1 Please note: the IP Prudential Equity Fund A Class has a Total Expense Ratio (TER including annual management fee of 0.75% plus VAT ) of 1.88% (VAT inclusive).

From 25/02/2016 to 31/03/2018 1.88% of the value of the financial product was incurred as expenses relating to the administration of the financial product. 0.44% of the

value of the financial product was incurred as costs relating to the buying and selling of the assets underlying the financial product. Therefore 2.32% of the value of the

financial product was incurred as costs relating to the investment of the financial product. A higher TER does not necessarily imply a poor return, nor does a low TER

imply a good return. The current TER may not necessarily be an accurate indication of future TER’s. Transaction costs are a necessary cost in administering the

Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many factors over time including market

returns, the type of financial product, the investment decisions of the investment manager and the TER.

Management Company:

IP Management Company (RF) Pty Limited

1st Floor, Mariendahl House, Newlands on Main,

Main Road, Newlands. 7700.PO Box 23271,

Claremont. 7735

t: +27 21 673 1340

f: 086 557 4848

Fund Manager:

MitonOptimal South Africa (Pty) Limited

t: +27 (0)21 689 3579

f: +27 (0) 21 685 6944

e: mail@mitonoptimal.com

w: www.mitonoptimal.com Member of the Association for Savings & Investment SA

ASISA Category: SA Multi Asset -

High Equity

Benchmark: CPI+5%

Inception:

A Class 10 March 2016

Min lump sum

investment: R10,000

Min monthly investment: R500

Max initial manager fee: 0%

Annual management fee:

(A Class) 0,75% (excl. VAT)

Dates of income

declarations: 31 Mar / 30 Sept

Date of income payment:

2nd day of the following month or next business

day if the 2nd does not fall on a business day

Valuation time: 15h00

(QE:17h00)

Transaction time: 14h30

Fund Prices at: 15h00

Custodian: Standard Bank of

South Africa

ISIN: (A Class) ZAE000215190

The IP Prudential Equity Fund is a multi-asset

portfolio which aims to achieve long term capital

growth, and will be a medium to high risk fund which

can utilise the maximum equity exposure allowed

under the prudential regulations. The asset

allocation of the portfolio will be varied according to

the manager’s view on the macroeconomic outlook

as well as the attractiveness of each asset class

and may include equities, bonds, money market

instruments, property and derivatives, in both local

and foreign markets.

The portfolio is managed to comply with the

statutory investment limits set for funds in South

Africa (regulation 28).

This fund is suitable for the sophisticated investor

who understands the risks of being exposed to

Equity.

The Fund will be managed using a top-down

approach, taking into consideration macro-

economic, fundamental, valuation and technical

factors. These will serve as inputs to the

managers’ tactical asset allocation decisions.

The managers will invest in a combination of

passive ETF instruments or Index Tracking funds,

and actively managed funds in core satellite

approach. If direct securities are held, it will be

managed on an index replication basis wherever

possible.

The Fund may also include participatory interests

or any other form of participation in portfolios of

Collective Investment Schemes or other similar

schemes in the Republic of South Africa.

At all times, the Fund will adhere to regulations

governing retirement funds (Regulation 28) and

Fund Objectives

IP Prudential Equity Fund (A Class) Minimum Disclosure Document

July 2018

Investment Process

Source: MitonOptimal South Africa (Pty) Ltd

Total expense ratio ¹: (A Class)

TER*: 1.88%

Transaction cost: 0.44%

Total costs (incl. VAT) 2.32%

Portfolio Sector Allocation

Investor Profile

Fund Information

Low Risk Low to

Moderate

Risk

Moderate

Risk

Moderate

to High

Risk

High Risk

The Fund Manager Latest price:

(31 - 07 - 2018)

A 106.99 cents

B 107.14 cents Number of Units:

A 136,492,551.20

B 44,485,798.49

Fund size: R194 m

Roeloff Horne

Director & Head of SA Portfolio

Management

Fund Reference Codes

Created: 21 August 2018

Annualised Returns (The average return on an investment each

year over a given time period) YTD 1-Year

Since inception

(10 - 03 - 2016)

IP Prudential Equity Fund -0.62% 3.01% 3.76%

Index : CPI Excluding Owners Equivalent Rent + 5% in ZA 5.23% 8.78% 10.60%

Cumulative Returns YTD 1-Year Since inception

(10 - 03 - 2016)

IP Prudential Equity Fund -0.62% 3.01% 9.39%

Index : CPI Excluding Owners Equivalent Rent + 5% in ZA 5.23% 8.78% 27.75%

Fund Performance

Asset Class

Source: Financial Express Analytic

49.2%

1.3%

11.4% 11.7%

0.5% 1.9%

22.7%

53%

5%

10%

6%3%

20%

3%

0%

10%

20%

30%

40%

50%

60%

Current Neutral

SA Equity49.17%

SA Property1.32%

SA Bonds11.38%

SA Fixed Interest Strategy11.67%

SA Money Market0.45%

Global Cash1.45%

Global Property1.86%

Global Equities22.69%

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore | Jersey

www.mitonoptimal.com

The IP Prudential Equity Fund is a multi-asset portfolio which aims to achieve long term capital growth, and will be a medium to high risk fund which can utilise the maximum equity exposure allowed under the prudential regulations. The asset allocation of the portfolio will be varied according to the manager’s view on the macroeconomic outlook as well as the attractiveness of each asset class and may include equities, bonds, money market instruments, property and derivatives, in both local and foreign markets. The securities that will normally be included in the portfolio will, apart from assets in liquid form, consist of listed and unlisted securities, or any other asset, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, to be acquired at fair market prices. The portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes in the Republic of South Africa. Where the aforementioned schemes are operating in territories other than South Africa, participatory interests or any other form of participation in these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and the trustee as being of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the portfolio’s primary objective. The portfolio will comply with all prudential requirements and regulations controlling retirement funds or such other applicable legislation as may be determined for retirement funds. The Manager will be permitted to invest on behalf of the portfolio in offshore investments as legislation permits.

The Manager may from time to time invest in listed and unlisted financial instruments, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio’s investment objective. Nothing in this supplemental deed shall preclude the manager from varying the ratio of securities, to achieve the investment objective in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and this supplemental deed; provided that the Manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of securities and assets in liquid form of the aggregate value required from time to time by the Act. For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager. The trustee shall ensure that the investment policy set out in this supplemental deed is adhered to.

Fund Distributions

IP Prudential Equity Fund (A Class) Minimum Disclosure Document

July 2018

Investment Policy

Investec Top40 TRI 11.89%

SIM Enhanced Yield Fund 11.67%

Newfunds GOVI ETF 11.38%

PSG: Equity Fund 9.26%

iShares MSCI ACWI Index Fund 9.25%

Matrix NCIS Equity Fund 6.96%

Ashburton Top 40 6.13%

Laurium: Prescient Equity Fund 5.89%

Investec Bank Eurostoxx50 ELN 4.93%

Satrix Quality SA Portfolio 3.89%

Top Fund Holdings

Source: MitonOptimal South Africa (Pty) Ltd

30 Sep 2016 0.55 cents per unit

31 Mar 2017 0.34 cents per unit

30 Sep 2017 0.69 cents per unit

31 Mar 2018 0.60 cents per unit

Created: 21 August 2018

Historical Portfolio Asset Class*

*Updates on a quarterly basis

A Class - Annualised Performance Return Date Ending

Lowest Ann. -2.07% 24-Mar-17

Highest Ann. 18.09% 09-Nov-17

Foreign Disclosure The portfolio may include foreign investments and the following additional risks may apply: liquidity constraints when selling foreign investments and risk of non-settlement of trades; macroeconomic and political risks associated with the country in which the investment is made; risk of loss on foreign exchange transactions and investment valuation due to fluctuating exchange rates; risk of foreign tax being applicable; potential limitations on availability of market information which could affect the valuation and liquidity of an investment. All of these risks could affect the valuation of an investment in the fund.

Collective Investment Schemes are generally medium to long term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from the manager. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The Manager retains full legal responsibility for the fund, regardless of Co-Naming arrangements. Transaction cut off time is 14:30 daily. Each portfolio may be closed for new investments. Valuation time is 15:00 (17h00 at quarter end). Prices are published daily and available newspapers countrywide, as well as on request from the Manager. IP Management Company (RF) Pty Ltd is the authorised Manager of the Scheme – contact 021 673 1340 or clientservices@ipmc.co.za. Standard Bank is the trustee / custodian – contact compliance-IP@standardbank.co.za. Additional information including application forms, the annual report of the Manager and detailed holdings of the portfolio as at the last quarter end are available, free of charge, from clientservices@ipmc.co.za. IP Management Company is a member of ASISA. A statement of changes in the composition of the portfolio during the reporting period is available on request. The performance is calculated for the portfolio. The individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The fund is invested in a portfolio of collective investment schemes that levy their own charges, which could result in a higher fee structure for the fund.

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore | Jersey

Roeloff Horne

Director and Head of Portfolio Management

(South Africa)

IP Prudential Equity Fund (A Class) Minimum Disclosure Document

July 2018

Fund Manager History

Roeloff is a Director and the Head of South Africa Portfolio Management at MitonOptimal and Co-Manager on a range of local funds. He was a founder and Director of Eagle Asset Management and Bond Street Financial Services - now MitonOptimal Portfolio Management (SA). He has at National Certificate in Financial Markets & Instruments and an International Capital Markets qualification from the London Securities Institute.

Roeloff founded Bond Street in 2000 and was instrumental in structuring the company as a Portfolio Management Company. Roeloff has managed the Diversified Income and Worldwide Flexible Fund of Funds since their inception in 2005 and 2008 respectively.

Created: 21 August 2018

IP Prudential Equity Fund (Quarterly Commentary as at June 30, 2018)

FAIS Conflict of Interest Disclosure

With multi-asset portfolios the investment manager, MitonOptimal South Africa (Pty) Ltd employs an investment strategy where specific collective investment schemes across a range of asset classes are selected and grouped together. This enable the management of the units in those portfolios in a cost and tax efficient manner. The investment manager re-invests 100% of all rebates received from the underlying managers. No other FSP receives a distribution fee from the investment manager. If another intermediary FSP is used, it is their responsibility to disclose any additional fees to you as the investor. The following fees are paid out of the portfolio’s service charge and range as follows (excl VAT): IP Management Company (Pty) Ltd: Up to 0.15% p.a.; MitonOptimal South Africa: between 0.25% and 0.30%; Lisp: 0.25%. Total Service Fee: 1.00% p.a. Excluding VAT. Distributor: Signal Wealth (registered Financial Services Provider No. 45386) The distributor receives 0.25% from the management fee of the A class , 12 Green Point Mews, Main Road ,Green Point, C: +27 83 259 1019 T: +27 31 941 2933

What makes this Fund unique relative to its peers is the high allocation to indexation, combined with a lower than average alpha manager allocation, direct securities and money market instruments. The current allocation to indexation / ETFs is 53%, alpha managers 27%, direct securities 1.5%, money market instruments 14% and an index-linked secure note of 4.5%.

The ETF allocation can be split between a large beta component and a smart beta allocation. Beta instruments buy the index, which means, other than the cost associated with the ETF, the instrument tracks the underlying index. In this Fund, we track the JSE ALSI 40 Equity Index (18.03%), MSCI World Equity Index (9.27%), MSCI Emerging Market Equity Index (3%) and the SA All Bond Index (11.85%). We also track two Global Real Estate Indices (1.86%).

This makes the beta allocation 44.01% of the Fund. The main benefit of this allocation is that you buy the market (with no tracking error) at a very low cost.

When the investment committee has conviction on a specific sector/area in the market, we can buy a ‘smart beta’ Index fund e.g. the manager has a preference for a certain style or theme in the market and uses an Index provider to manage the style/theme.

The Fund currently holds the following:

• The SA Quality Index ETF (3.87%) tracks the Standard & Poor’s matrix which

reflects 20 high-quality SA stocks that are selected using a quality score. This quality score is calculated based on a company's return on equity, accrual ratios and the financial leverage ratio.

• The Satrix RAFI Top 40 Total Return ETF (3.75%) allocates the Top 40 stocks

based on fundamental values: Sales/Cash Flow/Book Value and Dividend Distributions relative to one another.

• The Ashburton Mid / Small Cap ETF (0.65%) matches the SA Mid / Small Cap

Equity Index.

• The Sygnia 4th Industrial Revolution Global Equity ETF (1.17%) to benefit from

potential appreciation in smaller AI companies globally.

This makes up the smart beta allocation 9.44% of the Fund.

We respect the fact that active specialist fund managers have outperformed the indexes over the long term, thus we have include the following managers as ‘Alpha’ managers of SA /Global Equity mandates (27%): PSG (9.23%), Laurium (5.88%), Matrix (6.99%) and Bateleur (2.57%) for equity mandates. All five managers have demonstrated their active skills in outperforming their equity/bond

benchmarks over the long term. We hold a Global Equity alpha manager in Old Mutual Global Equity (2%) to complement the Global Equity Index solutions as ‘Alpha’ Managers.

We hold SA Listed Property exposure and bought direct securities to reflect our views on local and global listed property by adding Growthpoint and Redefine (1.18% of the fund) late in January. We continue to hold EOH Holdings (0.39%) post the substantial price correction due to its relationship with potential state capture entities. Although the local and global capital markets had a weak year to date due to high US equity valuations and an ongoing Trade war between the US & China, we feel comfortable in holding 85% of our portfolio in local & global risk assets for long-term investors wishing to gain returns of more than CPI +5% p.a. net of fees over rolling 5-year periods.

Market Commentary

After a tough start to the year, many investors might be questioning why we should be invested in risk assets, specifically equities. We share our thoughts with you as to why we continue to believe that investors should remain invested in South African (SA) shares/bonds and International equities.

• We need to remind ourselves that we are only four months into a post-Zuma -

Ramaphosa presidency and that this “new broom sweeps clean“ President has not yet been fully priced into the markets.

• Post the sell-off in March and the weak performance of SA equities relative to

Emerging Market equities, we are of the view that SA equities are offering improved value – especially relative to any period in the past five years. This is particularly the case if economic growth exceeds forecasts, despite the negative surprise in the first quarter.

• The best value in domestic SA shares currently lies in the mid and small cap

stocks. The sector trades as the second cheapest sector in the world. We are investing cautiously into this asset class until we have evidence of more sustained economic growth in SA.

• Lower interest rates, higher minimum wages and above CPI government

wage increases will also boost the retail spending power of South Africans, but higher fuel prices and VAT will neutralise this effect somewhat.

Global economic growth remains expansionary and on average, monetary policy

remains accommodative.