SYGNIA UmbrellA retirement FUNd 2

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2 SYGNIA Umbrella Retirement Fund 2

3 Take your employees surfing. They ll love you for it. We have created an entirely new wave of retirement savings solutions. A wave of solutions perfectly shaped to serve your employees both before and after they retire. Superior investment performance. Comprehensive benefit design. Transparent. Cost-conscious. Highly sophisticated. Yet simple to use. Welcome to the Sygnia Umbrella Retirement Fund. Welcome to SURF. 3

4 One fee. For all. At last. No administration fees. No consulting or transactional fees. No creatively named charges. Just one all-in fee, equivalent to the investment management fees levied by most retirement funds. The fee saving translates into an immediate enhancement to the value of your employees savings. The endless summer SURF is the first umbrella fund solution in the country to provide for your employees retirement savings needs throughout their lifetimes in a comprehensive and cost-effective manner. Umbrella funds are traditionally seen as retirement savings vehicles for pre-retirement savings only. SURF aims to change that. It is the first umbrella fund in South Africa to allow members to retain their membership if they resign from employment or retire. On withdrawal, your employees can seamlessly preserve their savings within the fund, using the same investment options. At retirement, they have access to living and guaranteed annuities provided by the fund. They can invest in combinations of these according to their needs, or follow the default set by the trustees. SURF provides a truly revolutionary approach to managing savings both pre- and post-retirement. 4

5 Fully streamlined We have simplified things wherever possible, empowering your employees to secure a better financial future for themselves. In brief: ffeasily understandable benefit structures ffbest-practice default strategies for investments, preservation and retirement which reflect the spirit of regulatory reform fftransparent and low-fee structures ffleading-edge technologies which provide members and employers with easy access to information This means you can relax, breathe easy, and focus on running your business. 5

6 Ride your own wave SURF offers you the choice of four default life-stage models that expertly blend actively and passively managed riskprofiled portfolios. You select the approach that best suits the needs of your employees. And to make the ride even more comfortable, members may opt out of the employer-selected default and invest in a limited range of multi-manager and single manager investment portfolios of their own choice. There are no extra fees if they do. No switching fees, either. And ride it well We always keep our eyes on the horizon. In our business that means delivering consistent top-quartile investment results year after year. Our unique investment technique recognises the merits of both active and passive approaches to managing money, as well as the importance of diversification and risk management. Result? Investment products that consistently deliver on the promise of peer group outperformance. 6

7 management fees destroy value Recurring charges levied on assets under management are borne by individual investors in the form of lower benefits at retirement. A regular saver who reduces the charges on his retirement account from 2.5% of assets each year to 0.5% of assets annually would receive a benefit 60% greater at retirement after 40 years, all else being equal. For someone who is a member of a preservation fund for 30 years this increases to 80%. Source: National Treasury, Charges in South African Retirement Funds, July % lost to fees 35.7 % lost to fees 47.7 % lost to fees 57.2 % lost to fees 64.5 % lost to fees R RETURN* R RETURN* R RETURN* R RETURN* R RETURN* R RETURN* 0 % FEE 1 % FEE 2 % FEE 3 % FEE 4 % FEE 5 % FEE *Accumulation in real terms of contributions of R1 000 per month, assumed to increase by 6% per annum, totalling R after 40 years, and assuming investment growth of CPI+5% per annum. 7

8 The freedom to choose cover The level of death, disability and funeral benefits are determined by you and insured at the best rates available, reviewed once every three years. SURF is not tied to any insurer. Your own lifeguard A dedicated client relationship manager will assist you and your advisors with all aspects of structuring and managing a sound retirement plan for your employees. 8

9 Perfect visibility SURF is administered using leading-edge investment administration platforms. Daily access to all information is provided to you at the fund level and to your employees at their individual savings level. Our interactive investor platforms and financial planning tools enable members to make informed investment decisions and implement them immediately. A trusty board SURF s board of trustees ensures the sound management of the fund s affairs and the protection of your employees interests. Half the board members are independent of the sponsor, and have been selected based on their professional experience and industry expertise. 9

10 SURF AT A GLANCE COST: One all-in fee as a percentage of assets under management INVESTMENTS DEFAULTS: Life-stage model based on: passive strategies (Sygnia Skeleton Classic and Skeleton Funds) or the best of Sygnia active and passive strategies (Sygnia Signature Classic and Signature Funds) MEMBER INVESTMENT CHOICE OPTIONS: A range of multi-manager and single manager funds RETIREMENT BENEFITS: Life and living annuities paid out of SURF are available, as well as a combination of the two WITHDRAWAL BENEFITS: Preservation within SURF is available CONTRIBUTIONS: Choice of contribution rates as a percentage of salary DEATH BENEFITS: Tailored lump sum multiple of taxable salary RISK BENEFITS: Tailored disability and funeral benefits 10

11 THE BACK LINE Founded in 2003, the Sygnia Group is the second-largest multimanager and the largest investment administration company in South Africa. We provide a wide range of financial services to a diverse group of domestic and international clients. Whether you are a company or a financial advisor, we will work with you to create your ultimate retirement savings solution. Sygnia at a glance: ffr184 billion in assets under management and administration ff600 institutional clients (domestic and international) ffover individual clients ffover 175 staff members ffheadquarters in Cape Town, Johannesburg and Durban 11

12 fund performance Fund name 3 Months 6 Months 1 Year 3 Years 5 Years Sygnia Signature Classic 40 Fund 1.5% 2.7% 8.2% 7.3% 10.1% Sygnia Signature Classic 50 Fund 1.5% 1.9% 7.6% 6.9% 10.4% Sygnia Signature Classic 60 Fund 1.4% 1.5% 7.0% 6.4% 10.7% Sygnia Signature Classic 70 Fund 1.4% 0.8% 6.4% 5.9% 10.9% Sygnia Signature 40 Fund 1.5% 2.6% 7.7% 7.1% 10.5% Sygnia Signature 50 Fund 1.6% 1.9% 7.1% 6.6% 10.6% Sygnia Signature 60 Fund 1.5% 1.3% 6.6% 6.2% 10.9% Sygnia Signature 70 Fund 1.4% 0.6% 6.0% 5.7% 11.2% Sygnia Skeleton Classic 40 Fund 1.3% 2.5% 7.9% 7.1% 9.8% Sygnia Skeleton Classic 50 Fund 1.4% 1.9% 7.8% 6.8% 10.1% Sygnia Skeleton Classic 60 Fund 1.5% 1.5% 7.9% 6.7% 10.6% Sygnia Skeleton Classic 70 Fund 1.3% 0.7% 7.2% 6.2% 10.7% Sygnia Skeleton 40 Fund 1.4% 2.5% 7.9% 6.8% 10.1% Sygnia Skeleton 50 Fund 1.4% 1.7% 7.4% 6.3% 10.1% Sygnia Skeleton 60 Fund 1.3% 1.3% 7.1% 6.1% 10.4% Sygnia Skeleton 70 Fund 1.3% 0.5% 6.8% 5.6% 10.6% Allan Gray Global Balanced Portfolio 1.0% 1.6% 6.9% 9.6% 10.8% Investec IAL Balanced Fund 0.3% 1.6% 7.6% 6.8% 11.6% Coronation Global Houseview Portfolio -0.1% 0.7% 4.8% 6.8% 10.0% Foord Balanced Fund 2.3% 1.7% 3.8% 4.8% 8.5% Sygnia Money Market 2.0% 4.1% 8.6% 8.5% 7.6% Sygnia Islamic Balanced 0.0% 0.7% 5.5% 6.7% 8.8% Calculated before applying underlying investment management fees and performance fees, where applicable. Figures valid as at 31 July

13 Let s TALK David Hufton Head: Strategic Projects T: +27 (0) E: surfquotes@srf.sygnia.co.za Cape Town 7th Floor, The Foundry, Cardiff Street, Green Point, 8001 Johannesburg Unit 40, 6th Floor, Katherine and West Building, West Street, Sandton, 2196 Durban Office 2, 2nd Floor Ridgeview, 1 Nokwe Avenue, Ridgeside, Umhlanga Ridge, 4319 SYGNIA Umbrella Retirement Fund