FINANCIALLY TALKING CONTENTS JUNE 2018 A FOCUS ON THE FUTURE ELIZE BOTHA STANDING OUT FOR THE RIGHT REASONS IZAK ODENDAAL

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1 FINANCIALLY TALKING JUNE 2018 CONTENTS A FOCUS ON THE FUTURE ELIZE BOTHA STANDING OUT FOR THE RIGHT REASONS IZAK ODENDAAL GAINING OUTPERFORMANCE WITH ESG FRANK SIBIYA WHAT S HOLDING MILLENNIALS BACK FROM REACHING FINANCIAL FREEDOM ELIZE BOTHA FIVE STEPS TO BEING INVESTMENT-SAVVY NEWLYWEDS ANNUAL SERVICE FEE REDUCTIONS IN SOME OLD MUTUAL UNIT TRUST FUNDS DO S & DON TS FOR MANAGING YOUR SOCIAL MEDIA REPUTATION STAY UPDATED

2 A FOCUS ON THE FUTURE ELIZE BOTHA MANAGING DIRECTOR: OLD MUTUAL UNIT TRUSTS Surely we have a responsibility to leave for future generations a planet that is healthy and habitable by all species. Sir David Attenborough The month of June is significant in South Africa in that it is about a focus on our future the Youth and the Environment. Youth Day 16 June, has been officially commemorated since the dawn of South African democracy with the uprising of students in As one of the key contributors to our eventual democracy in 1994, the significance of the voice of our youth cannot be overstated. Global surveys on millennials indicate that this is the most educated generation. These findings were corroborated when we recently surveyed 400 South African millennials in the Old Mutual Generation Y and Z Savings and Investment Research Survey, with one in three working millennials holding a bachelor s degree. The key insights our research uncovered into this emerging market, highlight the great opportunity for economic growth and sustainability that exists through a collaborative approach to educating and engaging with them. On page 7, we look at what drives this generation, what their aspirations, goals and most importantly, their attitude towards savings and investments are that millennial investors are twice as likely as the overall investor population to invest in companies targeting social or environmental goals. Despite fears that investors compromise performance for ESG, a study by the University of Oxford and Arabesque (2015) found that for companies, strong sustainability practices have a positive influence on investment performance. On page 5, Frank Sibiya, Portfolio Manager at Customised Solutions, looks at how ESG factors are used to determine the investment potential of a company. Old Mutual Investment Group is a leader when it comes to Responsible Investing in South Africa. Our business is an active steward of capital through the driving of low-carbon, resource-efficient and financially inclusive outcomes and ensures that good governance is an absolute necessity for long-term performance. This is why we re so proud that we have recently been named as Best Managed Company in the Financial Services Sector and Best Managed Company of the Year at the Top 500 Awards The Youth and the Environment are specifically recognised in the United Nations 2030 Agenda for Sustainable Development. Young people are recognised as agents of change, entrusted with fulfilling their own potential and ensuring a world fit for future generations. World Environment Day has been celebrated on 5 June every year since 1974, to encourage worldwide awareness and action for the protection of our environment. Millennials are far more likely to consider environmental, social, and governance (ESG) factors when making investment decisions than older generations. Recent research by the Morgan Stanley Institute for Sustainable Investing revealed in We are grateful for these awards as they recognise our continuous quest to build sustainable investment outcomes for our clients, our country and our planet. Therefore, with our focus fairly set on ensuring sustainability for our business and planet, we are confident that with this generation of millennials as leaders of the future, we re set to achieve both. 2

3 STANDING OUT FOR THE RIGHT REASONS IZAK ODENDAAL OLD MUTUAL MULTI-MANAGERS It is ironic that the president of a communist country is now the leading voice in support of free trade and globalisation, but this is the upsidedown world we live in now. China appears to have taken up the baton for an open global economy while the traditional champion for free trade, the US, is increasingly taking a closed America First stance. It has implemented tariffs on steel and aluminium, and has threatened tariffs on a range of Chinese imports. So far, global trade is still largely unimpeded. The World Trade Organisation (WTO) recently forecast fairly robust 4.4% growth in world trade volumes this year, after growth rose to 4.7% in 2017, the best performance in six years. However, the WTO warned that tit-for-tat trade retaliation could dent business confidence and discourage investment. The irony is that the US does not need protective tariffs. Its economy is doing well, unemployment has declined sharply to the lowest level in almost two decades, and its manufacturing sector is humming along. The US central bank, the Federal Reserve, is gradually increasing interest rates from record low levels, as inflation has drifted back to its 2% target. Other major central banks such as the Bank of Japan, the Bank of England and the European Central Bank are years behind the Fed in their hiking cycles, and as a result the US dollar has started strengthening again. Why does the dollar matter so much? Though the US share of global economic activity has declined with the rise of China and other large emerging markets, the US dollar retains its dominance in international trade and finance. Across the world, many companies and governments borrow in dollars rather than their own local currencies. When the dollar rises, these debts increase as well. It is still too early to talk about the resumption of the 2011 to 2015 dollar bull market that caused havoc across the financial world. The previous two big dollar bull markets in the late 1990s and early 1980s also coincided with emerging market crises. In other words, it is potentially a tricky time for emerging markets, compounded by unfavourable political dynamics in some of these countries. POLITICAL UNCERTAINTY ACROSS EMERGING MARKETS Argentina has been hardest hit. It has again approached the International Monetary Fund for assistance following the slump in its currency. The country has a history of currency and inflation crises, and with inflation already running above 20% even before the peso slump, investors are right to be concerned. The country has a huge fiscal deficit and virtually no domestic bond market, hence the need to turn to the IMF. Turkey s currency has also hit a record low against the dollar. Its economy has been booming and grew by 7.4% last year (more than China) largely due to fiscal stimulus. Investors are worried about an overheating economy, but President Erdogan, its increasingly authoritarian leader, has pressured the central bank to keep interest rates lower than they should be. A lack of central bank independence is a red flag for investors. Rising inflation and a widening current account deficit are tell-tale signs of an unbalanced economy that is running too hot. In the first quarter, Russian markets were favoured by investors, buoyed by a resurgent oil price, low inflation and attractive valuations. Russian equities also outperformed the MSCI Emerging Markets Index by 8% in dollars in the first quarter, and the country was upgraded from junk status to investment grade by S&P in March. But the imposition of a fresh round of sanctions against certain Kremlin-aligned oligarchs saw its market sell off and the rouble slumping against the US dollar. Brazil, which like Russia also suffered a deep recession in 2015 and 2016, remains in the grip of political uncertainty. Brazil will hold a general election in October, and former President Lula da Silva, imprisoned for corruption, is still the most popular candidate, according to opinion polls. But if the appeal against his conviction fails, he will be ineligible for participation. 3

4 Speaking of former presidents in prison, South Korea s former president Park Guen Hye was given a 24-year jail sentence term for corruption. She is the third Korean president to be convicted on criminal charges after leaving office. In Hungary, the nationalist Fidesz party won a third consecutive election victory by a wide margin. Fidesz, headed by Premier Viktor Orban, is accused of systematically undermining democratic checks and balances and suppressing media freedom in Hungary. The country is a European Union (EU) member, but has been increasingly critical of the EU s core liberal values. It is joined by a handful of other Eastern European countries termed the rotten fringe of Europe by the Financial Times whose tendency towards strong-man rule poses a headache for the EU. In an upset election victory, 92-year old Mahathir Mohamed returned to power as Malaysia s Prime Minister, a post he occupied between 1981 and While he campaigned on an anti-corruption ticket, he also promised subsidies and tax cuts that would put Malaysia s government finances under pressure. CLEANING UP IN SOUTH AFRICA A year ago South Africa was downgraded to junk status by S&P and Fitch following the midnight axing of then Finance Minister Pravin Gordhan. Now it is Gordhan who is doing the sacking in his new capacity as Public Enterprises Minister. He has been replacing compromised executives and board members at the state-owned enterprises he oversees, and appointing new respected leaders to get a new board this year (following Eskom) as the governance clean-up continues under President Ramaphosa. In other words, among emerging markets, South Africa is increasingly standing out, and this time for the right reasons. After years of deterioration, governance is improving and economic reforms are in the pipeline. There are clearly still huge problems. The process of undoing the political and policy damage of the past few years has just begun, while the country s deep historical structural problems and legacy of racial exclusion still need addressing. The World Bank s latest update on South Africa highlights that it has the highest income inequality (Gini coefficient) of all countries measured, while its low skill levels, dependence on commodity exports and weak integration into global supply chains constrain the country s growth potential. Crucially, the World Bank argues that slow growth and high inequality are mutually reinforcing: inequality leads to contestation for resources (through taxation, expropriation, corruption and crime), which in turn discourages the investment and job creation needed to reduce inequality. One quick-win to boosting investment and creating jobs is restoring certainty in the key mining sector. Reports that talks towards a revised mining charter are progressing well and expected to be concluded soon are very encouraging. Given the huge amount of upfront capital investment needed to build a mine, regulatory certainty is crucial. Nobody can predict the future, but the greater the likelihood that regulatory goalposts could be shifted during the decades-long life of a new mine, the smaller the chance investors will put up the capital for it (or the higher the expected return will have to be to justify the risk). Total mining production is still below 2008 levels, and shows no sign of improvement, while gold production s downward trend remains intact. At least our Commonwealth Games athletes produced a lot of gold. Despite South Africa s serious long-term challenges, optimism has increased in the short term. The fact that the rand has held up better than its peer currencies since December, even amid the recent emerging market stresses, reflects this. The global economy is still growing nicely despite the talks of a trade war and this is still a key external support that gives us a window of opportunity to implement confidence-boosting reforms. 4

5 GAINING OUTPERFORMANCE WITH ESG FRANK SIBIYA PORTFOLIO MANAGER AT CUSTOMISED SOLUTIONS Historically, fund managers mainly used financial factors to determine the investment potential of a company. Now the market is increasingly also using non-financial metrics to establish the drivers of a company s value. These include environmental, social and governance (ESG) factors some of which have had profound impacts on company valuations. Consider, for instance, the cost to British Petroleum (BP) of its 2010 Gulf of Mexico oil spill or the consequences of the labour unrest at Lonmin that resulted in the Marikana massacre and, more recently, the ramifications of the Steinhoff accounting scandal. Despite the risk of investing in companies with poor ESG ratings, traditional indices have had limited scope to incorporate ESG factors into the selection processes. However, innovations in the indexation investing space in recent years have broadened the capabilities of index-tracking investment managers, enabling them to integrate ESG factors into their investment processes. Not only can investors now access an index that offers a benchmark with meaningful exposure to ESG factors the first of its kind in South Africa but the returns from this index reveal the value of this approach. CREATING A RESPONSIBLE INVESTMENT EQUITY INDEX This index is made possible through the ESG-related data collected by leading index provider Morgan Stanley Capital International (MSCI). Using the data supplied by the MSCI, and through a proprietary weighting methodology, we built an index that has exposure to the most sustainable companies in South Africa. The Old Mutual Responsible Investment Equity Index was created in April The chart illustrates the performance of this index in relation to the JSE Shareholder Weighted All Share Index (SWIX) over the past two years. Though not a guarantee of future outperformance, the trend supports the fact that the ESG-led index has paid off relative to the market index. In addition, the table illustrates how the excess return depicted in the chart was achieved at a lower volatility than that of the SWIX. ESG RATINGS RAISE RED FLAGS The Responsible Investment Equity Index is a basket of shares of companies that have a high sustainability profile. We use this index to run our tracker Old Mutual Responsible Investment Equity Index Fund. This fund is particularly attractive to long-term investors EXAMPLES OF ESG ISSUES THAT IMPACT COMPANIES ENVIRONMENTAL SOCIAL GOVERNANCE Climate change Employee engagement Board expertise/independence Carbon emissions Labour standards Executive incentives Pollution Health and safety Shareholder rights Water scarcity Diversity Audit/accounting practices Renewable energy Privacy and data protection Business ethics and fraud Green building Stakeholder activism Political interference Sources: MSCI ESG Research, UNPRI, Old Mutual 5

6 that value sustainable economic themes, given their extended investment time horizon. Over the two years since its inception, Steinhoff has never been included in the Responsible Investment Equity Index, based on MSCI's ESG rating. GROWING GLOBAL DEMAND Over asset owners, investment managers and professional service partners have become signatories of the United Nationsbacked Principles for Responsible Investment (PRI). Broad acceptance of these practices in the market has translated into strong demand for sustainability-themed investment products. As at December 2017, MSCI reported that about US$98 billion of assets were benchmarked against the MSCI ESG indices. ESG-led index-tracking products can offer investors the opportunity to send signals to capital markets that sustainability considerations are of prime importance, without adversely affecting the risk-return characteristics of an investor s financial returns. In addition, investors also benefit from the substantially lower fees associated with index-tracking funds. In essence, ESG indices empower investors to vote with their feet by investing only in companies with high sustainability profiles, without compromising on investment returns. OLD MUTUAL RESPONSIBLE INVESTMENT EQUITY INDEX: ANNUALISED RETURN SINCE INCEPTION (1 APRIL MARCH 2018) 10.0% 5.4% 4.6% Old Mutual Responsible Investment Equity Index JSE Shareholder Weighted All Share Index (SWIX) Excess Return Sources: Old Mutual Investment Group, FactSet Indices Old Mutual Responsible Investment Index JSE Shareholder Weighted All Share Index (SWIX) Volatility Since Inception* 9.4% 10.1% *Inception date: 1 April Source: Old Mutual Investment Group. Figures as at end of March

7 WHAT S HOLDING MILLENNIALS BACK FROM REACHING FINANCIAL FREEDOM Results of the 2017/2018 Old Mutual Millennial survey Better educated, tech-savvy and optimistic millennials South Africans born between 1982 and 2000 are more likely to seek financial independence and personal fulfilment, compared to older generations. The Old Mutual Millennial survey was commissioned to better understand the financial behaviour of employed millennials, versus older generations surveyed in the 2017 Old Mutual Savings and Investment Monitor. Unless millennials address their high levels of debt, they ll struggle to reach their goal of financial freedom and independence. The four pitfalls millennials face on their journey to reach financial freedom are: 1. HIGH LEVELS OF DEBT It showed that 24% of millennials are currently invested in a unit trust versus only 2% among older generations with 57% of millennials saying they invested in a unit trust with the purpose of increasing their net worth (1st) and 47% saying they looked to invest to reach financial freedom (2nd). However, the survey also revealed that 35% of millennials were saving money to pay back debt this number was 13% for older South Africans. Millennials are facing unique financial challenges that make them susceptible to debt. Many are playing asset catch-up purchasing appliances and motors vehicles on credit while caring for financially dependent relatives (other than their children), which creates a tension between the expectations of family and dreams millennials have for their own financial future. Research also showed that millennials are more likely to save money in order of priority, towards travel (37% versus 10%), their education (31% versus 4%), a motor car (32% versus 11%) or starting their own business (23% versus 3%) than older generations. This shift in priorities speaks to the bigger differences in the way millennials and older generations view money and the unique challenges they face. Complete financial freedom and the flexibility it offers us to travel, or to be our own boss comes when the income from your assets exceeds your expenses. Only by reducing debt in tandem with investing in investment vehicles which offer growth assets and returns can millennials hope to reach this goal. Debt, typically in the form of personal loans, is often used to buy things that will be consumed like appliances, clothes, or items that tend to depreciate over time. The survey revealed that 64% of millennials compared to 14% among older generations had a personal loan and 35% (versus 13%) of their income was spent on servicing the interest on debt. A rule of thumb is never to spend more than you earn. The first step in achieving financial freedom is to eliminate debt by applying the basic rule of budgeting. Use 50% of your salary to cover your essential expenses. Allocate 20% of your salary towards your investments and personal goals it s recommended to put away 15% of your salary towards your retirement savings. Lastly, use the remaining 30% of your income for flexible spending. However, if you re currently in debt, use this money to pay off your debt as soon as possible. 7

8 2. SAVING, RATHER THAN INVESTING 4. NOT DEFINING YOUR VALUES According to the research, an alarming 47% of millennials nearly half did not know what a unit trust was. Others, who said that they could further define the collective scheme investment vehicle, tended to have difficulty in articulating their understanding of it. However, almost 61% of millennials in the survey were saving money in a bank account, suggesting that millennials do not understand the difference between saving and investing. Unlike saving which is setting money aside with the intention of spending tomorrow the second step to reach financial freedom is rather to invest and build wealth by creating a second source of income to supplement your salary. Bank accounts are seldom able to deliver real growth required to beat inflation, whereas, equitybased investment vehicles can protect the buying power of your money over the long term. Without a clear goal most people will find themselves spending rather than saving. Every person is unique, and our relationship with money is often complex. An understanding of your intrinsic values is also essential to find the resolve to achieve financial freedom. When we re working towards something that s important to us, we re often more willing to work harder to reach our goal. Investing enough money to be financially free may feel like a "long shot", but the first step is always the hardest. Don t be intimidated by your goal. Start small, and once you ve achieved a milestone, you ll be more motivated to reach the next, and bigger goals won t seem so unattainable anymore start today. 3. KEEPING UP WITH THE KARDASHIANS The third pitfall is overspending often utilising expensive credit to buy the things we absolutely "need" to appear successful. What people don t realise is that the real secret to financial freedom is to keep your living expenses as low as possible. Constantly increasing your credit limit as your income increases to keep up with the expectations of friends and family only serves to keep you further away from reaching your goal. 8

9 FIVE STEPS TO BEING INVESTMENT- SAVVY NEWLYWEDS While the Queen of England may have given Prince Harry and Meghan Markle the title of Duke and Duchess of Sussex as a wedding gift this royal couple reportedly asked guests for charitable donations in lieu of wedding gifts. While they seemingly have everything, they are by no means a typical millennial couple, but do fall into a generation that is said to prefer cash as a wedding offering over tangible gifts. While agreeing that this generational shift away from registering for traditional gifts makes sense, Lisa Airey, Strategy Analyst at Old Mutual Unit Trusts, urges millennial newlyweds to consider investing their monetary contributions into building a financially secure future together. Opting for cash over gifts is a sensible decision when considering that many young couples live together before getting married nowadays and have, as such, already acquired a large majority of the household items that are traditionally given as wedding gifts. It is important, however, that these soon-to-be married millennials see the lump sum of cash that they are likely to receive as an opportunity to jumpstart reaching their combined dreams and aspirations. Saving towards a deposit on your first home or birth of a baby is so much more rewarding than receiving a second dinner service set. TO HELP YOUNG NEWLYWEDS IN MAKING THE RIGHT DECISIONS WITH REGARD TO THEIR MONEY, AIREY LISTS FIVE STEPS TO INVESTING EFFECTIVELY AS A COUPLE. 1 2 DEVELOP A STRATEGY TOGETHER It is essential that the couple comes up with a long-term strategy for saving and investing that they both agree is in line with their combined aspirations, explains Airey. Every couple will understandably have different goals, so it is important that you talk this through in great detail before getting married, to ensure that you are on the same page when it comes to making any big financial decisions. ESTABLISH A SYSTEM FOR RESOLVING DISPUTES Airey warns couples that, while they may be in a blissful honeymoon bubble right now, they re bound to clash at times and should prepare for when those times come. Have a system and resources in place to help you through the difficult disagreements, she explains. And seeing that money problems are the most common reason for divorce, a financial planner can prove very handy in helping a couple to manage their finances effectively when they may not see eye to eye, she adds. 9

10 3 4 5 COMMIT TO WORKING TOGETHER Even though it is common for one spouse to take the lead when it comes to financial decisions, Airey says it is important that both partners be involved when it comes to their long-term financial planning. The fact of the matter is that doing things as a team will result in a better outcome and allow for a better partnership in the long run. UNDERSTAND EACH OTHER S GOALS AND FEARS In order to build a successful and mutually beneficial relationship, Airey says that it is essential for both parties to be completely honest about not only their financial position going into the marriage, but also their financial goals and fears for the future. It is common for two partners to have different levels of aversion to risk, or different spending habits, and that s okay, as long as they are transparent with each other about these from the start. STAY FOCUSED ON GOALS The last tip that Airey offers to newlyweds is to be realistic about the time horizon for reaching their goals. Couples need to keep in mind that building wealth is a marathon, rather than a sprint. Developing a well-thought-out financial plan and strategy is very important. On the topic of investment vehicles, however, Airey does state that unit trusts can prove extremely helpful in reaching goals and aspirations sooner than expected. Unit trusts are designed and managed to grow your wealth and help you achieve your goals and dreams, by offering an easy, affordable and a convenient way to invest in stock markets and asset classes such as equities, property, bonds and money markets. Unit trusts are also liquid, so you have access to the funds when you need it, but your initial capital grows, unlike in a regular savings account. Airey suggests selecting a unit trust fund that is best suited for your time horizon. After setting your goal date, select the right unit trust investment appropriate for your risk profile and asset allocation. She adds that couples should consider a tax-free unit trust. No tax is charged on interest, dividends or capital gains as long as you stay within the R annual limit. This means that tax-free unit trusts can prove extremely helpful in reaching goals and aspirations sooner than expected. Some of the most common goals that couples could consider investing towards include: Saving for a deposit on a property Investing for an unforgettable holiday Saving and investing for a sabbatical Funding children s education An emergency fund for unexpected future costs Once you ve merged your life with someone else s, you re working towards building the life you want to live together, says Airey. Being on the same page about your goals for the future is a cornerstone in a solid marriage. 10

11 ANNUAL SERVICE FEE REDUCTIONS IN SOME OLD MUTUAL UNIT TRUST FUNDS We are pleased to inform you that we have reduced the annual service fees of several of our unit trust funds. At Old Mutual Unit Trusts, we value the fact that you entrusted your investments with us. This is why we take our responsibility to provide you with a range of attractively priced funds with clear investment objectives very seriously. As a result, we decided to reduce the annual service fees of certain of our funds. The annual service fee reductions will help alleviate the impact of inflation and volatile investment markets, reduce the total cost of investing over time and enhance investment returns for all investors invested in these funds. The following service fee reductions have been implemented: AS OF 1 APRIL 2018: FUND NAME Old Mutual Core Balanced Fund Old Mutual Core Conservative Fund Old Mutual Core Moderate Fund Old Mutual Capped SWIX Index Fund AS OF 1 MAY 2018: FUND NAME Old Mutual Multi-Managers Maximum Return Fund of Funds Old Mutual Multi-Managers Enhanced Income Fund of Funds * No reduction - unchanged FEE CLASS ANNUAL SERVICE FEE (excluding VAT) Previous New Reduction A 0.60% 0.50% -0.10% B1 0.35% 0.25% -0.10% A 0.60% 0.50% -0.10% B1 0.35% 0.25% -0.10% A 0.60% 0.50% -0.10% B1 0.35% 0.25% -0.10% A 0.60% 0.50% -0.10% B1 0.35% 0.25% -0.10% FEE CLASS ANNUAL SERVICE FEE (excluding VAT) Previous New Reduction A 1.50% 1.00% -0.50% B4 1.00% 0.70% -0.30% A 1.00% 0.85% -0.15% B4 0.60% 0.60% 0.00%* We hope these annual service fee reductions will continue to strengthen our partnership and ultimately assist to grow wealth over the long term. For more information please contact your Old Mutual Fund Specialists or visit our website Alternatively, contact our contact centre by calling or ing unittrusts@oldmutual.com. 11

12 DO S & DON TS FOR MANAGING YOUR SOCIAL MEDIA REPUTATION DO S DON TS Always indicate on your profile that your views are your own and not those of your employer. Don t post information about your professional life, or any information that discredits the company. Be polite behave online in the same way you would at an important social event. Be aware that content posted can go viral; it can be screen-grabbed, forwarded or published. The delete button may not end an inappropriate post. Don t speak on behalf of your employer, share trade secrets or offer financial advice on social media. Don t write malicious comments that upset other people. Think before you retweet, repost or share content. Don t upload anyone s personal data without their consent (photos, company logos, etc.). Respect copyright law and ask for permission before publishing. Don t use your work address, username or password on any social media sites. REMEMBER YOU ONLY HAVE ONE REPUTATION AND WHATEVER YOU SHARE ON THE INTERNET LASTS FOREVER! 12

13 STAY UPDATED TRANSACT SAFELY AND SECURELY ONLINE Old Mutual Unit Trusts suite of internet-based self-help services offers the most convenient way to obtain and manage portfolio and investment information. No queues, no office hours, and no endless telephone calls. THE OLD MUTUAL UNIT TRUSTS' SECURE SITE ENABLES YOU TO CONVENIENTLY: View your full portfolio of unit trust investments. Buy, sell, and switch units (transact access). Amend personal contact details. In addition, third party representatives acting on your behalf may apply for access to your portfolio. To apply for access, please complete the online registration process to obtain a unique user number and to confirm your password. Using this detail, you can then login and apply for the specific accesses you need. ENSURE YOUR PERSONAL AND BENEFICIARY DETAILS ARE CURRENT PERSONAL DETAILS It is important to ensure that all your personal details that are linked to your unit trust portfolio are complete and up to date at all times. If any of your details change e.g. address, contact number (mobile, work, home), address (residential, postal and tax) please inform us as soon as possible, so that we can update our records. TAX RESIDENCY DETAILS Please ensure that you have provided us with your tax residence information and, if you are a foreign tax resident, your tax number. Processing of transaction instructions are dependent on all your information being up to date. If you have not yet provided us with this information, or if you are aware that it has changed, please inform us so that we can continue to provide quality service to you without any delay. HOW TO DO THIS? If you receive your transaction statement electronically via an Old Mutual Unit Trusts InfoSlip, select the Your Details tab to update your contact details. If you have access to the Old Mutual Unit Trusts Secure Service, you can update your personal details at You can call our Client Services Centre on or You can download the Client Details Update Form from unittrusts/forms and return the completed form, along with your supporting documents, via to uttransactions@oldmutual.com. If you prefer face-to-face interactions, you can inform your adviser of your change in personal details or visit your nearest Old Mutual branch, to update your details on the Old Mutual system. BENEFICIARY DETAILS As part of planning and taking care of your dependants in the event of your death it is very important that you have a nominated beneficiary on all your unit trust retirement products, and that you regularly maintain these details, especially if your family circumstances change. Just access, complete, scan and the beneficiary nomination form available on our site at or contact our Client Service Centre

14 About Old Mutual Unit Trusts Old Mutual Unit Trust Managers (RF) (Pty) Ltd is a registered manager in terms of the Collective Investment Schemes Control Act 45 of The fund fees and costs that we charge for managing your investment are set out in the relevant fund's Minimum Disclosure Document (MDD) or table of fees and charges, both available on our public website, or from our contact centre. Collective Investment Schemes are generally medium to long-term investments; the value of participatory interests or the investment may go down as well as up; past performance is not necessarily a guide to future performance. Old Mutual is a member of the Association for Savings & Investment South Africa (ASISA). Important Information: Old Mutual Unit Trust Managers (RF) (Pty) Ltd is part of Old Mutual Wealth ( OMW ), which is an elite service offering brought to you by several licenced Financial Services Providers in the Old Mutual Group ( the Old Mutual Group ). This newsletter is for information purposes only and does not constitute financial advice in any way or form. It is important to consult a financial planner to receive financial advice before acting on any information contained herein. OMW, the Old Mutual Group and its directors, officers and employees shall not be responsible and disclaim all liability for any loss, damage (whether direct, indirect, special or consequential) and/or expense of any nature whatsoever, which may be suffered as a result of, or which may be attributable, directly or indirectly, to the use of, or reliance upon any information contained in this newsletter. 14