Five-star rating: FNB Multi Manager Equity Fund proves its value as a part of any well-diversified

portfolio

21 September 2022 – The primary objective of any equity focused investment fund should be to
deliver above-average growth for investors over time. But as any equity investor knows, targeting high
returns inevitably involves higher levels of risk than one would be exposed to with more conservative
asset classes. And higher risk and volatility levels can make for an uncomfortable investment
experience, even for the most experienced of investors.

A proven track record of effective risk adjusted returns over time recently earned the FNB Multi
Manager Equity Fund (L-class) a five-star rating from the highly respected global investment research
provider, Morningstar.

“The FNB Multi Manager Equity Fund has a stated aim of providing investors with above-average
growth over the medium- to long term, by investing primarily in equities, but it focuses on doing so in
a way that consistently balances risk and return to ensure that investors are not faced with the need
to make difficult, emotionally based investment decisions in response to uncomfortable levels of
volatility,” says Renzi Thirumalai, Head of Investments at FNB Wealth and Investments.

He adds that, “this is precisely the reason why any equity investment fund worth its salt need to not
only focus on the ultimate destination it targets for investors, but also on the journey it takes them on
to reach that destination. The established track record of the FNB Multi Manager Equity Fund
exemplifies the value of such a dual commitment”.

Thirumalai explains that “the five-star rating from Morningstar stands as strong validation of the
effectiveness of the FNB Multi Management approach, which combines active asset allocation with
the careful selection and management of highly complementary fund managers.”

“The five-star rating places the offering in the top 10% of similar funds evaluated by Morningstar in
terms of risk-adjusted performance over three years,” he points out.
Carla de Waal, head of multi management and manager selection at FNB, added that the FNB Multi
Manager Equity Fund provides a well-constructed exposure to six underlying managers following
different yet complementary investment styles. The L-class is accessible through FNB Investor
Services (Pty) Ltd (FNB’s LISP). De Waal also emphasises that the Morningstar rating is for a period of
time that fell mainly within the Covid-19 pandemic, with its concomitant impacts on investment
markets and funds the world over. “Our multi-management investment philosophy is built on the solid
foundations we have established over the years in terms of our ability to choose the finest fund
managers, blend them together in weightings aimed at best meeting the expectations of our investors,
and leverage their expertise to give effect to our active management approach,” she explains, “and
this makes our multi managed fund range, including the FNB Multi Manager Equity Fund, an invaluable
tool that investors can leverage to build a well-diversified, resilient and successful portfolio that can
stand firm in the face of any market challenge and minimise any fear-based, short-term actions that
could have negative long-term consequences.”

Ends.

Notes to editors:

About Morningstar Fund Awards

Morningstar fund category and fund house awards are based on Morningstar fund data. The awards
methodology emphasises the one-year period, but funds must also have delivered strong three- and
five-year returns after adjusting for risk within the award peer groups in order to obtain an award. In
selecting winners, fund returns are adjusted for risk using Morningstar Risk, a measure which imposes
a higher penalty for downside variation in a fund’s return than it does for upside volatility.

About FNB Multi Manager Equity Fund

Investment in the FNB Multi Manager Equity Fund can be achieved indirectly via the FNB Horizon
Series or one of FNB’s Tax-Free Unit Trusts, or directly through an FNB Investment Account with the
assistance of an FNB Wealth Manager.
FNB CIS Manco disclaimer:

FNB CIS Manco (RF) (Pty) Ltd (Registration Number 2006/036970/07) (“FNB CIS Manco”) is an
approved Collective Investment Schemes Manager in terms of the Collective Investment Schemes
Control Act, No. 45 of 2002. The FNB CIS Manco is regulated by the Financial Sector Conduct Authority
("the Authority) and is a full member of the Association for Savings and Investment South Africa
(“ASISA”). This document and any other information supplied in connection with the FNB CIS Manco
is not “advice” as defined and/or contemplated in terms of the Financial Advisory and Intermediary
Services Act, 37 of 2002 (“the FAIS Act”) and investors are encouraged to obtain their own
independent advice prior to buying participatory interests in the collective investments scheme (“CIS”)
portfolios issued under the FNB CIS Manco. Any investment is speculative and involves significant risks
and therefore, prior to investing, investors should fully understand the portfolios and any risks
associated with them. Collective Investment schemes in Securities are generally medium to long term
investments. If a potential investor requires material risks disclosures for the foreign securities
included in a portfolio, the manager will upon request provide such potential investor with a
document outlining: potential constraints on liquidity and repatriation of funds; macroeconomic risk;
political risk; foreign exchange risk; tax risk; settlement risk; and potential limitations on the
availability of market information. The value of participatory interests in collective investment
schemes may go down as well as up and past performance is not necessarily a guide to the future. For
all portfolios forward pricing is used and portfolio valuations take place at approximately 15h00 each
business day (17h00 at month and quarter end) with an exception for Fund of Funds portfolio
valuation take place at approximately 17h00 each business day using the underlying funds valuations
of the previous day. Instructions to redeem or repurchase must reach the FNB CIS Manco before
14h00 to ensure same day value. Excessive withdrawals from the portfolio may place the portfolio
under liquidity pressures. In such circumstances, a process of ring-fencing of withdrawal instructions
and managed pay-outs over time may be followed. CIS portfolios are traded at ruling prices and can
engage in borrowing and scrip lending. Fluctuations or movements in exchange rates may cause the
value of underlying investments to go up or down. A CIS portfolio may borrow up to 10% of the market
value of the portfolio to bridge insufficient liquidity. Participatory interests in CIS portfolios are
calculated on a net asset value (NAV) basis, which is the total market value of all assets in the portfolio
including any income accruals and less any permissible deductions from the CIS portfolio divided by
the number of participatory interests in issue. All fees quoted exclude VAT except where stated
differently. The Total Expense Ratio (TER) is expressed as an annualised percentage of the charges,
levies and fees incurred by the portfolio related to its management, for the period under review
against the average NAV of the portfolio over this period. A higher TER does not necessarily imply a
poor return, nor does a lower TER imply a good return. The current TER cannot be regarded as an
indication of future TERs. A full detailed schedule of fees, charges and commissions is available from
the FNB CIS Manco on request and incentives may be paid and if so, would be included in the overall
costs. The manager does not provide any guarantee either with respect to the capital or the return of
a portfolio. The manager has a right to close the portfolio to new investors in order to manage the
portfolio more efficiently in accordance with its mandate. A Fund of Funds is a portfolio that invests
in portfolios of collective investment schemes, which levy their own charges, which could result in a
higher fee structure. Additional information about this product, including brochures, application
forms and annual or quarterly reports, can be obtained from the Manager, free of charge, and from
the website: www.fnb.co.za. Ashburton Fund Managers (Pty) Ltd is an authorised Financial Services
Provider (FSP number 40169). FNB Investor Services (Pty) Ltd is an authorised Financial Services
Provider (FSP number 44341).