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MONTHLY INSIGHTSSEPTEMBER 2018
Time Period: 2018/09/01 to 2018/09/30
Return
Impala Pla�num Holdings
Kumba Iron Ore Limited
Assore Limited
Sun Interna�onal Ltd.
South32 Ltd
Santam Limited
53.63
21.08
16.15
13.16
11.34
9.76
JSE Winners 1 month
Time Period: 2018/01/01 to 2018/09/30
Return
Montauk Holdings Ltd
Murray And Roberts Holdings Limited
Anglo American Pla�num Ltd
Sasol, Ltd.
Echo Polska Proper�es NV
Mondi Limited
57.81
37.11
33.87
31.77
29.85
29.70
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
MSCI ACWI Ex USA NR USD
6.42 3.63 12.64 0.71 4.65 3.89 14.13
4.17 2.17 2.27 3.32 6.67 7.99 3.84
1.05 5.20 25.84 26.91 15.66 1.00 21.02
4.70 2.72 3.30 3.27 6.31 7.75 3.23
5.43 4.19 0.76 0.95 5.16 7.89 7.89
1.96 4.20 2.70 14.76 6.24 11.43 3.75
3.68 1.74 8.77 1.90 5.32 6.96 12.08
0.30 0.81 3.00 7.14 7.66 7.16 4.81
1.70 2.22 6.62 4.49 3.09 6.67 7.81
0.46 0.71 1.93 1.76 9.97 4.12 3.09
0.57 1.78 3.55 7.27 7.33 6.81 5.37
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)
1.97 9.63 11.02 20.76 20.49 14.57 8.83
0.57 7.71 11.41 17.91 17.30 13.95 10.56
0.70 7.41 14.51 25.17 21.69 17.72 17.48
0.01 0.52 5.53 2.21 0.39 3.47 3.27
5.75 24.67 39.31 27.44 20.91 6.10 9.78
European Indices
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
MSCI ACWI Ex USA NR USD
1.19 0.66 8.86 6.08 11.77 7.06 1.01
0.95 0.48 1.24 4.54 8.23 7.34 5.19
1.60 3.19 6.31 3.07 7.23 5.80 3.41
0.46 0.71 1.93 1.76 9.97 4.12 3.09
World Index (ZAR)
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 2.99 7.66 25.20 15.05 14.28 16.33 18.68
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 0.44 4.28 4.83 9.77 13.40 8.67 3.83
World Index (USD)
Time Period: 2018/01/01 to 2018/09/30
2018/03 2018/06 2018/0975.0
80.0
85.0
90.0
95.0
100.0
105.0
110.0
115.0
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 YTD20.00
17.50
15.00
12.50
10.00
7.50
5.00
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
4.17 3.84
3.27
14.96
0.71
9.36
0.57
10.56
1.19 1.01
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: 2018/09/01 to 2018/09/30
Return
Aspen Pharmacare Holdings PLC
Blue Label Telecoms Limited
Steinhoff Interna�onal Holdings NV
Netcare Limited
Mediclinic Interna�onal PLC
Trencor Limited
41.88
26.82
17.86
17.51
15.69
14.92
JSE Losers YTD
Time Period: 2018/01/01 to 2018/09/30
Return
Blue Label Telecoms Limited
Fortress Income Fund Ltd Class B
Resilient REIT Ltd
Steinhoff Interna�onal Holdings NV
Pan African Resources PLC
Greenbay Proper�es Ltd
64.83
59.65
53.95
50.54
46.29
45.31
September 2018 Page 1
JSE Top 40 Holdings
Por�olio Holding's Date: 2018/09/30
Market Cap (mil) 1 M 1 Y 3 Yr YTD
Naspers Ltd
BHP Billiton PLC
Richemont Securi�es Ag ADR
Anglo American PLC
Sasol, Ltd.
Standard Bank Group Ltd.
Firstrand Limited
Bri�sh American Tobacco PLC
Mtn Group Limited
Old Mutual Ltd
Mondi PLC
Sanlam Limited
Absa Group Ltd
Remgro Ltd
BidCorp Ltd
Shoprite Holdings Limited
Vodacom Group Ltd.
Growthpoint Proper�es Ltd.
Investec PLC
Aspen Pharmacare Holdings PLC
Bidvest Group
Discovery Holdings Ltd
Nedbank Group, Ltd.
Mr Price Group Ltd
Capitec Bank Holdings Limited
Redefine Proper�es Ltd.
Rmb Holdings Limited
AngloGold Ashan� Limited
Sappi, Ltd.
Woolworths Group Limited
Mondi Limited
NEPI Rockcastle PLC
Clicks Group Limited
Tiger Brands Limited
Foschini Group Limited
Reinet Investments SCA
Truworths Interna�onal Limited
The Spar Group Limited
Netcare Limited
Life Healthcare Group Holdings Ltd.
1 024 631.11 6.36 4.73 21.08 11.38
81 535.10 4.63 33.87 22.49 15.58
588 913.00 8.82 3.17 4.82 6.49
22 703.96 11.77 34.35 49.68 16.14
295 929.70 3.57 51.06 15.64 31.41
260 796.37 3.78 16.85 13.98 5.75
362 137.13 4.00 35.56 15.20 3.24
83 010.71 3.68 20.25 3.65 26.62
156 143.23 1.58 24.56 14.40 31.31
— — — — —
6 536.89 1.91 12.17 19.23 16.47
147 242.77 0.29 21.21 13.37 5.94
126 840.48 3.55 17.07 2.50 10.12
106 039.04 8.00 1.48 5.13 15.32
89 252.44 5.06 1.11 — 0.51
98 022.85 4.69 5.03 9.45 11.39
207 012.21 0.36 16.79 3.02 10.58
66 450.72 4.47 4.18 4.31 8.47
3 173.70 6.56 3.41 6.32 3.38
69 267.91 41.88 43.26 15.58 38.96
61 459.80 12.96 10.37 11.68 12.78
98 320.44 2.97 22.27 8.43 7.79
118 603.06 2.30 37.35 11.20 8.54
60 512.52 1.30 30.63 8.79 5.22
113 480.95 2.14 20.94 28.46 5.42
50 822.24 3.19 2.57 2.73 1.01
105 524.82 6.11 30.03 10.35 3.11
58 531.13 3.82 3.30 4.35 3.96
45 595.37 11.59 1.25 29.55 1.91
48 084.98 6.11 13.19 15.57 20.20
39 895.20 5.29 14.17 14.03 28.49
72 999.34 4.95 25.65 2.18 36.11
46 083.94 13.79 12.87 26.92 1.53
47 529.53 7.42 26.91 0.93 40.06
38 051.56 0.70 33.20 11.58 8.03
45 862.77 7.65 — — 3.53
35 438.57 1.10 13.53 4.40 7.19
33 201.49 10.18 14.42 3.34 8.06
32 664.00 17.51 5.97 9.29 0.24
34 958.91 7.88 7.13 5.37 8.50
JSE Top 40 Return per annum
2013 2014 2015 2016 YTD5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
22.8
9.27.5
1.6
25.0
FTSE/JSE Top 40 TR ZAR
Re
turn
South African Headlines
An immediate posi�ve response in the local currency post the R43million s�mulus package announced by Pres. Ramaphosa
li�ed sen�ment, which if sustained and backed with implementa�on, could posi�vely affect growth in South Africa. South
Africa requires fixed investment, which has fallen from 23% in 2008 to below 20% in the second quarter of 2018. To date
$10bn dollars has been pledged by Saudi Arabia, while $15bn has been pledged by China. A higher level of fixed investment
would be posi�ve for sustained higher levels of trend growth in the country. Although the ini�a�ves that were announced
includes a focus on small and medium enterprises, the president also announced it would target the mining sector and
commodi�es to boost longer term growth. However, the revised mining charter s�ll has requirements that make South
Africa less a�rac�ve as an investment des�na�on. The Charter has le� requirements for a black economic empowerment
(BEE) ownership target of 30% and an effec�ve free carry interest on new mining rights.
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September, weighed down by a fall
in new sales orders and employment. The index, which is compiled by the Bureau for Economic Research and gauges
manufacturing ac�vity in Africa’s most industrialised economy, was at 43.2 in September from 43.4 in August, staying below
the 50mark separa�ng contrac�on from expansion. The index fell to a 13month low in August. As respondents s�ll noted
an improvement in export orders, the weakness is more than likely driven by poor domes�c demand condi�ons, including
from the South African mining and retail sectors. The employment index lost further ground in September and is now at its
lowest level in more than four years.
ARM
African Rainbow Minerals Ltd will pay a record dividend this year as rising ironore and manganese prices boosted earnings at
its ferrous unit. ARM will pay investors 6.50 rand a share, almost triple that of the previous year, and its 11th consecu�ve
dividend, the Johannesburg based company said in a statement. The company benefited from a 45% increase in prices
received for exported iron ore and 93 percent more for its manganese.
While ARM is “confident in the longterm outlook for commodi�es,” the company said prices will “remain vola�le” this year.
The rand, in which ARM pays most of its costs, has strengthened against the dollar this year, reducing earnings. The stock
climbed 0.8 percent to 112.86 rand a share at 9:48 a.m. in Johannesburg, bringing this year’s gain to 15 percent. That’s
helped boost the wealth of Execu�ve Chairman Patrice Motsepe, who owns about 40 percent of the company. The former
lawyer turned entrepreneur is worth about $2 billion, according to data compiled by Bloomberg. ARM’s headline earnings
tripled to 3.2 billion rand ($250 million) in the year to June 30, the company said in the statement. That was mainly due to
the performance of its ferrous division, but it also turned losses to profits at its coal and pla�num opera�ons. The company
made a 203 millionrand loss at its copper division and is planning to sell its stake in the Lubambe mine in Zambia to private
equity firm EMR Capital Advisors (Pty) Ltd.
SPG
Super Group is a leading transport logis�cs and mobility group providing endtoend supply chain solu�ons (creates the
pla�orm for the company to partner with its clients and create innova�ve supply chain solu�ons. From procurement and
warehousing, to passenger and cross border transport. This division integrates smaller business units to create a strong
footprint across the en�re supply chain industry), fleet management (fleet solu�ons division provides flexible vehicle rental
and leasing solu�ons to a diverse range of clients. Focus on SA market fleet Africa has the exper�se to manage commercial
and specialised fleets, from large corporates to smaller municipali�es. SG Fleet in Australia, manages more than 92,000
vehicles, offering a range of fleet management and leasing products to corporates and public sector u�li�es. They operate
subsidiaries in NZ and the UK) and dealership (represents major brands of passenger and light and medium commercial
vehicles and heavy duty trucks) to a diversified global customer base. Super Group comprises supply chain and mobility
businesses focused on offering a comprehensive range of services, u�lising worldclass skills and technology SPG Overview
& valua�on. They own 75% of in�me courier services (Express courier services in the niche logis�cs sector of �me cri�cal
delivery in the UK).
The outlook for its SA opera�ons will be impacted by the macro headwinds, however with 60% of its EBIT now offshore, this
geographical diversifica�on will support its growth par�cularly its 52% stake in SGFleet in Australia, which is well posi�oned
to grow both organically and through poten�al M&A.
The stock has rallied post SG Fleet’s results a few weeks ago and subsequently post its own results last week. Looking at a
SOTP, there does s�ll seem to be some upside from current levels (R44) and removing SG Fleet from the valua�on suggests
the underlying SA+ Europe assets are trading at a fairly undemanding mul�ple of c.9.4x
Stock Informa�on
1 M YTD25.00
20.00
15.00
10.00
5.00
0.00
5.00
10.00
15.00
20.00
25.00
4.70 3.23 2.651.70 1.67
8.7812.83
0.74
13.27
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: 2017/10/01 to 2018/09/30
2018/03 2018/09
97.5
100.0
102.5
105.0
107.5
110.0
112.5
FTSE/JSE Top 40 TR ZAR 103.3
JSE Top 40 Index
September 2018 Page 2
More than sufficient evidence was again presented during September to underline the fact
that the US economy remains in health. One of the most notable data releases was that of the
ISM (PMI) Nonmanufacturing index, which rose to a 21year high. The labour market is also
s�ll very strong, with the unemployment rate dropping to a 49year low of 3.7% (from 3.9%
previously). Notwithstanding the robust data, there are concerns in some quarters that the
growth is too robust. The US bond market has seen steadily rising yields and declining prices,
which has undermined the posi�ve tone that prevailed in the equity market recently.
The Interna�onal Monetary Fund (IMF) reduced its global growth forecast for 2018 and 2019
to 3.7% from 3.9% earlier while keeping the US growth forecast for 2018 unchanged at 2.9%
and reducing the 2019 growth forecast for US by 0.2% to 2.5% ci�ng concerns about the
looming trade war. The IMF sounded the alert on the global trade war saying it could take a
significant bite out of global growth, es�ma�ng output could fall by more than 0.8% in 2020
and remain 0.4% below its trend line over the long term, in a scenario where US President
Trump follows through on all his threats, including global du�es on cars.
The S$P500 Index ended the month 0.6% higher, helped by buoyant consumer confidence. It
is important to note however, that technology and consumer discre�onary stocks and share
buy backs have largely underpinned the gains in the US equity market for the year to date. As
widely expected, the Fed raised its target for the federal funds rate to between 2.0% and
2.25%. Further interest rate hike is an�cipated for the year in December2018 with further
three interest rate hikes in forecast in 2019.
American Headlines S&P 500
Time Period: 2018/09/01 to 2018/09/30
2018/09
99.0
99.5
100.0
100.5
101.0
101.5
S&P 500 TR USD 100.6
NASDAQ
Time Period: 2018/09/01 to 2018/09/30
2018/09
97.0
97.5
98.0
98.5
99.0
99.5
100.0
100.5
NASDAQ Composite TR USD 99.3
DJ INDUSTRIAL AVE
Time Period: 2018/09/01 to 2018/09/30
2018/09
99.5
100.0
100.5
101.0
101.5
102.0
102.5
103.0
103.5
DJ Industrial Average TR USD 102.0
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
1.97 9.63 11.02 20.76 20.49 14.57 8.83
0.57 7.71 11.41 17.91 17.31 13.95 10.56
0.70 7.41 14.51 25.17 21.70 17.72 17.48
American Indices
Asian Indices
European Indices
Turkey con�nues to a�ract a�en�on, for all the wrong reasons. The annual rate of infla�on rose from
17.9% last month, to 24.5% in September, the highest level in 15 years. And there is worse to come, if the
46.2% annual increase in producer infla�on (PPI) is anything to go by.
Household in the UK remain under pressure, despite a �ghter labour market. The headline rate of
unemployment dropped encouragingly to 4.1% in the second quarter of 2018. However, elevated
infla�on, mainly due to higher oil prices and a weaker pound, has eroded growth in nominal wages, with
real pay growth averaging 0.2% year to date. The weakness in the pound sterling is due to con�nued
uncertainty around Brexit. Consumer confidence in the UK remains in nega�ve territory, coupled with an
increase in the cost of servicing debt for Bri�sh households, increases the strain on the consumer, which
is already under pressure due to 0.2% real growth in disposable income. Con�nued trade tensions
globally, so� growth in real household spending due to poor wage growth along with economic and
poli�cal uncertainty related to the outcome of the ongoing Brexit nego�a�ons, should leave the UK
growth below 1.5% for 2018 and possibly 2019.
European Headlines FTSE 100
Time Period: 2018/09/01 to 2018/09/30
2018/09
97.8
98.5
99.3
100.0
100.8
101.5
102.3
FTSE 100 TR GBP 101.2
DAX
Time Period: 2018/09/01 to 2018/09/30
2018/09
96.0
97.0
98.0
99.0
100.0
101.0
FSE DAX TR EUR 99.1
CAC 40
Time Period: 2018/09/01 to 2018/09/30
2018/09
96.0
98.0
100.0
102.0
104.0
Euronext Paris CAC 40 PR EUR 101.6
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
MSCI ACWI Ex USA NR USD
1.19 0.66 8.86 6.08 11.77 7.06 1.01
0.95 0.48 1.24 4.54 8.23 7.34 5.19
1.60 3.19 6.31 3.07 7.23 5.80 3.41
0.46 0.71 1.93 1.76 9.97 4.12 3.09
Asian Headlines
In China, the central bank, the People’s Bank of China (PBOC), again lowered the amount of capital banks
need to hold in reserve (the reserve requirement ra�o or RRR), thereby easing monetary policy – the
fourth �me this year so far. In so doing, it will effec�vely release CNY750bn of liquidity into the banking
system. Although the PBOC reiterated its prudent and neutral policy stance in its statement, the RRR cut
should be seen as part and parcel of a strategy to be�er prepare China for its decelera�ng domes� c
economy. IMF es�mates output could fall by more than 1.6% in China and over 0.9% in the US next year,
in such a case. Elsewhere the IMF upped the infla�on forecast for the Venezuelan economy in 2018 to
1.37m% by the end of the year from its earlier forecast of 1m%.
The MSCI EM Index fell by 0.5% in September, driven by a con�nued fall in Asian markets. The MSCI Asia
Index lost 1.7% as a result of the con�nued trade war with the US. During the month, China approached
the World Trade Organisa�on to request permission to impose sanc�ons of $7billion a year on the US
economy in retalia�on for noncompliance with a ruling in the dispute over US dumping du�es.
NIKKEI
Time Period: 2018/09/01 to 2018/09/30
2018/0996.0
98.0
100.0
102.0
104.0
106.0
108.0
Nikkei 225 Average TR JPY 106.2
HANG SENG
Time Period: 2018/09/01 to 2018/09/30
2018/0994.0
96.0
98.0
100.0
102.0
Hang Seng HSI TR HKD 100.0
SHANGAI
Time Period: 2018/09/01 to 2018/09/30
2018/0996.0
98.0
100.0
102.0
104.0
DJ Shanghai PR CNY 103.3
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
6.17 8.91 13.44 20.77 12.93 13.50 3.48
0.05 2.49 4.96 4.40 13.04 7.66 6.87
3.27 0.42 11.33 14.84 1.63 6.43 17.14
September 2018 Page 3
Commodity Headlines
All the energy commodi�es were posi�ve for the month, led by Brent crude, which was up 7.4%.
Petroleum prices increased ahead of the November deadline for oil buyers to comply with U.S.
sanc�ons on Iran. Natural gas was also posi�ve for the month, up 3.6%, due to weather
condi�ons and an increase in export levels. Within the commodity space, we also saw a mixed
bag of performances. Perhaps the most notable was the 7.4% increase in the oil price, but the
respec�ve 5.1% and 3.5% rises in the iron ore and copper prices were also notable. Gold was
down 0.7% for the month and off 9.4% YTD. Silver was up 1.2% in September and off 14.8% YTD.
Silver benefited from the expecta�on of higher infla�on levels, while remaining a cheaper metal
with industrial applica�ons compared with gold.
Commodi�es
September 2018
Electric vehicles and expansion in the world
The year 1990 was an inflec�on point for personal computers and so�ware as Microso� crossed
the $1 billion threshold in revenue. For this fiscal year, the company is expected to have
revenues of $96 billion. That is a 19% compounded growth rate over 26 years. The year 2013 was
likely the inflec�on point for electrical vehicles as Tesla crossed the $2 billion revenue mark. Four
years later there are s�ll many scep�cs, but the evidence is clear: we are already living a
“Microso� moment” in EV and autonomous driving. According to industry es�mates, longrange
EV will cost around $22,000 in current USD, making them affordable even in EM countries.
Es�mates from Bloomberg New Energy Finance show that 35% of all global new vehicle sales are
EV. That es�mate could easily prove too low. If anyone is in doubt about the commitment of car
manufacturers, just talk to Volkswagen. The company is planning its strategy around EV and
promises 20 new models by 2020. The big ques�on is how much future oil demand will be
affected by EV and autonomous driving. The trends will likely reduce car ownership to the select
few (like private horses for the rich), and gasoline consump�on will plunge. If the current growth
rate in EV con�nues, then by 2023 EV will displace oil demand by 2 million barrels a day, almost
equivalent to the 2014 oil glut. In other words, the EV revolu�on will likely cause a major crisis in
the oil industry. Maybe the oil deep in the oceans will never be extracted? But the biggest joker
in the deck is autonomous driving, which could cut the number of cars significantly but also
op�mise gasoline consump�on and thereby cause an even faster decay in oil demand. In a super
longterm view, we are nega�ve on the oil industry, and we es�mate that capital in this industry
will provide low returns for shareholders.
Something Interes�ng
Time Period: 2018/01/01 to 2018/09/30
2018/03 2018/06 2018/09
85.0
92.5
100.0
107.5
115.0
122.5
130.0
S&P GSCI Gold TR 90.6 Oil Price Brent Crude PR 123.7
Currency Headlines
August and September were rela�vely vola�le months in the global foreign exchange markets. A
number of currencies experienced wild swings in value due to longrunning government
decisions finally coming to a head, sudden destabilizing behaviour in certain countries, or
exposure to these unstable governments through foreign investment. The dollar was rela�vely
stable, which allowed some respite following the emerging market currency carnage last month.
The rand firmed 3.5%, the Russian rouble 2.8%, and the Turkish lira 10.2%, but the Indian rupee
lost 2.1%. The ZAR was the third best performing currency against the US dollar for the month. In
line with some reprieve in the currency, SA’s 5year CDS spread retraced by 27 points in the
month. However, it remained 46 points wider than at the start of the year.
Time Period: 2018/01/01 to 2018/09/30
2018/03 2018/06 2018/0912.4
14.4
16.4
18.4
Currency EUR 15.9
Time Period: 2018/01/01 to 2018/09/30
2018/03 2018/06 2018/09
14.9
16.9
18.9
20.9
Currency GBP 18.7
GBP/ZAR
Time Period: 2018/01/01 to 2018/09/30
2018/03 2018/06 2018/0911.7
13.7
15.7
17.7
Currency USD 15.7
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
2018
2017
2016
2015
2014
2013
0.10 1.97 4.18 5.37 3.48 2.78 0.25 2.34 4.17
4.31 3.11 2.68 3.64 0.42 3.49 7.03 2.65 0.87 6.26 1.46 0.34
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
20.95
2.63
5.13
10.88
21.43
3.84
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
9.91 9.90 0.96 7.68 5.92 3.45 0.50 2.15 2.60
1.63 0.36 0.11 0.51 0.11 0.29 3.70 0.76 1.19 1.99 1.92 4.21
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
17.15
10.20
7.99
26.64
8.39
22.16
Monthly Returns MSCI World (ZAR) Monthly Returns MSCI World (USD)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
1.32 4.76 1.77 6.37 1.58 7.64 1.55 12.73 2.99
1.27 0.25 3.77 1.37 0.70 0.18 3.51 1.11 5.89 6.91 1.66 7.79
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
12.23
4.81
30.78
15.05
51.60
18.68
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
5.64 4.20 2.14 0.95 0.12 0.54 3.02 0.79 0.44
2.73 2.81 1.22 1.56 2.21 0.45 2.79 0.38 1.93 2.08 1.94 1.61
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
23.97
7.86
2.36
4.16
22.80
3.83
Beassa ALBI SA CPI Synthe�c (Headline)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
1.86 3.93 2.07 0.70 1.95 1.17 2.42 1.87 0.30
1.36 0.71 0.40 1.42 1.03 0.95 1.50 1.03 1.11 2.30 0.97 5.66
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
10.24
15.42
3.93
10.15
0.64
4.81
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
0.48 0.29 0.76 0.38 0.75 0.19 0.37 0.84 0.09
0.40 0.60 1.09 0.59 0.10 0.29 0.19 0.29 0.10 0.48 0.29 0.10
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
4.62
6.64
4.71
5.81
5.38
4.03
STeFI FTSE/JSE Ind/Industrials
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
0.60 0.54 0.60 0.58 0.59 0.55 0.61 0.59 0.57
0.65 0.57 0.63 0.61 0.63 0.61 0.62 0.62 0.59 0.61 0.58 0.60
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
7.56
7.37
6.47
5.91
5.19
5.37
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
5.76 2.27 4.90 3.55 10.20 2.52 0.45 2.52 6.42
2.25 0.73 2.12 2.82 0.04 3.73 1.91 4.57 2.37 3.64 4.13 7.15
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
14.73
21.55
10.07
6.99
21.50
14.13
FTSE/JSE Financial 15 FTSE/JSE SA Resources
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
2.31 5.11 3.66 3.01 6.71 2.84 6.56 0.26 1.96
0.99 0.10 0.87 4.09 1.63 2.07 5.58 2.93 2.38 2.58 5.89 9.77
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
24.38
3.55
1.06
27.83
19.83
3.75
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2018
2017
2016
2015
2014
2013
3.18 4.82 2.08 8.55 4.01 5.96 1.40 5.59 1.05
10.74 9.91 2.91 0.01 4.11 3.08 13.32 5.10 1.07 7.06 1.60 0.45
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
17.90
34.24
36.99
14.74
1.38
21.02
Page 5September 2018
Cau�ous Mul�-Managed Por�olioThe Fairtree Cau�ous Mul� Managed Por�olio gave some back of the strong performance in the month of August, the por�olio was down 1.41%. The income funds played their part in consistency by
contribu�ng on average between +0.47% and +0.72% to the monthly return. The main detractor of returns in the past month was the strengthening of the Rand. There was very li�le to write home
about on the local equity, a driver of returns for this por�olio. The JSE All Share was down 4.17%, while our local equity funds managed to protect on the downside being down only 2.74% and 3.00%
respec�vely. The current total equity exposure stands at 41.22%. The asset alloca�on stayed sta�c from the previous month, with no major moves.
High Yield IncomeThe diversified skills of the different asset managers and house views has served the por�olio well thus far. As the income por�olios are a game of small margins and less vola�lity, every few basis
points really does make a difference. The last month the por�olio was up by +0.59% and stands at +5.91% for the year. The biggest contributor for the month was the Fairtree Albi Plus Prescient fund,
being up +0.76% for the month. The Corona�on Income fund was also up +0.47% for the month. The All Bond Index was up +0.30% for the month and up +4.81% for the year to date. The Por�olio
however has managed to stand firm within the recent changes and delivered a return of +8.22% for the last 12 months.
Commentary
Correla�on Matrix
Time Period: 2016/10/01 to 2018/09/30
1 2 3 4 5 6 7
1.00
0.80 1.00
0.86 0.99 1.00
0.75 0.95 0.93 1.00
0.78 0.98 0.96 0.95 1.00
0.86 0.97 0.97 0.96 0.97 1.00
0.01 0.29 0.22 0.24 0.34 0.16 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 Stable Por�olio (PPS)
5 Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
6 (ASISA) South African MA Low Equity
7 Fairtree High Yield Income Por�olio
Posi�vely Correlated Nega�vely Correlated
Fairtree Cau�ous Por�ollio (PPS)
September 2018
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
Page 6
Fairtree Cau�ous Mul�Managed Por�olio
(Momentum)
Fairtree High Yield Income (Investec & Glacier) Fairtree Cau�ous Mul�Managed Por�olio
(Investec, Stanlib & Glacier)
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 Stable Por�olio (PPS)
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Low Equity
Fairtree High Yield Income Por�olio
0.96 2.98 7.61 8.38 7.98 8.56 7.48
1.41 2.50 7.39 8.00 8.52 8.75 4.45
1.37 2.67 7.49 6.72 7.69 8.26 4.39
1.30 1.60 4.46 4.71 6.00 6.82 3.12
1.05 2.94 7.40 6.68 8.14 4.78
0.59 1.91 3.21 8.22 8.90 8.71 5.91
Trailing Returns
REGULATION 28 SOLUTIONS: CAUTIOUS PORTFOLIOS
Time Period: 2016/10/01 to 2018/09/30
1 2 3 4 5 6 7
1.00
0.91 1.00
0.89 1.00 1.00
0.82 0.96 0.96 1.00
0.86 0.95 0.95 0.94 1.00
0.83 0.95 0.96 0.92 0.86 1.00
0.89 0.97 0.98 0.94 0.91 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 Moderate 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 Moderate Por�olio (PPS)
Fairtree Smart Beta Balanced Por�olio (Investec)
Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Medium Equity
1.95 2.58 7.46 7.40 8.15 8.63 3.28
2.04 2.68 7.85 8.38 8.89 9.19 3.43
2.04 2.19 6.07 10.84 9.04 10.51 4.34
1.62 3.12 8.15 10.23 9.42 9.79 7.63
2.14 1.51 5.07 3.83 5.37 6.66 2.03
2.33 2.17 7.09 4.30 6.89 2.57
Trailing Returns
Balanced Mul�-Managed Por�olioThe Fairtree Balanced Mul�Managed Por�olio lost some of its gains of the previous month and was down 2.04%. As we are at the end of the 3�� quarter the por�olio managed a return of +3.43%,
while the All Share Index was down 3.84%. The last month le� very li�le opportunity for any returns. The local equity market struggled as emerging markets came under pressure, as the US dollar
strengthened. The Rand fought back and strengthened enough to nullify any poten�al offshore returns. The equity alloca�on of the por�olio stands at 58.59% of which 23.93% is offshore exposure. As
we head into the last three months of a year marked by its ups and downs, we need to s�ck to our guns and the principles backing that up.
Smart Beta Balanced The Fairtree Smart Beta Balanced Por�olio was down 2.04% for the month of September. The por�olio stands at +2.19% for the quarter and +4.34% for the year to date. The por�olio currently holds a
total of 53.85% equi�es and a close to 30% total offshore alloca�on. The main driver for returns the past year has been because of the currency. The factor based investment process has proven to
protect capital very well and even delivered somewhat of an outperformance against the All Share Index. As we head into the last quarter of 2018 we need to trust in investment philosophies and
proven theories over �me as things are uncertain in a global environment. If business confidence can be restored in South Africa we can see some healthy returns come through in the near future.
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)
September 2018 Page 7
REGULATION 28 SOLUTIONS: BALANCED PORTFOLIOS
Time Period: 2016/10/01 to 2018/09/30
1 2 3 4 5 6 7
1.00
0.92 1.00
0.93 1.00 1.00
0.83 0.94 0.95 1.00
0.86 0.92 0.92 0.90 1.00
0.84 0.93 0.94 0.90 0.79 1.00
0.92 0.96 0.97 0.93 0.86 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 Balanced 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 Balanced Por�olio (PPS)
Fairtree Smart Beta Growth (Investec)
Fairtree Growth Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA High Equity
2.66 2.68 8.20 8.31 8.89 9.40 2.04
2.66 2.68 8.19 8.24 8.83 9.27 1.97
2.26 3.10 8.46 10.03 8.83 9.69 7.27
2.66 1.12 4.68 3.16 5.30 6.74 0.93
2.72 1.80 4.71 11.82 9.02 11.18 2.56
2.61 2.15 7.17 3.60 6.41 1.91
Trailing Returns
Growth Mul�-Managed Por�olioThe Fairtree Growth Mul�Managed Por�olio was down 2.66% for the last month and stands at +2.68% for the quarter. If you were 100% exposed to local equity market you would have lost 4.17%
for the month and 2.17% for the quarter. The por�olio has done excep�onally well in managing risk and providing downside protec�on, yet keeping tact with market par�cipa�on. The overweight
offshore exposure has been serving us well. In the last month the local equity market came under emerging market pressure. The current equity alloca�on of the por�olio is standing at 72.52%, of
which 23.82% is offshore equi�es. The por�olio has done well in tough market circumstances, managing market vola�lity and very li�le scope for any returns.
Smart Beta GrowthThe Fairtree Smart Beta Growth Por�olio was down 2.72% for the month of September. The Por�olio is doing well in capital preserva�on. The por�olio has done well in the 1 year, 3 year and 5 year
returns against its peers as well as the All Share Index. If you were exposed 100% to the All Share Index you would have lost 4.17% for the past month. The current asset alloca�on is dominated by
equi�es at a total of 69.45%. The local equity exposure sits at 45.64%, while the total offshore exposure is hovering at the 30% level. The main driver of returns in equi�es have really been struggling
under emerging market pressure. The value of the factor based investment styl has come through throughout the year and we believe it will do so for the remainder of the year as well.
Commentary
Fairtree Growth Mul�Managed Por�olio (Momentum) Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Growth Por�olio (PPS)
September 2018
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: 2016/10/01 to 2018/09/30
1 2 3 4 5
1.00
0.81 1.00
0.78 0.95 1.00
0.85 0.95 0.86 1.00
0.54 0.79 0.73 0.77 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)
5 Fairtree Property Por�olio
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
Fairtree Property Por�olio
2.63 2.47 7.79 5.50 7.44 9.97 5.08
4.17 2.17 2.27 3.32 6.67 7.99 3.84
2.53 2.50 7.77 7.50 9.21 11.30 4.97
3.53 1.96 6.27 9.02 7.16 1.49
4.09 1.78 11.92 6.63 3.13 11.89 7.20
Commentary
High Growth
The Fairtree High Growth Wrap Por�olio has a current foreign equity alloca�on of 39.11% against a local equity alloca�on of 24.32%. The overweight offshore alloca�on has detracted, together with
the lagging local equity market in the past month. Taking local market performance into considera�on the por�olio has been doing well, with a year to date return of +4.97%. There might be some
emerging market risk coming through in the la�er part of this year, we feel the offshore exposure if the por�olio will serve it well in such a �me. The por�olio is doing well in mi�ga�ng risk and
par�cipa�ng in the general market, both offshore and locally. The current market circumstances seems to provide some upside growth in the near future, but we will keep a close eye on the changes in
sen�ment and interest rates globally. We believe there is s�ll some growth in local and global equity markets to the la�er part of this year.
TFSA
The Fairtree Tax Free Savings Mul� Managed Por�olio was down 3.53% for the month of September. The Rand strengthening, meant that the overweight offshore exposure detracted some of the
recent gains of the por�olio. The factor based investment philosophy has worked excep�onally well in the beginning stages of this this year and has outperformed the market. The view in the future
will always be an overweight offshore alloca�on to growth assets, mainly through foreign equi�es and foreign proper�es. The current largest asset class holding is local equi�es at 49.68%. The
por�olio has a strong alloca�on to growth asset classes in terms of equi�es and proper�es both local and offshore. Heading into the rest of the year, we feel that the investment philosophy and factor
based investment style will serve us well in growth and downside risk management.
Fairtree High Growth Por�olio (PPS)
Fairtree Property Por�olio (Glacier)
Fairtree High Growth MM Por�olio (Mom Glacier & Investec) Fairtree TaxFree Savings MM Por�olio (Investec)
September 2018 Page 9
NONREGULATION 28 SOLUTIONS: HIGH GROWTH PORTFOLIOS
The All Share Index fell 4.17% in September, while the rand followed suite with the rest of the emerging market FX closing at R14.07. Emerging markets remained under pressure from stronger US
dollar, �ghter US monetary policy, China trade conflict, higher oil price and slower growth outlook for China and Europe. Some of these pressures briefly faded midmonth as Trump announced a 10%
tariff on $200bn of Chinese imports a�er the market expected a 25% tariff. Trade deals with Mexico and Canada and surprised interest rate hikes in Turkey and Russia also helped to curb some of the
nega�ve sen�ment towards emerging markets. The relief was short lived as strong US data and con�nued Fed hawkish rhetoric combined with poten�al poli�cal risk stemming from Italy (budget),
Brazil (elec�ons) and the UK (Brexit) caused the US dollar to strengthen further. Risk of higher oil prices in the wake of Iran sanc�ons and supply constraints in US shale added further pressures to
emerging markets. US data remain strong, unemployment is the lowest on almost 50 years and the fiscal boost from earlier this year will ensure growth remain on solid foo�ng well into 2019. The Fed
has gained more confidence in con�nuing to gradually adjust policy rates higher. For the rest of the world, the addi�onal Fed �ghtening, higher interest rates and higher oil price is having an adverse
effect. China has responded by easing both fiscal and monetary policy as well as allowing for a weaker currency. Europe is divided between a stronger German/French and weaker Italy/Spain. The ECB
may find it hard to debate future rate hikes in this environment, but infla�on is gradually rising and overall ac�vity remains above trend.
The Fairtree RMB Por�olios had a great month in August as the hedge fund exposure came through with some substan�al performance. The mul� strategy hedge funds in Fairtree Wild Fig Mul�
Strategy SNN QIHF and Fairtree Woodland Mul� Strategy SNN QI Hedge Fund delivered +2.36% and +1.60% respec�vely. The por�olios benefi�ed from the upside of the outperformance of the hedge
funds over the market. From a year to date perspec�ve the por�olio has been performing excep�onally. The main driver of these returns are the hedge funds, as the local equity market has been
lagging significantly.
Economic data from South Africa remains weak. A lack of confidence and poli�cal uncertainty con�n ue to weigh on economic ac�vity and the Rand. The SARB decided to keep rates on hold last month
but struck a fairly hawkish tone. Three out of seven members voted for a hike despite the weak economy. The commi�ee see the risk to infla�on to the upside given higher petrol price and weaker
Rand. We expect the SARB to hike rates within the next two mee�ngs. The SARB can do li�le to boost growth as the cause is structural in nature. The Treasury has li�le room to support growth.
However, Ramaphosa announced fiscal package of R48bn last month. The package will be funded by repriori�sing some fiscal spending and will be focussed on labour intensive sectors. We believe the
package will marginally support growth and along with some of the other measures around star�ng an infrastructure fund, smoothing tourist entries and the new Mining Charter will help securing
some certainty. The MTBPS will be delivered later this month. Early indica�ons are that revenues are only marginally lagging es�mates, however SOE’s need for funding will be closely watched.
Commentary
Correla�on Matrix
Time Period: 2016/10/01 to 2018/09/30
1 2 3 4 5 6 7 8 9 10
1.00
0.73 1.00
0.49 0.64 1.00
0.68 0.93 0.77 1.00
0.88 0.81 0.78 0.80 1.00
0.68 0.94 0.63 0.86 0.79 1.00
0.72 0.90 0.83 0.95 0.87 0.83 1.00
0.92 0.81 0.52 0.70 0.93 0.77 0.78 1.00
0.69 0.83 0.87 0.86 0.89 0.81 0.94 0.75 1.00
0.62 0.78 0.95 0.88 0.85 0.74 0.94 0.65 0.95 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Balanced Mul� Manager
3 Fairtree Capital Guarantee
4 Fairtree Cau�ous Mul� Manager
5 Fairtree Equity Index + Alpha
6 Fairtree Global
7 Fairtree Growth Mul� Manager
8 Fairtree Select Equity
9 Fairtree Empress Por�olio
10 Fairtree Juniper Por�olio
Posi�vely Correlated Nega�vely Correlated
Fairtree Cau�ous Mul� Manager Fairtree Balanced Mul� Manager
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Balanced Mul� Manager
Fairtree Capital Guarantee
Fairtree Cau�ous Mul� Manager
Fairtree Equity Index + Alpha
Fairtree Global
Fairtree Growth Mul� Manager
Fairtree Select Equity
Fairtree Empress Por�olio
Fairtree Juniper Por�olio
1.45 6.38 14.02 8.36 5.81 9.46 7.19
0.30 5.57 14.63 10.74 8.75 10.26 9.93
4.84 3.04 12.10 5.89 3.97 7.66 0.87
1.32 4.94 11.82 9.49 7.08 8.24 8.65
4.57 3.42 8.73 9.82 8.94 14.47 4.66
3.57 5.29 28.38 8.63 5.75 11.98 11.07
0.75 8.94 21.64 10.18 7.45 7.54
1.51 7.12 16.27 11.38 7.58 8.83
0.56 9.07 18.81 10.36 6.06 8.82 8.11
Trailing Returns
September 2018 Page 10
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE
Fairtree Global Por�olio
Fairtree Equity Index plus Alpha
Fairtree Empress
Fairtree Capital Guarantee
September 2018
Fairtree Juniper
Page 11
Fairtree Select Balanced
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE con�nued
Fairtree Select EquityFairtree Growth Mul� Manager
www.fairtreeprivateclient.com
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