first world hybrid real estate plc · first world hybrid real estate plc (“fwhre” or the...

First World Hybrid Real Estate Plc

First World Hybrid Real Estate PlcPage 1 of 10

First World Hybrid Real Estate Plc (“FWHRE” or the "Fund") is a real estate investment company that invests in a combination of direct real estate and listed real estate investment trusts (“REITs”).

The objective of this Fund is to combine the benefits of direct and listed First World real estate to generate a reliable, predictable and growing income. With the majority of the return generated from the income yield, the investment outcome can be anticipated with a reasonable degree of certainty.

This reliable and predictable income is achieved by investing in a diversified portfolio of UK warehousing and regional offices where:

• The properties are well located in the United Kingdom and are not of a specialised nature.

• The tenants are large, multinational and/or listed companies with a top Dun and Bradstreet rating.

• A long term lease is in place.

• The tenant is responsible for all maintenance and insurance of each property.

• The lease has upwards only reversions.

• Growth in the net income will arise from any rental increase which are contained in the leases and upward rent adjustments in terms of the contractual lease reviews.

What is First World Hybrid Real Estate Plc?

• UK commercial real estate, yielding approximately 6%

• Weighted average remaining lease term > 10 years

• Each property is independently appraised twice per annum on a rolling basis, therefore less volatile pricing

• UK listed REITs yielding approximately 4.3%

• Priced on stock market, therefore readily traded and liquid

• Pricing volatility

• Primarily to provide liquidity for redemptions

Direct Real Estate Listed REITs

FWHRE invests in a portfolio of primarily direct real estate and listed REITs. The REITs provide liquidity for redemptions.


Combine the Benefits of Direct and Listed First World Real EstateLiquidity and RedemptionsThe portfolio includes listed Real Estate Investment Trusts (REITs). These REITs are readily traded and sold on first world stock exchanges and hence provide reasonable liquidity for redemption requests. The cash and REITs provide liquidity, with cash managed to reasonable working capital levels to avoid unnecessary yield dilution.

FWHRE invests approximately 75% of its portfolio in direct real estate which can only be realised in the medium to long term. Whilst the Fund also invests in listed REIT’s to provide a reasonable level of liquidity, in certain circumstances it may be appropriate to limit redemptions to ensure the interests of existing shareholders are protected at all times. Consequently, the Offering Document allows the manager to limit the weekly redemptions to a maximum of 5% of the Fund, and also allows for the suspension of all redemptions where, at the discretion of the manager, it is considered to be in the best interests of investors. For further information, please refer to the Offering Document

Low VolatilityFWHRE property investment criteria should enhance the reliable and predictable nature of the income stream and because the direct real estate will be revalued twice annually on a rolling property basis, price volatility is likely to remain low.

FlexibilityAdjusting asset allocation to take advantage of the higher yields in either direct or listed real estate as listed prices move between premiums and discounts to net asset value, will enhance the investor’s overall return.

Enhanced Yield Resulting in Enhanced ReturnsPositive LeverageA portion of the direct real estate is financed by debt resulting in positive leveraging due to the differential between the cost of financing (currently under 3%) and the yields offered by direct real estate. This enhances the yield of the portfolio. FWHRE limits debt to 50% of the cost of the direct real estate on acquisition. Including the listed REITs and cash, the leverage position is lower than 50% overall. FWHRE can manage the interest rate risk by potentially reducing the over debt ratio and/or taking out interest rate swaps to fix a portion of the interest charge, thereby enhancing the predictability of the income yield for investors.

High Income ReturnWithout any price appreciation, the investor may achieve a return of approximately 4.5% per annum as a result of the dividend yield (before fees). The quality of the real estate and the tenants will ensure this outcome can be anticipated with a reasonable degree of certainty.

Regulated EnvironmentFWHRE is approved in terms of Section 65 of the Collective Investment Schemes Control Act 45 of 2002 for marketing and distribution in South Africa. FWHRE is a Regulated Fund in the Isle of Man and is subject to the Isle of Man Collective Investment Schemes (Regulated Fund) Regulations 2017. It is managed by FIM Capital Limited (“FIM Capital”) who is regulated by the Isle of Man Financial Services Authority, and the FCA in the UK. FWHRE is listed on The International Stock Exchange (formerly the Channel Islands Securities Exchange) and is subject to the Exchange’s listing rules.

The fiduciary custodian of the Fund, EFG Fund Services, a division of EFG Wealth Solutions (Jersey) Limited, is licensed to act as a fiduciary custodian by the Jersey Financial Services Commission. The fiduciary custodian is responsible for ensuring that the Fund is being managed and operated in accordance with the Offering Document and regulation, as well for keeping the assets of the Fund in its safe custody.

Why First World Hybrid Real Estate Plc?

First World Hybrid Real Estate Plc Page 3 of 10

Asset SwapWhere investors have reached their foreign investment allowance limit they can utilise Marriott’s asset swap capacity to invest in FWHRE. This facility is also available to trusts and companies wishing to invest into FWHRE.

ProbateDeath Bed DonationMarriott recommends the use of either a death bed donation and/or a joint account. A death bed donation takes effect on the day preceding the death of the investor and is the legal mechanism for transferring ownership to surviving beneficiaries. As the investment is no longer owned by the original investor on the day of their death, the investment will not form part of an offshore estate for probate purposes.

From a South African tax perspective death bed donations are deemed to be dutiable property of the deceased estate* and therefore still attract estate duty. To avoid double taxation, however, they are excluded from donations tax**.

Joint Account HoldersAn investor may elect to open a joint account with another investor. In the event of the death of one joint holder, the whole of the portfolio will automatically vest in the joint surviving holder or holders. If a joint account investor elects a death bed donation, the donation has precedence and the investor will be deemed to have donated their investment the day before their death. The investor’s portion of the joint account will therefore be transferred to the listed beneficiaries effective the day before their death.

Joint accounts and death bed donations can be elected in the Investment Mandate. Investors are encouraged to seek independent tax advice suitable to their personal circumstances.

Online Investment Statements and Investment Planning Tool

Additional Features

* in terms of Section 3(3)(b) of the South Africa Estate Duty Act** in terms of section 56(1) of the South African Income Tax Act

Investors will have access to online Secure Services where they can access a portfolio overview, a detailed portfolio statement with custom date ranges and, an investment planning tool that provides an on-going indication of future income and capital values, adjusted for inflation.

Please see page 9 for additional Technical Information.


Real Estate OverviewDirect Real Estate

• The portfolio has a strong weighting to warehousing (predominantly distribution warehousing but also standalone retail warehousing) in addition to regional office properties. Consideration is also given to location in relation to the property type and usage.

• The properties are well let on fully repairing and insuring (FRI) leases to strong tenants. The leases are subject to 5-yearly upwards only rental adjustments, either in terms of fixed contractual increases, linked to RPI increases or to market rental levels.

• FWHRE targets a portfolio weighted average unexpired lease term (WAULT) of not less than 10 years to ensure good contractual income flows. This together with the lease structure and the financial standing of the tenants enhances the predictability of future rental flows.

• Careful attention is given to tenant’s financial strength when a property is acquired. Not only their balance sheet but also the nature and sustainability of their business. A Dun & Bradstreet (D&B) business rating is obtained on each tenant as part of due diligence and, in terms of the acquisition criteria, properties being considered are required to have a 5A1 (best rating a business can obtain from D&B) or a 4A1 rating.

• In terms of the Fund’s valuation policy each property is independently valued twice annually.

REITs • FWHRE invests into substantial, diversified REITs to maintain liquidity.

• REITs contribute substantially to the liquidity of FWHRE in that they are readily traded on first world stock exchanges.

• The REITs chosen for FWHRE are all market leaders which are committed to dividend payments.

• The REIT portfolio in FWHRE has geographical diversification, as well as sectoral diversification, with an emphasis towards distribution type property.

75%25%

Regional Offices

Warehouse (Distribution and Retail)

Property Sector Target


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Bidfood – Cannock, Birmingham

Matthew Clark – Runcorn, Liverpool

DPD – Snetterton, East Anglia

Sheffield Insulations – Cardiff, Wales

Booker Cash and Carry – Lincoln, Midlands

B&M Retail – Towcester, Northamptonshire

FPE Seals – Darlington, Durham

Keepmoat – Lakeside, Doncaster

Iron Mountain – Premier Park, Leeds

Wickes – Grimsby, East Lincolnshire

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Vanquis Bank – Chatham, Kent

Spectrum Brands – Wolverhampton

SIG – Sheffield, Yorkshire

Barratt – Gateshead, Newcastle

B&M Retail – Leek, Staffordshire

Great Bear Distribution – Deeside, South of Liverpool

Crown Packaging Manufacturing – Leicester

B&M Retail – Stenhousemuir, Glasgow, Scotland

Brake Bros Limited – Dundee, Scotland

Aviva Plc – Norwich, Norfolk

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Property Locations

Direct Real Estate Holdings


Building use:A single storey modern distribution warehouse with ancillary office accommodation

Size of building: 184,239 square foot (site coverage 50%)

Tenant: Crown Packaging Manufacturing UK Limited (D&B 5A1)

Lease expiry date: 24 September 2027, no tenant break

Acquisition Yield: 5.15%

Type of lease:Fully repairing and insuring (ie tenant responsible for all operating costs), upwards only 5 yearly rental reviews.

Crown Packaging Manufacturing Leicester

The property is well located on Radar Road in the established Braunstone Frith Industrial Estate, Leicester. Considered to be the best distribution location in the UK in the heart of the Golden Triangle, this is a premier logistics hub located 2.5 miles from the M1, the largest and major north/south arterial in the UK. This modern, high specification property was constructed in 2002 as a national distribution facility and comprises 184,239 sqft of ground floor warehouse and ancillary offices. The property is let to Crown Packaging Manufacturing Limited (the No.1 producer of food and aerosol cans in the world) on a 10 year lease.

Building use: A single storey, modern stand alone retail warehouse

Size of building: 21 174 square foot (site cover of 25%)

Tenant: B & M Retail Limited (D&B 5A1)

Lease expiry date: 28 September 2028

Acquisition Yield: 6%

Type of lease:Fully repairing and insuring (i.e. tenant responsible for all operating costs), upwards only 5 yearly rental reviews

B&M Retail Towcester, Northamptonshire

The property is prominently located in the out-of-town retail cluster of Towcester in Northamptonshire approximately 10 miles south west of Northampton. The property is in close proximity to the roundabout junction of the A5 and A43, providing easy access to the M1. It comprises a standalone, modern, purpose built retail warehouse leased to B&M Retail Limited. The company is a wholly owned subsidiary of the LSE listed and FTSE 250 member B&M European Value Retail S.A.

Building use:High specification office accommodation over 3 floors, used as national headquarters.

Size of building: 17 557 square foot offices, 325 square foot balconies

Tenant: Keepmoat UK Limited (D&B 5A1)

Lease expiry date: 3 February 2031, tenant break in Feb 2028 subject to 12 months notice

Acquisition Yield: 6.75%

Type of lease:Fully repairing and insuring (ie tenant responsible for all operating costs), with compounded RPI linked rent reviews, effective 5 yearly, Collared and Capped at 2% and 4% pa respectively

Keepmoat Lakeside, Doncaster

The property is located on Lakeside Boulevard, Doncaster and is approximately 32 miles south east of Leeds. It is a modern office building, constructed in 2006, comprising 17 557 sq ft of high specification office accommodation with unobstructed views across the 50 acre lake. The property is leased to Keepmoat UK Ltd, and houses their UK headquarters. Keepmoat is a national market leader in sustainable community regeneration, housing and responsive repairs to the UK housing industry.

Below are examples of the direct real estate holdings we invest in across the three sectors of distribution warehousing, retail warehousing and regional offices. For details of all the holdings please visit our website www.marriott.co.za.


Key Individuals

*Member Royal Institute of Chartered Surveyors

Russell Collister – Board Member, Director – FIM Capital. BA (Hons), Fellow of the Securities Institute.

30 years of continuous experience in the investment management industry. Russell has a particular interest in the quoted property sector having worked as a property analyst managing specialist property and income funds. Russell is based in the Isle of Man.

Craig Ewin – Board Member, Director – Sequel. B Com Dip Acc CA(SA).

25 years experience in the acquisition, financing and management of properties for a variety of investors, including listed REIT portfolios where he has held both executive and non-executives roles. Craig spends his time between South Africa and the UK.

Mark Grace – Board Member, Director – Black Grace Cowley. BSc (Hons) MRICS

As a founding director of Black Grace Cowley, a leading multi-disciplinary firm of chartered surveyors, valuers, estate agents and property managers, Mark has over 30 years’ experience in both the residential and commercial property industry. Mark is based in the Isle of Man.

Philip Scales – Board Member, Director – FIM Capital. Fellow of the Institute of Chartered Secretaries and Administrators.

38 years experience working offshore in corporate, trust and third party administration. He holds a number of directorships of listed companies and collective investment schemes. Philip is based in the Isle of Man.

Roger Perkin – Director – Sequel Property Investments (Pty) Ltd. BA LLB, admitted attorney of the High Court.

20 years experience in the property industry, focusing on asset and fund management for various investment entities, including listed REIT portfolios. Roger is based in South Africa and travels to the UK regularly.

Peter Sparks – Director – Sequel Property Investments (Pty) Ltd. BSc (Hons) MTRP MRICS*.

20 years diverse property experience with a focus on acquisitions, disposals and property development activity for listed REIT portfolios where he held executive roles. Peter spends his time between South Africa and the UK.

Roger Young – International Partner – Cushman & Wakefield. BSc(Hons) MRICS. RICS Registered Valuer

Roger is a commercial property valuer based in London and head of Cushman & Wakefield’s business space valuation and advisory team. He has 17 years experience in the UK property market and is responsible for the independent valuations of FWHRE’s direct properties.

James Lindley Partner – Lindley Mortimer. BSc (Hons) MRICS*.

James is a property investment surveyor with 26 years post qualification experience. James is based in London.

Bruce Mortimer Partner – Lindley Mortimer. BSc (Hons) MRICS*.

Bruce is a property investment surveyor with 26 years post qualification experience. Bruce is based in London.

John Munday Managing Director – Paragon Building and Project Consultants. MRICS*.

John has 22 years industry experience and has been responsible for the building and environmental surveys of FWHRE's direct properties. John is based in London.

FWHRE Directorate

Property Managers and Other Services


General InformationRegistration, Nominees and Safe CustodyCertain investments in your portfolio may be registered in the name of nominee companies. Investments may also be registered in the name of appropriate eligible custodians, whose role it is to hold investments in safekeeping on your behalf, appointed by FIM Capital in accordance with the Isle of Man Financial Services Authority Financial Services Rule Book.

Foreign CurrenciesThe base currency of the portfolio is Sterling, however investments may be made in assets denominated in other currencies. In this case, movements in currency rates of exchange can have an unfavourable as well as favourable effect on the value of your portfolio.

ConfidentialityWe will use reasonable endeavours to ensure that all confidential information relating to you and your portfolio is kept confidential. However you authorise us to disclose information (confidential or not):

a) to our employees (or employees of our agents, nominees, custodians or other persons appointed by us in connection with your portfolio) on a need-to-know basis;

b) to the FSA and any other regulatory authority, to the extent that they are entitled to the information sought;c) otherwise as may be required by law, best investment business practice, industry regulations or codes of practice.

Investment GuideIf you have any queries please contact the Communication Centre on 0800 336 555

Online Investing Click “Invest Online” and complete the details on-screen providing the required information for all investors.

• Verification of SA investor details will be done online (ID, address, banking). For foreign investors, please upload the required supporting documentation (please see the list below, or the KYC Requirements list).

• W-8BEN Form: print, sign and upload. A pre-completed W-8BEN Form is made available to you once you reach the Document Upload screen.

Application Form (available on www.marriott.co.za)

• International Investment Mandate (including W-8BEN Form)

Discretionary Portfolios: Choose between the 2 managed portfolios under investment options. FWHRE: Choose FWHRE under investment options.

Supporting Documentation Required• KYC (know-your-client) documents for all investors including joint holders and alternative signatories. Please see the KYC

Requirements list on our website for full details.

Evidence of Identification (original certified copy of ID or passport, including copies of second passport where there is dual nationality).

Evidence of Permanent Residential Address (original or original certified copy)

• Proof of banking details in the investor’s own name, dated within the last 12 months.

• We will require confirmation of how the applicant came about their wealth. For all significant investments we will require documentary evidence of the source of wealth.

Certification Requirements• The application and KYC documents should be submitted as originals or certified copies of originals.

All copy documents submitted to FIM must be suitably certified by an appropriate individual.

Please see the KYC Requirements list for full certification requirements.

Payment• Local SA bank account transfers to the offshore FIM Capital bank account should be made via SWIFT. Banking details are on the

Investment Mandate.

Should you require assistance in remitting your funds offshore, we are able to offer you the independent services of Charter Forex or Sable FX. Please tick this option on the Investment Mandate, and complete the relevant mandate.

• Offshore bank account transfers to the FIM Capital bank account should be made in GBP Sterling.


Technical Information SummaryMinimum Investment Amount £25,000

Investment Options Class A (Distributing) or Class B (Accumulating)

Marriott Initial Fee 0%

Investment Management Fee

Costs are based on a sliding scale depending on investment size:

Class A – deducted quarterly from income.

Class B – deducted quarterly from capital.

Investment amount Total fee per annum, excluding VAT*

£25,000 – £49,999 0.75%

£50,000 – £99,999 0.70%

£100,000 – £249,999 0.65%

£250,000 – £499,999 0.60%

£500,000 – £999,999 0.55%

£1m – £1,999,999 0.50%

> £2m 0.45%

* For clients based outside of the EU the investment Management Fee does not attract Isle of Man VAT (20%).

Charges

• Additional costs are deducted from the Fund’s Net Asset Value (NAV) in respect of Fiduciary Custodian, Property Management, Audit and other services. Please see the Offering Document for more information.

• There are no brokerage fees or duties in purchasing units in FWHRE.

Financial Advisor Initial FeeMaximum 3% (excl RSA VAT). Payments processed twice a month. Deducted from consideration received.

Financial Advisor Annual Advisor FeeMaximum 1% p.a. (excl RSA VAT). Paid quarterly in arrears. Deducted from income quarterly.Class A – deducted quarterly from income. Class B – deducted quarterly from capital.

Income PaymentsClass A: Income reinvested or paid quarterly (Minimum payment of £400 applies). Class B: n/a

Client Reporting• Biannual Valuations (28 February & 31 August) • Consolidated tax voucher and interest certificate annually

Weekly Pricing & Trading

• FWHRE is priced weekly, based on net asset value (as opposed to on a listed exchange).

• Shares can be purchased and redeemed weekly.• Instructions for redemptions need to reach us five clear business days before the next

pricing date, for processing on that price date.

Tax Clearance:SARS permits an annual foreign investment allowance of R10 million for individuals, and an annual discretionary allowance of R1 million per year. The latter does not require a tax clearance certificate.

If you have reached your individual limit for the year then you can make use of the Marriott asset swap capacity at no extra cost. Please contact the Communication Centre for more details.

Taxation of Income:The income received from FWHRE is considered a foreign dividend by the South African Revenue Service and as such is taxed at a maximum 20%. This is in most cases significantly lower than the marginal rates an investor would have to pay on local real estate income.

UK Capital Gains Tax on redemptions (effective 6 April 2019):Non-UK residents may be subject to UK capital gains tax on gains arising from a redemption of shares in the Fund. Individual investors will benefit from annual individual UK CGT tax allowances and where applicable will also be able to take advantage of specific Double Tax Agreements in place between the UK and their respective country of residence. This will also impact trusts and corporate investors.


Service ProvidersFund Manager: FIM Capital Limited (“FIM Capital”)

FIM Capital was established in January 2006. FIM Capital manages portfolios for private clients, institutions, trusts and corporations from its offices in the Isle of Man. FIM Capital operates a pooled arrangement for holding client cash in accordance with the Isle of Man Financial Services Authority Financial Services Rule Book.

Jurisdiction: Isle of Man Regulatory Status: Licensed by the Isle of Man Financial Services Authority (FSA) and authorised and regulated by the

Financial Conduct Authority in the UK. Registered Office: 55 Athol Street, Douglas, Isle of Man, British Isles, IM1 1LA

Intermediary: Marriott Asset Management (Pty) Ltd (“Marriott”)Marriott is an independent boutique of the Old Mutual Investment Group. Marriott operates in South Africa, and internationally in the Isle of Man and Ireland. Marriott is registered in South Africa and is licensed to carry out investment business by the Financial Sector Conduct Authority.

Jurisdiction: South AfricaRegulatory Status: Authorised Financial Services Provider (FSP 592) through the Financial Sector Conduct Authority (FSCA)Registered Office: 2 Delamore Road, Hillcrest, KZN, 3610

Property Manager: Sequel Property Investments (Pty) Ltd Jurisdiction: South Africa Registered Office: Unit 7, 8 Richefond Circle, Ridgeside Office Park, Umhlanga, 4319

Auditor: KPMG Audit LLC Jurisdiction: Isle of Man Regulatory Status: Licensed by the Institute of Chartered Accountants in England & Wales Registered Office: Heritage Court, 41 Athol Street, Douglas, Isle of Man , IM1 1LA

Bankers: Barclays Bank Plc Jurisdiction: United Kingdom Regulatory Status: Authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority Registered Office: Barclays Bank PLC, 5 North Colonnade, Canary Wharf, London, E14 4BB

Fiduciary Custodian: EFG Fund Services a division of EFG Wealth Solutions (Jersey) Limited Jurisdiction: Jersey Regulatory Status: Licensed by the Jersey Financial Services Commission under the Financial Services (Jersey) Law, 1998 (as

amended) to conduct funds services business including being custodian of collective investment schemes. Registered Office: 5th Floor, 44 Esplanade, St Helier, Jersey, JE1 3FG

Legal advisors: Callin Wild Jurisdiction: Isle of Man Professional Body: Isle of Man Law Society Registered Office: Bank Chambers, 15-19 Athol Street, Douglas, Isle of Man, IM1 1LB

Investment Surveyors: LMD Real Estate LtdJurisdiction: United KingdomRegulatory Status: Royal Institute of Chartered SurveyorsRegistered Office: 2nd Foor, 14 Cork Street, London W1S 3NS

Building & Environmental Surveyors: Paragon Building Consultancy LtdJurisdiction: United KingdomRegulatory Status: Royal Institute of Chartered SurveyorsRegistered Office: 7 Swallow Place, London, W1B 2AG

Property Valuers: Cushman & Wakefield LLPJurisdiction: United KingdomRegulatory Status: Royal Institute of Chartered SurveyorsRegistered Office: 43-45 Portman Square, London, W1H 6LY

Debt Funders: Barclays Bank plcJurisdiction: United KingdomRegulatory Status: Financial Conduct Authority and Prudential Regulation AuthorityRegistered Office: 1 Churchill Place, Canary Wharf, E14 5HP

Property Legal Advisors: CMS Cameron McKenna Nabarro Olswang LLPJurisdiction: United KingdomRegulatory Status: Solicitors Regulation AuthorityRegistered Office: Cannon Place, 78 Cannon Street, London, EC4N6AF

Marriott Asset Management (Pty) Ltd. Marriott House

2 Delamore Road Hillcrest 3610

PO Box 2099 Hillcrest 3650 South Africa

Communication Centre 0800 336 555

Tel +27 (0)31 765 0700 Fax +27 (0)31 765 0790

Email [email protected] www.marriott.co.za

Collective investment schemes are generally for the medium to long-term. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investment schemes are traded at ruling prices and the First World Hybrid Real Estate Fund (FWHREF) can engage in borrowing. If required, FWHRE may borrow up to 50% of the net asset value of the Fund for the purpose of achieving its investment objectives. Forward pricing is used. The ruling price is calculated at approximately 17h00 Isle of Man time weekly. Purchase requests must be received by the manager (FIM Capital) by 17h00 Isle of Man time on a valuation day. Repurchase requests must be received by the manager prior to 5.00 p.m. five clear Business Days before a Redemption Day as per the Offering Document. FWHRE provides a reasonable but not absolute level of liquidity due to the inclusion of cash and listed REITs in addition to the direct real estate portfolio. Large redemption requests may therefore be delayed. Prices are published on a weekly basis on the Marriott website, www.marriott.co.za. Unit trusts are calculated on a net asset value basis. Net asset value is the value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. FWHRE does not provide any guarantees with respect to the capital or the return of the portfolio. A schedule of fees and charges and maximum commissions is available on request from Marriott. Where initial fees are applicable, these fees are deducted from the investment consideration and the balance invested in units at the net asset value. Commissions and incentives may be paid and if so, would be included in the overall costs. Different classes of shares may apply to the fund and will be subject to different fees and charges. The inclusion of foreign securities in a portfolio are subject to risks including but not limited to potential constraints on liquidity and the repatriation of funds, macroeconomic risks, political risks, foreign exchange risks, tax risks, settlement risks and the potential limitations on the availability of market information. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. In addition, investments in regulated funds may involve special risks that could lead to a loss of all or a substantial portion of the investment. Declaration of income accruals are quarterly. Performance figures are based on lump sum investment. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. This Fund may be closed to new investors in order to manage it more efficiently in accordance with its mandate. The TER shows the percentage of the average Net Asset Value of the portfolio that was incurred as charges, levies and fees relating to the management of the portfolio. A higher TER ratio does not necessarily imply poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. Marriott Unit Trust Management Company (RF) (Pty) Ltd, the Representative, is a member of the Old Mutual Investment Group.

FIM Capital55 Athol Street, Douglas, Isle of Man, British Isles, IM1 1LA MA

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