Element Islamic Balanced Sanlam Collective Investments Fund Report - February 2021

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1. Element Islamic Balanced Sanlam Collective Investments Fund Minimum Disclosure Document As of 2021 /02/28 MDD Issue Date: Fund Objective The objective of the portfolio will be to offer investor long term capital growth while preserving capital over the medium to long term with a reasonable level of income that is halaal (permissible) for investors. 2021/03/16 Top Ten Holdings (%) Element Islamic Global Equity SCI Fund 19,38 MTN Group Ltd 4,70 Fund Strategy Impala Platinum Holdings Ltd 4,45 The portfolio will consist of investment in a mix of equity, bond and property markets, and money market instruments. The portfolio will invest in securities that comply with Shari’ah guidelines that govern Islamic Investment Funds. The Manager shall be permitted to invest on behalf of the portfolio in offshore investments as legislation permits. The portfolio will be managed in accordance with regulations governing pension funds. BHP Billiton Plc 3,85 NewPlat ETF 3,44 Anglogold Ashanti Ltd 2,69 Cashbuild Ltd 2,64 Libstar Holdings Ltd 2,27 Equites Property Fund Ltd 2,18 Glencore Plc 2,06 Fund Information Ticker Portfolio Manager ASISA Fund Classification IBFA Terence Craig & Andrew Bishop South African - Multi Asset - High Equity Risk Profile Moderate Aggressive Benchmark Shariah Average: SA - Multi Asset - High Equity Fund Size 2010/04/01 Fee Class Launch Date* 2010/04/01 Minimum Monthly Investment Income Declaration Date Income Payment Date Portfolio Valuation Time Transaction Cut Off Time Daily Price Information Repurchase Period Fees (Incl. VAT) Maximum Initial Advice Fee Maximum Annual Advice Fee 30,59 Non-SA Cash R 500 1,67 SA Equity 44,42 Non-SA Equity 20,80 SA Property June & December 2,51 Total 1st business day of July & January 100,00 15:00 15:00 Local media & www.sanlamunittrusts.co.za 2-3 business days A-Class (%) 3,45 — 1,72 Total Expense Ratio 2,12 Transaction Cost 0,23 Total Investment Charges 2,35 TER Measurement Period % SA Cash R 10 000 Manager Annual Fee Performance Fee Portfolio Date: 2020/12/31 R 75 243 569 Portfolio Launch Date* Minimum Lump Sum Investment Asset Allocation Annualised Performance (%) 1 Year 3 Years 5 Years 10 Years Since Inception Total Expense Ratio (TER) is the percentage 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. Transaction Cost (TC) is the percentage value of the Financial Product that was incurred as costs relating to the buying and selling of the assets underlying the Financial Product. Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered 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. Total Investment Charges (TER + TC) is the total percentage value of the Financial Product that was incurred as costs relating to the investment of the Financial Product. Performance fees are incentive fees earned by the manager for performance in excess of the benchmark. Performance fees form part of the cost structure of the fund and are included in the Total Expense Ratio. Please visit www.sanlamunittrusts.co.za for a detailed list of our funds that charge performance fees together with their calculation methodologies. *The Element Islamic Balanced Sanlam Collective Investments Fund transitioned to Sanlam Collective Investments (RF) (Pty) Ltd on 08 July 2017. Benchmark 17,63 7,06 6,38 8,56 8,63 Fund Benchmark 12,94 25,35 49,01 86,79 88,69 17,63 22,71 36,25 127,30 145,40 Cumulative Performance (%) — 01 January 2018 - 31 December 2020 Fund 12,94 7,82 8,31 6,45 6,03 1 Year 3 Years 5 Years 10 Years Since Inception Highest and Lowest Annual Returns Time Period: Since Inception to 2020/12/31 Highest Annual % 15,60 Lowest Annual % -5,48 Risk Statistics (3 Year Rolling) Standard Deviation 7,61 Sharpe Ratio 0,20 0,19 Information Ratio -7,41 Maximum Drawdown Distribution History (Cents Per Unit) 2020/12/31 0.76 cpu 2018/12/31 1.59 cpu 2016/09/30 0.00 cpu 2020/06/30 2.12 cpu 2018/06/30 1.38 cpu 2016/03/31 0.00 cpu 2019/12/31 2.33 cpu 2017/12/31 0.00 cpu 2015/09/30 0.00 cpu 2019/06/30 2.90 cpu 2017/03/31 0.00 cpu Administered by
2. Element Islamic Balanced Sanlam Collective Investments Fund Minimum Disclosure Document As of 2021 /02/28 Risk Profile Portfolio Manager Comment Moderate Aggressive Your primary aim is to achieve the required capital growth necessary to realise your longterm goals and objectives. You are prepared to tolerate fluctuations in your returns because you know that the longer-term picture is worth the short term pain, even if that means you lose money sometimes. While diversified across all the major asset classes, your portfolio will be tilted more towards equities because you know they offer the best long-term returns of all the asset classes and thus your wealth will grow over time. As at 31 December 2020 Glossary Terms Annualised performance over the last three years performance is +4.8% (net of fees) versus the benchmark performance of +4.6% and five-year performance is +8.1% (net of fees) versus the benchmark performance of +5.5%. Thus, the fund has outperformed its peer group over 3 and 5 years. Annualised Returns Annualised return is the weighted average compound growth rate over the period measured. Asset Allocation Asset allocation is the percentage holding in different asset classes (i.e. equities, bonds, property, etc.). It is used to determine the level of diversification in a portfolio. Cumulative Returns Cumulative return is the total growth experienced over the period measured. Distributions The income that is generated from an investment and given to investors through monthly, quarterly, bi-annual or annual distribution pay-outs. Diversification This is a strategy designed to reduce risk within a portfolio by combining a variety of investments (or asset classes) such as equities, bonds, cash or property, which are unlikely to all move in the same direction at the same time. This is designed to reduce the risk (and protect against capital losses) within a portfolio. Diversification allows for more consistent performance under a wide range of economic conditions as it smoothes out the impact of negative market events. The positive performance of some investments or asset classes should neutralize the negative performance of others. Financial Instruments Derivatives also known as financial instruments (such as a future, option, or warrants) whose value derives from and is dependent on the change in value of an underlying asset (such as a commodity, currency, or security) to protect against risk (capital losses). Fund Objective The fund objective is the portfolio's core goal. Fund Strategy The fund strategy is the way that the fund is managed to achieve the fund objective. Information Ratio The Information Ratio measures the market risk-adjusted performance of an investment or portfolio. The greater a portfolio's Information Ratio, the better its risk-adjusted performance has been compared to the market in general. Collective Investment Schemes Collective Investment Schemes (CIS) (also called unit trusts) are portfolios of assets such as equities, bonds, cash and listed property, in which investors can buyunits. They allow private investors to pool their money together into a single fund,thus spreading their risk across a range of investments, getting the benefit ofprofessional fund management, and reducing their costs. Quarterly Commentary The Islamic Balanced SCI Fund (“Fund”) realised a total return of +3.3% for the quarter to the end December 2020, behind its benchmark’s (average of Shari’ah General Balanced Funds with a 1-year track) return of +5.4%. This brings the one-year performance of the Fund to +2.7% (net of fees) versus the benchmark performance of +5.1%. The main contributors to the outperformance of the Fund over the longer-term have been its actively managed asset allocation. The Fund’s absolute returns were aided by its allocation to Sukuks. Sukuks are Shari’ah-compliant income instruments. The main contributors to the performance of the equity component of the fund over the longer term have been its exposure to the platinum and gold counters as well as its investment in the Islamic Global Equity fund. The main detractors from long-term performance have been the funds exposure to SA-focused industrial shares, largely small- and mid-cap in nature. These companies have been more heavily impacted by the decline in economic outlook due to the Covid-19 pandemic. Portfolio Manager Terence Craig B Bus Sc (Hons), CA (SA), CFA Andrew Bishop B Bus Sc (Hons), CA (SA), CFA Element Investment Managers (Pty) Ltd (FSP) License No. 663 Physical Address: 405 Manhattan Place, 130 Bree Street, Cape Town, 8000 Postal Address: P.O. Box 13, Cape Town, 8000 Tel: +27 (21) 426 1313 Email: info@elementim.co.za Website: www.elementim.co.za Manager Information Sanlam Collective Investments (RF) (Pty) Ltd Physical Address: 2 Strand Road, Bellville, 7530 Postal Address: P.O. Box 30, Sanlamhof, Bellville, 7532 Tel: +27 (21) 916 1800 Email: service@sanlaminvestments.co.za Website: www.sanlamunittrusts.co.za Trustee Information Standard Bank of South Africa Ltd Tel: +27 (21) 441 4100 Email: compliance-sanlam@standardbank.co.za Market Capitalization Market capitalization is the total value of the issued shares of a publicly traded company; it is calculated by multiplying the share price by the number of shares in issue. Maximum Drawdown The maximum drawdown measures the highest peak to trough loss experienced by the fund. Participatory Interests When you buy a unit trust, your money is pooled with that of many other investors. The total value of the pool of invested money in a unit trust fund is split into equal portions called participatory interests or units. When you invest your money in a unit trust, you buy a portion of the participatory interests in the total unit trust portfolio. Participatory interests are therefore the number of units that you have in a particular unit trust portfolio. Sharpe Ratio The Sharpe Ratio measures total risk-adjusted performance of an investment or portfolio. It measures the amount of risk associated with the returns generated by the portfolio and indicates whether a portfolio’s returns are due to excessive risk or not. The greater a portfolio’s Sharpe ratio, the better its risk-adjusted performance has been (i.e. a higher return with a contained risk profile, where the portfolio manager is not taking excessive risk to achieve those returns). Standard Deviation Standard deviation (also called monthly volatility) is a measure of how much returns on an investment change from month to month. It is typically used by investors to gauge the volatility expected of an investment. Administered by
3. Element Islamic Balanced Sanlam Collective Investments Fund Minimum Disclosure Document As of 2021 /02/28 Additional Information All reasonable steps have been taken to ensure the information on this MDD is accurate. The information to follow does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium- to long-term investments. Please note that past performances are not necessarily a guide to future performances, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available on request from the Manager. Sanlam Collective Investments (RF) Pty Ltd, a registered and approved Manager in Collective Investment Schemes in Securities. Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained on request from the Manager, free of charge. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of the portfolio and the investor will differ depending on the initial fees applicable, the actual investment date, and the date of reinvestment of income as well as dividend withholding tax. Forward pricing is used. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The performance of the portfolio depends on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Lump sum investment performances are quoted. The portfolio may invest in participatory interests of other unit trust portfolios. These underlying funds levy their own fees, and may result in a higher fee structure for our portfolio. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The Manager may borrow up to 10% the market value of the portfolio to bridge insufficient liquidity. The fund may from time to time invest in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. Management of the portfolio is outsourced to Element Investment Managers (Pty) Ltd, (FSP) Licence No. 663, an Authorised Financial Services Provider under the Financial Advisory and Intermediary Services Act, 2002. Sanlam Collective Investments (RF) (Pty) Ltd retains full legal responsibility for the conamed portfolio. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments scheme. Sources of Performance and Risk Data: Morningstar Direct, INET BFA and Bloomberg. The risk free asset assumed for the calculation of Sharpe ratios: STEFI Composite Index. The highest and lowest 12-month returns are based on a calendar year period over 10 years or since inception where the performance history does not exist for 10 years. Obtain a personalised cost estimate before investing by visiting www.sanlamunittrustsmdd.co.za and using our Effective Annual Cost (EAC) calculator. Alternatively, contact us at 0860 100 266. Administered by