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Liberty Capital Preservation Portfolio As at 31 August 2021

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Liberty Capital Preservation Portfolio As at 31 August 2021 Liberty Capital Preservation Portfolio As at 31 August 2021 General information Portfolio objective Portfolio manager(s) Ansie van Rensburg and Mary Hartigan The primary objective of the portfolio is to obtain as high a level of current income as is consistent with capital preservation and liquidity through Asset manager(s) STANLIB Asset Management investing in money market instruments. Capital gains will be of an Benchmark STeFI Composite Index incidental nature. Portfolio size R 90 million as at 30/06/2021 Launch date 02 November 1998 Investor profile Regulation 28 Compliant This portfolio is suited to the investor who: • is looking for preservation of capital Guarantee available No • wants low variability in returns • has a short term investment horizon not exceeding 2 years Cost ratios Annualised (including VAT) as at 31 March 2021 Risk profile Based on period from 01 April 2018 Total Expense Ratio (TER) 0.01% Moderately Moderately Transaction Costs (TC) 0.00% Conservative Moderate Aggressive Conservative Aggressive Total Investment Charges (TIC) 0.01% Please refer to Cost ratios section of Disclosures for important information relating to the above. Performance Cumulative performance (%) over 5 Years Returns % YTD 3m 1y 3y 5y 10y Portfolio (RA) 2.80 1.07 4.22 6.29 7.03 4.15 Portfolio (Taxed-I) 1.96 0.75 2.94 4.37 4.87 2.88 Benchmark 2.49 0.95 3.84 5.87 6.51 6.24 Inflation 4.01 1.42 4.64 3.93 4.30 5.01 Statistics Over 10 years Month Year Best % 0.76 8.30 Worst % 0.00 0.00 % Positive 98.35 86.78 Volatility, calculated over a three-year period: 0.14 Holdings Asset allocation (%) as at 30/06/2021 Top holdings (%) as at 30/06/2021 Standard Bank Group Ltd 22.61 Nedbank Ltd 15.49 Absa Bank Ltd 10.78 Investec Bank Ltd 5.78 Impumelelo CP Note Programme 1 1.28 China Construction Bank Corp 1.28 HSBC Holdings plc 0.36 African Phoenix Investments Ltd 0.02 Standard Chartered Bank 0.01 Please refer to Disclosures for important information relating to the content of this document. Liberty Group Limited (reg no 1957/002788/06) is a registered Long-term Insurer and an Authorised Financial Services Provider (FAIS no. 2409). Page 1 of 3 Liberty Capital Preservation Portfolio As at 31 August 2021 Portfolio managers Ansie van Rensburg Mary Hartigan BCom (Hons) BCom STANLIB Asset Management STANLIB Asset Management Head of Money Market Portfolio Manager/Dealer Ansie is head of the Money Market at STANLIB Asset Management. She Mary joined STANLIB’s institutional sales team in early 2008, soon joined STANLIB’s forerunner Standard Corporate and Merchant Bank in moving to the dealing room as a money market dealer and assistant 1991, and today is a member of the investment strategy team with portfolio manager. She originally trained as a money market dealer under specific responsibility for investment of funds in the fixed interest and her current senior colleague Ansie van Rensburg at CM Interbank in money markets. After obtaining her BCom with honours in economics, 1989, and went on to work as a money market dealer and carry trader at Ansie served articles with Theron van der Poel. She first entered the Brait, Decillion and Grindrod Bank. She obtained her BCom through industry as a management trainee and later money market trader with Unisa in 1994. Volkskas Merchant Bank. She was also involved in the founding of money broking operation CM Interbank. Commentary as at 30 June 2021 Market review The South African Reserve Bank (SARB) left the repo rate unchanged for the first six months of this year at 3.5%. The Johannesburg Interbank Average Rate (JIBAR) ended the quarter higher in the long end with the forward rate agreement (FRA) curve steepening throughout the quarter. The FRA curve is an indication of market sentiment and is currently implying more than 50 basis points of hikes by the SARB in the coming months. Given the economic stress the country is still experiencing, this is potentially the result of investors paying interest in the shorter swap market rather than the market’s expression of the rate outlook at this stage. We therefore only expect rate hikes in 2022. The unemployment rate is now at 32.6% and is expected to decline over the next five years. A moderation this year would require faster economic growth and a rapid roll-out of vaccinations to quickly cover two- thirds of the population. Job creation was set back by seven years in SA because of the pandemic. The largest losses were borne by the formal sector of the economy, at 700 000 jobs, with 400 000 lost in the informal sector. As anticipated, GDP growth slowed in the fourth quarter of 2020 to 1.4%. In the second quarter of this year GDP growth is also likely to be slower than the 1.1% quarter-on-quarter rise in the first quarter (or 4.6% annualised) and is expected to be 1.7%. With some emerging markets hiking interest rates, SA’s repo rate may come under pressure as well, although we continue to expect this to occur only from next year. While consumer spending has recovered well so far, growth will be dependent on consumer confidence, employment, access to credit, the effects of inflation, as well as disposable incomes, which could suffer in the third quarter from stricter lockdown restrictions. The long end of the JIBAR curve increased during the quarter, as 12-month rates moved from 4.63% to 4.8%. The short end of the curve remained flat, with three- month JIBAR trading at 3.68% throughout the quarter. Liquidity needs for banks remain low and spreads remain compressed. Treasury Bills (TBs) continue to deliver better value than bank rates, trading at 15-20 basis points over bank negotiable certificate of deposit (NCD) rates. Fund review The portfolio performed in line with expectations. Looking ahead Slow progress on vaccinations, restricted energy supply and policy uncertainty continue to pose downside risks to growth. Monetary policy alone cannot raise potential growth or reduce fiscal risks and, as the country is facing stricter lockdown regulations, interest rates may remain flat this year. Inflation rose to 5.2% year-on-year in May from 4.4% in April, as anticipated by the market. Economic and financial conditions are expected to remain volatile for the foreseeable future. In this uncertain environment, policy decisions will continue to be data dependent and sensitive to changes in the economic outlook. Source: STANLIB, Liberty The commentary gives the views of the portfolio manager at the time of writing. Any forecasts or commentary included in this document are not guaranteed to occur. Please refer to Disclosures for important information relating to the content of this document. Liberty Group Limited (reg no 1957/002788/06) is a registered Long-term Insurer and an Authorised Financial Services Provider (FAIS no. 2409). Page 2 of 3 Liberty Capital Preservation Portfolio As at 31 August 2021 Disclosures General information and Holdings All size and holdings data is updated quarterly. Cost ratios The Total Expense Ratio (TER) depicts the percentage of the value of the Financial Product that 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’s. The Transaction Costs (TC) depicts the percentage of the value of the Financial Product that was incurred as costs relating to the buying and selling of the assets underlying the Financial Product. The TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. The TC should not be viewed in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The Total Investment Charges (TIC), which is the sum of the TER and TC, depicts the percentage of the value of the Financial Product that was incurred as costs relating to the investment of the Financial Product. The TER, TC and TIC values represent the weighted average of all tax classes (where more than one tax class exists). Please be advised that for portfolios that invest 100% into an underlying collective investment scheme portfolio (CIS) the TER, TC and TIC shown represent that of the underlying CIS. Please note that the implicit fees are disclosed on the website under each fact sheet range. Performance Cumulative Performance and Returns All returns shown are in ZAR. The single premium investment returns shown are gross of Liberty product charges but net of implicit portfolios fees and shareholder participation (where applicable). Individual investor performance may differ as a result of initial fees, the actual investment date and/or the date of reinvestment. Past performance is not indicative of future performance. The performance of the portfolio benchmark over time provides the basis against which the portfolio manager will be measured. This may be changed from time to time. Benchmark performance is gross of all fees. Statistics Best % - the highest 1 month and 1 year RA return that the portfolio has delivered over the last 10 years or since inception. Worst % - the lowest 1 month and 1 year RA return that the portfolio has delivered over the last 10 years or since inception. % Positive - the number of positive 1 month RA returns, shown as a percentage of the total number of 1 month return periods during the last 10 years or since inception.
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