Model Portfolio Managers

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1 Model Portfolio Managers

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3 As a financial adviser, you know your clients and you are equipped to advise on and implement the best solution for them. By using your investment expertise to select and/or create Model Portfolios, you take financial management to the next level - managing your entire client base at the click of a button. Anyone who is registered with the Financial Services Board (FSB) as a Category II FSP can establish and manage a Model Portfolio. Contact STANLIB Linked Investments for more details on the process to add your Model Portfolios to our platform. If you are a Category I FSP you can partner with a Category II FSP who has been approved by STANLIB Wealth Management Limited to create and manage a Model Portfolio for you. STANLIB Linked Investments has partnered with a number of Category II FSPs (or Model Porfolio Managers) to bring you a range of Model Portfolios, standard and bespoke, to meet all your requirements. Example of Model Portfolios ADVISER A (Category I FSP) ADVISER B (Category I FSP) Model Portfolio Manager A (Category I I FSP) Model Portfolio Manager B (Category I I FSP) Model A Model B PRODUCT WRAPPERS Classic Investment Plan, Classic Retirement Annuity Fund, Classic Preservation Plans and Classic Linked Life Annuity Model C 3

4 Model Portfolio Managers 05 Amity Wealth 06 Fundhouse 07 MitonOptimal 08 Sasfin 09 Seed Investments 10 STANLIB Multi-Manager 11 Trivium Capital 4

5 Amity Wealth Overview of Amity Wealth Amity Wealth is an authorised Category II Financial Services Provider (FSP 29661) and an independent, privately owned investment management and support services company that provides Model Portfolio management services and a comprehensive range of other support services to independent financial advisers. Directors: Ben Rossouw (Non-Executive Chairman), Marius van der Merwe (Chief Executive Officer), Anton Swanepoel (Executive Director) and Chris Potgieter (Non-Executive Director) Shareholders: Anton Swanepoel [Trust], Marius van der Merwe [Trust], Fanie Wasserman [Subota (Pty) Ltd] and Mari Brits Amity uses the Amity Fund of Fund structure as the core 25% allocation to your Model Portfolios. The remaining 75% of the portfolio is allocated to a select number of fund managers who specialise in multi-asset funds in the Regulation 28 category and top managers in the equity space. In addition to designing and managing Model Portfolios, we provide the following services: Training (CPD accredited) Compliance support Fund feedback Client reporting Legal support Investment approach We believe that, although every client has unique objectives, the primary common objective of any medium- to long-term investment should be to outperform inflation. Therefore, we believe that our fund solutions should have objectives defined in real terms over very specific minimum investment periods. Research has taught us that asset allocation is a large contributor to long-term portfolio returns and key to good investment decision making. As a result our asset management approach is based on strategic asset allocation and valuation of asset classes. We believe that by combining select asset managers with specific styles, views and skills, portfolio risks can be reduced and net returns enhanced. Fund managers are selected based on a combination of qualitative and quantitative aspects and asset allocation is assessed in conjunction with fundamental asset class valuations. We also believe that risk should be quantified so that you can manage your clients expectations more effectively. We manage risk by using asset class diversification, fund manager diversification and finally, the incorporation of asset class valuation based on market expectations. Model Portfolio offering The Model Portfolios will be designed around the Amity Fund of Funds, based on the objectives of your FSP and your clients. The Amity Funds performances have been very competitive over the past five years. Our fee in the Amity Fund of Funds is included in the Total Expense Ratios (TERs) as reflected in the Amity Fund Fact Sheets from time to time. Our fee amounts to 0.2% plus VAT per annum on the total value of the Model Portfolio. Fund Fact Sheets Download from Anton Swanepoel M T E [email protected] 5

6 Fundhouse Overview of Fundhouse Fundhouse is a leading investment adviser specialising in fund research, ratings and portfolio construction services. We help clients manage investments on behalf of the end investor. Fundhouse was founded in 2007 by professionals from the investment management industry. We currently operate from offices in South Africa and the United Kingdom, where we cover the local and global fund industry first hand. Our business is 100% independent and owner managed which means we can offer objective advice and services that are in the best interests of our clients. Fundhouse is an authorised Financial Services Provider (FSP 43960), with both Category I and Category II (Discretionary Services) licences. We bring a comprehensive range of investment expertise to your practice, including: Comprehensive, independent fund research. This forms the basis of our service and allows us to make informed decisions with our clients. We currently cover around 300 local and offshore unit trust funds, with each fund taking three to four months to evaluate Portfolio construction expertise. We have been assisting clients in the investment industry build portfolio construction processes into their businesses since 2001 We improve governance and lower business risk through this service, including detailed Investment Policy documentation to assist with FAIS compliance We manage the Model Portfolios on a discretionary basis using our own FAIS Category II licence (FSP 43960) We treat you on a custom basis, taking into account your unique preferences and advice process. This enables us to deliver Model Portfolios that are a direct extension of your own services We provide insightful analysis and reporting Investment approach We build portfolios using a combination of skills, experience and insight. This includes: The best combination of top-rated active and passive funds. Our fund universe is currently >300 (SA and offshore). We have no restrictions to or biases in the funds we recommend Qualitative fund research provides insight into the unique investment style of each manager Quantitative inputs to provide additional guidance to portfolio construction We use your, the adviser s, preferences as a starting point, to minimise unnecessary churn for your clients We take high conviction, long-term views on funds. This minimises the need to switch and also provides the opportunity for managers to perform Clients always receive our best view, which is independent, objective and supported by evidence. Model Portfolio offering We offer a bespoke service to you. Model portfolios are designed and managed according to investment guidelines developed in conjunction with you. Ian Jones T E [email protected] W Our fees range from 0.125% to 0.20% (excl. VAT) per annum depending on the total value of assets in the Model Portfolio. The fees decline as the asset size in the Model Portfolio increases. 6

7 MitonOptimal Overview of MitonOptimal The MitonOptimal Group is an independent owner-managed investment advisory and fund management business. We have helped financial planners and their clients achieve their investment goals successfully since 2002 and now have over 50 professional staff located in South Africa, Guernsey, Singapore and the Isle of Man. In South Africa we are regulated as a Category I and Category II Discretionary Financial Services Provider (FSP and 734), to act as an investment manager to Collective Investment Schemes and other investment mandates. All of our offices are fully licenced and regulated within their respective jurisdictions. We apply these competencies across two distinct service offerings, Advisory Services and Fund Management. As part of our Advisory Services we provide to financial planners. For financial planners who make use of our, we offer the following: We construct, monitor, manage and review discretionary and compulsory Model Portfolios We research asset classes and implement strategic and tactical asset allocation decisions as required We research and select active and passive fund managers and products after conducting a full due diligence We provide regular, comprehensive and customised reporting to the financial planners and their clients We provide full administrative support in the set-up, implementation and ongoing management of the portfolios We co-brand monthly portfolio sheets produced per portfolio We co-brand quarterly reports offering market, manager and portfolio commentary Where appropriate, we offer regular meetings with portfolio managers Where appropriate, we offer supervisory services for financial planners who wish to get a FSP Category II investment management licence Investment approach Our investment philosophy is based on the following key principles: Your clients needs should define the investment strategy Risk and return are related Diversification is a key way to reduce risk Time in the market is more important than timing Costs can erode returns substantially Getting emotional about investments is dangerous Never invest in anything you do not understand Our investment approach is built on these principles and the view that asset allocation is the key factor to manage when investing. Through this we have built core competencies in asset class, asset manager research and selection, portfolio construction and active portfolio management. We now have an extensive track record in making strategic and tactical asset allocation decisions, selecting appropriate asset managers (both active and passive) and managing portfolios with clearly defined goals and volatility bands. Underpinning our investment approach is the belief that consistent communication to clients is critical in achieving successful investment outcomes. Model Portfolio offering Managed Model Portfolios These are a range of multi-asset house view Model Portfolios that are available to IFA businesses with AUM under R250 million. For these IFAs, MitonOptimal also offers assistance with investment advice and can sign off on the Record of Advice, if required Tailored Model Portfolios These are customised portfolios, often developed in partnership with the IFA, and only made available to the clients of that IFA. This service is made available to IFAs with AUM greater than R250 million Bespoke Model Portfolios For IFA businesses that wish to offer very high net worth clients a personalised investment portfolio Portfolio sheets Co-branded and customised portfolio sheets are prepared according to the requirements of the IFA. Managed Model Portfolio Service Starting at 0.25% (excl. VAT) depending on required services Tailored Model Portfolio Service Starting at 0.25% (excl. VAT) on a reducing sliding scale based on assets Bespoke Model Portfolios Fees negotiated according to size and required services T E [email protected] 7

8 Sasfin Overview of Sasfin Bank Sasfin Holdings was founded in Johannesburg in 1951 by Sydney Sassoon, father of the current CEO Roland Sassoon, as the South African offshoot of a family textile business dating back to the Ottoman Empire. Roland joined his father in the family business at the age of 17 years old. After operating successfully for more than a decade the business was challenged in the mid-1960s, following governmentimposed textile import protection measures. This prompted the Sassoon family to pursue the trade financing opportunities they had identified as importers. The business successfully evolved from textiles to a small-scale trade and debtor financing company, growing steadily in stature and leading to Sasfin listing on the Johannesburg Stock Exchange in A major development phase came with the granting of a banking licence. This enabled Sasfin to raise capital through direct deposits and saw the acquisition of the reputable stockbroking firm Frankel Pollak, established in 1890 now known as Sasfin Securities, which is the cornerstone from which our asset management business was created. Today Sasfin Wealth manages in excess of R80 billion of private client and institutional money and operates as an independent and diversified banking, financial services and asset management group. For shareholder information please go to our website. Sasfin provides customised model portfolio management solutions. Our clients are Financial Services Providers looking to partner with astute investment professionals with the aim of enhancing their investment process while simplifying their clients investment experience. By leveraging off the research capability, knowledge and intellect of a well-established and experienced investment team, our clients gain confidence in partnering with an asset manager dedicated to creating and implementing client centric investment solutions. Investment approach We believe that asset allocation is the single largest contributor to invest returns, while fees detract from investment performance over time. To this end, we adopt a building block approach, managed on a core-satellite basis, where passive, low cost index funds are utilised to contain portfolio costs, while active managers are added to generate alpha. Model Portfolios offering As a provider of customised investment solutions, we refute a one size fits all approach, as such; we work with our clients, creating investment solutions that are tailored to meet their clients investment objectives. Steven Amey T E [email protected] 0.25% per annum, excluding VAT. 8

9 Seed Investments Overview of Seed Investments Seed Investment Consultants was formed in 2007 by the CEO, Ian de Lange, and Vincent Heys and is a Category II Financial Services Provider. Management is the majority shareholder with a significant minority stake held by a private investment company. Seed employs, directly and through controlled subsidiaries, 12 investment and business professionals and three support staff. Group assets under management and administration is R8.2 billion. Seed manages Collective Investment Schemes, Segregated Share Portfolios and Model Portfolios. Model Portfolio management forms an integral part of Seed s multi-management investment approach. Generally, Model Portfolio management is divided into two categories namely Seed Portfolios and Partner Bespoke Portfolios. At the heart of Seed is the desire to provide solutions that, within mandate constraints: protect investor capital from permanent destruction of capital; buy assets when valuations are attractive for long-term investment; and where possible include all asset classes and both locally and globally. Specific to Model Portfolio management, the following general characteristics will be applied: Thorough initial and ongoing quantitative and qualitative manager and fund research Mandate construction including, asset allocation, fund optimisation, alpha and beta allocation, target returns, risk budgets and appropriate benchmarking Subject to mandate guidelines portfolios are optimised for low manager and fund correlations Bias is given to funds and managers that have high Sortino and Omega ratios and those that have demonstrated capital protection during negative market conditions Model Portfolios will have no fewer than three underlying funds and a maximum of six funds allocated at any one time Maximum exposure to a single management house is set at 40% and to a single fund at 30% Where possible, managers and funds selected will be given maximum asset allocation freedom Manager and fund selection is of a Strategic Long-term Allocation basis Tactical Asset Allocation will be applied when Seed believes asset class pricing is at extreme levels Model Portfolio offering Initially the following Regulation 28 compliant Model Portfolios will be available on the STANLIB Linked Investments Platform: Seed Cautious Income and Growth Portfolio Seed Balanced Growth and Income Portfolio Seed High Growth Portfolio Hereford Conservative Portfolio Hereford Moderate Portfolio Hereford Balanced Portfolio Hereford Aggressive Portfolio of the Model Portfolio management is divided into two categories: Seed Portfolios at 0.25% per annum (excl. VAT) and Partner Bespoke Portfolios at up to 0.50% per annum (excl. VAT) T or /4 E [email protected] W 9

10 STANLIB Multi-Manager Overview of STANLIB Multi-Manager STANLIB Multi-Manager is the centre of excellence for multi-managed products and services within STANLIB, a wholly owned subsidiary of Liberty Group. With assets under management of R60 billion, we provide solutions to a range of clients, including Model Portfolios to financial advisers. Investment approach Six-step investment process STANLIB Multi-Manager applies a disciplined, researchdriven approach to our investment process. This allows investors to benefit from more consistent, long-term performance with lower levels of risk. Investment risk management is a fundamental and integral component of our investment philosophy and process and is therefore approached holistically and permeates through every step of our investment process, and not as a distinct component or an after-thought. The investment process comprises six steps, each of which has a fully integrated risk management framework: Portfolio Review Portfolio Management Product Specifii cation Portfolio Construction Asset Allocation Manager Research Investing in the STANLIB Multi-Manager Model Portfolios provides access to model solutions, fact sheets (with white-labelling as an option), brochures, solution commentary, report-backs and end-client engagements. Our services are flexible and can be tailored to meet your unique requirements. Model Portfolio offering Our default range comprises the following four Model Portfolios: STANLIB Multi-Manager Wealth Cash/Income Solution - with return objective of Cash + 1% STANLIB Multi-Manager Wealth Preserver Solution - with return objective of CPI + 3% STANLIB Multi-Manager Wealth Enhancer Solution - with return objective of CPI + 5% STANLIB Multi-Manager Wealth Accumulator Solution - with return objective of CPI + 7% We also create bespoke Model Portfolios for our clients. The underlying funds in our Model Portfolios are selected using a rigorous investment process to create a compelling Model Portfolio range. At 0.2% per annum (excluding the underlying fund fees and VAT), our range provides cost-effective access to reduced manager risk, improved diversification and professional service. Fund Fact Sheets Renate Potgieter T E [email protected] Albert Louw T E [email protected] Download our default range Model Portfolio fact sheets from (Advisers section). 10

11 Trivium Capital Overview of Trivium Capital At Trivium Capital we believe in the value of independent financial advice. We understand that the legislative environment and investment industry is complex. The pace of change makes it a challenge to focus on running a business that is clientcentric, while staying on top of the more technical and administratively cumbersome aspects of managing an investment capability. Combine this with the fact that there are more than registered Collective Investment Schemes to choose from in South Africa, complicated pricing models and ever-changing markets and the task of providing a high quality portfolio construction and management process is even more daunting. Through our customised portfolio construction and consulting services, we do the investment research, ongoing investment reporting, portfolio measurement and operational administration for you. This increases the time available to you to spend with your clients, reduces risk within your business and minimises operational challenges for your staff. The key benefit for you is the ability to offer a FAIS-compliant investment process as well as a range of regulatory-compliant portfolios. We develop local and offshore product structures that will enable you to offer your clients cost effective and tax-efficient investment options. Investment approach We harness our quantitative and qualitative skills to create packaged solutions for your needs. Apart from partnering with you to provide investment advice and operationally implementing the solutions, we capture and record our investment insights and processes in a disciplined way. This provides you with all the reporting and updates that you need to satisfy your regulatory, client and business needs. Model Portfolio offering We do not have a set range of portfolios but focus on creating bespoke Model Portfolios for you and your clients. Below R250 million Total consulting fee of 0.30% (excl. VAT) R250 million to R500 million Total consulting fee of 0.25% (excl. VAT) R500 million plus Total consulting fee of 0.20% (excl. VAT) T E [email protected] W 11

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13 Disclaimer As neither STANLIB Wealth Management Limited nor its representatives did a full needs analysis in respect of a particular investor, the investor understands that there may be limitations on the appropriateness of any information in this document with regard to the investor s unique objectives, financial situation and particular needs. The information and content of this document are intended to be for information purposes only and STANLIB does not guarantee the suitability or potential value of any information contained herein. STANLIB Wealth Management Limited does not expressly or by implication propose that the products or services offered in this document are appropriate to the particular investment objectives or needs of any existing or prospective client. Potential investors are advised to seek independent advice from an authorised financial adviser in this regard. STANLIB Wealth Management Limited (Reg. No. 1996/005412/06) is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 26/10/590) Compliance Number: 17 Melrose Boulevard Melrose Arch 2196 PO Box 203 Melrose Arch 2076 T (SA only) T +27 (0) E [email protected] W stanlib.com GPS coordinates S , E