Post on 09-May-2020
GSF Investec Africa Opportunities Fund An entry point to the growth of Africa
January 2012
This presentation is intended for the recipient only and should not be onwardly distributed
Include Mishnah Seth & Kim Scholtz-Clark on the emails
Page 1 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Agenda
● Investec Asset Management – African with global perspective
● Africa alive with opportunities
● Investec Africa Opportunities Fund – an entry point to the growth of Africa
● Africa Opportunities Fund portfolio
● Appendix
− Theme and stock examples
− The Investec Pan Africa strategy
Page 3 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Global specialist asset manager
As at 30 September 2011
*Permanent employees
Investec Asset Management
● Founded in 1991 by current leadership
● Independently managed entity within
Investec Group
● Origins are African – presence and
perspective is global
● Investment and Operational hubs in London &
Cape Town
● Client group teams in Africa, Americas, Asia,
Australia, Europe, Japan, Middle East and the
UK
● Over 700 employees*
● US$82.7 billion in assets under management
Investec Asset Management Offices
Short Pack
Page 4 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Frontier investments are among our core capabilities
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The development of our Africa and Frontier business
1991 ● IAM Commenced business focusing on South African institutions and mutual funds
1997 ● Opened Offices in Botswana and Namibia (Domestic equity and debt investments)
2001 ● First local manager to implement multi-specialist model in South Africa
2004 ● Established investment team to research African companies outside South Africa, Namibia and Botswana: The
Africa Team
2005 ● Launched the Investec Pan Africa Strategy
2007 ● Established Middle East investment capability
2008 ● Launched Africa Middle East (“AME”) and Middle East North Africa (“MENA”) Strategies
● Launched Africa Private Equity Fund
2009 ● Launched Pan Africa Institutional LLC (US)
● Established co-investment capability
2010 ● Launched Africa Opportunities Fund
● Established focused Africa credit capability
● Special Opportunities
2011 ● Development of Emerging and Frontier Markets Equity Strategy*
● Development of [Emerging Countries Completion Equity Strategy]*
● Development of [Emerging and Frontier Markets Multi-Asset Allocation Strategy]*
A Leading
Investment
Manager in
Southern
Africa
… in
Developed
Markets
...and
Emerging
Markets
* Launch date to be confirmed
...in
Frontier
Markets
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We are a leading investor on the continent1
Equity and Debt, South Africa c.$34.8bn
Equity and Debt, Pan Africa c.$2.7bn
Pan Africa Investment, Total c.$38bn
1: Assets under management have been rounded to the nearest $100m
Source: Investec Asset Management, September 2011.
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Africa in context
Area Share Population Share GDP Share
(mkm2) (% of Total) (Bn) (% of Total) ($Bn) (% of Total)
Pan Africa 42 29% 1.0 14% 1,432 3%
Middle East 6 4% 0.3 4% 2,155 4%
Africa Middle East ("AME") 48 33% 1.3 18% 3,587 6%
Other Frontier Markets 18 12% 1.0 15% 2,680 5%
Total Frontier Markets 66 46% 2.3 33% 6,267 11%
MSCI Emerging Markets (excluding AME) 47 32% 3.6 53% 12,943 23%
Developed Markets 32 22% 0.9 13% 37,976 66%
World 145 100% 6.8 100% 57,186 100%
Source: GDP and Population: Global Insight, September 2009; Area: World Bank 2008
Area Share Population Share GDP Share
(mkm2) (% of Total) (Bn) (% of Total) ($Bn) (% of Total)
Pan Africa 42 29% 1.0 14% 1,432 3%
Middle East 6 4% 0.3 4% 2,155 4%
Africa Middle East ("AME") 48 33% 1.3 18% 3,587 6%
Other Frontier Markets 18 12% 1.0 15% 2,680 5%
Total Frontier Markets 66 46% 2.3 33% 6,267 11%
MSCI Emerging Markets (excluding AME) 47 32% 3.6 53% 12,943 23%
Developed Markets 32 22% 0.9 13% 37,976 66%
World 145 100% 6.8 100% 57,186 100%
Source: GDP and Population: Global Insight, September 2009; Area: World Bank 2008
Area Share Population Share GDP Share
(mkm2) (% of Total) (Bn) (% of Total) ($Bn) (% of Total)
Pan Africa 42 29% 1.0 14% 1,432 3%
Middle East 6 4% 0.3 4% 2,155 4%
Africa Middle East ("AME") 48 33% 1.3 18% 3,587 6%
Other Frontier Markets 18 12% 1.0 15% 2,680 5%
Total Frontier Markets 66 46% 2.3 33% 6,267 11%
MSCI Emerging Markets (excluding AME) 47 32% 3.6 53% 12,943 23%
Developed Markets 32 22% 0.9 13% 37,976 66%
World 145 100% 6.8 100% 57,186 100%
Source: GDP and Population: Global Insight, September 2009; Area: World Bank 2008
Area Share Population Share GDP Share
(mkm2) (% of Total) (Bn) (% of Total) ($Bn) (% of Total)
Pan Africa 42 29% 1.0 14% 1,432 3%
Middle East 6 4% 0.3 4% 2,155 4%
Africa Middle East ("AME") 48 33% 1.3 18% 3,587 6%
Other Frontier Markets 18 12% 1.0 15% 2,680 5%
Total Frontier Markets 66 46% 2.3 33% 6,267 11%
MSCI Emerging Markets (excluding AME) 47 32% 3.6 53% 12,943 23%
Developed Markets 32 22% 0.9 13% 37,976 66%
World 145 100% 6.8 100% 57,186 100%
Source: GDP and Population: Global Insight, September 2009; Area: World Bank 2008
Source: GDP and Population: Global Insight, September 2009, Area: World Bank 2008
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The Africa growth story is now gaining traction
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…For good reason
Heat map of expected GDP growth for 2011 as per IMF Forecasts
10% or more
6% - 10%
3% - 6%
0% - 3%
less than 0%
no data
Source: IMF, WEO, April 2011
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The Investec Africa Opportunities Fund aims to capture multiple
sources of return
Variant Perception
Institutional Approach
Diversification by
Country and Sector
Barriers to Entry
Human Capital
Technology
Catchup Growth
Reforms
Resources
Demographics
Leverage and Capital
Flows
Domestic Demand
So
urc
es
of
Re
turn
Inve
ste
c A
fric
a O
pp
ort
un
itie
s
Re
turn
s
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 12 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Africa is now a growth destination...
Inflation
Interest rates
100%
0%
100%
0%
Source: IMF, WEO, April 2011
-6
-4
-2
0
2
4
6
8
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11E
20
12E
Year
on
Year
GD
P G
row
th (
%)
Differential between Sub-Saharan Africa and World Growth World Sub-Saharan Africa
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 13 | Investec Africa Opportunities Fund | CONFIDENTIAL
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...growing faster than most other regions of the World
Source: McKinsey Global Institute, June 2010
● Africa’s economic growth accelerated after 2000, making it the worlds third-fastest growing region
+ = Macroeconomic Growth Microeconomic Approach Returns +
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...supported by rising labour productivity
Five year moving average of annual labour-productivity growth
Source: Groningen database, BCG analysis
Labour
pro
ductivity
gro
wth
(%
) Brazil, China
and India
Africa
United States
Western Europe
CAGR
1980 – 2000
(%)
CAGR
2000 – 2008
(%)
3.5 7.7
-0.4 2.8
1.7 1.5
1.5 1.0
1980 1990 2008 2000
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 15 | Investec Africa Opportunities Fund | CONFIDENTIAL
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...rising household consumption
Source: Global Insight; United Nations Conference on Trade and Development; McKinsey Global Institute*, June 2010
● African consumption has grown by $275 billion since 2000 – similar to Brazil’s and more than India
● The consumer sector is already more than 50% of all industries in Africa*
+ = Macroeconomic Growth Microeconomic Approach Returns +
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...strong positive trends in personal wealth
* Figures do not sum to 100%, because of rounding
Source: Global Insight; McKinsey analysis, June 2010 *
Breakdown of Africa’s household spending
52 34
39
55
7 9
2 1
2005 2015(projected*)
Global (>$25,000)
Middle income ($5,000 - $25,000)
Basic needs ($1,000 - $5,000)
Destitute (<$1,000)
100% = 792 964
Breakdown of Africa’s population by income bracket, %
● By 2020 expected that more than half of African households will have discretionary spending power*
● As subsistence living falls, disposable income rises and non food sectors will grow faster
+ = Macroeconomic Growth Microeconomic Approach Returns +
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...favourable demographics
Source: *McKinsey Global Institute, June 2010
● Africa’s workforce will become the world’s largest by 2040*
+ = Macroeconomic Growth Microeconomic Approach Returns +
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...large, growing cities
Source: *McKinsey Global Institute, June 2010
● Africa is almost as urbanised as China and has as many cities of 1 million people as Europe*
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 19 | Investec Africa Opportunities Fund | CONFIDENTIAL
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...increasing trade with the Emerging World
Source: *McKinsey Global Institute, June 2010
● Trade with other developing countries accounts for more than half of African trade*
+ = Macroeconomic Growth Microeconomic Approach Returns +
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...increasing private capital flows
Source: *McKinsey Global Institute, June 2010
Rates of Return on inward FDI
● World capital increasingly taking notice of African growth story
● African capital flows have grown by over 400% since 2000
● The rate of return on FDI in Africa is higher than in other developing countries
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 21 | Investec Africa Opportunities Fund | CONFIDENTIAL
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What caused the change in African fortunes?
Peace ……..
1970s 1980s 1990s November 2011
Armed Conflict
Peace
Source: African Analyst and Investec Asset Management, November 2011
Data to be
Checked by
Malcolm or Roelof
Every month
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 22 | Investec Africa Opportunities Fund | CONFIDENTIAL
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0
20
40
60
80
100
1970-74 1975-79 1980-84 1985-89 1990-95 2008*
Observ
ations (
%)
No party One party Multi-party
50
50
50
61
63
63
93
0 10 20 30 40 50 60 70 80 90 100
Latin America & Caribbean
OECD high income
South Asia
Sub-Saharan Africa
East Asia & Pacifc
Middle East & North Africa
Eastern Europe & Central Asia
* IAM assessment
● Multi-party
– Competitive 72%
– Flawed 21%
...sustained political and economic reforms
Source: Doing Business database, May 2009
Growth of democracy: % of African countries Countries that made at least one positive reform in 2008/9 (%)
Source: African Elections Database, Freedom House, The World
Fact book, Polity IV Country Reports 2006, Investec Asset
Management analysis, May 2008
● The spread of democracy in Africa is improving
sovereign governance
● Over 75% of African countries now in functioning
democracies; up from c. 12% in late 1980s
● Governments are improving infrastructure and
creating an enabling business environment
Sub-Saharan Africa: Regimes by type, 1946-2008
Source: Monty G. Marshall, Benjamin R. Cole. 2009. “Global Report 2009, Conflict, Governance,
and State Fragility.”Center for Systemic Peace, Severn, Maryland.
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 23 | Investec Africa Opportunities Fund | CONFIDENTIAL
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...taking governance more seriously
Source: Mo Ibrahim Foundation, June 2011
● The African Governance discount is being reconsidered
● Increased focus on monitoring and reporting governance quality across the continent
● Company Governance on a improving trend
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0South AfricaGhana
Egypt
Morocco
Kenya
Nigeria
Ibrahim Index of African Governance
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 24 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Source: IMF, World Economic Outlook
Database, September 2010
While African debt levels have been falling
0%
10%
20%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Exte
rnal D
ebt/
GD
P %
External debt, total
Source: McKinsey Global Institute, June 2010
0
10
20
30
40
50
60
70
80
90
100
Advanced economies Emerging and developing economies
Sub-Saharan Africa
Gov
ernm
ent D
ebt/G
DP
%
2010 Government Debt % GDP
...significantly improved macroeconomic stability
● Many African countries starting from a clean slate with dramatically lower levels of external debt
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 25 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Algeria
Angola
Botswana
Cameroon
Chad
Congo (Brazzaville)
Egypt
Ethiopia
Gabon
Ghana
Kenya
Libya
Mauritius
Nigeria
South Africa
Sudan
Tanzania
Uganda
Zambia
Zimbabwe
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Co
ntr
ibu
tio
n o
f R
eso
urc
es t
o G
DP
Contribution of Services to GDP
● Only 8 out of 53 countries
have a high commodity
contribution to GDP
− Mostly oil exporters
− Oil has been a drag on
Nigerian GDP growth
− Success of multinational
consumer businesses
like Shoprite, MTN,
Standard Bank, Unilever
● Economic growth is
pervasive, also in “non-
commodity” countries
Africa has an abundance of resources, but is not a commodity
derivative
● Commodities have historically
been the growth engine of
Africa
− The foundation of the
South African economy
− The driver of growth in
many African economies
● Increasing strategic interest
from the East
● Ongoing interest from the
West
Source: Global Insight, December 2008
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬Guernsey B\MASTER_Frontiers\Evidence\MASTER_Frontier
s.xls\Scatter chart
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 26 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Africa – an investment opportunity from an outsider’s view Chinese investment into Africa
Source: The Beijing Axis
Major African Mineral Reserves (2009) Major Chinese Mining Investments in Africa (2009)
+ = Macroeconomic Growth Microeconomic Approach Returns +
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Vibrant and growing listed capital markets
BOTSWANA2%
EGYPT4%
GHANA2%
KENYA3%
MALAWI3%
MAURITIUS1%
MOROCCO8%
NIGERIA13%
SOUTH AFRICA51%
TANZANIA2%
TOGO1%
TUNISIA7%
ZAMBIA2%
ZIMBABWE1%
Africa listings last 3 Years by country (Total Number 134)
Construction & Materials
14% Consumer Goods6%
Financial Services22%
Health Care2%
Industrials13%Media
2%
Metals & Mining12%
Oil & Gas2%
Real Estate Investment & Services
8%
Technology, Software, & Electrical Equipment
9%
Telecommunications6%
Travel & Leisure4%
Africa listings by sector last 3 years (Total Number 134)
Source: Investec Asset Management Research, September 2010
Africa listings in the last 3 years
Africa listings last 3 years by country (Total number 134) Africa listings last 3 years by sector (Total number 134)
+ = Macroeconomic Growth Microeconomic Approach Returns +
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No wonder that Africans are more positive about their
continent
Poverty is falling rapidly in Africa
Source: NBER Working Paper No. 15775, February 2010
Africa’s quality of life metrics are noticeably improving
● Infant mortality: Almost halved from 1960 to present
● Immunization rates: More than doubled to 73% from 1985 to
2010
● Primary school completion: From 50% in 1999 to 63% in
2010
● Life expectancy: From 41 years in 1960 to 52 in 2007,
notwithstanding HIV Aids
● Mobile cellular subscriptions: From 1% in 1998 to 32% in
2008
Globalisation playing its part
● Skilled Africans are returning to Africa
● Opportunities vs. ‘developed markets’
● Communication
● Travel
● Health Care
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 30 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Summary of case for investing in Africa
● Africa is a large continent, both in terms of size and population, with huge resources
– Although it has an abundance of resources, it is not a commodity derivative - this is illustrated by the GDP composition of its
major markets, including South Africa, Kenya, Egypt and Nigeria, having a substantial service sector components (and our own
sources of return in Africa)
● Many African countries are benefiting from substantial improvements in the quality of governance by governments and
economic policymakers alike
– The continent has experienced sustained political and economic reforms
– Levels of African sovereign debt have been falling, and are currently lower than their developed market peers
– Africa has outpaced world GDP growth since 2001 with declining inflation and interest rates over this period
● This offers a very attractive investment opportunity for a variety of compelling reasons
– Most countries operate from quite a low economic base with penetration of many services relatively low
– The capital structure of many African businesses tend to be unlevered
– There is a dearth of suppliers of capital, particularly those with the experience and on the ground presence to capitalise on the
opportunity
● As a result, Africa is starting to reap the benefits
– Peace and democracy is dawning on the Continent
– Africans are more positive about the continent
– Private capital flows to Africa have been positive
– The economies of Africa have become more integrated with the rest of the world, yet the region handled the ‘Global’ Crisis
better than most
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Africa Today and tomorrow
Source: McKinsey Global Institute, Lions on the Move: The progress and potential of African economies
Page 33 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Africa’s people and resources are key to our investment
themes
● African investment opportunities are linked to a
number of strong persistent themes:
− Resource demand
− Positive demographics and
− Resultant consumer demand dynamics
● Key investment themes include:
− Energy and Agricultural, with Africa a key
player in the ever prevalent food / energy
balance
− Construction / Infrastructure and manufacturing
– benefiting from both key resource
exploitation opportunities and domestic service
provision
− Consumer demand for FMCG goods and other
services such as Banking
− Rapid penetration and impacts of technology
solutions, further accelerating new growth and
innovation
Consumer and
Technology
Energy and
Agriculture
Infrastructure
and Services
Consumer
and Banking
Page 34 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Investment objective
● We seek to invest in high quality African orientated investments from around the
world
● We leverage insights from across our Pan African and Global research platforms
● Leveraging our variant perception from both a top down and bottom up perspective
● Constructing a pragmatic and sensibly valued portfolio
● Which seeks to deliver long term capital returns
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 35 | Investec Africa Opportunities Fund | CONFIDENTIAL
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A dedicated investment team supported by
specialist resources
Name Function Location Investec
Experience
Industry
Experience
Frontier Markets Team 90 218
1 Chris Derksen Head of Frontier Markets Strategies Cape Town 5 10
Direct Public Equity Team 54 81
2 Roelof Horne Principal & Portfolio Manager Cape Town 15 15
3 Malcolm Gray Portfolio Manager Cape Town 11 11
4 Julien Veron Equity Analyst Cape Town 4 17
5 Mishnah Seth Equity Analyst Cape Town 6 8
6 Edem Lassey Equity Analyst Cape Town 2 8
7 Alphonse Ndzinge Equity Analyst Cape Town 5 7
8 Tarek Shahin Equity Analyst London 3 7
9 Lazarus Shigwedha Equity Analyst Windhoek 4 4
10 Adriaan Dippenaar Equity Analyst Cape Town 2 2
11 Carol-Jean Harward Equity Analyst Gaborone 2 2
Direct Private Equity and Co-Investment Team 15 60
12 Gerben Dijkstra Private Equity Principal Cape Town 3 10
13 Andrew Richardson Private Equity Principal Johannesburg 4 17
14 Mark Jennings Private Equity Principal Johannesburg 2 12
15 William Alexander Private Equity Principal Cape Town 4 10
16 Francois van der Spuy Co-Investment Principal London 2 11
Asset Allocation Team - 29
17 Kemal Ahmed Principal & Portfolio Manager Cape Town - 22
18 Justin Barton Investment Analyst London - 7
Credit Team 1 7
19 Steven Loubser (and team) Portfolio Manager (Credit) Cape Town 1 7
Macroeconomic Team 15 31
20 Michael Power Strategist Cape Town 9 25
21 Antoon de Klerk Economist Cape Town 6 6
Page 36 | Investec Africa Opportunities Fund | CONFIDENTIAL
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A dedicated portfolio management team
Malcolm Gray
Portfolio Manager
11 years with the firm
11 years experience
● Manages a number of other equity and multi-asset portfolios with a South
African and Pan-African bias for a range of institutional and sovereign wealth
clients
● Joined Investec in 2000. Full-time on portfolio management since 2007
● An admitted attorney with a BSc in Geology and Hydrology, Bachelor of Laws
degree and a Master of Laws degree (Environmental Law/1996)
The Fund will be managed by Malcolm Gray who will have two dedicated analysts supporting him
Grant Cloete
Investment Analyst
4 years with IAM
10 years experience
● Investment analyst in South African and African equity team
● Joined Investec in August 2007 from the Old Mutual Investment
Group where was an investment structuring specialist
● Bachelor of Commerce degree in Financial Analysis and
Portfolio Management from the University of Cape Town and a
National Diploma in Internal Auditing
● Investment analyst in Africa and Frontier market team
● Joined Investec in January 2005 from Stockbrokers Botswana
where analysed the Botswana equity market
● Bachelor of Accounting degree and is a CFA charterholder
Assistant Portfolio Manager
and Analyst, Africa
6 years with IAM
8 years experience
Mishnah Seth
Page 37 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Country and company visits
We identify potential opportunities by
● Regular visits to African markets (2+ per month, on average, over the past six years, or 170+ in total)
● Regular research trips to African companies (2+ per week, on average, over the past six years, or 700+ in total)
● Several broker relationships across the continent (IAM is a top tier client)
● African news and media (morning meetings)
● Using the Investec African business network
Source: Investec Asset Management to June 2010
Company visits Country visits
Get update from Mitzy Da Cruz
Page 38 | Investec Africa Opportunities Fund | CONFIDENTIAL
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Analysis and Research Database
● We analyse companies by:
− Robust financial company analysis (DCF, P/E, EV/EBITDA, WEV, FCF, ROE or other
metrics as appropriate) presented to team
− Benchmarking to South Africa and other Frontier Market peers
● With the data being captured and time stamped in a proprietary Research Database
El Sewedy Cables (SWDY EY)As analysed by Tarek Shahin, member of the Africa Investment Team Last Update: 15 October 2009
Instrument Information Market Information Egyptian Pound US Dollar Valuation Inputs Four Factor Score
Country of Primary Listing Egypt Closing Price 75.89 13.80 COE 19.0% Strategy 3.00
Geographical Source of Value Egypt Price Performance, 3 Months (%) 0.11 0.13 Beta 1.00 Earnings momentum 3.00
Reporting Currency Egyptian Pound Price Performance, 6 Months (%) 0.41 0.44 Terminal growth 8.5% Valuation 1.00
Year End December Price Performance, 12 Months (%) (0.12) (0.11) Corporate tax 15.0% Technical 2.00
Market Capitalisation (In Millions) 10,033 1,824 Four Factor Score 9.00
Capital Structure, in Egyptian Pound Million for the year ended December2006A 2007A 2008A 2009F 2010F 2011F
Book Value of Equity 2,412 3,303 4,176 4,823 5,671 6,912
% Change 37% 26% 15% 18% 22%
Net Debt 1,578 1,498 3,527 4,010 4,275 4,544
% Change
Minorities - - - - - -
Enterprise Value 10,685 10,605 13,559 14,042 14,308 14,577
% Change
Financial Forecasts, in Egyptian Pound Million for the year ended December2006A 2007A 2008A 2009F 2010F 2011F
Revenue 5,746 9,348 11,446 11,689 14,477 19,778
% Change 63% 22% 2% 24% 37%
EBITDA 637 950 1,022 1,073 1,470 2,259
% Change 49% 8% 5% 37% 54%
% Margin 10% 9% 9% 10% 11%
EBITA 571 862 888 883 1,267 2,048
% Change 51% 3% (1%) 43% 62%
% Margin 9% 8% 8% 9% 10%
EBIAT 534 809 966 897 1,129 1,635
EBIAT per Share 4.04 6.12 7.31 6.79 8.54 12.37
% Change 51% 19% (7%) 26% 45%
Attributable Income (As Reported) 508 724 828 761 998 1,459
Attributable Income (Adjusted) 508 724 828 761 998 1,459
% Change 43% 14% (8%) 31% 46%
Adjusted EPS 3.84 5.48 6.27 5.77 7.55 11.04
% Change 43% 14% (8%) 31% 46%
Adjusted DPS 0.00 0.00 1.00 0.86 1.13 1.66
% Change #DIV/0! #DIV/0! (14%) 31% 46%
% Payout Ratio 0% 16% 15% 15% 15%
Free cash flow per share -25.21 0.09 -16.99 -3.63 -1.10 -0.60
Credit Metrics 2006A 2007A 2008A 2009F 2010F 2011F Strategic, Long Term or Block Shareholders (%) 1%
Net debt / EBITDA 2.5 1.6 3.4 3.7 2.9 2.0
Net Gearing, (%) 0.7 0.5 0.8 0.8 0.8 0.7
Interest Cover, (x) 18.6 8.7 5.5 5.5 8.2 9.9
Capital employed per share (cents) 33.2 40.0 58.3 66.8 75.2 86.7
NAV per share (cents) 20.1 27.5 31.6 36.5 42.9 52.3
Return Metrics
Return on Equity (ROE), (%) 19% 20% 20% 16% 18% 21%
ROCE, (%) 12% 15% 13% 10% 11% 14%
Valuation Ratios 2006A 2007A 2008A 2009F 2010F 2011F
Enterprise Value / EBITDA, (x) 21.3 14.3 13.3 12.6 9.2 6.0
Enterprise Value / Sales, (x) 1.7 1.1 0.9 0.9 0.7 0.5
Price / Adjusted Earnings, (x) 19.7 13.9 12.1 13.2 10.1 6.9
Price / Book, (x) 3.8 2.8 2.4 2.1 1.8 1.5
Dividend Yield, (%) 0% 0% 0% 1% 1% 1%
Free Cash Flow Yield, (%) -33% 0% -22% -5% -1% -1%
Analyst Comments
Any remarks or comments you have on these inputs should be put here
Recommendation to HOLD from previous recommendation to HOLD. Conviction level HIGH.
76
91
76
0
76
0 0 00
10
20
30
40
50
60
70
80
90
100
Fa
ir V
alu
e
12 M
onth
Ta
rget
Price
Dis
counte
d C
ash F
low
DD
M
WE
V
Price /
Earn
ings c
om
pare
d t
o P
eers
EV
/EB
ITD
A c
om
pare
d t
o P
eers
Price/b
ook 3
12
9
3
0
2
4
6
8
10
12
14
16
Str
ate
gy
Earn
ings m
om
entu
m
Valu
atio
n
Te
chnic
al
Fo
ur
Fa
cto
r S
core
75%
25%
El Sewedy Family Free Float
Maridive (MAPS EY)As analysed by Tarek Shahin, member of the Africa Investment Team Last Update: 21 August 2009
Instrument Information Market Information US Dollar US Dollar Valuation Inputs Four Factor Score
Country of Primary Listing Egypt Closing Price 4.10 4.10 COE 15.2% Strategy 2.00
Geographical Source of Value Egypt Price Performance, 3 Months (%) 0.28 0.28 Beta 1.00 Earnings momentum 3.00
Reporting Currency US Dollar Price Performance, 6 Months (%) 0.71 0.71 Terminal growth 4.4% Valuation 1.00
Year End December Price Performance, 12 Months (%) (0.16) (0.16) Corporate tax 15.0% Technical 2.00
Market Capitalisation (In Millions) 1,050 1,050 Four Factor Score 8.00
Capital Structure, in US Dollar Million for the year ended December2006A 2007A 2008A 2009F 2010F 2011F
Book Value of Equity 142 189 270 374 389 395
% Change 33% 43% 39% 4% 2%
Net Debt 41 103 55 34 (2) (10)
% Change
Minorities - - - - - -
Enterprise Value 1,091 1,153 1,104 1,083 1,048 1,040
% Change
Financial Forecasts, in US Dollar Million for the year ended December2006A 2007A 2008A 2009F 2010F 2011F
Revenue 250 264 257 294 416 437
% Change 6% (3%) 14% 42% 5%
EBITDA 84 108 108 124 174 183
% Change 29% 0% 14% 41% 5%
% Margin 41% 42% 42% 42% 42%
EBITA 72 97 95 109 158 166
% Change 34% (2%) 15% 44% 5%
% Margin 37% 37% 37% 38% 38%
EBIAT 57 83 91 101 139 146
EBIAT per Share 0.22 0.32 0.35 0.39 0.54 0.57
% Change 44% 10% 11% 38% 5%
Attributable Income (As Reported) 53 80 88 97 137 144
Attributable Income (Adjusted) 53 80 88 97 137 144
% Change 50% 9% 10% 41% 5%
Adjusted EPS 0.21 0.31 0.34 0.38 0.53 0.56
% Change 50% 9% 10% 41% 5%
Adjusted DPS 0.00 0.23 0.25 0.30 0.40 0.42
% Change #DIV/0! 9% 21% 32% 5%
% Payout Ratio 74% 73% 80% 75% 75%
Free Cash Flow to Equity Holders (111) (26) 125 40 56 149
% Change (76%) (576%) (68%) 39% 164%
% Conversion Ratio (24%) 115% 33% 32% 81%
Free cash flow per share -0.43 -0.10 0.49 0.16 0.22 0.58
Credit Metrics 2006A 2007A 2008A 2009F 2010F 2011F Strategic, Long Term or Block Shareholders (%) 1%
Net debt / EBITDA 0.5 1.0 0.5 0.3 (0.0) (0.1)
Net Gearing, (%) 0.3 0.5 0.2 0.1 (0.0) (0.0)
Interest Cover, (x) 15.6 31.5 25.0 23.7 59.9 68.4
Capital employed per share (cents) 0.7 1.1 1.3 1.6 1.5 1.5
NAV per share (cents) 0.6 0.7 1.1 1.5 1.5 1.5
Return Metrics
Return on Equity (ROE), (%) 38% 42% 33% 26% 35% 37%
ROCE, (%) 31% 28% 28% 25% 36% 38%
Valuation Ratios 2006A 2007A 2008A 2009F 2010F 2011F
Enterprise Value / EBITDA, (x) 13.2 10.2 10.2 8.9 6.3 6.0
Enterprise Value / Sales, (x) 4.2 4.0 4.1 3.6 2.5 2.4
Price / Adjusted Earnings, (x) 19.6 13.1 12.0 10.8 7.7 7.3
Price / Book, (x) 7.4 5.6 3.9 2.8 2.7 2.7
Dividend Yield, (%) 0.0% 5.6% 6.1% 7.4% 9.8% 10.3%
Free Cash Flow Yield, (%) -10.6% -2.5% 11.9% 3.9% 5.4% 14.2%
Analyst Comments
Any remarks or comments you have on these inputs should be put here
Recommendation to SELL from previous recommendation to HOLD. Conviction level MED.
4.66
5.37
4.70
0.00
4.62
0.00 0.00 0.000
1
2
3
4
5
6
7
8
Fair V
alu
e
12 M
onth
Targ
et
Price
Dis
counte
d C
ash F
low
DD
M
WE
V
Price /
Earn
ings c
om
pare
d t
o P
eers
EV
/EB
ITD
A c
om
pare
d t
o P
eers
Price/b
ook
3
12
8
2
0
2
4
6
8
10
12
14
16
Str
ate
gy
Earn
ings m
om
entu
m
Valu
ation
Technic
al
Four
Facto
r S
core
21%
14%
13%14%
7%
4%
0%
27%
Offshore Oil Services (0.2139% )
Eleish Family (0.1396% )
Nadim Family (0.1319% )
Zeid Family (0.1426% )
CIB (0.0711% )
EFG Private Equity (0.0352% )
Free Float (0.2657% )
Page 39 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Team Inputs (Example, Nigeria)
● Overlay with proprietary Investec Macro
Analysis (Pan Africa Currency Risk and
Standardized Africa Country Risk Models)
● Cross referencing: In addition to this
proprietary model and process, the team uses
research provided by the rating agencies,
political analysts, research companies and
brokers. There is also a wealth of
macroeconomic data obtained from the various
portfolio investments which will be used to
validate and cross-reference the
macroeconomic information.
Page 40 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Africa Macro Strategy
African
country
risk
process
and
review
Bottom up equity process with an African country risk overlay
Fundamentals pushing for appreciation – kept back by reserve
accumulation. Trigger for currency rally – higher local interest rates.
ASX*, 5.2%
BRVM region, 8.5%
Egypt, 18.5%
Ghana, 2.4%
Kenya, 2.7%
Mauritius, 3.9%
Morocco, 1.8%
Nigeria, 27.9%
South Africa, 1.8%
TSX*, 4.5%
Tunisia, 4.2%
Uganda, 1.9%
AIM*, 4.9%
Zambia, 2.2%
Zimbabwe, 9.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-0
5
Ap
r-06
Aug
-06
Dec-0
6
Ap
r-07
Aug
-07
Dec-0
7
Ap
r-08
Aug
-08
Dec-0
8
Ap
r-09
Aug
-09
Dec-0
9
Ap
r-10
Aug
-10
Dec-1
0
Ap
r-11
Aug
-11
No
v-1
1
Zimbabwe
Zambia
ASX*
TSX*
Uganda
Morocco
Tunisia
South Africa
Nigeria
Namibia
Mauritius
Kenya
Ghana
Egypt
BRVM region
Botswana
AIM*
Page 41 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
We have built a robust investment infrastructure over time...
● A substantial, experienced and diverse team of high
quality:
− Substantial: 66 Investment Professionals focused
on Africa
− Experienced: Collective investment experience of
700+ years (over half of which at IAM 390)
− Diverse: 14 nationalities, 11 languages, 6
locations
● Lasting relationships and high quality networks can
only be built over time, and in person
− We travel often to engage with owners &
managers of businesses, as well as other
stakeholders (including government officials)
● We evaluate investment opportunities by triangulating
between
− Proprietary and Fundamental Research
− Internal or External Sector Specialists
− Internal or External Political or Macro Specialists
− Other relationships
Specialist Co
Investment
Pan Africa
Public Equity
Special
Situations
Pan Africa
Private Equity
South Africa &
Global Fixed
Income
Pan Africa Credit
Resource &
Commodities
Africa & EM
Sovereign Debt
South Africa &
Global Public
Equity
MENA
AME Equity
Page 42 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Our Investment approach
● We identify potential opportunities by
− Screening financial markets for company value and growth exposure to Africa
− Seeking out both new and historically active African operators
− Regular visits to markets and companies
− Following the news, media and business network
− Leveraging our global investment research platform
● We invest in companies where
− Africa represents an important source of company value in the medium to long term
− Fundamental research supports a long term investment case
− Our African insights provide us with variant perceptions
● We invest with an owner mindset
− A long term focus, with a partnership mentality
− Valuing growth, as well as quality governance
+ = Macroeconomic Growth Microeconomic Approach Returns +
Page 43 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
We construct a pragmatic portfolio of investments which are
designed to benefit from an Africa growth character
Pan African Analysts
Initial Universe
Filter
Growth Liquidity Geographical Revenue / EBIT
Investment Research Team
Africa Opportunities Portfolio
Buy the top ideas = top 20 – 60 stocks
Global Commodity & Resources Analysts
Universe (200 – 300 stocks)
African Macro Analysts
Potential Investments
Africa Listed Companies Non-Africa Listed Companies
The portfolio restrictions may change without notification necessarily to investors.
Page 44 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Seeking to deliver long term capital returns, hence looking
for mispriced opportunities
Identify well priced African growth companies irrespective of their country of listing C
om
mo
n M
od
ellin
g A
ssu
mptio
ns
Co
mm
on
Ma
cro
Inp
uts
Idea Generation Process
Research Framework
Research Analysts
Stock universe
Research Database
Be
sp
oke
An
aly
sis
(S
en
sitiv
itie
s e
tc…
)
On
go
ing
(M
orn
ing M
ee
tin
g, E
qu
ity Id
ea
s…
)
ST
RA
TE
GY
EA
RN
ING
S
MO
ME
NT
UM
VALUATIONTECHNICAL INTEREST
"VARIANT PERCEPTION"
ST
RA
TE
GY
TECHNICAL “VARIANT” PERCEPTION
“VARIANT” PERCEPTION
Earnings Momentum
Valuation
Technical Interest
Variant Perception
Strategy
Specialist Equity Capabilities
We analyse
companies by:
● Company visits (at
company premises
if possible) to test
our assumptions
● Robust financial
company analysis
(DCF, P/E,
EV/EBITDA, WEV,
FCF, ROE or other
metrics as
appropriate)
presented to team
● Overlay with
proprietary
Investec macro
analysis and
thematic
analysis (Pan
Africa Currency
Risk and
Standardized
Africa Country
Risk Models*)
Page 45 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
We are disciplined in our approach Buy and Sell discipline
● Our buy discipline is based on seeking to gain exposure at suitable discounts to our
assessments of fair value:
− We set target prices and weights for new investments
− We are patient, we don’t chase shares
− We are opportunistic and are happy to buy when others are selling
● Our sell discipline is based most simplistically on exiting or reducing investments when
broadly one of two events occurs:
− Our investment trades for a substantial period of time well above our assessment of
intrinsic value and we determine that a cash position or an alternate investment idea
is more attractive;
− Where there is a change in the fundamental investment case, which necessitates us
to revisit and possibly reduce our exposure.
Page 47 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Investec Africa Opportunities Fund Geographic and sector allocation – Portfolio level
Sector Allocation Geographic Exposure
The cash content of the Fund: 8.1%
Source: Investec Asset Management, 30.11.11.
The portfolio may change significantly over a short period of time
Update
Monthly
G:\Depts\Marketing\Presentations\Hamilton Brown Graphics\¬MASTER
GSF\MASTER_Africa Opportunities Fund\Evidence\Africa
Opportunities Evidence.xlsx\Africa Opp
Materials, 23.8%
Financials, 23.3%
Telecommunication Services,
18.3%
Industrials, 11.7%
Consumer Staples, 9.4%
Energy, 7.1%
Consumer Discretionary,
4.5%
Health Care, 1.9%
South Africa, 62.6%
Egypt, 15.2%
Nigeria, 13.4%
Kenya, 3.0%
Italy, 2.4%
USA, 1.4%
Zimbabwe, 1.0%
Morocco, 1.0%
Page 48 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
South Africa 42.0%
Africa ex SA44.0%
International14.0%
South Africa, 62.6%
Egypt, 15.2%
Nigeria, 13.4%
Kenya, 3.0%
Italy, 2.4%
USA, 1.4%
Zimbabwe, 1.0%
Investec Africa Opportunities Fund
Country of listing Country exposure
by economic exposure Sector exposure
Source: Investec Asset Management, 30.11.11
This data is indicative, it is based on the portfolio managements team’s assessment of underlying economic exposure, which in
some cases is derived on a best estimate basis for companies not providing this data explicitly.
UPDATE
MONTHLY
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬MASTER GSF\MASTER_Africa Opportunities (Malcolm
Gray)\Evidence\evidence.xlsx\Pie Charts
Materials23.8%
Financials23.3%
Telecommunication Services
18.3%
Industrials11.7%
Consumer Staples
9.4%
Energy7.1%
Consumer Discretionary
4.5% Health Care1.9%
Page 49 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
The portfolio may change significantly over a short period of time.
* This is defined as country or region where the company derives the majority (30-50%) of its value or business
The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any
particular security. Data as at 30.11.11.
Investec Africa Opportunities Fund Top 10 holdings
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬MASTER GSF\MASTER_Africa Opportunities (Malcolm
Gray)\Evidence\Africa Opp evidence.xlsx\Top
Company Sector % Major operating geography*
Mtn Group Ltd Telecommunication Services 7.7 Pan Africa
Anglogold Ashanti Ltd Materials 4.4 Pan Africa
Sasol Ltd Energy 4.3 South Africa
Gold Fields Materials 4.3 Pan Africa
Zenith Bank Plc Financials 3.8 Nigeria
Telecom Egypt Telecommunication Services 3.8 Egypt
Vodacom Group Ltd Telecommunication Services 2.8 Pan Africa
African Rainbow Minerals Ltd Materials 2.7 South Africa
Impala Platinum Holdings Ltd Materials 2.6 South Africa / Zimbabwe
First Bank Of Nigeria Plc Financials 2.6 Nigeria
Page 50 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
-35
-25
-15
-5
5
15
25
35
45
55
6 months 1 year 3 years p.a. 5 years p.a. Since inception*
Investec GSF Africa Opportunities A Acc Gross USD
MSCI EFM Africa ex ZA NR
MSCI EFM Africa NR USD
MSCI EM (Emerging Markets) NR USD
MSCI World NR USD
Investec Africa Opportunities strategy performance Performance as at 30 November 2011, net of fees
* Inception date: 31 October 2010
Past performance should not be taken as a guide to the future and there is no guarantee that this investment will
make profits; losses may be made.
Lipper, dates to 30.11.11, NAV based, (inclusive of all annual management fees but excluding any initial charges),
gross income reinvested, in USD. Performance would be lower had initial charges been included and will vary
between different share classes dependent upon their applicable charges. Returns to individual investors will vary in
accordance with their personal tax status and tax domicile.
UPDATE
MONTHLY
G:\Depts\Marketing\Presentations\Hamilton Brown Graphics\¬Guernsey
B\MASTER_Frontiers\Evidence\MASTER_Frontiers.xlsx\Pan Africa
Performance
Investec GSF Africa Opportunities A Acc Gross USD -18.3 -14.9 na na -11.8
MSCI EFM Africa ex ZA NR -22.4 -25.3 -3.3 -4.2 -21.1
MSCI EFM Africa NR USD -11.9 -2.6 22.9 na -3.2
MSCI EM (Emerging Markets) NR USD -19.4 -11.5 23.6 3.6 -9.8
MSCI World NR USD -11.7 1.5 12.3 -2.0 2.5
Page 51 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
-20
-15
-10
-5
5
3 months 6 months Since inception*
Investec GSF Africa Opportunities A Acc Gross USD Lipper Global Equity Emerging Mkts Other
MSCI EFM Africa NR USD
Investec Africa Opportunities strategy performance Performance as at 30 November 2011, net of fees
* Inception date: 31 October 2010
Past performance should not be taken as a guide to the future and there is no guarantee that this investment will
make profits; losses may be made.
Lipper, dates to 30.11.11, NAV based, (inclusive of all annual management fees but excluding any initial charges),
gross income reinvested, in USD. Performance would be lower had initial charges been included and will vary
between different share classes dependent upon their applicable charges. Returns to individual investors will vary in
accordance with their personal tax status and tax domicile.
UPDATE
MONTHLY
G:\Depts\Marketing\Presentations\Hamilton Brown Graphics\¬Guernsey
B\MASTER_Frontiers\Evidence\MASTER_Frontiers.xlsx\Pan Africa
Performance
Investec GSF Africa Opportunities A Acc Gross USD -8.2 -18.3 -11.8
Lipper Global Equity Emerging Mkts Other -8.6 -18.0 -12.6
MSCI EFM Africa NR USD -7.4 -11.9 -3.2
Page 52 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
-5.5
-15.3-17.3
-25
-20
-15
-10
-5
5
10
15
Oct 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11
Perc
enta
ge g
row
th
397 days f rom 29/10/2010 to 30/11/2011
Investec GSF Africa Opportunities A Acc Gross USD (MF)
MSCI EFM Africa NR USD (IN)
Lipper Global Equity Emerging Mkts Other (IN)
Performance
Past performance should not be taken as a guide to the future and there is no guarantee that this investment will
make profits; losses may be made.
Lipper, dates to 30.11.11, NAV based, (inclusive of all annual management fees but excluding any initial charges),
gross income reinvested, in USD. Performance would be lower had initial charges been included and will vary
between different share classes dependent upon their applicable charges. Returns to individual investors will vary in
accordance with their personal tax status and tax domicile.
Percentage growth total return $ gross
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬MASTER GSF\MASTER_Africa Opportunities (Malcolm
Gray)\Evidence\evidence.xlsx\Daily Africa Opp Perf
UPDATE
MONTHLY
Page 53 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Investec Africa Opportunities Fund Portfolio construction: Risk management: Portfolio restrictions
● Liquidity Minimum: 80% of the fund with 30 day or better liquidity
(1/3 of the market trade)*
● Holding in individual stock Maximum 10%. Holdings >5% must not represent
>40% of the Fund's portfolio
● Number of equity holdings Between 20-60 stocks (typically around 30)*
*These internal parameters may change and not necessarily with notification to shareholders
Page 54 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
African Opportunities Fund and Investec Asset Management
The Opportunities
● Companies benefiting from the growth and valuations opportunities in Africa
● An agnostic approach, looking at local and global, new and historic
● Opportunities across sectors and geographies, with appealing quality
The Fund
● A unique variant perception from both a top down and bottom up perspective
● A pragmatic and sensibly constructed portfolio
● Seeking to deliver long term capital returns
Investec Asset Management
● African born
● With deep continental Africa and global resources in Cape Town and London
● An established track record going back to 1991
Page 57 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example SASOL (Market capitalisation: $34bn)
Source: Bloomberg consensus
This is not a buy or sell recommendation for any particular security
Source: Investec Asset Management as at May 2011
● Global business
− A South Africa born integrated oil and technology company
− A World Leader in commercial synthetic fuel production
− Utilizes the unique technology to drive its Coal-To-Liquids (CTL) and
Gas-To-Liquids (GTL) operations
● Business environment and opportunities ahead
− Low Gas and high Oil prices favour SASOL’s technology (converts gas
into low sulphur diesel and petrol)
− North America activity and presence is increasing with recent
acquisitions in gas fields
− Vertical integration of gas assets gives SASOL a significant cost
advantage over its competitors
− The chemicals division (c.30% of group) has entered a strong growth
cycle
− Mozambique gas exploration success would yield significant growth
prospects for the group
● Valuation metrics
− P/E ratio : 8.9x forward
− Dividend yield : 4.2%
− ROE : 21%
Page 58 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example AFREN (Market capitalisation: $2,2bn)
● Oil and gas exploration company founded by Dr Lukman, former President
and Secretary General of OPEC, now Oil Minister of Nigeria, very strong
management team
● Diversified exploration portfolio across West and East Africa
● Strategic entry into East Africa through the acquisition of Black Marlin which
doubles the Groups net prospective assets
● ‘Use it or lose it’ legislation in Nigeria and industry restructuring- major IOCs
under increasing pressure provides the future growth opportunity
● Strong underlying production base provides stable cash generation for
future exploration
0
10000
20000
30000
40000
50000
60000
70000
2008
2009
H1
2010
H2
2010
H1
2011
Historic and future production (boepd)
Net prospective resources (2,341 mmboe)
São
Tomé &
Príncipe
Morocco
Algeria Libya Egypt West
ern
Saha
ra Mauritania
Niger
Chad Eritrea
Djibouti
Ethiopia
Kenya
Cameroon
Nigeria Somalia
Sudan
Mali
Uganda
Central
African
Republic
Togo
Burkina
Liberia Sierra Leone
Benin
Ghana Ivory
Coast
Gambia Senegal
Congo Rwanda Gabon Democratic
Republic of
Congo
Angola
Tanzania
Mozambique
Burandi
Zambia Malawi
Botswana Namibia Madagascar
Zimbabwe
South
Africa
Mayotte
Cabind
a
(Angola
) Seychelles
Mauritius
Réunion
Tunisia
Guinea Guinea Bissau
Lesotho
Swaziland
AFREN
Black Marlin
27 assets across 9 countries
The portfolio may change significantly over a short period of time.
This is not a buy or sell recommendation for any particular security.
Source: AFREN, January 2011
Page 59 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example ILLOVO (Market capitalisation: $1.7bn)
● African:
− South African listed integrated sugar producer,
with a very significant presence and growth
trajectory in Africa
● Evolution and Innovation:
− The company reflects the evolving synthesis
between agriculture and energy
− 90% of group’s power is produced from
renewable sources
● Potential:
− SADC (Southern African Development
Community) region is the 5th largest sugar
exporter BUT
− It has the second lowest consumption per
capita in the world
● Valuation metrics
− P/E ratio : 17.6x (Mar11)
− Dividend Yield : 2% (Mar11)
Operating Margin (%) FY2009 FY2010
South Africa 7 7
Malaw i 36 38
Zambia 15 18
Sw aziland 16 16
Tanzania 18 25
Mozambique 21 16
Group 16 18
Illovo countries of operation all
within the 30 lowest cost cane /
beet sugar producers
OPERATING PROFIT BY GEOGRAPHY
Page 60 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example ENI (Market capitalisation: $54bn)
● Business:
− Integrated Italian energy company active in 77 countries
− Key presence in North and West Africa
● Strengths:
− Key exploration and growth properties in Nigeria, Congo, Angola and
the US
● Africa Exposure:
− Clear African growth history with Africa having grown from 20 – 50%
contribution to EBIT
− Production ramp ups in Nigeria and Angola key
● Investment Opportunity:
− Appealing African growth with quality governance and liquidity
− Reasonable Growth, with key African contributions
● Valuation metrics
− P/E ratio : 9.7x (Dec10), 8.4x (Dec11)
− Dividend Yield : 5.6% (Dec10)
Strong pipeline of start-ups
Group Production (kboe/d):
Africa production is
substantial and becoming
increasingly important
Source: Company financials and Bloomberg December 2010
Page 62 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
African banks are early beneficiaries of economic growth
● At a macro level future growth should be driven by:
● Economic growth with forecast GDP growth of over 5% for major African economies
● Favourable demographics with a young, growing population and
● Low banking penetration in Africa (both Nigeria and Kenya having a banking
penetration of less than 20%)
● At a micro level future growth should be driven by:
● Efficiency gains with structurally high cost/income ratios
● Leveraging of balance sheet and
● A margin underpin on the back of a shift in risk asset base towards higher yielding retail
assets
Source: Investec Analysis, World Bank and IMF
Page 63 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
The micro picture
Source: Investec Analysis, Citi Bank August 2010
Net Interest Margin
25%
35%
45%
55%
65%
KC
B K
enya
Ze
nith B
ank N
igeria
First B
ank o
f N
igeria
Weste
rn E
uro
pe
Centr
al E
uro
pe &
Au
str
ia
Latin
Am
erica
Glo
bal E
merg
ing
Ma
rket
Asia
CIB
Egypt
Gives room for efficiency gains
579
1113151719
Ze
nith B
ank N
igeria
First B
ank o
f N
igeria
KC
B K
enya
CIB
Egypt
Centr
al E
uro
pe &
Au
str
ia
Latin
Am
erica
Glo
bal E
merg
ing
Ma
rket
Asia
Weste
rn E
uro
pe
Leverage
Allows for earnings enhancement through gearing up of asset base
0%1%2%3%4%5%6%7%8%
Weste
rn E
uro
pe
Asia
Centr
al E
uro
pe &
Au
str
ia
CIB
Egypt
Glo
bal E
merg
ing
Ma
rket
Ze
nith B
ank N
igeria
First B
ank o
f N
igeria
Latin
Am
erica
KC
B K
enya
Cost to Income Ratio
Despite a high starting point the current risk asset exposure allows
for margins to remain high
Page 64 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
64%
51%
45% 45%
39%
33%30% 30% 30%
25%22%
19% 18%16% 14%
9%
87%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Chin
a
India
Chile
Ukra
ine
Latv
ia
S.
Afr
ica
Kazakhsta
n
Russia
Hungary
Nig
eria
Turk
ey
Czech
Rom
ania
Pola
nd
Peru
Bra
zil
Mexic
o
Nigerian banks An under penetrated corporate loan market
Corporate loans to GDP
Source: Central Bank Nigeria, JP Morgan, August 2010
Page 65 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
EFInA’s 2008 National Survey
86% of the rural population is currently unbanked retail loans to GDP are very low
39%
29% 29% 28% 28%
22%20%
15%12% 11% 11% 11% 10%
8%6%
4%
43%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
S.A
fric
a
Latv
ia
Pola
nd
Ukra
ine
Hungary
Chile
Czech
Rom
ania
Kazakhsta
n
Chin
a
Bra
zil
India
Turk
ey
Russia
Peru
Mexic
o
Nig
eria
39%
14%
7%
54%
82%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural
Currently banked Previously banked Never banked
and retail market
Page 66 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
1%
1%
2%
2%
2%
3%
7%
11%
12%
16%
37%
64%
92%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Islamic Loan
Islamic Financing Investment
Vehicle Finance
An Overdraft
Mortgage or Housing Loan
Loan from a Bank
Valu Card
Fixed Deposit Account
Credit Card
Debit Card
Current Account
ATM Card
Savings Account
The highest banking penetration is in a liability generating
product
Source: EFInA’s 2008 National Survey
Clients take-up of banking products
Page 67 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example Zenith Bank (Market capitalisation $2.5bn)
● Strengths:
− Conservative lending process, centralized credit process
− Top three banks: market positioning and balance
− sheet size
● Top quality Tier 1 bank with a strong banking franchise
and healthy risk assets
● Margin lending = 6% of advances, adequately provided for
● Valuation (June 2011)
− P/E Dec 2011 7.9x
− Dividend Yield 8.0%
− P/B 1.2x
● Other Financial Metrics (Q4 2010)
− CAR 36%
− Cost to Income 64%
− NPL 5.9%
− NPL cover 74%
− Liquidity 64%
− Total Assets/Equity 5.2x
Source: Company AFS and Investec Asset Management as at January 2011
Zenith Bank: Development 2004-10 (N’bn)
1271
215
2798
500
1,000
1,500
2,000
2,500
3,000
Assets and contingent exposures
2004 2007 2010
131
634
1318
200
400
600
800
1,000
1,200
1,400
Deposits
16
116
364
50
100
150
200
250
300
350
400
Shareholders' Funds
120
200
315
50
100
150
200
250
300
350
Branches
This is not a buy or sell recommendation for any particular security
Source: Investec Asset Management as at June 2011
Page 68 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Kenyan banks A growing underpenetrated market
Source: Central Bank of Kenya
Deposits to GDP
25%
28%
31%
34%
37%
40%
43%
46%
2005 2006 2007 2008 2009
Gross loans to GDP
27%
28%
29%
30%
31%
32%
33%
2005 2006 2007 2008 2009
Page 69 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
With low levels of exposure to the retail market
Source: Central Bank of Kenya
13% 16% 15% 18% 23% 19%
87% 84% 85% 83% 77% 81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009
Retail Corporate
Credit to Private Sector
Page 70 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example KCB (Market capitalisation $0.85bn)
● The largest player in sector (15% and 17% market share of
deposits and loans)
● Strengths:
− Well structured balance sheet (healthy L/D and Liquidity
ratios
− Strong brand loyalty in Kenya as well as the largest branch
network (28% of total branches)
− A growing East African footprint
● Focus on cost reduction and building of a retail business
provide impetus for future growth
● Valuation (January 2011)
− P/E Dec 2011 8.5x
− Dividend Yield 7.4%
− P/B 1.9x
● Other Financial Metrics (Dec 2011)
− Cost to Income 61%
− ROE 21%
− Liquidity 48%
− Total Assets/Equity 9.4x
Source: Company AFS and Investec Asset Management as at January 2011
KCB: Development 2007-09 (KES’bn)
Source: Investec Asset Management, January 2011
146
220 223
130
180
230
280
Assets and ContingentExposures
2007 2008 2009
94
127
163
50
100
150
200
Deposits
12
19 21
5
8
11
14
17
20
23
Shareholders' Funds
125
170
203
80
130
180
230
Branches
The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any particular security.
Page 71 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example Standard Bank (Market capitalisation $23,7bn)
● A Pan Africa play
● Largest African banking group by assets ($183bn)
● A Pan African and Emerging Market bank with South African
roots
− Presence in 17 African countries
● Strategic links with China(ICBC is a 20% shareholder)
● Strong track record of organic growth and successful selective
acquisitions
● Robust capital structure and liquidity with no significant strain in
asset quality over the last 12 months
− CAR 14.9%
− Credit loss ratio 1.6%
− NPL ratio 6.2%
● Valuation (January 2011)
− P/E Dec 2011 13.0x
− Dividend Yield 3.8%
− P/B 1.8x
− ROE 14.0%
Africa footprint
Source: Investec Asset Management, January 2011 Source: JP Morgan, Central Bank of Nigeria, World Bank
With other key areas of operations being Brazil, Turkey, Russia
and Argentina providing the underpin for future growth
$’m Nigeria South Africa Brazil
Current size
Deposits 52,987 254,385 355,945
Loan book 50,709 252,936 339,260
Total assets 105,886 345,063 822,428
Population (m) 151 49 192
Total book/population 336 5162 1767
Leverage (asset/equity) 5.7x 11.8x 12.1x
The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any particular security.
Page 73 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example MTN (Market capitalisation US$33,6bn)
● A world class company, founded in Africa, and listed
on the JSE
● A well run company strategically positioned in
emerging markets
● MTN is well known by IAM and covered by our most
experienced analysts
● Africa has 11 of the global top 20 growing markets: the
penetration of mobile subs in Africa is 36% and
forecast to grow to 58% by 2012 (12% compound per
annum)
This is not a buy or sell recommendation for any particular security.
Source: I-Net Bridge, 2009; HSBC broker research, September 2009
Page 74 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
MTN, an African growth story
South Africa (23% of MTN EBITDA)
● Pricing pressure in SA but …..
● Minutes of use are low by global standards, elasticity closer to
1 on prepaid, with post paid stickiness
● Scope for reduction in handset subsidy, distribution
commission, staff costs offsetting interconnection margin
pressure
Nigeria (43% of EBITDA)
● MTN powerful, taking 72% of net new adds in 2009, increasing
market share to 50%
● Zain under Bharti will have better execution
but MTN can still take market share:
− strongest distribution
− a network with 20% spare capacity
● Nigeria should grow strongly:
− penetration low only 42%
− the economy is recovering
− data penetration is only 3%
The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any particular security
Source: Company
Page 75 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example Aveng – South Africa (Market capitalisation: $1.8bn)
● Diverse business
− Largest construction group in South Africa and of the largest in Africa
− Aveng’s heritage dates back 119 years
− Strong presence in Australia (McConnell Dowell)
● Business environment
− South African construction only in a temporary downturn
− Africa mining activity providing support for its divisions
− Australia, while competitive, remains a key growth node for the group
● Opportunities ahead
− South African government is committed to infrastructure spend
− Aveng is well positioned to benefit from both private and public spend
− AVENG WATER, a leader through its innovation, is fast gaining
momentum and set to address Africa’s water crisis
− Group has an strong, unleveraged balance sheet
● Valuation metrics
− P/E ratio : 7.8x (one year forward)
− Price to book : 1.1x (lowest in the sector)
− Dividend yield : 4.4%
AVENG WATER
established 2011
Sea Water desalination
Mine water treatment
Industrial effluent treatment
Municipal water and waste treatment
This is not a buy or sell recommendation for any particular security
Source: Investec Asset Management as at Aug 2011
Page 76 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example Telecom Egypt – Egypt (Market Capitalisation $4,6bn)
● Valuation (May 2011)
− Dec 2011E P/E 8.8x ; DY 9.0%
● Fixed line telecoms operator in Egypt with c.9.3m subscribers
● Has growth areas in data and through domestic and international
wholesale businesses
● Data is expected to be significant driver of growth. Egypt only
has 1.4m data subscribers in a population of c.80 million
● Data penetration below 2%
● Demographic profile of Egypt changing to younger, more
technology enabled generation
● TE has largest data network in Egypt (62% share)
● Looking to pursue opportunities to become a fully integrated
telecoms provider (i.e. wants to enter mobile space)
● Owns 44.95% of Vodafone Egypt the largest mobile operator in
Egypt
● Likely to leverage relationship with Vodafone Egypt to become
an MVNO (Mobile Virtual Network Operator) which will enable
it to offer a branded mobile service to customers
● Strategic move to become fully integrated provider will enable
TE to offer bundled services for fixed line, mobile and data
● Could help drive growth as customers value the benefit of
having a single service provider
● Very attractive yield play consistently offering high single digit yields
This is not a buy or sell recommendation for any particular security
Source: Investec Asset Management as at May 2011
Egyptian Data Subscribers and TE market share
8.1% 8.1% 8.1%
9.0%
7.9%
0%
2%
4%
6%
8%
10%
2008 2009 2010 2011 2012
Telecom Egypt Dividend Yield
0.4 0.6
0.9
1.2
1.5
0.3
0.4
0.5
0.7
0.8
0%
2%
4%
6%
8%
10%
-
0.5
1.0
1.5
2.0
2.5
2008 2009 2010 2011 2012
Da
ta P
ene
tra
tion
(%
)
Da
ta u
sers
(m
)
TE Data Other Penetration
0.7
1.0
1.4
1.8
2.3
Page 77 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Stock example
UAC of Nigeria (Market capitalisation $0.4bn)
● Valuation (January 2011)
− P/E Dec 2011E 11.2x
− P/E Dec 2011E 9.6x
● A diversified consumer and general industrial founded in 1876
● Management and PE Partners has refocused the business
over the last 5 years through cost cutting and disposal of non-
core assets
● A defensive business and low beta stock
● UACN is a long-term play on the consumer and economic
growth of Nigeria, as well as on construction and development
of housing stock (through its paints and property business)
Source: National Bureau of economic research, 2010
$1/Day poverty and growth in Nigeria, 1970-2006
Source: Investec Asset Management as at January 2011
Logistics, 4%GM, 3%
Paints, 5%
Property, 25%
Cereal and oil, 24%
Foods (restaurant,dairy & snacks), 34%
Water, 4%
Logistics, 4%
GM, 2%
Paints, 11%Property, 41%
Cereal and oil, 16%
Foods (restaurant,dairy & snacks), 21%
Water, 1%
Other , 3%
Turnover Pre-tax profit
Housing stock – number of homes per 1000 persons 567
521 490
437 427
355
287 279 271 266 262 247 240 178
36
0
100
200
300
400
500
600
Sp
ain
Fra
nce
Germ
any
Ukra
ine
US
A
Russia
Chile
Bra
zil
Chin
a
Tu
nis
ia
Tu
rkey
Me
xic
o
Eg
ypt
Nig
eria
Nig
eria
(ad
j)
Source: Cemnet, CEMBUREAU, Renaissance Capital estimates
Note: In Nigeria, 80% of total housing stock consists of informal houses, which cuts Nigeria's actual housing stock
number.
The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any particular security
Page 79 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
-40
-30
-20
-10
0
10
20
30
6 months 1 year 3 years p.a. Since inception*
Investec Pan Africa S Acc Gross MSCI EFM Africa NR USD
MSCI EM (Emerging Markets) NR USD MSCI World NR USD
Investec Pan Africa strategy performance Performance as at 30 November 2011, net of fees
* Inception date: 30 November 2005
Past performance should not be taken as a guide to the future and there is no guarantee that this investment will
make profits; losses may be made.
Lipper, dates to 30.11.11, NAV based, (inclusive of all annual management fees but excluding any initial charges),
gross income reinvested, in USD. Performance would be lower had initial charges been included and will vary
between different share classes dependent upon their applicable charges. Returns to individual investors will vary in
accordance with their personal tax status and tax domicile.
UPDATE
MONTHLY
Details below show the performance of Investec’s Pan Africa strategy. Performance of the Pan Africa strategy is not necessarily representative of the
Fund and is provided as an example of what a similar mandate has achieved. There are differences between this strategy’s mandate and that of the
Africa Opportunities Fund – it typically will hold fewer investments in less liquid markets and stocks. This could potentially enhance returns for the Fund
over the longer term relative to the strategy. The impact of charges may differ for the Africa Opportunities Fund.
G:\Depts\Marketing\Presentations\Hamilton Brown Graphics\¬MASTER
GSF\MASTER_Africa Opportunities Fund\Evidence\Africa
Opportunities Evidence.xlsx\Pan
Investec Pan Africa S Acc Gross -25.3 -27.8 8.4 7.5
MSCI EFM Africa NR USD -11.9 -2.6 22.9 n/a
MSCI EM (Emerging Markets) NR USD -19.4 -11.5 23.6 8.1
MSCI World NR USD -11.7 1.5 12.3 1.4
Page 80 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Investec Pan Africa strategy Historic geographic and sector exposure
The cash content of the Fund: 9.4%
As at 30.11.11
The portfolio may change significantly over a short period of time.
DATA SUPPLIED FROM SA
OFFICE AND SAVED IN
FRONTIERS EVIDENCE
FOLDER
\\helene\shared\Attribution\Inter
national\AFRICA\Ad hoc\ ...
PanAfrica AA
[month].xls SECTOR and COUNTRY tabs
CHART TO
INCLUDE CASH (ok’d by Adriaan June 2010)
UPDATE
MONTHLY
\\mercury\gdrive\Depts\Marke
ting\Presentations\Hamilton
Brown Graphics\¬Guernsey
B\MASTER_Frontiers\Eviden
ce\MASTER_Frontiers.xlsx
PanAfrica S Share and
PanAfrica sector tab
PIE TO EXCLUDE CASH
ONLY – CASH ADDED
SEPARATELY
CASH SHOULD BE THE
SAME FOR COUNTRY AND
SECTOR
Details below show the portfolio composition of Investec’s Pan Africa strategy and is not necessarily representative of the Fund. There are differences between this
strategy’s mandate and that of the Africa Opportunities Fund – it typically will hold fewer investments in less liquid markets and stocks. This could potentially
enhance returns for the Fund over the longer term relative to the strategy.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-0
5
Ap
r-06
Aug
-06
Dec-0
6
Ap
r-07
Aug
-07
Dec-0
7
Ap
r-08
Aug
-08
Dec-0
8
Ap
r-09
Aug
-09
Dec-0
9
Ap
r-10
Aug
-10
Dec-1
0
Ap
r-11
Aug
-11
No
v-1
1
Zimbabwe
Zambia
ASX*
TSX*
Uganda
Morocco
Tunisia
South Africa
Nigeria
Namibia
Mauritius
Kenya
Ghana
Egypt
BRVM region
Botswana
AIM*
0%
20%
40%
60%
80%
100%
Dec-0
5
Ap
r-06
Aug
-06
Dec-0
6
Ap
r-07
Aug
-07
Dec-0
7
Ap
r-08
Aug
-08
Dec-0
8
Ap
r-09
Aug
-09
Dec-0
9
Ap
r-10
Aug
-10
Dec-1
0
Ap
r-11
Aug
-11
No
v-1
1
Utilities
Telecommunication ServicesMaterials
Information TechnologyIndustrials
Health Care
Financials
Energy
Consumer Staples
Consumer DiscretionaryCash
Bonds
Page 81 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Investec Africa Product Range Technicals
Investec Africa
Opportunities
Fund
Investec Africa
Middle East
Equity Fund
Investec Middle
East North Africa
Equity Fund
Investec Pan
Africa Equity
Fund
Investec Africa
Fund
Investec Africa
Frontier Private
Equity Fund
Typical stock
holdings 20-60 40-60 25-50 40-60 35-45 8-10
Hedging for currency/
asset allocation Case by case
Market Capitalisation
of stocks USD100m USD100m USD100m USD20m+ USD20m+
Normally Equity
Value USD 20 –
USD 100m
Use of unlisted
equities
Fund Structure Luxembourg
UCITS
Luxembourg
UCITS
Luxembourg
UCITS
Guernsey “B”
Scheme
Guernsey “B”
Scheme
Guernsey
Limited
Partnership
Capacity Status Open Open Open Open Closed Closed
Dealing Frequency Daily Daily Daily Monthly Monthly Illiquid
Source: Investec Asset Management, 31 August 2010
Page 82 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Africa Product Range: Liquidity Profile
Higher
Lower
Long t
erm
out
perf
orm
ance
(re
lative t
o c
ash)
Private
Equity
Liquidity
Africa
Pan
Africa
MENA
AME
AOP
Fund
Source: Investec Asset Management, 31 August 2010
Page 83 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
A Summary of our Africa Product Range
South
Africa (SA)
Sub Sahara Africa
(ex - SA) North Africa
Middle
East
Equity
Public Equity
Investec Pan Africa Equity Fund ü ü ü û
Investec Middle East North Africa Equity Fund û û ü ü
Investec Africa Middle East Equity Fund ü ü ü ü
Investec Africa Opportunities Fund ü ü ü û
Investec Africa Fund û ü ü û
Private Equity
Investec Africa Frontier Private Equity Fund ü ü ü û
Source: Investec Asset Management, 31 August 2010
Page 84 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Financials41.8%
Consumer Staples16.7%
Industrials14.2%
Materials9.0%
Consumer Discretionary
6.5%
Telecommunication Services
5.9%
Energy5.9%
Nigeria, 24.4%
Egypt, 19.8%
Zimbabwe, 9.3%
BRVM region, 8.0%AIM*, 6.7%Tunisia, 5.6%
Mauritius, 4.6%
TSX*, 4.3%
ASX*, 4.1%
Ghana, 2.2%Zambia, 2.2%
Kenya, 2.1%
Uganda, 1.8%
South Africa, 1.7%
Morocco, 1.7%
Botswana, 1.3%
Financials, 44.6%
Industrials, 20.1%
Consumer Goods, 9.0%
Oil & Gas, 7.2%
Telecommunications, 6.6%
Health Care, 3.9%
Consumer Services, 2.4% Basic Materials, 0.7%
Nigeria, 19.6%
Egypt, 16.5%
United Arab Emirates, 14.7%
Qatar, 11.9%
Saudi Arabia, 9.0%
Turkey, 8.1%
South Africa, 5.8%
Oman, 3.4%Others, 5.5%
Materials23.8%
Financials23.3%
Telecommunication Services
18.3%
Industrials11.7%
Consumer Staples9.4%
Energy7.1%
Consumer Discretionary
4.5%
Health Care1.9%
South Africa, 63.2%
Egypt, 15.4%
Nigeria, 13.5%
Kenya, 3.0%
Italy, 2.5%
USA, 1.4%Zimbabwe, 1.0%
A Summary of our Africa Product Range
Investec Africa Opportunities Fund Investec Africa Middle East Equity Fund Investec Pan Africa Equity Fund
Country exposure
Sector exposure
Source: Investec Asset Management, 30.11.11
UPDATE
MONTHLY
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬MASTER GSF\MASTER_Africa Opportunities (Malcolm
Gray)\Evidence\evidence.xlsx\Extra pie charts
Page 85 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Materials23.8%
Financials23.3%
Telecommunication Services
18.3%
Industrials11.7%
Consumer Staples9.4%
Energy7.1%
Consumer Discretionary
4.5%
Health Care1.9%
Consumer Discretionary
8.5%
Consumer Staples13.1%
Energy9.6%
Financials34.1%
Industrials8.2%
Materials9.3%
Telecommunication Services
6.1%
ASX, 4.2%
Botswana, 1.5%
BRVM region, 5.7%
Egypt, 23.0%
Kenya, 2.0%
Mauritius, 4.8%
Morocco, 2.6%Nigeria, 23.5%
TSX, 1.6%
Tunisia, 0.6%
Uganda, 0.7%
United Kingdom, 10.0%
Zambia, 1.5%
Zimbabwe, 7.1%
Cash and other, 11.2%
Financials37.8%
Industrials15.3%
Consumer Goods9.2%
Oil & Gas8.1%
Telecommunications6.2%
Health Care4.2%
Consumer Services3.0%
Basic Materials2.8%
Egypt20.6%
United Arab Emirates
19.2%Qatar18.3%
Saudi Arabia10.3%
Turkey10.2%
Oman3.9%
Australia2.4% Cayman Islands
1.7%
South Africa, 63.2%
Egypt, 15.4%
Nigeria, 13.5%
Kenya, 3.0%
Italy, 2.5%
USA, 1.4%Zimbabwe, 1.0%
A Summary of our Africa Product Range
Investec Africa Opportunities Fund Investec Middle East
North Africa Equity Fund Investec Africa Fund
Country exposure
Sector exposure
UPDATE
MONTHLY
\\mercury\gdrive\Depts\Marketing\Presentations\Hamilton Brown
Graphics\¬MASTER GSF\MASTER_Africa Opportunities (Malcolm
Gray)\Evidence\evidence.xlsx\Extra pie charts
Source: Investec Asset Management, 30.11.11
Page 86 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
GIPS report accompanying notes: standard disclosures
GIPS Statement
Investec Asset Management has prepared this report in compliance with the Global Investment Performance Standards (“GIPS”).
Definition of the Firm
The Firm comprises all fee-paying portfolios managed by Investec Asset Management (Pty) Ltd in the Southern African Region, excluding private clients. This comprises all portfolios
that are administered on the South African administration platform. Investec Asset Management (Pty) Ltd is a wholly owned subsidiary of Investec Asset Management Holdings (Pty)
Ltd.
Disclosures and Footnotes
The performance results displayed herein represent the investment performance record for a composite managed by Investec Asset Management. These performance results do not
reflect the deduction of investment advisory fees.
This composite includes all discretionary, fee-paying accounts invested according to the composite investment strategy with a market value exceeding R5 000 000.00. Accounts
meeting these criteria are in most cases included in the relevant composite after the first full month of being under management. In markets where there is limited liquidity, whereby
portfolios are forced to enter the market gradually, resulting in cash drag the inclusion period may be extended up to a maximum of three months of being under management.
Markets which typically fit this profile are the Frontier Markets, Small Caps Sector and illiquid scrip take-ons.
The history of closed accounts that met these criteria during their lifetimes has been retained in the overall composite performance presentation.
Performance results presented have been calculated in accordance with the methodology prescribed by GIPS.
Total returns are calculated using realized and unrealized gains plus income.
If a composite allows derivatives, the extent of usage will be disclosed in the presentation.
Returns are calculated net of all applicable withholding taxes and gross of South African capital gains taxes, retirement fund taxes and income tax.
The True Time-Weighted Returns (Daily returns) methodology is followed, which calculates returns on a time-weighted basis. Prior to March 2001 Investec Asset Management used
Modified Dietz and before May 2000 Dietz was used. Periodic returns are geometrically linked.
Accrued income is included in the market values of all fixed-income securities. Returns from cash and cash equivalents are included in total-return calculations.
Performance is calculated net of trading expenses.
Monthly composite returns are calculated by weighting each account’s return by its beginning market value as a percentage of the total composite beginning market value.
A complete list with details and descriptions of the firm’s composites is available upon request.
Performance results are expressed in ZAR, NAD, BWP, EUR, CAD, GBP and USD.
Market values for domestic and foreign investments are the last traded prices. Market values for foreign units are the ruling prices as at UK noon for onshore and UK midnight the
previous day for offshore fund holdings. All foreign market values are converted using WM Reuters Mid-Rate 16h00 (UK time). Prior to 31 July 2008 the WM Reuters Mid-Rate 12h00
(SA time) was used to convert foreign market values. Foreign market unit valuations are sourced from the London office of the Firm.
Additional information regarding policies for calculating and reporting returns as well as relevant fee information will accompany the relevant presentations.
Page 87 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Important information
This communication is not for general public distribution. If you are a private investor and receive it as part of a general circulation, please
contact us at +44 (0)20 7597 1900.
The value of this investment, and any income generated from it, will be affected by changes in interest rates, general market conditions
and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. The Fund’s
investment objective will not necessarily be achieved and investors are not certain to make profits; losses may be made.
All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated
are honestly held but are not guaranteed and should not be relied upon. This is not a buy, sell or hold recommendation for any particular
security. The portfolio may change significantly over a short period of time.
This communication is provided for general information only. It is not an invitation to make an investment nor does it constitute an offer
for sale. The full documentation that should be considered before making an investment, including the prospectus and simplified
prospectus or offering memorandum, which set out the fund specific risks, is available from Investec Asset Management.
The Fund is domiciled in Luxembourg. This communication should not be distributed to private customers who are resident in countries
where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful. Please visit
www.investecassetmanagement.com/registrations to check registrations by country. In Switzerland, the Fund’s Simplified Prospectus,
Prospectus and Report & Accounts may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Dexia
Investor Services Bank S.A., Esch-sur-Alzette, Badenerstrasse 567, P.O. Box 101, CH-8066 Zurich. In Germany, the Fund’s Simplified
Prospectus, Prospectus and Report & Accounts may be obtained free of charge from the German Representative, J.P. Morgan AG,
Junghofstraße 14, 60311 Frankfurt am Main.
In the USA, this communication should only be read by institutional investors, professional financial advisers and, at their exclusive
discretion, their eligible clients, but must not be distributed to US Persons.
THIS INVESTMENT IS NOT FOR SALE TO US PERSONS.
Telephone calls may be recorded for training and quality assurance purposes. Issued by Investec Asset Management Ltd (IAM),
December 2011. IAM is authorised and regulated by the Financial Services Authority.
Page 88 | Investec Africa Opportunities Fund | CONFIDENTIAL
07816
Calendar Periods
Composite
Weighted
Average Return Hurdle Excess Return
YTD -22.84% 3.51% -26.36%
2010 31.38% 4.30% 27.09%
2009 35.67% 4.38% 31.29%
2008 -45.38% 7.09% -52.47%
2007 77.59% 9.70% 67.89%
2006 24.75% 9.46% 15.29%
Pan Africa Composite (AE-AF-MT-E)
Company Name: INVESTEC ASSET MANAGEMENT
Mandate: PAN AFRICA
Benchmark: N/A
Hurdle: US$ LIBOR 1M + 4%
Returns are reported: GROSS OF FEESCurrency: USD
Pan Africa composite invested in all African equity markets and bonds. This composite invests in stocks
that are locally listed in South Africa and stocks that are listed on the African continent as well as
offshore resources companies whose majority of operations are in Africa.
GIPS report
Benchmark
We do not believe that there is a published benchmark which accurately reflects the investment
remit of this composite.
Dispersion
Dispersion is calculated as the asset weighted standard deviation of all constituent portfolios that
were included in the composite for the entire year. If a composite consists of less than five portfolios,
no measure of dispersion is presented.
Composite
Creation DateThis composite was created on 31-Dec-2005.
Management Fees
The standard institutional management fee for this composite is 1.0% per annum. A performance
fee is also incurred in the management of this mandate.
Annualised Returns
(Longer than 1 year)
Composite
Weighted
Average Return Hurdle
Excess Return vs
Hurdle
3 Month -14.44% 1.04% -15.48%
6 Month -15.98% 2.08% -18.06%
1 Year -19.29% 4.24% -23.53%
3 Years 5.55% 4.42% 1.13%
5 Years 7.31% 6.10% 1.21%
Since Inception 9.12% 6.57% 2.56%
Source: Investec Asset Management, as at 30 November 2011