2017 FINANCIAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2017

Transcription

1 2017 FINANCIAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2017

2 AGENDA 1. FINANCIAL HIGHLIGHTS 2. BUSINESS OVERVIEW 3. BUSINESS UPDATE INSTITUTIONAL RETAIL 4. LOOKING AHEAD 5. QUESTIONS

3 FINANCIAL HIGHLIGHTS

4 FINANCIAL HIGHLIGHTS STATEMENT OF PROFIT OR LOSS Assets under management and administration 12 MONTHS TO 30 SEPTEMBER MONTHS TO 30 SEPTEMBER 2016 % CHANGE R bn R bn 16.0% Revenue R m R m 20.6% Expenses R m R m 16.1% Profit before tax R m R m 32.2% Profit after tax R 92.5 m R 72.3 m 28.0% Headline earnings R 92.5 m R 72.3 m 28.0%

5 SYGNIA S REVENUE STREAM IS INCREASINGLY DIVERSIFIED BASED ON ITS ASSET MIX ASSET ALLOCATION AS AT 30 SEPTEMBER 2017 International incl. Africa 34% SA Equity 29% SA FoHF 3% SA Listed Property 5% SA Money Market 11% SA Bonds 18%

6 REVENUE BREAKDOWN BY LINE OF BUSINESS % BREAKDOWN OF REVENUE Asset Management 74.0% Investment, liability and LISP administration 16.8% Stockbroking and other 9.2%

7 FINANCIAL HIGHLIGHTS COST ANALYSIS 12 MONTHS TO 30 SEPTEMBER MONTHS TO 30 SEPTEMBER 2016 Total operating expenses R m R m MAJOR CONTRIBUTORS: Staff costs R m R 91.4 m Management fees to third party asset managers by Sygnia Collective Investments RF R 37.0 m R 44.1 m Rental and related R 15.4 m R 13.1 m Professional services and fees R 22.5 m R 13 m Marketing R 15.8 m R 6.6 m

8 FINANCIAL HIGHLIGHTS EARNINGS AND DIVIDENDS Headline earnings per share (cents) Diluted headline earnings per share (cents) Interim dividend per share (cents) 12 MONTHS TO 30 SEPTEMBER MONTHS TO 30 SEPTEMBER 2016 % CHANGE % % Final dividend per share (cents) % Total dividend per share (cents) % SHARES IN ISSUE Shares in issue % Weighted average number of shares in issue %

9 FINANCIAL HIGHLIGHTS DIVIDEND DECLARATION Sygnia is committed to rewarding its shareholders with regular distributions of free cash flow generated. Accounting for projected cash requirements, a gross dividend (No. 4) for the period ended 30 September 2017 of cents per share has been declared out of retained income, resulting in a net dividend of cents per share for shareholders subject to Dividends Tax ( DT ). In compliance with the JSE Listings Requirements, the following dates are applicable: Last day to trade: Tuesday, 19 December 2017 Shares trade ex-dividend: Wednesday, 20 December 2017 Record date: Friday, 22 December 2017 Payment date: Wednesday, 27 December 2017

10 FINANCIAL HIGHLIGHTS STATEMENT OF FINANCIAL POSITION (CORPORATE) BALANCE SHEET AT 30 SEPTEMBER 2017 R 000s AT 30 SEPTEMBER 2016 R 000s ASSETS Intangible assets R R Property and Equipment R R Deferred tax asset R R Investments R R Loans receivable R R Taxation receivable R R 994 Trade and other receivables R R Cash and cash equivalents R R TOTAL ASSETS R R TOTAL EQUITY R R

11 FINANCIAL HIGHLIGHTS STATEMENT OF FINANCIAL POSITION (CORPORATE) BALANCE SHEET AT 30 SEPTEMBER 2017 R 000s AT 30 SEPTEMBER 2016 R 000s LIABILITIES Bank overdraft R 51 R 492 Deferred tax liabilities R R Taxation payable R R 704 Trade and other payables R R Loans payable R TOTAL LIABILITIES R R TOTAL EQUITY AND LIABILITIES R R

12 BUSINESS OVERVIEW

13 SYGNIA LIMITED A JSE-listed financial services group offering a range of investment management solutions and administration services to institutional and retail clients in South Africa and abroad. SYGNIA LIFE SYGNIA ASSET MANAGEMENT SYGNIA SYSTEMS SYGNIA COLLECTIVE INVESTMENTS SYGNIA FINANCIAL SERVICES SYGNIA SECURITIES SYGNIA EMPLOYEE BENEFITS SYGNIA ITRIX 2nd LARGEST MULTI-MANAGEMENT COMPANY IN SOUTH AFRICA R184 BILLION IN ASSETS UNDER MANAGEMENT AND ADMINISTRATION AT 30 SEPTEMBER 2017 TECHNOLOGY LEADERSHIP TEAM STABILITY MARKET DISRUPTOR 66% STAFF AND MANAGEMENT OWNED (INCLUDING BEE STAFF SCHEME) R1.2 BILLION PI COVER 181 STAFF IN CAPE TOWN, JOHANNESBURG AND DURBAN ADVISORS External auditors: Deloitte ISAE3402 Type II audit: Deloitte Insurance advisors: Marsh Financial Internal auditors: PWC

14 WHAT WE DO ASSET MANAGEMENT We manage assets on behalf of South African institutional and retail investors. We offer: Multi-manager funds Index-tracking funds Funds of SA hedge funds (FoHFs) INVESTMENT ADMINISTRATION We provide investment administration services to South Africa, UK and USA based institutional clients. Investment administration Liability administration LISP SAVINGS PRODUCTS Retail savings products (living annuities, preservation funds, RAs) Unitised products (pooled portfolios, unit trusts) Sygnia Umbrella Retirement Fund (SURF) SUPPORT BUSINESSES Sygnia Securities Sygnia RoboAdvisor

15 SYGNIA BOARD OF DIRECTORS MAGDA WIERZYCKA CHIEF EXECUTIVE OFFICER BBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP FIFM 24 years experience HAROON BHORAT NON-EXECUTIVE CHAIRPERSON PhD (Economics) SHIRLEY ZINN INDEPENDENT NON-EXECUTIVE DIRECTOR BA, HDip (Education), BEd Hons, MEd, EdM (Harvard), EdD (Harvard) MIKE BUCKHAM FINANCIAL DIRECTOR BBusSc (Finance), PGDA, CA (SA), CFA 21 years experience KEN HOPKINS INDEPENDENT NON-EXECUTIVE DIRECTOR Bcom (Hons), CA (SA) KAIZER MOYANE INDEPENDENT NON-EXECUTIVE DIRECTOR BA, LLB

16 SYGNIA MANAGEMENT TEAM STRONG AND EXPERIENCED MANAGEMENT TEAM SUPPORTS THE OPERATIONS OF SYGNIA NAME QUALIFICATION JOB TITLE & ROLE EXPERIENCE Magda Wierzycka BBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP FIFM Chief Executive Officer 24 years Niki Giles BBuscSc (Finance), CA (SA), CFA Chief Operating Officer 19 years Iain Anderson BMath (Hons), CFA Head: Investments 16 years Duane Gilbert BBusSc (Actuarial Science) Head: Manager Research 8 years Mike Buckham BBusSc (Finance), PGDA, CA (SA), CFA Financial Director 21 years Glen MacLachlan BBusSc (Hons), LLB Attorney of the High Court Head: Legal 18 years Wojtek Wierzycki MCSE Head: IT and Systems 18 years Andrew Steyn BCom (Economics) Head: Client Relations 24 years Cher Leetjer BTech (Marketing) Head: Institutional Marketing 17 years David Hufton BEconSc (Actuarial), FASSA, FIA Head: Strategic Projects 27 years Ben Meyer BCom (Hons: Econometrics) Head: Sygnia Itrix 22 years Darryl Moodley BBusSc (Actuarial Science and Quantitative Finance) Head: Consulting 10 years Bianca Goodson BSc (Hons) Executive Manager 13 years Charlene Swartz MCom (Accounting), BBusSc (Hons in Finance), BCom (Hons in Accounting), CA (SA) Head: Retail Administration 16 years Marlene Budge BCom (Hons in Economics) Co-head: Institutional Administration 25 years Coleen Viljoen BCom (Hons in Accounting), CA (SA) Head: Retail Fund Administration 16 years Vicky Theron BCom (Hons in Accounting Science), CA (SA) Co-head: Institutional Administration 9 years

17 ASSETS UNDER MANAGEMENT AND ADMINISTRATION SEP 07 SEP 08 R4.7bn R4.5bn SEP 09 R40.5bn SEP 10 R62.7bn SEP 11 SEP 12 R70.4bn R82.7bn R4.5bn SEP 13 R103bn R5.9bn SEP 14 R105.1bn R7.5bn SEP 15 R127.9bn R8.7bn SEP 16 SEP 17 R147.2bn R11.2bn R159.7bn R11.6bn R12.3bn SYGNIA INSTITUTIONAL SYGNIA RETAIL SYGNIA ETFs

18 BUSINESS HIGHLIGHTS TO 30 SEPTEMBER 2017 Entry into the ETF market with the acquisition of db X-trackers (RF) Proprietary Limited (DBX) from Deutsche Bank, renamed Sygnia Itrix (RF) Proprietary Limited (added R12bn to AuM). LAUNCH OF INNOVATIVE NEW PRODUCTS: Sygnia 4th Industrial Revolution Global Equity Fund: returned 41.8% in its first year Sygnia ForLife Annuity: a unique post-retirement savings solution New ETFs: Sygnia Itrix Top 40, SWIX 40, Global Property and S&P500 STRONG INVESTMENT PERFORMANCE (INSTITUTIONAL AND RETAIL): Sygnia Signature and Skeleton products into the first quartile of major performance surveys over 1, 3 and 5 years Sygnia SWIX Unit Trust is the 17th top-performing unit trust out of 112 unit trusts in South Africa (Source: MoneyMate) Sygnia becomes the 2nd largest passive asset manager in South Africa based on third party AuM. Growth in the awareness of Sygnia s brand due to our anti-corruption on stance.

19 MARKET ENVIRONMENT

20 INSTITUTIONAL MARKET KEY POINTS CONTAINED IN DEFAULT REGULATION: All retirement funds have to put default investment, preservation and retirement strategies in place for members. Index tracking must be considered alongside active management. Costs must be considered. Retirement funds have to provide benefit counselling to members. THE IMPACT OF DEFAULT REGULATION IS EXPECTED TO BE HUGELY BENEFICIAL TO SYGNIA: Index tracking has become a real factor in decision making (Sygnia Signature products are well-positioned for this by blending active and index tracking strategies). s). Sygnia Robo-advisor is a cost-free way of providing benefit counselling to members, which constitutes proper advice under the FAIS Act. Sygnia ForLife Annuity is an innovative post-retirement default solution. Increased regulatory risk has increased the impetus on standalone funds to collapse into umbrella funds.

21 INSTITUTIONAL MARKET OTHER TRENDS WE ARE SEEING: In a low return environment, costs matter more (margin squeeze continues). Most asset flows in the past year have been driven by movement towards umbrella funds, rather than switching asset managers agers as most boards of trustees were totally unprepared for seeing single-digit returns. Market consolidation continues e.g. Sanlam acquired Absa C&A to merge with Simeka, Investment Solutions (AF Investments) absorbs AF Asset Consulting. Most competitors are focusing on cost-cutting initiatives and expansion into the retail space. Barriers to entry for new active asset managers are higher than before. Draft directive prohibiting boards of trustees, administrators and other officers of retirement funds from accepting gifts from service providers.

22 RETAIL MARKET Awaiting RDR it will eliminate extra incentives paid by many LISPs to financial advisors in the form of distribution fees, bonuses and loyalty programmes as Sygnia does not offer any such incentives it is more difficult to attract IFAs DFMs are becoming more important as IFAs move away from white-labelled funds to customised model portfolios (Sygnia acts as a DFM for its LISP platform) Awareness of index tracking is increasing, but most flows are still from direct clients and most target ETFs we hope to change that given the strong performance of the Sygnia SWIX Index unit trust Increased awareness of Sygnia s brand is resulting in enhanced flows as clients are asking their IFAs to use Sygnia

23 DIVISIONAL HIGHLIGHTS

24 SYGNIA UMBRELLA RETIREMENT FUND (SURF) LAUNCHED SYGNIA UMBRELLA RETIREMENT FUND (SURF) ON 1 MAY 2016 COST OF SURF: 0.39% P.A. TO 0.92% P.A. (INCL. VAT) ONE ALL-IN PRICING MODEL: No administration fee No consulting fee Asset management fees only (restricted choice of investment products) SURF IS GAINING TRACTION: AuM as at 1 May 2016: R1.2 billion AuM as at 30 September 2017: R2.4 billion (R1.2 billion awaiting regulatory approval) Number of new participating employers in past 12 months: 30 SURF is supported by a leading-edge technology platform, which links retirement savings to discretionary savings (LISP platform has been expanded to service SURF members). mbers).

25 SYGNIA ITRIX ACQUIRED DBX ON 1 JULY 2017, RENAMED SYGNIA ITRIX RATIONALE Increased passive AuM to R32.1 billion as at 30 September 2017 (2016: R billion) to become 2nd largest passive manager in South Africa based on third party assets Added US dollar based revenue stream to earnings as 5 db X-trackers acquired reference foreign assets Immediate earnings enhancing acquisition: added R9.7 million to net profit after tax in 3 months (excluding finance costs) Opportunity to grow the awareness of Sygnia s brand among over retail investors currently investing in Sygnia Itrix ETFs Added clients to Sygnia s LISP platform (successfully transferred from AOS), increasing awareness of Sygnia s brand and products Allowed Sygnia to launch low-cost domestic ETFs, competing with Satrix in the retail market Allowed Sygnia to switch its international passively-managed assets from BlackRock into its own products.

26 RETAIL ASSET MANAGEMENT AND ADMINISTRATION BUSINESS Sygnia has a comprehensive product range supported by a technologically strong LISP platform we are seeing increasing support from IFAs and direct clients AuM: R24.3 bn (2016: R11.3 bn) LISP Clients: (2016: 5 981) RISK PROFILE MULTI-MANAGER UNIT TRUSTS PASSIVELY MANAGED UNIT TRUSTS FUNDS OF HEDGE FUNDS ETFS HIgH RISk CPI + 6% Fund Skeleton Balanced 70 Fund MoDERaTE RISk CPI + 4% Fund Skeleton Balanced 60 Fund All-Star FoHFs, Signature FoHs LoW RISk CPI + 2% Fund Skeleton Balanced 40 Fund Absolute FoHFs OTHER International Flexible FoFs Skeleton International Equity FoFs Sygnia Itrix MSCI World Equity Fund Top 40 Index Fund Sygnia Itrix Eurostoxx50 Africa Equity Fund Divi Index Fund Sygnia Itrix FTSE100 Money Market Fund SWIX Index Fund Sygnia Itrix MSCI US Listed Property Index Fund Sygnia Itrix MSCI Japan All Bond Index Fund Sygnia Itrix Top 40 Skeleton Worldwide Flexible Fund Sygnia Itrix SWIX 40 4th Industrial Revolution Global Equity Fund Sygnia Itrix Global Property

27 UNIT TRUST PERFORMANCE KEY PERFORMANCE ACHIEVEMENTS SYGNIA SKELETON BALANCED 70 FUND Ranked 22nd out of 103 unit trusts,* most of them actively managed South African Multi-Asset High Equity category from October 2013 to September SYGNIA SKELETON BALANCED 60 FUND Ranked 4th out of 58 unit trusts,* most of them actively managed, in the South African Multi-Asset Medium Equity category from May 2014 to September SYGNIA SKELETON BALANCED 40 FUND Ranked 12th out of 94 unit trusts,* most of them actively managed, in the South African Multi-Asset Low Equity category from March 2014 to September SYGNIA SWIX INDEX FUND Ranked 17th out of 112 unit trusts,* most of them actively managed, in the South African Equity General category from October 2013 to September SYGNIA TOP 40 INDEX FUND Ranked 4th out of 13 unit trusts,* most of them actively managed, in the South African Equity Large Cap category from November 2013 to September SYGNIA ACTIVE EQUITY FUND Ranked 51st out of 123 unit trusts,* an actively-managed equity unit trust, in the South African Equity General category from July 2014 to September SYGNIA VALUE FUND Ranked 19th out of 131 unit trusts,* an actively-managed equity unit trust, in the South African Equity General category from January 2015 to September SYGNIA GROWTH FUND Ranked 65th out of 147 unit trusts,* an actively-managed equity unit trust, in the South African Equity General category from January 2016 to September *Source: MoneyMate

28 UNIT TRUST PERFORMANCE KEY PERFORMANCE ACHIEVEMENTS SYGNIA EQUITY FUND Ranked 36th out of 110 unit trusts,* an actively-managed equity unit trust, in the South African Equity General category from August 2013 to September SYGNIA CPI + 2% FUND Ranked 11th out of 101 unit trusts* in the South African Multi-Asset Low Equity category for the 3 years to September SYGNIA CPI + 4% FUND Ranked 5th out of 60 unit trusts* in the South African Multi-Asset Medium Equity category for the 3 years September SYGNIA CPI + 6% FUND Ranked 29th out of 119 unit trusts* in the South African Multi-Asset High Equity category for the 3 years September SYGNIA INTERNATIONAL FLEXIBLE FUND OF FUNDS Ranked 3rd out of 15 unit trusts* in the South African Global Multi-Asset Flexible category over the period since inception in June 2014 to September SYGNIA SKELETON INTERNATIONAL EQUITY FUND OF FUND Ranked 15th out of 41 unit trusts* in the South African Global Equity General category over the period since inception in November 2015 to September SYGNIA 4TH INDUSTRIAL REVOLUTION GLOBAL EQUITY FUND Ranked 2nd out of 46 unit trusts* in the South African Global Equity General category over the period since inception in October 2016 to September *Source: MoneyMate

29 INSTITUTIONAL ASSET MANAGEMENT AND ADMINISTRATION BUSINESS Sygnia has a comprehensive well-performing suite of products and the most advanced investment administration platform in South Africa AuM and AuA: R159.7 bn (2016: R147.1 bn) Investment adminstration service remains in high demand for large clients Specialist index-tracking mandates are starting to attract inflows PROFILE MULTI-MANAGER INDEX TRACKING FUNDS OF HEDGE FUNDS HIgH RISk Signature 70 Fund Skeleton 70 Fund All-Star FoHFs MoDERaTE / HIgH RISk Signature 60 Fund Skeleton 60 Fund MoDERaTE RISk Signature 50 Fund Skeleton 50 Fund Signature FoHFs LoW RISk Signature 40 Fund Skeleton 40 Fund Absolute FoHFs *NOTE: Signature and Skeleton Funds are offered with and without Funds of Hedge Funds exposure

30 INVESTMENT PERFORMANCE LONG-TERM PERFORMANCE CHART TO 30 SEPTEMBER 2017 (Source: Alexander Forbes survey and published data/fact sheets) SYGNIA SIGNATURE 70 FUND SYGNIA SKELETON 70 FUND GLOBAL LARGE MANAGER MEDIAN DEC 2006 JUN 2007 DEC 2007 JUN 2008 DEC 2008 JUN 2009 DEC 2009 JUN 2010 DEC 2010 JUN 2011 DEC 2011 JUN 2012 DEC 2012 JUN 2013 DEC 2013 JUN 2014 DEC 2014 JUN 2015 DEC 2015 JUN 2016 DEC 2016 JUN 2017

31 INVESTMENT PERFORMANCE ALEXANDER FORBES LOW EQUITY MULTI-MANAGER SURVEY TO 30 SEPTEMBER 2017 (Source: Alexander Forbes survey and published data/fact sheets) 3 YEARS *5 YEARS Sygnia Signature 40 Fund 9.6% Sygnia Signature 40 Fund 12.4% Sygnia Skeleton 40 Fund 9.0% old Mutual Inflation Plus 1-3% 12.1% old Mutual Inflation Plus 1-3% 8.9% Sygnia Skeleton 40 Fund 11.4% 27Four CPI +3% 8.6% 27Four CPI +3% 11.4% Momentum Enhanced 4 8.3% af Investments 37.5% Equity 10.2% Momentum Enhanced 3 7.7% Momentum Enhanced 4 9.7% af Investments Low Equity 7.6% af Investments Low Equity 9.4% af Investments 37.5% Equity 7.6% Momentum Enhanced 3 8.6% *Sygnia Skeleton returns prior to inception (17 January 2013) are simulated returns based on reasonable assumptions using similar strategies managed by Sygnia.

32 INVESTMENT PERFORMANCE ALEXANDER FORBES HIGH EQUITY MULTI-MANAGER SURVEY TO 30 SEPTEMBER 2017 (Source: Alexander Forbes survey and published data/fact sheets) 3 YEARS *5 YEARS Sygnia Signature 70 Fund 9.5% Sygnia Signature 70 Fund 14.4% Momentum Classic 7 9.3% Momentum Classic % Momentum Enhanced 7 9.1% Momentum Enhanced % af Investments Performer 9.1% af Investments Performer 13.6% Sygnia Skeleton 70 Fund 8.4% old Mutual aggressive 13.3% old Mutual aggressive 8.0% Sygnia Skeleton 70 Fund 13.0% af Investments Spectrum 7.5% af Investments High Equity 12.2% af Investments High Equity 7.5% SMM % SMM % af Investments Spectrum 11.9% *Sygnia Skeleton returns prior to inception (17 January 2013) are simulated returns based on reasonable assumptions using similar strategies managed by Sygnia.

33 INVESTMENT PERFORMANCE ALEXANDER FORBES GLOBAL LARGE MANAGER SURVEY TO 30 SEPTEMBER 2017 (Source: Alexander Forbes survey and published data/fact sheets) 3 YEARS *5 YEARS Investec 10.7% Sygnia Signature 70 Fund 14.4% Sygnia Signature 70 Fund 9.5% Coronation 14.1% allan gray 9.2% Investec 13.9% Prudential 9.1% Prudential 13.6% Coronation 8.7% allan gray 13.6% omigsa 8.7% Sygnia Skeleton 70 Fund 13.0% SIM 8.5% SIM 12.5% Sygnia Skeleton 70 Fund 8.4% Foord 12.3% MMI 8.2% global Large Manager Median 12.3% global Large Manager Median 7.9% omigsa 12.3% Foord 7.8% MMI 12.1% absa 7.2% oasis 11.4% Stanlib 5.8% absa 11.0% oasis 5.8% Stanlib 10.6% *Sygnia Skeleton returns prior to inception (17 January 2013) are simulated returns based on reasonable assumptions using similar strategies managed by Sygnia.

34 SYGNIA SECURITIES SIGNIFICANT CONTRIBUTION TO EARNINGS BASED ON: Transacting on behalf of all of Sygnia s index-tracking products (unit trusts and ETFs) Transition management on behalf of: Large institutional clients Sygnia s institutional products Sygnia s unit trusts Benefits accruing from the acquisition of Sygnia Itrix clients who invest in Sygnia Itrix ETFs, via Sygnia LISP, use Sygnia Securities automatically

35 LOOKING AHEAD

36 PLANS FOR 2018: WE HAVE NEVER BEEN MORE EXCITED ABOUT OUR PROSPECTS Launch of innovative ETFs (domestic and international) International organic expansion through the launch of innovative products and distribution of those in the UK e.g. Sygnia 4th Industrial Revolution Global Equity Fund Increasing the size of SURF through acquisitions and strategic partnerships Launch of an innovative retail distribution model, which should gain traction relatively quickly and enhance Sygnia s retail AuM Rebranding of Sygnia to better reflect the international trend towards consumer-friendly advertising Significant expansion of Sygnia s retail sales team to translate the increasing awareness of Sygnia s brand into an awareness of its product offering Expansion of Sygnia Securities capabilities

37 QUESTIONS

38 DISCLAIMER SYGNIA LIMITED ( SYGNIA ) IS A SPECIALIST FINANCIAL SERVICES GROUP HEADQUARTERED IN SOUTH AFRICA THAT FOCUSES ON THE PROVISION OF INVESTMENT MANAGEMENT AND ADMINISTRATION SOLUTIONS TO INSTITUTIONAL AND RETAIL CLIENTS LOCATED PREDOMINANTLY IN SOUTH AFRICA. The information and opinions contained in this presentation are of a general nature and are not intended to address the circumstances of a particular individual or entity. The information in this presentation is not intended, nor does it constitute, financial, tax, legal, investment, or other advice. Sygnia does not act as an advisor or in a fiduciary capacity towards the recipient(s). Whilst reasonable care was taken to ensure that the information contained in this presentation is accurate, Sygnia does not warrant its accuracy and accepts no liability in respect of any damages and/or loss suffered as a result of reliance on the information in this presentation. Sygnia s business procedures, processes and policies and its business structure may change from time to time and may differ at certain times from that presented herein. Where information has been provided on investments, please note that different investments may have different risks associated with them. In particular, fund of hedge fund products may pose risks that are different to those associated with investments in traditional asset classes. Full disclosure of all risks associated with the investments and investment strategies contained in this presentation (and in particular the specific risks associated with investments into funds of hedge funds) is available on request from Sygnia, and no decision regarding investments should be taken without having obtained professional advice thereon, and without having investigated the risks inherent thereto. COPYRIGHT AND CONFIDENTIALITY: This presentation and its content is owned by the Sygnia Group and is protected by copyright and other intellectual property laws. All rights not expressly granted are reserved. This presentation contains confidential information and is intended only for the individuals who were present at this presentation or who received a copy of this presentation directly from Sygnia. The purpose of the confidential information presented is solely to enable an assessment of the services provided by Sygnia and may not be used for any other purpose. The confidential information contained herein may not be distributed or reproduced for any reason whatsoever without first having obtained Sygnia s express written permission to do so. Any breach of Sygnia s confidentiality requirement may result in damages and/or financial loss to Sygnia and Sygnia reserves the right to recover such damages or loss from any person or entity that is in breach of this requirement. INTER-GROUP RELATIONSHIPS: Financial products such as policies of insurance and/or collective investment schemes described in this presentation are issued by Sygnia Life Limited and Sygnia Collective Investments RF, companies that are related by common shareholding to Sygnia. Sygnia has a conflict of interest policy to manage any potential conflicts of interest that may occur. This policy is available on request. FINANCIAL SERVICE PROVIDERS IN THE GROUP: Sygnia Asset Management: CAT II/IIA Discretionary FSP (FSP Registration No. 873) Sygnia Life Limited: CAT I/II/IIA FSP (FSP Registration No. 2935) Sygnia Financial Services: CAT I/II/III LISP and approved Section 13 B Administrator (FSP Registration No ) Gallet Retirement Fund Administrators: CAT I FSP and approved Section 13 B Administrator (FSP Registration No and Section 13 B Registration No. 24/80) Gallet EB Support Services: CAT I FSP (FSP Registration No. 5667) Sygnia Securities: CAT I FSP and member of the JSE (FSP Registration tion No ) INFORMATION REGARDING SYGNIA: Physical Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001 Postal Address: PO Box 51591, Waterfront, 8002 Tel: Fax: info@sygnia.co.za