1 EXECUTIVE SUMMAY JULY 2017 THE COION EPOT MONTHLY CIS INSIGHTS OCTOBE 2018 PIONEEING. PATNEING. PEFOMING.
EXECUTIVE SUMMAY OCTOBE 2018 THE ENVIONMENT Equities depreciated by 8%, in line with the global market sell-off. The Industrial sector depreciated by more than 8% for the second consecutive month, ending down 8.4%. Financials and esources lost 1% and 2% respectively. The and weakened 4%, on higher current account deficit numbers. Both Bonds and Property lost 7%. The best performing shares were mostly retail companies such as Clicks, Woolworths and Mr Price. Anglo Gold was the best performing share (+17%). The worst performing shares ranged across a few industries; leading the way was index heavyweight Naspers (-15%), followed by Sasol (-12%) and Mediclinic (-11%). U.S. stocks ended down 6.8%, one of its worst months since the 2008 financial crisis. Tech giants, Facebook, Amazon, Netflix and Alphabet were amongst the hardest hit. INTEESTING FACTS The JSE Top40 is 16% below its November 2017 high. Many notable technology stocks are trading significantly below their 52-week highs. These include Tencent -42%, Facebook -31%, Alibaba -33% and Netflix -29%. Half of Ethiopia s cabinet have PhDs in line with the portfolios they are responsible for. Ethiopia is one of the world s fasted growing economies. Pablo Escobar offered to pay Colombia s entire debt, then at $20 Billion, to avoid extradition to the United States. (Source: Spectator Index) ASSET CLASSES* US$ / AND 3% POPETY -7% -7% -1% ESOUCES -2% -8% INDUSTIALS BEST TOP 40 ANGLO GOLD 16.7% CLICKS 7.4% WOOLWOTHS 7% EQUITY INDUSTIES TELECOMMUNICATIONS INDUSTIALS BASIC MATEIALS HEALTH CAE CONSUME GOODS CONSUME SEVICES WOST TOP 40 NASPES SASOL MEDICLINIC -6% -3% -2% -9% -3% -8% -13% -10% -16% -10.6% INTEESTING QUOTE Interest rates are rising, which is bad for stocks. But rates are rising because the economy is growing, which is good for stocks. High growth could cause inflation, which is bad for stocks. But inflation could boost earnings, which is good for stocks. epeat until crazy. NETCAE M PICE OLD MUTUAL 6% 2% 0% MONDI PLC MONDI LTD INVESTEC PLC -9.5% -9.2% -8.1% (Source: Morgan Housel) LIFE HEALTHCAE -0.2% INVESTEC LTD -7.8% *FTSE/JSE SA Listed Property (Property), FTSE/JSE Indl 25 (Industrials), FTSE/JSE All Share (Equities), FTSE/JSE esources 10 (esources), Beassa ALBI (Bonds) and FTSE/JSE Financial 15 (Financials) were used as indicies for each asset class page 2
VALUE VESUS GOWTH INVESTING: TWO DISTINCT PEIODS Over the last twenty years, Growth has outperformed Value by 7% p.a. The performance can be segmented into two very different 10 year periods. Will the next 10 years belong to the Value investor? SEPTEMBE 1998 - OCTOBE 2008 OCTOBE 2008 - SEPTEMBE 2018 Value outperforms Growth by 7% Growth outperforms Value by 7.6% Data source: MSCI Growth and Value returns provided by euters. page 3
ASSET CLASS ETUNS OCTOBE 2018 1 MONTH 3 MONTHS YTD 1 YEA 3 YEAS BEST US DOLLA 3% US DOLLA 17% US DOLLA 19.3% ESOUCES 17% ESOUCES 10.7% POPETY -7% ESOUCES 6% ESOUCES 18.7% 7.8% 6.6% -7% POPETY -2% 0% 7.3% 3% -1% -3% -7.7% US DOLLA 4% US DOLLA 3% ESOUCES -2% -6.2% -9.4% 1% -8% -7.6% INDUSTIALS -19.3% POPETY -18.7% POPETY -6% WOST INDUSTIALS INDUSTIALS -11% POPETY -25% INDUSTIALS -28% INDUSTIALS -9% Datasource: Morningstar. eturns longer than one year annualised page 4
PEFOMANCE ASISA SA EQUITY GENEAL ONE MONTH AS AT 31 OCTOBE 2018 ONE YEA AS AT 31 OCTOBE 2018 BEST PEFOMING ETUN BEST PEFOMING ETUN Investec Value Element Earth Equity SCI Counterpoint SCI Dividend Equity Element Islamic Equity SCI Oasis Crescent Equity 3 761 246 195 131 5 713 6.4% -0.2% -4% -5% -5% Satrix Dividend Plus Index Satrix Quality Index Fairtree Smart Beta Prescient Counterpoint SCI Dividend Equity Aylett Equity Prescient 190 458 287 195 1 062 10.2% 6.0% 7% 0% 3% WOST PEFOMING ETUN WOST PEFOMING ETUN Stonehage Fleming SCI Equity ALUWANI Top 25 STANLIB Equity STANLIB SA Equity STANLIB Index 264 383 3 974 2 897 167-7.0% -6.9% -6.3% -6.3% -6.2% Harvard House BCI Equity Sanlam Select Thematic Equity First Avenue SCI Focused Quality Equity Steyn Capital Equity Prescient First Avenue SCI Equity 133 259 349 1 251 628-22% -26% -20.6% -18.6% -17.8% LAGEST FUNDS ETUN LAGEST FUNDS ETUN Allan Gray Equity Prudential Core Value Coronation Top 20 Old Mutual Investors Nedgroup Inv ainmaker 40 619 18 148 18 040 11 565 11 424-8% -1% -8% -2% -6% Allan Gray Equity Prudential Core Value Coronation Top 20 Old Mutual Investors Nedgroup Inv ainmaker 40 619 18 148 18 040 11 565 11 424-0% -3% -10% -8.9% -15% INDUSTY ETUN INDUSTY ETUN ASISA SA Equity General Category Ave -5% -8% -7% ASISA SA Equity General Category Ave -8.3% 7.8% 6.6% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. page 5
PEFOMANCE ASISA SA HIGH EQUITY ONE MONTH AS AT 31 OCTOBE 2018 ONE YEA AS AT 31 OCTOBE 2018 BEST PEFOMING ETUN BEST PEFOMING ETUN Plexus Wealth BCI Balanced Marriott Balanced FoF Oasis Crescent Balanced High Equity FoF Imalivest SCI Balanced Dotport BCI Prudential FoF 228 2 558 174 161 258-0.3% -0.8% -0% -1% -2% Aylett Balanced Prescient Sentio SCI HIKMA Shariah Balanced ClucasGray Equilibrium Prescient PSG Balanced Oasis Balanced 550 115 473 12 133 760 8% 7% 4% 9% 5% WOST PEFOMING ETUN WOST PEFOMING ETUN Autus BCI Balanced Instit BCI Managed FoF Edge BCI Managed Aggressive Momentum Enhanced Growth Plus FoF Flagship IP Prudential Variable 270 152 110 1 808 164-5% -7% -7% -7% -6% SA Asset Management BCI Managed Autus BCI Balanced Capricorn SCI Balanced Flagship IP Prudential Variable Anchor BCI Managed 237 270 362 164 543-10% -9.5% -9.2% -9.2% -9.0% LAGEST FUNDS ETUN LAGEST FUNDS ETUN Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 149 927 86 339 43 286 33 838 23 610-0% -9% -2% -3% -2% Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 149 927 86 339 43 286 33 838 23 610-6% -2% 0.6% -4% -5% INDUSTY ETUN INDUSTY ETUN ASISA SA Multi Asset High Eq Category Ave -2% -8% -7% ASISA SA Multi Asset High Eq Category Ave -9% 7.8% 6.6% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. page 6
PEFOMANCE ASISA SA LOW EQUITY ONE MONTH AS AT 31 OCTOBE 2018 ONE YEA AS AT 31 OCTOBE 2018 BEST PEFOMING ETUN BEST PEFOMING ETUN ABSA Inflation Beater Old Mutual eal Income Allan Gray Optimal ABSA Absolute ezco Stable 397 4 791 1 213 6 816 109 0.7% 0.3% 0.3% ABSA Inflation Beater Allan Gray Optimal Counterpoint SCI Cautious Old Mutual eal Income PSG Stable 397 1 213 351 4 791 4 652 8.4% 6.5% 7% 6% 3% WOST PEFOMING ETUN WOST PEFOMING ETUN Autus BCI Stable Amity BCI Stable Select JM Busha BCI eal eturn BCI Best Blend Cautious Discovery Cautious Balanced 246 260 108 247 2 024-4% -7% -7% -4% -4% Ashburton Targeted eturn Prudential Inflation Plus Seed Stable Prescient 1st Fusion Ci Temperate Autus BCI Stable 465 33 810 331 133 246-9% -7% -5% -4% -4% LAGEST FUNDS ETUN LAGEST FUNDS ETUN Allan Gray Stable Coronation Balanced Defensive Prudential Inflation Plus Nedgroup Inv Stable SIM Inflation Plus 51 109 34 168 33 810 21 677 13 284-2% -1% -2% -4% -4% Allan Gray Stable Coronation Balanced Defensive Prudential Inflation Plus Nedgroup Inv Stable SIM Inflation Plus 51 109 34 168 33 810 21 677 13 284 6% 2% -7% 5% 9% INDUSTY ETUN INDUSTY ETUN ASISA SA Multi Asset Low Eq Category Ave -4% -8% -7% ASISA SA Multi Asset Low Eq Category Ave 0% 7.8% 6.6% The eport has been designed to provide a high level overview of the CIS Industry over a short term. No meaningful investment decisions should be made using the eport in isolation. Funds without an updated price for month end, at the time of compiling, have been omitted. Datasource: Morningstar, pre month end sign off; Minimum fund size: 100 milion. page 7
INFLOWS SELECTED ASISA CATEGOIES ONE MONTH AS AT 30 SEPTEMBE 2018 ONE YEA AS AT 30 SEPTEMBE 2018 400 800 1200 1600 2000 4000 6000 8000 10000 Fairtree Equity Prescient Fairtree Equity Prescient SA EQUITY Abax Equity Prescient 36ONE BCI SA Equity Investec SA Equity SA EQUITY Abax Equity Prescient Momentum MoM Specialist Equity Prudential Core Value Allan Gray SA Equity Momentum MoM Opportunistic Fund 400 800 1200 1600 2000 4000 6000 8000 10000 SA HIGH EQUITY Nedgroup Inv Core Diversified Allan Gray Balanced Prudential Balanced SIM Balanced SA HIGH EQUITY Allan Gray Balanced Nedgroup Inv Core Diversified Prudential Balanced Discovery Balanced PSG Balanced Investec Managed 400 800 1200 1600 2000 4000 6000 8000 10000 SA LOW EQUITY Allan Gray Stable Discovery Cautious Balanced H4 Stable Optimum BCI Stable SA LOW EQUITY Allan Gray Stable Nedgroup Inv Core Guarded Momentum SA Defensive Growth ABAX SA Absolute Prescient NFB Ci Stable Sanlam Select Defensive Balanced Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands. page 8
OUTFLOWS SELECTED ASISA CATEGOIES ONE MONTH AS AT 30 SEPTEMBE 2018 ONE YEA AS AT 30 SEPTEMBE 2018-900 - 600-300 - 10000-8000 - 6000-4000 - 2000 Investec Equity Foord Equity SA EQUITY Old Mutual Investors Nedgroup Inv ainmaker PSG Equity SA EQUITY AF Investments Institutional Equity Nedgroup Inv ainmaker SIS Equity Coronation Equity Momentum eal Growth Equity - 900-600 - 300-10000 - 8000-6000 - 4000-2000 SA HIGH EQUITY Investec Opportunity Coronation Balanced Plus Foord Balanced Discovery Balanced SA HIGH EQUITY Foord Balanced Investec Opportunity ezco Value Trend STANLIB Balanced Foord Domestic Balanced Nedgroup Inv Managed - 900-600 - 300-10000 - 8000-6000 - 4000-2000 SA LOW EQUITY Nedgroup Inv Stable Prudential Inflation Plus Coronation Balanced Defensive STANLIB Balanced Cautious SA LOW EQUITY Nedgroup Inv Stable ABSA Absolute Coronation Balanced Defensive Prudential Inflation Plus ABSA Absolute Investec Cautious Managed Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands. page 9
COION INSIGHTS ABOUT COION esponsible for client savings since 2001 COION FUNDS FUND INCEPTION 1 MONTH* 1 YEA 3 YEAS SI** Successful and long term track record Focused on diversification and risk management Provider of alternative and traditional solutions COION ABSOLUTE NCIS FoHF Outperform Cash COION GAVITAS NCIS IF Outperform 50% Equities & 50% Cash NOV 2001-0.7% JUN 2015-0.3% -6% -0.1% 6.7% -6% -0.9% 1% 6.7% 6% 5% 9.4% 7.5% 6.3% 0% Boutique investment firm Primarily management owned COION POSPEITAS NCIS IF Outperform Equities JUN 2013 0% -8% 1% -8.3% 7% 1% 18% 7.4% Passionate about investments COION PIME STABLE ASISA Low Equity MA 2015-5% -4% 0% 0% 6% 5% 8% 0% PIONEEING. PATNEING. PEFOMING. COION PIME GOWTH ASISA High Equity MA 2015-5% -2% -9% -9% 8% 5% 6% 3% CONTACT US SINCE INCEPTION PEFOMANCE GAETH MONTANO 011 447 9991 gmontano@corion.co.za DAVID BACHE 021 831 5401 dbacher@corion.co.za *One month Hedge Fund returns are an estimate. **Since Inception return. eturns are annualised for periods longer than one year. page 10
OTHE IMPOTANT INFOMATION COION CAPITAL Corion Capital (Pty) Ltd (Corion Capital) is an authorised financial services provider in terms of section 8 of the Financial Advisory and Intermediary act, 2002, FSP number 4452 The eport has been designed to provide a high level overview of the CIS Industry over a short term. In isolation, no meaningful investment decisions should be made using the eport. While every effort has been made by Corion Capital to ensure that the information contained in this report is accurate and up to date, no representations or warranties are made or given as to the accuracy and suitability of the information contained therein for any particular purpose. Corion Capital shall under no circumstances whatsoever be liable or responsible for any damages or loss, whether direct or indirect, or whether in contract or in delict, which may be incurred or suffered arising out of the use of this report, or the use of any information contained therein. Corion has a conflict of interest policy which outlines the manner in which conflicts of interest are managed. A copy of the document is available on request. One can also obtain additional information on Corion s products on the Corion website (www.corion.co.za) and all price related queries or information is readily available on request. Corion Capital Details egistration No: 2007/002166/07 Tel: 0027 21 831 5400 Address: The District, Block B, 6th Floor, Email: clientservices@corion.co.za 41 Sir Lowry oad, Woodstock, 7925 Website: www.corion.co.za COION NCIS ETAIL HEDGE FUNDS Corion Capital has entered into a co-named agreement with Novare CIS (F) (Pty) Limited (Novare CIS) regarding the administration of Corion s etail Hedge Funds. Novare CIS is an authorised Management Company registered according to the Collective Investment Schemes Control Act (CISCA) 45 of 200 Novare CIS retails full legal responsibility for the co-named Corion NCIS etail Hedge funds. isk management of the portfolio is done by Novare CIS. Novare CIS has the right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. The Corion NCIS etail Hedge Funds are audited by Price Waterhouse Coopers, administrated by Maitland Hedge Fund Services (Pty) Limited while Firstand Bank Limited are the appointed Trustees. The level of counter party exposure is restricted to funds that are administered by Novare CIS and the respective prime brokers of the underlying portfolio. A portion of the capital is held with respective prime brokers (detail available on request). The Portfolio is allowed to make use of leverage, provided by prime brokers. The Exposure Value-at-isk is limited to 20% per month at 99% confidence level. The liquidity risk management policy and Novare s CIS schedule of fees and charges are available on request. Novare CIS Details egistration No: 2013/191159/07 Tel: 0800 668 273 P.O. Box: 4742, Tyger Valley, 7736, South Africa Email: clientservice@novare.com Directors: ene Miles, Leon de Wit, Derrick oper Website: www.novare.com Geoffrey Carter and Johan Basson. GENEAL Performance numbers and graphs are sourced from Morningstar (Pty) Ltd using NAV to NAV figures. However the returns shown are only signed off after the 5th business day post month end. Consequently distributions for some funds might not be reflected in the return data and some fund returns are subject to change. The investment performance is for illustrative purposes only. The investment performance is calculated after taking the actual initial fees and all ongoing fees into account. The reinvestment of income is calculated on the actual amount distributed per participatory interest by using the ex-dividend date NAV price of the applicable class of the portfolio, irrespective of the actual reinvestment date. Collective Investment Schemes are generally medium to long term investments. The value of participatory interests may go down as well as up. Investors should take cognisance of the fact that there are risks involved in buying or selling any financial product, that the past performance of a financial product is not necessarily indicative of the future performance and that the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. Portfolios which contains offshore exposure can result in additional material and other risks, potential constraints on liquidity and the patriation of funds. COION PIME CIS POTFOLIOS Corion Capital has entered into a co-named agreement with Prime Collective Investment Schemes Management Company (F) (Pty) Limited (Prime) regarding the administration of Corion s Collective Investment Schemes. Prime is an authorised Management Company registered according to the Collective Investment Schemes Control Act (CISCA) 45 of 200 Prime retains full legal responsibility for the co-named Corion Prime CIS s. The Corion Prime CIS s are administrated by Global Independent Administrators (Pty) Ltd while Societe Generale Security Services are the appointed Trustees. Prime Details eg. No. 2005/017098/07 Tel number: 010 594 2100; PostNet Suite 208, Private Bag X9, Email: save@primeinvestments.co.za Benmore, 2010 Website: primeinvestments.co.za page 11