JUNE 2018 OLD MUTUAL FLEXIBLE FUND

1 THIS IS THE MINIMUM DISCLOSURE DOCUMENT AS REQUIRED BY BOARD NOTICE 92 JUNE 2018. OLD MUTUAL FLEXIBLE fund . fund INFORMATION fund PERFORMANCE as at 30/06/2018. RISK PROFILE % PERFORMANCE (ANNUALISED). Since Low to Moderate to 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr Inception1. Low Moderate High Moderate High fund (Class R) fund (Class A)2 - RECOMMENDED MINIMUM INVESTMENT TERM fund (Class B1)3 - - - 1 year+ 3 years+ 5 years+ Benchmark* * The CPI figures are lagged by one month as the number was calculated before this month's inflation rate was released.

2 1. Performance since inception of the fund . 2. Inception: 30 June 2007. fund OBJECTIVE 3 Inception: 31 October 2012. Class B1 fund is only available through investment platforms such as The fund aims to deliver long-term equity-like returns, but at lower levels of Old MUTUAL Wealth. Performance measurements over periods shorter than the recommended investment term may not be volatility than equity. The fund will predominantly invest in shares, but the portfolio appropriate. Past performance is no indication of future performance.

3 fund returns are net of fees and measured against the benchmark. manager can invest in less risky asset classes when they offer better value. WHO IS THIS fund FOR? Rolling 12-Month Return Highest Average Lowest This fund is suited to investors who want high long-term capital growth, but also fund (Since Inception) want some protection against short-term fluctuations of the equity market. The fund is suitable for long-term savings outside a retirement fund . Performance Since Inception INVESTMENT MANDATE 1 600.

4 fund There are no restrictions on the asset holdings of this fund , except that a maximum Indexed to 100 on 31 Aug 1996 1 400 CPI + 5%. of 30% of its portfolio (with an additional 10% for African ex-SA investments) may 1 200 CPI. be invested offshore. The fund invests in money markets, bonds, property and 1 000. shares. Derivatives may be used for efficient portfolio management purposes. 800. 600. REGULATION 28 COMPLIANCE. 400. The fund aims to achieve long-term inflation-beating growth, and therefore may 200.

5 Hold a higher allocation to equities than what is allowed in terms of Regulation 0. 28 of the Pension Funds Act. This fund is therefore not Regulation 28 compliant. Aug 96 Nov 03 Feb 11 May 18. Past performance is no indication of future performance. BENCHMARK: CPI. PERFORMANCE TARGET: CPI + 5% to 7% (net of fees) Risk Statistics (Since Inception). Performance is targeted over the recommended minimum investment term Maximum Drawdown and is not guaranteed. Months to Recover 73. RISK OBJECTIVE: Lower volatility than the equity market.

6 % Positive Months Annual Standard Deviation ASISA CATEGORY: South African Multi-Asset FLEXIBLE fund MANAGER(S): Peter Brooke & Arthur Karas 5-Year Annualised Rolling Returns ( fund vs Benchmark/Performance Target). (Old MUTUAL Investment Group MacroSolutions). 30%. LAUNCH DATE: 20/08/1996 fund Indexed to 100 on 31 Dec 1996. 25% CPI + 5%. SIZE OF fund : CPI. 20%. DISTRIBUTIONS: (Half-yearly)*. Date Dividend Interest Total Total % 15%. 30/06/2018 10%. 31/12/2017 5%. * Class A fund distributions 0%. Jun 08 Jun 10 Jun 12 Jun 14 Jun 16 Jun 18.

7 fund COMPOSITION. ASSET & PERCENTAGE ALLOCATION PRINCIPAL HOLDINGS. SA Equities HOLDING % OF fund . International Naspers Ltd Equities Sasol Ltd SA Property Old MUTUAL Ltd Nominal Bonds British American Tobacco Glencore Plc SA Cash Barclays Africa Group Ltd Preference Shares MTN Group Ltd Africa Property Nedbank Group Ltd Anglo American Plc International Cash Capitec Funds are also available via Old MUTUAL Wealth and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet Email OLD MUTUAL FLEXIBLE fund .

8 fund MANAGER INFORMATION. PETER BROOKE. PORTFOLIO MANAGER. ARTHUR KARAS. Head of MacroSolutions PORTFOLIO MANAGER. BBusSc Finance (Hons) BCom, CFA. 23 years of investment experience 27 years of investment experience fund COMMENTARY as at 30/06/2018. The performance of investment markets during the declining. It was essentially the strong performance of African equity holdings are sufficiently cheap that we second quarter of 2018 was all related to the US rand hedges Naspers, Sasol and the diversified miners are unconcerned about short-term underperformance.

9 Federal Reserve (the Fed), the dollar and Trump's trade that brought the FTSE/JSE Capped SWIX Index return Diversification across global equity and local interest- wars. Better growth in the US than in other parts of the back up to being close to flat. bearing investments is providing a hedge against world pointed to the Fed being likely to continue their domestic equity volatility. One of the fund 's largest The Old MUTUAL FLEXIBLE fund lagged its peer group equity holdings unbundled at the end of the month when hiking path perhaps faster than previously expected.

10 Slightly in June, while performing very much in line Old MUTUAL plc split into Quilter Plc and Old MUTUAL The increasing cost of capital, dollar strength and with peers in the second quarter of 2018. Over the Ltd. In due course, Old MUTUAL Ltd will also distribute Trump's trade tariff moves weighed on emerging market last 12 months, the fund 's performance has been in a portion of its holdings in Nedbank. We expect the currencies and markets in particular. Precious metals the upper quartile. share prices to take some time to settle down while were weaker, but geopolitical tensions saw the oil price With the macro environment weighing heavily on shareholders across various markets re-position their firm considerably.