Standard Bank International Funds Limited July 2016

Transcription

1 Standard Bank International Funds Limited July 2016

2 Standard Bank International Funds Limited Standard Bank International Funds Limited (the Fund ) is a registered Fund of Funds incorporated in Jersey that offers a range of international investment strategies. The Multi Manager Global Equity and Multi Manager Global Balanced classes of the Fund have been approved for distribution in South Africa by the Financial Services Board. The Fund benefits from a highly qualified Asset Management team with over 25 investment professionals based in multiple global locations and assets under management in excess of US$4billion. A clear investment philosophy guides all investment decisions, specifically the belief that superior long-term investment returns are best achieved by investing in long-term structural growth opportunities identified by fundamental research. The heart of the investment process is the identification and continuous challenging of the highest quality opportunities to suit prevailing market conditions. A unique and durable competitive advantage, as well as considering the relative and absolute valuation is key. This should lead to sustainable growth and long-term wealth creation for patient investors. Asset allocation is the prime driver of investment performance and for this reason the investment strategy group constantly endeavor to get this aspect right. The focus on relative valuation and the long-term prospects for the various asset classes allows for a flexible and dynamic allocation policy. Risk management is also a fundamental aspect of this process, with ongoing assessments of the risks taken and whether clients can be rewarded for taking them. The Investment Team A dedicated team of highly experienced investment professionals are focused on evaluation, selection and blending of funds from the global universe. The team has over 50 years of combined experience in managing fund of funds assets and has extensive global knowledge and understanding of the best investment expertise available. Multi Manager Approach The Fund provides investors with a diversified exposure to global markets via an actively managed portfolio of the world s leading fund managers. The underlying managers are chosen for their expertise and investment track record in a specific area and then carefully blended with other specialist funds with the objective of providing long term returns and smoothing market volatility. The appropriate number of underlying funds will vary from strategy to strategy, however the goal is diversification. Based on the premise that no single investment manager or style performs well in all market conditions, the aim is to tilt the portfolio towards the better performing areas of the market at the appropriate time. Each class/strategy is monitored continuously, with daily exposure reports giving a look through to the underlying exposures, allowing us to understand the precise investment risks we are taking. Fund Selection Investing in third party funds, an investment model known as open architecture or best of breed, opens up an initial universe of in excess of 50,000 funds. It is crucial to have access to the whole market as the best blend of managers will be derived from a wide range of fund providers. However, where the Fund differs from most open architecture models is that while being agnostic to some degree on the style adopted by a manager, the Fund always seeks to identify managers with similar investment beliefs to the guiding philosophy. This will generally lead to a bias to stock-picking strategies, with longer time horizons, high active share and high quality characteristics, which can create significant deviations from the benchmark indices. The team, dedicated to third party fund selection, has built a robust and successful research process culminating in the selection of funds covering key asset classes, investment themes and sectors. Leveraging off long-standing relationships with well over 100 leading fund providers, the extensive market knowledge is combined with detailed proprietary qualitative research and quantitative tools to select managers best placed to deliver long-term performance. The team is based in multiple jurisdictions, to ensure close contact is maintained with a chosen manager and abreast of ever change in industry and regulatory dynamics. The team also benefits from the extensive expertise of the internal asset allocation committees and the global reach of the Standard Bank Group. / 01

3 Fund Manager Commentary Multi Manager Global Equity Fund Equity market volatility remained elevated in the second quarter, although for most of the pre-brexit period the tone was more encouraging. In fact, up to the 23rd June, in US dollar terms, the UK market was one of the strongest performers, with the FTSE All Share rising 7.4%. It seemed that markets might be stabilising and investors were beginning to focus on company fundamentals rather than political and economic uncertainty. That all changed on June 24th when the shock Brexit result was announced and investors suddenly had to deal with the complex implications for global financial markets. The Global Equity Fund suffered a period of severe underperformance in the last week of the month as markets reacted violently to the unexpected result. Not surprisingly, sterling depreciated sharply in the immediate aftermath and consequently UK equities had very mixed fortunes, depending on the currency and geographical source of revenues. The FTSE 100 actually gained in June, partially due to the flight to quality behaviour, but mainly down to overseas earnings, which are reported to be over 75% of revenues. In stark contrast the UK mid and small cap indices, where only around 50% of revenues are derived overseas, sold off aggressively and closed the quarter over 10% in arrears of the large cap indices. Our preference to invest in mid and small cap companies was a major headwind against this backdrop and has been the dominant driver of short term underperformance, although our regional managers outside of the UK also struggled in the post-brexit flight to quality period. The only significant positive contributions in the quarter came from our thematic investments in Healthcare, Technology and Energy. After such a challenging period of relative performance, it is important to focus on the long term drivers of our investment strategy and understand where the fundamentals have changed due to Brexit and what the implications are for portfolio strategy. The outlook for the UK economy has certainly changed, at the very least there will be a period of heightened uncertainty as EU trade agreements, legislation and regulations are renegotiated. This uncertainty is likely to result in reduced confidence and spending by businesses and consumers. In consequence, growth is highly likely to be lower in the next two years than previously expected. At this stage, we do not believe Brexit is a globally systemic event. The UK economy is less than 4% of global GDP so even a very sharp fall in UK growth has no material impact globally. However, the implications for the remainder of the EU are uncertain and the most obvious potential ramification is that the UK s exit could trigger the reappraisal of EU membership by other countries. The risk is that the whole EU project unwinds and while this is more than the tail risk it was prior to Brexit, it still seems unlikely given the strength of the political will underlying it. Nevertheless, the heightened uncertainty and the negative fallout from Brexit suggests that growth in Europe could also remain sluggish over the longer term as much needed structural and labour market reforms may be deferred. Fund Positioning Sterling Share Class Geographic Allocations US Dollar Share Class Geographic Allocations 50% 40% Current Fund Exposure Benchmark 60% 50% Current Fund Exposure Benchmark 30% 20% 40% 30% 20% 10% 10% 0% North America Europe UK Japan Asia Ex-Japan Emerging Markets Cash 0% North America Europe UK Japan Asia Emerging Ex-Japan Markets Cash All data as at 30th June 2016 Activity in the period The Global Equity Fund has been underweight UK equities for some time on a relative value basis, however this has now been reduced further towards the minimum permissible within our permitted ranges. Additionally, the outlook for domestically focussed UK companies has deteriorated, perhaps to a significant degree in the short to medium term. The mid cap area of the market looks vulnerable as valuations in some cases are on the rich side, and we have therefore sold the Old Mutual UK Select Mid Cap Fund and re-invested in the Investec UK Alpha Fund that will seek to trade around the prevailing macro environment. We are also looking for opportunities that have been created by the indiscriminate selling. The key over-weights continue to be thematic, with Healthcare, Technology and Asian Consumption the main holdings, with smaller allocations to Global Energy and Listed Infrastructure. We also have several US, Asian and Emerging markets funds under consideration, where the domestic growth backdrop remains robust and should be fairly well insulated from Brexit concerns. During the quarter we invested in the Janus US Venture fund, which follows an unconstrained US equity strategy focussing on high quality mid and small cap companies. The European equity exposure has also been reduced from overweight to neutral given the negative ramifications for European equities. / 02

4 TM Multi Manager Global Equity Fund (USD) Fund Investment Objectives and Style The Multi Manager Global Equity Fund is designed to provide long-term capital appreciation through investment solely in equity-orientated funds. The manager will look to maintain a fully invested strategy and maintain a bias towards investments denominated in US Dollars broadly in line with the reference benchmark index. A minimum exposure of 40% to larger capitalised shares means that the manager can position the fund significantly away from that of the peer group or benchmark in order to optimise performance. It is therefore suited to investors who are willing to accept the higher level of volatility associated with a fund of this flexibility. Top Holdings United Kingdom JO Hambro UK Dynamic Fund 1.86% Aberforth UK Smaller Companies Fund 1.72% United States Legg Mason Royce Smaller Companies Fund 4.53% Oyster US Selection Fund 4.27% Europe Threadneedle European Select Fund 3.50% FP Crux European Special Situations Fund 3.27% Japan Baillie Gifford Japanese Smaller Companies Fund 3.68% MAN GLG Japan Core Alpha Fund 3.33% Asia Hermes Emerging Asia Equity Fund 5.56% Emerging Markets Somerset Emerging Markets Dividend Growth Fund 3.72% Fund Facts Portfolio Manager: Fund size: Dealing: Cut off time: Min invest: Min top up: Dividend policy: David Jardine $55.21m Daily 2:30pm (Jersey Time) previous business day US$2,500 US$1,000 Roll Up Largest yearly gain:* 45.74% Largest yearly loss:* % *Since Launch (A Class) Manager s fee: Custodian s fee: A Class: 1.50% per annum B Class: 1.20% per annum up to 0.035% per annum Upfront fee: up to 5.5% Fund Costs Fund Class TER TC TIC A 2.70% 0.01% 2.71% B 2.41% 0.01% 2.42% A Class YTD 1 Year ** 3 Years ** 5 Years ** 10 Years Fund Return -4.41% % 2.61% 3.35% 2.54% Benchmark Return* 1.24% -3.66% 6.12% 5.41% 4.02% Somerset Emerging Markets Smaller Companies Fund 3.47% * FTSE All World TR Net Number Of Funds Held 28 Market Capitalisation 31st August 2008 Benchmark changed from Lipper Global Equity Indices to FTSE All World TR Net ** Figures are annualised and net of fees Large 54.7% Mid 28.7% Small 11.9% Micro 2.9% Cash 1.7% Risk Profile Lower risk reduced potential Risk Higher risk increased potential reward / 03 Monthly Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % 0.79% 7.09% 1.65% -0.27% -3.81% -4.41% % 5.60% -0.59% 3.05% 0.49% -2.37% -0.50% -6.39% -5.30% 7.87% -0.35% -2.03% -2.80% % 4.65% -1.96% -1.13% 2.20% 2.24% -1.10% 0.77% -3.13% -0.70% 1.58% -1.13% -0.17% % 0.00% 2.30% 1.74% 1.51% -2.68% 4.28% -1.66% 5.76% 2.82% 2.10% 2.33% 25.85% % 5.76% 0.91% -1.01% -7.61% -0.25% 4.07% 1.66% 3.38% -1.01% 1.37% 2.13% 15.80%

5 TM Multi Manager Global Equity Fund (GBP) Fund Investment Objectives and Style The Multi Manager Global Equity Fund is designed to provide long-term capital appreciation through investment solely in equity-orientated funds. The manager will look to maintain a fully invested strategy and maintain a bias towards investments denominated in Sterling broadly in line with the reference benchmark index. A minimum exposure of 40% to larger capitalised shares means that the manager can position the fund significantly away from that of the peer group or benchmark in order to optimise performance. It is therefore suited to investors who are willing to accept the higher level of volatility associated with a fund of this flexibility. Top Holdings United Kingdom Threadneedle UK Fund 5.00% Unicorn UK Smaller Companies Fund 4.49% United States Legg Mason Royce Smaller Companies Fund 3.51% Iridian US Equity Fund 3.42% Europe Threadneedle European Select Fund 2.55% FP Crux European Special Situations Fund 2.29% Japan Baillie Gifford Japanese Smaller Companies Fund 2.48% JO Hambro Japan Fund 2.29% Asia Hermes Emerging Asia Equity Fund 2.74% Emerging Markets Somerset Emerging Markets Dividend Growth Fund 2.19% Fund Facts Portfolio Manager: Fund size: Dealing: Cut off time: David Jardine 66.36m Daily 2:30pm (Jersey Time) previous business day Min invest: 1,500 Min top up: 750 Dividend policy: Roll Up Largest yearly gain:* 40.95% Largest yearly loss:* % *Since Launch (A Class) Manager s fee: Custodian s fee: A Class: 1.50% per annum B Class: 1.20% per annum up to 0.035% per annum Upfront fee: up to 5.5% Fund Costs Fund Class TER TC TIC A 2.65% 0.01% 2.66% B 2.38% 0.01% 2.39 % A Class YTD 1 Year ** 3 ** 5 ** 10 Years Years Years Fund Return 0.19% -0.69% 6.34% 7.26% 5.65% Benchmark Return* 9.54% 9.44% 8.62% 7.98% 6.59% Somerset Emerging Markets Smaller Companies Fund 1.84% * FTSE All World TR Net / FTSE UK TR Net (60% / 40%) Number Of Funds Held 29 Market Capitalisation 31st August 2008 Benchmark changed from Lipper Global Equity Indices to FTSE All World TR Net / FTSE UK TR Net (60% / 40%) ** Figures are annualised and net of fees Large 47.7% Mid 25.3% Small 17.4% Micro 3.5% Cash 6.1% Risk Profile Lower risk reduced potential Risk Higher risk increased potential reward Monthly Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % 1.90% 3.39% 0.19% 0.64% 0.38% 0.19% % 3.23% 2.36% 0.87% 2.47% -4.46% 0.57% -4.21% -3.34% 4.75% 1.62% 0.00% 5.37% % 3.41% -1.82% -2.54% 1.83% -0.35% 0.07% 2.22% -1.49% 0.00% 2.96% -0.47% 2.90% % 4.35% 2.12% -0.15% 3.70% -2.68% 5.20% -2.11% 1.26% 3.74% 0.35% 1.97% 26.80% % 5.13% 0.45% -1.89% -4.40% 0.38% 3.35% 1.30% 1.83% 0.36% 1.43% 0.62% 13.41% / 04

6 Fund Manager Commentary Multi Manager Global Balanced Fund Following the exceptional volatility at the beginning of the year, financial markets continued to fluctuate for most of the second quarter although global equity markets edged higher with better economic data and firmer commodity prices calming investor sentiment. However, following the surprise Brexit vote on June 23rd, markets returned to panic mode and most of the significant moves in markets came in the last week of the quarter. The Global Balanced Fund underperformed during the quarter, mainly post Brexit, despite our neutral weighting to risk assets throughout the period. From an asset allocation perspective, the main drag was the lack of exposure to fixed income assets as bond yields continued to drift lower to new record lows. Additionally, within the equity allocation, the US and UK regional funds underperformed for the quarter. In the UK this was largely as a consequence of the Brexit result, where the larger exposure to domestic UK revenues led to severe underperformance in UK mid and small cap companies where our managers had been overweight. This led to the significant deviation from the benchmark in the sterling share class. Our US managers also continue to struggle, here it is difficult to pin-point exactly why investing in US equities is proving so difficult, but economic and political factors and momentum seem to be driving markets more than company fundamentals. The latest round of US earnings have been somewhat mixed, with the positive spin being that the majority have beaten analysts estimates. On a more positive note, our thematic holdings in Global REITs, Technology, Healthcare and Energy all had a better quarter and despite the challenging market environment, outside of the UK the feedback from our managers is mostly encouraging with the underlying businesses in portfolios performing better than the share prices, suggesting that there is significant outperformance potential. Fund Positioning Sterling Share Class Investment Themes US Dollar Share Class Investment Themes 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Investment Grade Bonds UK Equity Global Equity / Growth Cash Global Equity / Income Global Equity / Chinese Consumer Global Equity / Healthcare Global Equity / Technology Japan Equity Global Equity / Property Global Equity / Infrastucture Global Equity / Energy 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Investment Grade Bonds US Equity Global Equity / Growth Cash Global Equity / Income Global Equity / Healthcare Global Equity / Technology Global Equity / Chinese Consumer Japan Equity Global Equity / Property Global Equity / Infrastucture Global Equity / Energy All data as at 30th June 2016 / 05 Activity in the period After such a challenging period of relative performance, it is important to focus on the long term drivers of our investment strategy and understand where the fundamentals have changed due to Brexit and what the implications are for portfolio strategy. The outlook for the UK economy has certainly deteriorated and growth is highly likely to be lower in the next two years than previously expected. However, at this stage, we do not believe Brexit is a globally systemic event. There are implications for the remainder of the EU and the heightened uncertainty and the negative fallout from Brexit suggests that growth in Europe could also remain sluggish over the longer term as much needed structural and labour market reforms may be deferred. The only change we have made in the immediate aftermath of Brexit has been to reduce our exposure to UK mid caps by switching from the SLI UK Equity Unconstrained Fund to the Investec UK Alpha Fund. For the time being, we have maintained our neutral weighting to equites and our short duration fixed income policy where in our opinion the small pick-up in yield on offer in long dated bonds does not justify the risk of capital loss which will occur as and when yields drift higher. We are also looking for opportunities that have been created by the indiscriminate selling. The key over-weights continue to be thematic, with Healthcare, Technology and Asian Consumption the main holdings, with smaller allocations to Global Energy and Listed Infrastructure. We also have several US, Asian and emerging markets funds under consideration, where the domestic growth backdrop remains robust and should be fairly well insulated from Brexit concerns.

7 Multi Manager Global Balanced Fund (USD) Fund Investment Objectives and Style The Multi Manager Global Balanced Fund aims to provide long-term capital growth through investing in a diverse range of asset classes including international, regional and thematic equity funds together with fixed income funds, exchange traded funds and cash. The diverse nature of the asset classes has historically resulted in a moderate level of volatility, although given the potential exposure ranges to equity as an asset class, the Fund is suitable only for investors with a longer term investment horizon, and who are prepared to tolerate the risk of shorter term loss. The manager will at all times maintain a bias towards investments denominated in US Dollars broadly in line with the reference benchmark index. Top Holdings Fixed Income Fund Facts Portfolio Manager: David Jardine Fund size: $10.79m Dealing: Daily Cut off time: 2:30pm (Jersey Time) previous business day Min invest: US$2,500 Min top up: US$1,000 Dividend policy: Roll Up Largest yearly gain:* 14.08% Largest yearly loss:* % *Since 14/8/2012 (A Class) *Month end price and data for information and valuation purposes only JP Morgan US Dollar Liquidity Fund 13.73% Smith & Williamson Short Dated Corporate Bond Fund 13.69% North American Equity Manager s fee: Custodian s fee: A Class: 1.50% per annum B Class: 1.20% per annum up to 0.035% per annum Vulcan Value Equity Fund 3.14% Upfront fee: up to 5.5% Oyster US Selection Fund 2.58% Global Equity GAM Global Diversified Fund 2.88% M&G Global Dividend Fund 2.77% Thematic Equity Polar Healthcare Opportunities Fund 3.10% Fund Costs Fund Class TER TC TIC A 2.56% 0.00% 2.56% B 2.08% 0.00% 2.08% GAM Star Technology Fund 3.02% Other USD Cash 7.12% A Class YTD 1 ** 3 ** 5 ** 10 Year Years Years Years Number Of Funds Held 23 Asset Allocation Weighting Equity 51.0% Fixed Income 41.9% Cash 7.1% Fund Return -2.48% -7.71% 1.37% n/a n/a Benchmark Return * 2.87% 1.49% 5.37% 5.35% 4.88% * FTSE All World TR Net 30.00% FTSE USA TR Net 20.00% Bloomberg/EFFAS Bond Indices US Govt. 1-10yr 50.00% ** figures are annualised and net of fees Risk Profile Risk Flexible Asset Allocation 30% - 70% Equities 30% - 70% Bonds and Cash Lower risk reduced potential Higher risk increased potential reward Monthly Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % 1.23% 3.54% 0.90% -0.54% -1.08% -2.48% % 3.52% -0.75% 1.84% 0.16% -2.13% -0.17% -4.36% -3.95% 5.66% -0.52% -1.82% -4.16% % 3.50% -0.85% -0.34% 1.80% 1.51% -0.58% 0.83% -2.64% -0.25% 1.28% -0.92% 1.73% % -0.38% 1.14% 1.70% 0.93% -2.85% 2.84% -1.38% 3.73% 2.34% 0.79% 0.96% 13.52% % 1.69% -0.88% 0.79% 0.10% n/a / 06

8 Multi Manager Global Balanced Fund (GBP) Fund Investment Objectives and Style The Multi Manager Global Balanced Fund aims to provide long-term capital growth through investing in a diverse range of asset classes including international, regional and thematic equity funds together with fixed income funds, exchange traded funds and cash. The diverse nature of the asset classes has historically resulted in a moderate level of volatility, although given the potential exposure ranges to equity as an asset class, the Fund is suitable only for investors with a longer term investment horizon, and who are prepared to tolerate the risk of shorter term loss. The manager will at all times maintain a bias towards investments denominated in Sterling broadly in line with the reference benchmark index. Top Holdings Fixed Income Fund Facts Portfolio Manager: David Jardine Fund size: 8.94m Dealing: Daily Cut off time: 2:30pm (Jersey Time) previous business day Min invest: 1,500 Min top up: 750 Dividend policy: Roll Up Largest yearly gain:* 11.61% Largest yearly loss:* -5.22% *Since 14/8/2012 (A Class) *Month end price and data for information and valuation purposes only Smith & Williamson Short Dated Corporate Bond Fund 13.72% JP Morgan Sterling Liquidity Fund 13.55% United Kingdom Equity Manager s fee: Manager s fee: Custodian s fee: A Class: 1.50% per annum B Class: 1.20% per annum up to 0.035% per annum Threadneedle UK Fund 2.97% Upfront fee: up to 5.5% JO Hambro UK Dynamic Fund 2.97% Global Equity GAM Global Diversified Fund 2.99% M&G Global Dividend Fund 2.95% Thematic Equity Fidelity China Consumer Fund 3.36% Fund Costs Fund Class TER TC TIC A 2.49% 0.01% 2.50% B 2.06% 0.01% 2.07% Polar Healthcare Opportunities Fund 3.34% Other GBP Cash 5.76% A Class YTD 1 ** 3 ** 5 ** 10 Year Years Years Years Number Of Funds Held 23 Asset Allocation Weighting Equity 52.9% Fixed Income 41.4% Cash 5.7% Fund Return 0.43% -0.59% 3.27% n/a n/a Benchmark Return* 7.31% 7.93% 6.24% 6.04% 6.00% * FTSE All World TR Net 30.00% FTSE UK TR Net 20.00% Bloomberg/EFFAS Bond Indices UK Govt. 1-10yr 50.00% ** figures are annualised and net of fees Risk Profile Risk Flexible Asset Allocation 30% - 70% Equities 30% - 70% Bonds and Cash Lower risk reduced potential Higher risk increased potential reward / 07 Monthly Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % 1.51% 1.40% 0.35% 0.00% 1.03% 0.43% % 1.54% 1.60% 0.25% 1.41% -3.67% 0.42% -2.87% -2.34% 3.38% 0.77% -0.26% 2.10% % 2.62% -1.06% -1.25% 1.53% -0.53% 0.09% 1.60% -1.32% 0.09% 2.31% -0.61% 2.97% % 2.88% 0.75% 0.19% 1.94% -3.18% 3.38% -2.36% 0.46% 3.15% -0.72% 0.45% 10.87% % 0.30% -0.20% 0.80% -0.40% n/a

9 Contact Information Standard Bank Offshore Services Gauteng Erik Olwagen tel: / erik.olwagen@standardbank.com Eastern Cape & KZN Peter McCulloch tel: / peter.mcculloch@standardbank.com Western & Southern Cape Fiona du Toit tel: / fiona.dutoit@standardbank.com Standard Bank International Investments Limited Standard Bank House / La Motte Street / St Helier / Jersey / JE2 4SZ Important information Investment in the shares of open-ended investment companies is generally a medium to long-term investment. The value of shares may go down as well as up and investors may get back less cash than originally invested. Past performance figures quoted refer to the past, and past performance is not a reliable indicator of future results. The investment performance is for illustrative purposes only and is calculated by taking the actual initial fees and all ongoing fees into account for the amount shown. Income is reinvested on the reinvestment date. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. The funds can engage in borrowing. The shares of Standard Bank International Funds Limited are traded at ruling prices (i.e. the last recorded sales price) and are priced daily using the forward pricing method. The price of the fund is available from the manager on request or via Bloomberg or Morningstar. Details of fees and charges and maximum commissions are available on request from STANLIB Fund Managers Jersey Limited, the Manager, and are fully disclosed in the fund prospectus. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. Standard Bank International Funds Limited is a fund of funds collective investment scheme, which only invests in other collective investment schemes, which levy their own charges, which could result in a higher fee structure for the fund of funds. Commission and incentives may be paid and if so, are included in the overall costs. Figures quoted are from STANLIB Fund Managers Jersey Limited for the current month for a lump sum investment using NAV prices, which exclude initial fees. Standard Bank International Funds Limited is an accumulation fund and does not distribute income. is quoted in Sterling and US Dollar terms. Please refer to the prospectus of this scheme for more details, a copy of which is available on request from the Manager, the registered office of which is Standard Bank House, La Motte Street, St Helier, Jersey JE2 4SZ, Channel Islands. Other than the fund-specific data contained in this document, the information provided has been compiled from a number of freely available market sources that are believed to be reliable. We make no warranty, express or implied, as to the accuracy, correctness or completeness of the general market information contained herein. Standard Bank International Investments Limited, Standard Bank Jersey Limited, Standard Bank International Funds Limited, STANLIB Fund Managers Jersey Limited and Capita Trust Company (Jersey) Limited are regulated by the Jersey Financial Services Commission. Standard Bank International Investments Limited and Standard Bank Jersey Limited are wholly owned subsidiaries of Standard Bank Offshore Group Limited, a company incorporated in Jersey. Standard Bank Offshore Group Limited is a wholly owned subsidiary of Standard Bank Group Limited. STANLIB Fund Managers Jersey Limited is wholly owned by STANLIB Asset Management Limited which is a wholly owned subsidiary of STANLIB Limited, is a subsidiary of Liberty Holdings Limited which in turn is a subsidiary of Standard Bank Group Limited. Standard Bank Group Limited has its registered office at 9th Floor, Standard Bank Centre, 5 Simmonds Street, Johannesburg 2001, Republic of South Africa. The fund Promoter is Standard Bank Jersey Limited. The shield and Standard Bank logo is a registered trademark of the Standard Bank Group Limited, of which Standard Bank Jersey Limited, Standard Bank International Investments Limited and Liberty Holdings Limited are part. A representative agreement exists between STANLIB Collective Investments Limited and STANLIB Fund Managers Jersey Limited. This does not constitute an invitation to buy or the solicitation of an offer to sell securities or to accept deposits or to provide any other products or services in any jurisdiction, to any person to whom it is unlawful to make such an offer or solicitation, nor should it be construed to constitute any investment advice. Legislation or regulations in jurisdictions relevant to you may prohibit you from entering into certain transactions with us and we strongly recommend that you contact your financial or legal adviser in this regard. It is your responsibility for informing yourself about and complying with such restrictions. This document is provided to you for your information only and is not an invitation or inducement to invest in the fund to which it relates. This fund is not generally targeted at the investing public and will only be suitable for a small number of pre-approved retail investors. If you are in any doubt as to whether this fund is suitable for you, please consult an appropriately qualified financial advisor. Source: FTSE International Limited ( FTSE ) FTSE. FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and / or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Annualised figures are figures expressed in yearly terms, even though the variable does not directly apply to a year. Cumulative figures are figures expressed fully by the accumulation of successive additions. Important Notice for EU and UK Investors: this document has not been approved for circulation to the general public in the European Union and does not constitute a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 (FSMA). UK residents should be aware that the protections provided to investors by the UK regulatory system established under FSMA do not apply to any investment services or products provided by Standard Bank Group Limited or any of its subsidiaries. In particular, investors will not be entitled to compensation from the Financial Services Compensation Scheme, nor will they be entitled to the benefits provided by the Financial Ombudsman Service or other protections to customers under FSMA. Furthermore, UK residents should be aware that the fund to which this document relates is not a UCITS fund and is not recognised under sections 270 or 272 of FSMA. South African Residents - Disclaimer and confidentiality note: Standard Bank Offshore Services (RSA), operates under the license of The Standard Bank of South Africa Limited ( SBSA ), an authorised Financial Services Provider ( FSP ) number We are authorised to provide financial services for the following products: Long-Term Insurance A, B1, B2 and C; Short-Term Insurance: Personal Lines and Commercial Lines; Retail Pension Benefits; Securities and Instruments: shares, money market, debentures and securitised debt, warrants, bonds, and derivative instruments; Collective Investment Schemes; Foreign currency denominated investments; and Long and Short term deposits. The compliance department can be contacted on (011) or by at Groupfaiscomplianceofficer@standardbank.co.za. SBSA holds professional indemnity insurance cover. Total Expense Ratio (TER): This shows the charges, levies and fees relating to the management of the portfolio and is expressed as a percentage of the average net asset value of the portfolio, calculated over a rolling three years (where applicable) and annualised to the most recently completed quarter. 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. Transaction Costs (TC): The percentage of the value of the fund as costs relating to the buying and selling of the Fund s underlying assets. Transaction costs are a necessary cost in administering the Fund and impacts fund returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Fund, investment decisions of the investment manager and the TER. Total Investment Charges (TIC): The percentage of the value of the Fund incurred as costs, relating to the investment of the Fund. As fund returns are reported after deducting all fees and expenses, these costs (the TER & TC) should not be deducted from the fund returns. It is the sum of the TC & TER. All transactions to the account are to be in line with current Exchange Control Regulation to the country in which you are resident or working. Telephone calls may be recorded. Publication Date - 15th July /103 HX / / 08

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