Slowly but Surely Company In Introduction X-Chequer Fund - - PowerPoint PPT Presentation

Slowly but Surely…

Company In Introduction

X-Chequer Fund Management was established in 2007

• Experience : combined market experience in excess of 50 years
• Continuity : core team been together for over 10 years
• Diversity : team includes CA’s, Actuary, CFA’s
• Scale

: AUM exceed R1bn p.a. over the last 10 years

• Alignment : staff are heavily co-invested
• Consistency : Market Neutral strategy has been nominated as top performing

fund in its category 8 out of the last 11 years

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Why X-Chequer

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How do we Do it it?

• We protect the downside and participate on the upside
• It’s a 5 day game - we go for the singles to build our innings
• Steady outperformance unlocks the power of compounding
• We thrive in volatile and difficult market conditions

“Only the paranoid survive” – Andy Grove

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Protect and Partic icip ipate

70 75 80 85 90 95 100 105 110 115 120 31/12/2017 28/02/2018 30/04/2018 30/06/2018 31/08/2018 31/10/2018 31/12/2018 28/02/2019 XFM M/N JASLSH

+1% +8% +18%

• 17%

Source: Bloomberg & XFM

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Goin ing for the Sin ingles

Source: Sanne Fund Services & XFM

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Power of Compounding giv ives you x5 x5

Source: Sanne Fund Services

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Monthly Returns (Net of Fees) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2006 2.3% 2.5% 0.7% 0.1% 2.0% 1.0% 1.4% 10.3% 2007 0.2% 1.3% 1.6% 1.2% 0.9% 2.9% 2.0% 2.6%

• 1.5%

1.5% 0.5% 1.0% 14.9% 2008 1.3% 4.8% 3.6% 0.3% 2.2% 0.7% 1.0% 1.8%

• 1.0%

2.0% 0.2% 1.8% 20.3% 2009 2.2% 1.5% 2.9% 1.5% 3.0% 1.1% 1.8% 1.2% 1.6% 1.9% 0.4% 1.5% 22.7% 2010 0.1% 1.1% 0.9% 0.9% 0.4% 0.5% 1.3% 1.1% 0.4% 1.3% 0.0% 1.1% 9.5% 2011 0.2% 1.5% 2.0% 1.4% 0.3% 0.5%

• 0.5%

1.2%

• 0.3%

2.4% 1.1% 0.5% 10.8% 2012 0.5% 0.4%

• 0.1%
• 0.2%
• 0.1%

0.5% 0.5% 1.2% 1.3% 0.4% 0.4% 1.8% 6.8% 2013 2.7%

• 0.7%

0.8% 0.1%

• 0.8%

1.2% 2.0% 3.1% 1.3% 2.9% 0.4%

• 0.8%

12.9% 2014 2.3% 1.2% 3.4% 1.1% 1.6% 0.5% 1.0% 0.1% 0.4%

• 0.7%
• 0.9%

2.4% 12.8% 2015

• 1.4%

2.1%

• 2.4%

2.9% 1.4% 1.4% 0.1% 1.5%

• 2.7%

0.1% 0.2% 1.4% 4.5% 2016 2.0% 3.2% 3.7% 1.1% 0.5% 1.1% 1.1% 2.0%

• 0.8%

0.0% 1.7% 0.7% 17.5% 2017 3.8% 1.3%

• 1.7%

3.5% 1.0% 0.5%

• 0.8%
• 0.4%

0.5% 2.0%

• 1.6%
• 5.4%

2.3% 2018 2.0% 2.6% 0.2% 1.4%

• 1.3%

0.6% 2.1%

• 0.8%

1.1% 0.1% 1.9% 0.8% 11.0% 2019 2.2% 0.9% 0.4% 2.2%

• 0.9%

0.0% 0.0% 0.2% 1.2% 1.7% 2.4% 1.5% 12.3% 2020 0.0% 1.0%

• 6.4%

5.0% 1.9% 2.1% 3.3% Compounded 399.5% Annualised 12.1%

Power of Compounding

Source: Sanne Fund Services & XFM

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Pos Months Neg Months

+608%

• 29%

Parachute in in Tough Tim imes

• 25%
• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 2008 2011 2016 2018 Market Neutral Fund All Share Total Return

• No negative years, 85% positive months since inception
• Excelled through difficult market periods:

Source: Sanne Fund Services & XFM

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SA Equity Fund

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Long Term – Deliv livering on Obje jectives

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Ytd Performance – Alp lpha when it it Matters

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Source: Sanne Fund Services & XFM

Conclusion

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To Conclude – Slo lowly but Surely…

• No lumpy alpha
• Low risk of large benchmark underperformance
• Boutiqueness and hedge fund DNA help to navigate markets
• Ability to generate alpha, irrespective of market conditions
• Numbers have proven that we can add around 3% in excess of benchmark (1/3/5y)

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A solid, steady SA Equity offering with:

The content of this presentation and any information provided may be of a general nature and may not be based on any analysis of the investment objectives, financial situation or particular needs of any potential investor/client. As a result, there may be limitations as to the appropriateness of any information given. It is therefore recommended that any potential investor/client first obtain the appropriate legal, tax, investment or other professional advice and formulate an appropriate investment strategy that would suit the risk profile of the potential investor/client prior to acting upon such information and to consider whether any recommendation is appropriate considering the potential investor’s/client’s own objectives and particular needs. X-Chequer Fund Managers Limited is not acting, purporting to act and nor is it authorised to act in any way as an advisor. Any opinions, statements or information contained herein may change and are expressed in good faith. X-Chequer does not undertake to advise any person if such opinions, statements or information should change or become inaccurate. The value of the investments may go down as well as up and past performance is not necessarily a guide to future performance. X-Chequer Fund Management (Pty) Ltd (FSP 31388) is an authorised financial services providers.

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