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

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

Member of the Association for Savings & Investment SA

Fund Information

Latest price:

(31 - 08 - 2017)

146.49 cents

Fund size ¹: R242 m

Number of Units: 138,230,256.23

Created: 14 September 2017

MitonOptimal IP Diversified Income Fund of Funds (B2 Class) Minimum Disclosure Document

August 2017

Annualised Performance Return Date Ending

Lowest Ann. 1.33% 01-Jul-2017

Highest Ann. 12.08% 21-May-2013

*Includes the annual management for of 0.86%

(VAT inclusive) to MitonOptimal South Africa (Pty)

Ltd.

Investor Profile

Low Risk Low to

Moderate

Risk

Moderate

Risk

Moderate

to High

Risk

High Risk

The Fund Managers

Fund Performance

Fund Performance History (Cumulative)

Source: Financial Express Analytics for Fund Performance figures & Fund Performance History graph.

The Fund aims to provide investors with a high level of

income and low risk capital growth to outperform the greater

of the rolling 2 year SA Repo rate or CPI + 2% p.a.

The Fund is diversified between asset classes with a high

allocation to assets that generate income. It is managed

according to the Prudential Regulation 28 guidelines of the

Pension Fund Act.

This Fund is suitable for conservative investors with the priority to safeguard assets in a tax efficient manner, whilst satisfying a need for income.

The Fund has a predetermined risk budget per asset

class to allow the manager to vary exposure between

asset classes, whilst respecting the Fund’s strategic

asset allocation benchmarks.

The managers consider tactical asset allocations

between asset classes and sectors after a team process

has determined a risk score by considering the global

and local leading economic indicators, asset class

valuations, Fundamental research, independent liquidity

analysis and technical analysis.

Fund Investment Objectives Investment Process

ISIN: (B2 Class) ZAE000159166

Bloomberg: (B2 Class) MITDIB2:SJ

Scott Campbell

Group Managing Director & Chief

Investment Officer

Roeloff Horne

Head of SA Portfolio Management

Fund Reference Codes

Annualised Performance

1 Fund size is of the A Class launched on 21/11/2005 and the B2 Class launched on 03/10/2011 combined.

2 Please note: the MitonOptimal IP Diversified Income Fund of Funds B Class has a Total Expense Ratio (TER including annual management fee of 0.86% incl. VAT) of 1.85%

(Inclusive a performance fee* of 0.09%). From 01/04/2014 to 31/03/2017 1.85% of the value of the financial product was incurred as expenses relating to the administra tion of

the financial product. 0.08% of the value of the financial product was incurred as costs relating to the buying and selling o f the assets underlying the financial product.

Therefore 1.93% 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.

ASISA Category: SA Multi Asset -

Low Equity

Performance fee Benchmark: SA Repo Rate p.a

Base fee 0.75% per annum

Fee at Benchmark 0.75% per annum

Fee Hurdle SA Repo Rate per

annum

Sharing Ratio 10%

Minimum fee 0.75% per annum

(Class B2)

Maximum fee No Maximum

Inception:

A Class 21 November 2005

B2 Class 03 October 2011

Min lump sum investment: R10,000

Min monthly investment: R500

Max initial manager fee: 0%

Max initial adviser fee: 2.75% (incl. VAT)

Annual management fee: 1.14% (incl. VAT)

Hurdle rate: SA Repo Rate

Dates of income declarations: 31 Mar / 30 Jun / 30

Sept / 31 Dec

Date of income payment:

15th day of the following month or next business day if the

15th does not fall on a business day

Valuation time: 20h00

Transaction time: 14h30

Custodian: Standard Bank of

South Africa

Total expense ratio (TER) ² :

TER*: 1.85%

Transaction cost: 0.08%

Total costs (incl. VAT): 1.93%

Annualised Returns (The average return on an investment

each year over a given time period) YTD 1-Year 3-Year

Since inception

(03 - 10 - 2011)

5-Year

MitonOptimal IP Div Income Fund of Funds 4.71% 3.45% 6.22% 7.25% 6.75%

Benchmark: SA Repo Rate p.a 4.53% 6.56% 6.95% 7.53% 7.57%

Cumulative Returns YTD 1-Year 3-Year Since inception

(21 - 11 - 2005)

5-Year

MitonOptimal IP Div Income Fund of Funds 4.71% 3.45% 19.88% 51.30% 38.63%

Benchmark: SA Repo Rate p.a 4.53% 6.56% 22.36% 53.60% 44.08%

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

www.mitonoptimal.com

August 2016

Top Portfolio Holdings Top Securities

MitonOptimal IP Interest Plus Fund 30.89%

Prescient Income Provider 10.12%

Nedgroup Investment Opportunity Fund 8.81%

MitonOptimal International Managed Flexible Fund 7.97%

Allan Gray: Optimal Fund 6.95%

BCI: Income Plus Fund 6.58%

MitonOptimal IP Active Beta Fund 6.09%

Tantalum: BCI Strategic Income Plus Fund 4.83%

MitonOptimal IP Defended Beta Fund 3.01%

RMI Specialist Managers Unconstrained Fixed Interest Fund 2.41%

Naspers LTD - N SHS 2.29%

Ishares Core MSCI Total International Stock ETF 1.40%

Ishares Core Total USD Bond Market ETF 1.32%

Ishares Trust SP 500 Index fund 1.23%

Ishares Emerging Market Local Currency Bond ETF 1.15%

ML Capital Catalyst Global Real Estate UCITS 1.04%

Ishares MSCI Core Emerging Market Index 0.77%

Sasol LTD 0.77%

Ishares Treasury Floating Rate Bond ETF 0.10%

Asset Class Allocation Fund Distributions

31 Mar 2012 0.73 cents per unit 31 Dec 2014 1.05 cents per unit

29 Jun 2012 1.63 cents per unit 31 Mar 2015 0.57 cents per unit

30 Sep 2012 0.99 cents per unit 30 Jun 2015 1.01 cents per unit

31 Dec 2012 1.46 cents per unit 30 Sep 2015 0.66 cents per unit

31 Mar 2013 0.74 cents per unit 31 Dec 2015 1.13 cents per unit

30 Jun 2013 1.00 cents per unit 31 Mar 2016 1.04 cents per unit

30 Sep 2013 0.74 cents per unit 30 Jun 2016 1.44 cents per unit

31 Dec 2013 1.05 cents per unit 30 Sep 2016 1.25 cents per unit

31 Mar 2014 0.86 cents per unit 31 Dec 2016 1.27 cents per unit

30 Jun 2014 1.20 cents per unit 31 March 2017 1.27 cents per unit

30 Sep 2014 0.84 cents per unit 30 Jun 2017 1.67 cents per unit

Historical Portfolio Asset Class*

Source: Financial Express Analytics

MitonOptimal IP Diversified Income Fund of Funds (B2 Class) Minimum Disclosure Document

August 2017

Created: 14 September 2017

*Updates on a quarterly basis

10%

3%

10%

13%

17%

31%

3%2% 2%

7%

2%

7%

4%

7%

25%

26%

13%

2%3%

4%

7%

2%

0%

5%

10%

15%

20%

25%

30%

35%Current Neutral

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

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 Fund is invested in portfolios of other Collective

Investment Schemes that levy their own charges, which could result in a higher fee structure for the Fund of Funds. The Manager retains full legal responsibility for the Fund, regardless of Co-Naming

arrangements. Each portfolio may be closed for new investments. Transaction cut-off time is 14:30 daily. Valuation time is 20:00 for Fund of Funds. Prices are published and calculated daily, they are

available in 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. MitonOptimal South Africa (Pty)

Limited is the Fund Manager and is regulated by the Financial Services Board, FSP 28160. We advise that you consult a Qualified Independent Financial Advisor to ensure that the Fund is appropriate in

terms of the investor’s risk tolerance and appetite. Collective Investment Schemes prices are calculate on a net asset value basis and auditor’s fees, bank charges and trustee fees are levied against the

portfolio. Graphs and performance figures are sourced from Financial Express for lump sum investments including income distribution, at NAV to NAV basis and do not take any initial fees into

account. Income is reinvested on the ex-dividend date. Performance shown is for the portfolio. The Performance Fee Frequently Asked Questions (FAQ) document may be found on www.ipmc.co.za.

Individual investor performance may differ due to initial fees, actual investment date, re-investment date and withholding taxes. MitonOptimal South Africa (Pty) Limited is authorised to act as a Fund

Manager in terms of FAIS.

MitonOptimal IP Diversified Income Fund of Funds (B2 Class) Minimum Disclosure Document

August 2017

Created: 14 September 2017

Diversified Income Portfolio Construction Methodology

Roeloff Horne

Director and Head of Portfolio Management (South Africa)

**Performance Fee Explanation

The high watermark is the highest level of relative outperformance of the fund over the Fee Hurdle since inception of the fund.

Fee example: 10% outperformance of portfolio benchmark on a high water mark basis.

Methodology applied: If the fund underperforms the Fee Hurdle, then no fee is accrued until the high water mark is again reached.

Quarterly Market Commentary (As at 31June 2017)

It is easy to become pessimistic about potential returns in our SA capital markets, considering all the negative political and economic rhetoric at the moment. Our stock market has recently had another short-term correction, taking the Index value back to July 2014 levels. One can also build a fairly positive case for our stock market after so many shares have taken a serious beating the last nine months or so. For the three months to the end of June 2017, the ALSI Equity Index returned -0.4% (+3.4% in 2017 and +1.1% over the past 12 months), the All Bond Index returned +1.5% (+4% in 2017), Cash achieved +1.85% (+3.7% in 2017), SA Listed Property achieved +0.9% (+2.3% in 2017). The rand appreciated by +2.58% (+4.70% in 2017) to the US dollar, while the MSCI World Equity Index returned +1.89% (+6.71% in 2017). The Diversified Income FoF returned 1% over the past quarter and 2.57% for 2017. The Fund performed ahead of Money Market returns, up to the end of May, before the latest equity market correction. We understand that investors are losing patience, due to the low single digit returns since launch, especially when Money Market returns of 7.4% p.a. are available. We maintain that risk assets do outperform cash over most periods in a tax–efficient

manner. This time will be no different as the potential for interest rate cuts in SA is growing by the day, to boost our ailing economy potentially. This is not the time to panic and abort the investment philosophy. History has learned that the current conditions are normally a buying opportunity. We have increased our local (many local shares are a lot cheaper now trading at a discount of 25-30% relative to their fair value) and offshore equity exposure, as global growth and economic activity is accelerating across the developed world and certain areas of the emerging world. Many non-US equity indices are trading at 2007 levels (and some at 2000 levels) and have a lot of upside potential. Earnings growth in the US is expected to be double-digit for the next quarter as US growth dynamics recover. We remain constructively invested in risk asset classes and offshore assets to benefit from a potentially a weaker rand in the future.

Actions in the past quarter

We removed the SA Inflation Linked Bond Fund from the Fund in mid-June and replaced it with investments in the Interest Plus Fund (managed by Ashburton), MitonOptimal IP Active Beta, Nedgroup Opportunity (managed by Abax), BCI Income Plus, Tantalum Strategic Income and Granate Unconstrained Fixed Interest Funds. All in all increasing risk by a small margin.

Investment Policy

The MitonOptimal IP Diversified Income Fund of Funds is an income generating South Africa based Fund of Funds . The investment objective of the Fund is to achieve a high level of sustainable income and stability of capital invested. It will invest in a broad range of participatory interests and other forms of participation in collective investment schemes (CISs) or similar schemes.

Investments to be included in the Fund, apart from assets in liquid form, will consist solely of participatory interests in portfolios of CISs investing in equity securities, property shares, property related securities, non-equity securities and money market instruments. The underlying portfolios of CISs will be registered in South Africa or other similar schemes operated in territories with a regulatory environment which is, to the satisfaction of the Manager and Trustee, of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the Fund’s primary objective. To provide a limited level of capital protection, the Fund’s equity exposure may be as high as 40% of the Fund’s net asset value. The composition of the Fund portfolio shall reflect the investment structure of a conservatively managed retirement Fund.

The Manager may vary the ratios of securities or assets in liquid form, in a changing economic environment; due to market conditions; to meet the requirements in terms of legislation and from retaining cash or placing cash on deposit, in terms of the Deed and the Supplemental Deed.

The Manager reserves the right to close the Fund to new investors on a date determined by the Manager. This would be done in order to manage the Fund in accordance with its mandate. The Manager may, after the Fund was closed, re-open it to new investors, on a date determined by the Manager.

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. Any performance fees generated in terms

of the Fund’s FSB – approved specifications is payable to the investment manager only. 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 Fee: 0.25%; Performance Fee: Accrue to the investment manager; Total Service Fee: 1.00% p.a. Excluding VAT.