January 2018

Securities Preference Share Portfolio FNB Securities Personal Portfolios

Portfolio objective Largest equity holdings The portfolio consists of a selection of JSE listed preference shares. It aims to

Share Forward Yield* provide investors with an attractive interest rate linked income in the form of dividends. This portfolio is not for investors seeking long term capital growth. 11.5% 11.0% Investor profile Absa Bank 10.9% This portfolio is suited to investors who require exposure to listed preference share, FirstRand 11.1% requiring an interest rate linked dividend income, and who are prepared to invest (INPR) 11.0% for 3 years or longer. Portfolio forward yield 10.4% *Includes STC savings passed onto shareholders Portfolio activity *Gross of dividends withholding tax The preference share benchmark declined by 0.7% for the month. Preference shares that outperformed include Standard Bank, Steinhoff, Grindrod and Nedbank. Portfolio facts Imperial, Investec, PSG and FirstRand preference shares underperformed the Initial fee: 0.0% benchmark. No changes were made to the portfolio over the period. Preference Advisory fee: The intermediary may shares are trading on a forward yield of about 11%. Continued and potential share charge an upfront buy backs should underpin valuations. advisory fee to a maximum of 3.0% (excl. VAT) Benchmark movement Annual Per sliding scale 2000 management 1850

fee: 1700

Minimum R3 000 000 1550 investment: 1400 Redemption 5 business days period: 1250 Custodian: First National Bank 1100 950 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Risk indicator FTSE™/JSE™ Preference Share Index™ (TR)

Low Moderate High

Contact us

Relationship +27 11 282 4561 manager: Dealing desk: +27 11 282 8734 Email: [email protected] Website: www.fnbsecurities.co.za

Disclaimer: The valuations, calculations, prices, opinions and all other information (the “information”) contained in this document is issued by FNB Securities (Pty) Ltd (Reg no: 1996/011732/07) (“FNB Securities”) - a part of the FirstRand Group. An Authorised user of the Stock Exchange (JSE) and Financial Services Provider (FSP182). Whilst all care has been taken in the provision of the information in this document, this information is provided without liability to us, our affiliates or any officers or employees of ours. The information expressed in this document is done in good faith and is not intended to constitute any form of advice, including but not limited to financial, legal or tax advice. Some of the information may have been provided or sourced from third parties and we do not in any way guarantee its accuracy or correctness. At all times we will endeavour to ensure that information obtained from any third party is accurate and reliable. FNB Securities and its affiliates disclaims and assumes no liability for any loss or damage (direct, indirect or consequential) that may be suffered from using or relying on the information contained herein. Investment in shares may cause exposure to certain risks, including market risk, and may therefore not be suitable for all clients. Please contact your relationship manager for a personal financial analysis prior to making any investment decisions. FNB Securities and its affiliates disclaims and assumes no liability for any loss or damage (direct, indirect or consequential) that may be suffered from using or relying on the information contained herein without seeking professional advice. All rights in the FTSE/JSE Africa Index Series vest in the JSE and in FTSE International Limited (“FTSE”) jointly. FTSE™ is a trade mark of the London Stock Exchange Group of Companies (“LSE”). JSE™ is a trade mark of the JSE.