P-SOLVE INFLATION PLUS FUND. Supplement to the Prospectus dated 27 February 2018 for Sanlam Universal Funds plc

Transcription

1 P-SOLVE INFLATION PLUS FUND Supplement to the Prospectus dated 27 February 2018 for Sanlam Universal Funds plc This Supplement contains specific information in relation to P-Solve Inflation Plus Fund (the "Inflation Plus Fund"), a Fund of Sanlam Universal Funds plc (the "Company"), an open-ended umbrella type investment company with segregated liability between its Funds authorised by the Central Bank of Ireland (the "Central Bank") as an undertaking for collective investment in transferable securities pursuant to the Regulations. There are forty-eight other Funds of the Company in existence, namely: Satrix World Equity Tracker Fund Sanlam Global Financial Fund Sanlam Global Best Ideas Fund Sanlam Global Bond Fund Sanlam Strategic Cash Fund Sanlam World Equity Fund Sanlam Strategic Bond Fund Sanlam African Frontier Markets Fund SIIP India Opportunities Fund Bridge Global Property Income Fund Sanlam Centre Global Select Equity Fund SIM Global Equity Income Fund Sanlam Accel Income Fund Sanlam Private Wealth Global High Quality Fund Satrix North America Equity Tracker Fund Satrix UK Equity Tracker Fund Satrix Europe excluding UK Equity Tracker Fund Satrix Emerging Markets Equity Tracker Fund Sanlam Equity Allocation Fund Sanlam P2strategies UK Fund Sanlam Managed Risk Fund Sanlam P2strategies North America Fund Sanlam P2strategies Emerging Market Fund Sanlam P2strategies Europe excluding UK Fund Sanlam S&P Africa Tracker Fund Sanlam FOUR European L/S Fund Sanlam FOUR US Dividend Fund Anchor Global Stable Fund Anchor Global Equity Fund High Street Global Balanced Fund Sanlam FOUR Active European Ex-UK Equity Fund Sanlam FOUR Active UK Equity Fund Sanlam FOUR Global Equity Fund Sanlam FOUR Multi-Strategy Fund Sanlam FOUR Stable Global Equity Fund Sanlam Global Property Fund Bridge Global Equity Income Growth Fund Bridge Global Managed Growth Fund SIM Global Emerging Markets Fund Sanlam FOUR UK Income Opportunities Fund Autus Global Equity Fund Absa Africa Equity Fund Sanlam Japan Equity Fund Sanlam Centre American Select Equity Fund

2 Sanlam Global Convertible Securities Fund Sanlam Centre Active U.S. Treasury Fund Wisian Capital South African Equity Fund Sanlam FOUR Enhanced Income Fund This Supplement forms part of and should be read in conjunction with the Prospectus dated 27 February 2018 (the "Prospectus") and the latest audited financial statements of the Company. The Directors of the Company, whose names appear in the Directors of the Company section of the Prospectus, accept responsibility for the information contained in the Prospectus and this Supplement. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure that such is the case) such information is in accordance with the facts and does not omit anything likely to affect the import of such information. The Directors accept responsibility accordingly. Words and expressions defined in the Prospectus shall, unless the context otherwise requires have the same meaning when used in this Supplement. Dated: 27 February 2018 IMPORTANT The Inflation Plus Fund may invest up to 100% of its net assets in collective investment schemes which may in turn invest in a range of asset classes including, but not limited to, equities and bonds. An investment in the Inflation Plus Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Your attention is drawn to the risk factors relating to this Inflation Plus Fund in this Supplement and the Prospectus. 2

3 DIRECTORY Investment Objective and Policies... 4 Investment Restrictions... 5 Efficient Portfolio Management... 6 Listing... 6 Investment Manager... 7 Investment Allocation Manager... 7 Borrowings... 7 Risk Factors... 7 Dividend Policy Key Information for Buying and Selling Notification of Prices Charges and Expenses Material Contracts Miscellaneous

4 Investment Objective and Policies Investment Objective The investment objective of the Inflation Plus Fund is to grow capital by delivering a return in excess of UK inflation as measured by the Retail Price Index. This is achieved by diversifying investments across various asset classes and providing the opportunity for real capital growth. The Inflation Plus Fund may offer downside capital preservation during adverse market conditions however this is not guaranteed. Policy and Guidelines The Inflation Plus Fund may invest up to 100% of its net assets in collective investment schemes ("CISs"). The CISs may be located in (but not limited to) jurisdictions such as the United States, Canada, Ireland, UK, Luxembourg, Germany, France, Sweden, Norway, Switzerland, Guernsey and Jersey and may be diversified across investment managers. The Inflation Plus Fund will primarily seek to achieve its objective by investing in CIS that have exposure to global corporate and government debt and equity securities and which satisfy the requirements of the Regulations namely: UCITS domiciled in any Member State; Class A Schemes established in Guernsey; Recognised Funds established in Jersey; Authorised Schemes established in the Isle of Man; alternative investment funds which are authorised by the Central Bank, a member state of the EEA, the United States, Jersey, Guernsey or the Isle of Man and which adhere to similar restrictions as those applying to the Company and its Funds; and closed-ended CISs that satisfy the requirements of the Central Bank Rules. The principal factors in determining P-Solve Investment Limited's (the "Investment Manager") investment strategy for CISs are as set out below (it should be noted that this list is not intended to be exhaustive and may vary depending on the circumstances): 1. manager s industry profile and expertise; 2. analysis of manager s business model; 3. manager s current and historic track record; 4. total size of manager s assets under management; 5. analysis of manager s stock selection process; 6. financial strength of manager; 7. review of CIS documents; 8. research from publicly available sources and third party ratings; 9. operational due diligence of the manager and depositary; and 4

5 10. costs such as manager and depositary fees. Subject to the investment restrictions set out in the Prospectus and permissible direct investment by the Inflation Plus Fund in securities as provided for below, the Inflation Plus Fund may also invest in other Irish domiciled CISs managed by the Manager which meet the requirements of Central Bank Rules. Investments may not be made in another Fund of the Company which itself holds shares in other Funds of the Company. The CISs in which the Inflation Plus Fund invests, may in turn invest in a range of asset classes, which may include ordinary and preference shares and other securities with equity characteristics, including but not limited to, warrants and convertible securities. The CISs in which the Inflation Plus Fund invests may invest in a broad range of debt securities (including but not limited to bonds (including both corporate and sovereign), debentures, asset-backed and mortgage-backed securities and collateralised bond obligations). The debt securities in which the CISs in which the Inflation Plus Fund invests will be subject to the credit rating limits set out in the Investment Restrictions set out below (or if unrated, will be of similar creditworthiness in the Investment Manager s opinion). It is expected the investment in CISs in which the Inflation Plus Fund invests will enhance returns. In addition, the Inflation Plus Fund may also invest in CISs which invest in lower grade debt securities where it is expected that these will have a higher return than investment grade securities. A diversified portfolio across a range of asset classes will ensure that returns are associated with different economic factors, thus reducing the volatility of performance and preserving capital. Thus if one asset class falls in value, for example, equities, then a different asset class, for example sovereign bonds, may perform strongly as investors seek protection in the sovereign bond markets, forcing sovereign bond prices up. The Inflation Plus Fund is managed within specific asset class exposure limits to provide the Investment Manager with a framework to assist in the preservation of capital. In addition, the key to successfully growing capital within the Inflation Plus Fund is to rotate capital across asset classes i.e. reduce exposure to asset classes with a negative outlook and increase exposure to asset classes which have a positive outlook. Correlation between asset classes means strong performance can be produced while maintaining a diversified portfolio. For example, both equities and corporate bonds are strongly related to the health of corporate entities and are expected to perform well in times of low interest rates and stable inflation. Being overweight in equities and corporate bonds in these conditions will thus be conducive to capital growth. In addition, subject to the Investment Restrictions set out below, where in the Investment Manager s opinion it is financially advantageous for the Inflation Plus Fund to have direct exposure to global sovereign bonds, the Inflation Plus Fund may invest directly in global sovereign bonds of investment grade status listed or traded on the Recognised Exchanges or regulated markets set out in Appendix I of the Prospectus in order to minimise costs and reduce risk. The extent of such holdings may vary according to market conditions. For ancillary liquidity purposes, the Inflation Plus Fund may hold liquid assets such as cash or cash equivalents including units in money market funds. Investment Restrictions The general investment restrictions contained in the Investment Restrictions section of the Prospectus shall apply. In addition the following investment restrictions shall apply to the Inflation Plus Fund: The Inflation Plus Fund may not invest in CISs which invest more than 10% of their net assets in other CISs. 5

6 The Inflation Plus Fund shall not, other than through market movements, have exposure to, whether obtained through investment in CISs or direct investment, the following asset classes in excess of the maximum limits described below: Asset Class Maximum (%) Equities 80% Debt securities with a minimum rating of BBB- or equivalent 100% Debt securities with a rating below BBB- or equivalent * 40% Ancillary Liquid Assets 100% Closed-ended CIS 20% *The Inflation Plus Fund intends to invest in debt securities with a rating below BBB- or equivalent via investment in CISs. Efficient Portfolio Management The Fund may enter into Securities Financing Transactions in the form of securities lending arrangements for efficient portfolio management purposes only. Further details in respect of Securities Financing Transactions and applicable limits are set out in the Prospectus under the heading Repurchase/Reverse Repurchase Agreements and Securities Lending. Securities lending is used to generate additional income for the Fund with an acceptably low level of risk. Further details on the requirements relating to such Securities Financing Transactions and the Collateral Policy for the Fund is contained in the Prospectus. Listing Class A Shares, Class B Shares and Class B (Accumulation) Shares of the Inflation Plus Fund issued in respect of the Inflation Plus Fund were admitted to the Official List and traded on the Main Securities Market of the Irish Stock Exchange and dealings in the Shares commenced on 23 December 2005, 1 March 2004 and 20 September 2013 respectively. No application has been made to list the Shares on any other stock exchange. Effective 27 November 2017, the listing of the Class A Shares, Class B Shares and Class B (Accumulation) Shares in the Fund was transferred from the Main Securities Market to the Global Exchange Market ( GEM ) of the Irish Stock Exchange. GEM is not a regulated market as defined under the Directive on Markets in Financial Instruments 2004/39/EC. Neither the admission of the Class A Shares, Class B Shares or Class C (Accumulation) Shares to listing on the Official List and trading on the Global Exchange Market of the Irish Stock Exchange nor the approval of this Supplement pursuant to the listing requirements of the Irish Stock Exchange shall constitute a warranty or representation by the Irish Stock Exchange as to the competence of service providers to or any other party connected with the Fund, the adequacy of information contained in this Supplement or this Prospectus or the suitability of the Fund for investment purposes. As at the date of this Supplement, no Director nor their spouses nor their infant children or any person closely associated have any interest in the Shares of the Fund or any options in respect of such capital. As at the date of this document the Fund does not have any loan capital (including term loans) outstanding

7 or created but unissued or any outstanding mortgages, charges, debentures or other borrowings or indebtedness in the nature of borrowings, including bank overdrafts, liabilities under acceptance (other than normal trade bills) or acceptance credits, hire purchase or finance lease commitments, guarantees or other contingent liabilities which are material in nature. The Directors confirm that there has been no significant change in the financial or trading position of the Company since 31 December 2016, the date of the latest financial statements of the Company. Investment Manager P-Solve Investments Limited has been appointed by the Manager to act as investment manager of the Inflation Plus Fund. P-Solve (formerly PSigma Investments Limited) is a company incorporated in England and Wales under the Companies Act 1985 on 24 April 1997 and having its registered office at 11 Strand, London WC2N 5HR, United Kingdom. P-Solve is authorised and regulated by the Financial Conduct Authority. Investment Allocation Manager There is no Investment Allocation Manager in respect of the Inflation Plus Fund. The provisions of the Prospectus relating to the Investment Allocation Manager do not apply to the Inflation Plus Fund. Borrowings In accordance with the general provisions contained in the Borrowing and Lending Powers section of the Prospectus, the Inflation Plus Fund may borrow up to 10% of its net assets on a temporary basis. Risk Factors The risk factors set out in the Risk Factors section of the Prospectus apply to the Inflation Plus Fund. In addition, the following risk factors will apply to the Inflation Plus Fund: General There is no guarantee or assurance that the investment objectives of the Inflation Plus Fund will actually be achieved. Whilst the investment objective of the Inflation Plus Fund is the preservation of capital, there may be a negative return where an investor invests in the Inflation Plus Fund. Liabilities of one Fund will not impact on nor be paid out of the assets of another Fund. While the provisions of the Companies Acts 2014 provide for segregated liability between Funds, these provisions have yet to be tested in foreign courts, in particular, in satisfying local creditors claims. Accordingly it is not free from doubt that the assets of any Fund may be exposed to the liabilities of other Funds of the Company. As of the date of the Prospectus the Directors are not aware of any existing or contingent liability of any Fund of the Company. Operational Risk The Inflation Plus Fund is dependent on the proper functioning of the internal management and systems of the Investment Manager and other service providers to the Inflation Plus Fund and Company. Concentration of Investments The Investment Manager will generally seek to maintain a diversified portfolio of investments. However, the Inflation Plus Fund may at certain times hold fewer securities positions than targeted. In this event, increased concentration of positions will increase the risk of the Inflation Plus Fund suffering proportionately higher loss should a particular position decline in value or otherwise be adversely affected. 7

8 Investments in Collective Investment Schemes The Inflation Plus Fund may invest all or a portion of its assets in CIS and investors should be aware of the potential exposure to the asset classes of those underlying collective investment schemes in the context of all of their investments. The investments of the Company are subject to normal market fluctuations and other risks inherent in investing in securities or other instruments and there can be no assurance that the investment objectives will actually be achieved. In particular the value of investments may be affected by uncertainties such as international, political and economic developments or changes in government policies. Currency Exposure Investor s should note the currency risk factor contained in the Prospectus. While the Investment Manager may, where in the Investment Manager s opinion it is appropriate to do so, seek to reduce the exposure to currency fluctuation risks by the use of hedging and other techniques and instruments, it may not be possible or practicable to hedge against the consequent currency risk exposure. Warrants The CISs in which the Inflation Plus Fund invests may in turn invest in warrants. Where a CIS invests in warrants, the price per share of the CIS may fluctuate more than if the CIS was investing in the underlying security because of the greater volatility of the warrant price. As this may increase the CIS s investment risk, an investment in the Inflation Plus Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Below Investment-Grade Debt Securities CISs in which the Inflation Plus Fund invests may hold debt securities rated below investment grade (BBB- or equivalent) or unrated securities of comparable quality, which are generally considered to carry higher levels of risk than investment grade securities. The higher level of risk is due to a greater perceived risk of default in payments of interest or principal, than in the case of investment grade securities, usually because issuers are not as strong financially and there is a greater chance that they may be forced into bankruptcy or reorganisation if they experience problems in their business. Returns on investment grade securities are largely dependent on movements in interest rates. The risk of default, or credit risk, plays a part too, but its effect on the value of a security becomes much greater as the level increases, and an investment grade rating effectively represents a minimum requirement for investors who are not allowed to or do not wish to expose their investment portfolios to a significant level of credit risk. The greater level of credit risk means that below investment grade securities must offer the prospect of greater returns to attract investors, but the smaller pool of interested investors means that the market for below investment grade debt securities is typically much less liquid. This can make it difficult for the CIS to sell securities to meet redemptions except at unfavourable prices. It can also mean more volatile prices and larger spreads, which can work against the CIS and ultimately the Inflation Plus Fund. Prices of below investment grade securities also tend to be much more susceptible to changes in general economic sentiment and credit defaults by other issuers, even defaults by unrelated issuers or issuers in other countries and other sectors. Emerging Markets CISs in which the Inflation Plus Fund invests may in turn invest in emerging markets. Investing in emerging markets involves additional risks and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include (i) increased risk of nationalisation or expropriation of assets or confiscatory taxation; (ii) greater social, economic and political uncertainty, including war; (iii) higher dependence on exports and the corresponding importance of international trade; (iv) greater volatility, less liquidity and smaller capitalisation of securities markets; (v) greater volatility in currency exchange rates; (vi) greater risk of inflation; (vii) greater controls on foreign investment and limitations on repatriation of invested capital and on the ability to exchange local 8

9 currencies for US dollars; (viii) increased likelihood of governmental decisions to cease support of economic reform programmes or to impose centrally planned economies; (ix) differences in auditing and financial reporting standards which may result in the unavailability of material information about issuers; (x) less extensive regulation of the securities markets; (xi) longer settlement periods for securities transactions and less reliable clearance and custody arrangements; (xii) less protection through registration of assets and (xiii) less developed corporate laws regarding fiduciary duties of officers and directors and protection of shareholders. Investment in mortgage-related securities and in asset-backed securities CISs in which the Inflation Plus Fund invests may in turn invest in mortgage derivatives and structured notes, including mortgage-backed and asset-backed securities. Mortgage pass-through securities are securities representing interests in "pools" of mortgages in which payments of both interest and principal on the securities are made monthly, in effect "passing through" monthly payments made by the individual borrowers on the residential mortgage loans which underly the securities. Early or late repayment of principal based on an expected repayment schedule on mortgage pass-through securities held by the CIS (due to early or late repayments of principal on the underlying mortgage loans) may result in a lower rate of return when the CIS reinvests such principal. In addition, as with callable fixed-income securities generally, if the CIS purchased the securities at a premium, sustained earlier than expected repayment would reduce the value of the security relative to the premium paid. When interest rates rise or decline the value of a mortgage-related security generally will decline, or increase but not as much as other fixedincome, fixed-maturity securities which have no prepayment or call features. Payment of principal and interest on some mortgage pass-through securities (but not the market value of the securities themselves) may be guaranteed by the U.S. Government, or by agencies or instrumentalities of the U.S. Government (which guarantees are supported only by the discretionary authority of the U.S. Government to purchase the agency's obligations). Certain mortgage pass-through securities created by non-governmental issuers may be supported by various forms of insurance or guarantees, while other such securities may be backed only by the underlying mortgage collateral. The CIS may also invest in investment grade collateralised mortgage obligations ("CMOs"), which are structured products backed by underlying pools of mortgage pass-through securities. Similar to a bond, interest and prepaid principal on a CMO are paid, in most cases, monthly. CMOs may be collateralised by whole residential or commercial mortgage loans but are more typically collateralised by portfolios of residential mortgage pass-through securities guaranteed by the U.S. Government or its agencies or instrumentalities. CMOs are structured into multiple classes, with each class having a different expected average life and/or stated maturity. Monthly payments of principal, including prepayments, are allocated to different classes in accordance with the terms of the instruments, and changes in prepayment rates or assumptions may significantly affect the expected average life and value of a particular class. The CIS may invest in principal-only or interest-only stripped mortgage-backed securities. Stripped mortgage-backed securities have greater volatility than other types of mortgage-related securities. Stripped mortgage-backed securities which are purchased at a substantial premium or discount generally are extremely sensitive not only to changes in prevailing interest rates but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a sustained higher or lower than expected rate of principal payments may have a material adverse effect on such securities' yield to duration. In addition, stripped mortgage securities may be less liquid than other securities which do not include such a structure and are more volatile if interest rates move unfavourably. The Investment Manager expects that government, government-related or private entities may create other mortgage-related securities in addition to those described above. As new types of mortgage-related securities are developed and offered to investors, the Investment Manager will consider making investments in CISs which invest in such securities, provided they satisfy the requirements of the Regulations. Asset-backed transferable securities represent a participation in, or are secured by and payable from, a stream of payments generated by particular assets, most often a pool of assets similar to one another, such as motor vehicle receivables or credit card receivables, home equity loans, manufactured housing 9

10 loans or bank loan obligations. Further, the Inflation Plus Fund may invest in CISs which in turn invest in collateralised loans obligations ( CLOs ) whose underlying portfolio is composed of loans. Credit Risk The value of the Inflation Plus Fund may be adversely affected if any of the institutions with which assets are invested or cash deposited suffers insolvency or other financial difficulties. Liquidity Risk In extreme market conditions, it may be difficult for the Inflation Plus Fund to realise an investment on short notice without suffering a discount to market value. Regulatory Intervention In extreme market conditions, there may be increased regulatory and/or governmental intervention in the market. This may be implemented immediately or on short notice and may include the prohibition of or restriction on the use of certain financial instruments in respect of certain stocks. This may impede the Investment Manager s ability to follow a particular strategy and may adversely affect the Inflation Plus Fund. Duplication of Costs It should be noted that the Inflation Plus Fund incurs the costs of its own management and other service providers as set out under the Charges and Expenses section below. In addition, to the extent the Inflation Plus Fund invests in collective investment schemes, it will bear its proportion of the fees paid by such schemes to their Investment Manager and other service providers. There may also be performance fees payable at the underlying scheme level. The semi annual and annual reports of the Company shall provide information on the specific collective investment schemes which the Inflation Plus Fund invests in including their regulatory status and the specific fees paid by the Inflation Plus Fund to such schemes. Efficient Portfolio Management Risk The Company on behalf of the Fund may enter securities lending arrangements for efficient portfolio management purposes. Investors should be aware that from time to time, the Fund may engage with securities lending agents that are related parties to the Depositary or other service providers of the Company. Such engagement may on occasion cause a conflict of interest with the role of the Depositary or other service provider in respect of the Company. Please refer to the section entitled "Portfolio Transactions and Conflicts of Interest" in the Prospectus for further details on the conditions applicable to any such related party transactions. The identity of any such related parties will be specifically identified in the Company s semi-annual and annual reports. Reinvestment of Cash Collateral Risk As the Fund may reinvest cash collateral received, subject to the conditions and within the limits laid down by the Central Bank, the Fund will be exposed to the risk associated with such investments, such as failure or default of the issuer of the relevant security. Securities Lending Risk There are risks associated with the Fund engaging in securities lending. As with any extensions of credit, there are risks of delay and recovery. Should the borrower of securities fail financially or default in any of its obligations under any securities lending transaction, the collateral provided in connection with such transaction will be called upon. A securities lending transaction will involve the receipt of collateral. However there is a risk that the value of the collateral may fall and the Fund suffer loss as a result. 10

11 Dividend Policy It is not the current intention of the Directors to declare a dividend in relation to the Class B (Accumulation) Shares. All such profits shall be reinvested in the Fund. It is the intention of the Manager to seek UK reporting fund status for accounting periods commencing 1 January 2011 in respect of Class A (GBP) Shares, Class B (GBP) Shares and Class C (GBP) Shares. In broad terms a reporting fund is an offshore fund that meets certain upfront and annual reporting requirements to HM Revenue & Customs and its Shareholders. Once reporting fund status is obtained from HM Revenue & Customs for the relevant classes it will remain in place permanently, provided the annual requirements are complied with. UK Shareholders who hold their interests in the Class A (GBP) Shares, Class B (GBP) Shares and/or Class C (GBP) Shares at the end of the reporting period to which the reported income relates, subject to their personal circumstances, will normally be liable to either income tax or corporation tax on the higher of any cash distribution paid and the full reported amount. The reported income will be deemed to arise to UK Shareholders on the date the report is issued by the Company. Subject to the discretion of the Directors, dividends (if any) will be declared and paid on an annual basis in or around May of each year following the finalisation of the year end financial statements. Shareholders will have the option to either receive the declared dividend (if any) or re-invest in the purchase of Shares of the relevant class. Payment will be paid by telegraphic transfer in Sterling to the Shareholder s account unless the payment is for an amount less than 100 in which case such payment will be automatically reinvested in the purchase of Shares of the relevant class for the account of the relevant Shareholder. The Directors reserve the right to change the dividend policy of the Inflation Plus Fund to reflect changes that may occur from time to time in the requirements for qualifying as a reporting fund or otherwise for the purposes of UK taxation and will notify Shareholders of any changes to the Dividend Policy. Investors should refer to their tax advisors in relation to the implications of these Share classes obtaining such status and any payment of dividends. Please see the section entitled United Kingdom under the Taxation section of the Prospectus of the Company for further details. Key Information for Buying and Selling Class A Shares, Class B Shares and Class C Shares and Class B (Accumulation) Shares in the Inflation Plus Fund are available for subscription to investors in the United Kingdom and in certain of the other Member States. Class D Shares are only available to entities introduced to the Company by P-Solve Investments Limited or such other persons as the Directors may from time to time approve. Base Currency Sterling. Business Day Any day (except Saturday or Sunday) on which the banks in Dublin and London are open for business and such other days as the Directors may, with the consent of the Depositary, determine and notify in advance to Shareholders. Dealing Day Any Business Day. Dealing Deadline In respect of a Dealing Day, 9.30 a.m. (Irish time) on the relevant Dealing Day. 11

12 Share Classes Minimum Shareholding* Minimum Initial Investment Amount* Minimum Additional Investment Amount* Class A GBP 1,000 1, Class B GBP 500, ,000 50,000 Class C GBP 2,500,000 2,500,000 N/A Class D GBP 1,000,000 1,000,000 N/A Class B (Accumulation) Shares 500, ,000 50,000 * The Manager may, in its absolute discretion, waive or reduce the amounts set out above under Minimum Shareholding, Minimum Initial Investment Amount and Minimum Additional Investment Amount. Preliminary Charge Five per cent of the Net Asset Value per Share (plus VAT, if any). The Company may waive in whole or in part the Preliminary Charge. Repurchase Fee No Repurchase Fee will be charged in respect of any of the Share Classes of the Inflation Plus Fund. Settlement Date In the case of applications, close of business on the relevant Dealing Day (or up to four Business Days after the relevant Dealing Day as may be permitted by the Manager at its absolute discretion). In the case of repurchases four Business Days after the relevant Dealing Day or, if later, four Business Days after receipt of the relevant duly signed repurchase documentation. Valuation Point p.m. (Irish time) on the relevant Dealing Day. Notification of Prices The Net Asset Value per Share of each class of Share will be available from the Administrator, will be posted on the website will be notified to the Irish Stock Exchange without delay following publication and will, at the discretion of the Directors, be published daily in the Financial Times. Charges and Expenses Fees of the Manager, the Investment Manager, the Investment Transition Managers, the Depositary, the Registrar and Transfer Agent, the Administrator and the Distributors. The Manager will be entitled to receive from the Company an annual fee of 1.25% of the net assets of the Class A Shares, 0.60% of the net assets of the Class B Shares, 0.35% of the net assets of Class D Shares and 0.60% of the net assets of the Class B (Accumulation) Shares. The Manager is not entitled to any fee in respect of the Class C Shares, but will agree a separate fee with each holder of Class C Shares to be paid directly by such Shareholder. These fees will accrue and be calculated on each Dealing Day 12

13 and be payable monthly in arrears. The Manager will be responsible for all its own out of pocket costs and expenses. The Manager will pay out of its fees, the fees and expenses of the Investment Manager, each of the Investment Transition Managers and the Distributors. The Administrator will be entitled to receive out of the assets of the Inflation Plus Fund an annual fee which will not exceed 0.025% of the net assets of the Inflation Plus Fund plus US$20,000 per annum and US$20,000 for each additional Investment Manager (where there is more than one Investment Manager) (plus VAT, if any) in the performance of its duties as Administrator of the Inflation Plus Fund. These fees shall accrue and be calculated on each Dealing Day and shall be payable monthly in arrears. The Registrar and Transfer Agent will be entitled to receive from the Company out of the assets of the Fund an annual fee which will not exceed US$2,500 plus $1,000 for each additional share class greater than four, together with reasonable costs and expenses incurred by the Registrar and Transfer Agent in the performance of its duties as Registrar and Transfer Agent of the Fund. These fees shall accrue and be calculated on each Dealing Day and shall be payable monthly in arrears. The Registrar and Transfer Agent shall also be entitled to be reimbursed out of the assets of the Fund all agreed transaction charges (which will be charged at normal commercial rates). The Depositary will be entitled to receive from the Company out of the assets of the Inflation Plus Fund an annual trustee fee which will not exceed 0.02% of the net assets of the Inflation Plus Fund (plus VAT, if any) together with reasonable costs and expenses incurred by the Depositary in the performance of its duties as Depositary of the Inflation Plus Fund. These fees shall accrue and be calculated on each Dealing Day and shall be payable monthly in arrears. The Depositary shall also be entitled to be reimbursed out of the assets of the Inflation Plus Fund all agreed safekeeping fees, expenses and all agreed transaction charges (which will be charged at normal commercial rates). The maximum level of management fees that may be charged by collective investment schemes that the Inflation Plus Fund may invest in shall not exceed 5%. This section should be read in conjunction with the section entitled Charges and Expenses in the Prospectus. Material Contracts The Investment Management and Distribution Agreement dated 16 September 2010 between the Manager and P-Solve; the Agreement provides that the appointment of P-Solve will continue unless and until terminated by the Manager giving not less than 30 days notice in writing to P-Solve and P-Solve giving not less than 90 days notice in writing to the Manager although in certain circumstances the Agreement may be terminated forthwith by notice in writing by either party to the other; this Agreement contains certain indemnities in favour of P-Solve which are restricted to exclude matters arising by reason of the fraud, bad faith, wilful default, wilful misfeasance or negligence of P-Solve in the performance or non-performance of its duties or obligations and certain provisions regarding its legal responsibilities and limitations thereon. Miscellaneous Copies of the Prospectus, Simplified Prospectus and the most recent annual and half yearly reports can be obtained from P-Solve Investments Limited, 11 Strand, London, WC2N 5HR. The address for service of notices or other documents required or authorised to be served on the Company, should in the first instance be directed to our Investment Manager, P-Solve Investments Limited, 11 Strand, London, WC2N 5HR. Shareholders in the UK who have complaints about the operation of the Company should first contact their intermediary or financial adviser. Shareholders may also contact P-Solve Investments Limited, who will 13

14 transmit complaints to the Company. In the UK, the Inflation Plus Fund is recognised under section 264 of the Financial Services and Markets Act Investors should note that the protections provided to investors by the UK regulatory system established under FSMA do not extend to investments in the Sanlam Universal Funds plc group of funds. In particular, investors will not be entitled to compensation from the Financial Services Compensation Scheme, nor will they be entitled to the benefits provided by the Financial Ombudsman Service or other protections afforded to customers under FSMA. The UK distributor for the Inflation Plus Fund is P-Solve Investments Limited. If you are in any doubt as to whether this Inflation Plus Fund is suitable for you, you should contact your financial adviser who will be able to discuss the suitability of such investment with you and who will be able to obtain further information concerning the investment by contacting P-Solve Investments Limited on your behalf. 14