1. Introduction to Harmony funds
James Klempster, CFA
October 2012

2. 1. Introduction to Harmony funds 2
1. Introduction to Harmony funds 2. Momentum Global Investment Management 3. Fund focus 4. Market update

3. 1. Introduction to Harmony funds

4. Introduction Risk profiled core solutions: Balanced and Growth
Multi-asset, multi-manager, multi-currency
Diversified between local and global investments, asset class, currency, manager and style
Dynamic tactical asset allocation
Available in five currency / regional bases: USD, GBP, EUR, AUD and Asian
The Harmony range does not invest in derivatives, structured products or CDOs
Managed by Momentum Global Investment Management in London

5. The Harmony fund range Harmony Asian Balanced Harmony Asian Growth
Harmony US Dollar Balanced
Harmony US Dollar Growth
Harmony Euro Balanced
Harmony AUD Growth
Harmony Sterling Balanced
Harmony Sterling Growth

6. Harmony funds structure
Momentum Global Funds SICAV (Luxembourg)
Harmony fund range
Asian Balanced Fund
Asian Growth Fund
Euro Balanced Fund
GBP Balanced Fund
GBP Growth Fund
USD Balanced Fund
USD Growth Fund
AUD Growth Fund
Promoter
Momentum Global Investment Management
Investment manager & global distributor
Momentum Global Investment Management
Management company
RBS Luxembourg
Depositary & administrator
JP Morgan Luxembourg
Auditors
PricewaterhouseCoopers
Sub-distributor
Armytage Asset Management
Regulator
CSSF Luxembourg

7. Investment manager feedback
House view
Weekly review
Monthly factsheets
Monthly viewpoint
Detailed quarterly reports
Harmony AUD Growth
Website:

8. 2. Momentum Global Investment Management

9. Who we are and why we are different
Business & heritage
Boutique focus and mindset
Strong corporate backing: top 40 JSE listed company Group AuM: USD41 billion, London AuM: USD4.3 billion*
Investment process Highly experienced and stable team Disciplined valuation driven investment process Capital preservation mindset
Investment manager partnerships Genuinely bespoke solutions – highly attuned to client needs
True dynamic asset allocation Use of external specialists Diversification across a wide range of asset classes
Deal exclusively with institutions and intermediaries
January * Includes post consolidation assets.

10. Investment philosophy – core beliefs
Markets are inefficient
Inefficiencies create valuation extremes and offer opportunities
Dynamic asset allocation will add value over time
Increasing the investable universe will increase the opportunity set
Effective use of broad range of asset classes generates better risk:return profile
Blending uncorrelated assets enables true diversification
Valuation is paramount
Reversion to the mean works in the long run
Wait for the ‘fat pitch’
No single manager / investment house is good at everything
Dynamic manager selection is essential
Focus on employing specialists to maximise opportunities

11. Risk management
Asset class selection True risk is the possibility of permanent loss of capital Best defence is buying a diverse portfolio of undervalued a sets
Valuation is key: Scenario testing used to stress test our valuations
Manager selection Extensive operational due diligence process
Onsite visits by our DD team as necessary
Transparency required to guard against style drift
Position sizing Target benchmark volatility
Risk analysed at individual contribution and total portfolio level
Position sizes adjusted to keep within target and ensure a prudent level of diversification
Liquidity stress testing

12. Investment process

13. Investment process: roles and responsibilities
Asset Allocation Glyn Owen, Investment Director
James Klempster, Multi-Asset PM
Peter van der Ross, Head of Strategy
Lynn van Coller, Head of Core Strategies
Mike Allen, Chief Investment Officer
Alex Harvey, Head of Fixed Income
Andries Kotzee, Multi-Asset PM
Global asset allocation committee
Capital markets
forecast group
Multi-asset committee
Portfolio implementation
Harmony fund range
Manager Research Mike Allen, Chief Investment Officer
John Caulfield, Head of Alternative Strategies
Andrew Smith, Head of Equities
Andries Kotzee, Multi-Asset PM
Andrew Hardy, Senior Analyst
Jernej Bukovec, Senior Analyst
Alex Harvey, Head of Fixed Income
Operations Robert Rhodes, Chief Operating Officer
Risk Management
Rishi Patel, Head of Risk and Due Diligence 13 13

14. Asset class research Where active management works
Percentage of fund managers who underperform various performance hurdles
Index
+1%
+2%
+4% 84
Efficient
Domestic Bonds* 66 77
Global Bonds 67 77
UK Equities 65 71 75
US Equities
Semi-efficient 69 75 81
Global Equities
European Equities 53 66 75 59 67 73
EM Equity 48 57 65
Japanese Equity 75
Inefficient 49 54 59
Small Cap* 67
January (Illustrative purposes only)

15. Manager research process
Buy discipline
Sell discipline
Appoint Manager
Sell
Manager
What we’re looking for:
Sound philosophy
Disciplined process
Proven team/implementation
Robust capacity management
Alignment of interests
Business stability
Sell indicators
Upgrade decision
Key individual/ team leaves
Poor capacity management
Inconsistent behaviour
Negative corporate change
Operational issues
Manager
Re-evaluation
Manager
Evaluation
Continuous monitoring
Idea
Generation
Re-evaluate
Universe

16. Using the best talent from around the world
Polar
Morgan Stanley
iShares
Old Mutual
Henderson
M&G
RWC
Schroders
Threadneedle
Jupiter
London
Chicago:
Driehaus
Timpani
Paris:
Comgest
Tokyo: Tiburon
Connecticut:
Lapides AXA IM
BlackRock
San Francisco:
Artisan
Wilmington:
Marvin &
Palmer
New York:
American Century
Pzena Muzinich
Cohen & Steers
Arizona:
ING
Austin
Yacktman
Singapore: Firth
Pictet
Sydney: Aberdeen
UBS

17. 3. Fund focus

18. Harmony Balanced fund strategic allocation
October 2012

19. Harmony Growth fund strategic allocation
October 2012

20. Harmony US Dollar Balanced asset allocation
October 2012.

21. Harmony US Dollar Balanced currency allocation
October 2012.

22. Harmony US Dollar Balanced performance
Source: Lipper Hindsight, Momentum Global Investment Management, October Past performance is not indicative of future returns. *30/06/2005 to 30/12/ †Harmony fund average percentage rank over discrete years shown.

23. Harmony US Dollar Balanced manager performance
Source: Returns to 28/09/2012, Bloomberg October 2012

24. Harmony US Dollar Growth asset allocation
October 2012.

25. Harmony US Dollar Growth currency allocation
October 2012.

26. Harmony US Dollar Growth performance
Source: Lipper Hindsight, Momentum Global Investment Management, October Past performance is not indicative of future returns. *30/06/2005 to 30/12/ †Harmony fund average percentage rank over discrete years shown.

27. Harmony US Dollar Growth manager performance
Source: Returns to 28/09/2012, Bloomberg October 2012

28. Harmony Asian Growth asset allocation
October 2012.

29. Harmony Asian Growth currency allocation
October 2012.

30. Harmony Asian Growth performance
Source: Lipper Hindsight, Momentum Global Investment Management, October Past performance is not indicative of future returns. *30/11/2006 to 29/12/ †Harmony fund average percentage rank over discrete years shown.

31. Harmony Asian Growth manager performance
Source: Returns to 28/09/2012, Bloomberg October 2012

32. Harmony three year performance vs. peers
Source: Lipper Hindsight, October Past performance is not indicative of future returns

33. 4. Market update

34. This century has been bad for equity investing……
+18.5%
Source: Returns to 05/10/2012. Bloomberg, October 2012

35. ……but not for government bonds
Source: Bloomberg, October 2012

36. Asset class returns YTD 2012, Local currency terms
Source: Bloomberg, Returns to 28/09/2012, October 2012

37. MSCI World since January 2008
Source: Bloomberg, October 2012

38. 10 year government bond yield since January 2008
Source: Bloomberg, October 2012

39. Map of the markets YTD
Source: Bloomberg, Returns from 30/12/ /10/2012, October 2012

40. Asset class returns 2012 YTD
Source: Lipper, Returns to 05/10/2012, October 2012

41. Asset class returns 2012 YTD
Source: Lipper, Returns to 05/10/2012, October 2012

42. Asset class returns 2012 YTD
Source: Lipper, Returns to 05/10/2012, October 2012

43. 10 year government bond spreads vs. Germany
Source: Bloomberg, October 2012

44. German vs. Spanish 10 yr government bond yields
January 2000 to date
Source: Bloomberg, October 2012

45. Performance of Chinese stock market vs. S&P500
Source: Bloomberg, October 2012

46. Performance of Gold, Copper and Oil
Source: Bloomberg, October 2012

47. Currencies vs. USD
Source: Bloomberg, October 2012

48. Performance of currencies vs. USD YTD 2012
Source: Bloomberg, Returns to 05/10/2012, October 2012

49. 2. Market outlook

50. Critical issues Sustainability of growth in the US
Structural slowdown in China – or hard landing?
European imbalances
Central bank pump pricing vs. global deleveraging

51. Clear slowdown in global growth
Source: JPMorgan, October 2012

52. Economy has slowed: US leading economic indicators
Source: Bloomberg, October 2012

53. US consumer confidence
Source: Bloomberg, October 2012

54. US economic momentum is reasonable – but unemployment remains high
US labour market
Source: Figures to 28/09/2012, Bloomberg, October 2012

55. US construction: the only way is up?
Source: Bloomberg, October 2012

56. US housing starts over the last 12 months
Source: Bloomberg, October 2012

57. Fiscal cliff: will need to be tackled after November
US budget deficits
Source: Bloomberg, October 2012

58. US fiscal deficit as % of GDP 1791 -2011
Source : Deutsche bank, GFD. October 2012.

59. Budget deficits larger in the US than in peripheral Europe
Budget deficit as a % of GDP %
Greece, Ireland, Italy, Portugal and Spain: GDP- weighted fiscal balance US
Source: Deutsche bank. October 2012.

60. China is landing GDP and industrial production
Source: Bloomberg, October 2012

61. Major macro indicators continue to disappoint
Chinese PMI: new orders
Chinese money supply (% yoy)
Level
Source: Bloomberg, October 2012.

62. Export sector flatlining
Chinese global exports (Real $)
Source: Bloomberg, October 2012

63. Imports slowing Chinese global imports (Real $) Imports % YOY
Source: SocGen October 2012

64. China’s slowing growth: structural or cyclical?
China Real GDP y/y % change %
Source: Factset. October 2012.

65. The European crisis is not simply debt
1.0%
-8.5%
-1.7%
-8.0%
Current account balance
5.2%
-0.8%
Budget deficit to GDP
-1.9%
-4.6%
-7.4%
-7.2%
-4.2%
-4.5%
-2.1%
-6.0%
-2.2%
-2.4%
Source: IMF, 2012 estimates.

66. Unit labour costs since the launch of the euro
Source: Bloomberg, October 2012

67. Currencies vs. the Deutschemark
Source: Bloomberg, October 2012

68. German Labour reform accelerated growth- can Italy?
Source: Bloomberg, October 2012

69. The European stress / intervention cycle
Don’t underestimate the political will to preserve the Eurozone
Inflate, stagnate or default
Austerity / growth
European bail out of banks
Issue of Eurobonds
ECB – LTRO / OMT / rate cut
Fiscal union

70. Central government debt burden 1900 to 2011 - advanced and emerging economies%
Source: Reinhart (2010), Reinhart and Rogoff (2009 and 2011), sources cited therein and the authors

71. Total debt to GDP for developed economies 1990 - 2012
Source: Deutsche Bank, Haver. October 2012.

72. Debt composition varies widely
Source: Bloomberg, October 2012.

73. Short term interest rates over past 10 years
US, UK, Japan and Europe %
Source: MGIM, Bloomberg. October 2012

74. The world is not normal: UK base rate 1694 to today
Source: Deutsche Bank, GFD. October 2012.

75. The world is not normal: Swiss government bond yields
Source: Bloomberg, MGIM. October 2012.

76. The world is not normal: 10 year government bond yields
Source: Bloomberg, MGIM. October2012.

77. The world is not normal: US 10 year yield since 1790
Source: Deutsche Bank, GFD, Bloomberg Finance LLp. October 2012.

78. Quantitative easing: Bank of England balance sheet as a % of GDP
Source: Deutsche bank. October 2012.,

79. The UK recovery is weaker than in the great depression%
Source: Deutsche Bank. September 2012.

80. Tail risk of extreme events are not insignificant
US fiscal cliff
Chinese ‘recession’
Eurozone disintegration
Journey into the unknown – monetary easing

81. Equity market valuations
*current year estimate
Source: Bloomberg, Statistics to 05/010/2012. October 2012

82. MSCI World P/E ratio since 1995
Source: Bloomberg, October 2012

83. MSCI World price to book since 1995
Source: Bloomberg, October 2012

84. Tail wind of EM re-valuation now behind us
MSCI World PB vs. MSCI GEM PB
Source: Bloomberg, October 2012

85. Investment conclusion
‘New normal’ is now the consensus
Deleveraging and rebalancing set to continue for years
US – growth risk in China – structural slowdown underway Europe – stress / intervention cycle to continue
Policy risks are high
Further monetary loosening is certain
Crisis presents an extraordinary valuation opportunity

86. Implications for portfolio construction
Subdued growth low return expectations
Continued deleveraging and tight credit financial strength is critical
High tail risks high volatility
Cyclical move down in commodities has further to run
Deflation protection in safe haven bonds
Income generating assets important
safe dividend equities
corporate bonds
emerging market bonds
Focus on:
Diversification by asset class
Quality defensive equities
Inflation not today’s problem – but might be the end game
Exploit tactical opportunities

87. Disclaimer
Momentum Global Investment Management is the trading name for Momentum Global Investment Management Limited. This document does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorised or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients and addressees. The original recipient is solely responsible for any actions in further distributing this document, and should be satisfied in doing so that there is no breach of local legislation or regulation. The information is intended solely for use by our clients or prospective clients, and should not be reproduced or distributed except via original recipients acting as professional intermediaries. This document is not for distribution in the United States. Prospective investors should inform themselves and if need be take appropriate advice regarding applicable legal, taxation and exchange control regulations in countries of their citizenship, residence or domicile which may be relevant to the acquisition, holding, transfer, redemption or disposal of any investments herein solicited. Any opinions expressed herein are those at the date this material is issued. Data, models and other statistics are sourced from our own records, unless otherwise stated herein. We believe that the information contained is from reliable sources, but we do not guarantee the relevance, accuracy or completeness thereof. Unless otherwise provided under UK law, Momentum Global Investment Management does not accept liability for irrelevant, inaccurate or incomplete information contained, or for the correctness of opinions expressed. We caution that the value of investments in discretionary accounts, and the income derived, may fluctuate and it is possible that an investor may incur losses, including a loss of the principal invested. Past performance is not generally indicative of future performance. Investors whose reference currency differs from that in which the underlying assets are invested may be subject to exchange rate movements that alter the value of their investments. Our investment mandates in alternative strategies and hedge funds permit us to invest in unregulated funds that may be highly volatile. Although alternative strategies funds will seek to follow a wide diversification policy, these funds may be subject to sudden and/or large falls in value. The illiquid nature of the underlying funds is such that alternative strategies funds deal infrequently and require longer notice periods for redemptions. These Investments are therefore not readily realisable. If an alternative strategies fund fails to perform, it may not be possible to realise the investment without further loss in value. These unregulated funds may engage in the short selling of securities or may use a greater degree of gearing than is permitted for regulated funds (including the ability to borrow for a leverage strategy). A relatively small price movement may result in a disproportionately large movement in the investment value. The purpose of gearing is to achieve higher returns associated with larger investment exposures, but has concomitant exposure to loss if positive performance is not achieved. Reliable information about the value of an investment in an alternative strategies fund may not be available (other than at the fund’s infrequent valuation points). Under our multi-management arrangements, we selectively appoint underlying sub-investment managers and funds to actively manage underlying asset holdings in the pursuit of achieving mandated performance objectives. Annual investment management fees are payable both to the multimanager and the manager of the underlying assets at rates contained in the offering documents of the relevant portfolios (and may involve performance fees where expressly indicated therein). Momentum Global Investment Management Limited (Company Registration No ) registered office at 20 Gracechurch Street, London EC3V 0BG. Momentum Global Investment Management Limited is authorised and regulated by the Financial Services Authority in the United Kingdom, and is an authorised Financial Services Provider pursuant to the Financial Advisory and Intermediary Services Act 37 of 2002 in South Africa. © Momentum Global Investment Management Limited 2012

88. Contact: Lucy Richardson Marketing Manager Momentum Global Investment Management T: