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Absa Single Manager : Fund Map

December 2010

Absa Single Manager : Fund Map

FIXED INTEREST EQUITY

INVESTMENT OBJECTIVE Duration Capital RISK TERM

90 day Bankers Acceptance Rate L 3 mnths +

Tax efficiency (See Fund Fact Sheet) L 6 mnths +

1 Year Fixed Deposit L ↔ M 6 mnths +

BESA All Bond Index L ↔ M 24 mnths +

CPI + 3% p.a. 36 month rolling L 2 yrs +

CPI + 4% p.a. 36 month rolling L ↔ M 3 yrs +

CPI + 5% p.a. 5 yr rolling M 4 yrs +

CPI + 6% p.a. 5 yr rolling M ↔ H 5 yrs +

FTSE/JSE SA Listed Prop. Index M ↔ H 5 yrs +

FTSE/JSE All Share Index H 5 yrs +

FTSE/JSE All Share Index H 5 yrs +

FTSE/JSE Top 40 Index H 5 yrs +

Currencies 90 Day Deposit Rate L ↔ M *** open

Citigroup World Gov. Bond 3-7 yrs M 3 yrs +

MSCI World Index Dollars H 5 yrs +

x x

M Q BI

M

10 - 20

10 - 50

40 - 65

75 - 95

75 - 95

75 - 95

LOW MED HIGH

M

Q

x x

45 - 75

LOW MED HIGH

Q

Q

BI

BI

Q

BI

75 - 95

75 - 95

BI

FIXED INTEREST

Absa Money Market

Absa Dividend Income *

Absa Income Enhancer *

Absa Bond

ASSET ALLOCATION

Absa Inflation Beater

Absa Absolute **

Absa Balanced*

Absa Managed

Absa Currency Income

Funds ****

Absa Global Bond

Absa International

Absa Property **

Absa General

Absa Select

Absa Rand Protector

OFFSHORE #

EQUITY

INVESTMENT OBJECTIVE - Targeted funds benchmark aligned to the Funds mandate, risk profile and term - merely a guide. Refer to Fund Fact Sheet for additional info.

DURATION -Sensitivity to interest rate movement of the underlying fixed interest instruments | INCOME based. Distribution frequency M=Monthly Q=Quarterly BI=Bi-annually

CAPITAL - Risk / exposure to equity securities | GROWTH based. Bands represent the funds exposure to underlying equity instruments.

RISK - Funds overall risk rating | Low (L) to High (H) - refer to relevant fund fact sheet

TERM - In-line with product mandate & specific investment objective. In-line with industry guidelines based on sector.

Equity Funds distribute bi-annually baring the Property Fund which is quarterly.

* Underlying capital secure however valuations may fluctuate inline with unit price (NAV) and fund mandate.

** Quarterly distributions generated from rental income and not from fixed interest instruments.

*** Currency income funds benchmarked against respective deposits. Used for short to long term currency hedge (Dollar, Euro, Pound).

# Offshore Funds subject to capital fluctuation inline with unit price (NAV) - currency & underlying asset.

DISCLAIMER - The Single Manager Fund Map provides factual insight into the funds particular mandate and management parameters, conceptualizing Absa Single Managers product offering into a structured

framework. The Fund Fact Sheet must be consulted for further detailed and up-to date information as this is a static overview for illustration purposes only as it does NOT provide financial advice.

The Map doesn't constitute any recommendation or proposal to enter into any transaction. AFM does not accept any liability, responsibility for any loss, damage or expense whatsoever direct or indirect or

consequential incurred in relying on the information or in the use thereof. Any person making use of the information does so entirely at their own accord. All information is subject to change without notice.

Q

10 - 20

M Q BIBI M Q BI

M Q BI

10 - 95

Absa Money Market Fund 31 December 2010

Fund objectives

This fund aims to deliver a higher level of income compared to fixed deposits

and call deposits over the short to long term within stringent credit and

liquidity parameters, while protecting the initial capital and providing

immediate liquidity. The Fund achieves this by investing in high quality (of at

least A1 rated) short-term money market instruments. The Fund has a

maximum weighted term of 90 days.

Fund facts

Industry category Domestic - Fixed Income -Money Market

Performance target STeFI Composite Index

Inception date 2 May 1997

Fund size R 66,7 billion

JSE code ABMM

Fund manager Rehana Rungasamy - BCom, SAIFM

Asset management

company

Absa Asset Management (Pty) Ltd

Fund details

Minimum lump sum

investment

R 100 000

Minimum monthly

debit order

R 1 000

Income declaration The last day of every month

Income distribution The first day of the following month

Performance: total returns to 31 December 2010 (%)

Term

Absa

Money Market

Fund

Sector

Average Rank

Since inception 10.72 9.58 1/22

1 year 6.76 6.87 15/22

3 years 9.06 9.25 17/21

5 years 8.82 8.88 14/18

* Figures are annualised Source: Morningstar

Fees and total expense ratio

Initial fees: Absa Fund Managers: 0.16% (VAT incl.)

Adviser: 0.24% (VAT incl.)

Annual management fee**: 0.57% (VAT incl.)

Total expense ratio: 0.58%

Low Low-Medium Medium Medium-High High

3 Months + 6 Months + 2 Years + 3 Years + 5 Years +

Risk profile and advisable minimum term

X

X

Absa Money Market Fund vs Benchmark

Absa Bank 20.37

Firstrand Limited 4.20

Investec Bank 6.30

Nedbank 28.50

Rand Merchant Bank 3.71

Republic of SA 4.57

Standard Bank 29.29

Major exposures (%)

Duration analysis

Average nominal yield for the month (annualised) 5.79%

Nominal Yield

Absa Money Market Fund / page 1 of 2

31 January 2010 0.60

28 February 2010 0.54

31 March 2010 0.59

30 April 2010 0.55

31 May 2010 0.56

30 June 2010 0.55

31 July 2010 0.56

31 August 2010 0.56

30 September 2010 0.52

31 October 2010 0.53

30 November 2010 0.50

31 December 2010 0.49

Total 6.55

Monthly distributions (c.p.u)

100120140160180200220240260280

Feb-2

000

No

v-2

000

Aug

-2001

May-2

002

Mar-

2003

Dec-2

003

Sep

-2004

Jun

-2005

Mar-

2006

Dec-2

006

Sep

-2007

Jun

-2008

Mar-

2009

Dec-2

009

Sep

-2010

Jun

-2011

ABSA Money Market STeFI Composite Index

5.20%

1.69%

14.56%

73.92%

4.63%

9 - 12 Months

6 - 9 Months

3 - 6 Months

0 - 3 Months

Cash

Fund commentary

Consumer Price inflation (CPI) for the month of November accelerated slightly to 3.5% from 3.4% in October emanating from some

upside risk in food prices. This dampened the hopes for further monetary policy easing next year.

Bond yields came under pressure in the middle of the month on the back of the sell-off in US Treasuries, but recovered towards the

end of the month as year-end buying supported bond yields. The yield on the benchmark R157 bond closed 10 basis points lower at

7.31%

The market now expects the Monetary Policy Committee Bank to keep the Repo rate at 5.5% in 2011. The money market yield curve

thus remained flat over the month. The 1 year NCD rate closed at 5.875%, while the 3 month NCD rate closed unchanged at 5.55%.

DISCLAIMER

The Absa Money Market Fund is a low risk fund. The maximum initial charge is 0.40% (incl. VAT) of consideration received and will include a maximum

of 0.24% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.57% (incl. VAT) will be calculated and accrued daily

against the assets of the fund. **The annual management fee does not include the financial adviser‟s ongoing fee. This fund has a maximum weighted

term to maturity of 90 days. The Absa Money Market Fund requires a minimum opening balance of R100 000. The price of each unit is aimed at a con-

stant value (R1). The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular

instrument. The effect will be an increase or decrease of the daily yield and in extreme circumstances there can be a reduction of the capital value of

the fund. Past performance is not necessarily a guide to future performance. Income is distributed monthly and any income may be paid out into an

account as nominated by the investor or be represented by additional units. All requests for transactions received on or before 16:00 every day will be

traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. The

yield is calculated using an annualized seven day rolling average as at 31/12/2010. Figures quoted are from Morningstar. This product is not for sale to

USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges, levies and fees incurred by the portfolio re-

lated to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV of the portfolio over this period. A higher

TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot be regarded as an indication of fu-

ture TER's. Consult the Management Company for details. Absa Fund Managers is a member of the Association for Savings and Investment SA.

Absa Money Market Fund 31 December 2010

Contact details

Absa Fund Managers Limited Contact Centre: 0860 111 456 / Fax: (011) 480 5440

Reg no 1991/000881/06 Email: [email protected] / Website: www.absainvestments.co.za

Authorised Financial Services Provide - Reg No 330 Trustees

Absa Investment Campus, 65 Empire Road, Parktown, 2193 Standard Bank Trustees Services

PO Box 6115, Johannesburg, 2000 PO Box 54, Cape Town, 8000

Absa Money Market Fund / page 2 of 2

http://www.absainvestments.co.za/

Absa Dividend Income Fund 31 December 2010

Fund objectives

The fund aims to offer investors short to medium term competitive after tax

return, capital preservation and liquidity. The fund invests in assets that

deliver a high level of income, primarily in the form of dividends but may

include some interest.

Fund facts

Industry category Domestic - Fixed Interest -

Varied Specialist

Performance target 50% of Prime

Inception date 31 July 2002


JSE code ABFI

Fund manager Greg Kettles - B Com (Hons), CA(SA),

CFA

Asset management

company


Fund details

Minimum lump sum

investment

R 50 000

Minimum monthly

debit order

R 2 000

Income declaration 31 March, 30 June, 30 September

& 31 December

Income distribution 1 April, 1 July, 1 October & 1 January

Major exposures


Term Absa Dividend

Income Fund*

Since inception 6.61

1 year 3.93

3 years 6.27

5 years 6.26


Income distributions

Quarter ending Distribution c.p.u NAV

31 March 2010 1.15 101.2680

30 June 2010 0.79 101.1147

30 September 2010 1.01 101.2851

31 December 2010 0.88 101.0996



Adviser: 0 - 0.34% (VAT incl.)






X

X

Absa Dividend Income Fund yield (%)

Note : The NAV for the Absa Dividend Income Fund as at 31 December

2010: 101.0996 c.p.u

Absa Dividend Income Fund / page 1 of 2

3%

33%

17%

17%

30%

Absa Bank Firstrand Bank Investec Limited

Nedbank Limited Standard Bank

0

2

4

6

8

10

12

De

c-0

2

Jun

-03

De

c-0

3

Jun

-04

De

c-0

4

Jun

-05

De

c-0

5

Jun

-06

De

c-0

6

Jun

-07

De

c-0

7

Jun

-08

De

c-0

8

Jun

-09

De

c-0

9

Jun

-10

De

c-1

0

Jun

-11

De

c-1

1

Absa Dividend Income Fund

Investment universe

The fund primarily invests in instruments issued and/or underwritten by banks and similar financial institutions such as the large life

insurers. The primary returns received from the instruments are dividends. The fund is permitted to invest in instruments that are

linked to interest rate cycles in the market.

Key features

The fund offers a regular income in the form of dividends as opposed to interest or rental income.

The fund will have a similar risk profile to that of money market unit trusts, however, it will aim to deliver a better net after tax yield.

The fund will to a large extent track the local interest rate cycles.

The risk profile of the fund is low.

Why invest in this fund?

If you wish to receive a better net after tax yield in a money market type investment offering liquidity and capital protection, the Absa

Dividend Income Fund is your answer.

DISCLAIMER

The Absa Dividend Income Fund is a low risk fund. The maximum initial charge is 0.57% (incl. VAT) of consideration received and will include a maxi-

mum of 0.34% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.71% (incl. VAT) against the assets of the fund will be

calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may in-

struct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Dividend Income Fund requires a minimum balance of R50

000. The primary objective of the Fund is to invest in assets that deliver a high level of income, primarily in the form of dividends but including some

interest, and are consistent with capital preservation and liquidity. Capital gains will be of an incidental nature. Forward pricing is used. Unit trust prices

are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible

deductions from the portfolio. Income is distributed quarterly and any income will be represented by additional units. Past performance is not necessar-

ily a guide to future performance. All requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after

16:00 on that day. Unit trusts are generally medium to long-term investments. Figures quoted are from Morningstar, for the period ending 31/12/2010.

Where no figures appear this is due to the fund not being in existence over the specified period. Unit trust portfolios maybe affected by uncertainties

such as changes in government and taxation policies and other regulatory developments, the effect of which could result in the closure of unit trust

portfolios for new investments. The tax-exempt status of dividend income may at sometime in the future be changed by SARS. This product is not for

sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges, levies and fees incurred by the portfo-

lio related to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV of the portfol io over this period. A

higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot be regarded as an indication

of future TER's. Consult the Management Company for details. Absa Fund Managers is a registered member of the Association for Savings and

Investment SA.

Absa Dividend Income Fund 31 December 2010

Contact details






Absa Dividend Income Fund / page 2 of 2


*Index performance of Fund & Benchmark based to 100 at April 2004

Absa Income Enhancer Fund 31 December 2010

Fund objectives

The Absa Income Enhancer aims to provide investors with a high interest

income return over the short to medium term. The investable universe of the

fund will include interest bearing and non-equity securities, including but not

limited to bonds, cash deposits and money market instruments. Modified

duration of the fund will not exceed 2 years.

Fund facts

Industry category Domestic - Fixed Interest -Varied

Specialist

Performance target 1 year Fixed Deposit Index

Inception date 1 April 1993


JSE code ABSC

Fund manager Rehana Rungasamy - BCom, SAIFM

Asset management

company


Fund details

Minimum lump sum R 10 000

Minimum monthly R 500

Income declaration The last day of every month

Income distribution The 2nd working day of the following

month

Duration analysis

Cumulative performance


Term Absa Income Enhancer

Fund

Since inception 11.39

1 year 7.17 *

3 years 9.64

5 years 8.82



Initial fees: Absa Fund Managers: 0% (VAT incl.)







X

X

Absa Income Enhancer Fund / page 1 of 2

100

110

120

130

140

150

160

170

180

Ap

r-0

4

Oct

-04

Ap

r-0

5

Oct

-05

Ap

r-0

6

Oct

-06

Ap

r-0

7

Oct

-07

Ap

r-0

8

Oct

-08

Ap

r-0

9

Oct

-09

Ap

r-1

0

Oct

-10

Ap

r-1

1

Absa Income Enhancer Fund

Risk statistics

Modified duration 0.14

Date c.p.u

Nominal

distribution as a %

of clean price

Monthly %

clean price

movement

Jan 2010 0.69 0.64% 0.03%

Feb 2010 0.62 0.57% 0.01%

Mar 2010 0.69 0.63% 0.07%

Apr 2010 0.64 0.59% -0.02%

May 2010 0.66 0.61% -0.01%

Jun 2010 0.61 0.56% 0.03%

Jul 2010 0.63 0.58% 0.04%

Aug 2010 0.61 0.56% 0.07%

Sept 2010 0.56 0.51% 0.03%

Oct 2010 0.55 0.51% 0.01%

Nov 2010 0.53 0.49% 0.01%

Dec 2010 0.53 0.49% -0.04%

Total 7.32 6.73% 0.23%

Analysis of Absa Income Enhancer Fund’s 1 year return

1 year income return on the reinvestment of

monthly interest 6.94%

1 year capital return of the clean price 0.23%

Absa Income Enhancer Fund 7.17% *

1.40%

0.00%

19.74%

76.45%

2.41%

9 - 12 Months

6 - 9 Months

3 - 6 Months

0 - 3 Months

Cash

Fund commentary

Consumer Price inflation (CPI) for the month of November accelerated slightly to 3.5% from 3.4% in October emanating from some

upside risk in food prices. This dampened the hopes for further monetary policy easing next year.

Bond yields came under pressure in the middle of the month on the back of the sell-off in US Treasuries, but recovered towards the

end of the month as year-end buying supported bond yields. The yield on the benchmark R157 bond closed 10 basis points lower at

7.31%

The market now expects the Monetary Policy Committee Bank to keep the Repo rate at 5.5% in 2011. The money market yield curve

thus remained flat over the month. The 1 year NCD rate closed at 5.875%, while the 3 month NCD rate closed unchanged at 5.55%.

DISCLAIMER

The Absa Income Enhancer Fund is a low risk fund. No initial charge is levied though investments through intermediaries could include a maximum of

1.14% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.75% (incl.VAT) against the assets of the Fund will be calcu-

lated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The investor may instruct

Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Income Enhancer Fund requires a minimum balance of R10 000.

Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units)

may go down as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a

net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the

portfolio. Income is distributed monthly and any income may be paid out into an account as nominated by the investor or be represented by additional

units. All requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts

are traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may bor-

row up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of

underlying international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be

fully taxable under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income

distributions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the

charges, levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against the

average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The

current TER cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a member of

the Association for Savings and Investment SA.

Absa Income Enhancer Fund 31 December 2010

Contact details






Absa Income Enhancer Fund / page 2 of 2


Fund objectives

The fund aims to offer investors medium to long-term return, capital and

income growth by exploiting anticipated changes in the pattern of interest

rates. The funds invests in interest bearing securities of differing terms to

maturity, taking into account changes in interest rates, credit risk and liquidity.

Fund facts

Industry category Domestic - Fixed Income - Bond

Performance target BESA All Bond Index

Inception date 14 May 2002

Fund size R 69 million

JSE code ABBA

Fund manager Errol Shear - B.Bus.Sc. (Finance) (Hon),

CA (SA), CFA

Asset management

Company


*Index performance of Fund & Benchmark based to 100 at inception of fund

Absa Bond Fund 31 December 2010

Top holdings (%)

Absa Bank Ltd Bond 5.86

First Rand Bank Ltd Bond 7.86

RSA R157 13.5% 150915 20.47

RSA R186 10.5% 211226 11.72

RSA R201 8.7% 211214 6.14

RSA R203 8.2% 150917 4.53

RSA R204 8.0% 211218 4.35

RSA R206 7.5% 150114 3.06

RSA R207 7.2% 150120 5.68

RSA R208 6.7% 310321 2.67


Term

Absa

Bond

Fund

Benchmark Sector

Average Rank

Since inception 10.58 8.40 10.98 11/13

1 year 13.41 14.97 14.70 14/16

3 years 8.35 10.01 10.12 16/16

5 years 6.74 7.91 8.03 15/15

*Figures are annualised Source: Morningstar





Total expense ratio: 0.99 %

Asset allocation

Cumulative performance since inception*

Risk statistics

Additional Information Fund since inception

Number of positive months 69/103

Maximum rolling 3 month gain 10.50%

Maximum rolling 3 month loss -5.38%




X

X


Income distribution for the 3 months ended 31 Mar 2010 2.51 c.p.u

Income distribution for the 3 months ended 30 Jun 2010 2.16 c.p.u

Income distribution for the 3 months ended 30 Sep 2010 2.46 c.p.u

Income distribution for the 3 months ended 31 Dec 2010 2.17 c.p.u

Fund details

Minimum lump sum

investment R 1 000

Minimum monthly

debit order R 500

Income declaration 31 March, 30 June, 30 September &

31 December

Income distribution 15 April, 15 July, 15 October &

15 January

Absa Bond Fund / page 1 of 2

5.60%

94.40%

Cash

Bonds

100

120

140

160

180

200

220

240

260

Ju

n-0

2

No

v-0

2

Ap

r-0

3

Se

p-0

3

Fe

b-0

4

Ju

l-0

4

De

c-0

4

Ma

y-0

5

Oct-

05

Ma

r-0

6

Au

g-0

6

Ja

n-0

7

Ju

n-0

7

No

v-0

7

Ap

r-0

8

Se

p-0

8

Fe

b-0

9

Ju

l-0

9

De

c-0

9

Ma

y-1

0

Oct-

10

Ma

r-1

1

Au

g-1

1

Absa Bond Fund BESA All Bond Index

Fund commentary

The ALBI was strong in 2010, and gained a further 1.73% in December, with gains coming across all durations of the yield curve. The 1 to 3 year area

gained 0.62% in the month, the3 to 7 year area 0.62%, the 7 to 12 year area1.93% and the 12+ segment 2.14%. The yield on the benchmark R157

decreased from 7.46% at the beginning of the month to 7.31% at the end of the month. The yield on the longer dated R186 decreased from 8.43% at

the beginning of the month to 8.29% at the end of the month.

Cash, as measured by the STEFI, yielded 0.49%, the low yield being a result of the Reserve Bank‟s numerous past interest rate cuts. After the Mone-

tary Policy Committee of the South African Reserve Bank (SARB) cut interest rates by a further 50 basis points in November, in aggregate interest

rates have now been cut by 650 basis points since their peak. Whilst high petrol, food and administered prices kept CPI above the SA Reserve Bank‟s

upper limit of 6% for a long time, the generally slowing economy and substantially stronger Rand has provided significant abatement on the inflation

front. Inflation is now well below the 6% mark. Although interest rates have come down strongly, sustained cost-push pressures, and future weakness

in the Rand may still be a potential problem area for future inflation, and the SARB will continue to monitor the situation closely.

Currency volatility has traditionally been a significant aspect for South African investors to consider, and the local currency has been exceptionally

strong of late. In December, the Rand strengthened from 7.09 to 6.62 against the Dollar, from 11.04 to 10.30 against the Pound, and from 9.22 to 8.84

against the Euro. History has shown that the Rand can sell off strongly in a short space of time, and we do point out that the significant capital inflows

experienced by South Africa over the past 18 months could reverse at some stage in the future. This should be borne in mind by bond investors, par-

ticularly in light of South Africa‟s current account deficit. Other factors which could influence the bond market include inf lation expectations, yield differ-

entials and prospects for future periods of risk aversion.

We do not feel that bonds generally offer very compelling value at this stage - with massive fiscal deficits and debt issuances around the world, we

have felt for some time that there is upside risk to real global bond yields. A key issue is the extent to which further bond issuances can be absorbed by

market participants However, there is a “tug-of-war” between the significant global disinflationary forces (particularly slowing economies and the reduc-

tion of private sector debt), and the continued issuance of sovereign debt (which should ultimately drive bond yields higher) .

The ABSA Bond Fund remains cautiously positioned, with a duration that is slightly shorter than the All Bond duration.

DISCLAIMER

The Absa Bond Fund is a medium to low risk fund. The maximum initial charge is 1.14% (incl. VAT) of consideration received and will include a maxi-

mum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.86% (incl. VAT) against the assets of the fund will be

calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The investor may instruct

Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Bond Fund requires a minimum balance of R1000. Collective

Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go

down as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a net as-

set value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio.

Income is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by additional units. All

requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded

at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to

10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying

international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable

under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distributions

reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges,

levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV

of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER

cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a member of the

Association for Savings and Investment SA.

Absa Bond Fund 31 December 2010

Contact details






Absa Bond Fund / page 2 of 2


Fund objectives

The fund aims to offer investors a consistent return of 3% above inflation as

measured by the SA Consumer Price Index over rolling 36 month periods.

The fund invests in shares, income bearing instruments and fixed interest

instruments, with major exposure to inflation linked bonds. Shares are limited

to a maximum of 20% of the portfolio.

Fund facts

Industry category Domestic - Asset Allocation - Targeted

Absolute & Real Return

Performance target CPI + 3%

Inception date 1 September 2002


JSE code ABIB

Fund manager Errol Shear - B.Bus.Sc. (Finance)

(Hons), CA (SA), CFA

Asset management

company



Absa Inflation Beater Fund 31 December 2010

Top share holdings (%)


Term Absa Inflation

Beater Fund

Sector

Average Rank


1 year 8.73 9.77 24/46

3 years 9.39 7.75 11/41

5 years 8.46 9.48 14/27



Initial fees: Absa Fund Managers: 0%




Asset allocation





X

X






Fund details

Minimum lump sum

investment R 1 000

Minimum monthly debit

order R 200


31 December


1 January

Risk statistics

Additional information Since inception


Sharpe ratio* 0.51%



*Risk Free Rate used: 5.52%

Absa Inflation Beater Fund / page 1 of 2

Anglo American Plc 0.70

AVI Ltd 0.40

BHP Billiton Plc 0.44

Growthpoint Properties Ltd 1.17

MMI Holdings Ltd 0.41

Mr Price Group Ltd 0.55

Pick n Pay Holdings 0.42

Remgro Ltd 0.41

SAB Miller Plc 0.39

Spar Group Ltd 0.60

3.13%

27.43%

49.50%

7.12%

12.82%

Preference Shares

Money Market

Inflation Linked Bonds

Floating Rate Bonds

Equity

100.00

120.00

140.00

160.00

180.00

200.00

220.00

240.00

Sep

-02

Jan

-03

May-0

3

Sep

-03

Jan

-04

May-0

4

Sep

-04

Jan

-05

May-0

5

Sep

-05

Jan

-06

May-0

6

Sep

-06

Jan

-07

May-0

7

Sep

-07

Jan

-08

May-0

8

Sep

-08

Jan

-09

May-0

9

Sep

-09

Jan

-10

May-1

0

Sep

-10

Jan

-11

May-1

1

Absa Inflation Beater Fund CPI Inflation +3%

Fund commentary

The Absa Inflation Beater Fund has returned 8.5% p.a. for the 5 years to 31 December 2010, comfortably ahead of Headline CPI over this period of

6.8% p.a. The Fund has also returned 9.4% p.a. over the past 3 years.

Whilst high petrol, food and administered prices kept CPI above the SA Reserve Bank‟s upper limit of 6% for a long time, the generally slowing econ-

omy and substantially stronger Rand has provided significant abatement on the inflation front. Inflation is now well below the 6% mark. Although inter-

est rates have come down strongly, sustained cost-push pressures, and future weakness in the Rand may still be a potential problem area for future

inflation, and the SARB will continue to monitor the situation closely. With the Monetary Policy Committee of the South Afric an Reserve Bank (SARB)

cutting interest rates by a further 50 basis points in November, in aggregate interest rates have now been cut by 650 basis points since their peak.



against the Euro.

Equities were strong in December, with the All Share Index gaining over 6%. Amongst the major sectors, Telecommunications gained over 11%, and

Oil and Gas almost 10%. Health Care was the one major sector that underperformed in the month, gaining only 1%.

Over the last couple of years, there has been dramatic stimulus by central banks and governments worldwide, and there is increasing recognition in

many circles that fiscal consolidation will be needed over the coming years. Growth in many European countries will be very s luggish for the next num-

ber of years, and there is increasing concern that China‟s growth has also started to slow. A key issue is the extent to which a real business recovery

will be able to “carry the baton” once governmental stimulus programmes start to wane. Whilst profit growth by companies has rebounded off very low

base levels, we continue to feel that the prospects for a sustained economic recovery at a “main street” level remain unclear .

The equity market as a whole is not in cheap territory. Whilst there are still pockets of value amongst some local stocks, they are fairly difficult to find.

Nonetheless, some stocks are trading at parity (or at a discount) with the market at large, yet have higher earnings and dividend yields, strong business

franchises and balance sheets, and better visibility of cash flow. The Absa Inflation Beater Fund continues to be positioned so as to minimize the risk of

capital loss, while targeting a return in excess of inflation.

DISCLAIMER

The Absa Inflation Beater Fund is a low risk fund. No initial fee is levied though investments through intermediaries could include a maximum of 3.42%

(incl. VAT) payable for commissions and incentives. An annual service charge of 1.43% (incl.VAT) against the assets of the Fund will be calculated and

accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct Absa Fund

Managers in writing at any time to stop the ongoing adviser fee. The Absa Inflation Beater Fund requires a minimum balance of R1000. Collective In-

vestment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go down

as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a net asset

value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio.

Income is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by additional units. All

requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded

at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to

10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying

international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable

under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distributions

reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges,

levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV

of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER

cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a member of the

Association for Savings and Investments SA.

Absa Inflation Beater Fund 31 December 2010

Absa Inflation Beater Fund / page 2 of 2

Contact details







Fund objectives


measured by the SA Consumer Price Index over rolling 36 month periods. It

also aims to minimise the risk of capital loss over any 12 month period. The

fund will use a strategic asset allocation strategy by investing across all

classes of assets to lower the overall risk profile of the fund.

Fund facts

Industry category Domestic - Asset Allocation - Targeted

Absolute & Real Return

Performance target CPI + 4% p.a. over rolling 36 month

period

Inception date 20 November 2006


JSE code ABAF


CA (SA), CFA

Asset management

company


Absa Absolute Fund 31 December 2010


Term

Absa

Absolute

Fund

Sector

Average Rank


1 year 11.21 9.76 11/46

2 years 10.83 11.26 18/42

3 years 10.69 7.75 5/41













X

X

Fund details

Minimum lump sum

investment

R 2 000

Minimum monthly

debit order

R 200

Income declaration 30 June & 31 December

Income distribution 15 July & 15 January

Additional Information Since inception


Sharpe ratio* 0.71%



Risk statistics





Asset allocation

Absa Absolute Fund / page 1 of 2

100

110

120

130

140

150

160

170

No

v-0

6

Feb-0

7

May-0

7

Aug

-07

No

v-0

7

Feb-0

8

May-0

8

Aug

-08

No

v-0

8

Feb-0

9

May-0

9

Aug

-09

No

v-0

9

Feb-1

0

May-1

0

Aug

-10

No

v-1

0

Absa Absolute Fund CPI + 4%

Absa Group Ltd 0.98


AVI Ltd 0.75

BHP Billiton 1.80

British American Tobacco Plc 0.90



Pick n Pay Holdings 0.75

Redefine Properties Ltd 0.89

Spar Group Ltd 1.00

7.93%

2.50%

23.19%

5.72%

19.32%

16.47%

5.76%

19.12%

Property

Preference Shares

Money Market

International


Floating Rate Bonds

Fixed Rate Bonds

Equity

Fund commentary

The Absa Absolute Fund invests in a strategic mix of assets which is designed with the objective of generating a return of CPI plus 4% per annum over

a rolling 3 year term, while trying to minimize the risk of losing money in any one year. Assets invested in include inflation linked assets, fixed-interest

bonds, money market, equity, property and offshore assets.

Assets selected for this fund are chosen carefully, based not only on return, but also with a view to minimize the potential downside risk of the portfolio.

The Fund has returned a positive 11.2% over the past year and 10.7% p.a. over the past 3 years. CPI inflation has been running at 3.6% over the past

year.

Over the last couple of years, there has been dramatic stimulus by central banks and governments worldwide, and there is increasing recognition from

various circles that fiscal consolidation will be required for years to come. Consequently, we feel that a key issue is the extent to which a real business

recovery will be able to “carry the baton” once governmental stimulus programmes start to wane. We continue to feel that the prospects for a sustained

economic recovery at a “main street” level remain unclear. Whilst there are still pockets of value amongst some local stocks, the equity market as a

whole is not in cheap territory. Accordingly, our equity exposure is focused on stocks that are trading at parity (or at a discount) with the market at large,

yet have higher earnings and dividend yields, strong business franchises and balance sheets, and better visibility of cash flows.

With the Monetary Policy Committee of the South African Reserve Bank (SARB) cutting interest rates by a further 50 basis points in November, in ag-

gregate interest rates have now been cut by 650 basis points since their peak. However, the high indebtedness of local consumers, coupled with the

effects of the National Credit Act, job losses and the generally tough economic environment, will likely mean that despite rate cuts, personal consump-

tion figures will remain subdued for some time.

Our first aim is always to protect our clients‟ money, and to achieve a satisfactory return over time.

DISCLAIMER

The Absa Absolute Fund is a low to medium risk fund. No initial fee is charged but investments through intermediaries could require a commission of

up to 3.42% (VAT Incl.). An annual service charge of 1.71% (incl. VAT) against the assets of the fund will be calculated and accrued daily. **The an-

nual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct Absa Fund Managers in writing at

any time to stop the ongoing adviser fee. The Absa Absolute Fund requires a minimum balance of R2000. Collective Investment Schemes in Securi-

ties (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go down as well as up and past per-

formance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a net asset value basis, which is the total

value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. Inc ome is distributed half-yearly

and any income may be paid out into an account as nominated by the investor or be represented by additional units. All requests for transactions re-

ceived on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded at ruling prices and can

engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to 10% of the market value of

the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying international investments to

go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable under current legislation.

Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distributions reinvested. This product is not

for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges, levies and fees incurred by the

portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV of the portfolio over this pe-

riod. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot be regarded as an

indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a member of the Association for Savings and

Investment SA.

Absa Absolute Fund 31 December 2010

Contact details






Absa Absolute Fund / page 2 of 2


Fund objectives


measured by the SA Consumer Price Index over rolling 60 month periods.

The fund will use an active asset allocation strategy by investing in selected

JSE listed shares, quoted property trusts, bonds, money market and

international assets. The equity content may range from 40% to 65%. The

fund is managed according to the guidelines as set out in Regulation 28 of

the Pension Fund Act and is suitable for retirement funds investments.

Fund facts

Industry category Domestic - Asset Allocation - Prudential

Medium Equity


periods (effective 1 October 2009)

Inception date 1 June 1994


JSE code ABBF


CA (SA), CFA

Asset management

company



Absa Balanced Fund 31 December 2010


Term

Absa

Balanced

Fund

Sector

Average Rank


1 year 14.54 12.54 6/33

3 years 8.37 4.96 2/31

5 years 11.7 10.0 2/19











X

X Fund details

Minimum lump sum

investment

R 1 000

Minimum monthly

debit order

R 100




Income distribution for the 6 months ended 30 June 2010 4.81 c.p.u


Asset allocation

Risk statistics

Additional information Data since January 2000


Sharpe ratio* 0.65%




Absa Balanced Fund / page 1 of 2



Adcock Ingram Holdings Ltd 1.53



JD Group Ltd 1.72

Naspers Ltd 2.04

SAB Miller Plc 1.96

Sasol Ltd 1.62

Standard Bank Group Ltd 2.23

Tiger Brands Ltd 1.81

100

200

300

400

500

600

700

800

Ma

y-9

4

Ma

y-9

5

Ma

y-9

6

Ma

y-9

7

Ma

y-9

8

Ma

y-9

9

Ma

y-0

0

Ma

y-0

1

Ma

y-0

2

Ma

y-0

3

Ma

y-0

4

Ma

y-0

5

Ma

y-0

6

Ma

y-0

7

Ma

y-0

8

Ma

y-0

9

Ma

y-1

0

Ma

y-1

1

Absa Balanced Fund Benchmark

53.63%

23.91%

1.05%

2.12%

14.48%

3.01%

1.80%

Equities

Fixed Rate Bonds

Floating Rate Bonds


Money Market

International

Preference Shares

Fund commentary

Though market conditions have been challenging over the past few years, we constantly stress the importance of investing with a longer-term perspec-

tive, and over the last 5 years, the Absa Balanced Fund has returned 11.7% p.a., making it the 2ndbest performing fund in its category over this period.

The Fund is also the 2ndbest-performing fund over the past 3 years, and has returned 14.5% over the past year.

In December the cash, fixed income, inflation-linked bonds, equity and property components within the Fund contributed positively to the Fund‟s return,

whilst the foreign components contributed negatively. Currency volatility has traditionally been a significant aspect for South African investors to consider,

and the local currency has been exceptionally strong of late. In December, the Rand strengthened from 7.09 to 6.62 against the Dollar, from 11.04 to

10.30 against the Pound, and from 9.22 to 8.84 against the Euro. History has shown that the Rand can sell off strongly in a short space of time, and we

do point out that the significant capital inflows experienced by South Africa over the past 18 months could reverse at some stage in the future.

The ALBI was strong in 2010, and gained a further 1.73% in December. After the Monetary Policy Committee of the South African Reserve Bank (SARB)

cut interest rates by a further 50 basis points in November, in aggregate interest rates have now been cut by 650 basis points since their peak. The high

indebtedness of local consumers, coupled with the effects of the National Credit Act, job losses and the generally tough economic environment, will likely

mean that despite rate cuts, personal consumption figures will remain subdued for some time.

Over the last couple of years, there has been dramatic stimulus by central banks and governments worldwide, and there is increasing recognition from

various circles that fiscal consolidation will be required for years to come. Consequently, we expect that growth in many European countries will be very

sluggish for the foreseeable future, and feel that a key issue is the extent to which a real business recovery will be able to “carry the baton” once govern-

mental stimulus programmes start to wane. A very important consideration is the extent to which the global economy will see employment growth over

the next few years. With some uncertainty surrounding the economic fundamentals within South Africa, and equity markets in fairly expensive territory,

we have attempted to keep our equity exposures to companies where we are comfortable with future earnings prospects.

Whilst there are still pockets of value amongst some local stocks, they are fairly difficult to find. Nonetheless, some stocks are trading at parity (or at a

discount) with the market at large, yet have higher earnings and dividend yields, strong business franchises and balance sheets, and better visibility of

cash flows. We will continue to seek out such shares and position the fund appropriately.

DISCLAIMER

The Absa Balanced Fund is a medium risk fund. The maximum initial charge is 5.70% (incl. VAT) of consideration received and will include a maximum

of 3.42% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.71% (incl. VAT) against the assets of the fund will be cal-

culated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct

Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Balanced Fund requires a minimum balance of R1000. Collective




Income is distributed half-yearly and any income may be paid out into an account as nominated by the investor or be represented by additional units.

All requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are

traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow

up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of un-

derlying international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully

taxable under current legislation. This Fund may invest in Financial instruments. Figures quoted are from Morningstar, for the period ending

31/12/2010, using NAV-NAV prices, with income distributions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER)

is expressed as an annualised percentage of the charges, levies and fees incurred by the portfolio related to its management, for the period from 1

October 2009 to 30 September 2010 against the average NAV of the portfolio over this period. A higher TER does not necessaril y imply a poor return,

nor does a lower TER imply a good return. The current TER cannot be regarded as an indication of future TER's. Consult the Management Company

for details. Absa Fund Managers is a member of the Association for Savings and Investment SA.

Absa Balanced Fund 31 December 2010

Contact details






Absa Balanced Fund / page 2 of 2


Fund objectives

The fund aims to offer investors return of 6% above inflation as measured by

the SA Consumer Price Index over rolling 60 month periods. The fund will

use an active asset allocation strategy by investing in selected JSE listed

shares, quoted property, bonds, money market and international assets. The

fund is managed according to the guidelines as set out in Regulation 28 of

the Pension Fund Act and is suitable for retirement funds investments.

Fund facts

Industry category Domestic - Asset Allocation - Prudential

Variable Equity


periods

Inception date 25 February 2010


JSE code AMFCA



Asset management

company


Absa Managed Fund 31 December 2010



Term Absa Managed

Fund

Sector

Average Rank

1 month 2.99 2.34 15/63

3 months 5.62 4.44 14/62

6 months 14.70 11.01 9/59

*Figures are monthly Source: Morningstar






Asset allocation


Risk statistics

Additional Information Since inception


Sharpe ratio* 0.45%



*The graph below illustrates the back tested performance of a portfolio constructed using the asset allocation

methodology of the Absa Managed Fund against the back tested performance of the actual benchmark of the fund.




X

X




Fund details






Absa Managed Fund / page 1 of 2


BHP Billiton 5.39


Foschini Ltd 1.99

JD Group Ltd 2.14

Lewis Group Ltd 1.95

Remgro Ltd 2.50

Spar Group Ltd 1.62


Vodacom Group Ltd 1.83

4.45%

7.83%

25.59%

62.14%

Money Market

International

Fixed Rate Bonds

Equities

100

120

140

160

180

200

220

240

Jan

-05

May-0

5

Sep

-05

Jan

-06

May-0

6

Sep

-06

Jan

-07

May-0

7

Sep

-07

Jan

-08

May-0

8

Sep

-08

Jan

-09

May-0

9

Sep

-09

Back Tested Portfolio Managed Back Tested Performance Target

Fund commentary

The Absa Managed Fund was launched on 25 February 2010. This Fund is an ideal savings vehicle for long term investors and complies with pruden-

tial guidelines applicable to retirement funds. The Absa Managed Fund is positioned in the Prudential Variable Equity category as the Fund has the

ability to vary its allocation to asset classes based on current economic conditions and the manager‟s view. Over the longer term, the Fund will have an

equity allocation towards the higher end of its mandate up to a maximum of 75%.

In line with prudential guidelines, the Absa Managed Fund also has the ability to invest a portion of its assets offshore. This international exposure is

currently limited to 20% of total assets. We are mindful that currency volatility has traditionally been a significant aspect for South African investors to

consider. Although the local currency has been very strong of late, history has shown that the Rand can sell off strongly in a short space of time. This

should be borne in mind, particularly in light of South Africa‟s current account deficit, along with strong capital inflows experienced over the past 18

months, which could reverse at some stage in the future.


various circles that fiscal consolidation will be required for years to come. Consequently, we expect that growth in many European countries will be very

sluggish for the foreseeable future, and feel that a key issue is the extent to which a real business recovery will be able to “carry the baton” once gov-

ernmental stimulus programmes start to wane. There is also increasing concern that China‟s growth has started to slow.

Whilst there are still pockets of value amongst some local stocks, they are fairly difficult to find. Nonetheless, some stocks are trading at parity (or at a

discount) with the market at large, yet have higher earnings and dividend yields, strong business franchises and balance sheets, and better visibility of

cash flows. We will continue to seek out such shares and position the fund appropriately.

The ALBI has was strong in 2010, and gained a further 1.73% in December, with gains coming across all durations of the yield curve. The Monetary

Policy Committee of the South African Reserve Bank (SARB) cut interest rates by a further 50 basis points in November, meaning that in aggregate

interest rates have now been cut by 650 basis points since their peak. With massive deficits and debt issuances sure to characterize global bond mar-

kets for quite some time, we do not find bonds to be a particularly attractive asset class at this stage.

Investors who may find the Managed Fund suitable include individuals who wish to save for retirement as well as serious long term investors seeking to

maximise capital growth and income. We are confident that the Fund will achieve its stated goals over the longer term.

Absa Managed Fund 31 December 2010

Contact details






Absa Managed Fund / page 2 of 2

DISCLAIMER

The Absa Managed Fund is a medium to high risk fund. No initial fee is charged but investments through intermediaries could incur a commission of up

to 3.42% (VAT Incl.). An annual service charge of 1.71% (incl. VAT) against the assets of the fund will be calculated and accrued daily. **The annual

management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct Absa Fund Managers in writing at any

time to stop the ongoing adviser fee. The Absa Managed Fund requires a minimum balance of R2000. Collective Investment Schemes in Securities

(Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go down as well as up and past perform-

ance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a net asset value basis, which is the total value

of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. Income is distributed half yearly and

any income may be paid out into an account as nominated by the investor or be represented by additional units. All requests for transactions received

on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded at ru ling prices and can engage in

borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to 10% of the market value of the portfo-

lio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or

down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable under current legislation. The Fund

may invest in Financial instruments. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distri-

butions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the






Fund objectives

The fund aims to offer investors medium to long-term capital and income

growth through investments in the SA property market, sector listed shares

and unit trusts in property.

Fund facts

Industry category Domestic - Real Estate - General

Performance target FTSE/JSE SA Listed Property Index

Inception date 14 August 2006


JSE code ABPE

Fund manager Thabo Ramushu - Bcom, MSc (Property

Investments)

Jay Padayatchi - BSc (Quantity

Surveying), Post Graduate Diploma in

Tax, CA (SA)

Asset management Meago (Pty) Ltd

Absa Property Equity Fund 31 December 2010

Top holdings (%)

Acumen Property Capl 3.98

Capital Property Fund 5.22

Emira Property Fund 4.55

Fountainhead Property Trust 5.45


Hyprop Investments Ltd 5.87

Pangbourne Properties Ltd 7.86

Resilient Property Income Fund 7.31

Redifine Property Ltd 19.72

SA Corporate Real Estate Fund 5.90


Term Absa Property

Equity Fund Benchmark

Sector

Average Rank

Since inception 16.90 20.24 19.54 17/22

1 year 25.15 29.64 24.08 11/21

3 years 8.74 12.20 9.85 14/21

5 years N/A N/A N/A N/A





Annual management fee**: 1.43% (VAT incl.) + performance fee (see dis-




Asset allocation




X

X






Fund details

Minimum lump sum

Investment

R 2 000

Minimum monthly

debit order

R 500


31 December


15 January

Absa Property Equity Fund / page 1 of 2

80

100

120

140

160

180

Aug

-06

No

v-0

6

Feb-0

7

May-0

7

Aug

-07

No

v-0

7

Feb-0

8

May-0

8

Aug

-08

No

v-0

8

Feb-0

9

May-0

9

Aug

-09

No

v-0

9

Feb-1

0

May-1

0

Aug

-10

No

v-1

0

Feb-1

1

May-1

1

Absa Property Equity Fund FTSE/JSE Africa SA Listed Propety Index

95.46%

4.54%

Property

Cash

Fund commentary

The FTSE/JSE Listed Property Total Return Index was up 2.23% for the month of December 2010, up 3.13% for 3 months, up 15.84% for 9 months. The SA

Listed Property sector outperformed all asset classes delivering 29.62%, against 20.90% for the All Share Index, 15.30% for B onds and 7.8% for Cash.

Outlook for the property and Sector Fundamentals in 2011

The rally in the listed property market in 2010 was fuelled by a decline in bond yields given the strong correlation between the two. Yields on the 10 year have

fallen considerably on the back of investor appetite for Emerging Markets (“EM”) sentiment. United States (“US”) economic fundamentals are improving at the

moment and there is the likelihood that the Federal Bank of the US might increase rates in the second half of the year, in which case we could a reversal of in-

flows out of bonds from the US and EM into equities which will cause the local listed property market to de-rate in line with the weakening bonds yields. The

operational concern going into 2011 is the rising cost pressures that are likely to squeeze profit margins for tenants and constrain rental growth for the landlords.

Main drivers of escalating costs in the past were electricity tariffs and rates. Electricity tariffs are expected to increase by 25% per annum over the next 3 years,

which will constitute 37% of total cost in the next 3 years from 27%.Administered costs i.e. electricity, rates and taxes, and other municipal charges constitute

54% of total operating costs.

Retail - Retailers margins, and consequently vacancies and rentals, may come under pressure because of cost pressures and rental growth will be subdued.

Office - The office sector was the hardest hit in the past year, with vacancy rates in decentralized office markets rising sharply on the back of excess supply.

SAPOA recorded office vacancy of 9.73% for 2010, however this rate does not account for pockets of underutilized space which will place a drag on net absorp-

tion generated in the near term and impact negatively on rental growth.

Industrial - Industrial property suffered through 2010, partly due to weak export volumes and tighter access to credit but recent signs show an improved outlook

Outlook for 2011 - Meago‟s expected total return for the sector for the next twelve months is anticipated at 11% comprising a clean forward yield of 8% and capi-

tal growth of 3%

DISCLAIMER

The Absa Property Equity Fund is a medium to high-risk Fund. The maximum initial charge is 1.14% (incl. VAT) of the consideration received and in-

cludes a maximum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.43% (incl. VAT) plus a performance-

based fee will be calculated and accrued daily against the assets of the Fund. The performance fee is 10% of the portfolio‟s out performance of its

stated benchmark plus 4% (benchmark is the FTSE/JSE Africa Listed Property Index [J253]). This fee is calculated and accrued daily on a twelve

month rolling basis and deducted from income of the Fund. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl.

VAT). The investor may instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Property Equity Fund requires a

minimum balance of R2 000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long-term investments. The value of

participatory interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit

trust prices are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any

permissible deductions from the portfolio. Income is distributed quarterly and any income may be paid out into an account as nominated by the investor

or be represented by additional units. All requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after

16:00 on that day. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments.

Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Foreign interest and divi-

dends as well as foreign currency movements affecting capital may be fully taxable under current legislation. Figures quoted are from Morningstar, for

the period ending 31/12/2010, using NAV-NAV prices, with income distributions reinvested. The Fund Manager may borrow up to 10% of the market

value of the portfolio to bridge insufficient liquidity. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an

annualised percentage of the charges, levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30

September 2010 against the average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower

TER imply a good return. The current TER cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa

Fund Managers is a member of the Association for Savings and Investment SA.

Absa Property Equity Fund 31 December 2010

Contact details






Absa Property Equity Fund / page 2 of 2


Fund objectives

The fund aims to offer investors medium to long-term capital growth by

delivering a higher rate of return than the FTSE/JSE All Share Index through

investments in selected JSE listed companies. Exposure to shares will

exceed 75% of the fund at all times.

Fund facts

Industry category Domestic - Equity - General

Performance target FTSE/JSE All Share Index

Inception date 1 April 1991

Fund size R 1.4 billion

JSE code ABSA



Asset management

company



Absa General Fund 31 December 2010

Top holdings (%)


Term

Absa

General

Fund

Benchmark Sector

Average Rank

Since inception 14.54 13.00 15.16 51/84

1 year 18.81 16.11 18.08 35/84

3 years 7.61 3.51 4.66 11/73

5 years 14.46 12.15 12.79 16/55







Sector allocation





X

X




Fund details

Minimum lump sum R 500




Risk statistics

Additional information Data since January 2000


Sharpe ratio* 0.37%




Absa General Fund / page 1 of 2



BHP Billiton 5.68

Bidvest Group Ltd 3.57


Compagnie Financiere Richemont SA 4.31

Naspers Ltd 5.63

Remgro Ltd 3.75

Sasol Ltd 5.98

Standard Bank Ltd 4.46

100

200

300

400

500

600

700

800

900

1000

1100

Oct-

93

Oct-

94

Oct-

95

Oct-

96

Oct-

97

Oct-

98

Oct-

99

Oct-

00

Oct-

01

Oct-

02

Oct-

03

Oct-

04

Oct-

05

Oct-

06

Oct-

07

Oct-

08

Oct-

09

Oct-

10

Oct-

11

Absa General Fund FTSE/JSE All Share Index

4.33%

0.29%

1.39%

5.98%

12.24%

1.36%

18.98%

17.58%

8.65%

2.21%

26.99%

Telecommunications

Technology

Preference Shares

Oil & Gas

Industrial

Healthcare

Financials

Consumer Services

Consumer Goods

Cash

Basic Materials

Fund commentary

Equities were strong in December, with the All Share Index gaining over 6%. Amongst the major sectors, Telecommunications gained over 11%, and

Oil and Gas almost 10%. Health Care was the one major sector that underperformed in the month, gaining only 1%.

We constantly stress the importance of investing with a longer-term perspective, and over the last 5 years, the Absa General Fund has returned14.5%

p.a. The Fund gained 18.8% over calendar year 2010, and is in the top quartile amongst its peers over the 3 year period to the end of December.


various circles that fiscal consolidation will be required for years to come. We expect that growth in many European countries will be very sluggish for

the foreseeable future, and feel that a key issue is the extent to which a real business recovery will be able to “carry the baton” once governmental

stimulus programmes start to wane. A very important consideration is the extent to which the global economy will see employment growth over the next

few years.



against the Euro. History has shown that the Rand can sell off strongly in a short space of time, and we do point out that the significant capital inflows

experienced by South Africa over the past 18 months could reverse at some stage in the future.

With the Monetary Policy Committee of the South African Reserve Bank (SARB) cutting interest rates by a further 50 basis points in November, in ag-

gregate interest rates have now been cut by 650 basis points since their peak. However, the high indebtedness of local consumers, coupled with the

effects of the National Credit Act, job losses and the generally tough economic environment, will likely mean that despite rate cuts, personal consump-

tion figures will remain subdued for some time.

Furthermore there is still some uncertainty surrounding the economic fundamentals within South Africa, and the equity market as a whole is certainly

not in cheap territory. The Fund remains cautiously positioned, and we have tried to keep our equity exposures to companies where we are comfortable

with future earnings prospects.

We remind you that we are long term investors and short term fluctuations in share prices neither excite nor depress us. All the stocks in the portfolio

are held because they offer long term value, and we expect that value to be unlocked over time.

DISCLAIMER

The Absa General Fund is a high risk fund. The maximum initial charge is 5.70% (incl. VAT) of consideration received and wil l include a maximum of

3.42% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.71% (incl. VAT) against the assets of the fund will be calcu-

lated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct

Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa General Fund requires a minimum balance of R500. Collective




Income is distributed half yearly and any income may be paid out into an account as nominated by the investor or be represented by additional units.


traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. Fluctuations or movements in

exchange rates may cause the value of underlying international investments to go up or down. Foreign interest and dividends as well as foreign cur-

rency movements affecting capital may be fully taxable under current legislation. The Fund Manager may borrow up to 10% of the market value of the

portfolio to bridge insufficient liquidity. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income






Absa General Fund 31 December 2010

Contact details






Absa General Fund / page 2 of 2


Fund objectives

The fund aims to offer investors long-term capital growth by delivering a

higher rate of return than the FTSE/JSE All Share Index through investments

in selected JSE listed companies. Exposure to shares will exceed 75% of the

fund at all times.

Fund facts

Industry category Domestic - Equity - General

Performance target FTSE/JSE All Share Index (including

income)

Inception date 23 February 2004


JSE code ASEF


CA (SA), CFA

Asset management

Company



Absa Select Equity Fund 31 December 2010


Term Absa Select

Equity Fund Benchmark

Sector

Average Rank

Since inception 24.88 20.47 15.16 7/84

1 year 23.20 19.00 18.08 5/84

3 years 12.49 6.47 4.66 3/73

5 years 18.54 15.22 12.79 1/55





Annual management fee**: 1.14% (VAT incl.) + performance fee (see

disclaimer)

Total expense ratio: 1.16 % of which 0.15% is performance fee





X

X




Fund details





Risk statistics

Additional information Fund since inception


Sharpe ratio* 1.19%




Sector allocation

Absa Select Equity Fund / page 1 of 2

Absa Group Ltd 3.85



AVI Ltd 3.08

BHP Billiton 7.56

JD Group Ltd 3.53


Sasol Ltd 3.81

Spar Group Ltd 4.15


Top holdings (%)

95

145

195

245

295

345

395

445

495

Mar-

04

Jun

-04

Sep

-04

Dec-0

4

Mar-

05

Jun

-05

Sep

-05

Dec-0

5

Mar-

06

Jun

-06

Sep

-06

Dec-0

6

Mar-

07

Jun

-07

Sep

-07

Dec-0

7

Mar-

08

Jun

-08

Sep

-08

Dec-0

8

Mar-

09

Jun

-09

Sep

-09

Dec-0

9

Mar-

10

Jun

-10

Sep

-10

Dec-1

0

Mar-

11

Jun

-11

Absa Select Equity Fund FTSE/JSE All Share Index TR

1.13%

2.66%

3.81%

8.56%

1.75%

1.69%

17.64%

24.51%

6.59%

3.75%

27.80%

Telecommunications

Technology

Oil & Gas

Industrial

Healthcare

Foreign Assets

Financials

Consumer Services

Consumer Goods

Cash

Basic Materials

Fund commentary

Equities were strong in December, with the All Share Index gaining over 6%. Amongst the major sectors, Telecommunications gai ned over 11%, and Oil and Gas

almost 10%. Health Care was the one major sector that underperformed in the month, gaining only 1%.

We constantly stress the importance of investing with a longer-term perspective, and over the last 5 years, the Absa Select Equity Fund has returned 18.5% p.a.,

outperforming the JSE All Share Index by more than 3% p.a. over this period. As at 31 December 2010, this means that the Absa Select Equity Fund is the top

performing fund in the General Equity category for the 5 year period, and the 3rd best performing fund for the three year period. The Fund is also in the top quar-

tile amongst its peers for the calendar year 2010. Examples of shares that have performed well over the last 12 months, and where we have been overweight,

have been Mr Price (+98%), The Foschini Group (+55%) and AVI (+54%).

Over the last couple of years, there has been dramatic stimulus by central banks and governments worldwide, and there is increasing recognition in various cir-

cles that fiscal consolidation will be required for years to come. We expect that growth in many European countries will be very sluggish for the foreseeable fu-

ture, and feel that a key issue is the extent to which a real business recovery will be able to “carry the baton” once governmental stimulus programmes start to

wane. A very important consideration is the extent to which the global economy will see employment growth over the next few years.

Whilst profit growth by companies has rebounded off very low base levels, we continue to feel that the prospects for a sustained economic recovery at a “main

street” level remain unclear. Wage increases, coupled with the strong rand, will likely eat into the margins of exporters and mining companies. Some counterbal-

ance has been provided by commodity prices, which have increased sharply from their lows. We will closely monitor global economic conditions, and particularly

the demand coming from China, in assessing the sustainability of commodity prices at these levels.

There are still pockets of value amongst some local stocks, though they are fairly difficult to find. Some stocks are trading at parity (or at a discount) with the

market at large, yet have higher earnings and dividend yields, strong business franchises and balance sheets, and better visibility of cash flows, and we have

attempted to keep our equity exposures to companies where we are comfortable with future earnings prospects.

As long-term investors, we constantly remind ourselves neither to become too flustered nor too excited by short-term fluctuations in share prices. Our long term

objective is to grow and protect the fund‟s capital by investing in financially sound companies, run by competent management and trading at a price that offers

long term value. We believe that this long term value will be unlocked over time.

DISCLAIMER

The Absa Select Equity Fund is a high risk fund. No initial charge is levied, though investments through intermediaries could include a maximum of

3.42% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.14% (incl. VAT) is applicable to the Select Equity Fund to-

gether with an additional performance fee. *The performance fee is 15% of the portfolio‟s outperformance of the benchmark plus 2% (benchmark is the

JSE/FTSE All Share Index plus income thereto), is calculated and accrued daily on a twelve month rolling basis and deducted f rom income to the Fund.

**The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct Absa Fund Managers in

writing at any time to stop the ongoing adviser fee. The Absa Select Equity Fund requires a minimum balance of R2000. Collective Investment

Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go down as well as

up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are calculated on a net asset value basis,

which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. Income is dis-

tributed half yearly and any income may be paid out into an account as nominated by the investor or be represented by additional units. All requests for

transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded at ruling

prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to 10% of the

market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying interna-

tional investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable under

current legislation. This fund may invest in Financial instruments. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-

NAV prices, with income distributions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annu-

alised percentage of the charges, levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 Septem-

ber 2010 against the average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply

a good return. The current TER cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund

Managers is a member of the Association for Savings and Investment SA.

Absa Select Equity Fund 31 December 2010

Contact details






Absa Select Equity Fund / page 2 of 2


Fund objectives

Absa Rand Protector Fund aims to offers investors long-term capital growth

as well as hedging against a depreciating rand by investing in approximately

20 large capitalisation shares that derive a significant part of their earnings in

foreign currencies. Exposure to shares will exceed 75% at all times.


Risk statistics

Additional information Fund since inception


Sharpe ratio* 0.58%






Fund facts

Industry category Domestic - Equity - Large Cap

Performance target FTSE/JSE Top 40 Index

Inception date 28 September 2001


JSE code ABRF

Fund manager Stephen Arthur - B.Sc. Eng Mining, CFA

Asset management

company


Term

Absa

Rand

Protector

Fund

Benchmark Sector

Average Rank

Since inception 19.40 18.70 15.67 2/8

1 year 14.26 17.23 16.64 8/8

3 years 9.19 5.67 6.48 2/8

5 years 17.87 14.61 14.82 2/7



Absa Rand Protector Fund 31 December 2010

Top holdings (%)




Compagnie Financiere Richemont SA 4.13

Exxaro Resources Ltd 4.49

Investec Plc 4.67

MTN Group 4.51

Naspers Ltd 3.88

SAB Miller Plc 9.42

Sasol Ltd 7.60










X

X Fund details

Minimum lump sum

investment

R 2 000

Minimum monthly

debit order

R 200




Sector allocation

Absa Rand Protector Fund / page 1 of 2

90

140

190

240

290

340

390

440

490

540

Oct-

01

Ap

r-02

Oct-

02

Ap

r-03

Oct-

03

Ap

r-04

Oct-

04

Ap

r-05

Oct-

05

Ap

r-06

Oct-

06

Ap

r-07

Oct-

07

Ap

r-08

Oct-

08

Ap

r-09

Oct-

09

Ap

r-10

Oct-

10

Ap

r-11

Absa Rand Protector Fund FTSE/JSE Africa Top 40

4.51%

1.37%

7.60%

4.70%

2.30%

1.36%

15.37%

8.01%

9.42%

2.31%

42.23%

Telecommunications

Technology

Oil & Gas

Industrial

Holdings in CIS

Healthcare

Financials

Consumer Services

Consumer Goods

Cash

Basic Materials

Fund commentary

The Rand Protector Fund returned 14.3% for 2010 relative to 17% for the ALSI40. The Rand strengthened by 10.5% to R/$ 6.6. The performance for

the year was disappointing, however the three and five year returns are substantially above benchmark.

The developed world continues to muddle along. Pockets of strength are emerging with Germany doing particularly well. Concern over the „PIGS‟ con-

tinue, but at this stage seems well contained. The latest job data out of the US showed encouraging signs of improvement. China‟s economic growth is

still relatively robust. Commodity imports into China over the second half of the year shows no signs of weakening. Copper reached new highs, while

iron ore imports and prices remain strong. We believe that inflation will be the number one problem in China and other emerging markets this year.

Already there has been policy response with higher interest rates in most Asian countries. Hopefully this response will moderate inflationary pressures,

and growth can continue at an elevated level. Despite the good news on the Asian economic front there is a concern about world growth on the back of

the European and US situation. It will take time for these excesses to work through the system.

The reasonable economic news resulted in the equity markets doing well in 2010. There has been less talk of a double dip in the developed economies

with below trend economic growth the most likely scenario. Our view is that the market is on the expensive side, with only modest equity returns this

year.

The Rand has surprised by its strength relative to the dollar. Longer term we are of the opinion that the Rand is over-valued and will require some real

term depreciation for South Africa to remain competitive. The risk is that as more confidence returns to the US, that the dollar carry trade reverses, and

the Rand weakens quite quickly.

The portfolios resources exposure is currently50.5%. This is in line with our benchmark. We believe that good earnings growth have come through in

the second half of 2010. The weak dollar has resulted in commodity prices in dollar terms moving upwards but if the strong Rand persists it could have

a negative impact on resource company‟s earnings. We still see upside in the sector although recent price appreciation brings the valuations closer to

fair value.

In comparing the performance of this Trust with other funds, investors should be aware that this Trust is listed under the domestic large capitalization

category. The Rand Protector is managed against a benchmark that consists of 25 shares from the Alsi 40 with good Rand hedge qualities, and will

have lower weightings in financials and domestic industrial companies relative to the other funds in this category.

DISCLAIMER

The Absa Rand Protector Fund is a medium to high risk fund. The maximum initial charge is 5.70% (incl. VAT) of consideration received and will in-

clude a maximum of 3.42% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.14% (incl. VAT) against the assets of

the fund will be calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The

investor may instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Rand Protector Fund requires a minimum

balance of R2000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory

interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Unit trust prices are

calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deduc-

tions from the portfolio. Income is distributed half yearly and any income may be paid out into an account as nominated by the investor or be repre-

sented by additional units. All requests for transactions received on or before 16:00 every day will be traded at ruling pric es and valued after 16:00 on

that day. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund

Manager may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may

cause the value of underlying international investments to go up or down. Foreign interest and dividends as well as foreign c urrency movements affect-

ing capital may be fully taxable under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV

prices, with income distributions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised

percentage of the charges, levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September

2010 against the average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a

good return. The current TER cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund Manag-

ers is a member of the Association for Savings and Investment SA.

Absa Rand Protector Fund 31 December 2010

Contact details






Absa Rand Protector Fund / page 2 of 2



Absa US Dollar Income Fund 31 December 2010

Fund objectives

This rand denominated offshore fund aims to offer investors a consistent

foreign income as well as hedging against a depreciating rand. Securities to

be included in the fund will mainly consist of US Dollar denominated interest

bearing securities. Both capital and interest will be exposed to currency

fluctuations.

Fund facts

Industry category Foreign -Fixed Income -Varied Specialist

Performance target US Dollar 90 Day Deposit Rate



JSE code ABUD


CFA

Asset management

company


Fund details




31 December


15 January

Credit exposure (%)

AAA 30.68

AA 49.60

A 19.72






Asset allocation



Term

Absa US

Dollar

Income Fund

Benchmark ZAR/USD

1 year -9.66 -10.23 -10.55

3 years 0.41 0.34 -0.95

5 years N/A N/A N/A



Distribution for the 3 months ended 31 Mar 2010 0.00 c.p.u

Distribution for the 3 months ended 30 Jun 2010 0.00 c.p.u

Distribution for the 3 months ended 30 Sept 2010 0.00 c.p.u

Distribution for the 3 months ended 31 Dec 2010 0.00 c.p.u

*Used for short to long term currency hedge.


3 Months + 6 Months + 2 Years + 3 Years + Varies*


X

X

Absa US Dollar Income Fund / page 1 of 2

88

98

108

118

128

138

148

158

168

178

No

v-0

6

Feb-0

7

May-0

7

Aug

-07

No

v-0

7

Feb-0

8

May-0

8

Aug

-08

No

v-0

8

Feb-0

9

May-0

9

Aug

-09

No

v-0

9

Feb-1

0

May-1

0

Aug

-10

No

v-1

0

Feb-1

1

May-1

1

Aug

-11

Absa US Dollar Income Fund Benchmark Rand / Dollar

47.22%

46.22%

6.56%

Dollar fixed deposits

Dollar cash

RSA cash

Fund commentary

As the market digested the announcement in November of the introduction of a further round of quantitative easing by the Federal

Reserve, whereby it will purchase $600 billion of government bonds by 30 June 2011, equity markets recovered their November

losses during December. Data releases continued to be positive on balance, yet employment data remains of concern, particularly in

the consumer driven market of the USA. Debt concerns in Europe continue to bubble just below the surface. The underlying current,

however, is that corporate results for the quarter ended 31 December 2010 will be very good. Global bond yields rose quite sharply

during the first half of the month before declining slightly before month end. The outlook for inflation remains unclear in the short term,

but fears of deflation do appear to be receding. The Rand strengthened significantly against the US Dollar over the month, closing at

R6.62/USD at the end of December 2010 from R7.09/USD at the end of November 2010.

Short term yields were volatile but range bound during December, closing the month near the bottom of the range.

The effective interest yield earned on the fund as at end of the month was 0.49%.

Investments will continue to be concentrated as close to the benchmark as possible, keeping duration at the short end of the

mandated range.

DISCLAIMER

The Absa US Dollar Income Fund is a low to medium risk fund. The maximum initial charge is 1.14% (incl. VAT) of consideration received and will in-

clude a maximum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.86% (incl. VAT) against the assets of

the fund will be calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The in-

vestor may instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa US Dollar Income Fund requires a minimum

balance of R2000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory

interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange

rates may cause the value of underlying international investments to go up or down. Forward pricing is used. Unit trust prices are calculated on a net

asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the port-

folio. Income is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by additional











Absa US Dollar Income Fund 31 December 2010

Contact details






Absa US Dollar Income Fund / page 2 of 2



Absa Euro Income Fund 31 December 2010

Fund objectives



be included in the fund will mainly consist of Euro denominated interest

bearing securities. Both capital and interest will be exposed to currency

fluctuations.

Fund facts


Performance target Euro 90 Day Deposit Rate



JSE code ABEI


CFA

Asset management

company


Fund details




31 December


Credit exposure (%)

AAA 24.84

AA 52.33

A 22.83

Asset allocation



Term Absa Euro

Income Fund Benchmark ZAR/EURO

1 year -15.51 -15.24 -15.76

3 years -2.48 -1.87 -3.92

5 years N/A N/A N/A





Distribution for the 3 months ended 30 Sep 2010 0.00 c.p.u











X

X

Absa Euro Income Fund / page 1 of 2

93

103

113

123

133

143

153

163

No

v-0

6

Jan

-07

Mar-

07

May-0

7

Jul-

07

Sep

-07

No

v-0

7

Jan

-08

Mar-

08

May-0

8

Jul-

08

Sep

-08

No

v-0

8

Jan

-09

Mar-

09

May-0

9

Jul-

09

Sep

-09

No

v-0

9

Jan

-10

Mar-

10

May-1

0

Jul-

10

Sep

-10

No

v-1

0

Jan

-11

Mar-

11

May-1

1

Absa Euro Income Fund Benchmark Rand / Euro

42.37%

52.32%

5.31%

Euro fixed deposits

Euro cash

RSA cash

Fund commentary







but fears of deflation do appear to be receding. The Rand again strengthened meaningfully against the Euro over the month, closing at

R8.84/EUR at the end of December 2010 from R9.22/EUR at the end of November 2010.

Short term yields again remained flat during the month.


Investments will continue to be concentrated as close to the benchmark as possible, keeping duration at the short end of the man-

dated range.

DISCLAIMER

The Absa Euro Income Fund is a low to medium risk fund. The maximum initial charge is 1.14% (incl. VAT) of consideration received and will include a

maximum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.86% (incl. VAT) against the assets of the fund

will be calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The investor may

instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Euro Income Fund requires a minimum balance of

R2000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests

(units) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may

cause the value of underlying international investments to go up or down. Forward pricing is used. Unit trust prices are calculated on a net asset value

basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. Income

is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by additional units. All requests

for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day. Unit trusts are traded at ruling

prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow up to 10% of the

market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of underlying interna-

tional investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully taxable under

current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distributions reinvested.

This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges, levies and fees

incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against the average NAV of the portfolio

over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return. The current TER cannot be re-

garded as an indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a member of the Association for Sav-

ings and Investment SA.

Absa Euro Income Fund 31 December 2010

Contact details






Absa Euro Income Fund / page 2 of 2



Absa Pound Sterling Income Fund 31 December 2010

Fund objectives



be included in the fund will mainly consist of British Pound denominated

interest bearing securities. Both capital and interest will be exposed to

currency fluctuations.

Fund facts


Performance target Pound Sterling 90 Day Deposit Rate



JSE code ABPS


CFA

Asset management

company


Fund details

Minimum lump sum

investment

R 2 000

Minimum monthly

debit order

R 200


31 December


15 January

Credit exposure (%)

AAA 24.66

AA 48.64

A 26.70

Asset allocation



Term

Absa Pound

Sterling

Income Fund

Benchmark ZAR/GBP

1 year -12.82 -12.66 -13.14

3 years -7.56 -6.76 -8.92

5 years N/A N/A N/A
















X

X

Absa Pound Sterling Income Fund / page 1 of 2

73

83

93

103

113

123

133

No

v-0

6

Feb-0

7

May-0

7

Aug

-07

No

v-0

7

Feb-0

8

May-0

8

Aug

-08

No

v-0

8

Feb-0

9

May-0

9

Aug

-09

No

v-0

9

Feb-1

0

May-1

0

Aug

-10

No

v-1

0

Feb-1

1

May-1

1

Absa Pound Sterling Income Fund Benchmark Rand/Pound

45.77%

48.63%

5.60%

Sterling fixed deposits

Sterling cash

RSA cash

Fund commentary







but fears of deflation do appear to be receding. The Rand strengthened strongly against Sterling over the month, closing R10.31/GBP

at the end of December 2010 from R11.04/GBP at the end of November 2010.

Short term yields rose marginally during the course of December.


Investments will continue to be concentrated as close to the benchmark as possible, keeping duration at the short end of the man-

dated range.

DISCLAIMER

The Absa Pound Sterling Income Fund is a low to medium risk fund. The maximum initial charge is 1.14% (incl. VAT) of consideration received and will

include a maximum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 0.86% (incl. VAT) against the assets of

the fund will be calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The in-

vestor may instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Pound Sterling Income Fund requires a mini-

mum balance of R2000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of partici-

patory interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in ex-

change rates may cause the value of underlying international investments to go up or down. Forward pricing is used. Unit trus t prices are calculated on

a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the

portfolio. Income is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by additional











Absa Pound Sterling Income Fund 31 December 2010

Contact details






Absa Pound Sterling Income Fund / page 2 of 2



Absa Global Bond Fund 31 December 2010

Fund objectives

This rand denominated fund offers investors medium to long-term income

growth while at the same time displaying rand-hedge qualities. The full

spectrum of investments includes interest bearing securities of differing terms

to maturity, taking into account changes in international interest rates, credit

risk and liquidity.

Fund facts

Industry category Foreign - Fixed Interest - Bond

Performance target Citigroup World Government Bond 3-7

years



JSE code ABDB


CFA

Asset management

company


Fund details

Minimum lump sum

investment

R 2 000

Minimum monthly

debit order

R 500


31 December


15 January

Astrazeneca Plc 4.43

Diago Capital BV 4.78

E on International 3.37

GDF Suez 3.75

Germany 4 BDS 8.02

KFW Bankengruppe 4.68

Mcdonalds Corp 4.14

New Zealand (Gov) 4.44

Toyota Finance Australia 4.48

Unilever NV 4.15

Top holdings (%)

Asset allocation















X

X


Term

Absa

Global Bond

Fund

Sector

Average Rank


1 year -11.78 -6.9 8/8

3 years 3.6 3.59 6/8

5 years 7.03 6.44 4/8


Absa Global Bond Fund / page 1 of 2

100

120

140

160

180

200

220

240

260

280

No

v-0

0

May-0

1

No

v-0

1

May-0

2

No

v-0

2

May-0

3

No

v-0

3

May-0

4

No

v-0

4

May-0

5

No

v-0

5

May-0

6

No

v-0

6

May-0

7

No

v-0

7

May-0

8

No

v-0

8

May-0

9

No

v-0

9

May-1

0

No

v-1

0

Absa Global Bond Fund Citigroup World Government Bond

25.37%

74.63%

Cash

Bonds

Fund commentary





however, is that corporate results for the quarter ended 31 December 2010 will be very good.

Global bond yields rose quite sharply during the first half of the month before declining slightly before month end. The outlook for infla-

tion remains unclear in the short term, but fears of deflation do appear to be receding.

While equities appear to have a little bit of “froth” built into their prices, bond yields had anticipated the worst. The dec line in yields

experienced recently was brought about by a so-called “flight to quality” by investors, coupled with purchases ahead of the quantitative

easing mentioned above. Yields now appear to be on an upward trajectory and, barring any surprises, the duration of the fund will

remain short at this time.

DISCLAIMER

The Absa Global Bond Fund is a low to medium risk fund. The maximum initial charge is 1.14% (incl. VAT) of consideration received and will include a

maximum of 0.57% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.43% (incl. VAT) against the assets of the fund

will be calculated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.17% (incl. VAT). The investor may

instruct Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa Global Bond Fund requires a minimum balance of

R2000. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests

(units) may go down as well as up and past performance is not necessarily a guide to the future. Forward pricing is used. Uni t trust prices are calcu-

lated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions

from the portfolio. Income is distributed quarterly and any income may be paid out into an account as nominated by the investor or be represented by

additional units. All requests for transactions received on or before 16:00 every day will be traded at ruling prices and valued after 16:00 on that day.

Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager

may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the

value of underlying international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital

may be fully taxable under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with

income distributions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage

of the charges, levies and fees incurred by the portfolio related to its management, for the period from 1 October 2009 to 30 September 2010 against

the average NAV of the portfolio over this period. A higher TER does not necessarily imply a poor return, nor does a lower TER imply a good return.

The current TER cannot be regarded as an indication of future TER's. Consult the Management Company for details. Absa Fund Managers is a mem-

ber of the Association for Savings and Investment SA.

Absa Global Bond Fund 31 December 2010

Contact details






Absa Global Bond Fund / page 2 of 2


*Index performance of Fund & Benchmark based to 100 at base year 2000

Absa International Fund 31 December 2010

Fund objectives

This rand denominated offshore general equity fund aims investors long-term

capital growth as well as hedging against a depreciating rand by investing

mainly in developed markets (United States of America, Europe, United

Kingdom and Japan) companies, with bias to large capitalisation shares.

Exposure to shares will exceed 75% at all times.

Fund facts

Industry category Foreign - Equity - General

Performance target MSCI $ World Index



JSE code ABIF


CFA

Asset management

company


Fund details

Minimum lump sum

investment

R 1 000

Minimum monthly

debit order

R 100



Top holdings (%)

Exxon Mobil Corp Com 3.83

Essilor International 3.08

Glaxosmithkline Plc 2.74

General Electric Co 2.80

Goodrich Corp 3.85

Johnson & Johnson Co 3.11

Microsoft Corp USD 3.05

Nestle SA 3.96

Reckitt Benckiser Plc 2.86

Reinet Investments SCA NPV 2.64

Asset allocation



Term

Absa

International

Fund

Sector

Average Rank


1 year -7.21 -2.2 24/24

3 years -11.04 -7.58 21/22

5 years -0.85 1.97 18/20













X

X

Absa International Fund / page 1 of 2

55

65

75

85

95

105

115

125

135

145

No

v-0

0

Jun

-01

Jan

-02

Au

g-0

2

Mar

-03

Oct

-03

May

-04

De

c-0

4

Jul-

05

Feb

-06

Sep

-06

Ap

r-0

7

No

v-0

7

Jun

-08

Jan

-09

Au

g-0

9

Mar

-10

Oct

-10

May

-11

Absa International Fund MSCI$ World Index

1.05%

12.45%

82.35%

4.15%

Local Equity

Local Cash

International Equities

International Cash

Fund commentary





however, is that corporate results for the quarter ended 31 December 2010 will be very good.

Global bond yields rose quite sharply during the first half of the month before declining slightly before month end. The outlook for infla-

tion remains unclear in the short term, but fears of deflation do appear to be receding.

While the current environment leads us to remain cautious in our outlook, we believe that solid investment opportunities will continue

to present themselves.

DISCLAIMER

The Absa International Fund is a high risk fund. The maximum initial charge is 5.70% (incl. VAT) of consideration received and will include a maximum

of 3.42% (incl. VAT) payable for commissions and incentives. An annual service charge of 1.71% (incl.VAT) against the assets of the Fund will be cal-

culated and accrued daily. **The annual management fee includes the financial adviser‟s ongoing fee of 0.285% (incl. VAT). The investor may instruct

Absa Fund Managers in writing at any time to stop the ongoing adviser fee. The Absa International Fund requires a minimum balance of R1000. Collec-

tive Investment Schemes in Securities (Unit Trusts) are generally medium to long term investments. The value of participatory interests (units) may go



Income is distributed half yearly and any income may be paid out into an account as nominated by the investor or be represented by additional units.


traded at ruling prices and can engage in borrowing and scrip lending. This Fund may be closed to new investments. The Fund Manager may borrow

up to 10% of the market value of the portfolio to bridge insufficient liquidity. Fluctuations or movements in exchange rates may cause the value of un-

derlying international investments to go up or down. Foreign interest and dividends as well as foreign currency movements affecting capital may be fully

taxable under current legislation. Figures quoted are from Morningstar, for the period ending 31/12/2010, using NAV-NAV prices, with income distribu-

tions reinvested. This product is not for sale to USA persons. The Total Expense Ratio (TER) is expressed as an annualised percentage of the





Absa International Fund 31 December 2010

\






Absa International Fund / page 2 of 2


Head Office : Absa Investments Campus

65 Empire Road, Parktown, Johannesburg

Telephone : 011 480 5000

[email protected] www.absainvestments.co.za

Unit Trusts

Telephone : 0860 111 456

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