1 EXECUTIVE SUMMAY JULY 2017 THE COION EPOT MONTHLY CIS INSIGHTS / NOVEMBE 2017 PIONEEING. PATNEING. PEFOMING.
2 EXECUTIVE SUMMAY NOVEMBE 2017 The Environment During a volatile month for most asset classes, Equities continued to appreciate and ended 5% higher. The outcome of the local credit rating reviews by S&P (downgrade) and Moody s (unchanged), as well as positive sentiment following indications that Cyril amaphosa is marginally leading the way in the ANC elections, had a contradictory effect on assets sensitive to interest rates. While Bonds lost 0%, Property appreciated 9% and the and strengthened 0%. Cash returned 0.6%. Financials, which are also sensitive to interest rate moves, was the best performing sector, up 9%. Industrials returned 6%, whilst esources lost 5%. The and appreciation was a key driver in some of the largest stock moves. This was evident from the depreciation in rand hedge shares like ichemont, Steinhoff, and Intu Properties. Conversely, retailers Mr Price (18.7%) and Shoprite (16%) were the top performing shares. Interesting Facts and Quotes As illustrated on page three of the report, the performance of an active general equity fund in 2017 can largely be attributed to its weighting in Naspers. Corion estimates that a fund that has a 15% weighting to Naspers (which is still considerably lower than the benchmark allocation), most probably outperformed a fund with no Naspers, by 11%. One of the unintended consequences of Bitcoin s meteoric rise is the surge in global electricity consumption used to mine more Bitcoins. According to Digiconomist s Bitcoin Energy Consumption Index, Bitcoin mining is now using more electricity than 159 individual countries (more than Ireland or Nigeria). US Media mogul Michael Bloomberg: It (Brexit) was the stupidest thing that a country has ever done but then we trumped it. The Dow Jones US Equity Benchmark jumped above the 24,000 mark for the first time at the end of the month ahead of an expected tax cut vote. Half of the 35 major stock market indices have now hit all-time highs during 2017. Asset Classes* FINANCIALS 9% POPETY 9% INDUSTIALS 6% EQUITIES 5% BONDS -0% ESOUCES -5% US $ / AND -9% Best Top 40 M PICE 18.7% SHOPITE 16% BACLAYS 16% DISCOVEY 14% BIDVEST 16% NEDBANK 15% SANLAM 10.7% Equity Industries CONSUME SEVICES 6.9% FINANCIALS 4% INDUSTIALS 1% TELECOMMUNICATIONS 3% BASIC MATEIALS -6% HEALTH CAE -1% CONSUME GOODS -6.7% Worst Top 40 INTU POPETIES PLC -15% ICHEMONT -10.2% NETCAE -9.6% STEINHOFF -8.4% MEDICLINIC -7.2% BID COP -1% ANGLO AMEICAN -6% *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
3 IT COMES DOWN TO DID YOU FUND OWN NASPES? FUND ETUN ELATIVE TO NASPES WEIGHT AVEAGE For 2017, the performance of an active general equity fund can largely be attributed to its weighting in Naspers. Naspers has approximately doubled during the year. AVEAGE AVEAGE AVEAGE COION ESTIMATES THE FOLLOWING: AVEAGE Funds with a weighting to Naspers between 20% and 25%, returned on average 22%. If a fund held no Naspers, an estimate of its return would have been around 7%. For every 1% weighting to Naspers, a fund gained an extra 0.75% in return. Datasource: Morningstar, Minimum fund size: 100 million. eturns measured from 1 Jan 2017 to 21 Nov 2017. Shariah, Index tracker and Fund of funds have been excluded from the analysis.
4 ASSET CLASS ETUNS NOVEMBE 2017 BEST FINANCIALS 9% INDUSTIALS 9.8% INDUSTIALS 36% INDUSTIALS 30% INDUSTIALS 18% POPETY 9% EQUITIES 6.9% EQUITIES 24% EQUITIES 25% POPETY 10.6% INDUSTIALS 6% FINANCIALS 6.0% ESOUCES 18.0% POPETY 17.2% EQUITIES 9.3% EQUITIES 5% US DOLLA 5% FINANCIALS 13% FINANCIALS 17.0% US DOLLA 7.4% BONDS -0% POPETY 2% POPETY 14% ESOUCES 16% FINANCIALS 9% ESOUCES -5% ESOUCES 7% BONDS 3% BONDS 6.0% BONDS 4% WOST US DOLLA -9% BONDS -2% US DOLLA -0.2% US DOLLA -7% ESOUCES -8% 1 MONTH 3 MONTHS YTD 1 YEA 3 YEAS Datasource: Morningstar eturns longer than one year annualised
5 PEFOMANCE ASISA SA EQUITY GENEAL ONE MONTH AS AT 30 NOVEMBE 2017 ONE YEA AS AT 30 NOVEMBE 2017 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Satrix Quality Index Momentum Value Equity Fund Colourfield BCI Equity Ci Engineered Equity Core Sanlam Select Optimised Equity 420 2 715 117 215 462 7.2% 9% 2% 1% 7% 7% 4% 7% 6% 1% Satrix Momentum Index Momentum MoM Emerg Mgr Growth Satrix Quality Index ALUWANI Top 25 Momentum MoM Ultra Long-Term Value 184 2 101 420 438 3 664 30.0% 29.6% 27.1% 26.4% 24% 15% 11% 16% 10.9% 9.9% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Sanlam Institutional Special Opps STANLIB Shari ah Equity Investec Value Oasis Crescent Equity Kagiso Islamic Equity 1 644 476 5 048 5 953 702-1% -5% -0% -9% -8% -6% -0% -5% -4% -3% Sanlam Institutional Special Opps Investec Value Investec Wealth & Invest BCI Dynamic Eq Sentio SCI HIKMA Shariah General Equity SIM Value 1 644 5 048 296 153 2 232-1% 0% 6% 8% 5% -16.6% -15% -19% -16% -10% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors 43 228 20 938 17 371 14 727 13 545 6% 0.1% 7% 7% 6% 0.1% -5% 0.2% 2% 0.1% Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors 43 228 20 938 17 371 14 727 13 545 16.1% 28% 19.4% 20.1% 19% 0.6% 6.4% 9% 7% -5% INDUSTY ETUN ELATIVE INDUSTY ETUN ELATIVE ASISA SA Equity General Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 5% 5% -0% 0.5% -0.1% -5% -0% ASISA SA Equity General Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 15% 25% 6.0% 6.9% 7.1% -9.5% -8.6% 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. *elative Performance is relative to the Category Average
6 FLOWS ASISA SA EQUITY GENEAL ONE MONTH AS AT 31 OCTOBE 2017* ONE YEA AS AT 31 OCTOBE 2017* INFLOWS - ONE MONTH 0 500 1 000 1 500 2 000 INFLOWS - ONE YEA 0 1 000 2 000 3 000 4 000 5 000 6 000 Momentum MoM Opportunistic Equity Prudential Core Value Momentum Trending Equity Fund Momentum MoM Opportunistic Equity ABSA Smart Alpha Equity Fairtree Equity Prescient Momentum MoM Specialist Equity Steyn Capital Equity Prescient Abax Equity Prescient ABSA Multi-Managed Equity OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Ashburton Equity STANLIB MM SA Equity Foord Equity Nedgroup Inv ainmaker SMM Institutional General Equity 2 Allan Gray Equity Investec SA Equity Foord Equity Coronation Top 20 SIS Equity -2 000-1 500-1 000-500 0-6 000-5 000-4 000-3 000-2 000-1 000 0 Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.
7 PEFOMANCE ASISA SA HIGH EQUITY ONE MONTH AS AT 30 NOVEMBE 2017 ONE YEA AS AT 30 NOVEMBE 2017 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Ci High Equity Strategic STANLIB Mod Aggressive FoF Satrix Balanced Index SMMI Domestic Balanced One Wealth Associates BCI Balanced FoF 208 201 1 962 655 442 9% 2% 0% 6% 5% 7% 0% 8% 4% 2% Laurium Balanced Prescient Prescient Balanced SMMI Balanced One SMMI Aggressive Balanced One Satrix Balanced Index 282 181 3 038 1 598 1 962 29% 20.2% 18.9% 18.6% 18.5% 9.0% 7.3% 6.1% 7% 6% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE STANLIB Inflation Plus 5% Imalivest SCI Balanced IP Active Beta Kagiso Balanced Oasis Crescent Balanced High Equity FoF 302 167 164 437 235-8% -7% -6% -5% -3% -0% -0% -9% -7% -6% Imalivest SCI Balanced Oasis Balanced STANLIB Inflation Plus 5% Oasis Crescent Balanced High Equity FoF enaissance BCI Managed 167 876 302 235 271 3% 5% 9% 7.0% 7.1% -15% -8.4% -8.0% -9% -8% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 145 947 92 359 45 365 44 338 22 533 0.6% -0.3% -3% -1% 0.0% 0.3% -0.5% -6% -3% -0.3% Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 145 947 92 359 45 365 44 338 22 533 13% 12% 10.2% 10% 17% 0.4% 3% -6% -8% 0.8% INDUSTY ETUN ELATIVE INDUSTY ETUN ELATIVE ASISA SA Multi Asset High Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 0.3% 5% -0% 0.5% 2% -2% 0.3% ASISA SA Multi Asset High Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 19% 25% 6.0% 6.9% 9.7% -6.9% -6.0% 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. *elative Performance is relative to the Category Average
8 FLOWS ASISA SA HIGH EQUITY ONE MONTH AS AT 31 OCTOBE 2017* ONE YEA AS AT 31 OCTOBE 2017* INFLOWS - ONE MONTH 0 200 400 600 800 1 000 INFLOWS - ONE YEA 0 2 000 4 000 6 000 8 000 10 000 Coronation Balanced Plus Allan Gray Balanced Allan Gray Balanced SMMI Moderate Balanced One Discovery Balanced PSG Balanced Investec Managed SMMI Balanced One SIM Balanced Discovery Balanced OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Foord Balanced Foord Balanced STANLIB Inflation Plus 5% Investec Opportunity Nedgroup Inv Core Diversified STANLIB Balanced STANLIB Balanced AF Investments Focus Nedgroup Inv Balanced ezco Value Trend -1 000-800 -600-400 -200 0-10 000-8 000-6 000-4 000-2 000 0 Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.
9 PEFOMANCE ASISA SA LOW EQUITY ONE MONTH AS AT 30 NOVEMBE 2017 ONE YEA AS AT 30 NOVEMBE 2017 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE STANLIB Mod Conserv FoF JM Busha MET eal eturn Momentum SA Defensive Growth Fund Argon BCI Absolute eturn Old Mutual Capital Builder 1 156 121 4 176 799 2 193 3% 3% 1% 0% 0% 3% 3% 0% 0% 0% Element eal Income SCI STANLIB Mod Conserv FoF STANLIB Balanced Trustees FoF Sasfin BCI Stable 1st Fusion Ci Temperate 170 1 156 553 222 178 15% 10% 19% 17% 14% 8% 2% 2% 0% 7% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Cadiz Stable FNB Stable FoF Element eal Income SCI Oasis Balanced Stable FoF Nedgroup Inv Stable 290 1 125 170 111 26 314-2% -2% -0% -0% -0.9% -2% -2% -0% -0% -0% Oasis Balanced Stable FoF STANLIB Medical Investment FNB Stable FoF Sanlam Stable Growth Tantalum BCI Cautious 111 509 1 125 539 116 1% 7% 9% 6.1% 6.4% -6% -0% -9% -6% -4% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus 46 383 37 424 37 041 26 314 14 361 0.1% -0.8% -0.8% -0.9% -0.3% 0.0% -0.8% -0.8% -0% -0.3% Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus 46 383 37 424 37 041 26 314 14 361 10% 9.7% 9.3% 8.5% 10.5% 3% 0.0% -0.4% -2% 0.8% INDUSTY ETUN ELATIVE INDUSTY ETUN ELATIVE ASISA SA Multi Asset Low Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 0.0% 5% -0% 0.5% 4% -0% 0.5% ASISA SA Multi Asset Low Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 9.7% 25% 6.0% 6.9% 18% -8% -8% 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. *elative Performance is relative to the Category Average
10 FLOWS ASISA SA LOW EQUITY ONE MONTH AS AT 31 OCTOBE 2017* ONE YEA AS AT 31 OCTOBE 2017* INFLOWS - ONE MONTH 0 200 400 600 800 1 000 1 200 1 400 INFLOWS - ONE YEA 0 2 000 4 000 6 000 8 000 PSG Stable Momentum SA Defensive Growth Fund Abax Absolute eturn Prescient PSG Stable Momentum SA Defensive Growth Fund STANLIB MM Defensive Balanced Allan Gray Stable SIM Inflation Plus Sanlam Select Defensive Balanced Abax Absolute eturn Prescient OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA ABSA Absolute Nedgroup Inv Stable Nedgroup Inv Stable ABSA Absolute STANLIB Balanced Cautious Coronation Balanced Defensive Prudential Inflation Plus Prudential Inflation Plus Nedgroup Inv Core Guarded STANLIB Balanced Cautious -1 400-1 200-1 000-800 -600-400 -200 0-8 000-6 000-4 000-2 000 0 Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.
11 ABOUT COION Corion is a market leading, multi-strategy investment company. Previously a division of Brait SA Ltd, the business was founded in 2001 and was one of the pioneers of the South African Alternative Investment Industry. Over this period, Corion has built up substantial experience and expertise in the management of specialised investment solutions. The company, which has had the pleasure of investing assets on behalf of some of South Africa s largest Institutions and Pension Funds, continuously aims to discover new ideas, themes and innovative solutions. This has, and will continue to be, the driver of our proud and consistent track record. COION FUNDS FUND INCEPTION 1 MONTH* 3 MONTHS 1 YEA 2 YEAS SI** COION ABSOLUTE NCIS FoHF Outperform Cash COION GAVITAS NCIS IF Outperform 50% Equities & 50% Cash COION POSPEITAS NCIS IF Outperform Equities COION PIME STABLE ASISA Low Equity COION PIME GOWTH ASISA High Equity NOV 2001-0% 0.5% JUN 2015-3% 0% JUN 2013-1% 5% MA 2015-0.2% 0.0% MA 2015 0.1% 0.3% 0.4% 6% 0.0% 3% -1% 6.9% 9% 3% 5% 0% 6.3% 6.9% 6.4% 17% -5% 25% 10.3% 9.8% 11% 10% 7.5% 6.8% 9.0% 8.9% 1% 10.6% 7.4% 6.3% 7.5% 6.5% 10.0% 7.5% 8.9% 7.8% 18% 14% 7.0% 6.3% 6.8% 6.0% *One month Hedge Fund returns are an estimate. **Since Inception return. eturns are annualised for periods longer than one year. CONTACT US SINCE INCEPTION PEFOMANCE Garreth Montano Business Development David Bacher Chief Investment Officer 16% 14% 12% 10% 8% 6% 4% 2% 0% 18% 14% 10.0% 8.9% 7.0% 6.3% 6.8% 7.5% 7.8% 6.0% Stable Growth Absolute Gravitas Prosperitas 011 447 9991 gmontano@corion.co.za 021 831 5401 dbacher@corion.co.za CIS Fund Benchmark IF
12 DISCLAIME & 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 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 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. 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