1 EXECUTIVE SUMMAY JULY 2017 THE COION EPOT MONTHLY CIS INSIGHTS / JUNE 2018 PIONEEING. PATNEING. PEFOMING.
2 EXECUTIVE SUMMAY JUNE 2018 The Environment The Equity market ended up 8%, despite an escalating trade war between the US and China that is weighing on emerging market assets. However, other asset classes suffered as Bonds and Property declined 2% and 5% respectively. The decline in both these asset classes was likely influenced by a 7.5% depreciation in the and. Cash yielded 0.5%. esources returned 6.4% for the month and concluded a strong quarter, surging 27%. Industrials ended the month up 9%. Financials were down 8% on the month and were generally weaker during the quarter, ending 6.6% down. Index heavy weight and rand hedge shares such as Naspers (12%), BHP Billiton (7.4%) and British American Tobacco (8.0%) helped the market into positive territory. However, companies with a domestic focus such as Vodacom (-15%) and Nedbank (-8.8%) were among the shares that had the largest declines. Many large companies have depreciated by more than 15% during the first half of 2018. On page three, Corion provides the names and the degree of the share price moves. Interesting Facts and Quotes During the month of June, volatility increased. On average the Banks Sector depreciated or appreciated by 8% per day. In the early 2000 s, South Africa was the largest producer of gold. Today, it is only the seventh largest. Facebook, Amazon, Apple, Alphabet, Microsoft, Baidu, Alibaba and Tencent are worth more than the stock markets of Japan and the entire Eurozone. The United States, according to the Small Arms Survey, has 120 firearms per 100 people! Yemen has the second most with 5 Asset Classes* US $ / AND 8.1% ESOUCES 6.4% INDUSTIALS 9% EQUITIES 8% BONDS -2% FINANCIALS -8% POPETY -5% Best Top 40 NASPES 12% SAPPI 9.9% SASOL 9.9% GOLD FIELDS 8.9% BID COP 8.4% BITISH AMEICAN TOBACCO 8.0% BHP BILLITON 7.4% Equity Industries CONSUME SEVICES 9.4% BASIC MATEIALS 6.0% CONSUME GOODS 7% INDUSTIALS -5% FINANCIALS -9% HEALTH CAE -0% TELECOMMUNICATIONS -7.2% Worst Top 40 VODACOM -15% LIFE HEALTHCAE -14% NEDBANK -8.8% M PICE -8.2% TUWOTHS -8.1% SANLAM -7.9% STANDAD BANK -7.5% *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 DAWDOWNS FO MANY LAGE COMPANIES IN 2018-37.8% Impala Platinum -26.0% Tiger Brands -22% Imperial COMPANIES WITH A MAKET CAPITALISATION GEATE THAN 15BN: 13 depreciated by more than 25% 30 depreciated by more than 15% 39 depreciated by more than 10% 61 are negative for the year to date -20.0% -19.7% -18.6% -18.5% -18.0% -17.5% -16.6%% -16.6% -16.4% -16.1% -16.0% -15% Discovery Capitec Massmart Kumba Iron Ore MTN and Merchant Sanlam Assore Barloworld Truworths Int MMI BAT -40% -35% -30% -25% -20% -15% -10% -5% 0% Data provided by Morningstar from 31 Dec 2017 to 30 June 2018
4 ASSET CLASS ETUNS JUNE 2018 BEST US DOLLA 8.1% ESOUCES 27% ESOUCES 18.5% ESOUCES 46% BONDS 7.8% ESOUCES 6.4% US DOLLA 10.6% US DOLLA 15% FINANCIALS 16.8% EQUITIES 6.7% INDUSTIALS 9% INDUSTIALS 3% BONDS 0% EQUITIES 10% INDUSTIALS 6.3% EQUITIES 8% EQUITIES 5% EQUITIES -7% BONDS 10.2% ESOUCES 6.0% BONDS -2% POPETY -2% INDUSTIALS -9% INDUSTIALS 8.8% US DOLLA 1% FINANCIALS -8% BONDS -8% FINANCIALS -7.6% US DOLLA 5% FINANCIALS 8% WOST POPETY -5% FINANCIALS -6.6% POPETY -24% POPETY -9.9% POPETY 0.9% 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 JUNE 2018 ONE YEA AS AT 30 JUNE 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Stonehage Fleming SCI Equity 36ONE BCI Equity Sasfin BCI Equity BCI Enhanced Equity Nedgroup Inv Private Wealth Equity 300 1 180 195 283 1 959 8% 9% 8% 6% 8% 5% 7% 5% 3% 5% CoreShares S&P SA Top 50 ClucasGray Equity Prescient Old Mutual AFI 40 Index Fairtree Smart Beta Prescient Momentum Value Equity Fund 390 624 955 138 2 527 20% 19.2% 18.4% 18.2% 18.2% 18% 10% 10.2% 10.1% 10.0% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Bridge Equity Income Growth Sanlam Institutional Special Opps Momentum Value Equity Fund Ci Engineered Equity Core Investec Wealth & Invest BCI Dynamic Eq 344 632 2 527 197 356-7% -4% -9% -6% -4% -0% -7% -2% -8% -6% Investec Value Harvard House BCI Equity Investec SA Value Sanlam Select Thematic Equity Steyn Capital Equity Prescient 3 483 140 225 283 1 306-19.8% -10.2% -6.1% -8% -4% -27.9% -18.4% -12% -10% -16% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors 42 717 19 995 17 475 12 952 12 621 9% 0.9% 8% 1% 0% 6% -0.3% 0.5% -0.1% -0.3% Allan Gray Equity Coronation Top 20 Prudential Core Value Nedgroup Inv ainmaker Old Mutual Investors 42 717 19 995 17 475 12 952 12 621 15% 9.3% 10% 7.7% 1% 3% 1% 9% -0.5% -1% 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 3% 8% -2% 0.5% 5% -5% -0.8% ASISA SA Equity General Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 8.2% 10% 10.2% 6.7% 6.9% 0% -5% 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 MAY 2018* ONE YEA AS AT 31 MAY 2018* INFLOWS - ONE MONTH 0 100 200 300 400 INFLOWS - ONE YEA 0 2 000 4 000 6 000 PSG Equity Prudential Core Value Fairtree Equity Prescient Abax Equity Prescient Investec Equity Fairtree Equity Prescient CoreShares S&P SA Top 50 Momentum MoM Specialist Equity Mazi Capital Prime Equity Momentum MoM Opportunistic Equity OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Marriott Dividend Growth AF Investments Institutional Equity SIS Equity Nedgroup Inv ainmaker Nedgroup Inv ainmaker Foord Equity BCI Best Blend Specialist Equity SIS Equity Nedgroup Inv Value Momentum eal Growth Equity -400-300 -200-100 0-6 000-4 000-2 000 0 Datasource: Morningstar, pre month end sign off. *Flow data is one month delayed. All flows reported in millions in ands.
7 PEFOMANCE ASISA SA HIGH EQUITY ONE MONTH AS AT 30 JUNE 2018 ONE YEA AS AT 30 JUNE 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Cadiz Balanced Sanlam Private Wealth Balanced ezco Value Trend Allan Gray Balanced Foord Balanced 436 566 5 727 152 575 37 613 2% 9% 9% 7% 6% 2% 9% 9% 7% 6% Aylett Balanced Prescient ClucasGray Equilibrium Prescient Laurium Balanced Prescient Investec Managed SMMI Prudential Balanced 1 455 399 374 14 019 871 13% 14% 19% 16% 15% 7.9% 7.0% 6.5% 3% 2% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Bridge Managed Growth Ci High Equity Strategic Plexus Wealth BCI Balanced Centaur BCI Balanced Imalivest SCI Balanced 1 726 194 223 1 563 159-8% -4% -0.6% -0.2% 0.2% -8% -4% -6% -2% -8% SA Asset Management BCI Managed Warwick BCI Balanced Sharenet BCI Aggressive FoF Plexus Wealth BCI Balanced Capita BCI Balanced 249 406 109 223 141 0.4% 8% 3% 5% 9% -7.0% -6% -1% -9% -5% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 152 575 91 186 44 338 37 613 23 908 7% 2% 6% 6% 3% 7% 0.2% 6% 6% 0.3% Allan Gray Balanced Coronation Balanced Plus Investec Opportunity Foord Balanced Discovery Balanced 152 575 91 186 44 338 37 613 23 908 10.1% 8.6% 7.4% 6.2% 9.7% 7% 2% 0.0% -2% 3% BENCHMAKS ETUN ELATIVE BENCHMAKS 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% 8% -2% 0.5% 0.8% -2% -5% ASISA SA Multi Asset High Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 7.4% 10% 10.2% 6.7% 7.6% 8% -0.7% 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 MAY 2018* ONE YEA AS AT 31 MAY 2018* 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 Allan Gray Balanced Allan Gray Balanced Nedgroup Inv Core Diversified PSG Balanced ABSA MM Absolute eturn Prudential Prudential Balanced PSG Balanced Discovery Balanced Prudential Balanced Nedgroup Inv Core Diversified OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Foord Balanced Foord Balanced ezco Value Trend Investec Opportunity Nedgroup Inv Managed ezco Value Trend Investec Opportunity STANLIB Balanced Seed Balanced AF Investments Focus -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.
9 PEFOMANCE ASISA SA LOW EQUITY ONE MONTH AS AT 30 JUNE 2018 ONE YEA AS AT 30 JUNE 2018 BEST PEFOMING ETUN ELATIVE BEST PEFOMING ETUN ELATIVE Cadiz Stable Counterpoint SCI Cautious ezco Stable Allan Gray Stable NGI Private Wealth Defensive FoF 297 369 114 49 265 619 7% 5% 4% 3% 9% 3% 2% 1% 9% 5% JM Busha BCI eal eturn Sanlam Select Defensive Balanced Allan Gray Stable Financial Fitness Stable IP FoF Sasfin BCI Stable 109 1 902 49 265 267 265 19% 15% 13% 10.9% 10.8% 7.0% 6% 4% 0% 9% WOST PEFOMING ETUN ELATIVE WOST PEFOMING ETUN ELATIVE Bridge Stable Growth Ci Cautious Old Mutual eal Income Sanlam Stable Growth PSG Stable 1 064 730 4 783 557 4 644-8% -0.7% -0.4% 0.0% 0.0% -1% -1% -7% -3% -3% Plexus Wealth BCI Conservative Allan Gray Optimal Seed Stable Kagiso Stable Trésor SCI Stable 205 1 174 345 218 142 3% 4% 1% 7% 0% -6% -5% -8% -2% -9% LAGEST FUNDS ETUN ELATIVE LAGEST FUNDS ETUN ELATIVE Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus 49 265 35 625 35 312 23 299 13 685 3% 0.9% 0% 5% 5% 9% -0.4% 0.7% 2% 1% Allan Gray Stable Prudential Inflation Plus Coronation Balanced Defensive Nedgroup Inv Stable SIM Inflation Plus 49 265 35 625 35 312 23 299 13 685 13% 6.3% 7.8% 7.6% 7.7% 4% -0.6% 0.9% 0.7% 0.8% BENCHMAKS ETUN ELATIVE BENCHMAKS 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 4% 8% -2% 0.5% 4% -5% -0.8% ASISA SA Multi Asset Low Eq Category Ave Equities - FTSE/JSE All Share Index Bonds - JSE All Bond Index Cash - STeFI Call Deposit Index 6.9% 10% 10.2% 6.7% 8.1% 3% -0.2% 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 MAY 2018* ONE YEA AS AT 31 MAY 2018* INFLOWS - ONE MONTH 0 200 400 600 800 INFLOWS - ONE YEA 0 2 000 4 000 6 000 Allan Gray Stable Momentum SA Defensive Growth Fund Ci Cautious ABAX SA Absolute Prescient Fund Sanlam Select Defensive Balanced Abax Absolute eturn Prescient Nedgroup Inv Core Guarded Sanlam Select Defensive Balanced Momentum SA Defensive Growth Fund PSG Stable OUTFLOWS - ONE MONTH OUTFLOWS - ONE YEA Prudential Inflation Plus Nedgroup Inv Stable Nedgroup Inv Stable ABSA Absolute Coronation Balanced Defensive STANLIB Balanced Cautious SIM Inflation Plus Prudential Inflation Plus ABSA Absolute Coronation Balanced Defensive -800-600 -400-200 0-6 000-4 000-2 000 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 0.1% 0.5% JUN 2015 JUN 2013 MA 2015 MA 2015-0.8% 6% 9% 8% 0.9% 4% 3% 0% 0.0% 6% -0% 1% -0.3% 6% 3% 7% 7% 5% 2% 6.8% -0.2% 10% -6.2% 11% 7.4% 6.8% 6.8% 7.2% 1% 6.8% 2% 7.7% -4% 8.2% 6.6% 2% 0% 3% 9.6% 7.5% 6.6% 6.6% 13% 9.6% 6.4% 4% 0% 2% *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 011 447 9991 gmontano@corion.co.za David Bacher Chief Investment Officer 021 831 5401 dbacher@corion.co.za
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