1 Enduring quality. reasons to consider Investec Global Franchise Fund

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1 Enduring quality reasons to consider Investec Global Franchise Fund For professional financial advisors, accredited investors and institutional investors only. Not for distribution to the public or within a country where distribution would be contrary to applicable law or regulations.

2 Investec Global Franchise Fund 1Seeks consistency in uncertain markets returns 2Strong risk-adjusted 1 reasons Page 2 Page 3 6Efficient capital allocation, aligned with shareholder interests 7Innovation and efficient capital allocation protect business models against competitive threats Page 7 Page 8

3 3Enduring competitive advantages create barriers to entry that can sustain high levels of profitability 4Quality companies have delivered sustainable long-term outperformance 5Capital light business models are highly cash generative Page 4 Page 5 Page 6 8Financially strong with low sensitivity to the economic cycle 9Quality valuations remain attractive 1 A disciplined investment framework to uncover the best Quality ideas Page 9 Page 1 Page 11 1

4 1 Seeks consistency in uncertain markets Risk for us is first and foremost a permanent loss of capital our focus is on reducing downside risk and avoiding losses that are never subsequently recovered. The Investec Global Franchise Fund has largely kept pace with strongly rising markets, but it is in more moderate markets, and in particular in falling markets, where we have historically outperformed. This has resulted not only in attractive outperformance over a full market cycle, but also significantly smaller drawdowns in down markets and significantly lower volatility of returns versus the index and peer group. Average rolling 12 month performance % % % 5.4% 6.1% 9.6% 8.7% Percentage (%) months MSCI > 1% 24 months % < MSCI < 1% -4.7% 2 months MSCI < % 82 months Investec Global Franchise Fund A Acc Comparative Index^ Past performance should not be taken as a guide to the future, losses may be made. Source: Morningstar, based on A Acc Share class as at 3 April 217, NAV to NAV, (inclusive of all annual management fees but excluding any initial charges), in USD. Rolling 12 month periods since inception: 4 July 29. Average rolling 12-month fund performance (including 5% initial charge) Strong markets: 7.2%; Moderate markets: 2.%; Falling markets:.8%; All periods: 4.1%. ^MSCI AC World NR (MSCI World NR pre 1/1/211). The comparative index may vary. As such the performances of the composite comparative index may consist of a combination of the old comparative index prior to the change and the current comparative index post the change. 2

5 2 Strong risk-adjusted returns Launched nearly 8 years ago, the Fund has built up a strong track-record of long-term outperformance with a history of smaller drawdowns and lower volatility than the Comparative Index^. Risk vs. return since inception Annualised performance % change Investec Global Franchise Fund A Acc Annualised standard deviation Sector average Comparative Index^ Past performance should not be taken as a guide to the future, losses may be made. Source: Morningstar, based on A Acc Share class as at 3 April 217, NAV to NAV, (inclusive of all annual management fees but excluding any initial charges), gross income reinvested, in USD. Sector average refers to the unweighted average of the primary share of Singapore registered funds in the Morningstar Global Large-Cap Blend Equity sector. The Fund was launched on 4 July 29. Annualised performance including initial charge since launch Fund: 1.7%; Sector average: 8.8%. ^MSCI AC World NR (MSCI World NR pre 1/1/211). The comparative index may vary. As such the performances of the composite comparative index may consist of a combination of the old comparative index prior to the change and the current comparative index post the change. 3

6 3 Enduring competitive advantages create barriers to entry that can sustain high levels of profitability Quality companies with enduring competitive advantages, in the form of intangible assets such as brands, copyrights, licenses and distribution networks, have typically not only generated higher returns on invested capital (ROIC) than the market as a whole, but have also been less prone to mean reversion or a decay in those returns. These competitive advantages are most prevalent in the consumer staples, health care and technology sectors where the Investec Global Franchise Fund is primarily focused, and it is these consistent businesses that we label Quality. Relative sector ROIC decay profiles (1st quartile) Percentage (%) 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Consumer Staples Information Technology Consumer Discretionary Energy Financials Real Estate Health Care Telecommunication Services Industrials Materials Utilities Source: Our research framework involved gathering relevant data from the MSCI ACWI dating from to (this was the furthest point that would provide six full years of data for the analysis, conducted in 217: one year to establish the 1st quartile ROIC companies across all sectors and then five subsequent years to track the decay profile of returns at a sector level.) The figure above shows the calculated decay profile for first quartile companies. 4

7 4 Quality companies have delivered sustainable long-term outperformance Importantly, sustainably high returns have translated into strong performance for shareholders as well. From the same analysis of MSCI ACWI data over 28 years we found that 72% of companies that started with above average profitability (as measured by ROIC) were able to maintain this above average profitability over a rolling 5 year period. These Quality companies delivered outperformance of 4.5% p.a. on average versus the market. This strong long-term performance, with high probability, is why we favour a Quality approach it maximises our chances of investment success for clients. Above average profitability vs. below average profitability (rolling 5 years, ) % 72% 28% 5.8% 28% 72% Percentage (%) Above average to above average -7.8% Above average to below average Below average to above average -4.6% Below average to below average Percentage (%) Quality approach Value approach Relative return (LHS) % of companies (RHS) Past performance should not be taken as a guide to the future, losses may be made. Source: Investec Asset Management analysis of FactSet data, MSCI ACWI universe, 1988 to 216. For the full research methodology, please refer to our recent white paper entitled Investing in markets the Quality way which is available on request. The MSCI All Country World Index is a market capitalisation weighted index designed to provide a broad measure of equity-market performance throughout the world. Comprised of stocks from developed and emerging markets. Maintained by Morgan Stanley Capital International. 5

8 5 Capital light business models are highly cash generative Whereas profit figures can be manipulated and can mask the true operating performance of a company, cash flow is much harder to manipulate and is a truer reflection of business strength. Quality businesses are by their nature capital light, and require minimal capital expenditure to grow. As a result, the aggregate profits of companies in the Fund convert fully into cash, and the growth of that cash flow has been consistently strong over the long term. Attractive growth rates 16 FCF growth (%) Aug 9 Aug 1 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Investec Global Franchise Fund 7yr FCF CAGR High quality profits FCF conversion (%) Aug 9 Aug 1 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Investec Global Franchise Fund Past performance should not be taken as a guide to the future, losses may be made. Source for both charts on this page: Investec Asset Management and FactSet, Investec Global Franchise Fund re-weighted excluding cash and equivalents, since inception. 6

9 6 Efficient capital allocation, aligned with shareholder interests This cash generation and balance sheet strength provides the management teams of Quality companies with significant optionality. They can simultaneously reinvest cash, either organically or inorganically through acquisitions, to maximise future growth potential, whilst still being able to return substantial excess cash to shareholders through share repurchases and dividends. Through active management of positions, and the capital allocations decisons made by the companies we own, the portfolio has been able to sustain high levels of profitability, always at a significant premium to the wider market. Superior profitability ROIC (%) Aug-9 Aug-1 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Investec Global Franchise Fund Comparative Index^ Past performance should not be taken as a guide to the future, losses may be made. Sources: Investec Asset Management and FactSet, 3 April 217. Investec Global Franchise Fund re-weighted excluding cash and equivalents since inception. ^MSCI AC World NR (MSCI World NR pre 1/1/211). The comparative index may vary. As such the performances of the composite comparative index may consist of a combination of the old comparative index prior to the change and the current comparative index post the change. 7

10 7 Innovation and efficient capital allocation protect business models against competitive threats Cash generation and balance sheet strength provide the management teams of Quality companies with significant optionality. They allow them to invest heavily in Research & Development (R&D) and Advertising & Promotion (A&P), driving product innovation and strengthening brand loyalty. This not only contributes to future growth, but strengthens barriers to entry and protects them from competitive threats. The sales of companies in the Fund make up 3% of the total aggregate sales of companies in the MSCI ACWI, yet these companies in aggregate spend 12% of total R&D. In other words, they spend almost four times as much on R&D as a percentage of sales than the wider market, and still generate sustainably higher ROIC. Contribution to R&D spend Percentage (%) % 3.% 12% No. of companies Sales R&D Investec Global Franchise Fund MSCI ACWI Source: FactSet, as at

11 8 Financially strong with low sensitivity to the economic cycle Quality companies are typically found in stable industries, generating sustainable recurring revenues driven by diversified, defensive and repeat business. These companies are not reliant on leverage to drive dividend growth; in aggregate, the Net Debt/EBITDA of companies in the Fund is.8x, nearly three times lower than that of the MSCI ACWI. Combined, these characteristics have resulted in a defensive return profile, and low sensitivity to the economic and market cycle. Low leverage Net debt to EBITDA 6x 5x 4x 3x 2x 1x x Aug-9 Aug-1 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Investec Global Franchise Fund Comparative Index^ Past performance should not be taken as a guide to the future, losses may be made. Source: Investec Asset Management and FactSet, 3 April 217. Investec Global Franchise Fund re-weighted excluding cash and equivalents since inception. ^MSCI AC World NR (MSCI World NR pre 1/1/211). The comparative index may vary. As such the performances of the composite comparative index may consist of a combination of the old comparative index prior to the change and the current comparative index post the change. 9

12 9 Quality valuations remain attractive In the context of longer-term history, valuations of the wider equity market and other asset classes, and the quality attributes one is paying for, we do not believe current valuations are stretched. We prefer free cashflow and enterprise value based metrics, as a P/E ratio tells you nothing about the cash generating power of the business or the strength of the balance sheet, and uses an earnings figure that can be easily manipulated. When compared on FCF yield and EV/EBIT metrics, the Fund s valuation is in line with the market yet with a significant premium in terms of quality, as measured by ROIC x 16.3x 17.% 9.5% 4.6% 4.8% EV/EBIT FCF Yield ROIC Investec Global Franchise Fund MSCI ACWI* The portfolio may change significantly over a short period of time. Source: FactSet, Investec Asset Management, The above reflects the portfolio characteristics of the Investec Global Franchise Fund reweighted excluding cash and cash equivalents. Excludes companies in the Banks Industry Group according to GICS. *Comparative index has changed to MSCI AC World Index from MSCI All Country World excludes banks from free cashflow yield calculation, classified in the Banks Industry Group according to GICS. 1

13 1 A disciplined investment framework to uncover the best Quality income ideas We conduct in-depth proprietary fundamental analysis of the companies we invest in, seeking to ensure that a company s business model, financial model and capital allocation are aligned with the long-term interests of shareholders and other key stakeholders. Both qualitative and quantitative analysis are essential to fully assess the sustainability of a company s competitive advantage, and a valuation focus helps to ensure we do not overpay for companies with the quality characteristics we seek. Financial model Balance sheet strength Quality of earnings/accounting Cashflow conversion Business model Competitive advantage Sustainability Long-term profit growth Valuation Primarily free cashflow yield Capital allocation Management track record Governance Shareholder alignment Challenge and debate 11

14 Global contacts AUSTRALIA Level 23, The Chifley Tower 2 Chifley Square Sydney, NSW 2 Telephone: Facsimile: investec.aus@investecmail.com BOTSWANA Plot 64511, Unit 5 Fairgrounds, Gaborone Telephone: Facsimile: iamallbot@investecmail.com CHANNEL ISLANDS PO Box 25, St Peter Port Guernsey, GY1 3QH Telephone: +44 () Facsimile: +44 () enquiries@investecmail.com EUROPE (EX UK) Woolgate Exchange 25 Basinghall Street London, EC2V 5HA Telephone: +44 () Facsimile: +44 () enquiries@investecmail.com HONG KONG Suites 262-6, Tower 2 The Gateway, Harbour City Tsim Sha Tsui, Kowloon Hong Kong Telephone: Facsimile: investec.hk@investecmail.com NAMIBIA 1 Robert Mugabe Avenue Office 1, Ground Floor Heritage Square Building Windhoek Telephone: +264 (61) Facsimile: +264 (61) iamallnam@investecmail.com SOUTH AFRICA 36 Hans Strijdom Avenue Foreshore, Cape Town 81 Telephone: +27 () Facsimile: +27 () saoffshore@investecmail.com SINGAPORE 25 Duxton Hill #3-1 Singapore 8968 Telephone: Facsimile: investec.sg@investecmail.com TAIWAN Unit B-1, 33/F, Taipei 11 Tower No.7, Section 5, Xin Yi Road Taipei 11, Taiwan Telephone: Facsimile: iamtaiwan.iam@investecmail.com UNITED KINGDOM Woolgate Exchange 25 Basinghall Street London, EC2V 5HA Telephone: +44 () Facsimile: +44 () enquiries@investecmail.com UNITED STATES th Avenue, 37 th Floor New York, NY113 US Toll Free: Telephone: Facsimile: us.brokersupport@investecmail.com 12

15 reasons to consider Investec Global Quality Equity Income Fund 13

16 Important information This communication is directed at professional financial advisors, accredited investors and institutional investors only. It should not be distributed to, or relied on by, private customers. The value of this investment, and any income generated from it, will be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. Past performance figures shown are not indicative of future performance. The Fund s investment objective will not necessarily be achieved and investors are not certain to make profits; losses may be made. The Fund may use or invest in financial derivatives. Please note that a positive annualised yield does not imply a positive return. Dividend is not guaranteed. Certain Share Classes may pay dividend gross of expenses subject to the Board of Directors discretion. The value of the units in the fund and the income accruing to the units, if any, may fall or rise. Potential investor should read the details of the Prospectus before deciding to subscribe for or purchase the Fund. Investment involves risk. Please refer to the Singapore Offering Documents (including the risk factors set out therein) and the relevant Product Highlights Sheet for details which are available at your bank or financial advisor. For more information, please contact your bank or financial advisor. Informational sources are considered reliable but you should conduct your own verification of information contained herein. Any opinions stated are honestly held but are not guaranteed and should not be relied upon. It does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service.the portfolio may change significantly over a short period of time. Investors may wish to seek advice from a financial advisor before making a commitment to purchase units of the Fund. In the event that an investor chooses not to seek advice from a financial advisor, he/she should consider carefully whether the Fund in question is suitable for him/her. The Fund is domiciled in Luxembourg. This communication should not be distributed to private customers who are resident in countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful. Please visit to check registrations by country. THIS INVESTMENT IS NOT FOR SALE TO US PERSONS. In Singapore, this document is issued by Investec Asset Management Singapore Pte Limited (company registration number: M). Where MSCI data is shown source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. ( Where FTSE data is shown, source: FTSE International Limited ( FTSE ) FTSE 217. Please note a disclaimer applies to FTSE data and can be found at P217427_ C