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  • 1. Global Franchises: The search for quality, yieldGSF and growth in an uncertain world. Clyde Rossouw Portfolio Manager October 2012
  • 2. Target audienceThis document is only for professional investors, professional financial advisors and, attheir exclusive discretion, their clients. No other person should rely on the informationcontained in this document.If you plan to show this to your clients, please ensure that you comply with any applicablelocal marketing regulations.This document is not to be generally distributed to the public.Page 2 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 3. Agenda● Key Fund facts● Key benefits● Performance● Team, philosophy, process and portfolio characteristics● Why invest in global franchise companies?● Portfolio holdings● Summary● Appendix – biographiesPage 3 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 4. Key Fund Facts Fund Structure Luxembourg SICAV (Société d’investissement à capital variable) UCITS Yes, with extended investment powers Portfolio Manager Clyde Rossouw Performance comparison index* MSCI AC World NR USD* Outperformance target* 3-5% per annum gross of fees over the full market cycle, assumed to be around 7 years Objective The investment objective of the Fund is to achieve long-term capital growth primarily through investment in shares of companies around the world. The Fund will have a blend of investments and will be unrestricted in its choice of companies either by size or industry, or in terms of the geographical make-up of the portfolio. The Fund will focus investment on stocks deemed by the manager to be of high quality which are typically associated with global brands or franchises Fund size US$504.9m (30 September 2012) Share classes A, C,F, I, S A share annual management fee 1.5% Admin service fee 0.3%Internal guidelines subject to change, not necessarily with shareholder notification*Investment objective and performance target will not necessarily be achievedSource: Investec Asset Management, October 2012Page 4 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 5. Key benefits● Highly differentiated “global franchise” philosophy● Record of long-term outperformance − participating meaningfully in up markets − with smaller draw-downs in down markets − lower than average absolute volatility● Concentrated portfolio and not benchmark constrained● Low historic correlation with traditional benchmarks● Managed by a globally integrated investment team based in London and Cape Town We seek to invest in companies with business models which can provide some certainty in uncertain marketsPage 5 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 6. Investec GSF Global Franchise FundPerformance track recordCumulative performance in USD 30.0% 20.0% 20.8 10.0% 0.0% -6.8 -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% Apr 07 Dec 07 Jul 08 Feb 09 Sep 09 Apr 10 Dec 10 Jul 11 Feb 12 Sep 12 Investec GSF Global Franchise A Acc MSCI AC World NR (MSCI World NR pre 1/10/11)Annualised performance in USD Since 1 month 3 months YTD 1 year 3 years p.a. 5 years p.a. inception p.a.*Investec GSF Global Franchise A Acc Gross USD 1.4% 4.6% 13.3% 20.1% 11.3% 3.8% 4.2%MSCI AC World NR (MSCI World NR pre 1/10/11) 3.2% 6.8% 12.9% 21.0% 7.3% -2.2% -0.9%Relative performance -1.7% -2.3% 0.4% -0.9% 4.0% 6.0% 5.1%Quartile ranking 4 4 1 1 1 1 1Past Performance figures are not audited and should not be taken as a guide to the futureSource: Lipper, dates to 30 September 2012, NAV based, (inclusive of all annual management fees but excluding any initial charges), gross income reinvested, in USD*Inception date: 10 April 2007. The performance quoted is synthesised and is based on the OEIC Investec Global Select Equity Fund I shares that were launched on 10April 2007 and then merged into the Global Franchise Fund on 3 July 2009 and takes into account the difference in total fees betweenthe Global Select Equity Fund I share class and the Global Franchise Fund A share classComparative index has changed to MSCI AC World Index from 1 October 2011Page 6 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 7. Investec GSF Global Franchise FundPerformance track recordAnnual performance in USD 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% Investec GSF Global Franchise A Acc Gross USD -40.0% MSCI AC World NR (MSCI World NR pre 1/10/11) -50.0% 2007 (Apr) 2008 2009 2010 2011 2012 (YTD)Past Performance figures are not audited and should not be taken as a guide to the futureSource: Lipper, dates to 30 September 2012, NAV based, (inclusive of all annual management fees but excluding any initial charges), gross income reinvested, in USD*Inception date: 10 April 2007. The performance quoted is synthesised and is based on the OEIC Investec Global Select Equity Fund I shares that were launched on 10April 2007 and then merged into the Global Franchise Fund on 3 July 2009 and takes into account the difference in total fees betweenthe Global Select Equity Fund I share class and the Global Franchise Fund A share classComparative index has changed to MSCI AC World Index from 1 October 2011Page 7 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 8. Attractive relative risk characteristicsRisk statistics since inception to 30 September 2012 80% Investec GSF Global Franchise Fund 60% MSCI AC World (net) 40% 20% 0% -20% -40% -60% Volatility Positive Negative Max Worst Best Tracking months % months % Drawdown month month ErrorInvestec GSF Global Franchise Fund 15.3% 63% 37% -40.8% -12.14% 12.03% 9.25%MSCI AC World (net) 20.4% 50% 50% -53.7% -18.96% 11.22% -Past performance figures are not audited and should not be taken as a guide to the future.Source: Investec Asset Management. Data to 30 September 2012. Performance is gross of fees in USDReturns are calculated on a bid to bid basis of the S class with gross income reinvested in USD. Relevant fund TERshave been added back. Inception date: 30 April 2007Page 8 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 9. Attractive risk-adjusted returnsSince inception annualised return & risk versus peer group* 6.0 4.0 Investec GSF Global Franchise A Acc 2.0Annualised perf ormance % change MSCI AC World NR (MSCI World NR pre 1/10/11) -2.0 -4.0 Lipper Global Equity Global -6.0 -8.0 -10.0 -12.0 -14.0 -16.0 -18.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 36.0 38.0 Annualised standard deviationPast performance figures are not audited and should not be taken as a guide to the futureSource: Lipper, data to 30 September 2012, NAV based, (inclusive of all annual management fees but excluding any initialcharges), in USD. *Inception is 30 April 2007Page 9 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 10. Team, philosophy, process and portfolioGSF characteristics
  • 11. Globally integrated investment team Global Franchise amended 20 July 2012 Global Franchise Clyde Rossouw Abrie Pretorius Strategy Leader Investment Specialist Alessandro Dicorrado Michael du Plessis Investment Specialist Investment Specialist Rob Forsyth Investment Specialist Contrarian Equity Team Team of 7 Portfolio Managers & Analysts● Managed by part of a globally integrated investment team based in London and Cape Town● Led by portfolio manager, Clyde Rossouw, who has 18 years industry experience● A team of five investment professionals with specialist research experience● Supported by an independent trading team, performance, risk and attribution team of 20 specialists globallyPage 11 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 12. Investment philosophy● Few companies can consistently and reliably compound shareholder wealth at superior rates of return over the long term● We believe that a concentrated portfolio of these exceptionally high quality companies, when selected with an absolute value bias, will earn attractive returns with less than average absolute volatility● We invest in businesses that display the best combination of growth, quality, yield and valuationOur research process is exclusively focused on seeking to identify companies that possess rare and exceptional qualities, at compelling valuationsPage 12 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 13. Highly differentiated “global franchise” philosophy High Quality Sustainable Growth Above Average YieldConsistently shown to compound Enduring franchises that consistently Sustainable and free cash flow growthshareholder wealth at superior rates of support high returnsreturn over the long term• Dominant “intangible” assets eg. strong • High barriers to entry / competitive advantage • Company to generate a Free Cash Flow well in excess of “risk free” long bond yields brands, patents, licenses and copyrights • Stable or growing industries• Strong balance sheets and highly cash • Low capital intensity generative• Strong management teams Compelling Valuation Measure value in absolute terms based on the free cash flow yield for each investment • Do not consider value in relative terms i.e. comparing P/Es or other measures across countries or sectors globallyPage 13 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 14. Investment processImplement investment decisions through a disciplined framework Stage 1 Stage 2 Stage 3 Focused universe Fundamental creation & idea Portfolio construction research & analysis generation 6000 to 250 companies 250 to 40-50 companies 25-40 companies• Proprietary stock selection tools rank companies • Bottom up, fundamental research based • Concentrated portfolio of the BEST IDEAS globally approach • 25 – 40 companies• Franchise companies exhibit key characteristics: • Strong focus on the quality of the business and •High returns on capital free cash flow approach to value – Portfolio weightings determined by best •High and sustainable margins combination of growth, yield and quality •Low leverage and low capital intensity •Sustainable above average growthThese internal parameters are subject to change, not necessarily with notice to shareholdersPage 14 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 15. Portfolio constructionWe aim to remain fully invested at all times. Cash can build up temporarily as a result ofour inability to find undervalued stocksPosition size ● At least 1% at purchase ● Maximum individual position size: 10% ● Typical number of stocks: 25-40 ● Maximum sub-sector/industry position size: 20% ● Unconstrained at super-sector levelSector ● Sector and industry weightings are a product of our bottom-up stock selection process ● The characteristics that we seek are typically found in companies producing branded consumer goods, and pharmaceuticals, media and advertisingCountry ● Country weightings are a product of our bottom-up stock selection process. The typical concentrations in our portfolios are Europe (non-UK), North America and the UKThese internal parameters are subject to change, not necessarily with notice to shareholdersPage 15 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 16. Largest recent buyAB InBev – truly global blue chip companyQuality Growth7 out of top 10 global beer brands in the world Sustainable profit growth - worlds largest brewer with nearly 25% global market share 16,000 40% 14,000 35% 12,000 % EBITDA Margin EBITDA in $m 10,000 30% 8,000 6,000 25% 4,000 20% 2,000 - 15% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: DataStream, company data, Investec Asset Management, as at 30 June 2012This is not a buy or sell recommendation for any particular stockPage 16 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 17. Largest recent buyAB InBev – truly global blue chip companyYield ValuationFree Cash Flow yield Share price and market earnings expectations● 14 brands that generate over USD 1bn p.a. in revenue● No. 1 or No. 2 position in many of the world’s most profitable beer markets● Especially strong in the U.S., Brazil, and China – countries that are expected to drive the majority of global industry volume growth for the next several yearsSource: Investec Asset Management, as at 30 June 2012This is not a buy, sell or hold recommendation for any particular securityPage 17 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 18. Investment processSell disciplineStocks are sold when:● Stock has reached fair value: − Free Cashflow Yields approach weighted average long bond yields − Trading meaningfully above replacement value of assets (including intangibles) We trade infrequently and base● Better risk-adjusted idea has emerged: the decision to SELL a security on − Meaningful improvement in the Quality and/or the same principles as the Value of the portfolio decision to BUY● Investment case is no longer applicable: − Change in macro/regulatory/Industry environment − Change in company fundamentals − Adverse change in a companys corporate governance policiesPage 18 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 19. Why invest in global franchiseGSF companies?
  • 20. Portfolio characteristicsHigh quality reflected by strong credit ratings and low CDS spreads High Quality Sustainable Growth Above Average Yield 180 Nestle 5Y CDS spreads (bps) 160 Unilever 5Y CDS spreads (bps) 140 120 UK Government 5Y CDS spreads (bps) 100 80 60 Compelling Valuation 40 20● Strong business models and management Jul-10 Jul-09 Jul-11 Jul-12 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13● Low capital intensity● Strong balance sheets Credit CDS spread● Portfolio has AA average rating rating (bps) Coca-Cola A+ 45.90● CDS spread below many AAA and AA sovereigns Colgate-Palmolive AA- 38.08 Pfizer A+ 52.80 Johnson & Johnson AAA 31.94 Kelloggs A- 54.14 Kimberly Clark A 42.40 Nestle AA+ 31.47 Pepsi AA+ 49.54 P&G AA- 45.62 Unilever A+ 30.18 Microsoft AA+ 25.01Sources: Investec Asset Management, Company reports, Bloomberg, 30 September 2012Page 20 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 21. Portfolio characteristicsEmerging markets exposure provide sustain long term growth prospects High Quality Sustainable Growth Above Average Yield Franchise Universe EW Share price and EPS in 2,000 1,800 Price [LHS] 120 1,600 EPS 12m Fwd. [RHS] 100 1,400 1,200 80 1,000 60 800 Attractive Valuation 600 40 400 20 200● The Global Franchise investment universe has Dec 95 Aug 97 Dec 00 Dec 05 Jul 92 Jun 93 Jun 98 Aug 02 Jun 03 Aug 07 May 09 Nov 11 Sep 12 Feb 95 Feb 00 Feb 05 Jul 08 Mar 10 Jan 11 Apr 94 Apr 99 Apr 04 Oct 96 Oct 01 Oct 06 demonstrated long term sustainable earnings growth benefiting from: − Competitive advantages (brands, patents etc) Est. % sales from Emerging Markets − Stable growing industries Coca-Cola 57% Colgate-Palmolive 45% − Disciplined capital allocation Pfizer 18% Johnson & Johnson 14% Kelloggs 15% Kimberly Clark 32% LOreal 24% Nestle 41% Pepsi 29% P&G 37% Unilever 54% Anheuser-busch Inbev 56%Sources: Investec Asset Management, Company reports, Bloomberg, and DataStreamThis is not a buy or sell recommendation for any particular stock as at 30 September 2012 .Page 21 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 22. Many global franchise stocks are currently at multi-decadeattractive valuation levels High Quality Sustainable Growth Above Average Yield Staples free cash flow yield less corporate bond yield 2 -2 Compelling Valuation Percent (%) -4● Strong cash generation -6● Free Cash Flow Yield and Dividend Yield significantly above developed market bond and -8 corporate yields -10 77 79 80 81 83 84 85 87 88 89 91 92 93 95 96 97 99 00 01 03 04 05 07 08 09 11Source: Sanford Bernstein, 30 September 2012Page 22 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 23. Portfolio characteristicsAbsolute valuations are attractive High Quality Sustainable Growth Above Average Yield Franchise Universe EW forward PE 28 26 24 22 20 18 16 Attractive Valuation 14 12 10 Global franchise stocks are trading at 8 6 historically attractive levels Jul 92 Jul 93 Jul 94 Jul 95 Jul 96 Jul 97 Jul 98 Jul 99 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 07Sources: Investec Asset Management, Company reports, Bloomberg, 30 September 2012This is not a buy or sell recommendation for any particular stock*December 2012 PE is Bloomberg consensus numbersPage 23 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 24. A challenging macroeconomic environmentKey investment challenges:● Negative returns on “risk free” assets● Inflation vs. deflation − Quantitative easing − Deleveraging and stagnant economic activity in the West● Shorter economic and market cyclesPage 24 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 25. Negative real yieldsFear combining with greed?US 7-10 year index linked bond yields 5 4 3 2 1 0 -1 -2 Sep 99 Mar 97 Sep 97 Mar 98 Sep 98 Mar 99 Mar 00 Sep 00 Mar 01 Sep 01 Mar 02 Sep 02 Mar 03 Sep 03 Mar 04 Sep 04 Mar 05 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12Source: Bloomberg, Investec Asset Management to 30 September 2012Page 25 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 26. LiquidityWe have not stopped the QE/LTRO/RRR presses yet…Central Banks balanced sheetsECB, BOE, FED, PBOC, BOJ ECB €2.9trn BOE £345bn $12.2trn FED $2.9trn BOJ ¥27.8trn PBOC RMB 28trnSource: Bloomberg, Investec Asset Management, as at 31 December 2011Page 26 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 27. Uncertain cyclesThe global economy could have peaked alreadyCitiGroup G10 Economic Surprise Index 100 MAJOR ECONOMIES 50 EMERGING MARKETS -50 -100 -150 Sep 09 May 07 Sep 07 Nov 07 May 08 Sep 08 Nov 08 May 09 Nov 09 Sep 10 Nov 10 Sep 11 Nov 11 Sep 12 Jul 07 Jan 08 Mar 08 Jul 08 Jan 09 Mar 09 Jul 09 Jan 10 May 10 Mar 10 Jul 10 Jan 11 May 11 Mar 11 Jul 11 Jan 12 May 12 Mar 12 Jul 12Source: Bloomberg to 30 September 2012Page 27 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 28. GSF Current positioning
  • 29. Global Franchise Top 10An attractive mix of Value and GrowthName Weight PE FCF Yield DY EM % SalesAnheuser-busch Inbev ( Budweiser, Becks, Stella Artois ) 5.4% 17.9 7.7 2.5 56%Microsoft Corp (Windows, Office, Xbox, Bing) 5.2% 9.6 11.4 2.9 13%Japan Tobacco (Camel, Winston, Mild Seven, B&H) 5.2% 13.4 7.5 3.2 26%Imperial Tobacco Group (Davidoff, Gauloises, West) 4.9% 10.9 5.9 4.9 34%Samsung Electronics (Samsung) 4.5% 8.4 5.6 0.6 75%Unilever (Axe, Knor, Blue Band, Lipton, Dove, Lux, Flora, Omo) 4.5% 16.6 5.4 3.5 54%Reckitt Benckiser Group (Nurofen, Finish, Vanish, Dettol, Strepsils) 4.4% 14.5 6.6 3.7 32%Nestlé (Nescafe, Maggi ,Nesquik) 4.2% 16.6 4.5 3.7 41%Pfizer (Lipitor, Viagra, Celebrex, Zoloft, Norvasc) 4.1% 11.0 8.5 3.6 18%Johnson & Johnson 3.9% 12.8 6.8 3.7 14%Total/Average A concentrated portfolio 46.3% 13.2 7.0 3.2 36.3%Not a buy, sell or hold recommendationSource: Investec Asset Management as at 30 September 2012Page 29 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 30. Top holdingsJapan Tobacco – Looking beyond the countryAttractive and improving ROIC – trend looks set to Increasing dividend yieldcontinue 40% 14,000 Dividend per share Dividend Payout Ratio 35.9% 35% 12,000 30% 10,000 25% 8,000 20% 6,000 15% 12.7% 4,000 10% 5% 2,000 0% - 2000 2002 2004 2006 2008 2010 2012 ● Worlds third largest tobacco company with brands sold in 120 countries ● 66% of the cigarette market in Japan (4th largest in the world) ● Compelling valuation – FCF Yield 7.5% ● Trading at significant discount to global tobacco peer groupSource: DataStream, company data, Investec Asset Management, March 2012This is not a buy or sell recommendation for any particular stockPage 30 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 31. Top holdingsMicrosoft Corp... re-inventing itselfMicrosoft ROIC – profitability still strong and improving Microsoft versus Coca Cola Microsoft Coca-Cola Company 65.0% CAGR 16Yr 10Yr 5Yr 3Yr 16Yr 10Yr 5Yr 3Yr Revenue 16.5% 10.7% 9.6% 5.0% 5.0% 7.3% 8.7% 6.8% 60.0% Net Income 18.7% 10.2% 11.6% 9.4% 7.5% 8.6% 9.4% 9.0% Free Cashflow 18.3% 7.2% 13.9% 10.2% 7.5% 9.9% 5.8% 10.0% 55.0% 50.0% ● World’s largest software corporation 45.0% ● AAA rated company 40.0% 35.0% 30.0% 25.0% 1996 1997 1998 1999 2000 2002 2004 2005 2006 2007 2008 2009 2011 2001 2003 2010Source: DataStream, company data, Investec Asset Management, December 2011This is not a buy or sell recommendation for any particular stockPage 31 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 32. Top holdingsUnilever – Leaner, fitter, hopefully quicker than beforeExcellent brands and market position Unilever: Relative Fwd PE* vs. Peer Group (1990 to date) "Premium"...Average Premium: +17% 150 140 130 "Purgatory"...Average Discount: -11% 120 110 100 90 80 Average: 102 70 Apr-92 Oct-95 Apr-99 Oct-02 Apr-06 Oct-09 Dec-03 Dec-10 Dec-89 Dec-96 Aug-94 Aug-01 Aug-08 Jun-07 Jun-93 Jun-00 Feb-90 Feb-98 Feb-05 Feb-12 Source: FactSet, Company reports, Bernstein estimates *3m rolling except last 3m● Attractive portfolio of assets with 85% of sales #1 or #2, and low private label exposure● Improvements in strategy, operations and culture led by a new highly competent management team● Attractive valuation offers substantial margin of safetySource: DataStream, company data, Investec Asset Management, March 2012This is not a buy or sell recommendation for any particular stockPage 32 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 33. Top holdingsNestlé – The quintessential global franchise stockNestle share price has outperformed the market through EM is adding 1bn new emerging market consumers bymultiple cycles (1973-2012) due to compounding 2020(CAGR:13.1%) and steadily increasing exposure to EM 5,000 7,000 50 45 6,000 40 5,000 35 Population (m) % of sales 30 Log scale 4,000 500 25 3,000 20 2,000 15 10 1,000 5 50 0 0 2000 2005 2010 2015 2020 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Feb-97 Feb-98 Feb-99 Mar-01 Mar-02 Mar-03 Mar-04 Feb-96 Feb-00 Mar-05 May-11 May-12 Jan-90 Jan-92 Jan-93 Jan-94 Jan-91 Jan-95 % of Nestle Sales EM Population (Million) MSCI World Nestle Develop Market Population(Million)Source: DataStream, company data, Investec Asset Management , May 2012This is not a buy or sell recommendation for any particular stockPage 33 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 34. Sector and geographic allocationSector allocation Geographic allocation Consumer North America Staples 56.0% Cash 39.1% 9.3% Emerging Markets Cash 9.3% 4.5% Japan 5.2% Consumer Discretionary 3.0% United Health Care Kingdom 12.5% Europe Ex UK 18.3% Inf ormation 23.6% Technology 16.5%The portfolio may change significantly over a short period of timeSource: Investec Asset Management as at 30 September 2012Page 34 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 35. Current portfolio characteristicsFocus on quality and value Global MSCI (AC) ● Low gearing, low capital intensity (growth requires Franchise World less capital)Free Cash Flow Yield 6.9% 6.7% ● Overweight consumer staples (defensive and ideal forDividend Yield 3.1% 2.7% declining equity markets)ROCE 15.5% 13.2% ● Overweight consumer cyclicals with dominantPrice/Earnings 13.4 13.1 intangibles (relatively defensive and likely to recoverAverage Market Capitalisation $117.3bn $14.9bn in line with cyclicals)Tracking error 9.3% ● No banks, but selected financialsCurrent Beta 0.68*The above reflects the portfolio characteristics of the Investec Global Franchise Fund as at 30 September 2012**Comparative index has changed to MSCI AC World Index from 1 October 2011The portfolio may change significantly over a short period of time. Source: Investec Asset ManagementPage 35 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 36. Summary● Differentiated philosophy and process● Bottom-up, fundamental research-based approach● A concentrated portfolio with a focus on quality and value − Quality and Value criteria eliminate most businesses● Seeks long-term outperformance: by participating meaningfully in up markets and losing less in down markets● Aim to have the same consistency and relative predictability in our investment results, as the companies we seek to hold in the portfolio● Seek to invest in companies with business models which can provide some certainty in uncertain markets● Manage the absolute risks that are most likely to jeopardise the achievement of long- term total returnsPage 36 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 37. GSF Thank you www.investecassetmanagement.com
  • 38. Biographies Clyde Rossouw Abrie Pretorius Alessandro Dicorrado Portfolio Manager Investment Analyst Analyst 13 years with the firm 6 years with the firm 1 year with the firm 18 years of industry experience 6 years of industry experience 8 years of industry experienceClyde is a Portfolio Manager at Investec Asset Abrie is an Analyst in the Contrarian team at Investec Alessandro is an analyst in the Contrarian team atManagement with a focus on multi-asset absolute return Asset Management with a particular focus on the Global Investec Asset Management.and low volatility real return equity investing. His Franchise and Global Contrarian Strategies. Abrie Previously he worked at JP Morgan Chase & Co as aportfolio manager duties include the flagship Multi-Asset joined the Contrarian team in 2009 from the fixed income derivatives salesperson in London.Investec Opportunity Strategy that he has run since Performance and Risk team where he spent three yearsFebruary 2003 and the two equity-oriented Investec as a risk analyst. During this time, Abrie was He graduated from UCL in 2004 with a BSc (Hons)Global Opportunity Equity and Global Franchise instrumental in developing the risk model capabilities in degree in Economics and holds a Masters degree inStrategies. Clyde joined Investec Asset Management in our London and Cape Town offices. Finance from the London Business School. He hasNovember 1999, initially as an asset allocation and passed Level one of the CFA Programme. Abrie graduated from the University of the North West,sector allocation strategist. Potchefstroom Campus with a Master of SciencePrior to Investec Asset Management, Clyde was degree in Quantitative Risk Management: Investmentawarded a study bursary by Sanlam where he worked Management (Cum Laude). Abrie is a CFAfor eight years, including five years in asset Charterholder.management. His experience in investments thereincluded fixed income analysis and portfoliomanagement.Clyde graduated from the University of Cape Town witha Bachelor of Science (Statistics and Actuarial Science)degree. He was awarded the Certificates in ActuarialTechniques in 1995, and Finance and Investments in1997 by the Institute of Actuaries in London. Clyde is aCFA Charterholder.Page 38 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 39. Biographies Michael du Plessis Rob Forsyth Analyst Sector Head: Industrial, 1 year with the firm Consumer and Technology 3 years of industry experience 17 years with the firm 17 years of industry experience UpdatedMike is an analyst for the Contrarian team at InvestecAsset Management. for 2012 Rob is an analyst in Investec Asset Management’s South African Equities team, as well as the sector head of industrials, a position he assumed in 2003.Previously he worked as an analyst at RegardingCapital Management in Cape Town. Prior to focussing on this role full time, Rob was a sector equity portfolio manager, whose responsibilitiesHe graduated from Nottingham University in 2007 with a included the Momentum Industrial Fund (Unit Trust) andBA (hons) degree in Business Management before a building block of the SYmmETRY range called the Oldstudying at Cass Business School where he graduated Mutual Industrial and Consumer Fund. In addition, Robin 2008 with an MSc in Finance and Accounting. managed the Investec Growth Strategy for two years to 2001 and the Investec Global Consumer Strategy for close to two years, after its launch in 1996. Rob joined Investec Asset Management in 1995 as an investment analyst. He graduated from the University of Cape Town with a Bachelor of Business Science (Finance) degree.Page 39 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 40. Contact detailsInvestec Asset ManagementWoolgate Exchange Telephone: +44 (0)20 7597 190025 Basinghall Street Email: enquiries@investecmail.comLondonEC2V 5HAUnited Kingdomwww.investecassetmanagement.comTelephone calls may be recorded for training and quality assurance purposes.Issued by Investec Asset Management, October 2012Page 40 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801
  • 41. Important information GSFThis communication is not for general public distribution. If you are a private investor and receive it as part of a general circulation, please contact usat +44 (0)20 7597 1900.The value of this investment, and any income generated from it, will be affected by changes in interest rates, general market conditions and otherpolitical, social and economic developments, as well as by specific matters relating to the assets in which it invests. The Fund’s investment objectivewill not necessarily be achieved and investors are not certain to make profits; losses may be made. Past performance should not be taken as a guideto the future. Performance would be lower had initial charges been included and will vary between different share classes dep endant upon theirapplicable charges. Returns to individual investors will vary in accordance with their personal tax status and tax domicile.All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated are honestlyheld but are not guaranteed and should not be relied upon. This is not a buy, sell or hold recommendation for any particular security. The portfoliomay change significantly over a short period of time.This communication is provided for general information only. It is not an invitation to make an investment nor does it constitute an offer for sale. Thefull documentation that should be considered before making an investment, including the Prospectus, or Key Investor Information Documents, whichset out the fund specific risks, is available from Investec Asset Management.The Fund is domiciled in Luxembourg. This communication should not be distributed to private customers who are resident in co untries where theFund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful. Please visitwww.investecassetmanagement.com/registrations to check registrations by country. In Switzerland, the Key Investor Information Documents,Prospectus and Report & Accounts may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Dexia Investor ServicesBank S.A., Esch-sur-Alzette, Badenerstrasse 567, P.O. Box 101, CH-8066 Zurich. In Germany, the Prospectus and Report & Accounts (available inEnglish) and Key Investor Information Documents (available in English and German) may be obtained free of charge from the Ger manRepresentative, J.P. Morgan AG, Junghofstraße 14, 60311 Frankfurt am Main.In the USA, this communication should only be read by institutional investors, professional financial advisers and, at their exclusive discretion, theireligible clients, but must not be distributed to US Persons.THIS INVESTMENT IS NOT FOR SALE TO US PERSONS.Telephone calls may be recorded for training and quality assurance purposes. Issued by Investec Asset Management Limited whic h is authorised andregulated by the Financial Services Authority, October 2012.Page 41 | Investec GSF Global Franchise Fund | CONFIDENTIAL10801

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