SENATE GROUP PRESENTATION25 March 2011A division of Efficient Group
AGENDA1. The Efficient Group (EF Group)2. Efficient Select (EF Select)3. Single Manager Boutique4. Multi Manager Boutique5...
EF GROUP•   The EF Group is a diversified financial services business that provides a wide range of professional    servic...
KEY PLAYERSSteve Booysen – ChairmanHeiko Weidhase - Chief Executive OfficerDawie Roodt – Chief Economist
ORGANOGRAM                          EF GROUPEF ADVISE   EF TRANSACT    EF ACCESS   EF CAPITAL   EF SELECT
FORWARDPHILOSOPHY   FORWARD
ROLE PLAYERS                    Harold Hopking – Managing Director                    Founding member of the EF Group, wit...
ACHIEVEMENTS •       Standard and Poor’s Award in 2005     •        Raging Bull certificate in 2006          •     2 Micro...
FUNDS UNDERMANAGEMENT  Single Manager: R 750 million  Multli-Manager: R 1 500 million   Private Clients: R 300 million    ...
EFFICIENT SELECT SINGLE MANAGERBOUTIQUEA division of Efficient Group
PEOPLE                                               Jean-Pierre du Plessis.                                              ...
FORWARD             PHILOSOPHYForward PE                                    Growth Stocks                    FORWARD Philo...
INVESTMENT         PROCESS                    IDEASRISK ASSESMENT                  ANALYSIS                 FORWARD       ...
FORWARD                        ANALYSISHow we apply the FORWARD Investment Philosophy to analyzing stocks:F    Fundamental...
THE 6 CATEGORIES                     OF STOCKSA unique but logical approach to how we view all listed shares:1. Fast growe...
RISKMANAGEMENT
EFFICIENT SELECT SINGLEMANAGER FUNDSA division of Efficient Group
EFFICIENT EQUITY                           FUND•   Category: General Equity•   Benchmark:J203T•   Fund Size: R240m     •  ...
EFFICIENT EQUITY      FUND       TOP 10 HOLDINGS     1.    BHPBilliton     2.    Clicks     3.    Pinnacle     4.    Famou...
EFFICIENT EQUITY                                FUNDSTYLES                           %                                  ST...
EFFICIENT                       PROPERTY FUND•   Category: Real Estate•   Benchmark:J253T•   Fund Size: R200m     •    The...
EFFICIENT                        PROPERTY FUND TOP 10 HOLDINGS                     SECTOR ALLOCATION1.    Growthpoint     ...
EFFICIENT ACTIVE                   ALLOCATION FUND•   Category: Worldwide Flexible•   Benchmark: CPI+4•   Fund Size: R180m...
EFFICIENT ACTIVE                     ALLOCATION FUND                                                               COUNTRY...
EFFICIENT                    PRUDENTIAL FUND•   Category: Prudential Variable•   Benchmark: 65% ALSI, 35% Cash•   Fund Siz...
EFFICIENT                     PRUDENTIAL FUND                                                                    SCENARIO ...
EFFICIENT MONEY                       MARKET FUND•   Category: Money Market•   Benchmark: 3 Month Jibar•   Fund Size: R73m...
RANKINGS            FUND                    6 MONTHS              1 YEAR                              Rank        No. of  ...
MARKET OUTLOOK•   Japanese recession concerns; Euro area uncertainty and global political instability will add to    marke...
EFFICIENT SELECT MULTI MANAGERBOUTIQUEA division of Efficient Group
MULTI MANAGER PHILOSOPHY        Manager     Diversification     Reduced Asset      CorrelationReduced Portfolio Risk
INVESTMENT                           PROCESS (A)                               Quarterly        Daily               Market...
Q1-2011                                      HOUSEVIEW              NEGATIVE                  CAUTIOUS                    ...
STRATEGIC                                   RANGES EQUITY                    5   10   15   20   25   30   35   40   45   5...
CURRENT                                    ASSET ALLOC      EFFICIENT INFLATION + 2 FoF              EFFICIENT INFLATION +...
INVESTMENT                      PROCESS (B)       EQUITY                        PROPERTY                  FIXED INTEREST  ...
UNDERLYING              FUNDS               GROWTH OVER 6 YEARS TO 23 MARCH 2011                                      CUMU...
EFFICIENT INTERNATIONAL FoFA division of Efficient Group
ASSET + FUND                             ALLOCATION                              EFFICIENT INTERNATIONAL FOF (USD)        ...
REGIONAL                                       ALLOCATION                                        EFFICIENT INTERNATIONAL F...
PERFORMANCE                                           (USD)                                              OMGB EFFICIENT IN...
PERFORMANCE                          (ZAR)                           OMGB EFFICIENT INTERNATIONAL FOF (USD)               ...
RANKINGS                                                   OMGB EFFICIENT INTERNATIONAL FOF (USD)                         ...
EFFICIENT PRIVATE CLIENT BOUTIQUEA division of Efficient Group
QUESTIONS?
THANK YOU
Contact us on :012 460 9580 (Pretoria)021 410 6000 (Cape Town)www.efselect.co.zaAll information used in this presentation ...
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Efficient Group Presentation March 2011

  1. 1. SENATE GROUP PRESENTATION25 March 2011A division of Efficient Group
  2. 2. AGENDA1. The Efficient Group (EF Group)2. Efficient Select (EF Select)3. Single Manager Boutique4. Multi Manager Boutique5. Private Client Boutique6. Questions
  3. 3. EF GROUP• The EF Group is a diversified financial services business that provides a wide range of professional services and products• EF Group was born from the merger of a number of financial entities in September 2007• The company was successfully listed on the Johannesburg Stock Exchange on 20 April 2009
  4. 4. KEY PLAYERSSteve Booysen – ChairmanHeiko Weidhase - Chief Executive OfficerDawie Roodt – Chief Economist
  5. 5. ORGANOGRAM EF GROUPEF ADVISE EF TRANSACT EF ACCESS EF CAPITAL EF SELECT
  6. 6. FORWARDPHILOSOPHY FORWARD
  7. 7. ROLE PLAYERS Harold Hopking – Managing Director Founding member of the EF Group, with over 20 years investment experience Brendan Vadas – Chief Investment Officer Is a CFA Charter Holder, Airline Transport Pilot and US Commercial flight InstructorOur team consists of 10 investment professionals
  8. 8. ACHIEVEMENTS • Standard and Poor’s Award in 2005 • Raging Bull certificate in 2006 • 2 Micropal Award in 2008
  9. 9. FUNDS UNDERMANAGEMENT Single Manager: R 750 million Multli-Manager: R 1 500 million Private Clients: R 300 million Outsourced: R 450 million Total FUM: R 3 billion
  10. 10. EFFICIENT SELECT SINGLE MANAGERBOUTIQUEA division of Efficient Group
  11. 11. PEOPLE Jean-Pierre du Plessis. Head of Single Managers B.Business Science (Finance) (UCT)Marius Van Wyk. Stuart Sinclair.Analyst, Assistant fund manager Analyst, Assistant fund managerB.Eng (Electric & Electronic) (Stellenbosch) B.Comm Hons (Inv man. & Ecos) (Stellenbosch)MSC.Eng Cum Laude (Stellenbosch) Enrolled in the CIMA programmePassed CFA level 2Rob Enslin. Ryan McCaugheyDealer, Assistant fund manager InternB.Comm Hons (Financial Analysis) (Stellenbosch) B Com Financial Analysis (Honours)CFA level 2 candidate
  12. 12. FORWARD PHILOSOPHYForward PE Growth Stocks FORWARD Philosophy: Growth at a Reasonable Price Value Stocks Earnings Growth Rate
  13. 13. INVESTMENT PROCESS IDEASRISK ASSESMENT ANALYSIS FORWARD PHILOSOPHY PRESENTATIONMONITORING AND DISCUSSION EXECUTION
  14. 14. FORWARD ANALYSISHow we apply the FORWARD Investment Philosophy to analyzing stocks:F FundamentalsO OpportunitiesR RisksW Wealth creationA AssetsR Reliability of ManagementD Dividends
  15. 15. THE 6 CATEGORIES OF STOCKSA unique but logical approach to how we view all listed shares:1. Fast growers2. Slow Growers3. Stalwarts4. Asset Plays5. Cyclicals6. Turnarounds * Inspired by Peter Lynch
  16. 16. RISKMANAGEMENT
  17. 17. EFFICIENT SELECT SINGLEMANAGER FUNDSA division of Efficient Group
  18. 18. EFFICIENT EQUITY FUND• Category: General Equity• Benchmark:J203T• Fund Size: R240m • The focus of this fund is to provide the investor with above average capital growth by being fully invested in SA equities at all times • We aim to do this by applying our FORWARD investment philosophy to South African equities and property companies • The portfolio is managed in a benchmark agnostic manner
  19. 19. EFFICIENT EQUITY FUND TOP 10 HOLDINGS 1. BHPBilliton 2. Clicks 3. Pinnacle 4. Famous Brands 5. Steinhoff 6. Old Mutual 7. Woolworths 8. ABSA 9. ABIL 10. Discovery
  20. 20. EFFICIENT EQUITY FUNDSTYLES % STOCK CATEGORIESVALUE STOCKS 57.69%GROWTH STOCKS 38.46%DIVIDEND YIELD 3.85%OPPORTUNITES 0.00%TOTAL NUMBER OF STOCKS 32 4% 26% 41% Cyclical StalwartMARKET CAP % Fast GrowerLARGE CAP 52.24% 29%MID CAP 20.60% Slow GrowerSMALL CAP 27.16%AVERAGE MARKET CAP (BN) R 52.35CRISIS TRADESNAME SHARES % OF FUNDBIL 863 586 2.5%MTN 128 594 2.0%SOL 127 979 2.0%ASA 144 264 1.5%OML 63 243 2.0%TOTAL 10.0%
  21. 21. EFFICIENT PROPERTY FUND• Category: Real Estate• Benchmark:J253T• Fund Size: R200m • The focus of this fund is to provide the investor with income as well capital growth • We aim to do this by applying our FORWARD investment philosophy to South African property companies • The portfolio is managed in a benchmark agnostic manner
  22. 22. EFFICIENT PROPERTY FUND TOP 10 HOLDINGS SECTOR ALLOCATION1. Growthpoint 0%2. Hyprop 6% 7%3. Resilient 19% Cash4. Acucap5. Unibail Rodamco Retail6. Pangbourne Office 50%7. Redefine 18% Industrial8. Capital Hotels9. Hospitality A Residential10. SA Corporate
  23. 23. EFFICIENT ACTIVE ALLOCATION FUND• Category: Worldwide Flexible• Benchmark: CPI+4• Fund Size: R180m • The focus of this fund is to provide the investor with long term capital growth through global diversification • The focus of this fund is to provide South African investors with a vehicle for global equity exposure and diversification • The fund aims to have at least 50% of it’s assets offshore at any one time • The management of this fund consists of 2 parts – domestic and offshore. Our FORWARD philosophy is utilised in selecting both SA equities and global companies
  24. 24. EFFICIENT ACTIVE ALLOCATION FUND COUNTRY ALLOCATION TOP 10 HOLDINGS: 6%1. Templeton Asian Growth 8% SOUTH AFRICA2. Templeton Latin America USA 9% 35%3. Templeton Eastern Europe UK4. Swatch EUROPE 10%5. Unibail Rodamco ASIA EX JAPAN6. Yum Brands AUSTRALIA7. New Gold 14% LATIN AMERICA8. Monsanto 18%9. Hyundai10. GlaxoSmithKline DELVOPED VS DEVELOPING % DEVELOPED 47.91% DEVELOPING 52.09%
  25. 25. EFFICIENT PRUDENTIAL FUND• Category: Prudential Variable• Benchmark: 65% ALSI, 35% Cash• Fund Size: R105m • The focus of this fund is to provide the investor with capital growth within the risk parameters associated with retirement funding investments • The fund achieves this objective through the use of derivatives, a minimum cash holding and stock picking
  26. 26. EFFICIENT PRUDENTIAL FUND SCENARIO ANALYSIS TOP 10 HOLDINGS % Ret (P) % Ret (B) % Ret +/-• Efficient Property Euro Weakens (Sovereign Debt Crisis) -0.92 -4.23 3.31• Efficient Active Allocation 9/11 Event (Terrorist Attack) 3.27• Clicks -2.65 -5.92• Pinnacle Dotcom Bubble Bursts (Market Bubble) -2.11 2.29 4.4• Steinhoff Invasion of Iraq (Major War) 2.54• Lewis -3.05 -5.59• Old Mutual Flight to Quality (Flight to Dev Mkts) 1.56 -2.98 -4.54• Famous Brands• Discovery Economic Recovery Falters (Double-dip) -4.02 -5.77 1.75• ABIL US in Recession (Growth Concerns) 1.88 -3.3 -5.18 Interest Rates up 100bps (Inflation Rises) 0.02 0.02 0
  27. 27. EFFICIENT MONEY MARKET FUND• Category: Money Market• Benchmark: 3 Month Jibar• Fund Size: R73m • The focus of this fund is to provide the investor with cash beating returns over time while ensuring capital preservation
  28. 28. RANKINGS FUND 6 MONTHS 1 YEAR Rank No. of Rank No. of funds fundsEFFICIENT EQUITY FUND 22 85 55 85EFFICIENT ACTIVE ALLOCATIONFUND 2 16 1 15EFFICIENT PROPERTY FUND 6 22 6 21EFFICIENT PRUDENTIAL FUND 13 63 13 58
  29. 29. MARKET OUTLOOK• Japanese recession concerns; Euro area uncertainty and global political instability will add to market volatility• US recovery on track• Emerging markets will continue to drive global growth and consumption• Market Volatility will continue providing us with great opportunities to buy our favourite stocks at discounted prices
  30. 30. EFFICIENT SELECT MULTI MANAGERBOUTIQUEA division of Efficient Group
  31. 31. MULTI MANAGER PHILOSOPHY Manager Diversification Reduced Asset CorrelationReduced Portfolio Risk
  32. 32. INVESTMENT PROCESS (A) Quarterly Daily Market Houseview See-Through Watch Meeting Asset Alloc Monitoring Quarterly Daily Idea Houseview Investment Generation Asset Class Meeting Ranges Strategic TacticalAsset Class Asset Ranges Allocation
  33. 33. Q1-2011 HOUSEVIEW NEGATIVE CAUTIOUS NEUTRAL OPTMISTIC POSITIVELOCAL (-) Relatively better valueCASH in Property and Equity (+) SA yields still more attractive than DM’sLOCAL (-) Inflation has bottomedBONDS (+) Rate hikes expected only in H2 (not Q1 or Q2)LOCAL (-) May have peakedPROPERTY (+) Vacancies decreasing (+) Positive GDP growth expectedLOCAL (+) “BRICS” inviteEQUITY emphasises Gateway to Africa; (+) Commodities up-cycle under wayOFFSHORE (-) Zero RatesCASHOFFSHORE (-) Inflation concernsBONDSOFFSHORE (+) Attractive valuationsPROPERTYOFFSHORE (+) Attractive valuationsEQUITY
  34. 34. STRATEGIC RANGES EQUITY 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100EfficientInflation + 2 FoFEfficientInflation + 4 FoFEfficientInflation + 6 FoF CASH + FIXED INTEREST 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100EfficientInflation + 2 FoFEfficientInflation + 4 FoFEfficientInflation + 6 FoF
  35. 35. CURRENT ASSET ALLOC EFFICIENT INFLATION + 2 FoF EFFICIENT INFLATION + 4 FoF EFFICIENT INFLATION + 6 FoF 17% 10%42% 41% 18% 16% 66% 72% 17% EQUITY PROPERTY CASH and BONDS EQUITY PROPERTY CASH and BONDS EQUITY PROPERTY CASH and BONDS
  36. 36. INVESTMENT PROCESS (B) EQUITY PROPERTY FIXED INTEREST Manager Universe Manager Universe Manager Universe Absa Efficient Prudential Cadiz Stanlib RMB Efficient SIM Old Mutual Fund Universe Fund Universe Fund Universe Asset Allocation Listed Property Varied Specialist General Equity Sector TiltsQualitative Manager Assessment: Bi-Annual Due Diligence and Scoring ProcessQuantitative Fund Analysis: MorningstarPortfolio Construction: Correlation
  37. 37. UNDERLYING FUNDS GROWTH OVER 6 YEARS TO 23 MARCH 2011 CUMULATIVE RETURN OLD MUTUAL MINING & RES R………………………………….257.22 ABSA SELECT EQUITY…………………………………………………194.12 EFFICIENT EQUITY……………………………………………………..149.61 EFFICIENT PROPERTY…………………………………………………143.08 FTSE/JSE ALL SHARE PR ZAR………………………………………122.21 RMB INCOME PLUS A………………………………………………..81.43
  38. 38. EFFICIENT INTERNATIONAL FoFA division of Efficient Group
  39. 39. ASSET + FUND ALLOCATION EFFICIENT INTERNATIONAL FOF (USD) 28 FEBRUARY 2011 ASSET FUND ALLOCATION ALLOCATION Templeton Emerging Markets Small Cap Fund 12% VAM-Funds US Microcap Growth Fund 11% 79% Fidelity China Focus Fund 11% Fidelity Australia Fund 9% Templeton Brazil Russia India China Fund 8% Orbis Asia ex Japan Fund 7% 9% Fidelity Global Technology Fund 7% Franklin Technology Fund 6% 7% 1% 4% Franklin Mid-East North Africa Fund 5% Templeton Latin America Fund 3% VAM-Funds International Real Estate Fund 9%Equity Fidelity Emerging Market Debt Fund 5%Real Estate ACPI Global Credit Fund 2%Fixed Interest SPDR Gold Exchange Traded Fund 4%Gold Cash 1%Cash 0.00% 5.00% 10.00% 15.00%
  40. 40. REGIONAL ALLOCATION EFFICIENT INTERNATIONAL FOF (USD) 28 FEBRUARY 2011 REGIONAL REGIONAL BREAKDOWN OVERVIEW US & CANADA 30% EUROPE 5% 38% 62% JAPAN 3% CHINA 23% ASIA ex JAPAN & CHINA 10% LATIN AMERICA 10% AUSTRALIA 9% MID-EAST & AFRICA 6% UNSPECIFIED 4%Developed Markets Emerging Markets 0.00% 10.00% 20.00% 30.00% 40.00%
  41. 41. PERFORMANCE (USD) OMGB EFFICIENT INTERNATIONAL FOF (USD) 28 FEBRUARY 2011 20 SEP 2005 (INCEPTION) - 28 FEB 2011 PERFORMANCE IN BASE CURRENCY (USD)$17 000.00$15 000.00$13 000.00$11 000.00 $9 000.00 $7 000.00 $5 000.00 OMGB Efficient International FoF : +29% MSCI World Index : 10% High Water Mark USD 3M LIBOR
  42. 42. PERFORMANCE (ZAR) OMGB EFFICIENT INTERNATIONAL FOF (USD) 28 FEBRUARY 2011 20 SEP 2005 (INCEPTION) - 28 FEB 2011 PERFORMANCE IN LOCAL CURRENCY (ZAR)R19 000.00R18 000.00R17 000.00R16 000.00R15 000.00R14 000.00R13 000.00R12 000.00R11 000.00R10 000.00 R9 000.00 OMGB Efficient International FoF : +68% MSCI World Index : +24%
  43. 43. RANKINGS OMGB EFFICIENT INTERNATIONAL FOF (USD) 28 FEBRUARY 2011GIFS* Rankings to 28 Feb 2011 5 YEARS 4 YEARS 3 YEARS 2 YEARS 1 YEARUSD Aggressive Allocation Return Rank Return Rank Return Rank Return Rank Return RankFidelity RMT-Balanced 40.67 1 23.20 2 6.68 8 66.83 13 14.36 28SCB MPF Ad-Fidelity GIF Bal 39.56 2 22.23 4 5.97 9 66.02 15 14.07 30Sun Life First State MPF Progrs Gr A 39.26 3 22.42 3 7.37 7 63.79 19 15.66 14OMGB Efficient International USD 38.31 4 24.98 1 20.15 2 39.74 54 12.36 48Principal 600 Glbl Growth 36.08 5 15.51 6 1.57 17 64.30 16 17.29 10Principal 800 Glbl Growth 36.05 6 15.61 5 1.64 16 64.30 17 17.30 9Principal 500 Balanced Growth A 31.80 7 11.77 16 -0.91 29 61.68 25 16.06 13SCB MPF Ad-Schroder Bal Inv 31.67 8 15.31 7 4.98 10 61.39 26 14.89 19SCB MPF-Balanced 31.49 9 13.76 9 2.20 15 53.93 39 14.78 21Invesco MPF Balanced A 31.28 10 12.24 13 1.56 18 50.09 47 12.40 47SCB MPF Ad-Balanced 31.18 11 13.75 10 2.28 14 53.63 40 14.67 22ING MPF MT Basic Bal Growth 31.02 12 13.09 11 4.35 11 57.34 33 13.86 33Schroder MPF Balanced Invmt - A 30.43 13 13.91 8 3.66 13 61.91 24 14.50 26ING MPF MT Comp Bal Growth 30.17 14 12.52 12 3.92 12 56.96 35 13.62 37Bank Consortium E70 Mixed Asset 29.68 15 11.34 17 0.29 21 55.23 38 14.57 24RCM Balanced A 29.30 16 12.15 14 -0.68 28 52.72 43 14.79 20BEA (IS) Growth 28.94 17 10.91 19 1.30 19 58.87 29 13.20 40SCB MPF Ad-RCM Bal 28.06 18 11.29 18 -1.24 30 52.01 44 14.50 25SCB MPF Ad Invesco Glbl Bal 26.37 19 9.30 21 -0.15 26 48.22 48 11.53 51BEA (MPF) Growth 26.11 20 8.95 22 0.16 24 57.41 32 12.72 45Number of investments ranked 45 50 53 65 68Peer Group Average 19.34 4.34 -0.53 56.70 12.43*GIFS = Global Investment Fund Sector
  44. 44. EFFICIENT PRIVATE CLIENT BOUTIQUEA division of Efficient Group
  45. 45. QUESTIONS?
  46. 46. THANK YOU
  47. 47. Contact us on :012 460 9580 (Pretoria)021 410 6000 (Cape Town)www.efselect.co.zaAll information used in this presentation and any material referred to herein is subject tocopyright and may not be reproduced or used (other than for information purposes) in anyway, unless prior written permission has been granted by Efficient Select (Pty) Ltd or theappropriate copyright owner.This presentation is intended for information purposes only and none of the informationcontained in this presentation constitutes investment advice or a recommendation,solicitation or offer by Efficient Select (Pty) Ltd to buy or sell any financial product. Theinformation contained in this presentation has been prepared without consideration of theinvestment objectives, financial situation or particular needs of any particular recipient.Any transactions described in this presentation may give rise to substantial risk, includingthe possible loss of principal value, and are not necessarily suitable for all investors. Thispresentation should accordingly not be considered as a substitute for the exercise of yourown judgment or for obtaining independent advice based on your personal preferencesand circumstances. Although all precautions have been made to ensure reliability of dataand information contained in this presentation, Efficient Select (Pty) Ltd cannot guaranteethe reliability or accuracy thereof.Past performance referred to in this presentation is not necessarily indicative of futureperformance. Similarly, forecasts contained in this presentation involve risks anduncertainties which may result in future performance, outcomes and results which differmaterially from such forecasts. You are accordingly cautioned not to place undue relianceon any historical data, general information or forecasts used in this presentation.Efficient Select (Pty) Ltd accepts no liability whatsoever for any loss, damage (direct orconsequential) or expense suffered by a recipient as a result of undue reliance placed onany information contained in this presentation.Authorised Financial Services Provider • FSP No: 859

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