ALEXANDER FORBES SURVEY RULES

Transcription

1 ALEXANDER FORBES SURVEY RULES January 2016

2 PRINCIPAL RULES APPLICABLE FOR ALL PERFORMANCE SURVEYS (Please note that the General criteria set out below should be read in conjunction with survey specific criteria.) 1. Alexander Forbes (AF) has full discretion to review, add, delete, or amend any rule for survey participation, as deemed necessary. Any rule changes will be communicated to the industry once approved by the AF Survey Governance Committee. 2. Participation in the surveys is voluntary. Once a portfolio/composite is voluntarily withdrawn from a survey, it may not re-join the survey for a period of 3 years but will retain its full performance history to that point. This will be reviewed on a case by case basis. 3. An asset manager is defined as any organisation that holds an FSB Category II or IIA Financial Advisory and Intermediary Services (FAIS) licence and is contractually appointed to make discretionary investment decisions on behalf of its clients. Only asset managers (including multi managers) may participate in the surveys. 4. In order to participate in the surveys, the asset manager must have completed an operational due diligence (ODD) questionnaire as per the Alexander Forbes ODD manager research standards. 5. The asset manager must have at least R1billion total assets under management (AuM) at the time of inclusion of any of its portfolios/composites in the surveys, unless otherwise stipulated within survey specific rules. 6. Each survey will have a minimum portfolio/composite submission size as determined by the survey the asset manager participates in. 7. Multiple submissions per survey per asset manager will be allowed, with the exception of the Large Manager Watch TM. 8. Participating funds must at least have a 12-month performance track record. A 12-month track record will be included in the surveys provided the portfolio/composite meets all other individual survey requirements and principal qualification criteria over the preceding 12 month period. 9. Participating portfolios must be available to institutional investors (unless closed after entering the Surveys). 10. Returns should be gross of fees and taxes, unless individual survey rules state otherwise. 11. Submitted returns must be actual portfolio/composite returns and not simulated returns. 12. Alexander Forbes may remove any portfolio/composite from the surveys, should regular revisions to the portfolio/composite be requested due to errors. 13. Alexander Forbes may interrogate any participating portfolio/composite and its returns. 14. Alexander Forbes may present data in the way, shape and form it deems optimal in order to provide meaningful performance comparisons. 15. Alexander Forbes will make the final decision into which category a participating portfolio/composite joins but will consider manager submissions in this regard. Categorisation will vary by survey type and Alexander Forbes will develop requisite categorisation that makes sense for its clients and its advice framework. 16. All new manager additions, deletions, changes and/ or amendments will be reviewed by the AF Survey Governance Committee for final acceptance or rejection. 17. If an asset manager is found to intentionally not comply with the survey rules, they may be excluded from all surveys for a period of time at the discretion of the Survey Governance Committee.

3 OPERATIONAL REQUIREMENTS 18. An authorised designate of the asset manager will sign an annual good faith declaration that warrants the integrity and commitment of the asset manager to present its information in a fair and responsible manner and its agreement to comply with the survey rules. 19. Participating asset managers are required to nominate a person(s) who will be responsible for verifying monthly and/or annual performance data submitted to the surveys. 20. All new survey submissions must include completion of a new portfolio/composite entry questionnaire and full data history. Alexander Forbes will include new portfolio/composites to the surveys on a monthly basis, barring those months that fall on quarter-end. This process will be completed as soon as is practically possible and is dependent on data requirements. 21. Any new addition of categories to surveys must have a minimum of three participating porfolios/composites. 22. Participants must submit all returns in the provided survey template by the 7 th working day of every month, unless otherwise required. Templates must be completed in full as per the guidelines provided in Appendix 1 and submissions must include reconciliation on a monthly basis showing the cash flow movement of portfolios in and out of different portfolio/composites. 23. Asset managers must make best endeavours to ensure information is accurate and timeously submitted. Errors should be communicated as soon as possible in a revised template, accompanied by a written explanation specifying reasons for the change and signed off by the person accountable for performance. 24. The asset manager is required to inform Alexander Forbes of any personnel changes in the management of portfolio/composites annually and can be included in the annual ODD questionnaire. 25. A portfolio/composite of at least three segregated funds, or one pooled fund is required at the point of entry (unless otherwise specified). The number of funds in the portfolio/composites and changes in the portfolio/composites must be disclosed. 26. A portfolio/composite must have minimum institutional (AuM), as described within individual survey rules that are comprised of institutional assets only. Institutional assets are described as assets managed on behalf of retirement funds, medical schemes, insurance companies (life assets) and corporate assets. 27. Only fully discretionary portfolio/composites within each mandate type or portfolio/composites with restrictions on management that do not substantively hamper the asset manager's discretion, will be allowed to participate. Portfolio/composites may be made up of pooled and/or segregated funds. 28. All composites should be created and maintained using GIPS principles. 29. Those asset managers that comply fully with GIPS will be noted as such and asset managers are required to provide Alexander Forbes with a certified copy of the GIPS verification certificate before such notation. 30. Should an asset manager alter a portfolio/composite for GIPS compliance purposes, Alexander Forbes will not restate the portfolio/composite s history, but show GIPS compliant data from the date of verification. 31. Asset managers are required to annually submit their B-BBEE Verification Certificate based on the DTI codes. 32. The asset manager must notify Alexander Forbes in its disclosures of any changes (historical or planned) in the management of a portfolio/composite. 33. Once a portfolio/composite closes for new business, continued participation in the surveys will be determined by Alexander Forbes. Funds that are temporarily closed for new business but have a

4 stated intention of re-opening to business in the 12 months following closure, will remain in the survey for the balance of the 12-month period. DROP IN MARKET VALUES 34. If the market value of a portfolio/composite drops below the minimum survey size requirements because of market movements, withdrawals or any other reason the following will apply: If the value of the portfolio/composite remains within 75% - 100% from the specified minimum size, participation will not be terminated with immediate effect, but the portfolio/composite will be given a six-month period in which to attain the minimum size for the relevant survey. Failing this, participation will be terminated. However, the portfolio/composite is eligible to re-enter the survey once it exceeds the minimum size again. The track record of the portfolio/composite will not be lost. If the value drops below 75% of the survey minimum size the portfolio/composite's participation will be terminated with immediate effect. However, the portfolio/composite will be eligible to re-enter the survey once it exceeds the minimum size requirement. The track record of the portfolio/composite will not be lost for this instance. BENCHMARK CALCULATION METHODOLOGY 35. The asset manager specifies the benchmark against which the portfolio/composite is compared, and will notify Alexander Forbes when such a benchmark has been changed. 36. If the benchmark is internally calculated, the asset manager must provide details of the calculation methodology used to calculate current and historic benchmark returns. 37. If a fund changes its internal benchmark, it will not lose its history, but Alexander Forbes will retain the historic benchmark and add the new benchmark returns from the date of change. 38. All publically available benchmarks will be provided by Alexander Forbes and reflected in the surveys as such. 39. All composite benchmarks constructed by using publically available benchmarks will be provided by Alexander Forbes. MERGERS 40. In the event of a merger of two companies, a new portfolio/composite needs to be calculated in line with GIPS guidelines and presented to Alexander Forbes for review. CHANGE OF EXISTING MANDATES AND BENCHMARKS 41. If the mandate of a portfolio/composite is change by the manager, the portfolio/composite will lose its performance history because of the change in mandate and will only be included in the appropriate new survey category once a 12 month performance history is available. 42. If a portfolio/composite changes risk category or if there is a change in the mandate of the fund, Alexander Forbes has the right to remove the history of the fund from the survey and will consider each change on a case by case basis.

5 OTHER 43. All participants in Alexander Forbes surveys are required to participate in the Annual Fee Survey. 44. All participants in Alexander Forbes surveys are required to participate in the semi-annual AuM Survey. Twice a year, Alexander Forbes will require general investment information and a detailed breakdown of total assets under management to compare discretionary assets submitted for survey purposes with total assets.

6 MANAGER WATCH TM SERIES OF SURVEYS (BALANCED MANDATES) 1. The purpose of the Manager Watch TM Surveys is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons of portfolio/composites within balanced mandates. 2. The minimum size requirement for participation in the Manager Watch TM Survey is R200 million. 3. The Manager Watch TM surveys are split into the following categories: a) Conservative The portfolio/composites included in this Survey aim to minimise the probability of shortterm (i.e. less than one year) capital loss while targeting long-term (i.e. more than five years) capital growth. b) Best Investment View The portfolio/composites included in this Survey represent the asset managers' best unconstrained investment view, appropriate to Regulation 28 compliant retirement funds. c) Dynamic The portfolio/composites included in this Survey aim to maximise long-term (i.e. more than 5 years) capital growth. This may lead to volatility of returns in the short-term (i.e. less than one year). 4. The three categories above will apply to portfolio/composites restricted to investing in South Africa (known as the S.A. Surveys) as well as those with no such restriction (known as the Global Surveys). 5. Asset managers must submit asset allocation positions and asset class performance for the funds on a monthly basis as stipulated by the performance template. 6. Asset managers must submit top 10 equity holdings for the funds on at least quarterly as stipulated by the performance template 7. For international assets, exchange rate conversions must be consistent for all portfolios and benchmarks. 8. Portfolios included in each category will be approved by the AF Survey Governance Committee.

7 LARGE MANAGER WATCH TM SURVEY The purpose of the Manager Watch TM Surveys is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons of fully discretionary balanced funds of the largest SA asset managers and in doing so provide an industry peer benchmark. Participants in the global and SA Large Manager Watch TM will be determined as follows: 1. The inclusion of a new entrant into the Large Manager Watch TM Survey is at the discretion of Alexander Forbes. The Large Manager Watch TM Survey is limited to a specific number of participants. A portfolio s track record and the appropriateness of such an inclusion to the investment industry would be the overriding considerations. 2. Multi-managers will be excluded from participation in the Large Manager Watch TM Survey. 3. The qualifying asset managers will be evaluated according to Assets Under Management (AUM) size, balanced capability and survey submission size. 4. The qualifying asset managers should have a minimum of R50bn in the AUM Survey. If Alexander Forbes believes that the number of managers who meet this criterion is too small to create a respective survey, they may include managers with smaller total AUM but still meet all other criteria. 5. The size of the qualifying balanced capability should be a minimum of R1bn in the AUM Survey. 6. Only fully discretionary balanced mandates (i.e. no fixed asset allocation funds) will qualify for inclusion. 7. The constituents of the Large Manager Watch TM will comprise the largest managers that participate in the AUM Survey and have qualifying balanced offerings. However, the minimum and maximum number of participants in Large Manager Watch TM is subject to change and will be at the discretion of Alexander Forbes. 8. To be eligible for the Large Manager Watch TM Survey, asset managers multi-asset class (balanced) assets (including life assets) have to comprise a substantial proportion of Total Institutional AUM as determined by Alexander Forbes. 9. The point of measurement of AUM will be 30 June of the preceding calendar year, except if a significant change within the industry warrants a change to another date. 10. The participants in the Large Manager Watch TM Surveys will be revised as of 1 January in the following calendar year. However, if the change is at a date other than June, the effective implementation date will only be two calendar months after the change has been communicated to the industry by Alexander Forbes. 11. Should a manager who is in the top twelve of the AUM Survey not qualify, the subsequent manager who qualifies will be considered for inclusion. 12. The figures provided by the asset managers for the AUM Survey must only relate to clients domiciled within South Africa. Third Party and Life Assets would also need to be included in this figure. 13. All participants must participate in both the Manager Watch TM series of surveys and the AUM Survey. 14. Any past industry median numbers calculated from the survey remain unchanged even if current participants change, to prevent potential biases.

8 SA EQUITY MANAGER WATCH TM SURVEYS 1. The purpose of the Equity Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA equity mandates. 2. The minimum size requirement for participation in the Equity Manager Watch TM Survey is R200 million. 3. The survey contains stand alone, specialist equity funds and covering a broad set of strategies and is therefore split based on the portfolio construction approach, as determined by Alexander Forbes. a. Enhanced Index These funds typically attempt to outperform the index by incremental amounts (0.5%-1% per annum) while simultaneously taking only small amounts of additional (active) risk. The risk exposure of these funds would be quite close to the benchmark. b. Non Benchmark Cognisant These portfolios should be constructed with little or no reference to share weightings in the benchmark. Alternately, they are constructed to take on high levels of relative risk against the benchmark. These portfolios will also invest in shares that are not in the benchmark. c. Benchmark Cognisant These are portfolios that would rely on similar investment philosophies to Non-Benchmark cognisant or unconstrained strategies. However, they also recognise that these investment views need to be very carefully constructed around the benchmark. These portfolios should have characteristics that fall between enhanced indexed and unconstrained strategies. 4. Portfolio/composites must be at least 90% invested in equities listed on the JSE Securities Exchange at all times. 5. Composite holdings and instrument data would need to be provided on a quarterly basis no more than 6 months in arrears. 6. The use of equity derivatives and futures are permitted, provided it does not provide any leverage or allows the portfolio to be net short.

9 SA BOND MANAGER WATCH TM SURVEY 1. The purpose of the Bond Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA bond mandates. 2. The minimum size requirement for participation in the Bond Manager Watch TM Survey is R200 million. 3. The survey contains stand alone, specialist bond funds and shows a broad set of fixed interest strategies. 4. The survey will be comprised of the following categories: a. Specialist Bond Funds Portfolios must be fully invested in South African fixed interest assets. This excludes international cash and bonds, equity or equity-linked bonds, preference shares and property. The benchmark of funds in this category will be the BESA All Bond Index. b. Flexible Bond Funds Portfolios must be fully invested in South African fixed interest assets equity or equity-linked bonds, preference shares and property but excludes international holdings including cash and bonds. The minimum fixed interest exposure will be 70%. Benchmarks may be asset manager specific. c. Inflation Linked Bond Funds Portfolios must be primarily invested in South African inflation linked bonds. The minimum inflation linked exposure will be 70%. 5. Portfolios must be actively managed. Passive portfolios are excluded from this survey. 6. The products can be a portfolio/composite or pooled or both but should not consist of or contain carve-outs of the fixed interest portion of balanced fund portfolios. 7. Asset managers need to disclose duration, credit and derivative limits. 8. Flexible Bond Funds must submit asset allocation positions and asset class performance for the funds on a monthly basis, as stipulated by the performance template. 9. Asset managers may use derivatives for cash flow facilitation, yield enhancement, hedging but not for speculation or gearing.

10 SA MONEY MARKET MANAGER WATCH TM SURVEY 1. The purpose of the Money Market Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA money market mandates. 2. The minimum size requirement for participation in the Money Market Manager Watch TM Survey is R200 million. 3. The survey contains stand alone, specialist money market funds. The survey has two categories based on the maximum duration of the fund: a. Portfolio duration up to 90 days (Weighted average modified duration of the portfolio should be between 0 and 90 days) b. Portfolio duration between days (Weighted average modified duration of the portfolio should be between 91 and 180 days) 4. Instruments that may be included in the participating portfolios comprise short-term government and corporate financial instruments i.e. banker s acceptances, commercial paper, negotiable certificates of deposit, Treasury bills etc. and should be consistent with Regulation 28 for money market funds 5. The products can be a portfolio/composite or pooled or both, but should not consist of or contain carve-outs of the cash portion of balanced fund portfolios. 6. Asset managers must disclose valuation methodology used, maximum and average duration, maturity of the longest dated instrument and percent of portfolio in A1+ instruments according to FITCH Ratings. 7. Use of conduits, securitisation, 5yr instruments swapped to Jibar + (credit exposure resulting from these) and bank and any other structured or credit-linked paper (e.g. exotics ) must be disclosed by asset managers. 8. All portfolios will be benchmarked against the Short term Fixed Interest Index (SteFI) in this survey.

11 SA ABSOLUTE RETURN ASSET MANAGER WATCH TM SURVEY 1. The purpose of the Absolute Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA absolute return mandates. 2. The minimum size requirement for participation in the Absolute Return Manager Watch TM Survey is R200 million. 3. The survey contains multi-asset class portfolios that target real returns, and does not include hedge funds. 4. The funds stated objective must include an explicit capital protection of a maximum of 18 months. 5. The Absolute return survey is subdivided into the following categories based on real return targets above inflation: a. CPI + 3%, b. CPI + 4%, c. CPI + 5% and d. CPI + 6%. 6. Asset managers must submit effective asset allocation positions and asset class performance for the funds on a monthly basis as stipulated by the performance template. 7. Asset managers may use derivatives for cash flow facilitation, yield enhancement, hedging but not for speculation, gearing or going net short.

12 PROPERTY MANAGER WATCH TM SURVEY 1. The purpose of the Property Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA property mandates. 2. The minimum size requirement for participation in the Property Manager Watch TM Survey is R200 million. 3. The survey contains stand alone, specialist property funds and is split based on the percentage of the portfolio fully held in listed property instruments as determined by Alexander Forbes. 4. Portfolio/composites must be at least 60% invested in listed property instruments listed on the JSE Securities Exchange at all times. 5. The use of equity derivatives and futures are permitted, provided it does not provide any leverage or allows the portfolio to be net short. 6. All portfolios will be benchmarked against the FTSE/JSE SA Listed Property Index in this survey.

13 HEDGE FUND OF FUND MANAGER WATCH TM SURVEY 1. The purpose of the Hedge Fund of Fund Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA Fund of Hedge Fund asset managers. 2. The minimum size requirement for participation in the Hedge Fund of Fund Manager Watch TM Survey is R200 million. 3. Fund of Hedge Fund managers must submit FSB fund asset manager registration number and FAIS verification details, details of auditor, prime broker, custodian, administrator and risk asset manager. 4. Fund of Hedge Fund managers should comply with the prerequisite Category 2A regulation by the end of the regulatory deadline period. 5. Fund of Hedge Fund managers must provide proof of a collective Investment scheme structure or similar pooling mechanism at the fund of fund level, from the inception of the fund of fund product. 6. Fund of Hedge Fund managers must submit subscription / redemption details at top-level vehicle eg. Exit fees, performance objectives etc. 7. Participants must submit all returns in the required format by the 18 th of every month or on the Friday preceding that if the 18 th falls on a weekend, unless otherwise required. Templates must be completed in full and submissions must include reconciliation on a monthly basis showing the movement of portfolios in and out of different portfolio/composites and reasons for the changes. 8. No balanced funds with hedge fund of funds are allowed. 9. Fund of Funds must be/have been actual investable stand-alone products. 10. Returns must be submitted gross and net of fees. No model returns. 11. Medians - Any past industry median numbers calculated from survey remain unchanged even if participants change to prevent survivorship bias. 12. The survey does not rank performance. 13. If a fund ceases to exist, returns must be submitted up to fund closure 14. The Fund of Funds must consist of more than three underlying asset managers. 15. Survey will show closed funds for purposes of ensuring robustness of industry statistics and mitigate survivorship bias.

14 BEE MANAGER WATCH TM SURVEY 1. The purpose of the BEE Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons across SA BEE asset managers. 2. The minimum size requirement for participation in the BEE Manager Watch TM Survey is R25 million. 3. The asset manager must at least be a Level 2 contributor The manager must have at least R100m in total AUM at the time of inclusion of any of its portfolios. 5. The portfolio/s to be included will require a one year (12 month) performance track record 6. Should the market value of the portfolio fall below these limits for a period greater than six months, Alexander Forbes will, at their discretion, remove the portfolio from the survey. 7. Returns received from managers should be reflected gross of fees and taxes for comparability purposes. 8. The survey will have the following categories: i. Absolute Return Funds ii. Bond Funds iii. Balanced Funds iv. Money Market Funds v. Equity Funds vi. Property Funds 9. Asset managers are to provide the following qualitative information to Alexander Forbes on a quarterly basis: i. Total empowerment shareholding as a percentage of total ownership ii. Empowerment shareholding composition as a percentage of total empowerment ownership iii. Black 2 /Gender board member representation iv. Black/Gender executive representation v. Black/Gender staff (excl. management) representation vi. Black/Gender Investment Analyst representation vii. Black/Gender Portfolio Manager representation viii. Total Black/Gender staff representation ix. Use of black brokerages as a percentage of total brokerages used (by volume) (minimum level 2 contributors) x. Empowerment rating 1 Empowerment rating as per BEE codes of Good Practice by a SANAS accredited verification agency 2 Black refers to the definition of Black as contained within the Black Economic Empowerment Act of 2003

15 MULTI - MANAGER WATCH TM SURVEY 1. The purpose of the Multi-Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA multimanager mandates. 2. The minimum size requirement for participation in the Multi-Manager Watch TM Survey is R200 million. 3. The Multi Asset manager Watch survey is split based on the following objectives as determined by the asset manager. a. Fixed Asset Allocation Asset managers included in the survey typically make use of fixed asset allocations, which mean that they balance the asset allocation back to the strategic long-term asset allocation target (from time to time, according to predefined strategies) with no intention to enhance returns from an asset allocation point of view. However, while some of these asset managers adhere rigidly to these fixed asset allocations others may allow these allocations to drift slightly within certain margins. b. Strategic Asset Allocation Although asset managers included in the survey may have long term strategic asset allocation targets, they actively manage the asset allocation in an attempt to enhance returns. The different categories above (Low Volatility, Best Investment View and Dynamic) represent the different risk profiles of the funds. The Low Volatility category represents the asset manager's most conservatively managed portfolio while the Dynamic category represents the asset managers most aggressively managed portfolio, according to the asset manager's discretion. 4. The Fixed Asset Allocation category has 5 sub-categories, with different equity bands. Funds will be allocated to these categories according to their total equity exposure. 5. Asset managers must submit asset allocation positions and asset class performance for the funds on a monthly basis as requested by the performance template.

16 TARGETED DEVELOPMENT INVESTMENT (TDI) MANAGER WATCH TM SURVEY 1. The purpose of the TDI Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA TDI mandates. 2. The minimum size requirement for participation in the TDI Manager Watch TM Survey is R15 million. 3. The survey is produced quarterly, but asset managers are requested to still submit data on a monthly basis if possible. 4. Participating portfolios focus on social responsible investments and targeted investments. Socially responsible investment portfolios include funds that employ: a. Ethical screening This is the inclusion or exclusion of shares on ethical, social or environmental grounds. b. Shareholder engagement/shareholder activism Instead of restricting portfolios, investors can seek to improve a company s ethical, social and/or environmental behaviour by means of dialogue, pressure, support for responsible management and voting at annual general meetings. c. Cause-based investing Supporting a particular cause or activity by financing it by investment. Investors may seek a financial return at market rates or they may take a lower return in order to achieve a particular social return for society from their investments. The nature of this type of investment includes: 1. Construction of roads, bridges and dams; 2. Housing, water and sanitation provision; 3. Building of schools, hospitals, correctional facilities with adequate capacity; 4. Job creation through expansion plans; 5. Broad based economic and social empowerment; 6. Employment equity through affirmative action; 7. Investment on ethical, social or environmental grounds; 8. Shareholder activism. The survey is split by product type namely: 1. Balanced Funds 2. Equity 3. Fixed Interest 4. Property 5. Absolute Return 6. Alternative

17 MEDICAL AID MANAGER WATCH TM SURVEY 1. The purpose of the Medical Aid Manager Watch TM Survey is to provide clients, consultants and asset managers with objective and meaningful performance and risk comparisons within SA medical aid mandates. 2. The minimum size requirement for participation in the Medical Aid Manager Watch TM Survey is R25 million. 3. The survey is produced monthly with the asset allocation section of the survey produced every quarter. 4. Asset managers must submit asset allocation positions and asset class performance for the funds on a monthly basis as requested by the performance template. 5. The portfolios in this Survey are bound by the restrictions imposed by Regulation 30 of the Medical Schemes Act. 6. The survey consists of three broad categories: i. Absolute Return Funds ii. Money Market Fund iii. Balanced Funds

18 ACKNOWLEDGEMENT OF RULES Please initial the entire document, sign the acknowledgement below and return to us: I, confirm that I have read and understood the rules. I confirm that our submissions meet the requirements for inclusion and that all future changes will be communicated according to the stipulations of these rules. Title Company Name Signature Date Alexander Forbes Research and Product Development A Division of Alexander Forbes Financial Services Reg No: 69/18487/07 FAIS License No: 1177 Contact Details: Tel: managerwatch@aforbes.co.za Physical Address: Alexander Forbes Research and Product Development 115 West Street Sandown SANDTON Postal Address : PO Box Sandton 2146 South Africa

19 APPENDIX 1: Survey Data Template Guidelines The Regulation 28 Survey Template referred to as the template below has been approved by ASISA, asset consultants and the investment industry and is the compulsory template required for participation in the Manager Watch TM Series of Surveys. All data is required to be completed in this format and submitted monthly to Alexander Forbes. Please note that the following are a few guidelines for completing the survey template and is compulsory for all participating asset managers: 1. The deadline date for all survey template submission is the 7 th working day of each month. (Earlier deadlines will be communicated via ) 2. All survey templates and data submissions must also be sent to ManagerWatch@aforbes.co.za and only the current month s template must be submitted. Hidden sheets must be removed from all template submissions. 3. The survey template is compulsory for all data submissions (including Specialist portfolios). No other format in excel will be accepted. 4. Survey templates that are submitted should not be protected and should not be marked as read only. 5. No changes are to be made to the fields that are currently on the survey template (for example, changing TOTAL DOMESTIC DEBT INSTRUMENTS to TOTAL DOMESTIC BONDS). 6. The correct FUND NAME (as per the survey), MANAGEMENT COMPANY NAME and MONTH must be used. 7. The TOTAL PORTFOLIO return and TOTAL BENCHMARK return should be completed in D36 and E36 respectively (and not on the GROSS UNIT PRICE/INDEX VALUE field). 8. The MARKET VALUE should be completed in cell G Benchmark returns should be provided for all portfolios where possible. 10. The TOTAL PORTFOLIO PHYSICAL and EFFECTIVE asset allocation data should be completed and should add up to 100%. 11. TOTAL DOMESTIC EQUITIES should exclude PROPERTY for both return and asset allocation data. 12. Where applicable, the splits of TOTAL INTERNATIONAL asset allocations should be included on the template. 13. Benchmark descriptions should be provided on the template. 14. The additional Information section of the survey template is only relevant to specialist funds and is required on a quarterly basis. 15. Returns, benchmarks, asset allocation etc. should be expressed in percentage format and market values should be expressed in number format. These fields should not be replaced with text.