Satrix ETF’s Make a Million (!)

July/August 2009

Satrix?

Satrix is designed to give you low-cost exposure to the JSE. You can instantly invest in a diversified portfolio of equities with a single low cost investment.

“Your best bet is to opt for an index fund…the type that uses your money to track a stock market index…those index funds that are very low cost are investor-friendly by definition and are the best selection for people who wish to own equities.” (Warren Buffet)

Satrix listed the first ETF in South Africa in 2001.

Satrix Product Range

Market access

Indices AUMR’000 m

Satrix 40

Replicates the FTSE/JSE Top 40 index including basic materials, financials, industrials and telecommunication.

5 702,4

Satrix FINIReplicates the FTSE/JSE FINI 15 index including banks, insurance and financial services.

970,2

Satrix INDIReplicates the FTSE/JSE INDI 25 index including construction, manufacture and retail.

517,6

Satrix RESIReplicates the FTSE/JSE RESI 20 index including mining commodities and oil.

450,9

Satrix Swix Replicates the FTSE/JSE Swix Top 40 index. 226,1

Satrix DIVI

Replicates the FTSE/JSE Dividend index constituted by the top 30 dividend paying companies.

620,2

Satrix RAFIReplicates the FTSE/JSE RAFI 40 index, based on fundamental values of underlying constituents.

379,5

Broad market exposure – market cap indices Satrix 40 provides the broad market exposure by replication of the top 40

shares listed on the JSE by market capitalisation.

Satrix Swix is the shareholder adjusted Top 40 and reduces the weighting

given dual listed stocks (mainly the resource stocks).

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10

20

30

40

50

Resources Industrials Telecomms Consumer Financials

Satrix 40

Satrix Swix

Broad market exposure – fundamental index

Satrix RAFI is non-market cap weighted index.

Based on an index calculation methodology called fundamental indexation™

developed by Research Affiliates LLC.

Underlying constituents are selected by their fundamental values

i.e. sales, cash flow, book value and dividends.

Dividends are immediately reinvested to provide the total return of the index.

0

10

20

30

40

Resources Industrials Consumer Telecomms Financials

Satrix RAFI

Utilising an ETF

An index provides lower risk than single securities:

Diversification particularly in a broad based index such as Satrix 40

reduces the risk.

A basket of shares lowers volatility

Gearing of market views can add considerably to market performance.

ETF’s are a flexible and low cost way to gain instant exposure to the

market return.

Market makers provide liquidity in the market.

No STT is payable.

ETF’s as a core holding

Utilising ETF’s as a passive core

ETF’s can be utilised as the core of a portfolio by transferring the ‘dead

weight’ of the portfolio to provide beta exposure.

This results in the low cost market exposure.

An asset manager can then enhance the overall portfolio return by

offering active strategies.

Many institutional investors have embraced the idea that ETF’s can

help them equitise cash, use them for TAA (Tactical Allocation) and it

can be a substitute for a program trade or using futures.

Similarly ETF’s have internationally also been utilised as satelite

positions for to gain sector exposure as a complement to and active

core.

Total Expense Ratios as at 30 June 09

Fund Total Expense Ratios (TER)* Actual Expense Ratios (AER)**

Satrix 40 45.59 44.21

FINI 45.31 38.17

INDI 45.47 43.86

RESI 51.79 44.58

SWIX 45.57 45.59

DIVI 45.51 51.49

RAFI 53.79 56.87

* TER (annualised), includes all expenses, but excludes scrip lending revenue and brokerage.

** AER (annualised), TER, including scrip lending revenue and brokerage.

How do you buy Satrix?

Satrix investment plan on 086 110 0670

Accredited Broker

PSG Online share trading platform

Satrix Managers directly over a 1million units

DisclaimersDisclaimer

• The information provided in this document does not constitute investment advice; its sole purpose is to provide a brief description of the product. You should be aware that certain transactions give rise to substantial risk. Product values may be affected by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. These factors are interrelated in complex ways, and as a result, the effect of any one factor may be offset or magnified by the effect of another factor. Accordingly, certain transactions are not suitable or appropriate for all investors. You should take steps to ensure that you fully understand any transaction which you intend entering into and have made an independent assessment of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. You should also consider seeking advice from your advisers in making this assessment. This Document should not be considered as a recommendation by Satrix Managers (Pty) Limited (“Satrix Managers”) or any of its affiliates that the Satrix ETFs are a suitable investment. Satrix ETFs may or may not be suitable for all investors. Satrix Managers and/or any of its affiliates does not guarantee the performance of the Satrix ETFs. Past performance is no guarantee of future returns.

• The complete terms and conditions should be taken from the respective offering circular; this, and any supplements, may be obtained free of charge from Satrix Managers or any of its affiliates. Any investment in a Satrix ETF should be made solely on the basis of the Listing Particulars. All statements of opinion reflect the current assessment of Satrix Managers or any of its affiliates, which may change without prior notice. Although the information herein has been obtained from sources believed to be reliable, Satrix Managers or any of its affiliates does not guarantee its accuracy, completeness or fairness.

• Satrix Managers or any of its affiliates may make markets or hold units in the Satrix ETFs mentioned in this document or hold positions in the investments in which Satrix Managers invest.

• As set out in the offering circular, the sale of securities is subject to restrictions in some jurisdictions. In particular, any direct or indirect distribution of this document into the United States, Canada or Japan, or to U.S. persons or U.S. residents, is prohibited

• Trading on an exchange may incur additional costs, including trading fees (STRATE), brokerage, administration fees and Securities Transfer Tax (UST). The price at which a participatory interest trades on an exchange may differ from the price at which a manager repurchases participatory interests and the price published daily in the press in the listing of “unit trust prices”.

Index Disclaimers

• The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, FTSE, STOXX Limited and/or Dow Jones & Company, Inc (“Index Providers”) and they bear no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Offering Circular and the relevant Supplement contain a more detailed description of the limited relationship the Index Providers has with Satrix Managers and/or any of its affiliates, Satrix ETFs and any related ETFs.

• All database rights, copyright and any other intellectual property rights in the Index and constituent list vests in the Index Providers and/or its licensors. Satrix Managers or any of its affiliates has obtained full license from the Index Providers to use such database rights, copyright and other intellectual property rights in the creation of this product.

• The Index Providers and Satrix Managers or any of its affiliates make no warranty or representation whatsoever either as to the results obtained from use of the indices and/or the figures at which the said indices stand at any particular day or otherwise. These index sponsors shall not be liable to any person for any error in their indices and shall not be under any obligation to advise any person of any error therein.

© 2008 Satrix Managers (Pty) Limited.

Satrix Managers is an authorised Financial Services Provider.