1. Senate Group
14 March 2014

2. Data as at 28 February 2014
USD 53%
GBP 10%
SEK 1%
ASIAN 0%
JPY 0% (USD)
AUD 1%
ZAR 23%
EUR 10%
CHF 2%
The Cape Argus Cycle Tour x 2

3. Data as at 28 February 2014
Agenda
Update on Aylett & Co.
Nedgroup Bravata Fund
Investment Strategy

4. Data as at 28 February 2014
Key facts
• Founded in 2005
• Independent Asset Management Boutique
• Our view is long term and legacy inspired
• Bottom-up stock pickers
• Tested philosophy and robust investment process
• Integrity, energy and intelligent behaviour form part
of the Aylett & Co. ethos.
Update on Aylett & Co.

5. Data as at 28 February 2014
Aylett at a glance
• Assets under management
Update on Aylett & Co.

6. Data as at 28 February 2014
AUM Breakdown
• Total AUM: R2.1 billion
Update on Aylett & Co.
Equity Mandates
50%
Worldwide Mandates
39%
Balanced Manadates
8%
Absolute Return and
Hedge Fund Mandates
3%
Equity Mandates
Worldwide Mandates
Balanced Mandates
Absolute Return and Hedge Fund Mandates
Product Split:

7. Data as at 28 February 2014
Aylett at a glance
• Assets under management
• Continue to experience flows
Update on Aylett & Co.

8. Data as at 28 February 2014
Aylett at a glance
• Assets under management
• Continue to experience flows
• Team of 8 with strong academic credentials
Update on Aylett & Co.

9. Data as at 28 February 2014
Aylett at a glance
• Assets under management
• Continue to experience flows
• Team of 8 with strong academic credentials
• Diverse product offering
Update on Aylett & Co.

10. Data as at 28 February 2014
Aylett & Co. Products
Update on Aylett & Co.

11. Data as at 28 February 2014
Aylett & Co. Products
Update on Aylett & Co.
-500
0
500
1 000
1 500
2 000
2 500
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
AuM (Mn)
Aum (Mn)
Bravata launched 1 October 2005
Equity Fund launched 3 July 2006
Hedge Fund I launched 13 June 2008
Hedge Fund II launched 1 September 2011
The Aylett Hedge Fund – 1 September 2013
Balanced Fund launched 1 November 2013

12. Data as at 28 February 2014
Aylett at a glance
• Assets under management
• Continue to experience flows
• Team of 8 with strong academic credentials
• Diverse product offering
• Performance has been excellent across all products
Update on Aylett & Co.

13. Data as at 28 February 2014
-20
20
60
100
140
180
220
260
300
340
-25
0
25
50
75
100
125
150
175
200
225
Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14
Cumulative Outperformance
Aylett Equity Prescient Fund - A1
ALSI TRI* Indexed
* Total Return Index assumes dividends and distributions are reinvested
**Cumulative outperformance since inception is 41.10%
Source: Bloomberg, end February 2014
AYEPF Cumulative Outperformance
AYEPF Performance

14. Data as at 28 February 2014
Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13
95
120
145
170
195
220
245
270
Source: Bloomberg, inception to end February 2014
Bravata
CPI Indexed
CPI + 5 Indexed
Nedgroup Bravata Worldwide Flexible Fund
Bravata Performance

15. Data as at 28 February 2014
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14
50
75
100
125
150
175
200
Fund Indexed
STeFI Indexed
Note: Fund structure changed on 1 September 2013 Source: Bloomberg, inception to end February 2014
Fund outperformance since inception is 36.6%
The Aylett Hedge Fund
AHF Performance

16. Nedgroup Bravata Worldwide Flexible Fund

17. Data as at 28 February 2014
What is Bravata?
Bravata is a rand denominated Worldwide Asset
Allocation Flexible Fund
• Worldwide: Bravata may invest in both South African and foreign markets. No
minima are set for either domestic or foreign assets.
• Flexible Asset Allocation: the portfolio can invest in a flexible combination of
investments in equities, bonds and money thus giving exposure to multiple asset
classes.
• Rand Denominated: allows easy offshore exposure without the hassle of
exchanging currency and SARB applications.
Nedgroup Bravata

18. Data as at 28 February 2014
Our value proposition
• Amongst peers, Bravata has performed well
Bravata Performance

19. Data as at 28 February 2014
Our value proposition
• Amongst peers, Bravata has performed well
Bravata Performance
For internal use only as this does not comply with the code of advertising for unit trusts
YTD 1 year 2 years 3 years 5 years 7 years
2014/01/01 2013/03/01 2012/03/01 2011/03/01 2009/03/01 2007/03/01
2014/02/28 2014/02/28 2014/02/28 2014/02/28 2014/02/28 2014/02/28
Group/Investment Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank
(ASISA) Wwide MA Flexible
Coronation Optimum Growth A 1.07 16 37.57 4 33.96 2 27.26 1 22.99 1 11.01 4
Foord Flexible FoF R 0.96 17 27.64 7 28.23 4 24.67 3 22.85 2
Coronation Market Plus 1.64 9 23.33 15 23.09 12 19.39 6 22.84 3 13.48 1
Efficient BCI Worldwide Flexible 0.71 19 21.60 17 23.48 10 19.03 8 18.73 4 12.75 2
Nedgroup Inv Bravata Ww Flex A 0.79 18 29.42 6 28.08 5 21.38 4 17.87 5 10.71 5
Oasis Crescent Worldwide Flexible FoF D 3.21 4 26.35 9 23.93 9 17.16 10 17.74 6
Imalivest MET Worldwide Flexible 3.08 5 43.25 1 37.25 1 24.73 2 16.52 7
MET Worldwide Opportunities FoF A -1.55 29 16.51 20 19.74 17 15.46 15 16.24 8
Marriott Worldwide Flexible FoF 0.68 20 25.36 11 24.79 7 18.62 9 15.44 9 7.80 6
MitonOptimal IP Worldwide Flex FoF A1 1.55 11 23.73 13 21.07 14 16.02 13 15.37 10
Consilium MET Worldwide Flexible 0.48 25 26.33 10 25.00 6 19.27 7 15.33 11
Quantum MET Worldwide Flexible FoF 0.59 23 23.33 16 20.69 15 15.97 14 14.59 12
Olympiad MET Worldwide Flexible FoF 0.61 22 16.11 21 19.55 18 14.98 17 13.54 13 5.01 9
Flagship IP Worldwide Flexible 5.25 1 41.13 2 23.24 11 16.19 12 13.22 14 6.44 8
Analytics ACi Worldwide Flexible FoF A 1.90 8 24.46 12 22.52 13 15.45 16 12.44 15 7.23 7
Flagship IP Worldwide Flexible FoF 4.64 2 40.35 3 28.48 3 21.12 5 11.99 16 11.94 3
GCI MET Worldwide Flexible FoF 1.35 14 17.11 19 16.57 19 11.97 18 9.47 17
Peer Group Average 1.25 26.753 24.039 18.648 16.304 9.5969
Peer Group Count 30 21 20 18 17 9

20. Data as at 28 February 2014
Our value proposition
• Amongst peers, Bravata has performed well
• Amongst worldwide flexible choices Bravata has been a better performer
than offshore flexible funds
Bravata Performance

21. Data as at 28 February 2014
• Amongst worldwide flexible choices Bravata has been a better performer
than offshore flexible funds
Our value proposition
Bravata Performance
For internal use only as this does not comply with the code of advertising for unit trusts
Group/Investment Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank
(ASISA) Wwide MA Flexible and Global Wwide Flexible
Coronation Optimum Growth A 1.07 32 37.57 7 33.96 4 27.26 2 22.99 1 11.01 4
Coronation Global Em Mkts Flex [ZAR] A -2.68 48 21.44 33 26.17 18 19.79 17 22.98 2
Foord Flexible FoF R 0.96 34 27.64 20 28.23 16 24.67 5 22.85 3
Coronation Market Plus 1.64 24 23.33 30 23.09 28 19.39 19 22.84 4 13.48 1
RE:CM Global FF A 4.45 3 47.31 1 38.66 1 30.31 1 20.14 5
Efficient BCI Worldwide Flexible 0.71 36 21.60 32 23.48 26 19.03 21 18.73 6 12.75 2
Old Mutual Intl Gth FoF A 2.47 16 43.99 2 35.55 3 25.69 3 18.30 7 8.64 9
Nedgroup Inv Bravata Ww Flex A 0.79 35 29.42 17 28.08 17 21.38 13 17.87 8 10.71 5
Oasis Crescent Worldwide Flexible FoF D 3.21 7 26.35 23 23.93 24 17.16 24 17.74 9
Imalivest MET Worldwide Flexible 3.08 8 43.25 3 37.25 2 24.73 4 16.52 10
MET Worldwide Opportunities FoF A -1.55 47 16.51 36 19.74 33 15.46 30 16.24 11
Marriott Worldwide Flexible FoF 0.68 37 25.36 25 24.79 22 18.62 22 15.44 12 7.80 11
MitonOptimal IP Worldwide Flex FoF A1 1.55 26 23.73 28 21.07 30 16.02 28 15.37 13
Consilium MET Worldwide Flexible 0.48 42 26.33 24 25.00 21 19.27 20 15.33 14
Quantum MET Worldwide Flexible FoF 0.59 40 23.33 31 20.69 31 15.97 29 14.59 15
Discovery Global Balanced FoF 2.98 11 34.58 11 29.94 11 22.12 10 14.48 16
Marriott International Growth FF A 2.94 12 36.29 9 31.97 7 23.17 6 14.30 17 7.66 13
Peer Group Count 49 37 36 34 33 20
2012/03/01
2014/02/28
2011/03/01
2014/02/28
2009/03/01
2014/02/28
2007/03/01
2014/02/28
2014/01/01
2014/02/28
2013/03/01
2014/02/28
YTD 1 year 2 years 3 years 5 years 7 years

22. Nedgroup Bravata Worldwide Flexible Fund
Portfolio Detail

23. Data as at 28 February 2014
Bravata Portfolio Detail
Top 15 Holdings % NAV (physical)
1 Berkshire Hath-B 5%
2 Cisco Systems 4%
3 Orbis-Jpn Eqt Us 4%
4 Wal-Mart Stores 3%
5 Loews Corp 3%
6 Bank Ny Mellon 2%
7 Sanofi 2%
8 Barclays Africa 2%
9 Tesco Plc 2%
10 Redwood Trust 2%
11 Carrefour Sa 2%
12 Recm & Calibre L 1%
13 Leucadia Natl 1%
14 Bp Plc 1%
15 Pargesa Holdi-Br 1%
Total 36.0%
Bonds
9%
Cash
44%
Equity
47%
Asset Allocation

24. Data as at 28 February 2014
Bonds
9%
Cash
44%
South African
Equity
6%
USA Equity
24%
European Equity
6%
UK Equity
4%
Japanese
Equity
4%
Swedish Equity
0%
Australian Equity
1%
Swiss Equity
2%
Other
47%
Asset Allocation & Equity Split
• Total AUM: R828 million
Bravata Portfolio Detail

25. Data as at 28 February 2014
Regional Currency Exposure
Bravata Portfolio Detail
USD 53%
GBP 10%
SEK 1%
ASIAN 0%
JPY 0% (USD)
AUD 1%
ZAR 23%
EUR 10%
CHF 2%

26. Data as at 28 February 2014
Investments with great yields
Bravata Portfolio Detail

27. Data as at 28 February 2014
Income Enhancing Strategies
• ALE Property Group
Bravata Portfolio Detail

28. Data as at 28 February 2014
ALE Property Group

29. Data as at 28 February 2014
Income Enhancing Strategies
• ALE shares
▫ Aug 2010 bought ALE shares to the value of AUS $326,000
▫ June 2012 profit + dividends amount to AUS $81,000
▫ Yield of approximately 12% per annum
ALE Property Group

30. Data as at 28 February 2014
Income Enhancing Strategies
• ALE shares
• ALE notes
▫ April 2011 started buying ALE notes
▫ Bought to the value of AUS $205,000
▫ To date have earned roughly AUS $42,000
▫ Yield of approximately 20%
ALE Property Group

31. Data as at 28 February 2014
Income Enhancing Strategies
• ALE currency swaps
ALE Property Group
31 May 2013 24 June 2013 18 July 2013 11 August 2013
8.2
8.4
8.6
8.8
9
9.2
9.4
9.6
9.8
Rand vs AUS $

32. Data as at 28 February 2014
Income Enhancing Strategies
• ALE shares
• ALE notes
• ALE currency swaps
▫ June 2013 – Aug 2013 currency swaps
▫ Rand weakened against the AUS $
▫ Swapped to the value of AUS $200,000
▫ Earned roughly R107,000
(R98,000 profit + R11,000 interest)
ALE Property Group

33. Data as at 28 February 2014
Income Enhancing Strategies
• ALE Property Group
• Barclays Group
Bravata Portfolio Detail

34. Data as at 28 February 2014
Income Enhancing Strategies
Barclays

35. Data as at 28 February 2014
Investment Ideas that worked
• Reinet
Reinet

36. Data as at 28 February 2014
Reinet
22/01/2014 (eur) (zar)
Reinet NAV Value Value %NAV
Listed 2 843 41 757 72%
BAT shares 2 843 41 757 72%
Other 0 0 0%
Unlisted 1 378 20 201 35%
Cash 229 3 357 6%
Derivative asset - pull and call
options -4 -484 0%
Other -478 -7 007 -12%
Sub-Total 3 968 58 248 100%
Minority Interest -14 -205 0%
Total 3 954 58 043 100%

37. Data as at 28 February 2014
Discount to NAV
• Why would it trade at a discount?
1. Can buy underlying investments yourself
2. Holdco costs
a) Management Fee
b) Performance Fee
3. They tend to keep the cash
• BUT it is not justified…
1. Who better to know when to sell BAT?
2. History of treating minorities fairly
3. Exceptional returns earned on investments to date
(which we cannot get exposure to)
4. Performance Fee based on Euro price, but got headroom
(free ride)
Reinet

38. Data as at 28 February 2014
Discount History
Reinet

39. Data as at 28 February 2014
Discount moved from 34% to 25%
Reinet
34%
25%

40. Investment Strategy

41. Data as at 28 February 2014
• Deflation at the FED
Investment Strategy

42. Data as at 28 February 2014
US New One Family Houses Sold
• Annual total
Investment Strategy

43. Data as at 28 February 2014
• South Africa: Aggregate Valuations
Investment Strategy

44. Data as at 28 February 2014
• South Africa vs. Emerging Markets Valuations
Investment Strategy

45. Data as at 28 February 2014
• The Naspers effect
Investment Strategy

46. Data as at 28 February 2014
• The Naspers effect
Investment Strategy

47. Data as at 28 February 2014
• The Naspers effect
Investment Strategy

48. Data as at 28 February 2014
• SA economic slowdown
Investment Strategy

49. Data as at 28 February 2014
• SA economic slowdown
Investment Strategy

50. Data as at 28 February 2014
• SA market is expensive
Investment Strategy

51. Data as at 28 February 2014
• Taxation
Investment Strategy

52. Data as at 28 February 2014
International (Offshore Equity)
• Large Caps
• Predictable
• Balance Sheet Strength
• Majority US
• Small bets: Australia, Japan
Investment Strategy

53. Data as at 28 February 2014
Looking forward
• Avoid long term bonds
• Maintain maximum exposure offshore
• Increase exposure to small cap and mid cap markets
• “Cash is the ultimate contrarian bet”
Investment Strategy

54. Data as at 28 February 2014
Aylett Wwide Flexible Performance
Investment Strategy

55. Data as at 28 February 2014
Aylett & Co. is an authorised financial services provider approved by the Registrar of
Financial Services Providers (www.fsb.co.za) to provide intermediary services and
advice in terms of the Financial Advisory and Intermediary Services Act 45 of
2002. Market fluctuations and changes in rates of exchange or taxation may have an
effect on the value, price or income of investments. Since the performance of
financial markets fluctuates, an investor may not get back the full amount invested.
Past performance is not necessarily a guide to future investment performance.
Information and opinions have been compiled or arrived at by Aylett & Co. from
sources believed to be reliable, but Aylett & Co. does not accept liability for any loss
arising from the use hereof nor makes any representation as to their accuracy or
completeness. Any underlying research or analysis has been procured by Aylett & Co.
for its own purposes and may have been acted on by Aylett & Co. or an associate for
its or their own purposes.
Thank you