Minimum Disclosure Document (Fund Factsheet) …

1 sanlam ALTERNATIVE INCOME FUNDWhoShouldInvest Investorsseekingaliquidunittrustinvestme ntwithabetterafter-taxyieldthanamoneymar ketfund. Investorsseekingprotectionfromequityandb ondmarketvolatility. Highnetworthindividualswhohaveutilisedth eirinterestexemptionandrequirearegular,t axefficientincome. Disclosure Document (Fund Factsheet) sanlam AlternativeIncome Fund30 September 2018 Issue date: 19 October 2018 FundObjectiveTheobjectiveoftheportfolioi stoofferaliquid, ,inaccordancewiththerequirementsoftheCol lectiveInvestmentSchemesControlAct(CISCA ).Inachievingitsobjective,thefundinvests inadiversifiedportfolioofdividendyieldin gnon-equitysecurities,includingRanddenom inatedredeemablecumulativepreferenceshar es, , , InformationASISA fund classification SA -Multi Asset -IncomeRisk profile ConservativeTargeted constant price 100 Cents per unit Benchmark After-tax return on the SIM Money Market Fund (individual tax rate of 45%)Portfolio launch date 25 May 2007 Minimum investment Lump sum R100 000 |Monthly R10 000 Portfolio sizeR7 millionFund ManagerSanlam Collective Investments (RF) (Pty)

2 LtdInvestment ManagersSanlam Structured Solutions, a divisionof sanlam Investment Management (Pty) Ltd,and TBI Investment Managers (Pty) Ltd Fund ratingNational scale fund rating of AA-(ZA)(f) by Global Credit Ratings Co (Pty) Ltd; outlook StableIncomedeclaration datesLast day of each month Income price dates1st working day of each new month Valuationtime of fund15:00 Transaction cut off time11:00 Daily price informationThe local newspaper hours(subject to provisions of CISCA, the Deed and the application form)Fees( )A1class (%)Manager annual expense ratio (TER) Investment monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms : 01 July 2015 30 June 2018 Total Expense Ratio (TER).

3 Of the value of the Financial Product was incurred as expenses relating to the administration 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 sTransactionCost(TC) ,thetypeofFinancialProduct, (TER+TC) Characteristics Capitalpreservation. FundNationalscalefundratingofAA-(ZA)(f)b yGlobalCreditRatingsCo(Pty)Ltd. Diversifiedinvestmentinhighqualityassets withcreditrisktomajorbankinggroupsandfin ancialinstitutions. Returnmainlyintheformofdividends.

4 48hourliquidity. Returnstrackshort-terminterestratemoveme nts,ensuringprotectionagainstinterestrat eexposure. Monthlyincomedistributions. (EAC) , ALTERNATIVE INCOME FUNDP ortfolioManagersQuarterlyComment 30 September2018 TheMonetaryPolicyCommitteeleftthereporat eunchangedagainandasaresult,thefund ,howeveronaverageovertheterm,grossexposu retopreferenceshareassetswasmaintainedat afairlysimilarlevelcomparedtotheprevious quarter,andaccordingly, , , ManagersSteven RosenbergBSc (Hons), FASSAS tevenRosenbergwasappointedHeadofDerivati veStructuringatSanlamStructuredSolutions ( SSS ) , ,amongstothers,amemberoftheSanlamAssetLi abilityMatchingCommittee,theSanlamCapita lCommittee, sW SchneiderBAcc(Hons),CA(SA) (formerlyknownasOraFundManagers)

5 Highest and lowest annual performance for rolling 10 yearsMonthly income distributions (cents per unit)31/10 Annual % (2008/2009) Annual% (2012/2013) compound performance as at 30 September 2018 Fund (%)Benchmark (%)Latest 5 3 1 Disclosure Document (Fund Factsheet) sanlam AlternativeIncome Fund30 September 2018 This monthly Minimum Disclosure Document should be viewed in conjunction with the Glossary Terms (Pty) < 48 hours48 hours to 31 days32 days to 90 days91 days to 12 months> 12 monthsTop 10 Credit Exposure as at 30 September 2018 NotesSanlamPrefcoProprietaryLimited, , herepublicratingsarenotavailable,theFund Managermakesuseofaninternalratingperform edbySanlamInvestmentManagement(Pty) and money market funds: yielding instruments.

6 Limited Bank Limited Bank Limited Limited Money Market Fund Proprietary Limited Holdings Limited Corporate Money Market Fund Investments Money Market Fund Capital Markets ALTERNATIVE INCOME FUNDM anager InformationSanlam Collective Investments (RF) (Pty.) LtdPHYSICAL ADDRESS:POSTAL ADDRESS: CLIENT CONTACT CENTRE2 Strand Road, Bellville 7530 PO Box 30, Sanlamhof 7532 Tel: +27 (21) 916-1800 Fax: +27 (21) 947-8224 E-mail: W ebsite: ,warrantyorundertaking, ,andthatthevalueofinvestments/ ,SanlamCollectiveInvestments(RF)PtyLtd, ,includingbrochures,applicationformsanda nnualorquarterlyreports,canbeobtainedfro mtheManager, ,whichisthetotalmarketvalueofallassetsin theportfolioincludinganyincomeaccrualsan dlessanydeductibleexpensessuchasauditfee s, ,theactualinvestmentdate, ,No45of2002( CISCA ).

7 , , (Pty)Ltd(FSP579)andTBII nvestmentManagers(Pty)Ltd(FSP42968),auth orisedFinancialServicesProvidersunderthe FinancialAdvisoryandIntermediaryServices Act, of termsCapital preservationThisisaninvestmentstrategywh eretheprimarygoalistopreserve(protect) ,sincetheymayberelyingontheirinvestments togenerateincometocovertheirlivingexpens es, sharesPreferencesharesrankhigherthanordi narysharesintermsofdividendsandcapital, (suchasafuture,option,orwarrants)whoseva luederivesfromandisdependentonthechangei nvalueofanunderlyingasset(suchasacommodi ty,currency,orsecurity)toprotectagainstr isk(capitallosses).Total expense ratio (TER)Thisisthetotalcostsassociatedwithma nagingandoperatinganinvestment(excluding administration,financialplanningandservi cingfees).

8 Thesecostsconsistprimarilyofmanagementfe esandadditionalexpensessuchastradingfees ,legalfees, 'stotalassetsundermanagementtoarriveatap ercentageamount, , InformationStandard Bank of South Africa LtdTel no.: 021 441 4100E-mail: Disclosure Document (Fund Factsheet) sanlam AlternativeIncome Fund30 September 2018