Brait Multi Strategy Fund

Fund Overview
Investment Proposition
The Brait Multi Strategy Fund aims to deliver annualised net returns that exceed ZAR cash returns by 10-15% over rolling 3-year cycles. Emphasis is placed on achieving the return objective independent of the performance of the markets or any particular asset class. The Fund Manager pursues alpha across multiple diverse investment strategies. Each discipline is managed by a focused investment professional. As a result the Fund benefits from an expanded opportunity set whilst maintaining the benefits associated with specialisation. A dynamic risk allocation process drives efficient capital utilisation, while the resulting exposure to multiple strategies with varying time frames ensures diversification of alpha streams. The Fund invests in South African opportunities and utilises a range of instruments across the equity, fixed income and currency asset classes, including derivatives.

31 July 2011

Fund Manager
Brait Capital Management, a division of Brait South Africa Ltd, manages ZAR2.4 billion in hedge fund portfolios. Brait South Africa Ltd, is a subsidiary of the Brait group, a listed investment company established in 1991, which holds investments in various portfolio companies primarily in the retail and financial services sectors.

Commentary
The Fund delivered positive performance of 1.9% for the month of July. Performance was largely driven by the contraction in implied cumulative tightening of policy amidst soft local and global economic data. The SA rates market implied cumulative tightening of 200 bps over two years at the start of the month which contracted to 150 bps at month end. Whilst we are comfortable with the steepness of the curve between 1y and 2y (having significantly contracted from the excessively steep levels of Q1), the imminent tightening implied by the curve is questionable. If economic data keep surprising to the downside we believe growth concerns will dominate inflation concerns in policy outlook and the implied imminent tightening may be reversed to a more symmetrical risk of possible policy accommodation amidst global and local economic uncertainty and its effect on consumer sentiment. On the equity front we have been positioned net short and defensive for most of the month. The Top40 index had a volatile July falling 3.5% in 3 days, then retracing this in 2 days. By the end of the month it had declined 2.7%. With the benefit of hindsight, we know this was in fact the calm before the storm. While much was made of the inability of Congress to extend the debt ceiling, the really dangerous development for risk assets was the rapid rise in Spanish and Italian bond yields. While the resumption of bond purchases by the ECB has alleviated the immediate market pressure, the fundamental EMU dilemma remains without fiscal union the Euro cannot survive, but it appears very unlikely that German voters will back this. Can the German and Brussels politicians force the issue without reference to the German electorate? When will a party emerge with anti-Euro credentials to take advantage of the obvious ground swell in German public opinion? At this point we can only quote J A Schumpeter: What is the essence of economics? Politics, politics, politics. We have effected some changes in our strategic risk allocations whereby the Equity Fundamental strategy have been promoted to a senior strategy (up from 15% to 23%), the Equity Macro strategy have been demoted to a medium risk strategy (down from 22% to 11%), the Statistical Arbitrage strategy have been demoted to a sub junior strategy at 4% (down from 7%) and FI strategies remain unchanged at 23%, 23% and 16% for FI Derivative, FI Volatility and FI Tactical respectively.

Cumulative Performance Key Information

Brait Multi Strategy Cash

Fund Inception Date Net Asset Value Status Fund Currency Domicile Liquidity Notice Manager Auditor Administrator Prime Broker

01 October 2006 1,272,519,560 (ZAR) Open ZAR South Africa Monthly 1 Calendar Month Brait SA Ltd Deloitte & Touche Maitland Rand Merchant Bank

Performance Track Record (Lead Series)

YEAR 2006 2007 2008 2009 2010 2011 JAN 1.78% 1.81% 2.10% 2.96% -2.79% FEB 2.66% 3.86% -1.95% -0.41% 2.54% MAR 2.69% 2.21% 5.45% 2.04% 0.30% APR -2.08% 2.02% 3.19% 3.26% 1.49% MAY 4.31% 4.87% -0.65% 1.34% 1.47% JUN 8.69% 2.32% 1.14% 1.23% 1.34% JUL 3.21% -1.54% 2.72% 0.83% 1.86% AUG -3.49% -0.19% 2.83% 4.05% SEP -1.44% 1.95% 0.66% -0.20% OCT -3.84% -7.40% 2.50% 0.90% 4.83% NOV 0.95% 1.95% 6.16% 6.11% -1.63% DEC -2.26% 0.50% 0.12% 0.95% -0.11% YEAR -5.12% 10.95% 29.15% 25.80% 19.55% 6.28%

All fund returns / statistics are shown net of fees and all other costs

Contact Information
Lourens Pretorius - CEO: Brait Capital Management Tel: +2721 673 7830 Email: lwpretorius@brait.com Rob Coombe - COO: Brait Capital Management Tel: +2721 673 7818 Email: rcoombe@brait.com Client Administration Tel: +2721 673 7821

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Email: BraitCMEnquiries@brait.com

Brait Multi Strategy Fund

Fund Overview
Monthly Performance Attribution per Discipline

31 July 2011
Comparative Performance

Risk Budget Utilisation

Total VaR and VaR Offset

Return Distribution Since Inception

Since Inception

Risk Analysis Table

Brait Multi All Bond Strategy Index
9.34 % 4.47 % 0.978 2.04 1.00 74.14 % -11.92 % 4.94 % 7.15 % 2.63 % 0.110 0.30 -0.18 67.24 % -7.34 % 4.04 %

All Share Index

18.54 % 10.47 % 0.092 0.16 0.02 62.07 % -40.44 % 10.49 %

Standard Deviation p.a. Downside Deviation p.a. Sharpe Ratio Sortino Ratio Correlation Gain Periods Largest Draw Down 95% Value at Risk (VaR)

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This Fund Overview is for information purposes only and does not constitute either an offer or a recommendation to buy or sell any of the stocks mentioned or the fund itself. It is a private publication intended for private circulation and outlines the fund structure and past performance. The value of all investments can go down as well as up, and the past is not necessarily a guide to future performance. Brait South Africa Limited is regulated by the Financial Services Board as an approved Discretionary Financial Service Provider (Category IIA) under the Financial Advisory and Intermediary Services Act (FSP Reg. No. 820). However, the Brait Multi Strategy Fund along with all other hedge funds in South Africa, is unregulated by the Financial Services Board.