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. 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.

2 The fund will predominantly invest in shares, but the portfolio appropriate. Past performance is no indication of future performance. 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. 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.

3 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. 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. % 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).

4 (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. 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 . fund MANAGER INFORMATION. PETER BROOKE. PORTFOLIO MANAGER.

5 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. 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.

6 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. portfolios. Passive holders are expected to be forced emerging markets, it was the global investments, both The negative impact of rand weakness, with rate hikes sellers as a number of index changes take effect.

7 We dual-listed shares and the offshore holdings, that had now more likely than further cuts, as well as disappointing are planning to be patient and not to read too much to carry the portfolio. The uninspiring South African into the initial market movements. local growth, saw South African investment markets economy has left many of the fund 's domestic stock come under pressure during the quarter. Bonds and picks directionless and most of the month's positive The FLEXIBLE fund is well positioned to deliver on its quoted property were weaker, with yields kicking up and equity excitement has come from rand hedge holdings, performance objectives over its investment horizon. locally orientated shares such as financials and retailers including Sasol, Sappi and Naspers. The fund 's South Source: Old MUTUAL Investment Group as at 30/06/2018. OTHER INVESTMENT CONSIDERATIONS ONGOING. MINIMUM INVESTMENTS: Class A Class B1* Class R.

8 Monthly: R500 Annual service fees (excl. VAT) * Please note: The Class B1 fund is only available through investment platforms such as Old MUTUAL Wealth. Lump sum: R10 000 The fee is accrued daily and paid to the management company on a monthly basis. Other charges incurred Ad hoc: R500 by the fund , and deducted from its portfolio, are included in the TER. These include the fees and costs relating to underlying global asset class exposures, which range between and as the fee for equity exposures is typically higher than the fee for fixed income or money market exposures. A portion of INITIAL CHARGES (Incl. VAT)*: Old MUTUAL Unit Trusts' annual service fees may be paid to administration platforms. There is no initial administration charge for investment transactions of R500 and TAX REFERENCE NUMBER: 9301/002/60/7. above. Initial adviser fee will be between 0% and ISIN CODES: Class A ZAE000171104.

9 Investment transactions below the R500 fund minimum incur a administration charge. * Please note: Initial charges do not apply to the Class B funds. Class B1 ZAE000097440. Total Expenses (Incl. Annual Service Fee) 36 Months 12 Months (31/03/2018) Class A Class B1* Class R Class A Class B1* Class R. Total Expense Ratio (TER) Incl. VAT Transaction Cost (TC) Total Investment Charge * Please note: The Class B1 fund is only available through investment platforms such as Old MUTUAL Wealth. TER is a historic measure of the impact the deduction of management and operating costs has on a fund 's value. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER, which includes the annual service fee, may not necessarily be an accurate indication of future TERs. Transaction Cost (TC) is a necessary cost in administering the fund and impacts fund returns.

10 It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of fund , the investment decisions of the investment manager and the TER. Funds are also available via Old MUTUAL Wealth and MAX Investments. Helpline 0860 234 234 Fax +27 21 509 7100 Internet Email We aim to treat our clients fairly by giving you the information you need in as simple a way as possible, to enable you to make informed decisions about your investments. We believe in the value of sound advice and so recommend that you consult a financial planner before buying or selling unit trusts. You may, however, buy and sell without the help of a financial planner. If you do use a planner, we remind you that they are entitled to certain negotiable planner fees or commissions. You should ideally see unit trusts as a medium- to long-term investment.