VANTAGE GUARANTEED INCOME FUND (VGIF) FACTSHEET …

1 VANTAGE GUARANTEED INCOME fund (VGIF) FACTSHEET 4TH Quarter, 2015. Key Facts and Features fund Overview Who should Invest? The VANTAGE GUARANTEED INCOME fund The fund is appropriate for retail and institution- fund Size: billion (formerly Kakawa GUARANTEED INCOME fund ) is al investors seeking capital preservation and a designed to provide a pre-stated return on fixed positive real rate of return. fund Launch Date: 2007. investment. The fund aims to provide INCOME with the opportunity for long-term capital growth. To Domicile: Nigeria Unlike all other money market funds which generate returns, the fund invests in Naira guarantee only principal, VGIF guarantees Currency: NGN. denominated government securities, money principal as well as a return equivalent to the market instruments and equities. Share Classes: Accumulation Standing Deposit Facility rate (SDF). In addi- tion to the GUARANTEED return, unit holders are Typical Investors include individuals in Nigeria INCOME also entitled to an additional equivalent to 35% and the diaspora, Foreigners, Pension fund Financial Year End: December of the fund 's excess return above the SDF.

2 Administrators, Insurance firms, Endowment Funds, Cooperatives, Trusts and Wealth Minimum Initial 50,000 Units Managers. Investment: Investment One Funds Management, a wholly owned subsidiary of Investment One Financial Investments can be made for one's child(ren) or Distribution Frequency: Bi- Annual Services Limited, acquired the management wards then handed over to them when they are rights to the fund in January 2013. mature enough to self-invest. Management Fee: Nil Additional Yield 35% excess return above Benchmark Revenue Reserve 15% excess return above Benchmark Incentive Fee: 50% excess return above Benchmark fund Manager's Remark fund Growth for the last 5 years Risk Tolerance: Low Fixed INCOME yields dropped by over 300 basis points in Year No of Subscribers fund Size ( 'mn ) Permissible Asset Equities: 0% - 25%. the period under review due to monetary policy easing though we witnessed a moderate drop of about 100. Allocation: Fixed INCOME : 0% - 100%.

3 Basis point in our average yield on investments. We had Dec -11 2,046 2, Benchmark Standing Deposit Facility secured longer dated investments in anticipation of Redemption before 6 months Dec -12 2,308 3, Redemption lower interest rates higher and thus minimised re- attracts a 10% charge on INCOME investment risk. Dec -13 2,536 4, fund Price Our allocation to equities remained below 10% as new Dec -14 2,752 5, investments were not made due to the poor perfor- mance and outlook for the equites market. Sept -15 3,631 4, Q4'2015 Market Review and Q1' 2016 Outlook The fund size contracted marginally during the period. Dec -15 3,666 4, z Q4'2015 Review In the last week of the year, the President presented a 2016 budget to the senate clearly stating the government's intentions of stimulating the Top 5 Equity Holdings Asset Classes economy and increasing job creation through increased capital expenditure and improved business environment.

4 The budget was based on an oil price benchmark of $38 per barrel against $52 in 2015 and production estimate of million barrels per day. Consequently, real GDP is expected to grow to in 2016 compared to the growth forecasted by CBN for 2015. Fixed INCOME Market Liquidity in the banking system averaged N800billion in the 4th quarter of the year driven by; the lack of OMO action by the CBN in October and November, FX refunds, and cash refunds following the reduction in the Cash Reserve Ratio. Against the backdrop of an increase in net liquidity levels, money market interest rates during the period were relatively low (average 7% relative to 16%. in Q3 2015). The last MPC meeting of the year saw the CBN officially adopting an expan- sionary policy stance in line with consensus expectations. The following deci- sions were reached: Reduce MPR to 11% from 13%,cut CRR to 20% from 25%,set the asymmetric corridor around the MPR at +2/-7% ,Mandated that the GUARANTEED Return & Additional Yield liquidity arising from the reduction in the CRR to 20%, will only be released to the banks that are willing to channel it to employment generating activities in Date GUARANTEED Return ( ) Additional Yield (Paid at FYE).

5 The economy such as agriculture, infrastructure and solid minerals. Jul - Dec, 2009 The bond market was relatively bullish in the third quarter, with the average Jan - Jun, 2010 bond yield contracting by over 5% due to system liquidity. The Treasury Bills market was largely positive during the quarter due to the Jul - Dec, 2010 liquidity in the system, with demand concentrated at the shorter end of the Jan - Jun, 2011 curve. In Q4 2015, the 365 day note contracted by over 2%. Jul - Dec, 2011 The Federal Government also announced plans to finance the deficit of in the 2016 budget by borrowing from domestic and Jan - Jun, 2012 foreign sources. Jul - Dec, 2012 Equity Market Jan - Jun, 2013 The Nigerian equities market dipped further in Q4 2015 as the twin effect of Jul - Dec, 2013 domestic macro headwinds and contagion effects of policy action from devel- Jan - Jun, 2014 oped markets (particularly expectation of rate hike by US Fed and the down- ward trend in crude oil prices) kept investors on the side-lines.

6 Jul - Dec, 2014 The ASI declined by q-on-q having reached a 3-year low in late Novem- Jan - Jun, 2015 ber. Market Sentiments were largely bearish as short rallies followed by intermit- Jul - Dec, 2015 tent profit-taking reigned during the period. The YTD return for the ASI stood at as at end of Q4 2015. Note: GUARANTEED Return was MPR before it was revised to SDF (MPR - 2%) in July 2015. : per annum 2016 Outlook FYE: Financial Year End Going into 2016, we see value in Nigeria stocks for medium to long term play as the current low and attractive prices present opportunities for building Important Information: position in quality names. However, our immediate expectation remains bearish Kindly note that the information contained in this document may vary from time to time and may be subject to changes, given the challenging macro environment. including but not limited to changes in market conditions. Investments are prone to risks and consequently fund value may go up as well as down and past performance is not an indicator nor a guarantee of future performance.

7 We strongly advise that you consult your stockbroker, solicitor, banker or an independent investment adviser in making investment 37, Karimu Kotun Str, Victoria Island, Lagos. decisions. Carefully consider the funds' investment objectives, risks, charges and expenses. This and other information can be found in the funds' fact sheet. You are advised to read and understand the contents of this fact sheet. This infor- Tel: +234-01-448 8888, +234-01-448 0848. mation is not an offer to sell or a solicitation of an offer to buy units of any fund to any person in any jurisdiction in which Web: an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.