Unit Trust Annual Report. Old Mutual Unit Trust Managers Limited

Transcription

1 Unit Trust Annual Report Old Mutual Unit Trust Managers Limited

2 OLD MUTUAL UNIT TRUST MANAGERS LIMITED (REGISTRATION NO. 1965/008471/06) Management company: Old Mutual Unit Trust Managers Limited is a wholly owned subsidiary of Old Mutual (South Africa) Limited Chairman: PG de Beyer BBusSc, FASSA Managing director: PM Hugo BComm (Maths), FIA, FASSA, GMP Directors: RB Berelowitz BBusSc, FIA D Naidoo B.Com Dip Acc (Accounting), CA, Masters in Accounting Tax Portfolio management: Company secretary: Trustees: Old Mutual Unit Trust Funds: Old Mutual Investment Group (South Africa) Proprietary Limited; Old Mutual Asset Managers (UK) Limited and Investment Managers external to the Old Mutual Group have been appointed in the Multi-Manager Schemes Old Mutual Life Assurance Company (South Africa) Limited The Standard Bank of South Africa Limited, Standard Bank Centre, Heerengracht, Cape Town ABSA Bank Limited, ABSA Towers North, Johannesburg Address: Mutualpark, Jan Smuts Drive, Pinelands 7405, South Africa PO Box 207, Cape Town 8000, South Africa Telephone: (021) Client Support (021) Corporate Client Support Helpline: Facsimile: (021) Client Support (021) Corporate Client Support Priceline: unittrusts@oldmutual.com Corporate Clients: GroupOMIACorporates@oldmutual.com Internet: Acquiring units: Approved introducers: Units in Old Mutual s unit trusts can be bought telephonically from our head office or via the Internet. Our unit trusts are also represented by brokers, stockbrokers, banks, accountants, attorneys and Old Mutual advisers throughout South Africa. STATUTORY INFORMATION: Unit trusts are generally medium to long term investments. Past performance is no indication of future growth. Shorter term fluctuations can occur as your investment moves in line with the markets. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Unit trusts can engage in borrowing and scrip lending. The fund s TER reflects the percentage of the average Net Asset Value of the portfolio that was incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. A schedule of fees, charges and maximum commissions is available from the company. You may sell your investment at the ruling price of the day (calculated at 15h00 on a forward pricing basis and 17h00 at month-end for Old Mutual RAFI 40 Tracker Fund and Old Mutual Top 40 Fund). The Old Mutual Money Market Fund unit price aims to be static but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13h00), but may also include any gain/loss on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the fund. Specialist equity funds may hold a greater risk as exposure limits to a single security may be higher. A feeder fund is a portfolio that, apart from assets in liquid form, consists solely of participatory interests in a single portfolio of a scheme. A fund of funds unit trust invests only in other collective investment schemes, which may levy their own charges. Certain funds may be capped to be managed in accordance with their mandates. Different classes of units apply to these portfolios and are subject to different fees and charges. Old Mutual is a member of the Association for Savings and Investment SA. 1

3 OLD MUTUAL UNIT TRUST MANAGERS LIMITED Financial Statements Contents Page Chairman s message to 3 to 4 Significant events 5 Performance as at 31 December 6 Total expense ratio as at 31 December 7 Directors responsibility statement 8 Independent auditor s report 9 Financial statements 10 to 129 s to the financial statements 130 to 162 Report of the trustees 163 to 164 Management company annual financial statements 165 to 190 2

4 CHAIRMAN S MESSAGE TO UNITHOLDERS Looking back, was a challenging, yet exciting year. The ongoing European debt crisis and slowing growth in the US and China have been the biggest factors impacting the South African economy in, leading to a slowdown in growth that has been worse than expected. Last year, we continued to express concerns around lower expected returns amid the rampant macroeconomic fears, yet the JSE hit record highs thanks largely to the effect of quantitative easing in the US and Europe. Global macroeconomic risks have perhaps been receding somewhat from the high levels of, although they remain a concern. The new year, however, is not necessarily going to be a better one for investors. We expect lower returns across most asset classes in 2013, following the surprisingly buoyant returns of, as most good news has already been priced into both global and local equity markets. In addition, bond yields have very little room to fall further from their current historic lows. Fortunately, our portfolios were well positioned in for our investors to benefit from this return of market confidence. As we journey into 2013, it is wise to pause for thought and consider the current global economic conditions and how these may impact the structure of your investments. During these volatile times, we would like to encourage you not to keep all your eggs in one basket. Risk is lowered through diversification across the different asset classes. At Old Mutual Unit Trusts we therefore remain focused on offering you solutions which provide the benefits of diversification. We believe that you are more likely to achieve your goals through a carefully designed long-term plan that you review regularly with your adviser, to ensure you are progressing well. Reviews are vital because life can be unpredictable and goals may change. It is therefore important to make sure that your portfolio is continuously relevant to your investment objectives, given the prevailing economic and market conditions. Highlights of Changes to our fund range Many asset managers, including Old Mutual Unit Trusts, have named offshore equity as their preferred asset class over the next few years. As a result, we have extended our range to include the Old Mutual Global FTSE RAFI All World Index Feeder Fund, which is a great choice if you want global equity exposure and would like to gain offshore diversification across countries, sectors and companies (3 000 companies) at a fee which is at least 50% lower than those of the average global equity competitor unit trusts. With a recommended five-year investment horizon, its focus is on capital growth through broad exposure to developed and emerging market equity constituents of the FTSE RAFI All World 3000 Index. This adds to our already dynamic offering of offshore equities via the Old Mutual Global Emerging Markets Fund (launched in ) and the award-winning Old Mutual Global Equity Fund. To streamline our fund offering during the year, we also merged several funds with similar but more relevant mandates, following successful ballot processes: Old Mutual Global Technology Fund into Old Mutual Global Emerging Markets Fund; Four Plus Secure Fund of Funds and Four Plus Capital Fund of Funds into the Old Mutual Income Fund; Four Plus Growth Fund of Funds and the Four Plus Global Fund of Funds into the Old Mutual Balanced Fund. We are always looking for ways to improve your investment experience with us, as without the ongoing support of our valued investors we would not have a business. With this in mind, we will continue to focus on the relevance of our fund offering. With the permission of the Financial Services Board (FSB), further work in this space is imminent, and will be based largely on client feedback. Performance and awards We believe that it is more appropriate to structure a portfolio by selecting reliable funds that will help you achieve your goals, and remaining invested in them over the long term, rather than switching between funds as different asset classes or market sectors perform. For this reason, we focus on highlighting the merits of sustainable performance over the long term, and the importance of constructing an investment portfolio that is designed to help you achieve your objectives over time. Morningstar Award The Old Mutual Global Equity Fund has scooped a Morningstar category award for the best risk-adjusted performance within the Global Large Cap Equity category, based on one- and three-year performance periods to 31 December and was runner up in. Raging Bulls The Old Mutual Global Equity Fund also won a Raging Bull Award for top performance by a fund in the Foreign (South African-domiciled) Equity category, while the Old Mutual Income Fund won a Raging Bull Certificate for best Domestic Fixed Interest Income Fund both for the three years to 31 December. An ad campaign to remember Old Mutual Unit Trusts Classic Investment Collection ad campaign that kicked off in November and continued into focused on the barriers that typically keep people from investing. The campaign kept Old Mutual Unit Trusts top of mind and encouraged people to invest in the Classic 5 Investment Collection. It generated high levels of interest and appeared on airport billboards and in financial magazines until July. It also included catchy radio ads on a number of radio stations including KFM, Highveld and East Coast Radio. Compared to the first Classic Investment Collection campaign in 2010, responses to print media have increased by approximately 50%. 3

5 CHAIRMAN S MESSAGE TO UNITHOLDERS (continued) New secure site Because we re keen to make your investment experience simpler and more convenient, we are very excited about our new secure transaction site. Designed with a fresh, innovative appearance, the new site has a variety of features to ensure you have instant and easy access to all the information and transaction capabilities you need. Based on hours of expert research and client feedback, the site now boasts simplified navigation, quick links and stunning new functionality. The site offers easy-to-understand graphs that reflect performance and reporting views of your unit trust investment and retirement portfolio. All reports and statements can now also be downloaded, saved or ed in various formats for your convenience. As before, transacting includes the ability to buy, sell and switch or create new portfolios. You can now initiate a new Old Mutual Unit Trusts Retirement Annuity Fund contract online. We have also enabled multiple switching, so you can switch from one unit trust fund to more than one unit trust fund all in a single transaction! Switches can also be made from your standard unit trust portfolio to your retirement annuity portfolio. Economic outlook for 2013 With the global macroeconomic outlook expected to improve as China and the US both recover to an extent and worries over a Eurozone break-up recede, we believe that 2013 will be a better year for South Africa as more positive news filters through to our own markets. While the extended outlook for South Africa s economic growth continues to be fairly stagnant at around 3% per year, and the economy will again struggle to grow at more than this level throughout 2013, inflation is likely to remain somewhat subdued at around 6.0%, and interest rates should remain at or near their current historic lows. This remains a reasonably positive environment for saving and investing. Although we can also expect the usual ups and downs in the equity market, it s best to keep an eye on the future, ignore the short-term noise and stick to your long-term goals. At Old Mutual Unit Trusts we remain your committed investment partner, and strive to offer you a range of unit trusts from which you can structure a tailored investment portfolio and an investment experience that makes it a joy to put into practice. I would like to thank the brokers and financial advisers who have supported Old Mutual Unit Trusts over the years, and to commend management for their hard work and dedication. I would like to wish you every success in the investment year ahead. Thank you for continuing to invest with us and I trust that we will meet your expectations in 2013 and beyond. Peter de Beyer Chairman: Old Mutual Unit Trusts 4

6 SIGNIFICANT EVENTS 1. Fund launches The following fund was launched during : Fund name Launch date Old Mutual Global FTSE Rafi All World Index Feeder Fund 03 September The following fund merges took place during : Merge details Merge date The Old Mutual Global Technology Fund merged into the Old Mutual Global Emerging Market Fund 29 February The Old Mutual Four Plus Secure Fund of Funds and the Old Mutual Four Plus Capital Fund of Funds merged into the Old Mutual Income Fund The Old Mutual Four Plus Growth Fund of Funds and the Old Mutual Four Plus Global Fund of Funds merged into the Old Mutual Balanced Fund 25 March 25 March 5

7 PERFORMANCE AS At 31 December SCHEME SA NON-EQUITY 1 year % return p.a. 3 years % return p.a. 5 years % return p.a. 7 years % return p.a. Bond Capital Builder Enhanced Income Income Institutional Money Market Interest Plus Matador Defensive Matador Fixed Interest Money Market Real Income SYm metry Defensive SYm metry Fixed Interest SYm metry Money Market SA EQUITY Active Quant Equity Albaraka Balanced Albaraka Equity Balanced Dynamic Floor Financial Services Flexible Gold (14.5) Growth High Yield Opportunity Industrial Investors' Matador Balanced Matador Equity Mining and Resources (3.0) (0.4) RAFI 40 Tracker SA Quoted Property Small Companies Stable Growth SYm metry Balanced SYm metry Cautious SYm metry Equity Top Top Companies Value OFFSHORE NON-EQUITY Global Bond Feeder International Growth UK Money Market Feeder US Dollar Feeder OFFSHORE EQUITY Global Emerging Market Global Equity Global Index All performance figures are based on lump sum investments. Figures exclude initial charges (NAV-NAV prices) and include distributions. Performance figures are only disclosed for funds that have been in existence for more than one year. For comparative purposes against benchmark performance, visit our website at Source - Morningstar 6

8 TOTAL EXPENSE RATIO AS AT 31 December SCHEME % Active Quant Equity - Class A 1.57 Active Quant Equity - Class C 3.07 Albaraka Balanced - Class A 2.38 Albaraka Balanced - Class B Albaraka Equity - Class A 1.80 Balanced - Class A 2.18 Balanced - Class B Balanced - Class B Balanced - Class C 3.59 Balanced - Class R 1.23 Bond - Class B 0.70 Bond - Class B Bond - Class C 2.39 Bond - Class R 0.87 Capital Builder - Class A 1.55 Capital Builder - Class B Capital Builder - Class B Capital Builder - Class B Dividend Income - Class A 3.19 Dividend Income - Class B Dividend Income - Class B Dynamic Floor - Class A 1.73 Dynamic Floor - Class B Dynamic Floor - Class B Dynamic Floor - Class C 3.08 Enhanced Income - Class A 1.14 Enhanced Income - Class B 0.86 Enhanced Income - Class B Enhanced Income - Class C 2.39 Financial Services - Class A 1.43 Financial Services - Class B Financial Services - Class R 1.15 Flexible - Class A 1.72 Flexible - Class B Flexible - Class C 3.15 Flexible - Class R 1.23 Global Bond Feeder - Class A 1.67 Global Bond Feeder - Class C 3.05 Global Emerging Markets - Class A 2.29 Global Emerging Markets - Class B Global Emerging Markets - Class B Global Emerging Markets - Class C 3.25 Global Equity - Class A 2.08 Global Equity - Class B Global Equity - Class C 3.37 Global Equity - Class R 1.23 Global FTSE RAFI All World Index Feeder Fund - Class A 0.99 Global FTSE RAFI All World Index Feeder Fund - Class B Global FTSE RAFI All World Index Feeder Fund - Class B Global Index - Class R 1.60 Gold - Class A 1.73 Gold - Class R 1.16 Growth - Class A 0.97 Growth - Class C 2.39 Growth - Class R 1.25 High Yield Opportunity - Class A 1.42 High Yield Opportunity - Class B 0.96 High Yield Opportunity - Class C 2.56 Income - Class A Income - Class C 2.40 Income - Class R 0.86 Industrial - Class A 1.43 Industrial - Class B SCHEME % Industrial - Class R 1.15 Institutional Money Market Fund B Institutional Money Market Fund B Interest Plus Fund - Class A 0.64 Interest Plus Fund - Class B Interest Plus Fund - Class C 2.23 International Growth - Class A 2.88 International Growth - Class B 2.61 International Growth - Class C 4.31 Investors - Class A 0.90 Investors - Class B Investors - Class C 2.32 Investors - Class R 1.14 Matador Balanced - Class B Matador Balanced - Class C 2.87 Matador Defensive - Class C 3.32 Matador Equity - Class C 2.78 Matador Equity - Class C Matador Fixed Interest - Class C 2.64 Mining and Resources - Class A 1.44 Mining and Resources - Class B Mining and Resources - Class C 2.88 Mining and Resources - Class R 1.16 Money Market - Class A 0.58 Money Market - Class A Money Market - Class B 0.29 Money Market - Class B Money Market - Class B Money Market - Class C 2.12 RAFI 40 Tracker - Class A 0.88 RAFI 40 Tracker - Class B RAFI 40 Tracker - Class B RAFI 40 Tracker - Class C 2.32 Real Income - Class A 1.38 Real Income - Class B 0.92 Real Income - Class B Real Income - Class C 2.58 SA Quoted Property - Class A 1.43 SA Quoted Property - Class B 0.86 SA Quoted Property - Class B SA Quoted Property - Class C 2.86 SA Quoted Property - Class C Small Companies - Class A 1.72 Small Companies - Class B Small Companies - Class R 1.15 Stable Growth - Class A 2.10 Stable Growth - Class B 1.72 Stable Growth - Class B Stable Growth - Class C 3.50 SYm metry Balanced - Class A 1.94 SYm metry Balanced - Class C 2.79 SYm metry Balanced - Class C SYm metry Cautious - Class A 1.43 SYm metry Cautious - Class C 2.47 SYm metry Defensive - Class A 1.84 SYm metry Defensive - Class C 2.98 SYm metry Defensive - Class C SYm metry Equity - Class A 1.57 SYm metry Equity - Class C 2.71 SYm metry Equity - Class C SYm metry Fixed Interest - Class A 1.18 SYm metry Fixed Interest - Class C 2.44 SYm metry Fixed Interest - Class C SYm metry Income Fund 1 - Class B SYm metry Income Fund 2 - Class B SCHEME % SYm metry Inflation Plus 1 - Class B SYm metry Inflation Plus 1 - Class B SYm metry Inflation Plus 2 - Class B SYm metry Inflation Plus 2 - Class B SYm metry Inflation Plus 2 - Class B SYm metry Inflation Plus 3 - Class B SYm metry Inflation Plus 3 - Class B SYm metry Inflation Plus 4 - Class B SYm metry Inflation Plus 4 - Class B SYm metry Inflation Plus 4 - Class B SYm metry Inflation Plus 5 - Class B SYm metry Inflation Plus 5 - Class B SYm metry Inflation Plus 6 - Class B SYm metry Inflation Plus 6 - Class B SYm metry Inflation Plus 6 - Class B SYm metry Inflation Plus 7 - Class B SYm metry Inflation Plus 7 - Class B SYm metry Money Market - Class A 0.60 SYm metry Money Market - Class C 2.02 SYm metry Satellite Equity No.1 - Class B SYm metry Satellite Equity No.1 - Class B SYm metry Satellite Equity No.1 - Class B SYm metry Satellite Equity No.2 - Class B SYm metry Satellite Equity No.2 - Class B SYm metry Satellite Equity No.2 - Class B SYm metry Satellite Equity No.3 - Class B SYm metry Satellite Equity No.3 - Class B SYm metry Satellite Equity No.3 - Class B SYm metry Satellite Equity No.4 - Class B SYm metry Satellite Equity No.4 - Class B Top 40 - Class A 0.72 Top 40 - Class B Top Companies - Class A 0.86 Top Companies - Class B 0.59 Top Companies - Class B Top Companies - Class C 2.29 Top Companies - Class R 1.14 UK Money Market Feeder - Class A 0.70 UK Money Market Feeder - Class B UK Money Market Feeder - Class C 2.49 US Dollar Feeder Fund - Class A 1.63 US Dollar Feeder Fund - Class B Value - Class A 0.86 Value - Class C 2.28 Value - Class R

9 DIRECTORS RESPONSIBILITY STATEMENT The directors of Old Mutual Unit Trust Managers Limited are responsible for the preparation and presentation of the financial statements of each of the collective investment schemes which they manage. Each scheme s financial statements comprise the statement of financial position at 31 December, and the statement of comprehensive income, the statement of changes in net assets unit holders and the statement of cash flows for the period then ended, and the notes to the financial statements, prepared on the basis of accounting described in note 1 and in the manner required by the Trust Deeds and Collective Investment Schemes Control Act of South Africa. The summary of significant accounting policies contained in the notes to the financial statements is applicable to each scheme. The directors responsibility includes: determining that the basis of accounting described in note 1 is an acceptable basis for preparing and presenting the financial statements in the circumstances; designing, implementing and maintaining internal control relevant to the preparation and presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The directors responsibility also includes maintaining adequate accounting records and an effective system of risk management. The directors have made an assessment of each of the schemes ability to continue as going concerns and have no reason to believe that any of the schemes will not be a going concern in the year ahead. The auditor is responsible for reporting on whether each of the financial statements are prepared in accordance with the basis of accounting described in note 1 to the financial statements and in the manner required by the Trust Deeds and Collective Investment Schemes Control Act of South Africa. Approval of the financial statements Each of the financial statements were approved by the directors of Old Mutual Unit Trust Managers Limited on 25 March 2013 and are signed on their behalf by: PG De Beyer Chairman PM Hugo Managing Director 8

10 INDEPENDENT AUDITOR S REPORT To the Directors of Old Mutual Unit Trust Managers Limited We have audited each of the financial statements of the Collective Investment Schemes managed by Old Mutual Unit Trust Managers Limited. These schemes are: Old Mutual Active Quant Equity Fund Old Mutual Albaraka Balanced Fund Old Mutual Albaraka Equity Fund Old Mutual Balanced Fund Old Mutual Bond Fund Old Mutual Capital Builder Fund Old Mutual Dividend Income Fund Old Mutual Dynamic Floor Fund Old Mutual Enhanced Income Fund Old Mutual Financial Services Fund Old Mutual Flexible Fund Old Mutual Global Bond Feeder Fund Old Mutual Global Emerging Markets Fund Old Mutual Global Equity Fund Old Mutual Global FTSE RAFI All World Index Feeder Fund Old Mutual Global Index Fund of Funds Old Mutual Gold Fund Old Mutual Growth Fund Old Mutual High Yield Opportunity Fund Old Mutual Income Fund Old Mutual Industrial Fund Old Mutual Institutional Money Market Fund Old Mutual Interest Plus Fund Old Mutual International Growth Fund of Funds Old Mutual Investors Fund Old Mutual Matador Balanced Fund Old Mutual Matador Defensive Fund of Funds Old Mutual Matador Equity Feeder Fund Old Mutual Matador Fixed Interest Fund of Funds Old Mutual Mining and Resources Fund Old Mutual Money Market Fund Old Mutual RAFI 40 Tracker Fund Old Mutual Real Income Fund Old Mutual SA Quoted Property Fund Old Mutual Small Companies Fund Old Mutual Stable Growth Fund Old Mutual Top 40 Fund Old Mutual Top Companies Fund Old Mutual UK Money Market Feeder Fund Old Mutual US Dollar Feeder Fund Old Mutual Value Fund SYm metry Balanced Fund of Funds SYm metry Cautious Fund of Funds SYm metry Defensive Fund of Funds SYm metry Equity Fund of Funds SYm metry Fixed Interest Fund of Funds SYm metry Income Fund No. 1 SYm metry Income Fund No. 2 SYm metry Inflation Plus Fund No. 1 SYm metry Inflation Plus Fund No. 2 SYm metry Inflation Plus Fund No. 3 SYm metry Inflation Plus Fund No. 4 SYm metry Inflation Plus Fund No. 5 SYm metry Inflation Plus Fund No. 6 SYm metry Inflation Plus Fund No. 7 SYm metry Money Market Fund SYm metry Satellite Equity Fund No. 1 SYm metry Satellite Equity Fund No. 2 SYm metry Satellite Equity Fund No. 3 SYm metry Satellite Equity Fund No. 4 (collectively, the Collective Investment Schemes ). Each scheme s financial statements comprise the statement of financial position at 31 December, and the statement of comprehensive income, the statement of changes in net assets and statement of cash flows for the period then ended, and the notes to the financial statements, as set out on pages 10 to 162. The summary of significant accounting policies contained in the notes to the financial statements is applicable to each scheme. Directors Responsibility for the Financial Statements The directors of Old Mutual Unit Trust Managers Limited are responsible for the preparation and presentation of each of these financial statements on the basis of the accounting policies described in note 1 for regulatory purposes in the manner required by the Trust Deeds and Collective Investment Schemes Control Act of South Africa. This responsibility includes: determining that the basis of accounting described in note 1 is an acceptable basis for preparing and presenting the financial statements in the circumstances and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements for each of the schemes listed above. Opinion In our opinion, for each of the schemes listed above, the financial statements have been prepared, in all material respects, in accordance with the basis of accounting described in note 1 and in the manner required by the Trust Deeds and Collective Investment Schemes Control Act of South Africa. Basis of Accounting Without modifying our opinion, we draw attention to note 1b) to the financial statements which describes the basis of accounting. The financial statements are prepared to assist Old Mutual Unit Trust Managers Limited to meet the requirements of the Financial Services Board ( Circular 3 of 2006). As a result, the financial statements may not be suitable for another purpose. KPMG Inc. Registered Auditor Per KT Hopkins 1 Mediterranean Street Chartered Accountant (SA) Foreshore Registered Auditor Cape Town Director March

11 ACTIVE QUANT EQUITY FUND Statement of comprehensive income NET INVESTMENT INCOME Dividends Interest Income adjustments on creation and cancellation of units 5 (29) (74) Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year prior year under-provision - 7 Performance fees Bank charges 5 11 Custodian fees Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends 8 - TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Local equities and specialist securities Interest and dividends receivable Trade receivables Cash and cash equivalents TOTAL ASSETS LIABILITIES Trade payables 11 - Cancellation payables - capital Cancellation payables - income 2 - Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

12 ACTIVE QUANT EQUITY FUND Statement of changes in net assets Capital Income Balance at 31 December (6) Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (64 090) - Net cancellation of units 5 (4 258) - (4 258) Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (1 450) - Net cancellation of units 5 (21 659) - (21 659) Balance at 31 December (6) Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Dividend income (8 819) (7 179) Interest income (763) (476) Income adjustments on creation and cancellation of units Net fair value gains, net of transaction costs (64 090) (1 450) Operating loss before working capital changes (4 014) (2 737) Working capital changes Increase/(decrease) in accrued expenses 270 (123) Cash utilised by operations (3 744) (2 860) Interest received Dividends received (net of withholding tax) Net cash inflow from investment activities Net sales of securities Net cash outflow from financing activities (10 209) (25 176) Creation of units Cancellations of units (24 590) (31 449) Cash distributed to (6 202) (3 443) Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

13 Albaraka Balanced Fund Statement of comprehensive income NET INVESTMENT INCOME Dividends Interest Income adjustments on creation and cancellation of units Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year Bank charges 28 - Non permissible income 14 - Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Unit trusts local Local equities Interest receivable Creation receivables - capital Creation receivables - income 1 - Trade receivables 2 - Cash and cash equivalents TOTAL ASSETS LIABILITIES Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

14 Albaraka Balanced Fund Statement of changes in net assets Capital Income Balance at 31 December (52) Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (4 758) - Net creation of units Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable 202 (202) - Net creation of units Balance at 31 December (52) Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Dividend income (934) (108) Interest income (288) (79) Income adjustments on creation and cancellation of units (218) (18) Net fair value gains, net of transaction costs (4 758) (202) Operating loss before working capital changes (934) (191) Working capital changes Increase in accrued expenses Cash utilised by operations (718) (118) Interest received Dividends received (net of withholding tax) Net cash outflow from investment activities (40 761) (5 795) Net purchases of securities (40 761) (5 795) Net cash inflow from financing activities Creation of units Cancellations of units (3 132) (702) Cash distributed to (333) (2) Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

15 Albaraka EQUITY Fund Statement of comprehensive income NET INVESTMENT INCOME Dividends Income adjustments on creation and cancellation of units 5 77 (123) Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year Bank charges 26 1 Non permissible income Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends 37 - TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Unit trusts foreign Local equities Interest receivable Creation receivables - capital Creation receivables - income 1 - Trade receivables Cash and cash equivalents TOTAL ASSETS LIABILITIES Trade payables Cancellation payables - capital Cancellation payables - income - 1 Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

16 Albaraka EQUITY Fund Statement of changes in net assets Capital Income Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable ( ) - Net creation of units Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (61 527) - Net cancellation of units 5 (51 425) - (51 425) Balance at 31 December Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Dividend income (44 655) (33 061) Income adjustments on creation and cancellation of units (77) 123 Net fair value gains, net of transaction costs ( ) (61 527) Operating loss before working capital changes (23 645) (21 643) Working capital changes Increase/(decrease) in accrued expenses 950 (1 148) Cash utilised by operations (22 695) (22 791) Dividends received (net of withholding tax) Net cash inflow from investment activities Net sales of securities Net cash inflow/(outflow) from financing activities (59 830) Creation of units Cancellations of units (66 284) ( ) Cash distributed to (15 108) (8 470) Net increase/(decrease) in cash and cash equivalents (11 954) Cash and cash equivalents at the beginning of the year Exchange rate adjustments on cash balances Cash and cash equivalents at the end of the year

17 BALANCED Fund Statement of comprehensive income NET INVESTMENT INCOME Dividends Interest Income adjustments on creation and cancellation of units (2 032) Foreign exchange gains on dividend and interest income - 2 Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year prior year under-provision - 7 Performance fees Bank charges Custodian fees Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Bonds Unit trusts local Unit trusts foreign Local equities and specialist securities Foreign equities Interest and dividends receivable Creation receivables - capital Creation receivables - income - 24 Trade receivables Money market instruments Cash and cash equivalents TOTAL ASSETS LIABILITIES Cancellation payables - capital Cancellation payables - income 25 2 Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

18 BALANCED Fund Statement of changes in net assets Capital Income Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable ( ) - Net creation of units Capital rectification (3 407) Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (95 080) - Net cancellation of units 5 (83 072) - (83 072) Balance at 31 December Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Dividend income ( ) (42 939) Interest income (99 573) (40 890) Income adjustments on creation and cancellation of units (17 814) Net fair value gains, net of transaction costs ( ) (95 080) Foreign exchange gains on dividend and interest income - (2) Operating loss before working capital changes (69 156) (41 446) Working capital changes Increase/(decrease) in accrued expenses (1 007) Cash utilised by operations (63 279) (42 453) Interest received Dividends received (net of withholding tax) Foreign exchange gains on dividend and interest income - 2 Net cash outflow from investment activities ( ) (50 669) Net purchases of securities ( ) (50 669) Net cash inflow/(outflow) from financing activities ( ) Creation of units Cancellations of units ( ) ( ) Cash distributed to ( ) (37 657) Net increase/(decrease) in cash and cash equivalents ( ) Cash and cash equivalents at the beginning of the year Exchange rate adjustments on cash balances (2 302) Cash and cash equivalents at the end of the year

19 BOND Fund Statement of comprehensive income NET INVESTMENT INCOME Interest Income adjustments on creation and cancellation of units 5 (845) (1 836) Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year prior year under-provision - 7 Bank charges 4 4 Custodian fees Management company's service charge Transaction costs 3 4 Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Bonds Interest receivable Creation receivables - capital 10 - Cash and cash equivalents TOTAL ASSETS LIABILITIES Cancellation payables - capital Cancellation payables - income 6 4 Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

20 BOND Fund Statement of changes in net assets Capital Income Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (45 870) - Net cancellation of units 5 (23 104) - (23 104) Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (3 127) - Net cancellation of units 5 (42 021) - (42 021) Balance at 31 December Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Interest income (46 595) (51 477) Income adjustments on creation and cancellation of units Net fair value gains, net of transaction costs (45 870) (3 127) Operating loss before working capital changes (3 971) (4 273) Working capital changes Increase/(decrease) in accrued expenses 35 (28) Cash utilised by operations (3 936) (4 301) Interest received Net cash inflow from investment activities Net sales of securities Net cash outflow from financing activities (66 566) (91 366) Creation of units Cancellations of units ( ) ( ) Cash distributed to (42 668) (47 526) Net increase/(decrease) in cash and cash equivalents (12 100) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

21 CAPITAL BUILDER Fund Statement of comprehensive income NET INVESTMENT INCOME Dividends Interest Income adjustments on creation and cancellation of units Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year Performance fees Bank charges 5 17 Custodian fees Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends 92 - TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Statement of financial position at 31 December Bonds Local equities Interest receivable Creation receivables - capital 7 - Money market instruments Cash and cash equivalents TOTAL ASSETS LIABILITIES Trade payables Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

22 CAPITAL BUILDER Fund Statement of changes in net assets Capital Income Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (74 281) - Net creation of units Balance at 31 December Balance at 31 December Total comprehensive income Transfer of net fair value gains, net of transaction costs, not distributable (2 880) - Net creation of units Balance at 31 December Total Statement of cash flows Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Dividend income (26 383) (16 987) Interest income (37 033) (20 830) Income adjustments on creation and cancellation of units (958) (2 064) Net fair value gains, net of transaction costs (74 281) (2 880) Operating loss before working capital changes (2 524) (2 113) Working capital changes Increase in accrued expenses Cash utilised by operations (2 430) (2 100) Interest received Dividends received (net of withholding tax) Net cash outflow from investment activities ( ) ( ) Net purchases of securities ( ) ( ) Net cash inflow from financing activities Creation of units Cancellations of units (55 830) ( ) Cash distributed to (56 032) (30 300) Net (decrease)/increase in cash and cash equivalents ( ) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

23 Dividend Income Fund Statement of comprehensive income NET INVESTMENT INCOME Interest OPERATING EXPENSES BEFORE FINANCE COSTS Management company's service charge 9 9 Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS - - ASSETS Statement of financial position at 31 December Unit trusts local Interest and dividends receivable 2 2 Cash and cash equivalents TOTAL ASSETS LIABILITIES Accrued expenses 2 1 Distributions payable 1 2 TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 3 3 NET ASSETS ATTRIBUTABLE TO UNITHOLDERS

24 Dividend Income Fund Statement of changes in net assets Capital Income Balance at 31 December Total comprehensive income Balance at 31 December Balance at 31 December Total comprehensive income Balance at 31 December Total Statement of cash flows 3 months Net cash inflow from operating activities Net income from operations before finance costs Adjustments for: Interest income (46) (56) Operating loss before working capital changes (30) (30) Working capital changes Increase/(decrease) in accrued expenses 1 (1) Cash utilised by operations (29) (31) Interest received Net cash inflow from investment activities Net sales of securities Net cash outflow from financing activities (17) (27) Cash distributed to (17) (27) Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

25 DYNAMIC FLOOR FUND Statement of comprehensive income NET INVESTMENT INCOME Dividends Interest Income adjustments on creation and cancellation of units 5 (2 321) (1 973) Foreign exchange gains on dividend and interest income Net fair value gains on financial instruments OPERATING EXPENSES BEFORE FINANCE COSTS Audit fee - current year Performance fees Bank charges 8 12 Custodian fees Management company's service charge Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE FINANCE COSTS TOTAL FINANCE COSTS Distributions Withholding tax on foreign dividends TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ASSETS Bonds Local equities Foreign equities Interest and dividends receivable Creation receivables - capital - 50 Creation receivables - income - 1 Trade receivables Money market instruments Cash and cash equivalents TOTAL ASSETS LIABILITIES Statement of financial position at 31 December Trade payables Cancellation payables - capital Cancellation payables - income Accrued expenses Distributions payable TOTAL LIABILITIES, EXCLUDING NET ASSETS ATTRIBUTABLE TO UNITHOLDERS NET ASSETS ATTRIBUTABLE TO UNITHOLDERS