Altron Group Pension Fund Newsletter In this issue: December 2019 ’S SILVER LINING YOUR PENSION FUND SPRINGBOK WORLD CUP VICTORY Positive stories from our country How have your investments performed? Interesting statistics about the World Cup win South Africa’s Silver Lining

The Springbok victory is not the only industry, entrepreneurship and industry farming system born in the townships reason to feel positive about South are flexing its muscles. The EcoArena that uses plastic bags to grow vegetables Africa block is a plastic brick that is lighter, more for sustenance and sale and has been cost effective, and stronger than regular awarded a 2019 FNB Business Innovation When lifted the Webb Ellis bricks and is the result of a prototype Award. The Umgibe system was developed Cup it was a monumental occasion, and developed by sisters in Sasolburg. In a by Nonhlanhla Joye who turned to farming no doubt the images of it will endure country with water challenges, another in order feed her family and needed a much like Francois Pienaar in 1995 benefit is that the bricks do not use any solution to stop her chickens from eating and John Smit in 2007. The doom and water in their construction. her crops. gloom that had set into the country over Utilising plastic has been central to the The examples above show just how the previous 18 months has started to Umgibe farming system, an organic South Africans are able to overcome the show its cracks, and if we scratch a little harder we can see that indeed there is odds through hard work a silver lining to South Africa. and dedication. If we all show some of the desire, In August and September this year the energy, and innovation of USA was treated to the vocal talents of these South Africans, then the Ndlovu Youth Choir. The choir’s the future will have far more infectious energy and charm was on than a silver lining. show as they sang their way into the hearts of millions around the world watching America’s Got Talent. Sport and culture are not the only arenas where we are seeing success Source: Zapiro and innovation. In the construction Your Hopefully the results we have seen will continue through the Festive Season and into the New Year. It is always important to remember that the key to investment Pension Fund success is to stick to the investment strategy;­­ which is long term A strong third quarter for the Pension Fund erases capital growth of the fund. previous losses. October 2019 1 Month 3 Month 1 Year TIC* The third quarter of the year saw a return to positive growth accross the board. All of the Altron Pension Fund portfolios Wealth Builder 1.7% 2.8% 6.8% 0.84% currently show positive returns over a 1 month, 3 month, and Wealth Builder 2.4% 3.7% 9.1% 1 year period. This is in contrast to previous quarters where Benchmark the returns were negative, an indication of the volatility that Conservative 0.9% 2.9% 6.9% 0.31% has been prevalent. Conservative 1.4% 3.2% 7.7% Benchmark October 2019 3 Month 1 Year Pension Protector 1.1% 1.4% 4.3% 0.63% (Aug-Oct) Pension Protector 1.6% 2.5% 6.6% Benchmark Shari’ah Wealthbuilder 2.2% 2.9% 5.7% 1.36%

Shari’ah Wealthbuilder 5.2% 6.0% 12.1% Benchmark Retail Total Investment Charge vs 1 Year TIC* Wealth Builder Wealth Builder 1.7% 2.8% 6.8% 0.84%

Investec Opportunity 1.2% 2.2% 8.4% 1.27% Fund H ** Allan Gray 1.5% 3.4% 2.9% 1.45% Balanced C** Coronation Balanced 2.4% 3.5% 8.2% 1.74% The positive gains made by the portfolios are due to the Plus P ** returns from equities and property over the last month. The * TIC is the total investment charge equities return for the month was 2.1% and the SA property ** Portfolio uses performance fees so the TIC may be higher than return was 3.0%. Bonds and cash did not perform as well, indicated but conventional investment thinking is that property and equities, being more volatile asset Springboks By The Numbers classes, will have periods of over and under performance relative to the more stable asset The Springbok victory at the 2019 Rugby World Cup has brought up some classes. Traditionally equities and property have interesting statistics: been the core drivers of portfolio performance in South Africa.  The Springboks have won the World Cup 3 times, which is tied for the most along with New Zealand  The Boks last won the World Cup 12 years ago, in 2007. The previous time the Boks won was 12 years before that in 1995  Please Note: There will be Frans Steyn has joined Os du Randt as the only Springbok players to have won the World Cup twice a slight delay in sending  Cobus Reinach scored the fastest hat trick of tries in World Cup out the fund performance history against Canada with a time of 11 minutes email in January due to  is the first Springbok to score a try in a World Cup staff taking leave. Final  The Boks have never lost a World Cup Final  By losing to New Zealand in their first game, the Boks have become the only team to have lost a game and gone on to win  The Boks have won 43% of the World Cups they have competed in. New Zealand have won 33%, Australia 22%, and 11%

If you have any questions about this newsletter, or you are looking for financial advice, please contact the fund approved advisors, Optimate Financial Solutions, at [email protected]