Investments for Stokvel Groups. umakhulisa Inzalo

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1 Investments for Stokvel Groups umakhulisa Inzalo

2 About Alexander Forbes Investments $$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$ 2 We exist to grow and protect our clients money by providing investment expertise. We started in Today we look after over 341 billion company pension and retirement funds invest their money with us individuals invest their money with us. Investments for Stokvel groups and societies. Our investments are managed by qualified professionals. Alexander Forbes Investments is one of the biggest investment managers in South Africa, looking after more than 341 billion of clients investments (as at 30 Sep 2016). We manage many big pension funds and retirement investments, as well as investments for Stokvel and society groups. Alexander Forbes Investments is a registered financial services company and is owned by the Alexander Forbes group. We are a PEFFEED POVIDE of NASASA (National Stokvel Association of South Africa).

3 Investing your Stokvel money Do you want to grow your Stokvel money? We understand that your Stokvel wants to make your money work for you so that you can achieve your financial dreams together. We understand why you joined a Stokvel and we want to assist you to ensure the solution for your investment is for the whole group. Saving Your Stokvel or society can save money by keeping it in a bank account, earning little to no interest at all, resulting in it being weakened by inflation. Inflation is when the cost of things we buy increases every year, meaning you can buy less with the money you have saved. 3 Investing Investing your money means that it has the opportunity to grow faster than inflation. These investments can be things like shares in companies, property, retail savings bonds or money market. You need to be patient to let your money grow as your investments may go up and down from day to day, but over time, they are likely to grow much more than just keeping your money in your bank account. 07:23

4 The Stokvel investment solution for your group Our unit trust investments for Stokvel groups are managed by professionals. What is a unit trust? A unit trust is an affordable and easy way for people to invest their money. A professional investment manager looks after this money for you and chooses where to invest it (shares in companies, property, retail savings bonds or money market). A unit trust is flexible, meaning you can put money in and take money out when you want to, at no cost.* What are the benefits of investing in an Alexander Forbes Investments Unit Trust? E.g. 5 x Contributions Freedom of Choice Easy Access You only need 500 a month per group O a lump sum per group to invest in our unit trust. You can choose an investment package to suit your group s needs. You can withdraw some or all of your money within 24 hours, with no penalties.* Lower Fee Professional Investment Manager We are egulated We do not charge extra administration fees on the investment. We only charge an annual investment fee as a percentage of your investment. Professional investment managers look after your investment, giving you more peace of mind. We are regulated by the Financial Services Board. *Subject to regulatory limitations and all requirements being met.

5 Choosing a unit trust We know Stokvels and societies are not all the same, they have different needs. Like tailor-made clothing, your investment should be designed around your Stokvel s unique needs and plans. The longer you invest, the more your Stokvel is likely to earn, but that is up to your Stokvel to decide. To choose a unit trust that meets your group s needs, you should consider things, such as: How long you can stay invested for: The longer your group stays invested, the greater the chance of beating inflation and achieving your group s investment goal. Your cash needs: Your group needs to consider if you need this money for emergency claims, withdrawals, or deaths. If you do, it means you need a lower risk investment for this money. Emotional factors: Investment markets will go up and down from day to day. The more growth your group wants, the more comfortable you need to be with these ups and downs in the short term. Each Stokvel can choose the unit trust portfolio that suits them best. See three example groups below and the unit trust that they chose: Grocery Group AF Investments Superior Yield Unit Trust Safe Growth Jan 17 Mar 17 Jun 17 Sep 17 Dec 17 - Invest for 12 months. - Want better interest than the bank. - Safe growth. Burial Society Objectives = AF Investments Stable Fund of Funds - ecommended invested term = 12 months +. - Earn better interest than money-market investments - Low risk Steady Growth They have excess money that they want to invest for 3 years + - Comfortable with some risk - Stable growth Objectives = - ecommended investment term = 3 years + - Protect your money and earn steady growth - Moderate risk Investment Club AF Investments Performer Managed Unit trust Moderate-high Growth Want to invest for the long term - Want to build wealth - Very comfortable with risk Objectives = - ecommended investment term = 5 years + - Long-term, superior growth - Moderate-high risk

6 How to apply If you need help, speak to your financial adviser, or call our contact centre on , or us on You can also SMS STOKVEL to for free. STEP 1 STEP 2 STEP 3 Choose the unit trust portfolio that Make sure your group has a Stokvel/Society bank account; you must get proof of this bank account. Choose your 3 representatives suits your Stokvel best. who can sign on behalf of your group. E.g. 5 x F FO OO P APPLICATION FOM E NC IDE S E STEP 4 STEP 5 STEP 6 Your group representatives must provide a copy of ID and proof of residence. You must also provide your group s constitution. Decide how much and how often your group wants to invest. For example, monthly (at least 500/month) and/or a lump sum (at least ). Complete the application form, and give us all of the above information and documents and any additional information required. For more information on these unit trusts and other unit trusts offered by us that may work for you, please read the Minimum Disclosure Documents. You can find them on this link: or from your financial adviser.

7 Terms and Conditions Important information to know about your investment This section contains important information that you must know about your investment, in terms of the Collective Investment Schemes Control Act (CISCA) and the Financial Advisory and Intermediary Services Act (FAIS). This information is not advice, as defined in FAIS. Please speak to your financial adviser, if you have any questions about this information, or about your investment. About the investment Unit trust investments (called collective investment schemes) are generally medium-term to long-term investments. So the longer you remain in the unit trust, the greater the chance of your investment achieving its specific investment goal. Your investment can go up or down 1. The value of units (known as participatory interests) in a unit trust may go down as well as up. 2. The way that a unit trust has performed in the past is not necessarily a guide to how it will perform in the future. 3. The capital value and investment returns of your unit trust may go up or down. The manager may not provide any guarantees about either the capital or the returns of a unit trust. 4. Exchange rates may go up and down (referred to as fluctuation). This can cause the value of international investments to go up or down. isks of investing in unit trusts that invest in foreign securities 1. Investing in a currency other than South African and might expose you to foreign-exchange risk. 2. International securities (for example, bonds, shares, property, etc.) might have extra risk depending on the specific risks that affect that country. Examples of these risks are: Liquidity constraints (converting an asset into cash) epatriation of funds (bringing the money back into South Africa) Macroeconomic risks (the economic problems of a specific country) Political risks Foreign-exchange risks like the risk of an investment s value changing due to changes in currency exchange rates Tax risks like new taxes introduced in other countries that are out of our hands Settlement risks like a counterparty does not deliver on a share Market information specific to a country might not be available Unit prices and portfolio values 1. We use forward pricing. This means we buy and sell the units at the net asset value (NAV) of the units at the pricing time. 2. Prices are published daily in the Business eport (South Africa s National Financial Daily) and are made available on our website 3. We value all unit trusts at the end of every business day, using the latest available prices at close of business. 4. The cut-off time for giving us instructions to buy or sell units is 13:00 (or 1pm). Fees and charges for this investment 1. Unit trusts have different classes of annual service fees and each class has different fees and charges. The fees and charges of the class that your investment falls into, is set out on its Minimum Disclosure Document (or fact sheet) and on the schedule of fees, charges and maximum commissions. 2. A fund of funds, for example, the AF Investments Stable Fund of Funds, is a portfolio that invests in portfolios of collective investment schemes. These portfolios charge their own fees. This can mean higher fees for the fund of funds. 3. A feeder fund, for example, the AF Investments US Dollar Feeder Fund, is a portfolio that invests in a single portfolio of collective investment scheme. This portfolio charges its own fees. This can mean higher fees for the feeder fund. 4. The yield of the AF Investments Superior Yield Unit Trust is historic. We calculate it quarterly. 5. Alexander Forbes Investments does not charge a performance fee for this investment. 6. A schedule of fees, charges and maximum commissions is available on request from the manager and on the website Products-Services/Individual-Investments-Unit-Trust-Fees. 7 About managing the portfolio 1. The portfolio may borrow up to 10% of the unit trust s market value from any appropriate financial institution in order to bridge insufficient liquidity. 2. The portfolio can borrow and lend scrip. This means we are allowed to lend out the underlying assets of the unit trust. 3. The manager has the right to close the AF Investments Performer Managed Unit Trust and the AF Investments Stable Fund of Funds to new investors to manage them more efficiently, in accordance with their mandates. 4. You can get more information about the proposed investment free of charge from brochures, application forms, the annual report and any half-yearly report. These are available on our website Complaints and conflicts of interest The complaints policy and procedure, and the conflicts of interest management policy are available on our website Compliance/Corporate-Governance. The entities involved in this investment The manager s details are: Alexander Forbes Investments Unit Trusts Limited, egistration no. 2001/015776/06, Telephone , Physical address 115 West Street, Sandown, 2196, AFInvestments@aforbes.co.za, Website Associates of the manager may be invested within certain portfolios. You can get details from the manager. The trustee s details are: Firstand Bank acting through and Merchant Bank Custody & Trustee Services, Telephone +27 (0) , Physical address First Floor, No. 3 First Place, Bank City, Cnr Jeppe & Simmonds Streets, Johannesburg, *The trustee is independent of the investment manager. It acts as the custodian of the portfolios assets and ensures that the unit trust is managed according to the guidelines laid out in the trust deed to minimise the risk of mismanagement by the manager. The manager and the trustee are registered and approved under the Collective Investment Schemes Control Act (No. 45 of 2002). The investment manager s details are: Alexander Forbes Investments Limited, egistration no. 1997/000595/06, is an authorised Financial Services Provider (FSP 711) under the Financial Advisory and Intermediary Services Act (no. 37 of 2002) to act in the capacity as an investment manager. The address is the same as the manager s. There may be representatives of Alexander Forbes Investments Limited acting under supervision. Alexander Forbes Investments Administration Proprietary Limited, egistration no. 2005/043273/07, is an authorised Financial Services Provider (FSP 27584) under the Financial Advisory and Intermediary Services Act (no. 37 of 2002) to act in the capacity as a provider of advice and non-discretionary intermediary services. The address is the same as the manager s. There may be representatives of Alexander Forbes Investments Administration Proprietary Limited acting under supervision. Our holding company Alexander Forbes Limited is a member of the Association for Savings and Investment South Africa (ASISA).

8 JOHANNESBUG, SOUTH AFICA 115 West Street, Sandown, 2196, SA PO Box , Sandton, 2146, SA CALL CENTE: FEE SMS STOKVEL : Alexander Forbes Investments Alexander Forbes Investments