide investors with stable growth of
                                                                                  210
capital over the long term. The objective is to achieve returns
                                                                                  190
well in excess of the Fund’s peer group average, measured
                                                                                  170
over three to five year periods. The Fund invests in a mix of
South African equities, bonds and money market instruments,                       150


as well as international equity and fixed interest investments.                   130

Regulation 28 currently limits equity exposure to 75% of the                       110

fund (90% with listed property) and international exposure                                90

to 20% (for retirement funds exempted from the 15% limit).                                        Oct-04        Apr-05    Oct-06    Apr-06   Oct-06   Apr-07   Oct-07   Apr-08   Oct-08   Apr-09


                                                                                                                             Fund                ASISA Category Average             Inflation*
The allocation of assets is actively managed with a strong bias
towards equities.The Fund is managed by Gail Daniel.
                                                                    *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                    1 January 2009. Nominal returns, based to 100.
Benchmark: Peer Group Average                                       Source: Morningstar and Inet Bridge

Risk Factor: 3 (out of 5)
ASISA Category: Domestic AA Prudential Variable Equity                              Performance Quartile

Inception: February 1994                                                                                                               1 year                  3 yrs                  5 yrs
                                                                     1st
If you invested R100 in this Fund 5 years ago, you would have
                                                                     2nd
about R207 today. The inflation component of your investment
                                                                     3rd
is R140, which means that the real growth rate of your
                                                                     4th
investment to date is 8.8% per annum. Relative to the peer
                                                                    Source: Morningstar
universe of funds considered, the Fund delivered third quartile
performance over five years and bottom quartile performance
                                                                                    Risk Statistics
over one and three years. The Fund has outperformed its
benchmark over the five year period.
                                                                                                      Sharpe Ratio Percentile                                     Sortino Ratio Percentile
                                                                                                             Ranking                                                      Ranking
Both Sharpe and Sortino percentile rankings were in the third       100%                                                                                100%
quartile over the period considered. This demonstrates that
the fund’s ability to convert risk (total and downside) into         75%                                                                                 75%
outperformance of the risk free rate and its benchmark was
below average when compared to its category peers. Over a
                                                                     50%                                                                                 50%
five year period, the Fund achieved above average levels of
volatility, while it outperformed its peer average.
                                                                     25%                                                                                 25%



    Fund Size                                              R mill     0%                                                                                   0%

                                                                    Source: Morningstar and Inet Bridge
 Investec Managed                                       4,006.88
                                                                                    Risk/Returns scatter plot (peer category)
   Asset Allocation as at 30 September 2009
                                                                                                  20%


 Local Equity                                   61.3%                                             18%
                                                                       Annualised 5 year return




 Local Bonds                                     6.8%                                             16%

 Local Cash                                     15.7%
                                                                                                  14%
 Foreign Equity                                 14.0%
                                                                                                  12%
 Foreign Cash                                    1.8%
                                                                                                  10%
 Foreign Unit Trusts                             0.4%
                                                                                                   8%
                                               100.0%                                                      5%        6%       7%        8%       9%      10%     11%      12%     13%      14%     15%

                                                                                                                                       Annualised 5 year standard deviation




                                                                                                                                                                                                         50
WatchList: Equity and Property Funds

Allan Gray Equity Fund                                                             Fund Performance against Inflation

FUND OBJECTIVES                                                              340



The Fund’s objective is to earn a higher total rate of return                290

than that of the average of the South African equity market as
represented by the FTSE/JSE All Share Index including income,                240

without assuming greater risk. The Fund is managed by Ian
Liddle, Duncan Artus, Delphine Govender, Andrew Lapping,                     190


Simon Raubenheimer.
                                                                             140


Benchmark: FTSE/JSE All Share Index
                                                                                      90
Risk Factor: 4 (out of 5)                                                                          Oct-04   Apr-05   Oct-06     Apr-06    Oct-06    Apr-07     Oct-07   Apr-08   Oct-08       Apr-09


ASISA Category: Domestic Equity General                                                                                Fund                    ALSI Total Return                 Inflation*

Inception: October 1998                                              *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                     1 January 2009. Nominal returns, based to 100.

If you invested R100 in this Fund 5 years ago, you would have        Source: Morningstar and Inet Bridge

about R269 today. The inflation component of your investment
                                                                                   Performance Quartile
is R140, which means that the real growth rate of your
investment to date is 15.0% per annum. Relative to the peer                                                                         1 year                   3 yrs                     5 yrs
universe of funds considered, the Fund delivered top quartile         1st
performance over three and five years and second quartile             2nd
performance over the last 12 months. the Fund has also
                                                                      3rd
outperforming its benchmark over the 5 year period.
                                                                      4th

                                                                     Source: Morningstar
Both Sharpe and Sortino percentile rankings were in the top
quartile over the period considered. This demonstrates that
                                                                                   Risk Statistics
the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and ASISA prescribed
                                                                                                      Sharpe Ratio Percentile                                      Sortino Ratio Percentile
benchmark was superior when compared to its category peers.
                                                                                                             Ranking                                                       Ranking
Over a five year period, the Fund achieved lower than average        100%                                                                            100%
levels of volatility, while it outperformed its peer average.

                                                                      75%                                                                                75%



                                                                      50%                                                                                50%


    Fund Size                                               R mill    25%                                                                                25%


 Allan Gray Equity                                       19,270.54
                                                                       0%                                                                                0%

                                                                     Source: Morningstar and Inet Bridge




    Sector Allocation as at 30 September 2009                                      Risk/Returns scatter plot (peer category)


                                                                                                   26%
 Resources                                       30.7%
                                                                                                   24%
 Financials                                      14.3%                                             22%
                                                                        Annualised 5 year return




 Industrials                                     52.9%                                             20%

 Cash                                            1.9%                                              18%

                                                                                                   16%
 Other                                           0.2%
                                                                                                   14%
                                                100.0%
                                                                                                   12%

                                                                                                   10%
                                                                                                         12%     13%          14%        15%       16%       17%        18%      19%          20%      21%

                                                                                                                               Annualised 5 year standard deviation



                                                                                                                                                                                                             51
WatchList: Equity and Property Funds

Element Earth Equity Fund                                                                       Fund Performance against Inflation

FUND OBJECTIVES                                                                                 340



The Element Earth Equity Fund (formerly Fraters Earth Equity                                    290

Fund) is an actively managed, domestic general equity fund
that aims to provide investors with the opportunity to achieve                                  240


long-term capital appreciation growth with a moderate level of
                                                                                                190
income. The Fund is managed by Terence Craig.

                                                                                                140
Benchmark: FTSE/JSE All Share Index with 50% down-
weighting applied to resources                                                                   90
                                                                                                     Oct-04   Apr-05   Oct-06   Apr-06   Oct-06   Apr-07   Oct-07    Apr-08      Oct-08    Apr-09
Risk Factor: 4 (out of 5)
                                                                                                                            Fund                   ALSI                       Inflation*
ASISA Category: Domestic Equity General
Inception: October 2001                                             *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                    1 January 2009. Nominal returns, based to 100.

If you invested R100 in this Fund 5 years ago, you would have       Source: Morningstar and Inet Bridge

about R254 today. The inflation component of your investment
                                                                                                Performance Quartile
is R140, which means that the real growth rate of your
investment to date is 13.6% per annum. Relative to the peer                                                                        1 year                  3 yrs                       5 yrs
universe of funds considered, the Fund delivered top quartile                1st
performance over one and five years and second quartile                      2nd
performance over three years.
                                                                             3rd
                                                                             4th
Both Sharpe and Sortino percentile rankings were in the top
                                                                    Source: Morningstar
quartile over the period considered. This demonstrates that
the fund’s ability to convert risk (total and downside) into
                                                                                                Risk Statistics
outperformance of the risk free rate and ASISA prescribed
benchmark was superior when compared to its category peers.
                                                                                                      Sharpe Ratio Percentile                                 Sortino Ratio Percentile
Over a five year period, the Fund achieved the lowest levels of
                                                                                                             Ranking                                                  Ranking
volatility, while it outperformed its peer average.                 100%                                                                          100%



                                                                          75%                                                                       75%



                                                                          50%                                                                       50%


    Fund Size                                              R mill
                                                                          25%                                                                       25%


 Element Earth Equity                                      498.8
                                                                                      0%                                                              0%

                                                                    Source: Morningstar and Inet Bridge




    Sector Allocation as at 30 Septenber 2009                                                   Risk/Returns scatter plot (peer category)


                                                                                               26%
 Resources                                      29.8%
                                                                                               24%
 Financials                                     16.3%
                                                                    Annualised 5 year return




                                                                                               22%

 Industrials                                    49.9%                                          20%

 Cash                                            4.0%                                          18%

                                                                                               16%
                                                100.0%
                                                                                               14%

                                                                                               12%

                                                                                               10%
                                                                                                     13%      14%      15%         16%      17%        18%          19%       20%          21%      22%
                                                                                                                           Annualised 5 year standard deviation




                                                                                                                                                                                                          52
WatchList: Equity and Property Funds

Nedgroup Investments                                                                 Fund Performance against Inflation


Entrepreneur Fund                                                                    390



FUND OBJECTIVES                                                                      340



A specialist equity fund that seeks to offer investors long term                     290


capital growth by actively investing in the shares of small and
                                                                                     240

medium sized companies listed on the JSE. A minimum of 75%
of the fund’s assets will be invested in domestic equities at                        190


all times. The Fund is managed by Anthony Sedgwick (Polaris                          140

Capital).
                                                                                             90
                                                                                                   Oct-04   Apr-05   Oct-06   Apr-06     Oct-06   Apr-07   Oct-07    Apr-08   Oct-08       Apr-09

Benchmark: Smaller Companies Unit Trust Mean                                                                         Fund                    ASISA Category Average           Inflation*

Risk Factor: 5 (out of 5)
ASISA Category: Domestic Equity Smaller Companies                    *Composite of CPIX to 31 December 2008 and Headline CPI from
Inception: October 1997                                              1 January 2009. Nominal returns, based to 100.
                                                                     Source: Morningstar and Inet Bridge


If you invested R100 in this Fund 5 years ago, you would have                        Performance Quartile
about R259 today. The inflation component of your investment
                                                                                                                                 1 year                    3 yrs                  5 yrs
is R140, which means that the real growth rate of your
                                                                      1st
investment to date is 14.1% per annum. Relative to the peer
universe of funds considered, the Fund delivered top quartile         2nd

performance over three and five years and third quartile              3rd

performance over the last 12 months. The Fund has also                4th

outperformed its benchmark over the five year period.
                                                                     Source: Morningstar



Both Sharpe and Sortino percentile rankings were in the                              Risk Statistics
second quartile over the period considered. This demonstrates
that the fund’s ability to convert risk (total and downside)                                         Sharpe Ratio Percentile                                 Sortino Ratio Percentile
into outperformance of the risk free rate and the ASISA                                                     Ranking                                                  Ranking
                                                                     100%                                                                          100%
prescribed benchmark was above average when compared to
its category peers. Over a five year period, the Fund achieved
below average levels of volatility, while it outperformed its peer    75%                                                                           75%

average.
                                                                      50%                                                                           50%



                                                                      25%                                                                           25%



                                                                       0%                                                                             0%

                                                                     Source: Morningstar and Inet Bridge



    Fund Size                                              R mill                    Risk/Returns scatter plot (peer category)


 Nedgroup Investments Entrepreneur                         704.90                                  25%
                                                                                                   23%
                                                                                                   21%
                                                                        Annualised 5 year return




                                                                                                   19%
                                                                                                   17%
                                                                                                   15%
                                                                                                   13%
                                                                                                   11%
                                                                                                    9%
                                                                                                    7%
                                                                                                    5%
                                                                                                         14%         16%               18%          20%             22%           24%               26%

                                                                                                                              Annualised 5 year standard deviation




                                                                                                                                                                                                          53
WatchList: Equity and Property Funds


Old Mutual Financial Services Fund                                                                Fund Performance against Inflation

FUND OBJECTIVES                                                                                   290

                                                                                                  270

The Fund aims to offer superior returns over the medium to                                        250

longer term. It selectively invests in local financial corporations                               230

as well as emerging companies at the frontier of change and                                       210


development. The fund further aims to achieve its performance                                     190

                                                                                                  170
objective through well-researched and superior share selection.
                                                                                                  150
The Fund is managed by Tracey Brodziak.
                                                                                                  130

                                                                                                  110
Benchmark: Category Average                                                                        90

Risk Factor: 5 (out of 5)                                                                          Oct-04   Apr-05   Oct-06     Apr-06    Oct-06      Apr-07    Oct-07       Apr-08   Oct-08       Apr-09

                                                                                                                        Fund                       Financial Index                    Inflation*
ASISA Category: Domestic Equity Financial
Inception: October 1997                                               *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                      1 January 2009. Nominal returns, based to 100.

If you invested R100 in this Fund 5 years ago, you would have         Source: Morningstar and Inet Bridge

about R234 today. The inflation component of your investment
                                                                                                  Performance Quartile
is R140, which means that the real growth rate of your
investment to date is 11.6% per annum. Relative to the peer                                                                        1 year                       3 yrs                       5 yrs
universe of funds considered, the Fund delivered top quartile              1st
performance over five years and third quartile performance                 2nd
over one and three years.
                                                                           3rd
                                                                           4th
The Sharpe Ratio percentile ranking was in the second quartile,
                                                                      Source: Morningstar
while Sortino Ratio percentile ranking was in the top quartile
over the period considered. This demonstrates that the fund’s
                                                                                                  Risk Statistics
ability to convert risk (total and downside) into outperformance
of the risk free rate and ASISA prescribed benchmark was
                                                                                                        Sharpe Ratio Percentile                                       Sortino Ratio Percentile
above average when compared to its category peers. Over
                                                                                                               Ranking                                                        Ranking
a five year period, the Fund achieved moderate levels of              100%                                                                              100%
volatility, while it outperformed its peer average.

                                                                         75%                                                                              75%



                                                                         50%                                                                              50%


    Fund Size                                               R mill
                                                                         25%                                                                              25%


 Old Mutual Financial Services Fund                        473.36
                                                                                    0%                                                                     0%

                                                                      Source: Morningstar and Inet Bridge




                                                                                                  Risk/Returns scatter plot (peer category)


                                                                                                  20%


                                                                                                  19%
                                                                       Annualised 5 year return




                                                                                                  18%


                                                                                                  17%


                                                                                                  16%


                                                                                                  15%


                                                                                                  14%
                                                                                                    17.0%      17.5%      18.0%          18.5%        19.0%          19.5%       20.0%         20.5%        21.0%

                                                                                                                              Annualised 5 year standard deviation



                                                                                                                                                                                                                    54
WatchList: Equity and Property Funds

SIM Value Fund                                                                                   Fund Performance against Inflation

FUND OBJECTIVES                                                                                  340



This is a pure equity Fund diversified across all sectors of the
                                                                                                 290
JSE. It offers a reasonable level of current income and the
potential for long term outperformance. The fund manager only                                    240

invests in shares which are undervalued and is very aware of
downside risks. A maximum of 20% offshore assets may be                                          190


held. The Fund is managed by Ricco Friedrich.
                                                                                                 140


Benchmark: FTSE/JSE All Share Index
                                                                                                  90
Risk Factor: 4 (out of 5)                                                                          Oct-04     Apr-05    Oct-06    Apr-06   Oct-06   Apr-07    Oct-07   Apr-08       Oct-08     Apr-09


ASISA Category: Domestic Equity Value                                                                                        Fund                     ALSI                      Inflation*

Inception: October 1998                                              *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                     1 January 2009. Nominal returns, based to 100.

If you invested R100 in this Fund 5 years ago, you would have        Source: Morningstar and Inet Bridge

about R294 today. The inflation component of your investment
                                                                                                 Performance Quartile
is R140, which means that the real growth rate of your
investment to date is 17.2% per annum. Relative to the peer                                                                          1 year                  3 yrs                           5 yrs
universe of funds considered, the Fund delivered top quartile           1st
performance over three and five years and second quartile               2nd
performance over the last 12 months.
                                                                        3rd
                                                                        4th
Both Sharpe and Sortino percentile rankings were in the top
                                                                     Source: Morningstar
quartile over the period considered. This demonstrates that
the fund’s ability to convert risk (total and downside) into
                                                                                                 Risk Statistics
outperformance of the risk free rate and ASISA prescribed
benchmark was superior when compared to its category peers.
                                                                                                       Sharpe Ratio Percentile                                   Sortino Ratio Percentile
Over a five year period, the Fund achieved above average
                                                                                                              Ranking                                                    Ranking
levels of volatility, while it outperformed its peer average.        100%                                                                             100%



                                                                      75%                                                                               75%



                                                                      50%                                                                               50%



    Fund Size                                               R mill    25%                                                                               25%


 SIM Value                                               1,217.74
                                                                                  0%                                                                     0%

                                                                     Source: Morningstar and Inet Bridge




    Sector Allocation as at 30 September 2009                                                    Risk/Returns scatter plot (peer category)


                                                                                                  26%
 Resources                                       13.6%
                                                                                                  24%
 Financials                                      18.8%
                                                                      Annualised 5 year return




                                                                                                  22%

 Industrials                                     51.5%                                            20%

 International                                   10.1%                                            18%

 Cash                                            6.0%                                             16%

                                                                                                  14%
                                                100.0%
                                                                                                  12%

                                                                                                  10%
                                                                                                        14%            15%          16%         17%          18%          19%                20%        21%

                                                                                                                                 Annualised 5 year standard deviation



                                                                                                                                                                                                              55
WatchList: Equity and Property Funds


STANLIB ALSI 40 Fund                                                                             Fund Performance against Inflation

FUND OBJECTIVES                                                                           340



The Fund aims to provide investors with long term growth                                  290

in capital, with income from dividends being a secondary
objective. The objective of the Fund is to replicate the                                  240

performance of the FTSE/JSE Top 40 Index by purchasing the
index constituents in the correct proportions. The Fund may                               190


not have any direct and/or indirect foreign exposure. The Fund
                                                                                          140
is managed by Patrick Mamathuba.

                                                                                                90
Benchmark: FTSE/JSE Africa Top 40 Index                                                         Oct-04      Apr-05   Oct-06    Apr-06     Oct-06   Apr-07    Oct-07    Apr-08   Oct-08       Apr-09


Risk Factor: 4 (out of 5)                                                                                            Fund                 ALSI Top 40 Total Return              Inflation*

ASISA Category: Domestic Equity Large Cap
                                                                     *Composite of CPIX to 31 December 2008 and Headline CPI from
Inception: March 2000
                                                                     1 January 2009. Nominal returns, based to 100.
                                                                     Source: Morningstar and Inet Bridge

If you invested R100 in this Fund 5 years ago, you would
                                                                                                Performance Quartile
have about R230 today. The inflation component of your
investment is R140, which means that the real growth rate of                                                                       1 year                   3 yrs                   5 yrs
your investment to date is 11.2% per annum. Relative to the
                                                                            1st
peer universe of funds considered, the Fund delivered second
                                                                            2nd
quartile performance over three years and five years and top
                                                                            3rd
quartile performance over the last 12 months.
                                                                            4th

                                                                     Source: Morningstar
The Sharpe Ratio percentile ranking was in the top quartile,
while Sortino Ratio percentile ranking was in the second
quartile over the period considered. This demonstrates that                                     Risk Statistics

the fund’s ability to convert risk (total and downside) into
                                                                                                      Sharpe Ratio Percentile                                   Sortino Ratio Percentile
outperformance of the risk free rate and ASISA prescribed
                                                                                                             Ranking                                                    Ranking
benchmark was above average when compared to its category            100%                                                                            100%
peers. Over a five year period, the Fund achieved moderate
levels of volatility, while it outperformed its peer average.
                                                                         75%                                                                          75%



                                                                         50%                                                                          50%


    Fund Size                                               R mill       25%                                                                          25%


 STANLIB ALSI 40                                           552.41
                                                                                     0%                                                                 0%

                                                                     Source: Morningstar and Inet Bridge



   Sector Allocation as at 30 September 2009                                                     Risk against Annual Returns (top 40 Tracker funds)


                                                                                                28%
 Resources                                       39.4%
                                                                                                26%
 Financials                                      17.1%                                          24%
                                                                     Annualised 5 year return




 Industrials                                     24.3%                                          22%

 Other Equity                                    21.1%                                          20%

                                                                                                18%
 Cash                                            -1.9%
                                                                                                16%
                                               100.0%
                                                                                                14%

                                                                                                12%
                                                                                                      16%            17%                18%         19%               20%          21%                22%

                                                                                                                              Annualised 5 year standard deviation



                                                                                                                                                                                                            56
WatchList: Equity and Property Funds


STANLIB Property Income Fund                                                                     Fund Performance against Inflation

FUND OBJECTIVES                                                                                  340


The Fund aims for the growth of capital and to provide an
                                                                                                 290
income source. Investments may consist of property shares,
property loan stock, debentures, debenture stock and bonds,                                      240

unsecured notes, property unit trusts and other listed securities
considered consistent with the Fund’s objective. Liquidity may                                   190


be increased to 50% if deemed necessary by the manager.
                                                                                                 140
Exposure to fixed interest securities is limited to 30%. The
Fund may also invest in the participatory interests of collective                                 90

investment schemes. This Fund may not have any direct/                                            Oct-04    Apr-05   Oct-06   Apr-06   Oct-06   Apr-07    Oct-07   Apr-08   Oct-08       Apr-09


                                                                                                                       Fund               SA Property Index                 Inflation*
or indirect foreign exposure. The Fund is managed by Keillen
Ndlovu and Evan Jankelowitz.
                                                                      *Composite of CPIX to 31 December 2008 and Headline CPI from
                                                                      1 January 2009. Nominal returns, based to 100.
Benchmark: FTSE/JSE Africa SA Listed Property Index (SAPY)
                                                                      Source: Morningstar and Inet Bridge
Risk Factor: 3 (out of 5)
ASISA Category: Domestic Real Estate General                                                     Performance Quartile
Inception: July 2002
                                                                                                                                 1 year                  3 yrs                   5 yrs
                                                                                  1st
If you invested R100 in this close to Fund 5 years ago, you
                                                                                  2nd
would have about R309 today. The inflation component of your
                                                                                  3rd
investment is R140, which means that the real growth rate
of your investment to date is 18.4% per annum. Relative to                        4th

the peer universe of funds considered, the Fund delivered top         Source: Morningstar

quartile performance over one, three and five years.
                                                                                                Risk Statistics
Both Sharpe and Sortino percentile rankings were in the top
quartile over the period considered. This demonstrates that                                            Sharpe Ratio Percentile                                 Sortino Ratio Percentile
                                                                                                              Ranking                                                  Ranking
the fund’s ability to convert risk (total and downside) into
                                                                     100%                                                                        100%
outperformance of the risk free rate and its benchmark was
superior when compared to its category peers. Over a five
                                                                                75%                                                                75%
year period, the Fund achieved high levels of volatility, while it
outperformed its peer average.
                                                                                50%                                                                50%



                                                                                25%                                                                25%



                                                                                            0%                                                      0%

                                                                      Source: Morningstar and Inet Bridge



    Fund Size                                               R mill                               Risk/Returns scatter plot (peer category)


 STANLIB Property Income                                 2250.04
                                                                                                28%


                                                                                                26%
                                                                     Annualised 5 year return




                                                                                                24%


                                                                                                22%


                                                                                                20%


                                                                                                18%


                                                                                                16%
                                                                                                       8%        10%          12%         14%            16%         18%             20%          22%

                                                                                                                              Annualised 5 year standard deviation


                                                                                                                                                                                                        57
WatchList: Foreign Funds


Allan Gray - Orbis Global Equity                                                                Fund Performance against Inflation


Fund of Funds                                                                         210



FUND OBJECTIVES                                                                       190


The objective of the Fund is to outperform the FTSE World                             170

Index at no greater-than average risk of loss in its sector. The
                                                                                      150
Fund is managed by Ian Liddle (The underlying Orbis Global
Equity Fund is managed by Orbis.)                                                     130



                                                                                       110
Benchmark: FTSE World Index
Risk Factor: 4 (out of 5)                                                                      90

                                                                                                May-05         Nov-05    May-06   Nov-06   May-07     Nov-07    May-08   Nov-08       May-09
ASISA Category: Foreign Equity General
                                                                                                                         Fund               MSCI (Rands)                 Inflation*
Inception: April 2005

                                                                    *Composite of CPIX to 31 December 2008 and Headline CPI from
If you invested R100 in this Fund at inception, you would have      1 January 2009. Nominal returns, based to 100.
                                                                    Source: Morningstar and Inet Bridge
about R177 today. The inflation component of your investment
is R136, which means that the real growth rate of your
                                                                                                Performance Quartile
investment to date is 6.7% per annum. Relative to the peer
universe of funds considered, the Fund delivered top quartile                                                                      1 year                 3 yrs                   5 yrs
performance over one and three years. International funds are                1st
prone to volatility due to currency movements.                               2nd
                                                                             3rd
Both Sharpe and Sortino percentile rankings were in the top
                                                                             4th
quartile over the period considered. This demonstrates that
                                                                    Source: Morningstar
the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and the ASISA prescribed                                   Risk Statistics
benchmark was superior when compared to its category peers.
Over a three year period, the Fund achieved moderate levels of                                           Sharpe Ratio Percentile                               Sortino Ratio Percentile
volatility, while it outperformed its peer average.                                                             Ranking                                                Ranking
                                                                    100%                                                                            100%



                                                                           75%                                                                       75%



                                                                          50%                                                                        50%



                                                                          25%                                                                        25%



                                                                                      0%                                                              0%
                                                                    Source: Morningstar and Inet Bridge




    Fund Size                                              R mill                               Risk against Annual Returns


 Allan Gray - Orbis Global Equity Feeder Fund            3434.04                                    4%

                                                                                                    2%

                                                                                                    0%
                                                                    Annualised 3 year return




                                                                                                -2%

                                                                                                -4%

                                                                                                -6%

                                                                                                -8%

                                                                                               -10%

                                                                                               -12%

                                                                                               -14%
                                                                                                         12%            13%         14%             15%          16%          17%              18%

                                                                                                                                  Annualised 3 year standard deviation



                                                                                                                                                                                                     58
WatchList: Foreign Funds


Allan Gray - Orbis Global                                                                  Fund Performance against Inflation


Fund of Funds                                                         210



                                                                      190
FUND OBJECTIVES
                                                                      170
The objective of the Fund is to earn a higher rate of return than
the benchmark of 60% of the FTSE World Index and 40% of               150

the JP Morgan Government Bond Global Index, at no greater-
                                                                      130
than average risk of loss in its sector. The Fund is managed by
Ian Liddle (The underlying Orbis funds are managed by Orbis.)         110



                                                                       90
Benchmark: 60% FTSE World Index and 40% JP Morgan
                                                                               Oct-04                    Apr-05   Oct-06   Apr-06     Oct-06   Apr-07    Oct-07    Apr-08   Oct-08   Apr-09
Government Bond Global Index
                                                                                                                  Fund                 ASISA Category Average               Inflation*
Risk Factor: 3 (out of 5)
                                                                     *Composite of CPIX to 31 December 2008 and Headline CPI from
ASISA Category: Foreign AA Flexible                                  1 January 2009. Nominal returns, based to 100.
Inception: February 2004                                             Source: Morningstar and Inet Bridge


                                                                                           Performance Quartile
If you invested R100 in this Fund 5 years ago, you would have
about R186 today. The inflation component of your investment                                                                        1 year               3 yrs                   5 yrs
is R140, which means that the real growth rate of your                1st
investment to date is 6.3% per annum. Relative to the peer            2nd
universe of funds considered, the Fund delivered top quartile         3rd
performance over one, three and five years. International             4th
funds are prone to volatility due to currency movements.
                                                                     Source: Morningstar


Both Sharpe and Sortino percentile rankings were in the top
                                                                                           Risk Statistics
quartile over the period considered. This demonstrates that
the fund’s ability to convert risk (total and downside) into
                                                                                                     Sharpe Ratio Percentile                                 Sortino Ratio Percentile
outperformance of the risk free rate and ASISA category                                                     Ranking                                                  Ranking
average was superior when compared to its category peers.            100%                                                                         100%

Over a five year period, the Fund achieved high levels of
volatility, while it outperformed its peer average.                   75%                                                                           75%



                                                                      50%                                                                           50%



                                                                      25%                                                                           25%



                                                                        0%                                                                              0%

                                                                     Source: Morningstar and Inet Bridge



    Fund Size                                               R mill                         Risk/Returns scatter plot (peer category)


 Allan Gray - Orbis Global FoF                          5,561.65
                                                                                                   14%

                                                                                                   12%
                                                                        Annualised 5 year return




                                                                                                   10%
   Asset Alocation as at 30 September 2009
                                                                                                   8%

                                                                                                   6%
 Foreign Equity                                 50.0%
                                                                                                   4%
 Foreign Absolute Return                        50.0%
                                                                                                   2%
                                               100.0%
                                                                                                   0%
                                                                                                     11.5%         12.0%            12.5%        13.0%            13.5%        14.0%          14.5%

                                                                                                                                Annualised 5 year standard deviation



                                                                                                                                                                                                      59
WatchList: Foreign Funds


Coronation World Equity                                                                           Fund Performance against Inflation


Fund of Funds                                                                                   210


FUND OBJECTIVES                                                                                 190


The Fund aims to achieve long-term capital growth that                                          170

exceeds the MSCI World Index in US dollar terms while
                                                                                                150
ensuring lower volatility of returns, particularly on the
downside, than conventional index-linked equity portfolios.                                     130

it is a rand-denominated foreign Fund that invests offshore
                                                                                                110
by selecting a number of highly skilled international equity
managers. The underlying managers have the ability to vary                                       90
                                                                                                 Oct-04     Apr-05   Oct-06   Apr-06   Oct-06   Apr-07   Oct-07   Apr-08     Oct-08     Apr-09
exposure to the equity market. No more than 20% of the fund
                                                                                                                       Fund                 MSCI (Rands)                   Inflation*
may be invested with any one fund manager. A minimum of
85% of the fund’s assets must be invested offshore, with a                      *Composite of CPIX to 31 December 2008 and Headline CPI from
minimum of 75% in equities at all times. The Fund is managed                    1 January 2009. Nominal returns, based to 100.
                                                                                Source: Morningstar and Inet Bridge
by Tony Gibson.

                                                                                                  Performance Quartile
Benchmark: MSCI World Index (Rands)
Risk Factor: 4 (out of 5)                                                                                                          1 year                3 yrs                    5 yrs

ASISA Category: Foreign Equity General                                                 1st
Inception: August 1997                                                                 2nd
                                                                                       3rd
If you invested R100 in this Fund 5 years ago, you would have                          4th
about R150 today. The inflation component of your investment
                                                                                Source: Morningstar
is R140, which means that the real growth rate of your
investment to date is 1.5% per annum. Relative to the peer                                        Risk Statistics
universe of funds considered, the Fund delivered top quartile
performance over one, three and five years. International                                                 Sharpe Ratio Percentile                           Sortino Ratio Percentile
                                                                                                                 Ranking                                            Ranking
funds are prone to volatility due to currency movements.
                                                                         100%                                                                     100%


Both Sharpe and Sortino percentile rankings were in the top
                                                                                    75%                                                             75%
quartile over the period considered. This demonstrates that
the fund’s ability to convert risk (total and downside) into
outperformance of the risk free rate and the ASISA prescribed                       50%                                                             50%

benchmark was superior when compared to its category peers.
Over a five year period, the Fund achieved lowest levels of                         25%                                                             25%

volatility, while it outperformed its peer average.
                                                                                                0%                                                   0%


                                                                                Source: Morningstar and Inet Bridge

    Fund Size                                               R mill
                                                                                                  Risk against Annual Returns

 Coronation World Equity FoF                                763.81
                                                                                                9%

                                                                                                8%

                                                                                                7%
                                                                     Annualised 5 year return




                                                                                                6%

                                                                                                5%

                                                                                                4%

                                                                                                3%

                                                                                                2%

                                                                                                1%

                                                                                                0%
                                                                                                     12%             13%               14%               15%                16%                  17%

                                                                                                                              Annualised 5 year standard deviation



                                                                                                                                                                                                       60
WatchList: Foreign Funds


Prudential Global High Yield Bond                                                                Fund Performance against Inflation


Funds of Funds                                                                                    210



FUND OBJECTIVES                                                                                   190



The Fund is a specialist fund managed to maximise total return                                    170

whilst generating a relatively high yield. A blend of unit trust
                                                                                                  150
funds, with underlying bond holdings diversified in terms of
geography, currency, maturity and credit risk, ensures a high                                     130

risk adjusted return. An enhanced yield is obtained through a
reasonable exposure to higher yielding corporate bonds. The                                       110


Fund invests primarily in developed markets. The Fund is
                                                                                                      90
managed by Graham Mason and David Knee.                                                                Oct-04   Apr-05   Oct-06   Apr-06   Oct-06     Apr-07   Oct-07    Apr-08   Oct-08    Apr-09


                                                                                                                           Fund                     Barclays Index                 Inlfation*
Benchmark: Barclays (formerly Lehman’s) Global Aggregate             *Composite of CPIX to 31 December 2008 and Headline CPI from
Bond Index                                                           1 January 2009. Nominal returns, based to 100.
                                                                     Source: Morningstar and Inet Bridge
Risk Factor: 3 (out of 5)
ASISA Category: Foreign Fixed Interest Bonds
                                                                                                 Performance Quartile
Inception: November 2000
                                                                                                                                    1 year                     3 yrs                       5 yrs
If you invested R100 in this Fund close to 5 years ago, you                  1st
would have about R152 today. The inflation component of your                 2nd
investment is R140, which means that the real growth rate of                 3rd
your investment to date is 1.8% per annum. Relative to the                   4th
peer universe of funds considered, the Fund delivered second
                                                                     Source: Morningstar
quartile performance over one, three years and five years.
International funds are prone to volatility due to currency                                      Risk Statistics
movements.
                                                                                                       Sharpe Ratio Percentile                                       Sortino Ratio Percentile
The Sharpe Ratio percentile ranking was in the second quartile,                                               Ranking                                                        Ranking
                                                                     100%                                                                              100%
while Sortino Ratio percentile ranking was in the top quartile
over the period considered. This demonstrates that the fund’s
                                                                           75%                                                                           75%
ability to convert risk (total and downside) into outperformance
of the risk free rate and its benchmark was above average
when compared to its category peers. Over a five year period,              50%                                                                           50%

the Fund achieved below average levels of volatility, while it
outperformed its peer average.                                             25%                                                                           25%



                                                                                      0%                                                                  0%

                                                                     Source: Morningstar and Inet Bridge



    Fund Size                                               R mill                               Risk/Returns scatter plot (peer category)


 Prudential Global High Yield Bond FoF                     469.39
                                                                                                10%


                                                                                                9%
                                                                     Annualised 5 year return




                                                                                                8%


                                                                                                7%


                                                                                                6%


                                                                                                5%


                                                                                                4%
                                                                                                      13%            14%             15%               16%              17%            18%           19%

                                                                                                                                  Annualised 5 year standard deviation


                                                                                                                                                                                                           61
WatchList: Foreign Funds


RMB International Balanced                                                                      Fund Performance against Inflation


Funds of Funds                                                                                   190

                                                                                                 180

FUND OBJECTIVES                                                                                  170

                                                                                                 160

The RMB International Balanced Fund of Funds aims to provide                                     150

a steady growth of capital over the long-term by giving                                          140

investors exposure to a diversified portfolio of asset classes in                                130

                                                                                                 120
international markets and exposure to various currencies. This
                                                                                                 110
fund is Rand-denominated, meaning that the investor need not
                                                                                                 100
go through exchange control regulations. The Fund is managed                                      90
                                                                                                      Dec-04   Jun-05   Dec-05    Jun-06    Dec-06   Jun-07     Dec-07   Jun-08     Dec-08     Jun-09
by Norman Mackechnie.
                                                                                                                        Fund                ASISA Category Average                Inflation*


Benchmark: 50% MSCI, 25% JPMGBI Unhedged 25% Cash
Composite (1/3 each to the Dollar, Sterling and Euro)               *Composite of CPIX to 31 December 2008 and Headline CPI from
Risk Factor: 3 (out of 5)                                           1 January 2009. Nominal returns, based to 100.
                                                                    Source: Morningstar and Inet Bridge
ASISA Category: Foreign AA Flexible
Inception: January 2005
                                                                                                Performance Quartile

If you invested R100 in this Fund at inception, you would have                                                                    1 year                      3 yrs                   5 yrs
about R144 today. The inflation component of your investment         1st
is R139, which means that the real growth rate of your               2nd
investment to date is 0.8% per annum. Relative to the peer           3rd
universe of funds considered, the Fund delivered top quartile        4th
performance over three years and bottom quartile performance
                                                                    Source: Morningstar
over the last 12 months. International funds are prone to
volatility due to currency movements.                                                           Risk Statistics


Both Sharpe and Sortino percentile rankings were in the                                               Sharpe Ratio Percentile                                   Sortino Ratio Percentile
second quartile over the period considered. This demonstrates                                                Ranking                                                    Ranking
                                                                    100%                                                                             100%
that the fund’s ability to convert risk (total and downside)
into outperformance of the risk free rate and ASISA category
                                                                    75%                                                                              75%
average was above average when compared to its category
peers. Over a three year period, the Fund achieved above
average levels of volatility, while it outperformed its peer        50%                                                                              50%

average.
                                                                    25%                                                                              25%



                                                                         0%                                                                           0%

                                                                    Source: Morningstar and Inet Bridge




                                                                                                Risk/Returns scatter plot (peer category)


                                                                                                8%

                                                                                                6%
                                                                     Annualised 3 year return




                                                                                                4%

                                                                                                2%

                                                                                                0%

                                                                                                -2%

                                                                                                -4%

                                                                                                -6%

                                                                                                -8%
                                                                                                      0%        2%         4%              6%        8%         10%        12%           14%            16%
                                                                                                                                 Annualised 3 year standard deviation




                                                                                                                                                                                                              62
WatchList: Fund selection methodology

Fund selection for the WatchList and analysis of the Elite funds in this report was based on a combination of two ratios for each of the
relevant ASISA unit trust categories, namely the Sharpe Ratio and the Sortino Ratio.


The Sharpe Ratio is calculated using the excess return of a fund over a risk-free rate and the fund’s standard deviation. The higher the
Sharpe Ratio, the better the fund’s historical risk-adjusted performance. The 3-month JIBAR rate was selected as the risk-free and
applied to all categories, except the Targeted Absolute and Real Return category for which the inflation rate was used. For the inflation
measure, the old CPIX figures were used to 31 December 2008 and the new headline CPI figures were used form 1 January 2009.


The Sortino Ratio is an extension of the Sharpe Ratio, however it penalises only those returns that fall below a specific target. It does
so by replacing standard deviation with downside deviation. A series of benchmarks or equivalents were used as the desired target in
calculating this ratio. The selection is as follows:


ASISA prescribed benchmarks for the following categories:


•   Domestic Equity General - FTSE/JSE All Share Index                     •    Domestic Fixed Interest Bond - BEASSA All Bond Index
•   Domestic Equity Growth - FTSE/JSE All Share Growth                     •    Domestic Fixed Interest Income - BEASSA All Bond 1 -
•   Domestic Equity Value - FTSE/JSE All Share Value                            3 Year Index
•   Domestic Equity Large Cap - FTSE/JSE Top 40 Index                      •    Domestic Fixed Interest Money Market - Alexander
•   Domestic Equity Smaller Companies – FTSE/JSE Mid Cap Index                  Forbes Index
•   Domestic Equity Oil, Gas & Basic materials - FTSE/JSE Mining Index •        Domestic Real Estate General - FTSE/JSE SA Listed
•   Domestic Equity Financials - FTSE/JSE Financials Index                      Property Index
•   Domestic Equity Industrials - FTSE/JSE Industrial                      •    Foreign Equity General - MSCI World Index
•   Domestic Fixed Interest Money Market - Alexander Forbes Index


Each fund’s specified benchmarks for the following categories as the individual funds tend to have very different risk/return
objectives form their peers:
•   Domestic Fixed Interest Varied Specialist                              •    Domestic AA Prudential Variable Equity
•   Domestic AA Prudential Low Equity                                      •    Domestic AA Targeted A&R Return
•   Domestic AA Prudential Medium Equity                                   •    Domestic AA Flexible
•   Domestic AA Prudential High Equity                                     •    Foreign Fixed Interest Bond


The peer average was used for the following categories:
•   Foreign Fixed Interest Varied Specialist
•   Foreign AA Flexible


In using the above benchmarks or equivalents as targeted returns in our calculations, we ensured that funds are compared fairly,
without discriminating against the unique features of individual funds.


The two ratios were calculated over 1, 3 and 5 years. Each ratio’s overall ranking is then determined by applying a weighted average
in the following way:



        Fund                           Weights
    5 year history   50% 5 year; 30% 3 year; 20% 1 year
    3 year history   60% 3 year; 40% 1 year
    1 year history   100% 1 year


This ensures that longer term track records carry more weight when determining an overall ratio measure for the fund, in line with the
longer term nature of investments.


Total rankings are then calculated by equally weighting the fund’s overall rankings per ratio. The only exception to this rule is the use
of a 30% Sharpe ratio and 70% Sortino ratio to all funds within the Domestic AA Targeted A&R Return category. The rationale is that
these funds tend to focus more on capital protection than the remaining categories, a trait which needs to be reflected accurately in
our quantitative methods.


                                                                                                                                            63
Disclaimer

Collective Investment Schemes (Unit trusts) are generally
medium to long term investments. The value of participatory
interests (units) may go down as well as up and past
performance is not necessarily a guide to the future. Unit trusts
are traded at ruling prices and can engage in borrowing and
scrip lending. Fluctuations or movements in exchange rates
may cause the value of underlying international investments to
go up or down.


Please note that while care has been taken to ensure that the
information provided in this report is correct, it represents an
overview of the topic under discussion and as such does not
constitute advice and we take no responsibility for decisions
taken based on the information herein. Always contact your
professional adviser before taking any investment-related
decisions.


Fairbairn Capital is an elite service offering brought to you by
Old Mutual Investment Services (Pty) Ltd and Old Mutual Life
Assurance Company (South Africa) Ltd, Licensed Financial
Service Provider.


For further information, please visit www.fairbairncapital.com




                                                                    64

				
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