orbis optimal orbis optimal
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$50 million from qualified new investors. The Orbis Asia ex-Japan Equity Fund is open to existing Orbis investors only. The Japan Equity Strategy remains open to existing and new investors. For more details, please visit our website.
Orbis Investment Management Limited
(Licensed to conduct investment business by the Bermuda Monetary Authority)
Contact: [email protected] Telephone: +1 (441) 296 3000 www.orbisfunds.com
OPTIMAL OPTIMAL
strategy summary
Fact Sheet at 31 August 2011
Orbis offers an investment in the following Optimal Funds:
ORBIS
The Orbis Optimal Strategy seeks capital appreciation in US dollars, euro or yen on a low risk global portfolio. This Strategy invests in Orbis’ preferred mix of equities via investments in Orbis’ equity strategies. The risk of loss is managed with stockmarket and currency hedging. The characteristics of the Orbis Optimal (US$) 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
