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MONTHLY INSIGHTSAUGUST 2017
Time Period: 2017/08/01 to 2017/08/31
Return
Assore Limited
Sibanye Gold Limited
Exxaro Resources Ltd
Imperial Holdings Limited
PPC Ltd
Kumba Iron Ore Limited
30.05
23.56
20.15
20.01
19.08
18.11
JSE Winners 1 month
Time Period: 2017/01/01 to 2017/08/31
Return
Gold Fields Ltd
Exxaro Resources Ltd
Naspers Ltd
Kumba Iron Ore Limited
Trencor Limited
Anglo American Pla�num Ltd
64.77
51.77
46.02
45.97
40.35
33.32
JSE Winners YTD
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE/JSE All Share TR ZAR
FTSE/JSE Top 40 TR ZAR
FTSE/JSE SA Resources TR ZAR
FTSE/JSE Ind/Industrials TR ZAR
FTSE/JSE Financial 15 TR ZAR
FTSE/JSE Top 40 SWIX TR ZAR
FTSE/JSE Mid Cap TR ZAR
FTSE/JSE Small Cap TR ZAR
Beassa ALBI TR ZAR
STeFI Composite ZAR
2.65
2.57
5.10
4.57
2.93
2.33
4.52
2.15
1.03
0.62
6.04
6.45
15.43
2.58
6.43
4.99
5.55
0.06
1.58
1.86
12.37
15.13
13.92
3.20
8.03
14.43
0.13
4.87
4.49
3.77
10.15
10.91
17.31
5.66
11.94
7.89
3.37
1.45
10.20
7.63
6.56
6.06
10.08
3.56
6.64
6.57
7.94
6.91
6.67
7.01
13.10
13.13
1.18
9.64
13.76
13.64
11.81
13.96
6.31
6.36
13.57
15.79
13.65
1.62
6.86
14.74
1.39
0.71
6.67
5.04
South African Indices
American Indices
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
DJ Industrial Average TR USD
S&P 500 TR USD
NASDAQ Composite TR USD
US Dollar
CBOE Market Vola�lity (VIX)
0.65
0.31
1.43
0.21
3.22
5.15
3.01
4.00
4.39
1.73
6.79
5.65
10.99
8.36
18.03
22.29
16.23
24.73
3.49
21.09
11.46
9.54
13.30
3.85
4.03
13.70
14.34
17.40
2.68
9.53
13.01
11.93
20.34
9.34
24.57
European Indices
World Index (USD)
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE 100 TR GBP
FSE DAX TR EUR
Euronext Paris CAC 40 PR EUR
1.63
0.52
0.16
0.01
4.43
3.75
4.69
1.87
4.67
13.97
13.81
14.59
6.94
8.38
5.10
9.44
11.58
8.30
7.31
5.01
4.59
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 1.11 2.17 8.23 3.45 12.88 20.46 9.33
World Index (ZAR)
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 0.38 3.66 8.91 17.11 5.58 10.46 15.03
Time Period: 2017/06/01 to 2017/08/31
2017/06 2017/07 2017/0894.0
96.0
98.0
100.0
102.0
104.0
106.0
108.0
110.0
FTSE/JSE All Share TR ZAR DJ Shanghai PR CNY S&P 500 TR USD
FTSE 100 TR GBP
Global Indices Performance
Global Indices Cumula�ve Performance YTD
1 M YTD0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
2.65
13.57
2.25
8.51
3.92
13.84
0.31
11.93
1.63
7.31
FTSE/JSE All Share TR ZAR DJ Shanghai PR CNY S&P GSCI Gold TR
S&P 500 TR USD FTSE 100 TR GBP
Re
turn
JSE Losers 1 month
Time Period: 2017/08/01 to 2017/08/31
Return
Pioneer Food Group Limited
Capital & Coun�es Proper�es PLC
Brait SA
Curro Holdings Limited
BidCorp Ltd
Intu Proper�es PLC
9.63
9.17
8.46
8.36
6.61
6.17
JSE Losers YTD
Time Period: 2017/01/01 to 2017/08/31
Return
ArcelorMi�al South Africa Ltd.
Lonmin PLC
Brait SA
Sun Interna�onal Ltd.
Eoh Holdings Limited
Famous Brands Limited
56.70
40.46
34.23
33.33
31.86
24.48
August 2017July 2017 Page 1
JSE Top 40 Holdings
Por�olio Holding's Date: 2017/08/31
Market Cap (mil) 1 M 1 Y 3 Yr YTD
Anglo American PLC
Anglogold Ashan� Ltd
Aspen Pharmacare Holdings Ltd
Barclays Africa Group Ltd
BHP Billiton PLC
Bid Corp Ltd
Bidvest Group Ltd
Bri�sh American Tobacco PLC
Cie Financiere Richemont SA DR
Discovery Ltd
Firstrand Ltd
Fortress Income Fund Ltd Class A
Fortress Income Fund Ltd Class B
Gold Fields Ltd
Growthpoint Proper�es Ltd
Impala Pla�num Holdings Ltd
Intu Proper�es PLC
Investec Ltd
Investec PLC
Life Healthcare Group Holdings Ltd
Mediclinic Interna�onal PLC
Mondi Ltd
Mondi PLC
Mr Price Group Ltd
MTN Group Ltd
Naspers Ltd Class N
Nedbank Group Ltd
Netcare Ltd
Old Mutual PLC
Redefine Proper�es Ltd
Reinet Investments SCA DR
Remgro Ltd
Rmb Holdings Ltd
Sanlam Ltd
Sappi Ltd
Sasol Ltd
Shoprite Holdings Ltd
Standard Bank Group Ltd
Steinhoff Interna�onal Holdings NV
Tiger Brands Ltd
Truworths Interna�onal Ltd
Vodacom Group Ltd
57 222.88 2.24 15.82 16.61 4.15
290 723.60 7.08 31.38 12.79 6.68
69 501.72 7.15 53.55 3.36 15.53
137 256.00 4.94 16.93 1.02 2.23
106 648.30 3.69 5.94 14.34 8.31
51 244.69 1.08 44.55 9.78 12.86
88 756.42 7.33 27.15 17.68 32.30
98 675.24 6.61 11.24 — 21.53
116 217.97 2.61 6.57 2.22 8.66
18 330.11 14.93 84.59 0.78 24.09
22 842.53 14.17 28.80 25.25 5.94
61 698.21 0.51 14.81 6.89 9.96
3 622.95 2.43 35.98 6.04 12.50
61 698.21 3.17 20.21 47.79 24.33
47 451.73 9.48 2.41 21.05 54.96
4 724.20 3.31 24.42 — 0.23
26 430.14 4.23 23.02 9.96 11.91
69 515.07 1.49 6.34 6.57 0.81
689 272.37 3.22 38.87 6.37 27.57
3 109.82 2.55 16.84 5.33 8.21
1 246 714.68 1.12 22.45 29.67 46.02
56 122.28 1.02 4.82 11.21 0.73
46 383.21 4.69 1.87 0.71 16.35
100 767.43 0.37 12.27 3.45 5.02
7 322.78 6.76 39.58 29.45 29.78
56 613.05 0.18 5.15 8.86 3.77
32 548.05 1.79 23.71 5.99 21.29
9 420.57 5.60 10.03 5.14 1.73
175 945.27 4.54 22.20 27.77 29.63
221 967.24 11.17 13.34 12.80 7.97
242 988.07 1.29 9.62 10.48 0.56
132 953.29 8.21 19.21 6.26 18.41
252 888.48 4.76 26.24 9.12 11.23
113 044.11 11.76 22.10 17.26 32.50
188 168.74 1.68 10.14 1.23 1.69
252 936.41 2.26 31.61 10.85 13.23
32 695.28 9.83 14.97 8.86 7.61
89 322.27 4.50 18.42 10.22 2.38
46 291.19 0.10 22.76 26.42 1.18
67 777.46 0.88 8.46 12.15 4.01
273 734.79 1.98 24.17 17.00 22.01
26 995.90 0.53 20.11 5.03 11.65
JSE Top 40 Return per annum
2012 2013 2014 2015 2016 YTD5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.026.1
22.8
9.27.5
1.6
15.8
FTSE/JSE Top 40 TR ZAR
Re
turn
South African Headlines
KIO
Even though Kumba Iron Ore will be releasing very impressive six months results, the
most upse�ng aspect for investors and world stock markets, is news that the Chinese
economy is heading for a slump.
Kumba, the JSE listed subsidiary of Anglo American, is one of South Africa’s major
producers of iron ore, much of which it sells to China. Having had a very good run on
the iron ore price earlier this year to $90 a ton (see chart), the price has moved
significantly lower and there are rumours in the steel industry that Chinese inventory
levels are growing all the �me.
�
�
Kumba Iron Ore rallied 17.34% to R193.46 per share as the company
announced that it will resume dividends for the first �me in two years due
to an increase in iron ore prices along with more efficient produc�on
methods which have helped boost firsthalf earnings by 53% to
R4.6bn. Strong cash genera�on on volume and prices. Capex only R1.1bn
– another R2bn to be incurred in H2. R2.7bn WC release.
Sales were up 5% to 21.2Mt. 8% increase in export sales, up to 19.5 Mt.
Revenue up 22%. Due sales volumes and strong commodity prices.
Average realised price was $71/t vs $55/t in 1H16.
Compared to 2016: Index price +US$22/t, lump premium US$3/t. Rand
14% stronger
Glencore
A leading global integrated producer and marketer of leading commodi�es,
supplemented my different ac�vi�es. Management has tailored its balance sheet to
withstand harsher commodi�y winters. Glencores industrial assets are demonstra�ng
industry leading cost and cashflow performances while the marke�ng business
providesa unique and defensive earnings driver. We think there is a strong investment
case to be made for Glencore, due to:
�
�
�
Diversified exposure to commodi�es with solid fundamentals – Copper,
Zinc & Cobalt in par�cular with significant (lowcost) latent capacity.
The unique marke�ng business which provides resilient “feelike” income,
and provides something of a value/dividend underpin.
An a�rac�ve valua�on: FCF yield of 14% and a spot EV/EBITDA of 5x – with
low capex requirements & supply op�onality.
Stock Informa�on
1 M YTD0.00
2.50
5.00
7.5010.00
12.50
15.00
17.50
20.00
2.57
15.79
1.89
16.80
4.13
1.67
12.27
0.36
13.51
5.46
FTSE/JSE Top 40 TR ZAR Fairtree Select Equity (Daily Track) (ASISA) South African EQ Financial
(ASISA) South African EQ Industrial (ASISA) South African EQ Resources
Re
turn
Local Indices Performance
Time Period: 2016/09/01 to 2017/08/31
2017/02 2017/0892.5
100.0
107.5
115.0
FTSE/JSE Top 40 TR ZAR 110.9
JSE Top 40 Index
Taking a look at local markets during July, a combina�on of a weaker rand, which
declined 0.7% against an already weak dollar, and firm commodity prices led the basic
materials index 13.3% higher. The unexpected cut in interest rates also helped the
return from bank shares. Financial indices proved to perform well during the period up
5% and industrials also performed strongly with a gain of 5.7%. The SARB noted a
significant move lower in its infla�on forecasts for this year and next. It now expects
headline infla�on to average 5.3% in 2017 and 4.9% in 2018. The SARB clearly stated
the move to cut interest rates by 25 basis points to 6.75% was made in reac�on to its
improved outlook on infla�on and in response to the deteriorated view on domes�c
growth.
August 2017 Page 2
In the US infla�on has remained below the US Federal Reserve’s (Fed) infla�on
target of 2% for four years in a row. The Fed however, may be more willing to look
through weak growth and infla�on data, in an effort to normalise its interest rate
structure and address excessive risk taking by investors. Disappointment at the rate
of US economic ac�vity have taken some steam out of expecta�ons of further US
interest rate rises.
American Headlines S&P 500
Time Period: 2017/08/01 to 2017/08/31
2017/0898.0
98.5
99.0
99.5
100.0
100.5
S&P 500 TR USD 100.3
NASDAQ
Time Period: 2017/08/01 to 2017/08/31
2017/0897.5
98.0
98.5
99.0
99.5
100.0
100.5
101.0
101.5
NASDAQ Composite TR USD 101.4
DJ INDUSTRIAL AVE
Time Period: 2017/08/01 to 2017/08/31
2017/0899.0
99.5
100.0
100.5
101.0
101.5
DJ Industrial Average TR USD 100.7
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
DJ Industrial Average TR USD
S&P 500 TR USD
NASDAQ Composite TR USD
0.65
0.31
1.43
5.15
3.01
4.00
6.79
5.65
10.99
22.29
16.23
24.73
11.46
9.54
13.30
13.70
14.34
17.40
13.01
11.93
20.34
American Indices
Asian Indices
European Indices
Within the Euro zone the European Central Bank (ECB) affirmed that data points to a
strengthening of the economic expansion in the euro area. ECB president Mario
Draghi clarified his view on infla�on in the July 2017 ratese�ng mee�ng by sta�ng
infla�on remains subdued, owing to weak underlying price pressures. Under its
current forward guidance, the ECB is buying €60 billion a month in (mostly)
government bonds un�l at least December 2017. Prime Minister Theresa May’s
decision to hold an early elec�on has resulted in her government losing its grip on a
socalled ‘hard’ Brexit. There is rising disagreement between cabinet ministers on
what form Brexit should take. It has been more than a year since the Britons voted
to leave the European Union (EU), but it is becoming increasingly apparent that
Britain triggered exit talks before working out the details.
European Headlines FTSE 100
Time Period: 2017/08/01 to 2017/08/31
2017/08
99.5
100.0
100.5
101.0
101.5
102.0
102.5
FTSE 100 TR GBP 101.6
DAX
Time Period: 2017/08/01 to 2017/08/31
2017/08
98.5
99.0
99.5
100.0
100.5
101.0
101.5
FSE DAX TR EUR 99.5
CAC 40
Time Period: 2017/08/01 to 2017/08/31
2017/08
98.5
99.3
100.0
100.8
101.5
102.3
103.0
Euronext Paris CAC 40 PR EUR 99.8
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE 100 TR GBP
FSE DAX TR EUR
Euronext Paris CAC 40 PR EUR
1.63
0.52
0.16
0.01
4.43
3.75
4.69
1.87
4.67
13.97
13.81
14.59
6.94
8.38
5.10
9.44
11.58
8.30
7.31
5.01
4.59
Asian Headlines
July saw China on pace to overtake the United States as the world's biggest oil
importer this year, cemen�ng its status as Asia's most pivotal oil market actor that
will increasingly dominate the region's fuel trade. For the first �me, China imported
more crude oil in the first half of the year than the U.S., government sta�s�cs
showed. The shi� highlights the change in the centre of gravity in global oil markets
from West to East.
NIKKEI
Time Period: 2017/08/01 to 2017/08/31
2017/08
97.0
98.0
99.0
100.0
101.0
Nikkei 225 Average TR JPY 98.7
HANG SENG
Time Period: 2017/08/01 to 2017/08/31
2017/08
98.0
100.0
102.0
104.0
Hang Seng HSI TR HKD 103.1
SHANGAI
Time Period: 2017/08/01 to 2017/08/31
2017/08
96.0
98.0
100.0
102.0
104.0
DJ Shanghai PR CNY 102.2
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Nikkei 225 Average TR JPY
Hang Seng HSI TR HKD
DJ Shanghai PR CNY
0.53
6.64
3.24
4.00
13.30
5.83
5.65
20.03
4.33
22.55
29.35
10.27
10.43
7.12
15.60
20.20
10.66
11.43
5.25
27.45
6.12
August 20177 Page 3
Commodity Headlines
In response to the backlash following Mineral Resource Minister Mosebenzi Zwane’s
3rd edi�on of the new Mining Charter in midJune 2017, the minister was forced to
suspend the implementa�on of the Charter. Confidence in the industry was knocked
further on 9 July, when the minister announced a proposal to restrict the gran�ng of
new mining and prospec�ng rights and the transfer of mineral rights between
companies. The Chamber of Mines (represen�ng 90% of industry players) has since
moved to interdict the blanket ban on new mining and prospec�ng licenses.
Commodi�es
Something Interes�ng
A surge in Amazon.com Inc. shares Thursday morning in advance of the online
retailer’s earnings report briefly propelled founder Jeff Bezos past Bill Gates as the
world’s richest person.
Shares of the online retailer fell 0.7 percent to $1,046 at 4 p.m. in New York, a�er
climbing as high as $1,083.31 four hours earlier, which gave Bezos a net worth of $92.3
billion. Gates had a net worth of $90.8 billion as of the Wednesday close.
Bezos remains ranked second on the Bloomberg Billionaires Index, behind the
Microso� Corp. cofounder. Gates, 61, has held the top spot since May 2013.
Bezos, 53, owns about 17 percent of Sea�lebased Amazon, which had surged 40
percent this year through Wednesday, helping to add $24.5 billion to his net worth. He
started 2017 as the world’s fourthwealthiest person and has since surpassed Warren
Buffe� and Inditex SA founder Amancio Ortega, 81, who ranks third with $82.7 billion.
1 Bill Gates $90.7B $115M +$8.33B United States Technology
2 Jeff Bezos $89.3B $544M +$23.9B United States Technology
3 Amancio Ortega $82.7B $3.61M +$10.6B Spain Retail
4 Warren Buffe� $74.5B +$5.00M +$1.40B United States Diversified
5 Mark Zuckerberg $72.5B +$1.99B +$22.5B United States Technology
6 Carlos Slim $65.3B $973M +$15.4B Mexico Diversified
7 Larry Ellison $52.2B $622M +$10.7B United States Technology
8 Bernard Arnault $51.8B $635M +$12.6B France Consumer
9 Charles Koch $47.7B +$192M +$2.10B United States Industrial
10 David Koch $47.7B +$192M +$2.10B United States Industrial
August 2017
Time Period: 2017/01/01 to 2017/08/31
2017/02 2017/05 2017/08
77.5
85.0
92.5
100.0
107.5
115.0
S&P GSCI Gold TR 113.8 Oil Price Brent Crude PR 92.2
Currency Headlines
The local currency is boosted by a weaker dollar weighed down by disappoin�ng US
economic data and waning bets that President Donald Trump’s fiscal s�mulus plans
will pass the post. The dollar index slipped to its weakest level since October.
A recent batch of mixed economic data in the US, including so�erthanexpected
house price figures on in June, have dampened the lure of the greenback and previous
bets that the Federal Reserve will li� rates further this year.
Time Period: 2017/01/01 to 2017/08/31
2017/02 2017/05 2017/0813.4
14.4
15.4
16.4
Currency EUR 15.4
Time Period: 2017/01/01 to 2017/08/31
2017/02 2017/05 2017/08
14.9
15.9
16.9
17.9
Currency GBP 16.8
GBP/ZAR
Time Period: 2017/01/01 to 2017/08/31
2017/02 2017/05 2017/08
12.2
12.7
13.2
13.7
14.2
Currency USD 13.0
USD/ZAR
Page 4
EUR/ZAR
Monthly Returns FTSE/JSE All share Monthly Returns FTSE/JSE SA Listed Property
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
4.31 3.11 2.68 3.64 0.42 3.49 7.03 2.65
2.99 0.59 6.44 1.70 1.84 3.02 1.16 0.26 0.93 2.49 0.55 0.97
3.08 4.07 1.33 4.70 3.95 0.76 0.52 3.55 0.95 7.61 3.86 1.72
2.36 4.88 1.83 2.65 1.60 2.77 0.93 0.46 2.58 1.01 0.54 0.19
3.23 1.89 1.19 2.49 8.51 5.70 4.41 2.58 5.08 3.61 1.10 2.98
5.73 1.70 1.41 2.83 3.59 1.85 2.71 2.74 1.64 4.22 2.64 3.15
2.63
5.13
10.88
21.43
26.68
13.57
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
1.63 0.36 0.11 0.51 0.11 0.29 3.70 0.76
2.98 3.65 9.48 1.95 3.47 1.17 3.26 4.89 1.09 0.50 3.34 4.24
7.38 3.16 2.64 0.04 5.93 0.36 5.14 0.22 0.82 2.08 0.50 6.12
7.13 4.66 4.76 2.32 1.26 3.37 1.91 2.96 2.18 6.84 2.83 1.11
0.99 4.64 3.28 7.37 11.09 4.38 4.19 3.47 6.71 3.04 2.96 1.00
4.75 1.01 2.10 2.61 0.55 6.91 8.60 5.65 3.27 4.08 6.74 0.36
10.20
7.99
26.64
8.39
35.88
6.88
Monthly Returns MSCI World (ZAR) Monthly Returns MSCI World (USD)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
1.27 0.25 3.77 1.37 0.70 0.18 3.51 1.11
3.58 1.41 0.08 2.16 11.05 7.45 1.26 6.50 5.97 3.62 4.82 0.40
1.03 5.77 2.36 1.54 1.64 2.60 4.85 2.08 0.47 7.69 3.58 5.52
2.37 0.82 1.65 1.08 2.64 2.41 0.49 1.44 2.79 1.54 1.67 2.71
10.14 0.43 4.12 0.70 11.69 4.20 4.60 1.19 3.35 3.42 3.05 4.80
2.22 0.33 3.70 0.17 0.56 0.25 1.82 4.83 0.98 4.73 3.41 2.31
4.81
30.78
15.05
51.60
22.04
9.33
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
2.73 2.81 1.22 1.56 2.21 0.45 2.79 0.38
6.03 0.69 7.41 1.48 0.13 0.61 4.31 0.34 0.61 1.70 0.76 2.16
1.56 5.57 1.55 2.90 0.13 2.35 0.87 6.86 3.62 7.85 0.83 1.80
4.00 4.83 0.44 0.95 2.13 1.88 1.21 2.21 3.24 0.70 1.67 1.93
4.61 0.02 1.83 2.86 0.27 2.92 4.79 2.08 5.17 4.02 1.42 1.73
5.81 5.03 0.67 1.14 8.97 4.94 1.37 2.17 3.15 0.67 1.28 2.27
7.86
2.36
4.16
22.80
16.13
15.03
Beassa ALBI SA CPI Synthe�c (Headline)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
1.36 0.71 0.40 1.42 1.03 0.95 1.50 1.03
4.57 0.72 2.63 1.85 1.47 4.04 2.19 1.72 2.98 0.64 1.83 1.54
6.47 2.77 0.51 0.49 0.76 0.15 1.04 0.14 0.07 1.30 1.02 6.67
3.24 2.44 1.79 0.32 1.14 0.97 1.02 2.80 1.57 3.41 2.36 1.51
0.07 0.66 0.20 4.09 4.64 1.56 0.62 1.32 3.92 0.39 1.37 1.13
2.02 0.18 0.14 1.81 0.03 3.36 3.94 0.07 0.90 0.57 0.88 2.30
15.42
3.93
10.15
0.64
15.95
6.67
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
0.40 0.60 1.09 0.59 0.10 0.29 0.19 0.29
0.32 0.75 1.38 0.73 0.83 0.21 0.51 0.82 0.10 0.20 0.51 0.30
0.22 0.11 0.56 1.45 0.88 0.22 0.44 1.09 0.00 0.00 0.21 0.11
0.24 0.71 1.06 1.40 0.46 0.11 0.34 0.80 0.34 0.00 0.22 0.00
0.25 0.25 1.00 1.23 0.36 0.24 0.24 1.09 0.24 0.48 0.24 0.12
0.13 0.53 0.52 1.17 0.39 0.00 0.39 0.26 0.26 0.89 0.63 0.25
6.64
4.71
5.81
5.38
5.54
3.61
STeFI FTSE/JSE Ind/Industrials
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
0.65 0.57 0.63 0.61 0.63 0.61 0.62 0.62
0.56 0.53 0.58 0.58 0.61 0.59 0.62 0.62 0.60 0.63 0.61 0.61
0.52 0.48 0.53 0.51 0.53 0.51 0.53 0.54 0.52 0.54 0.52 0.55
0.44 0.41 0.46 0.46 0.48 0.47 0.50 0.50 0.49 0.51 0.50 0.52
0.43 0.39 0.43 0.41 0.43 0.41 0.43 0.43 0.42 0.43 0.42 0.44
0.47 0.44 0.47 0.45 0.47 0.44 0.48 0.46 0.43 0.44 0.42 0.43
7.37
6.47
5.91
5.19
5.54
5.04
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
2.25 0.73 2.12 2.82 0.04 3.73 1.91 4.57
1.79 2.02 7.84 1.98 0.03 2.96 5.68 2.08 1.22 0.03 0.83 6.12
3.14 0.63 1.70 0.53 4.46 0.13 0.31 0.69 2.07 6.81 5.03 5.62
6.73 0.34 5.55 4.26 1.55 0.13 1.35 1.08 4.19 5.40 1.16 0.17
1.70 5.23 3.31 2.40 5.42 2.85 0.36 0.74 4.25 3.99 1.34 2.39
8.11 5.40 3.73 1.51 3.25 1.40 5.51 0.23 0.83 2.01 0.10 6.54
21.55
10.07
6.99
21.50
36.53
1.62
FTSE/JSE Financial 15 FTSE/JSE SA Resources
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
0.99 0.10 0.87 4.09 1.63 2.07 5.58 2.93
3.45 2.87 12.41 1.26 2.18 2.80 2.85 2.88 1.52 1.37 1.34 3.23
4.57 3.39 2.26 4.93 6.76 0.54 3.46 4.04 2.19 7.31 3.96 6.13
7.13 8.38 6.38 3.84 1.94 2.70 0.56 0.70 1.75 6.98 2.98 0.18
3.61 1.01 2.81 0.08 2.08 4.18 2.37 0.75 6.54 7.54 3.05 2.87
6.54 4.63 1.78 2.24 1.09 2.54 3.10 2.15 0.01 2.03 2.23 6.61
3.55
1.06
27.83
19.83
37.80
6.86
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2017
2016
2015
2014
2013
2012
10.74 9.91 2.91 0.01 4.11 3.08 13.32 5.10
2.72 15.57 5.08 13.45 3.81 2.47 4.33 0.85 4.48 3.41 6.11 3.60
1.16 8.38 8.94 7.96 5.19 7.07 8.45 0.38 9.96 5.93 20.66 3.87
5.92 4.44 0.05 3.97 4.32 3.45 4.75 5.44 6.26 9.90 6.06 4.66
3.32 6.51 2.64 9.00 12.15 13.60 9.15 7.55 1.96 2.76 2.22 1.66
8.11 2.18 8.53 2.50 6.85 1.02 1.77 0.86 5.68 6.18 1.83 2.98
34.24
36.99
14.74
1.38
3.05
13.65
Page 5August 2017
The por�olio being cau�ous of nature, with large exposure to income driven funds have found some favor from the Beassa ALBI TR ZAR being up 1.03% for the month of August.
The equity market in SA followed up the great month of July with another 2.65%. This added some alpha to the por�olio over the benchmark, as the equity funds has individually
outperformed the market for the month of August. The apprecia�on of the rand allowed for a li�le b it of a drag on the offshore exposure in the por�olio, fortunately not
significant enough to create a drag over the longer run of the por�olio. The por�olio has done well against peers, the benchmark and even the All Bond Index for the year.
Commentary
Correla�on Matrix
Time Period: 2015/09/01 to 2017/08/31
1 2 3 4 5 6
1.00
0.83 1.00
0.81 0.99 1.00
0.73 0.93 0.95 1.00
0.83 0.98 0.98 0.92 1.00
0.88 0.98 0.98 0.93 0.97 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Cau�ous Mul�Managed Por�olio (Momentum)
3 Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib & Glacier)
4 Fairtree Cau�ous Por�olio (PPS)
5 Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
6 (ASISA) South African MA Low Equity
Posi�vely Correlated Nega�vely Correlated
Fairtree Cau�ous Mul�Managed Por�olio (Momentum) Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Cau�ous Por�ollio (PPS)
August 2017
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
Page 6
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Cau�ous Mul�Managed Por�olio (Momentum)
Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Cau�ous Por�olio (PPS)
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Low Equity 0.56 1.91 4.58 4.73 6.47 8.30 5.60
0.32 1.64 5.11 4.20 7.82 9.59 6.00
0.91 2.84 5.68 5.46 8.45 9.87 6.84
0.27 1.86 4.75 5.84 8.80 6.04
0.67 2.49 5.29 5.46 7.91 9.54 6.46
Trailing Returns
REGULATION 28 SOLUTIONS: CAUTIOUS PORTFOLIOS
Time Period: 2015/09/01 to 2017/08/31
1 2 3 4 5 6 7
1.00
0.88 1.00
0.88 0.99 1.00
0.87 0.97 0.98 1.00
0.88 0.96 0.96 0.94 1.00
0.88 0.97 0.97 0.96 0.97 1.00
0.90 0.97 0.97 0.93 0.97 0.98 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib & Glacier)
3 Fairtree Balanced Mul�Managed Por�olio (Momentum)
4 Fairtree Balanced Por�olio (PPS)
5 Fairtree Smart Beta Balanced Por�olio (Investec)
6 Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
7 (ASISA) South African MA Medium Equity
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Balanced Mul�Managed Por�olio Por�olio (Momentum)
Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Balanced Por�olio (PPS)
Fairtree Smart Beta Balanced Por�olio (Investec)
Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Medium Equity 0.71 2.23 5.42 3.85 5.86 9.18 6.39
1.12 3.06 6.06 5.24 7.71 11.57 7.32
1.01 2.65 5.66 5.33 9.42 11.70 6.66
1.09 3.05 5.57 6.28 8.50 12.04 6.40
0.29 1.72 5.07 4.34 8.42 6.24
1.33 3.42 6.46 5.21 8.40 12.00 7.75
Trailing Returns
The por�olio being posi�oned to protect client’s capital on the downside and deliver par�cipa�ng performance on the upside, has proven to do well with the desired asset
alloca�on. The last three months has shown exactly that, protec�ng when equi�es pull back and par�cipa�ng when they rally. The rally will be limited to the equity exposure of the
por�olio, with a bit of alpha provided we choose quality equity managers. With the 4�� quarter around the corner, we are pleased with the por�olio’s performance for the year.
The rand’s apprecia�on to the dollar in the month of August has tampered some of the offshore exposure in the por�olio, where the biggest drawdown came from offshore
property.
Smart Beta Balanced
With the FTSE/JSE ALSI that saw its second posi�ve month in a row for the year of 2017 in August, together with a posi�ve Beassa ALBI, the por�olio had opportunity to extract
some returns. The offshore exposure through offshore equi�es and property put a limit on that return as the rand appreciated. The global equity market s�ll saw some returns for
August. Property on the other hand had a double knock with low or no returns together with the rand apprecia�on. The por�olio overall has performed well and is on track with
its investment objec�ves for the year. The por�olio has managed to outperform the benchmark over a ny 1 month, 3 month, 6 month, 1 year, 3 year and 5 year trailing period. The
desired asset alloca�on achieved through the blending of ac�ve and passive asset managers are working well in mee�ng investment objec�ves.
Commentary
Fairtree Balanced Mul�Managed Por�olio (Momentum) Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Balanced Mul�Managed Por�olio (Allan Gray) Fairtree Smart Beta Balanced Por�olio (Investec)Fairtree Balanced Por�olio (PPS)
August 2017 Page 7
REGULATION 28 SOLUTIONS: BALANCED PORTFOLIOS
Time Period: 2015/09/01 to 2017/08/31
1 2 3 4 5 6 7
1.00
0.91 1.00
0.90 0.99 1.00
0.90 0.98 0.98 1.00
0.91 0.94 0.94 0.95 1.00
0.90 0.95 0.96 0.96 0.96 1.00
0.92 0.95 0.97 0.95 0.96 0.98 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Growth Mul�Maanged Por�olio (Momentum)
3 Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib & Glacier)
4 Fairtree Growth Por�olio (PPS)
5 Fairtree Smart Beta Growth (Investec)
6 Fairtree Growth Mul�Managed Por�olio (Allan Gray)
7 (ASISA) South African MA High Equity
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Growth Mul�Managed Por�olio (Momentum)
Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Growth Por�olio (PPS)
Fairtree Smart Beta Growth (Investec)
Fairtree Growth Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA High Equity 0.84 2.39 5.65 3.86 5.88 9.82 6.73
1.72 4.09 6.88 5.03 7.99 13.16 8.08
1.38 2.96 5.84 4.55 9.45 13.28 6.71
1.22 3.14 5.91 5.38 7.98 12.82 6.51
1.72 4.01 7.05 4.78 8.18 13.28 8.42
0.33 1.67 5.21 3.74 8.20 6.32
Trailing Returns
The FTSE/JSE ALSI hit a new record of 56,655.8 on 25 August, buoyed by a weak dollar which supporte d commodi�es, and expecta�ons of further rate cuts in the domes�c market,
which supported the SA consumer names. Gold stocks were big winners on the local front due to North Korea’s decision to launch a missile over Japan and the tes�ng of a nitrogen
bomb. Equi�es on the local front did well and the equity managers outperformed the JSE over the month of August. The somewhat of a drag was caused by the weaker dollar,
which lead to a rand apprecia�on and with minimal returns in the global front both in equi�es and property. Against the benchmark the por�olio has performed well, over and
above that keeping track with the JSE with a good riskadjusted return.
Smart Beta Growth
In the month of August the Fairtree Smart Beta Prescient has kept track with the All Share Index. With some of the biggest stocks, in terms of their weigh�ng within the market,
being responsible for much of the returns in the market for the year, factor based inves�ng will have a most definite lag on returns. With the FTSE/JSE ALSI hi�ng all�me records
in the last month it will be difficult to keep up from a riskadjusted return point of view over the short term. With the business confidence at a low and the ou�lows of SA equi�es
significantly lagging inflows into EM equi�es, we live in an interes�ng �me. What makes the factor based inves�ng a�rac�ve, apart from the fees, is the spread of risk with the
poten�al of ge�ng marketlike returns which the por�olio has proven over the longer term.
Commentary
Fairtree Growth Mul�Managed Por�olio (Momentum) Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Growth Por�olio (PPS)
August 2017
Fairtree Growth Mul�Managed Por�olio (Allan Gray) Fairtree Smart Beta Growth Por�olio (Investec)
Page 8
REGULATION 28 SOLUTIONS: GROWTH PORTFOLIOS
Trailing Returns
Time Period: 2015/09/01 to 2017/08/31
1 2 3 4
1.00
0.77 1.00
0.80 0.97 1.00
0.82 0.96 0.97 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree High Growth Mul�Managed Por�olio (Momentum & Glacier)
3 Fairtree High Growth Por�olio (PPS)
4 Fairtree Tax Free Savings Mul�Managed Por�olio (Investec)
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree High Growth Mul�Managed Por�olio (Momentum & Glacier)
Fairtree High Growth Por�olio (PPS)
Fairtree Tax Free Savings Mul�Managed Por�olio (Investec)
FTSE/JSE All Share TR ZAR 2.65 6.04 12.37 10.15 6.56 13.10 13.57
0.19 1.87 5.85 2.83 8.65 15.08 6.27
0.44 2.50 5.25 2.09 7.04 6.02
0.64 2.62 7.03 5.16 10.34 15.77 8.21
Commentary
The Fairtree High Growth por�olio is posi�oned to benefit from rand deprecia�on together with growth assets. The combina�on between both ac�ve and passive managers we
believe can and will add value. Where our focus on Smart Beta factor based inves�ng provides at least the opportunity for alpha over normal tracker funds. The niche ac�ve
managers we choose to include can bring forth somewhat of an xfactor. With a 30% alloca�on to flexible managers there is confidence that the asset alloca�on �lts are accounted
for. The introduc�on of the Fairtree Global Real Estate Prescient Fund we believe adds at least some niche property exposure on the global front. Their macro considera�on
combined with a bo�om up stock selec�on is unique and exci�ng. The last month’s performance was influenced by a rand apprecia�on and with current poli�cal and macro
economic data there is s�ll some value in rand deprecia�on in the future.
Tax Free Savings Account
For the month of August we saw decent returns in local equi�es, where the Fairtree Smart Beta Prescient Fund managed to keep track with the All Share Index. With the Satrix
Property Index managing to gain 71 basis points, the rela�ve fla�sh performance of the por�olio is due to lagging offshore equi�es and property together with the apprecia�on of
the rand. These two components managed to counter the equity performance on the local front. With infla�on and what we have seen over the past, we are s�ll confident that the
rand would need to depreciate over the long term, this will again add value in terms of the offshore exposure this por�olio holds.
Fairtree High Growth Por�olio (PPS) Fairtree High Growth MM Por�olio (Mom & Glacier) Fairtree TaxFree Savings MM Por�olio
August 2017 Page 9
NONREGULATION 28 SOLUTIONS: HIGH GROWTH PORTFOLIOS
Markets in the rest of the world were mixed with the S&P 500 pos�ng +0.31% and the LSE +1.63%, while the Nasdaq and DAX declined by 1.63% and 0.52% respec�vely. The JSE All Share con�nued
its run by pos�ng +2.65% during August.
Looking at the world and how vola�le the poli�cal environments are, North Korea’s decision to launch a missile over Japan and tes�ng of a nitrogen bomb. The fact that USA macro data disappointed
somewhat also lead to the US bond rally con�nuing, which means lower real rates and therefore higher gold prices. This was reflected in the gold stocks being big winners in the local market. Rate cuts
and rate hikes are the talking point locally as well as globally. Consumer confidence is s�ll low. The business confidence in SA is very low and the low growth environment is not suppor�ng the view. On
the local poli�cal front, President Jacob Zuma survived another vote of noconfidence on 8 August, as expected.
The equity market has performed well, under circumstances where we have seen large ou�lows of SA equi�es, where duallisted stocks accounted for at least 75% of the equity ou�lows out of SA for
the year to date. The SA bond market has seen record inflows and in the month of August accounted another $166mn of inflows.
With most of the RMB solu�ons invested in hedge funds, the uncertainty around the stability of poli�cal environments around the world is playing quite a significant role. Not only investment
fundamentals drive the markets, but poli�cal instability play a big a part as well. Under normal circumstances it would not have been such a bad thing, but with the likes of President Trump, Kim Jong
un, Brexit and then even President Zuma it never seems like anyone knows what is going on or what their next move is going to be. Although, in the shorter term, they have an influence on markets
and especially people’s reac�on to news, but s�cking to your guns and investment philosophy, we believe will pay off. Being aware of the short term risks, unemo�onal about decisions and backing our
managers we believe will reap fruit.
In the month of August equi�es have struggled in the mul� strategies, whilst fixed income has performed well. So� commodi�es are posi�oned to take advantage of the coming seasons’ change and
projected harvests. Heading into the last month of this quarter we await the FED on rate hikes, the Reserve Bank on rate cuts and a bit further along the road the ANC elec�ve conference in December.
Commentary
Correla�on Matrix
Time Period: 2015/09/01 to 2017/08/31
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1.00
0.79 1.00
0.72 0.59 1.00
0.67 0.83 0.73 1.00
0.50 0.73 0.52 0.91 1.00
0.63 0.85 0.56 0.96 0.93 1.00
0.43 0.69 0.38 0.88 0.96 0.94 1.00
0.75 0.68 0.91 0.83 0.69 0.70 0.55 1.00
0.90 0.91 0.67 0.86 0.76 0.86 0.72 0.76 1.00
0.45 0.45 0.85 0.71 0.58 0.54 0.42 0.85 0.47 1.00
0.77 0.75 0.94 0.91 0.74 0.80 0.64 0.95 0.82 0.84 1.00
0.43 0.70 0.37 0.87 0.96 0.94 0.99 0.54 0.72 0.42 0.63 1.00
0.89 0.83 0.76 0.78 0.58 0.72 0.55 0.76 0.91 0.47 0.82 0.53 1.00
0.65 0.87 0.60 0.93 0.86 0.94 0.83 0.71 0.87 0.56 0.81 0.84 0.74 1.00
0.63 0.84 0.60 0.94 0.88 0.96 0.87 0.70 0.86 0.53 0.82 0.87 0.74 0.96 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Aggressive Growth
3 Fairtree Balanced Mul� Manager
4 Fairtree Best Ideas Balanced Growth
5 Fairtree Best Ideas Cau�ous
6 Fairtree Best Ideas Aggressive Growth
7 Fairtree Capital Guarantee
8 Fairtree Cau�ous Mul� Manager
9 Fairtree Equity Index + Alpha
10 Fairtree Global
11 Fairtree Aggressive Growth Mul� Manager
12 Fairtree High Growth
13 Fairtree Select Equity
14 Fairtree Empress Por�olio
15 Fairtree Juniper Por�olio
Posi�vely Correlated Nega�vely Correlated
Fairtree Cau�ous Mul� Manager Fairtree Best Ideas Cau�ous
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Aggressive Growth
Fairtree Balanced Mul� Manager
Fairtree Best Ideas Balanced Growth
Fairtree Best Ideas Cau�ous
Fairtree Best Ideas Aggressive Growth
Fairtree Capital Guarantee
Fairtree Cau�ous Mul� Manager
Fairtree Equity Index + Alpha
Fairtree Global
Fairtree Aggressive Growth Mul� Manager
Fairtree High Growth
Fairtree Select Equity
Fairtree Empress Por�olio
Fairtree Juniper Por�olio
0.02 1.54 1.74 2.62 8.60 15.39 4.63
0.72 1.43 3.14 0.66 7.03 12.37 4.51
0.22 1.57 4.87 1.69 8.52 5.76
0.86 2.60 1.07 3.78 8.23 11.22 3.03
2.97 2.43 3.53 6.34 9.56 4.41
0.35 1.38 2.55 1.12 4.63
1.90 4.61 12.20 8.12 11.55 22.79 14.96
0.41 2.96 2.76 0.82 4.01
0.02 0.35 4.15 1.31 6.37 5.67
3.03 7.01 1.42 0.12 8.13 15.05 0.82
0.14 1.08 7.93 1.73 4.40 13.90 11.28
0.87 2.40 2.06 3.83 8.80 3.77
1.26 3.68 1.60 1.44 8.08 14.25 3.78
0.27 0.89 3.78 4.04 6.84 5.56
Trailing Returns
August 2017 Page 10
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE
Fairtree High Growth
Fairtree Aggressive Growth Mul� Manager
Fairtree Aggressive Growth
Fairtree Best Ideas Aggressive Growth
Fairtree Capital Guarantee
Fairtree Juniper
August 2017
Fairtree Select Equity
Fairtree Empress
Page 11
Fairtree Global Por�olio
Fairtree Equity Index plus Alpha
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE con�nued
Fairtree Best Ideas Balanced GrowthFairtree Balanced Mul� Manager
www.fairtree.com
Willowbridge PlaceCnr Carl Cronje Dr & Old Oak Rd
Bellville, 7530Western Cape, South Africa
021 943 3760
Copyright 2017 Fairtree Invest (Pty) Ltd,2013/059356/07 , a licensed
Financial Services Provider (FSP 25917)
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