SIM is a philosophically grounded, multi-specialist, multi-product asset manager within the Sanlam group. It has one investment platform that leverages off the Sanlam book and brand. SIM provides asset management services through various specialist teams across multiple asset classes.

2. SIM is a philosophically
grounded, multi-specialist,
multi-product house, with one
investment platform that
leverages off the Sanlam
book and brand.

3. SanIam Investments Cluster
Mark Armien Daniel Robert Robert Nersan
Murning Tyer Kriel Roux Roux Naidoo
Capital Asset Wealth Employee Interna- Investment
Mgt Mgt Mgt Benefits tional Services
SCM SIM SPI GR SIIP SMMI
SPE GenX Calibre SUS SIM-Global SCI
Property Africa SSS SAMI Simeka
Dev. -EB India Blue Ink
SSS D Coris Octane
Distribution Support
Support: HR | Legal | Finance | Marketing | IT | Distribution Support

4. 4
SIM’s business model has evolved……
Sanlam Investments has provided asset management services to third parties since 1969
Division Asset Management Integrated Insurance Multi specialist
in Life by Investment based Asset Manager Asset Manager
(inc. Private Equity
company Bank (Gensec) Property etc.)
13yrs 12yrs 9yrs Today
ago ago ago
(Jan 1997) (Jan 1998) (Apr 2001)

5. Pragmatic value investment philosophy

6. Understanding the value of a business
Aggressive
high risk
Significant value
attributed to
future growth
A B C True Benjamin
Replacement Continuing Growth Graham students
value value
Conservative ● Historic info & facts ● Future earnings
low risk ● Book value potential
Div yield, Low PE

7. 4 tenets of Pragmatic Value Investing
Superior returns are generated through:
A belief in long term reversions to the mean
- market ratings (PE)
- growth rates
Value securities with respect to realistic expectations
Place less emphasis on forecasts and more on fact and track record
Hold investments for the long term

8. Multi-Specialist Teams

9. Fixed Income ILB’s
Chris Hamman André Roux
Asset
Money Active Bond
Credit Liability
Market Income Portfolios
Solutions
Gert Steenkamp Erica Nell Philip Liebenberg Hansie Myburgh Chris Hamman
Kashiefa Waggie Andre du Toit Erich Maritz Henriqueco Visser
Charl Smith Stephen Vlok Ntebogeng Mahlare Ntebogeng Mahlare
Avishal Khusial

10. 10
Size
SIM can take meaningful stakes in companies
Influence company boards and management
- unlock value
- encourage good corporate governance
Fluid access to management teams
Management teams generally willing to engage

11. 11
Size
Employ a large team of investment professionals
Very detailed and comprehensive proprietary research
- Dedicated asset allocation research team
- Dedicated small cap research team
Team members can become specialists

12. sim.multi-asset class funds
SIM Balanced
Benchmark: Median Morningstar
Potential Return (%)
AA Prudential Variable Equity
SIM Low Equity
Benchmark: Peer
Group Average
SIM Inflation Plus
Benchmark: CPI+4%
over a rolling 3 year
period
Risk (vol. %)

13. How

14. Outlook | Assumptions for Long-term returns: SA - Real
Equity returns 7.0%
Equity Risk premium 4.0%
Property returns 6.0%
Property premium 3.0%
Bond returns 3.0%
Inflation Risk premium 0.5%
ILB returns 2.5%
Term premium 0.5%
Cash returns 2.0%
0% 1% 2% 3% 4% 5% 6% 7%
Source : SIM

15. Outlook | What could you expect given these RETURN assumptions
CPI+5% (Domestic)
Long term real Weighted
Domestic Allocation
return average
Equity 30 7.0 2.1
Property 5 6.0 0.3
Bonds 10 3.0 0.3
ILB’s 20 2.5 0.5
Cash 35 2.0 0.7
Alpha 1.0
Total 100% 4.9%
Source : SIM

16. Outlook | Risk takers have been compensated …over the very long run
1900 – 2003, annual real return %
9
8 Equities
7
Bonds
6
5 Bills
4
3
2
1
0
-1
-2
-3
-4
Italy
Spain
Japan
Ireland
France
Canada
Belgium
Australia
Germany
Sweden
Denmark
Netherlands
Switzerland
United States
United Kingdom
South Africa
Source: Siegel, FAJ 2005

17. Outlook | SIM’s current positioning
Asset allocation Overweight Underweight Neutral
Equity Bonds
Global
Property Cash
Nominal Bonds
Domestic Inflation Linked Bonds Cash Equity
Property
1 March 2011

18. 0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
Jan 07
Mar 07
May 07
Source: SIM, 4 March 2011
Jul 07
Sep 07
Nov 07
Jan 08
Mar 08
May 08
INDI25
Jul 08
Sep 08
Nov 08
FINI15
Jan 09
Mar 09
RESI
May 09
Jul 09
Sep 09
SWIX
Nov 09
Jan 10
Mar 10
May 10
Jul 10
Sep 10
Nov 10
Outlook | SA Equities – NEUTRAL: Price to Intrinsic Value
Jan 11
Mar 11

19. 10
12
4
5
6
7
8
9
11
Source : I-Net
Jan 07
Mar 07
May 07
Jul 07
Sep 07
Nov 07
Jan 08
Mar 08
May 08
Jul 08
Sep 08
Nov 08
Jan 09
Mar 09
Outlook | SA long bonds - NEUTRAL
May 09
Jul 09
SA 10YGovernment Bond
Prospective real return
Sep 09
assuming 5.25% inflation
Nov 09
Jan 10
Mar 10
May 10
Jul 10
Sep 10
Nov 10
Jan 11
3%

20. Outlook | Offshore Equities – OVERWEIGHT: Price to Book
USA Europe Japan
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
Source: Citigroup

21. Outlook | Yields on global assets
Global
12 10yr ILB 10yr bond MSCI World DY Property DY
10
8
6
4
2
0
04 05 06 07 08 09 10 11
Source: Bloomberg

22. Outlook | Global Property – OVERWEIGHT: Local Currencies
500
450 Japan
400
SA
350
300
250
US Europe ex UK
200
150
100 Asia Global
UK
50
0
00 01 02 03 04 05 06 07 08 09 10 11
Source: Bloomberg | 7 March 2011

23. Outlook | Active Asset Allocation
09 Jan'09 06 Feb'09 02 Mar'09 06 Mar'09 15 May'09 05 Jun'09 02 Jul'09
08 Sep'09 12 Oct'09 15 Dec'09 09 Mar'10 20 Apr'10 07 May'10 25 May'10
13 Jul'10 30 Jul'10 17 Aug'10 25 Aug'10 8/19 Oct'10 14 Dec'10
5%
4%
3%
2.0%
2% 1.5%
1.0%
1%
Active bet
0% 0%
0%
-1% -0.5%
0% -2.0%
-2%
-2.0%
-3%
-4%
-5%
Local Local Local Local Local Foreign Foreign Foreign Foreign
Source: SIM Equities Bonds ILB's Property Cash Equity Bonds Property Cash

26. sim.multi-asset class funds
SIM Balanced
Benchmark: Median Morningstar
Potential Return (%)
AA Prudential Variable Equity
SIM Low Equity
Benchmark: Peer
Group Average
SIM Inflation Plus
Benchmark: CPI+4%
over a rolling 3 year
period
Risk (vol. %)

27. sim.multi-asset class funds
Potential Return (%)
SIM Inflation Plus
Disciplined focus on downside risk
High risk-adjusted returns – low volatility
Equity component constructed from houseview
SWIX portfolio
SIM Inflation Plus
Derivatives used to hedge exposure tactically.
Benchmark: CPI+4%
over a rolling 3 year
period
Risk (vol. %)

28. sim.multi-asset class funds
Potential Return (%)
SIM Low Equity
Actively managed
SIM Low Equity
Benchmark: Peer Min 60% in high income yielding
Group Average instruments
Stable, low equity balanced fund
Max 40% equities – stock picking
Derivatives used to hedge exposure
tactically
Risk (vol. %)

29. sim.multi-asset class funds
SIM Balanced
Benchmark: Median Morningstar
Potential Return (%)
AA Prudential Variable Equity
SIM Balanced
Grow capital steadily
Long term strategic asset allocation
Specific stock picking equity component
Risk (vol. %)

30. Downside protection | Monthly performance to February 2011
SIM Balanced Fund - A SIM Inflation Plus Fund
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11
Source: MoneyMate

31. Downside protection | Monthly performance to February 2011
SIM Balanced Fund - A SIM Inflation Plus Fund SIM Low Equity Fund - A1
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11
Source: MoneyMate

32. SIM Balanced | February 2011
SIM Balanced Fund - A Asset Alloc Prud Var Eq
25% 23.8%
20%
17.4%
15.9%
15%
12.1%
11.3%
10% 9.0%
7.1%
6.1%
5% 3.9%
2.7%
0%
3 Months 6 Months 1 Year 2 Years 3 Years
Source: MoneyMate

33. SIM Inflation Plus | February 2011
SIM Inflation Plus Fund CPI+4%
14%
11.9%
12%
10.4%
10.0%
10%
8.8%
7.9%
8%
7.0%
6.1%
6%
3.9%
4%
2.5% 2.4%
2%
0%
3 Months 6 Months 1 Year 2 Years 3 Years
Source: MoneyMate

34. SIM Low Equity peers
SIM Low Equity Fund
Stanlib Balanced Cautious Fund
Old Mutual Stable Growth Fund
Coronation Balanced Defensive Fund
Nedgroup Investment Stable Fund
RMB Conservative Fund
Allan Gray Stable Fund
Investec Cautious Managed Fund

35. SIM Low Equity | Performance since inception (July 2010)
Performance Rank
SIM Low Equity Fund - A1 11.0% 1
Fund 1 10.5% 2
Fund 2 9.6% 3
Fund 3 9.4% 4
Fund 4 8.9% 5
Fund 5 6.6% 6
Fund 6 3.8% 7
Fund 7 2.9% 8
Asset Alloc Prud Low Eq 7.7%
NAV to NAV – Local Currency
From: 30 Jun 2010 to 28 Feb 2011
Source: MoneyMate Income Reinvested on payment date

36. SIM Low Equity (since inception)
Fund 1 Fund 2 Fund 3
Fund 4 Fund 5 Fund 6
Fund 7 Fund 8 SIM Low Equity Fund
14%
12%
10%
8%
6%
4%
2%
0%
-2%
July Aug Sep Oct Nov Dec 2011 Jan Feb
Source: MoneyMate

39. Some other exciting stuff…

41. sim.sanlam.com

42. Some of our Creative

43. Some of our Creative