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True North IP Enhanced Property Fund

True North IP Enhanced Property Fund Introduction, October 2019

Contents

Authorised Category II Financial Services Provider (FSP no: 42439)

• 1. General overview
• 3. Fund performance
• 4. Portfolio overview
• 5. Conclusion

1

General overview

Cape Town Central Business District, South Africa 2

Warsaw Central Business District, Poland

Fund details

Authorised Category II Financial Services Provider (FSP no: 42439)

ASISA classification: South Africa – Real Estate General Inception date: 3 November 2014 Benchmark: 75% SA Listed Property; 25% Global Property Size: R98,3 million* Risk rating: Moderate to high Management co. IP Management Company Portfolio manager Wim Prinsloo, CFA

*As at 30 September 2019 3

Investment approach

Fundamental investors:

We believe that the long-term appreciation of a business’ share price is a direct result of the underlying performance of the business.

Property is a pro-cyclical asset class:

We target businesses that benefit from strong secular or cyclical growth trends. As such, we value future growth more highly than immediate yield.

Authorised Category II Financial Services Provider (FSP no: 42439)

“Investment is most intelligent when it is most business-like“

• Warren Buffet

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Investment approach (cont.)

Stock selection:

• Growth potential.
• Proven management & sector specialists.
• Best-in-class properties.
• Sound balance sheets.
• Attractive valuations.

Authorised Category II Financial Services Provider (FSP no: 42439)

5

Investment approach (cont.)

Portfolio construction:

• Approximately 20 high-conviction holdings.
• Invest long-term, but remain pragmatic.
• Low turnover.
• Diversify through different sectors and geographies

(not by adding more holdings).

Authorised Category II Financial Services Provider (FSP no: 42439)

6

Investment team

Authorised Category II Financial Services Provider (FSP no: 42439)

Wim Prinsloo

`

Portfolio Manager B Com (Hons), CFA

John Swart

Founder & Chief Investment Officer B Compt, MBL, D Com 10 yrs. overall investment experience. 6 yrs. in local and global listed property investments 30 yrs. experience in property investment and development. CEO of Landmark Property Investments

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Key differentiators

Cape Town Central Business District, South Africa 8

Key differentiators

Authorised Category II Financial Services Provider (FSP no: 42439)

✓ “Enhanced” mandate allows us the flexibility to allocate capital away from South Africa, when deemed appropriate. ✓ Targets exposure to alternative sectors of the property market such as self-storage, logistics and data centres. ✓ Exhibits substantially lower volatility than the SA Listed Property Index. ✓ Not aligned to any index.

9

Fund performance

As at 30 September 2019

Cape Town CBD, South Africa 10

Performance as at 30 September 2019

Annualised returns YTD 1 Year 2 Years 3 Years Inception date**

TNEP Fund 10.1% 5.6% 3.0% 4.3% 2.6% Benchmark* 5.4%

• 0.6%
• 7.4%
• 2.1%
• 1.3%

Outperformance +4.7% +6.2% +10.4% +6.4% +3.9%

Substantial outperformance in a negative market

*Benchmark: 75% FTSE/JSE All Property Index, 25% FTSEE NAREIT Developed REIT Index. **Inception date: 3 November 2014. Annualised returns are period returns re-scaled to a period of 1 year. Source: Refinitiv Datastream.

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Authorised Category II Financial Services Provider (FSP no: 42439)

Performance under current portfolio manager

Timeframe: 3 Years to 30 September 2019

Source: Refinitiv Datastream.

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Authorised Category II Financial Services Provider (FSP no: 42439)

• 10.2%

+13.5%

85 90 95 100 105 110 115 120 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19

SA Listed Property Index True North IP Enhanced Property Fund

Performance relative to peer group

Timeframe** Rank Year to Date 1st of 47 1 Year 1st of 47 2 Years 1st of 46 3 Years 1st of 41 4 Years 3rd of 38

Top performer in its category* over 1,2 and 3 years

*ASISA Category: South Africa – Real Estate – General. **Date: As at 24 September 2019. Source: Glacier Funds on Friday, Morningstar

13

Authorised Category II Financial Services Provider (FSP no: 42439)

Volatility* as at 30 September 2019

*Volatility calculated as the annualised standard deviation

• ver the 36 months to 30 September 2019.

Timeframe: 36 months to 30 September 2019

7.7% 13.4% 11.7%

TNEP Fund SA Listed Property Index JSE All Share Index 14

Authorised Category II Financial Services Provider (FSP no: 42439)

Portfolio overview

Warsaw Central Business District, Poland 15

Asset allocation

Date: 30 September 2019.

37.4% 28.1% 13.4% 21.1%

0% 10% 20% 30% 40% 50% 60%

SA Listed Property Offshore Property Fixed Income

Offshore Property listed on JSE

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Authorised Category II Financial Services Provider (FSP no: 42439)

Geographic allocation (see-through basis)

Other; 4.1% Canada; 3.0% USA; 6,8% UK; 10,1% South Africa; 28,0% Europe; 35,2%

Underweight exposure to SA Property market

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Excludes % allocated to fixed income assets. Date: As at 30 June 2019. Authorised Category II Financial Services Provider (FSP no: 42439)

Sector allocation (see-through basis)

Excludes % allocated to fixed income assets. Date: As at 30 June 2019.

13% 4% 5% 5% 16% 8% 9% 11% 7% 7% 2% 0% 5% 10% 15% 20% 25% 30% 35% Retail Office Industrial Self Storage Data Centres Residential Other Local Offshore

Healthy exposure to alternative sectors

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Authorised Category II Financial Services Provider (FSP no: 42439)

Top 10 property holdings

Date: As at 30 September 2019

Name Country Sector % of Fund Market Cap 1 Sirius Real Estate Germany Diversified 7.6% £ 782m 2 Stor-age Property REIT SA/UK Self storage 6.9% R 5.5bn 3 Clearance Camino Fund Europe Diversified 6.5% $ 390.7m 4 Fairvest Property Holdings SA Retail 5.9% R 2.0bn 5 Vukile Property Fund SA/Spain Retail 6.1% R 18.2bn

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Authorised Category II Financial Services Provider (FSP no: 42439)

Top 10 property holdings (continued)

Name Country Sector % of Fund Market cap 6 Equities Property Fund SA/UK Logistics 5.7% R 11.2bn 7 Resolution Capital Global Property Fund* Global Diversified 5.6% R 795m 8 Interxion Holdings N.V. Europe Data Centres 4.6% $ 6.2bn 9 Growthpoint Properties SA/AUS/CEE Diversified 4.4% R 68.6bn 10 Irish Residential Properties Ireland Residential 4.3% € 898m

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Authorised Category II Financial Services Provider (FSP no: 42439) *Via Nedgroup Investments Global Property Feeder Fund Date: As at 30 September 2019

We have compiled an attractive listed property portfolio

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Authorised Category II Financial Services Provider (FSP no: 42439)

Company/REIT Summary investment thesis Total return past 3 years

Earning high returns on investment by redeveloping office and industrial properties across Germany. Trades below NAV. 98.9% Self-storage sector is proving defensive in SA and UK. Able to grow dividends by 6% to 8% p.a. 75.7% Owns retail properties in lower LSM nodes not impacted by e-commerce. Trading 20% below NAV. 19.8% Provides exposure to cyclical upturn in Spanish real estate market. 31.9% Logistic properties facilitate distribution of online purchases. 71.3% Fast-growing Data Centre operator across Europe. 31.2% REIT with highest quality local portfolio on the JSE.

• 7.3%

Investor and developer of apartments in supply-constrained Dublin. 37.3%

Top 8 direct holdings as at 30 Sept. 2019. Excludes sub-fund investments. All returns in rand terms.

Conclusion

Warsaw Central Business District, Poland 22

Summary

19

Authorised Category II Financial Services Provider (FSP no: 42439)

✓ Fundamental, pro-cyclical property investing. ✓ Top performance and low volatility. ✓ Differentiating features. ✓ Upside potential.

Next steps?

23

Contact details

Authorised Category II FSP no: 42439 Date: As at 31 July 2019 Source: True North Capital Management

Portfolio Manager: Wim Prinsloo, CFA Email: wim@tncm.co.za Phone: 012 460 5007 / 082 414 1999 Website www.tncm.co.za

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Disclaimer

Authorised Category II FSP no: 42439 Collective Investment Schemes are generally medium to long term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. The performance is calculated for the portfolio. The individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. The fund is invested in a portfolio of collective investment schemes that levy their own charges, which could result in a higher fee structure for the fund of funds. A schedule of fees and charges and maximum commissions is available on request from the manager. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The Manager retains full legal responsibility for the Fund, regardless of Co-Naming arrangements. Transaction cut off time is 14:30 daily. Valuation time is 15:00 (17h00 at quarter end). Prices are published daily and available newspapers countrywide, as well as on request from the Manager. IP Management Company (RF) Pty Ltd is the authorised Manager of the Scheme – contact 021 673 1340 or clientservices@ipmc.co.za. Standard Bank is the trustee / custodian – contact compliance-IP@standardbank.co.za. Additional information including application forms, the annual report of the Manager and detailed holdings of the portfolio as at the last quarter end are available, free of charge, from clientservices@ipmc.co.za. IP Management Company is a member of ASISA. Financial Advisor fees as agreed between the Investor and the Advisor may apply and payment to the Advisor will be facilitated on behalf of the Investor. A statement of changes in the composition of the portfolio during the reporting period is available on request. The portfolio may include foreign investments and the following additional risks may apply: liquidity constraints when selling foreign investments and risk of non-settlement of trades; macroeconomic and political risks associated with the country in which the investment is made; risk of loss on foreign exchange transactions and investment valuation due to fluctuating exchange rates; risk of foreign tax being applicable; potential limitations on availability of market information which could affect the valuation and liquidity of an investment. All these risks could affect the valuation of an investment in the fund. The EAC is a standard industry measure which has been introduced to allow you to compare the charges you incur and their impact on the investment returns over specific periods. Please visit http:/www.ipmc.co.za/effectiveannual-cost to address the EAC illustrator. You can request an EAC calculation from clientservices@ipmc.co.za or call us on 021 673-1340. CONTACT DETAILS FOR IP MANAGEMENT COMPANY CONTACT DETAILS OF THE TRUSTEE Tel 021 673 1340 Compliance-IP@standardbank.co.za