Monthly Fact Sheet January 2009

SANLAM ALTERNATIVE
INCOME FUND
Fund objective Portfolio detail
The objective of the Sanlam Alternative Income Fund (SAIF or
the Fund) is to offer a liquid, mainly dividend-yielding investment
that will track the South African short-term interest rate cycle.
Income distributed to investors will aim to exceed the average Unlisted
after-tax yield normally received from money-market portfolios. Prefence Shares 58.30
>12 months
The Fund has a conservative investment mandate that will follow
a risk profile focused on capital preservation subject to strict
criteria, in accordance with the requirements of the Collective
Investments Schemes Control Act (CISCA).
The credit risk is diversified in credit-rated investments of a high Liquid and CIS
credit quality. Investments are in rand denominated, redeemable, Investm ents
41.70
cumulative preference shares and liquid instruments and any
other securities allowed by CISCA.

Fund information 0 20 40 60 80 100

Domestic – Fixed Interest – Varied
Classification
Specialist
Risk profile Low Top 10 holdings
After tax return on the Sanlam Money Ultimate Credit Risk of Credit Maturity % of
Benchmark Rating
Market Fund (individual tax rate of 40%) Securities Portfolio
Asset Manager Sanlam Investment Management SIM Money Market Fund - 24 hours 25.42
Launch date 25/05/2007 FirstRand Limited AA-(zaf) > 12 months/24 hours 16.29
Constant price 100 cents per unit maintained Sanlam Ltd AA-(zaf) > 12 months 15.08
Investec Ltd AA-(zaf) > 12 months 10.05
Credit rating from Fitch AA- (zaf)
Nedbank Group Ltd AA-(zaf) 7 days/30 days 7.54
48 hours Stanlib Corporate MMF AAA(zaf) 24 hours 6.28
Liquidity
(subject to provisions of CISCA and deed)
Absa Bank Ltd AAA(zaf) > 12 months/24 hours 5.74
Initial fee 0.00% Nedbank Ltd AA(zaf) > 12 months/24 hours 5.54
1.65% (VAT of 14% included) Investec Bank Limited AA-(zaf) 30 days 5.03
This fee includes an ongoing 0.30% trailer Sanlam Capital Markets Ltd A-(zaf) > 12 months 2.51
Annual service fee fee for intermediaries. More competitive
fee classes are available for larger
investments

Total Expense Ratio* 1.75%

Portfolio performance
1 Year (%) 3 Years (%) 5 Years (%)
Income declaration dates Last day of each month
Income price dates Within one working day of new month Alternative Income Fund 8.66 - -
Benchmark 7.07 - -
Valuation time of fund 17:00
Trading closing time 11:00
Minimum investment Lump sum R20 000 / Monthly R1 000 Average Effective rate for month of Jan 2009: 8.86%
Fund size R4 008.9 million
Trustee Standard Bank of SA • Investors are advised to familiarize themselves with the unique
risks pertaining to their investment choices, including the
*Total Expense Ratio (TER): This fund (retail class) has a TER of 1.75%. disclaimer hereunder.
For the period from 1 January 2008 to 31 December 2008 1.75% of the
average net asset value of the portfolio were incurred as charges, levies and • Investors should seek the advice of a properly qualified financial
fees related to the management of the portfolio. The ratio does not include consultant/advisor before investing.
transaction costs. A higher TER does not necessarily imply a poor return,
nor does a low TER imply a good return. The current TER can not be • Income tax status is subject to current income tax legislation and
regarded as an indication of future TER’s. may change in future.
Manager information
PHYSICAL ADDRESS: POSTAL ADDRESS: CLIENT CONTACT CENTRE
2 Strand Road, Bellville 7530 PO Box 30, Sanlamhof 7532 Tel: +27 (21) 916-1800
Fax: +272 (21) 947-8224 Email: service@sci.sanlam.com Website: www.sanlamcollectiveinvestments.com

Disclaimer
The price of each unit is aimed at a constant value. The total return to the investor is primarily made up of dividends received but, may
also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing
the daily yield, but in an extreme case it can have the effect of reducing the capital value of the Fund. Past performance is not necessarily
a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and
maximum commissions is available on request from the manager/scheme. Commission and incentives may be paid and if so, would be
included in the overall costs. Performance: Annualised Growth Rate. The source is Morningstar. Actual investment performance will differ
based on the fees applicable, the actual investment date and the date of reinvestment of income. Member of the ASISA.

THE SANLAM ALTERNATIVE
Background
Sanlam Collective Investments launched the Sanlam
Alternative Income Fund on 25 May 2007 and
amalgamated the Sanlam Dividend Income Fund with
the Sanlam Alternative Income Fund on 30 June 2007.
Fund Objective
The fund offers a low risk investment offering an
attractive after tax return exceeding money market
after-tax yields, with returns mainly in the form of tax-
free dividends.
Salient Features
SAIF is the first “new generation” dividend fund in the
industry and is essentially a redeemable preference
share conduit.
The fund has a conservative investment mandate that
follows a risk profile focused on capital preservation
and invests predominantly in:
o redeemable preference shares, and
o liquid instruments (such as the Sanlam Money
Market Fund).
Capital risk is restricted as the fund will have no
exposure to:
o non-cumulative or non-redeemable (listed)
preference shares, or
o fixed-rate preference shares.
The fund return tracks short-term interest rate
movements – allowing investor protection against
interest rate exposure and ensuring preservation of
capital.
SAIF Characteristics
o Fund credit rating of AA-(zaf) from Fitch ratings,
(similar to that of the major banks).
o Investment in high-quality assets with credit risk to
major SA banks and institutions, subject to strict
diversity criteria as per CISCA requirements.
o Unit price is aimed at a constant value of 100c and
consequently there are no CGT implications.
Fund Information
INCOME FUND (“SAIF”)
o The return will be mainly in the form of tax-free
dividends, with a small portion of taxable interest
income.
o In addition, corporate investors will receive STC
credits (in accordance with current legislation).
o 48 hour liquidity, subject to provisions of deed.
o Monthly dividend distributions.
o Current fund size: R4.0bn.
Who should invest
o Investors seeking to increase their portfolios’
liquid holdings with a better after tax yield than a
money market fund.
o Sophisticated high net worth individuals who have
utilised their interest exemption who require a
regular, tax efficient income.
o Corporates in need of STC credits
o Investors seeking protection from equity and bond
market volatility.
Returns and Costs
SAIF yielded an average return of 8.86% for the
month of January 2009 (effective annualised rate).
This return is based on the A1 retail class charging a
1.45% annual service fee. The yield is net of this
annual service fee. The yield published in the press is
the average yield calculated over a 7-day rolling
period (after costs). The return currently comprises
70% tax-free dividend income and 30% taxable
interest income. Please note a more competitive fee
class offering enhanced yields is available for larger
investments.
Portfolio Manager
• Started his investment career in 1990
as an investment analyst at Sanlam
and was appointed as chief investment
analyst in 1994
• Became senior portfolio manager in
1994 and was appointed as Head:
Gensec Private Clients in 1999
• 2001: Appointed Managing Director of
Sanlam Private Investments
• 2003 to date: Managing Director of
Sanlam Collective Investments
TIENIE VAN DER MESCHT
B.Sc., MBA