WHY SHOULD I INVEST MY MONEY? 8

WHAT ARE THE DIFFERENT WAYS OF INVESTING? 10

WHAT ARE THE FACTORS TO CONSIDER WHEN INVESTING? 14

WHY INVEST IN THE MAURITIAN ECONOMY? 18

22 WHY USE AN ASSET MANAGER?

26 ABOUT AXIOM

28 WHY AXIOM?

32 INVESTMENT PLANS

C O N T

INVEST SMARTLY.

BUILD TOMORROW

TODAY.

Investment GuideYour

SHOULD I INVEST MY

1 Paul Samuelson (1915-2009): renowned American economist and winner of the Nobel Prize in economic science.

Years

8 9

WHAT ARE THE DIFFERENT WAYS TO INVEST?

INVESTMENT TYPES AND CHARACTERISTICS VARY, AND NOT ALL

INVESTMENTS ARE APPROPRIATE FOR

EVERY INVESTOR. DETERMINING YOUR

INVESTMENT PROFILE IS KEY TO MAPPING YOUR INVESTMENT FRONTIER.

10 11

WHAT ARE THE DIFFERENT WAYS TO INVEST?

2008, the price of gold increased more than threefold in value because investors viewed the commodity as a safe haven. In addition, commodities have traditionally performed inversely to the US dollar. They therefore have the potential to provide significant diversification benefits to your portfolio.

Please note that unlike stocks and bonds, commodities do not generate or distribute income.

e. Fixed Income (Bonds)

Raising debt is one possible method for a company to finance itself. A company can raise debt in one of the following ways:

• By taking a loan from a bank: the traditional approach;

• By issuing bonds: the more sophisticated and generally cheaper option.

A bond is a financial instrument whereby the borrower (the company) agrees to repay the lender (the bond buyer) his/her capital at a predetermined time, along with regular interest, also known as a ‘coupon’.

Fixed income investment is an essential element of all balanced portfolios given the fixed nature of its returns and the fact that it is perceived as more defensive than the equity class.

f. Equity (Stock)

In most cases, publicly listed companies issue shares to the general public through a specific event called an Initial Public Offering (IPO). These shares represent ownership of the company and also:

• Usually give the right to vote;

• Entitle its holder to dividends (when these are distributed by the company);

• Are listed and thus can be exchanged on the stock market.

The value of the company’s shares on the stock market is determined by:

• The performance of the company at a microeconomic level;

• The state of the economy at a macroeconomic level.

The equity asset class is one of the most volatile asset classes. It is in the client’s best interest to seek professional guidance before investing in equities.

a. Bank Savings and Deposit Accounts

The main difference between a savings account and a deposit account is liquidity.

Placing money on deposit locks in the investment amount for a specified time horizon, whereas a savings account provides the investor with daily liquidity.

b. Foreign Currency Exchange

An example of foreign currency investment is the purchase of a particular currency that you think will appreciate in time against your local currency. If you had bought USD 1,000 back in 1993 against the Mauritian rupee, it would be worth nearly twice that amount in rupees today. Unfortunately, the increasing sophistication of financial markets is making it more difficult to turn a profit with foreign currency exchange (FOREX)*.

This statement represent AXYS opinion on FOREX Investment

c. Property / Real Estate

Returns on real estate investments are derived from rental and/or capital appreciation upon disposal of the asset in the future. The biggest drawbacks to real estate investments are:

• Their illiquidity: you may not be able to sell your asset quickly at market price;

• Their high capital requirement, which means they are not within everyone’s reach;

• The fact that they are a dormant investment, as you usually monetise a big portion of the accrued return only upon disposal of the asset.

Bear in mind that the ‘forced selling’ of land or property, more often than not, benefits the acquirer. Investments of this type should generally be held over a multi-generational period.

This represent AXYS own views on Real Estate investment

d. Commodities

Commodities can be classified into three specific subgroups:

COMMODITIES

AGRICULTUREBASED

PRECIOUSMETALS

INDUSTRIALMETALS

While commodities’ prices are mainly cyclical in nature, precious metals tend to be negatively correlated with market sentiment. For example, after the financial crisis of X3.5

The price of gold increased

following the 2008 financial crisis12 13

WHAT ARE THE FACTORS TO CONSIDER WHEN INVESTING?

a. Your Investment Profile

First things first! What is your investment profile? What are your objectives, and how much risk are you willing to take on to achieve them? These are fundamental criteria to consider before investing. They will guide you towards a tailor-made investment strategy.

b. Liquidity

An asset is considered liquid if it can easily be disposed of, at fair value, in exchange for cash. Investments in non-liquid assets such as property or other alternative investments usually end up being sold at prices that do not necessarily reflect their true market value. Issues of this type negatively affect the performance of your portfolio and need to be managed accordingly.

c. “Don’t put all your eggs in the same basket”: Asset Diversification

For a portfolio to be efficient, it is important that the correlation between your different investments/asset classes remains low, so that a change in the value of one investment/asset class does not automatically lead to a similar change in the value of another asset class. This is the purpose of diversification.

Diversification is essential to reduce your investment correlation and thus minimise any downside risk that might affect your portfolio’s performance.

Diversification must be applied at multiple levels:

Risk-Averse Conservative Moderate ModeratelyAggressive

Aggressive VeryAggressive

Across Different Asset Classes

Across Sectors Across Companies

WHAT ARE THE FACTORS TO CONSIDER WHEN INVESTING?

14 15

Market volatility can be thought of as the market price of uncertainty: the higher the uncertainty, the higher the volatility. Volatility therefore increases during financial and political crises.

Different investment classes have historically displayed different levels of volatility. Therefore, being exposed to multiple levels of volatility is almost always better than being exposed to a single level of volatility.

Graph 2: Impact of volatility on the local equity market: Scenario based on the SEMTRI (1994-2015):

1 Year 5 Years 10 Years 20 Years

43.00%

24.62%

13.86% 12.82%

2.25%

Annualised Best

Annualised Worst

10.28%

-40

-30

-20

-10

0

10

20

30

40

50

60

-33.58%

59.07%

Short-term investments expose your portfolio to numerous risks (market events, cyclicality, interest rate risk, currency risk, political risk and more…).

The impact of volatility is considerably reduced if you hold your investment over a long period of time.

Table 1: Volatility and diversification across stocks and bonds portfolios explained: Scenario based on the Mauritius Stock Market Total Return* Index (SEMTRI) and Government 5Yr T Bills

*All dividends are reinvested **Annualised return over 16 years from 1999 to 2015

16 17

?

The Mauritian economy has, over the years, demonstrated strong resilience. Over less than half a century, it has managed to transform from a mono-agricultural economy into one reliant on manufacturing, tourism and financial services. As a recognised frontier market, Mauritius has a large and well-developed financial system and an ever-growing offshore sector. It increasingly attracts foreign funds, thus contributing to its expansion. In light of the improving sectorial and geographical diversification of local firms, as well as the enhanced international appeal of Mauritian capital markets, we believe that Mauritian equities represent an attractive medium to long-term investment opportunity.

Since 1988, the SEMTRI has, grown at a faster pace in USD terms than major world equity total return indices (with dividends reinvested) including the EURO STOXX 50, the JSE, S&P and the FTSE 100.

Given Mauritius’ legal stability and its ongoing business-driven reforms, we are of the opinion that the Mauritian market has much more to deliver in terms of growth going forward.

Table 2: Total return world indices vs SEMTRI in USD terms since 1989:

WHY INVEST IN THE MAURITIAN ECONOMY?

18 19

c. Local Companies’ African Expansion

As the Mauritian economy matured and underwent its industrialisation phase, domestic economic opportunities inevitably grew scarcer. In addition, given the inherent geographic and demographic constraints of the island, it was only a matter of time before the local business community began to eye investment opportunities elsewhere in the region.

The emergence of Africa as a privileged investment destination over the past decade has crystallised local corporations’ desire to explore new horizons.

This has contributed to a much more integrated environment for Mauritian companies. Their performance is now inextricably linked to that of the African continent. As the scope of their foreign activities continues to increase, it is more likely to positively contribute to their growth.

INVEST SMARTLY AND LET AXIOM

TAKE ADVANTAGE OF THE BEST

OF MAURITIAN ECONOMIC GROWTH

ON YOUR BEHALF.

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ManagerAsset What is the role of your asset manager?

How can they be useful to you? How can they bring you closer to your investment objectives?

WHY USE AN ASSET MANAGER?

WHY USE AN ASSET MANAGER?

22 23

a. Good Diversification

Asset managers have mastered the art of diversifying your investments according to your risk profile so as to bring the overall risk of your portfolio down to a minimum. When building your equity portfolio, the concept of diversification has to be applied at multiple levels:

• Across sectors;

• Across companies within each sectors;

• Across market capitalisations.

b. Market Knowledge

“An investment in knowledge pays the best interest.”2

Asset managers have, over time, acquired a sound and solid understanding of the marketplace. Most of them have experienced at least one entire economic cycle.

STEP 1 Full Blown

Crisis

STEP 2 Recovery

STEP 4 Contractionary

Period

STEP 3 Expansionary

Stage

2. Benjamin Franklin (1706-1790): American politician and one of the founding fathers of the United States.

“Market timing is unappealing to long-term investors. As in hunting deer or fishing for rainbow trout, investors have learned the importance of ‘being there’ and using patient persistence - so they are there when opportunity knocks.”3

Asset managers tend to better understand the cycle of stock market prices. Therefore, they are well placed to turn expansion and correction phases to their advantage.

3. Charles Ellis: Leading American investment consultant and founder of Greenwich Associates.

This helps asset managers to better predict what is coming and consequently take appropriate actions that are aligned with your best interests.

c. Better Access to Information

Individuals do not allocate enough of their time to analysing and interpreting micro and macro-economic information. Asset management companies typically have an entire department dedicated to economic analysis and research. These teams provide asset managers with in-depth analysis and recommendations. They also regularly meet with the management of companies they have invested in to ensure that these are performing as expected, and that they are taking the right steps to continue to expand and grow over the long term.

This first-hand access to quality intelligence provides investment managers with an information edge and allows them to make the sharpest of investment decisions.

d. Active Management

The skills and attributes discussed above allow asset managers to actively manage your portfolio. It allows them to be proactive and quickly react to various market events that might negatively affect your portfolio and thus mitigate the impact of a market downturn.

This exclusive management ability can make a significant difference, over the long term, to your portfolio returns.

Graph 3: Usual investor behavior based on market performance over time:

Buying low and selling high is every investor’s dream. However, in the majority of cases, investors buy high and sell low. The reason for this is that they usually buy stocks when everybody is buying stocks and sell stocks when everyone is selling stocks.

Here are three tips to keep in mind:

If you hear about the “buy of the century” from your grandma or in the local newspaper, it is too late to make the trade.

Picking the right stock is only half of the work. Paying the right price for it is also important.

Do not react to short-term volatility. Don’t be emotional and think medium to long-term.

1

2

3

Time

OPTIMISM

OPTIMISM

EXCITEMENT

THRILLEUPHORIA ANXIETY

DENIAL

FEAR

DESPERATION

PANIC

CAPITULATION

DESPONDENCY DEPRESSION

HOPE

RELIEF

POINT OF MAXIMUM FINANCIAL OPPORTUNITY

“Wow, this stock is really good. I should definitely buy this.”

“What have I done?!?”*

“Ok then, maybe the markets just aren’t for me.”*

POINT OF MAXIMUM FINANCIAL RISK

*Short term driven behaviour

*Sell the stocks

*REPEAT

24 25

• Fund incorporated in Mauritius;

• Invests only in equities listed in Mauritius.

Objectives:

• To become the best local equity fund;

• To help investors meet their long-term, absolute return objectives;

• To provide its unit holders with the highest possible risk-adjusted return;

• Reinvest all dividends to maximise long term growth.

Other benefits:

• Helps you demistify basic financial concepts;

• Seeks to familiarise the Mauritian public with the investment world.

Fund Strategy:

The fund adopts a blended investment strategy which consists of investment in both growth4 and value5 stocks within the medium to large capitalisation segments. AXIOM’s approach is to favour stocks with sound fundamentals, strong management and sustainable, growth-driven strategies.

AXIOM’s investment strategy is characterised by rigour and commitment, irrespective of the market climate and other external factors.

4. Growth stock: Shares in a company whose earnings are expected to grow at an above-average rate relative to the market .5. A stock that tends to trade at a lower price relative to its fundamentals (i.e. dividends, earnings, sales, etc.) and is therefore considered undervalued by a value investor.

“Never deviate from your strategy if you want results.”Investment Philosophy:

We believe that long-term expectations as opposed to short-term speculation provide the best opportunities for investment success.

It takes superior performance in bad times to prove that the gains accumulated in good times were earned through skill and not sheer luck. “If you avoid the losers, the winners will take care of themselves.”6

AXIOM believes that “a superior record is best built through consistent returns rather than through a mix of brilliant successes and dismal failures.”7

Management quality, the sustainability of the firm’s business model and its competitive standing are the key factors that we consider when making an investment decision.

6. Warren Buffet: Philanthropist, star investor and third richest person in the world.7. Howard Marks: American Investor and Oaktree Capital Management founder.

Risk-Adjusted, Return-Oriented

Long-Term Approach Fundamentals FirstConsistency

AXIOM

ABOUT AXIOM

AB

OU

T

26 27

b. Performance-Driven

“Good performance is what makes a good fund, but risk-adjusted performance is in fact what the best funds are made of.”8

We combine skills, fund management experience, financial and investment knowledge, access to information, risk management, and diversification expertise. Most importantly, AXIOM has the same ambitions as you do for growth.

“AXIOM has the same ambition and objective as you: to achieve growth.”

Graph 4: Comparison of a MUR 1,000,000 investment in a local bank savings account vs inflation (CPI) vs SEMDEX vs the SEMTRI since June 1999:

0

300

600

900

1200

1500

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

MUR(M)

The above graph shows that if you had put your money into a bank savings accounts back in 1999, it would be worth only a little more today. The reason for this is that on average, the cost of living (inflation) over those years has gone up nearly equivalently.

8. Terry Smith: Star Fund Manager at Fundsmith Equity Fund.

WHY AXIOM?

+14.04%

The SEMTRI has had an annualised return of

since 1999

A better option, over that time period, would have been to invest in the local stock market. Indeed, since 1999, the SEMTRI has returned 14.04% on an annualised basis, representing an important premium over the savings rate and any other fixed income investments denominated in the local currency.

“Equity is less risky than bonds over the long term.”9

Mr. Buffet is suggesting that you overlook the short-term volatility in equity markets and focus instead on long-term performance. As seen in graph 4 to the left, the SEMTRI has had good and not so good years but has on average returned 14.04% on a annualised basis since 1999.

Did you know that if you invested MUR 1,000,000 on the local stock market back in 1989 it would have been worth around MUR 16,000,000 today?

What if you reinvested all dividends received? Well, it would have been worth around MUR 58,000,000 today!

AXIOM has consistently outperformed its comparative benchmark, the SEMTRI, since its inception on 1st August 2014.

9. Warren Buffet

WHY AXIOM?

Investment Annualised Return:

Bank Savings Rate

Inflation

SEMDEX

SEMTRI

28 29

7.69%

Graph 5: Comparative performances of an investment of MUR 1,000,000 made in AXIOM vs the SEMTRI since the 1st of August 2014:

SEMTRIAXIOM

MUR(M)

8.5

9

9.5

10

10.5

Aug-14 Oct-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16

As the 31st of August 2016, AXIOM returned 7.69% above the SEMTRI.9 Given our underpinning investment philosophy and the historically strong performance of the SEMTRI, AXIOM is expected to provide attractive returns to its investors over time.

c. Competitive Fees to Enhance Shareholders’ Returns

In line with AXIOM’s ambition to become a market-leading fund, stockbroking fees have been reduced to very competitive levels and all other related investment fees have been capped. These include administration, management, legal, accounting and structuring fees.

This fee structure will:

• Lower the impact on performance;

• Contribute towards maximising your investment returns.

9. Past performances are not indicative of future results. Please refer to factsheets for latest figures.

AXIOM is managed by AXYS Investment Partners Ltd (AIP), a Mauritius-based asset management company offering diverse investment solutions to both private and institutional investors. AIP origins date back to 1992.

AIP is licensed by the FSC (Mauritian Financial Services Commission) as an Investment Advisor (IX 13000038), CIS Manager (CM13000024) and Distributor of Financial Products (DF13000020).

Backed by a dynamic team of professionals, who together have more than 80 years of investment experience, AIP has established itself as one of the leading independent asset managers in Mauritius. AIP has, over the years, built a strong understanding of the local equity market. The fact that they constantly outperform the SEMTRI best demonstrates this expertise.

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This plan consists of contributing a fixed amount of money every month. The longer you contribute, the more you will benefit.

Please bear in mind that no money is locked in for any period of time. You can withdraw it at any time.

This plan allows you to:

• Prepare for your child’s education;

• Prepare for your own retirement;

• Put money aside for any other needs or projects that you may have.

AXIOM aims to provide you with the ability to build a better future.

For example, the monthly contribution of someone who enters the plan aged 50 is likely to be eight times higher than the monthly contribution of someone who enters the plan aged 30, if both are to have accumulated the same amount by the time they reach 60.

Table 4: Projected monthly contributions of two investors over 30 and 10 years if they are to end up with the same investment value at the end of the term:

INVESTORS PROFILES

Rs.40.7K / MonthRs.5K / Month

30 Years’Duration

10 Years’Duration

RESULTS

Rs.7.5M

The simulator on our website at www.axiom.mu can help you establish the monthly contribution you would need to meet your investment objectives. Projections are based on three annualised growth rate assumptions: 6%, 8% and 10%. They

should not be taken for granted as future market expansion rates are not predictable.

32 33

Rs.3,380KRs.686K

30 Years’Duration

10 Years’Duration

RESULTS

8%Annualised

Return

Rs.7.5M

The simulator on our website at www.axiom.mu can help you obtain an estimation of the investment you need to make today in order to meet your long term objectives..

INVESTMENT PLANS

Projections are based on three annualised growth rate assumptions: 6%, 8% and 10%. They should not be taken for granted as future market expansion rates are not predictable.

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AXIOM (AXYS Mauritian Equity Fund Ltd) has been given FSC approval on the 30th May 2014.

Licence Number CI14000058

DISCLAIMERThe information contained in this e-mail message, report, communication, letter, publication, and any attachment thereto, is strictly for information purposes only and is confidential and may not be disclosed without our express permission. It does not constitute an offer, or a solicitation of an offer, to purchase or sell any investment or other specific product by Axys Investment Partners Ltd. Although all information and opinions stated in this document are based on sources deemed to be reliable and in good faith, no representation or warranty, expressed or implied, is made or should be construed as to its accuracy and completeness. All information and views stated therein may be changed without any notification. The reader will bear in mind that certain services and products are subject to legal limitations and cannot be proposed on an unrestricted basis. Investors are reminded that past performance is not an indication of future performance. The price, value or income of the investment can go up or down. You are advised to consult your professional advisor before taking any decision or making an investment. In certain circumstances a participant’s right to redeem his shares may be suspended. Axys Investment Partners Ltd disclaims all liability as regards any direct or consequential loss arising from any use of this message or the information contained therein.

For all information regarding Risk and Fees please refer to the prospectus and the factsheet available at:

AXYS Investment Partners Ltd.

by Investment Partners

6th Floor, Dias Pier Building, Caudan Waterfront, Caudan,Port Louis, 11307, MauritiusT: (230) 405 4000, F: (230) 211 9833Email: info@axiom.muwww.axiom.mu

AN AXIOM: SO EVIDENT THAT IT CAN ONLY BE TRUE.