Cloud Atlas INVESTING

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1 AMI series Exchange Traded Funds Offering analysis February 2018 Investing in Africa MadeEasy CONTENT AFRICA INVESTING A CLOUD ATLAS MODEL 2 The Africa Wealth Building Blocks 2 Risk Parity Considerations 2 Update on the AMIB50 3 Performance 4 Role of the AMI Big50 5 LIQUIDITY AND MARKET DEPTH 6 Bandwidth Capacity Definition 6 THE 52 WEEK VIEW OF AMIB50 BANDWIDTH CAPACITY 8 FUND SIZE CAPACITY 10 Cloud Atlas INVESTING AMI REAL ESTATE 11 What makes the African property a sector buzz 12 Fund information 13 Summary of constituents 14 ACCESSING THE PRODUCTS 15 ADDENDUM THOUGHTS 16 Africa Allocations Future Cloud Atlas Offerings 16 The Big 5.0 A guide to investing in Africa 17 Ground floor Cradock Heights 21 Cradock Avenue Rosebank Johannesburg 2196 Office phone:

2 AFRICA INVESTING A CLOUD ATLAS MODEL Investing in multiple regions is a tricky exercise, particularly if those regions are still developing and considered Frontier. These are the issues often highlighted when we are pitching investing in Africa: i) information blockage and ii) liquidity costs; and all of these emanate from the uncompetitive and inefficient systems and processes that are at play on some of the stock exchanges on the African continent. Changing this reality and making Pan African investing a vibrant investment option takes an investment into Cloud Atlas Investing products, which seek to both deliver the growth of Pan African Markets for investors and also fulfil the crucial role of developing and deepening the investment landscape. This is why we are here; to make the African investment opportunity easy and accessible. The use of passive investing techniques allows us to deploy capital in such a way that it unlocks the liquidity available in the Pan African opportunity, without excessive price discovery impact. The Africa Wealth Building Blocks Cloud Atlas Investing listed the first ever Pan Africa ex South Africa Exchange Traded Fund ( ETF ), AMIB50, on the JSE. Since Cloud Atlas Investing is a Collective Investment Scheme, it allows investors to easily gain African exposure in a safe and well regulated environment which can be suited to any investment strategy. The AMIB50 is a ZAR denominated fund and offers investors a Rand hedge. Previously investors had limited access to Rand hedges assets issued by local entities, now individuals can invest as much as they please in Africa. Following the Inward Listing dispensation for the AMIB50 and all other African ETFs, an investment into the AMIB50 or the AMIRE is seen as an Africa allocation according to the Regulation 28 of Following this successful listing, we presented the AMI Real Estate ex-sa ETF ( AMIRE ) as another investment option on the JSE. This ETF gives investors access to the Pan African real estate sector, outside of South Africa. It s easy to make a case for investing in African property. By some estimates, the continent is expected to be home to 40% of the world s population by the end of this century. With a young population and rapid urbanisation, there s much building to be done. Until now, gaining access to the companies who are profiting from the continent s growth spurt has been a challenge, according to JustOneLap. Risk Parity Considerations The concept of risk parity evolved in the early 2000 s, the key parameters for implementing it included: uncorrelated assets and passive management. A level of risk parity exists within the main AMIB50 ETF, as it has strong diversity among regions and sectors. As more products get developed the ability to achieve true risk parity through multi-asset class allocations becomes a reality for Pan Africa ex-sa investment allocations. 2

3 2017/07/ /07/ /08/ /08/ /08/ /08/ /09/ /09/ /09/ /09/ /09/ /10/ /10/ /10/ /10/ /11/ /11/ /11/ /11/ /12/ /12/ /12/ /12/ /12/ /01/ /01/ /01/ /01/26 Rand price of ETF Rands Update on the AMIB50 ETF price and value movement (ZAR) Commentary 2018 got off to a great start with African markets holding up their valuations. The AMIB50 experienced volatile price movements during November and December 2017, because of the strengthening Rand. We see the index still holding strong above 11,000 points, propping itself for a genuine bull run, even as the Rand continues to strengthen. A steady Rand allows for the performance of African markets to really show in the ETFs pricing. In this quarter we are optimistic about Africa, while keeping an eye on two markets: i) Kenya and ii) Zimbabwe. In Kenya the opposition party has inaugurated their own party leader as country president. The positive political climate in Southern Africa, mainly SA and Zimbabwe creates business friendly climate. Perf. (ZAR) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total % 7.57% -0.03% 2.47% -1.15% 4.86% 6.10% -7.06% -9.02% 5.21% % 0.5% Top 10 Holdings Name Country Weight Itissalat Al Maghrib (Maroc Telecom) Morocco 14.2% Coml.Intl.Bank (Egypt) Egypt 9.2% Guaranty Trust Bank Nigeria 6.6% Safaricom Kenya 5.4% Delta Zimbabwe 4.6% MCB Group Ltd Mauritius 3.6% Tanzania Breweries Tanzania 3.2% Attijariwafa Bank Morocco 3.1% Nigerian Breweries Nigeria 2.9% Lafargeholcim Maroc Morocco 2.8% Total Country 55.6% Source: Cloud Atlas research, Fund factsheet Quarterly dividend yields 0.15% 0.77% 0.75% 0% Q1 Q2 Q3 Q4 3

4 Change in price Index perfomrnace rbased to Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan-2018 Performance The AMI Big 50 ex-sa has delivered impressive returns over the last 5 years and managed to outperform the benchmark to a large extent. When looking at the inflation adjusted return the outcome is still favourable for the AMIB50 index. Cumulative performance FTSE JSE Africa Top 30 ex-sa AMI Big50 ex- SA Outperformance Six month -2.6% 0.1% 1.0x Cloud Atlas Big-50 ex-sa vs FTSE/JSE Index 1 year 17.2% 15.8% 0.1x 100 Cloud Atlas AMI Big 50 ex-sa FTSE JSE Africa Top 30 ex-sa 50 3 years -3.0% 6.7% 3.3x 5 years 21.1% 56.1% 1.7x Country Weighting Inflation Weighted (5 years) inflation Botswana 2.35% 21.65% 0.51% BRVM 6.09% 5.50% 0.34% Egypt 17.21% 84.47% 14.54% Ghana 1.61% 98.14% 1.58% Kenya 12.88% 33.77% 4.35% Mauritius 6.82% 13.95% 0.95% Morocco 26.52% 7.00% 1.86% Nigeria 14.34% 71.35% 10.23% Tanzania 3.69% 32.63% 1.20% Tunisia 1.67% 28.46% 0.48% Uganda 0.96% 27.56% 0.27% Zambia 0.76% 44.16% 0.34% Zimbabwe 5.09% 0.33% 0.02% Total 36.65% Real return Inflation adjusted FTSE JSE Africa Top 30 ex-sa % AMI Big50 ex-sa 14.24% 5 year change in liqudity vs change in price 400.0% 300.0% 200.0% 100.0% 0.0% % % 0.0% 100.0% 200.0% 300.0% 400.0% % % Change in Liquidity 4

5 Role of the AMI Big50 Cloud Atlas Investing provides building blocks for an Africa ex-sa strategy, through examining the stock market universe of the African continent and offering investors a window for further analysis for their portfolio strategies. We organise the stock universe into sectors using ICB sector codes, after which we apply a set of index rules to the universe to produce a consistent selection of stocks that form the AMI series. This creates a starting point for an investor to be able to use the organised stock universe as either an opportunities field or a filter to make further Strategic investments. AMIB50 ETF Strategic portfolio Africa ex SA stock universe AMI Big50 Strategic Allocation 27 Stock exchanges 712 Primary listed stocks 72 Dual listed stocks 40 ICB sectors 13 Stock exchanges 50 Primary listed stocks 0 Dual listed stocks 11 ICB sectors Enhance exposure to existing filtered stocks Apply fundamental research to take higher stand-alone stakes in AMIB50 stocks Assess liquidity premium/discounts for fundamental valuations Drop offs (-52)% Stock exchanges (-93)% Primary listed stocks (-100)%Dual listed stocks (-73)% ICB sectors Opportunities field why did the other stocks drop off Warrants: Room for looking at other sectors eg Tech Peer-to-peer comparison with companies in the index and analysis of companies with different growth prospects Looking at macro-economic reasons to upweight certain countries or sectors in the index Field to search for dividend payers higher than those selected for the AMIB50 5

6 LIQUIDITY AND MARKET DEPTH The potential of Pan Africa ex-sa products is immense, however, it is important to view the landscape realistically and see the practical application of Cloud Atlas Investing funds. Bandwidth Capacity Definition In the three years leading up to the product launch a lot of time was spent a lot of time analysing African markets and their challenges, two main issues that emanated from this analysis were: i) liquidity and ii) capacity of the products to absorb large sum investments. In light of this Cloud Atlas developed a solution which, borrowed from the telecoms industry, looks at providing access to markets through pre-determined bandwidth channels. When one invests in Africa it is a function of playing in the natural pools of liquidity that exist in the secondary market and a strategy that buys bandwidth does not dry-up liquidity or unfavourably move prices, thereby creating efficiency and predictability of an investors capital deployment. Investors want to be able to get in and out of positions in a reasonable amount of time; so in order to achieve effective capital flows the fund manager needs to understand how much money they are going to deploy and which stocks they will trade in order to achieve optimal results. This is where a well constructed index, which is passively managed, finds its strong points by providing unshaped access to African markets which is consistent, fast and price efficient. Index investing ensures a consistent allocation to a group of stocks and such deliberate buying and selling is without speculation and within the weekly bandwidth limits determined by the African secondary market liquidity pools. In light of this Cloud Atlas recognises that: The total sum of the value traded in the AMIB50 constituents is R 1.6 billion per week and that actually trading this amount in a week is unachievable. The weekly basket size for the AMIB50 is R 40 million per week, varies week by week, as seen in the 52 week overview. The best times and days to trade a basket are between 10am 2pm Friday to Tuesday. Every trade basket will have residual, what is not traded within the week, ours is less than 2%. At 100% bandwidth utilisation, the AMIB50 can sustainable grow by R billion per annum in a bull market and effectively liquidate R 2.0 R2.1 billion in a bear market. If the buying bandwidth is used consistently every week, it would take 30 years for the AMIB50 to reach its maximum capacity fund size of R 59.3 billion, this is sizeable when compared to the total market value of assets held by managers on the *RisCView survey at R 34.2 billion. * Source: as at end of November

7 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 Value traded per week In light of this Cloud Atlas developed the following overview: AMIB50 weekly company turnover (ZAR) 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000, ,000, ,799, ,318, , , , ,500 7,437, , ,800 99, , , , Total weekly turnover value ----Typical 8% of total turnover (bandwidth) ---- AMIB50 guaranteed turnover (bandwidth ) ---- AMIB50 capacity utilised 2017 Summary: It is near impossible to deploy capital at levels close to the total weekly turnover of the AMIB50 constituents, whether its for single company or multi-stocks, without i) assuming all of the days trading volume and ii) creating serious price distortion. Looking at an *8% of value traded bandwidth is more practical for a passive strategy but could impact price discovery. The optimal allocation of liquidity is the passive weighted approach that the AMIB50 offers. This almost certainly guarantees trade execution with no wide spreads, excessive residual or unfavourable price discovery. Since listing Cloud Atlas Investing has made use of at most 27% of its weekly bandwidth capacity, in week 33 of 2017, so there is lots of capacity available. * 8% is based on the average daily volume a fund can reasonably be responsible for, across multiple African markets. 7

8 Week Week Week 6-9 Week Week 1-5 Week THE 52 WEEK VIEW OF AMIB50 BANDWIDTH CAPACITY Jan-Feb 1 70,175, ,853, ,312, ,289, ,004,198 Public holidays: 01 Jan - New Years day (Bots); 11 Jan - Independence manifesto day (Moro); 14 Jan - Youth and Revolution day (Tuni); 25 Jan - Revolution day (Egyp); 26 Jan - BRVM Liberation day (Ugan); 31 Jan - Thaipoosam Cavadee (Maur) Feb-Mar 6 52,468, ,581, ,153, ,841,330 Public holidays: 01 Feb - Abolition of slavery day (Maur); 13 Feb - Maha Shivaratee (Maur); 16 Feb - Chinese New Year (Maur), Archbishop Janani Luwum memorial day (Ugan); 21 Feb - RG Mugabe National youth day (Zimb) Mar-Apr 10 37,856, ,674, ,275, ,045, ,160,467 Public holidays: Good Friday; 06 Mar - Independence day (Ghan); 08 Mar - Womens day (Ugan, Zamb); 12 Mar - Indepedence day (Maur), Youth day (Zamb); 20 Mar - Independence day (Tuni) (Egyp); 26 Jan - BRVM Liberation day (Ugan); 31 Jan - Thaipoosam Cavadee (Maur) Apr-May 15 26,086, ,375, ,001, ,513,132 Public holidays: Holy Sunday; 09 Apr - Martyrs day (Tuni); 18 Apr - Independence day (Zimb); 25 Apr - Sinai Liveration day (Egyp); 26 Apr - Unin day (Tanz) May-Jun 19 36,890, ,544, ,001, ,262, ,981,660 Public holidays: Ascension day; 01 May - Workers day; 04 May - Cassinga day (Nami); 21 May - Whit Monday (BRVM); 25 May - Africa day (Ghan, Nami, Zamb, Zimb); 29 May - Democracy day (Nige) Jun-Jul 24 46,555, ,575, ,477, ,317,324 Public holidays: 01 Jun - Madaraka day (Keny), Republic day (Ghan); 03 Jun - Martyrs day (Ugan); 09 Jun - National Heroes day (Ugan); 12 Jun - Quran Revalation (BRVM); 15 Jun - Eid al-fitr 8

9 Week Week 50-End Week Week Week Week Jul-Aug Week 28 30,499, ,818, ,068, ,789, ,774,796 Bandwidth per week (ZAR) Public holidays: 01 Jul - Sir Seretse Khama day (Bots); 02 Jul - Heroes day (Zamb); 03 Jul - Unity day (Zamb); 07 Jul - Dar es Salaam Trade Fair (Tanz); 16 Jul - Presidents day (Bots); 23 Jul - Revolution day (Egyp); 25 Jul - Republic day (Tuni); 30 Jul - Throne day (Moro) Aug-Sep 33 27,006, ,945, ,449, ,300, ,864,577 Public holidays: 04 Aug - Founder day (Ghna); 06 Aug - Farmers day (Zamb); 07 Aug - Independence day (BRVM); 08 Aug - Peasants day (Tanz); 13 Aug - Womens day (Tuni), Heroes day (Zimb); 14 Aug - Oued Ed-Dahab day (Moro), Defence forces day (Zimb); 15 Aug - Assumption day (BRVM, Maur); Religous holidays (Egyp); 21 Aug - Fete de la Jeunesse (Moro); 26 Aug - Heroes day (Nami) Sep-Oct 38 34,717, ,580, ,807, ,284,380 Public holidays: 11 Sep - Islamic new year; 14 Sep - Ganesh Chathurthi (Maur); 21 Sep - Kwame Nkrumah memorial day (Ghan); 30 Sep - Botswana day (Bots) Oct-Nov Week Bandwidth per week (ZAR) 42 32,723, ,719, ,126, ,426,792 Public holidays: Moi day (Keny); National holiday (Nige); Mwalimu Julius Nyerere (Tanz); Evacuation day (Tuni); Independence day (Ugan); Independence day, National day of prayer (Zamb) Nov-Dec 46 84,794, ,843, ,459, ,366,622 Public holidays: All saints day; National Peace day; Prophets birthday; (BRVM); Arrival of indentured laborers (Maur); Divali (Maur); Green march day (Moro); Independence day (Moro) Dec - End Week Bandwidth per week (ZAR) 50 60,535, ,115, ,260,617 End Public holidays: Farmers day (Ghan); National day of unity (Zimb); 25 Dec - Christmas Day; 26 Dec - Boxing day30 Jul - Throne day (Moro) 9

10 Kenya Reinsurance Corp Ltd Custodian And Allied Plc Label Vie Sa Kenolkobil Ltd Tanzania Portland Cement Company Ltd Cal Bank Ltd Forte Oil Plc Zambia National Commercial Bank Plc Alteo Ltd Turnstar Holdings Ltd Palmci Sa Douja Promotion Groupe Addoha Sa Kenya Electricity Generating Co Ltd Carthage Cement Sa Umeme Ltd Managem Sa Crdb Bank Plc Societe De Fabrication Des Boissons De Alexandria Mineral Oils Co Sae Total Maroc Sa La Compagnie Ivoirienne D'Electricite Sa Fan Milk Ltd Bollore Transport & Logistics Cote Bamburi Cement Ltd Talaat Mostafa Group Holding Co Sae Taqa Morocco Ord Choppies Enterprises Ltd Onatel Sa Edita Food Industries Sae El Sewedy Electric Co Sae Banque De Tunisie Sa Total Cote D'Ivoire Sa Societe Generale De Banques En Cote D Global Telecom Holding Sae Econet Wireless Zimbabwe Ltd East African Breweries Ltd Cosumar Dangote Cement Plc Kenya Commercial Bank Ltd Lafarge Holcim Maroc Attijariwafa Bank Sa Nigerian Breweries Plc Tanzania Breweries Ltd Delta Corp Ltd Mcb Group Ltd Safaricom Ltd Guaranty Trust Bank Plc Commercial International Bank Egypt Itissalat Al Maghrib Ste Sa R 122,482,386 R 308,721,488 R 562,507,341 R 842,119,476 R 1,132,268,735 R 1,458,929,648 R 1,801,612,124 R 2,150,182,812 R 2,500,557,150 R 2,855,338,495 R 3,228,606,642 R 3,622,239,914 R 4,022,845,980 R 4,427,946,331 R 4,873,779,273 R 5,322,873,226 R 5,784,454,452 R 6,251,562,045 R 6,759,635,284 R 7,274,999,608 R 7,796,482,684 R 8,363,277,419 R 8,958,918,544 R 9,559,860,581 R 10,167,543,804 R 10,777,456,148 R 11,495,948,527 R 12,216,623,981 R 12,953,105,399 R 13,694,043,210 R 14,438,458,758 R 15,214,622,709 R 16,007,231,983 R 16,803,142,109 R 17,623,404,831 R 18,699,368,294 R 19,835,570,949 R 21,201,056,179 R 22,613,222,853 R 24,101,089,047 R 25,811,527,828 R 27,693,260,148 R 29,750,236,224 R 31,959,237,823 R 34,357,401,548 R 36,780,857,833 R 40,025,111,546 R 44,684,553,879 R 50,590,084,511 R 59,315,336,843 FUND SIZE CAPACITY It is almost certain that a Pan African product ex-sa has a certain fund size before it becomes too big. The AMIB50 fund size capacity before being too big is measured by understating: how much capital can the fund allocate before it owns 5% of the market value of any one of the underlying companies. Applying this maths leaves the AMIB50 with a fund size capacity of R 59.3 billion. Capital capacity of the AMIB50 (ZAR) Given the current liquidity in the AMIB50 consituents, at roughly R 2 billion per year, it would take 30 years to reach capacity. R 59,314,861,394 Running total of 5% of the company's market value AMIB50 capacity 10

11 AMI REAL ESTATE Investing in the African skyline and developing landscape. The Cloud Atlas Real Estate ex-sa portfolio is an investment exchange traded fund that invests in the prime Real Estate companies on the African continent excluding South Africa. The companies in this fund track the Cloud Atlas AMI Real Estate ex-sa index, which has companies with portfolios that span Residential, Retail, Industrial and Tourism segments, as well as new developments. As the underlying constituents of the index are mostly listed as Real Estate Investment Trusts ( REITs ) this offers investors in the fund direct liquid stakes in the property portfolios. Fund Objective To closely track the performance of the AMI Real Estate ex-sa index, by investing in the shares of the companies represented by the index. Mission To create an investment offering that trades listed African Real Estate companies. Giving investors Pan African exposure to the changing demographics of the continent and constantly improving skyline. Vision By Investing in the companies represented by the AMI Real Estate ex-sa index, we provide investors exposure to many African markets through owning the shares in the listed companies. And by owning shares in these companies, we hope to create wealth for the investors that they can use to improve their standard of living. 11

12 What makes the African property a sector buzz Africa has one of the youngest populations in the world and is experiencing a growth spurt in its urbanisation. This trend is expected to grow as more Africans move into urban areas and more businesses establish areas of operation to service this growing population. It is estimated that before the end of the century 40% of the worlds population will occupy the expansive African landscape. The African property sector has attracted large amounts of inflow from foreign investors who have spotted the spectacular economic and demographic opportunities. While China usually occupies the top spot in terms of investments into Africa, the property sector has attracted flows from the Middle East, as well as South African investors going into the rest of Africa. Knight Frank reported: The rapidly growing economies of Africa are catching the attention of increased numbers of property investors and corporate occupiers. Africa is no longer viewed as a region of long term economic distress, but is increasingly seen as a continent of opportunity. From JustOneLap: The equally-weighted ETF invests in 13 African real estate companies at a TER of 0.75%. Of the constituents, five are listed in Egypt and only one in Kenya. However, the regional exposure picture is not cut and dry. The Mauritian-listed Grit, for example, holds significant assets in Mozambique, where a natural gas pipeline is attracting significant foreign investment. This company also invests in the Zambian property market. While no listed companies from these two regions are included in the ETF, investors can still benefit from exposure to these markets. 12

13 Fund information Profile AMI Real Estate ex-sa ETF Fund issuer Base currency Fund domicile Cloud Atlas (RF) Proprietary Limited South African Rand South Africa ISIN Primary listing Listed ticker code Targeted Total Expense Ratio Pricing Liquidity of participatory units ZAE Johannesburg Stock Exchange AMIRE 0.75% (0.75bps) per annum Daily Primary market ZAR 10million per week Secondary market ZAR 100k per day Historical dividend yields 4.15% Country coverage Botswana, Egypt, Kenya, Mauritius, Morocco, and Nigeria Targeted return/historical return (ZAR) From 9.44% 13

14 Summary of constituents ETF Constituent Closing price Exchange Country Relative Weight New African Properties R 4.24 Botswana 7.69% Turnstar Holdings R 4.36 Botswana 7.69% Medinet Nasr Housing R 7.88 Egypt 7.69% Emaar Misr For Development R 2.86 Egypt 7.69% Heliopolis Housing R Egypt 7.69% Palm Hills Devs.Sae R 3.09 Egypt 7.69% Six Of Oct.Dev.& Inv. R Egypt 7.69% Trans Century R 0.82 Kenya 7.69% Douja Prom Addoha R Morocco 7.69% Alnc.Dvppt.Immobilier R Morocco 7.69% Res Dar Saada R Morocco 7.69% Grit Real Estate (Mau) Income Group R Mauritius 7.69% Uacn Property Dev. R 0.11 Nigeria 7.69% 14

15 ACCESSING THE PRODUCTS Buying the Cloud Atlas ETFs is for everyone On the JSE!!Buying the ETFs on the JSE is done via 1 of 2 ways and often has lower liquidity as it relates to existing units which existing holders are either buying or selling from one another!! 1 Directly from us Platforms Recommended for IFAs looking for ETFs, and individuals for regular savings, TFSA and RA s Stock brokers Recommended for individuals, high net worth, private wealth and IFA s with stock accounts 2!!Buying the ETFs directly from us has greater liquidity and also relates to the creation of new units!! To buy and sell an amount over R 100,000 per day Contact trading@cloudatlasinvesting.com Phone: etfsa Call: (Great for looking at RA s Tax free savings and Stokvels itransact Call: Computershare Big Banks Standard Online share trading: FNB securities: Consilium securities Easy Equities Easy Equities: If you already have a brokerage account or if you are trading on a platform, we will create units for you. These units will then be deposited directly into your share trading account or done as an open market trade If you do not have a brokerage account visit: /investor-application/ and complete the investor for with your details Sygnia Under ETFs section Momentum Soon to be added Nedbank securities: (0) Other stockbrokers Investec securities Africa desk: An account will then be opened for you with any one of the stockbrokers 3 15

16 ADDENDUM THOUGHTS Africa Allocations Future Cloud Atlas Offerings When the whole of Africa presents unique opportunities across a multitude of economic segments, a great way to achieve solid returns in a well regulated manner would be to take advantage of the multi-asset approach. In future we aim to offer investors products across a few asset classes, while keeping true to our Pan African ex-sa regional focus. Pan African Investment Products AMIFIX AMIB50 A generalist equity fund with exposure to 13 African markets. The fund ensures diversity by ensuring the companies that are invested in do not over -crowd the portfolio with any particular country or any particular sector. AMIREIT A REIT and property income fund with exposure to listed real estate vehicles on the rest of the African continent, offering yields from existing portfolios and new developments this is a defensive allocation and is less risky than equities. AMIB50 ~ Funds will be listed as Exchange Traded Funds AMICOM AMIREIT AMIFIX - A Government bond fund that takes advantage of the high interest rates being paid on the African continent. Economic conditions prevalent in a country and the Government s ability to continually service debt makes this fund a good fixed income option or a shelter in bear equity markets. AMICOM An innovative fund that holds soft commodities which are in abundance on the African continent. There are existing hard commodity funds such as Gold, Platinum and Palladium however this fund would be exposed to the prices of commodities such as Coffee beans, Maize, Sorghum and Sugar. 16

17 The Big 5.0 A guide to investing in Africa Once we cross ZAR 500 million in AuM we will commission an annual document that will hold a solid review of the African markets. This document will contain analysis on the economic, political and market of the countries the AMI series operates and will also publish the results and forecast of the companies traded in the AMI series The Lion This 1 ½ page section will contain content that covers and surrounds the ETFs and the indices they are tracking; it will serve as a explainer of the fund performance. The Elephant This will unpack the country view for all 15 countries in the AMI series, making a ½ a page investment case for each country. The Buffalo This 2/3 page section will unpack the present political situations on the continent and what the means for investors, things such a Kenya fixing interest rates, Nigeria managing 5 FX rates e.t.c. The Leopard This will be a company fundamental analysis and forecasts of the companies in the AMI series. Say for example the top 5 companies; would each get a 1½ write up on what the company does, how its stock performed and what the opportunity is. Lastly the thematic, endangered Rhino This 2 page section will explore long standing themes of the Africa continent, such as Africa rising, Africa power and infrastructure, African consumer. I think the prevalent theme at the moment is PE in the rest of Africa, we can also look at what will happen is Pension funds across the continent switch to investing in stock markets as opposed to fixed income or property. 17