Capio Capital (Pty) Ltd

General information

PORTFOLIO DETAIL

Investment Manager The Portfolio is managed by the Capio Capital Investment team.

Benchmark The portfolio is designed to consistently outperform the ALSI
Benchmark and is aimed at the more risk averse long term investor.

Objective The primary objective is to provide above-average total returns (capital plus income) over an investment horizon of three years or more. The portfolios are designed to meet the needs of long term investors looking for concentrated equity exposure through a diversified portfolio of quality shares spread across the resources, financial and industrial sectors of the market.

Initial Fee Zero

Annual Fee The annual management fee on the Capio Capital Dividend Income Portfolio is 1% of the invested capital.
The annual fee is based on investment performance with the first
20% of growth per annum going to the investor, while any growth
above 20% is split (75% / 25%) to the Investor.

BACKGROUND

The Capio Capital Long Term Growth Portfolio invests in equities mostly listed in the TOP 100 on the JSE.

Capio Capital is a private client asset manager, that focuses on building wealth for our clients through long term equity portfolios. We focus on investing in equities that are high quality, high dividend yielding, blue chips. We have been constructing and actively managing equity portfolios for the last 15 years. The basic investment philosophy is to identify shares that are undervalued and using free capital of the investor to build positions over the long term. Furthermore, we pride ourselves on evaluating individual portfolios on a monthly basis and reporting back to the client if we feel that changes are necessary. All portfolios are actively, individually managed. For more info go to our website: www.capiocapital.co.za

SHARE SELECTION PROCESS

Shares are identified as undervalued in terms of:

Net Asset Value
Price Earnings Ratio comparative to its peers
Equities that are in line to produce exceptional results, corporate actions, etc.
Star performers in undervalued sectors

Capio Capital Model Portfolio Statistics

The current model portfolio will be structured around the following companies:

Stock: P/E Current Price Divi Yield
British American Tobacco: 20 435 3.5
MTN: 14 158 6.9
Sasol: 11 355 3.35
Anglo American: 7.5: 255 2.3
Impala Platinum: 13.3: 133 3.5
Coronation: 16.5: 28.50 6.8
Richemont 16.5: 52.50: 0.88
Discovery 14 58.50 2.2
Capitec 19 218 2
Brait Holdings 5 28.20 0.88
BHP Billiton 7.8 256 3.3
Coal of Africa -2.9 3.30 0
Pallinghurst 2.8 2.20 0
Woolies 20.8 56.50 3.55

Capio Capital long term model portfolio

The current model portfolio will be structured around the following companies:

• Anglo American – we prefer to be long of AGL close to R250.00
• MTN – we are buyers of MTN at levels close to R145.00
• NASPERS – we are buyers of NPN close to R450.00
• British American Tobacco – we are buyers below R380.00
• Amplats – we are buyer of the stocks close to R410
• FirstRand – we are buyers of FSR close to R26.00
• Pallinghurst – a junior miner trading at a significant discount its net asset value. Buy @ R4.10
• SASOL – we are buyers of this energy play close to R350. Average target price is close to R500.00
• Richemont (CFR) – a global giant that sells luxury products to the rich. Should be a winner for years to come. Buy @ R47.50
• Woolies – we are buyers close to R45.00
• Capitec – we are buyers of the stock close to R210.00 – and believe that R250 is reachable in the near future.
• BRAIT Holdings – a diversified retail investment holding company that has a large exposure to the Pepcor group. Very conservative retail play. Buy at R20.00
• Coal of Africa – exposure to this company will give the investor chance to benefit from the rise in the coal price. We are buyers close to R4.50.
• Exxaro – this local miner has a broad base of quality coal, mineral sands and iron ore assets. It is attractively priced, and has a great management team. We are buyers close to R175.00
• BHP Billiton – we are buyers of this globally diversified miner @ R245.00

We feel that these companies will offer the investor the best potential returns over the long term and by structuring the portfolio around these stocks, the investor will gain the greatest advantage for capital growth and dividend returns. Total dividend yield of the portfolio: 3.4%

3 YEAR PORTFOLIO PERFORMANCE

• Total Return over three years, dividends reinvested Capio Capital Portfolio: 115%
• Total Return over three years, dividends reinvested of JSE All Share: 63.49%
• Annualised return Capio Capital portfolio: 29.2%
• Annualised return JSE All Share: 15.8%

PORTFOLIO STRUCTURE

The number of stocks that will be invested in will depend on the size of the investment.

For example:

R100 000: We will be investing in 2 stocks
R200 000: We will be investing in 3 stocks
R500 000: We will be investing in 5 stocks
R1 000 000: We will be investing in 8 stocks

For further information contact the Capio Capital Investment team on
Phone 021 – 979 1731. or

emial: christof@capitalcapio.co.za
emial: wihann@capiocapital.co.za
emial: etienne@capiocapital.co.za