Performance (%) Fund* Benchmark1 Month 2.96 1.83

3 Months 3.36 2.39

6 Months 1.77 1.62

YTD 9.67 7.25

1 Year 9.67 7.25

2 Years (annualised) 11.45 7.23

Since Launch (annualised) 15.77 12.38

Key Information %

Cumulative performance - 2 years*

Benchmark

Risk statistics (2 years) Fund* BenchmarkReturns (annualised) 11.45% 7.23%

Standard deviation (annualised) 12.79% 10.74%

% Positive months 70.83% 66.67%

Maximum drawdown -13.77% -13.06%

Sharpe ratio 0.84 0.60

Fees (incl. VAT)

Annual Wrap fee 0.29

Underlying Manager TER's 0.93

EAA OE USD Moderate Allocation 100.00

Currency USD($)

Risk profile Moderate

Investment period 5 years or longer

Launch date 01 October 2020

Fund Details

Fund Objectives

The investment objective of the Fund is to provide medium to high levels of capital growth through higher levels of exposure to global equity markets over a market cycle. This Fund is suitable for investors who want to grow capital significantly over a 6-year or longer timeframe. The Fund can have a maximum equity exposure of 70%, depending on the investment manager’s investment strategy for a Moderate portfolio at the time.

Global Asset Allocation

Holdings as at Month End %AB Global Real Estate 3.00

Baillie Gifford Worldwide Emerging Markets Leading Companies

2.50

Baillie Gifford Worldwide Long Term Global Growth 4.20

Catalyst Global Real Estate 4.50

Dodge & Cox Worldwide - Global 2.00

Fidelity Funds - World 6.75

Fundsmith Equity 3.15

Goldman Sachs Global Core Equity Portfolio 4.50

Legg Mason Brandywine Global 3.00

MFS Meridian Funds - Global Equity 5.40

Nedgroup Investments Global Equity 5.00

Nedgroup Investments Global Pr 3.00

Neuberger Berman Global Opport 5.00

Ninety One GSF Global Franchise 5.75

PGIM Absolute Return 2.00

Pictet - PPMF (CH) - Phy 2.00

PIMCO GIS Low Average Duration 1.00

PIMCO GIS Total Return Bond 4.00

Pimco Global Bond 6.00

PIMCO Global LIBOR Plus Bond 7.00

Sanlam Global High Quality 5.75

Sanlam Real Assets 2.00

Schroder ISF Global Recovery 8.00

T. Rowe Price Emerging Market Discovery Equity 2.00

TT Emerging Markets Equity 2.50

* The simulated analysis before launch date was created using Morningstar and is for illustrative purposes only. It provides an indication of hypothetical past performance given historic asset and manager allocation, and cannot be construed as providing an indication of expected future performance. The investor is liable for CGT on any transactions in the unit trusts of the underlying unit trusts within the wrap funds. Compulsory investments are not subject to CGT. Performance is calculated using net returns (after fees) of the underlying unit trusts, and quoted excluding wrap fund fees. Performance quoted is pre-tax. Fund performance numbers shown are for a notional portfolio and do not reflect the actual performance of the client invested in the wrap fund due to timing differences of investments or disinvestments of the client. Dual-listed wraps will reflect combined fund sizes and will reflect primary platform performance information. Benchmark returns for CPI are based on actual published returns and an estimated one month return for the month of the report date. ASISA Benchmark returns are the ASISA returns available as at the time of reporting.

Glacier Invest Global Specialist Moderate

Multi-ManagerDecember 2021

Commentary

Market Review

Financial markets rallied in December in volatile trade.

The emergence of the COVID Omicron variant rattled markets initially, but investors were encouraged by reports that the variant, while more infectious, produced less severe illness.

Global central bank policy announced in December showed policy divergence across the globe. The December US Federal (Fed) Open Market Committee meeting will likely be seen as an inflection point in US monetary policy, exemplified by the Fed Chair’s contention that we should stop using the word ‘transitory’ when describing the current inflation environment. The more hawkish tone was on the back of historically high inflation that has been more persistent than most had predicted. US Consumer Price Inflation increased by 0.8% on a month-on-month basis and was up 6.8% over the prior year, the largest annual increase since 1982. Headline producer price Inflation increased by 9.6% year-on-year.

In reaction, the Fed announced that it would decrease monetary stimulus more rapidly. The Fed did not change its short-term policy rate, but did telegraph its projections for three rate hikes in 2022. The US Treasury market sold off on the news, with the front end of the curve taking the brunt of the sell-off. The Bank of England surprised the markets with an increase in its policy rate. The European Central Bank and Bank of Japan announced that they would also taper their asset purchasing plans (decrease stimulus), but their tapers would likely run into 2023.

Interestingly, the Peoples’ Bank of China (PBoC) is moving in the opposite direction, finally starting to ease policy to stimulate economic growth, after a protracted period of aggressive and far-reaching regulatory actions and lack of monetary stimulus, which had acted as a drag on growth over 2021. In early December, after cutting the reserve requirement ratio (RRR) by 50 basis points (bps), the PBOC lowered the re-lending rate by 25 bps to support agricultural and small enterprises. In 2022, there may be more cuts to the RRR and the short-term loan prime rate (LPR) to reduce lending costs. The easing bias of the PBOC reflects the growing concerns of Chinese policymakers about downside risks to the economy. Supportive fiscal and monetary policy, which have been reintroduced recently, might continue at a larger scale in 2022.

Against this back-drop, developed market equities increased 4.27%, while emerging market equities continued to underperform, gaining only 1.81%. The US Treasury curve flattened as the 2-year yield increased twenty-one bps to close at 0.73%, while the US 10-year yield rose by seven bps and closed at 1.51%. The Bloomberg Global Aggregate Bond index fell by 0.14%. Property had a strong month, with the EPRA/NAREIT Developed Markets Property Index gaining 6.33%.

Oil prices increased 13.6% over the month to close at $75.15 a barrel. Gold prices increased by $51.20, or 3%, to $1828.10 an Oz.

Comments on Fund Selection and Performance

Relative to the strategic asset allocation of the portfolio, the Glacier Global Specialist Moderate BIV portfolio was positioned, going into December, overweight to developed market (DM) equities, emerging market (EM) equities and property. The portfolio was underweight bonds and cash. It maintained an allocation to gold bullion. The portfolio also held a position in listed real asset securities, such as infrastructure, renewable energy and specialist property listed assets.

The tactical overweight allocation to gold bullion and listed real assets was thus at the expense of bonds and cash. Both these allocations contributed to performance relative to bonds and cash.

Most DM equity managers outperformed the benchmark over the month, although two managers, one with a Growth style and one with a Quality style, underperformed. Our EM equity manager with a Value style outperformed the relevant index but the other EM managers underperformed.

The asset allocation decision to maintain an underweight position in global bonds contributed to performance this month and all bond managers outperformed relative to the Bloomberg Global Aggregate Bond Index.

One of our property managers underperformed and two outperformed their respective benchmark. Overall, versus the Fund’s strategic asset allocation, tactical asset allocation was a contributor, while manager selection, particularly in relation to DM equities, detracted. The net result was underperformance relative to our strategic asset allocation benchmark of 0.26% but outperformance of 1.05% versus the portfolio’s benchmark, the EAA Fund USD Moderate Allocation peer group.

Outlook

Investors are, rightfully, preoccupied with the time horizon and magnitude of expected inflation, and the effect this will have on central bank monetary policy. The market will continue to react sharply to any challenge to global growth, such as that induced by Covid mutations, in the face of slowing but still positive global growth, reduced monetary stimulus and developed market equities trading at high multiples. Investors are concerned that developed market central banks are not in full control of inflationary pressures and may be forced to hike interest rates aggressively, placing pressure on both bonds and equities.

In emerging markets, valuations are lower, but this prices in a more difficult monetary and growth backdrop and, in the case of China, a hostile and uncertain regulatory environment. Market participants are adopting a cautious stance with respect to slowing growth in China, and the incipient stimulus introduced by the PBOC.

The strong post-Covid financial asset recovery is now over, risks are heightened and we expect increased volatility over the coming months.

Glacier Invest Global Specialist Moderate

Multi-ManagerDecember 2021