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MONTHLY INSIGHTSMAY 2019
Time Period: 2019/05/01 to 2019/05/31
Return
Allied Electronics Corp Ltd Altron Shs A
Gold Fields Ltd
Lewis Group Limited
AngloGold Ashan� Limited
Datatec Ltd.
Fortress REIT Ltd Class B
21.84
21.30
19.30
12.98
9.92
8.84
JSE Winners 1 month
Time Period: 2019/01/01 to 2019/05/31
Return
Kumba Iron Ore Limited
Impala Pla�num Holdings
Telkom SA, Ltd.
Allied Electronics Corp Ltd Altron Shs A
Anglo American Pla�num Ltd
Sibanye Gold Limited
62.90
58.12
44.92
39.44
37.61
37.33
JSE Winners YTD
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE/JSE All Share TR ZAR
FTSE/JSE Top 40 TR ZAR
FTSE/JSE SA Resources TR ZAR
FTSE/JSE Ind/Industrials TR ZAR
FTSE/JSE Financial 15 TR ZAR
FTSE/JSE Top 40 SWIX TR ZAR
FTSE/JSE Mid Cap TR ZAR
FTSE/JSE Small Cap TR ZAR
Beassa ALBI TR ZAR
STeFI Composite ZAR
MSCI ACWI Ex USA NR USD
4.84 0.73 11.64 2.43 4.17 5.44 7.09
5.09 1.19 12.77 2.80 4.10 5.16 7.64
5.09 2.70 23.07 16.59 15.85 0.43 9.56
3.88 3.23 3.77 9.25 1.78 1.25 1.77
6.30 1.36 8.97 0.21 2.19 4.91 5.75
1.91 0.51 6.40 6.03 8.44 8.15 5.10
3.53 2.78 5.19 0.47 2.20 5.45 1.76
0.64 2.74 5.93 7.75 10.50 8.32 5.26
5.37 2.29 2.30 6.26 6.73 1.31 7.15
2.68 0.76 2.31 13.70 2.73 1.79 1.47
0.61 1.82 3.61 7.29 7.44 7.06 3.00
South African Indices
American Indices
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
DJ Industrial Average TR USD
S&P 500 TR USD
NASDAQ Composite TR USD
US Dollar
CBOE Market Vola�lity (VIX)
6.32 3.66 1.70 4.05 14.46 10.88 7.54
6.35 0.67 0.74 3.78 11.73 9.66 10.74
7.79 0.77 2.25 1.23 15.92 13.22 12.85
0.28 1.66 0.49 4.01 0.64 3.99 1.64
42.61 26.59 3.54 21.26 9.66 10.42 26.40
European Indices
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE 100 TR GBP
FSE DAX TR EUR
Euronext Paris CAC 40 PR EUR
MSCI ACWI Ex USA NR USD
5.00 1.83 4.17 6.97 4.55 3.35 11.06
2.87 2.66 5.02 2.54 9.15 4.99 8.83
6.78 0.63 4.07 3.53 4.95 2.87 10.08
5.37 2.29 2.30 6.26 6.72 1.31 7.15
World Index (ZAR)
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 4.48 1.95 6.46 13.46 6.29 12.14 10.39
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
MSCI ACWI NR USD 5.93 1.53 1.40 1.29 9.07 5.22 9.08
World Index (USD)
Time Period: 2019/05/01 to 2019/05/31
2019/0592.0
94.0
96.0
98.0
100.0
102.0
FTSE/JSE All Share TR ZAR DJ Shanghai PR CNY S&P 500 TR USD
FTSE 100 TR GBP
Global Indices Performance
Global Indices Cumula�ve Performance YTD
1 M YTD8.00
6.00
4.00
2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
4.84
7.09
6.55
19.15
1.71 1.85
6.35
10.74
2.87
8.83
FTSE/JSE All Share TR ZAR DJ Shanghai PR CNY S&P GSCI Gold TR
S&P 500 TR USD FTSE 100 TR GBP
Re
turn
JSE Losers 1 month
Time Period: 2019/05/01 to 2019/05/31
Return
Steinhoff Interna�onal Holdings NV
Massmart Holdings Ltd
Brait SA
Omnia Holdings Limited
Blue Label Telecoms Limited
Sasol, Ltd.
34.63
28.52
27.26
23.97
23.17
22.74
JSE Losers YTD
Time Period: 2019/01/01 to 2019/05/31
Return
The TongaatHule� Group Limited
Eoh Holdings Limited
Omnia Holdings Limited
Montauk Holdings Ltd
Brait SA
Massmart Holdings Ltd
70.07
66.26
47.20
45.75
44.23
33.78
May 2019 Page 1
JSE Top 40 Holdings
Market Cap (mil) 1 M 1 Y 3 Yr YTD
Naspers Ltd
BHP Group PLC
Richemont Securi�es Ag ADR
Anglo American PLC
Sasol, Ltd.
Standard Bank Group Ltd.
Firstrand Limited
Mtn Group Limited
Bri�sh American Tobacco PLC
Sanlam Limited
Mondi PLC
Absa Group Ltd
Old Mutual Ltd Ordinary Shares
Nedbank Group, Ltd.
BidCorp Ltd
Remgro Ltd
AngloGold Ashan� Limited
Shoprite Holdings Limited
Capitec Bank Holdings Limited
Vodacom Group Ltd.
Growthpoint Proper�es Ltd.
Bidvest Group
Rmb Holdings Limited
Investec PLC
Redefine Proper�es Ltd.
Mul�Choice Group Ltd ADR
Mr Price Group Ltd
Discovery Holdings Ltd
Clicks Group Limited
Anglo American Pla�num Ltd
Woolworths Group Limited
Gold Fields Ltd
Tiger Brands Limited
Psg Group Limited
NEPI Rockcastle PLC
Mondi Limited
Foschini Group Limited
Sappi, Ltd.
The Spar Group Limited
Aspen Pharmacare Holdings PLC
1 456 813.59 10.38 12.60 13.96 17.58
101 468.71 1.37 13.09 36.02 15.44
680 849.00 1.53 6.22 7.15 13.64
30 848.52 4.36 9.71 50.81 10.65
220 633.06 22.74 16.85 5.15 12.36
315 858.76 0.13 0.51 22.03 14.17
389 444.12 1.49 16.23 20.72 4.16
193 300.50 0.71 5.99 0.23 18.98
64 432.63 7.69 23.57 7.94 12.43
170 129.59 0.44 4.25 10.89 0.65
6 514.85 2.41 18.32 12.12 3.28
145 958.64 2.89 11.39 11.28 8.27
102 422.81 8.48 — — 2.86
121 365.82 1.50 0.95 19.37 1.99
103 598.07 0.74 22.17 1.93 16.01
105 686.89 4.63 8.18 6.18 3.82
104 868.14 12.98 81.17 2.02 7.64
88 110.66 0.20 24.66 4.17 8.72
150 178.65 1.31 52.86 31.85 19.00
204 213.39 3.02 11.50 4.50 10.00
71 680.00 2.77 3.23 8.76 8.36
65 024.56 4.61 5.41 21.10 1.48
119 966.54 1.33 18.38 20.47 6.65
3 520.79 4.93 12.60 4.21 4.53
45 740.07 2.92 8.30 2.80 1.12
4 109.65 6.77 — — —
50 683.45 8.99 18.56 5.73 19.91
98 345.55 3.70 8.61 6.36 12.55
51 732.78 2.55 3.72 23.00 1.04
221 460.11 1.50 121.44 28.62 37.62
42 527.53 4.11 17.77 13.42 15.28
63 548.23 21.30 45.73 16.18 33.04
40 223.26 11.46 25.15 7.74 9.54
52 581.66 7.16 13.70 10.81 0.53
76 159.06 3.21 6.28 7.61 12.61
37 386.90 4.99 11.16 4.10 0.43
42 703.83 4.69 0.35 12.23 7.92
59 034.91 19.18 30.85 6.02 29.51
36 592.04 1.29 3.13 1.60 7.72
45 932.88 4.82 59.56 30.86 27.35
JSE Top 40 Return per annum
2014 2014 2015 2016 YTD10.0
5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
9.27.5
1.6
23.1
28.0
FTSE/JSE Top 40 TR ZAR
Re
turn
South African Headlines
The SA Produc�on Managers Index (PMI) rose back into expansionary mode – but only just. Where any index level above 50
represents growth, and below 50 contrac�on, the index rose to a level of 50.3 in April. A lot of this had to do with the
expecta�on that economic momentum would pick up a�er the elec�on (the PMI reading was released two days prior to
Elec�on Day).
The BER consumer confidence index �cked higher for 2019’s second quarter. But South African consumers remain under
pressure — clear from several indicators: Total Vehicle Sales dropped by 5.7% yearonyear in May, its fi�h consecu�ve
decline proving that debtridden and cashstrapped consumers are wary of taking on chunky investments/expenditure.
South African equi�es slipped in May, effec�vely cu�ng the yeartodate performance in half. The SWIX lost 5.64%, with the
yeartodate return for May now at 5.74%. The local bourse managed to marginally outperform the MSCI World and fared
substan�ally be�er than its Emerging Market peers. All major sectors of the index were lower, with industrials showing the
biggest loss (5.95%). Naspers dipped by nearly 9%, dragging on the index. Bri�sh American Tobacco also slumped further,
hi�ng a threemonth low at monthend. Despite some ji�ers a�er the suspension of its CEO Peter Moyo, and a consequent
dip in Old Mutual Limited share prices, financials outperformed their peers, yielding 2.31% for the month. With ra�ngs
agencies leaving South Africa’s status unchanged for the �me being, analysts believe that the commitment shown by the
country’s new leadership will be key to unlocking foreign investment and boos�ng local demand.
MRP
South African budget retailer Mr Price Group has closed its Australian test stores due to low returns, it said on Friday,
underscoring the costs of expanding into new foreign markets, where retailers are figh�ng for market share. Mr Price,
known for its nofrills clothing and furniture stores, has been tes�ng out three stores in Australia, one MRP apparel and two
MRP Home, since late 2015 to see whether there is “a proven profitable business case for expansion”. But in April the board
approved the withdrawal of financial support to the Australia opera�ons and as a result the MRP Retail Australia (Pty) Ltd
directors put the company into administra�on on May 2, the firm said in its results statement. The Australian stores ceased
trading at the end of April. Chief Execu�ve Officer Mark Blair, who took the helm in January, said the business did not have
the scale and prices to cover opera�ng margins. Unlike other retailers, Mr Price has taken a cau�ous outlook on
nterna�onal expansion outside Africa as organic growth beyond Africa has proven challenging and distrac�ng.
“To build a brand in a foreign market is a very long road and you got to have some deep pockets,” he told analysts at the
results presenta�on, adding that the firm’s biggest and significant opportuni�es are in its home market, where it knows the
customer and compe��on. “We need to just stress that we’re in no rush to buy something interna�onally. We don’t feel the
pressure.” Having said that, the group with more than 1 300 stores across Africa, is undertaking a research phase from June,
to evaluate iden�fied opportuni�es in exis�ng markets and iden�fy a�rac�ve interna�onal markets, Blair said. The most
likely approach will include partnerships with exis�ng successful businesses, which will be funded from the balance sheet,
he added. Mr Price saw total revenue in the year ended March 30 grow 5.8%, with retail sales up by 4.4% to R20.9 billion,
exceeding R20 billion for the first �me, Blair said. While comparable store sales rose 1.6% in a tough retail environment.
Retailers in South Africa are struggling to boost sales growth as an increase in valueadded tax, unemployment, and higher
fuel costs as well as u�lity prices have reduced consumers’ spending power. That has created a low growth environment for
retailers compe�ng for market share, resul�ng in strong promo�onal ac�vity. Despite this, both the apparel and homeware
businesses outperformed the market and gained market share on an annual basis in the first half. The apparel business,
which comprises Mr Price, Miladys and Mr Price Sport, saw retail sales and other income (RSOI) rise by 3.8%, while the
home segment, which includes Sheet Street and Mr Price Home, increased RSOI by 5.9% to R5.3 billion. Its diluted headline
earnings per share (Heps) rose to R1.142 cents from R1.75 cents in the yearago period.
Tongaat Hulle�
South African sugar producer Tongaat Hule�’s said on Friday its 2018 results could face a poten�al hit of up to R4.5 billion
($306.38 million) following a review of its accoun�ng prac�ces. Tongaat, which has opera�ons in South Africa, Mozambique
and Zimbabwe, said in March that newly appointed CEO Gavin Hudson was conduc�ng the review and that it had revealed
past accoun�ng prac�ces that might require remedial ac�on. On Friday, Tongaat said it es�mated areduc�on in the amount
reflected in the company’s equity as at April 1, 2018 to be between R3.5 billion and R4.5 billion. The company also said the
impact was s�ll being determined. Tongaat said its financial results for 2019 would include restated prior financial
informa�on and would be delayed and only released by October 2019. Tongaat’s shares were nearly 9% lower by 1310 GMT.
Tongaat, whose net debt stood at R7.754 billion as of September 30, 2018, said in February it had entered discussions with
its lenders. The company appointed PricewaterhouseCoopers in March to review its accoun�ng prac�ces.
Stock Informa�on
1 M YTD8.00
6.00
4.00
2.00
0.00
2.00
4.00
6.00
8.00
10.00
5.09
7.64
3.24
3.11
5.84
7.39
4.05
6.60
3.61
7.05
FTSE/JSE Top 40 TR ZAR (ASISA) South African EQ Financial (ASISA) South African EQ Industrial
(ASISA) South African EQ Resources Fairtree Select Equity
Re
turn
Local Indices Performance
Time Period: 2019/05/01 to 2019/05/31
2019/05
92.0
94.0
96.0
98.0
100.0
102.0
FTSE/JSE Top 40 TR ZAR 94.9
JSE Top 40 Index
May 2019 Page 2
The single largest catalyst was Donald Trump’s tweet on 5 May that the US would proceed to impose
tariffs on certain Chinese imports, despite only days before having led investors to believe that “a ll was
well” with regard to the US China trade discussions and that an agreement was imminent. The escala�on
of trade tensions toward monthend saw US stocks plummet to their lowest point this year: The S&P500
closed the month 6.3% lower. US companies have felt the impact of the slowdown in global growth,
subdued infla�on data and higher input costs. US corporate earnings season concluded with no year on
year earnings growth. Trade rhetoric between the US and China has taken a sharper tone: President
Donald Trump indicated he was “nowhere near” making a deal, and his Vice President, Mike Pence,
alluded to being able to “more than double tariffs on China if needed”.
Infla�on remained rela�vely subdued; consumer prices rose 2.0% in April, up marginally from March’s
1.9%, driven largely by higher energy prices. The core infla�on rate, which excludes vola�le food and
energy prices, rose to 2.1%, from March’s 2.0%. Moving one month forward, infla�on eased a bit in May.
Headline infla�on declined from 2.0% to 1.8% in May, while core infla�on fell from 2.1% to 2.0%.
Forecast are that US GDP would be some 0.7% points lower in 2020. President Trump also announced
that Mexican goods would be subject to a 5% tariff, unless the flow of unauthorised migrants across the
border was addressed. Automakers were par�cularly hardhit, given the importance of crossborder
chains in the industry. Analysts es�mate that the price tag of a 5% tariff on USD 346 billion of Mexican
imports to the US could generate roughly USD 17 bn.
American Headlines S&P 500
Time Period: 2019/05/01 to 2019/05/31
2019/05
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
101.0
S&P 500 TR USD 93.6
NASDAQ
Time Period: 2019/05/01 to 2019/05/31
2019/05
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
101.0
NASDAQ Composite TR USD 92.2
DJ INDUSTRIAL AVE
Time Period: 2019/05/01 to 2019/05/31
2019/05
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
101.0
DJ Industrial Average TR USD 93.7
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
DJ Industrial Average TR USD
S&P 500 TR USD
NASDAQ Composite TR USD
6.32 3.66 1.70 4.05 14.45 10.88 7.54
6.35 0.67 0.74 3.78 11.72 9.66 10.74
7.79 0.77 2.25 1.23 15.90 13.22 12.85
American Indices
Asian Indices
European Indices
European equi�es gave up some of their yeartodate gains, amidst ongoing Brexit uncertainty, and
against the backdrop of key European Parliament elec�ons and a ratche�ng up of trade tension. The
STOXX All Europe closed 4.43% lower. The Italian bourse was the hardest hit, with the Milano Indice
Borsa giving up just over 9%. Investors reacted nega�vely to the Italian elec�on results, which saw a
victory for farright na�onalists. The German economy grew at a quarteronquarter rate of 0.4% during
Q1, up from the 0.0% during Q4 last year and be�er than Q3’s 0.2%. Q1 growth was driven by strong
machinery and construc�on investment, as well as private consump�on. Forecasts are for the German
economy to grow by 0.8% during 2019. The growth in Germany helped li� the economic growth rate over
the same period in the Eurozone bloc to 0.4% quarteronquarter, bringing the annual growth rate to
1.2%. The April reading of annual headline infla�on in the Eurozone came in at 1.7%, driven by increases
in energy, services and food, and alcohol and tobacco prices. The IHS Markit Eurozone Purchasing
Managers’ Index dipped to 47.7, declining for the fourth consecu�ve month and, cri�cally, giving a signal
of a broader economy in contrac�on. New export orders, perhaps unsurprisingly, given the trade�tfor
tat, dipped sharply. On the posi�ve side, consumers, though not op�mis�c, have tempered their nega�ve
view: The Consumer Confidence Index for the European Union has gone up by 1.1 points, reaching 6.2
points. German economic growth appears to be stable and forecasts for both the country and the
Eurozone show GDP growth of 0.4% for the first quarter. UK equi�es could not buck the trend, but
significantly outperformed Developed Market peers. The FTSE100 closed 2.87% lower. Bri�sh poli�cs
remained turbulent: having secured an extension of Ar�cle 50 un�l October 2019, beleaguered Prime
Minister Theresa May resigned, and was due to step down on 7 June. This has set the stage for a
leadership ba�le in the Conserva�ve Party and ul�mately for the posi�on of Prime Minister.
European Headlines FTSE 100
Time Period: 2019/05/01 to 2019/05/31
2019/0596.3
97.0
97.8
98.5
99.3
100.0
FTSE 100 TR GBP 97.1
DAX
Time Period: 2019/05/01 to 2019/05/31
2019/0594.0
95.0
96.0
97.0
98.0
99.0
100.0
101.0
FSE DAX TR EUR 95.0
CAC 40
Time Period: 2019/05/01 to 2019/05/31
2019/0592.0
94.0
96.0
98.0
100.0
102.0
Euronext Paris CAC 40 PR EUR 93.2
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
FTSE 100 TR GBP
FSE DAX TR EUR
Euronext Paris CAC 40 PR EUR
MSCI ACWI Ex USA NR USD
2.87 2.66 5.02 2.54 9.15 4.99 8.83
5.00 1.83 4.17 6.97 4.55 3.35 11.06
6.78 0.63 4.07 3.53 4.95 2.87 10.08
5.37 2.29 2.30 6.26 6.72 1.31 7.15
Asian Headlines
Global markets slumped, against a backdrop of tougher trade talk and rising geopoli�cal risks. The MSCI
World closed 5.77% in the red. Emerging markets underperformed developed peers, as the MSCI EM
closed 7.26% lower, led by substan�al losses in China (the MSCI China lost 13.09%). The monthly data
from China was disappoin�ng: industrial produc�on rose at an annual rate of 5.4%, below the 6.5%
expected rate, retail sales rose 7.2% versus the 8.6% expected and March’s rate of 8.7%, and fixed asset
investment rose 6.1% versus expecta�ons of a 6.4% rate of increase. Infla�on rose to a 15month high on
the back of higher pork prices as a result of the outbreak of African swine flu. Infla�on rose at an annual
rate of 2.7% in May, up from 2.5% the month before. Pork prices posted an annual increase of 18.0%
a�er more than 1m pigs were slaughtered.
Trade rhetoric between the US and China has taken a sharper tone: President Donald Trump indicated he
was “nowhere near” making a deal, and his Vice President, Mike Pence, alluded to being able to “more
than double tariffs on China if needed”. Simultaneously, China announced that it would be crea�ng an
“unreliable en��es list” that would have details of companies and individuals restricted from doing
business with Chinese firms. The country had also put in place a plan to stop exports of rare earth metals
to the US. Nearly 80% of the world’s rare earth metals are produced in China, and they form key
components of many products (especially in advanced electronics).
NIKKEI
Time Period: 2019/05/01 to 2019/05/31
2019/0592.0
94.0
96.0
98.0
100.0
102.0
Nikkei 225 Average TR JPY 92.6
HANG SENG
Time Period: 2019/05/01 to 2019/05/31
2019/0590.0
92.5
95.0
97.5
100.0
102.5
Hang Seng HSI TR HKD 91.6
SHANGAI
Time Period: 2019/05/01 to 2019/05/31
2019/0592.0
94.0
96.0
98.0
100.0
102.0
DJ Shanghai PR CNY 93.5
1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Nikkei 225 Average TR JPY
Hang Seng HSI TR HKD
DJ Shanghai PR CNY
5.13 1.45 4.50 2.76 10.47 9.65 8.91
8.33 4.13 4.49 7.04 13.46 7.30 8.07
7.74 3.76 12.12 4.16 0.46 8.94 16.31
May 2019 Page 3
Commodity Headlines
The overall GSCI commodity index closed lower, as energy prices saw a reversal in the previous
months’ trend. Commodity prices tumbled as investor concern grew about the slowing global
economy. The copper price fell 9.3% and the oil price slumped by nearly 14% during the month
on higher than expected US inventories, and heightened concerns around global growth.
Counterac�ng supply and demand factors will likely contribute to oilprice vola�lity in the
coming months. The upward pressure from �ghter supply, as OPEC cuts take effect, exports from
Iran and Venezuela leave the pool and geopoli�cal tension escalates in the Middle East, may yet
outpace the downward pressure of the lack of demand. Gold made modest gains, driven by
safehaven demand. Pla�num Group Metals closed lower, with the pla�num price losing just
over 13% during the month.
Commodi�es
May 2019
President Donald Trump during May declared a na�onal emergency over threats against
American technology, the White House said.
The move, done via execu�ve order, authorized the Commerce Secretary Wilbur Ross, in
consulta�on with other top officials, to block transac�ons that involve informa�on or
communica�ons technology that “poses an unacceptable risk to the na�onal security of the
United States.”
Following the order, the U.S. Department of Commerce announced the addi�on of Huawei
Technologies and its affiliates to the Bureau of Industry and Security (BIS) En�ty List, making it
more difficult for the Chinese telecom giant to conduct business with U.S. companies.
The addi�on means that U.S. companies cannot sell or transfer technology to Huawei without a
license issued by the BIS. That could make it harder for Huawei to do business, as it depends on
some U.S. suppliers for parts.
President Donald Trump backed the decision, which will “prevent American technology from
being used by foreign owned en��es in ways that poten�ally undermine U.S. na�onal security
or foreign policy interests,” Commerce Secretary Wilbur Ross said in a statement.
In a statement to CNBC, Huawei said: “Restric�ng Huawei from doing business in the US will not
make the US more secure or stronger; instead, this will only serve to limit the US to inferior yet
more expensive alterna�ves, leaving the US lagging behind in 5G deployment, and eventually
harming the interests of US companies and consumers.”
The Chinese tech company also said: “We are ready and willing to engage with the US
government and come up with effec�ve measures to ensure product security.” The
announcement has been under discussion for a year. It comes as the U.S. and China remain
locked in a trade dispute and could escalate tensions between the world’s two largest
economies. The order had been opposed by small rural carriers, who con�nued to rely on
Huawei equipment even a�er it was largely dropped by the larger telecommunica�ons
companies.
Something Interes�ng
Time Period: 2019/05/01 to 2019/05/31
2019/05
87.5
90.0
92.5
95.0
97.5
100.0
102.5
S&P GSCI Gold TR 101.7 Oil Price Brent Crude PR 88.6
Currency Headlines
In currencies, the US dollar index showed a modest up�ck of 30 bps. Emerging markets were
broadly weaker, though performance was mixed. With the US introducing fresh tariffs on 10
May, the Chinese renminbi declined by 2.5% against the USD. Fresh restric�ons on the flow of
goods from Mexico, and the threat of more tariffs to come, saw the Mexican Peso dip by nearly
3%. The global bond market was firm, as investors changed their view that most central banks,
including the US Federal Reserve, would be pressurized into cu�ng interest rates rather than
hiking them. The Bloomberg Global Aggregate Bond index rose 1.4%, bringing its yeartodate
return to 3.3%. The South African Rand has remained vola�le, although the elec�on outcome
was regarded as posi�ve, and closed 1.15% lower against the USD. Sterling was one of the worst
performing developed market currencies, hamstrung by Bri�sh poli�cs.
Time Period: 2019/05/01 to 2019/05/31
2019/0514.2
14.4
14.6
14.8
Currency EUR 14.6
Time Period: 2019/05/01 to 2019/05/31
2019/05
16.3
16.5
16.7
16.9
17.1
17.3
Currency GBP 16.6
GBP/ZAR
Time Period: 2019/05/01 to 2019/05/31
2019/0513.5
13.7
13.9
14.1
14.3
Currency USD 13.9
USD/ZAR
Page 4
EUR/ZAR
Monthly Returns FTSE/JSE All share Monthly Returns FTSE/JSE SA Listed Property
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
2.81 3.41 1.56 4.23 4.84
0.10 1.97 4.18 5.37 3.48 2.78 0.25 2.34 4.17 5.76 3.17 4.25
4.31 3.11 2.68 3.64 0.42 3.49 7.03 2.65 0.87 6.26 1.46 0.34
2.99 0.59 6.44 1.70 1.84 3.02 1.16 0.26 0.93 2.49 0.55 0.97
3.08 4.07 1.33 4.70 3.95 0.76 0.52 3.55 0.95 7.61 3.86 1.72
2.36 4.88 1.83 2.65 1.60 2.77 0.93 0.46 2.58 1.01 0.54 0.19
8.53
20.95
2.63
5.13
10.88
7.09
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
9.18 5.70 1.46 3.17 0.87
9.91 9.90 0.96 7.68 5.92 3.45 0.50 2.15 2.60 1.69 1.29 1.06
1.63 0.36 0.11 0.51 0.11 0.29 3.70 0.76 1.19 1.99 1.92 4.21
2.98 3.65 9.48 1.95 3.47 1.17 3.26 4.89 1.09 0.50 3.34 4.24
7.38 3.16 2.64 0.04 5.93 0.36 5.14 0.22 0.82 2.08 0.50 6.12
7.13 4.66 4.76 2.32 1.26 3.37 1.91 2.96 2.18 6.84 2.83 1.11
25.26
17.15
10.20
7.99
26.64
3.76
Monthly Returns MSCI World (ZAR) Monthly Returns MSCI World (USD)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
0.47 8.79 3.86 2.77 4.48
1.32 4.76 1.77 6.37 1.58 7.64 1.55 12.73 2.99 3.47 4.72 3.57
1.27 0.25 3.77 1.37 0.70 0.18 3.51 1.11 5.89 6.91 1.66 7.79
3.58 1.41 0.08 2.16 11.05 7.45 1.26 6.50 5.97 3.62 4.82 0.40
1.03 5.77 2.36 1.54 1.64 2.60 4.85 2.08 0.47 7.69 3.58 5.52
2.37 0.82 1.65 1.08 2.64 2.41 0.49 1.44 2.79 1.54 1.67 2.71
5.26
12.23
4.81
30.78
15.05
10.39
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
7.90 2.67 1.26 3.38 5.93
5.64 4.20 2.14 0.95 0.12 0.54 3.02 0.79 0.44 7.49 1.46 7.04
2.73 2.81 1.22 1.56 2.21 0.45 2.79 0.38 1.93 2.08 1.94 1.61
6.03 0.69 7.41 1.48 0.13 0.61 4.31 0.34 0.61 1.70 0.76 2.16
1.56 5.57 1.55 2.90 0.13 2.35 0.87 6.86 3.62 7.85 0.83 1.80
4.00 4.83 0.44 0.95 2.13 1.88 1.21 2.21 3.24 0.70 1.67 1.93
9.41
23.97
7.86
2.36
4.16
9.08
Beassa ALBI SA CPI Synthe�c (Headline)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
2.90 0.44 1.33 0.75 0.64
1.86 3.93 2.07 0.70 1.95 1.17 2.42 1.87 0.30 1.71 3.87 0.64
1.36 0.71 0.40 1.42 1.03 0.95 1.50 1.03 1.11 2.30 0.97 5.66
4.57 0.72 2.63 1.85 1.47 4.04 2.19 1.72 2.98 0.64 1.83 1.54
6.47 2.77 0.51 0.49 0.76 0.15 1.04 0.14 0.07 1.30 1.02 6.67
3.24 2.44 1.79 0.32 1.14 0.97 1.02 2.80 1.57 3.41 2.36 1.51
7.69
10.24
15.42
3.93
10.15
5.26
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
0.18 0.18 0.82 0.82 0.63
0.48 0.29 0.76 0.38 0.75 0.19 0.37 0.84 0.09 0.46 0.46 0.18
0.40 0.60 1.09 0.59 0.10 0.29 0.19 0.29 0.10 0.48 0.29 0.10
0.32 0.75 1.38 0.73 0.83 0.21 0.51 0.82 0.10 0.20 0.51 0.30
0.22 0.11 0.56 1.45 0.88 0.22 0.44 1.09 0.00 0.00 0.21 0.11
0.24 0.71 1.06 1.40 0.46 0.11 0.34 0.80 0.34 0.00 0.22 0.00
5.18
4.62
6.64
4.71
5.81
1.92
STeFI FTSE/JSE Ind/Industrials
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
0.60 0.55 0.61 0.59 0.61
0.60 0.54 0.60 0.58 0.59 0.57 0.59 0.59 0.57 0.59 0.58 0.60
0.63 0.57 0.63 0.61 0.63 0.61 0.62 0.62 0.59 0.61 0.58 0.60
0.56 0.53 0.58 0.58 0.61 0.59 0.62 0.62 0.60 0.63 0.61 0.63
0.52 0.48 0.53 0.51 0.53 0.51 0.53 0.54 0.52 0.54 0.52 0.55
0.44 0.41 0.46 0.46 0.48 0.47 0.50 0.50 0.49 0.51 0.50 0.52
7.25
7.54
7.39
6.47
5.91
3.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
3.93 2.34 5.32 6.33 3.88
5.76 2.27 4.90 3.55 10.20 2.52 0.45 2.52 6.42 2.33 2.78 2.03
2.25 0.73 2.12 2.82 0.04 3.73 1.91 4.57 2.37 3.64 4.13 7.15
1.79 2.02 7.84 1.98 0.03 2.96 5.68 2.08 1.22 0.03 0.83 6.12
3.14 0.63 1.70 0.53 4.46 0.13 0.31 0.69 2.07 6.81 5.03 5.62
6.73 0.34 5.55 4.26 1.55 0.13 1.35 1.08 4.19 5.40 1.16 0.17
15.56
14.73
21.55
10.07
6.99
1.77
FTSE/JSE Financial 15 FTSE/JSE SA Resources
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
6.75 2.06 4.78 7.61 1.91
2.31 5.11 3.66 3.01 6.71 2.84 6.56 0.26 1.96 4.07 2.59 1.24
0.99 0.10 0.87 4.09 1.63 2.07 5.58 2.93 2.38 2.58 5.89 9.77
3.45 2.87 12.41 1.26 2.18 2.80 2.85 2.88 1.52 1.37 1.34 3.23
4.57 3.39 2.26 4.93 6.76 0.54 3.46 4.04 2.19 7.31 3.96 6.13
7.13 8.38 6.38 3.84 1.94 2.70 0.56 0.70 1.75 6.98 2.98 0.18
4.09
24.38
3.55
1.06
27.83
5.10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019
2018
2017
2016
2015
2014
3.25 9.06 4.66 2.05 5.09
3.18 4.82 2.08 8.55 4.01 5.96 1.40 5.59 1.05 3.96 11.50 12.33
10.74 9.91 2.91 0.01 4.11 3.08 13.32 5.10 1.07 7.06 1.60 0.45
2.72 15.57 5.08 13.45 3.81 2.47 4.33 0.85 4.48 3.41 6.11 3.60
1.16 8.38 8.94 7.96 5.19 7.07 8.45 0.38 9.96 5.93 20.66 3.87
5.92 4.44 0.05 3.97 4.32 3.45 4.75 5.44 6.26 9.90 6.06 4.66
15.55
17.90
34.24
36.99
14.74
9.56
Page 5May 2019
Cau�ous Mul�-Managed Por�olioThe Fairtree Cau�ous Mul� Managed Por�olio was up 1.24% for the month of May. The main detractor being the local equity market being down 4.84%. The Fairtree Global Real Estate Prescient fund contributed nicely and
ended the month up +2.87%. The Fairtree Worldwide Mul� Strategy Flexible Prescient fund being the core of the por�olio saw some detrac�on over the last month, but s�ll managed to protect on the total market pull back.
The por�olio has a large holding in local bonds at 37.67% with local equi�es coming in second at 17.75%. We also rebalanced the por�olio during the month, we increased the core of the por�olio, with the introduc�on of the
Fairtree Albi Plus Prescient fund. The core of the por�olio being Fairtree Worldwide Mul� Strategy Flexible fund, saw some downside protec�on form market pullback, ending the month down 2.66%.
High Yield IncomeThe diversified skills of the different asset managers and house views has served the por�olio well thus far. As the income por�olios are a game of small margins and less vola�lity, every few basis points really does make a
difference. The last month the por�olio was up by +0.57% and stands at +4.29% for the year. The biggest contributors for the month was the Stanlib Income fund and the Corona�on Strategic Income funds, up +0.71% and
+0.52% respec�vely. All Bond Index was up +0.64% for the month and Stands at +5.26% for the year to date. The por�olio is �cking along nicely and has been delivering, as it out performed for any rolling 12 month period.
Commentary
Fairtree Stable Por�ollio (PPS)
May 2019
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
Page 6
Fairtree High Yield Income (Investec & Glacier) Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib, Glacier,
Momentum & PPS)
Time Period: 2017/06/01 to 2019/05/31
1 2 3 4 5 6
1.00
0.86 1.00
0.78 0.94 1.00
0.78 0.95 0.95 1.00
0.89 0.96 0.96 0.96 1.00
0.07 0.16 0.14 0.24 0.09 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib, Glacier, Momentum & PPS)
3 Fairtree Stable Por�olio (PPS)
4 Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
5 (ASISA) South African MA Low Equity
6 Fairtree High Yield Income Por�olio
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Cau�ous Mul�Managed Por�olio (Investec, Stanlib, Glacier, Momentum & PPS)
Fairtree Stable Por�olio (PPS)
Fairtree Cau�ous Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Low Equity
Fairtree High Yield Income Por�olio
1.24 1.57 6.62 9.29 6.15 8.09 6.10
1.02 1.98 7.19 10.56 6.32 8.14 6.70
2.05 0.43 3.22 4.81 4.84 7.39 4.06
1.12 1.51 5.04 5.76 4.47 5.96 4.55
0.57 2.16 5.17 8.89 9.25 8.99 4.29
Trailing Returns
REGULATION 28 SOLUTIONS: CAUTIOUS PORTFOLIOS
Time Period: 2017/06/01 to 2019/05/31
1 2 3 4 5 6
1.00
0.91 1.00
0.87 0.96 1.00
0.88 0.97 0.95 1.00
0.86 0.95 0.94 0.89 1.00
0.91 0.97 0.96 0.92 0.99 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib, Glacier, Momentum & PPS)
3 Fairtree Moderate Por�olio (PPS)
4 Fairtree Smart Beta Balanced Por�olio (Investec)
5 Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
6 (ASISA) South African MA Medium Equity
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib, Glacier, Momentum & PPS)
Fairtree Moderate Por�olio (PPS)
Fairtree Smart Beta Balanced Por�olio (Investec)
Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA Medium Equity
2.27 0.72 6.97 8.25 5.47 7.84 6.14
2.19 1.22 7.86 9.57 7.04 8.57 6.77
1.66 1.55 7.61 8.97 6.74 9.44 6.80
3.67 0.32 3.83 2.77 2.68 6.27 4.22
2.27 1.11 5.62 4.74 3.15 5.14 5.14
Trailing Returns
Balanced Mul�-Managed Por�olioThe Fairtree Balanced Mul� Managed Por�olio ended the month of May down 2.27%. The por�olio was rebalanced during May and saw the introduc�on of the Fairtree Albi Plus Prescient fund as a
new alloca�on. With this, we up weighted the core of the por�olio being the Fairtree Worldwide Mul� Strategy Flexible Prescient fund. This allows for diversifica�on within the core at a greater
weigh�ng. With this there has been a slight increase in our local equity exposure by around 3.5% and a decrease in our offshore equity by around 4%. Our offshore property saw a slight increase, with
local property coming down slightly. The local equity market struggled and ended the month down 4.84%, with the (ASISA) South African MA Medium Equity category being down 2.27%. The best
performing fund during May was the Fairtree Global Real Estate Prescient fund at +2.87%.
Smart Beta Balanced The Fairtree Smart Beta Balanced Por�olio was down 1.66% for the month of the month of May. The local market in the All Share Index was down 4.84% for the past month. The driver for local equity
returns, the Fairtree Smart Beta Prescient fund gave back 3.33% during the month of May. With the por�olio’s current total equity alloca�on being at 53.49%, of which 20.73% is offshore, we feel
comfortable with the por�olio’s return. The por�olio with the factor based investment philosophy being the main driver has done excep�onally well over the recent past and we are comfortable with
the philosophy going forward. The por�olio has served well in capital protec�on and with limited risk taken to generate the current performance. Against peer group and even the local market the
por�olio is doing more than it should.
Commentary
Fairtree Smart Beta Balanced Por�olio (Investec) Fairtree Balanced Mul�Managed Por�olio (Investec, Stanlib, Glacier,
Momentum & PPS)
Fairtree Moderate Por�olio (PPS) Fairtree Balanced Mul�Managed Por�olio (Allan Gray)
May 2019 Page 7
REGULATION 28 SOLUTIONS: BALANCED PORTFOLIOS
Time Period: 2017/06/01 to 2019/05/31
1 2 3 4 5 6
1.00
0.93 1.00
0.91 0.96 1.00
0.89 0.94 0.88 1.00
0.86 0.94 0.96 0.82 1.00
0.93 0.96 0.98 0.88 0.98 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib, Glacier, Momentum & PPS)
3 Fairtree Balanced Por�olio (PPS)
4 Fairtree Smart Beta Growth (Investec)
5 Fairtree Growth Mul�Managed Por�olio (Allan Gray)
6 (ASISA) South African MA High Equity
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Growth Mul�Managed Por�olio (Momentum)
Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib & Glacier)
Fairtree Balanced Por�olio (PPS)
Fairtree Smart Beta Growth (Investec)
Fairtree Growth Mul�Managed Por�olio (Allan Gray)
(ASISA) South African MA High Equity
3.57 0.45 7.62 7.48 5.05 7.26 6.14
2.86 0.35 7.96 8.23 4.98 7.53 6.51
3.00 0.06 8.50 8.55 6.44 10.04 6.17
2.42 1.18 8.44 8.03 6.24 9.65 7.02
4.26 0.84 3.55 1.77 1.78 5.76 4.06
3.25 0.57 5.56 3.45 2.45 4.81 5.01
Trailing Returns
Growth Mul�-Managed Por�olioThe Fairtree Growth Mul�Managed Por�olio was down 2.86% for the month of May. The por�olio stands at +6.51% for the year. We rebalanced the por�olio, up weigh�ng the Fairtree Select Equity
Prescient fund, allowing us to benefit from a concentrated stock view in the local equity market. We also up weighted the Fairtree Flexible Income Plus Prescient fund, to make sure we comply with
regula�on 28. In this we saw a slight decrease in our offshore equity exposure and a slight increase in our local bond exposure. The por�olio has stood its ground during the last few months and has
managed to keep tact with the local equity market at a lot less vola�lity. The core of the por�olio being the well diversified Fairtree Worldwide Mul� Strategy Flexible Prescient fund was down 2.66%
for the month of May.
Smart Beta GrowthThe Fairtree Smart Beta Growth Por�olio was down 2.42% for the month of May. The local equity through the All Share Index gave you 4.84% for the past month while the local equity exposure
through the Fairtree Smart Beta Prescient Fund gave you 3.33%. The por�olio has a current equity holding of 70.37% with 20.73% of that being offshore. The factor based investment style through the
Smart Beta funds, has served the por�olio well in naviga�ng a very low return profile the past year or three. The factor based philosophy works well in capital protec�on and reasonable par�cipa�on in
market upside. Against its peer groups the por�olio has performed significantly, with a strong outperformance over any period. With much s�ll on its way for the year locally we are slightly op�mis�c
about the poten�al outcome.
Commentary
Fairtree Smart Beta Growth Por�olio (Investec) Fairtree Growth Mul�Managed Por�olio (Investec, Stanlib, Glacier,
Momentum & PPS)
Fairtree Balanced Por�olio (PPS)
May 2019
Fairtree Growth Mul�Managed Por�olio (Allan Gray)
Page 8
REGULATION 28 SOLUTIONS: GROWTH PORTFOLIOS
Time Period: 2017/06/01 to 2019/05/31
1 2 3 4
1.00
0.86 1.00
0.82 0.96 1.00
0.88 0.94 0.88 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree High Growth Mul�Managed Por�olio (Momentum & Glacier)
3 Fairtree High Growth Por�olio (PPS)
4 Fairtree Tax Free Savings Mul�Managed Por�olio (Investec)
Posi�vely Correlated Nega�vely Correlated
Correla�on Matrix
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree High Growth Mul�Managed Por�olio (Momentum & Glacier)
Fairtree High Growth Por�olio (PPS)
Fairtree Tax Free Savings Mul�Managed Por�olio (Investec)
FTSE/JSE All Share TR ZAR
3.09 0.63 7.81 7.01 4.94 8.66 7.53
3.27 0.55 7.93 7.18 3.61 7.62 7.61
2.90 1.21 9.32 8.64 4.48 7.58 8.20
4.84 0.73 11.64 2.43 4.17 5.44 7.09
Trailing Returns
Commentary
High Growth
The Fairtree High Growth Wrap Por�olio was up 3.09 % for the month of May. The local equity market struggled somewhat and gave back 4.84% for the month of May. The
por�olio has been up weighted on the equity side, both local and offshore. The current equity exposure stands at 72.95%, with 34.99% being offshore. Looking at the year ahead we
are happy with the start and current market sen�ment, from many asset management houses. The combina�on of both ac�ve and factor based equity management has served the
por�olio well and we hope that it con�nues to do what it should. The por�olio is managed for long term growth and therefore we will always look to have an overweight equity
exposure.
TFSA
The Fairtree Tax Free Savings Mul� Managed Por�olio was down 2.90% for the month of May. The Fairtree Smart Beta Prescient Fund gave you 3.33% for the month of May, with
the local equity market giving you 4.84%. The factor based investment philosophy has worked excep�onally well in the beginning stages of this this year and has outperformed the
market. The view in the future will always be an overweight offshore alloca�on to growth assets, mainly through foreign equi�es and foreign proper�es. The current largest asset
class holding is local equi�es at 54.04%. The por�olio has a strong alloca�on to growth asset classes in terms of equi�es and proper�es both local and offshore. The por�olio has
kept track with the recent bounce back of the local equity market and sits at +11.43% for the year to date.
Fairtree High Growth Por�olio (PPS) Fairtree High Growth MM Por�olio (Mom Glacier & Investec) Fairtree TaxFree Savings MM Por�olio (Investec)
May 2019 Page 9
NONREGULATION 28 SOLUTIONS: HIGH GROWTH PORTFOLIOS
The FTSE/JSE All Share Index (ALSI) decreased by 4.8% during May. FTSE/JSE Shareholder Weighted Index (SWIX) decreased by 5.6% and FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX)
decreased by 4.8%. The Rand weakened by 1.9% during the month. Financials, Industrials and Resources decreased by 2.3%, 6.1% and 5.2% respec�vely.
Locally, hard economic data remained very weak. The Q1 GDP print came in at 3,2% and together with infla�on running well below expecta�ons the nominal growth rate has slowed to 4.1% year on
year. The risk of a ra�ngs downgrade by Moody’s over the next 12 months have increased along with the weaker growth outlook for 2019 (now around 0,5%) and weaker debt metrics. We believe the
SARB will respond by cu�ng interest rates by at least 25bps over its next two mee�ngs. Infla�on expecta�ons have fallen and should soon run below 5%. Concerns around Eskom and credit risk
con�nue to weigh on long end bonds and has caused the yield curve to steepen. We expect to soon hear about a turnaround plan for Eskom. We expect growth to remain weak over the near term but
improve towards year end.
Global growth has slowed from 2018 levels. Geopoli�cal uncertainty, Brexit and increased Trade tariffs are weighing on manufacturing output globally. The US Fed is now expected to cut rates during
2019. Although we are not expec�ng a sharp slowdown in global growth or an imminent recession, the risks of this happening has increased since the start of the year. Longer term we expect infla�on
pressures to increase with �ght labour markets in Developed Markets and China shu�ng down pollu�ng and uneconomic manufacturing capacity.
The RMB por�olios have benefited from a hedge fund and long only diversifica�on. The last month the hedge funds managed to protect capital and deliver alterna�ve returns to that of the market
with the Fairtree Wild Fig Mul� Strategy SNN QIHF up +0.22% and the Fairtree Woodland Mul� Strategy SNN QIHF up +0.13%.
The long only funds that form part of most of the por�olios also delivered be�er than the market returns. One of our core funds the Fairtree Worldwide Mul� Strategy Flexible Prescient fund was down
2.66%. Our hedge fund driven solu�ons were rela�vely flat the past month with the long only driven solu�ons keeping heads above the loss of the market. We are almost at the halfway mark for 2019
and we hope to see some posi�ve sen�ment coming through the market which can relate into some upside in performance for investors.
Commentary
Correla�on Matrix
Time Period: 2017/06/01 to 2019/05/31
1 2 3 4 5 6 7 8 9 10 11 12 13
1.00
0.73 1.00
0.40 0.66 1.00
0.57 0.88 0.80 1.00
0.88 0.83 0.72 0.74 1.00
0.57 0.85 0.30 0.59 0.58 1.00
0.66 0.90 0.85 0.95 0.84 0.57 1.00
0.92 0.80 0.47 0.65 0.93 0.62 0.75 1.00
0.64 0.85 0.85 0.91 0.85 0.55 0.96 0.74 1.00
0.58 0.82 0.94 0.90 0.82 0.48 0.96 0.65 0.95 1.00
0.87 0.91 0.43 0.68 0.86 0.87 0.73 0.92 0.72 0.63 1.00
0.81 0.92 0.41 0.69 0.81 0.92 0.72 0.87 0.70 0.62 0.99 1.00
0.88 0.90 0.44 0.68 0.89 0.84 0.74 0.94 0.72 0.63 1.00 0.98 1.00
1 FTSE/JSE All Share TR ZAR
2 Fairtree Balanced Mul� Manager
3 Fairtree Capital Guarantee
4 Fairtree Cau�ous Mul� Manager
5 Fairtree Equity Index + Alpha
6 Fairtree Global
7 Fairtree Growth Mul� Manager
8 Fairtree Select Equity
9 Fairtree Empress Por�olio
10 Fairtree Juniper Por�olio
11 Fairtree LongOnly High Net Worth Growth
12 Fairtree Worldwide Equity
13 Fairtree Select Balanced Por�olio
Posi�vely Correlated Nega�vely Correlated
Fairtree Cau�ous Mul� Manager Fairtree Balanced Mul� Manager
Wrap / House View 1 M 3 M 6 M 1 Y 3 Y 5 Y YTD
Fairtree Balanced Mul� Manager
Fairtree Capital Guarantee
Fairtree Cau�ous Mul� Manager
Fairtree Equity Index + Alpha
Fairtree Global
Fairtree Growth Mul� Manager
Fairtree Select Equity
Fairtree Empress Por�olio
Fairtree Juniper Por�olio
Fairtree LongOnly High Net Worth Growth
Fairtree Worldwide Equity
Fairtree Select Balanced Por�olio
3.87 1.48 13.36 11.02 3.12 4.79 6.94
3.16 1.36 7.97 12.71 3.40 12.35 11.85
0.47 1.39 5.77 14.09 6.30 7.65 4.24
1.03 0.51 5.85 13.43 5.16 8.41 5.08
3.61 1.19 13.24 10.44 7.47 10.78 7.05
0.04 3.44 9.70 17.95 5.85 5.44
3.30 0.05 10.16 9.29 5.38 10.27 8.31
0.08 0.78 8.11 16.88 6.82 6.05
2.51 0.41 9.52 10.42 6.84 10.56 7.29
0.83 0.76 6.17 15.37 7.50 8.06 4.61
3.72 0.27 10.01 11.62 5.59 11.79 9.06
0.46 2.38 8.57 19.44 4.38 7.17 6.06
Trailing Returns
May 2019 Page 10
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE
Fairtree Global Por�olio
Fairtree Equity Index plus Alpha
Fairtree Empress
Fairtree Capital Guarantee
Fairtree Long Only High Net Worth
May 2019
Fairtree Juniper
Page 11
Fairtree Worldwide Equity
Fairtree Select Balanced
NONREGULATION 28 SOLUTIONS: RMB NOTE STRUCTURE con�nued
Fairtree Select EquityFairtree Growth Mul� Manager
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