FOR THE QUARTER ENDING 31 AUGUST 2017

Transcription

1 QUARTERLY FUND OVERVIEW FOR THE QUARTER ENDING 31 AUGUST 2017

2 VIEW FROM THE FUND MANAGER S DESK Glenn Moore Interest Rates Trend: Down Short Term: Down The recent decline in inflation encouraged the MPC to cut interest rates by 25bps. Market speculation suggests another rate cut may be expected before Christmas. Bonds Trend: Sideways Short Term: Sideways Long term interest rates seem to be stuck in a range between 8.4% and 9%. They reacted positively to the cut in short term rates but have failed to follow through as a result of the political impasse that continues to afflict our country. Property Trend: Sideways Short Term: Up The cut in short term interest rates and the positive reaction in the bond market gave the REIT sector a nice fillip in the quarter. However the low level of distribution growth particularly from the heavyweights is keeping the sector under pressure. Equity Trend: Sideways Short Term: Up The interest rate cut in July together with a resurgence in commodity prices has resulted in a reasonably broad based rally in local equities. Commodity shares, financials, industrials and the indomitable Naspers have been the key reason behind the surge in the JSE All Share Index. The Rand Trend: Stronger Short Term: Sideways Recently the rand has been stuck in a range between and against it must be said a very weak dollar. Commodity prices and inflows into our bond market continue to be rand positive. Political news flow, Gupta leaks and ANC infighting remain rand negative. 2

3 Asset Class Dashboard The graph below represents the most recent 3-month returns for the respective asset classes. 3

4 PERSONAL TRUST FUND RANGE & RISK PROFILE Equity Fund Global Select Managers Opportunities Fund Managed Fund Prudent Fund Global Select Managers Cautious Fund Conservative Managed Fund Income Fund Low Low to to High High The graph above illustrates the fund range and risk profile of all our funds. Below is a summary table of the various funds and the respective annualised performance history. Asset Allocation Funds Personal Trust Conservative Managed Fund 1 Year 3 Year 5 Year 10 Year Since Inception 5.71% 7.43% 10.63% N/A 10.36% Personal Trust Prudent Fund 4.31% 6.75% 10.30% 8.37% 11.54% Personal Trust Managed Fund 6.69% 7.86% 13.18% 10.63% 10.78% Offshore Funds PTI Global Select Managers Cautious Fund 3.49% 0.58% 1.36% N/A 1.17% PTI Global Select Managers 8.01% 1.19% 3.31% N/A 2.43% Opportunities Fund Equity Fund Personal Trust Equity Fund 8.74% 1.19% 5.31% N/A 8.80% Income Fund Personal Trust Income Fund 8.24% 7.55% 6.71% 7.12% 9.65% *Annualised is the average return earned by the Fund each year over a given period. Risk 4

5 MINIMUM DISCLOSURE DOCUMENT Personal Trust Conservative Managed Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To seek long-term capital growth and income returns whilst being managed according to the guidelines provided by Regulation 28 of the Pension Fund Act. Fund Features - Best suited to retired investors drawing income from their portfolio - Invests in a combination of local equities, property trusts, local and offshore bonds and cash - It has a maximum equity exposure of 40% - Investment horizon in excess of five years - The risk profile of the fund is expected to be low to medium with returns that are higher than inflation Performance (%) Qtr 1 Year* 3 Year* 5 Year* Since Inception Fund 3.00% 5.71% 7.43% 10.63% 10.36% Benchmark 3.35% 5.37% 7.94% 10.76% 10.96% CPI % 7.68% 8.33% 8.76% 8.41% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Highest & Lowest Returns (%) ¹ Highest rolling 1-year return since Lowest rolling 1-year return since Fund Benchmark 20.16% 21.48% 0.44% 1.85% Fund Classification Sector: Multi Asset Low Equity Portfolio Geographic Classification: South African Fund Risk Profile Low Low to to High High Cumulative Performance Graph since ⁵ Per R1,000 invested Fund Manager: Glenn Moore Inception Date: 1 August 2008 Fund Size: R billion Unit Price: cents per unit Units in issue: 1,786,166,416 Min Investment: R50,000 lump sum Benchmark: 35% of JSE All Share Total Return Index; 25% of All Bond Index; 5% of MSCI World Index; 5% IMF Special Drawing Rights; 5% JSE SA Listed Property Index; 10% SA Cash; 15% JP Morgan Bond Index Distribution: March, June, September, December Fees Initial Charge: Negotiable to a maximum of 1% plus VAT Annual Fund Fee: 1.21% (excluding VAT) Total Expense Ratio (see disclosure for more information) Period Financial Year: 1 Jan 31 Dec Year Rolling: 1 July June 2017 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) 1.42% 1.41% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.14% 0.12% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 1.55% 1.54% of the value of the product was incurred as costs relating to the investment of the Financial Product Conservative Managed Fund Benchmark CPI + 3 Income Distributions Class R September cpu December cpu March cpu June cpu Paid in the last 12 months 5.82 cpu 12 month historic yield ² 3.31% Risk Measure Fund JSE ALSI Maximum Drawdown ³ -5.02% % Percentage positive months since ⁴ 71.82% 61.82% ¹Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request. ² All income declared during the previous 12 months, gross of any withholding tax, as a percentage of the NAV price on the date of the MDD. ³ Maximum percentage decline over any period. Drawdown is calculated on the total return of the Fund/benchmark. ⁴ The percentage of calendar months in which the Fund produced a positive monthly return since. ⁵The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of R1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees charged), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes. 5

6 Commentary The Personal Trust Conservative Managed Fund had a reasonable quarter delivering a positive return although slightly behind benchmark. The key performance drivers this quarter were local equity and property. The Conservative Managed Fund is marginally underweight these two asset classes. The largest detractor from the relative performance however is our overweight exposure to dollar cash. The dollar remains my insurance policy against an unexpected global event that unsettles the equity markets. Overall we are happy with our asset allocation and our performance given the relatively conservative positioning of the portfolio. Asset Allocation Top 10 Equity Holdings % of Equity holding Naspers Ltd 7% Compagnie Fin Richemont 6% Remgro Ltd 6% Billiton Plc 4% British American Tobacco Plc 4% Clicks Group Ltd 4% Anglo American Plc 4% MTN Group Ltd 3% Standard Bank Group Ltd 3% Sasol Ltd 3% Other Fund Information Transaction cut off: 13h00 daily Valuation cut off: 15h00 daily Bloomberg Code: PERTRCM ISIN Code: ZAE JSE Code: PTCMF Prices are published daily in arrears. Investors can access, free of charge, daily fund prices, quarterly reports, minimum disclosure documents and annual reports on our website at 6

7 MINIMUM DISCLOSURE DOCUMENT Personal Trust Prudent Fund of Funds FUND DETAILS AT 31 AUGUST 2017 Fund Objective To seek above-average returns with medium risk with active asset allocation, within the guidelines of Regulation 28 of the Pension Fund Act. Fund Features - Suitable for investors saving for retirement and/or those seeking steady long-term capital growth - The Funds investments are in balanced funds managed in accordance with Regulation 28, which limits exposure to certain asset classes - Personal Trust chooses the underlying fund managers based on their underlying portfolios and performance through the cycle. - The Fund is a truly independent multi managed fund - Returns are likely to be less volatile than those of an equityonly fund Fund Classification Sector: Multi Asset High Equity Geographic Classification: South African Fund Risk Profile Low Fund Information Fund Manager: Glenn Moore Inception Date: 1 October 2001 Fund Size: R1.232 Billion Unit Price: cents per unit Units in issue: 301,087,735 Min Investment: R50,000 lump sum Benchmark: CPI + 5% Distribution: March, June, September, December Fees Initial Charge: Negotiable to a maximum of 1% plus VAT Annual Fund Fee: 0.90% (excluding VAT) Total Expense Ratio (see disclosure for more information) Period Financial Year: 1 Jan 31 Dec Year Rolling: 1 July June 2017 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) Low to to High High 2.14% 2.11% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.11% 0.12% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 2.25% 2.23% of the value of the product was incurred as costs relating to the investment of the Financial Product. Performance (%) Qtr 1 Year* 3 Year* 5 Year* 10 Year* Since Inception * Fund of 1.94% 4.31% 6.75% 10.30% 8.37% 11.54% Funds Benchmark 2.02% 9.77% 10.44% 10.87% 11.34% 11.10% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Highest & Lowest Returns (%) ¹ Highest rolling 1-year return since Lowest rolling 1-year return since Cumulative Performance Graph since ⁵ Per R1,000 invested 7, , , , , , , Income Distributions Class R September cpu December cpu March cpu June cpu Paid in the last 12 months 8.13 cpu 12 month historic yield ² 1.99% Fund Benchmark 33.14% 8.51% % 15.64% Risk Measure Fund JSE ALSI Maximum Drawdown ³ % % Percentage positive months since ⁴ Prudent FOF CPI % 61.98% ¹Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request ² All income declared during the previous 12 months, gross of any withholding tax, as a percentage of the NAV price on the date of the MDD. ³ Maximum percentage decline over any period. Drawdown is calculated on the total return of the Fund/benchmark. ⁴ The percentage of calendar months in which the Fund produced a positive monthly return since. ⁵ The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of R1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees charged), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes. 7

8 Commentary The Personal Trust Prudent Fund of Funds had a reasonable quarter marginally underperforming its CPI+5 benchmark. Our selected managers performed as follows*: Coronation Balanced Plus Fund P: 3.09% Prudential Balanced Fund B: 2.42% Aylett Balanced Prescient Fund A1: 2.39% Allan Gray Balanced Fund Class C: 2.22% Investec Opportunity Fund Class E: 0.52% Strong local equity and property markets were the tailwind this quarter. *Source: Morningstar Asset Allocation Underlying Holdings Asset Manager % of portfolio Prudential Balanced Fund 24% Coronation Balanced Plus Fund 20% Aylett Balanced Prescient Fund 18% Allan Gray Balanced Fund 17% Investec Opportunities Fund 15% Cash 6% Other Information Transaction cut off: 13h00 daily Valuation cut off: 15h00 daily Bloomberg Code: PERTRPF ISIN Code: ZAE JSE Code: PTPF Prices are published daily in arrears. Investors can access, free of charge, daily fund prices, quarterly reports, minimum disclosure documents and annual reports on our website at 8

9 MINIMUM DISCLOSURE DOCUMENT Personal Trust Managed Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To seek above-average returns through exposure to a full equity weighting within the guidelines of Regulation 28 of the Pension Fund Act. Fund Features - Suitable for investors saving for retirement, who can stay invested for 5 years or longer and for those looking for an investment that balances long-term growth with medium to high levels of risk - Invests in a combination of local and foreign equities, property trusts, bonds and cash. - Will tend to have an increased probability to volatility in the short term due to high equity exposure therefore suitable for investors with a longer term investment horizon Awards: Morningstar Award for Best Aggressive Allocation Fund. Award Date: 2 March 2016 Fund Classification Sector: Multi Asset High Equity Portfolio Geographic Classification: South African Fund Risk Profile Low Fund Information Fund Manager: Glenn Moore Inception Date: 1 August 2007 Fund Size: R Billion Unit Price: cents per unit Units in issue: 631,193,637 Min Investment: R50,000 lump sum Benchmark: 50% of JSE All Share Total Return Index; 10% of All Bond Index; 10% of MSCI World Index; 5% IMF Special Drawing Rights; 10% JSE SA Listed Property Index; 5% SA Cash; 10% JP Morgan Bond Index Distribution: March, June, September, December Fees Initial Charge: Negotiable to a maximum of 1% plus VAT Annual Fund Fee: 1.21% (excluding VAT) Total Expense Ratio (see disclosure for more information) Period Financial Year: 1 Jan 31 Dec Year Rolling: 1 July June 2017 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) Low to to High High 1.44% 1.44% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.16% 0.14% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 1.61% 1.58% of the value of the product was incurred as costs relating to the investment of the Financial Product. Performance (%) Qtr 1 Year* 3 Year* 5 Year* 10 Year* Since Inception * Fund 3.29% 6.69% 7.86% 13.18% 10.63% 10.78% Benchmark 4.20% 6.13% 8.35% 12.45% 10.83% 11.02% CPI % 10.81% 11.49% 11.93% 12.40% 12.34% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Highest & Lowest Returns (%) ¹ Highest rolling 1-year return since Lowest rolling 1-year return since Cumulative Performance Graph since ⁵ Per R1,000 invested 3, , , , , , Managed Fund Benchmark CPI + 6 Income Distributions Class R September cpu December cpu March cpu June cpu Paid in the last 12 months 6.00 cpu 12 month historic yield² 2.82% Risk Measure Fund JSE ALSI Maximum Drawdown³ % % Percentage positive months since ⁴ 66.39% 59.84% Fund Benchmark 29.17% 26.97% % % ¹Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request ² All income declared during the previous 12 months, gross of any withholding tax, as a percentage of the NAV price on the date of the MDD. ³ Maximum percentage decline over any period. Drawdown is calculated on the total return of the Fund/benchmark. ⁴ The percentage of calendar months in which the Fund produced a positive monthly return since. ⁵ The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of R1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes. 9

10 Commentary The Personal Trust Managed Fund had a reasonable quarter delivering a positive return albeit somewhat behind the benchmark. The fund was underweight both local equity and property, the two top performing asset classes this quarter. Our asset allocation remains conservative with a healthy exposure to dollar cash which only delivers when a global event destabilises markets. We have been very fortunate to have not had one decent correction since Trump was elected in November last year. This is unusual market behaviour given the global political flashpoints. Asset Allocation Top 10 Equity Holdings % of Equity Holding Compagnie Fin Richemont 7% Remgro Ltd 6% Naspers Ltd 6% British American Tobacco Plc 5% Billiton Plc 5% Anglo American Plc 4% MTN Group Ltd 4% Standard Bank Group Ltd 3% Sasol Ltd 3% Clicks Group Ltd 3% Other Fund Information Transaction cut off: 13h00 daily Valuation cut off: 15h00 daily Bloomberg Code: PERTRMG ISIN Code: ZAE JSE Code: PETB Prices are published daily in arrears. Investors can access, free of charge, daily fund prices, quarterly reports, minimum disclosure documents and annual reports on our website at 10

11 MINIMUM DISCLOSURE DOCUMENT PTI Global Select Managers Cautious Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To achieve steady long-term capital growth with a moderate level of risk. Fund Features - Managed by Brooks MacDonald Asset Management (International) Ltd & Credo Capital Plc - Designed for investors seeking a moderate level of risk for the international portion of their portfolio - Ideal investor should have limited income requirements and the ability to tolerate a reasonable level of volatility - Investment horizon of three to five years Fund Classification Sector: Multi Asset Flexible Geographic Classification: Global Fund Risk Profile Low Inception Date: 1 April 2011 Size: $51.04 million Unit Price: cents per unit Units in issue: 47,377,922 Min Investment: $5,000 Dealing Freq: Weekly Benchmark: 25% MSCI World Index; 25% JP Morgan Global Bond Index; 10% S&P Global REIT Index; 40% IMF Special Drawing Rights Registered: Guernsey Custodian: BNP Paribas Trust Company (Guernsey) Ltd Distribution: None Fees Initial Charge: No Initial Fee Annual Fund Fee: 1.34% Total Expense Ratio Period Financial Year: 1 Jan 31 Dec 2016 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) Low to to High 3 Year Rolling: 1 July June 2017 High 1.99% 1.90% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.00% 0.01% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 1.99% 1.91% of the value of the product was incurred as costs relating to the investment of the Financial Product. Other Fund Information Transaction cut off: Tuesday weekly Valuation cut off: Thursday weekly Bloomberg Code: PTIGMCA ISIN Code: GG00B4LF9S22 Investors can access, free of charge, quarterly reports, minimum disclosure documents and annual reports on our website at Performance (%) Qtr 1 Year* 3 Year* 5 Year* Since Inception* Fund - USD 1.94% 3.49% 0.58% 1.36% 1.17% Fund - ZAR 2.89% -8.14% 7.57% 10.50% 12.10% Benchmark 2.39% 3.30% 0.66% 2.43% 1.93% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Highest & Lowest Returns (%) ¹ Fund Benchmark Highest rolling 1-year return since 5.45% 6.61% Lowest rolling 1-year return since -5.86% -6.42% Cumulative Performance Graph since ³ Performance Risk Measure Percentage positive months since ² Fund Benchmark 54.55% 54.55% ¹ Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request. ² The percentage of calendar months in which the Fund produced a positive monthly return since. ³ The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of $1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees charged), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes.. Asset Allocation Fixed Income 38% PTI GSM Cautious USD PTI GSM Cautious ZAR Benchmark Equities 32% Commodities 1% Currency Allocation Property 7% Chinese Japenese Cash British Yuan Yen 22% Pound 1% Euro 2% 3% 7% US Dollar 87% 11

12 Commentary Brooks MacDonald Asset Management We reduced the equity exposure in the fund at the beginning of August, from 32.5% to the current 28.9%, relative to the equity benchmark weighting of 25%. This was done by trimming exposure to several holdings which had performed strongly during 2017 to date, including Hermes Asia ex Japan (+35% ytd), Fundsmith (+23%) and ishares Global Infrastructure (+20%). The proceeds were added to $ cash which now stands at 17.2%. During the quarter, the strongest returns have come from Hermes (+9.2%), Vanguard Healthcare (+5.5%), Old Mutual North American (+3.7%) and physical gold (+4.5%). The main detractors were ishares S&P500 Min Vol (-0.2%) and SPDR Global Real Estate (+0.6%). All of the fixed interest investments made positive returns in the quarter, with ishares Corporate Bond (+2.6%) and ishares Government Bond (+1.9%) leading the way. We took equity risk back toward neutral levels after a period of strong returns from the sectors concerned and also with an eye on current valuation levels and a rising level of worry in relation to political events in the US and East Asia. August has seen a further fall in developed market bond yields, but also a widening in credit spreads, a continued softening of the dollar and a rally in safe haven assets, such as treasuries and gold. Although recent US & Chinese activity data has been relatively upbeat, extreme low levels of volatility (as measured by VIX) suggest a degree of complacency across risk assets and the potential for a further correction in prices if there is an escalation in geopolitical tensions or more of a focus on balance sheet & rate normalisation in the US during the remainder of the year. As such, we felt happy to bank gains and raise liquidity within the portfolio. Commentary Credo Capital Plc Whilst both global equities and global bonds started the period relatively flat to slightly negative into the beginning of July, performance was strong in both asset classes over the remainder of the quarter ending August. Equity indices saw some regional divergence, as Europe and UK equities underperformed US stocks in local currency terms. However, frail equity performance for these markets was outweighed by continued dollar weakness, which boosted returns on international stocks in USD terms. 10 year bond yields in the US and UK were relatively unchanged over the period at 2.1% and 1.03% respectively, suggesting an escalation in political tensions with North Korea was not a primary concern for investors at this point in time. 12

13 MINIMUM DISCLOSURE DOCUMENT PTI Global Select Managers Opportunities Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To achieve long-term capital growth by investing in a diversified mix of asset classes and specialist managers within each asset class. The fund will have an above-average risk profile. Fund Features - Managed by Brooks MacDonald Asset Management (International) Ltd & Credo Capital Plc - Designed for investors whose goal for the international portion of their portfolio is long-term capital growth. - Ideal investor will have no income requirements and will be able to tolerate a high level of volatility - Investment horizon in excess of five years Fund Classification Sector: Multi Asset Flexible Geographic Classification: Global Fund Risk Profile Low Low to to High Inception Date: 1 April 2011 Size: $ million Unit Price: cents per unit Units in issue: 23,495,717 Min Investment: $5,000 Dealing Freq: Weekly Benchmark: 60% MSCI World Index; 20% JP Morgan Global Bond Index; 10% S&P Global REIT Index; 10% IMF Special Drawing Rights Registered: Guernsey Custodian: BNP Paribas Trust Company (Guernsey) Ltd Distribution: None High Other Fund Information Transaction cut off: Tuesday weekly Valuation cut off: Thursday weekly Bloomberg Code: PTISMOA ISIN Code: GG00B4PPSZ87 Investors can access, free of charge, quarterly reports, minimum disclosure documents and annual reports on our website at Performance (%) Qtr 1 Year* 3 Year* 5 Year* Since Inception* Fund - USD 1.98% 8.01% 1.19% 3.31% 2.43% Fund - ZAR 2.93% -4.13% 8.22% 12.63% 13.50% Benchmark 2.33% 7.76% 2.17% 5.48% 3.97% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Highest & Lowest Returns (%)¹ Highest rolling 1-year return since Lowest rolling 1-year return since Cumulative Performance Graph since ³ Performance Fund Benchmark 12.55% 16.16% % -8.69% Fees Initial Charge: No Initial Fee Annual Fund Fee: 1.34% Total Expense Ratio (see disclosure for more information) Period Financial Year: 1 Jan 31 Dec Year Rolling: 1 July June 2017 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) 2.11% 2.05% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.01% 0.01% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 2.12% 2.06% of the value of the product was incurred as costs relating to the investment of the Financial Product. Risk Measure Fund Benchmark Percentage positive months 53.25% 55.84% since ² ¹ Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request. ² The percentage of calendar months in which the Fund produced a positive monthly return since. ³ The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of $1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes. Asset Allocation Fixed Income 23% Property 6% PTI GSM Opportunities USD PTI GSM Opportunities (ZAR) Benchmark Cash 9% Commodities 1% Currency Allocation Euro 3% British Pound 3% Equities 61% US Dollar 94% 13

14 Commentary Brooks MacDonald Asset Management We reduced the equity exposure in the fund at the beginning of August, from 65.9% to the current 60.1%, relative to the equity benchmark weighting of 60%. This was done by trimming exposure to several holdings which had performed strongly during 2017 to date, including Hermes Asia ex Japan (+35% ytd), MSCI World All Country (+15%) and ishares Global Infrastructure (+20%). The proceeds were added to $ cash which now stands at 13.7% relative to the cash benchmark of 10%. During the quarter, the strongest returns have come from Hermes (+9.2%), Vanguard Healthcare (+5.5%), Old Mutual North American (+3.7%) and physical gold (+4.5%). The main detractors were ishares S&P500 Min Vol (-0.2%) and SPDR Global Real Estate (+0.6%). All of the fixed interest investments made positive returns in the quarter, with ishares Corporate Bond (+2.6%) and ishares Government Bond (+1.9%) leading the way. We took equity risk back toward neutral levels after a period of strong returns from the sectors concerned and also with an eye on current valuation levels and a rising level of worry in relation to political events in the US and East Asia. August has seen a further fall in developed market bond yields, but also a widening in credit spreads, a continued softening of the dollar and a rally in safe haven assets, such as treasuries and gold. Although recent US & Chinese activity data has been relatively upbeat, extreme low levels of volatility (as measured by VIX) suggest a degree of complacency across risk assets and the potential for a further correction in prices if there is an escalation in geopolitical tensions or more of a focus on balance sheet & rate normalisation in the US during the remainder of the year. As such, we felt happy to bank gains and raise liquidity within the portfolio. Commentary Credo Capital Plc Whilst both global equities and global bonds started the period relatively flat to slightly negative into the beginning of July, performance was strong in both asset classes over the remainder of the quarter ending August. Equity indices saw some regional divergence, as Europe and UK equities underperformed US stocks in local currency terms. However, frail equity performance for these markets was outweighed by continued dollar weakness, which boosted returns on international stocks in USD terms. 10 year bond yields in the US and UK were relatively unchanged over the period at 2.1% and 1.03% respectively, suggesting an escalation in political tensions with North Korea was not a primary concern for investors at this point in time. 14

15 MINIMUM DISCLOSURE DOCUMENT Personal Trust Equity Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To provide returns in excess of the JSE All Share Index over the long-term with lower than average risk of capital loss. Fund Features - Alternate, more efficient vehicle for clients with individual share portfolios due to CGT deferral - Suitable for investors seeking full exposure to the SA equity market - Focus on high quality businesses with good long-term prospects - Caters for clients who have a high risk profile with a longterm investment horizon - Suitable for investors who are looking for outperformance of the South African equity market in varying market conditions. May underperform the market in the short-term in search of long-term gains. Fund Classification Sector: Equity General Portfolio Geographic Classification: South African Fund Risk Profile Low Fund Information Fund Manager: Mark Huxter Inception Date: 13 July 2009 Fund Size: R million Unit Price: cents per unit Units in issue: 376,863,599 Min Investment: R50,000 lump sum Benchmark: JSE All Share Index Distribution: March, June, September, December Fees Initial Charge: Negotiable to a maximum of 1% plus VAT Annual Fund Fee: 1.21% (excluding VAT) Total Expense Ratio Period Financial Year: 1 Jan 31 Dec 2016 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) Low to to High 3 Year Rolling: 1 July June 2017 High 1.39% 1.48% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.08% 0.34% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 1.46% 1.82% of the value of the product was incurred as costs relating to the investment of the Financial Product. Performance (%) Qtr 1 Year* 3 Years* 5 Years* Since Inception* Fund 3.85% 8.74% 1.19% 5.31% 8.80% Benchmark 6.04% 10.14% 6.56% 13.10% 15.25% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. PT Equity Fund performance is based on the performance of the PT SA Equity Fund as at 31 July 2015 Highest & Lowest Returns (%) ¹ Fund Benchmark Highest rolling 1-year return since 27.84% 32.74% Lowest rolling 1-year return since -9.77% 4.37% Cumulative Peformance Graph since ⁵ Per R1,000 invested SA Equity Fund Benchmark Income Distributions Class R September cpu December cpu March cpu June cpu Paid in the last 12 months 3.19 cpu 12 month historic yield ² 1.88% Risk Measure Fund JSE ALSI Maximum Drawdown ³ -7.81% % Percentage positive months since ⁴ 62.89% 61.86% ¹Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request ² All income declared during the previous 12 months, gross of any withholding tax, as a percentage of the NAV price on the date of the MDD. ³ Maximum percentage decline over any period. Drawdown is calculated on the total return of the Fund/benchmark. ⁴ The percentage of calendar months in which the Fund produced a positive monthly return since. ⁵ The investment performance is for illustrative purposes only. It depicts how an initial lump sum investment of R1,000 (for example) placed at of the fund has changed over time, taking ongoing fees into account (excluding any initial fees charged), with all distributions reinvested on reinvestment date, prior to the deduction of any withholding taxes. 15

16 Commentary The Personal Trust Equity Fund performance has benefited from the strategy of maintaining a long term thematic focus and implementing this strategy when beneficial. It has moved to counter the long term effects of Sovereign Debt downgrades and hence the cash position remains at 6%; with trades executed this last quarter: - PPC weightings were increased marginally. The performance this quarter was slightly below the JSE All Share Index (Year to Date fund performance 10.64%). The fund, and in particular the top ten holdings, still reflect the investment philosophy which favours high quality, highly liquid companies with consistent long term track records. The strategy for the fund continues to pursue the long term goal of outperforming the benchmark on a consistent basis; ignoring quarterly capitalism / performance. The PT Equity Fund will reflect the guiding principles of the Investment Councils model portfolio and investment process. Sector Allocation Asset Allocation Cash 6% Top 10 Holdings % of Equity Holding Billiton Plc 10% Remgro Ltd 8% British American Tobacco Plc 7% Compagnie Fin Richemont 7% Naspers Ltd 6% NEPI Rockcastle Plc 6% Bid Corp Ltd 5% Sasol Ltd 5% Shoprite Holdings Ltd 4% Tiger Brands Ltd 4% Other Fund Information Transaction cut off: 13h00 daily Valuation cut off: 15h00 daily Bloomberg Code: PTSAEQY ISIN Code: ZAE JSE Code: PTSAE Prices are published daily in arrears. Investors can access, free of charge, daily fund prices, quarterly reports, minimum disclosure documents and annual reports on our website at Local Equities 94% 16

17 MINIMUM DISCLOSURE DOCUMENT Personal Trust Income Fund FUND DETAILS AT 31 AUGUST 2017 Fund Objective To manage the interest rate cycle to obtain the highest possible yield whilst ensuring the security of the capital invested. Fund Features - Managed by Prescient & RMI - Suitable for investors with a low risk profile who are seeking managed exposure to income generating investments - Tactically managed to secure an attractive return while protecting capital - Recommended investment period is 12 months or longer. Fund Classification Sector: Multi Asset Income Portfolio Geographic Classification: South African Fund Risk Profile Low Fund Information Inception Date: 1 July 2002 Fund Size: R million Unit Price: cents per unit Units in issue: 227,212,821 Min Investment: R200,000 lump sum Benchmark: Cash + 2% Distribution: March, June, September, December Fees Initial Charge: Negotiable to a maximum of 1% plus VAT Annual Fund Fee: 1.33% (excluding VAT) Total Expense Ratio (see disclosure for more information) Period Financial Year: 1 Jan 31 Dec Year Rolling: 1 July June 2017 Total Expense Ratio (TER) Transaction Costs (TC) Total Investment Charges (TER +TC) Low to to High 1.59% 1.58% of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product 0.01% 0.01% of the value of the Financial Product was incurred as costs related to the buying and selling of the assets underlying the Financial Product 1.60% 1.59% of the value of the product was incurred as costs relating to the investment of the Financial Product. Other Fund Information Transaction cut off: 13h00 daily Valuation cut off: 15h00 daily Bloomberg Code: PERTRIN ISIN Code: ZAE JSE Code: PTIC Prices are published daily in arrears. Investors can access, free of charge, daily fund prices, quarterly reports, minimum disclosure documents and annual reports on our website at High Asset Allocation Local Cash 8% Pref Shares 3% Property 2% Inflation Linkers 5% Bonds 7-12 Yrs 1% Bonds 3-7 Yrs 17% Performance (%) Qtr 1 Year* Total Fund Allocation 3 Year* 5 Year* 10 Year* Since Inception* Fund 2.13% 8.24% 7.55% 6.71% 7.12% 9.65% Benchmark 1.50% 5.98% 5.39% 4.79% 5.00% 5.12% *Annualised. The compound annual growth rate over the performance period measured. Past performance is not indicative of future performance. Performance of PT Income ABIL Retention Fund (%) Qtr 1 Year 3 Year 5 Year 10 Year Since Inception PT Income 2.16% 8.69% 7.30% 6.56% 7.05% 9.60% Fund Benchmark 1.50% 5.98% 5.39% 4.79% 5.00% 5.12% On 21 August 2014, the PT Income ABIL Retention Fund was established to house the illiquid African Bank debt instruments. An equal percentage of the unitholding of all investors in the PT Income Fund at that date were moved to the Retention Fund. The performance table above indicates the combined performance of both the PT Income Fund, and PT Income ABIL Retention Fund. These performance figures are applicable to investors that were invested in the PT Income Fund on 21 August Highest & Lowest Returns (%) ¹ Highest rolling 1-year return since Lowest rolling 1-year return since Money Market 33% Fund Benchmark 23.13% 6.78% 4.22% 11.12% Income Distributions Class R September cpu December cpu March cpu June cpu Paid in the last 12 months 9.77 cpu 12 month historic yield² 7.21% Bonds 0-3 Yrs 31% Risk Measure Fund JSE ALSI Percentage positive months 92.35% 61.20% since ³ ¹ Highest & lowest fund returns are those achieved over rolling one year periods since. Actual annual figures are available to the investor on request ² All income declared during the previous 12 months, gross of any withholding tax, as a percentage of the NAV price on the date of the MDD. ³ The percentage of calendar months in which the Fund produced a positive monthly return since. 17

18 RMI Commentary Our bond market was a laggard this quarter with a return of 1.58%, underperforming money market at 1.86%. Equity and property markets performed well with returns of 6.04% and 4.79%, whilst Inflation linked bonds severely underperformed (0.13%) mainly because of the continued better than expected inflation data, which saw our first 25bps cut in the repo rate in July. Although this was a surprise, we are now expecting another cut of 25bps in September. This is due to inflation printing lower, despite the economy moving out of recession due to a bounce in growth in the second quarter. Markets locally continue to be focused on political risk which will remain elevated in the run up to the ANC policy conference at the end of the year. Our global bond valuation model has cheapened further for domestic bonds, although if we compare the SA sovereign spread to other emerging market sovereign spreads, it appears we are pricing in as much as two further downgrades. With growth prospects looking dismal and the fiscal numbers deteriorating, we are now certain that there will be further downgrades from Moodys in the near term which will lead to SA s exit from the World Government Bond Index (WGBI) and foreigners selling our bonds as a result. This may lead to a spike in bond yields and better buying opportunities than at present. The other significant risk is a shock on the global front which will cause emerging markets to go out of favour with foreign investors. For now, appetite from foreign investors for our bonds seems to be firmly intact, and they have bought more SA bonds year to date than in any other year. Although inflation is well contained, we believe there is value in the short end of the inflation linked bond curve. We continue to have a healthy weighting in shorter dated inflation linked bonds, and will look for opportunities in this area. We are cautious on property as an asset class mainly due to weakening property fundamentals and moderate growth outlook. We are targeting good quality stocks where there is more certainty in earnings and we are not pricing in a significant de-rating on the underlying stocks in our valuation model. Preference is being given to stocks with increasing exposure to the residential asset class. Credit Spreads have been on a narrowing trend over the last couple of months and there is currently less value in the credit market. We have been positioning the income fund into bank paper and favouring the higher quality corporates, and have benefitted from significant spread narrowing in these sectors. We have very low exposure to the SOEs and expect this sector to underperform going forward. We have become more selective about our participation in auctions as the market is showing less value. We will continue to look for secondary market opportunities in fixed rate credit. We target a yield of Stefi + 2% in the income fund, whilst keeping duration low to minimise volatility. We believe that this environment of slow but improving growth, and moderate inflation remain a favourable one for income funds for at least the medium term. Looking forward, although we are entering a rate cutting cycle, we believe it will be an extremely shallow cutting cycle, and real yields should remain high enabling income funds to achieve very positive inflation beating returns. Prescient Commentary The 3 month Jibar declined 0.28% over the quarter from 7.33% to 7.05% while the 12 month Jibar declined 0.55% from 8.23% to 7.68% over the same period. This decline was largely due to the repo rate cut in July. The forward interest rate curve shifted around 0.4%-0.5% lower over the quarter and is currently pricing in 0.50% worth of rate cuts within the next eight months. However, risks to interest rates coming lower stem from political risks in the run up to December, the tightening of global monetary policy and the narrowing of rate differentials of SA relative to EM peers. The duration of the Fund remains short as we do not see value in holding fixed rate assets at levels that have already priced in two additional interest rate cuts. Holdings consist largely of floating rate exposure through banks, SOE s and Corporates, in both the bond and cash markets, to take advantage of the additional pick-up in yield. The Fund also maintained exposure to preference shares and domestic property. The Fund outperformed its benchmark over the quarter. The main contributors to performance emanated from the high credit and funding spreads. 18

19 Fund Facts Asset Allocation Funds Offshore Funds Equity Fund Income Fund PT Equity Fund PT Income Fund PTI Global Select Managers Opportunities Fund PTI Global Select Managers Cautious Fund PT Managed Fund PT Prudent Fund of Funds PT Conservative Managed Fund Inception Date August 2008 October 2001 August 2007 April 2011 April 2011 July 2009 July 2002 Min Investment R50,000 R50,000 R50,000 $5,000 $5,000 R50,000 R200,000 Negotiable to a max. of 1% (excl. VAT) No initial fee No initial fee Negotiable to a max. of 1% (excl. VAT) Negotiable to a max. of 1% (excl. VAT) Negotiable to a max. of 1% (excl. VAT) Initial Charge Negotiable to a max. of 1% (excl. VAT) Annual Fund Fee 1.21% (excl. VAT) 0.90% (excl. VAT) 1.21% (excl. VAT) 1.34% (excl. VAT) 1.34% (excl. VAT) 1.21% (excl. VAT) 1.33% (excl. VAT) TER (Financial Year) 1.42% 2.14% 1.44% 1.99% 2.11% 1.39% 1.59% TC 0.14% 0.11% 0.16% 0.00% 0.01% 0.08% 0.01% TER + TC 1.55% 2.25% 1.61% 1.99% 2.12% 1.46% 1.60% TER (3 Year Rolling) 1.41% 2.11% 1.44% 1.90% 2.05% 1.48% 1.58% TC 0.12% 0.12% 0.14% 0.01% 0.01% 0.34% 0.01% TER + TC 1.54% 2.23% 1.58% 1.91% 2.06% 1.82% 1.59% Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is used Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is used Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is used JSE All Share Index Cash + 2% used CPI + 5% 50% JSE All Share Fund Valuation Fund valuations take place at 15h00 SA time on a daily basis, and forward pricing is used used 60% MSCI World Index; 20% JP Morgan Global Bond Index; 10% S&P Global REIT Index; 10% IMF Special Drawing Rights used 25% MSCI World Index; 25% JP Morgan Global Bond Index; 10% S&P Global REIT Index; 40% IMF Special Drawing Rights Benchmark 35% JSE All Share Total Return Index; 10% All Bond Index; 10% MSCI World Index; 5% IMF Special Drawing Rights; 10% JSE SA Listed Property Index; 5% SA Cash; 10% JP Morgan Bond Index Total Return Index; 25% All Bond Index; 5% MSCI World Index; 5% IMF Special Drawing Rights; 5% JSE Listed Property Index; 10% SA Cash; 15% JP Morgan Bond Index Risk Profile Low to to High to High Low to to High High Low Distributions Quarterly Quarterly Quarterly None None Quarterly Quarterly *Total Expense Ratio: Period (Financial Year): 1 Jan 31 Dec 2016 Period (3 Year Rolling):1 July June 2017 Total Expense Ratio (TER) Percentage of the value of the Financial product was incurred as expenses relating to the administration of the Financial Product. Transaction Costs (TC) Percentage of the value of the Financial product was incurred as costs relating to the buying & selling of the assets underlying the Financial Product. Total Investment Charges (TER + TC) Percentage of the value of the product was incurred as costs relating to the investment of the Financial Product. 19

20 Important Information for Investors Tel: Fax: Personal Trust International Management Company (Pty) Ltd Personal Trust International Management Company (Pty) Ltd. Reg No. 2005/026983/07 is a registered Collective Investment Scheme manager in terms of the Collective Investment Scheme Control Act, 45 of Wholly owned Subsidiary of Personal Trust (Pty) Ltd. FSP Licence No Registered Financial Services Provider. The Management Company is a member of the Association for Savings & Investment SA (ASISA) Independent Trustee & Custodian Firstrand Bank Limited Address: 25 th Floor, Portside 5 Buitengracht Street, Cape Town, South Africa. Tel: Performance Collective Investment Schemes (CIS) are generally medium to long term investments. The value of the participatory interest may go up as well as down and past performance is not necessarily a guide to future performance. Performance disclosed in the fact sheets is applicable to the respective fund. Performance figures include income distributions, prior to deduction of withholding taxes and are calculated after management fees. Personal Trust Management Company does not provide a guarantee either with respect to the capital or the return of a portfolio. Actual investor performance may differ as a result of the investment date, any initial fee charged, the date of reinvestment and any withholding tax. Performance figures quoted are from Profile Data for the period ending 31 August 2017 based on a lump sum investment, using NAV prices which include fees and charges, excluding any initial fees, with income distributions reinvested on ex dividend date. Fund Mandate Personal Trust Management Company (Pty) Ltd & PTI Mutual Fund PCC Limited have the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A fund of fund portfolio only invests in other Collective Investment Schemes, which levy their own charges, which could result in a higher fee structure for these funds. The Personal Trust Income Fund derives its income primarily from interest-bearing instruments in accordance with section 100(2) of the Act, the yield is historic and calculated daily. The Personal Trust Income Fund is jointly managed by Prescient Investment Management, FAIS Licence Number 612 and RMI Specialist Managers Proprietary Limited, FAIS Licence Number There have been no breaches in the funds during the reporting period. Unit Price Historic pricing is used. Fees A schedule of fees and charges and maximum commissions is available on request from the company. Commissions and incentives may be paid and if so, would be included in the overall cost. The Fund may invest in portfolios of collective schemes that levy their own charges, which could result in a higher fee structure for the Fund. A Fund of Funds portfolio will invest in portfolios that levy their own charges, which could result in a higher fee structure for the Fund of Funds. In both instances, the charges levied by the portfolios of collective investment schemes into which the Fund invests are reflected in the Total Expense Ratio. Foreign Exposure A portfolio can invest in foreign securities which may have exposure to potential constraints on liquidity and the repatriation of funds; macroeconomic risks; political risks; foreign exchange risks; tax risks, settlement risks; and potential limitations on the availability of market information. Total Expense Ratio (TER) A Higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER's. Transaction costs are a necessary cost in administering the Financial Product and impacts the Financial Product 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 financial product, the investment decisions of the investment manager and the TER. 20