SIM is a philosophically

grounded, multi-specialist,

multi-product house, with one

investment platform that

leverages off the Sanlam leverages off the Sanlam

book and brand.

SanIam Investments Cluster

Capital

Mgt

Investment

Services

Employee

Benefits

Asset

Mgt

Wealth

Mgt

Interna-

tional

SCM

SPE

SMMI

SCI

GR

SUS

SIM

GenX

SPI

Calibre

SIIP

SIM-Global

Mark

Murning

Robert

Roux

Armien

Tyer

Daniel

Kriel

Robert

Roux

Nersan

Naidoo

SPE

Property

Dev.

SSS D

SCI

Simeka

Blue Ink

Octane

SUS

SSS

-EB

Coris

GenX

Africa

Calibre SIM-Global

SAMI

India

Distribution Support

Support: HR | Legal | Finance | Marketing | IT | Distribution Support

4

SIM’s business model has evolved……

Divisionin Life

company

Asset Managementby InvestmentBank (Gensec)

Integrated Insurancebased Asset Manager

(inc. Private Equity

Property etc.)

Multi specialistAsset Manager

Sanlam Investments has provided asset management services to third parties since 1969

company Bank (Gensec)Property etc.)

13yrs

ago(Jan 1997)

12yrs

ago(Jan 1998)

9yrs

ago(Apr 2001)

Today

Pragmatic value investment philosophy

Understanding the value of a business

Aggressivehigh risk

Significant valueattributed to future growth

Conservativelow risk

● Historic info & facts● Book value

Div yield, Low PE

● Future earningspotential

True BenjaminGraham students

AReplacement

value

BContinuing

value

CGrowth

� A belief in long term reversions to the mean

- market ratings (PE)

- growth rates

Superior returns are generated through:

4 tenets of Pragmatic Value Investing

� Value securities with respect to realistic expectations

� Place less emphasis on forecasts and more on fact and track record

� Hold investments for the long term

Multi-Specialist Teams

Chris Hamman

Fixed Income ILB’s

André Roux

AssetLiability

Solutions

Money Market

ActiveIncome

BondPortfolios

Gert Steenkamp

Kashiefa Waggie

Charl Smith

Philip Liebenberg Hansie Myburgh

Erich Maritz

Ntebogeng Mahlare

Chris Hamman

Henriqueco Visser

Ntebogeng Mahlare

Erica Nell

Andre du Toit

Stephen Vlok

Avishal Khusial

Credit

10

Size

SIM can take meaningful stakes in companies

� Influence company boards and management

- unlock value

- encourage good corporate governance

� Fluid access to management teams

� Management teams generally willing to engage

11

Size

Employ a large team of investment professionals

� Very detailed and comprehensive proprietary research

- Dedicated asset allocation research team

- Dedicated small cap research team

� Team members can become specialists

SIM Balanced

Benchmark: Median Morningstar

AA Prudential Variable Equity

SIM Low Equity

Benchmark: Peer

Group Average

Pote

ntial R

etu

rn (

%)

sim.multi-asset class funds

Group Average

SIM Inflation Plus

Benchmark: CPI+4%

over a rolling 3 year

period

Pote

ntial R

etu

rn (

%)

Risk (vol. %)

How

Outlook | Assumptions for Long-term returns: SA - Real

3.0%

6.0%

7.0%

3.0%

4.0%

Bond returns

Property premium

Property returns

Equity Risk premium

Equity returns

2.0%

2.5%

3.0%

0.5%

0.5%

0% 1% 2% 3% 4% 5% 6% 7%

Cash returns

Term premium

ILB returns

Inflation Risk premium

Bond returns

Source : SIM

CPI+5% (Domestic)

Domestic AllocationLong term real

returnWeighted average

Equity 30 7.0 2.1

Property 5 6.0 0.3

Bonds 10 3.0 0.3

Outlook | What could you expect given these RETURN assumptions

Source : SIM

Bonds 10 3.0 0.3

ILB’s 20 2.5 0.5

Cash 35 2.0 0.7

Alpha 1.0

Total 100% 4.9%

Outlook | Risk takers have been compensated …over the very long run

9

8

7

6

5

4

3

2

1900 – 2003, annual real return %

Equities

Bonds

Bills

Source: Siegel, FAJ 2005

Belg

ium

Italy

Germ

any

Fra

nce

Spain

Japan

Sw

itzerland

Irela

nd

Denm

ark

Neth

erlands

United K

ingdom

Canada

United S

tate

s

Austr

alia

Sw

eden

South

Afr

ica

-4

1

0

-1

-2

-3

Asset allocation Overweight Underweight Neutral

GlobalEquity

Property

Bonds

Cash

Outlook | SIM’s current positioning

GlobalProperty Cash

Domestic Inflation Linked Bonds Cash

Nominal Bonds

Equity

Property

1 March 2011

Outlook | SA Equities – NEUTRAL: Price to Intrinsic Value

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2.0 INDI25 FINI15 RESI SWIX

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

Ja

n 0

7

Ma

r 0

7

Ma

y 0

7

Ju

l 07

Se

p 0

7

No

v 0

7

Ja

n 0

8

Ma

r 0

8

Ma

y 0

8

Ju

l 08

Se

p 0

8

No

v 0

8

Ja

n 0

9

Ma

r 0

9

Ma

y 0

9

Ju

l 09

Se

p 0

9

No

v 0

9

Ja

n 1

0

Ma

r 1

0

Ma

y 1

0

Ju

l 10

Se

p 1

0

No

v 1

0

Ja

n 1

1

Ma

r 11

Source: SIM, 4 March 2011

8

9

10

11

12

Outlook | SA long bonds - NEUTRAL

SA 10YGovernment Bond

4

5

6

7

Jan 0

7

Mar

07

May 0

7

Jul 07

Sep 0

7

Nov 0

7

Jan 0

8

Mar

08

May 0

8

Jul 08

Sep 0

8

Nov 0

8

Jan 0

9

Mar

09

May 0

9

Jul 09

Sep 0

9

Nov 0

9

Jan 1

0

Mar

10

May 1

0

Jul 10

Sep 1

0

Nov 1

0

Jan 1

1

Source : I-Net

Prospective real returnassuming 5.25% inflation 3%

3.0

3.5

4.0

4.5

5.0

5.5

6.0

USA Europe Japan

Outlook | Offshore Equities – OVERWEIGHT: Price to Book

0.0

0.5

1.0

1.5

2.0

2.5

3.0

74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

Source: Citigroup

Outlook | Yields on global assets

6

8

10

12

Global

10yr ILB 10yr bond MSCI World DY Property DY

Source: Bloomberg

0

2

4

6

04 05 06 07 08 09 10 11

Outlook | Global Property – OVERWEIGHT: Local Currencies

250

300

350

400

450

500

Japan

SA

Source: Bloomberg | 7 March 2011

0

50

100

150

200

00 01 02 03 04 05 06 07 08 09 10 11

Europe ex UK

GlobalAsiaUK

US

Outlook | Active Asset Allocation

0%

2.0%

0%

1.5%

1.0%

0%

1%

2%

3%

4%

5%

Ac

tive

be

t

09 Jan'09 06 Feb'09 02 Mar'09 06 Mar'09 15 May'09 05 Jun'09 02 Jul'0908 Sep'09 12 Oct'09 15 Dec'09 09 Mar'10 20 Apr'10 07 May'10 25 May'1013 Jul'10 30 Jul'10 17 Aug'10 25 Aug'10 8/19 Oct'10 14 Dec'10

0%

0%

0%

-2.0%

-2.0%

-0.5%

-5%

-4%

-3%

-2%

-1%

0%

LocalEquities

LocalBonds

LocalILB's

LocalProperty

LocalCash

ForeignEquity

ForeignBonds

ForeignProperty

ForeignCash

Ac

tive

be

t

Source: SIM

SIM Balanced

Benchmark: Median Morningstar

AA Prudential Variable Equity

SIM Low Equity

Benchmark: Peer

Group Average

Pote

ntial R

etu

rn (

%)

sim.multi-asset class funds

Group Average

SIM Inflation Plus

Benchmark: CPI+4%

over a rolling 3 year

period

Pote

ntial R

etu

rn (

%)

Risk (vol. %)

Pote

ntial R

etu

rn (

%)

sim.multi-asset class funds

SIM Inflation Plus

Disciplined focus on downside risk

High risk-adjusted returns – low volatility

SIM Inflation Plus

Benchmark: CPI+4%

over a rolling 3 year

period

Pote

ntial R

etu

rn (

%)

Risk (vol. %)

Equity component constructed from houseview

SWIX portfolio

Derivatives used to hedge exposure tactically.

SIM Low Equity

Benchmark: Peer

Group Average

Pote

ntial R

etu

rn (

%)

sim.multi-asset class funds

SIM Low Equity

Actively managed

Min 60% in high income yielding

instrumentsGroup Average

Pote

ntial R

etu

rn (

%)

Risk (vol. %)

Stable, low equity balanced fund

Max 40% equities – stock picking

Derivatives used to hedge exposure

tactically

SIM Balanced

Benchmark: Median Morningstar

AA Prudential Variable Equity

Pote

ntial R

etu

rn (

%)

sim.multi-asset class funds

SIM Balanced

Grow capital steadily

Pote

ntial R

etu

rn (

%)

Risk (vol. %)

Grow capital steadily

Long term strategic asset allocation

Specific stock picking equity component

Downside protection | Monthly performance to February 2011

-2%

0%

2%

4%

6%

8%SIM Balanced Fund -A SIM Inflation Plus Fund

Source: MoneyMate

-10%

-8%

-6%

-4%

-2%

Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11

Downside protection | Monthly performance to February 2011

-2%

0%

2%

4%

6%

8%SIM Balanced Fund -A SIM Inflation Plus Fund SIM Low Equity Fund - A1

Source: MoneyMate

-10%

-8%

-6%

-4%

-2%

Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11

SIM Balanced | February 2011

12.1%

15.9%

23.8%

11.3%

17.4%

15%

20%

25%

SIM Balanced Fund - A Asset Alloc Prud Var Eq

Source: MoneyMate

3.9%

12.1%

7.1%

2.7%

9.0%

11.3%

6.1%

0%

5%

10%

3 Months 6 Months 1 Year 2 Years 3 Years

SIM Inflation Plus | February 2011

10.0%

11.9%

7.0%

7.9%

8.8%

10.4%

8%

10%

12%

14%

SIM Inflation Plus Fund CPI+4%

Source: MoneyMate

2.5%

6.1%

2.4%

3.9%

0%

2%

4%

6%

3 Months 6 Months 1 Year 2 Years 3 Years

SIM Low Equity peers

� SIM Low Equity Fund

� Stanlib Balanced Cautious Fund

� Old Mutual Stable Growth Fund

� Coronation Balanced Defensive Fund

� Nedgroup Investment Stable Fund

� RMB Conservative Fund

� Allan Gray Stable Fund

� Investec Cautious Managed Fund

SIM Low Equity | Performance since inception (July 2010)

Performance Rank

SIM Low Equity Fund - A1 11.0% 1

Fund 1 10.5% 2

Fund 2 9.6% 3

Fund 3 9.4% 4

Fund 4 8.9% 5

Source: MoneyMate

Fund 4 8.9% 5

Fund 5 6.6% 6

Fund 6 3.8% 7

Fund 7 2.9% 8

Asset Alloc Prud Low Eq 7.7%NAV to NAV – Local Currency

From: 30 Jun 2010 to 28 Feb 2011

Income Reinvested on payment date

SIM Low Equity (since inception)

8%

10%

12%

14%

Fund 1 Fund 2 Fund 3Fund 4 Fund 5 Fund 6Fund 7 Fund 8 SIM Low Equity Fund

Source: MoneyMate

-2%

0%

2%

4%

6%

July Aug Sep Oct Nov Dec 2011 Jan Feb

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