EXECUTIVE SUMMARY JULY 2017 THE CORION REPORT

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1 1 EXECUTIVE SUMMAY JULY 2017 THE COION EPOT MONTHLY CIS INSIGHTS / AUGUST 2018 PIONEEING. PATNEING. PEFOMING.

2 2 EXECUTIVE SUMMAY AUGUST 2018 The Environment The and weakened 12% in August due to the ongoing currency and debt crises in both Turkey and Argentina. Consequently, Bonds weakened 9% as fears of contagion to other Emerging countries spread. Equities gained 3% while listed Property gained 2%. Cash yielded 0.5%. The returns of the broad equity sectors were also largely influenced by the movement of the and. esources rallied 8% as companies are expected to benefit from higher export prices. Some and Hedge stocks helped the Industrials index push 1% higher. Financials ended the month marginally down, -0.3%. The best performing stocks were mostly and Hedge stocks, such as index heavy weight Bidcorp (19%), as well as Mondi (15%) and Aspen (14%). The worst performing stocks included MTN (-21%), Tiger Brands (-18%) and Goldfields (-25%). The drop in the share price of these companies can largely be attributed to company specific events. Interesting Facts and Quotes As depicted on page three, the South African Equity market is in midst of one of the longest running bull markets on record, measured in terms of number of. It is not however the most significant in terms of return. According to Distell, from 2009 to 2018 the company has added 75bn in Stakeholder value. 58.3% has gone to the government and 23% to Employees. South Africa has an 80% trade surplus with the United States of America largely to the African Growth and Opportunity Act. This Act is conditional on the respect for property rights. Asset Classes* us $ /and 19% resources 8% equities 3% property 1% industrials 1% FINANCIALS -0.3% BONDS -9% Best Top 40 bidcorp 19.0% bidvest 13% nepi rockcastle 18% mondi ltd 15% mondi plc 15% aspen 13% richemont 13% Equity Industries HEALTH CAE 13% CONSUME GOODS 6.8% basic materials 6% INDUSTIALS 5% CONSUME services 4% financials 0.3% TELECOMMUNICATIONS -17.0% Worst Top 40 gold fields -21% mtn -20.8% tiger brands -18.2% vodacom -9.9% standard bank -8.6% shoprite -6.3% absa -4% *FTSE/JSE SA Listed Property (Property), FTSE/JSE Indl 25 (Industrials), FTSE/JSE All Share (Equities), FTSE/JSE esources 10 (esources), Beassa ALBI (Bonds) and FTSE/JSE Financial 15 (Financials) were used as indicies for each asset class

3 3 The South African Equity Bull Market August 2018 marks nine years (108 ) since the last Bear Market Each dark shaded area is a bull market. Bear markets are measured by a decline of 20 percent or more. This is the longest bull market since 1973 as measured by number of % There were more pronounced bull markets as measured by return % +195% There were 12 times that the market has fallen greater than 20% % +242% Equities have returned 10% p.a. since % +370% Scale is logarithmic to show comparable percentage changes on monthly index levels. Source: Thomas euters. Total market stock price index from Jan 1973 Aug 2018.

4 4 ASSET CLASS ETUNS AUGUST 2018 BEST US DOLLA 19% US Dollar 17% ESOUCES 25% ESOUCES 26.8% resources 10.5% ESOUCES 8% ESOUCES 10.9% US DOLLA 18.3% FINANCIALS 13% EQUITIES 8.5% equities 3% EQUITIES 9% BONDS 5% US DOLLA 17% BONDS 7.5% property 1% INDUSTIALS 7% EQUITIES 0.3% BONDS 8.0% INDUSTIALS 7.4% industrials 1% FINANCIALS 3% FINANCIALS -8% EQUITIES 6.9% FINANCIALS 6.2% FINANCIALS -0.3% BONDS -0.7% industrials -1% INDUSTIALS 0.3% US DOLLA 4% WOST BONDS -9% property -9% property -20.1% POPETY -14% POPETY -0.3% 1 MONTH 3 MONTHS YTD 1 YEA 3 YEAS Datasource: Morningstar eturns longer than one year annualised

5 5 PEFOMANCE ASISA SA EQUITY GENEAL ONE MONTH AS AT 31 AUGUST 2018 ONE YEA AS AT 31 AUGUST 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Sasfin BCI Equity BCI Shari ah Equity Fund Stonehage Fleming SCI Equity Old Mutual Albaraka Equity BCI Enhanced Equity % 6.8% 6.6% 6.5% 6.4% 4% 2% 9% 9% 8% Satrix Dividend Plus Index BCI Enhanced Equity Aylett Equity Prescient BlueAlpha BCI Equity Satrix Quality Index % 10% 16% 19% 16% 14% 10.8% 10.4% 9.7% 9.4% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Sanlam Institutional Special Opps Investec Wealth & Invest BCI Dynamic Eq Momentum MoM Specialist Equity Perpetua SCI Equity Fund Satrix Quality Index % -1% -0.6% -0.5% -0.2% -1% -7% -2% -1% -8% Investec Value Sanlam Select Thematic Equity Harvard House BCI Equity Investec SA Value Steyn Capital Equity Prescient % -10.4% -10.0% -9.2% -8.2% -26.4% -15% -12% -14% -14% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors % 0.6% 9% 1% 6% 0.9% -0% -0.8% -5% -0.1% Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors % -0.1% 8.2% 9% 0% 7% -3% 0% -3% -0.1% INDUSTY ETUN ELATIVE INDUSTY ETUN ELATIVE ASISA SA Equity General Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 6% 3% -9% 0.5% -0.3% -5% -1% ASISA SA Equity General Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 2% 6.9% 8.0% 6.6% 7% 8% 5% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. *elative Performance is relative to the Category Average

6 6 FLOWS ASISA SA EQUITY GENEAL ONE MONTH AS AT 31 july 2018* ONE YEA AS AT 31 july 2018* INFLOWS - ONE MONTH INFLOWS - ONE YEA Prudential Core Value Fairtree Equity Prescient Momentum MoM High Growth Abax Equity Prescient Allan Gray Equity Momentum MoM Specialist Equity Allan Gray SA Equity Momentum MoM Opportunistic Equity Prime General Equity Prudential Core Value OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Foord Equity SIS Equity Ci Equity Foord Equity Coronation Top 20 AF Investments Institutional Equity Nedgroup Inv ainmaker Nedgroup Inv ainmaker Abax Equity Prescient Momentum eal Growth Equity Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.

7 7 PEFOMANCE ASISA SA HIGH EQUITY ONE MONTH AS AT 31 AUGUST 2018 ONE YEA AS AT 31 AUGUST 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE ezco Managed Plus ezco Value Trend Investec Opportunity Foord Balanced Ampersand SCI CPI Plus 6 FoF % 7.2% 7% 7% 6% 4% 3% 9% 8% 7% Aylett Balanced Prescient Laurium Balanced Prescient ClucasGray Equilibrium Prescient ezco Value Trend Counterpoint SCI Balanced Plus % 15% 17% 19% 16% 6.8% 6.6% 8% 0% 7% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Ci SA Balanced Fund Select BCI Balanced AF Investments Focus Obsidian SCI Balanced Bridge Managed Growth % 0.1% 0.3% 0.6% 0.9% -9% -7% -6% -2% -9% SA Asset Management BCI Managed Sharenet BCI Aggressive FoF Select BCI Balanced Obsidian SCI Balanced Warwick BCI Balanced % 5% 7% 5% 8% -7.0% -4% -2% -4% -1% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced % 6% 7% 7% 0% -0.1% -2% 9% 8% 0.2% Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced % 8% 13% 8.4% 9.1% 2% -1% 4% 5% 2% BENCHMAKS ETUN ELATIVE BENCHMAKS ETUN ELATIVE ASISA SA Multi Asset High Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 9% 3% -9% 0.5% -5% -7% -3% ASISA SA Multi Asset High Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 6.9% 6.9% 8.0% 6.6% 0.0% 1% -0.3% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. *elative Performance is relative to the Category Average

8 8 FLOWS ASISA SA HIGH EQUITY ONE MONTH AS AT 31 july 2018* ONE YEA AS AT 31 july 2018* INFLOWS - ONE MONTH INFLOWS - ONE YEA Allan Gray Balanced Allan Gray Balanced Nedgroup Inv Core Diversified Nedgroup Inv Core Diversified Discovery Balanced Prudential Balanced Prudential Balanced PSG Balanced ABSA MM Absolute eturn Prudential Discovery Balanced OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Foord Balanced Foord Balanced Foord Domestic Balanced ezco Value Trend Investec Opportunity Investec Opportunity STANLIB Balanced STANLIB Balanced Coronation Balanced Plus AF Investments Focus Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.

9 9 PEFOMANCE ASISA SA LOW EQUITY ONE MONTH AS AT 31 AUGUST 2018 ONE YEA AS AT 31 AUGUST 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE ezco Stable 1st Fusion Ci Temperate Counterpoint SCI Cautious Oasis Crescent Balanced Stable FoF Platinum BCI Income Provider FoF % 7% 5% 3% 1% 4% 0% 8% 6% 4% Investec Cautious Managed Counterpoint SCI Cautious PPS Institutional Multi Asset Low Eq Financial Fitness Stable IP FoF Allan Gray Stable % 17% 13% 11% 10% 5% 4% 1% 8% 8% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Ci Cautious Old Mutual eal Income Sanlam Stable Growth ABAX SA Absolute Prescient Fund JM Busha BCI eal eturn % 0.2% 0.4% 0.5% 0.6% -5% -5% -3% -2% -1% Plexus Wealth BCI Conservative Seed Stable ABSA Absolute Ashburton Targeted eturn Bridge Stable Growth % 2% 4% 5% 6% -4% -0% -9% -7% -7% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus % 7% 5% 0% 4% 1% 0.0% -0.2% 3% 0.7% Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus % 6% 7.7% 9.5% 8.7% 8% -6% 0.4% 3% 5% BENCHMAKS ETUN ELATIVE BENCHMAKS ETUN ELATIVE ASISA SA Multi Asset Low Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 7% 3% -9% 0.5% -0.4% -6% -2% ASISA SA Multi Asset Low Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 0% 7.2% 12% 6.7% 2% 6.2% 7% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. *elative Performance is relative to the Category Average

10 10 FLOWS ASISA SA LOW EQUITY ONE MONTH AS AT 31 july 2018* ONE YEA AS AT 31 july 2018* INFLOWS - ONE MONTH INFLOWS - ONE YEA Allan Gray Stable Momentum SA Defensive Growth Fund Nedgroup Inv Core Guarded Nedgroup Inv Core Guarded Discovery Cautious Balanced Allan Gray Stable ABAX SA Absolute Prescient Fund ABAX SA Absolute Prescient Fund Sanlam Select Defensive Balanced PSG Stable OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Argon BCI Absolute eturn Nedgroup Inv Stable Nedgroup Inv Stable ABSA Absolute STANLIB Balanced Cautious Prudential Inflation Plus Coronation Balanced Defensive Coronation Balanced Defensive SIM Inflation Plus Investec Cautious Managed Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.

11 11 ABOUT COION Corion is a market leading, multi-strategy investment company. Previously a division of Brait SA Ltd, the business was founded in 2001 and was one of the pioneers of the South African Alternative Investment Industry. Over this period, Corion has built up substantial experience and expertise in the management of specialised investment solutions. The company, which has had the pleasure of investing assets on behalf of some of South Africa s largest Institutions and Pension Funds, continuously aims to discover new ideas, themes and innovative solutions. This has, and will continue to be, the driver of our proud and consistent track record. COION FUNDS FUND INCEPTION 1 MONTH* 3 MONTHS 1 YEA 2 YEAS SI** COION ABSOLUTE NCIS FoHF Outperform Cash Corion Gravitas NCIS IF Outperform 50% Equities & 50% Cash Corion Prosperitas NCIS IF Outperform Equities COION PIME STABLE ASISA Low Equity COION PIME GOWTH ASISA High Equity NOV % 0.5% JUN 2015 JUN 2013 MA 2015 MA % 4% 0.7% 3% 0% 7% 8% 9% 5% 6% 0% 3% 3% 9% 6% 4% 8% 6.0% 7% 6.7% 0.2% 7.0% -1% 6.9% 7.8% 7.2% 6.1% 6.9% 6% 6.8% 4% 7.8% -0.8% 8.5% 7.0% 9% 8% 4% 9.6% 7.5% 6.8% 6.8% 16% 9.7% 6.9% 6.0% 8% 2% *One month Hedge Fund returns are an estimate. **Since Inception return. eturns are annualised for periods longer than one year. CONTACT US Since Inception Performance Garreth Montano Business Development gmontano@corion.co.za David Bacher Chief Investment Officer dbacher@corion.co.za

12 12 DISCLAIME & OTHE IMPOTANT INFOMATION Corion Capital Corion Capital (Pty) Ltd (Corion Capital) is an authorised financial services provider in terms of section 8 of the Financial Advisory and Intermediary act, 2002, FSP number 4452 The eport has been designed to provide a high level overview of the CIS Industry over a short term. In isolation, no meaningful investment decisions should be made using the eport. While every effort has been made by Corion Capital to ensure that the information contained in this report is accurate and up to date, no representations or warranties are made or given as to the accuracy and suitability of the information contained therein for any particular purpose. Corion Capital shall under no circumstances whatsoever be liable or responsible for any damages or loss, whether direct or indirect, or whether in contract or in delict, which may be incurred or suffered arising out of the use of this report, or the use of any information contained therein. Corion has a conflict of interest policy which outlines the manner in which conflicts of interest are managed. A copy of the document is available on request. One can also obtain additional information on Corion s products on the Corion website ( and all price related queries or information is readily available on request. Corion Capital Details egistration No: 2007/002166/07 Tel: Address: The District, Block B, 6th Floor, clientservices@corion.co.za 41 Sir Lowry oad, Woodstock, 7925 Website: General Performance numbers and graphs are sourced from Morningstar (Pty) Ltd using NAV to NAV figures. However the returns shown are only signed off after the 5th business day post month end. Consequently distributions for some funds might not be reflected in the return data and some fund returns are subject to change. The investment performance is for illustrative purposes only. The investment performance is calculated after taking the actual initial fees and all ongoing fees into account. The reinvestment of income is calculated on the actual amount distributed per participatory interest by using the ex-dividend date NAV price of the applicable class of the portfolio, irrespective of the actual reinvestment date. Collective Investment Schemes are generally medium to long term investments. The value of participatory interests may go down as well as up. Investors should take cognisance of the fact that there are risks involved in buying or selling any financial product, that the past performance of a financial product is not necessarily indicative of the future performance and that the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. Portfolios which contains offshore exposure can result in additional material and other risks, potential constraints on liquidity and the patriation of funds. Corion NCIS etail Hedge Funds Corion Capital has entered into a co-named agreement with Novare CIS (F) (Pty) Limited (Novare CIS) regarding the administration of Corion s etail Hedge Funds. Novare CIS is an authorised Management Company registered according to the Collective Investment Schemes Control Act (CISCA) 45 of 200 Novare CIS retails full legal responsibility for the co-named Corion NCIS etail Hedge funds. isk management of the portfolio is done by Novare CIS. Novare CIS has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. The Corion NCIS etail Hedge Funds are audited by Price Waterhouse Coopers, administrated by Maitland Hedge Fund Services (Pty) Limited while Firstand Bank Limited are the appointed Trustees. The level of counter party exposure is restricted to funds that are administered by Novare CIS and the respective prime brokers of the underlying portfolio. A portion of the capital is held with respective prime brokers (detail available on request). The Portfolio is allowed to make use of leverage, provided by prime brokers. The Exposure Value-at-isk is limited to 20% per month at 99% confidence level. The liquidity risk management policy and Novare s CIS schedule of fees and charges are available on request. Novare CIS Details egistration No: 2013/191159/07 Tel: P.O. Box: 4742, Tyger Valley, 7736, South Africa clientservice@novare.com Directors: ene Miles, Leon de Wit, Derrick oper Website: Geoffrey Carter and Johan Basson. Corion Prime CIS Portfolios Corion Capital has entered into a co-named agreement with Prime Collective Investment Schemes Management Company (F) (Pty) Limited (Prime) regarding the administration of Corion s Collective Investment Schemes. Prime is an authorised Management Company registered according to the Collective Investment Schemes Control Act (CISCA) 45 of 200 Prime retains full legal responsibility for the co-named Corion Prime CIS s. The Corion Prime CIS s are administrated by Global Independent Administrators (Pty) Ltd while Societe Generale Security Services are the appointed Trustees. Prime Details eg. No. 2005/017098/07 Tel number: ; PostNet Suite 208, Private Bag X9, save@primeinvestments.co.za Benmore, 2010 Website: primeinvestments.co.za