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ASSET ALLOCATION RANGE Nedgroup Investments Positive Return Fund December 2009 Risk rating 1 2 Fund objective 3 4 5 The fund seeks to offer investors total returns that are in excess of inflation over the medium-term through active asset allocation and with a high emphasis on capital protection. The fund specifically aims not to have negative returns over any 12-month period. The manager may invest in a mix of local and international equities, bonds, property and cash. A maximum of 75% of the fund’s assets may be invested in domestic equities at all times. The fund complies with Regulation 28 of the South African Pension Funds Act. General information Sector Investor profile Domestic AA Targeted A&R Return The fund is suitable for conservative investors requiring a high level of capital protection with the potential for capital growth through protected exposure to equity markets. Diversification across all asset classes and a maximum net equity exposure of 75% helps to reduce risk and volatility relative to an average prudential portfolio. Risk benchmark No negative 12-month periods Performance target CPI + 4% p.a. over rolling 3-year periods Performance Investment manager Herman Steyn & Ronell van Rooyen Prescient Investment Management Period Fund 1 year 10.4% 9.0% 2 years p.a. 10.6% 12.4% 3 years p.a. 10.7% 12.2% Benchmark* * One month lag; Measured using CPIX to December 2008, thereafter CPI • Data Source: © 2009 Morningstar, Inc. All rights reserved. For the period ending 31 December 2009 for a lump sum investment, using NAV-NAV prices with income distributions reinvested. Appropriate term Minimum 3 years • Managed by Herman Steyn & Ronell van Rooyen since inception. Market value R4,154 million Portfolio structure Net effective exposure Asset class Current Inception date Protected equity 0.2% Protected equity 49.8% 1 June 2006 Bonds 5.5% Equity futures/options -49.6% Money market instruments 94.3% Net effective equity exposure Total 100.0% Minimum investment 0.2% Lump sum: R10,000 Monthly debit order: R1,000 Sensitivity from to March 10 Income distributions 13.5% 30 June, 31 December December 2009 distribution: 2.59cpu Initial fees: 0% Financial adviser fee: max 3.42% Management fee: 0 to 2.85% p.a. (Performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 2.85% (incl. VAT) over any rolling 12month period.) Portfolio return sensitivity 13.0% Fees (including VAT) 12.5% 12.0% 11.5% Sensitivity with up/down market Total expense ratio* Fund Return YTD 1.10% 30% 27% 24% 21% 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% -12% -15% -18% -21% -24% Tel 0860 123 263 (RSA only) -27% Contact Client Service Centre -30% 11.0% FTSE/JSE Top 40 movement +27 21 416 6011 (outside RSA) Fax 0861 119 733 (RSA only) +27 11 263 6067 (outside RSA) Website www.nedgroupinvestments.co.za Email firstname.lastname@example.org The graph above shows the performance of the fund for the year to date (orange dot in graph) as well as the profile for market movements ranging from +30% to -30% going forward. As an example, should the market (as represented by the FTSE/JSE Top 40) deliver a return of -30% going forward, the fund is positioned to deliver a return of above 10% to the end of March 2010 for the 15-month period. A market move of +30% will see the fund yielding some 14% for the 15-month period. Returns have not been annualised. DISCLAIMER: Unit trusts are generally medium- to long-term investments. The value of units may go down as well as up and past performance is not necessarily a guide to the future. Unit trusts are traded at ruling prices and can engage in scrip lending and borrowing. Different classes of units may apply to these portfolios and are subject to different fees and charges. Unit trust prices are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accruals and less any permissible deductions (brokerage, Uncertificated Securities Tax, VAT, auditor’s fees, bank charges, trustee and custodian fees and the annual management fee) from the portfolio, divided by the number of units in issue. A schedule of maximum fees and charges is available on request from us. Fees and incentives may be paid, and if so, are included in the overall costs. Portfolios are valued daily at 15:00. Instructions must reach us before 14:00 (11:00 for Nedgroup Money Market Fund) to ensure same day value. A member of the Association for Savings & Investment SA. Nedgroup Collective Investments Limited: Co. Reg. No. 1997/001569/06 Address: PO Box 1510, Cape Town, 8000 Trustees: The Standard Bank of South Africa Limited, PO Box 54, Cape Town 8000 *Total Expense Ratio (TER) The annualised TER shown above is for the 12 month period to 30 September 2009. This percentage of the average Net Asset Value of the portfolio was incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs.