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SANLAM GLOBAL FUNDS PLC Annual audited financial statements for the year ended 31 December 2018

SANLAM GLOBAL FUNDS PLC

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ANNUAL AUDITED FINANCIAL STATEMENTS for the year ended 31 December 2018

Contents Page(s) Company information 1 - 4

Directors’ report 5 - 10 Independent auditor’s report 11 - 16

Depositary’s report 17 Manager’s report 18 - 20

Economic & market review 21 - 25

Investment Manager’s reports 26 - 52

Statement of comprehensive income of the Company 53 of the Funds 54 - 61

Statement of financial position of the Company 62 of the Funds 63 - 70

Statement of changes in net assets attributable to participating shareholders

of the Company 71 of the Funds 72 - 79

Statement of cash flows of the Company 80 of the Funds 81 - 88

Portfolio of investments Sanlam Global Balanced Fund 89 Sanlam Global Equity Fund 90 - 97 Sanlam Global Liquidity Fund 98 Sanlam BIFM World Equity Fund 99 - 104 Sanlam BIFM Global Fixed Income Fund 105 Mpile Global Equity Fund 106 Sanlam Private Wealth Global Balanced Fund 107 - 109 Counterpoint Global Equity Fund 110 - 114 Independent Global Flexible Fund 115 - 116 Counterpoint Global Owner Managed Flexible Fund 117 - 121 ARX Pangaia Global Managed Fund 122 - 125 Excalibur Global Managed Fund 126 Northstar Global Flexible Fund 127 - 129 Absa Global Best Blend Fund 130 Absa Global Access Fund 131

Notes to and forming part of the audited financial statements 132 - 244 Securities Financing Transactions Regulations Disclosures 245 - 246 SAMI Remuneration Policy (unaudited) 247 - 253 Leverage (unaudited) 254 - 256 Notice of Annual General Meeting 257 Proxy Form 258


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COMPANY INFORMATION

Directors of Sanlam Global Paul Dobbyn1 – Irish Funds Plc (the “Company”) Thomas Murray1 – Irish

Haydn Franckeiss – South African Richard Aslett – British

All Directors are non-executive

Registered number 307841 Funds of the Company Sanlam Global Balanced Fund

Sanlam Global Equity Fund Sanlam Global Liquidity Fund Sanlam BIFM World Equity Fund

Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund2

Sanlam Private Wealth Global Balanced Fund Counterpoint Global Equity Fund

Independent Global Flexible Fund Counterpoint Global Owner Managed Flexible Fund4 ARX Pangaia Global Managed Fund Excalibur Global Managed Fund Northstar Global Flexible Fund Absa Global Best Blend Fund

Absa Global Access Fund

Visio Global Healthcare Fund3

Registered office of the Company Beech House

Beech Hill Road Dublin 4 Ireland

Manager, Alternative Investment Fund Sanlam Asset Management (Ireland) Limited Manager, Securities Lending Agent Beech House & Secretary Beech Hill Road Dublin 4 Ireland

Administrator Brown Brothers Harriman Fund Administration Services (Ireland) Limited (effective from 1 October 2018)

30 Herbert Street Dublin 2 Ireland

Sanlam Asset Management (Ireland) Limited (until 1 October 2018)

Beech House Beech Hill Road Dublin 4 Ireland 1 Paul Dobbyn is considered an independent Director by the Central Bank of Ireland and the Irish Stock Exchange. Thomas Murray is considered an independent Director by the Irish Stock Exchange only. 2 Mpile Global Equity Fund closed with effect from 25 October 2018. 3 Visio Global Healthcare Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company in 2016. This authorised sub-fund of the Company has not yet been launched. 4 Effective from 13 February 2019, the name of this Fund and investment strategy was changed. The previous name of this Fund was Counterpoint Global Balanced Fund.


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COMPANY INFORMATION (CONTINUED) Registrar & Transfer Agent Brown Brothers Harriman Fund Administration Services (Ireland) Limited 30 Herbert Street Dublin 2 Ireland

Investment Managers Sanlam Global Liquidity Fund Sanlam Investment Management (Pty) Limited Sanlam Global Equity Fund 55 Willie van Schoor Avenue Bellville 7530 South Africa

Sanlam Global Balanced Fund Sanlam Investments UK Limited Sanlam Global Equity Fund (formerly Sanlam FOUR Investments UK Limited) Sanlam BIFM World Equity Fund Monument Place Sanlam BIFM Global Fixed Income Fund 24 Monument Street Mpile Global Equity Fund London EC3R 8AJ United Kingdom

Sanlam BIFM World Equity Fund Franklin Templeton Investment Management Limited The Adelphi, 1-11 John Adam Street London WC2N 6HT United Kingdom

Sanlam Private Wealth Global Sanlam Private Wealth (Pty) Limited Balanced Fund The Vineyard Office Estate Farm 1 Building B 99 Jip de Jager Drive, Welgemoed, 7530 South Africa

Counterpoint Global Equity Fund Counterpoint Boutique Pty Limited Counterpoint Global Owner Managed Ground Floor Flexible Fund Building No. 3 Tijger Park Willie Van Schoor Avenue Tyger Valley, Cape Town 7535 South Africa Independent Global Flexible Fund Independent Securities (Pty) Limited 3 West Street Houghton Johannesburg, 2198 South Africa ARX Pangaia Global Managed Fund ARX Pangaia (Pty) Ltd Claremont Terraces 25 Protea Road Claremont Cape Town South Africa Excalibur Global Managed Fund Excalibur Portfolio Managers (Pty) Ltd Office 1 Ground Floor Featherbrooke Business Park Cnr Falls Road & Riviera Lane Featherbrooke, 1739 South Africa


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COMPANY INFORMATION (CONTINUED)

Investment Managers (continued) Northstar Global Flexible Fund Northstar Asset Management (Pty) Limited Suite 1A Madison Place Alphen Office Park Constantia Road Constantia South Africa

Absa Global Best Blend Fund Absa Asset Management (Pty) Limited Absa Global Access Fund Barclays Sandton South Campus 15 Alice Lane 2nd Floor South Africa

Investment allocation manager Sanlam Global Balanced Fund Sanlam Investments UK Limited Sanlam Global Equity Fund (formerly Sanlam FOUR Investments UK Limited) Sanlam Global Liquidity Fund Monument Place Sanlam BIFM Global Fixed Income Fund 24 Monument Street Sanlam BIFM World Equity Fund London Mpile Global Equity Fund EC3R 8AJ United Kingdom Investment advisor ARX Pangaia Global Managed Fund Pangaia Investment Partners AG Chamerstrasse 176 Zug Switzerland

Absa Global Best Blend Fund Absa Investment Management Services (Pty) Limited Absa Global Access Fund 4th Floor Absa Towers North 180 Commissioner Street Johannesburg South Africa

Depositary Brown Brothers Harriman Trustee Services (Ireland) Limited 30 Herbert Street Dublin 2 Ireland

Listing broker Maples and Calder 75 St. Stephens Green Dublin 2 Ireland

Auditor Ernst & Young Harcourt Centre Harcourt Street Dublin 2 Ireland

Irish legal adviser Maples and Calder 75 St. Stephens Green Dublin 2 Ireland


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COMPANY INFORMATION (CONTINUED) Distributors Sanlam Collective Investments Limited 2 Strand Road Bellville 7530 South Africa Sanlam Investment Management (Pty) Limited 55 Willie van Schoor Avenue Bellville 7530 South Africa BIFM 3rd Floor Block A Fairgrounds Office Park, Fairgrounds Gabarone Botswana African Life Financial Services (Zambia) Limited 741 Independence Avenue 1st Floor Mpile Park Lusaka Zambia Counterpoint Boutique Pty Limited Ground Floor Building No. 3 Tijger Park Willie Van Schoor Avenue Tyger Valley, Cape Town 7535 South Africa

Independent Securities (Pty) Limited 3 West Street Houghton Johannesburg, 2198 South Africa

ARX Pangaia (Pty) Ltd Claremont Terraces 25 Protea Road Claremont Cape Town South Africa

Excalibur Portfolio Managers (Pty) Ltd Office 1 Ground Floor Featherbrooke Business Park Cnr Falls Road & Riviera Lane Featherbrooke, 1739 South Africa Northstar Asset Management (Pty) Limited Suite 1A Madison Place Alphen Office Park Constantia Road Constantia South Africa


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DIRECTORS’ REPORT

The Directors of Sanlam Global Funds plc (the “Company”) present herewith their Annual Report together with the audited financial statements for the year ended 31 December 2018.

RESULTS AND BUSINESS ACTIVITIES

Detailed investment reviews are included in the Reports of the Investment Manager on pages 26 to 52. The results of operations are set out in the Statement of Comprehensive Income on pages 53 to 61. The Directors also draw your attention to the significant events during the year disclosed in Note 22 on page 244.

PRINCIPAL RISKS AND UNCERTAINTIES The Company is exposed to the risks associated with the financial instruments and markets in which the Funds invest. The Directors draw your attention to Note 18 on pages 194 to 237 which outlines the financial risks associated with meeting the Company’s investment objectives. The Directors are not aware of any existing or contingent liability of the Funds that may expose the assets of the Company as a whole.

DIVIDENDS The Directors have no current intention to make distributions from any Fund. All such profits shall be retained in the relevant Fund.

DIRECTORS

The Directors of the Company during the year were as follows:

• Paul Dobbyn (Irish)

• Thomas Murray (Irish)

• Haydn Franckeiss (South African)

• Richard Aslett (British)

Paul Dobbyn is a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc.

Thomas Murray is a Director of Sanlam Qualifying Investors Funds and Sanlam Universal Funds Plc. Thomas Murray is also a Director of Sanlam Asset Management (Ireland) Ltd. (“SAMI”).

Haydn Franckeiss is a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc.

Richard Aslett is the Chief Executive Officer of SAMI. Richard Aslett is also a Director of Sanlam Qualifying Investors Funds Plc, Sanlam Universal Funds Plc and SAMI.

DIRECTORS’ AND SECRETARY’S INTEREST IN SHARES AND CONTRACTS The Directors who held office on 31 December 2018 had no interest in the shares of the Company or Funds at that date or at any time during the financial year. None of the Directors has a service contract with the Company. The Manager holds non-participating shares of the Company as explained in the notes to the Financial Statements.


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DIRECTORS’ REPORT (CONTINUED) RELATED PARTIES Disclosures in respect of related parties are contained in note 12 to the Financial Statements.

CONNECTED PARTIES

The Central Bank of Ireland AIF Rulebook section on "Dealings by management company, general partner, depositary, AIFM, investment manager or by delegates or group companies of these" states that any transaction carried out with the Company by a management company, general partner, depositary, AIFM, investment manager or by delegates or group companies of these ("Connected Parties") must be carried out as if negotiated at arm's length. Transactions must be in the best interests of the shareholders. The Board of Directors is satisfied there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out above are applied to all transactions with Connected Parties entered into during the year and that all such transactions have complied with these obligations.

ACCOUNTING RECORDS

The measures taken by the Directors to ensure compliance with the Company’s obligation to keep proper accounting records are the use of appropriate systems and procedures which are carefully implemented by the Administrator. The accounting records of the Company are kept at 30 Herbert Street, Dublin 2, Ireland.

DIRECTORS’ STATEMENT ON RELEVANT AUDIT INFORMATION

Each of the Directors at the date of approval of the Directors’ Report confirms that: a) So far as the Directors are aware, there is no relevant audit information of which the Company’s

statutory auditor is unaware; and b) The Directors have taken all the steps that they ought to have taken as Directors in order to make

themselves aware of any relevant audit information and to establish that the Company’s statutory auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 330 of the Companies Act 2014.

SUBSEQUENT EVENTS

Other than as disclosed in Note 23, up to the date of the approval of these financial statements there were no events subsequent to the year end, which, in the opinion of the Directors of the Company, may have had an impact on the financial statements for the year ended 31 December 2018.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

Irish company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the results of the Company for that year. In preparing those financial statements, the Directors are required to:

▪ Select suitable accounting policies and then apply them consistently;

▪ Make judgements and estimates that are reasonable and prudent;

▪ Follow applicable accounting standards or disclose or explain material departures from them in the financial statements;

▪ Provide a fair review of the development and performance of the Company;

▪ Give a description of principal risks and uncertainties that they face; and

▪ Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.


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DIRECTORS’ REPORT (CONTINUED)

STATEMENT OF DIRECTORS’ RESPONSIBILITIES (CONTINUED) The Directors are responsible for keeping proper books of account which disclose with reasonable accuracy, at any time, the financial position of the Company and to enable them to ensure that the financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU and comply with the Irish Companies Act 2014. They are also responsible for safeguarding the assets of the Company and in fulfilment of this responsibility, they have entrusted the assets of the Company to the Depositary for safekeeping, in accordance with the Memorandum and Articles of Association of the Company. The Directors are responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CORPORATE GOVERNANCE CODE

The European Communities (Directive 2006/46/EC) Regulations (S.I. 450 of 2009 and S.I.83 of 2010) (the “Regulations”) requires the inclusion of a corporate governance statement in the Directors’ Report. Although there is no specific statutory corporate governance code applicable to Irish collective investment schemes whose shares are admitted to trading on the Global Exchange Market of Euronext Dublin (“GEM”), the Irish Funds (“IF”) has published a corporate governance code (“IF Code”) that may be adopted on a voluntary basis by Irish authorised collective investments schemes. This code became effective from 1 January 2012, with a twelve month transitional period. It should be noted that the IF Code reflects existing corporate governance practises imposed on Irish authorised collective investment schemes, as noted above. On 19 December 2012, the Board of Directors voluntarily adopted the IF Code as the Company’s corporate governance code. The Board of Directors has assessed the measures included in the IFIA Code as being consistent with its corporate governance practises and procedures for the financial year. The code is available at www.sanlam.ie.

In addition to the IF Code, the Company is subject to corporate governance practices imposed by:

i) The Irish Companies Act 2014, which is available for inspection at the registered office of the Company. It may also be obtained at http://www.irishstatutebook.ie/eli/2014/act/38/enacted/en/html.

ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company at Beech House, Beech Hill Road, Dublin 4, Ireland and the Companies Registration Office in Ireland.

iii) The Central Bank of Ireland in their AIF Rulebook for Retail Investor AIFs which can be obtained from the Central Bank of Ireland website at https://www.centralbank.ie/regulation/industry-market-sectors/funds and are available for inspection at the registered office of the Company.

iv) Euronext Dublin through the Global Exchange Market Rules for Investment Funds which can be obtained from the Euronext Dublin’s website at http://www.ise.ie/Products-Services/Investment%20Funds/List-a-Fund/#ProductGuides.

v) SAMI's Programme of Activity, Business Plan and Code of Conduct, which are available for inspection at the registered office of SAMI at Beech House, Beech Hill Road, Dublin 4, Ireland.

vi) SAMI is also subject to the Corporate Governance Code of the Sanlam Group.

The Board of Directors is responsible for establishing and maintaining internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement and loss. The Board of Directors has delegated this duty to SAMI.

https://www.centralbank.ie/regulation/industry-market-sectors/funds

https://www.centralbank.ie/regulation/industry-market-sectors/funds

http://www.ise.ie/Products-Services/Investment%20Funds/List-a-Fund/#ProductGuides

http://www.ise.ie/Products-Services/Investment%20Funds/List-a-Fund/#ProductGuides


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DIRECTORS’ REPORT (CONTINUED) CORPORATE GOVERNANCE CODE (CONTINUED) SAMI is authorised and regulated by the Central Bank of Ireland and must comply with the rules imposed by the Central Bank of Ireland. SAMI also monitors and evaluates the external auditor's performance, qualifications and independence. The Company has procedures in place to ensure all relevant books of accounts are properly maintained and are readily available, including production of annual and half-yearly financial statements. The annual financial statements of the Company are required to be approved by the Board of Directors of the Company and the annual and half yearly financial statements are required to be filed with the Central Bank of Ireland and Euronext Dublin. The statutory financial statements are required to be audited by the independent auditors who report annually to the Board on their findings. The Board of Directors evaluates and discusses significant accounting and reporting issues as the need arises.

Shareholders’ meetings The convening and conduct of shareholders meetings are governed by the Articles of Association of the Company and the Companies Acts. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors of the Company are required to convene a general meeting within eighteen months of incorporation and fifteen months of the previous annual general meeting thereafter. Shareholders representing not less than one-tenth of the paid up share capital of the Company may also request to convene a shareholders meeting. Not less than twenty one days ’ notice of every annual general meeting and any meeting for the passing of a special resolution must be given to shareholders and fourteen days’ notice must be given in the case of any other general meeting unless the auditors of the Company and all the shareholders entitled to attend and vote agree to shorter notice. Two members present either in person or by proxy constitutes a quorum at a general meeting provided that the quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the relevant Funds or class. Every holder of participating shares or non-participating shares present in person or by proxy who votes on a show of hands is entitled to one vote. On a poll, every holder of participating shares present in person or by proxy is entitled to one vote in respect of each share held by him and every holder of non-participating shares is entitled to one vote in respect of all non-participating shares held by him. The chairman of a general meeting of the Company, or at least two members present in person or by proxy, or any holder or holders of participating shares present in person or by proxy representing at least one-tenth of the shares in issue having the right to vote at such meeting, may demand a poll.

Shareholders may decide to sanction an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company (or of the shareholders of a particular Fund or class) requires a simple majority vote cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company (or of the shareholders of a particular Fund or class) requires a majority vote of not less than 75% of the shareholders present in person or by proxy and voting in general meeting in order to pass a special resolution including a resolution to amend the Articles of Association.

Composition and Operation of the Board Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number of Directors may not be less than two. Currently the Board of Directors of the Company is composed of four Non-Executive Directors, being those listed on page 1 of these financial statements with Paul Dobbyn, Thomas Murray and Richard Aslett being Irish residents. None of the Company’s Directors hold common directorships with the Depositary.


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DIRECTORS’ REPORT (CONTINUED) CORPORATE GOVERNANCE CODE (CONTINUED) Composition and Operation of the Board (continued) The business of the Company is managed by the Directors, who exercise all such powers of the Company as are not required in accordance with the Companies Acts or the Articles of Association to be exercised by the Company in a general meeting. A Director may, and the company secretary of the Company on the requisition of a Director will, at any time, summon a meeting of Directors. Questions arising at any meeting of Directors are determined by a majority of votes. In the case of quality of votes, the chairman has a second or casting vote. The quorum necessary for the transaction of business at a meeting of the Directors is two. SAMI has been appointed the Alternative Investment Fund Manager ("AIFM") to the Company and its Funds pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (the "AIFM Regulations"). The AIFM Regulations apply to SAMI and consequently to the management and operation of the Company. SAMI has been approved by the Central Bank of Ireland as the AIFM and is therefore required to comply with all duties, obligations and functions of an AIFM as are contained in the AIFM Regulations, the Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing the AIFMD, the Central Bank of Ireland's AIF Rulebook and SAMI's Programme of Activity as they apply to the services it provides to the Company and the Funds.

Board Diversity As noted above, the Company has adopted the IF Code which includes requirements regarding board composition. The Company is also subject to the legal and regulatory requirements regarding the make-up of its board of directors (the "Board") noted above.

As a consequence, the Company is obliged to have at least two directors resident in Ireland, to have at least one independent director and to have a majority of non-executive directors (as defined for the purposes of the IF Code). In addition, the Company is obliged to ensure that each of its directors meet all legal and regulatory requirements including being of sufficiently good repute and sufficiently experienced in relation to the type of business carried out by the Company, that all directors meet the Central Bank's fitness and probity requirements and that the Board of the Company has a good balance of skill and expertise so as to enable it to properly and effectively conduct the business of the Company. These requirements aim to ensure a diverse and balanced range of skills as between the directors on the Board. In addition, the Board is obliged to have regard to the educational and professional background of any prospective directors. At this time the Board does not have a specific policy as regards gender representation on the Board but, as noted, is subject to other legal, regulatory and corporate governance requirements applicable to the Company's appointment of prospective directors. The Board has regard to the various requirements set out above when considering any prospective new appointments to the Board.

Implications of Brexit The UK triggered Article 50 of the Lisbon Treaty on 29 March 2017 which meant the UK was due to leave the EU at 11:00pm on 29 March 2019. On 21 March 2019, the UK and the EU agreed to extend Article 50 until either 22 May, subject to MPs approving the Withdrawal Agreement, or failing that until 12 April 2019. On 29 March 2019 MPs rejected the Withdrawal Agreement for the third time. On 5 April 2019, Theresa May wrote to the President of the European Council Donald Tusk requesting an extension until 30 June 2019.


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MANAGER’S REPORT

Sanlam Asset Management (Ireland) Limited (“SAMI” or the “Manager”) presents herewith the Manager’s Report for the year ended 31 December 2018. SAMI has been appointed to serve as the Company's Alternative Investment Fund Manager ("AIFM") and to manage the assets of each Fund in accordance with its investment objective and policies as determined by the AIFM and any subsequent changes thereto. As the AIFM, SAMI has responsibility for the management and administration of the Company's affairs and distribution of the Shares, subject to the overall supervision and control of the Directors of the Company. SAMI has delegated the performance of certain of its investment management functions in respect of the Company to the Investment Allocation Manager and the Investment Managers. In addition, SAMI has delegated the performance of certain of its distribution functions in respect of the Company to the Distributors. These delegation arrangements have been notified to the Central Bank and made in accordance with SAMI's outsourcing/delegation policy, its Programme of Activity, the AIFM Regulations and the AIF Rulebook. SAMI will notify the Central Bank before any further delegation becomes effective and will be able to justify its entire delegation structure with objective reasons.

Performance and Investment Activities An overall review of the economic environment is detailed in the Economic and Market Review on pages 21 to 25. The performance and investment activities of the individual Funds of the Company are set out in the Investment Managers’ reports on pages 26 to 52. Risk Profiles and Limits As AIFM, SAMI has established and implemented quantitative and qualitative risk limits for each of the Funds of the Company, taking into account all relevant risks. For each Fund, SAMI has in place a set of agreed investment restrictions which are designed to ensure each Fund is managed in accordance with its investment objective. Full details of investment restrictions applicable to each Fund are set out in the relevant Fund supplement. These investment restrictions are also designed to manage market, liquidity, credit and counterparty risks. The investment restrictions are agreed by the Board of the Company in advance of a Fund launch and are notified to the delegate investment manager(s) of the relevant Fund. Investment restrictions are monitored daily by the delegate Investment Manager(s) and the AIFM and any issues are notified to the Board of the Company on an ad-hoc basis as required. SAMI employs risk management systems to measure and monitor relevant risks for each Fund under management. The risk management systems include:

- monitoring of compliance and quantitative limits; - monitoring of absolute and relative investment performance; - monitoring of Fund liquidity to ensure the liquidity or illiquidity of a Fund is consistent with that

Fund’s underlying obligations and stated liquidity requirements; - monitoring global exposure and leverage; - assessing appropriateness and on-going monitoring of delegates and counter-parties; and - monitoring and assessing control weaknesses, breaches and errors.

The financial risk disclosures relating to the Company’s risk framework and the market risk, liquidity risk, credit and counterparty risk for each Fund are set out in Note 18 of the notes to and forming part of the audited financial statements on pages 194 to 237.


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MANAGER’S REPORT (CONTINUED) Other Risks In addition to market risk, liquidity risk, credit and counterparty risk, the following other risks have been identified by the AIFM as being relevant to the Funds of the Company:

Concentration Risk

The Funds may invest in a limited number of investments and investment themes. A consequence of a limited number of investments is that performance may be more favourably or unfavourably affected by the performance of an individual investment.

Operational Risk

Operational risk is the potential for loss caused by a deficiency in information, communications, transaction processing and settlement and accounting systems. The Funds’ service providers, including SAMI, maintain controls and procedures for the purpose of managing operational risk.

Legal, Tax and Regulatory Risks

Legal, tax and regulatory changes could occur during the duration of a Fund which may adversely affect the Fund. SAMI and the appointed delegate Investment Managers monitor the international regulatory environment closely for any legislation or regulatory changes that may impact the Funds. Appropriate information on such matters is considered by the AIFM and referred to the Board of Directors of the Company, where required.

Non-Developed/Emerging Market Risk

A Fund may invest a portion of its capital in securities and companies based in non-developed or emerging markets or issued by governments of such countries. Investing in the securities of such companies and countries involves certain considerations not usually associated with investing in securities of developed market companies or countries, including, without limitation, less liquidity, greater price and foreign currency volatility, and greater legal, tax and regulatory risks.

Small Capitalisation Companies Risk

A Fund may invest a portion of its capital in securities of companies with smaller capitalisation. Smaller capitalisation companies are generally not as well known to the investing public and have less investor following than larger capitalisation companies. Investing in the securities of such companies may involve certain considerations, including, without limitation, less liquidity, greater price volatility, and risks associated with limited operating histories and/or the availability of information pertaining to the Fund and its operations. Material Changes The AIFMD requires certain information to be made available to investors in AIFs, including the Company, before they invest and requires that material changes to this information be disclosed in the annual report. The Company’s Prospectus and the Supplement of each Fund of the Company, which sets out information on the Company’s investment strategy and policies, leverage, risk, liquidity, administration, management, fees, conflicts of interest and other shareholder information is available on the AIFM’s website at www.sanlam.ie. There have been no material changes (other than those reflected in these financial statements) to this information requiring disclosure. Any information requiring immediate disclosure pursuant to the AIFMD will be disclosed to shareholders as and when it arises.

Portfolio Overview The portfolios held by the individual Funds are disclosed on pages 89 to 131. Assets Subject to Special Arrangements There have been no assets, in any of the Funds, subject to special arrangements, as per Article 108(2) of the AIFMD Level II Delegated Regulations, during the reporting period or at the year end.

http://www.sanlam.ie/


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MANAGER’S REPORT (CONTINUED) SAMI Remuneration Policy The remuneration policy of the Manager for the year ended 31 December 2018 is disclosed on pages 247 to 253.

Leverage The risk limits in respect to leverage and global exposure are set by the AIFM. The leverage ratios of each Fund of the Company, as determined using the methodologies prescribed under the AIFMD, are disclosed on pages 254 to 256.


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ECONOMIC & MARKET REVIEW for the year ended 31 December 2018

Following the relative calm and strong performance of 2017, 2018 started quite differently. January saw markets perform very strongly, but fears around inflation, sparked by US data, spooked markets, as they became concerned that the strength of economic data would cause the US Federal Reserve to raise interest rates more aggressively than previously anticipated. This then led to equity markets selling-off in February, which spilled over into March, though perhaps for other reasons – a fear of a global trade war given some of President Trump’s announcements surrounding tariffs, which have been mostly aimed at China, while China has retaliated by imposing tariffs on certain US goods. The market has become concerned that this will escalate into a full-blown trade war, which almost all agree is not positive for the overall global economy and economic growth. Trump himself appears to be seeking to rebalance the trade balance between the US and other countries, primarily China. With such a backdrop volatility picked up noticeably, although most investors had been expecting this at some point, given the unsustainably low levels volatility had reached. Volatility is not now high by historical levels, but appears relatively high compared to very recent history. Many of the concerns from 2017 carried into 2018, although the issues on the Korean peninsula attracted significantly fewer headlines since early January, given some of the more constructive tone between the parties involved. Perhaps the major change for markets from the USA during the quarter was the appointment of the new Federal Reserve Chair, Jerome Powell, in February. This attracted relative little attention given the continuation of the former Chair’s approach and policies. In China, Xi Jinping took his consolidation of power to new highs, by changing the country’s constitution to allow him to rule for life, by abolishing term limits on how long a president may serve for. In Japan, Prime Minister Abe faced fresh scandals, which may ultimately challenge his ability to implement reforms. Meanwhile the Governor of the Bank of Japan, Haruhiko Kuroda, was reappointed for a second term. In Europe, the Italian elections led to an inconclusive outcome whilst the UK continued its Brexit negotiations with the European Union, with some progress being made on the transitional timetable through to the end of 2020. During the quarter global equity markets, as measured by the MSCI World Index declined by -1.28%. For the calendar months during the quarter the MSCI World produced a positive return in January of 5.28%, but this was followed by the declines in February and March of -4.14% and -2.18% respectively. Despite the negative returns more recently, equity markets remain up over six-months. Using MSCI indices, within the Developed Markets, Japan was the strongest region, bucking the market downturn and rising 0.83%, while all the other major regions declined. North America fell -1.13%, Europe fell -1.98% and Pacific ex Japan fell -3.73%. Emerging Markets also managed to produce a positive return, of 1.42%, and therefore continue their recent run of out-performing Developed Markets. Over 12 months Emerging Markets have returned almost 25% while Developed Markets have risen almost 13.6%. Examining sector performance eight of the eleven sectors posted negative absolute returns for the quarter. The best performing sector was Information Technology which rose 3.41%, and this was despite being one of the weakest sectors in March following challenges for some of the FANG stocks. The second best sector was Consumer Discretionary which also rose, posting a gain of 1.80%. The best of the rest was Health Care, but this fell by -1.23%, with the remaining sectors all under-performing the broader market. The weakest sector was Telecommunication Services, which declined by -5.85%, while Real Estate fell -5.43% and Energy -5.41%. Consumer Staples fell -5.28%, and while those were expected to be more protective on the downside, the run up in valuations there meant that they were more susceptible to the market decline. Utilities was a defensive sector that offered relative protection but even that decreased by -1.71% and under-performed the wider market.


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ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2018 Global Bonds had a solid quarter in the first quarter of 2018, with the Bloomberg Barclays Capital Global Aggregate Bond Index rising 1.36%. Bond markets were up in January on the back of the positive economic environment, but sold off in February and then recouped those losses in March. The monthly returns respectively were 1.19%, -0.89% and -0.10%. This however masked some of the yield movements during the quarter, with the US Treasury 10-year rising from below 2.50% to 2.95% in mid-February, before falling back to around 2.75% at the end of the quarter. Other developed government bond markets also saw similar moves, though to varying extents and at different absolute yield levels. As a more risky part of the bond market, the corporate bond market did not fare as well as the sovereign part of the overall bond market, though generally the corporate part of the market has done better than other parts of the bond market in the risk-on environment, as would be expected. The Barclays Capital Global Aggregate Corporate Bond Index declined by -0.83% for the quarter. Like the overall bond market this was up in January, but declined in February by -1.83% and rose slightly in March, however in all three months corporates under-performed the wider market. The second quarter of 2018 was less eventful than the first in terms of market drama and volatility, there was a broad decline in market volatility, as measured by the VIX Index during the quarter, though levels have not quite declined to those seen in 2017. Capital markets have become less concerned about the threat of inflation running away, and therefore expect the US Federal Reserve to continue to raise interest rates at a more measured pace, with the second quarter seeing another 0.25% rise. Elsewhere central banks have been significantly more conservative in raising interest rates, and while there was temporary expectation of such a hike in the UK during the quarter this failed to materialise. In Europe, progress towards ceasing non-conventional monetary policy continued, while Japan remains committed to raising inflation levels and hence policy remains accommodative. However, in China the most recent move has been to loosen policy in the face of a potential slowdown. The major event of the quarter was the escalation of the ‘trade war’ initiated by President Trump. While this has been primarily focused on the US’s trade relationship with China, it has been widened, and while the extent of the tariffs announced so far are relatively limited in an overall global GDP context, the market perceive these to be steps in the wrong direction, and have become concerned about the extent of how far this will go. Markets have been unsurprised by China’s retaliatory response, but the European Union has also raised concerns about the impact of Trump’s actions. For now there is more rhetoric than economic consequence, but the longer this persists the more concerning markets are expected to become. Additionally during the quarter, at a more political level, the US North Korean submit in June, marked a significant turnaround from political language and tone in 2017 and early 2018, and so markets have benefitted from the de-escalation of the threat of war on the Korean peninsula. Unrelated, but notable for the quarter was the rise in the oil price from the low $60s a barrel into the $70s, thus leaving the oil price at the highest levels seen since the end of 2014. During the quarter global equity markets, as measured by the MSCI World Index rose by 1.73%. For the calendar months during the quarter the MSCI World produced a positive return in April and May of 1.15% and 0.63% respectively, but moved sideways in June with a return of -0.05%. As a result global equity markets have progressed a modest 0.43% year-to-date, but remain in double figures over a one-year period because of the strength of returns in 2017. Using MSCI indices, within the Developed Markets, North America was the strongest region rising 3.47%, while Europe declined -1.27% and Japan by -2.84%, though the Pacific ex Japan region rose by 1.77%. However, much of this masks the impact of the US dollar over the quarter, which remained strong, and hence in local terms all the major developed markets produced positive returns during the quarter – the Pacific ex Japan region rose 4.50%, while Europe rose more than 4%, but Japan only 1.20%, and the North American region was not materially different to the US dollar return, because of the weight of the USA in North America. One area that clearly struggled during the quarter was Emerging Markets, which using the MSCI index, fell by -8% over the quarter, and are now lagging Developed Market equities on a one-year basis.


23

ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2018 Global bonds declined by -2.78% in the second quarter, as measured by the Bloomberg Barclays Capital Global Aggregate Bond Index. Global bonds decreased in every month of the quarter, with the declines mellowing over the quarter, as April saw the market drop -1.60%, May -0.76% and June -0.44%. The global bond market suffered because of the sell-off in bonds, originally linked to inflation concerns originating from Q1, which caused the US 10-year Treasury yield to move up during April and through to mid-May to 3.11%, but this has retraced broadly to the 2.80% to 2.90% range as the inflationary concerns have become less concerning. Year-to-date global bond markets have fallen by -1.46%, and therefore despite the low equity return year-to-date bonds are under-performing their equity counterparts. Like the overall bond market, the credit portion of the market also struggled during the second quarter. The Bloomberg Barclays Global Aggregate Corporate Index declined by -2.37% for the quarter, and thus slightly out-performed the wider bond market, and hence indicates that the bond sell-off was driven by the Treasury part of the bond market. Like the wider bond market the corporate bond market declined in all three months of the quarter, and in a similar fashion to the wider market the declines were more substantial at the start of the quarter and became less as the quarter progressed. The third quarter of 2018 was an interesting quarter consisting of a build-up of pressures, which were most evident in the Emerging Markets, especially in relation to certain countries including Argentina and Turkey. Trade war tensions, primarily between China and the USA, continued to dominate financial headlines. As these issues develop, market participants became increasingly concerned that the current tit-for-tat tariff approach could escalate into something more serious. Meanwhile in Europe, Brexit negotiations continued to be one of the major news issues, though the political landscape and budget process in Italy also has wide ranging implications, and attracted justifiable attention. Geopolitical issues, including those on the Korean peninsula, remained relatively subdued during the period, but the potential for some of these to resurface remains. There were also some natural disasters, including severe flooding in Japan, though those were not expected to have any material long-term financial impact. The US economy remained robust as indicated by the 4.2% annualised growth rate for Q2, 2018. However, while this was spurred by the Trump tax cuts at the turn of the year, the signs of US wage growth were very slow to emerge, but there were incremental signs they were building. In the absence of material wage growth and other inflationary pressures, inflation remained contained, though in response to the strength of the US economy, the US Federal Reserve raised interest rates by a further 0.25% during the quarter, bringing the rate to 2.25% (the upper bound). Elsewhere, the UK’s Bank of England saw Mark Carney extend his appointment till post the UK exit from the European Union, and there was a 0.25% interest rate rise in August, which many market participants believed was unwarranted. The European Central Bank did not formally raise interest rates, but remains on a path of reducing liquidity, while the Bank of Japan is further behind that with monetary policy remaining very accommodative. In contrast, the People’s Bank of China continued on its easing path during the third quarter to fend off the current slowdown in China. During the quarter global equity markets, as measured by the MSCI World Index rose by 4.98%. This made the third quarter the strongest quarter of the year to date for equities. For the calendar months during the quarter the MSCI World produced positive returns for all months of the quarter with July leading August and September as the pace of progress diminished over the quarter. As a result, global developed equities were up 5.43% to the end of September 2018. Examining the regional differences, in US dollars, North America continued to lead the way and rose 7.01% during the quarter. Japan was the next best performing market and gained 3.68%, while Europe only returned 0.80% and the Pacific ex Japan region declined -0.55%. The weakness in Emerging Markets, referred to above, saw them decline by -1.09% for the quarter, and thus there was a second consecutive quarter of material under-performance versus developed markets. However, the market continued to see US dollar strength, and so in local terms all the major developed regions posted positive absolute returns, while Emerging Markets were effectively flat being only -0.04% down.


24

ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2018 At a sector level all 11 sectors produced positive absolute returns for the quarter, except for the Materials sector which returned -0.53%. The Real Estate, Energy and Utilities sectors were also relatively weak, as while all produced a positive absolute return, none of them managed to return more than 1%. In contrast, the Health Care sector returned 11.50% to lead all the other sectors, and Information Technology rose 8.14%. This was followed by Industrials and Telecommunication Services, which both out-performed the wider market, while the other remaining sectors under-performed the market. Once again global bonds and for the third quarter produced a return of -0.92%, as measured by the Bloomberg Barclays Capital Global Aggregate Bond Index. Looking within the quarter, July saw bonds decline slightly, while August saw a slight rebound, although this was not sufficient for a positive return for the two-months to the end of August. It was then in September that the global bond markets sold-off and declined by -0.86%, to leave the bond markets down for the quarter. Linked to the September performance, the US Treasury 10 year yield moved from about 2.8% with a week of August to go, to end the quarter at 3.06%. Hence, there has been a material move up in yields during September. For 2018 year-to-date global bonds have delivered a return of -2.37%, and hence the relative out-performance of equities compared to bonds has extended across the third quarter. Unlike the overall bond market, the corporate portion of the global bond market managed to cross into positive territory for the third quarter. The Bloomberg Barclays Global Aggregate Corporate Index gained 0.41% for the quarter, and thus again slightly out-performed the wider bond market. Despite the positive return for the third quarter, the global corporate market remains in negative territory for the year, with a return of -2.78% and hence is under-performing the broader global bond markets, due to the performance differential from the first quarter. The final quarter of 2018 proved to be one of the most difficult periods for markets since the Global Financial Crisis. Investors had become increasingly concerned about a slowing global economy, primarily focused on both China and the USA, as the world’s two largest economies. This led to significant movements in markets, and the quarter was the worst period for global equities, as measured by the MSCI World Index, since the third quarter of 2011. The concerns had their origin in a basket of causes, including the US-China trade war, Chinese GDP growth concerns, the economic outlook for the US, and the rapid fall in the oil price. While no single issue was identifiably responsible, the cocktail of factors led to a substantial deterioration in the overall outlook for global GDP, which led investors to turn defensive. Although outright panic and capitulation has so far been avoided, defensive market movements have been clearly evident. The quarter saw the G20 meeting take place and enabled President Trump and China’s Jinping to agree to postpone tariff rises and allow time for trade talks – this is a positive, but until a clear resolution and end to the trade war emerges the risk here remains. In Europe, although Brexit progress was made, continued deadlock in the UK Parliament means the nature of Brexit still remains uncertain. In Italy, progress was made on budget talks, and agreement reached in December, though challenges remain there also. With investors concerned about economic issues, geopolitical factors failed to obtain any material headlines during the period, though risks clearly remain. Despite the market environment, the US Federal Reserve continued with its interest rate hiking plan and raised interest rates by a further 0.25% to 2.50% – Chairman Powell’s comments about the US Federal Reserve being on “autopilot” concerned markets and added to investors’ concerns. The European Central Bank ended its quantitative easing stimulus program in December, while the Chinese authorities have been leaning towards further loosening of policy to stimulate growth in the wake of the slowing domestic economy.


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ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2018 During the final quarter of 2018, global equity markets, as measured by the MSCI World Index, dropped by -13.42%. The weak final quarter also saw two extremely weak months, with October producing a fall of -7.34% and December a decline of -7.60%, both of which were poorer months than any since May 2012. The extent of the weakness during the fourth quarter also meant that global equities declined by -8.71% for 2018 – the weakest year for equities since 2008! At a regional level no market was able to avoid the global decline: Japan declined by -14.23%, though this was closely followed by North America which declined by -13.88% – this was driven partly by a sell-off in technology securities, including some of the ‘FANG’ stocks. Europe decreased by -12.72%, while the Pacific excluding Japan region only fell -7.94%, and Emerging Markets fell by -7.47%, thus materially out-performing Developed Markets. In contrast, for 2018 North America was the best performing region, only declining -5.73%, while Europe declined -14.86% and Emerging Markets -14.58%. For the quarter the outcome was not materially different in local terms. At a sector level the final quarter saw some classification changes, with the Telecommunication Services sector being renamed to the Communication Services sector. The overall market direction meant that only Utilities, a clearly defensive sector, was able to produce a positive absolute return, with a small gain of 0.46%. Real Estate, another defensive sector, was the next best performing but still declined -4.53%. In contrast, the Energy sector, suffering with the fall in the oil price saw a sharp sell-off, resulting in a decline of -21.67%. Information Technology was the next weakest sector and declined -17.70%, while Industrials also declined by more than -15%, with a fall of -16.29%. For 2018 Financials were the worst performing sector declining -16.97%, while Materials fell -16.93%, and Health Care and Utilities were the best performing sectors, and the only two to post positive returns, rising 2.51% and 1.97% respectively. With investors concerned with the growth outlook, there was a move towards bonds, which saw them rise 1.20% for the quarter, as measured by the Bloomberg Barclays Capital Global Aggregate Bond Index. This was driven by the market return in December when bonds rose by 2.02% – the best month for global bonds since June 2016. The strength of the rally in the bond market is simplistically illustrated by the move in the US 10-year Treasury which strengthened from more than 3.2% in early November to below 2.7% by year end (and to below 2.6% in early January). Meanwhile, October saw global bonds decline by -1.12% and November saw them rise by 0.31%. Despite this strong rally at the end of the year, it was insufficient for bonds to post a positive return for 2018, which ended with a decline of -1.20% for the year. The corporate segment of the global bond market reflected the overall bond market, but the magnitude of the rally in December was less extensive, meaning that for the quarter as a whole the market still fell by -0.81%, as measured by the Bloomberg Barclays Global Aggregate Corporate Index. October saw the market decline -1.66% and November saw a fall of -0.37%, but December’s rally only saw a gain of 1.24%. Hence, corporate bonds under-performed the wider bond market by -2% for the quarter, which reiterates that it was the sovereign part of the market that drove the overall bond market. For 2018 as a whole, the global corporate market declined by -3.57%.


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SANLAM GLOBAL BALANCED FUND Investment Objective The Sanlam Global Balanced Fund (the “Fund”) aims to provide above average long-term capital growth. Fund Performance

Note: The Fund benchmark is 65% MSCI World Index/35% Barclays Capital Global Aggregate Bond. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. With equity returns experiencing a jump in volatility and bond returns failing to gain any forward momentum, 2018 proved to be a fairly challenging year for the Fund in both absolute and relative terms. The Fund underperformed its benchmark (65% MSCI World Index / 35% Barclays Capital Global Aggregate Index) by -1.51% for the year, having fallen by -7.44% in absolute terms. The Fund had its best absolute quarter in Q3, where it advanced 2.19%, however Q2 was the only quarter in which the Fund beat its benchmark, outperforming by +0.34%. The Fund now lags its benchmark by -0.72% since inception having produced an annualised absolute return of 3.68%.


27

SANLAM GLOBAL BALANCED FUND (CONTINUED) Fund Outlook With 2018 being the first calendar year producing a negative return for equities since the Global Financial Crisis, it may appear that the bull market that has prevailed since 2009 might now be over. However, while 2018 ended with a negative return most of this was attributable to events in the fourth quarter and even December itself. With the recovery in markets in early 2019 (at the time of writing), the call to the end of the bull market may yet prove to be premature. The US China trade discussions are also an overhang on the global economy and the growth outlook, and while these remain outstanding, markets continue to be concerned. The consequences so far of the trade dispute, and tariffs imposed to date, has damaged at the margins both the US and Chinese economies, and in turn have contributed to the global economic slowdown. Additionally, the US economy now appears to be suffering from regular political stand-offs, which has already led to partial shutdowns of the federal government. Brexit remains an outstanding issue with a range of possibilities that could yet materialise, from a no deal Brexit to no Brexit at all. In the face of the backdrop of the global economic slowdown, the US Federal Reserve, which had been expected to increase interest rates multiple times during 2019, has responded to indicate that the path of US interest rates is now much less clear. Hence, it is possible that there might not be any US interest rate increases during 2019, and furthermore some are speculating that the cutting cycle may start in late 2019. This looks unlikely, but if the US economy headed into recession in the latter part of 2019 it is not out of the question. At a corporate level, most companies appear to be delivering robust results, despite the global economic slowdown. So long as corporates are able to deliver on earnings, then investors are unlikely to punish the share prices severely, given the dramatic moves in valuation levels seen over Q4, 2018. Assuming these earnings are delivered then valuations look much more reasonable globally, though still with some clear regional differences. This is where Emerging Markets are potentially looking most attractive. The risks are more evident at this time, but overall we believe, for now, there are reasons to remain constructive on the outlook, and that recent events will turn out to be a healthy correction in a secular bull market. One clear positive for the future is the fall in the oil price, which should help stimulate global economic growth. Investment Manager Sanlam Investments UK Limited


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SANLAM GLOBAL EQUITY FUND Investment Objective The Sanlam Global Equity Fund (the “Fund”) aims to provide above average long-term capital growth.

Fund Performance

Note: The Fund benchmark is MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. With the MSCI World Index posting its first negative absolute annual return since 2015, the Fund was unable to protect against the falling equity market in 2018, lagging the benchmark by -1.97% over the period. This return was driven by four successive quarters of underperformance, most notably in Q3 where the Fund lagged by -0.95%, despite advancing 4.03% in absolute terms. In absolute terms the fourth quarter was, by some distance, the most damaging quarter, with the Fund falling -13.95% while the benchmark fell -13.42%. This was driven by a loss in confidence over earnings growth and economic momentum predominantly in the North American region. Rolling three- and five-year returns remain challenging, while the Fund and the benchmark have annualised 4.69% and 5.08% respectively since inception.


29

SANLAM GLOBAL EQUITY FUND (CONTINUED) Fund Outlook With 2018 being the first calendar year producing a negative return for equities since the Global Financial Crisis, it may appear that the bull market that has prevailed since 2009 might now be over. However, while 2018 ended with a negative return most of this was attributable to events in the fourth quarter and even December itself. With the recovery in markets in early 2019 (at the time of writing), the call to the end of the bull market may yet prove to be premature. The US China trade discussions are also an overhang on the global economy and the growth outlook, and while these remain outstanding, markets continue to be concerned. The consequences so far of the trade dispute, and tariffs imposed to date, has damaged at the margins both the US and Chinese economy, and in turn this is contributing to the global economic slowdown. Additionally, the US economy now appears to be suffering from regular political stand-offs, which has already led to partial shutdowns of the federal government. Brexit remains an outstanding issue with a range of possibilities that could yet materialise, from a no deal Brexit to no Brexit at all. In the face of the backdrop of the global economic slowdown, the US Federal Reserve, which had been expected to increase interest rates multiple times during 2019, has responded to indicate that the path of US interest rates is now much less clear. Hence, it is possible that there might not be any US interest rate increases during 2019, and furthermore some are speculating that the cutting cycle may start in late 2019. This looks unlikely, but if the US economy headed into recession in the latter part of 2019 it is not out of the question. At a corporate level, most companies appear to be delivering robust results, despite the global economic slowdown. So long as corporates are able to deliver on earnings, then investors are unlikely to punish the share prices severely, given the dramatic moves in valuation levels seen over Q4, 2018. Assuming these earnings are delivered then valuations look much more reasonable globally, though still with some clear regional differences. This is where Emerging Markets are potentially looking most attractive. The risks are more evident at this time, but overall we believe, for now, there are reasons to remain constructive on the outlook, and that recent events will turn out to be a healthy correction in a secular bull market. One clear positive for the future is the fall in the oil price, which should help stimulate global economic growth. Investment Managers Sanlam Investment Management (Pty) Limited

Sanlam Investments UK Limited


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SANLAM GLOBAL LIQUIDITY FUND

Investment Objective

The Sanlam Global Liquidity Fund (the “Fund”) aims to provide a return consistent with investment in a

combination of highly liquid Euro, Sterling and US Dollar Investments.

Fund Performance

Note: The Fund benchmark is a composite benchmark (45% US/40% EU/15% GB). Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. As the Fed continued on its upward interest rate path in 2018, the Fund endured a more volatile year in terms of its absolute performance, falling -2.60%. Measured against the benchmark (45% 7 Day USD LIBID, 40% 7 Day EUR LIBID and 15% 7 Day GBP LIBID), the Fund underperformed by -0.45% in 2018 – the majority of this underperformance being driven predominantly by the US, with the ECB and Bank of England much further behind in terms of monetary tightening. The Fund’s quarterly performance was marginally behind throughout the year, underperforming by -0.14%, -0.15%, -0.05% and -0.12% over Q1, Q2, Q3 and Q4 respectively. Q1 was, however, the Fund’s most positive quarter in absolute terms, advancing by 1.52% over the period. Since inception, the Fund now lags its benchmark by -0.11% on an annualised basis having returned 0.85% annualised to its investors.


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SANLAM GLOBAL LIQUIDITY FUND (CONTINUED) Fund Outlook With 2018 being the first calendar year producing a negative return for equities since the Global Financial Crisis, it may appear that the bull market that has prevailed since 2009 might now be over. However, while 2018 ended with a negative return most of this was attributable to events in the fourth quarter and even December itself. With the recovery in markets in early 2019 (at the time of writing), the call to the end of the bull market may yet prove to be premature. What has become apparent during the second-half of 2018 is that the cyclical upturn in global economic growth is clearly not as strong as it has been for the last couple of years, and this has been the primary aspect causing concern for markets. That said, global growth is slowing and the International Monetary Fund (IMF) has revised its forecast for 2019 global growth from 3.7% (in October 2018) to 3.5% (in January 2019), but importantly, and this is where markets appear to have overreacted in Q4, 2018, growth is continuing and remains, just not at the pace we have experienced more recently. In the face of the backdrop of the global economic slowdown, the US Federal Reserve, which had been expected to increase interest rates multiple times during 2019, has responded to indicate that the path of US interest rates is now much less clear. Hence, it is possible that there might not be any US interest rate increases during 2019, and furthermore some are speculating that the cutting cycle may start in late 2019. This looks unlikely, but if the US economy headed into recession in the latter part of 2019 it is not out of the question. More likely, the US economy will remain robust, but at a slightly more measured pace, and hence interest rate increases will also be more muted in the future. Inflation also continues to remain under control and shows no signs of presenting any material threats in the immediate future. Elsewhere, the European Central Bank and Bank of Japan are also likely to keep interest rates on hold in 2019, while the Bank of England appears to be postponing any decisions until the Brexit issue is clearly resolved. The People’s Bank of China is however gradually easing policy, and this is expected to continue while the Chinese economy remains relatively weak. The risks are more evident at this time, but overall we believe, for now, there are reasons to remain constructive on the outlook, and that recent events will turn out to be a healthy correction in a secular bull market. One clear positive for the future is the fall in the oil price, which should help stimulate global economic growth.

Investment Manager Sanlam Investment Management (Pty) Limited


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SANLAM BIFM WORLD EQUITY FUND

Investment Objective The investment objective of Sanlam BIFM World Equity Fund (the “Fund”) is to provide long-term capital growth.

Fund Performance

The Fund is benchmarked against MSCI World Index. Note: Performance figures longer than 12 months are annualised. Figures are quoted net of fees.

The Fund declined by -5.08% over the twelve-month period to 31 December 2018, underperforming the

benchmark MSCI World Index decline of -7.99% by -5.08%.

The year started on a positive note, where January’s performance was characterised by positive

sentiment stemming from the new tax regime in the United States which would result in tax savings. This

was, however, short-lived as the month of February brought with it a new wave of concerns which

reflected escalating trade wars emanating from protectionist measures and concerns about tighter

monetary policy from the Fed. This sparked a wave of selling across equity markets.

Throughout the rest of the year, markets reflected heightened volatility as trade tensions continued to

escalate between the two economic giants, USA and China, and as geopolitical tensions in the European

region heightened. These concerns were exacerbated in the fourth quarter by the Fed’s decision to stay

the course on rate hikes and continue with quantitative tightening. After swinging wildly in the final weeks

of trading, global and international equities finished December with their worst annual loss since 2008 and

worst quarterly decline since 2011. Global value stocks underperformed global growth stocks in 2018 for

the ninth year out of the past 10, extending one of value’s longest droughts on record. Yet, as the year

progressed, value improved, breaking out in August and then limiting losses in the volatile fourth quarter.


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SANLAM BIFM WORLD EQUITY FUND (CONTINUED)

Fund Performance (continued) Performance aiders during the period were an underweight exposure to industrials, stock selection within materials and communication services. although an overweight exposure to healthcare added to fund relative performance, it was more than offset by security selection within the sector. our holdings in consumer staples and financials also negated fund performance. We have maintained an underweight position towards the US market. This position continued to adversely impact on the relative performance of the Fund as the US was the top-performing region during the year. Our conviction holdings in emerging markets have faced challenges originating in the US, including a strong dollar, diminished liquidity, as well as restrictive terms of trade which threaten Asian exports.

Fund Outlook We see scope for continued moderate global growth as China likely eases and the Federal Reserve Board (“the Fed”) and European Central Bank (ECB) manage their respective economic cycles. While valuations look extended in some parts of the market, we also see pockets of opportunity, particularly outside the United States. Volatility is likely to remain elevated given rising late-cycle risks, but dislocations present opportunities for disciplined stock pickers. The tension between policymakers attempting to normalize and investors rebelling may modulate markets for some time. While the Fed and other central banks have “paused” policy tightening, normalization remains the key policy objective longer-term, one that, if successful, would likely lead to a more discriminating market conducive to fundamental price discovery. The implications for value are encouraging, as we would expect what lagged in the period of experimentation to lead in the period of normalization. At present the (value) style appears to be thoroughly loathed and generally viewed as incompatible with a low-growth, low-rate environment. On various measures, value has rarely been cheaper or performed worse over a longer period relative to growth. Such indicators suggest we may be approaching the “point of maximum pessimism” for value.

Investment Managers Sanlam Investments UK Limited


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-4%

-3%

-2%

-1%

0%

1%

2%

3%

1st Qtr 2018 2nd Qtr 2018 3rd Qtr 2018 4th Qtr 2018 YTD Inception

Fund USD-terms 1.05% -2.24% -1.04% 0.54% -1.69% 0.75%

Benchmark 1.36% -2.78% -0.92% 1.20% -1.14% 0.77%

Excess return -0.31% 0.54% -0.12% -0.66% -0.55% -0.02%

SANLAM BIFM GLOBAL FIXED INCOME FUND

Investment Objective The investment objective of the Sanlam BIFM Global Fixed Income Fund (the “Fund”) is to provide income and capital appreciation over the long term. The Fund invests in offshore bonds including both Government and corporate to achieve the Fund’s objective.

Fund Performance

The Fund is benchmarked against Bloomberg Barclays Global Aggregate (Unhedged) Index. Note: Performance figures longer than 12 months are annualised. Figures quoted are net of fees.

The Fund returned -1.69% during 2018 versus the benchmark return of -1.14%. The Fund therefore

underperformed the benchmark by -0.55% for the year ended 31 December 2018. Since inception, the

Fund is marginally behind the benchmark, underperforming the benchmark by -0.02%. Performance over

the course of the year was fairly mixed in both absolute and relative terms – the Fund outperformed in Q2

by +0.54% although it still lost -2.24%. In absolute terms, the Fund’s strongest quarters were Q1 and Q4,

during which the Fund advanced by 1.05% and 0.54%. The Fund’s absolute returns suffered the most in

Q2, as it fell by -2.24%.

Fund Outlook

Global growth is expected to slow down in 2019 with no end in sight for the geopolitical risks presented by

trade tensions and the risk of a hard Brexit. The US Fed is anticipated to continue with its rake hike

regime, and the Fed rate is expected to peak at 3%. While the European Central Bank (ECB) has done

away with its balance sheet expansion, quantitative tightening or rate hikes aren’t like to happen soon,

and this does not make a strong case for the low/negative and unattractive rate in the Eurozone.


35

SANLAM BIFM GLOBAL FIXED INCOME FUND (CONTINUED)

Fund Outlook (continued)

We continue to be underweight duration vis a vis the benchmark and favour credit from a value

perspective. We’re also slightly underweight developed market sovereign bonds due to low term

premiums globally, monetary policy normalization in the US and improved economic growth and inflation

in Europe.

Investment Manager Sanlam Investments UK Limited


36

SANLAM PRIVATE WEALTH GLOBAL BALANCED FUND Investment Objective The Sanlam Private Wealth Global Balanced Fund (the “Fund”) aims to provide capital growth. Fund Performance

Note: The Fund benchmark is a composite benchmark (60% MSCI World / 30% Barclays Capital Global Agg. Bond / 10% 7 Day USD LIBID). Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. The Fund returned -5.22% for the year ending 2018, underperforming the benchmark by -0.07%. 2018 was an extremely difficult year for financial markets. Investors were disillusioned by the rather “hawkish” stance of The Federal Reserve and equity markets globally sold off materially in the second half of the year. Tail risks like the trade tensions between the US and the Brexit debacle added further uncertainty. Global equities as measured by the MSCI World Index closed the year 8.7% down. Global bonds also came short as the FTSE World Government Bond Index closed 0.8% lower in US$ terms. Cash in US$(+1.9%) was one of a very few asset classes that posted a positive return in US$. Fund Outlook The global recovery appears to in an advanced stage. It is clear that the three major economies are losing momentum although a global economic recession is certainly not our base case view. It is clear that central banks globally acknowledge the slowing momentum and they have clearly signaled that they will attempt to manufacture a “soft landing.” A recovery in investor sentiment in the short term is quite plausible. The sell-off in equity prices in 2H 2018 introduced “fairness” into equity valuations. However, we believe that equity prices will be driven by the earnings generated by companies and the market’s interpretation of central banks’ direction. Therefore we remain cautious. Although there are few signs that would suggest that inflation is an issue, bond prices remain high. Hence, the Fund maintains marginal underweight exposure to equities and is underweight fixed interest assets. In short, the Fund is relatively conservatively positioned going forward. Investment Manager Sanlam Private Wealth (Pty) Ltd


37

COUNTERPOINT GLOBAL EQUITY FUND Investment Objective The Counterpoint Global Equity Fund (the “Fund”) aims to provide investors with long-term capital growth.

Fund Performance

The Fund is benchmarked against MSCI World Index. Note: Performance figures longer than 12 months are annualised. Figures are quoted net of fees.

The Fund out-performed the benchmark by 1.01% in 2018. Defensive positioning and lower direct EM Equity exposure were the main contributing factors.

In 2018, volatility returned to risk asset markets. Global equities ended down 7.98%, with an escalating

downward trajectory during the latter months of the year. Equities made solid progress in the first nine

months of 2018, despite a difficult first quarter. Increased uncertainty in late January and early February

led to equity losses but these were subsequently recouped as developed markets clawed back returns up

to September.

The real damage to returns occurred during the fourth quarter, as a rapid escalation in risk aversion took

hold. The US Equity market initially held up well but December 2018 saw an abrupt and deep capitulation,

which led to global equity contagion. The growing disparity across markets and economies intensified over

the quarter as trade war rhetoric and central bank action once again took center stage. The Fed

maintained their commitment to quantitative tightening in early December, which initially supported the US

Dollar and maintained pressure on Emerging Markets. The US Fed announcement led to an adverse

market reaction, with the accompanying narrative eventually resulting in a tantrum like sell-off in risk

assets. Safe havens like Gold and Treasuries benefitted. As a consequence, the CBOE Volatility Index

(VIX) spiked in December. The sudden and deep drawdown in December, punctured the bubble of

investor complacency and appears to have moderated expectations. The MSCI World Index experienced

a large 13.48% loss in the fourth quarter (it's worst quarterly performance since the third quarter of 2011).


38

COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED) Fund Performance (continued) Emerging market equities had an equally torrid year. The US Fed maintained their commitment to quantitative tightening for most of the year, resulting in sustained US Dollar strength which exerted steady downward pressure on EM returns and currencies.

An additional feature of the final quarter was the inability of security prices to rebound quickly, as has

been the case in recent cycles. Emerging market securities however, declined at a slower rate as the

synchronized global growth narrative has rapidly been replaced by fears of a global slowdown, particularly

in China. In the Fund, stock selection was the biggest contributor over the period. The largest contribution occurred in Consumer Discretionary sector where sector neutrality was augmented by good stock picking in Media and Real Estate. At the sector level, the net result was positive but the underlying picture mixed. The underweight position in Materials and Telecoms contributed most. The underweight in Energy was a big detractor over the period and was mitigated slightly by excellent stock selection. The under-exposure to Technology and Utilities were the biggest detractors over the course of the year.

The fund has lower direct EM exposure, which contributed for most of the year except in Q4 when the

MSCI EM declined by less than developed market equities.

The Fund has maintained above-average liquidity, since mid-year 2017. As a consequence, cash drag

has been a perennial feature of our return profile, in a market that has mostly advanced. In broad terms,

the funds above-average cash position provided mixed support in a more volatile 2018. In the first quarter

it enabled the manager to buy undervalued securities, after the February sell-off. The fourth quarter was

better suited to our premature positioning and consequently, cash added significant value and allowed the

manager to reposition towards areas of the market that offered better value.

We are patient and the Fund positioning remains virtually unchanged. Fund Outlook The path of least resistance for Global Equities remains higher. The late year correction has resulted in very attractive valuations and broadly oversold market conditions, that have often preceded sudden surges to the upside. The relative value of Global Equities remains attractive, with sustainable yields above comparable Bonds. We are undoubtedly in the late stages of the stock-market cycle and policy-makers response to slowing growth has introduced an additional vector of uncertainty. The disparity in economic fundamentals and prevailing market narratives is unusually wide. In this context, we are proceeding with a healthy dose of caution. The fund is positioned for meaningful participation in equity advances. Our above-average cash weighting should enable the fund to perform well in sideways and down equity markets. Investment Manager Counterpoint Boutique Pty Limited


39

INDEPENDENT GLOBAL FLEXIBLE FUND Investment Objective The Independent Global Flexible Fund (the “Fund”) aims to achieve long-term capital growth for investors. Fund Performance

Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. After a subdued first nine months of the year, the last quarter of 2018 witnessed severe distress across asset classes. In fact, 2018 was characterised by a rolling correction across most asset classes. In fact, 2018 has had the fewest number of asset classes that have been able to beat inflation since 2008, indicating there really has not been anywhere to hide! Global equities have specifically taken an awful beating with the MSCI World losing 13.4% of its value in 2018. The negative sentiment impacting markets was driven principally by a more hawkish federal reserve and US China trade wars. The performance of the Fund was poor for 2018, particularly in the last quarter, as we held considerable exposure to Chinese equities which fell dramatically over trade war concerns. Below we highlight the macroeconomic issues that may impact the Fund during 2019. US business cycle The US is well into a mature business cycle but without any signs of near-term recession risk. We believe the current expansion will continue to surprise with its durability and longevity. Contrary to popular perceptions, monetary policy settings still provide a tailwind to economic growth and we believe pro-cyclical fiscal policy in the US will surprise to the upside next year. With the US economy growing, inflation under control, stable monetary policy and reasonable valuations it is not difficult to imagine that equites will rebound from this base. More so given the absence of poor relative returns on offer from other asset classes. Bear in mind that since 1946 the S&P 500 has never been down 12 months following midterm elections. A bipartisan agreement in the US on infrastructure spending would certainly extend the equity bull market even further. Trump has been consistent on most of his other election promises and there is some agreement with the Democratic Party in terms of needing infrastructure spending.


40

INDEPENDENT GLOBAL FLEXIBLE FUND Fund Performance (continued) US interest rates The long-term trajectory of US interest rates is higher, but it seems likely the Fed will pause along this path during 2019 and only raise interest rates in March and possibly June. We don’t believe the level of interest rates this implies represents a significant threat to US equities at this stage. This is consistent with empirical evidence, especially when one considers that historically equity markets trade at a price to earnings ratio of 19x when inflation rates are around 2% and the S&P 500 is currently trading at a forward price to earnings ratio of 15.6x. Longer-term, higher interest will negatively impact highly indebted companies and credit quality is a major concern of ours over the medium to longer term. One consequence of our interest rate concerns is that we are reducing exposure to highly indebted companies. US dollar The pause in the Fed hiking cycle is likely to stop the dollar strengthening further and with the ECB and BoE being increasingly committed to interest rate tightening, the dollar will face additional headwinds. With the US operating at full capacity the only way to meet additional demand is to increase imports. Therefore, the US trade deficit is likely to deteriorate on a trend basis. Any US infrastructure plans are likely to accelerate this trend. These two factors can only be dollar negative over the longer term. These factors are positive for global risk assets, particularly emerging markets! China The US and China will engage in a long-term technological and military competition as China threatens to challenge the US as the world’s largest economy over the next decade. Nevertheless, the trade wars will lose relevance next year. We have already seen concessions from China with regards to intellectual property, auto sales, soya beans and foreign company ownership. We don’t believe the additional US tariffs on Chinese goods are material enough yet to have a long-term structural impact on global economic growth. The higher tariffs increase prices by $14bn but that needs to be considered against the size of the US and Chinese economies which total $20trn and $14trn respectively. The tariffs can be absorbed. Furthermore, the depreciation of the Renminbi against the US dollar has meant some of the sting has been nullified for China. Ultimately the US and China want similar things; a weaker US$/ RMB and the opening of the Chinese markets to US companies. We are also at the beginning of what may be a significant easing cycle in China as the Chinese government reacts to softening economic data and rising concerns around corporate debt. These positive actions may cause nominal GDP and corporate revenue to show rising year on year growth in the back half of 2019. These actions will support the Chinese economy’s transition from manufacturing and industry to services. Our High Conviction Investments Our favourite sector remains technology. In the last stages of the bull market dating back to the 1960’s, the technology sector delivered a median 14% outperformance relative to the S&P 500. Regulatory risks are overstated in our view and many large technology companies have been very proactive in addressing concerns around topics such as privacy. A material valuation differential exists between developed and emerging markets and we have positioned the fund accordingly to exploit this anomaly. Chinese stocks (particularly internet companies) have fallen by up to a third because of growth and trade war concerns. China has a growing and economically empowered middle class that will continue to drive robust consumer spending in China. The dominant emerging markets these days, led by China and India, are big fuel importers. A 25% plunge in Brent crude since mid-October will provide a much-needed tailwind to these two countries. We anticipate the dollar will weaken next year and this generally coincides with emerging market outperformance. A material valuation differential can also be found between value and growth shares and we have positioned the Fund accordingly to exploit this anomaly. US banks will benefit in a raising interest rate environment. US banks have been one of the worse performing sectors of the year (minus 20%) and we believe their robust franchises, strong balance sheets and cheap valuation position them well for future returns.


41

INDEPENDENT GLOBAL FLEXIBLE FUND Fund Performance (continued) Many pharmaceutical companies trade at wide discount to the broader market with little implied valuation for their pipelines hinting of the opportunity. Traditional media companies have been usurped by Netflix and are proactively changing business models, yet their share prices imply earnings perpetually contracting. Due to the sell-off in global equities we believe equites are appropriately priced for the risks out there. The recent equity price action is corrective rather than a structural price change. The combination of accommodative US monetary policy and US fiscal policy remains supportive of risk assets. Additionally, the US is not in a recession, inflation is not a problem, earnings are growing, and unemployment is declining. Equites still offer the best forecast returns from all asset classes. We therefore believe there is sufficient justification to be long selective risk assets (equities), based on the returns we anticipate from those assets over the medium term. We remain positioned as such in the Independent Global Flexible Fund.

Fund Outlook We maintain a fully invested position as we believe global equites still offer the best return over the long-term. Equities have had their low point for the year and returns will improve through year-end. The primary concern for markets for the year have revolved around: trade wars, internet technology regulation, emerging markets and political tension in Europe. Our view is that: trade wars are a micro rather than macro event; regulators can’t regulate what they don’t understand and tech companies will self-regulate first; emerging markets have hit their low-point and their $US debt is not at critical levels, and; Italy won’t get constitutional approval to leave EU. Against this backdrop we remain confident that the positioning of the Fund is suited to the current environment.

Investment Manager Independent Securities (Pty) Ltd


42

COUNTERPOINT GLOBAL OWNER MANAGED FLEXIBLE FUND Investment Objective The Counterpoint Global Owner Managed Flexible Fund (the “Fund”) aims to provide long term capital

growth.

Fund Performance

The Fund is benchmarked against an internal benchmark that comprises 65% MSCI World Index, 25% Bloomberg Barclays Global

Bond Index (USD) and 10% in USD Cash. Note: Performance figures longer than 12 months are annualised. Figures are quoted net

of fees.

The Fund lagged the benchmark by 0.72% in 2018. Equity selection was the biggest detractor. Conservative positioning and lower direct EM exposure contributed strongly but was not enough to mitigate the adverse impact of stock selection. In 2018, volatility returned to risk asset markets. Global equities ended down 7.98%, with an escalating downward trajectory during the latter months of the year. Equities made solid progress in the first nine months of 2018, despite a difficult first quarter. Increased uncertainty in late January and early February led to equity losses but these were subsequently recouped as developed markets clawed back returns up to September. The real damage to returns occurred during the fourth quarter, as a rapid escalation in risk aversion took hold. The US Equity market initially held up well but December 2018 saw an abrupt and deep capitulation, which led to global equity contagion. The growing disparity across markets and economies intensified over the quarter as trade war rhetoric and central bank action once again took center stage. The Fed maintained their commitment to quantitative tightening in early December, which initially supported the US Dollar and maintained pressure on Emerging Markets. The US Fed announcement led to an adverse market reaction, with the accompanying narrative eventually resulting in a tantrum like sell-off in risk assets. Safe havens like Gold and Treasuries benefitted. As a consequence, the CBOE Volatility Index (VIX) spiked in December. The sudden and deep drawdown in December, punctured the bubble of investor complacency and appears to have moderated expectations. The MSCI World Index experienced a large 13.48% loss in the fourth quarter (it's worst quarterly performance since the third quarter of 2011)


43

COUNTERPOINT GLOBAL OWNER MANAGED FLEXIBLE FUND (CONTINUED) Fund Performance (continued) Emerging market equities had an equally torrid year. The US Fed maintained their commitment to quantitative tightening for most of the year, resulting in sustained US Dollar strength which exerted steady downward pressure on EM returns and currencies.

In mid 2018, the Fund was aggressively repositioned into USD Cash, out of Global Bonds and EM

Equities. This positioning worked exceptionally well in the third quarter when Global Bond Yields rose and

EM Debt sold off. In direct contrast, the positioning did not work well in December 2018, as US Bonds

advanced and EM debt recovered. Stock selection was the biggest detractor over the period. The significant overweight in Tobacco stocks detracted the most. In addition the fund’s under-exposure to Technology and Utilities detracted to the same extent. The largest contribution occurred in Consumer Discretionary sector where sector neutrality was augmented by good stock picking in Media and Real Estate. The underweight in Energy was a big detractor over the period and was mitigated slightly by excellent stock selection.

The fund has lower direct EM equity exposure, which contributed for most of the year except in Q4 when

the MSCI EM declined by less than developed market equities.

The Fund has maintained above-average liquidity, since mid-year 2017. As a consequence, cash drag

has been a perennial feature of our return profile, in a market that has mostly advanced. In broad terms,

the funds above-average cash position provided mixed support in a more volatile 2018. In the first quarter

it enabled the manager to buy undervalued securities, after the February sell-off. The fourth quarter was

better suited to our premature positioning and consequently, cash added significant value and allowed the

manager to reposition towards areas of the market that offered better value.

We are patient and the Fund positioning remains virtually unchanged. Fund Outlook The path of least resistance for Global Equities remains higher. The late year correction has resulted in very attractive valuations and broadly oversold market conditions, that have often preceded sudden surges to the upside. The relative value of Global Equities remains attractive, with sustainable yields above comparable Bonds. We are undoubtedly in the late stages of the stock-market cycle and policy-makers response to slowing growth has introduced an additional vector of uncertainty. The disparity in economic fundamentals and prevailing market narratives is unusually wide. In this context, we are proceeding with a healthy dose of caution. The fund is positioned for meaningful participation in equity advances. Our above-average cash weighting should enable the fund to perform well in sideways and down equity markets. Investment Manager

Counterpoint Boutique Pty Ltd


44

ARX PANGAIA GLOBAL MANAGED FUND Investment Objective The ARX Pangaia Global Managed Fund (“the Fund”) aims to provide long term capital growth. Fund Performance

Note: The Fund is bench marked against US CPI. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. 2018 was a tough and disappointing year. The Fund returned -11.4% versus 1.93% for its cash benchmark (a relative underperformance of -13.33%) and -8.1% for its average Global Balanced Fund peer group. Our performance also lagged relative to the MSCI AC World Index which was down -9.4%. Periods of underperformance are inevitable, and yet they are painful when they arrive. What makes our underperformance more frustrating is the fact that we correctly anticipated the developing market stress, and started reducing equities from a high of 65% of the portfolio in May 2018 to 55% by September (when the market was still in positive territory for the year) and further to 50% by December. Unfortunately the final result failed to reflect these positive actions. All our underperformance stemmed from the pre October 2018 period when a two tier market evolved with Growth Strategies and the US market in particular ran away from Value based and the Rest of the World. If some solace, our relative performance stabilized from October onwards when the Growth strategies and the US turned down too, and so far this year, albeit somewhat prematurely, we are even outperforming slightly.


45

ARX PANGAIA GLOBAL MANAGED FUND (CONTINUED) Fund Performance (continued) We have identified two major sources for our 2018 underperformance: 1.Our exposure to Value Based Strategies, predominantly though our exposure to the Orbis funds, and to a lesser extent some of our own value equity selections. Value based strategies and Orbis in particular had a dismal year. The flagship Orbis Global Equity Fund was down 21.5% over 2018, twice that of the broader market decline. The poor performance of Value reflected an investor rush toward apparent “safety”, driving up share prices of index heavyweights, whereas any company with an element of uncertainty saw its share price drop dramatically. This rush towards index heavyweights was already in place well before 2018, and accelerated in the run up to October. The popularity of index investing, smart beta and algorithmic strategies has taken off in recent years, and the uncertainty triggered by the Trump Trade Wars against a backdrop of increasing US interest rates, dramatically accelerated this move. JP Morgan now estimates 85% of trading volume to be derived from transactions not related to a fundamental company view (index investing / smart beta). We believe that such market distortions are unsustainable and that ultimately share prices will reflect long term company results. We hope to benefit from a substantial recovery of the Orbis performance however it does require patience. 2.Our overweight exposure to Emerging Markets, which underperformed in the wake of the China slowdown and the Trade Wars. We are strong believers that over time, relative valuations always align, causing cheaper markets to substantially outperform expensive markets over time. Emerging markets are currently trading on Cyclically Adjusted Price Earnings Ratios (CAPE) of 13 times, compared to 22 times for Developed markets. The last time this gap was as wide was in 2001, immediately preceding a massive outperformance run by Emerging Markets. Similarly, Emerging Markets trade at a 30% discount to the Price to Book values of Developed markets, despite EM companies delivering identical ROEs (Return on Equity) compared to Developed Markets. This again in our view is not sustainable and at some point investors will revert to fundamental valuations. When precisely that will happen is impossible to predict, but it may very well be triggered by a highly probable “official” pause in interest rate hikes by the US Federal Reserve early in 2019. In summary we acknowledge that 2018 was a disappointing year for the Fund. There is some consolation in that we have not experienced any permanent destruction of capital, such as a “Steinhoff” episode, nor any overvalued asset where the valuation has been permanently compressed. Our underperformance stems from cheap quality assets becoming cheaper. Although it is impossible to predict when normality will return, we do know that these trends cannot last forever. And typically when they revert, there are very good rewards for those investors who have remained patient.


46

ARX PANGAIA GLOBAL MANAGED FUND (CONTINUED)

Fund Outlook (continued)

The powerful start to 2019 was driven by the following notable market related developments:

• The US Federal Reserve (Fed), citing tepid inflation, rising risks to global growth and perhaps frightened by the large negative market reaction in December, executed a sharp U-turn in their policy outlook with a decidedly dovish Fed Chair Jay Powell putting further interest rate hikes on hold and further indicating that the Fed would adopt a "patient, wait and see" approach to future interest rate hikes

• The shift in stance from the Fed has led to many opinions that Powell had bowed to pressure from both Wall Street and President Trump, thus following in his predecessors (Bernanke and Yellen) footsteps by instituting a "Powell Put" for the market

• Major central banks around the world heeded the signal and followed suit with the European Central Bank, Bank of England and Bank of Japan all placing monetary policy decisions on hold pending further incoming economic data and market developments

The following also contributed to improved sentiment:

• Trade tensions between the US and China appear to thawed during the year

• US President Trump and US House democrats, led by Nancy Pelosi, agreed on an end to the US government shutdown which, at 35 days, was the longest on record

• China signalled more stimulus for their economy in the form of a wide range of tax cuts aimed at boosting consumer spending while also allowing further local government bond issuances to fund key infrastructure projects

In summary, there were a lot of positive developments but given the velocity of the rebound, market optimism has perhaps become too extreme given that some significant headwinds still exist on the horizon:

• Corporate earnings expectations, while declining, still appear too optimistic and are vulnerable to

further downside

• US equity valuations, which moderated somewhat during the December sell-off, remain extremely elevated (on a par with 1929 valuations prior to the Great Depression)

• Debt levels around the world continue to climb to unsustainably high levels with some growing concerns that bubbles in Chinese debt and indeed BBB rated corporate debt is inflating at a rapid rate

• No formal agreement on US and China trade wars yet

• No resolution on Brexit

It is not clear to us how markets will unfold from here; central banks appear intent on filling the proverbial punch bowl again and this is a significant positive for markets, at least in the short term. However, it is equally concerning that they have had to reverse course on tightening so quickly; cracks have begun to appear in the global economy at a level of US interest rates much lower than we expected and it is worrying for example, that despite record low levels of unemployment, inflation is still so subdued in the US and indeed, around the world. We remain cautiously positioned for now with an implied equity exposure of 48.2%; that being said, we are actively looking for sensible opportunities to add exposure to the portfolio and will be looking for further weakness/consolidation in the market to do so.

Investment Manager ARX Pangaia (Pty) Ltd


47

EXCALIBUR GLOBAL MANAGED FUND Investment Objective The Excalibur Global Managed Fund (“the Fund”) aims to provide capital growth. Fund Performance

Note: The Fund is bench marked against the Average of ASISA Global Asset Allocation Flexible Sector. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. The Fund returned -8.21% for the year ending 2018 in line with the benchmark. This is against a backdrop of global developed equity returns of -8.71%, emerging market equity returns of -14.58% and global bond returns of -1.20%, all expressed in US Dollar terms. Despite this, the Fund is still ahead of benchmark by 1.77% on an annualised basis since inception in January 2017. The Fund was ahead of the peer average benchmark up to the end of the third quarter, but performance lagged slightly in the 4th quarter during a period where global risk assets corrected sharply. The correction was largely driven by the following: Valuations had become stretched after several quarters of strong performance in global equities. The elevated valuation levels caused the market to become increasingly geared to the synchronised global growth story. However, global growth concerns started to emerge in the latter half of the year. This was primarily driven by the uncertainty on the outcome of the trade wars between the US and China; a seemingly slowing Chinese economy; and the potential for inflationary pressures in a strong US economy which would see rates normalise faster than expected. Considering the abovementioned valuation levels, the Fund was conservatively positioned in terms of its risk asset exposure by being underweight equities relative to the strategic benchmark throughout the period. Within the equity allocation however, the Fund’s exposure to emerging market equities was largely at benchmark or slightly over the benchmark weight, supported by relatively lower valuations compared to developed equities in general and US equities in particular. As discussed, emerging market equities had a difficult year in 2018, losing almost 6% more than developed market equities.


48

EXCALIBUR GLOBAL MANAGED FUND (CONTINUED) Fund Performance (continued) This contributed to the Fund underperforming the peer group benchmark during the 4th quarter and, as a result, over the year. In addition, the Fund was also strongly underweight global vanilla bonds which are still trading at extremely high valuations in most of the developed world. In terms of underlying fund exposure, the largest detractors from performance over the past year was the Fund’s exposure to the Lazard Emerging Markets Fund (which underperformed passive emerging equities by 3%) and the Dodge & Cox Global Stock Fund (value equities), which declined by 13%. The largest contributors to performance was the exposure to BNY Mellon Global Real Return (absolute), Baillie Gifford Global Discovery (global small cap growth equities) and the BNY Mellon Long Term Global Equity (global quality equities) funds. Fund Outlook The correction in global risk assets towards the end of the year has created opportunities for the underlying fund managers to capitalise on the lower valuations and to seek out attractively priced equities for investment. As a result, the Fund is well positioned to continue to deliver on its objective of providing capital growth over the long-term. The Fund continues to be moderately positioned to participate in market upside as well as providing investors with diversification across regions, asset classes and investment philosophies through the exposure to the underlying funds. Due to the nature of the Fund, in aiming to achieve capital growth, general risks would be tied to a broad drawdown in capital markets. This is mitigated to an extent by diversification in the portfolio.

Investment Manager

Excalibur Portfolio Managers (Pty) Ltd.


49

NORTHSTAR GLOBAL FLEXIBLE FUND Investment Objective The Northstar Global Flexible Fund (“the Fund”) aims to provide long-term capital growth. Fund Performance

Note: The Fund is bench marked against EAA USD Flexible Allocation Sector. Performance figures longer than 12 months are annualised. Figures are quoted gross of management fees. For the 12 months to end-December 2018 the Fund returned -3.12%, which compares favourably to the Fund’s benchmark return of -7.95%, a relative outperformance of +4.83%. While markets had absorbed the steady grind higher in US interest rates over the course of the first 8 months of the year, an acceleration of this trend, evidenced by a 30 basis points move in the 10 Year US Treasury Yield between early September and early October, induced by robust US economic data and accompanied by hawkish commentary from Federal Reserve Chair Jerome Powell, resulted in a 9% fall in the S&P 500 in October. Bonds rallied from early November, with the yield on the US 10 Year falling from 3.23% to 2.68% by year-end. Oil prices, meanwhile, reacted to concerns of a slowing economy, collapsing from a high of $86 per barrel of Brent Crude in early October to $50 per barrel by Christmas. Bonds outperformed Equities in 2018, the Bloomberg Barclays Global Aggregate Bond Index delivering a return of -1.2% versus the MSCI World Index return of -8.7%. Utilities (+3.4%), Health Care (+3.1%) and Information Technology (+0.4%) managed to deliver positive total returns for the year, whilst Financials (-16.5%), Materials (-16.1%) and Industrials (-13.6%) performed worst. Equity and bond selection was a key driver of returns over the past year, accounting for all the outperformance relative to benchmark. Equity selection in particular was quite pleasing, with 70% of the Fund’s holdings outperforming the MSCI World Index. Visa (+137bps), Medtronic (+97bps) and Thermo Fisher Scientific (88bps) made the largest contribution to relative returns, with Reckitt Benckiser (-70bps), WPP (-127bps) and British American Tobacco (-314bps) the largest detractors.

-10%

-5%

0%

5%

10%

15%

1st Qtr 20182nd Qtr2018

3rd Qtr2018

4th Qtr2018

YTD Inception

Fund USD-terms -0.56% 0.77% 5.44% -8.77% -3.12% 13.61%

Benchmark -1.46% -0.46% 1.13% -7.16% -7.95% 4.80%

Excess return 0.90% 1.23% 4.31% -1.61% 4.83% 8.81%


50

NORTHSTAR GLOBAL FLEXIBLE FUND (CONTINUED) Fund Outlook We added to the Fund’s equity exposure in late October, following the initial sell-off in global markets. Three new holdings were introduced into the Fund during this period, namely Tencent Holdings, S&P Global and Philip Morris. The latter purchase marking a partial switch out of British American Tobacco, which has been challenged by US regulatory and balance sheet risks to which Philip Morris is not exposed. Going forward, the Fund retains a meaningful underweight position in global bonds, with short duration US Treasuries and cash making up the bulk of the non-equity exposure, offering both diversification and a useful buffer against equity market volatility.

Investment Manager

Northstar Asset Management (Pty) Ltd


51

ABSA GLOBAL BEST BLEND FUND Investment Objective The ABSA Global Best Blend Fund (“the Fund”) aims to achieve long term capital growth over rolling three to five year period. There is no guarantee that the Fund will meet its objectives. Fund Performance

The Fund is bench marked against ASISA MA Global Flexible Category average as calculated by Morningstar. Note: Figures are quoted net of fees.

The Fund launched on 19 July 2018. During the period to 31 December, the Fund returned -11.44%, underperforming the benchmark by -0.92%.

Global equity markets closed 2018 significantly weaker after an exceptionally volatile December on the back of sharp equity declines in the US and an investor flight to safety. Not only was it the weakest December for US equities since the 1931 Great Depression, but the market also recorded its highest-ever one-day gain. Disappointing changes to the US Federal Reserve’s (Fed’s) interest rate outlook, policy instability in the White House and a potential slowdown in global economic growth were among the main factors weighing on investor sentiment.

Fund Outlook We have positioned the portfolios to take advantage of those relatively undervalued areas across markets (broadly speaking the ‘value’ style over ‘growth’) that could benefit from a change in investor sentiment after years of seemingly easy returns had lulled many into a false sense of security. We believe the more prudent, diversified approach is important as we move through this year. We are in the process to add some absolute return managers to protect us against the volatility in the market and protect against a market correction.

Investment Manager

ABSA Asset Management (Pty) Limited


52

ABSA GLOBAL ACCESS FUND Investment Objective The ABSA Global Access Fund (“the Fund”) aims to achieve long term capital growth over rolling three to five-year period. There is no guarantee that the Fund will meet its objectives.

Fund Performance

The Fund is bench marked against ASISA MA Global Flexible Category average as calculated by Morningstar. Note: Figures are quoted net of fees.

The Fund launched on 26 July 2018. During the period to 31 December, the Fund returned -10.24%, marginally outperforming the benchmark by 0.28%. Global equity markets closed 2018 significantly weaker after an exceptionally volatile December on the back of sharp equity declines in the US and an investor flight to safety. Not only was it the weakest December for US equities since the 1931 Great Depression, but the market also recorded its highest-ever one-day gain. Disappointing changes to the US Federal Reserve’s (Fed’s) interest rate outlook, policy instability in the White House and a potential slowdown in global economic growth were among the main factors weighing on investor sentiment.

Fund Outlook We have positioned the portfolios to take advantage of those relatively undervalued areas across markets (broadly speaking the ‘value’ style over ‘growth’) that could benefit from a change in investor sentiment after years of seemingly easy returns had lulled many into a false sense of security. We believe the more prudent, diversified approach is important as we move through this year. We are in the process to add some absolute return managers to protect us against the volatility in the market and protect against a market correction. Investment Manager

Absa Asset Management (Pty) Limited


54

STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS for the year ended 31 December 2018

Note

Sanlam Global Balanced Fund

Sanlam Global Equity Fund

Sanlam Global Liquidity Fund

Sanlam BIFM World Equity Fund

USD USD USD USD

Investment income

Net gains/(losses) on financial assets and liabilities

measured at fair value through profit or loss 6 (11,095,005) (104,193,538) (523,257) (33,710,550)

Income from financial assets at fair value

through profit or loss - 4,654,624 - 2,838,944

Rebates received 12 75,617 843,499 1,271 253,318

Bank interest 7,436 71,412 1,121 44,018

Other income - - 1,887 155,379

Income from securities lending 17 - 49,298 - -

Net investment income/(deficit) (11,011,952) (98,574,705) (518,978) (30,418,891)

Operating expenses

AIFM and investment management fees 12 (1,175,917) (8,227,936) (59,459) (2,829,477)

Other operating expenses (51,457) (245,689) (20,712) (82,500)

Administration fees 12 (61,300) (360,416) (16,695) (112,678)

Custody fees (8,919) (96,751) (4,874) (50,154)

Directors’ fees (3,894) (28,368) (674) (10,761)

Total operating expenses (1,301,487) (8,959,160) (102,414) (3,085,570)

Operating profit/(loss) (12,313,439) (107,533,865) (621,392) (33,504,461)

Finance costs

Interest expense - - - -

Profit/(loss) before tax (12,313,439) (107,533,865) (621,392) (33,504,461)

Withholding tax - (816,964) - (216,904)

Change in net assets attributable to

holders of redeemable participating shares (12,313,439) (108,350,829) (621,392) (33,721,365)


55

STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2018

Note

Sanlam BIFM Global Fixed Income Fund

Mpile Global Equity Fund

Sanlam Private Wealth Global Balanced Fund1

Counterpoint Global Equity Fund

USD USD USD USD

Investment income


measured at fair value through profit or loss 6 (701,232) (962,507) (7,326,659) (2,966,788)


through profit or loss - - 1,088,937 788,742

Rebates received 12 64,739 1,057 14,898 -

Bank interest 526 9,507 242,106 54,308

Other income 2,814 1,057 1,848 3,629

Income from securities lending 17 - - - - Net investment income/(deficit) (633,153) (950,886) (5,978,870) (2,120,109)

Operating expenses

AIFM and investment management fees 12 (617,850) (20,733) (1,347,686) (388,494)

Other operating expenses (30,469) (310) (61,575) (33,290)


Custody fees (7,342) (6,542) (5,801) (8,147)

Directors’ fees (1,721) (692) (2,022) (701)

Total operating expenses (693,357) (39,552) (1,486,731) (452,621)

Operating profit/(loss) (1,326,510) (990,438) (7,465,601) (2,572,730)

Finance costs


Profit/(loss) before tax (1,326,510) (990,438) (7,465,601) (2,572,730)

Withholding tax - - (164,567) (164,338)

Change in net assets attributable to holders of redeemable participating shares (1,326,510) (990,438) (7,630,168) (2,737,068)


56


1Effective from 13 February 2019, the name of this Fund was changed. The previous name of this Fund was Counterpoint Global Balanced Fund.

Note

Independent Global Flexible Fund

Counterpoint Global Owner Managed Flexible Fund1

ARX Pangaia Global Managed Fund

Excalibur Global Managed Fund

USD USD USD USD

Investment income


measured at fair value through profit or loss 6 (5,217,660) (858,312) (3,231,290) (3,498,866)


through profit or loss 575,916 138,352 180,561 -

Rebates received 12 - 294 - 5,812

Bank interest 1,861 45,120 13,266 9,764

Other income - 1,045 30 1,876

Income from securities lending 17 - - - -

Net investment income/(deficit) (4,639,883) (673,501) (3,037,433) (3,481,414)

Operating expenses

AIFM and investment management fees 12 (227,953) (112,039) (133,857) (214,254)



Custody fees (7,521) (3,685) (14,742) (35,499)

Directors’ fees (1,195) (242) (621) (839)

Total operating expenses (314,331) (147,793) (206,073) (310,730)

Operating profit/(loss) (4,954,214) (821,294) (3,243,506) (3,792,144)

Finance costs


Profit/(loss) before tax (4,954,214) (821,294) (3,243,506) (3,792,144) Withholding tax (85,379) (31,045) (25,284) -


holders of redeemable participating shares (5,039,593) (852,339) (3,268,790) (3,792,144)


57


Note

Northstar Global Flexible Fund

Absa Global Best Blend Fund


USD USD USD

Investment income


measured at fair value through profit or loss 6 (1,322,623) (20,049,721) (6,303,416)


through profit or loss 569,563 - -

Rebates received 12 1,939 - -

Bank interest 2,549 128,305 31,276

Other income 208 - -

Income from securities lending 17 - - -

Net investment income/(deficit) (748,364) (19,921,416) (6,272,140)

Operating expenses

AIFM and investment management fees 12 (261,894) (730,468) (355,961)

Other operating expenses (26,764) (25,251) (24,193)

Administration fees 12 (21,048) (4,970) (4,969)

Custody fees (7,043) (9,974) (9,973)

Directors’ fees (554) (1,174) (479)

Total operating expenses (317,303) (771,837) (395,575)

Operating profit/(loss) (1,065,667) (20,693,253) (6,667,715)

Finance costs

Interest expense - - -

Profit/(loss) before tax (1,065,667) (20,693,253) (6,667,715) Withholding tax (67,449) - -


holders of redeemable participating shares (1,133,116) (20,693,253) (6,667,715)


58


Note

Analytics International Flexible Fund1




USD USD USD USD

Investment income


measured at fair value through profit or loss 6 5,151,495 25,277,676 226,430,360 872,568


through profit or loss 756,236 - 2,934,828 -

Rebates received 12 - - 91,738 -

Bank interest 12,680 4,254 43,582 2,032

Other income 215 488 3,986 34

Income from securities lending 17 4,162 - - -

Net investment income/(deficit) 5,924,788 25,282,418 229,504,494 874,634

Operating expenses

AIFM and investment management fees 12 (377,068) (1,265,417) (8,859,240) (37,358)



Custody fees (8,092) (18,700) (81,522) (2,634)

Directors’ fees (1,399) (2,051) (22,996) (186)

Total operating expenses (415,744) (1,362,230) (9,404,560) (62,898)

Operating profit/(loss) 5,509,044 23,920,188 220,099,934 811,736

Finance costs

Interest expense - - - - Profit/(loss) before tax 5,509,044 23,920,188 220,099,934 811,736 Withholding tax (114,256) - (571,924) - Change in net assets attributable to

holders of redeemable participating shares 5,394,788 23,920,188 219,528,010 811,736

1 Following a Scheme of Amalgamation on 29 August 2017 with Ci Global Investments RIAIF ICAV, Analytics International Flexible Fund, APS Global Flexible Fund of Funds and NFB Global Balanced Fund of Funds have terminated during the year ended 31 December 2017.


59


Note

NFB Global Balanced Fund of Funds1




USD USD USD USD

Investment income


measured at fair value through profit or loss 6 983,805 53,698,221 2,607,195 6,536,419


through profit or loss 216,096 2,841,971 - -

Rebates received 12 5,112 208,702 64,640 -

Bank interest 3,178 23,165 88 -

Other income 58 54,707 117 119

Income from securities lending 17 - - - - Net investment income/(deficit) 1,208,249 56,826,766 2,672,040 6,536,538

Operating expenses

AIFM and investment management fees 12 (64,406) (2,887,740) (584,746) (42,700)



Custody fees (5,770) (62,920) (4,965) (6,032)

Directors’ fees (1,093) (4,698) (688) (691)

Total operating expenses (119,695) (3,096,834) (632,958) (83,735)

Operating profit/(loss) 1,088,554 53,729,932 2,039,082 6,452,803

Finance costs

Interest expense - - - (1,184) Profit/(loss) before tax 1,088,554 53,729,932 2,039,082 6,451,619

Withholding tax (648) (380,709) - - Change in net assets attributable to holders of redeemable participating shares 1,087,906 53,349,223 2,039,082 6,451,619



60



Note

Sanlam Private Wealth Global Balanced Fund

APS Global Flexible Fund of Funds1



USD USD USD USD

Investment income


measured at fair value through profit or loss 6 8,165,303 4,140,465 4,423,449 1,696,368


through profit or loss 546,022 9,487 474,841 352,460

Rebates received 12 4,109 - - -

Bank interest 57,684 - 13,079 11,669

Other income 3,613 149 70 39


Net investment income/(deficit) 8,776,731 4,150,101 4,911,439 2,060,536

Operating expenses




Custody fees (11,405) (2,402) (9,984) (10,842)

Directors’ fees (589) (1,306) (413) (305)


Operating profit/(loss) 8,041,047 4,028,281 4,560,115 1,837,430

Finance costs


Profit/(loss) before tax 8,041,047 4,028,281 4,560,115 1,837,430 Withholding tax (87,650) - (105,142) (61,526) Change in net assets attributable to

holders of redeemable participating shares 7,953,397 4,028,281 4,454,973 1,775,904


61



Note





USD USD USD USD

Investment income


measured at fair value through profit or loss 6 750,738 3,083,856 2,871,301 1,119,674


through profit or loss 106,029 137,489 4,644 126,197

Rebates received 12 - - - -

Bank interest 5,373 - - -

Other income 9 21,685 2,831 -


Net investment income/(deficit) 862,149 3,243,030 2,878,776 1,245,871

Operating expenses




Custody fees (3,484) (12,698) (33,134) (6,465)

Directors’ fees (71) (354) (395) (471)


Operating profit/(loss) 752,871 3,099,290 2,702,410 1,156,229

Finance costs

Interest expense - (1,538) - (4,978)

Profit/(loss) before tax 752,871 3,097,752 2,702,410 1,151,251 Withholding tax (24,150) (28,320) - (15,620) Change in net assets attributable to

holders of redeemable participating shares 728,721 3,069,432 2,702,410 1,135,631


63

STATEMENTS OF FINANCIAL POSITION OF THE FUNDS as at 31 December 2018

Note





USD USD USD USD

Assets

Cash and cash equivalents 762,301 4,681,512 245,115 1,469,697

Accrued income - 112,312 - 98,112

Amounts receivable on sale of securities - - - -

Amounts receivable on sale of shares - - - -

Financial assets measured at fair value through profit or loss 7,8,18 133,412,078 851,344,001 14,789,010 197,186,068

Other debtors 61,330 254,792 308 119,648

Total assets 134,235,709 856,392,617 15,034,433 198,873,525

Liabilities

Bank overdraft - - - -

Accrued expenses (266,798) (1,232,733) (41,700) (608,415)

Administration fees accrued 12 (11,095) (189,527) (2,786) (54,968)

Amounts payable on repurchase of shares (417,132) - (262) -

Amounts payable on purchase of securities - (26,350) - -

Liabilities (excluding net assets attributable to

holders of redeemable participating shares) (695,025) (1,448,610) (44,748) (663,383)

Net assets attributable to holders of redeemable

participating shares 19 133,540,684 854,944,007 14,989,685 198,210,142


64

STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2018

Note



Sanlam Private Wealth Global Balanced

Fund1


USD USD USD USD

Assets

Cash and cash equivalents - 23,088 22,781,608 4,903,484

Accrued income - - 86,673 65,772



Financial assets measured at fair value through profit or loss 7,8,18 37,778,786 - 64,527,111 24,847,085

Other debtors 34,848 1,077 72,190 2,367

Total assets 37,813,634 24,165 87,467,582 29,818,708

Liabilities

Bank overdraft (50,654) - - -

Accrued expenses (200,683) (22,721) (307,809) (94,101)

Administration fees accrued 12 (9,175) (995) (15,233) (4,274)

Amounts payable on repurchase of shares - (449) - -

Amounts payable on purchase of securities - - - -


holders of redeemable participating shares) (260,512) (24,165) (323,042) (98,375)


participating shares 19 37,553,122 - 87,144,540 29,720,333


65


Note





USD USD USD USD

Assets

Cash and cash equivalents 20,074 3,997,997 4,108,543 524,864

Accrued income 47,364 12,537 13,068 -

Amounts receivable on sale of securities 24,873 - 2,246,994 -

Amounts receivable on sale of shares - - 13,535 -


Other debtors 14,418 9,478 11,455 19,545

Total assets 21,005,059 10,391,090 26,439,895 42,216,837

Liabilities

Bank overdraft - -- - -


Administration fees accrued 12 (9,910) (3,653) (8,067) (6,650)

Amounts payable on repurchase of shares - - (869) -

Amounts payable on purchase of securities (52,514) - - -







66


Note




USD USD USD

Assets

Cash and cash equivalents 218,364 6,665,927 1,311,486

Accrued income 39,045 - -

Amounts receivable on sale of securities - - -

Amounts receivable on sale of shares - - -

Financial assets measured at fair value through profit or loss 7,8,18 30,825,358 177,920,281 63,043,316

Other debtors 20,581 82,193 26,005

Total assets 31,103,348 184,668,401 64,380,807

Liabilities

Bank overdraft - - -

Accrued expenses (80,813) (446,476) (204,609)

Administration fees accrued 12 (4,885) (4,452) (4,523)

Amounts payable on repurchase of shares (52,500) - -

Amounts payable on purchase of securities (9,554) - -


holders of redeemable participating shares) (147,752) (450,928) (209,132)


participating shares 19 30,955,596 184,217,473 64,171,675


67


Note

Analytics International Flexible Fund1




USD USD USD USD

Assets

Cash and cash equivalents 22,922 359,440 4,500,747 408,054

Accrued income - - 79,536 -


Amounts receivable on sale of shares - - - 13,227

Financial assets measured at fair value through profit or loss 7,8,18 - 165,900,139 1,203,646,467 15,159,137

Other debtors 7,569 7,751 7,709 3,665

Total assets 30,491 166,267,330 1,208,234,459 15,584,083

Liabilities


Administration fees accrued 12 (1,237) (13,353) (116,172) -

Amounts payable on repurchase of shares - (39,256) - -





participating shares 19 - 166,081,149 1,207,299,630 15,555,565



68


Note

NFB Global Balanced Fund of Funds Fund1




USD USD USD USD

Assets

Cash and cash equivalents 28,248 1,890,796 176,278 1,385

Accrued income - 87,630 - -


Amounts receivable on sale of shares - 491,261 - -

Financial assets measured at fair value through profit or loss 7,8,18 - 307,615,119 44,493,269 37,086,754

Other debtors 1,761 2,790 3,139 2,549

Total assets 30,009 310,087,596 44,672,686 37,090,688

Liabilities


Administration fees accrued 12 (856) (26,915) (701) (837)

Amounts payable on repurchase of shares - - - -

Amounts payable on purchase of securities - (20,833) - -




participating shares 19 - 309,700,813 44,562,160 37,052,471



69


Note


APS Global Flexible Fund of Funds1



USD USD USD USD

Assets

Cash and cash equivalents 27,907,850 28,628 2,724,971 1,916,998

Accrued income 61,732 - 44,310 38,780

Amounts receivable on sale of securities - - 561,241 -

Amounts receivable on sale of shares 126,897 - - -

Financial assets measured at fair value through profit or loss 7,8,18 58,491,998 - 27,617,999 26,559,229

Other debtors 21,815 1,237 9,219 28,842

Total assets 86,610,292 29,865 30,957,740 28,543,849

Liabilities


Administration fees accrued 12 - - - -

Amounts payable on repurchase of shares - - (330) -

Amounts payable on purchase of securities - - (873,877) (455,643)




participating shares 19 86,479,215 - 30,022,059 28,047,691



70


Note





USD USD USD USD

Assets

Cash and cash equivalents 2,091,068 3,843,251 399,373 2,920,481

Accrued income 2,285 8,489 - 13,930




Other debtors 9,078 18,191 19,346 14,303

Total assets 7,384,064 26,551,418 35,855,070 23,603,314

Liabilities


Administration fees accrued 12 (2,311) - (787) (1,035)

Amounts payable on repurchase of shares - - - -








71

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE COMPANY for the year ended 31 December 2018

Year ended

31 December 2018 Year ended

31 December 2017

USD USD

Operating activities


participating shareholders from operations (209,138,159) 338,431,301

Capital transactions

Issue of shares during the year 531,765,362 270,017,740

Redemption of shares during the year (605,547,155) (401,965,335)

Net decrease in net assets attributable to holders of redeemable participating shares from capital transactions

(73,781,793) (131,947,595)

Net (decrease)/increase in net assets attributable to holders of redeemable participating shares during the year

(282,919,952) 206,483,706

Net assets attributable to holders of redeemable participating

shares at the beginning of the year 2,018,064,341 1,811,580,635


participating shares at the end of the year 1,735,144,389 2,018,064,341

The attached notes form an integral part of these annual audited financial statements.


72

STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS for the year ended 31 December 2018





USD USD USD USD



participating shareholders from operations (12,313,439) (108,350,829) (621,392) (33,721,365)


Issue of shares during the year 1,062,619 185,064,094 8,044,686 3,784,982

Redemption of shares during the year (21,289,645) (429,068,888) (7,989,174) (81,554,288)

Net increase/(decrease) in net assets attributable to holders of

redeemable participating shares from capital transactions (20,227,026) (244,004,794) 55,512 (77,769,306)

Net increase/(decrease) in net assets attributable to holders

of redeemable participating shares during the year (32,540,465) (352,355,623) (565,880) (111,490,671)


shares at the beginning of the year 166,081,149 1,207,299,630 15,555,565 309,700,813


participating shares at the end of the year 133,540,684 854,944,007 14,989,685 198,210,142


73

STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2018



Sanlam Private Wealth Global

Balanced Fund


USD USD USD USD



participating shareholders from operations (1,326,510) (990,438) (7,630,168) (2,737,068)


Issue of shares during the year 1,390,472 - 14,493,312 5,479,869

Redemption of shares during the year (7,073,000) (36,062,033) (6,197,819) (3,044,527)


redeemable participating shares from capital transactions (5,682,528) (36,062,033) 8,295,493 2,435,342


of redeemable participating shares during the year (7,009,038) (37,052,471) 665,325 (301,726)


shares at the beginning of the year 44,562,160 37,052,471 86,479,215 30,022,059


participating shares at the end of the year 37,553,122 - 87,144,540 29,720,333


74






USD USD USD USD



participating shareholders from operations (5,039,593) (852,339) (3,268,790) (3,792,144)



Redemption of shares during the year (4,098,170) (957,868) (4,232,021) (3,218,266)


redeemable participating shares from capital transactions (2,136,103) 3,831,673 3,122,469 10,097,217


of redeemable participating shares during the year (7,175,696) 2,979,334 (146,321) 6,305,073




participating shares at the end of the year 20,871,995 10,338,605 26,370,735 42,115,797



75





USD USD USD



participating shareholders from operations (1,133,116) (20,693,253) (6,667,715)


Issue of shares during the year/period 9,273,631 204,910,7261 70,839,390

Redemption of shares during the year/period (761,456) - -


redeemable participating shares from capital transactions 8,512,175 204,910,726 70,839,390


of redeemable participating shares during the year/period 7,379,059 184,217,473 64,171,675


shares at the beginning of the year/period 23,576,537 - -


participating shares at the end of the year/period 30,955,596 184,217,473 64,171,675

1Subscriptions include in specie transfers from shareholders during the period in exchange for assets with a fair value at date of transfer of USD 27,448,992.


76


Analytics International Flexible Fund




USD USD USD USD



participating shareholders from operations 5,394,788 23,920,188 219,528,010 811,736


Issue of shares during the year 17,836 2,896,792 40,133,826 8,593,195

Redemption of shares during the year (53,288,906)1 (14,977,246) (219,542,158) (2,890,181)


redeemable participating shares from capital transactions (53,271,070) (12,080,454) (179,408,332) 5,703,014


of redeemable participating shares during the year (47,876,282) 11,839,734 40,119,678 6,514,750


shares at the beginning of the year 47,876,282 154,241,415 1,167,179,952 9,040,815


participating shares at the end of the year - 166,081,149 1,207,299,630 15,555,565

1Redemptions include in specie transfers to Ci Global Investments RIAIF ICAV during the year of assets with a fair value at date of transfer of USD 46,389,882.


77


NFB Global Balanced Fund of Funds




USD USD USD USD



participating shareholders from operations 1,087,906 53,349,223 2,039,082 6,451,619


Issue of shares during the year 1,095,747 41,485,838 14,964,828 -

Redemption of shares during the year (17,272,731)1 (21,299,962) (6,730,979) (4,545,082)


redeemable participating shares from capital transactions (16,176,984) 20,185,876 8,233,849 (4,545,082)


of redeemable participating shares during the year (15,089,078) 73,535,099 10,272,931 1,906,537




participating shares at the end of the year - 309,700,813 44,562,160 37,052,471

1Redemptions include in specie transfers to Ci Global Investments RIAIF ICAV during the year of assets with a fair value at date of transfer of USD 14,601,464.


78



APS Global Flexible Fund of Funds



USD USD USD USD



participating shareholders from operations 7,953,397 4,028,281 4,454,973 1,775,904



Redemption of shares during the year (6,877,333) (48,530,723)2 (1,825,362) (1,547,132)


redeemable participating shares from capital transactions 47,787,541 (45,619,925) 4,685,666 10,453,528


of redeemable participating shares during the year 55,740,938 (41,591,644) 9,140,639 12,229,432




participating shares at the end of the year 86,479,215 - 30,022,059 28,047,691

1During the year ended 31 December 2017, effective from 13 March 2017, the Fund was renamed. The previous name of this Fund was Brackenham Global Balanced Fund. 2Redemptions include in specie transfers to Ci Global Investments RIAIF ICAV during the year of assets with a fair value at date of transfer of USD 48,526,115.


79






USD USD USD USD



participating shareholders from operations 728,721 3,069,432 2,702,410 1,135,631


Issue of shares during the year/period 4,743,293 23,827,178 33,304,009 22,867,8382

Redemption of shares during the year/period (1,635,359) (379,554) (195,695) (426,932)


redeemable participating shares from capital transactions 3,107,934 23,447,624 33,108,314 22,440,906


of redeemable participating shares during the year/period 3,836,655 26,517,056 35,810,724 23,576,537


shares at the beginning of the year/period 3,522,616 - - -


participating shares at the end of the year/period 7,359,271 26,517,056 35,810,724 23,576,537

1Effective from 13 February 2019, the name of this Fund was changed. The previous name of this Fund was Counterpoint Global Balanced Fund. 2Subscriptions include in specie transfers from Northstar Met Managed Fund during the period in exchange for assets with a fair value at date of transfer of USD 7,172,796.


80

STATEMENT OF CASH FLOWS OF THE COMPANY for the year ended 31 December 2018

Year ended 31 December

2018

Year ended 31 December

2017

USD USD

Cash flows from operating activities

Purchases of financial assets and settlement of financial liabilities (955,400,923) (1,258,658,570)

Proceeds from sale of investments (including realized gains) 1,037,290,766 1,389,898,719

Dividends received 9,111,419 6,832,030

Bond interest received 14,099 161,024

Rebates received 1,261,387 377,132

Bank interest received 662,575 183,215

Other income 169,773 85,289

Income from securities lending received 50,355 4,162

Operating expenses paid (17,042,675) (16,909,780)

Net cash inflow from operating activities 76,116,776 121,973,221

Cash flows from financing activities

Proceeds from redeemable participating shares issued 532,383,211 269,760,154

Redemption of redeemable participating shares (605,196,196) (405,709,309)

Net cash used in financing activities (72,812,985) (135,949,155)

Net increase/(decrease) in cash and cash equivalents 3,303,791 (13,975,934)

Cash and cash equivalents at the beginning of the year 49,220,490 62,755,855

Exchange (losses)/gains on cash and cash equivalents (860,875) 440,569

Cash and cash equivalents at the end of the year 51,663,406 49,220,490

The attached notes form an integral part of these annual audited financial statements.


81

STATEMENTS OF CASH FLOWS OF THE FUNDS for the year ended 31 December 2018





USD USD USD USD


Purchases of financial assets and settlement of financial liabilities (13,581,633) (480,092,062) (8,491,478) (40,393,953)

Proceeds from sale of investments (including realized gains) 34,969,504 728,256,580 8,381,548 117,435,681

Dividends received - 3,804,884 - 2,611,558

Bond interest received - - - -

Rebates received 75,617 843,499 1,271 253,318

Bank interest received 7,436 71,412 1,121 44,018

Other income - - 1,887 155,379

Income from securities lending received - 49,298 - -

Operating expenses paid (1,224,098) (8,718,812) (83,089) (2,904,995)

Net cash inflow/(outflow) from operating activities 20,246,826 244,214,799 (188,740) 77,201,006


Proceeds from redeemable participating shares issued 1,062,619 185,064,094 8,057,911 4,276,243

Redemption of redeemable participating shares (20,911,769) (429,068,888) (7,988,912) (81,554,288)

Net cash provided by/(used in) financing activities (19,849,150) (244,004,794) 68,999 (77,278,045)

Net increase/(decrease) in cash and cash equivalents 397,676 210,005 (119,741) (77,039)

Cash and cash equivalents at the beginning of the year 359,440 4,500,747 408,054 1,890,796

Exchange gains/(losses) on cash and cash equivalents 5,185 (29,240) (43,198) (344,060)

Cash and cash equivalents at the end of the year 762,301 4,681,512 245,115 1,469,697


82

STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2018





USD USD USD USD


Purchases of financial assets and settlement of financial liabilities (63,011) - (27,358,612) (26,406,839)


Dividends received - - 899,429 602,942


Rebates received 64,739 - 14,898 -

Bank interest received 526 9,507 242,106 54,308

Other income 2,814 1,057 1,848 3,629

Income from securities lending received - 1,057 - -

Operating expenses paid (625,734) (52,581) (1,345,141) (408,868)

Net cash inflow/(outflow) from operating activities 5,451,252 36,086,318 (13,346,107) (226,887)


Proceeds from redeemable participating shares issued 1,390,472 14,620,209 5,479,869


Net cash provided by/(used in) financing activities (5,682,528) (36,061,584) 8,422,390 2,435,012

Net increase/(decrease) in cash and cash equivalents (231,276) 24,734 (4,923,717) 2,208,125

Cash and cash equivalents at the beginning of the year 176,278 1,385 27,907,850 2,724,971

Exchange gains/(losses) on cash and cash equivalents 4,344 (3,031) (202,525) (29,612)

Cash and cash equivalents at the end of the year (50,654) 23,088 22,781,608 4,903,484


83


Independent Global

Flexible Fund Counterpoint Global Owner

Managed Flexible Fund1 ARX Pangaia Global

Managed Fund Excalibur Global

Managed Fund

USD USD USD USD




Dividends received 481,953 97,055 136,599 -

Bond interest received - - 14,099 -

Rebates received - 294 - 5,812


Other income - 1,045 30 1,876

Income from securities lending received - - - -

Operating expenses paid (259,872) (120,501) (164,539) (254,235)

Net cash inflow/(outflow) from operating activities 264,938 (1,944,328) (2,707,194) (9,970,370)



Redemption of redeemable participating shares (4,098,170) (957,868) (4,232,021) (3,218,266)

Net cash provided by/(used in) financing activities (2,136,102) 3,831,673 3,108,934 10,097,217

Net increase/(decrease) in cash and cash equivalents (1,871,164) 1,887,345 401,740 126,847

Cash and cash equivalents at the beginning of the year 1,916,998 2,091,068 3,843,251 399,373

Exchange gains/(losses) on cash and cash equivalents (25,760) 19,584 (136,448) (1,356)

Cash and cash equivalents at the end of the year 20,074 3,997,997 4,108,543 524,864

1Effective from 13 February 2019, the name of this Fund was changed. The previous name of this Fund was Counterpoint Global Balance Fund.


84


Northstar Global

Flexible Fund Absa Global Best

Blend Fund Absa Global Access

Fund

USD USD USD


Purchases of financial assets and settlement of financial liabilities (26,875,194) (197,970,002) (85,242,001)

Proceeds from sale of investments (including realized gains) 15,466,125 - 15,895,269

Dividends received 476,999 - -

Bond interest received - - -

Rebates received 1,939 - -

Bank interest received 2,549 128,305 31,276

Other income 208 - -

Income from securities lending received - - -

Operating expenses paid (264,660) (403,102) (212,448)

Net cash inflow/(outflow) from operating activities (11,192,034) (198,244,799) (69,527,904)


Proceeds from redeemable participating shares issued 9,273,631 204,910,726 70,839,390

Redemption of redeemable participating shares (708,956) - -

Net cash provided by/(used in) financing activities 8,564,675 204,910,726 70,839,390

Net increase/(decrease) in cash and cash equivalents (2,627,359) 6,665,927 1,311,486

Cash and cash equivalents at the beginning of the year/period 2,920,481 - -

Exchange gains/(losses) on cash and cash equivalents (74,758) - -

Cash and cash equivalents at the end of the year/period 218,364 6,665,927 1,311,486


85






USD USD USD USD



Proceeds from sale of investments (including realized gains) 50,761,828 94,095,039 1,064,739,410 1,682,524

Dividends received 595,167 - 2,283,368 -

Bond interest received 153,473 - - -

Rebates received - - 91,738 -


Other income 215 488 3,986 34

Income from securities lending received 4,162 - - -

Operating expenses paid (488,422) (1,321,961) (9,425,560) (56,974)

Net cash inflow/(outflow) from operating activities 46,261,176 (5,474,897) 180,451,502 (5,402,523)


Proceeds from redeemable participating shares issued 17,836 2,896,792 40,133,826 8,579,968


Net cash provided by/(used in) financing activities (53,271,070) (12,041,727) (179,408,331) 5,689,787

Net increase/(decrease) in cash and cash equivalents (7,009,894) (17,516,624) 1,043,171 287,264

Cash and cash equivalents at the beginning of the year 7,015,711 17,876,061 3,536,759 102,511

Exchange gains/(losses) on cash and cash equivalents 17,105 3 (79,183) 18,279

Cash and cash equivalents at the end of the year 22,922 359,440 4,500,747 408,054


86






USD USD USD USD


Purchases of financial assets and settlement of financial liabilities (2,229,689) (60,299,512) (10,744,641) -


Dividends received 215,448 2,441,811 - -


Rebates received 5,112 208,702 64,640 -

Bank interest received 3,178 23,165 88 (1,184)

Other income 58 54,707 117 119


Operating expenses paid (96,925) (3,043,724) (613,989) (76,675)

Net cash inflow/(outflow) from operating activities 13,092,321 (26,301,127) (8,471,785) 4,535,392


Proceeds from redeemable participating shares issued 1,095,747 40,994,577 14,964,828 -


Net cash provided by/(used in) financing activities (17,135,438) 16,947,914 8,233,849 (4,548,082)

Net increase/(decrease) in cash and cash equivalents (4,043,117) (9,353,213) (237,936) (12,690)

Cash and cash equivalents at the beginning of the year 4,080,211 11,406,290 414,212 13,984

Exchange gains/(losses) on cash and cash equivalents (8,846) (162,281) 2 91

Cash and cash equivalents at the end of the year 28,248 1,890,796 176,278 1,385


87






USD USD USD USD




Dividends received 412,053 - 343,970 269,885


Rebates received 4,109 - - -


Other income 3,613 149 70 39



Net cash inflow/(outflow) from operating activities (29,091,268) 42,026,171 (4,408,382) (11,172,998)




Net cash provided by/(used in) financing activities 47,660,644 (45,246,126) 4,685,996 10,453,528

Net increase/(decrease) in cash and cash equivalents 18,569,376 (3,219,955) 277,614 (719,470)

Cash and cash equivalents at the beginning of the year 8,983,165 3,248,583 2,438,847 2,664,249

Exchange gains/(losses) on cash and cash equivalents 355,309 - 8,510 (27,781)

Cash and cash equivalents at the end of the year 27,907,850 28,628 2,724,971 1,916,998

1During the year ended 31 December 2017, effective from 13 March 2017, the Fund was renamed. The previous name of this Fund was Brackenham Global Balanced Fund.


88


Counterpoint Global Owner

Managed Flexible Fund1 ARX Pangaia Global


Managed Fund Northstar Global

Flexible Fund

USD USD USD USD



Proceeds from sale of investments (including realized gains) 2,975,095 10,353,197 369 16,452,569

Dividends received 79,053 94,628 - 96,647

Bond interest received 1,499 6,052 - -

Rebates received - - 2,831 -

Bank interest received 5,373 (1,538) 4,644 (4,978)

Other income 9 21,685 - -



Net cash inflow/(outflow) from operating activities (1,947,211) (19,796,195) (32,719,039) (19,607,917)



Redemption of redeemable participating shares (1,635,360) (379,554) (195,694) (426,932)

Net cash provided by/(used in) financing activities 3,107,934 23,447,624 33,108,314 22,440,906

Net increase/(decrease) in cash and cash equivalents 1,160,723 3,651,429 389,275 2,832,989

Cash and cash equivalents at the beginning of the year/period 900,394 - - -

Exchange gains/(losses) on cash and cash equivalents 29,951 191,822 10,098 87,492

Cash and cash equivalents at the end of the year/period 2,091,068 3,843,251 399,373 2,920,481

1Effective from 13 February 2019, the name of this Fund was changed. The previous name of this Fund was Counterpoint Global Balance Fund.


89

PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL BALANCED FUND as at 31 December 2018

Nominal Security Fair Value

USD

% of

Net Assets Financial assets at fair value through profit or loss

Collective Investment Schemes – 99.90% (2017: 99.89%)

165,627 BlackRock Global Funds - Asian Growth Leaders Fund X2 3,118,756 2.34%

338,317 Sanlam Multi Strategy Fund 4,012,815 3.01%

10,834,358 Sanlam Centre American Select Equity Fund 13,008,814 9.74%

66,606 Sanlam Active UK Fund 749,848 0.56%

669,834 Sanlam Global Value Fund

10,590,741 7.93%

826,076 Sanlam US Dividend Fund 11,192,346 8.38%

26,087,232 Sanlam Global Bond Fund 38,676,930 28.96%

1,737,806 Sanlam Global Property Fund 2,765,023 2.07%

5,804,052 Sanlam Japan Equity Fund 6,307,263 4.72%

7,144,970 Satrix Europe (Ex-UK) Equity Tracker Fund 8,262,444 6.18%

1,379,807 Satrix UK Equity Tracker Fund 1,367,664 1.03%

10,140,483 Satrix World Equity Tracker Fund 22,404,384 16.78%

7,011,232 Satrix North America Equity Tracker Fund 10,955,050 8.20%

Total Collective Investment Schemes (2017: USD 165,900,139) 133,412,078 99.90%

Total financial assets at fair value through profit or loss 133,412,078 99.90%

Cash and cash equivalents 762,301 0.57%

Other net assets and liabilities (633,695) (0.47)%

Net assets attributable to holders of redeemable participating shares 133,540,684 100.00%


90

PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL EQUITY FUND as at 31 December 2018


USD

% of


Equities – 13.93% (2017: 16.35%)

Australia – 0.32% (2017: 0.84%)

56,378 Bluescope Steel Ltd 435,004 0.05%

127,831 Coca-Cola Amatil Ltd 737,043 0.09%

126,437 Genworth Mortgage Insura 194,935 0.02%

130,120 Santos Ltd 501,992 0.06%

92,828 Suncorp Group Ltd 825,382 0.10%

Total Australia (2017: USD 10,099,604) 2,694,356 0.32%

Austria – 0.00% (2017: 0.12%)

Total Austria USD Nil (2017: USD 1,446,714)

Belgium – 0.06% (2017: 0.11%)

6,101 Ucb Sa 497,272 0.06%

Total Belgium (2017: USD 1,371,441) 497,272 0.06%

Bermuda – 0.03% (2017: 0.11%)

9,552 Gaslog Ltd 157,226 0.02%

384,000 Newocean Energy Hldgs Lt 124,577 0.01%

Total Bermuda (2017: USD 1,324,964) 281,803 0.03%

Canada – 0.65% (2017: 0.97%)

4,488 Can Imperial Bk Of Comme 334,119 0.04%

15,519 Cgi Group Inc - Class A 948,775 0.11%

638 Constellation Software I 408,202 0.05%

62,403 Husky Energy Inc 644,682 0.08%

13,762 Methanex Corp 661,600 0.08%

4,003 National Bank Of Canada 164,276 0.02%

5,372 Parkland Fuel Corp 139,000 0.02%

16,648 Royal Bank Of Canada 1,138,958 0.13%

3,825 Telus Corpor W/I 126,725 0.01%

12,767 Waste Connections Inc 947,950 0.11%

Total Canada (2017: USD 11,743,660) 5,514,287 0.65%


91

PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL EQUITY FUND (CONTINUED) as at 31 December 2018


USD

% of

Net Assets Financial assets at fair value through profit or loss (continued)

Equities – 13.93% (2017: 16.35%) (continued)

Cayman Islands – 0.02% (2017: 0.21%)

3,003 Herbalife Nutrition Ltd 177,027 0.02%

Total Cayman Islands (2017: USD 2,487,970) 177,027 0.02%

Denmark – 0.20% (2017: 0.07%)

9,674 Coloplast-B 896,571 0.11%

5,348 Dsv Dkk1 351,621 0.04%

9,114 Novo Nordisk A/S-B 415,913 0.05%

Total Denmark (2017: USD 835,116) 1,664,105 0.20%

France – 0.37% (2017: 0.02%)

21,861 Bnp Paribas 986,496 0.12%

22,008 Cnp Assurances 465,934 0.05%

77,392 Credit Agricole Sa 834,278 0.10%

55,589 Orange Sa 899,502 0.10%

Total France (2017: USD 248,133) 3,186,210 0.37%

Germany – 0.27% (2017: 0.64%)

7,805 Covestro Ag 385,264 0.05%

12,626 Hugo Boss Ag -Ord 778,250 0.09%

22,027 Siemens Healthineers Ag 920,209 0.11%

8,159 Tag Immobilien Ag 185,700 0.02%

Total Germany (2017: USD 7,744,298) 2,269,423 0.27%

Guernsey – 0.02% (2017: Nil%)

3,007 Amdocs Ltd 176,150 0.02%

Total Guernsey (2017: USD Nil) 176,150 0.02%

Hong Kong – 0.02% (2017: 0.20%)

962,000 Shougang Fushan Resources 195,365 0.02%

Total Hong Kong (2017: USD 2,424,380) 195,365 0.02%


92



USD

% of


Equities – 13.93%(2017: 16.35% %) (continued)

Ireland – 0.15% (2017: 0.11%)

14,010 Medtronic Plc 1,274,350 0.15%

Total Ireland (2017: USD 1,287,181) 1,274,350 0.15%

Israel – Nil% (2017: 0.16%)

Total Israel USD Nil (2017: USD 1,913,477)

Italy – 0.02% (2017: 0.03%)

23,187 Poste Italiane Spa 185,119 0.02%

Total Italy (2017: USD 310,352) 185,119 0.02%

Japan – 1.16% (2017: 1.25%)

40,500 Aeon Co Ltd 793,463 0.09%

5,000 Central Japan Railway Co 1,055,690 0.12%

152,300 Daiwa Securities Group I 772,640 0.09%

78,900 Japan Post Holdings Co L 909,707 0.11%

22,600 Keihan Holdings Co Ltd 921,797 0.11%

8,200 Konica Minolta Inc 74,216 0.01%

24,800 Mitsubishi Heavy Industr 894,215 0.10%

593,500 Mizuho Financial Group I 921,233 0.11%

28,100 Nec Corp 836,226 0.10%

108,300 Nissan Motor Co Ltd 868,947 0.10%

44,800 Nomura Real Estate Holdi 822,786 0.09%

2,400 Ntt Docomo Inc 54,085 0.01%

12,700 Oki Electric Industry Co 150,365 0.02%

17,300 Suzuken Co Ltd 881,438 0.10%

Total Japan (2017: USD 15,147,887) 9,956,808 1.16%

Jersey Channel Islands – 0.12% (2017: Nil%)

13,023 Ferguson Plc 832,124 0.10%

30,169 Petrofac Ltd 183,279 0.02%

Total Jersey Channel Islands (2017: USD Nil) 1,015,403 0.12%

Luxembourg – Nil% (2017: 0.02%)

Total Luxembourg USD Nil (2017: USD 199,416)


93



USD

% of


Equities – 13.93 % (2017: 16.35 %) (continued)

Netherlands – 0.50% (2017: 0.51%)

149,978 Aegon Nv 699,334 0.08%

18,031 Aercap Holdings Nv 714,027 0.08%

11,600 Akzo Nobel 933,542 0.11%

4,862 Koninklijke Philips Nv 171,909 0.02%

10,898 Lyondellbasell Indu-Cl A 906,278 0.11%

21,229 Nn Group Nv 844,524 0.10%

Total Netherlands (2017: USD 6,210,081) 4,269,614 0.50%

Norway – 0.09% (2017: 0.08%)

37,871 Mowi Asa /Nok/ 799,043 0.09%

Total Norway (2017: USD 961,005) 799,043 0.09%

Portugal – 0.06% (2017: Nil%)

31,330 Galp Energia Sgps Sa B 494,066 0.06%

Total Portugal (2017: USD Nil) 494,066 0.06%

Singapore – 0.14% (2017: 0.22%)

123,700 Oversea-Chinese Banking 1,021,909 0.12%

214,100 Yanlord Land Group Ltd 191,637 0.02%

Total Singapore (2017: USD 2,635,400) 1,213,546 0.14%

Spain – 0.11% (2017: 0.19%)

24,052 Acs Actividades Cons Y S 930,157 0.11%

Total Spain (2017: USD 2,310,963) 930,157 0.11%

Sweden – 0.30% (2017: 0.33%)

23,127 Kinnevik Ab - B 557,447 0.07%

167,863 Klovern Ab-B Shs 194,638 0.02%

55,086 Skf Ab-B Shares 835,375 0.10%

88,784 Svenska Handelsbanken-A 984,392 0.11%

Total Sweden (2017: USD 4,005,221) 2,571,852 0.30%


94



USD

% of



Switzerland – 0.34% (2017: 0.18%)

11,944 Nestle Sa-Reg 966,861 0.11%

1,107 Novartis Ag-Reg 94,372 0.01%

210 Roche Holding Ag-Genussc 51,850 0.01%

11,133 Swiss Prime Site-Reg 898,387 0.10%

1,916 Swisscom Ag-Reg 912,909 0.11%

Total Switzerland (2017: USD 2,145,313 2,924,379 0.34%

United Kingdom – 0.56% (2017: 0.64%)

52,910 Glaxosmithkline Plc (Lse) 1,004,863 0.12%

6,532 Hsbc Holdings Plc 53,817 0.01%

230,355 Itv Plc 366,285 0.04%

4,142 Johnson Matthey Plc 147,654 0.02%

294,448 Legal & General Group Pl 866,271 0.10%

150,254 Marston S Plc 179,977 0.02%

62,635 National Grid Plc 609,617 0.07%

13,597 Next Plc 691,127 0.08%

10,903 Royal Dutch Shell Plc-A 320,421 0.04%

18,735 Royal Dutch Shell Plc-B 558,345 0.06%

Total United Kingdom (2017: USD 7,730,565) 4,798,377 0.56%

United States – 8.42% (2017: 9.35%)

5,109 Adobe Inc 1,155,860 0.13%

61,122 Aes Corp 883,824 0.10%

15,632 Agco Corp 870,233 0.10%

4,955 Air Lease Corp 149,691 0.02%

4,052 Air Products & Chemicals Inc 648,523 0.08%

13,678 Akamai Technologies Inc 835,452 0.10%

36,619 Ally Financial Inc 829,787 0.10%

863 Alphabet Inc-Cl A 901,800 0.11%

719 Alphabet Inc-Cl C 744,604 0.09%

1,551 Amazon.Com Inc 2,329,555 0.27%

6,788 Amgen Inc 1,321,420 0.15%

17,875 Apple Inc 2,819,603 0.33%

20,592 Archer-Daniels-Midland Co 843,654 0.10%

11,154 Arrow Electronics Inc 769,068 0.09%

8,317 At&T Inc 237,367 0.03%

21,450 Avnet Inc 774,345 0.09%

16,469 Bank Of America Corp 405,796 0.05%


95



USD

% of


Equities – 13.93% (2017: 16.35%)(continued)

United States – 8.42% (2017: 9.35%) (continued)

14,742 Baxter International Inc 970,318 0.11%

4,651 Berkshire Hathaway Inc-Cl B 949,641 0.11%

1,547 Best Buy Co Inc 81,929 0.01%

2,955 Boeing Co/The 952,988 0.11%

3,687 Brinker International Inc 162,154 0.02%

22,833 Bristol Myers Stk 1,186,859 0.14%

7,897 Broadridge Financial Solutio 760,086 0.09%

6,674 Brown & Brown Inc 183,935 0.02%

19,769 Cadence Design Sys Inc 859,556 0.10%

1,712 Carter’S Inc 139,733 0.02%

2,811 Centene Corp 324,108 0.04%

1,717 Chevron Corp 186,792 0.02%

1,487 Children’S Place Inc/The 133,964 0.02%

5,474 Ciena Corp 185,623 0.02%

35,137 Cisco Systems Inc 1,522,486 0.18%

580 Citigroup Inc 30,195 0.00%

8,389 Citrix Systems Inc 859,537 0.10%

32,250 Coca-Cola Co/The 1,527,038 0.18%

2,136 Comcast Corp -Class A 72,731 0.01%

4,634 Cvs Health Corporation_ 303,620 0.04%

16,669 Dell Technologies -C 814,614 0.09%

1,641 Domino’S Pizza Inc 406,952 0.05%

2,677 Dunkin’ Brands Group Inc 171,649 0.02%

6,760 Ecolab Inc 996,086 0.12%

11,186 Eli Lilly & Co 1,294,444 0.15%

12,139 Evergy Inc 689,131 0.08%

22,838 Exelon Corp 1,029,994 0.12%

1,963 Expedia Group Inc 221,132 0.03%

15,090 Exxon Mobil Corporation 1,028,987 0.12%

5,235 F5 Networks Inc 848,227 0.10%

4,386 Facebook Inc-Class A 574,961 0.07%

35,418 Fifth Third Bancorp 833,386 0.10%

8,428 Gilead Sciences Inc 527,171 0.06%

1,273 Goldman Sachs Group Inc 212,655 0.02%

8,774 Home Depot Inc 1,507,549 0.18%

1,201 Honeywell International Inc 158,676 0.02%


96



USD

% of


Equities – 13.93% (2017: 16.35%)(continued)

United States – 8.42% (2017: 9.35%) (continued)

3,146 Humana Inc 901,266 0.10%

66,720 Huntington Bancshares Inc 795,302 0.09%

4,352 Huntington Ingalls Industrie 828,229 0.10%

5,041 Intel Corp 236,574 0.03%

5,047 Intuit Inc 993,502 0.12%

7,325 Iqvia Holdings Inc 850,945 0.10%

7,518 Johnson & Johnson 970,198 0.11%

7,916 Jpmorgan Chase & Co 772,760 0.09%

21,372 Juniper Networks Inc 575,121 0.07%

19,179 Kroger Co 527,423 0.06%

11,020 Ladder Capital Corp-Reit 170,479 0.02%

14,869 Lincoln National Corp 762,928 0.09%

14,726 Marathon Petroleum Corp 868,981 0.10%

692 Mastercard Inc - A 130,546 0.01%

20,878 Merck & Co. Inc. 1,595,288 0.19%

21,131 Microsoft Corp 2,146,276 0.25%

6,685 Nxstage Medical Inc 191,325 0.02%

18,936 Oracle Corp 854,960 0.10%

381 Pepsico Inc 42,093 0.00%

39,670 Pfizer Inc Equity 1,731,596 0.20%

10,081 Phillips 66 868,478 0.10%

2,615 Procter & Gamble Co/The 240,371 0.03%

10,110 Prudential Financial Inc 824,471 0.10%

12,346 Republic Services Inc 890,023 0.10%

3,762 S&P Global Inc 639,314 0.07%

1,566 Service Corp International 63,047 0.01%

5,052 Sleep Number Corp 160,300 0.02%

10,809 Spirit Aerosystems Hold-Cl A 779,221 0.09%

18,300 Starbucks Corp 1,178,520 0.14%

2,683 Synopsys Inc 226,016 0.03%

4,256 Sysco Corp 266,681 0.03%

4,223 Tribune Media Co - A 191,640 0.02%

838 Twenty-First Century Fox - B 40,040 0.00%

16,910 Ugi Corp 902,149 0.11%

8,615 Union Pacific Corp 1,190,851 0.14%

2,748 United Technologies Corp 292,607 0.03%

1,234 Unitedhealth Group Inc 307,414 0.04%


97



USD

% of


Equities – 13.93% (2017: 16.35 %) (continued)

United States – 8.42% (2017: 9.35 %) (continued)

10,940 Valero Energy Corp 820,172 0.10%

8,049 Verisk Analytics Inc 877,663 0.10%

4,638 Verizon Communications - Vz.N 260,748 0.03%

10,915 Viacom Inc-Class B 280,516 0.03%

2,423 Visa Inc-Class A Shares 319,691 0.04%

20,773 Voya Financial Inc 833,828 0.10%

13,618 Walgreens Boots Alliance Inc 930,518 0.11%

5,626 Walt Disney Co/The 616,891 0.07%

6,360 Wells Fargo & Co 293,069 0.03%

3,053 Wingstop Inc 195,972 0.02%

3,531 Wr Berkley Corp 260,976 0.03%

11,033 Yum! Brands Inc 1,014,153 0.12%

663 Zimmer Biomet Holdings Inc 68,766 0.01%

11,244 Zoetis Inc 961,812 0.11%

Total United States (2017: USD 112,833,603) 71,971,199 8.42%

Total Equities (2017: USD 197,416,744) 119,059,911 13.93%


11,164,935 SPW Global High Quality Institutional 8,248,403 0.96%

8,125,149 Sanlam Global Value Fund 128,466,730 15.03%

50,305,821 Satrix North America Equity Tracker Fund 78,602,845 9.19%

38,674,902 Satrix Europe (Ex-UK) Equity Tracker Fund 44,723,656 5.23%

4,825,323 Satrix UK Equity Tracker Fund 4,782,860 0.56%

38,410,119 Sanlam Japan Equity Fund 41,740,277 4.88%

103,688,168 Satrix World Equity Tracker Fund 229,088,638 26.80%

6,294,952 Sanlam US Dividend Fund 85,289,051 9.98%

69,378,900 Sanlam Centre American Select Equity Fund 83,303,245 9.74%

96,646 Sanlam Active UK Fund 1,088,040 0.13%

1,431,245 BlackRock Global Funds - Asian Growth Leaders Fund 26,950,346 3.15%

Total Collective Investment Schemes (2017: USD 1,006,229,723) 732,284,091 85.65%


Cash and cash equivalents 4,681,513 0.55%

Other net assets and liabilities - 0.00%



98

PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL LIQUIDITY FUND as at 31 December 2018


USD

% of


Collective Investment Schemes – 98.66 % (2017: 97.45%)

57,387 Institutional Euro Liquidity Fund 6,569,346 43.83%

16,470 Institutional Sterling Liquidity Fund 2,182,792 14.56%

57,828 Institutional US Dollar Liquidity Fund 6,036,872 40.27%







99

PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND as at 31 December 2018 Nominal Security Fair Value % of USD Net Assets

Financial assets at fair value through profit or loss

Equities – 39.96% (2017: 40.06%)

Belgium – Nil% (2017: 0.21%)

Total Belgium USD Nil (2017: USD 644,423)

Bermuda – 0.40% (2017: 0.44%)

755,483 Kunlun Energy Co Ltd 800,898 0.40%

Total Bermuda (2017: USD 1,353,640) 800,898 0.40%

Canada – 1.01% (2017: 0.78%)

58,000 Goldcorp Inc 567,770 0.29%

43,300 Husky Energy Inc 447,330 0.22%

50,700 Wheaton Precious Metals 989,277 0.50%

Total Canada (2017: USD 2,400,963) 2,004,377 1.01%

Cayman Islands – 0.98% (2017: 0.77%)

4,740 Baidu Inc 751,764 0.38%

125,000 Ck Hutchison Holdings Lt 1,200,611 0.60%

Total Cayman Islands (2017: USD 2,378,343) 1,952,375 0.98%

Channel Islands – Nil% (2017: 0.50%)

Total Channel Islands USD Nil (2017: USD 1,557,389)

China – 1.21% (2017: 0.35%)

441,639 China Life Insurance Co- 938,631 0.48%

2,838,681 China Telecom Corp Ltd-H 1,450,277 0.73%

Total China USD Nil (2017: USD 1,089,237) 2,388,908 1.21%

Denmark – 1.02% (2017: 0.21%)

693 Ap Moller-Maersk A/S-B 868,804 0.44%

15,406 Vestas Wind Systems A/S 1,161,359 0.58%

Total Denmark (2017: USD 638,440) 2,030,163 1.02%


100

PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2018

Nominal Security Fair Value % of USD Net Assets

Financial assets at fair value through profit or loss (continued)


France – 4.17% (2017: 2.56%)

55,380 Axa Sa 1,193,856 0.60%

28,708 Bnp Paribas 1,295,473 0.65%

24,877 Compagnie De Saint Gobai 829,398 0.42%

39,500 Credit Agricole Sa 425,806 0.22%

7,622 Michelin (Cgde) 755,425 0.38%

15,553 Sanofi 1,345,190 0.68%

23,025 Total Sa 1,215,505 0.61%

58,841 Veolia Environnement 1,207,727 0.61%

Total France (2017: USD 7,928,249) 8,268,380 4.17%

Germany – 2.47% (2017: 2.64%)

13,788 Bayer Ag-Reg 954,532 0.48%

81,835 E.On Se 807,053 0.41%

6,204 Fresenius Medical Care Ag & Co 401,697 0.20%

7,692 Merck Kgaa 791,204 0.40%

12,959 Siemens Ag-Reg 1,442,595 0.73%

128,811 Telefonica Deutschland H 503,301 0.25%


Hong Kong – 0.90% (2017: 0.69%)

56,055 Aia Group Ltd 465,374 0.23%

137,648 China Mobile Ltd 1,324,730 0.67%

Total Hong Kong (2017: USD 2,144,844) 1,790,104 0.90%

Ireland – 2.32% (2017: 1.26%)

9,460 Allergan Plc 1,264,424 0.64%

170,451 Bank Of Ireland Group Pl 946,976 0.48%

44,028 Crh Plc 1,162,637 0.59%

8,827 Medtronic Plc 802,904 0.40%

10,690 Perrigo Company Plc 414,237 0.21%


Israel – 0.79% (2017: 0.68%)

101,190 Teva Pharmaceutical-Sp Adr 1,560,350 0.79%

Total Israel (2017: USD 2,105,155) 1,560,350 0.79%


101

PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2018 Nominal Security Fair Value % of USD Net Assets



Italy – 0.87% (2017: 0.54%)

77,450 Eni Spa 1,217,206 0.61%

44,677 Unicredit Spa 505,312 0.26%

Total Italy (2017: USD 1,672,270) 1,722,518 0.87%

Japan – 3.37% (2017: 3.47%)

42,300 Mitsui Fudosan Co Ltd 942,656 0.48%

19,900 Omron Corp 725,516 0.37%

81,000 Panasonic Corp 731,337 0.37%

24,300 Seven & I Holdings Co Lt 1,059,353 0.53%

10,600 Softbank Group Corp 705,765 0.36%

24,400 Sumitomo Mitsui Financia 810,628 0.41%

13,359 Suntory Beverage & Food 603,934 0.30%

21,900 Taiheiyo Cement Corp 677,669 0.34%

12,600 Takeda Pharmaceutical Co 425,493 0.21%

Total Japan (2017: USD 10,756,430) 6,682,351 3.37%

Jersey Channel Islands – 0.81% (2017: 0.00%)

27,630 Shire Plc 1,608,163 0.81%

Total Jersey Channel Islands (2017: USD Nil) 1,608,163 0.81%

Korea (South) – Nil% (2017: 1.25%)

Total Korea (South) USD Nil (2017: USD 3,875,112)

Luxembourg – 0.48% (2017: 0.65%)

49,379 Ses Fdr 943,239 0.48%

Total Luxembourg (2017: USD 2,004,068) 943,239 0.48%

Total Netherlands – 1.31% (2017: 1.66%)

19,750 Flow Traders 628,550 0.32%

102,604 Ing Groep Nv 1,103,715 0.56%

11,700 Nxp Semiconductors Nv 857,376 0.43%

Total Total Netherlands (2017: USD 5,129,205) 2,589,641 1.31%

Norway – Nil% (2017: 0.32%)

Total Norway USD Nil (2017: USD 1,002,791)


102




Portugal – Nil% (2017: 0.27%)

Total Portugal USD Nil (2017: USD 850,454)

Singapore – 0.55% (2017: 0.20%)

508,647 Singapore Telecommunicat 1,093,423 0.55%

Total Singapore (2017: USD 626,071) 1,093,423 0.55%

South Korea – 0.82% (2017: Nil%)

46,852 Samsung Electronics Co L /Krw/ 1,624,998 0.82%

Total South Korea (2017: USD Nil) 1,624,998 0.82%

Sweden – 0.20% (2017: 0.27%)

43,516 Getinge Ab-B Shs 392,171 0.20%

Total Sweden (2017: USD 832,232) 392,171 0.20%

Switzerland – 1.49% (2017: 1.37%)

4,770 Novartis Ag-Reg 406,645 0.21%

5,012 Roche Holding Ag-Genussc 1,237,493 0.62%

104,905 Ubs Group Ag-Reg 1,302,001 0.66%

Total Switzerland (2017: USD 4,249,772 2,946,139 1.49%

Taiwan – 0.36% (2017: Nil%)

19,200 Taiwan Semiconductor-Sp Adr 708,672 0.36%

Total Taiwan (2017: USD Nil) 708,672 0.36%

Thailand – 0.42% (2017: 0.38%)

111,500 Bangkok Bank Pcl-Foreign /Thb/ 695,163 0.35%

23,196 Bangkok Bank Public Co-N /Thb/ 144,619 0.07%

Total Thailand (2017: USD 1,190,289) 839,782 0.42%

United Kingdom – 4.94% (2017: 5.32%)

425,111 Barclays Plc 814,947 0.41%

326,875 Bp Plc 2,064,679 1.04%

82,226 Hsbc Holdings Plc 680,548 0.34%

359,570 Kingfisher Plc 950,243 0.48%


103



Equities - 39.96% (2017: 40.06%) (continued)

United Kingdom – 4.94% (2017: 5.32%) (continued)

13,470 Prudential Plc 240,519 0.12%

2,422,314 Rolls Royce Hldgs C Shs 3,085 0.00%

52,659 Rolls-Royce Holdings Plc 556,652 0.28%

64,868 Royal Dutch Shell Plc-A 1,906,361 0.96%

167,777 Standard Chartered Plc 1,301,957 0.66%

657,527 Vodafone Group Plc 1,280,425 0.65%

Total United Kingdom (2017: USD 16,472,990) 9,799,416 4.94% United States – 9.07% (2017: 13.27%)

35,640 Ally Financial Inc 807,602 0.41%

580 Alphabet Inc-Cl A 606,077 0.31%

5,671 Amgen Inc 1,103,974 0.56%

21,550 Apache Corp 565,688 0.28%

17,188 Capital One Financial Corp 1,299,241 0.65%

11,900 Celgene Corp 762,671 0.38%

24,290 Citigroup Inc 1,264,537 0.64%

38,820 Comcast Corp -Class A 1,321,821 0.67%

38,900 Commscope Holding Co Inc 637,571 0.32%

93,400 Coty Inc-Cl A 612,704 0.31%

6,280 Eli Lilly & Co 726,722 0.37%

12,100 Exxon Mobil Corporation 825,099 0.42%

18,391 Gilead Sciences Inc 1,150,357 0.58%

28,730 Knowles Corp 382,395 0.19%

67,100 Mattel Inc 670,329 0.34%

52,320 Oracle Corp 2,362,248 1.19%

9,680 United Parcel Service-Cl B 944,090 0.48%

11,952 Voya Financial Inc 479,753 0.24%

10,200 Walgreens Boots Alliance Inc 696,966 0.35%

16,500 Wells Fargo & Co 760,320 0.38%




104




17,071,454 Sanlam World Equity Fund 32,988,878 16.64%

12,278,196 Denker Global Emerging Market Fund 12,257,323 6.19%

1,056,165 Schroder International Selection Fund – Global Equity 31,809,909 16.05%

1,918,894 Aberdeen Global – World Equity Fund 40,912,165 20.64%




Other net assets and liabilities (445,623) 0.00%

Net assets attributable to holders of redeemable participating shares

198,210,142 100.00%


105

PORTFOLIO OF INVESTMENTS SANLAM BIFM GLOBAL FIXED INCOME FUND as at 31 December 2018




597,226 PIMCO Funds Global Investors Series Plc - Inc 8,534,359 22.73%

21,324,506 Sanlam Global Bond Fund 29,244,427 77.87%



Cash and cash equivalents (50,654) (0.13)%


Net assets attributable to holders of redeemable participating shares

37,553,122 100.00%


106

PORTFOLIO OF INVESTMENTS MPILE GLOBAL EQUITY FUND as at 31 December 2018

Mpile Global Equity Fund closed on Closed on 25 October 2018 and therefore there is no portfolio of investments for the year ended 31 December 2018. A summary of the portfolio of investments as at 31 December 2017 is set out below:



Total Collective Investment Schemes 37,086,754 100.09%


107

PORTFOLIO OF INVESTMENTS OF SANLAM PRIVATE WEALTH GLOBAL BALANCED FUND

as at 31 December 2018


% of

USD Net Assets


Equities – 57.11% (2017: 53.52%)

Cayman Islands – 5.40% (2017: 3.75%)

2,800 Alibaba Group Holding-Sp Adr 383,796 0.44%

8,236 Netease Inc-Adr 1,938,507 2.23%

59,400 Tencent Holdings Ltd 2,382,267 2.73%


Denmark – Nil% (2017: 0.85%)

Total Denmark USD Nil (2017: USD 730,872)

France – 1.77% (2017: 1.83%)

22,000 Danone 1,546,933 1.77%

Total France (2017: USD 1,583,429) 1,546,933 1.77%

Germany – 1.32% (2017: 2.17%)

17,750 Fresenius Medical Care Ag & Co 1,149,277 1.32%


Ireland - 5.29% (2017: 2.81%)

11,750 Allergan Plc 1,570,505 1.80%

33,450 Medtronic Plc 3,042,612 3.49%


Spain - Nil% (2017: 0.63%)

Total Spain USD Nil (2017: USD 542,027)

South Korea - 2.03% (2017: Nil%)

2,040 Samsung Electr-Gdr Reg S 1,768,680 2.03%

Total South Korea (2017: USD Nil) 1,768,680 2.03%

Switzerland - 2.42% (2017: 3.14%)

8,530 Roche Holding Ag-Genussc 2,106,109 2.42%

Total Switzerland - 2.03 (2017: USD 2,714,618) 2,106,109 2.42%


108

PORTFOLIO OF INVESTMENTS OF SANLAM PRIVATE WEALTH GLOBAL BALANCED FUND (CONTINUED)

as at 31 December 2018 Nominal Security Fair Value % of

USD Net Assets



United Kingdom - 10.55% (2017: 11.51%)

41,947 British American Tobacco 1,335,593 1.53%

31,987 Diageo Plc 1,138,645 1.31%

40,165 Imperial Brands Plc 1,215,934 1.40%

29,190 Reckitt Benckiser Group 2,235,416 2.57%

245,100 Sage Group Plc/The 1,877,326 2.15%

26,505 Unilever Plc 1,386,897 1.59%


United States - 28.33% (2017: 26.84%)

1,100 Alphabet Inc-Cl A 1,149,456 1.32%

1,376 Alphabet Inc-Cl C 1,424,999 1.63%

18,300 Altria Group Inc 903,837 1.04%

8,125 American Express Co 774,475 0.89%

1,245 Booking Holdings Inc 2,144,413 2.46%

15,050 Cognizant Tech Solutions-A 955,374 1.10%

16,800 Facebook Inc-Class A 2,202,312 2.53%

15,850 Johnson & Johnson 2,045,443 2.35%

16,700 Microsoft Corp 1,696,219 1.95%

56,000 Oracle Corp 2,528,400 2.90%

20,684 Pepsico Inc 2,285,168 2.62%

12,500 Philip Morris International 834,500 0.96%

62,500 Sabre Corp 1,352,500 1.55%


3,900 Waters Corp 735,735 0.84%

60,000 Yum China Holdings Inc 2,011,800 2.31%

13,100 Yum! Brands Inc 1,204,153 1.38%




49,265 Orbis Optimal SA Fund 729,606 0.84%

6,709,670 Sanlam Strategic Bond Fund 9,337,848 10.71%

455,539 Sanlam Multi-Strategy Fund 4,696,974 5.39%



109

PORTFOLIO OF INVESTMENTS OF SANLAM PRIVATE WEALTH GLOBAL BALANCED FUND (CONTINUED)








1The cash balances include overnight deposits transferred through the Depositary’s sweep account in the amount of EUR 2,711,439 held with Deutsche Bank, GBP 1,576,999 held with HSBC, USD 14,583,655 held with Standard Chartered and USD 3,068,993 held with BNP Paribas.


110

PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND




Equities – 80.42 % (2017: 87.38%)

Belgium – 0.08% (2017: 0.14%)

364 Anheuser-Busch Inbev-Spn Adr 23,955 0.08%

Total Belgium (2017: USD 40,608) 23,955 0.08%

Bermuda – 2.86% (2017: 2.49%)

2,409 Liberty Latin Americ-Cl A 34,882 0.12%

16,792 Stolt-Nielsen Ltd 195,627 0.66%

723 White Mountains Insurance Gp 620,110 2.08%

Total Bermuda (2017: USD 748,795) 850,619 2.86%

Canada – 8.58% (2017: 9.07%)

16,543 Brookfield Asset Manage-Cl A 634,424 2.13%

22,845 Dream Unlimited-Cl A Sub Vot 115,139 0.39%

99,093 Dundee Corp -Cl A 95,040 0.32%

1,389 Fairfax Financial Hldgs Ltd 611,271 2.06%

48,894 Fairfax India Ho-Sub Vtg Shs 641,978 2.16%

17,613 Lions Gate Entertainment-B 262,081 0.88%

2,176 Nutrien Ltd 102,156 0.34%

4,486 Wheaton Precious Metals 87,612 0.30%

Total Canada (2017: USD 2,723,484) 2,549,701 8.58%

Cayman Islands – 2.93% (2017: 0.00%)

29,368 Greenlight Capital Re Ltd-A 253,152 0.85%

6,071 Pinduoduo Inc-Adr 136,233 0.46%

12,239 Tencent Holdings Ltd-Uns Adr 483,074 1.62%

Total Cayman Islands (2017: USD Nil) 872,459 2.93%

Denmark – 2.33% (2017: 1.04%)

48,510 APMoller-Maersk-B-UnspAdr 302,703 1.02%

8,461 Novo-Nordisk A/S-Spons Adr 389,798 1.31%

Total Denmark (2017: USD 312,194) 692,501 2.33%

France – 0.97% (2017: 1.57%)

8,175 Bollore 32,708 0.11%

5,593 L’Oreal-Unsponsored Adr 255,377 0.86%

Total France (2017: USD 472,266) 288,085 0.97%


111

PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED)





Germany – Nil% (2017: 0.59%)

Total Germany USD Nil (2017: USD 177,458)

Italy – 0.49% (2017: 0.50%)

2,448 Luxottica Group Spa-Spon Adr 144,628 0.49%

Total Italy (2017: USD 149,744) 144,628 0.49%

Japan – 1.36% (2017: 0.18%)

30,304 Japan Tobacco Inc-Unspon Adr 356,072 1.20%

2,136 Mixi Inc 47,274 0.16%

Total Japan (2017: USD 55,506) 403,346 1.36%

Luxembourg – 0.07% (2017: 0.10%)

1,497 Reinet Investments Sca 20,535 0.07%

Total Luxembourg (2017: USD 30,957) 20,535 0.07%

Marshall Island – 1.00% (2017: Nil%)

38,006 Seaspan Corp 297,587 1.00%

Total Marshall Island (2017: USD Nil) 297,587 1.00%

Mexico – Nil% (2017: 0.46%)

Total Mexico USD Nil (2017: USD 139,334)

Netherlands – 1.76% (2017: 0.98%)

20,446 Fiat Chrysler Automobiles Nv 295,649 0.99%

4,254 Unilever N V -Ny Shares 228,865 0.77%

Total Netherlands (2017: USD 293,315) 524,514 1.76%

Norway – 0.46% (2017: 0.96%)

6,506 Equinor Asa-Spon Adr 137,732 0.46%

Total Norway (2017: USD 287,735) 137,732 0.46%


112




Financial assets at fair value through profit or loss (continued) Equities – 80.42% (2017: 87.38%) (continued)

Russia – 0.47% (2017: 0.50%)

5,514 Gazprom Neft-Sponsored Adr 139,945 0.47%

Total Russia (2017: USD 149,229) 139,945 0.47%

South Africa – Nil% (2017: 0.95%)

Total South Africa USD Nil (2017: USD 284,460)

Switzerland – 2.06% (2017: 1.54%)

7,549 Nestle Sa-Spons Adr 611,167 2.06%

Total Switzerland (2017: USD 461,573) 611,167 2.06%

United Kingdom – 3.22% (2017: 3.75%)

18,898 British American Tob-Sp Adr 602,090 2.03%

1,021 Diageo Plc-Sponsored Adr 144,778 0.49%

6,853 Imperial Brands Plc-Spon Adr 209,154 0.70%

Total United Kingdom (2017: USD 1,124,559) 956,022 3.22% United States - 51.78% (2017: 62.56%)

14,266 Altria Group Inc 704,598 2.37%

49 Amazon.Com Inc 73,596 0.25%

758 Amc Networks Inc-A 41,599 0.14%

3,981 Associated Capital Group 140,251 0.47%


5,366 Berkshire Hathaway Inc-Cl B 1,095,630 3.69%

6,596 Brown-Forman Corp-Class B 313,838 1.06%

3,349 Cal-Maine Foods Inc 141,663 0.48%

3,595 Cbre Group Inc - A 143,944 0.48%

5,609 Cbs Corp-Class B Non Voting 245,225 0.83%

16,934 Centurylink Inc 256,550 0.86%

976 Charter Communications Inc - A 278,131 0.94%

194 Clorox Company 29,903 0.10%

2,552 Colgate-Palmolive Co 151,895 0.51%

4,124 Cvr Energy Inc 142,195 0.48%

1,798 Discovery Communications Inc 44,482 0.15%

11,908 Equity Commonwealth 357,359 1.20%

529 Facebook Inc-Class A 69,347 0.23%

184 Fedex Corp 29,685 0.10%

4,751 Franklin Resources Inc 140,915 0.47%

5,160 Gci Liberty Inc - Class A 212,386 0.71%


113


as at 31 December 2018 Nominal Security Fair Value % of USD Net Assets

Financial assets at fair value through profit or loss (continued) Equities – 80.42% (2017: 87.38%) (continued) United States - 51.78% (2017: 62.56%) (continued)

1,081 Gilead Sciences Inc 67,617 0.23%

404 Goldman Sachs Group Inc 67,488 0.23%

2,902 Hilton Grand Vacations Inc 76,584 0.26%

2,191 Howard Hughes Corp/The 213,885 0.72%

13,619 Jbg Smith Properties 474,077 1.60%

1,056 Jones Lang Lasalle Inc 133,690 0.45%

2,746 Jpmorgan Chase & Co 268,064 0.90%

16,373 Kennedy-Wilson Holdings Inc 297,497 1.00%

1,801 Kkr & Co Inc -A 35,354 0.12%

1,556 L Brands Inc 39,942 0.13%

4,496 Liberty Media Corp-Liberty-A 133,621 0.45%

13,019 Loews Corp 592,625 1.99%

12,249 Macy’S Inc 364,775 1.23%

1,168 Madison Square Garden Co- A 312,674 1.05%

126 Markel Corp 130,794 0.44%

502 Marriott International -Cl A 54,497 0.18%

1,594 Mastercard Inc - A 300,708 1.01%

2,140 Moody’S Corp 299,686 1.01%

1,426 Morningstar Inc 156,632 0.53%

15,042 Newell Brands Inc 279,631 0.94%

19,564 Newmont Mining Corp 677,893 2.28%

6,298 Nordstrom Inc 293,550 0.99%

7,188 Oaktree Capital Group Llc 285,723 0.96%

5,253 Park Hotels & Resorts Inc 136,473 0.46%

564 Paypal Holdings Inc 47,427 0.16%

773 Pebblebrook Hotel Trust 21,884 0.07%


4,112 Procter & Gamble Co/The 377,975 1.27%

1,811 S&P Global Inc 307,761 1.04%

3,105 Simon Property Group Inc 521,609 1.76%

5,896 St Joe Co/The 77,650 0.26%

4,675 Starbucks Corp 301,070 1.01%

4,123 Tri Pointe Group Inc 45,064 0.15%

14,215 Twenty-First Century Fox-A 684,026 2.30%

305 Verisign Inc 45,228 0.15%


114



Financial assets at fair value through profit or loss (continued) Equities – 80.42 % (2017: 87.38%) (continued) United States - 51.78% (2017: 62.56%) (continued)


4,938 Vornado Realty Trust 306,304 1.03%


5,499 Wells Fargo & Co 253,394 0.85%

265 Wynn Resorts Ltd 26,211 0.09%

3,964 Yum China Holdings Inc 129,554 0.44%



Exchange Traded Funds – 3.18 % (2017: 4.61 %)

13,746 Brookfield Property Partners 221,586 0.74%

4,719 Icahn Enterprises Lp 269,361 0.91%

19,959 Royce Value Trust Inc 235,516 0.79%

29,477 Royce Micro Cap Trust Inc 218,719 0.74%

Total Exchange Traded Funds (2017: USD 1,384,729) 945,182 3.18%





1The cash balances include overnight deposits transferred through the Depositary’s sweep account in the amount of EUR 209,636 held with Barclays, GBP 226,121 held with Citibank and USD 4,368,818 held with Standard Chartered.


115

PORTFOLIO OF INVESTMENTS OF INDEPENDENT GLOBAL FLEXIBLE FUND

as at 31 December 2018 Nominal Security Fair Value % of USD Net

Assets


Equities - 97.24% (2017: 94.69 %)

Cayman Islands – 17.37% (2017: 12.11%)

10,950 Alibaba Group Holding-Sp Adr 1,500,917 7.19%

16,600 Iqiyi Inc-Adr 246,842 1.18%

32,400 Jd.Com Inc-Adr 678,132 3.25%

1,730 Netease Inc-Adr 407,190 1.95%

7,210 Noah Holdings Ltd-Spon Ads 312,337 1.50%

9,000 Pagseguro Digital Ltd-Cl A 168,570 0.81%

5,200 Yy Inc-Adr 311,272 1.49%


Denmark – 2.62% (2017: 7.53%)

13,442 Pandora A/S 546,291 2.62%

Total Denmark (2017: USD 2,111,568) 546,291 2.62%

Guernsey – 1.89% (2017: 1.69%)

517,138 Sirius Real Estate Ltd 393,650 1.89%

Total Guernsey (2017: USD 473,542) 393,650 1.89%

Ireland – Nil% (2017: 4.12%)

Total Ireland USD Nil (2017: USD 1,155,529)

Netherlands – 6.09% (2017: 4.90%)

975,387 Epp Nv 1,271,360 6.09%

Total Netherlands (2017: USD 1,376,356) 1,271,360 6.09%

Russia – 2.08% (2017: Nil%)

39,600 Sberbank Pjsc -Sponsored Adr 434,016 2.08%

Total Russia (2017: USD Nil) 434,016 2.08%

South Africa – 0.90% (2017: 1.70%)

20,000 Aspen Pharmacare Holding 187,445 0.90%

Total South Africa (2017: USD 476,349) 187,445 0.90%

Switzerland – 3.55% (2017: 3.43%)

3,000 Roche Holding Ag-Genussc 740,718 3.55%



116

PORTFOLIO OF INVESTMENTS OF INDEPENDENT GLOBAL FLEXIBLE FUND (CONTINUED)


Financial assets at fair value through profit or loss (continued) Equities - 97.24 % (2017: 94.69 %) (continued)

United Kingdom – 7.64% (2017: 16.08%)

15,330 British American Tobacco 500,130 2.40%

17,521 Imperial Brands Plc 530,422 2.54%

354,821 ITV Plc 564,197 2.70%

Total United Kingdom (2017: USD 4,509,670) 1,594,749 7.64% United States - 55.10 % (2017: 43.13 %)

7,500 Abbvie Inc 691,425 3.31%

1,187 Alphabet Inc-Cl C 1,229,269 5.89%


3,600 Apple Inc 567,864 2.72%


41,280 Box Inc - Class A 696,806 3.34%


14,500 Celgene Corp 929,305 4.45%

16,200 Citigroup Inc 843,372 4.04%


3,220 Fedex Corp 519,483 2.49%

5,450 Mastercard Inc - A 1,028,142 4.93%

8,600 Paypal Holdings Inc 723,174 3.46%

20,000 Viacom Inc-Class B 514,000 2.46%

10,581 Walt Disney Co/The 1,160,207 5.56%



Collective Investment Schemes – 2.89% (2017: Nil%)

39,801 Fundsmith Emerging Equities Trust Plc 603,218 2.89%

Total Collective Investment Schemes (2017: USD Nil) 603,218 2.89%






117

PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL OWNER MANAGED FLEXIBLE FUND



Equities - 46.76% (2017: 19.43%)

Belgium – 0.05% (2017: 0.12%)

80 Anheuser-Busch Inbev-Spn Adr 5,265 0.05%

Total Belgium (2017: USD 8,925) 5,265 0.05%

Bermuda – 1.62% (2017: 0.55%)

2,534 Stolt-Nielsen Ltd 29,521 0.28%

161 White Mountains Insurance Gp 138,088 1.34%

Total Bermuda (2017: USD 40,871) 167,609 1.62%

Canada – 6.01% (2017: 0.86%)

5,010 Brookfield Asset Manage-Cl A 192,133 1.86%

4,913 Dream Unlimited-Cl A Sub Vot 24,762 0.24%

52,984 Dundee Corp -Cl A 50,817 0.49%

249 Fairfax Financial Hldgs Ltd 109,580 1.06%

13,438 Fairfax India Ho-Sub Vtg Shs 176,441 1.71%

4,534 Lions Gate Entertainment-B 67,466 0.65%

Total Canada (2017: USD 63,137) 621,199 6.01%

Cayman Islands – 1.60% (2017: 0.21%)

11,775 Greenlight Capital Re Ltd-A 101,500 0.98%

300 Tencent Holdings Ltd 12,032 0.12%


Total Cayman Islands (2017: USD 15,590) 165,238 1.60%

Denmark – 0.66% (2017: 0.17%)

9,270 APMoller-Maersk-B-UnspAdr 57,845 0.56%

231 Novo-Nordisk A/S-Spons Adr 10,642 0.10%

Total Denmark (2017: USD 12,398) 68,487 0.66%

France – 0.49% (2017: 0.27%)

7,706 Bollore 30,716 0.30%

442 L’Oreal-Unsponsored Adr 20,182 0.19%

Total France (2017: USD 19,572) 50,898 0.49%

Germany – Nil% (2017: 0.48%)

Total Germany USD Nil (2017: USD 35,507)


118

PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL OWNER MANAGED FLEXIBLE FUND (CONTINUED)



Equities - 46.76% (2017: 19.43%) (continued)

Italy – 0.35% (2017: Nil%)

610 Luxottica Group Spa-Spon Adr 36,039 0.35%

Total Italy (2017: USD Nil) 36,039 0.35%

Japan – 0.16% (2017: Nil%)

739 Mixi Inc 16,355 0.16%

Total Japan (2017: USD Nil) 16,355 0.16%

Marshall Island – 0.70% (2017: Nil%)

9,174 Seaspan Corp 71,832 0.70%

Total Marshall Island (2017: USD Nil) 71,832 0.70%

Netherlands – 0.99% (2017: - 0.68%)

5,296 Fiat Chrysler Automobiles Nv 76,580 0.74%

469 Unilever N V -Ny Shares 25,232 0.25%


Norway – 0.45% (2017: 0.17%)

2,216 Equinor Asa-Spon Adr 46,913 0.45%

Total Norway (2017: USD 12,531) 46,913 0.45%

Switzerland – 0.70% (2017: 0.71%)

897 Nestle Sa-Spons Adr 72,621 0.70%


United Kingdom – 1.18% (2017: 1.56%)

2,840 British American Tob-Sp Adr 90,482 0.87%

838 Imperial Brands Plc-Spon Adr 25,576 0.25%

421 Reckitt Benckiser-Spon Adr 6,370 0.06%

Total United Kingdom (2017: USD 114,764) 122,428 1.18%


119



Financial assets at fair value through profit or loss (continued) Equities - 46.76% (2017: 19.43%) (continued) United States - 31.80 % (2017: 13.65 %) (continued)


3,977 Altria Group Inc 196,424 1.90%


667 Amc Networks Inc-A 36,605 0.35%

139 American Express Co 13,249 0.13%

1,013 Associated Capital Group 35,688 0.34%

735 Bank Of America Corp 18,110 0.17%


1,039 Brown-Forman Corp-Class B 49,436 0.48%

783 Cal-Maine Foods Inc 33,121 0.32%

524 Cbre Group Inc - A 20,981 0.20%


4,336 Centurylink Inc 65,690 0.64%

224 Charter Communications Inc - A 63,833 0.62%

96 Clorox Company 14,797 0.14%

103 Colgate-Palmolive Co 6,131 0.06%

2,046 Cvr Energy Inc 70,546 0.68%

3,110 Equity Commonwealth 93,331 0.90%

417 Equity Lifestyle Properties 40,503 0.39%

184 Facebook Inc-Class A 24,121 0.23%

64 Fedex Corp 10,325 0.10%

1,150 Franklin Resources Inc 34,109 0.33%

213 Gilead Sciences Inc 13,323 0.13%

172 Goldman Sachs Group Inc 28,733 0.28%

3,054 Jbg Smith Properties 106,310 1.03%

154 Jones Lang Lasalle Inc 19,496 0.19%

200 Jpmorgan Chase & Co 19,524 0.19%

2,846 Kennedy-Wilson Holdings Inc 51,712 0.50%

506 Kkr & Co Inc -A 9,933 0.10%

479 L Brands Inc 12,296 0.12%

3,080 Loews Corp 140,202 1.36%

2,702 Macy’S Inc 80,466 0.78%

408 Madison Square Garden Co- A 109,222 1.06%

19 Markel Corp 19,723 0.19%

407 Mastercard Inc - A 76,780 0.74%


120




Equities - 46.76% (2017: 19.43%) (continued) United States - 31.80% (2017: 13.65%) (continued)

484 Moody’S Corp 67,779 0.66%

314 Morningstar Inc 34,490 0.33%

2,653 Newell Brands Inc 49,319 0.48%

5,703 Newmont Mining Corp 197,609 1.91%

1,589 Nordstrom Inc 74,063 0.72%

500 Oaktree Capital Group Llc 19,875 0.19%

1,213 Park Hotels & Resorts Inc 31,514 0.30%

196 Paypal Holdings Inc 16,482 0.16%


406 S&P Global Inc 68,996 0.67%

576 Simon Property Group Inc 96,762 0.94%

1,279 Starbucks Corp 82,367 0.80%

2,628 Twenty-First Century Fox - B 125,566 1.21%

581 Visa Inc-Class A Shares 76,657 0.74%

690 Vornado Realty Trust 42,801 0.41%


696 Wells Fargo & Co 32,072 0.31%

39 Wynn Resorts Ltd 3,857 0.04%

302 Yum China Holdings Inc 9,870 0.10%



Exchange Traded Funds – 14.86% (2017: 52.34%)

3,146 Brookfield Property Partners 50,714 0.49%

1,605 Icahn Enterprises Lp 91,613 0.89%

8,667 Ishares Msci World ETF 683,566 6.61%

10,579 Ishares Msci Acwi ETF 678,749 6.56%

1,421 Royce Value Trust 16,768 0.16%

2,102 Royce Micro-Cap Trust Inc 15,597 0.15%

Total Exchange Traded Funds (2017: USD 3,851,958) 1,537,007 14.86%


121








1The cash balances include overnight deposits transferred through the Depositary’s sweep account in the amount of USD 1,851,023 held with Citibank, USD 1,851,023 held with Standard Chartered and USD 285,315 held with JPM Chase Bank.


122

PORTFOLIO OF INVESTMENTS OF ARX PANGAIA GLOBAL MANAGED FUND



Equities - 24.06% (2017: 26.66%)

Cayman Islands – 1.56%% (2017: 2.41%)

488 Alibaba Group Holding-Sp Adr 66,890 0.25%

555 Baidu Inc 88,023 0.33%

2,092 Jd.Com Inc-Adr 43,786 0.17%

533 Netease Inc-Adr 125,452 0.48%



Curacao – 0.23% (2017: Nil%)

1,719 Schlumberger Ltd 62,022 0.23%

Total Curacao (2017: USD Nil) 62,022 0.23%

France – 1.82% (2017: 1.43%)

709 Safran Sa 85,426 0.32%

3,620 Sanofi 313,096 1.19%

1,559 Total Sa 82,301 0.31%

Total France (2017: USD 379,782) 480,823 1.82%

Germany – 0.38% (2017: 0.69%)

1,250 Bayerische Motoren Werke 101,026 0.38%

Total Germany (2017: USD 182,139) 101,026 0.38%

Ireland – 0.68% (2017: 0.51%)

1,986 Medtronic Plc 180,647 0.68%

Total Ireland (2017: USD 136,468) 180,647 0.68%

Japan – 0.57% (2017: Nil %)

5,700 Honda Motor Co Ltd 150,377 0.57%

Total Japan (2017: USD Nil) 150,377 0.57%%

Netherlands – 1.21% (2017: 1.34%)

1,430 Airbus Se 137,250 0.52%

2,047 Heineken Nv 180,650 0.69%



123

PORTFOLIO OF INVESTMENTS OF ARX PANGAIA GLOBAL MANAGED FUND (CONTINUED)


Financial assets at fair value through profit or loss (continued) Equities - 24.06% (2017: 26.66%) (continued)

South Africa – 1.33% (2017: Nil%)

8,818 Naspers Ltd-N Shs Spon Adr 349,678 1.33%

Total South Africa (2017: USD Nil) 349,678 1.33%

South Korea – 0.26% (2017: Nil%)

78 Samsung Electr-Gdr Reg S 67,626 0.26%

Total South Korea (2017: USD Nil) 67,626 0.26%

Switzerland – 2.85% (2017: 3.00%)

20,835 Credit Suisse Group Ag-R 228,259 0.87%


14,297 Ubs Group Ag-Reg 177,443 0.67%


United Kingdom – 3.17% (2017: 2.32%)


7,313 Derwent London Plc 265,724 1.01%

4,996 Imperial Brands Plc 151,246 0.57%

996 Reckitt Benckiser Group 76,275 0.29%

3,033 Royal Dutch Shell Plc-A 88,950 0.34%

Total United Kingdom (2017: USD 614,784) 835,005 3.17%

United States – 10.00% (2017: 14.95%)



1,654 American Express Co 157,659 0.60%

4,534 American International Group 178,685 0.68%

2,751 Apache Corp 72,214 0.27%

416 Apple Inc 65,620 0.25%



5,867 Citigroup Inc 305,436 1.16%


774 Fedex Corp 124,869 0.47%

1,002 Microsoft Corp 101,773 0.39%


124



Financial assets at fair value through profit or loss (continued) Equities - 24.06% (2017: 26.66%) (continued) United States – 10.00% (2017: 14.95%) (continued)

6,903 Oracle Corp 311,670 1.18%

3,064 Qualcomm Inc 174,372 0.66%

3,650 Twenty-First Century Fox-A 175,638 0.67%

459 Union Pacific Corp 63,447 0.24%



Exchange Traded Funds – 7.73% (2017: 6.13%)

5,546 iShares JP Morgan Emerging Market Bond Fund 576,285 2.19%

12,045 Spdr Gold Trust 1,460,456 5.54%

Total Exchange Traded Funds (2017: USD 1,625,572) 2,036,741 7.73%


41,389 Orbis Optimal USD Fund 3,234,509 12.27%

120,449 PIMCO Low Average Duration Fund 1,845,279 7.00%

97,958 Coronation Global Emerging Market Fund 974,577 3.70%

15,498 Comgest Growth Plc 569,396 2.16%

1,588 Adelphi European Select Equity Fund 300,792 1.14%

15,073 Contrarius Global Equity Fund Ltd 612,264 2.32%

24,315 Orbis SICAV - Japan Equity Fund 1,097,449 4.16%

38,836 Orbis SICAV - Emerging Markets Equity Fund

860,998 3.26%

4,101 Orbis SICAV - Global Equity Fund 810,920 3.07%



125


as at 31 December 2018 Nominal Security Coupon Maturity Fair Value % of USD Net Assets


Corporate Debt – 1.71% (2017: 1.69%)

United States – 1.71% (2017: 1.69%)

455,000 Apple Inc 1.1% 08/02/19 1.100% 02/08/2019 450,809 1.71%

Total United States (2017: USD 448,757) 450,809 1.71%

Total Corporate Debt (2017: USD 448,757) 450,809 1.71% Government Debt – 3.44 % (2017: 7.69%)

United States – 3.44% (2017: 7.69%)

909,700 Us Treasury Note 1% 03/15/19 1.000% 15/03/2019 907,177 3.44%

Total United States (2017: USD 2,037,353) 907,177 3.44%

Total Government Debt (2017: USD 2,037,353) 907,177 3.44% Total financial assets at fair value through profit or loss 20,046,300 76.02%


Other net assets and liabilities 2,215,892 8.40%


1The cash balances include overnight deposits transferred through the Depositary’s sweep account in the amount of USD 1,668,416 held with Citibank, CHF 86,721 held with Credit Suisse, EUR 768,924 and GBP 944,754 held with HSBC and HKD 8,828 held with Brown Brothers Harriman.


126

PORTFOLIO OF INVESTMENTS OF EXCALIBUR GLOBAL MANAGED FUND




176,022 Orbis Optimal SA Fund 2,606,879 6.19%

338,141 Baillie Gifford UK & Balanced Funds ICVC Managed 4,215,268 10.01%

99,493 Baillie Gifford Global Discovery Fund 1,657,426 3.94%

14,616 PineBridge Global Dynamic Asset Allocation Fund 4,602,352 10.93%

149,147 Vanguard Investment Series Plc – Global Stock 3,666,219 8.70%

11,314 Legg Mason Brandywine Global Opportunistic Fixed Income 1,314,673 3.12%

180,495 Dodge & Cox Worldwide Global Stock Fund 3,445,645 8.18%

57,521 iShares Developed Real Estate Index Fund 641,356 1.52%

1,324,535 BNY Mellon Long Term Global Equity Fund 2,071,175 4.92%

2,673,372 BNY Mellon Global Real Return USD Fund 3,089,349 7.34%

336,871 Coronation Global Strategic USD Income Fund 3,675,063 8.73%

10,454 Legg Mason Western Asset Macro Opportunities Bond Fund 1,341,473 3.18%

14,844 Lazard Global Active Funds Plc Emerging Market 2,150,645 5.11%

2,723,316 Nedgroup Core Global Fund 2,903,872 6.89%

22,224 RWC Funds RWC Global Horizon Fund 2,854,316 6.78%

122,378 Fidelity Funds – World Fund 1,436,717 3.41% Total Collective Investment Schemes (2017: USD 35,436,351) 41,672,428 98.95%






127

PORTFOLIO OF INVESTMENTS OF NORTHSTAR GLOBAL FLEXIBLE FUND

as at 31 December 2018 Nominal Security Fair Value % of

USD Net Assets


Equities – 63.30 % (2017: 68.96%)

Cayman Islands – 2.02% (2017: 0.59%)

3,039 Alibaba Group Holding-Sp Adr 416,556 1.35%



Channel Islands – Nil% (2017: 2.00%)

Total Channel Islands USD Nil (2017: USD 470,951)

France – 3.66% (2017: 2.27%)

3,834 Lvmh Moet Hennessy Louis 1,131,649 3.66%

Total France (2017: USD 534,031) 1,131,649 3.66%

Ireland – 2.67% (2017: 2.27%)

9,103 Medtronic Plc 828,009 2.67%

Total Ireland (2017: USD 535,776) 828,009 2.67%

Jersey Channel Islands – 1.45% (2017: Nil%)

41,515 Wpp Plc 447,627 1.45%

Total Jersey Channel Islands (2017: USD Nil) 447,627 1.45%

South Africa – 1.46% (2017: 1.76%)

2,245 Naspers Ltd-N Shs 451,383 1.46%

Total South Africa (2017: USD 414,427) 451,383 1.46%

Switzerland – 1.37% (2017: 4.16%)



United Kingdom – 9.25% (2017: 11.56%)


12,967 Reckitt Benckiser Group 993,033 3.21%

20,435 Unilever Plc 1,069,279 3.45%



128

PORTFOLIO OF INVESTMENTS OF NORTHSTAR GLOBAL FLEXIBLE FUND (CONTINUED)


Financial assets at fair value through profit or loss (continued) Equities – 63.30% (2017: 68.96%) (continued) United States – 41.42% (2017: 44.35%) (continued)

1,025 Alphabet Inc-Cl C 1,061,500 3.43%


3,191 Boeing Co/The 1,029,097 3.32%

6,362 Cognizant Tech Solutions-A 403,860 1.30%

11,244 Danaher Corp 1,159,481 3.74%

8,312 Delta Air Lines Inc 414,769 1.34%

5,873 Dunkin’ Brands Group Inc 376,577 1.22%

4,479 Johnson & Johnson 578,014 1.87%

7,950 Microsoft Corp 807,481 2.61%

6,971 Moody’S Corp 976,219 3.15%

22,700 Oracle Corp 1,024,905 3.31%


1,181 S&P Global Inc 200,699 0.65%

3,536 Thermo Fisher Scientific Inc 791,321 2.56%

2,969 Union Pacific Corp 410,405 1.33%

9,208 Visa Inc-Class A Shares 1,214,904 3.92%

9,418 Walt Disney Co/The 1,032,684 3.34%


Total Equities (2017: 16,257,642) 19,595,667 63.30%

Collective Investment Schemes – 36.28 % (2017: 18.65%)

4,960,937 Institutional Cash Series PLC 4,960,937 16.03%

68,880 SPDR Bloomberg Barclays Global Aggrgate Bond 1,995,453 6.45%

37,280 The Blackstone Group LP 1,111,317 3.59%

37,859 Ishares 1-3 Year Treasury Bond ETF 3,161,984 10.21%

Total Collective Investment Schemes (2017: 4,396,958) 11,229,691 36.28%


129

PORTFOLIO OF INVESTMENTS OF NORTHSTAR GLOBAL FLEXIBLE FUND (CONTINUED)








130

PORTFOLIO OF INVESTMENTS OF ABSA GLOBAL BEST BLEND FUND



Collective Investment Schemes – 96.58%

86,292 Conventum Lyrical Fund 17,040,962 9.25%

2,023,850 Investec Global Strategy Fund - Global Strategic Equity Fund I 51,547,471 27.98%

25,602 Mundane World Leaders Fund 14,100,192 7.65%

1,828,590 Schroder International Selection Fund QEP Global Core 51,868,135 28.16%

96,432 Schroder International Selection Fund US Dollar Liquidity C 10,695,145 5.81%

160,127 Schroder International Selection Fund Global Multi-Asset 19,426,571 10.54%

106,845 Schroder International Selection Fund Global Recovery C 13,241,805 7.19%







131

PORTFOLIO OF INVESTMENTS OF ABSA GLOBAL ACCESS FUND



Collective Investment Schemes – 98.24%

80,323 Schroder International Selection Fund Global Equity Alpha 15,847,837 24.69%

643,973 Schroder International Selection Fund QEP Global Core 18,266,371 28.46%

30,066 Schroder International Selection Fund US Dollar Liquidity 3,334,524 5.20%

54,679 Schroder International Selection Fund Global Multi-Asset Income 6,633,688 10.34%

152,991 Schroder International Selection Fund Global Recovery 18,960,896 29.55%







132

NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS for the year ended 31 December 2018

1 General – The Company

Sanlam Global Funds plc (the “Company”) is an investment company with variable capital and was incorporated on 11 June 1999 with registration number 307841 under the laws of Ireland and is “an existing investment company” within the meaning of Section 1394 of the Companies Act 2014 and is an investment company to which Part 24 applies. The Company is domiciled in Ireland.

The Company is authorised by the Central Bank of Ireland as a Retail Investor Alternative Investment Fund (“RIAIF”) in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). In order to comply with the requirements of AIFMD, the Manager is the Alternative Investment Fund Manager (“AIFM”). At 31 December 2018, the Company comprised fourteen separate active investment sub-funds (“Fund(s)”). The Articles of Association of the Company provides segregated liability between the various Funds. A list of Funds active during the year and their status at the year end is set out below: Name Status at 31 December 2018 Sanlam Global Balanced Fund Active

Sanlam Global Equity Fund Active

Sanlam Global Liquidity Fund Active

Sanlam BIFM World Equity Fund Active

Sanlam BIFM Global Fixed Income Fund Active

Mpile Global Equity Fund Closed on 25 October 2018 Sanlam Private Wealth Global Balanced Fund Active Counterpoint Global Equity Fund Active Independent Global Flexible Fund Active Counterpoint Global Owner Managed Flexible Fund Active ARX Pangaia Global Managed Fund Active Excalibur Global Managed Fund Active Northstar Global Flexible Fund Active Absa Global Best Blend Fund Active – launched on 19 July 2018 Absa Global Access Fund Active – launched on 26 July 2018 Effective from 13 February 2019, Counterpoint Global Balance Fund changed its name to Counteproint Global Owner Managed Flexible Fund. Visio Global Healthcare Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company in 2016. As at 31 December 2018, this authorised sub-fund of the Company has not yet been launched. Prices There is a single price for buying, selling and switching Share classes in each Fund. This is represented by the Net Asset Value per Share class of the relevant Fund. In the case of subscriptions, a preliminary charge of up to 5% may be added to the Net Asset Value per Share class of all Funds. A conversion fee of up to 2% may be charged on applications to convert Shares of any class to Shares of another class. A repurchase fee of up to 3% may be deducted from the Net Asset Value per Share class of all Funds. Details of the charges applicable to each Fund are detailed in the Fund supplements. Dealing The Dealing Day is, except where otherwise clarified in the Prospectus or Fund supplements, any day other than Saturday or Sunday on which banks are open for business in Dublin. The valuation point is, except where otherwise clarified in the Prospectus or sub-fund supplement, the close of business in each relevant market on the business day immediately preceding a dealing day.


133

NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2018

1 General – The Company (continued)

Shares Applications for shares must be sent so as to arrive at the Registrar and Transfer Agent's office, no later than 4.00pm (Irish time) on the business day preceding the relevant dealing day, or such later time as the Directors may from time to time permit. Applications which are received late, or funds which are not cleared by the relevant time, will be held over and invested at the next dealing day. Requests for repurchases should be sent so as to arrive at the Registrar and Transfer Agent's office by post, facsimile or telex by no later than 4.00pm on the business day preceding the relevant dealing day.

As at 31 December 2018, the below Share classes were admitted to the official list of the Global Exchange Market of Euronext Dublin.

Fund Share Class Listing date

Sanlam Global Balanced Fund A 21 May 2001

B 5 August 1999

C 5 August 1999

Sanlam Global Equity Fund A 17 August 1999

B 21 May 2001

C 21 May 2001

Sanlam Global Liquidity Fund A 17 August 2004

B 17 August 2004

C 17 August 2004

Sanlam BIFM World Equity Fund A 4 November 2013

B 4 November 2013

Sanlam BIFM Global Fixed Income Fund A 4 November 2013

B 4 November 2013

C 29 September 2014

Sanlam Private Wealth Global Balanced Fund A 12 June 2015

B 19 March 2015

C 13 November 2017

Excalibur Global Managed Fund B 20 January 2017

Absa Global Best Blend Fund C 19 July 2018

Absa Global Access Fund C 26 July 2018 *At 31 December 2017, the Class B shares of Counterpoint Global Equity Fund, the Class B shares of Counterpoint Global Owner

Managed Flexible Fund, the Class A, B, C and D shares of Independent Global Flexible Fund, the Class A, B and D shares of ARX Pangaia

Global Managed Fund and the Class A, B, C, D and E shares of Northstar Global Flexible Fund which are in issue are not listed on Euronext Dublin, or any Stock Exchange.


134


1 General – The Company (continued)

Shares (continued)

Minimum Subscription The minimum initial investment for each of the Funds is as follows:

Sanlam Global

Equity Fund Sanlam Global Balanced Fund


Sanlam BIFM World Equity

Fund

Class A Shares USD 1,000 USD 1,000 USD 1,000 USD 1,000

Class B Shares USD 350,000 USD 350,000 USD 1,000,000 USD 1,000,000

Class C Shares USD 400,000 USD 1,500,000 USD 5,000,000 USD 5,000,000

Class D Shares N/A USD 1,500,000 N/A USD 50,000,000




Balanced Fund

Counterpoint Global Equity

Fund

Class A Shares USD 1,000 USD 1,000 USD 10,000 USD 30,000

Class B Shares USD 1,000,000 USD 1,000,000 USD 100,000 USD 10,000

Class C Shares USD 5,000,000 USD 10,000,000 USD 10,000 USD 1,000,000

Class D Shares USD 50,000,000 N/A N/A N/A

Class G Shares USD 3,000,000 N/A N/A N/A

Independent Global Flexible

Fund


Managed Flexible Fund

ARX Pangaia Global


Managed Fund

Class A Shares USD 1,000 USD 30,000 USD 1,000,000 N/A

Class B Shares USD 300,000 USD 10,000 USD 500,000 USD 10,500

Class C Shares USD 600,000 USD 1,000,000 USD 100,000 N/A

Class D Shares N/A N/A USD 2,500 N/A

Class F Shares N/A N/A USD 1,000 N/A

Class Z Shares N/A N/A N/A USD 100,500

Northstar Global

Flexible Fund Absa Global

Best Blend Fund Absa Global

Access Fund

Class A Shares USD 1,000 N/A N/A

Class B Shares USD 300,000 N/A N/A

Class C Shares USD 600,000 USD 100,000 USD 100,000

Class D Shares None N/A N/A

The minimum additional investment amount for the Class A shares of Sanlam Global Equity Fund and Sanlam Global Balanced Fund is USD 300. There is no minimum additional investment amount required for any of the other share classes of the Funds.


135


2 Significant accounting policies

(a) Basis of preparation

The financial statements have been prepared in accordance with Irish Statute comprising the Companies Act 2014 under the historical cost convention as modified by the revaluation of financial assets and financial liabilities measured at fair value through profit or loss. The financial statements are prepared in US Dollars (“USD”) and on a going concern basis. These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and interpretations adopted by the International Accounting Standard Board (“IASB”). The principle accounting policies adopted in the preparation of the financial statements are set out below/overleaf. All references to net assets throughout this document refer to net assets attributable to holders of redeemable participating shares, unless otherwise stated.

The Statement of Financial Position presents assets and liabilities in decreasing order of liquidity and

does not distinguish between current and non-current items.

(b) Significant accounting judgments and estimates

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the amounts recognised in the financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. Going concern The Company’s management has made an assessment of the Company’s ability to continue as a going concern and is satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. Fair value of financial instruments When the fair value of financial assets and financial liabilities recorded in the Statement of Financial Position cannot be determined based on quoted prices in an active market, they are determined using an appropriate valuation technique. The valuation techniques employed by the Company and the judgements, estimates and assumptions associated with them are disclosed in Note 2(d).

Investment entity status The Company’s management has determined that the Company has all of the typical characteristics of an investment entity as set out in IFRS 10.

(c) Income recognition Interest income and expense are recognised in the Statement of Comprehensive Income using the using the effective interest rate method.

Dividends are recognised as income on the dates the securities are first quoted “ex dividend” to the extent that information thereon is reasonably available to the relevant Fund. Bank deposit interest and other income are accounted for on an accruals basis. Income which is subject to a deduction of tax at source is shown gross of such withholding tax. Withholding tax recoverable is accounted for on a receipts basis. Franked investment income (which comprises most of the UK source dividend income) is shown net of the notional tax credit.


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2 Significant accounting policies (continued)

(d) Financial instruments

(i) Classification In accordance with IFRS 9, Financial Instruments: Classification and Measurement (“IFRS 9”), the Funds classify all of their financial assets and financial liabilities at initial recognition into the categories of financial assets and financial liabilities discussed below. In applying that classification, a financial asset or financial liability is considered to be held for trading if: (a) It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or (b) On initial recognition, it is part of a portfolio of identified financial instruments that are managed together and for which, there is evidence of a recent actual pattern of short-term profit-taking; or (c) It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) Financial assets The Funds classify their financial assets as subsequently measured at amortised cost or measured at fair value through profit or loss on the basis of both:

• The entity’s business model for managing the financial asset;

• The contractual cash flow characteristics of the financial asset. Financial assets measured at amortised cost A debt instrument is measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Funds include in this category short-term non-financing receivables including restricted broker balances, accrued income and other receivables. Financial assets measured at fair value through profit or loss A financial asset is measured at fair value through profit or loss if: (a) Its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on the principal amount outstanding; or (b) It is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell; or (c) At initial recognition, it is irrevocably designated as measured at fair value through profit or loss when doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. The Funds’ investment portfolios are managed and performance is evaluated on a fair value basis. The Funds are primarily focused on fair value information and uses that information to assess the asset’s performance and to make decisions. The Funds have not taken the option to irrevocably designate any equity securities as fair value through other comprehensive income. The contractual cash flows of the Funds’ debt securities are solely principal and interest, however, these securities are neither held for the purpose of collecting contractual cash flows nor held both for collecting contractual cash flows and for sale. The collection of contractual cash flows is only incidental to achieving the Funds’ business models’ objectives. Consequently, all investments are measured at fair value through profit or loss.


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(d) Financial instruments (continued) (i) Classification (continued) Financial liabilities Financial liabilities measured at fair value through profit or loss A financial liability is measured at fair value through profit or loss if it meets the definition of held for trading. The Funds may make short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are held for trading and are consequently classified as financial liabilities at fair value through profit or loss. Derivative contracts that have a negative fair value are presented as liabilities at fair value through profit or loss. Financial liabilities measured at amortised cost This category includes all financial liabilities, other than those measured at fair value through profit or loss. The Funds include in this category short-term payables. The Funds’ policies require the Investment Manager and the Board of Directors to evaluate the information about these financial assets and liabilities on a fair value basis together with other related financial information. (ii) Recognition The Company recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument. A regular way purchase of financial assets is recognised using trade date accounting. From this date any gains or losses arising from changes in fair value of the financial assets or liabilities are recorded in the Statement of Comprehensive Income. (iii) Measurement and fair value measurement principles Initial measurement Financial assets and financial liabilities at fair value through profit or loss are recorded in the statement of financial position at fair value. All transaction costs for such instruments are recognised directly in “net gains/(losses) on financial assets and liabilities measured at fair value through profit or loss” in the statement of comprehensive income. Financial assets and liabilities (other than those classified as at fair value through profit or loss) are measured initially at their fair value plus any directly attributable incremental costs of acquisition or issue.


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(d) Financial instruments (continued)

(iii) Measurement and fair value measurement principles (continued) Subsequent measurement Subsequent to initial recognition, all financial assets and liabilities at fair value through profit or loss are re-measured at fair value. Subsequent changes in the fair value of those financial instruments are recorded in net gains/(losses) on financial assets and liabilities measured at fair value through profit or loss in the Statement of Comprehensive Income. Interest and dividends earned or paid on these instruments are recorded separately in interest revenue or expense and dividend revenue or expense in the statement of comprehensive income. Debt instruments, other than those classified as at fair value through profit or loss, are measured at amortised cost using the effective interest method less any allowance for impairment. Gains and losses are recognised in profit or loss when the debt instruments are derecognised or impaired, as well as through the amortisation process. Financial liabilities, other than those classified as at fair value through profit or loss, are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, as well as through the amortisation process. Fair value measurement principles

In accordance with IFRS 13, Fair Value Measurement (“IFRS 13”), the fair value of financial assets and financial liabilities traded in active markets (such as publicly traded derivatives, trading securities and exchange-traded funds) are based on the last reported sales price at the close of trading on the reporting date, if the last reported sales price falls within the bid-ask spread. However, if the last reported sales price falls outside the bid-ask spread, Management will determine the point within the bid-ask spread that is most representative of fair value. Assets not listed, or traded on any stock exchange or over-the-counter (“OTC”) market, are valued at their fair value as determined with care and in good faith by the AIFM in consultation with the relevant Investment Manager.

Collective investment schemes – investments in open-ended collective investment schemes are valued at the latest available net asset value. Closed ended schemes which are traded as liquid schemes are valued at bid price at the year-end or if unavailable, a mid-quotation from a broker or, if unavailable or unrepresentative, the latest available net asset value as deemed relevant to the collective investment scheme.

Derivative instruments – exchange-traded derivative instruments are valued at the settlement price for such instruments as determined on the specific market. If such a price is not available the fair value shall be the probable realisation value estimated by the the AIFM, consulting where appropriate with Investment Manager.

OTC derivative instruments are valued at the settlement price as provided by the counterparty and verified by the AIFM on a monthly basis, or by a competent person appointed by the AIFM and approved for such a purpose by the Depositary. Such competent person may be the relevant Investment Manager provided that he is independent of the counterparty. Forward foreign exchange contracts are valued with reference to the prevailing market maker quotations, namely the price at which a new forward contract of the same maturity could be undertaken or, if unavailable, at the settlement price provided by the counterparty.


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(d) Financial instruments (continued) (iv) Derecognition A financial asset (or, where applicable, a part of a financial asset or a part of a group of similar financial assets) is derecognised where the rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement and the Company has: (a) Transferred substantially all of the risks and rewards of the asset; or (b) Neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the Company has transferred its right to receive cash flows from an asset (or has entered into a pass-through arrangement), and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.

(v) Offsetting financial instruments Financial assets and liabilities are offset and the net amounts reported in the statement of financial position, when a current legally enforceable right to offset the recognised amounts exists and there is intent to settle on a net basis or to settle the asset and the liability simultaneously. (vi) Impairment Financial assets that are measured at amortised cost are reviewed at each reporting date. The Company applies the general approach in accordance with IFRS 9. The Company measures the loss allowance at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Company shall measure the loss allowance at an amount equal to 12-month expected credit losses. The Company’s approach to ECLs reflects a probability-weighted outcome, the time value of money and reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. Significant financial difficulties of the counterparty, probability that the counterparty will enter bankruptcy or financial reorganisation, and default in payments are all considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by management as any contractual payment which is more than 45 days past due or if the credit rating of the counterparty deteriorates to below investment grade. Any contractual payment which is more than 90 days past due is considered credit impaired.


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(e) Foreign currency translation

Functional and presentation currency Items included in each Fund’s financial statements are measured using the currency of the primary economic environment in which it operates (‘the functional currency’). The currency of a Fund's return, the capital of the Fund, how performance of the Fund is evaluated and how liquidity of the Fund is managed are all factors that determine the primary economic environment and functional currency of each Fund. US Dollar (“USD”) is the functional currency of all Funds of the Company at 31 December 2018.

The functional currency of each Fund reflects the primary denomination of the securities and derivatives in which it invests. The Company has adopted USD as its presentation currency. Where necessary, each Fund’s financial position is translated from its functional currency to the presentation currency, as follows:

▪ assets and liabilities, including net assets attributable to holders of redeemable participating shares,

are translated at the closing rate at each reporting date. Exchange differences arising between the rate of translation of subscriptions and the holders of redeemable participating shares; and

▪ income and expenses for each Statement of Comprehensive Income are translated at average exchange rates.

Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. Proceeds from subscriptions and amounts paid on redemption of redeemable participating shares are translated at monthly average rates, which approximate the rates prevailing at the dates of the transactions. Translation differences on non-monetary items, such as equities, held at fair value through profit and loss are reported as part of their fair value gain or loss. (f) Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts are included within liabilities.

The Company has adopted the Fund Asset Model in compliance with the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers (“the Investor Money Regulations”). Accordingly, the Company has established subscription, redemption and dividend cash accounts, at umbrella level, which are held in the name of the Company (the “Umbrella Cash Accounts”). All subscriptions, redemptions or dividends payable to or from the relevant Fund will be channelled and managed through such Umbrella Cash Accounts and no such accounts operate at the level of each individual Fund. However the Company ensures that the amounts within an Umbrella Cash Account, whether positive or negative, can be attributed to the relevant Fund in order to comply with the requirement that the assets and liabilities of each Fund are kept separate from all other Funds and that separate books and records are maintained for each Fund in which all transactions relevant to a Fund are recorded. At 31 December 2018 an amount of USD 36,249 (2017: USD 203,671) was held in the Umbrella Cash Accounts.


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(g) Distribution policy The Directors have no current intention to make distributions from any Fund. All such profits shall be retained in the relevant Fund.

(h) Consolidation The Company has determined that it is an investment entity in accordance with IFRS 10, Consolidated Financial Statements and Investment Entities Amendments to IFRS 10, IFRS 12 and IAS 27. As an investment entity, the Company is required to account for its investment in subsidiaries, if any, at fair value through profit or loss. The Company does not present consolidated financial statements since it is required to measure all of its subsidiaries at fair value through profit or loss.

(i) Adoption of new and amended accounting standards and interpretations

Changes in accounting policy

Nature of change in accounting policy In the financial statements of the Company for the year ended 31 December 2017, income equalisation was shown as a component of finance costs in the statement of comprehensive income of the Company together with the distributions to shareholders and formed part of the “change in net assets attributable to holders of redeemable participating shares”. Income equalisation in relation to subscriptions and redemptions of shares has been reclassified as a component of the issuance and cancellation of redeemable participating shares in the statement of change in net assets. Reasons for change in accounting policy Income equalisation is an allocation methodology to ensure that the level of income accrued within a Fund and attributable to each share is not affected by the issue or redemption of shares during a distribution period. The proportion of subscriptions and redemptions during the distribution period that relates to income earned since the last reporting period is allocated to income equalisation. In previous periods the Company’s approach to the classification of income equalisation was that it related to shareholder distributions and was classified in a similar manner. Following a review of this assessment it was determined that classifying income equalisation as components of the issuance and redemption of share capital in capital transactions within the statement of changes in net assets attributable to holders of redeemable participating shares more accurately reflects the economic substance of these transactions, in that income equalisation does not represent a separate component of the subscription and redemptions of shares but forms part of same. Impact of change in accounting policy The change in accounting policy has been applied retrospectively and the comparative results have been amended to reflect the change in classification. The application of this change in policy has resulted in a reclassification which decreased the profit before tax for the year ended 31 December 2017 by USD 1,917,195 and increased the value of capital transactions by the same amounts. The change had no impact on the Statement of Financial Position or the NAV of the Funds or the Company.


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2 Significant accounting policies (continued) (i) Adoption of new and amended accounting standards and interpretations (continued) Standards and amendments to existing standards effective 1 January 2018 IFRS 9 IFRS 9 became effective for annual periods beginning on or after 1 January 2018. The Company adopted IFRS 9 on its effective date of 1 January 2018.

IFRS 9 replaces IAS 39 and introduces new requirements for classification and measurement, impairment and hedge accounting. IFRS 9 is not applicable to items that have already been derecognised at 1 January 2018, the date of initial application.

(i) Classification and measurement The Company has assessed the classification of financial instruments as at the date of initial application and has applied such classification retrospectively. Classification and measurement of debt assets is driven by the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. A debt instrument is measured at amortised cost if the objective of the business model is to hold the financial asset for the collection of the contractual cash flows and the contractual cash flows under the instrument solely represent payments of principal and interest (SPPI). A debt instrument is measured at fair value through other comprehensive income if the objective of the business model is to hold the financial asset both to collect contractual cash flows from SPPI and to sell. All other debt instruments must be recognised at fair value through profit or loss. An entity may however, at initial recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency. Derivative and equity instruments are measured at fair value through profit or loss unless, for equity instruments not held for trading, an irrevocable option is taken to measure at fair value through other comprehensive income. The classification of financial liabilities under IFRS 9 remains broadly the same as under IAS 39. The main impact on measurement from the classification of liabilities under IFRS 9 relates to the element of gains or losses for financial liabilities designated as at fair value through profit or loss attributable to changes in credit risk. IFRS 9 requires that such element be recognised in other comprehensive income, unless this treatment creates or enlarges an accounting mismatch in profit or loss, in which case, all gains and losses on that liability (including the effects of changes in credit risk) should be presented in profit or loss. The Company has not designated any financial liabilities at fair value through profit or loss. Therefore, this requirement has not had an impact on the Company.


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(i) Adoption of new and amended accounting standards and interpretations (continued) Standards and amendments to existing standards effective 1 January 2018 (continued)

IFRS 9 (continued)

(ii) Impairment IFRS 9 also introduces a new expected credit loss (“ECL”) impairment model. IFRS 9 requires the Company to record ECLs on all financial assets classified at amortised cost, either on a twelve month or lifetime basis. Given the limited exposure of the Company to credit risk, this amendment has not had a material impact on the financial statements. The Company only holds receivables that have maturities of less than twelve months at amortised cost.

(iii) Hedge accounting The Company has not applied hedge accounting under IAS 39 nor will it apply hedge accounting under IFRS 9.

Impact of adoption of IFRS 9 The following table shows the original measurement categories in accordance with IAS 39 and the new measurements categories under IFRS 9 for the Company’s financial assets and liabilities as at 1 January 2018:

Financial assets

1 January 2018 IAS 39 classification IFRS 9 classification

Cash and cash equivalents Loans and receivables Financial assets measured at amortised cost

Margin accounts Loans and receivables Financial assets measured at amortised cost

Accrued income Loans and receivables Financial assets measured at amortised cost

Amounts receivable on

sale of securities Loans and receivables Financial assets measured at amortised cost

Amounts receivable on

issue of shares Loans and receivables Financial assets measured at amortised cost

Other debtors Loans and receivables Financial assets measured at amortised cost

Transferable securities Financial assets held for trading Financial assets measured at fair value

through profit or loss

Collective investment schemes Financial assets held for trading Financial assets measured at fair value


Exchange traded funds Financial assets held for trading Financial assets measured at fair value


Derivative financial assets Financial assets held for trading Financial assets measured at fair value


Financial liabilities

1 January 2018 IAS 39 classification IFRS 9 classification

Bank overdraft Other financial liabilities Financial liabilities measured at amortised cost

Accrued expenses Other financial liabilities Financial liabilities measured at amortised cost

Administration fees accrued Other financial liabilities Financial liabilities measured at amortised cost

Amounts payable on

purchases of securities Other financial liabilities Financial liabilities measured at amortised cost

Amounts payable on

repurchases of shares Other financial liabilities Financial liabilities measured at amortised cost

Net assets attributable to holders

of redeemable participating shares

Other financial liabilities Financial liabilities measured at amortised cost


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(i) Adoption of new and amended accounting standards and interpretations (continued) Standards and amendments to existing standards effective 1 January 2018 (continued)

IFRS 9 (continued)

Impact of adoption of IFRS 9 (continued) In line with the characteristics of the Company’s financial instruments as well as its approach to their management, the Company neither revoked nor made any new designations on the date of initial application. IFRS 9 has not resulted in changes in the carrying amount of the Company’s financial instruments due to changes in measurement categories. All financial assets that were classified as fair value through profit or loss under IAS 39 are still classified as fair value through profit or loss under IFRS 9.

All financial assets that were classified as loans and receivables and measured at amortised cost continue to be. In addition, the application of the ECL model under IFRS 9 has had no material difference on the carrying amounts of the Company’s amortised cost financial assets. The Company has applied the general approach to ECL model applicable to its financial assets measured at amortised cost. Following assessment, the Company has not recorded an expected credit loss allowance against the Company’s other receivables. The carrying amounts of amortised cost instruments continued to approximate these instruments’ fair values on the date of transition after transitioning to IFRS 9. IFRS 15, Revenue from Contracts with Customer (“IFRS 15”) The Company adopted IFRS 15 on its effective date of 1 January 2018. IFRS 15 replaces IAS 18 Revenue and establishes a five-step model to account for revenue arising from contracts with customers. In addition, guidance on interest and dividend income have been moved from IAS 18 to IFRS 9 without significant changes to the requirements. Therefore, there was no impact of adopting IFRS 15 for the Company. There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 January 2018 that have a material effect on the financial statements of the Company.

(j) Standards, interpretations and amendments to published standards that are not yet effective The following new standards, amendments to standards and interpretations have been issued to date and are not yet effective for these financial statements of the Company for the year ended 31 December 2018, and have not been applied nor early adopted in preparing these financial statements:

Standard: Narrative: Effective date: IFRS 16 Leases 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments 1 January 2019

IFRS 10/IAS 28 Sale or contribution of asset between an investor and its Associate or Joint Venture (Amendment) Not specified

*Annual periods beginning on or after.


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(j) Standards, interpretations and amendments to published standards that are not yet effective (continued)

IAS 8, Accounting Polices, Change in Accounting Estimates and Errors (“IAS 8”), states that financial statements disclose either:

(i) a discussion of the impact that initial application of the IFRS is expected to have on the entity’s financial statements; or

(ii) if that impact is not known or reasonably estimable, a statement to that effect.

The Directors anticipate that the adoption of new standards, interpretations and amendments that were in issue at the date of authorisation of these financial statements, but not yet effective, will have no material impact on the financial statements in the year of initial application.

3 Taxation The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. It is not chargeable to Irish tax on its income or gains. Tax may arise on the happening of a chargeable event. A chargeable event includes any distribution payments to shareholders or any other encashment, redemption or transfer of shares. No tax will arise on the Company in respect of chargeable events in respect of:

• a shareholder who is not an Irish resident and not ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided the necessary signed statutory declarations are held by the Company; and

• certain exempted Irish resident investors who have provided the Company with the necessary signed statutory declarations.

Following legislative changes in the Finance Act 2006, the holding of shares at the end of a Relevant Period will, in respect of Irish Resident investors, also constitute a chargeable event. To the extent that any tax issues arise on such a chargeable event, such tax will be allowed as a credit against any tax payable on the subsequent encashment, redemption, cancellation of the relevant Shares. Relevant Period is defined as a period of 8 years, beginning with the acquisition of a Share by a shareholder and each subsequent period of 8 years beginning immediately after the preceding Relevant Period. Dividend income, interest and capital gains received by the Company may be subject to non-recoverable withholding tax in the countries of origin.

4 Share Capital

Authorised Share Capital The authorised share capital of the Company is 1,000,000,000,000 shares of no par value.

Subscriber Shares The equity share capital of the Company is USD 7 represented by Subscriber Shares issued for the purposes of incorporation of the Company. These Shares are beneficially owned by the Manager. The Manager is an ultimate subsidiary of Sanlam Limited. The holder or holders of Subscriber Shares are entitled to one vote only in respect of all Subscriber Shares. The Subscriber Shares do not form part of Shareholders’ Funds. They are thus disclosed in the financial statements by way of this note only. In the opinion of the Directors, this disclosure reflects the nature of the Company’s business as an investment fund.


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4 Share Capital (continued)

Redeemable Participating Shares Each Fund may issue one of more classes of Shares and each class of Shares in a Fund may have different charging structures and different minimum initial investment amounts, minimum additional investment amounts and minimum shareholding requirements. Each class of Shares has a distinct fee structure as outlined in Note 12.

The following share classes were in issue as at 31 December 2018:

Fund Class A Class B Class C Class D Class E

Sanlam Global Balanced Fund - -

Sanlam Global Equity Fund - -

Sanlam Global Liquidity Fund - -

Sanlam BIFM World Equity Fund - - -

Sanlam BIFM Global Fixed Income Fund - -

Sanlam Private Wealth Global Balanced Fund - -

Counterpoint Global Equity Fund - - - -

Independent Global Flexible Fund -

Counterpoint Global Owner Managed Flexible Fund - - - -

ARX Pangaia Global Managed Fund - -

Excalibur Global Managed Fund - - - -


Absa Global Best Blend Fund - - - -

Absa Global Access Fund - - - -

The redeemable participating shares are redeemable at the shareholders option and are classified as financial liabilities. They carry voting rights. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the Company’s net asset value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercises its right to put the share back to the Company. The Shares issued by the Company are freely transferable and entitled to participate equally in the profits and dividends of the Company and in its net assets upon liquidation. The Shares, which are of no par value, carry no preferential or pre-emptive rights and are entitled to one vote each at all meetings of the relevant class of Shareholders. All Shares rank pari-passu.

Participating share transactions for the year ended 31 December 2018:


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 4,308,753 1,912,598 81,693,127

Shares issued during the year 96,584 169,288 313,256

Shares redeemed during the year (3,235,934) (1,924,077) (6,899,501)

Closing shares issued 1,169,403 157,809 75,106,882


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Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2018 (continued):


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 754,583 3,061,969 733,691,285

Shares issued during the year 4,631 202,086 99,542,252

Shares redeemed during the year (148,413) (3,002,291) (256,368,271)

Closing shares issued 610,801 261,764 576,865,266


Class D

Shares

Opening shares issued -

Shares issued during the year 22,885,182

Shares redeemed during the year (3,807,814)

Closing shares issued 19,077,368


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 13,966,961 100 100

Shares issued during the year 3,002,521 4,387,730 -

Shares redeemed during the year (3,101,798) (4,387,730) -

Closing shares issued 13,867,684 100 100


Class A

Shares

Class B

Shares

Opening shares issued 250,614,143 1,690,217

Shares issued during the year 3,167,311 1,890

Shares redeemed during the year (67,507,185) (94,293)

Closing shares issued 186,274,268 1,597,814


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 42,772,429 1,967,779 100

Shares issued during the year 1,439,925 4,553 -

Shares redeemed during the year (7,253,666) - -

Closing shares issued 36,958,688 1,972,332 100


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Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 100 100 30,055,202

Shares issued during the year - - -

Shares redeemed during the year (100) (100) (30,055,202)

Closing shares issued - - -


Class A

Shares

Class B

Shares

Class C

Shares


Shares issued during the year 9,372,110 - 3,773,723

Shares redeemed during the year (4,392,325) - (1,224,200)

Closing shares issued 70,364,307 7,346,800 5,546,404


Class B

Shares

Opening shares issued 25,076,890





Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 347,350 305,630 1,277,290

Shares issued during the year 54,433 - 130,534

Shares redeemed during the year (41,368) (89,194) (263,815)


Independent Global Flexible Fund (continued)

Class D

Shares

Opening shares issued 622,642

Shares issued during the year -

Shares redeemed during the year -

Closing shares issued 622,642


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Counterpoint Global Owner Managed Flexible Fund

Class B

Shares



Shares redeemed during the year (887,283)



Class A

Shares

Class B

Shares

Class D

Shares

Opening shares issued 21,815,439 91 1,476,107

Shares issued during the year 4,965,871 879 1,728,287

Shares redeemed during the year (3,633,088) - (259,386)

Closing shares issued 23,148,222 970 2,945,008


Class B

Shares






Class A

Shares

Class B

Shares

Class C

Shares


Shares issued during the year 2,632,078 3,286,342 908,246

Shares redeemed during the year (226,473) (354,277) -



Class D

Shares

Class E

Shares


Shares issued during the year 293,559 1,523,295

Shares redeemed during the year (3,266) (121,734)



150





Class C

Shares


Shares issued during the period 206,333,342

Shares redeemed during the period -



Class C

Shares



Shares redeemed during the period -


Participating share transactions for the year ended 31 December 2017:


Class A

Shares


Shares issued during the year 1,498


Closing shares issued -


Class A

Shares

Class B

Shares

Class C

Shares


Shares issued during the year 425,334 154,896 1,201,403

Shares redeemed during the year (781,987) (319,522) (7,451,262)



151





Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 816,466 3,617,121 854,053,888

Shares issued during the year - 31,229 27,129,566

Shares redeemed during the year (61,883) (586,381) (147,492,169)

Closing shares issued 754,583 3,061,969 733,691,285


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 8,681,148 100 100

Shares issued during the year 7,994,150 - -

Shares redeemed during the year (2,708,337) - -

Closing shares issued 13,966,961 100 100


Class A

Shares

Class B

Shares

Opening shares issued 873,523 436,230

Shares issued during the year 21,050 70,754

Shares redeemed during the year (894,573) (506,984)

Closing shares issued - -


Class A

Shares

Class B

Shares


Shares issued during the year 35,335,316 546,598

Shares redeemed during the year (18,553,785) (197,800)



Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 31,393,917 4,795,158 100

Shares issued during the year 14,809,822 479,230 -


Closing shares issued 42,772,429 1,967,779 100


152





Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 100 100 34,271,690

Shares issued during the year - - -

Shares redeemed during the year - - (4,216,488)

Closing shares issued 100 100 30,055,202


Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 22,463,755 9,389,613 -

Shares issued during the year 46,387,073 742,313 2,996,881




Class A

Shares

Class B

Shares


Shares issued during the year 2,702,203 -

Shares redeemed during the year (4,361,568) (39,874,599)

Closing shares issued - -


Class B

Shares Opening shares issued 20,935,309 Shares issued during the year 5,799,020




Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued 178,128 218,400 613,048

Shares issued during the year 210,084 120,086 736,150

Shares redeemed during the year (40,862) (32,856) (71,908)



153





Class D

Shares Opening shares issued 560,276

Shares issued during the year 62,366 Shares redeemed during the year -

Closing shares issued 622,642


Class B

Shares






Class A

Shares

Class B

Shares

Class D

Shares

Opening shares issued - - -

Shares issued during the period 22,146,197 20,710 1,476,642

Shares redeemed during the period (330,758) (20,619) (535)

Closing shares issued 21,815,439 91 1,476,107


Class B

Shares



Shares redeemed during the period (177,688)



154





Class A

Shares

Class B

Shares

Class C

Shares

Opening shares issued - - -

Shares issued during the period 6,283,625 3,972,420 1,344,547

Shares redeemed during the period (47,709) - -



Class D

Shares

Class E

Shares

Opening shares issued - -

Shares issued during the period 7,648,014 3,402,733

Shares redeemed during the period (365,846) -


5 Investments in subsidiaries

At 31 December 2018, the Funds held a majority holding in the following collective investment schemes:

Name

Country of

incorporation

Geographic

focus

Proportion of

ownership

interest held


Sanlam Centre American Select Equity Fund Ireland United States 60.56%

Sanlam Global Value Fund Ireland Global 87.81%

Sanlam Japan Equity Fund Ireland Japan 86.87%

Satrix North America Equity Tracker Fund Ireland United States 85.61%

Name

Country of

incorporation

Geographic

focus

Proportion of

ownership

interest held


Sanlam World Equity Fund Ireland Global 76.25%


155


5 Investments in subsidiaries (continued)

At 31 December 2017, the Funds held a majority holding in the following collective investment schemes:

Name

Country of

incorporation

Geographic

focus

Proportion of

ownership

interest held


Sanlam Centre American Select Equity Fund Ireland United States 81.98%

Sanlam FOUR Enhanced Income Fund Ireland United Kingdom 79.31%

Sanlam Global Value Fund Ireland Global 80.90%

Sanlam Stable Global Fund Ireland Global 80.66%

Sanlam US Dividend Fund Ireland United States 59.14%

Sanlam Japan Equity Fund Ireland Japan 89.76%

Satrix North America Equity Tracker Fund Ireland United States 81.95%

6 Net gains and losses on financial assets and liabilities at fair value through profit or loss

Net gains and losses for the year ended 31 December 2018:

Sanlam Global

Balanced

Fund

Sanlam Global

Equity Fund

Sanlam Global

Liquidity Fund

Sanlam BIFM

World Equity

Fund

2018 2018 2018 2018

USD USD USD USD

Realised gains 4,132,431 90,886,945 101,503 26,341,463

Realised losses (117,208) (22,305,804) (44,856) (2,450,479)

Change in unrealised gains - 4,170,042 76,875 3,095,406

Change in unrealised losses (15,105,550) (176,954,328) (617,146) (60,307,019)

Foreign currency gain/(loss) (4,678) 9,607 (39,633) (389,921)

Total gains/(losses) (11,095,005) (104,193,538) (523,257) (33,710,550)

Sanlam BIFM

Global Fixed

Income Fund

Mpile Global

Equity Fund

Sanlam Private

Wealth Global

Balanced Fund

Counterpoint

Global

Equity Fund

2018 2018 2018 2018

USD USD USD USD

Realised gains 108,667 6,559,743 2,946,002 2,843,078

Realised losses (8,798) - (810,034) (1,866,779)

Change in unrealised gains - - 866,603 617,339

Change in unrealised losses (797,364) (7,517,085) (10,090,951) (4,533,816)

Foreign currency gain/(loss) (3,737) (5,165) (238,279) (27,748)

Total gains/(losses) (701,232) (962,507) (7,326,659) (2,967,925)


156



(continued)

Independent

Global Flexible

Fund

Counterpoint

Global Owner

Managed

Flexible Fund

ARX Pangaia

Global

Managed Fund

Excalibur

Global

Managed Fund

2018 2018 2018 2018

USD USD USD USD

Realised gains 1,457,705 285,847 891,708 503,173

Realised losses (1,173,767) (181,077) (466,695) (24,114)

Change in unrealised gains 1,121,971 73,791 61,288 6,975

Change in unrealised losses (6,601,679) (1,050,548) (3,606,066) (3,975,884)

Foreign currency gain/(loss) (21,890) 13,675 (111,525) (9,016)

Total gains/(losses) (5,217,660) (858,312) (3,231,290) (3,498,866)

Northstar Global

Flexible Fund

Absa Global

Best Blend

Fund

Absa Global

Access Fund

2018 2018 2018

USD USD USD

Realised gains 1,285,916 - 10,709

Realised losses (489,040) - (212,788)

Change in unrealised gains 424,955 65,145 23,815

Change in unrealised losses (2,467,598) (20,093,046) (6,120,420)

Foreign currency gain/(loss) (76,856) (21,820) (4,732)

Total gains/(losses) (1,322,623) (20,049,721) (6,303,416)

Net gains and losses for the year ended 31 December 2017:

Analytics

International

Flexible Fund

Sanlam Global

Balanced

Fund

Sanlam Global

Equity Fund

Sanlam Global

Liquidity Fund

2017 2017 2017 2017

USD USD USD USD

Realised gains 9,173,054 5,712,184 234,521,918 15,956

Realised losses (852,634) - (7,848,292) (56,460)

Change in unrealised gains 784,155 20,114,312 161,309,675 894,793

Change in unrealised losses (3,970,185) (548,823) (161,473,758) -

Foreign currency gain/(loss) 17,105 3 (79,183) 18,279

Total gains/(losses) 5,151,495 25,277,676 226,430,360 872,568


157



(continued)

NFB Global

Balanced

Fund of Funds

Sanlam

BIFM World

Equity Fund

Sanlam BIFM

Global Fixed

Income Fund

Mpile Global

Equity Fund

2017 2017 2017 2017

USD USD USD USD

Realised gains 2,897,573 5,439,995 69,593 455,170

Realised losses - (1,894,761) - (1)

Change in unrealised gains - 54,408,714 2,537,600 6,081,159

Change in unrealised losses (1,904,920) (4,093,446) - -

Foreign currency gain/(loss) (8,848) (162,281) 2 91

Total gains/(losses) 983,805 53,698,221 2,607,195 6,536,419

Sanlam Private

Wealth Global

Balanced Fund

APS Global

Flexible

Fund of Funds

Counterpoint

Global

Equity Fund

Independent

Global

Flexible Fund

2017 2017 2017 2017

USD USD USD USD

Realised gains 1,412,600 4,581,614 2,643,202 1,072,579

Realised losses (93,039) - (899,856) (1,749,587)

Change in unrealised gains 6,759,205 248,466 3,416,788 3,682,658

Change in unrealised losses (268,772) (689,615) (745,195) (1,281,501)

Foreign currency gain/(loss) 355,309 - 8,510 (27,781)

Total gains/(losses) 8,165,303 4,140,465 4,423,449 1,696,368

Counterpoint

Global Owner

Managed Flexible

Fund

ARX Pangaia

Global Managed

Fund

Excalibur

Global

Managed Fund

Northstar

Global

Flexible Fund

2017 2017 2017 2017

USD USD USD USD

Realised gains 177,956 638,006 18 208,562

Realised losses (41,725) (16,624) - (136,202)

Change in unrealised gains 608,681 2,343,599 2,861,185 1,099,292

Change in unrealised losses (24,125) (72,947) - (139,470)

Foreign currency gain/(loss) 29,951 191,822 10,098 87,492

Total gains/(losses) 750,738 3,083,856 2,871,301 1,119,674


158


7 Financial assets and financial liabilities at fair value through profit or loss

The following tables show financial assets measured at fair value through profit or loss at 31

December 2018:

Sanlam Global

Balanced Fund

Sanlam Global

Equity Fund

Sanlam Global

Liquidity Fund

31/12/2018 31/12/2018 31/12/2018

USD USD USD


Held for trading:

Equity - 119,059,911 -

Collective Investment Schemes 133,412,078 732,284,090 14,789,010

Total financial assets at fair value through

profit or loss 133,412,078 851,344,001 14,789,010

Sanlam

BIFM World

Equity Fund

Sanlam BIFM

Global Fixed

Income Fund

Sanlam Private

Wealth Global

Balanced Fund

31/12/2018 31/12/2018 31/12/2018

USD USD USD


Held for trading:

Equity 79,217,793 - 49,762,683



profit or loss 197,186,068 37,778,786 64,527,111

Counterpoint

Global Equity

Fund

Independent

Global Flexible

Fund

Counterpoint

Global Owner

Managed

Flexible Fund

31/12/2018 31/12/2018 31/12/2018

USD USD USD


Held for trading:

Equity 24,847,085 20,295,112 4,976,398

Collective Investment Schemes - 603,218 -

Exchange Traded Funds - - 1,394,680


profit or loss 24,847,085 20,898,330 6,371,078


159


7 Financial assets and financial liabilities at fair value through profit or loss (continued)

ARX Pangaia

Global

Managed Fund

Excalibur

Global

Managed Fund

Northstar

Global Flexible

Fund

31/12/2018 31/12/2018 31/12/2018

USD USD USD


Held for trading:

Equity 6,345,388 - 19,595,667


Exchange Traded Funds 2,036,742 641,356 5,157,437

Corporate Debt 450,809 - -

Government Debt 907,177 - -


profit or loss 20,046,300 41,672,428 30,825,358

Absa Global Best

Blend Fund

Absa Global

Access Fund

31/12/2018 31/12/2018

USD USD


Held for trading:

Collective Investment Schemes 177,920,281 63,043,316


profit or loss 177,920,281 63,043,316

The following tables show financial assets measured at fair value through profit or loss at 31

December 2017:

Sanlam Global

Balanced Fund

Sanlam Global

Equity Fund

Sanlam Global

Liquidity Fund

31/12/2017 31/12/2017 31/12/2017

USD USD USD


Held for trading:

Equity - 197,416,744 -

Collective Investment Schemes 165,900,139 1,006,229,723 15,159,137


profit or loss 165,900,139 1,203,646,467 15,159,137


160



Sanlam

BIFM World

Equity Fund

Sanlam BIFM

Global Fixed

Income Fund

Mpile Global

Equity Fund

31/12/2017 31/12/2017 31/12/2017

USD USD USD


Held for trading:

Equity 124,068,605 - -



profit or loss 307,615,119 44,493,269 37,086,754

Sanlam Private

Wealth Global

Balanced Fund

Counterpoint

Global Equity

Fund

Independent

Global Flexible

Fund

31/12/2017 31/12/2017 31/12/2017

USD USD USD


Held for trading:

Equity 46,286,020 26,233,270 26,559,229

Collective Investment Schemes 12,205,978 - -

Exchange Traded Funds - 1,384,729 -


profit or loss 58,491,998 27,617,999 26,559,229

Counterpoint

Global Owner

Managed

Flexible Fund

ARX Pangaia

Global

Managed Fund

Excalibur

Global

Managed Fund

31/12/2017 31/12/2017 31/12/2017

USD USD USD


Held for trading:

Equity 1,429,675 7,070,296 -

Collective Investment Schemes - 11,499,509 35,436,351

Exchange Traded Funds 3,851,958 1,625,572 -

Corporate Debt - 448,757 -

Government Debt - 2,037,353 -


profit or loss 5,281,633 22,681,487 35,436,351


161



Northstar

Global Flexible

Fund

31/12/2017

USD


Held for trading:

Equity 16,257,642

Collective Investment Schemes 4,396,958


profit or loss 20,654,600

As at 31 December 2018 and 31 December 2017, no financial liabilities at fair value through profit or loss were held by the Funds.

8 Fair value of financial instruments

The AIFM is responsible for ensuring that proper and independent valuation of the assets of the Company

can be performed. The financial instruments held by each Fund are valued in accordance with the valuation

policy of the AIFM.

The following table shows financial instruments recognised at fair value. The fair value hierarchy has the

following levels:

▪ Quoted prices in active markets for identical assets or liabilities (Level 1); ▪ Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly (as prices) or indirectly (derived from prices) (Level 2); and ▪ Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

(Level 3).

The inputs or methodology used for valuing securities are not necessarily an indication of the risks

associated with investing in those securities.


162


. 8 Fair value of financial instruments (continued) Assets measured at fair value The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair value through profit or loss at 31 December 2018:


Level 1 Level 2 Level 3 Total

USD USD USD USD

Collective Investment Schemes 133,412,078 - - 133,412,078

Total financial assets at fair value

through profit or loss 133,412,078 - - 133,412,078



USD USD USD USD

Equity 119,059,911 - - 119,059,911






USD USD USD USD






USD USD USD USD

Equity 79,217,793 - - 79,217,793






USD USD USD USD





163


8 Fair value of financial instruments (continued)

Assets measured at fair value (continued)



USD USD USD USD

Equity 49,762,683 - - 49,762,683

Collective Investment Schemes 14,034,822 729,606 - 14,764,428


through profit or loss 63,797,505 729,606 - 64,527,111



USD USD USD USD

Equity 24,847,085 - - 24,847,085





USD USD USD USD

Equity 20,295,112 - - 20,295,112

Collective Investment Schemes 603,218 - - 603,218





USD USD USD USD

Equity 4,976,398 - - 4,976,398

Exchange Traded Funds 1,394,680 - - 1,394,680





USD USD USD USD

Equity 6,345,388 - - 6,345,388

Bonds 907,177 450,809 - 1,357,986

Collective Investment Schemes 4,001,516 6,304,668 - 10,306,184



through profit or loss 13,290,822 6,755,477 - 20,046,300


164






USD USD USD USD


Exchange Traded Funds 641,356 - - 641,356





USD USD USD USD

Equity 19,595,667 - - 19,595,667







USD USD USD USD






USD USD USD USD





165




The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair value through profit or loss at 31 December 2017:



USD USD USD USD






USD USD USD USD

Equity 197,416,744 - - 197,416,744

Collective Investment Schemes 1,006,229,723 - - 1,006,229,723


through profit or loss 1,203,646,467 - - 1,203,646,467



USD USD USD USD






USD USD USD USD

Equity 124,068,605 - - 124,068,605






USD USD USD USD






USD USD USD USD





166






USD USD USD USD

Equity 46,286,020 - - 46,286,020

Collective Investment Schemes 11,392,130 813,848 - 12,205,978


through profit or loss 57,678,150 813,848 - 58,491,998



USD USD USD USD

Equity 26,233,270 - - 26,233,270






USD USD USD USD

Equity 26,559,229 - - 26,559,229





USD USD USD USD

Equity 1,429,675 - - 1,429,675






USD USD USD USD

Equity 7,070,296 - - 7,070,296

Bonds 2,037,353 448,757 - 2,486,110






167






USD USD USD USD






USD USD USD USD

Equity 16,257,642 - - 16,257,642




Liabilities measured at fair value As at 31 December 2018 and 31 December 2017, no financial liabilities at fair value through profit or loss were held by the Funds.

Investments whose values are based on quoted market prices in active markets, and therefore classified within level 1, include active listed equities, exchange traded derivatives and collective investment schemes. The AIFM does not adjust the quoted price for these instruments nor does it apply a discount to securities where the volume traded in the market is low relative to the Fund’s holding. Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2 (i.e. OTC derivatives such as forward currency contracts). These include certain collective investment schemes. As level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Investments classified within level 3, if any, have significant unobservable inputs, as they trade infrequently.

Significant transfers between levels 1, 2 and 3

There were no significant transfers between levels in the years ended 31 December 2018 or 31

December 2017.

9 Financial assets and liabilities not measured at fair value For all non-financial assets and liabilities at fair value through profit and loss, their carrying values are a reasonable approximation of fair value.


168


10 Offsetting of financial assets and liabilities IFRS 7 requires an entity to disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on the entity’s financial position. At 31 December 2018 and 31 December 2017, no derivative financial instruments were held by the Funds.

11 Exchange rates

The following year end USD exchange rates have been used in this report:

1 USD = 31 December 2018 31 December 2017

AUD 1.4205 1.2798

CAD 1.3658 1.2517

CHF 0.9858 0.9738

CLP N/A 615.4000

DKK 6.5280 6.1924

EUR 0.8748 0.8317

GBP 0.7852 0.7389

HKD 7.8294 7.8128

ILS 3.7368 3.4700

JPY 109.7150 112.6700

KRW 1,115.8000 1068.4200

MXN N/A 19.6456

NOK 8.6592 8.1828

NZD 1.4913 1.4085

SEK 8.8659 8.1696

SGD 1.3630 1.3363

THB 32.5600 32.5830

USD 1.0000 1.0000

ZAR 14.3850 12.3908

The following average USD exchange rates have been used in this report:

1 USD = 31 December 2018 31 December 2017

EUR 0.8708 0.8865

GBP 0.7662 0.7766

12 Related party transactions and significant agreements

Directors’ interests The Directors who held office on 31 December 2018 had no interest in the shares of the Company or the Funds at that date or at any time during the financial year.

Manager Pursuant to the Amended and Restated Management Agreement effective 28 September 2018, SAMI acts as Manager to the Company. SAMI is an ultimate subsidiary Company of Sanlam Limited.


169


12 Related party transactions and significant agreements (continued)

Significant Agreements Manager (continued) The Manager is entitled to receive an AIFM fee (an annual fee of the percentages listed below per Share Class). These fees are payable monthly in arrears and accrued by reference to the net assets of the share class on a daily basis.

Sanlam Global Balanced

Fund1

Sanlam Global Equity

Fund1

Sanlam Global

Liquidity Fund1


Fund


Class A Shares 1.50% 1.50% 0.30% 0.15% 0.15%

Class B Shares 0.85% 0.85% 0.65% 0.15% 0.15%

Class C Shares 0.75% 0.75% 0.25% 0.15% 0.15%

Class D Shares 0.65% 0.60% N/A 0.15% 0.15%

Class G Shares N/A N/A N/A N/A 0.15%

Mpile Global

Equity Fund1,2


Balanced Fund

Counterpoint Global

Equity Fund1


Fund


Managed Flexible Fund1

Class A Shares 1.50% 0.15% 1.50% 0.20% 1.50%

Class B Shares 1.00% 0.15% 1.25% 0.20% 1.25%

Class C Shares N/A2 0.15% 0.85% 0.20% 0.85%

Class D Shares N/A N/A N/A 0.20% N/A

ARX Pangaia Global

Managed Fund

Excalibur Global

Managed Fund

Northstar Global

Flexible Fund1

Absa Global Best Blend

Fund1 Absa Global

Access Fund1

Class A Shares 0.15% N/A 0.15% N/A N/A

Class B Shares 0.15% 0.15% 0.15% N/A N/A

Class C Shares 0.15% N/A 0.15% 1.15% 1.40%

Class D Shares 0.15% N/A 0.15% N/A N/A

Class F Shares 0.15% N/A N/A N/A N/A

Class Z Shares N/A 0.15% N/A N/A N/A 1 For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 2 At 31 December 2018, this Fund has been fully redeemed. 3 The manager is not entitled to a specific fee with respect to the class C shares but will agree a separate fee arrangement with each holder of the Class C shares.

AIFM fees earned by the Manager during the year and outstanding accrued fees as at 31 December 2018 and 31 December 2017 are disclosed as part of the summary of AIFM and investment management fees on pages 173 to 177.


170



Significant Agreements (continued)

Investment Managers and Investment Allocation Manager The Investment Managers are appointed by the Manager. For certain Funds, as noted on the previous page, the Manager, as AIFM, will pay out of its fees, the fees of the Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) appointed to those Funds. For the remaining Funds of the Company, the fees of the appointed Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) are paid directly by the Fund. The table below sets out the rates for the annual Investment Management fees paid directly by these Funds to the Investment Managers (in respect of each share class of the relevant Fund). These fees are payable monthly in arrears and accrued by reference to the net assets of the relevant share class on a daily basis:




Balanced Fund


Fund

Class A Shares 1.00% 1.50% 1.50% 1.25%

Class B Shares 0.80% 1.00% No Fee 1.00%

Class C Shares 1.10% 0.49% 1.00% 0.75%

Class D Shares No Fee No Fee N/A No Fee

Class G Shares N/A 0.80% N/A N/A

ARX Pangaia Global Managed

Fund

Excalibur Global Managed

Fund Northstar Global

Flexible Fund

Class A Shares 0.25% N/A 1.25%

Class B Shares 0.75% 0.35% 1.00%

Class C Shares 1.00% N/A 0.75%

Class D Shares 1.25% N/A No Fee

Class F Shares 1.40% N/A N/A

Class Z Shares N/A No Fee N/A Fees paid directly to the appointed Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) by these Funds during the year and outstanding accrued fees as at 31 December 2018 and 31 December 2017 are disclosed as part of the summary of AIFM and investment management fees on pages 173 to 177. Two of the appointed Investment Managers, Sanlam Investment Management (Pty) Limited and Sanlam Investments UK Limited, are related parties to the Company and the Manager. Sanlam Investments UK Limited is also the appointed Investment Allocation Manager for a number of the Funds.


171



Significant Agreements (continued)

Administrator In its role as the Administrator, Brown Brothers Harriman Fund Administration Services (Ireland) Limited is entitled to receive out of the assets of each Fund an annual fee ranging from 0.025% to 0.03% of the net assets of the Fund, plus an annual fee up to a maximum of USD 15,000 per annum. In addition, the Administrator is entitled to receive its reasonable costs and expenses incurred in the performance of its duties as Administrator of the Company. These fees shall accrue and be calculated on each dealing day and shall be payable monthly in arrears. Prior to 1 October 2018, SAMI was the Administrator of the Company. SAMI was entitled to receive out of the assets of each Fund an annual fee at the same rates. The administration fees earned by the Administrator during the year and outstanding accrued administration fees at 31 December 2018 and 31 December 2017 are presented in the Statement of Comprehensive Income and Statement of Financial Position respectively.

Depositary Brown Brothers Harriman Trustee Services (Ireland) Limited is the appointed Depositary to the Funds. The Depositary is not a related party to the Company. The Depositary is entitled to receive out of the assets of the Fund an annual trustee fee which will not exceed 0.015% of the net assets of the Fund (plus VAT, if any) together with reasonable costs and expenses incurred by the Depositary in the performance of its duties as Depositary of the Fund. These fees are accrued and calculated on each dealing day and are payable monthly in arrears. The Depositary is also entitled to be reimbursed out of the assets of the Fund all agreed safekeeping fees, expenses and transaction charges (which are charged at normal commercial rates). Securities lending Effective from 24 February 2016, pursuant to the Securities Lending Agency Agreement, SAMI was appointed as securities lending agent to the Company. Prior to the appointment of SAMI, Brown Brothers Harriman & Co acted as securities lending agent to the Company. Pursuant to the Securities Lending Sub-Agency Agreement, effective 24 February 2016 Brown Brothers Harriman & Co. was appointed by SAMI as securities lending sub-agent to the Company. The securities lending agent and securities lending sub-agent receive remuneration for their services provided as part of the Company’s securities lending arrangements, the terms of which are set out in the agreements referenced above. For the year ended 31 December 2018, SAMI received USD Nil (2017: USD 4,162) with respect to the securities lending activity of Analytics International Flexible Fund. For the year ended 31 December 2018, SAMI received USD 49,298 (2017: USD Nil) with respect to the securities lending activity of Sanlam Global Equity Fund. Further details on the Company’s securities lending activity are disclosed in Note 17.

Registrar and Transfer Agent Brown Brothers Harriman Fund Administration Services (Ireland) Limited is the appointed Registrar and Transfer Agent to the Company. Transfer agency fees are charged at normal commercial rates. The Registrar and Transfer Agent is not a related party of the Company.


172



Significant shareholders at year end

% held at % held at

Shareholders Fund

31 December

2018

31 December

2017

Sanlam Life Insurance Ltd* Sanlam Global Balanced Fund 98.50% 93.76%

Sanlam Life Insurance Ltd* Sanlam Global Equity Fund 97.47% 97.19%

Standard Bank of SA Ltd** Sanlam Global Liquidity Fund 79.78% 79.21%

Agulhas Nominees (Pty) Ltd for SPI Sanlam Global Liquidity Fund 19.54% 20.53%

Botswana Insurance Fund Management* Sanlam BIFM World Equity 99.14% 99.32%

Botswana Insurance Fund Management* Sanlam BIFM Global Fixed Income 96.96% 97.38%

Konkola Copper Mine Pension Trust Mpile Global Equity Fund n/a 43.37%

SCZSS Nominees Ltd - Barclays Bank Staff Mpile Global Equity Fund n/a 17.06%

Stanbic Nominees Mpile Global Equity Fund n/a 15.43%

Stanbic Bank Zambia Retirement Benefit Mpile Global Equity Fund n/a 9.10%

Standard Chartered Bank Zambia Plc Mpile Global Equity Fund n/a 6.86% SBSA ITF Sanlam Private Wealth SCI Managed Fund**

Sanlam Private Wealth Global Balanced Fund 18.17% 17.13%

Agulhas Nominees (Pty) Ltd for SPI Sanlam Private Wealth Global Balanced Fund 9.36% 10.12%

SBSA ITF Counterpoint MET Equity Feeder** Counterpoint Global Equity Fund 27.72% 25.18% SBSA ITF Counterpoint MET Balanced Plus Fund** Counterpoint Global Equity Fund 14.25% 16.23%

Fundsettle EOC Nominees Ltd Counterpoint Global Equity Fund 19.57% 21.94% SBSA ITF Counterpoint MET Cautious Fund** Counterpoint Global Equity Fund 16.09% 16.16%

Allan Gray Nominees Counterpoint Global Equity Fund 16.38% 12.25%

Jan George Solms Independent Global Flexible Fund 11.98% 10.95%

Francis Richard Thompson Independent Global Flexible Fund 12.29% 8.25%

Lance Klerck Faure Independent Global Flexible Fund 9.69% 8.86%

Fundsettle EOC Nominees Ltd Counterpoint Global Owner Managed Flexible Fund 39.93% 54.61%

SBSA ITF Counterpoint MET Cautious Fund**

Counterpoint Global Owner Managed Flexible Fund 24.95% 29.16%

SBSA ITF Counterpoint MET Balanced

Fund**

Counterpoint Global Owner Managed

Flexible Fund 23.13% 11.70%

SBSA ITF Select Manager** ARX Pangaia Global Managed Fund 88.36% 93.23%

SBSA ITF Excalibur Sanlam CIS** Excalibur Global Managed Fund 59.55% 61.38%

Allan Gray Nominees Excalibur Global Managed Fund 33.57% 29.40%

Fundsettle EOC Nominees Ltd Excalibur Global Managed Fund 6.88% 9.22%

Allan Gray Nominees Northstar Global Flexible Fund 19.89% 20.49%

SBSA ITF Northstar Met Managed Fund** Northstar Global Flexible Fund 25.49% 32.99% SBSA ITF Northstar Global Flexible Feeder Fund** Northstar Global Flexible Fund 16.54% 13.41%

Paul Gavin Theesen Northstar Global Flexible Fund 11.02% 8.70%

SGSS ITF ABSA Multi Managed Absa Global Best Blend Fund 100.00% n/a

SGSS ITF ABSA Multi Managed Absa Global Access Fund 100.00% n/a

* These investors are related parties to the Company and the Manager. **These are investments by South African Unit Trusts. These Unit Trusts are managed by related parties to the Manager.


173



AIFM and investment management fees A summary of AIFM and investment management fees earned during the year and outstanding accrued fees as at 31 December 2018 are presented in the tables below and overleaf.

Sanlam Global

Balanced

Sanlam Global

Equity

Sanlam

Global

Liquidity

Sanlam BIFM

World Equity

Fund1 Fund1 Fund1 Fund2

USD USD USD USD

Fees incurred during the year ended 31 December 2018

Class A Management Fees (51,499) (8,654) (58,837) (2,805,902)

Class B Management Fees (26,324) (3,474) (622) (23,575)

Class C Management Fees (1,098,094) (8,044,570) - -

Class D Management Fees - (171,238) - -

(1,175,917) (8,227,936) (59,459) (2,829,477)

Fees accrued at 31 December 2018

Class A Management Fees (48,119) (3,284) (8,100) (529,378)

Class B Management Fees (9,218) (888) (211) (5,141)

Class C Management Fees (170,205) (969,572) (1) -


(227,542) (1,168,824) (8,312) (534,519)

Sanlam BIFM

Global Fixed

Income Fund2

Mpile Global

Equity Fund1

Sanlam

Private Wealth

Global

Balanced

Fund2

Counterpoint

Global Equity

Fund1

USD USD USD USD


Class A Management Fees (588,586) (87) (1,172,205) -

Class B Management Fees (29,263) (89) (98,588) (388,494)

Class C Management Fees (1) (20,557) (76,893) -

(617,850) (20,733) (1,347,686) (388,494)


Class A Management Fees (127,716) - (260,925) -

Class B Management Fees (6,736) - (3,895) (69,238)

Class C Management Fees - (1) (18,626) -

(134,452) (1) (283,446) (69,238)

1For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 2 For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund.


174



AIFM and investment management fees (continued)

Independent

Global Flexible

Fund1

Counterpoint

Global Owner

Managed

Flexible Fund

ARX Pangaia

Global

Managed

Fund2

Excalibur

Global

Managed

Fund2

USD USD USD USD


Class A Management Fees (39,175) (112,039) (111,970) -

Class B Management Fees (21,230) - (7) (214,254)

Class C Management Fees (117,259) - - -

Class D Management Fees (50,289) - (21,880) -

(227,953) (112,039) (133,857) (214,254)


Class A Management Fees (13,566) (26,591) (14,694) -

Class B Management Fees (6,600) - (2) (39,259)

Class C Management Fees (12,127) - - -

Class D Management Fees (3,486) - (11,184) -

(35,779) (26,591) (25,880) (39,259)

Northstar

Global

Flexible

Fund2

Absa Global

Best Blend

Fund1

Absa Global

Access1

USD USD USD

Fees incurred during the year/period ended 31 December 2018

Class A Management Fees (79,236) - -

Class B Management Fees (64,013) - -

Class C Management Fees (17,316) (730,468) (355,961)

Class D Management Fees (50,341) - -

Class E Management Fees (36,887) - -

(247,793) (730,468) (355,961)


Class A Management Fees (10,396) - -

Class B Management Fees (23,654) - -

Class C Management Fees (5,542) (424,546) (178,404)

Class D Management Fees (3,427) - -

Class E Management Fees (10,531) - -

(53,550) (424,546) (178,404)

1For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 2 For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund.


175



AIFM and investment management fees (continued) A summary of AIFM and investment management fees earned during the year and outstanding accrued fees as at 31 December 2017 are presented in the tables below and overleaf.

Analytics

International

Flexible

Sanlam

Global

Balanced

Sanlam

Global Equity

Sanlam

Global

Liquidity

Fund1,2 Fund1 Fund1 Fund1

USD USD USD USD


Class A Management Fees (377,068) (94,913) (15,332) (37,358)

Class B Management Fees - (29,956) (42,328) -

Class C Management Fees - (1,140,548) (8,801,580) -

(377,068) (1,265,417) (8,859,240) (37,358)


Class A Management Fees - (8,332) (1,366) (3,933)


Class C Management Fees - (98,616) (757,969) -

- (109,544) (762,897) (3,933)

NFB Global

Balanced

Fund Of

Funds1,2

Sanlam BIFM

World Equity

Fund3

Sanlam BIFM

Global Fixed

Income Fund3

Mpile Global

Equity Fund1

USD USD USD USD


Class A Management Fees (56,139) (2,873,136) (551,695) -

Class B Management Fees (8,267) (14,604) (33,051) -

Class C Management Fees - - - (42,700)

(64,406) (2,887,740) (584,746) (42,700)


Class A Management Fees - (277,696) (54,903) -



- (279,218) (56,510) (3,720) 1For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 2 At 31 December 2017, these Funds have been fully redeemed. 3 For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund.


176



AIFM and investment management fees (continued)

Sanlam Private

Wealth Global

Balanced Fund3

APS Global

Flexible Fund

of Funds2,3

Counterpoint

Global Equity

Fund1

Independent

Global

Flexible Fund1

USD USD USD USD


Class A Management Fees (656,781) (8,655) - (49,204)

Class B Management Fees (3,955) (67,003) (306,661) (35,852)


(660,736) (75,658) (306,661) (178,068)


Class A Management Fees (103,382) - - (5,355)



(105,737) (3) (31,271) (20,020)

Counterpoint

Global Owner

Managed

Flexible Fund

ARX Pangaia

Global

Managed

Fund3

Excalibur

Global

Managed

Fund3

Northstar

Global

Flexible

Fund3

USD USD USD USD

Fees incurred during the year/period ended 31 December 2017

Class A Management Fees - (83,698) - (34,497)




Class E Management Fees - - - (3,822)

(79,840) (94,043) (106,475) (51,365)


Class A Management Fees - (8,153) - (831)

Class B Management Fees (7,767) - (14,946) (288)

Class C Management Fees - - - (28)


Class E Management Fees - - - (93)

(7,767) (10,205) (14,946) (1,240)

1For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 2 At 31 December 2017, these Funds have been fully redeemed. 3 For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund.


177



AIFM and investment management fees (continued) The Manager may rebate a portion of its fees to certain of the Funds of the Company where those Funds are themselves invested into other funds managed by the Manager or enter into special fee arrangements and/or rebate agreements, in its sole discretion, with certain shareholders who may be affiliates of the Manager, including Botswana Insurance Fund Management, Sanlam Private Investments (Pty) Limited, Sanlam Life Insurance Limited, Sanlam Life & Pensions (UK) Limited and Sanlam Collective Investments Limited. Rebate income earned by each of the Funds of the Company, as disclosed on the Statement of Comprehensive Income, was paid from the profits of the Manager.

Related Party Transactions Sanlam Global Balanced Fund operates as a feeder fund of the Sanlam Universal Funds plc. The Sanlam Global Equity Fund also invests a substantial portion of its assets in funds of Sanlam Universal Funds plc, but the investment policy of the Fund also allows it to invest in funds that are not sub-funds of the Sanlam Universal Funds plc and direct equity investments. The Fund’s investments are detailed in the portfolio of investments on pages 89 to 131. Other sub-funds of the Company may also from time to time invest in funds of the Sanlam Universal Funds plc.


178



Related Party Transactions (continued) The transactions below/overleaf occurred within Sanlam Limited (the “Group”) during the year ended 31 December 2018:

Sanlam Global

Balanced Fund

Sanlam Global

Equity Fund

Sanlam BIFM

World Equity

Fund

USD USD USD

Subscriptions:

Sanlam Centre American Select Equity Fund 1,000,000 - -

Sanlam FOUR Enhanced Income Fund - 264,732 -

Sanlam Multi-Strategy Fund 912,133 - -

Sanlam Stable Global Fund 19,313 232,949 -

Sanlam Active UK Fund 1,588 30,664 -

Sanlam US Dividend Fund 21,012 222,131 -

Sanlam Global Value Fund 19,739 234,708 -

Sanlam Japan Equity Fund 250,000 12,000,000 -

Sanlam World Equity Fund - - 253,765

Satrix Europe Equity Tracker Fund 7,847 104,522 -

Satrix UK Equity Tracker Fund 500,000 5,000,000 -

Satrix North America Equity Tracker Fund - 23,000,000 -

Satrix World Equity Tracker Fund 9,850,000 152,500,000 -

Denker Global Emerging Markets Fund - - 543,682

Sanlam Global High Quality Fund - 430,635 -

Total subscriptions 12,581,632 194,020,341 797,447

Sanlam BIFM

Global Fixed

Income Fund

Sanlam

Private Wealth

Global

Balanced

Fund

USD USD

Subscriptions

Sanlam Multi-Strategy Fund - 1,455,841

Sanlam Global Bond Fund 63,012 -

Total subscriptions 63,012 1,455,841


179



Related Party Transactions (continued)

Sanlam Global

Balanced Fund

Sanlam

Global Equity

Fund

Sanlam BIFM

World Equity

Fund

USD USD USD

Redemptions

Sanlam Centre American Select Equity Fund (250,000) (38,000,000) -

Sanlam Global Value Fund (1,200,000) (26,000,000) -

Sanlam Multi-Strategy Fund (1,106,125) -

Sanlam Stable Global Fund (11,473,242) (148,865,744) -

Sanlam Active UK Fund (1,004,340) -

Sanlam US Dividend Fund (6,000,000) (68,100,000) -

Sanlam Global Bond Fund (6,200,000) - -

Sanlam Global Property Fund (3,850,000) - -

Sanlam Japan Equity Fund (500,000) (29,100,000) -

Sanlam World Equity Fund - - (13,411,257)

Satrix Europe Equity Tracker Fund (2,400,000) - -

Satrix North America Equity Tracker Fund (1,000,000) (3,500,000) -

Satrix World Equity Tracker Fund - (10,000,000) -

Satrix Europe (ex UK) Equity Tracker Fund - (33,800,000) -

Denker Global Emerging Markets Fund - - (5,445,553)

Total redemptions (33,979,367) (358,370,084) (18,856,810)

Sanlam BIFM

Global Fixed

Income Fund

Mpile Global

Equity Fund

USD USD

Redemptions

Sanlam Global Bond Fund (4,719,352) -

Sanlam World Equity Fund - (9,587,108)

Total redemptions (4,719,352) (9,587,108)


180




The following transactions occurred within Sanlam Limited (the “Group”) during the year ended 31

December 2017:

Sanlam Global

Balanced Fund

Sanlam Global

Equity Fund

Sanlam BIFM

World Equity

Fund

USD USD USD

Subscriptions

Sanlam Centre American Select Equity Fund 11,600,000 - -

Sanlam FOUR Active European Ex-UK Equity Fund - 47,851,977 -

Sanlam FOUR Enhanced Income Fund - 5,300,000 -

Sanlam Multi-Strategy Fund 4,700,000 - -

Sanlam Stable Global Fund - 39,459,620 -

Sanlam Active UK Fund - 6,585,587 -

Sanlam US Dividend Fund 2,250,000 - -

Sanlam Global Bond Fund 2,000,000 - -

Sanlam Japan Equity Fund 6,600,000 30,716,201 -

Sanlam World Equity Fund 26,628,352 - 5,246,720

Satrix Europe Equity Tracker Fund 11,499,366 101,569,776 -

Satrix North America Equity Tracker Fund 11,000,000 68,071,641 -

Satrix World Equity Tracker Fund 11,675,000 124,927,631 -

Denker Global Emerging Markets Fund - - 15,424,483

Sanlam Global High Quality Fund - 8,082,857 -

Total subscriptions 87,952,718 432,565,290 20,671,203

Sanlam BIFM

Global Fixed

Income Fund

Sanlam

Private Wealth

Global

Balanced

Fund

USD USD

Subscriptions

Sanlam Multi-Strategy Fund - 4,796,036

Sanlam Global Bond Fund 6,704,640 -

Sanlam Strategic Bond Fund - 4,566,849

Total subscriptions 6,704,640 9,362,885


181




Sanlam Global

Balanced Fund

Sanlam Global

Equity Fund

Sanlam BIFM

World Equity

Fund

USD USD USD

Redemptions

Sanlam Centre American Select Equity Fund (1,000,000) (19,600,000) -

Sanlam Centre Global Equity Fund (26,628,352) - -

Sanlam FOUR Active European (ex-UK) Equity Fund

(11,949,366) (135,277,707) -

Sanlam Global Value Fund (1,050,000) (22,000,000) -

Sanlam Multi-Strategy Fund (200,000) - -

Sanlam Stable Global Fund (3,700,000) (35,500,000) -

Sanlam Active UK Fund (500,000) (33,846,100) -

Sanlam US Dividend Fund - (13,250,000) -

Sanlam Global Bond Fund (800,000) - -

Sanlam Global Property Fund (400,000) - -

Sanlam Japan Equity Fund (300,000) (9,200,000) -

Sanlam World Equity Fund (41,267,323) (461,177,958) (9,300,000)

Satrix Europe Equity Tracker Fund - (3,000,000) -

Satrix North America Equity Tracker Fund - (11,000,000) -

Satrix UK Equity Tracker Fund (750,000) - -

Satrix World Equity Tracker Fund (5,300,000) (31,000,000) -

SIIP India Opportunity Fund - (17,803,337) -

Denker Global Emerging Markets Fund - - (300,000)


Sanlam BIFM

Global Fixed

Income Fund

Mpile Global

Equity Fund

Sanlam

Private Wealth

Global

Balanced

Fund

USD USD USD

Redemptions

Sanlam Multi-Strategy Fund - - (1,634,055)

Sanlam Stable Global Fund - (90,329) -

Sanlam Global Bond Fund (2,420,000) - -

Satrix World Equity Tracker Fund - (1,057,561) -


In-specie transfers The following in-specie transfers occurred during the year ended 31 December 2018: Subscriptions in ABSA Global Best Blend Fund include in specie transfers from three shareholders during the year in exchange for assets with a fair value at the date of transfer of USD 27,448,992.


182



Related Party Transactions (continued) In-specie transfers (continued) The following in-specie transfers occurred during the year ended 31 December 2017: Subscriptions in Northstar Global Flexible Fund include in specie transfers from Northstar Met Managed Fund during the year in exchange for assets with a fair value at the date of transfer of USD 7,172,796. During the year, Sanlam Global Equity Fund, redeemed shares in Sanlam World Equity Fund in the amount of USD 379,145,744. This redemption was made by means of an in specie transfer of equity securities held by the Sanlam World Equity Fund to Sanlam Global Equity Fund. The equity securities transferred had an equivalent fair value at the date of transfer to the redemption amount. Effective from 1 September 2017 three of the Company’s sub-funds, Analytics International Flexible

Fund, NFB Global Balanced Fund of Funds and APS Global Flexible Fund of Funds transferred to Ci Global Investments RIAIF ICAV. The transfer was affected by means of an in-specie transfer of the Funds’ financial assets and liabilities as follows:

In-specie transfer value

USD

Analytics International Flexible Fund 46,389,882

NFB Global Balanced Fund of Funds 14,601,464

APS Global Flexible Fund of Funds 48,526,115 Cross Investments No Fund held any investments in other Funds within the Company at 31 December 2018 or 31 December 2017.

13 Efficient portfolio management

The Company on behalf of a Fund may employ techniques and instruments relating to transferable

securities and/or other financial instruments in which it invests for efficient portfolio management

purposes. Use of such techniques and instruments should be in line with the best interests of

Shareholders and will generally be made for one or more of the following reasons:

(a) the reduction of risk;

(b) the reduction of cost; or (c) the generation of additional capital or income for the relevant Fund with an appropriate level of risk, taking into account the risk profile of the Fund and the risk diversification rules set out in the Central Bank Rules.

The Funds may engage in transactions in Financial Derivative Instruments (“FDIs”) for the purposes of

efficient portfolio management. FDIs may also be used by a Fund to meet its investment objective, for risk

reduction and implementation of investment policies.

The Funds may enter into forward foreign currency contracts for efficient portfolio management purposes. Forward foreign currency exchange contracts are used to hedge against anticipated future changes in exchange rates which otherwise might either adversely affect the value of the Fund’s portfolio securities or adversely affect the price of securities which the Funds intend to purchase at a later date.


183


13 Efficient portfolio management (continued)

The Funds may also enter into futures contracts for efficient portfolio management purposes. The primary purpose for which the Funds use futures contracts are cash equalisation, hedging and return enhancement. The purpose of cash equalisation is to expose uninvested cash within the Funds to equity market-like returns and ensure that the Funds’ liquid assets are utilised as though invested in the markets. Interest rate swaps may be used for hedging against adverse movements in interest rates. Options offer the ability, when used as a hedging tool to be utilised in efficient portfolio management, to provide offsetting insurance of asset value in an uncertain or highly volatile market environment. The Funds, where permitted, may use options to hedge or achieve exposure to a particular currency. By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics that assist the Funds in meeting their investment objectives. At 31 December 2018 and 31 December 2017, the Funds did not hold any FDIs. During the year ended 31 December 2018, the ARX Pangaia Global Managed Fund utilised forward foreign currency contracts for the purposes of hedging risks arising from changes in certain foreign currency exchange rates. The Funds also engage in securities lending activities for efficient portfolio management purposes, details of which are set out in Note 17.

14 Soft commissions Some of the Investment Managers have soft commission agreements in place in respect of the investments managed by them.

15 Portfolio changes A list of portfolio changes during the year is available, free of charge, from the Administrator.


184


16 Underlying collective investment schemes The Funds of the Company invest in collective investment schemes. These underlying collective schemes may be subject to management and performance fees. Those Funds of the Company which operate as feeder funds to the sub-funds of Sanlam Universal Funds plc invest in non-fee paying classes of the relevant sub-funds. In addition, Sanlam BIFM World Equity Fund, Sanlam BIFM Global Fixed Income Fund and Mpile Global Equity Fund invest in fee paying classes of sub-funds of Sanlam Universal Funds Plc. The table overleaf summarises the collective investment schemes in which the Funds of the Company hold investments at 31 December 2018 and details the investment management fees and incentive fees incurred relating to these collective investment schemes:

Year ended 31 December 2018

Collective Investment Scheme Name

Collective Investment

Scheme Type

Investment Management

Fees (%)1

Incentive Fees (%)2 Fund Name


Fund

BlackRock Global Funds -

Asian Growth Leaders Fund

X2

Luxembourg

UCITS 0.08% -


Fund

Sanlam Multi Strategy Fund

Irish UCITS - -


Fund

Sanlam Centre American

Select Equity Fund Irish UCITS - -


Fund Sanlam Active UK Fund

Irish UCITS - -


Fund Sanlam Global Value Fund

Irish UCITS - -


Fund Sanlam US Dividend Fund

Irish UCITS - -


Fund Sanlam Japan Equity Fund

Irish UCITS - -


Fund Sanlam Global Bond Fund

Irish UCITS - -


Fund

Sanlam Global Property

Fund Irish UCITS - -


Fund

Satrix World Equity Tracker



Fund

Satrix Europe (ex UK)

Equity Tracker Fund Irish UCITS - -


Fund

Satrix North America Equity

Tracker Fund Irish UCITS - -


Fund

Satrix UK Equity Tracker


1 % of net assets

2 % of the gains in net assets above the benchmark


185


16 Underlying collective investment schemes (continued)

Year ended 31 December 2018 (continued)



Scheme Type


Fees (%)1 Incentive Fees (%)2 Fund Name


BlackRock Global Funds –


X2

Luxembourg

UCITS 0.08% -


SPW Global High Quality

Institutional Irish UCITS - -

Sanlam Global Equity Fund Sanlam Active UK Fund Irish UCITS - -

Sanlam Global Equity Fund Sanlam Global Value Fund Irish UCITS - -


Satrix Europe (ex UK) Equity



Satrix UK Equity Tracker



Satrix North America Equity


Sanlam Global Equity Fund Sanlam US Dividend Fund Irish UCITS - -


Satrix World Equity Tracker



Sanlam Centre American


Sanlam Global Equity Fund Sanlam Japan Equity Fund Irish UCITS - -


Institutional Euro Liquidity



Institutional Sterling Liquidity



Institutional US Dollar Liquidity



Fund

Aberdeen Global - World

Equity Fund

Luxembourg

UCITS 0.15% -


Fund Sanlam World Equity Fund Irish UCITS 0.75% -


Fund

Schroder International

Selection Fund- Global Equity

Luxembourg

UCITS 0.10% -


Fund

Denker Global Emerging

Markets Fund Irish UCITS 1.35% -

1 % of net assets



186






Scheme Type



Sanlam BIFM Global Fixed

Income Fund

PIMCO Funds Global

Investors Series Plc – Inc Irish UCITS 0.55% -


Income Fund Sanlam Global Bond Fund Irish UCITS 0.60% -


Balanced Fund Orbis Optimal SA Fund

Bermudan

OEIC 1.00% 20.00%


Balanced Fund

Sanlam Strategic Bond

Fund Irish UCITS 0.35% -


Balanced Fund Sanlam Multi-Strategy Fund

Irish UCITS 0.75% -

Counterpoint Global Equity Fund Brookfield Property Partners ETF - -

Counterpoint Global Equity Fund Icahn Enterprises Lp ETF - -


Fundsmith Emerging

Equities Trust Plc ETF 1.25% -

Counterpoint Global Equity Fund Royce Micro Cap Trust Inc ETF 0.93% -

Counterpoint Global Equity Fund Royce Value Trust Inc ETF 0.46% -


Managed Flexible Fund Brookfield Property Partners ETF - -


Managed Flexible Fund Icahn Enterprises Lp ETF - -


Managed Flexible Fund iShares MSCI ACWI ETF ETF 0.33% -


Managed Flexible Fund iShares MSCI Word ETF ETF 0.24% -


Managed Flexible Fund Royce Value Trust Inc ETF 0.46% -


Managed Flexible Fund Royce Micro Cap Trust Inc ETF 0.93% -


Fund

Adelphi European Select

Equity Fund Irish UCITS 1.00% -


Fund

Contrarius Global Equity

Fund Ltd Irish UCITS 1.25% -


Fund

Coronation Global Emerging

Market Fund Irish UCITS 0.85% -


Fund Comgest Growth Plc

UK UCITS 1.00% -


Fund

Orbis SICAV - Global Equity

Fund

Bermudan

OEIC 1.50% -


Fund

Orbis SICAV - Japan Equity

Fund

Bermudan

OEIC 1.50% -

1 % of net assets 2 % of the gains in net assets above the benchmark


187






Scheme Type



ARX Pangaia Global Managed Fund Orbis Optimal USD Fund

Bermudan OEIC 0.50% -


Orbis SICAV – Emerging Markets Equity Fund

Bermudan OEIC % -


PIMCO Low Average Duration Fund Irish UCITS 0.46% -


iShares JP Morgan Emerging Market Bond Fund ETF 0.39% -

ARX Pangaia Global Managed Fund SPDR Gold Trust ETF 0.40% -

Excalibur Global Managed Fund Baillie Gifford Global Discovery Fund UK UCITS 0.45% -


Ballie Gifford UK & Balanced Funds ICVC Management UK UCITS 0.75% -

Excalibur Global Managed Fund Blackrock Developed Real Estate Index Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund BNY Mellon Global Funds Plc Long Term Global Irish UCITS 0.75% -

Excalibur Global Managed Fund BNY Mellon Global Real Return USD Fund Irish UCITS 0.75% -

Excalibur Global Managed Fund Coronation Global Strategic USD Income Fund Irish UCITS 0.70% -

Excalibur Global Managed Fund Dodge & Cox Worldwide Funds Plc Global Stock Irish UCITS 0.60% -

Excalibur Global Managed Fund Fidelity Funds - World Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Lazard Global Active Funds PLC Emerging Market Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Legg Mason Western Asset Macro Opportunities Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Legg Masson Brandywine Global Opportunistic Fund Irish UCITS 0.65% -

Excalibur Global Managed Fund Orbis Optimal SA Fund Ltd Bermudan

OEIC 1.00% -

Excalibur Global Managed Fund PineBridge Global Dynamic Asset Allocation Fund Irish UCITS 0.75% -

Excalibur Global Managed Fund RWC Funds RWC Global Horizon Fund

Luxembourg UCITS 0.80% -


Nedgroup Investments Funds PLC Core Global Fund Irish UCITS 0.25% -

Excalibur Global Managed Fund Vanguard Investment Series Plc - Global Stock Irish UCITS 0.00% -



188






Scheme Type



Northstar Global Flexible Fund Institutional Cash Series PLC ETF % -

Northstar Global Flexible Fund The Blackstone Group LP ETF % -

Northstar Global Flexible Fund iShares 1 to 3 Year Treasury

Bond ETF ETF 0.15% -

Northstar Global Flexible Fund SPDR Bloomberg Barclays

Global Aggregate Bond ETF 0.10% -

Absa Global Best Blend Fund Conventum Lyrical Fund ETF 0.75% -

Absa Global Best Blend Fund Investec Global Strategy

Fund - Global Strategic

Equity Fund I

Luxembourg

UCITS 1.49% -

Absa Global Best Blend Fund Mundane World Leaders

Fund

Cayman

OEIC 1.20% -

Absa Global Best Blend Fund Schroder International

Selection Fund QEP Global

Core

Luxembourg

UCITS

0.28% -


Selection Fund US Dollar

Liquidity C

Luxembourg

UCITS

0.20% -


Selection Fund Global Multi-

Asset

Luxembourg

UCITS

1.24% -


Selection Fund Global

Recovery C

Luxembourg

UCITS

0.75% -

Absa Global Access Fund Schroder International

Selection Fund Global Equity

Alpha

Luxembourg

UCITS

1.50% -


Selection Fund QEP Global

Core

Luxembourg

UCITS

0.28% -


Selection Fund US Dollar

Liquidity

Luxembourg

UCITS

0.20% -


Selection Fund Global Multi-

Asset Income

Luxembourg

UCITS

1.24% -


Selection Fund Global

Recovery

Luxembourg

UCITS

1.50% -



189



The table below and overleaf summarises the collective investment schemes in which the Funds of the Company hold investments at 31 December 2017 and details the investment management fees and incentive fees incurred relating to these collective investment schemes:

Year ended 31 December 2017



Scheme Type



Sanlam Global Balanced Fund BlackRock Global Funds -


X2

Luxembourg

UCITS 0.08% -

Sanlam Global Balanced Fund Sanlam Centre American


Sanlam Global Balanced Fund Sanlam Active UK Fund Irish UCITS - -

Sanlam Global Balanced Fund Sanlam Global Value Fund Irish UCITS - -

Sanlam Global Balanced Fund Sanlam Multi-Strategy Fund Irish UCITS - -

Sanlam Global Balanced Fund Sanlam Stable Global Fund Irish UCITS - -

Sanlam Global Balanced Fund Sanlam Global Bond Fund Irish UCITS - -

Sanlam Global Balanced Fund Sanlam Global Property


Sanlam Global Balanced Fund Sanlam Japan Equity Fund Irish UCITS - -

Sanlam Global Balanced Fund Satrix Europe (ex UK)


Sanlam Global Balanced Fund Satrix North America Equity


Sanlam Global Balanced Fund Satrix UK Equity Tracker


Sanlam Global Balanced Fund Satrix World Equity Tracker


Sanlam Global Equity Fund BlackRock Global Funds -


X2

Luxembourg

UCITS 0.08% -

Sanlam Global Equity Fund Sanlam Centre American


Sanlam Global Equity Fund Sanlam Active UK Fund Irish UCITS - -

Sanlam Global Equity Fund Sanlam Global Value Fund Irish UCITS - -

Sanlam Global Equity Fund Sanlam Stable Global Fund Irish UCITS - -

Sanlam Global Equity Fund Sanlam US Dividend Fund Irish UCITS - -

1 % of net assets



190






Scheme Type



Sanlam Global Equity Fund Sanlam Japan Equity Fund Irish UCITS - -

Sanlam Global Equity Fund Satrix Europe (ex UK)


Sanlam Global Equity Fund Satrix North America Equity


Sanlam Global Equity Fund Satrix World Equity Tracker


Sanlam Global Equity Fund Sanlam FOUR Enhanced

Income Fund Irish UCITS - -

Sanlam Global Equity Fund Sanlam Global High Quality


Sanlam Global Liquidity Fund BlackRock Institutional

Cash Series-US$ Liquidity



Cash Series-Euro Liquidity



Cash Series-Sterling

Liquidity Fund Irish UCITS 0.10% -


Fund

Aberdeen Global - World

Equity Fund

Luxembourg

UCITS 0.15% -


Fund

Sanlam World Equity Fund

Irish UCITS 0.75% -


Fund

Schroder International

Selection Fund - Global

Equity

Luxembourg

UCITS 0.10% -


Fund

Denker Global Emerging

Markets Fund Irish UCITS 1.35% -


Income Fund

PIMCO Funds Global

Investors Series Plc - Global

High Yield Bond Fund Irish UCITS 0.55% -


Income Fund

Sanlam Global Bond Fund

Irish UCITS 0.60% -

Mpile Global Equity Fund BlackRock Global Funds -

Global Equity Income Fund

Luxembourg

UCITS 0.75% -

Mpile Global Equity Fund Orbis SICAV - Global Equity

Fund

Luxembourg

UCITS 2.50% -

Mpile Global Equity Fund Sanlam Stable Global Fund Irish UCITS 0.75% - 1 % of net assets



191






Scheme Type



Mpile Global Equity Fund Satrix World Equity Tracker



Balanced Fund

Orbis Optimal SA Fund Bermudan

OEIC 1.00% 20.00%


Balanced Fund

Sanlam Strategic Bond



Balanced Fund

Sanlam Multi-Strategy Fund

Irish UCITS 0.75% -



Counterpoint Global Equity Fund SPDR Gold Trust ETF 0.40% -

Counterpoint Global Equity Fund Vaneck Vectors Global Spin

Off ETF ETF 0.55% -



Counterpoint Global Equity Fund SPDR Gold Trust ETF 0.40% -

Counterpoint Global Equity Fund Vaneck Vectors Global Spin

Off ETF ETF 0.55% -



iShares Dev Markets

Property Yield Fund UCITS ETF 0.59% -



iShares Currency Hedged

MSCI Japan ETF 0.53% -



Schroder European Fund

REIT 1.50% -



iShares Global Government

Bond UCITS ETF ETF 0.20% -



IShares JP Morgan USD

EM Bond ETF 0.45% -



iShares MSCI ACWI ETF

ETF 0.33% -



iShares Msci Word ETF

ETF 0.24% -



Royce Micro Cap Trust Inc

ETF 0.93% -



Royce Value Trust Inc

ETF 0.46% -



SPDR Gold Trust

ETF 0.40% -

1 % of net assets



192






Scheme Type





Vaneck Vectors Global Spin

Off ETF 0.55% -


Fund

Adelphi European Select

Equity Fund Irish UCITS 1.00% -


Fund

Contrarius Global Equity

Fund Ltd Irish UCITS 1.25% -


Fund

Coronation Global Emergin

Market Fund Irish UCITS 0.85% -


Fund

Comgest Growth Emerging

Markets USD Irish UCITS 1.00% -


Fund

Odey Investment Fund PLC

Pan European Fund Irish UCITS 1.50% -


Fund

Orbis Equity Funds - Global

Equity Fund

Luxembourg

UCITS 1.50% 1.00%


Fund

Orbis Japan Equity USD

Fund

Luxembourg

UCITS 1.50% 1.00%


Fund

Orbis Optimal USUSD Fund Bermudan

OEIC 0.50% 1.00%


Fund

Orbis SICAV - Asia ex-

Japan Equity Fund

Luxembourg

UCITS 1.50% 1.00%


Fund

PIMCO Low Average

Duration Fund Irish UCITS 0.46% 0%


Fund

iShares JP Morgan

Emerging Market Bond

Fund ETF 0.39% -


Fund

SPDR Gold Trust

ETF 0.40% -

Excalibur Global Managed Fund Baillie Gifford Overseas

Growth Funds ICVC Global UK UCITS 0.45% -

Excalibur Global Managed Fund Ballie Gifford UK &

Balanced Funds ICVC

Management UK UCITS 0.75% -

Excalibur Global Managed Fund Blackrock Developed Real

Estate Index Sub Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund BNY Mellon Global Funds

Plc Long Term Global Irish UCITS 0.75% -

Excalibur Global Managed Fund BNY Mellon Global Real

Return USD Fund Irish UCITS 0.75% -

Excalibur Global Managed Fund Coronation Global Strategic

USD Income Fund Irish UCITS 0.70% -



193






Scheme Type



Excalibur Global Managed Fund Dodge & Cox Worldwide

Funds Plc Global Stock Irish UCITS 0.60% -

Excalibur Global Managed Fund Fidelity Funds - World Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Lazard Global Active Funds

PLC Emerging Market Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Legg Mason Western Asset

Macro Opportunities Fund Irish UCITS 1.00% -

Excalibur Global Managed Fund Legg Masson Brandywine

Global Opportunistic Fund Irish UCITS 0.65% -

Excalibur Global Managed Fund Orbis Optimal SA Fund Ltd Bermudan

OEIC 1.00% 20.00%

Excalibur Global Managed Fund PineBridge Global Dynamic

Asset Allocation Fund Irish UCITS 0.75% -

Excalibur Global Managed Fund RWC Funds RWC Global

Horizon Fund

Luxembourg

UCITS 0.80% -

Excalibur Global Managed Fund Schroder International

Selection Fund Qep Global

Luxembourg

UCITS 0.28% -

Excalibur Global Managed Fund Vangaurd Investment Series

Plc - Global Stock Irish UCITS 0% -

Northstar Global Flexible Fund BlackRock Institutional

Cash Series US Dollar

Liquidity Irish UCITS 0.20% -

Northstar Global Flexible Fund BlackRock Institutional

Cash Series Sterling

Liquidity Irish UCITS 0.13% - 1 % of net assets


17 Securities lending activities

Securities lending activities are conducted through SAMI pursuant to the Securities Lending Agency Agreement. In this arrangement, the Company transfers securities to a counterparty, in return for which it is agreed that securities of the same kind and amount should be transferred back to the Company at a later date. The arrangement has the substance of a loan of the Company’s securities in return for collateral. The collateral held is in a form required by the Central Bank of Ireland. Aggregate income arising from securities lending activities consists of fees charged to a counterparty, where the counterparty has provided collateral other than cash, plus net realised income derived from investments of cash collateral less any rebate payable to a counterparty on cash collateral less any commissions or similar transactions costs.


194


17 Securities lending activities (continued)

Pursuant to the Securities Lending Agency Agreement, income from securities lending activities is split in the ratio of 70:30 in favour of the Company, with SAMI receiving 30% as remuneration for their services.

The Company received income as follows under the terms of those agreements for the year ended 31 December 2018:


Year ended

31/12/2018

USD

Income 49,298

Year ended

31/12/2018

USD

Aggregate value of securities on loan at the period end 730,720

Aggregate value of collateral held in respect of the loans 1,111,516

Collateral % 152.11%

The Company received income as follows under the terms of those agreements for the year ended 31 December 2017:


USD

Income 4,162

At 31 December 2017, Analytics International Flexible Fund had no securities on loan.

18 Risk arising from financial instruments

The Funds of the Company maintain positions in a variety of financial instruments in accordance with each Fund's investment objective and policies. In addition, certain of the Funds invest into various underlying funds. Investments in underlying funds expose those Funds to various types of risk that are associated with the financial investments and markets of the underlying funds. The significant types of financial risks to which all the Funds of the Company are exposed are market risk, price risk, liquidity risk and counterparty credit risk. Asset allocation is determined by the Funds’ Investment Managers, who manage the allocations of assets to achieve the investment objectives. Divergence from target asset allocations and the composition of the portfolio is monitored by the Funds’ Investment Managers. The performance of each of the Funds, together with various risk measures, are discussed by the Board of Directors and its appointed advisors on a quarterly basis. The Manager enters into Agreements with the Investment Managers and Investment Allocation Managers as applicable. The Agreements include details on the parameters within which the Funds must be managed.


195


18 Risk arising from financial instruments (continued) The Agreements include items such as maximum exposure to cash/asset classes, exposure to a single issuer or Fund and the relevant rules for RIAIF's as set out in the AIF Rulebook of the Central Bank. The Investment Managers are required to report to the Manager on a monthly basis that they have managed the portfolio in accordance with the Investment Management Agreement and that no breaches occurred during the month. If, during the course of the month, the Investment Manager does detect a breach, they must notify the Manager immediately with the details of the breach, its cause, the impact on the Fund and their proposed action to resolve the breach. The Manager will engage with the Investment Manager to determine what action should be taken (this can include putting the Fund back to the position it would have been in if the breach had not occurred). The Depositary will also be consulted to ensure they are in agreement with the proposed remedy. Each Investment Manager appointed by SAMI will have its own risk management policies and procedures in place, which may differ from Investment Manager to Investment Manager, and these will be considered by SAMI at the time of assessing the Investment Manager and in regular periodic assessments of the Investment Manager. Varieties of methods are used to monitor market risk and are described below.

(i) Market Risk The potential for changes in the fair value or cash flows of the Fund’s investment is referred to as market risk. Categories of market risk include currency risk, interest rate risk and other price risk.

The Company’s market risk strategy is driven by the Company’s underlying Funds’ investment objectives. The AIFM has instructed the Manager to manage each of the risks in accordance with policies and procedures in place.

(a) Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risks may result from exposures to changes in spot prices, forward prices and volatilities of currency rates.

The Funds may invest in financial investments and enter into transactions denominated in currencies other than their functional currency. The Funds are also exposed to the currency risk of the underlying funds in which they invest. Consequently, the Funds may be exposed to risks that the exchange rate of their functional currency, relative to other foreign currencies, may change in a manner that has an adverse effect on the value of that portion of the Funds’ assets or liabilities denominated in currencies other than the functional currency. The Investment Managers are allowed to invest in derivatives to manage currency risk.

When considering the asset allocation of each Fund, the relevant Investment Manager will consider the likely movement of foreign exchange rates in investment decisions. The Investment Manager may use financial derivative instruments, such as forward currency contracts, to hedge against adverse movements in foreign exchange rates as disclosed in the supplements of each Fund. Each Investment Manager must report on a monthly basis to SAMI that the portfolio or Fund is managed in accordance with the supplement, the Investment Management Agreement and guidelines, where applicable. The tables overleaf set out the Funds’ exposure to foreign currency risk and sensitivity analysis.


At 31 December 2017, Analytics International Flexible Fund did not have an exposure to foreign

currency risk.


196


18 Risk arising from financial instruments (continued)

(i) Market Risk (continued) (a) Currency Risk (continued)


31 December

2018

USD

% movement

Effect of movement

against

Net Assets and Profit*

31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Euro 27 (0.86) (1) 0.00

Total 27 (1) 0.00

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Euro 28 (2.65) (1) 0.00

Total 28 (1) 0.00 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.


197


18 Risk arising from Financial Instruments (continued)

(i) Market Risk (continued)

(a) Currency Risk (continued)


31 December 2018

USD

%

movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Australian Dollar 10,979,420 1.71 187,740 1.28

Canadian Dollar 4,601,683 0.39 17,987 0.54

Danish Krone 1,688,433 (0.76) (12,784) 0.20

Euro 10,248,097 (0.86) (87,821) 1.20

Pound Sterling 5,840,946 (0.76) (44,394) 0.68

Hong Kong Dollar 346,554 0.21 743 0.04

Isreali New Shekel 16,304 0.23 37 0.00

Japanese Yen 10,020,660 (0.54) (54,471) 1.17

Norweigan Kroner 831,979 0.40 3,309 0.10

New Zealand Dollar 35,406 1.19 422 0.00

Swedish Krona 2,585,684 1.57 40,502 0.30

Singapore Dollar 1,226,970 (0.69) (8,450) 0.14

Swiss Franc 2,937,624 0.11 3,227 0.34

Total 51,359,940 46,047 5.99

31 December 2017

USD

%

movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Australian Dollar 19,433,849 (1.52) (295,450) 1.61

Canadian Dollar 11,754,862 (1.03) (120,635) 0.97

Danish Krone 851,009 (1.00) (8,516) 0.07

Euro 17,567,103 (2.65) (466,231) 1.46

Pound Sterling 7,383,550 2.44 180,326 0.61

Hong Kong Dollar 6,253,508 0.19 11,947 0.52

Isreali New Shekel 1,941,225 (3.13) (60,777) 0.16

Japanese Yen 15,175,678 1.54 233,231 1.26

Norweigan Kroner 970,867 (0.83) (8,095) 0.08

New Zealand Dollar 315,346 (1.00) (3,140) 0.03

Swedish Krona 4,016,261 (0.13) (5,335) 0.33

Singapore Dollar 2,642,730 (0.02) (488) 0.22

Swiss Franc 2,156,320 (1.34) (28,854) 0.18

Total 90,462,308 (572,017) 7.50

*The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.


198






31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Euro 6,751,995 (0.86) (57,861) 45.04

Pound Sterling 2,191,916 (0.76) (16,659) 14.62

Total 8,943,911 (74,521) 59.66

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Euro 7,134,162 (2.65) (189,341) 45.86

Pound Sterling 2,313,191 2.44 56,494 14.87

Total 9,447,353 (132,847) 60.73



At 31 December 2017, NFB Global Balanced Fund of Funds did not have an exposure to foreign

currency risk.


199






31 December 2018

USD

% movement

Effect of movement

against

Net Assets and

Profit*

31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Canadian Dollar 2,004,377 0.39 7,835 1.01

Danish Krone 2,030,163 (0.76) (15,371) 1.02

Euro 19,681,901 (0.86) (168,665) 9.93

Hong Kong Dollar 6,861,085 0.21 14,706 3.46

Japanese Yen 6,682,348 (0.54) (36,324) 3.37

Norwegian Kroner 53,738 0.40 214 0.03

Pound Sterling 10,727,032 (0.76) (81,530) 5.41

Singapore Dollar 1,093,423 (0.69) (7,531) 0.55

South Korean

Won 1,624,998 (0.43) (6,907) 0.82

Swedish Krona 392,171 1.57 6,143 0.20

Swiss Franc 2,946,139 0.11 3,237 1.49

Thai Baht 839,782 (1.83) (15,353) 0.42

Total 54,937,157 (299,546) 27.71

31 December 2017

USD

% movement

Effect of movement

against

Net Assets and

Profit*

31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Canadian Dollar 1,893,834 (1.03) (19,436) 0.61

Danish Krone 638,440 (1.00) (6,389) 0.21

Euro 26,297,867 (2.65) (697,945) 8.49

Hong Kong Dollar 7,561,027 0.19 14,445 2.44

Japanese Yen 10,767,025 1.54 165,476 3.48

Norwegian Kroner 2,149,698 (0.83) (17,924) 0.69

Pound Sterling 14,932,416 2.44 364,690 4.82

Singapore Dollar 643,257 (0.02) (119) 0.21

South Korean

Won 3,875,112 (1.40) (54,359) 1.25

Swedish Krona 832,232 (0.13) (1,105) 0.27

Swiss Franc 4,249,772 (1.34) (56,867) 1.37

Thai Baht 1,190,289 (2.02) (24,033) 0.38

Total 75,030,969 (333,566) 24.22



200





Sanlam BIFM Global Fixed Income Fund At 31 December 2018 and 31 December 2017, Sanlam BIFM Global Fixed Income Fund did not have an exposure to foreign currency risk arising from its investments.


31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Euro (168) (0.86) 1 0.00

Total (168) 1 0.00

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Euro 9,808,068 (2.65) (260,306) 26.47

Total 9,808,068 (260,306) 26.47



31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone (2,142) (0.76) 16 0.00

Euro 5,794,271 (0.86) (49,654) 6.65

Hong Kong Dollar 2,382,267 0.21 5,106 2.73

Norwegian Kroner 7 0.40 - 0.00

Pound Sterling 11,198,895 (0.76) (85,116) 12.85

Swiss Franc 2,105,516 0.11 2,313 2.42

Total 21,478,814 (127,335) 24.65



201






31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone 59,002 (1.00) (590) 0.07

Euro 7,275,307 (2.65) (193,087) 8.41

Hong Kong Dollar 1,299,150 0.19 2,482 1.50

Norwegian Kroner 7 (0.83) - -

Pound Sterling 12,098,057 2.44 295,467 13.99

Swiss Franc 2,714,022 (1.34) (36,317) 3.14

Total 23,445,545 67,955 27.11

APS Global Flexible Fund of Funds At 31 December 2017, APS Global Flexible Fund of Funds did not have an exposure to foreign currency risk arising from its investments.


31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Canadian Dollar 102,156 0.39 399 0.34

Euro 441,161 (0.86) (3,781) 1.48

Pound Sterling 267,077 (0.76) (2,030) 0.90

Hong Kong Dollar (92) 0.21 - 0.00

Total 810,302 (5,411) 2.72

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Canadian Dollar 1,714 (1.03) (18) 0.01

Euro 648,327 (2.65) (17,207) 2.16

Pound Sterling 434,153 2.44 10,603 1.45

Hong Kong Dollar 4,130 0.19 8 0.01

Total 1,088,324 (6,614) 3.63 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.


202






31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone 546,271 (0.76) (4,136) 2.62

Euro - (0.86) - 0.00


Pound Sterling 1,708,164 (0.76) (12,983) 8.18

South African Rand 2,352,927 0.86 20,327 11.27

Swiss Franc 740,718 0.11 814 3.55

Total 5,347,990 4,022 25.62

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone 2,164,669 (1.00) (21,662) 7.72

Euro 9,870 (2.65) (262) 0.04


Pound Sterling 3,590,822 2.44 87,698 12.80

South African Rand 2,851,838 (4.79) (136,634) 10.17

Swiss Franc 961,902 (1.34) (12,871) 3.43

Total 9,579,011 (83,731) 34.16



203






31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Euro 13,965 (0.86) (120) 0.14

Pound Sterling - (0.76) - 0.00

Hong Kong Dollar 12,032 0.21 26 0.12

Total 25,997 (94) 0.26

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Euro 693,812 (2.65) (18,414) 9.43

Pound Sterling 277,214 2.44 6,770 3.77

Hong Kong Dollar 15,590 0.19 30 0.21

Total 986,616 (11,614) 13.41



31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone 163,646 (0.76) (1,239) 0.62

Euro 4,709,510 (0.86) (40,358) 17.86

Japanese Yen 1,603,649 (0.54) (8,717) 6.08

Pound Sterling 1,949,667 (0.76) (14,818) 7.39

Swiss Franc 838,989 0.11 922 3.18

Total 9,265,461 (64,210) 35.13



204






31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Danish Krone 145,522 (1.00) (1,456) 0.55

Euro 7,105,775 (2.65) (188,587) 26.80

Japanese Yen 1,366,328 1.54 20,999 5.15

Pound Sterling 1,705,977 2.44 41,665 6.43

Swiss Franc 943,860 (1.34) (12,630) 3.56

Total 11,267,462 (140,009) 42.49



31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Pound Sterling 8,025,858 (0.76) (61,000) 19.06

Total 8,025,858 (61,000) 19.06

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Pound Sterling 6,740,583 2.44 164,623 18.82

Total 6,740,583 164,623 18.82



205






31 December

2018

USD

% movement

Effect of movement

against


31 December 2018

USD

Concentration

of foreign

exchange

exposure

%

Euro 1,136,295 (0.86) (9,738) 3.67

Pound Sterling 3,319,043 (0.76) (25,226) 10.72

South African Rand 452,232 0.86 3,907 1.46

Swiss Franc 424,566 0.11 466 1.37

Total 5,332,136 (30,591) 17.22

31 December

2017

USD

% movement

Effect of movement

against


31 December 2017

USD

Concentration

of foreign

exchange

exposure

%

Euro 1,272,227 (2.65) (33,765) 5.40

Pound Sterling 4,991,079 2.44 121,896 21.17

South African Rand 414,427 (4.79) (19,856) 1.76

Swiss Franc 1,706,330 (1.34) (22,833) 7.24

Total 8,384,063 45,442 35.57


Absa Global Best Blend Fund At 31 December 2018, Absa Global Best Blend Fund did not have an exposure to foreign currency risk arising from its investments.

Absa Global Access Fund At 31 December 2018, Absa Global Access Fund did not have an exposure to foreign currency risk arising from its investments.


206




(b) Interest Rate Risk Interest rate risks may result from exposures to changes in the level, slope and curvature of the yield curve, the volatility of interest rates, mortgage prepayment speeds and credit spreads. Interest rates are determined by factors of supply and demand in the international money markets, which are influenced by macro-economic factors, speculation and central bank and government intervention. Fluctuations in short-term and/or long-term interest rates may affect the value of the Funds.

All Funds are potentially subject to interest rate risk on their cash balances and through their investments in debt instruments as at 31 December 2018 and 31 December 2017.

Analytics International Flexible Fund The interest rate profile of the financial assets of Analytics International Flexible Fund as at 31 December 2017 is as follows:

Interest Rate Characteristics Total Exposure

2017 Effect of 1.00% movement in interest

rates on Net Asset and Profit* USD USD

Floating rate financial assets 22,922 229

*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.

Sanlam Global Balanced Fund The interest rate profile of the financial assets of Sanlam Global Balanced Fund as at 31 December 2018 and 31 December 2017 was as follows:



rates on Net Asset and Profit*

USD USD

Floating rate financial assets 762,301 7,623



rates on Net Asset and Profit*

USD USD




The interest rate profile of the financial assets of Sanlam Global Equity Fund as at 31 December 2018

and 31 December 2017 was as follows:



rates on Net Asset and Profit USD USD

Floating rate financial assets 4,681,512 46,815 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.


207



(i) Market Risk (continued) (b) Interest Rate Risk (continued)

Sanlam Global Equity Fund (continued)






The interest rate profile of the financial assets of Sanlam Global Liquidity Fund as at 31 December

2018 and 31 December 2017 was as follows:








Floating rate financial assets 408,054 4,081 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.


The interest rate profile of the financial assets of NFB Global Balanced Fund of Funds as at 31

December 2017 was as follows:




Floating rate financial assets 28,248 282 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.


208





The interest rate profile of the financial assets of Sanlam BIFM World Equity Fund as at 31 December





Floating rate financial assets 1,469,697 14,697






The interest rate profile of the financial assets and liabilities of Sanlam BIFM Global Fixed Income

Fund as at 31 December 2018 and 31 December 2017 was as follows:




Floating rate financial liabilities (50,654) (507)






The interest rate profile of the financial assets of Mpile Global Equity Fund as at 31 December 2018

and 31 December 2017 was as follows:







209




Mpile Global Equity Fund (continued)







The interest rate profile of the financial assets of Sanlam Private Wealth Global Balanced Fund as at

31 December 2018 and 31 December 2017 was as follows:










The interest rate profile of the financial assets of APS Global Flexible Funds of Funds as at 31

December 2017 was as follows:




Floating rate financial assets 28,628 286 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.


210




(b) Interest Rate Risk (continued)


The interest rate profile of the financial assets of Counterpoint Global Equity Fund as at 31 December












The interest rate profile of the financial assets of Independent Global Flexible Fund as at 31 December












The interest rate profile of the financial assets of Counterpoint Global Owner Managed Flexible Fund

as at 31 December 2018 and 31 December 2017 was as follows:







211





Counterpoint Global Owner Managed Flexible Fund (continued)












Interest bearing securities 1,357,986 13,580

Total 5,466,529 54,665





Interest bearing securities 2,486,110 24,861

Total 6,329,361 63,294 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly.













212

















The interest rate profile of the financial assets of Absa Global Best Blend Fund as at 31 December

2018 was as follows:






The interest rate profile of the financial assets of Absa Global Access Fund as at 31 December 2018

was as follows:






213

NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS

(CONTINUED) for the year ended 31 December 2018



(c) Other Price Risk Price risk is the risk that (a) the value of a financial investment will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or any factor affecting financial investments traded in the market or (b) the risk that the valuations of the underlying Funds into which the Funds invest does not reflect the true value because the values are not verified by an independent third party, or the values of these underlying funds are not available at the valuation points of the funds.

Other price risks may result from exposures to changes in the prices and volatilities of individual equities, equity baskets, equity indices, and commodities.

Each Fund is required to be managed in accordance with the prospectus, Fund supplement and the RIAIF requirements as set out in the AIF rulebook of the Central Bank of Ireland. Each Investment Manager is required to report to the Manager each month that the respective Funds have been managed in accordance with the Investment Management Agreement agreed between them.

As the Funds’ financial investments are carried at fair value with fair value changes recognised in the

Statement of Comprehensive Income, all changes in market conditions will directly affect net assets

attributable to holders of redeemable participating shares. The Fund’s quantitative exposure to price

risk at the reporting date is represented by the financial assets and liabilities at fair value through profit

or loss which are analysed in the schedule of investments of each Fund on pages 89 to 131.

The following table demonstrates Management’s best estimate of the sensitivity of net assets and profit to

change in the relevant benchmark index 5 year annualised return.


214

NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS

(CONTINUED) for the year ended 31 December 2018



(c) Other Price Risk (continued)

Benchmark

Index 5 year

annualised

return

2018

Benchmark

Index 5 year

annualised

return

2017

Total Effect*

31 December

2018

Total Effect*

31 December

2017

Fund name Benchmark index name % % USD USD

Sanlam Global

Balanced Fund

65% MSCI World/35%

Barclays Capital Global

Aggregate Bond 3.47 7.84 4,626,532 12,998,453

Sanlam Global

Equity Fund MSCI World 4.55 11.63 38,776,464 12,998,453

Sanlam Global

Liquidity Fund

Composite benchmark (45%

US/ 40% EU/ 15% GB) 0.96 1.23 142,144 186,633

Sanlam BIFM World

Equity Fund** MSCI World Index 4.55 8.82 8,981,303 27,137,025

Sanlam BIFM Global

Fixed Income Fund**


Aggregate 1.08 1.24 407,787 553,625

Mpile Global

Equity Fund** MSCI World n/a 7.41 n/a 2,749,475

Sanlam Private

Wealth Global

Balanced Fund

60% MSCI World / 30%


Agg. Bond / 10% 7 Day

USD LIBID 3.18 6.39 2,053,718 3,737,807

Counterpoint Global

Equity Fund** MSCI World 3.55 8.71 881,740 2,406,462

Independent Global

Flexible Fund** MSCI World 6.46 16.52 1,350,766 4,386,922

Counterpoint Global

Owner Managed

Flexible Fund**

65% MSCI World / 35%

Bloomberg Sovereign

Bond Index 3.61 11.13 230,117 587,898

ARX Pangaia Global

Managed Fund** US CPI 2.10 2.11 420,972 478.579

Excalibur Global

Managed Fund**

Global Asset Allocation

Flexible Sector 3.32 10.12 1,383,525 3,586,159

Northstar Global

Flexible Fund** MSCI World 0.89 7.36 273,005 1,520,768

Absa Global Best

Blend Fund**

ASISA Global MA Flexible

Sector Average (9.96) n/a (17,718,555) n/a

Absa Global Access

Fund**

ASISA Global MA Flexible

Sector Average (10.28) n/a (6,478,033) n/a

*Total effect is the impact on Net Assets and Profit, calculated as the total exposure (as detailed in Note 8) multiplied by the Benchmark Index 5 year annualised return, but actual results could differ significantly. **This Fund has not been in operation for 5 years. The benchmark index annualised return is calculated from the date of inception of the Fund.


215



(ii) Liquidity Risk

Liquidity risk is defined as the risk that a Fund will encounter difficulty in meeting obligations associated

with financial liabilities that are settled by delivering cash or another financial asset. Exposure to liquidity

risk increases because of the possibility that a Fund could be required to redeem its shares earlier than

expected. The Funds are exposed to cash redemptions of its redeemable shares on a daily basis. Shares

are redeemable at the holder’s option based on the Fund’s net asset value per share at the time of

redemption calculated in accordance with the Fund’s constitution. The Funds, therefore, are exposed to

the liquidity risk of meeting shareholder redemptions at any time.

The majority of the Funds’ financial investments are either listed securities or collective investment schemes trading on a regular basis which are readily realisable. All Investment Managers are required to keep appropriate levels of cash or near cash investments to meet normal day to day liquidity demands, for example from normal levels of investor redemptions and to meet expense payments as they fall due. In addition, the Manager performs daily monitoring of cash balances and reports low or overdrawn cash balances to Investment Managers.

In the event of significant requests for redemption of shares resulting in the Funds having to liquidate investments more rapidly than otherwise desirable, in order to raise cash for the redemptions and achieve a market position appropriately reflecting a smaller asset base, the Board of Directors has the ability to levy a dilution charge so that the investors remaining in the Funds are not disadvantaged.

The Company manages its obligation to repurchase the shares when required to do so and its overall

liquidity risk as follows:

• The Articles provide that the Company cannot affect the repurchase of Shares, if after payment of any account in connection with such repurchase, the Net Asset Value of the issued share capital would be equal or less than the minimum amount as specified in the supplement of each Fund.

• The Directors are entitled to limit the number of shares of any Fund repurchased on any dealing day to Shares representing 10% of the total Net Asset Value of Shares of that Fund in issue on that Dealing Day. In this event, the limitation will apply pro-rata so that all shareholders wishing to have shares of the Fund repurchased on that Dealing Day realize the same proportion of such Shares and Shares not repurchased, but which would have otherwise been repurchased, will be carried forward for repurchase on the next Dealing Day and will be dealt with in priority (on a rateable basis) to repurchase request received subsequently. If requests for repurchases are carried forward, the Registrar and Transfer Agent will inform the shareholders affected.

• The Articles contain special provisions where a repurchase request received from a Shareholder would result in more than 5 per cent of the Net Asset Value of Shares of any Fund being repurchased by the Company on any Dealing Day. In such a case the Company may satisfy all or part of the repurchase request by a distribution of investments of the relevant Fund in specie provided that such a distribution would not be prejudicial to the interests of the remaining Shareholders of that Fund. The Shareholder however may require the Company to sell such investments on his behalf and pay him the proceeds of sale less any costs incurred in connection with such sale.

• The Directors may at any time temporarily suspend the calculation of the Net Asset Value of any Fund and the issue, repurchase and conversion of Shares and the payment of repurchase proceeds during inter alia any period during which any transfer of Funds involved in the realisation or acquisition of investments of the relevant Fund cannot, in the opinion of the Directors, be effected at normal prices or rates of exchange or any period during which the Directors are unable to repatriate Funds required for the purpose of making payments due on repurchase of Shares in the relevant Fund, or any period when the Directors consider it to be in the best interest of the Company. Where possible, all reasonable steps will be taken to bring any period of suspension to an end as soon as possible.


216



(ii) Liquidity Risk (continued)

The Fund’s policy is to satisfy redemption requests by the following means:

1. Withdrawal of cash deposits;

2. Disposal of highly liquid assets (i.e. short-term, low-risk debt investments);

3. Disposal of other investments;

4. The Fund may borrow on a temporary basis in order to fund redemptions; and

5. Searching for new investors.

The Fund invests primarily in marketable securities and other financial instruments, which under normal

market conditions are readily convertible to cash. In addition, the Fund’s policy is to maintain sufficient

cash and cash equivalents to meet normal operating requirements and expected redemption requests.

Trading limits and collateral arrangements limit the extent to which liabilities can be incurred by the Fund.

It is the Fund’s policy that the Investment Manager monitors the Fund’s liquidity position on a daily basis

and that the Board of Directors reviews it on a quarterly basis.

For the avoidance of doubt none of the assets of the Company are subject to special liquidity

arrangements.

The following tables summarise the maturity profile of the Funds’ financial liabilities. Balances due within

6 months equal their carrying amounts, as the impact of discounting is significant. The table also analyses

the maturity profile of the Funds’ financial assets in order to provide a complete view of the Funds’

contractual commitments and liquidity.

Analytics International Flexible

Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 22,922 - 22,922

Other debtors - 7,569 7,569

Total Financial Assets 22,922 7,569 30,491

Accrued expenses - (29,254) (29,254)

Administration fees accrued - (1,237) (1,237)

Total Financial Liabilities - (30,491) (30,491)


217




Sanlam Global Balanced Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 762,301 - 762,301

Financial assets at fair value through profit

and loss 133,412,078 - 133,412,078


Total Financial Assets 134,174,379 61,330 134,235,709



Amounts payable on repurchase of shares - (417,132) (417,132)

Redeemable participating shares (133,540,684) - (133,540,684)

Total Financial Liabilities (133,540,684) (695,025) (134,235,709)

Sanlam Global Balanced Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 359,440 - 359,440


and loss 165,900,139 - 165,900,139









218




Sanlam Global Equity Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 4,681,512 - 4,681,512

Accrued Income - 112,312 112,312


and loss 851,344,001 - 851,344,001

Other debtors - 254,792 254,792


Accrued expenses - (1,232,733) (1,232,733)


Amounts payable on purchase of securities - (26,350) (26,350)


Total Financial Liabilities (854,944,007) (1,448,610) (856,392,617)

Sanlam Global Equity Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 4,500,747 - 4,500,747

Accrued Income - 79,536 79,536


and loss 1,203,646,467 - 1,203,646,467


Total Financial Assets 1,208,147,214 87,245 1,208,234,459



Redeemable participating shares (1,207,299,630) - (1,207,299,630)

Total Financial Liabilities (1,207,299,630) (934,829) (1,208,234,459)


219




Sanlam Global Liquidity Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 245,115 - 245,115


and loss 14,789,010 - 14,789,010

Other debtors - 308 308

Total Financial Assets 15,034,125 308 15,034,433



Amounts payable on repurchase of shares - (262) (262)



Sanlam Global Liquidity Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 408,054 - 408,054

Amount receivable on issue of shares - 13,227 13,227


and loss 15,159,137 - 15,159,137







220





2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 28,248 - 28,248




Administration fees accrued - (856) (856)


Sanlam BIFM World Equity Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 1,469,697 - 1,469,697

Accrued income - 98,112 98,112


and loss 197,186,068 - 197,186,068

Other debtors - 119,648 119,648






Sanlam BIFM World Equity Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 1,890,796 - 1,890,796


Amounts receivable on issue of shares - 491,261 491,261


and loss 307,615,119 - 307,615,119





AIFM fee accrued - (20,716) (20,716)

Amounts payable on repurchase of

securities - (20,833) (20,833)




221





2018 Due on demand

Due within

6 months Total

USD USD USD


and loss 37,778,786 - 37,778,786



Bank overdraft (50,654) - (50,654)






2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 176,278 - 176,278


and loss 44,493,269 - 44,493,269





AIFM fee accrued - (754) (754)




222




Mpile Global Equity Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 23,088 - 23,088







Mpile Global Equity Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 1,385 - 1,385


and loss 37,086,754 - 37,086,754








223






Due within

6 months Total

USD USD USD

Cash 22,781,608 - 22,781,608



and loss 64,527,111 - 64,527,111









Due within

6 months Total

USD USD USD

Cash 27,907,850 - 27,907,850




and loss 58,491,998 - 58,491,998




Administration fees accrued - - -

AIFM fee accrued - (10,728) (10,728)




224




APS Global Flexible Fund of Funds 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 28,628 - 28,628




AIFM fee accrued - (3) (3)


Counterpoint Global Equity Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 4,903,484 - 4,903,484



and loss 24,847,085 - 24,847,085







Counterpoint Global Equity Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 2,724,971 - 2,724,971


Amounts receivable on sale of securities - 561,241 561,241


and loss 27,617,999 - 27,617,999









225




Independent Global Flexible Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 20,074 - 20,074


Amounts receivable on sale of securities - 24,873 24,873


and loss 20,898,330 - 20,898,330








Independent Global Flexible Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 1,916,998 - 1,916,998



and loss 26,559,229 - 26,559,229




AIFM fee accrued - (4,664) (4,664)





226





Flexible Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 3,997,997 - 3,997,997



and loss 6,371,078 - 6,371,078








Flexible Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 2,091,068 - 2,091,068



and loss 5,281,633 - 5,281,633








227




ARX Pangaia Global Managed Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 4,108,543 - 4,108,543


Amounts receivable on sale of securities - 2,246,994 2,246,994



and loss 20,046,300 - 20,046,300


Total Financial Assets 24,154,843 2,285,052 26,439,895






ARX Pangaia Global Managed Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 3,843,251 - 3,843,251



and loss 22,681,487 - 22,681,487







228




Excalibur Global Managed Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 524,864 - 524,864


and loss

41,672,428 - 41,672,428







Excalibur Global Managed Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 399,373 - 399,373


and loss 35,436,351 - 35,436,351








229




Northstar Global Flexible Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 218,364 - 218,364



and loss 30,825,358 - 30,825,358









Northstar Global Flexible Fund 2017 Due on demand

Due within

6 months Total

USD USD USD

Cash 2,920,481 - 2,920,481



and loss 20,654,600 - 20,654,600








230




Absa Global Best Blend Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 6,665,927 - 6,665,927


and loss 177,920,281 - 177,920,281







Absa Global Access Fund 2018 Due on demand

Due within

6 months Total

USD USD USD

Cash 1,311,486 - 1,311,486


and loss 63,043,316 - 63,043,316








231



(iii) Credit Risk

Credit risk is the risk that a counterparty to a financial asset will fail on a commitment that it has entered

into with the Company. A Fund is subject to the possibility of insolvency, bankruptcy or default of a

counterparty with which the Fund, as appropriate, trades such instruments. This could result in substantial

losses to the Fund.

Each Fund will be exposed to credit risk on the counterparties with which it trades in relation to OTC derivative contracts. Such instruments are not afforded the same protections as may apply to participants trading futures or options on organised exchanges, such as the performance guarantee of an exchange clearing house. Investment Managers who enter into transactions involving financial derivatives are

required to abide by the Prospectus and the AIF Rulebook and any breaches must be reported to the Manager.

The various Investment Managers to the Funds have adopted procedures to reduce credit risk related to their dealings with counterparties in respect of Bonds and Collective Investment Schemes. Before transacting with any counterparty, the Investment Manager or its affiliates evaluate both creditworthiness and reputation by conducting a credit analysis of the party, their business and reputation. The reputational risk of approved counterparties is then monitored on an ongoing basis, including periodic reviews of financial statements and interim financial reports as needed.

In order to reduce exposure to credit losses, Master Netting Agreements (“MNAs”) are entered into with OTC derivative counterparties, excluding those counterparties executing only spot foreign exchange contracts. While MNAs do not result in an offset of reported assets and liabilities because transactions are generally settled on a gross basis, MNAs do provide for the reduction of credit risk on favourable contracts to the extent of the value of unfavourable contracts in the event of default as all amounts with the counterparty are terminated and settled on a net basis.

A Fund may enter into securities lending, reverse repurchase agreements and repurchase agreements provided that it is within the conditions and the limits laid down by the Central Bank or the purpose of generating income for the Company with an acceptable level of risk. Such arrangements are those where the Company or the Depositary delivers securities to a third party in return for which it is agreed those securities or securities of the same kind and amount should be redelivered to the Company or the Depositary at a later date.

Margin accounts and amounts due from sale/purchase of securities are with the Company’s

counterparties. The credit ratings of these counterparties are as follows:

Prime broker/Depositary 2018 Rating 2017 Rating

Brown Brothers Harriman Trustee Services (Ireland) Limited A+ A+

At 31 December 2018 and 31 December 2017, the following financial assets were exposed to counterparty credit risk: investments in debt securities, derivative financial assets and other receivables. The fair value of financial assets best reflects the maximum counterparty credit risk exposure at the reporting date.


232



(iii) Credit Risk (continued) The Company measures credit risk and expected credit losses on financial assets measured at amortised cost using probability of default, exposure at default and loss given default. Management consider both historical analysis and forward-looking information in determining any expected credit loss. At 31 December 2018 and 2017, all cash and broker balances are held with counterparties with a credit rating of A+ or higher and can be settled within 1 week. Management consider the probability of default to be close to zero as these instruments have a low risk of default and the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Company.

The maximum exposure to credit risk as at the reporting date can be analysed as follows in the tables below and overleaf for the years ended 31 December 2018 and 31 December 2017:

Collective Collective Investment Investment

Schemes Total Schemes Total

31 December 2018

31 December 2018

31 December 2017

31 December 2017

Sanlam Global Balanced Fund USD USD USD USD

Great Britain - - 29,854,381 29,854,381

Ireland 130,293,321 130,293,321 100,297,789 100,297,789

Luxembourg 3,118,757 3,118,757 3,831,673 3,831,673

United States - - 31,916,296 31,916,296

Total 133,412,078 133,412,078 165,900,139 165,900,139



31 December

2018

31 December

2018

31 December

2017

31 December

2017

Sanlam Global Equity Fund USD USD USD USD

Australia 8,248,403 8,248,403 8,985,055 8,985,055

Great Britain - - 310,356,306 310,356,306

Ireland 697,085,342 697,085,342 455,182,261 455,182,261

Luxembourg 26,950,345 26,950,345 24,024,572 24,024,572

United States - - 207,681,529 207,681,529

Total 732,284,090 732,284,090 1,006,229,723 1,006,229,723



31 December 2018

31 December 2018

31 December 2017

31 December 2017

Sanlam Global Liquidity Fund USD USD USD USD

Ireland 14,789,010 14,789,010 15,159,137 15,159,137

Total 14,789,010 14,789,010 15,159,137 15,159,137


233



(iii) Credit Risk (continued)



31 December 2018 31 December 2018

31 December

2017

31 December

2017

Independent Global Flexible Fund USD USD USD USD

Great Britain 603,218 603,218 - -

Total 603,218 603,218 - -



31 December

2018

31 December

2018

31 December

2017

31 December

2017

Sanlam BIFM World Equity Fund USD USD USD USD

Ireland 45,246,201 45,246,201 50,512,030 50,512,030

Luxembourg 72,722,074 72,722,074 109,597,422 109,597,422

United States - - 23,437,062 23,437,062

Total 117,968,275 117,968,275 183,546,514 183,546,514

Collective

Collective

Investment Investment


31 December

2018

31 December

2018

31 December

2017

31 December

2017 Sanlam BIFM Global Fixed Income Fund USD USD USD USD

Ireland 37,778,786 37,778,786 44,493,269 44,493,269

Total 37,778,786 37,778,786 44,493,269 44,493,269

Collective

Collective

Investment Investment


31 December

2018

31 December

2018

31 December

2017

31 December

2017

Mpile Global Equity Fund USD USD USD USD

Great Britain - - 8,608,530 8,608,530

Ireland - - 9,428,003 9,428,003

Luxembourg - - 19,050,221 19,050,221

Total - - 37,086,754 37,086,754


234






31 December 2018

31 December 2018

31 December

2017

31 December

2017

Sanlam Private Wealth Global Balanced Fund USD USD USD USD

Bermuda 729,606 729,606 813,848 813,848

United States 14,034,822 14,034,822 11,392,130 11,392,129

Total 14,764,428 14,764,428 12,205,978 12,205,978

Exchange

Exchange

Traded Traded

Funds Total Funds Total

31 December

2018

31 December

2018

31 December

2017

31 December

2017

Counterpoint Global Equity Fund USD USD USD USD

United States - - 1,384,729 1,384,729

Total - - 1,384,729 1,384,729

Exchange

Traded Funds Total

Exchange Traded Funds Total

31 December

2018

31 December

2018

31 December

2017

31 December

2017 Counterpoint Global Owner Managed Flexible Fund USD USD USD USD

Great Britain - - 34,203 34,203

Ireland - - 702,652 702,652

United States 1,394,680 1,394,680 3,115,103 3,115,103

Total 1,394,680 1,394,680 3,851,958 3,851,958


Schemes Bonds


31 December 2018

31 December 2018

31 December 2018

31 December

2018 ARX Pangaia Global Managed Fund USD USD USD USD

Bermuda 3,234,509 - - 3,234,509

European Union - - - -

Ireland 4,302,308 - - 4,302,308

Luxembourg 2,769,367 - - 2,769,367

United States - 1,357,986 2,036,741 3,394,727

Total 10,306,184 1,357,986 2,036,741 13,700,911


235





Schemes Bonds


31 December 2017

31 December 2017

31 December 2017

31 December

2017 ARX Pangaia Global Managed Fund USD USD USD USD

Bermuda 1,082,489 - - 1,082,489

European Union 1,113,326 - - 1,113,326

Ireland 4,074,353 - - 4,074,353

Cayman Islands 609,205 - - 609,205

Luxembourg 4,620,136 - - 4,620,136

United States - 2,486,110 1,625,572 4,116,682

Total 11,499,509 2,486,110 1,625,572 15,611,191


Schemes


31 December

2018

31 December

2018

31 December

2018

Excalibur Global Managed Fund USD USD

Bermuda 2,606,879 - 2,606,879

Great Britain 5,872,694 - 5,872,694

Ireland 28,260,466 641,356 28,901,822

Luxembourg 4,291,033 - 4,291,033

Total 41,031,072 641,356 41,672,428


Schemes Total

31 December

2017

31 December

2017

Excalibur Global Managed Fund USD USD

Bermuda 2,173,782 2,173,782

Great Britain 5,433,502 5,433,502

Ireland 22,995,347 22,995,347

Luxembourg 4,833,720 4,833,720

Total 35,436,351 35,436,351


236




Collective Exchange

Investment Traded

Schemes Funds Total

31 December

2018

31 December

2018

31 December

2018

Northstar Global Flexible Fund USD USD USD

Ireland 4,960,937 1,995,454 6,956,391

United States 1,111,317 3,161,983 4,273,300

Total 6,072,254 5,157,437 6,956,391


Schemes Total

31 December

2017

31 December

2017

Northstar Global Flexible Fund USD USD

Ireland 4,396,958 4,396,958

Total 4,396,958 4,396,958

Collective

Investment

Schemes Total

31 December

2018

31 December

2018

Absa Global Best Blend Fund USD USD

Cayman Islands 14,100,191 14,100,191

Luxembourg 163,820,090 163,820,090

Total 177,920,281 177,920,281


Schemes Total

31 December

2018

31 December

2018

Absa Global Access Fund USD USD

Luxembourg 63,043,316 63,043,316

Total 63,043,316 63,043,316


237




Percentages of debt by rating agency category The Company mitigates credit risk arising on debt instruments by investing primarily in credit instruments that have received an investment grade credit rating from recognised ratings agencies such as S&P, Moody’s and Fitch.

At 2018, one fund (2017: one fund) has exposure to debt instruments. Details of the credit ratings of these debt instruments are disclosed in the table below. The Fund that has exposure to debt instruments is ARX Pangaia Global Managed Fund.


2018 2017

AA 33.20% 18.05%

AAA 66.80% 81.95%

Total Debt 100.00% 100.00%


238


19 Net asset value per share

The tables below detail the Net Asset Value, Net Asset Value per Share and the number of shares in issue

of each Share Class of the Company. The information provided is as per last Dealing Day prior to 31

December. As such the Net Asset Value may differ to the financial reporting Net Asset Value at 31

December 2018.

31 December 31 December 31 December

2018 2017 2016


Share Class A

Net Asset Value - USD49,263,632 USD47,877,653

Number of Shares in Issue - 3,744,393 4,349,557

Net Asset Value per Share - USD13.1566 USD11.0075


Share Class A

Net Asset Value USD1,640,519 USD6,628,635 USD6,234,939

Number of Shares in Issue 1,169,403 4,308,752 4,665,406

Net Asset Value per Share USD1.4029 USD1.5384 USD1.3364

Share Class B

Net Asset Value USD274,607 USD3,626,569 USD3,399,472

Number of Shares in Issue 157,809 1,912,598 2,077,224


Share Class C





Share Class A

Net Asset Value USD771,723 USD1,083,435 USD981,321

Number of Shares in Issue 610,801 754,583 816,466


Share Class B

Net Asset Value USD372,643 USD4,921,664 USD4,835,436

Number of Shares in Issue 261,764 3,061,969 3,617,121


Share Class C

Net Asset Value USD837,519,256 USD1,200,819,533 USD1,161,389,138




239


19 Net asset value per share (continued)


2018 2017 2016

Sanlam Global Equity Fund (continued)

Share Class D

Net Asset Value USD16,396,799 - -

Number of Shares in Issue 19,077,368 - -

Net Asset Value per Share USD0.8595 - -


Share Class A




Share Class B

Net Asset Value USD56 USD109 USD101

Number of Shares in Issue 100 100 100


Share Class C





Share Class A


Number of Shares in Issue - 889,769 873,523


Share Class B


Number of Shares in Issue - 366,820 436,230



240




2018 2017 2016


Share Class A




Share Class B





Share Class A




Share Class B




Share Class C





Share Class A

Net Asset Value - USD125 USD104

Number of Shares in Issue - 100 100


Share Class B

Net Asset Value - USD125 USD104

Number of Shares in Issue - 100 100


Share Class C





241




2018 2017 2016


Share Class A




Share Class B




Share Class C -

Net Asset Value USD5,246,433 USD3,071,843 -

Number of Shares in Issue 5,546,404 2,996,881 -

Net Asset Value per Share USD0.9459 USD1.0250 -


Share Class A




Share Class B





Share Class B





Share Class A




Share Class B





242




2018 2017 2016

Independent Global Flexible Fund (continued)

Share Class C


Number of Shares in Issue 1,144,009 1,277,290 613,048


Share Class D





Share Class B





Share Class A




Share Class B

Net Asset Value USD980 USD103 -

Number of Shares in Issue 970 91 -


Share Class D





Share Class B





Share Class A





243



20 Cross liability of funds

The Directors are not aware of any such existing or contingent liability at 31 December 2018 or 31

December 2017. The Company’s amended Articles provide for segregated liability between the

various Funds.

21 Contingent liabilities

There were no contingent liabilities as at 31 December 2018 or 31 December 2017.


2018 2017 2016

Northstar Global Flexible Fund (continued)

Share Class B




Share Class C




Share Class D




Share Class E





Share Class C





Share Class C





244


22 Significant events during the year

During the year, the following Funds launched/closed:

Name Status

Absa Global Best Blend Fund Active – launched on 19 July 2018 Absa Global Access Fund Active – launched on 26 July 2018 Mpile Global Equity Fund Closed on 25 October 2018

There were no other significant events during the year.

23 Significant events since the end of the year

Effective from 13 February 2019, Counterpoint Global Balance Fund changed its name to Counteproint Global Owner Managed Flexible Fund.

Effective 22 February 2019, Sanlam Investment Management (Pty) Limited was appointed as

Investment Manager of BIFM Global Fixed Income Fund and Sanlam BIFM World Equity Fund following

the resignation of Sanlam Investments UK Limited.

Up to the date of approval of the financial statements, there were no other material subsequent events

affecting the Company which necessitate disclosure or revision of the figures included in the financial

statements.

24 Auditors fee Auditor remuneration for the period was EUR 90,488 excluding VAT (2017: EUR 92,008 excluding VAT). Auditor remuneration related solely to the audit of the financial statements for the year ended 31 December 2018. There were no other assurance services, tax advisory services or other non-audit services provided by the auditor of the Company.

25 Off balance sheet arrangements

The Company was not party to off balance sheet arrangements for the twelve months from 1 January 2018 to 31 December 2018 or 1 January 2017 to 31 December 2017.

26 Approval of audited financial statements The financial statements were approved by the Board of Directors on 24 April 2019.


245

SECURITIES FINANCING TRANSACTIONS REGULATION ("SFTR") DISCLOSURES Sanlam Global Equity Fund 1. Global Data

Proportion of Securities and Commodities on Loan USD

Total Lendable Assets Excluding Cash and Cash Equivalents 851,344,001

Securities and Commodities on Loan 730,720

% 0.08%

Assets Engaged in SFTs USD

Fund Assets Under Management 856,392,617

Absolute Value of Assets Engaged in Securities Lending 730,720

% 0.08%

2. Concentration Data Top Ten Largest Collateral Issuers

Name and Value of Collateral and Commodities Received USD

United States of America Treasury Notes 221,956

Swiss Confederation Bonds 221,423

French Republic Bonds 444,527

German Republic Bonds 223,610

Total 1,111,516

Top Ten Counterparties

Name and Gross Volume of Outstanding Transactions USD

Securities Lending

Citigroup Global Markets Limited 730,720 3. Aggregate Transaction Data Type, Quality and Currency of Collateral

Securities Lending Type Currencies USD

Sovereign Bonds Investment Grade EUR 668,137

Sovereign Bonds Investment Grade CHF 221,423

US Treasury Notes Investment Grade USD 221,956

Total 1,111,516


246

SECURITIES FINANCING TRANSACTIONS REGULATION ("SFTR") DISCLOSURES (CONTINUED) Sanlam Global Equity Fund (continued) 3. Aggregate Transaction Data (continued) Maturity Tenor of Collateral (Remaining Period to Maturity)

Less than 1 Day

1 Day to 1

Week

1 Week to 1

Month 1 to 3

Months 3 Months to 1 Year

Above 1 Year

Open Maturity Total

Type USD USD USD USD USD USD USD USD

Securities Lending - - - - 222,288 889,228 - 1,111,516

Counterparty Details

Type Country of

establishment Settlement & Clearing USD

Securities Lending UK Tri-party 1,111,516

Maturity Tenor of SFTs (Remaining Period to Maturity)

Less than 1 Day

1 Day to 1

Week

1 Week to 1

Month 1 to 3

Months 3 Months to 1 Year

Above 1 Year

Open Maturity Total

Type USD USD USD USD USD USD USD USD

Securities Lending - - - - - - 730,720 730,720

4. Re-use of Collateral Re-use of Collateral Received The Fund does not re-use collateral received. Cash Collateral Reinvestment Returns The Fund has no returns on cash collateral. 5. Safekeeping of Collateral Received

Names and Value of Custodians Safekeeping Collateral USD

Brown Brothers Harriman & Co 1,111,516

Number of Custodians Safekeeping Collateral 1

6. Safekeeping of Collateral Granted The Fund does not borrow stock from counterparties therefore no collateral has been granted. 7. Securities Lending Income and Costs Information in respect to income, costs and fees incurred by the Fund in relation to securities lending activities is set out in Note 17 to the financial statements.


247

SAMI REMUNERATION POLICY (UNAUDITED) Purpose and objective Sanlam Asset Management Ireland Limited (“SAMI”) has implemented a remuneration policy (the “SAMI Remuneration Policy”) in line with the provisions of Article 13 of the Directive 2011/61/EC on Alternative Investment Fund Managers (the “AIFMD”), in particular Annex II, and of the European Securities and Markets Authority’s (“ESMA’s”) “Guidelines on sound remuneration policies under the AIFMD” (the “ESMA Guidelines”) and related guidance as may be issued from time to time.

The purpose of the SAMI Remuneration Policy is to provide clear direction and policy regarding SAMI’s remuneration policies and practices consistent with the principles set out in the European Union (Alternative Investment Fund Managers) Regulations 2013 (the “AIFM Regulations”). The SAMI Remuneration Policy also complies with the overarching remuneration philosophy of the Sanlam Investments Cluster (the “Cluster Policy”) with local adjustments to adhere to regulations applicable in Ireland.

The objective of the SAMI Remuneration Policy and the Cluster Policy is to support SAMI’s and the Sanlam Investments Cluster’s business objectives, and the Sanlam Group corporate values, including prudent risk management, by attracting, retaining and motivating the key talent to achieve these outcomes. The SAMI Remuneration Policy has been designed to be consistent with and promote sound and effective risk management, not encourage excessive or inappropriate risk-taking, eliminate conflicts of interest and be cognisant of SAMI’s Treating Customers Fairly and Conduct Risk policies.

Design In the design of its Remuneration Policy, SAMI has also taken into account the nature, scale and complexity of its business. In determining the range of activities undertaken, SAMI has given due consideration to the number of funds under management, the type of investments, the investment strategies, the investment location, the distribution models and the investor base. Due consideration has also been given to the resources available to SAMI and the resources and expertise of the various third parties engaged to support SAMI and carry out certain functions on its behalf. The SAMI Remuneration Policy applies to those categories of staff, including senior management, risk takers, control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profiles of SAMI or of the Alternative Investment Funds (“AIFs”), including the Sanlam Global Funds Plc (the “Company”), to which SAMI has been appointed as AIFM. The disclosures in this report are made in respect of the SAMI Remuneration Policy and how it applies to the Company and to the persons to whom portfolio and risk management activities have been delegated by SAMI. SAMI has the facility to appoint delegates to carry out discretionary portfolio management activity on its behalf in accordance with its outsourcing policy (the “Investment Managers”). Disclosures are made in accordance with the AIFMD, the European Commission Delegated Regulation supplementing the AIFMD and the ESMA Guidelines.

Risk management SAMI recognises the important role played by sound risk management in protecting stakeholders. Moreover, SAMI acknowledges that inappropriate remuneration structures could in certain circumstances result in situations whereby individuals assume more risk on the relevant institution’s behalf than they would have done had they not been remunerated that way. The SAMI Remuneration Policy aligns the risk taking behaviour of employees and officers with SAMI’s risk appetite and the risk appetite in respect of each of the funds.


248

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Identified Staff The SAMI Remuneration Policy applies to “Identified Staff”. Under the ESMA Guidelines, Identified Staff are defined as follows:

• Categories of staff, including senior management, risk takers, Control Functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the AIFM’s risk profile or the risk profiles of the AIF that it manages and categories of staff of the entity/entities to which portfolio management or risk management activities have been delegated by the AIFM, whose professional activities have a material impact on the risk profiles of the AIF that the AIFM manages.

• Any other employee/persons whose total remuneration is within the same remuneration bracket as senior managers (e.g. other high earning staff) and who can exert a material impact on the risk profile of the AIFM or the AIFs under management.

The list of Identified Staff maintained by SAMI is subject to regular review (at least annually by the Board of Directors of SAMI) and is formally reviewed in the event of, but not limited to:

• Organisational changes;

• New business initiatives;

• Changes in role responsibilities; and

• Revised regulatory direction. Fixed and variable remuneration In deciding the mix between fixed and variable remuneration, SAMI is mindful of the need to ensure that the basic pay of staff is adequate to remunerate the professional services rendered taking into account, inter alia, the level of education, the degree of seniority and the level of expertise and skills required. SAMI recognises that variable remuneration is an important tool to incentivise staff. It also gives SAMI or the Investment Managers (and therefore the Company) flexibility such that, in years in which SAMI or the Investment Managers perform poorly, variable remuneration may be reduced or eliminated. In some circumstances, however, variable remuneration, if inappropriately structured, can lead to excessive risk taking as employees may be incentivised to keep taking risk to maintain or increase their variable remuneration. Accordingly, there is a clear and well defined pay-for-performance philosophy that seeks to attract, retain and motivate employees who are accountable and whose behaviours are aligned with SAMI’s strategic goals, good conduct risk practices and Treating Customers Fairly principles. As an AIFM and UCITS Management Company, SAMI’s revenues are based on a percentage of the NAVs of the Funds, including that of the Company. As a result, its revenues may be more volatile than other types of businesses. SAMI may also be paid expenses and other revenue from the Funds to which it provides services. Variable remuneration allows SAMI to reduce the risk that its capital base is eroded due to the need to pay fixed remuneration costs should trading revenues decline. Owing to the nature of the contracts SAMI enters into with its Directors and their Designated Persons, the ratio of variable pay to fixed pay is considered appropriate but is kept under review. Decision-making process The level of variable remuneration within SAMI is dependent on the achievement of individual goals, overall individual performance, the financial results of SAMI, the Sanlam Investments Cluster, the Sanlam Group and the achievement of Treating Customers Fairly outcomes.


249

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Decision-making process (continued) Individual goals, consistent with shareholder goals, are set at the beginning of the year and performance is measured through Sanlam’s performance management process. Goals set shall be financial and non-financial in nature. Mistakes resulting in unforced and avoidable losses may be penalised. Variable remuneration paid is based on the previous year’s financial results and individual performance outcomes as determined as a result of a formal review of performance carried out in January following the end of the performance year. This timing allows full year financial results to be considered along with other non-financial goals and objectives. Individuals are not involved in setting their own remuneration. Pro-rata payments apply to new appointments based on time in the job over the financial year. Ratings are used to differentiate and reward individual performance – but do not pre-determine compensation outcomes. Compensation decisions remain discretionary and are made as part of the year end compensation process. Compensation practices do not provide undue incentives for short term planning or short term financial rewards, do not reward unreasonable risk. Short and long-term strategic objectives are measured and rewarded to mitigate unreasonable or excessive risk-taking and provide balance.

Oversight of the Investment Managers’ remuneration framework As AIFM, SAMI ensures that the persons to whom portfolio and/or risk management activities have been delegated are subject to remuneration arrangements that are equally as effective as those provisions of the AIFMD. As the discretionary portfolio management activity has been delegated to the Investment Managers, SAMI shall ensure those staff of Investment Managers who engage in discretionary portfolio management activity are subject to a remuneration framework consistent with the provisions of AIFMD. SAMI will assess on a regular basis the appropriateness of the Investment Managers’ remuneration framework, the applicable policies and procedures in this regard for continuing compliance with AIFMD, and ensure that updates are made as necessary in line with the applicable regulations. SAMI shall determine, on a case by case basis, whether or not the scope of the mandate granted to a particular delegate is such that the relevant staff of the Investment Manager constitute “Identified Staff” for the purposes of SAMI’s Remuneration Policy.

Proportionality SAMI, as AIFM, may take a proportionate approach, both in respect of how the SAMI Remuneration Policy shall apply to itself and to any relevant delegates (e.g. Investment Managers), in order to ensure compliance in a manner and to the extent that is appropriate to the size and internal organisation of the relevant entity and the nature, scope and complexity of its activities. In assessing what is proportionate, SAMI shall have regard to the provisions contained in the ESMA Guidelines and will focus on the combination of all the criteria mentioned therein.

Quantitative remuneration disclosure SAMI is required under the AIFMD to make quantitative disclosures of remuneration. The AIFMD requirements on quantitative remuneration disclosures apply only to full performance periods and are first applicable to the first full performance period following the authorisation of the AIFM. The financial year and performance period of SAMI ends on 31 December which coincides with the financial year of the Company. Accordingly the quantitative remuneration disclosures provided in respect to SAMI as AIFM relate to the year ended 31 December 2018. The disclosures set out below are made in line with SAMI’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops, SAMI may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. The table below provides an overview of the following:

• Aggregate total remuneration paid by SAMI to all employees;

• Aggregate total remuneration paid by SAMI to senior management and other Identified Staff who have a material impact on the risk profile of the Company*; and

• The allocation of aggregate total remuneration paid by SAMI to senior management and other Identified Staff which is attributable to the Company**.


250

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Quantitative remuneration disclosure (continued) 2018 2018 2018 2018 Average

Number of beneficiaries

Fixed remuneration paid

Variable remuneration paid

Carried interest paid

by the AIF USD USD USD USD Total remuneration paid by SAMI during financial year 13 1,482,651 983,255 Nil Total remuneration paid to employees who have a material impact on the risk profile of the Company:

Senior management (including executives) 6 1,036,233 856,876 Nil Other Identified Staff* N/A N/A N/A Nil Allocation of total remuneration paid to the employees attributable to the Company**: Senior management (including executives) 6 239,915 198,389 Nil Other risk takers/other identified staff N/A N/A N/A Nil

2017 2017 2017 2017 Average

Number of beneficiaries

Fixed remuneration paid

Variable remuneration paid

Carried interest paid

by the AIF USD USD USD USD Total remuneration paid by SAMI during financial year 13 1,377,274 754,108 Nil Total remuneration paid to employees who have a material impact on the risk profile of the Company:

Senior management (including executives) 6 932,941 678,767 Nil Other Identified Staff* N/A N/A N/A Nil Allocation of total remuneration paid to the employees attributable to the Company**: Senior management (including executives) 6 246,454 179,309 Nil Other risk takers/other identified staff N/A N/A N/A Nil *There are no Other Identified Staff of the AIFM, in addition to Senior Management of the AIFM, who would have a material impact on the risk profile of the Company. **As Identified Staff of the AIFM typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the AIFM and across the wider Sanlam Group, the allocation of aggregate total remuneration paid which is attributable to the Company is calculated based on total assets of the Company which are managed by SAMI as a proportion of the total assets under the management of SAMI at 31 December 2018 and 2017.


251

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Remuneration Disclosures in respect to Identified Staff of Delegates The AIFM has delegated discretionary portfolio management responsibilities to various Investment Managers, many of whom may have financial year ends and performance periods that do not coincide with the financial year and performance period end of SAMI or the AIFs. Accordingly, the provision of meaningful and comparable information in respect to Identified Staff of Delegates for the financial year ended 31 December 2018 is limited. Notwithstanding the foregoing, the total remuneration for services rendered paid to the AIFM and each Delegate out of the assets of the relevant Fund in respect of this financial year is disclosed in the financial statements.

Delegates with arrangements equally as effective as those under Article 22(2)(e) of the AIFMD

The following Investment Managers, to which investment management activities are delegated in respect to certain Funds of the Company as indicated, are authorised and regulated by the Financial Conduct Authority in the United Kingdom: Investment Management Firm

Funds of the Company to which Investment

Management activities are delegated as at

31.12.2018

Aggregate quantitative information on remuneration for Code staff whose actions have material impact on the

risk profile of the firm* GBP£’000

Sanlam Investments UK Limited Sanlam Global Balanced Fund


1,172

Franklin Templeton Investment

Management Limited (forming

part of Franklin Templeton

Global Investors Limited Group)

Sanlam BIFM World Equity Fund 12,400

ABSA Asset Management (Pty)

Limited (forming part of

Barclays Africa Group Limited)

ABSA Global Best Blend Fund

ABSA Global Access Fund

104,136

*The aggregate remuneration disclosed above for each Investment Management Firm is the latest information disclosed by the respective delegate for the firm as a whole (or the delegate’s group where the relevant information is disclosed at the group level) in accordance with the FCA Remuneration Code and related guidance.

Other Investment Management Delegates

For the following investment management firms, the table below sets out the total amount of remuneration for the financial year, split into fixed and variable remuneration, paid by the delegate to the identified staff of the delegate – and number of beneficiaries - which is linked to the delegated Fund as indicated in the table:


252

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Remuneration Disclosures in respect to Identified Staff of Delegates (Continued)

Other Investment Management Delegates (Continued)

*the pro-rated allocation of fixed and variable remuneration paid to identified staff is calculated based on the aggregate proportionate share of the total AUM of the Investment Manager attributable to the Fund/(s) as at 31 December 2018.

Investment Management Firm

Funds of the Company to which Investment Management activities

are delegated as at 31.12.2018

Total remuneration paid by the delegate in respect to its last

financial year (in US$’000)

Pro-rated fixed remuneration paid to identified staff linked

to Fund/(s) (in US$’000)*

Pro-rated variable

remuneration paid to

identified staff linked to Fund/(s)

(in US$’000)*

Average No. of Identified staff

linked to Fund/(s)

Sanlam Investment Management

(Pty) Limited






23,151 859 120 4

Sanlam Private Wealth (Pty)

Limited


Fund

58,069 1,394 347 2

Counterpoint Boutique (Pty) Ltd Counterpoint Global Equity Fund


Flexible Fund (previously Counterpoint

Global Balanced Fund)

N/A – refer to Note 1 N/A– refer to Note 1 N/A – refer to

Note 1

1

Independent Securities (Pty) Ltd Independent Global Flexible Fund N/A – refer to Note 1 N/A– refer to Note 1 N/A – refer to

Note 1

1

ARX Pangaia (Pty) Ltd ARX Pangaia (Pty) Ltd N/A – refer to Note 1 N/A– refer to Note 1 N/A – refer to

Note 1

1

Excalibur Portfolio Managers

(Pty) Ltd

Excalibur Global Managed Fund N/A – refer to Note 1 N/A– refer to Note 1 N/A – refer to

Note 1

1

Northstar Asset Management

(Pty) Ltd

Northstar Global Flexible Fund N/A – refer to Note 1 N/A– refer to Note 1 N/A – refer to

Note 1

1


253

SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Remuneration Disclosures in respect to Identified Staff of Delegates (Continued)

Other Investment Management Delegates (Continued)

Note 1: The AIFM has further appointed Counterpoint Boutique (Pty) Limited, Independent Securities (Pty) Limited, ARX Pangaia (Pty) Limited, Excalibur Portfolio Managers (Pty) Limited and Northstar Asset Management (Pty) Limited as discretionary portfolio managers to certain of the Company’s AIFs. Each of these entities are authorised and regulated by the Financial Sector Conduct Authority (formerly the Financial Services Board) in South Africa as Category II Financial Services Providers and approved by the Central Bank of Ireland to act as Investment Managers to Irish Collective Investment Schemes. Each of the entities are owner-managed or majority owner-managed investment management firms. Identified Staff of these entities (those that can exert a material influence on an AIF’s risk profile) are the respective owner/managers who only receive fixed remuneration and/or dividend payments resulting from their ownership interests in the respective businesses as a whole with no linkage to the delegated portfolios.


254

LEVERAGE (UNAUDITED) Each Fund may employ leverage and borrow cash strictly in accordance with its stated investment policy or investment strategy. Consistent with its investment objectives and policy, a Fund may utilise a variety of exchange traded and over-the-counter (OTC) derivative instruments such as swaps, options, futures and forward currency transactions as part of its investment policy as more fully set out in each Fund’s Supplement. The use of derivatives may expose a Fund to a higher degree of risk. In particular, derivative contracts can be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard underlying bonds or equities. Leveraged derivative positions can therefore increase a Fund’s volatility. The use of borrowings and leverage has attendant risks and can, in certain circumstances, substantially increase the adverse impact to which a Fund’s investment portfolio may be subject. For the purposes of this disclosure, leverage is any method by which a Fund’s exposure is increased, whether through borrowing cash or securities, or leverage embedded in derivative contracts or by any other means. The AIFMD prescribes two required methodologies, the gross methodology and the commitment methodology (as set out in AIFMD Level 2 Implementation Guidance), for calculating such exposure. These methodologies are briefly summarised below. The commitment methodology takes account of the hedging and netting arrangements employed by a Fund at any given time (purchased and sold derivative positions will be netted where both relate to the same underlying asset). This calculation of exposure includes all Incremental Exposure as well as a fund’s own physical holdings and cash. By contrast, the gross methodology does not take account of the netting or hedging arrangements employed by a Fund. This calculation of exposure includes all Incremental Exposure as well as the Fund’s own physical holdings; cash is however excluded from the calculation under the gross methodology. The AIFMD requires that each leverage ratio be expressed as the ratio between a Fund's total exposure (including any Incremental Exposure) and its net asset value. Using the methodologies prescribed under the AIFMD and implementing legislation, the Company has set a maximum level of leverage, taking into account atypical and volatile market conditions. This maximum level and the actual leverage in respect to each Fund of the Company is disclosed in the table below:

Commitment leverage

as at 31

December

2018

Gross Leverage

as at 31

December

2018

Commitment leverage

as at 31

December

2017

Gross Leverage

as at 31

December

2017

Fund Name

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Analytics

International

Flexible Fund*

N/A N/A N/A N/A N/A N/A N/A N/A

Sanlam

Global

Balanced

Fund

1:1 1:1 1:1 1:1 1:1 1:1 1:1 1:1

Sanlam

Global Equity

Fund

1:1 1:1 2:1 1:1 1:1 1:1 2:1 1:1

Sanlam Global

Liquidity Fund 1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 0.97:1


255

LEVERAGE (UNAUDITED) (CONTINUED)

Commitment leverage

as at 31

December

2018

Gross Leverage

as at 31

December

2018

Commitment leverage

as at 31

December

2017

Gross Leverage

as at 31

December

2017

Fund Name

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Sanlam BIFM

World Equity

Fund

1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 0.99:1

Sanlam BIFM

Global

Fixed Income

Fund

1:1 1:1 1:1 1:1 1:1 1:1 1:1 1:1

NFB Global

Balanced Fund

of Funds*


Mpile Global

Equity Fund** N/A N/A N/A N/A 1:1 1:1 1:1 1:1

Sanlam Private

Wealth Global

Balanced Fund

1:1 1:1 2:1 0.74:1 1:1 1:1 2:1 0.68:1

APS Global

Flexible Fund

of Funds*


Counterpoint

Global Equity

Fund

1:1 1:1 2:1 0.84:1 1:1 1:1 2:1 1:1

Odyssey

Global Equity

Fund*


Independent

Global Flexible

Fund

1:1 1:1 2:1 1:1 1:1 1:1 2:1 0.93:1

Counterpoint

Global Owner

Managed

Flexible

Fund****

1:1 1:1 2:1 0.62:1 1:1 1:1 2:1 0.72:1

Visio Global

Healthcare

Fund***

1:1 N/A 2:1 N/A 1:1 N/A 2:1 N/A

* Analytics International Flexible Fund, APS Global Flexible Fund of Funds, NFB Global Balanced Fund of Funds and Odyssey Global

Equity Fund have terminated and their authorisations as sub-funds of the Company are currently in the process of being revoked.

** Mpile Global Equity Fund terminated during the year ended 31 December 2018.

*** Visio Global Healthcare Fund was authorised by the Central Bank of Ireland during 2016 but has yet to launch.

**** On 13 February 2019, Counterpoint Global Balanced Fund changed its name to Counterpoint Global Owner Managed Flexible Fund


256

LEVERAGE (UNAUDITED) (CONTINUED)

Commitment leverage

as at 31

December

2018

Gross Leverage

as at 31

December

2018

Commitment leverage

as at 31

December

2017

Gross Leverage

as at 31

December

2017

Fund Name

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Maximum

permitted Actual

Excalibur

Global

Managed Fund

1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 0.99:1

Northstar

Global Flexible

Fund

1:1 1:1 1:1 0.99:1 2:1 1:1 0.88:1 0.99:1

ARX Pangaia

Global

Managed Fund

1:1 1:1 2:1 0.77:1 1:1 1:1 2:1 0.86:1

Absa Global

Best Blend

Fund

1:1 1:1 1:1 0.97:1 N/A N/A N/A N/A

Absa Global

Access Fund 1:1 1:1 1:1 0.98:1 N/A N/A N/A N/A


257

NOTICE OF ANNUAL GENERAL MEETING Of

Sanlam Global Funds Plc

NOTICE is hereby given that the annual general meeting of Sanlam Global Funds Plc. will be held at Beech House Beech Hill Road Dublin 4 on 28 June 2019 at 12.00 pm for the following purposes:

1. To receive and consider the financial statements for the year ended 31 December 2018 and the reports of the directors and auditors thereon.

2. To retain the appointed Auditors as proposed by the Board of Directors.

3. To authorise the directors to fix the remuneration of the auditors for the year ending 31 December 2018.

And to transact any other business which may properly be brought before the meeting.

By Order of the Board Sanlam Global Funds Plc

Date: 24 April 2019 Registered Office: Beech House, Beech Hill Road, Dublin 4.

A member entitled to attend and vote may appoint a proxy to attend, speak and vote on his behalf. A

proxy need not be a member of the Company.


258

FORM OF PROXY

Sanlam Global Funds Plc

I/We being a member/members* of the above named Company, hereby appoint or the Chairman of the Meeting (note 1) or failing him Richard Aslett of Beech House, Beech Hill Road, Dublin 4, or failing him Austin O Dowd of Beech House, Beech Hill Road, Dublin 4. as my/our* proxy to vote for me/us* on my/our* behalf at the Annual General Meeting of the Company to be held at Beech House, Beech Hill Road, Dublin 4. on the 28 June 2019 at 12.00 pm. (approx.) or any reconvened meeting thereof. Signature: Date: 2019 Please indicate with an "X" in the spaces below how you wish your vote to be cast.

Resolution 1. To approve the Report of the

Directors and the Financial Statements for the period ended 31 December 2018.

2. To retain the appointed

Auditors as proposed by the Board of Directors.

3. To authorise the Directors to

fix the remuneration of the Auditors.

Notes

1. A member may appoint a proxy of his own choice. If the appointment is made insert the name of the person appointed as proxy in the space provided.

2. If the appointer is a corporation, this form must be under the Common Seal or under the hand of some officer or attorney duly authorised on his behalf.

3. In the case of joint holders, the signature of any one holder will be sufficient, but the names of all the joint holders should be stated.

4. If this form is returned without any indication as to how the person appointed proxy shall vote he will exercise his discretion as to how he votes or whether he abstains from voting.

5. To be valid, this form must be completed and deposited at the Registered Office of the Company not less than 48 hours before the time fixed for holding the meeting or adjourned meeting.

6. Please return forms to [email protected] or fax to +35312053521 before 26 June 2019.

For

Against

mailto:[email protected]


259

Issued by

Sanlam Asset Management (Ireland) Limited Beech Hill House Beech Hill Road Dublin 4 Ireland

s g funds plc - sanlam · 2019-04-29 · building no. 3 tijger park willie van schoor avenue tyger...

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