AFRICAN BANK UPDATE
4 April 2017

Dear investor,

Since the creation of the ABIL Retention Funds, STANLIB has returned R1.84bn held in African Bank (ABIL) Retention Funds. We are pleased to announce that we will return a further R660m which will be transferred to investors' original accounts in April 2017. This makes a total of R2.5bn returned to investors since the ABIL instruments became tradable on 4 April 2016.

The income declared in March 2017 will be switched from your Retention Fund into your original STANLIB Fund, from which you will be able to access these funds. Assets remaining in the ABIL Retention Funds will continue to earn and accrue interest on the underlying instruments.

We have now returned the full amount for three ABIL Retention funds and closed them. They are the STANLIB Institutional Money Market ABIL Retention Fund, STANLIB Money Market ABIL Retention Fund and STANLIB Inflation Plus 5 ABIL Retention Fund.

The table below illustrates the distributions declared for each fund on 21 April 2017:

   Fund Name Ratio per fund returned to
investors on 21 April 2017
   
STANLIB Income ABIL
Retention Fund
39%
STANLIB Extra Income ABIL
Retention Fund
7%
STANLIB Aggressive Income ABIL
Retention Fund
35%
STANLIB Enhanced Yield ABIL
Retention Fund
5%
STANLIB Multi-Manager
Flexible Property ABIL
Retention Fund
32%
STANLIB Multi-Manager
Balanced ABIL Retention Fund
5%
STANLIB Bond ABIL Retention Fund 3%
STANLIB Prudential Bond ABIL Retention Fund 2%
STANLIB Multi-Manager
Absolute Income ABIL
Retention Fund
45%
STANLIB Flexible Income ABIL Retention Fund 27%


The remaining assets will be kept in the above-listed Retention funds until our fund managers can dispose of them in the best interests of our investors. All instruments are valued at market value.

Looking ahead

African Bank released its first set of results since emerging from Curatorship for the period 4 April to 30 September 2016. Although only for a six-month period we are encouraged that the results are in line with management's initial guidance. Importantly the bank posted an operating profit of R335m before goodwill impairments of R1.9bn. The very strong capital adequacy ratio of 38.3% provides the new board and management team some flexibility to implement its strategy.

We shall monitor the bank's progress and are actively engaging with the management team to assess its strategic initiatives under its new shareholder base (the Government Employees Pension Fund, the South African Reserve Bank and the banking consortium).

We assure you that we remain committed to your investment with STANLIB. Should you have any further questions or require additional information, please contact your dedicated client fund manager or refer to the STANLIB website.

Regards,
Henk Viljoen
Co-Head: Fixed Interest
Victor Mphaphuli
Co-Head: Fixed Interest
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