GRINDROD PREFTRAX(1)

FUND INFORMATION 31 May 2014

Classification South African - Equity - Unclassified Distribution declaration dates Quarterly Last two distributions Nov 2013 15.40 cpu; Benchmark Preference Share Index (J251) Mar 2014 11.37 cpu Launch Date 28 March 2012 Historical yield 7.88%

Inception 19 December 2013 Fund size R248 904 591.2

Number of holdings 19 Shares in issue 23 900 000

Cost 0.45% (VAT Exclusive) Trustee Societe Generale Branch

Share code PREFTX Market maker Grindrod Securities

Original price R10.87 Asset manager Grindrod Asset Management

Current price R10.41

OBJECTIVE distributions*

The investment objective of the portfolio is to provide investors with an efficient and Since inception 28 March 2012, paid in cents per unit easily accessible means by which to achieve a return that tracks the price and yield performance of the J251 Index. The portfolio will attempt to place an investor in substantially the same position, from capital and income perspective, as if they held the underlying constituents of the J251 Index in their correct weightings

WHY CHOOSE THIS FUND? PrefTrax is an Exchange Traded Fund (ETF) which tracks the performance of the Preference Share Index.

The benefits of PrefTrax are the following :

• Attractive yield

• Tax efficient income stream †

• Offers quarterly distribution

• Cost-effective 2012 May 2012 Aug 2012 Nov 2013 Feb 2013 May 2013 Aug 2013 Nov Dec 2013 Mar 2014

• Accessible * All distributions were made prior to the conversion of Prefex into PrefTrax. • Diversified † The special distribution relates to the conversion into a portfolio of a collective investment scheme.

• Tight buy and sell spreads Constituents Weight (%) Constituents Weight (%)

• Transparent Group Pref 15.6 African Bank Inv Pref 2.6 • Flexible Firstrand Ltd B Pref 13.2 Invicta Pref 2.6 • Useful asset allocation tool for professional investors Absa Bank Ltd Pref 13.1 Grindrod Ltd Pfd 2.1

Nedbank Ltd Pfd 11.5 Network Healthcare Cp 1.8 DIVIDEND YIELD Bank Pref 9.1 Imperial HldgsPref 1.2

Forecast gross yield 7.88% Brait Perp Pref 7.1 Hldgs Pref 0.8

Total Cost* 0.45% Investec Ltd Pfd 4.7 Investec PLC Pref 0.8

Yield Net of Cost 7.43% PSG Preference Share 4.7 Sasfin Holdings Ltd Pref 0.5

Dividends Tax (if applicable) 1.11% Steinhoff Invest Hld Prf 4.1 Astrapak Ltd Pref 0.4

YIELD NET OF COST AND TAX 6.32% Discovery Hldgs Ltd Pfd 2.9 Pre Tax (based on 40%) equivalent 10.53%

* The PrefTrax security is expected to have a Total Cost of 0.45% to CONTACT 0.5% per annum. Market Maker - Grindrod Securities Gary Hepplewhite T: +27 (0)31 333 5413 E: [email protected] www.grindrodsecurities.co.za

Issuer - Property Index Tracker Managers (Pty) Ltd Chris Rule T: +27 (0)11 459 1846 E: [email protected]

(1) Prior to the conversion into a portfolio of a collective investment scheme the following security traded as PrefEx.

Phone +27 (0)11 459 1846 Fax +27 (0)11 388 2341 Email [email protected] Website www.gtrax.co.za

Trustee and custodian: Société Générale Johannesburg Branch Telephone 011 448 8427. This document and any other information supplied in connection with Grindrod Index Tracker Managers (RF) (Pty) Ltd (“the Manager”) is not “advice” as defined and/or contemplated in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002 (“the FAIS Act”) and investors are encouraged to obtain their own independent advice prior to buying participatory interests in CIS portfolios issued by the Manager. Opinions expressed in this document may be changed without notice at any time after publication. Collective Investment Schemes (CIS) are generally medium to long-term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from the Manager. Exchange Traded Funds (ETFs) that are registered as Collective Investment Schemes (CIS) are portfolios that trade on stock exchanges. Trading in ETFs will incur the normal costs associated with listed securities, including brokerage, settlement costs, Securities Transfer Tax, other statutory costs and administrative costs. The price at which ETFs trade on an Exchange may differ from the NAV price published at the close of the trading day, because of intra-day price movements in the value of the constituent basket of securities. The PrefTrax is a security originated by Grindrod Bank Limited. Grindrod Bank Limited is an Authorised Provider and a Registered Credit Provider (NCRCP25).