COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT 2017

Transcription

1 COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT 2017

2 LEGAL NOTES MANAGEMENT COMPANY: Sygnia Collective Investments RF (Pty) Ltd Registration No. 2009/003063/07 7th Floor, The Foundry, Cardiff Street, Green Point, Cape Town, 8001 DIRECTORS: NAME DATE OF APPOINTMENT MF Wiezycka 23/03/2009 HI Bhorat 15/05/2012 N Giles 10/12/2013 KT Hopkins 09/11/2014 SA Zinn 01/02/2016 IK Moyane 01/02/2016 INVESTMENT MANAGER: Sygnia Asset Management is an authorised financial services provider REGISTERED OFFICE: 7th Floor, The Foundry Cardiff Street, Green Point Cape Town, 8001 POSTAL ADDRESS: PO Box Waterfront, 8002 TRUSTEE: Standard Bank of South Africa Limited EXTERNAL AUDITOR: Deloitte & Touche 1st Floor The Square 27 Somerset Road Green Point, 8005 Disclaimer Sygnia Collective Investments (RF) Proprietary Limited ( the Company ) is a member of the Association for Savings & Investment SA (ASISA). Sygnia Asset Management Proprietary Limited, an authorised financial services provider, is the appointed investment manager of the Company. The Company is incorporated and registered under the laws of South Africa and is supervised by the Financial Services Board. Unit trust prices are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any permissible deductions from the portfolio divided by the number of units in issue. Forward pricing is used and Fund valuations take place at approximately 16:00 each business day. Purchase and redemption requests must be received by the manager by 14:00 each business day to receive that day s price. A schedule of fees, charges and maximum commissions is available on request from the Company. Commission and incentives may be paid and if so, would be included in the overall costs. Permissible deductions may include management fees, brokerage, STT, auditor s fees, bank charges and trustee fees. Unit trusts are traded at ruling prices and the Fund may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Collective Investment Schemes in Securities (unit trusts) are generally medium- to long-term investments. The value of units may go down as well as up and past performance is not necessarily a guide to the future. SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

3 CHAIRPERSON S REPORT We are living through unprecedented times in South Africa when, once again, economics and politics have converged. The political uncertainty has taken a massive toll on the South African economy with low growth, record unemployment, credit rating downgrades of our debt and volatile market returns. INVESTMENT MARKETS IN REVIEW It is a poignant tragedy as this has happened against a backdrop of a global economic recovery, which should have benefitted South Africa. From an investment perspective, the twelve months to 30 September 2017 were dominated by prospects of tightening monetary policies implemented by central banks after the global financial crisis, a recovery in commodity prices on the back of continuing demand from China and lower supply, geopolitical risks brought to the table by the election of Donald Trump as the 45th President of the United States and record inflows into emerging markets driven by the search for yield argument and a more risk-on sentiment among global investors. The election of Donald Trump, who promised tax cuts, infrastructure spending and looser regulation, acted as a catalyst for the US equity markets which reached new heights in 2017, with technology companies leading the pack. The US economy continued to strengthen through the year as unemployment fell to record lows, and despite the US Federal Reserve increasing interest rates twice so as not to overheat the economy. China s economy also performed better than expected on the back of easy credit and copious public investment. This is expected to continue as China strives to become the most significant power on the global stage. And, finally, the strength of the Eurozone s recovery has taken everyone by surprise, with the International Monetary Fund (IMF) upgrading its growth forecast to 2.1% in 2018, the highest level since This recovery is both broad-based, spanning all countries and sectors, and well-balanced, with household spending, exports and investment all playing their part. Unfortunately, despite the global recovery, South Africa continued to struggle with weak economic fundamentals as political risks intensified. Credit rating agencies cut our sovereign credit rating to junk after President Jacob Zuma fired the respected Minister of Finance, Pravin Gordhan, who did his best to fight against the self-serving interests of political forces supportive of state capture. As the economy entered a recession in the second quarter of 2017, unemployment rocketed to 27.7%. The level of corruption was vividly exposed by the media and implicated a number of Cabinet ministers. Despite this, no action has been taken by prosecuting authorities in South Africa. The fight for preserving our democracy has been taken up by civil society, trade unions and the courts. The headlines in major international newspapers, which implicated companies such as KPMG, McKinsey, SAP, HSBC and Bell Pottinger in state capture, all contributed to a negative sentiment towards our markets. By year-end the Medium Term Budget Policy Statement highlighted the dire state of South Africa s finances, with no solutions in sight. Falling revenues, increasing expenditure, bail-outs of mismanaged state-owned enterprises and higher borrowing costs all featured when ratings agency S&P Global Ratings downgraded South Africa s long-term local currency debt to BB+, whilst Moody s placed our debt on review to be downgraded. Unsurprisingly, given the level of economic mismanagement, the GDP growth forecasts have been cut to 0.7% in FY16/17, 0.9% in FY17/18 and 1.1% in FY18/19. Even prior to the budget the Reserve Bank pointed out that South Africa is experiencing one of the worst growth periods in its history, with the current decade being the second-worst in the post-war period. The Reserve Bank does not expect a recovery in the economic growth rate until at least 2019 when it projects growth of 1.5%. We start the 2017/18 financial year expecting significant volatility until the ANC elective conference in December. The conference will determine the future course for South Africa. If the ANC elects a president who can focus on restoring law and order, we can recover quickly. If not, then the period until the 2019 elections will continue to be marred by a flat-lining economy, increasing unemployment levels and a difficult investment environment. SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

4 /CHAIRPERSON S REPORT We are pleased that our investment portfolios were all well-positioned for what has transpired in the investment markets. After a challenging 2016, our negative view of the political situation impacting economic growth and investment risk was vindicated, with investment performance recovering strongly despite the volatility. Our investment philosophy, with its focus on risk management and diversification, remains unshaken. We believe that our active tactical asset allocation strategies, superior asset manager selection, focus on low-cost passive investments, and on capital preservation through exposure to funds of hedge funds, will continue to provide adequate building blocks to deliver value to all our investors. We believe that the world is being shaped by technology at an exponential pace, and hence our focus on investing in trends, which are supportive of technology-driven change. Our focus on these trends has supported our investment performance and will do so in future. In 2017, Sygnia has been at the forefront of the corporate fight against corruption, a stance unusual for most businesses. We started the year by exposing the exploitation of the poor through the unscrupulous business practices of Net1, challenging its shareholders to intervene, and we dismissed KPMG as our external auditors after their role in state capture was exposed and I, acting in my personal capacity, have become very vocal in criticising corruption in both the public and the private sector. Why have we decided to take this stance? We believe that unless corporate South Africa stands up and fights for the restoration of law and order in South Africa we are heading down an economic abyss, with all South Africans becoming progressively poorer. The challenges we face as a country mean that the business sector can no longer be silent. It cannot, through commission or omission, ignore the state of the economy, a state caused entirely by the unstable political environment. Sygnia has been founded on the core principles of ethical business practices, empowerment of consumers through financial literacy and lowering the cost of saving and investing. Our stance on corruption and business ethics, and a determination to fight for a free and fair South Africa, is consistent with this ethos. SYGNIA COLLECTIVE INVESTMENT SCHEME - BUSINESS UPDATE In 2016 we launched the Sygnia Money Market Fund and the Sygnia 4th Industrial Revolution Global Equity Fund. The Sygnia 4th Industrial Revolution Global Equity Fund was the first product of its kind in South Africa. It offers local investors exposure to global companies at the forefront of the 4th Industrial Revolution, confirming Sygnia s commitment to innovation and ensuring that clients investment portfolios are future-fit, continuously improving and relevant in the decades to come. The fund has delivered excellent returns of 41.8% in its first year. Sygnia publicly demonstrated its commitment to supporting efforts aimed at eradicating corruption in South Africa, by launching two new unit classes of the Sygnia Money Market Unit Trust Class S1 carries a management fee of 0.05% per annum, and Class S2 carries a management fee of 1% per annum. Sygnia is managing this unit trust on a totally non-profit basis and provides a mechanism whereby any investor or saver can contribute to change in South Africa. Sygnia donates these management fees to the following organisations, who are taking a stand in our country - OUTA, The Black Sash, Corruption Watch, The Helen Suzman Foundation, The Council for the Advancement of the SA Constitution, The Kgalema Motlanthe Foundation and The Ahmed Kathrada Foundation. Sygnia offers a suite of multi-manager CPI plus target unit trusts and a wide range of index-tracking unit trusts and Exchange Traded Funds (ETFs), spanning multi-asset class products, equities, bonds, international investments and property. The Sygnia Linked Investment Service Provider (LISP) platform offers retail investors a choice of savings products, including retirement annuities, living annuities, preservation funds and tax-free savings accounts. Sygnia also offers investment planning advice via its digital financial planning tool, the Sygnia RoboAdvisor. SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

5 /CHAIRPERSON S REPORT CONCLUSION 2017 has been a year of continuing to build Sygnia into a force in the financial services industry in South Africa, by challenging conventional thinking and pricing strategies across the sector, and by adding to our product proposition. Our activist stance has propelled the brand awareness of Sygnia among the South African public. The challenge will be to convert the awareness of our ethos into an awareness of our product proposition. Despite the challenges facing South Africa, we remain optimistic about the future of the country and our role in shaping the future of saving and investing. I would like to take this opportunity to thank all our clients, our board of directors, the management team and staff for their unwavering support and hard work in 2017, and all our stakeholders for having faith in our long-term vision. MAGDA WIERZYCKA CHIEF EXECUTIVE OFFICER SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

6 TRUSTEE S REPORT REPORT OF THE TRUSTEE FOR THE SYGNIA COLLECTIVE INVESTMENT SCHEME We, the Standard Bank of South Africa Limited, in our capacity as Trustee of the Sygnia Collective Investments Scheme ( the Scheme ) have prepared a report in terms of Section 70(1)(f) of the Collective Investment Schemes Control Act, 45 of 2002, as amended ( the Act ), for the financial year ended 30 September In support of our report we have adopted certain processes and procedures that allow us to form a reasonable conclusion on whether the Manager has administered the Scheme in accordance with the Act and the Scheme Deed. As Trustees of the Scheme we are also obliged to in terms of Section 70(3) of the Act to satisfy ourselves that every statement of comprehensive income, statement of financial position or other return prepared by the Manager of the Scheme as required by Section 90 of the Act fairly represents the assets and liabilities, as well as the income and distribution of income, of every portfolio of the Scheme. The Manager is responsible for maintaining the accounting records and preparing the annual financial statements of the Scheme in conformity with International Financial Reporting Standards. This responsibility also includes appointing an external auditor to the Scheme to ensure that the financial statements are properly drawn up so as to fairly represent the financial position of every portfolio of its collective investment scheme are in accordance with International Financial Reporting Standards and in the manner required by the Act. Our enquiry into the administration of the Scheme by the Manager does not cover a review of the annual financial statements and hence we do not provide an opinion thereon. Based on our records, internal processes and procedures we report that nothing has come to our attention that causes us to believe that the accompanying financial statements do not fairly represent the assets and liabilities, as well as the income and distribution of income, of every portfolio of the Scheme administered by the Manager. The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06) Authorised financial services provider and registered credit provider (NCRCP15). We confirm that according to the records available to us, no losses were suffered in the portfolios and no investor was prejudiced as a result thereof. We conclude our report by stating that we reasonably believe that the Manager has administered the Scheme in accordance with: (i) the limitations imposed on the investment and borrowing powers of the manager by this Act; (ii) and the provisions of this Act and the deed; MELINDA MOSTERT STANDARD BANK OF SOUTH AFRICA LIMITED SEGGIE MOODLEY STANDARD BANK OF SOUTH AFRICA LIMITED 19 DECEMBER 2017 SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

7 STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2017 SYGNIA CPI + 2% FUND SYGNIA CPI + 4% FUND SYGNIA CPI + 6% FUND SYGNIA EQUITY FUND SYGNIA SKELETON BALANCED 70 ASSETS Cash and cash equivalents Investments Interest receivable Unsettled trades TOTAL ASSETS LIABILITIES Distributions payable Trade payables Unsettled trades TOTAL LIABILITIES NET ASSETS ATTRIBUTABLE Net inflow / (outflow) ( ) ( ) ( ) ( ) SYGNIA SKELETON BALANCED 60 SYGNIA SKELETON BALANCED 40 SYGNIA DIVI INDEX FUND SYGNIA LISTED PROPERTY INDEX FUND SYGNIA TOP 40 INDEX FUND ASSETS Cash and cash equivalents Investments Interest receivable Unsettled trades TOTAL ASSETS LIABILITIES Distributions payable Trade payables Unsettled trades TOTAL LIABILITIES NET ASSETS ATTRIBUTABLE Net inflow / (outflow) ( ) ( ) SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

8 STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2017 SYGNIA SWIX INDEX FUND SYGNIA ACTIVE EQUITY FUND SYGNIA INTERNATIONAL FLEXIBLE FUND OF FUNDS SYGNIA AFRICA EQUITY FUND ASSETS Cash and cash equivalents Investments Interest receivable Unsettled trades TOTAL ASSETS LIABILITIES Distributions payable Trade payables Unsettled trades TOTAL LIABILITIES NET ASSETS ATTRIBUTABLE Net inflow / (outflow) ( ) SYGNIA VALUE FUND SYGNIA ALL BOND INDEX FUND SYGNIA GROWTH EQUITY SYGNIA SKELETON INTERNATIONAL EQUITY FUND OF FUNDS ASSETS Cash and cash equivalents Investments Interest receivable Unsettled trades TOTAL ASSETS LIABILITIES Distributions payable Trade payables Unsettled trades TOTAL LIABILITIES NET ASSETS ATTRIBUTABLE Net inflow / (outflow) ( ) SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

9 STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2017 SYGNIA SKELETON WORLDWIDE FLEXIBLE FUND SYGNIA 4TH IDUSTRIAL REVOLUTION GLOBAL EQUITY FUND SYGNIA MONEY MARKET FUND ASSETS Cash and cash equivalents Investments Interest receivable Unsettled trades TOTAL ASSETS LIABILITIES Distributions payable Trade payables Unsettled trades TOTAL LIABILITIES NET ASSETS ATTRIBUTABLE Net inflow / (outflow) SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

10 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2017 SYGNIA CPI + 2% FUND SYGNIA CPI + 4% FUND SYGNIA CPI + 6% FUND SYGNIA EQUITY FUND INCOME Dividend income Income adjustment on creation and cancellation of units ( ) ( ) ( ) ( ) Interest income Net fair value gains / (losses) on nvestments OPERATING EXPENSES BEFORE DISTRIBUTIONS Audit fees Bank charges and custodian expenses Management fees Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE DISTRIBUTIONS Distributions ( ) ( ) ( ) ( ) TOTAL PROFIT AND COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

11 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2017 SYGNIA SKELETON BALANCED 70 SYGNIA SKELETON BALANCED 60 SYGNIA SKELETON BALANCED 40 SYGNIA DIVI INDEX FUND INCOME Dividend income Income adjustment on creation and cancellation of units (79 393) (9 003) Interest income Net fair value gains / (losses) on nvestments OPERATING EXPENSES BEFORE DISTRIBUTIONS Audit fees Bank charges and custodian expenses Management fees Performance fees Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE DISTRIBUTIONS Distributions ( ) ( ) ( ) ( ) TOTAL PROFIT AND COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

12 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2017 SYGNIA LISTED PROPERTY INDEX FUND SYGNIA TOP 40 INDEX FUND SYGNIA SWIX INDEX FUND SYGNIA ACTIVE EQUITY FUND SYGNIA INTERNATIONAL FLEXIBLE FUND OF FUNDS INCOME Dividend income Income adjustment on creation and cancellation of units (33 198) ( ) Interest income Net fair value gains / (losses) on nvestments OPERATING EXPENSES BEFORE DISTRIBUTIONS Audit fees Bank charges and custodian expenses Management fees Performance fees Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE DISTRIBUTIONS Distributions ( ) ( ) ( ) ( ) - TOTAL PROFIT AND COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

13 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2017 SYGNIA AFRICA EQUITY FUND SYGNIA VALUE FUND SYGNIA ALL BOND INDEX FUND SYGNIA GROWTH EQUITY INCOME ( ) Dividend income Income adjustment on creation and cancellation of units (2 554) ( ) Interest income Net fair value gains / (losses) on nvestments ( ) ( ) Net fair value gains / (losses) on investments not recognised in prior year OPERATING EXPENSES BEFORE DISTRIBUTIONS Audit fees Bank charges and custodian expenses Management fees Performance fees Transaction costs Trustee fees NET INCOME / (LOSS) FROM OPERATIONS BEFORE DISTRIBUTIONS ( ) Distributions ( ) ( ) ( ) ( ) TOTAL PROFIT / (LOSS) AND COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ( ) ( ) SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

14 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2017 SYGNIA SKELETON INTERNATIONAL EQUITY FUND OF FUNDS SYGNIA SKELETON WORLDWIDE FLEXIBLE FUND SYGNIA 4TH IDUSTRIAL REVOLUTION GLOBAL EQUITY FUND SYGNIA MONEY MARKET FUND INCOME Dividend income Income adjustment on creation and cancellation of units ( ) ( ) Interest income Net fair value gains / (losses) on nvestments ( ) OPERATING EXPENSES BEFORE DISTRIBUTIONS Audit fees Bank charges and custodian expenses Management fees Performance fees Transaction costs Trustee fees NET INCOME FROM OPERATIONS BEFORE DISTRIBUTIONS Distributions ( ) ( ) ( ) ( ) TOTAL PROFIT / (LOSS) AND COMPREHENSIVE INCOME ATTRIBUTABLE TO UNITHOLDERS ( ) SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

15 PERFORMANCE YEAR ANNUAL RETURN TO 30 SEPTEMBER 2017 PERFORMANCE BENCHMARK Sygnia CPI + 2% Fund Class A 6.73% 6.77% Sygnia CPI + 4% Fund Class A 5.75% 8.77% Sygnia CPI + 6% Fund Class A 5.22% 10.77% Sygnia Equity Fund Class A 1.85% 7.00% Sygnia Skeleton Balanced 70 Fund Class A 7.66% 9.77% Sygnia Skeleton Balanced 60 Fund Class A 8.03% 7.77% Sygnia Skeleton Balanced 40 Fund Class A 8.73% 6.77% Sygnia DIVI Index Fund Class A 9.20% 10.06% Sygnia Listed Property Index Fund Class A 9.79% 9.51% Sygnia Top 40 Index Fund Class A 11.26% 11.87% Sygnia SWIX Index Fund Class A 6.31% 7.00% Sygnia Active Equity Fund Class A 4.94% 7.00% Sygnia International Flexible Fund of Funds Class A 14.66% 11.97% Sygnia Africa Equity Fund Class A 8.97% 14.83% Sygnia Value Fund Class A (1.63%) 7.00% Sygnia All Bond Index Fund Class A 7.56% 8.20% Sygnia Growth Equity Fund Class A 3.07% 7.00% Sygnia Skeleton International Equity Fund of Funds Class A 15.65% 17.20% Sygnia Skeleton Worldwide Flexible Fund Class A 10.34% 11.97% Sygnia Money Market Fund Class A* 8.96% 7.62% Sygnia 4th Industrial Revolution Global Equity Class A* 31.89% 20.86% Performance figures, unit prices and distributions history are shown for the primary unit class of each fund. Some of the funds were not in existence at distribution dates and will therefore have no distribution. Performance figures, unit prices and distribution for other unit classes are available from Client Service on request. *Returns shown are since inception as the fund has been in existence for less than 12 months SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

16 UNIT PRICE HISTORY 1 YEAR ANNUAL RETURN TO 30 SEPTEMBER MAXIMUM PRICE CENTS 2017 MINIMUM PRICE CENTS 2017 LAST PRICE CENTS Sygnia CPI + 2% Fund Class A Sygnia CPI + 4% Fund Class A Sygnia CPI + 6% Fund Class A Sygnia Equity Fund Class A Sygnia Skeleton Balanced 70 Fund Class A Sygnia Skeleton Balanced 60 Fund Class A Sygnia Skeleton Balanced 40 Fund Class A Sygnia DIVI Index Fund Class A Sygnia Listed Property Index Fund Class A Sygnia Top 40 Index Fund Class A Sygnia SWIX Index Fund Class A Sygnia Active Equity Fund Class A Sygnia International Flexible Fund of Funds Class A Sygnia Africa Equity Fund Class A Sygnia Value Fund Class A Sygnia All Bond Index Fund Class A Sygnia Growth Equity Fund Class A Sygnia Skeleton International Equity Fund of Funds Class A Sygnia Skeleton Worldwide Flexible Fund Class A Sygnia Money Market Fund Class A Sygnia 4th Industrial Revolution Global Equity Fund Class A Performance figures, unit prices and distributions history are shown for the primary unit class of each fund. Some of the funds were not in existence at distribution dates and will therefore have no distribution. Performance figures, unit prices and distribution for other unit classes are available from Client Service on request. SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

17 DISTRIBUTION 31 MAR 2017 CENTS PER UNIT 30 SEP 2017 CENTS PER UNIT 31 MAR 2016 CENTS PER UNIT 30 SEP 2016 CENTS PER UNIT Sygnia CPI + 2% Fund Class A Sygnia CPI + 4% Fund Class A Sygnia CPI + 6% Fund Class A Sygnia Equity Fund Class A Sygnia Skeleton Balanced 70 Fund Class A Sygnia Skeleton Balanced 60 Fund Class A Sygnia Skeleton Balanced 40 Fund Class A Sygnia DIVI Index Fund Class A Sygnia Listed Property Index Fund Class A Sygnia Top 40 Index Fund Class A Sygnia SWIX Index Fund Class A Sygnia Active Equity Fund Class A Sygnia Africa Equity Fund Class A Sygnia Value Fund Class A Sygnia All Bond Index Fund Class A Sygnia Growth Equity Fund Class A Sygnia Skeleton International Equity Fund of Funds Class A Sygnia Skeleton Worldwide Flexible Fund Class A Sygnia 4th Industrial Revolution Global Equity Fund Class A - - N/A N/A SYGNIA MONEY MARKET FUND CLASS A MONTHLY DISTRIBUTIONS CENTS PER UNIT 30 September August July June May April March February January December November October SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

18 TOTAL EXPENSE RATIO Sygnia CPI + 2% Fund Class A 1.34% Sygnia CPI + 4% Fund Class A 1.41% Sygnia CPI + 6% Fund Class A 1.45% Sygnia Equity Fund Class A 1.29% Sygnia Skeleton Balanced 70 Fund Class A 0.48% Sygnia Skeleton Balanced 60 Fund Class A 0.48% Sygnia Skeleton Balanced 40 Fund Class A 0.53% Sygnia DIVI Index Fund Class A 0.53% Sygnia Listed Property Index Fund Class A 0.48% Sygnia Top 40 Index Fund Class A 0.46% Sygnia SWIX Index Fund Class A 0.46% Sygnia Active Equity Fund Class A 1.88% Sygnia International Flexible Fund of Funds Class A 1.52% Sygnia Africa Equity Fund Class A 1.30% Sygnia Value Fund Class A 0.96% Sygnia All Bond Index Fund Class A 0.41% Sygnia Growth Equity Fund Class A 1.41% Sygnia Skeleton International Equity Fund of Funds Class A 0.64% Sygnia Skeleton Worldwide Flexible Fund Class A 0.52% Sygnia Money Market Fund Class A 0.31% Sygnia 4th Industrial Revolution Global Equity Fund Class A 1.23% SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

19 ASSET ALLOCATION 2017 LOCAL BONDS LOCAL BOND UNIT TRUSTS FOREIGN BONDS UNIT TRUSTS FOREIGN FOREIGN CASH EQUITY FOREIGN EQUITY UNIT LOCAL TRUSTS CASH LOCAL EQUITY LOCAL EQUITY UNIT TRUSTS LOCAL LOW EQUITY UNIT TRUSTS LOCAL MONEY MARKET LOCAL MONEY MARKET UNIT TRUSTS LOCAL PROPERTY TOTAL Sygnia CPI + 2% Fund Class A 7.10% 15.65% 1.21% 0.72% % 3.29% 0.66% 20.09% 8.19% 13.31% 13.34% % Sygnia CPI + 4% Fund Class A 4.95% 6.88% 1.64% 1.19% % 2.23% 14.21% 30.88% 10.18% 5.58% 5.57% % Sygnia CPI + 6% Fund Class A 4.57% 5.11% % % 2.39% 21.16% 34.06% 8.09% % % Sygnia Equity Fund Class A % 40.70% 58.23% % Sygnia Skeleton Balanced 70 Fund Class A 0.01% 11.70% 1.70% 0.47% % 4.06% 56.11% 9.51% 3.68% % Sygnia Skeleton Balanced 60 Fund Class A 21.84% % 0.44% % 5.60% 34.67% % % % Sygnia Skeleton Balanced 40 Fund Class A 0.07% 21.75% 3.79% 0.79% % (0.53%) 23.26% 4.07% 14.91% % % Sygnia Money Market Fund Class A % % % Sygnia DIVI Index Fund Class A % 99.53% % Sygnia Listed Property Index Fund Class A % 98.96% % Sygnia Top 40 Index Fund Class A % 99.56% % Sygnia SWIX Index Fund Class A % 99.61% % Sygnia Active Equity Fund Class A % 96.99% % Sygnia International Flexible Fund of Funds Class A % 0.00% % 1.44% % Sygnia Africa Equity Fund Class A % 94.77% % % Sygnia Value Fund Class A % 96.27% % Sygnia All Bond Index Fund Class A 99.93% % % Sygnia Growth Equity Fund Class A % 99.02% % Sygnia Skeleton International Equity Fund of Funds Class A % 0.25% % Sygnia Skeleton Worldwide Flexible Fund Class A % 3.49% 0.85% % 21.38% % 3.14% % 4.01% % Sygnia 4th Industrial Revolution Global Equity Fund Class A % 99.93% % % SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

20 MANAGER CHARGES (INCL. VAT) PERCENTAGE Sygnia CPI + 2% Fund Class A 1.71% Sygnia CPI + 4% Fund Class A 1.71% Sygnia CPI + 6% Fund Class A 1.71% Sygnia Equity Fund Class A 1.03% Sygnia Skeleton Balanced 70 Fund Class A 0.40% Sygnia Skeleton Balanced 60 Fund Class A 0.40% Sygnia Skeleton Balanced 40 Fund Class A 0.40% Sygnia DIVI Index Fund Class A 0.40% Sygnia Listed Property Index Fund Class A 0.40% Sygnia Top 40 Index Fund Class A 0.40% Sygnia SWIX Index Fund Class A 0.40% Sygnia Active Equity Fund Class A 0.91% Sygnia International Flexible Fund of Funds Class A 1.25% Sygnia Africa Equity Fund Class A 0.90% Sygnia Value Fund Class A 0.91% Sygnia All Bond Index Fund Class A 0.40% Sygnia Growth Equity Fund Class A 0.91% Sygnia Skeleton International Equity Fund of Funds Class A 0.65% Sygnia Skeleton Worldwide Flexible Fund Class A 0.60% Sygnia Money Market Fund Class A 0.29% Sygnia 4th Industrial Revolution Global Equity Fund Class A 0.80% SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT

21 COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT CAPE TOWN 7th Floor, The Foundry Cardiff Street Green Point 8001 South Africa T: +27(0) F: +27(0) E: JOHANNESBURG Unit 40, 6th Floor Katherine and West building West Street Sandton 2196 T: +27 (0) F: +27 (0) E: DURBAN Office 2, 2nd Floor Ridgeview 1 Nokwe Avenue Ridgeside Umhlanga Ridge E: info@sygnia.co.za SYGNIA COLLECTIVE INVESTMENT SCHEME ABRIDGED ANNUAL REPORT 2017