Arisaig Investment Letter

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October 2012

Arisaig Partners is an independent investment management company founded in 1996. Our focus is on dominant consumer sector businesses in emerging markets. We run an Asia Consumer Fund, an Africa Consumer Fund and a Latin America Consumer Fund. In addition to our head office in Singapore, we have research offices in Hong Kong, Mumbai, Cape Town, Rio de Janeiro and the UK. Performance to 31 October 2012 (%) NAV (USD) Arisaig Asia Consumer Fund1 Arisaig Africa Consumer Fund Arisaig Latam Consumer Fund 1

49.20 18.15 28.51

Size 15 yr 10 yr (USDm) 2,916.3 +747.1 +444.2 643.9 424.9

5 yr +47.0 +32.9

3 yr +98.8 +71.9

2 yr +29.4 +25.1

1 yr +23.2 +36.9 +27.8

6 mth +9.1 +17.4 +5.2

3 mth +11.8 +10.2 +4.9

1 mth +3.0 +2.8 +2.0

YTD

Since Annualised Launch Return +13.4 +8.7 +12.7

+29.7 +633.6 +31.4 +63.1 +30.7 +24.6

Reflects the performance of Arisaig Asian Small Companies Fund from 31.12.96 to 21.01.00, Arisaig Asia Fund from 22.01.00 to 31.03.10 and thereafter the performance of AACF

October Diary Highlights   The NAVs of the Arisaig Asia, Africa and Latin America Consumer Funds increased respectively by 3.0%, 2.8% and 2.0% in October. Under Asia we report on the continuing strong earnings growth being delivered by our holdings and on a two week investment trip to Korea, Japan and China where we met Uni-President (strong recovery intact), Want Want (one of our best businesses), Wumart (problem child bouncing back), Sun Art (a case of the strong getting stronger) and LG H&H (Mr Cha risk). We also review our meetings with Jollibee (break-even in China coming) and Pantaloon (which we expect to emerge as one of our largest holdings). Jonathan Clissold reports in our Africa section on his recent trip to Angola (Luanda is one of the world’s most expensive cities) hosted by our pan-African retailer Shoprite, and on a mixed set of corporate results. We devote our Latam section to Peru, the continent’s fastest growing country, and in particular food and FMCG business Alicorp and our new holding, the recently listed retailer, InRetail. In our ESG section Rebecca Lewis describes early findings from her pioneering efforts to develop a Sustainability Profit and Loss account for each of our holdings.

  

What we look for in our stocks  Market leadership – dominant companies tend to do better;  Scalability – large target markets;  Strong “moats” – brands, distribution, innovation;  Low capital intensity – high ROCE;  Predictability – compounding growth;  Access – management who welcome our involvement.

What our investors can expect from us  Alignment of interests – capped funds, no segregated portfolios, co-investment;  Transparency – holdings booklets, monthly portfolio summaries, copies of research reports;  Coverage – 17 analysts; five research offices; 150 target stocks;  Minimal trading – active management destroys value;  Focus – consumer companies tend to out-perform, so we won’t be doing anything else.

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Arisaig Diary

We are a CarbonNeutral® organisation and a signatory of the UN’s Principles of Responsible Investment.

October 2012

Fund Details

Geographic allocation (%) AACF 36.7 31.3 9.0 8.2 5.4 4.4 4.0 1.5 AFCF 30.1 25.7 12.7 9.5 6.6 6.1 3.7 0.4 ALCF 35.1 28.3 11.9 9.9 5.4 4.0 1.4

India China / Hong Kong Indonesia Philippines Pakistan Vietnam Korea Thailand

Nigeria South Africa Kenya Turkey Ghana Morocco Rwanda Ivory Coast

Brazil Mexico Chile Peru Central America Colombia Ecuador

Net cash Other net assets/(liabilities)

0.9 (1.4) 100

Net cash Other net assets/(liabilities)

2.3 2.9 100

Net cash Other net assets/(liabilities)

3.0 1.0 100

Sector allocation (%) AACF 40.7 25.2 21.4 13.2 AFCF 44.5 10.5 26.5 9.2 4.1 ALCF 30.0 11.0 55.0 -

Valuations
Dec 12/Mar 13 Dec 12/Mar 13 Dec 12/Aug 13

Food & Beverage Fast Moving Consumer Goods Retail Fast Food Services Portfolio concentration

EV/Sales (x) PER weighted...
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