ASSET MANAGERS The currently appointed asset managers for the Market Risk Portfolio are as follows:

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1 November 2018 M A R K E T R I S K P O R T F O L I O INVESTMENT OBJECTIVE. The Market Risk Portfolio aims to deliver a good return relative to headline inflation over the long term, but does not provide a guarantee. The investment objective of the Portfolio is to achieve a return (after deducting management expenses) that is 5% per annum higher than headline inflation over any rolling 5-year period. The Market Risk Portfolio has a long-term investment horizon and one should not assess its performance over periods of less than 5 years. The Market Risk Portfolio s underlying assets are typically invested some 72.5% in local and global equities, 22.5% in fixed interest and 5.0% in SA listed property. The actual allocation of the portfolio will vary within pre-defined parameters around the strategic asset allocation. International Real Estate 2.0% International Equity 32.0% Asset Allocation 30 November 2018 Africa 3.4% Renewable Energy 4.3% ZAR / US$ Collar 2.2% High Yield Credit 2.4% SA Equities 30.7% SA Bonds 8.5% Domestic Absolute SA Listed 9.3% Property 5.3% The assets of the Market Risk Portfolio are invested in a mix of shares, property and bonds (local and offshore). As such it is exposed to the performance of these markets and the return you earn from this portfolio over a period may be positive or negative depending on market conditions. Part of the investment approach adopted by the Fund is that its SA and international equities are managed with a significant weighting towards investment managers that are long-term and value focused. This means that the performance of this portfolio is likely to be different from that of the average retirement fund generally delivering better performance in weak markets, but possibly underperformance in strong markets. Market Risk Portfolio November 2018 ASSET MANAGERS The currently appointed asset managers for the Market Risk Portfolio are as follows: SA Equities: Allan Gray Limited Abax Investments Steyn Capital Management Visio Capital Management Value Capital Partners SA Domestic Absolute: Allan Gray Limited SA Bonds: Futuregrowth Asset Management SA Cash: Investec Asset Management ZAR/USD Collar: SA listed Property: Sesfikile Capital Renewable Energy: Old Mutual Investment Group Renewable Energy Debt: Vantage Green X Note II International Equities: Hosking Global Fund Contrarius Global Equity Fund Veritas Global Focus Fund Lindsell Train Global Equity Fund Lansdowne Developed Markets Fund GQG Partners Global Equity Fund Emerging Market Equities: Diversified manager line-up via Sygnia Life International Real Estate: Clearbell Property Partners Resolution Capital Africa Real Estate: Africa Equities: MARKET PERFORMANCE Momentum / Eris Steyn Capital Management The performance of the main market indices for the 1 and 12 month periods ended 30 November 2018 are shown below: November 12 Months All Share Index (ALSI) -3.2% -12.6% SA Listed Property (ALPI) -4.6% -20.5% All Bond Index (ALBI) 3.9% 13.1% Money Market (STEFI) 0.6% 7.3% MSCI All Country World (Rand) -4.7% 1.2% JP Morgan Gov Bond (Rand) -5.6% -1.3% MSCI FM Africa (Rand) -5.2% -9.2% MSCI Emerging Market (Rand) -2.2% -7.3% FTSE EPRA/NAREIT (Rand) -2.6% 3.8% Rand / US Dollar -6.1% 1.6% PORTFOLIO PERFORMANCE The following table shows the investment performance of the Market Risk Portfolio over periods ended 30 November The returns shown are after deduction of investment manager fees, i.e. the returns as credited to. Return credited to Headline inflation Year to date (11 months) -2.3% 4.9% 1 year -4.2% 5.4% 3 years (p.a.) 4.1% 5.5% 5 years (p.a.) 8.0% 5.4% 10 years (p.a.) 12.6% 5.3% Since 1 April 2003 (p.a.) 14.8% 5.3% Page 1

2 PORTFOLIO PERFORMANCE (CONTINUED) The graph below shows the illustrative cumulative value on 30 November 2018 of R100 invested in the Market Risk Portfolio on 1 April 2003 (the inception date of the portfolio), compared to the extent to which R100 at 1 April 2003 would have increased on account of headline inflation. The graph reflects the portfolio return after investment manager fees (and after retirement fund tax for the applicable period prior to 1 March 2007). LONG TERM INVESTMENT PERFORMANCE The graph below shows the illustrative cumulative value on 30 November 2018 of R100 invested in the Moderate Portfolio on 1 April 2000 (the inception of member investment choice in the Fund) compared to the extent to which R100 at 1 April 2000 would have increased on account of inflation. The Market Risk Portfolio replaced the Moderate and Growth Portfolios on 1 April Portfolio returns are shown after manager fees (and after retirement fund tax for the applicable period prior to 1 March 2007). The performance on the Moderate / Market Risk Portfolio (after manager fees) has exceeded headline inflation by 6.9% per annum over the 18-year and 8-month period since 1 April 2000 to 30 November Note: Inflation for November 2018 has been estimated as the final CPI number for the month had not yet been published at the time of writing. Market Risk Portfolio November 2018 Page 2

3 C O N S E R V A T I V E P O R T F O L I O INVESTMENT OBJECTIVE. The Conservative Portfolio s investment objective is to provide an investment return that is 3.5% per annum higher than headline inflation (after deducting management expenses) over a 3-year measurement period. Such an investment return is not guaranteed and will depend on capital market returns and investment manager skill. This portfolio is generally, but not exclusively, suitable for that have an investment horizon of some 2 to 5 years; or that are by nature risk adverse and who are uncomfortable with the wide range of investment returns that are possible from the Market Risk Portfolio. This Portfolio is a conservative market related portfolio that mainly follows an approach of a diversified combination of absolute return type strategies. Some 57% of the Portfolio is invested in domestic absolute return type strategies targeting a positive return above inflation over the medium term, while a further approximately 20% is invested in strategies that aim, but do not guarantee, to provide a return over 12 months that is at least equal to that of money market instruments (after allowing for investment manager fees). The balance of the Portfolio of some 23% is invested in international equities and international property. The pie chart below shows the actual allocation of the portfolio at the reporting date: International Real Estate 1.6% International Equity 22.5% Asset Allocation 30 November 2018 SA Credit 0.5% ZAR / US$ Collar 1.5% Enhanced Cash 20.2% SA Absolute Return 53.7% The underlying asset allocation of the domestic absolute return type strategies is at the discretion of the asset managers within set parameters, taking account of their market view, and derivatives may be used to protect the downside. The Conservative Portfolio aims to deliver steady investment returns over 12-month periods with a very low risk of a negative return over a measurement period of 3 years. It is important to note that over shorter measurement periods (e.g. 6 months), there is a higher chance of negative returns and there will be months where the return from this portfolio is negative. ASSET MANAGERS The asset managers for the Conservative Portfolio are: Domestic Absolute Return type strategies: Allan Gray Limited Enhanced Cash type strategies: Investec Asset Management ZAR / USD Collar: International Equities: Hosking Global Fund Contrarius Global Equity Fund Veritas Global Focus Fund Lindsell Train Global Equity Fund Lansdowne Developed Markets Long Only Fund GQG Partners Global Equity Fund Global Emerging Market Equities: International Real Estate: Diversified manager line-up via Sygnia Life Clearbell Property Partners Resolution Capital PORTFOLIO PERFORMANCE The following table shows the investment performance of the Conservative Portfolio over periods since inception of the Portfolio (1 August 2005) to 30 November The returns shown are after deduction of investment manager fees, i.e. the returns as credited to. Return credited to Headline inflation Year to date (11 months) 3.4% 4.9% 1 year 2.1% 5.4% 3 years (p.a.) 7.2% 5.5% 5 years (p.a.) 8.6% 5.4% 10 years (p.a.) 10.4% 5.3% Since 1 August 2005 (p.a.) 10.2% 5.9% The Conservative Portfolio net performance is 1.7% p.a. ahead of inflation over the 3-year measurement period. Conservative Portfolio November 2018 Page 3

4 CONSERVATIVE PORTFOLIO INVESTMENT PERFORMANCE The graph below shows the illustrative cumulative value on 30 November 2018 of R100 invested in the Conservative Portfolio on 1 August 2005 (inception date of the portfolio) compared to the extent to which R100 at 1 August 2005 would have increased on account of inflation. Portfolio returns are shown after manager fees (and after retirement fund tax for the applicable period prior to 1 March 2007). The performance of the Conservative Portfolio (after manager fees) has exceeded headline inflation by 4.3% p.a. over the 13-year and 4-month period since 1 August 2005 to 30 November Note: Inflation for November 2018 has been estimated as the final CPI number for the month had not yet been published at the time of writing. Conservative Portfolio November 2018 Page 4

5 S E C U R E P O R T F O L I O INVESTMENT OBJECTIVE The Secure Portfolio has been designed to deal mainly with the risk a member faces when his/her investment horizon becomes rather short. The key risk here is that when you receive your benefit the market is at a low point. Any money you pay into the Secure Portfolio (i.e. contributions and amounts transferred into this portfolio) plus the vested bonus declared by the Insurer is protected under most scenarios. The investment objective of the Secure Portfolio is to earn a return of 3.5% per annum (after deducting the investment managers fees and insurer charges) higher than headline inflation over any 5-year period, although this level of return is not guaranteed. The Secure Portfolio is invested in the Momentum Multi Manager Smooth Growth Fund. The underlying assets in this fund are typically invested some 45% in SA equities, 5% in property, 25% in SA bonds and cash and 25% offshore. PERFORMANCE The following table shows the annualised investment performance of the Secure Portfolio over periods ended 30 November The returns shown are after deduction of investment manager fees and after retirement fund tax over the applicable period prior to March 2007, i.e. the returns as credited to. Return credited to Headline inflation Year to date (11 months) 4.3% 4.9% 1 year 5.3% 5.4% 3 years (p.a.) 6.5% 5.5% 5 years (p.a.) 10.9% 5.4% 10 years (p.a.) 9.4% 5.3% Since 1 April 2000 (p.a.) 10.7% 5.7% The Secure Portfolio net performance is 5.5% p.a. ahead of inflation over the 5-year measurement period. In a Smooth Bonus Fund product the Insurer smoothes investment returns usually over a period of 5 years. Smoothing means that the investment returns earned in good years are used to subsidize the investment return of poor years. The Insurer reflects this principle by declaring a bonus, part of which is a vested bonus and part of which is nonvested. The Insurer, at its sole discretion, may remove the non-vested bonus at any time (this is most likely to happen under adverse market conditions). The Secure Portfolio provides capital protection any money you invest in this portfolio, together with the vested bonus declared by the Insurer, is protected under most scenarios for purposes of benefit payments. SWITCHING OUT OF THE SECURE PORTFOLIO If you wish to switch your money out of the Secure Portfolio into another Portfolio, the amount you will receive is the lesser of: The total balance you have invested in this Portfolio together with bonuses declared; and The market value of the underlying assets based on the actual investment return earned on your money (after deducting the cost of the Insurer charges, and the investment management fee.) In effect this means that if the investment returns have been poor and you wish to switch-out, you will be credited with the actual investment performance rather than the smoothed return. Secure Portfolio November 2018 Page 5

6 PORTFOLIO PERFORMANCE (CONTINUED) The graph below shows the illustrative cumulative value on 30 November 2018 of R100 invested in the Secure Portfolio on 1 April 2000 (the inception date of the portfolio) compared to the extent to which R100 at 1 April 2000 would have increased on account of headline inflation. Returns are shown after investment manager fees (and after retirement fund tax for the applicable period prior to 1 March 2007). The performance after manager fees on the Secure Portfolio has exceeded headline inflation by 5.0% per annum over the 18-year and 8-month period since 1 April 2000 to 30 November Note: Inflation for November 2018 has been estimated as the final CPI number for the month had not yet been published at the time of writing. Secure Portfolio November 2018 Page 6

7 M O N E Y M A R K E T P O R T F O L I O INVESTMENT OBJECTIVE The investment objective of the Money Market Portfolio is to achieve investment performance slightly ahead of the published money market index (i.e. the composite STEFI). Please note that the interest earnings of the money market portfolio were subject to retirement fund tax until February 2007, resulting in a lower return after allowing for tax. The retirement fund tax rate was reduced from 18% to 9% with effect from 1 March 2006 and then abolished with effect from 1 March The Money Market Portfolio is invested in cash type instruments. The Portfolio aims to perform slightly ahead of the published money market index and the return on the portfolio will therefore depend critically on short-term interest rates. The assets are mainly invested with high investment grade banks. It is highlighted that even with these banks there is the risk of capital loss (albeit small), should one of these banks default. ASSET MANAGER Investec Asset Management manages the Money Market Portfolio. PORTFOLIO PERFORMANCE The following table shows the investment performance of the Money Market Portfolio over periods ended 30 November The returns shown are after deduction of investment manager fees, i.e. the returns as credited to. Year to date (11 months) 1 year 3 years (p.a.) 5 years (p.a.) 10 years (p.a.) Since 1 April 2000 Return credited to 8.0% 8.7% 8.8% 8.0% 8.0% 8.2% Headline Inflation 4.9% 5.4% 5.5% 5.4% 5.3% 5.7% The graph below shows the illustrative cumulative value on 30 November 2018 of R100 invested in the Money Market Portfolio on 1 April 2000 (the inception date of the portfolio) compared to the extent to which R100 at 1 April 2000 would have increased on account of headline inflation. The graph reflects the portfolio return after investment manager fees (and after retirement fund tax for the applicable period prior to 1 March 2007). Note: Inflation for November 2018 has been estimated as the final CPI number for the month had not yet been published at the time of writing. Towers Watson (a Willis Towers Watson company) is an authorised Financial Services Provider - Licence No Disclaimer: Investment is a complex area and every attempt has been made to simplify this summary for ease of understanding. This may result in some areas being covered in relatively little detail. Readers of this summary should note that: Past investment performance cannot be relied on as a guide for future investment performance; The information contained in this summary does not constitute advice by either the Board of Trustees, the Principal Officer or by its advisors; and Members may need to seek expert financial advice before making a future investment decision. Money Market Portfolio November 2018 Page 7