Lifestyle Index 40 Plus Portfolio As at 30 September 2014 Portfolio objective Performance The Portfolio aims to track the performance of the FTSE/JSE Top 40 companies over time. The investments included in the portfolio are selected from the FTSE/JSE Top 40 Index, which is ranked by market capitalisation and value traded. The graph below shows what R100, invested in this portfolio 5 years ago, is worth today. R R 214.00 Portfolio facts Lifestyle Index 40 Plus Portfolio 214 194 Portfolio manager Inflation Patrick Mamathuba 174 Management company STANLIB Portfolio type Single Manager Launch date February 1994 Portfolio size R 331 854 892 Benchmark 100% FTSE/JSE Africa Top 40 Index 154 134 Jun 14 Apr 14 Aug 14 Feb 14 Oct 13 Dec 13 Jun 13 Aug 13 Apr 13 Oct 12 Feb 13 Dec 12 Jun 12 Aug 12 Apr 12 Oct 11 Dec 11 Feb 12 ` Jun 11 Apr 11 Feb 11 Oct 10 Dec 10 Jun 10 Apr 10 Aug 10 Feb 10 Oct 09 Dec 09 94 Aug 11 114 Returns Single Premium 1 Year The performance of the portfolio benchmark over time provides the basis against which the portfolio manager will be measured. Please consult the current portfolio grid for any current restrictions on the availability of portfolios for new business and switching. Liberty may, from time to time, conduct securities lending activities on the assets which back these policyholder benefits. All 3 Years Recurring Premium (RP) 5 Years 1 Year 3 Years RP Since 5 Years Inception Taxed 12.05% 17.64% 13.93% 5.80% 15.11% 13.77% n/a Retirement Annuity 12.05% 18.02% 14.30% 5.80% 15.25% 14.01% n/a Inflation 6.42% 5.92% 5.33% 6.88% 6.22% 5.90% The above investment returns are after four-fund tax has been deducted but before any Liberty charges have been deducted, with applicable distributions reinvested on a sell-to-sell basis. Investment returns for periods less than one year are not annualised. 'Inception' above refers to the portfolio's inception. provided to its policyholders. Who should invest in this portfolio Sector Allocation This portfolio is suited to the investor who: - wants to participate in the growth of the 40 largest equities on the Johannesburg Securities Exchange (JSE) as measured by market capitalisation (FTSE/JSE Africa Top 40 Index) - has an investment horizon of at least 10 years - is prepared to accept significant fluctuations in returns from year to year Consumer Goods Basic Materials Financials Consumer Services Telecommunications Oil & Gas Industrials Health Care 8.4% Risk profile 6.2% 4.2% 3.4% 11.3% Conservative Moderate 26.4% Aggressive No adjustment has been made to the above risk profile for the guaranteed version of the portfolio. If a guarantee is selected on the portfolio, then the risk profile will be lower, provided the investor remains in the guaranteed portfolio for the duration of its guaranteed term. 17.4% 22.8% What return is the portfolio designed to achieve? Expected return* CPI + 4.5% Investment horizon 10 years The Consumer Price Index (CPI) Measures the increase in the price of the basket of goods an average family would buy over a specified time period. *Expected return is after the deduction of tax but before any Liberty charges and fees. Top ten equity holdings BHP Billiton Plc 12.14% Sabmiller Plc 11.18% Compagnie Financiere Richemont 8.39% Quarterly commentary (2nd quarter) Domestically, South growth estimate for 2014 has been revised downwards given lack of growth in exports coupled with weakening consumer and business confidence that has dampened the pace of South economic recovery. In spite of this the equity markets delivered strong performance with the JSE All Share Index experiencing another phenomenal quarter returning 7.2% during the period, surpassing the 4.3% of Q1. The star performer in Q2 has been the JSE Industrial Index, up an impressive 8.3% after just 0.8% in Q1. The Financial Index did 6.8% versus 6.1% in Q1 and the Resources Index just 2.6% after an exceptional 10.6% in the first quarter. Domestic equity markets continued to be buoyed by Naspers exceptional performance through the period, as well as ongoing outperformance of some of the larger rand hedge stocks. Market participants are however cautioned that current domestic equity valuations are overextended and that the positive returns seen in previous months may be more muted going forward. Naspers Ltd -N- 8.18% MTN Group Ltd 7.60% Sasol Ltd 6.16% Anglo American Plc 6.06% British American Tobacco Plc 3.52% Standard Bank Group Ltd 2.86% Old Mutual plc 2.81% 0% 2% 4% 6% 8% 10% 12% 14% Info & Queries: [email protected] Disclaimer The information contained in this document does not constitute advice by Liberty. Whilst every attempt has been made to ensure the accuracy of the information contained herein, Liberty cannot be held responsible for any errors that may occur. Past performance cannot be relied on as an indicator of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by inflation levels in the economy and prevailing market conditions. The performance of the portfolio benchmark over time provides the basis against which the portfolio manager will be measured. Please consult the current portfolio grid for any current restrictions on the availablity of portfolios for new business and switching. All portfolio data shown is based on the untaxed fund class. Source: Liberty, STANLIB. Liberty Group Limited - an Authorised Financial Services Provider in terms of FAIS Act (Licence no. 2409).