Eight years old and still highly flexible

Launched in February 2013, the Laurium Flexible Prescient Fund (the Fund) has successfully grown to be the seventh largest fund in the South African Multi- Asset Flexible category at R2bn. The Fund is widely accessible across the platforms in the South African market, available for Tax Free Savings, direct investments and living annuities. The eight-year annualised performance of 11.5% places it 3/33 in the category over time, outperforming the average of the category by 4.3% per year. These returns have been achieved in difficult markets at an average exposure over time of 80% to equities and property. With this in mind, those who have used the Fund as a proxy equity building block have been rewarded, outperforming 81/83 of the general equity funds at lower volatility over the past eight years.

Key to this performance is asset allocation, select special situations and successful stock-picking based on strong fundamental analysis by an experienced cohesive team.

GRAPH 1: ANNUALISED RETURN - 1 FEB 2013 TO 31 JAN 2021

The annualised performance chart (Graph 1) compares the Fund against its benchmark of CPI+5%, prominent SA indices and the South African Multi-Asset Flexible sector average.

The first quarter of 2020 was a significant stress test for almost all funds, regardless of asset class, especially those higher up on the risk spectrum. One of the primary objectives of the Fund is to outperform the SA equity market over time at lower levels of volatility. In the volatile first quarter of 2020, the Fund outperformed the falling SA equity market by 9.2%. It then participated strongly in the market recovery, finishing the year in positive territory,

generating 5.7% net of fees. In a year of extremes and low inflation, the Flexible Fund achieved a real return of 2.5% above inflation and alpha of 5.1% when compared to the SA equity market in 2020. The Fund has managed to protect capital without sacrificing performance on the upside and has outperformed the market, but with much lower volatility, as evidenced by Graph 2, which shows Compound Annual Growth Rate (CAGR) vs. Risk (volatility).

GRAPH 2: RISK VS RETURN - 1 FEB 2013 TO 31 JAN 2021

A reminder of how the mandate works: The Fund may invest in any asset class up to any limit. It is not subject to the limits of Regulation 28 but per the South African Multi-Asset Flexible category, it is subject to the SARB limitations of a maximum of 30% offshore and 10% in Africa. In the Laurium Flexible Prescient Fund, we cannot go short, but may vary our net exposure to the equity market by including cash, bonds or other instruments depending on relative valuations of these asset classes.

Over the past eight years, Laurium Capital has grown as a business from a team of 12 with R1.7bn assets under management (AUM) to a team of 30 people with R33bn in AUM across hedge, equity, fixed income and multi-asset funds, with a broad, diversified investor base, both locally and offshore.

Mike Titley, Business Development, Laurium Capital

Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CIS’s are traded at the ruling price and can engage in scrip lending and borrowing. A schedule of fees, charges and maximum commissions is available on request from the Manager. There is no guarantee in respect of capital or returns in a portfolio. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. CIS prices are calculated on a net asset basis, which is the total value of all the assets in the portfolio including any income accruals and less any permissible deductions. Performance has been calculated using net NAV to NAV numbers with income reinvested. The performance for each period shown reflects the return for investors who have been fully invested for that period. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestments and dividend withholding tax. Full performance calculations are available from the manager on request.

Laurium Capital (Pty) Ltd is an authorized FSP (FSP34142). Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to www.laurium.com. Annualised performance: Annualised performance shows longer term performance rescaled to a one-year period. Annualised performance is the average return per year over the period. Actual annual figures are available to the investor on request. Highest & Lowest return: The highest and lowest returns for any one year over the period since inception have been shown. NAV: The net asset value represents the assets of a Fund less its liabilities.