July 2012

www.ashburton.comA member of the FirstRand Group

As market conditions continue to challenge, we pace ourselves for the journey ahead.

Perspective

Recovering from the crisis: a marathon not a sprint

WELCOME

Rings of fate

Ashburton’s MD, Peter Bourne, relates to the Olympics.

| OUTLOOK

Still challenging

As the crisis continues, we remain cautious.

| FOCUS

China

Opportunities in trade, infrastructure and hydro-power.

| THE US

So far, so good

The case (and caveats) for investing in the US.

| NEWS

Latest news Sponsored summer events and team developments.

| PERFORMANCE

Our latest performance figures as at 29 June 2012.

ContentsContributors

Tristan Hanson

Tristan is Ashburton’s Head of Asset Allocation, with responsibility for Ashburton’s Multi Asset Funds, Total Return Bond Funds and related research. He holds a Masters in Public Administration in International Development (MPA/ID) from Harvard University’s Kennedy School of Government and the Securities and Investments Diploma.

Jonathan Schiessl

Jonathan Schiessl is Ashburton’s Investment Manager responsible for the Japan and Chindia Equity Funds. He joined Ashburton in 2000 and has 16 years experience in the investment industry. He obtained a Social Science honours degree, specialising in Economics, at the University of Hertfordshire.

Veronika Pechlaner

Veronika Pechlaner is an Investment Manager in the Global Equities team with direct responsibility for Ashburton’s global equity funds. She also works closely with Investment director Nick Lee on the Global Equity Portfolio offering. Veronika has been a CFA charterholder since 2005. She holds a Master degree in Finance and International Management from the University of Innsbruck (Austria, E.U.).

WelcomeAshburton’s Managing Director, Peter Bourne, considers 03 the key qualities needed to be an Olympic winner and how strategic changes are being made to back our winners and enhance performance.

Global OutlookDark clouds with some bright spots 04 By Tristan HansonWith nothing to suggest that the crisis will be resolved any time soon, we consider the tactical and medium-term opportunities.

The US Equity MarketSafe haven or heading for a cliff ? 06 By Veronika PechlanerSo far this year has been positive for US equities, but continuation relies on domestic politics and the fortune of other investment regions.

Regional FocusYunnan Province, China: the gateway to South-East Asia 08 By Jonathan SchiesslThere are reasons to be optimistic about China, if the province of Yunnan is anything to go by, as our lead Asian equities manager discovers.

NewsAshburton sponsors sunset concerts and golf competition. 10 Plus, changing faces in the portfolio services team.

PerformanceOur latest fund performance figures as at 29 June 2012. 11ContactsDetails for our contact offices in Jersey, South Africa and the UK. 12

there is enormous anticipation here. Did you

know that Finland is the most successful country

ever, based on total medals per population?

But in absolute terms, the USA is easily the

most successful; it has won more than triple the

number of gold medals and more than twice the

number of total medals than its nearest rival. So

it seemed appropriate to ask Veronika Pechlaner,

Ashburton’s Global Equity Manager, whether the

US will also continue to dominate headlines in

market terms during the rest of 2012.

Here at Ashburton, we are undertaking a number

of strategic changes to ensure we are positioned

for growth and delivering the performance our

clients expect. Our emphasis remains firmly

on developing our core and proven multi asset

solutions, and focusing our equity range to reflect

our emerging market heritage and growing client

demand for global equity product. The first phase

of these changes, of which shareholders have

been advised, involves the closure of a limited

number of smaller funds and will be completed

in early September. Our next priority is to ensure

that the remaining funds are efficiently structured

and mandated to compete in this challenging

environment. This aspect of our strategy is in the

planning phase and I look forward to being able

to share more on this in the coming months.

In summary, our strategy entails backing our

winners and making sure they are running in the

right races. It promises to be exciting.

“Citius, Altius, Fortius”

Welcome

Our theme this quarter was always going to be the Olympics; how could we resist? As I write, London 2012 is just 16 days away and Jersey is beginning to be caught up in the excitement. The Olympic torch arrives here this week as part of its 70 day journey around the United Kingdom and Channel Islands and will be a wonderful taste of what lies ahead. The motto of the Games is “Faster, Higher, Stronger”; we can all relate to the simplicity and appeal of this robust combination of adverbs. And for a few weeks at least, we have an opportunity to take time away from the markets to enjoy the highs and lows of sporting success and failure that lie ahead.

Regards

Peter BourneManaging Director

The legend of Marathon has it that a runner

ran 26 miles to Athens to deliver a message of

victory over the Persians, only to expire from

exhaustion immediately afterwards. European

and global policymakers must be hoping for a

different outcome in Greece this time around,

although the journey will be no less arduous and

take considerably longer than the feat of our

hero back in 490 BC. Ashburton’s Head of Asset

Allocation, Tristan Hanson, neatly captures the

challenges presented by this particular marathon

course in his Global Outlook article.

Just as symbolic for markets today are the five

interlinked and coloured rings, symbolising the

continents represented in the Games. The world

has become a global market place and the links

between West and East have grown by as much,

and as fast as, the gap between developed and

emerging world has shrunk. Turning the tables

somewhat and ahead of the expected influx

of international visitors to London, Jonathan

Schiessl, Head of our Asian Equities team,

shares his experiences of a recent trip to a tourist

destination within China.

The medal tally is almost a bigger story than

individual success, particularly as the Games

progress. Great Britain has set ambitious targets;

Rings of Fate

The world has become a global market place and the links between West and East have grown by as much, and as fast as, the gap between developed and emerging world has shrunk.

| 2 | 3 |WELCOME | OUTLOOK | THE US | FOCUS | NEWS | PERFORMANCE

WELCOME | OUTLOOK THE US | FOCUS | NEWS | PERFORMANCE

The correction witnessed since March has been especially severe among commodities and emerging market equities, reflecting increased concern over Chinese growth as well as the headline-grabbing crisis in Europe. Meanwhile, despite low yields, global bonds have continued to deliver positive returns, with corporate and emerging market bonds outperforming. Accordingly, yields on global government bonds have plumbed new lows in recent months.

While the first few months of the year have produced some wild swings in markets, little has been resolved in terms of the major issues worrying investors as we entered the year. The European sovereign debt and banking crisis remains far from over; concerns over the Chinese growth outlook have grown rather than receded and the sustainability of US growth remains under question following recent data disappointments and the looming fiscal cliff at the end of the year. Economist expectations for growth in global GDP and corporate profits have been lowered over the course of the year so far.

At the European Summit at the end of June, measures were announced that have given markets some early cheer (in particular, moves towards a banking union and the direct recapitalisation of banks, as well as possible bond market intervention under easier terms). However, there is nothing to suggest that the crisis will end anytime soon, something we have argued consistently. We wrote last October that “in the absence of an unlimited ECB commitment to purchase sovereign debt (which we are repeatedly told is not on the cards) or fiscal union (which is years away, if ever), there is no magic solution to this crisis”. The same applies today. For a resolution to this crisis that does not end with a break-up

As we anticipated in January’s edition of Perspective, the first six months of 2012 have seen a continuation of the volatile market conditions experienced in recent times. Overall, global equities have delivered a total return of 6.2%, but with strong gains in the first quarter followed by weakness in the second.

Global OutlookDark clouds with some bright spots

Written by Tristan HansonHead of Asset Allocation

PPP weights used for aggregated regions.Source: Ashburton

Source: Deutsche Bank, IBES, Datastream, MSCI indices unless stated otherwise.

Consensus Economic Forecasts

Consensus Earnings Growth and P/E valuations

of the euro-area, it is likely to require debt monetisation or mutualisation. In the meantime, the muddle-through cycle of panic followed by short-term policy response continues until the next flare-up.

Concerns over China – and emerging markets (EM) more widely – increased over the second quarter, as investors continue to be frustrated as they await a recovery in growth. More broadly, there is a growing realisation that the growth/inflation trade-off in countries such as China and India is less bright than was hoped for a few years ago: 10% non-inflationary growth is likely in the past. Nevertheless, policy is being eased in China and we expect this to contribute to a cyclical recovery in growth during the second half of this year. Lower commodity prices and a drop in inflation provide room for further policy support.

As was the case last year, sentiment to the US economy picked up early in the year but a recent string of weaker-than-expected data and the prospect of the approaching fiscal cliff (automatic tax hikes and government spending cuts in 2013 under current law) have

renewed concerns over the durability of US growth. How this problem is addressed will likely depend on the outcome of US elections in November, with the Presidential election at this stage too close to call. Notwithstanding the fiscal cliff, the immediate risks to the US economy are less than in Europe given a stronger financial system, a nascent recovery in housing and modest improvements in credit and labour markets. Should the growth outlook deteriorate materially, or the European crisis spiral out of control, further quantitative easing is likely from the Federal Reserve.

All this suggests that dark clouds will continue to hang over the global economy. However, there are some possible bright spots. First, expectations for China are now much more realistic and if the government’s easing measures are successful, growth should rebound before long. Second, the oil price has fallen considerably, which provides a significant boost to the US consumer and other oil-importing countries. Third, monetary policy is likely to be eased further on a global basis, unless global growth starts to turn around.

Dark clouds with some bright spots

| 4 | 5 |

GDP Growth (%) Inflation (%)

2011 2012 2013 2011 2012 2013

World (PPP) 3.7 3.2 3.6 4.4 3.5 3.6

Developed Markets 1.3 1.3 1.5 2.7 1.8 1.6

Emerging Markets 6.3 5.2 5.7 6.3 5.2 5.5

US 1.7 2.2 2.1 3.1 1.9 1.8

Euro area 1.5 -0.5 0.4 2.7 2.2 1.6

China 9.2 8.0 8.3 5.4 3.4 4.1

Japan -0.7 2.8 1.4 -0.3 0.1 0.0

Germany 3.1 0.8 1.3 2.5 2.1 1.6

UK 0.7 0.0 1.7 4.5 2.7 2.0

We, therefore, expect market conditions to remain challenging. Equities are priced attractively relatively to bonds and cash and are likely to deliver superior returns over the medium-term. But in an environment of worsening macro momentum which is subject to considerable risks – including geopolitics – equities also face downside risks in the short-term. Within fixed income markets, we view yields in the perceived ‘safe-haven’ government bond markets (US, Germany, Japan and UK) as unattractive, even if we expect overnight interest rates to remain extremely low for some time. We do, however, see better value in corporate bonds and select emerging markets, where bond markets are benefiting from declining inflation. In terms of currency markets, we currently have a preference for the US dollar over the British pound or euro; while we also think several emerging market currencies are attractive such as the Mexican peso, Malaysian ringgit and Korean won.

Given our macro views, we maintain a cautious stance at present in our Asset Management and Multi Asset Funds. We will continue to seek out both tactical and medium-term opportunities to generate returns for our clients, while at the same time managing downside risk. In difficult conditions over recent years we have generated positive returns with below-average volatility and we will strive to do the same going forwards.

Earnings Growth (%) P/E ratio

2012 2013 2011 2012 2013

World 9.9 12.8 13.1 11.9 10.6

US 8.8 12.9 14.1 12.9 11.4

Europe 2.8 11.9 10.5 10.2 9.1

Japan 78.9 15.9 20.6 11.5 10.0

Emerging Markets 11.7 11.8 11.2 10.0 9.0

China (IBES) 21.7 17.2 13.8 11.2 9.6

India (IBES) 15.8 15.3 13.6 11.5 9.9

Brazil (IBES) 5.6 15.4 12.5 11.8 10.2

Notwithstanding the fiscal cliff, the immediate risks to the US economy are less than in Europe given a stronger financial system, a nascent recovery in housing and modest improvements in credit and labour markets.

The US equity market: safe haven or heading for a cliff ?

The US as safe haven: so far so good…

US equity markets have markedly outperformed Asia and the troubled European markets in recent years, helped by its “safe haven” status, with the US being seen by many benchmark-oriented global investors as the default region in which to invest.

Not only do investors consider the US more isolated from slower Chinese growth and European contagion, with “only” around a third of the companies’ revenues included in the S&P coming from outside North America. Also, US investors had reason to cheer about encouraging domestic news late last year and early this year as US employment and housing data showed good improvement, although arguably flattered by one of the warmest winters on record. Together with the potential for a “feel-good” factor in the run up to the US presidential elections in November and continued hope pinned on the Federal Reserve to come to the rescue with further monetary easing in case of an economic deterioration, this made for an easy choice - so far.

Valuation attractive, but acceleration in earnings growth optimistic

However, things could become less straightforward in future. After the last three years of recovery US industrial activity and corporate margins are back to pre-crisis levels, while employment is still far away from previous highs. With a strengthening US dollar as headwind to future corporate earnings and further labour and capital investment needed

Doom and gloom has been building in financial markets recently as the European debt crisis and fears of a steeper than anticipated Chinese slowdown grab the news headlines. Meanwhile, the US equity market has been remarkably robust. The S&P 500 Index is up in the mid single digits year-to-date, outperforming most other geographies as the US market seems the default place to be during volatile times. However, those who are hoping for a strong economic acceleration into next year, possibly helped by positive sentiment ahead of the US presidential election, could be expecting too much.

Recent demand indicators point to increasing topline risks, even in the US economy.

Written by Jonathan SchiesslWritten by Veronika Pechlaner, Investment Manager, Global Equities

WELCOME | OUTLOOK | THE US | FOCUS | NEWS | PERFORMANCE

| 6 | 7 |

to support potential growth, it could be a tough ask to increase margins even further. Equally, recent demand indicators point to increasing topline risks, even in the US economy, with consumer confidence hitting a five month low in June and unemployment remaining stubbornly high at above eight percent.

This could spell trouble ahead as the market, until very recently, widely assumed an acceleration of earnings growth going into next year. In the absence of such an acceleration, even relatively attractive forward valuation multiples would provide little support, especially as the US remains one of the markets where investors seem to pay up for future earnings growth as indicated in a relatively high PEG (Price/Earnings to growth) ratio outlined in the chart below.

US ghosts of politics past: fiscal cliff and long-term debt sustainability

Worryingly, the potential for further political procrastination with regards to US indebtedness as we approach 2013 could hit confidence and hold back employment and capital spending even further. After the elections US politicians sometime in early 2013 will have to return to the questions of the so-called “fiscal cliff” which is commonly referred to as the prospect of fiscal stimulus measures being reversed next year. The fiscal stimulus potentially removed could amount to up to 5% of US GDP in a worst case scenario and risks to provide a significant headwind to US GDP growth in 2013.

Beyond the issue of the near-term fiscal deficit, which will have to be handled carefully to avoid a disastrous impact on an economy still growing below par, US politicians will also need to address longer term debt sustainability. After all, the US Debt/GDP ratio remains even above that of the Eurozone. This will require major structural decisions on both the tax system and social entitlements on which the two major US parties fundamentally disagree at present. A decisive victory for any of the parties in the upcoming elections could alleviate a deadlock and provide increased visibility, however until businesses have more certainty the potential damage on confidence and thus the economy remains a risk hard to quantify.

It’s all relative - to the rest of the world

Investors that are overweight the US market should be aware of the above risks involved, with the forthcoming results season providing a welcome reality check on the scarce visibility available. With all of the major regions facing issues, albeit of a different nature as the US and Europe have to address their debt issues while China is trying to rebalance its economy towards the consumer, the reward for US equity investors will not only depend on domestic politics but also on the fortune of the other regions. After all there is more reward, arguably at higher risk, attached to equities in emerging markets, but clearly it will take an improvement in the global outlook for growth to tempt investors away from what they know and love at present.

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The fiscal stimulus potentially removed could amount to up to 5% of US GDP in a worst case scenario and risks to provide a significant headwind to US GDP growth in 2013.

2012E 2013E forward PEG ratio

Consensus earnings growth and PEG ratio for different equity indexes

S&P 500

16%

14%

12%

10%

8%

6%

4%

2%

0%

1.2

1.0

0.8

0.6

0.4

0.2

0.0

EuroStoxx 50 FTSE All-Share MSCI Asia ex Japan

So

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F W

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Out

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Res

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Government debt levels as % of GDP: Japan and US above the Eurozone

IMFforecast

180

160

140

120

100

80

60

40

20

0

80 84 88 92 96 00 04 08 12 16

JapanUSUKEuro areaGermany

%GDP

After the elections US politicians sometime in early 2013 will have to return to the questions of the so-called “fiscal cliff ”...

So, aside from actually being able to breathe the air freely, why on earth did I choose Yunnan as an investment destination? There are three main reasons to visit this province: 1) to review its strategic location, 2) to see if China’s much discussed push from the coast to inland Provinces is actually happening and 3) to see if there were signs on the ground of an easing in government policy in response to the slowdown in China.

Strategically, Yunnan is one of the most important provinces in China. Recent events in Burma make this even more so. Whilst we are in the very earliest days of Burma re-entering the global economy, and much could still go wrong, there is no doubt that of the country’s near neighbours, it will likely be China that will garner the lion’s share of economic benefit. But Yunnan is not just about Burma. Trade with

Yunnan Province, China: gateway to South-East Asia

Investment opportunities in Yunnan

Regional Focus

Fig 1. Yunnan Province position

One of the more important aspects of being an investment manager is the need to regularly get out from behind the computer screen and go to “kick the tyres”. As a manager with responsibility for equities in Asia, this sounds a rather enticing prospect. I can, however, advise that for the most part, this side of the job is highly unglamorous - most time is spent in meeting rooms and the inside of taxis. Pollution, traffic jams and the squash of humanity generally overwhelm the traveller to most large Asian cities, so it was with some excitement that I recently visited a province in China that I had never been before - Yunnan province in the far south-west of the country.

There are several reasons to visit Yunnan, most of them unrelated to investment purposes. The province is known within China as the gateway to south-east Asia, owing to the fact it borders Burma, Laos and Vietnam (as well as Tibet to the north). It has a population of 46 million. It is regarded as a backward province, with its mountainous topography and thick jungle cover hindering extensive infrastructural development and therefore industrialisation. Agriculture/biology, mining, tobacco and tourism are the mainstays of the economy, and it is China’s most bio-diverse province. Low pollution (thankfully most power is generated from hydro-electric projects) and a significant number of tourist attractions (including the much fabled Shangri-La) make this a tourist mecca within China.

WELCOME | OUTLOOK | THE US | FOCUS | NEWS | PERFORMANCE

Written by Jonathan Schiessl, Investment Manager, Asian Equities

C h i n aYunnan Province

| 8 | 9 |

In addition, the province has huge potential

for hydro-power, with six major rivers running

through it. It already has the highest ratio of

hydro electric power production in China and,

with a number of new projects underway will

(politics aside), provide the Province and its

neighbours with cheap, green energy.

So the final question is how has Yunnan been

doing in the recent Chinese slowdown that we

have all been worrying so much about?

On the surface, any visitor here would be right

to respond ‘what slowdown?’ Booming trade

and tourism together with heavy investment in

critical infrastructure has meant the Province

has been registering fast GDP growth (up

13.7% in 2011). However, problems do exist

and are beginning to get rather serious.

Perhaps the greatest issue Yunnan faces

relates to local government financing and real

estate, an issue across all of China today.

Whilst many infrastructure projects that are

currently underway are financed or approved

by the central government, there are also

many that were started and financed locally.

For example, Kunming (population 9m) started

building a massive urban rail network as part

of the 2009 recovery package. Whilst no-one

can doubt the need for this project, work has

virtually come to a standstill as banks that lent

to the project had been told to stop lending to

local governments as part of last year’s policy

tightening measures. This policy has yet to

loosen.

So with no access to financing from banks, the

other main source of taxes is from land sales.

The news on this front is not helpful either. After

strong land sales over the last couple of years,

the market has come to a standstill as the

central government attempts to clamp down

on the property sector. Huge land investment

by property developers over the last two years

has meant a build up of projects that will hit

the market next year. And with cash flows

being hit by falling sales, property companies

are not buying new landbank. So unless local

governments can revive land sales, or are given

new access to capital it is reasonable to expect

some infrastructure spending will slow, perhaps

quite abruptly, into 2013.

Of course the market has been focused on

a slow-down in China for some time, just

look at the performance of Chinese stocks

for evidence. Before my trip I was fairly

confident that China would achieve a soft-

landing, with data starting to improve later

this year. After seeing the issues faced by

Yunnan province, which has been one of the

best performing provinces in China, I have

become more convinced that aggressive policy

action is needed. A dramatic slow-down in

local government funded infrastructure and

construction expenditure will render growth

targets meaningless, and that is without

considering the impact from the European

crisis.

The challenges facing Yunnan

The good news is that the central government

appears to be responding to the situation on

the ground. Since returning from China, policy

has been further loosened and data should

hopefully start showing a recovery (but nothing

as dramatic as 2009). Unlike most Western

governments, China still has plenty of policy

options.

China is here, and it’s here to stay. The growth

model has to change, and growth will certainly

slow going forward. But the overall evidence

from one medium sized province in south-west

China fills me with optimism that the China

story is not finished. Yunnan is beautiful and

brimming with opportunity, and I shall certainly

be going back.

Reasons for optimism

Laos and Vietnam has been growing fast, but perhaps of more significance is the booming trade with Thailand.

I visited a number of traders in Kunming, Yunnan’s capital, who specialised in trade with Yunnan’s neighbours. The most profitable trade route was with Thailand, due to its higher per-capita income. Most exports were manufactured goods and agricultural products, whilst imports were predominantly tropical fruits and timber. Interestingly, trade to Burma was still relatively small, focused on steel products and cement, with timber and Jade back into China. The main hindrance to increasing trade in the short-term was finance: none of the traders we met offered credit - all deals were cash based. However, most were optimistic as to the future.

Turning to the role of the central government in aiding local businesses, again most traders were actually reasonably happy with the efforts of the central government. There has been a real push over the last 3 or 4 years to develop Yunnan’s infrastructure. The focus is on three main areas: transport infrastructure, hydro-power and tourism. Unlike other parts of China, there has been no let-up in infrastructure spending here (fixed asset investment was up 27.4% in 2011). There are ambitious plans to construct new rail routes to Vietnam, Laos and Burma, along with new highways linking Bangkok to Kunming. The central government has also helped the funding of a huge new airport complex just outside Kunming (and in the process closing down the old historical Wujiaba airport). It will eventually open links to Asia, Europe and the Americas, and is anticipated to be the fourth largest hub in China.

Fig 2. Kunming’s new international airport

Huge land investment by property developers over the last two years has meant a build up of projects that will hit the market next year.

In what has become an annual event, the last weekend in June saw the National Trust Sunset Concerts take place in St. Ouen, Jersey, drawing over 4200 people over two nights.

Sponsored by Ashburton, this year’s acts were local blues and harmonica artist Giles Robson & the Dirty Aces and Skatronics Jamaica, who brought a blend of ska, jazz and reggae music to the enthusiastic crowd. Donations and parking charges were collected for the National Trust Birds on the Edge project, which is part of their Coastline Campaign, raising £7738.55.

The sun sets on another year of National Trust concerts

On 9th June, Ashburton sponsored the men’s AM/AM competition at La Moye Golf Club, Jersey. 96 golfers took part in what some called “the best day’s golf they have had at La Moye”!

The competitive element was incentivised by fantastic prizes, with one client getting a hole in one and winning a four day trip for two to a top golfing destination in Portugal.

The Ashburton cricket team won the Jersey Evening Post KO Cup for the first time in their 25 year history this month, beating Mavericks by 60 runs in the final. Well done team!

Ashburton sporting successes

Cricket champions

Nick Lee has assumed overall responsibility for Ashburton’s portfolio services, taking over the reins from Dennis Phillips, who retires from Ashburton in July. Nick joined Ashburton in 1988 and has 32 years’ experience in the investment industry.

Nick Lee is joined by Nick Skiming, who also moves across to bolster the team and to support the exciting plans for Ashburton’s portfolio services. Nick Skiming brings a great deal of experience in global equity markets. In returning to portfolio management, Nick will be able to leverage the 14 years’ private client portfolio management experience he gained before joining Ashburton.

Peter Bourne said: “The transfer of two of our most senior investment professionals to the portfolio management division clearly demonstrates the depth of Ashburton’s investment team capabilities and our commitment to the continuity of service for our clients.”

Succession for the portfolio services team

WELCOME | OUTLOOK | THE US | FOCUS | NEWS | PERFORMANCE

News

Pho

to: J

EP

From left: Nick Lee, Nick Skiming.

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WELCOME | OUTLOOK | THE US | FOCUS | NEWS | PERFORMANCE

Performance as at 29 June 2012

† These funds are under review for closure in September 2012. Source: Morningstar Direct as at 29/06/2012.NB: As from January 2011, all Ashburton Fund benchmark performance is calculated using a Total Return (TR) rather than a Capital Return (CR) basis, bringing it into line with industry standards.

FOR PROFESSIONAL ADVISERS ONLY. Issued by Ashburton (Jersey) Limited. Registered Office 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. Regulated by the Jersey Financial Services Commission. Figures are calculated on a bid to bid price basis, ignoring initial charge, with gross income reinvested. The value of investments, and the income from them, can go down as well as up, is not guaranteed, and you could receive back less than you invested. This could also happen as a result of changes in the rate of currency exchange, particularly where overseas securities are held. Past performance is not necessarily a guide to future performance. If you undertake investment business with a non-UK firm, you will be excluded from the benefit of the rules and regulations made under the UK’s Financial Services and Markets Act 2000, includ-ing the UK Financial Services Compensation Scheme. Approved for issue in the UK by FirstRand Bank Limited (London Branch) whose Registered office is at 20 Gracechurch Street, London EC3V 0BG and which is authorised and regulated by the UK Financial Services Authority.

10 year

60.67

55.90

60.14

55.90

57.18

55.19

-

-

-

-

-

-

-

-

-

-

-

-

-

-

26.04

69.78

36.93

74.69

41.97

76.08

-

-

-

-

67.44

22.96

-

-

-

-

-

-

-

-

-

-

-

Multi Asset Funds

Sterling Asset Management - Accumulating*

Sector Average

Sterling Asset Management - Distributing*

Sector Average

Dollar Asset Management - Accumulating*

Sector Average

Euro Asset Management - Accumulating*

Sector Average

Euro Asset Management - Distributing*

Sector Average

Multi Asset Cautious Fund GBP

Sector Average

Multi Asset Balanced Fund GBP

Sector Average

Multi Asset Balanced Fund USD

Sector Average

Multi Asset Balanced Fund EUR

Sector Average

Multi Asset Aggressive Fund GBP

Sector Average

Equity Funds

Global Sterling International Equity Fund PC

MSCI World TR GBP

Global Dollar International Equity Fund PC

MSCI World TR USD

Americas Equity Fund PC

MSCI North America TR USD

Japan Equity Fund PC

MSCI Japan TR USD

Chindia Equity Fund

Chindia Benchmark

European Equity Fund PC

MSCI Europe TR USD

Feeder Funds

Americas Equity Fund - £ Feeder PC

Japan Equity Fund - £ Feeder PC

Chindia Equity Fund - £ Feeder PC

European Equity Fund - £ Feeder PC

Fixed Income Funds

Sterling Total Return Bond Fund PC

JP Morgan Global GBI Hedged GBP TR

Dollar Total Return Bond Fund PC

JP Morgan Global GBI Hedged USD TR

Money Market Funds

Sterling Money Market Fund

Dollar Money Market Fund

Euro Money Market Fund

YTD

3.05

2.30

2.66

2.30

2.28

2.68

3.20

2.71

2.84

2.71

1.23

2.76

0.17

2.30

-0.11

2.68

0.60

2.71

1.60

2.90

2.79

5.32

3.94

6.29

3.88

8.43

1.99

3.23

0.04

6.92

2.64

5.36

2.05

0.58

-1.28

-1.37

2.68

2.31

2.03

2.08

0.27

0.02

0.12

1 year

0.81

-1.66

0.12

-1.66

-0.50

-5.13

3.20

-2.00

2.18

-2.00

-0.49

1.91

-3.41

-1.66

-4.16

-5.13

-1.00

-2.00

-5.91

-3.66

-10.07

-2.16

-12.91

-4.41

-7.06

3.00

-10.45

-7.07

-30.21

-19.44

-7.60

-3.91

-5.22

-8.34

-28.30

-18.05

5.50

7.63

4.69

7.12

0.38

-0.01

0.58

% Growth 3 year

21.74

28.59

22.19

28.59

18.17

20.76

24.03

11.94

24.30

11.94

16.79

26.88

21.68

28.59

18.48

20.76

23.06

11.94

23.31

27.86

23.75

45.85

15.39

38.91

41.68

55.23

-

-

-2.20

14.05

32.50

28.70

49.44

-

4.00

25.09

-

-

-

-

1.53

0.20

1.17

5 year

16.93

6.43

17.25

6.43

8.62

0.65

11.35

-9.73

10.34

-9.73

7.73

9.14

7.34

6.43

1.40

0.65

-

-

0.47

3.74

-13.65

13.30

-26.41

-11.43

-10.08

1.41

-

-

-32.48

-3.59

-24.96

-25.36

11.66

-

-14.26

-11.04

-

-

-

-

9.81

4.54

7.45

Since Launch

246.07

287.97

270.77

294.64

203.50

171.20

49.52

29.86

38.05

11.31

15.28

16.78

17.31

17.73

18.13

17.14

0.94

-3.08

7.57

17.48

276.54

331.47

-5.18

14.81

87.59

149.04

7.98

3.19

-16.82

16.19

196.78

95.78

21.52

13.94

3.69

8.57

6.94

6.98

5.77

6.24

31.80

17.11

18.09

Launch Date

04/02/92

-

01/01/92

-

04/02/92

-

25/04/03

-

03/12/01

-

19/06/06

-

19/06/06

-

19/06/06

-

18/02/08

-

19/06/06

-

01/01/92

-

06/04/00

-

06/01/97

-

01/12/09

-

01/12/06

-

06/01/97

-

01/12/06

01/12/09

01/12/06

01/12/06

23/09/10

-

23/09/10

-

25/10/02

25/10/02

25/10/02

Yield (%)

n/a

-

0.87

-

n/a

-

n/a

-

1.23

-

0.85

-

0.29

-

0.64

-

0.19

-

0.25

-

nil

-

nil

-

nil

-

nil

-

nil

-

nil

-

nil

nil

nil

nil

2.18

-

1.84

-

0.25

0.01

0.14

| 10 | 11 |

JERSEY

Ashburton (Jersey) LimitedPO Box 23917 Hilary StreetSt HelierJerseyJE4 8SJ

Gavin FraserDirect dial: +44 (0)1534 512234Email: gavin.fraser@ashburton.com

Tom ZambonDirect dial: +44 (0)1534 512010Email: tom.zambon@ashburton.com

Kellie ChristianDirect dial: +44 (0)1534 512118Email: kellie.christian@ashburton.com

UK

London5th floor20 Gracechurch StreetLondon EC3V 0BGUnited Kingdom

Terry JamesDirect dial: +44 (0)207 939 1803Email: terry.james@ashburton.com

SOUTH AFRICA

JohannesburgGround Floor5 Merchant Place9 Fredman DriveSandton2146South Africa

David ChristieDirect dial: +27 (0)11 282 4435Email: david.christie@ashburton.co.za

Claire DaviesDirect dial: +27 (0)11 282 4592Email: claire.davies@ashburton.co.za

Eloise TrewinDirect dial: +27 (0)11 245 5040Email: eloise.trewin@ashburton.co.za

Cape TownThe Pavilion155 Campground RoadNewlands7700South Africa

Adam BenzimraDirect dial: +27 (0)21 673 3502Email: adam.benzimra@ashburton.co.za

DurbanBlock CTorino Court4 Crooked LaneHillcrest3610South Africa

Debbie MiskinDirect dial: +27 (0)31 560 7860Email: debbie.miskin@ashburton.co.za

Global Contacts

Issued by Ashburton (Jersey) Limited. Registered Office 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. The views expressed in this document represent the collective views of the Ashburton investment team and its external advisers, which will change with altering market conditions and may not necessarily be reflected in the composition of portfolios managed by Ashburton. The value of investments, and the income from them, can go down as well as up, is not guaranteed, and you could receive back less than you invested. This could also happen as a result of changes in the rate of currency exchange, particularly where overseas securities are held. Past performance is not necessarily a guide to future performance. Ashburton (Jersey) Limited and Ashburton Fund Managers Limited are regulated by the Jersey Financial Services Commission. Ashburton (Jersey) Limited is also registered as a Foreign Investment Services Provider in South Africa in accordance with Section 8 of the Financial Advisory & Intermediary Services Act 2002. If you undertake investment business with a non-UK firm, you will be excluded from the benefit of the rules and regulations made under the UK’s Financial Services and Markets Act 2000, including the UK Financial Services Compensation Scheme. Approved for issue in the UK by FirstRand Bank Limited (London Branch) whose Registered office is at 20 Gracechurch Street, London EC3V 0BG and which is authorised and regulated by the UK Financial Services Authority.