ORBIS GLOBAL EQUITY FUND
ORBIS GLOBAL EQUITY FUND
Independent Ratings
OBSR AA
Portfolio
Track Record
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund’s recent performance has been poor at a time when global markets have seen sharp declines across most sectors. Participating in rapid market declines is not unusual in the history of the Fund. While these periods are painful, they often give us the opportunity to buy excellent companies cheaply, as short-term volatility rarely mirrors true changes in intrinsic value. Such purchases, based on our fundamental company research, have often contributed strongly to the Fund’s subsequent recovery and outperformance. In this recent decline, we have added to several existing positions and re-established one in Google, which the Fund held previously from December 2008 to March 2010. While we have no view on the direction the stockmarket might take in the short term, we remain hopeful that the intrinsic value of Google and the Fund’s other holdings will shine through with the clear light of time. Geographical Deployment
140 120 100 80
Orbis Global
World Index
Avg Global Equity Fund*
$115.76
60 40
$35.87 $28.59
30 20 15 10 7
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
Fund’s % exposure to Equities Currencies 42 48 3 3 45 51 19 3 9 13 8 13 17 26 10 12 6 6 0 0 16 18 3 2 100 100
% of World Index 45 4 49 8 9 18 27 4 2 1 7 9 100
Orbis Global
Since Inception (1 Jan 1990) 12.0 Latest 20 years 12.4 Latest 10 years 8.4 Latest 5 years 2.6 Latest 3 years 3.7 Latest year 12.4 Calendar year 2010 6.0 Not annualised Year to date (4.7) Latest month (7.7) Risk Measures (Since inception, month end prices) Maximum drawdown 50% Annualised monthly volatility 16.7% Beta vs World Index 0.9 Annualised monthly tracking error 9.8%
World Index
Avg Global Equity Fund*
Quartile Ranking
6.1 7.0 5.0 1.1 (0.1) 14.7 12.7
5.0 5.4 3.2 (0.7) (2.2) 12.2 8.9
1 1 1 1 1 3
(4.1) (7.2)
(4.2)
54% 15.8% 1.0 0.0%
55% 16.1% 0.9 7.3%
Ranking within global equity fund peer group NRG Energy QUALCOMM Sohu.com Safeway CVS Caremark Total
% 2.9 2.8 2.4 2.3 2.2 31.8
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Ratings descriptions are available from www.fundsinsights.com and www.obsrglobalfundratings.com. FTSE World Index data source is FTSE International Limited. “FTSE” is a trademark of the London Stock Exchange Limited and is used by FTSE International Limited under licence. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Key
1,200
Orbis OrbisGlobal Global
World WorldIndex Index
1,000
Top Half
% 4.6 4.0 3.8 3.7 3.1
800
5%
25%
600 50% 400 Bottom Half
Top 10 Holdings
% Returns Annualised
% Cumulative return
Region United States Canada North America Japan United Kingdom Continental Europe Europe Greater China Korea Other Asia ex-Japan Other Total
$115.69 $11.2 billion $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Standard & Poor’s AAA
Value (US$)
Cisco Systems NetEase.com WellPoint Samsung Electronics Rakuten
Price Size Minimum Load Dealing Fee
The Fund remains fully invested in global equities. It aims to earn higher returns than world stockmarkets and has a benchmark of the FTSE World Index, including income (“World Index”). The Fund’s currency exposure is managed relative to that of the World Index.
200 0 (200)
Inception
10 Years
5 Years
3 Years
1 Year
75%
Percent of funds with a higher return
ORBIS
Fact Sheet at 31 August 2011
95%
0.555- Data Source 1.555 © 2011 2.555 3.555Inc. All Rights 4.555 Reserved. 5.555Such information (1) is Sector Average Fund Morningstar, 0.445 1.445 its content 2.445providers;3.445 proprietary to Morningstar and/or (2) may not4.445 be copied or5.445 distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS SICAV GLOBAL EQUITY FUND ORBIS
Fact Sheet at 31 August 2011
The Fund remains fully invested in global equities. It aims to earn higher returns than world stockmarkets and has a benchmark of the FTSE World Index, including income, in euro (“World Index”). The Fund’s currency exposure is managed relative to that of the World Index. Portfolio
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund’s recent performance has been poor at a time when global markets have seen sharp declines across most sectors. Participating in rapid market declines is not unusual in the history of the Fund. While these periods are painful, they often give us the opportunity to buy excellent companies cheaply, as short-term volatility rarely mirrors true changes in intrinsic value. Such purchases, based on our fundamental company research, have often contributed strongly to the Fund’s subsequent recovery and outperformance. In this recent decline, we have added to several existing positions and re-established one in Google, which the Fund held previously from December 2008 to March 2010. While we have no view on the direction the stockmarket might take in the short term, we remain hopeful that the intrinsic value of Google and the Fund’s other holdings will shine through with the clear light of time. Geographical Deployment
Region United States Canada North America Japan United Kingdom Continental Europe Europe Greater China Korea Other Asia ex-Japan Other Total
$79.18 (Investor Shares) $1,930 million $/$ 1.4373 $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Track Record of Investor Shares*
Fund’s % exposure to Equities Currencies 42 48 3 3 45 51 20 3 9 13 8 13 17 26 10 12 6 6 0 0 16 18 2 2 100 100
% of World Index 45 4 49 8 9 18 27 4 2 1 7 9 100
Orbis SICAV Global
World Index
Avg Global Equity Fund**
17 16 15 14
€13.85
13
Value (Euro)
Price Size FX Rate Minimum Load Dealing Fee
12
€12.20
11
€10.89
10 9 8 7
2005
2006
2007
2008
Performance in euro (net of fees) % Returns Orbis Annualised Global Since Inception (1 Jan 2005) 5.0 Latest 5 years (0.2) Latest 3 years 3.9 Latest year (1.4) Calendar year 2010 12.9 Not annualised Year to date (11.4) Latest month (7.6) Risk Measures (Since inception, month end prices) Maximum drawdown 44% Annualised monthly volatility 15.7% Beta vs World Index 1.0 Annualised monthly tracking error 6.1% % Annual Returns to 31 Aug
2011 (1.4)
2009
World Index 3.0 (1.3) 0.7 1.2 20.6
2010
2011
Avg Global Equity Fund** 1.3 (3.0) (1.5) (1.1) 16.6
(10.6) (7.4)
(10.8)
48% 14.6% 1.0 0.0%
48% 15.0% 1.0 6.6%
2010 8.0
2009 5.3
2008 (21.6)
2007 12.9
*To see a longer term track record for the same strategy presented in US dollars, please refer to the Orbis Global Equity Fund Fact Sheet, available on the Orbis website.
Top 10 Holdings
Cisco Systems NetEase.com WellPoint Samsung Electronics Rakuten
Additional Information
% 4.4 4.0 3.9 3.7 3.2
NRG Energy QUALCOMM Safeway Sohu.com CVS Caremark Total
% 3.0 2.6 2.4 2.4 2.2 31.8
This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. **The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. FTSE World Index data source is FTSE International Limited. “FTSE” is a trademark of the London Stock Exchange Limited and is used by FTSE International Limited under licence. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS JAPAN EQUITY
strategy summary
Fact Sheet at 31 August 2011
Orbis offers an investment in Japanese equities through the following Funds:
ORBIS
Price Size FX Rate Minimum Load Dealing Fee
Orbis SICAV Japan Equity Fund—Yen class*† Orbis SICAV Japan Equity Fund—Euro class† Orbis Japan Equity (US$) Fund, a Bermuda mutual fund These participate in the same equity portfolio, whose characteristics are shown below, but differ by currency exposure.
Independent Ratings
Standard & Poor’s AAA
OBSR AA
Portfolio
Track Record
Commentary
Value of ¥1,000 invested at inception (dividends reinvested)
With Japan’s record of persistent deflation, weak political leadership and a declining population, clients often ask why we seem so optimistic about the country. Taken together, our clients have over US$5 billion invested in Japan, and our flagship Global Equity Fund has been overweight the country since early 2001. Quite simply, we believe there are plenty of attractively valued companies in Japan despite its gloomy economic prospects. In other words, we are big in Japan, not big on Japan. Although there are about 1,700 shares in the TOPIX, your Fund holds just 37 stocks. We confess that we have no conviction in our ability to forecast Japan’s economic prospects, but we do have conviction in each of your Fund’s holdings. Sector Allocation
Orbis Japan Equity (Yen)
TOPIX Index
2500 2250 2000 1750 1500
¥2,072
1250 1000
¥778 ¥742
800 600
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Performance in Japanese yen (net of fees)
Sector Consumer Non-Durables Information and Communications Technology Cyclicals Financials Utilities Total
% of Fund
% of TOPIX
36 23 2 21 18 0 100
20 6 16 41 14 3 100
% Returns Annualised Since Inception (1 Jan 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Japan (Yen) 5.5 1.0 (8.2) (4.7) 8.1 1.2
TOPIX Index (1.8) (2.2) (12.4) (13.3) (2.1) 1.0
Avg Japan Equity Fund‡ (2.2) (3.5) (13.7) (13.1) (1.2) 2.2
(4.0) (4.6)
(13.2) (8.4)
(13.1)
56% 18.1% 1.0 0.0%
64% 20.4% 1.0 7.5%
Risk Measures (Since inception, month end prices) Maximum drawdown 52% Annualised monthly volatility 19.1% Beta vs TOPIX 0.9 Tracking error 10.8% 2011 8.1
% Annual Returns to 31 Aug
2010 (20.7)
2009 1.0
Quartile Ranking 1 1 1 1 1
2008 (18.9)
2007 (7.4)
Ranking within Japan equity fund peer group Orbis OrbisJapan Japan(Yen) (Yen)
100
TOPIX T…
80 60
5%
25%
40 50%
20 0 (20) (40) (60) (80)
Inception
10 Years
5 Years
3 Years
75%
95%
1 Year 55 .. 54 54 55
44 .. 54 54 55
33 .. 54 54 55
22 .. 54 54 55
11 .. 54 54 55
00 .. 54 54 55
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *Prior to 29 November 2002 this Fund was a British Virgin Islands investment company, Orbis Japan Equity (Yen) Fund Limited. †This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. ‡The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the TOPIX through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Ratings descriptions are available from www.fundsinsights.com and www.obsrfundratings. com. TOPIX Total Return Index data source is Tokyo Stock Exchange. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Key
120
Top Half
Sumitomo Mitsui Fin. SBI Holdings PARK24 H.I.S. OBIC Total
% 4.9 4.5 4.3 4.0 3.8 54.6
Bottom Half
% 8.6 7.5 6.2 5.8 5.0
% Cumulative return
Top 10 Holdings Rakuten INPEX Nippon Television Network Sundrug Yahoo Japan
Avg Japan Equity Fund‡
4000 3500 3000
Value (Yen)
¥2,072 ¥167 billion ¥/$ 76.61 $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Percent of funds with a higher return
Sector Average Fund – Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS JAPAN EQUITY
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Japanese Equity Strategy.
ORBIS
Orbis SICAV Japan Equity (Yen)*† is fully exposed to the Japanese yen and has a benchmark of the Tokyo Stock Price Index, including income (“TOPIX”). Details for this Fund are shown on the Japan Equity Strategy Summary page. Orbis SICAV Japan Equity (Euro) † hedges its currency exposure into euro and has a benchmark of the TOPIX hedged into euro. Orbis Japan Equity (US$) hedges its currency exposure into US dollars and has a benchmark of the TOPIX hedged into US dollars.
Prices and Performance (net of fees)
Graphs
Orbis SICAV Japan Equity Fund—Euro class in euro
% Returns Annualised Since Inception (1 Jan 2003) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
% Annual Returns to 31 Aug
FX Rate: $/! 1.4373
Size: !83 million
Orbis Japan
TOPIX hedged into euro
4.1 (8.6) (7.2) 9.1 0.2
2.6 (10.7) (12.5) (1.4) 1.3
(3.4) (4.5)
(12.7) (8.3)
2011 9.1
2010 (21.8)
2009 (6.3)
2008 (16.3)
Orbis Japan Equity (Euro)
18 16
€14.18
14 13 12 11 10
€12.51
9
2007 (4.8)
Orbis Japan Equity (US$) Fund in US dollars
03
TOPIX hedged into US$
06
07
08
09
10
11
6.0 2.3 (7.6) (5.7) 7.9 0.5
0.9 0.0 (10.8) (13.0) (2.1) 1.1
(4.2) (4.6)
(13.1) (8.4)
Orbis Japan Equity (US$)
2011 7.9
2010 (21.7)
2009 (0.7)
2008 (16.7)
TOPIX hedged into US$
40 35 30 25
Value (US$)
Orbis Japan
$21.59
20 18 16 14 12
$11.29
10 8
% Annual Returns to 31 Aug
05
Size: US$838 million
Annualised Since Inception (12 Jun 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
04
Value of $10 invested at inception (dividends reinvested)
Price: US$21.59
% Returns
TOPIX hedged into euro
28 26 24 22 20
Value (Euro)
Price: !14.18
Value of !10 invested at inception (dividends reinvested)
2007 (3.5)
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *Prior to 29 November 2002 this Fund was a British Virgin Islands investment company, Orbis Japan Equity (Yen) Fund Limited. †This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS SICAV ASIA EX-JAPAN EQUITY FUND
Price Size Minimum Load Dealing Fee
The Fund seeks higher returns than the average of the Asia ex-Japan equity markets, without greater risk and has a benchmark of the MSCI All Country Asia ex Japan (Net) (US$) Index (“MSCI Asia ex-Japan Index”). Currency exposure is managed separately to equity exposure. The Fund may be long in benchmark or nonbenchmark currencies without holding underlying assets in those currencies. Portfolio
Track Record of Investor Shares
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund has more than twice the benchmark’s exposure to China. Many ask, “Is Orbis attracted by the faster growth in the Chinese economy?” It is a popular misconception that the world’s fastestgrowing economies also offer the best investment opportunities. Both academic research and our stockpicking experience suggest that there is little correlation between economic growth and long-term investment returns. If anything, shares of companies in faster-growing economies can disappoint investors simply because their expectations – and valuations – were too high to begin with. Your Fund seeks to avoid this trap by selecting shares that we believe are trading at a significant discount to intrinsic value, regardless of their locations. So to answer the question, we are very overweight China simply because our fundamental bottom-up research has identified more attractive investment opportunities there than in other Asian markets. Geographical Deployment
Country China Hong Kong Taiwan Greater China Korea Malaysia India Singapore Indonesia Other Total
Orbis Asia ex-Japan Avg Asia ex-Japan Fund*
MSCI Asia ex-Japan Index
22 20
$18.02 $16.89 $16.45
18 16
Value (US$)
14 13 12 11 10 9 8 7
2006
2007
2008
2009
2010
2011
Performance in US dollars (net of fees)
Fund’s % exposure to Equities Currencies 52 52 1 1 10 10 63 63 23 23 4 4 4 4 3 3 0 0 3 3 100 100
% of MSCI Asia ex-Japan Index 24 12 15 51 20 4 10 7 4 4 100
% Returns Annualised Since Inception (1 Jan 2006) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
MSCI Asia ex-Japan Index 9.7 8.7 7.5 9.5 19.6
Avg Asia ex-Japan Fund* 9.2 8.1 7.5 9.1 20.6
(2.4) (7.3)
(7.8) (9.9)
(8.5)
62% 26.1% 1.0 0.0%
62% 26.1% 1.0 7.0%
2011 11.2
2010 8.2
2009 13.1
2008 (11.9)
Quartile Ranking 1 1 1 2
2007 38.4
Ranking within Asia ex-Japan equity fund peer group % 3.8 3.5 3.3 3.2 2.8 52.9
Key Orbis Orbis Asia Asiaex-Japan ex-Japan
MSCI MSCI Asia Asia ex-Japan ex-Japan Index I…
100 80
5%
25%
60 50% 40 20 0 (20)
Inception
5 Years
3 Years
75%
95%
1 Year 44 .. 54 45
33 .. 54 45
22 .. 54 45
11 .. 54 45
Sector Average Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 00 .. 54 45
This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the MSCI Asia ex-Japan Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. MSCI Asia ex-Japan Index data source is MSCI Inc. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
120
Top Half
Samsung Fire & Marine Insurance Samsung Electronics Shanda Interactive Entertainment Korea Investment Holdings China Mobile Total
Bottom Half
% 9.7 8.4 7.6 6.5 4.1
% Cumulative return
Top 10 Holdings
Orbis Asia ex-Japan 11.0 10.7 10.8 11.2 5.4
Risk Measures (Since inception, month end prices) Maximum drawdown 55% Annualised monthly volatility 27.0% Beta vs MSCI Asia ex-Japan Index 1.0 Annualised monthly tracking error 8.9%
% Annual Returns to 31 Aug
NetEase.com Sohu.com Mindray Medical International Kiwoom Securities Hon Hai Precision Industry
$17.01 (Investor Shares) $1,430 million $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Percent of funds with a higher return
ORBIS
Fact Sheet at 31 August 2011
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS
OPTIMAL OPTIMAL
strategy summary
Fact Sheet at 31 August 2011
Orbis offers an investment in the following Optimal Funds:
ORBIS
The Orbis Optimal Strategy seeks capital appreciation in US dollars, euro or yen on a low risk global portfolio. This Strategy invests in Orbis’ preferred mix of equities via investments in Orbis’ equity strategies. The risk of loss is managed with stockmarket and currency hedging. The characteristics of the Orbis Optimal (US$) Fund, which holds the long-term track record, are shown below.
Portfolio
Commentary
Analysis of Stockmarket Exposure (%)
Equity Exposure
Portfolio Hedging
Accounting Exposure
Beta Adjusted Exposure* 0 0 5 3 0 8
Top 10 Holdings looking through to the underlying Funds % 3.2 2.8 2.6 2.5 2.5
Orbis Optimal (US$) Avg Global Equity Fund**
Avg US$ Bond Fund US$ Bank Deposits
80 70 60 50
$72.55
40
$33.27 $28.59 $23.80
30 20 15 10 8
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
North America 31 (32) (1) Europe 21 (17) 4 Japan 18 (11) 7 Asia ex-Japan 11 (6) 5 Other 7 (5) 2 Total 88 (71) 17 *Equity Exposure, multiplied by a Beta determined using Blume’s technique, minus Portfolio Hedging.
Cisco Systems NetEase.com WellPoint Rakuten Samsung Electronics
$72.55 $3,902 million $50,000 None Weekly (Thursday) up to 0.5% pa plus fees from underlying Orbis Funds
Value of $10 invested at inception (dividends reinvested)
Although Optimal hedges most of its stockmarket exposure, it typically retains a modest net long position – currently 8%. This exposure is implemented by not fully hedging some of the stockmarket exposure inherent in the underlying shares held in the Orbis Funds. In this respect Optimal’s net long exposure is driven to a large extent by our bottom-up research on companies. For example, the Fund currently has a net long exposure to both the Korean and Japanese markets. Some might think this is an odd combination since Korea has a growing economy and Japan has a stagnant one. The common thread is that at current valuations, we are comfortable leaving these shares exposed to the influence of their local stockmarket. Both academic research and our stockpicking experience suggest that it is valuation – not economic growth – that plays the most important role in determining long-term investment returns.
Region
Price Size Minimum Load Dealing Fee
Track Record
Value (US$)
Orbis Optimal (US$) Fund (data for which is presented here) Orbis Optimal (Euro) Fund Orbis Optimal (Yen) Fund
NRG Energy QUALCOMM Sohu.com Actelion Safeway Total
% Returns Orbis US$ Bank Avg Global Avg US$ Annualised Optimal Deposits Equity Fund** Bond Fund Since Inception (1 Jan 1990) 9.6 4.1 5.0 5.7 Latest 20 years 8.4 3.8 5.4 5.4 Latest 10 years 4.5 2.3 3.2 4.3 Latest 5 years 2.7 2.2 (0.7) 4.8 Latest 3 years 2.2 0.6 (2.2) 5.2 Latest year 0.0 0.2 12.2 2.7 Calendar year 2010 (3.9) 0.3 8.9 3.9 Not annualised Year to date 0.8 0.1 (4.2) 3.7 Latest month (0.6) 0.0 Risk Measures (Since inception, month end prices) Maximum drawdown 17% 0% 55% 6% Annualised monthly volatility 8.5% 0.7% 16.1% 3.5% Correlation vs World Index 0.0 0.0 0.9 0.2
Currency Allocation % of Fund % 2.0 1.9 1.6 1.6 1.6 22.3
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. The Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Bank Deposits reflect the return on 1 month deposits in US dollars. Avg Global Equity Fund and Avg US$ Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
US dollar Greater China currencies Korean won Other Total
86 6 4 4 100
**The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS OPTIMAL
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Orbis Optimal Strategy. Orbis Optimal (US$) Fund seeks capital appreciation in US dollars on a low risk global portfolio. The Fund’s currency benchmark is 100% US dollars. Details for this Fund are shown on the Orbis Optimal Fund Strategy Summary page.
ORBIS
Orbis Optimal (Euro) Fund invests substantially all of its assets in the Orbis Optimal (US$) Fund, and by selling forward US dollars into euro, hedges most or all of its currency exposure into euro. Orbis Optimal (Yen) Fund invests substantially all of its assets in the Orbis Optimal (US$) Fund, and by selling forward US dollars into yen, hedges most or all of its currency exposure into yen. Fund Information
Graphs
Orbis Optimal (Euro) Fund in euro
Value of !10 invested at inception (dividends reinvested)
Price and Performance net of fees Price: E24.17
FX Rate: $/E 1.4373
% Returns Annualised Since Inception (30 Jun 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Euro Bank Avg Global Avg Euro Optimal Deposits Equity Fund* Bond Fund 6.9 2.8 (0.1) 3.4 3.4 2.5 (1.4) 3.5 2.1 2.4 (3.0) 2.7 3.0 1.2 (1.5) 4.2 (1.3) 0.9 (1.1) (1.3) (2.9) 0.5 16.6 4.7 0.2 (0.3)
0.6 0.1
Size: E396 million
(10.8)
1.1
Orbis Optimal (Euro) Avg Global Equity Fund*
Avg Euro Bond Fund Euro Bank Deposits
26
€24.17
23 20 18 16
Value (Euro)
Currency Allocation % of Fund
€15.61 €14.45
14 12
€9.90
10 9
Euro Greater China currencies Korean won Other
87 7 4 2
Total
100
8 7 6
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Orbis Optimal (Yen) Fund in yen
Value of ¥1,000 invested at inception (dividends reinvested)
Price and Performance net of fees
FX Rate: ¥/$ 76.61
Size: ¥0.8 billion
Orbis Yen Bank Avg Global Avg Yen Optimal Deposits Equity Fund* Bond Fund (0.6) 0.4 (6.4) 0.1 (0.7) 0.4 (8.9) 0.3 (0.7) 0.3 (13.0) 0.1 (1.9) 0.1 2.2 (0.5) (6.4) 0.1 (4.8) (2.2) (0.4) (0.6)
0.1 0.0
(9.6)
1.0
Currency Allocation % of Fund Japanese yen Greater China currencies Korean won Other Total
Avg Yen Bond Fund Yen Bank Deposits
1500 1400 1300 1200 1100
Value (Yen)
Price: ¥968 % Returns Annualised Since Inception (1 Jan 2006) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Optimal (Yen) Avg Global Equity Fund*
¥1,021 ¥1,008 ¥968
1000 900 800 700
87 7 4 2 100
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. The Orbis Optimal (US$) Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Euro and Yen Bank Deposits reflect the return on 1 month deposits in the respective currency. Avg Global Equity Fund, Avg Euro and Yen Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.
¥689
600 500
2006
2007
2008
2009
2010
2011
Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS
OPTIMAL LEVERAGED
strategy summary
Fact Sheet at 31 August 2011
Orbis manages the following Leveraged Funds:
ORBIS
Orbis Leveraged (US$) Fund (data for which is presented here) Orbis Leveraged (Euro) Fund Orbis Leveraged (Yen) Fund The Leveraged Funds maintain a core position in the risk-averse Orbis Optimal (US$) Fund, but differ by currency exposure. The characteristics of the Orbis Leveraged (US$) Fund, which holds the long-term track record, are shown below.
Portfolio
Value of $10 invested at inception (dividends reinvested)
Orbis Leveraged (US$) Avg Global Equity Fund**
Analysis of Stockmarket Exposure (%)
50 40
$33.27 $28.59 $23.80
30 20 15 10 8
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
% 3.9 3.7 3.2 3.0 3.0 43.3
NRG Energy QUALCOMM Sohu.com Actelion Safeway Total
$114.68
75
Value (US$)
Beta Adjusted Exposure† 0 0 9 6 0 15
Top 10 Holdings looking through to the underlying Funds
Currency Allocation % of Fund US dollar Greater China currencies Euro Korean won Canadian dollar Other Total
Avg US$ Bond Fund US$ Bank Deposits
150 125 100
Equity Stockmarket Accounting Region Exposure Positions Exposure North America 60 (62) (2) Europe 41 (34) 7 Japan 36 (22) 14 Asia ex-Japan 21 (11) 10 Other 13 (10) 3 Total 171 (139) 32 † Equity Exposure, multiplied by a Beta determined using Blume’s technique, minus Stockmarket Positions.
% 6.2 5.4 5.1 4.9 4.9
$114.68 $235 million 94% of NAV 1.65%* $50,000 None Weekly (Thursday) Indirectly bears fees from underlying Orbis Funds
Track Record
Please refer to the Optimal Fund Fact Sheet for commentary on the core strategy underlying the Leveraged Funds.
% of net assets Cisco Systems NetEase.com WellPoint Rakuten Samsung Electronics
Price Size Loans Loan spreads Minimum Load Dealing Fee
86 15 (15) 8 3 3 100
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. Orbis Leveraged borrows and invests up to 200% of Members’ capital. Bank Deposits reflect the return on 1 month deposits in US dollars. The Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Avg Global Equity Fund and Avg US$ Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
% Returns Annualised Since Inception (1 Jan 1990) Latest 20 years Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis US$ Bank Avg Global Avg US$ Leveraged Deposits Equity Fund** Bond Fund 11.9 4.1 5.0 5.7 10.6 3.8 5.4 5.4 4.5 2.3 3.2 4.3 1.3 2.2 (0.7) 4.8 4.0 0.6 (2.2) 5.2 (4.1) 0.2 12.2 2.7 (8.1) 0.3 8.9 3.9 (1.0) (1.3)
0.1 0.0
Risk Measures (Since inception, month end prices) Maximum drawdown 36% 0% Annualised monthly volatility 17.2% 0.7% Correlation vs World Index (0.1) 0.0
(4.2)
3.7
55% 16.1% 0.9
6% 3.5% 0.2
*The Fund is bearing an effective interest rate of 2.10% per annum on its outstanding borrowings at month end. The Fund is charged interest at LIBOR plus 1.65% on its borrowings. **The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Leveraged Funds are closed to new investment, including from existing Members. Current Leveraged Fund Members will remain free to switch at no cost to other Orbis Funds, including among the Leveraged Funds. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS LEVERAGED
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Orbis Leveraged Strategy. Orbis Leveraged (US$) Fund seeks capital appreciation in US dollars on a low risk global portfolio. The Fund’s currency benchmark is 100% US dollars. Details for this Fund are shown on the Orbis Leveraged Fund Strategy Summary page.
ORBIS
Orbis Leveraged (Euro) Fund invests substantially all of its assets in the Orbis Leveraged (US$) Fund, and by selling forward US dollars into euro, hedges most or all of its currency exposure into euro. Orbis Leveraged (Yen) Fund invests substantially all of its assets in the Orbis Leveraged (US$) Fund, and by selling forward US dollars into yen, hedges most or all of its currency exposure into yen. Fund Information
Graphs
Orbis Leveraged (Euro) Fund in euro
Value of !10 invested at inception (dividends reinvested)
Price and Performance net of fees Price: E37.82 FX Rate: $/E 1.4373 Size: E52 million % Returns Orbis Euro Bank Avg Global Avg Euro Annualised Leveraged Deposits Equity Fund* Bond Fund Since Inception (30 Jun 1998) 10.6 2.8 (0.1) 3.4 Latest 10 years 4.5 2.5 (1.4) 3.5 Latest 5 years 1.1 2.4 (3.0) 2.7 Latest 3 years 4.2 1.2 (1.5) 4.2 Latest year (3.5) 0.9 (1.1) (1.3) Calendar year 2010 (7.9) 0.5 16.6 4.7 Not annualised Year to date (0.6) 0.6 (10.8) 1.1 Latest month (1.2) 0.1
Currency Allocation % of Fund
Euro Greater China currencies US dollar Korean won Canadian dollar Other Total
Orbis Leveraged (Euro) Avg Global Equity Fund*
Avg Euro Bond Fund Euro Bank Deposits
45 40 35
€37.82
30 25
Value (Euro)
85 15 (14) 8 3 3 100
20
€15.61 €14.45
16 14 12
€9.90
10 8 6
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Orbis Leveraged (Yen) Fund in yen
Value of ¥1,000 invested at inception (dividends reinvested)
Price and Performance net of fees
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. Orbis Leveraged borrows and invests up to 200% of Members’ capital. The Orbis Leveraged (US$) Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Euro and Yen Bank Deposits reflect the return on 1 month deposits in the respective currency. Avg Global Equity Fund, Avg Euro and Yen Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
Orbis Leveraged (Yen) Avg Global Equity Fund*
Avg Yen Bond Fund Yen Bank Deposits
1500 1400 1300 1200 1100
Value (Yen)
Price: ¥904 FX Rate: ¥/$ 76.61 Size: ¥1.6 billion % Returns Orbis Yen Bank Avg Global Avg Yen Annualised Leveraged Deposits Equity Fund* Bond Fund Since Inception (1 Jan 2006) (1.8) 0.4 (6.4) 0.1 Latest 5 years (0.9) 0.4 (8.9) 0.3 Latest 3 years 3.3 0.3 (13.0) 0.1 Latest year (4.5) 0.1 2.2 (0.5) Calendar year 2010 (8.2) 0.1 (4.8) (2.2) Not annualised Year to date (1.3) 0.1 (9.6) 1.0 Latest month (1.3) 0.0 Currency Allocation % of Fund Japanese yen 100 Greater China currencies 15 Euro (15) US dollar (14) Korean won 8 Canadian dollar 3 Other 3 Total 100
¥1,021 ¥1,008 ¥904
1000 900 800 700
¥689
600 500
2006
2007
2008
2009
2010
2011
Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Leveraged Funds are closed to new investment, including from existing Members. Current Leveraged Fund Members will remain free to switch at no cost to other Orbis Funds, including among the Leveraged Funds. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
Independent Ratings
OBSR AA
Portfolio
Track Record
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund’s recent performance has been poor at a time when global markets have seen sharp declines across most sectors. Participating in rapid market declines is not unusual in the history of the Fund. While these periods are painful, they often give us the opportunity to buy excellent companies cheaply, as short-term volatility rarely mirrors true changes in intrinsic value. Such purchases, based on our fundamental company research, have often contributed strongly to the Fund’s subsequent recovery and outperformance. In this recent decline, we have added to several existing positions and re-established one in Google, which the Fund held previously from December 2008 to March 2010. While we have no view on the direction the stockmarket might take in the short term, we remain hopeful that the intrinsic value of Google and the Fund’s other holdings will shine through with the clear light of time. Geographical Deployment
140 120 100 80
Orbis Global
World Index
Avg Global Equity Fund*
$115.76
60 40
$35.87 $28.59
30 20 15 10 7
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
Fund’s % exposure to Equities Currencies 42 48 3 3 45 51 19 3 9 13 8 13 17 26 10 12 6 6 0 0 16 18 3 2 100 100
% of World Index 45 4 49 8 9 18 27 4 2 1 7 9 100
Orbis Global
Since Inception (1 Jan 1990) 12.0 Latest 20 years 12.4 Latest 10 years 8.4 Latest 5 years 2.6 Latest 3 years 3.7 Latest year 12.4 Calendar year 2010 6.0 Not annualised Year to date (4.7) Latest month (7.7) Risk Measures (Since inception, month end prices) Maximum drawdown 50% Annualised monthly volatility 16.7% Beta vs World Index 0.9 Annualised monthly tracking error 9.8%
World Index
Avg Global Equity Fund*
Quartile Ranking
6.1 7.0 5.0 1.1 (0.1) 14.7 12.7
5.0 5.4 3.2 (0.7) (2.2) 12.2 8.9
1 1 1 1 1 3
(4.1) (7.2)
(4.2)
54% 15.8% 1.0 0.0%
55% 16.1% 0.9 7.3%
Ranking within global equity fund peer group NRG Energy QUALCOMM Sohu.com Safeway CVS Caremark Total
% 2.9 2.8 2.4 2.3 2.2 31.8
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Ratings descriptions are available from www.fundsinsights.com and www.obsrglobalfundratings.com. FTSE World Index data source is FTSE International Limited. “FTSE” is a trademark of the London Stock Exchange Limited and is used by FTSE International Limited under licence. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Key
1,200
Orbis OrbisGlobal Global
World WorldIndex Index
1,000
Top Half
% 4.6 4.0 3.8 3.7 3.1
800
5%
25%
600 50% 400 Bottom Half
Top 10 Holdings
% Returns Annualised
% Cumulative return
Region United States Canada North America Japan United Kingdom Continental Europe Europe Greater China Korea Other Asia ex-Japan Other Total
$115.69 $11.2 billion $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Standard & Poor’s AAA
Value (US$)
Cisco Systems NetEase.com WellPoint Samsung Electronics Rakuten
Price Size Minimum Load Dealing Fee
The Fund remains fully invested in global equities. It aims to earn higher returns than world stockmarkets and has a benchmark of the FTSE World Index, including income (“World Index”). The Fund’s currency exposure is managed relative to that of the World Index.
200 0 (200)
Inception
10 Years
5 Years
3 Years
1 Year
75%
Percent of funds with a higher return
ORBIS
Fact Sheet at 31 August 2011
95%
0.555- Data Source 1.555 © 2011 2.555 3.555Inc. All Rights 4.555 Reserved. 5.555Such information (1) is Sector Average Fund Morningstar, 0.445 1.445 its content 2.445providers;3.445 proprietary to Morningstar and/or (2) may not4.445 be copied or5.445 distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS SICAV GLOBAL EQUITY FUND ORBIS
Fact Sheet at 31 August 2011
The Fund remains fully invested in global equities. It aims to earn higher returns than world stockmarkets and has a benchmark of the FTSE World Index, including income, in euro (“World Index”). The Fund’s currency exposure is managed relative to that of the World Index. Portfolio
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund’s recent performance has been poor at a time when global markets have seen sharp declines across most sectors. Participating in rapid market declines is not unusual in the history of the Fund. While these periods are painful, they often give us the opportunity to buy excellent companies cheaply, as short-term volatility rarely mirrors true changes in intrinsic value. Such purchases, based on our fundamental company research, have often contributed strongly to the Fund’s subsequent recovery and outperformance. In this recent decline, we have added to several existing positions and re-established one in Google, which the Fund held previously from December 2008 to March 2010. While we have no view on the direction the stockmarket might take in the short term, we remain hopeful that the intrinsic value of Google and the Fund’s other holdings will shine through with the clear light of time. Geographical Deployment
Region United States Canada North America Japan United Kingdom Continental Europe Europe Greater China Korea Other Asia ex-Japan Other Total
$79.18 (Investor Shares) $1,930 million $/$ 1.4373 $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Track Record of Investor Shares*
Fund’s % exposure to Equities Currencies 42 48 3 3 45 51 20 3 9 13 8 13 17 26 10 12 6 6 0 0 16 18 2 2 100 100
% of World Index 45 4 49 8 9 18 27 4 2 1 7 9 100
Orbis SICAV Global
World Index
Avg Global Equity Fund**
17 16 15 14
€13.85
13
Value (Euro)
Price Size FX Rate Minimum Load Dealing Fee
12
€12.20
11
€10.89
10 9 8 7
2005
2006
2007
2008
Performance in euro (net of fees) % Returns Orbis Annualised Global Since Inception (1 Jan 2005) 5.0 Latest 5 years (0.2) Latest 3 years 3.9 Latest year (1.4) Calendar year 2010 12.9 Not annualised Year to date (11.4) Latest month (7.6) Risk Measures (Since inception, month end prices) Maximum drawdown 44% Annualised monthly volatility 15.7% Beta vs World Index 1.0 Annualised monthly tracking error 6.1% % Annual Returns to 31 Aug
2011 (1.4)
2009
World Index 3.0 (1.3) 0.7 1.2 20.6
2010
2011
Avg Global Equity Fund** 1.3 (3.0) (1.5) (1.1) 16.6
(10.6) (7.4)
(10.8)
48% 14.6% 1.0 0.0%
48% 15.0% 1.0 6.6%
2010 8.0
2009 5.3
2008 (21.6)
2007 12.9
*To see a longer term track record for the same strategy presented in US dollars, please refer to the Orbis Global Equity Fund Fact Sheet, available on the Orbis website.
Top 10 Holdings
Cisco Systems NetEase.com WellPoint Samsung Electronics Rakuten
Additional Information
% 4.4 4.0 3.9 3.7 3.2
NRG Energy QUALCOMM Safeway Sohu.com CVS Caremark Total
% 3.0 2.6 2.4 2.4 2.2 31.8
This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. **The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. FTSE World Index data source is FTSE International Limited. “FTSE” is a trademark of the London Stock Exchange Limited and is used by FTSE International Limited under licence. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS JAPAN EQUITY
strategy summary
Fact Sheet at 31 August 2011
Orbis offers an investment in Japanese equities through the following Funds:
ORBIS
Price Size FX Rate Minimum Load Dealing Fee
Orbis SICAV Japan Equity Fund—Yen class*† Orbis SICAV Japan Equity Fund—Euro class† Orbis Japan Equity (US$) Fund, a Bermuda mutual fund These participate in the same equity portfolio, whose characteristics are shown below, but differ by currency exposure.
Independent Ratings
Standard & Poor’s AAA
OBSR AA
Portfolio
Track Record
Commentary
Value of ¥1,000 invested at inception (dividends reinvested)
With Japan’s record of persistent deflation, weak political leadership and a declining population, clients often ask why we seem so optimistic about the country. Taken together, our clients have over US$5 billion invested in Japan, and our flagship Global Equity Fund has been overweight the country since early 2001. Quite simply, we believe there are plenty of attractively valued companies in Japan despite its gloomy economic prospects. In other words, we are big in Japan, not big on Japan. Although there are about 1,700 shares in the TOPIX, your Fund holds just 37 stocks. We confess that we have no conviction in our ability to forecast Japan’s economic prospects, but we do have conviction in each of your Fund’s holdings. Sector Allocation
Orbis Japan Equity (Yen)
TOPIX Index
2500 2250 2000 1750 1500
¥2,072
1250 1000
¥778 ¥742
800 600
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Performance in Japanese yen (net of fees)
Sector Consumer Non-Durables Information and Communications Technology Cyclicals Financials Utilities Total
% of Fund
% of TOPIX
36 23 2 21 18 0 100
20 6 16 41 14 3 100
% Returns Annualised Since Inception (1 Jan 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Japan (Yen) 5.5 1.0 (8.2) (4.7) 8.1 1.2
TOPIX Index (1.8) (2.2) (12.4) (13.3) (2.1) 1.0
Avg Japan Equity Fund‡ (2.2) (3.5) (13.7) (13.1) (1.2) 2.2
(4.0) (4.6)
(13.2) (8.4)
(13.1)
56% 18.1% 1.0 0.0%
64% 20.4% 1.0 7.5%
Risk Measures (Since inception, month end prices) Maximum drawdown 52% Annualised monthly volatility 19.1% Beta vs TOPIX 0.9 Tracking error 10.8% 2011 8.1
% Annual Returns to 31 Aug
2010 (20.7)
2009 1.0
Quartile Ranking 1 1 1 1 1
2008 (18.9)
2007 (7.4)
Ranking within Japan equity fund peer group Orbis OrbisJapan Japan(Yen) (Yen)
100
TOPIX T…
80 60
5%
25%
40 50%
20 0 (20) (40) (60) (80)
Inception
10 Years
5 Years
3 Years
75%
95%
1 Year 55 .. 54 54 55
44 .. 54 54 55
33 .. 54 54 55
22 .. 54 54 55
11 .. 54 54 55
00 .. 54 54 55
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *Prior to 29 November 2002 this Fund was a British Virgin Islands investment company, Orbis Japan Equity (Yen) Fund Limited. †This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. ‡The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the TOPIX through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. Ratings descriptions are available from www.fundsinsights.com and www.obsrfundratings. com. TOPIX Total Return Index data source is Tokyo Stock Exchange. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Key
120
Top Half
Sumitomo Mitsui Fin. SBI Holdings PARK24 H.I.S. OBIC Total
% 4.9 4.5 4.3 4.0 3.8 54.6
Bottom Half
% 8.6 7.5 6.2 5.8 5.0
% Cumulative return
Top 10 Holdings Rakuten INPEX Nippon Television Network Sundrug Yahoo Japan
Avg Japan Equity Fund‡
4000 3500 3000
Value (Yen)
¥2,072 ¥167 billion ¥/$ 76.61 $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Percent of funds with a higher return
Sector Average Fund – Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS JAPAN EQUITY
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Japanese Equity Strategy.
ORBIS
Orbis SICAV Japan Equity (Yen)*† is fully exposed to the Japanese yen and has a benchmark of the Tokyo Stock Price Index, including income (“TOPIX”). Details for this Fund are shown on the Japan Equity Strategy Summary page. Orbis SICAV Japan Equity (Euro) † hedges its currency exposure into euro and has a benchmark of the TOPIX hedged into euro. Orbis Japan Equity (US$) hedges its currency exposure into US dollars and has a benchmark of the TOPIX hedged into US dollars.
Prices and Performance (net of fees)
Graphs
Orbis SICAV Japan Equity Fund—Euro class in euro
% Returns Annualised Since Inception (1 Jan 2003) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
% Annual Returns to 31 Aug
FX Rate: $/! 1.4373
Size: !83 million
Orbis Japan
TOPIX hedged into euro
4.1 (8.6) (7.2) 9.1 0.2
2.6 (10.7) (12.5) (1.4) 1.3
(3.4) (4.5)
(12.7) (8.3)
2011 9.1
2010 (21.8)
2009 (6.3)
2008 (16.3)
Orbis Japan Equity (Euro)
18 16
€14.18
14 13 12 11 10
€12.51
9
2007 (4.8)
Orbis Japan Equity (US$) Fund in US dollars
03
TOPIX hedged into US$
06
07
08
09
10
11
6.0 2.3 (7.6) (5.7) 7.9 0.5
0.9 0.0 (10.8) (13.0) (2.1) 1.1
(4.2) (4.6)
(13.1) (8.4)
Orbis Japan Equity (US$)
2011 7.9
2010 (21.7)
2009 (0.7)
2008 (16.7)
TOPIX hedged into US$
40 35 30 25
Value (US$)
Orbis Japan
$21.59
20 18 16 14 12
$11.29
10 8
% Annual Returns to 31 Aug
05
Size: US$838 million
Annualised Since Inception (12 Jun 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
04
Value of $10 invested at inception (dividends reinvested)
Price: US$21.59
% Returns
TOPIX hedged into euro
28 26 24 22 20
Value (Euro)
Price: !14.18
Value of !10 invested at inception (dividends reinvested)
2007 (3.5)
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *Prior to 29 November 2002 this Fund was a British Virgin Islands investment company, Orbis Japan Equity (Yen) Fund Limited. †This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS SICAV ASIA EX-JAPAN EQUITY FUND
Price Size Minimum Load Dealing Fee
The Fund seeks higher returns than the average of the Asia ex-Japan equity markets, without greater risk and has a benchmark of the MSCI All Country Asia ex Japan (Net) (US$) Index (“MSCI Asia ex-Japan Index”). Currency exposure is managed separately to equity exposure. The Fund may be long in benchmark or nonbenchmark currencies without holding underlying assets in those currencies. Portfolio
Track Record of Investor Shares
Commentary
Value of $10 invested at inception (dividends reinvested)
Your Fund has more than twice the benchmark’s exposure to China. Many ask, “Is Orbis attracted by the faster growth in the Chinese economy?” It is a popular misconception that the world’s fastestgrowing economies also offer the best investment opportunities. Both academic research and our stockpicking experience suggest that there is little correlation between economic growth and long-term investment returns. If anything, shares of companies in faster-growing economies can disappoint investors simply because their expectations – and valuations – were too high to begin with. Your Fund seeks to avoid this trap by selecting shares that we believe are trading at a significant discount to intrinsic value, regardless of their locations. So to answer the question, we are very overweight China simply because our fundamental bottom-up research has identified more attractive investment opportunities there than in other Asian markets. Geographical Deployment
Country China Hong Kong Taiwan Greater China Korea Malaysia India Singapore Indonesia Other Total
Orbis Asia ex-Japan Avg Asia ex-Japan Fund*
MSCI Asia ex-Japan Index
22 20
$18.02 $16.89 $16.45
18 16
Value (US$)
14 13 12 11 10 9 8 7
2006
2007
2008
2009
2010
2011
Performance in US dollars (net of fees)
Fund’s % exposure to Equities Currencies 52 52 1 1 10 10 63 63 23 23 4 4 4 4 3 3 0 0 3 3 100 100
% of MSCI Asia ex-Japan Index 24 12 15 51 20 4 10 7 4 4 100
% Returns Annualised Since Inception (1 Jan 2006) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
MSCI Asia ex-Japan Index 9.7 8.7 7.5 9.5 19.6
Avg Asia ex-Japan Fund* 9.2 8.1 7.5 9.1 20.6
(2.4) (7.3)
(7.8) (9.9)
(8.5)
62% 26.1% 1.0 0.0%
62% 26.1% 1.0 7.0%
2011 11.2
2010 8.2
2009 13.1
2008 (11.9)
Quartile Ranking 1 1 1 2
2007 38.4
Ranking within Asia ex-Japan equity fund peer group % 3.8 3.5 3.3 3.2 2.8 52.9
Key Orbis Orbis Asia Asiaex-Japan ex-Japan
MSCI MSCI Asia Asia ex-Japan ex-Japan Index I…
100 80
5%
25%
60 50% 40 20 0 (20)
Inception
5 Years
3 Years
75%
95%
1 Year 44 .. 54 45
33 .. 54 45
22 .. 54 45
11 .. 54 45
Sector Average Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 00 .. 54 45
This is a fund of Orbis SICAV, a UCITS IV compliant Luxembourg fund, which is the only Orbis investment company admitted for public marketing in Luxembourg. Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the MSCI Asia ex-Japan Index through 31 August 2011 for periods greater than one month. Returns for shorter periods are not shown as high price volatility and late fund reporting may cause them to be significantly restated. MSCI Asia ex-Japan Index data source is MSCI Inc. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
120
Top Half
Samsung Fire & Marine Insurance Samsung Electronics Shanda Interactive Entertainment Korea Investment Holdings China Mobile Total
Bottom Half
% 9.7 8.4 7.6 6.5 4.1
% Cumulative return
Top 10 Holdings
Orbis Asia ex-Japan 11.0 10.7 10.8 11.2 5.4
Risk Measures (Since inception, month end prices) Maximum drawdown 55% Annualised monthly volatility 27.0% Beta vs MSCI Asia ex-Japan Index 1.0 Annualised monthly tracking error 8.9%
% Annual Returns to 31 Aug
NetEase.com Sohu.com Mindray Medical International Kiwoom Securities Hon Hai Precision Industry
$17.01 (Investor Shares) $1,430 million $50,000 None Weekly (Thursday) 0.5%-2.5% performance based
Percent of funds with a higher return
ORBIS
Fact Sheet at 31 August 2011
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management (B.V.I.) Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS
OPTIMAL OPTIMAL
strategy summary
Fact Sheet at 31 August 2011
Orbis offers an investment in the following Optimal Funds:
ORBIS
The Orbis Optimal Strategy seeks capital appreciation in US dollars, euro or yen on a low risk global portfolio. This Strategy invests in Orbis’ preferred mix of equities via investments in Orbis’ equity strategies. The risk of loss is managed with stockmarket and currency hedging. The characteristics of the Orbis Optimal (US$) Fund, which holds the long-term track record, are shown below.
Portfolio
Commentary
Analysis of Stockmarket Exposure (%)
Equity Exposure
Portfolio Hedging
Accounting Exposure
Beta Adjusted Exposure* 0 0 5 3 0 8
Top 10 Holdings looking through to the underlying Funds % 3.2 2.8 2.6 2.5 2.5
Orbis Optimal (US$) Avg Global Equity Fund**
Avg US$ Bond Fund US$ Bank Deposits
80 70 60 50
$72.55
40
$33.27 $28.59 $23.80
30 20 15 10 8
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
North America 31 (32) (1) Europe 21 (17) 4 Japan 18 (11) 7 Asia ex-Japan 11 (6) 5 Other 7 (5) 2 Total 88 (71) 17 *Equity Exposure, multiplied by a Beta determined using Blume’s technique, minus Portfolio Hedging.
Cisco Systems NetEase.com WellPoint Rakuten Samsung Electronics
$72.55 $3,902 million $50,000 None Weekly (Thursday) up to 0.5% pa plus fees from underlying Orbis Funds
Value of $10 invested at inception (dividends reinvested)
Although Optimal hedges most of its stockmarket exposure, it typically retains a modest net long position – currently 8%. This exposure is implemented by not fully hedging some of the stockmarket exposure inherent in the underlying shares held in the Orbis Funds. In this respect Optimal’s net long exposure is driven to a large extent by our bottom-up research on companies. For example, the Fund currently has a net long exposure to both the Korean and Japanese markets. Some might think this is an odd combination since Korea has a growing economy and Japan has a stagnant one. The common thread is that at current valuations, we are comfortable leaving these shares exposed to the influence of their local stockmarket. Both academic research and our stockpicking experience suggest that it is valuation – not economic growth – that plays the most important role in determining long-term investment returns.
Region
Price Size Minimum Load Dealing Fee
Track Record
Value (US$)
Orbis Optimal (US$) Fund (data for which is presented here) Orbis Optimal (Euro) Fund Orbis Optimal (Yen) Fund
NRG Energy QUALCOMM Sohu.com Actelion Safeway Total
% Returns Orbis US$ Bank Avg Global Avg US$ Annualised Optimal Deposits Equity Fund** Bond Fund Since Inception (1 Jan 1990) 9.6 4.1 5.0 5.7 Latest 20 years 8.4 3.8 5.4 5.4 Latest 10 years 4.5 2.3 3.2 4.3 Latest 5 years 2.7 2.2 (0.7) 4.8 Latest 3 years 2.2 0.6 (2.2) 5.2 Latest year 0.0 0.2 12.2 2.7 Calendar year 2010 (3.9) 0.3 8.9 3.9 Not annualised Year to date 0.8 0.1 (4.2) 3.7 Latest month (0.6) 0.0 Risk Measures (Since inception, month end prices) Maximum drawdown 17% 0% 55% 6% Annualised monthly volatility 8.5% 0.7% 16.1% 3.5% Correlation vs World Index 0.0 0.0 0.9 0.2
Currency Allocation % of Fund % 2.0 1.9 1.6 1.6 1.6 22.3
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. The Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Bank Deposits reflect the return on 1 month deposits in US dollars. Avg Global Equity Fund and Avg US$ Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
US dollar Greater China currencies Korean won Other Total
86 6 4 4 100
**The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS OPTIMAL
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Orbis Optimal Strategy. Orbis Optimal (US$) Fund seeks capital appreciation in US dollars on a low risk global portfolio. The Fund’s currency benchmark is 100% US dollars. Details for this Fund are shown on the Orbis Optimal Fund Strategy Summary page.
ORBIS
Orbis Optimal (Euro) Fund invests substantially all of its assets in the Orbis Optimal (US$) Fund, and by selling forward US dollars into euro, hedges most or all of its currency exposure into euro. Orbis Optimal (Yen) Fund invests substantially all of its assets in the Orbis Optimal (US$) Fund, and by selling forward US dollars into yen, hedges most or all of its currency exposure into yen. Fund Information
Graphs
Orbis Optimal (Euro) Fund in euro
Value of !10 invested at inception (dividends reinvested)
Price and Performance net of fees Price: E24.17
FX Rate: $/E 1.4373
% Returns Annualised Since Inception (30 Jun 1998) Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Euro Bank Avg Global Avg Euro Optimal Deposits Equity Fund* Bond Fund 6.9 2.8 (0.1) 3.4 3.4 2.5 (1.4) 3.5 2.1 2.4 (3.0) 2.7 3.0 1.2 (1.5) 4.2 (1.3) 0.9 (1.1) (1.3) (2.9) 0.5 16.6 4.7 0.2 (0.3)
0.6 0.1
Size: E396 million
(10.8)
1.1
Orbis Optimal (Euro) Avg Global Equity Fund*
Avg Euro Bond Fund Euro Bank Deposits
26
€24.17
23 20 18 16
Value (Euro)
Currency Allocation % of Fund
€15.61 €14.45
14 12
€9.90
10 9
Euro Greater China currencies Korean won Other
87 7 4 2
Total
100
8 7 6
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Orbis Optimal (Yen) Fund in yen
Value of ¥1,000 invested at inception (dividends reinvested)
Price and Performance net of fees
FX Rate: ¥/$ 76.61
Size: ¥0.8 billion
Orbis Yen Bank Avg Global Avg Yen Optimal Deposits Equity Fund* Bond Fund (0.6) 0.4 (6.4) 0.1 (0.7) 0.4 (8.9) 0.3 (0.7) 0.3 (13.0) 0.1 (1.9) 0.1 2.2 (0.5) (6.4) 0.1 (4.8) (2.2) (0.4) (0.6)
0.1 0.0
(9.6)
1.0
Currency Allocation % of Fund Japanese yen Greater China currencies Korean won Other Total
Avg Yen Bond Fund Yen Bank Deposits
1500 1400 1300 1200 1100
Value (Yen)
Price: ¥968 % Returns Annualised Since Inception (1 Jan 2006) Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis Optimal (Yen) Avg Global Equity Fund*
¥1,021 ¥1,008 ¥968
1000 900 800 700
87 7 4 2 100
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. The Orbis Optimal (US$) Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Euro and Yen Bank Deposits reflect the return on 1 month deposits in the respective currency. Avg Global Equity Fund, Avg Euro and Yen Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved. Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.
¥689
600 500
2006
2007
2008
2009
2010
2011
Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Leveraged Funds remain closed to all new investments and the Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS
OPTIMAL LEVERAGED
strategy summary
Fact Sheet at 31 August 2011
Orbis manages the following Leveraged Funds:
ORBIS
Orbis Leveraged (US$) Fund (data for which is presented here) Orbis Leveraged (Euro) Fund Orbis Leveraged (Yen) Fund The Leveraged Funds maintain a core position in the risk-averse Orbis Optimal (US$) Fund, but differ by currency exposure. The characteristics of the Orbis Leveraged (US$) Fund, which holds the long-term track record, are shown below.
Portfolio
Value of $10 invested at inception (dividends reinvested)
Orbis Leveraged (US$) Avg Global Equity Fund**
Analysis of Stockmarket Exposure (%)
50 40
$33.27 $28.59 $23.80
30 20 15 10 8
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Performance in US dollars (net of fees)
% 3.9 3.7 3.2 3.0 3.0 43.3
NRG Energy QUALCOMM Sohu.com Actelion Safeway Total
$114.68
75
Value (US$)
Beta Adjusted Exposure† 0 0 9 6 0 15
Top 10 Holdings looking through to the underlying Funds
Currency Allocation % of Fund US dollar Greater China currencies Euro Korean won Canadian dollar Other Total
Avg US$ Bond Fund US$ Bank Deposits
150 125 100
Equity Stockmarket Accounting Region Exposure Positions Exposure North America 60 (62) (2) Europe 41 (34) 7 Japan 36 (22) 14 Asia ex-Japan 21 (11) 10 Other 13 (10) 3 Total 171 (139) 32 † Equity Exposure, multiplied by a Beta determined using Blume’s technique, minus Stockmarket Positions.
% 6.2 5.4 5.1 4.9 4.9
$114.68 $235 million 94% of NAV 1.65%* $50,000 None Weekly (Thursday) Indirectly bears fees from underlying Orbis Funds
Track Record
Please refer to the Optimal Fund Fact Sheet for commentary on the core strategy underlying the Leveraged Funds.
% of net assets Cisco Systems NetEase.com WellPoint Rakuten Samsung Electronics
Price Size Loans Loan spreads Minimum Load Dealing Fee
86 15 (15) 8 3 3 100
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. Orbis Leveraged borrows and invests up to 200% of Members’ capital. Bank Deposits reflect the return on 1 month deposits in US dollars. The Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Avg Global Equity Fund and Avg US$ Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
% Returns Annualised Since Inception (1 Jan 1990) Latest 20 years Latest 10 years Latest 5 years Latest 3 years Latest year Calendar year 2010 Not annualised Year to date Latest month
Orbis US$ Bank Avg Global Avg US$ Leveraged Deposits Equity Fund** Bond Fund 11.9 4.1 5.0 5.7 10.6 3.8 5.4 5.4 4.5 2.3 3.2 4.3 1.3 2.2 (0.7) 4.8 4.0 0.6 (2.2) 5.2 (4.1) 0.2 12.2 2.7 (8.1) 0.3 8.9 3.9 (1.0) (1.3)
0.1 0.0
Risk Measures (Since inception, month end prices) Maximum drawdown 36% 0% Annualised monthly volatility 17.2% 0.7% Correlation vs World Index (0.1) 0.0
(4.2)
3.7
55% 16.1% 0.9
6% 3.5% 0.2
*The Fund is bearing an effective interest rate of 2.10% per annum on its outstanding borrowings at month end. The Fund is charged interest at LIBOR plus 1.65% on its borrowings. **The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Leveraged Funds are closed to new investment, including from existing Members. Current Leveraged Fund Members will remain free to switch at no cost to other Orbis Funds, including among the Leveraged Funds. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
ORBIS LEVERAGED
specific fund details
Fact Sheet at 31 August 2011
This page shows the specific track record of additional Orbis Funds applying the Orbis Leveraged Strategy. Orbis Leveraged (US$) Fund seeks capital appreciation in US dollars on a low risk global portfolio. The Fund’s currency benchmark is 100% US dollars. Details for this Fund are shown on the Orbis Leveraged Fund Strategy Summary page.
ORBIS
Orbis Leveraged (Euro) Fund invests substantially all of its assets in the Orbis Leveraged (US$) Fund, and by selling forward US dollars into euro, hedges most or all of its currency exposure into euro. Orbis Leveraged (Yen) Fund invests substantially all of its assets in the Orbis Leveraged (US$) Fund, and by selling forward US dollars into yen, hedges most or all of its currency exposure into yen. Fund Information
Graphs
Orbis Leveraged (Euro) Fund in euro
Value of !10 invested at inception (dividends reinvested)
Price and Performance net of fees Price: E37.82 FX Rate: $/E 1.4373 Size: E52 million % Returns Orbis Euro Bank Avg Global Avg Euro Annualised Leveraged Deposits Equity Fund* Bond Fund Since Inception (30 Jun 1998) 10.6 2.8 (0.1) 3.4 Latest 10 years 4.5 2.5 (1.4) 3.5 Latest 5 years 1.1 2.4 (3.0) 2.7 Latest 3 years 4.2 1.2 (1.5) 4.2 Latest year (3.5) 0.9 (1.1) (1.3) Calendar year 2010 (7.9) 0.5 16.6 4.7 Not annualised Year to date (0.6) 0.6 (10.8) 1.1 Latest month (1.2) 0.1
Currency Allocation % of Fund
Euro Greater China currencies US dollar Korean won Canadian dollar Other Total
Orbis Leveraged (Euro) Avg Global Equity Fund*
Avg Euro Bond Fund Euro Bank Deposits
45 40 35
€37.82
30 25
Value (Euro)
85 15 (14) 8 3 3 100
20
€15.61 €14.45
16 14 12
€9.90
10 8 6
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Orbis Leveraged (Yen) Fund in yen
Value of ¥1,000 invested at inception (dividends reinvested)
Price and Performance net of fees
Returns are net of fees, include income and assume reinvestment of dividends. Shares in the Fund are available by Prospectus only. Certain capitalised terms are defined in the Prospectus. While we have endeavoured to ensure the accuracy of the information herein, such information is not guaranteed as to accuracy or completeness. Orbis Leveraged borrows and invests up to 200% of Members’ capital. The Orbis Leveraged (US$) Fund was managed with a currency benchmark of 40% US$, 40% ecu and 20% yen prior to 1 July 1998, 100% US$ thereafter. Euro and Yen Bank Deposits reflect the return on 1 month deposits in the respective currency. Avg Global Equity Fund, Avg Euro and Yen Bond Fund - Data Source © 2011 Morningstar, Inc. All Rights Reserved.
Orbis Leveraged (Yen) Avg Global Equity Fund*
Avg Yen Bond Fund Yen Bank Deposits
1500 1400 1300 1200 1100
Value (Yen)
Price: ¥904 FX Rate: ¥/$ 76.61 Size: ¥1.6 billion % Returns Orbis Yen Bank Avg Global Avg Yen Annualised Leveraged Deposits Equity Fund* Bond Fund Since Inception (1 Jan 2006) (1.8) 0.4 (6.4) 0.1 Latest 5 years (0.9) 0.4 (8.9) 0.3 Latest 3 years 3.3 0.3 (13.0) 0.1 Latest year (4.5) 0.1 2.2 (0.5) Calendar year 2010 (8.2) 0.1 (4.8) (2.2) Not annualised Year to date (1.3) 0.1 (9.6) 1.0 Latest month (1.3) 0.0 Currency Allocation % of Fund Japanese yen 100 Greater China currencies 15 Euro (15) US dollar (14) Korean won 8 Canadian dollar 3 Other 3 Total 100
¥1,021 ¥1,008 ¥904
1000 900 800 700
¥689
600 500
2006
2007
2008
2009
2010
2011
Such information (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. *The latest Morningstar data for 25 August 2011 has been extended to reflect the move in the World Index through 31 August 2011 for periods greater than one month. The average fund returns are not shown for the periods of a month or less as high price volatility and late fund reporting regularly cause them to be significantly restated by Morningstar. Approved for issue in the United Kingdom by Orbis Investment Advisory Limited, Orbis House, 5 Mansfield Street, London, England W1G 9NG; a firm authorised and regulated by the Financial Services Authority.
Past performance is not a reliable indicator of future results. Returns may decrease or increase as a result of currency fluctuations. Orbis Fund share prices fluctuate and are not guaranteed. When making an investment in the Funds, an investor’s capital is at risk. The Leveraged Funds are closed to new investment, including from existing Members. Current Leveraged Fund Members will remain free to switch at no cost to other Orbis Funds, including among the Leveraged Funds. The Orbis Global Equity Strategy and Optimal Strategy are now accepting subscriptions of at least US$50 million from qualified new investors. The Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
