“The Anchor Group continued to grow its assets under advice and
management in the first quarter of 2016 in tough market conditions. The
total assets at 31 March 2016 were R44.4 billion. Assets under
management were up R10.1 billion (+45%) for the quarter, with just over
R8 billion coming from the acquisition of 47.5% of Capricorn Fund
Managers…The long term strategy of Anchor is to become a major player
in South African asset management, with an increasing focus on offshore
investment. This will be achieved by both organic and acquisitive growth.”
“The first quarter of 2016 saw a significant reversal in the key drivers of
equity market performance globally, with the theme flowing over to South
African equities. In 2015, the stocks which led the market were growth-
oriented, generally more highly rated companies of “quality.”... The first
quarter of 2016 saw a dramatic rotation away from “growth” stocks toward
beaten-down “value” stocks. Importantly, it is worth highlighting that much
of this “value” is not necessarily reflected in very low earnings multiples, but
rather the fact that many of these sectors and companies’ share prices
have underperformed due to poor fundamentals.”
Peter Armitage
CEO
Sean Ashton
CIO
Top investment
team and
process
Businesses built
to deal with
financial advisors
Access to fund
managers and
top
management
Entrepreneurial
result-driven
approach
Top performing
asset manager
Value-based,
transparent fee
model
Access to special
opportunities
1 2 3 4 5 6 7
Anchor is structurally equivalent to a large asset
manager:
• Size, skill and quality of team
• Governance and oversight
• Flagship fund has a 3 year track record
(Anchor BCI Equity Fund)
BUT
can deliver performance normally associated with a
boutique manager 100.00
110.00
120.00
130.00
140.00
150.00
160.00
170.00
180.00
190.00
200.00
210.00
BENCHMARK
FUND
THE ANCHOR BCI EQUITY FUNDPERFORMANCE SINCE INCEPTION
SOURCE: Morningstar; Anchor Capital
Past performance is not necessarily an indication of future performance.
>R40 BN
TOP EQUITY
PERFORMANCE
OVER 3 YEARS
20 ANALYSTS 14 CA’S
12 CFA’S
120 STAFF
Q1
Growth
(%)
Q1
Growth
(R’bn)
End Mar
2016
(R’bn)
End Dec
2015
(R’bn)
End Dec
2014
(R’bn)
Assets Under Management 45% 10.1 32.5 22.5 7.3
Assets Under Advice 2% 0.2 11.9 11.6 1.3
Total 30% 10.3 44.4 34.1 8.6
Assets Under Advice & Management – 1Q16
• Listed September 2014
• Offices in
Johannesburg Durban
Pretoria London
Cape Town Mauritius
Global strategy
(London)
Local asset
allocation
Analysts give
bottom-up view
Model portfolio
created
Personalised to
your fund
Fund manager
operates fund
• Global macro strategy, supplemented by bottom up research
• Collective input but single decision making responsibility - no management by committee
• Nimble and able to reposition quickly
CIO & Fund Manager
Sean Ashton leads a team of over 20
investment professionals
A dynamic investment process led by high quality,
experienced investment professionals
• Fully fledged team across all asset classes
• Fund managers take ultimate responsibility, with
input from the team
• Weekly formal investment process meetings
• Informal daily investment meetings
• Close proximity working environment facilitating
communication and decision making
Nolan WapenaarHead: Fixed Interest
Peter ArmitageBalanced
Glen BakerHead: Alternatives
David GibbOffshore
Nick DennisOffshore
Peter LittleOffshore
Sean AshtonCIO and manger of the
Anchor BCI Equity Fund
A full range of investment funds across asset classes
and geographies
Local Offshore
Unitised
• Equity funds
• Income funds
• Regulation 28 fund
• Flexible funds
• Property funds
• Feeder funds
Unitised
• Equity funds
• Income funds
• Flexible funds
Segregated mandates
• Equity
• Balanced
• Yield
• Property
Segregated mandates
• Equity
• Balanced
• Yield
We’re valuation-centric but are happy to
pay premium ratings for premium
businesses - where growth outlook,
return metrics and cash flows warrant
this
…and these concepts cannot
be separated
…and a lack thereof deserves a
discount
Entrepreneurial teams are serial
value creators and this often cannot
be captured easily in a
spreadsheet, e.g. Discovery
Concentrated index leads to investments
in mostly poor quality companies rather
than good businesses experiencing
temporary trouble
We don’t put ourselves in one
philosophical box…we’re
neither value or growth
specific investors
133-Jun-16 Anchor Capital
Systematic
Risk
Specific
Risk
Analytics Path
- First step for Scenario
and Sensitivity
analysis
- Important piece for a
macro-based asset
allocation framework
- Crucial starting point
for a risk analysis/
monitoring tool Analysis will focus on the
behavior SA Bonds and
Currency under defined
Global scenarios
• The US is growing at a diminishing
rate
• However, since Q4 2015, inflation has
been slowly rising
• Major risk is having the Fed rapidly
rising interest rates to curb inflation in
a no growth environment
Anchor Capital 153-Jun-16
-2
-1
0
1
2
3
4
5
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16
USA Quarterly GDP
-0.5
0
0.5
1
1.5
2
2.5
USA InflationData Source: Thomson Reuters
Inflation Build-up
Data Source: Thomson Reuters
GDP = C + I + G + Net Exports
- C: Private Consumption
- I : Private Investments
- G: Government Expenditure
Private investment has been relatively flat the beginning of 2015 while Government expenditure has been flat for the period
Biggest drag to USA GDP has been the fall in private consumption and net exports
163-Jun-16 Anchor Capital
0
0.5
1
1.5
2
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
USA YoY Private Consumption Data Source: Thomson Reuters
2.3E+12
2.4E+12
2.5E+12
2.6E+12
2.7E+12
2.8E+12
2.9E+12
3E+12
USA Private Investment and Government ConsumptionFor the past 3-years
Government Expanditure Private Investments
Data Source: Thomson Reuters
-560
-540
-520
-500
-480
-460
-440
-420
USA Net EXPORTSData Source: Thomson Reuters
Still low
The US Economy: Labor Market
US labor markets has tightened significantly
Falling unemployment, low energy prices and rising hourly wages will increase consumer purchasing power
Increasing wage costs are not showing up yet in overall inflation because of the countervailing impact of oil prices and import prices
Thus, lower oil prices make it difficult to judge when wage pressures will become inflationary
This adds to the upside inflation risk on the US economy
Anchor Capital 173-Jun-16
0
2
4
6
8
10
12
9.8
10
10.2
10.4
10.6
10.8
Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15
US Unemployment Rate vs Real Hourly Wages
Real Hourly Wages US Unemployment Rate
Data Source: Thomson Reuters
0
0.2
0.4
0.6
0.8
1US Employment Cost Index
Data Source: Thomson Reuters
Decline in oil prices has exacerbated deflationary pressures in the US
Core CPI has been flat with a small up tick towards the end of 2015
The dollar appreciation relative to its trading partners has lowered import costs
Competitive pressure on US domestic firms to reduce prices
This further dampens the headline inflation
Anchor Capital 183-Jun-16
0
50
100
150
-4
-2
0
2
4
6
Ma
r-0
6
Se
p-0
6
Ma
r-0
7
Se
p-0
7
Ma
r-0
8
Se
p-0
8
Ma
r-0
9
Se
p-0
9
Ma
r-1
0
Se
p-1
0
Ma
r-1
1
Se
p-1
1
Ma
r-1
2
Se
p-1
2
Ma
r-1
3
Se
p-1
3
Ma
r-1
4
Se
p-1
4
Ma
r-1
5
Se
p-1
5
Effect of oil prices on US Inflation
Crude Oil Spot US Headline Inflation US Core Inflation
Data Source: Thomson Reuters
90
110
130
150
170
0
50
100
150
Fe
b-0
6
Au
g-0
6
Fe
b-0
7
Au
g-0
7
Fe
b-0
8
Au
g-0
8
Fe
b-0
9
Au
g-0
9
Fe
b-1
0
Au
g-1
0
Fe
b-1
1
Au
g-1
1
Fe
b-1
2
Au
g-1
2
Fe
b-1
3
Au
g-1
3
Fe
b-1
4
Au
g-1
4
Fe
b-1
5
Au
g-1
5
Fe
b-1
6
Impact of Oil Prices on US imports and TWI
Crude Spot US Trade Weighted Currency Index US Import Prices
Data Source: Thomson Reuters
95
100
105
110
115
120
125
Fe
b-0
6
Au
g-0
6
Fe
b-0
7
Au
g-0
7
Fe
b-0
8
Au
g-0
8
Fe
b-0
9
Au
g-0
9
Fe
b-1
0
Au
g-1
0
Fe
b-1
1
Au
g-1
1
Fe
b-1
2
Au
g-1
2
Fe
b-1
3
Au
g-1
3
Fe
b-1
4
Au
g-1
4
Fe
b-1
5
Au
g-1
5
US Import Price Index excluding FuelData Source: Thomson Reuters
The Euro Zone Economy: GDP Components
Euro Zone GDP components have all been on a gradual rise
This implies that the observed GDP growth as been a result of a combined positive contribution of the broad economic components
This provides a strength signal for the general economy
Anchor Capital 203-Jun-16
4.95E+11
5E+11
5.05E+11
5.1E+11
5.15E+11
5.2E+11
5.25E+11
Euro Zone Government Expanditure
Data Source: Thomson Reuters
6E+11
6.1E+11
6.2E+11
6.3E+11
6.4E+11
6.5E+11
6.6E+11
6.7E+11
Euro Zone InvestmentsData Source: Thomson Reuters
1260
1280
1300
1320
1340
1360
1380
Euro Zone Private ConsumptionData Source: Thomson Reuters
Analysis from the Philips Curve
- Relates an economies inflation to its output gap
- At full employment, the model assumes stable inflation
- Disequilibrium generates inflationary or disinflationary pressures
Euro area is still recovering from the 2008/2009 recessionary shock
Still in the process of reducing the output gap created in the 2008/2009
Degree of underutilization might still be higher relative to pre-recession period
This provides some insight on the current “dialectical” theme that underpins the Euro area
Anchor Capital 213-Jun-16
0
0.5
1
1.5
2
2.5
3
YoY Euro Zone Labor CostsData Source: Thomson Reuters
7
8
9
10
11
12
Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16
Euro Zone UnemploymentData Source: Thomson Reuters
Euro area has been experiencing strong disinflationary pressures up to 2014
Lack of demand has not been the ultimate cause of disinflation
Both low demand and low inflation are joint manifestation of an underlying disequilibrium in asset markets leading to the observed disinflation
Anchor Capital 223-Jun-16
-1
0
1
2
3
4
5
Euro Zone InflationData Source: Thomson Reuters
0.8
1
1.2
1.4
1.6
1.8
2
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
Euro Zone Services InflationData Source: Thomson Reuters
-10 -8 -6 -4 -2 0 2
Energy
Processed food, alcoho & tobacco
Non-energy industrial goods
Unprocessed food
Services
Contribution to the Euro Zone annual inflation (%)
Feb MarchData Source: Thomson Reuters
Disinflation Post
disinflationary
cycle
The Chinese Economy: GDP
China growth rate has been on a downwards spiral since late 2012
The export led capital investment growth model that underpins Chinese economy came under immense pressure due to decline in exports as a percentage of GDP
The strengthening of the Yuan that was fueled by the dollar strength since 2012 left its export industry under pressure
Anchor Capital 243-Jun-16
6
6.5
7
7.5
8
8.5
Ma
r-1
2
Ma
y-1
2
Ju
l-12
Se
p-1
2
No
v-1
2
Ja
n-1
3
Ma
r-1
3
Ma
y-1
3
Ju
l-13
Se
p-1
3
No
v-1
3
Ja
n-1
4
Ma
r-1
4
Ma
y-1
4
Ju
l-14
Se
p-1
4
No
v-1
4
Ja
n-1
5
Ma
r-1
5
Ma
y-1
5
Ju
l-15
Se
p-1
5
No
v-1
5
Ja
n-1
6
Ma
r-1
6
China GDP Y/YData Source: Thomson Reuters
20
22
24
26
28
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
China exports (%GDP)Data Source: Thomson Reuters
Cyclicality?
456789
60
80
100
120
Yuan/Dollar vs US Trade Weighted Dollar
USA Trade Weighted Index Yuen/USDData Source: Thomson Reuters
Yuan
Disparity
The Chinese Economy: A Glance at GDP Components
We currently have no conviction that China’s growth model has been gravitating towards consumption nor services driven
China growth will still depend on its exports particularly in response to global infrastructure development which is showing positive momentum
Anchor Capital 253-Jun-16
6.5
7
7.5
8
8.5
9
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
China Private Consumption (%GDP)Data Source: Thomson Reuters
46
48
50
52
54
56
China Services SectorData Source: Thomson Reuters
34
36
38
40
42
44
46
Fe
b-1
3
Ap
r-1
3
Ju
n-1
3
Au
g-1
3
Oc
t-1
3
De
c-1
3
Fe
b-1
4
Ap
r-1
4
Ju
n-1
4
Au
g-1
4
Oc
t-1
4
De
c-1
4
Fe
b-1
5
Ap
r-1
5
Ju
n-1
5
Au
g-1
5
Oc
t-1
5
De
c-1
5
Fe
b-1
6
Ap
r-1
6
iShare Global Infrastructure ETF
Data Source: Thomson Reuters
False Signals!Potential
Anchor
The Chinese Economy: Risk Factors
Dialectical phenomenon driven by a theme of “Appearance vs Reality”
- China’s foreign reserves have fell drastically, but to what level will this start to raise true alarm bells
- What are Chinese actual reserves together with their dollar assets
Banks - A ticking bomb that might not explode
- Loan creation by banks has been rising at the back on an increasing number on non-performing loans
- The banking sector credit risk has been increasing significantly since 2013
Major risk is that under current conditions of concentrated risk, it would take one default to drive the economy into a downwards spiral
Anchor Capital 263-Jun-16
2.8E+12
3E+12
3.2E+12
3.4E+12
3.6E+12
3.8E+12
4E+12
4.2E+12
China Foreign ReservesData Source: Thomson Reuters
00.20.40.60.8
11.2
China Commercial Bank Credit Risk Indicator
Data Source: Thomson Reuters
0
5E+12
1E+13
1.5E+13
0
2000
4000
6000
8000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China Non-Performing Loans and New Loan Issues
China's Non-performing Loans China's New Loan Growth
Data Source: Thomson Reuters
Growth vs Real Exchange Rate
• Growth in SA has deterioratedsignificantly
• The decline rate has increased between2014 to 2016
• Growth for 2016 was revised down from1.3 to 0.7
• Gross National income has been on adecreasing trend since 2012
3-Jun-16 Anchor Capital 28
0
1
2
3
4
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SA GDP Growth Rate Data Source: Thomson Reuters
200
2200
4200
6200
8200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gross National IncomeData Source: Thomson Reuters
55
70
85
100
SA Real Effective Exchange Rate
Data Source: Thomson Reuters
Growing Sectors as a % of GDP
• Finance, Real Estate and Bus services has been the moststable growth sector over the past
• Wholesale, retail and motor trade has shown an upwardcyclical growth trend
• General government has recently started ticking upwardsafter a gradual decline from 1993 to 2009
• Overall, these sectors have been an anchor for SA growthin recent years
Anchor Capital 293-Jun-16
0
5
10
15
20
25
Ma
y-9
3
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
Ma
y-1
2
Ma
y-1
3
Ma
y-1
4
Ma
y-1
5
GENERAL GOVERNMENT SERVICES
Data Source: Thomson Reuters
0
5
10
15
20
25
Ma
y-9
3
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
Ma
y-1
2
Ma
y-1
3
Ma
y-1
4
Ma
y-1
5
FINANCE,REAL ESTATE & BUS.SERVICES
Data Source: Thomson Reuters
1212.5
1313.5
1414.5
1515.5
Ma
y-9
3
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
Ma
y-1
2
Ma
y-1
3
Ma
y-1
4
Ma
y-1
5
WHOLESALE, RETAIL & MOTOR TRADE
Data Source: Thomson Reuters
Foreign Flows
• Foreigners were net buyers of SA
bonds during 2016
• Levels of net purchases for Jan
2016 look similar to those
observed in Jan 2015
• Foreign net purchases appears
to have been cyclical over the
past 4 years
-4000
-2000
0
2000
4000
6000
8000
Net Purchases of SA Bonds by Foreigners
Purchases Sales
Data Source: Thomson Reuters
-40000
40008000
120001600020000
Fe
b-0
9
Au
g-0
9
Fe
b-1
0
Au
g-1
0
Fe
b-1
1
Au
g-1
1
Fe
b-1
2
Au
g-1
2
Fe
b-1
3
Au
g-1
3
Fe
b-1
4
Au
g-1
4
Fe
b-1
5
Au
g-1
5
Fe
b-1
6
Cumulative Net Purchases of SA Bonds by Foreigners
Data Source: Thomson Reuters
Anchor Capital 303-Jun-16
Fundamental Analysis: Relative to other EM Currencies
• The Rand remains one of the top
worst performing currency relative
to the dollar on our selected EM
currencies
• The rand has improved from
being the worst performing
currency last month to being the
second worst performer
0 10 20 30 40 50 60 70
INDONESIAN_RUPIAH
NORWEGIAN KRONER
Indian_Rpees
TURKISH_LIRA
THAI BAHT
PERUVIAN_NUEVO
CHILEAN_PESO
BRAZILIAN_REAL
MEXICAN_PESO
RUSSIAN_ROUBLE
SA_ZAR
ARGENTINE_PESOS
Annual Depreciation of selected EM Currencies
Data Source: Thomson Reuters
3-Jun-16 Anchor Capital 31
Asset Allocation
Implications
What have we seen?
• Heightened market uncertainty
• Unconventional monetary policies assumed by major centralbanks which have altered the investment landscape
• Since Q2 2014 5 central banks have embarked on negativerates (Denmark, Euro Area, Japan, Sweden andSwitzerland)
• In Q1 2016, 14 central banks cut their interest rate
• Negative interest rates reduces the opportunity cost of holdinggold
• Given negative interest rates and increasing marketuncertainty, demand for gold increases
• More importantly, falling and negative rates are generallylinked to high gold prices, yet, rising rates are not necessarylinked to low gold prices
Anchor Capital 333-Jun-16
-1.50
-1.00
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3m 1y 2y 3y 5y 10y 30y
Nominal Yield Curves of various Advanced Economies
USA UK France
Germany Japan Switzerland
Data Source: Thomson Reuters
Yield Curve Movements
• Yield Curves and Interest Ratespushing further into negative territory
• Gold Price Implications
• Emerging Market implications
• Stabilization of oil price implications
Anchor Capital 343-Jun-16
-1
0
1
2
3m 1y 2y 3y 5y 10y 30y
Germany Yield Curve movement since 2012
2012 2014 2016
Data Source: Thomson Reuters
-1
0
1
2
3m 1y 2y 3y 5y 10y 30y
Japan Yield Curve movement since 2013
2013 2014 2015 2016
Data Source: Thomson Reuters
Fundamental Bond vs Actual SA Bond
• Our Fundamental model suggest that current
bond yields are over valued
• Spot valuation from the fundamental model
values SA 10-year yields at 10.06% while
actual yields are at 9.50%
• The fundamental valuation model has largely
been driven by rising credit spreads since
Sep 2015
0
3
6
9
12
15
Oc
t-0
8
Fe
b-0
9
Ju
n-0
9
Oc
t-0
9
Fe
b-1
0
Ju
n-1
0
Oc
t-1
0
Fe
b-1
1
Ju
n-1
1
Oc
t-1
1
Fe
b-1
2
Ju
n-1
2
Oc
t-1
2
Fe
b-1
3
Ju
n-1
3
Oc
t-1
3
Fe
b-1
4
Ju
n-1
4
Oc
t-1
4
Fe
b-1
5
Ju
n-1
5
Oc
t-1
5
Fe
b-1
6
Ju
n-1
6
SA 10yr Fundamental Bond
US 10yr Bond SA Sovereign Spread Inflation Differential SA 10yr Fair Value
Data
Data Source: Thomson Reuters
-6
-3
0
3
6
9
12
15
Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16
SA_10yr vs Fundamental 10yr
SA 10yr Fair Value Actual SA_10yr Implied RP
Model Spot : 10.06
Data Source: Thomson Reuters
Anchor Capital 353-Jun-16
Z-Score Bond Valuation
• SA Bonds have change
direction and are becoming
more attractive
• The 10yr bond appears to be
have moved more than the 5-
year bond
Anchor Capital 363-Jun-16
-3.5
-2.0
-0.5
1.0
2.5
4.0
5.5SA_5yr Z-Score
Cheap
Rich
Data Source: Thomson Reuters
-3.5
-2.0
-0.5
1.0
2.5
4.0
5.5SA_10yr Z-Score
Rich
Cheap
Data Source: Thomson Reuters
Rate Hiking Probabilities
• SA FRA’s are pricing in a strong
probability of a hike in July, possibly
more than 25bp
• The US FRA’s on the other hand are
currently pricing in a 70% probability of a
hike in the June meeting
Anchor Capital 373-Jun-16
0
20
40
60
80
100
Pro
ba
bility
of R
ate
Hik
es
Probabilities of Rate Hikes at MPC MeetingsImplied by 3 month FRA's
1st Hike 2nd Hike 3rd Hike 4th HikeData Source: Thomson Reuters
0
20
40
60
80
100
Jun-16 Jul-16 Sep-16 Nov-16 Dec-16
Probabilities of Rate Hikes at FOMC MeetingsImplied by US 3M FRA's
1st Hike 2nd Hike Data Source: Thomson Reuters
Fixed Income Attractiveness Increasing
Anchor Capital 383-Jun-16
History never repeats . . . but it rhymes
Anchor Income
Funds
Anchor Capital 403-Jun-16
© 2009-2015 Anchor Capital (Pty) Ltd. | An authorised Financial Services Provider Reg No # 2009/002925/07 | FSP No # 39834
© 2009-2015 Anchor Capital (Pty) Ltd. | An authorised Financial Services Provider Reg No
# 2009/002925/07 | FSP No # 39834
This report and its contents are confidential, privileged and only for the information of the intended
recipient. Anchor Capital (Pty) Ltd makes no representations or warranties in respect of this report or its
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Boutique Collective Investments (RF) (Pty) Ltd (“BCI”) is a registered Manager of the Boutique
Collective Investments Scheme, approved in terms of the Collective Investments Schemes Control Act,
No 45 of 2002 and is a full member of the Association for Savings and Investment SA. Collective
Investment Schemes in securities are generally medium to long term investments. The value of
participatory interests may go up or down and past performance is not necessarily an indication of
future performance. The Manager does not guarantee the capital or the return of a portfolio. Collective
Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of
fees, charges and maximum commissions is available on request. BCI reserves the right to close and
reopen certain portfolios from time to time in order to manage them more efficiently. Additional
information, including application forms, annual or quarterly reports can be obtained from BCI, free of
charge. Performance fees are calculated and accrued on a daily basis based upon the daily
outperformance, in excess of the benchmark, multiplied by the share rate and paid over to the manager
monthly. Performance figures quoted are from Morningstar, as at the date of this document for a lump
sum investment, using NAV-NAV with income reinvested and do not take any upfront manager’s charge
into account. Income distributions are declared on the ex-dividend date. Actual investment performance
will differ based on the initial fees charge applicable, the actual investment date, the date of
reinvestment and dividend withholding tax. Investments in foreign securities may include additional risks
such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk,
foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of
market information. Boutique Collective Investments (RF) Pty Ltd retains full legal responsibility for the
third party named portfolio. Although reasonable steps have been taken to ensure the validity and
accuracy of the information in this document, BCI does not accept any responsibility for any claim,
damages, loss or expense, however it arises, out of or in connection with the information in this
document, whether by a client, investor or intermediary. This document should not be seen as an offer
to purchase any specific product and is not to be construed as advice or guidance in any form
whatsoever. Investors are encouraged to obtain independent professional investment and taxation
advice before investing with or in any of BCI/the Manager’s products.
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