Are you thinking about international investments?

1 Are you thinking about international investments? FIND OUT MORE Navigate by Glacier International

2 Glacier International Glacier International offers you the opportunity to invest in a wide selection of global investment schemes, according to your own unique investment requirements and preferences. Our global investment options include: Guided Solutions Guided Fund Solution Guided Stockbroking Solution Self-directed Solutions Self-directed Fund Solution Self-directed Stockbroking Solution

1 About Navigate by Glacier International A highly guided list of fund choices to help simplify international investments. These daily traded, actively managed funds have been selected from local and international companies with strong histories and performance records.

2 What are your needs? You understand what the benefits of investing internationally are: the valuations of international companies relative to those in South Africa, the opportunity to invest in companies not available in South Africa, and especially portfolio diversification and hedging against currency depreciation and political and economic risk. The world of international investments can, however, be a daunting one one of too many investment choices, unfamiliar fund managers and unfamiliar investment procedures. What is Navigate by Glacier International? Funds in the Navigate range are grouped together in Cautious Managed, Moderate Managed and Global Equity tranches, and to assist selection of the most appropriate fund(s) for your client, a risk profiling questionnaire is available. The funds are offered at a very competitive net administration fee of 0.3% (including custodian fees). Ascertain your personal level of risk tolerance What you are looking for, is some help to navigate the options that you face.

3 What Navigate offers you A simplified, easy to understand selection of investment choices Assistance in determining an investor s risk profile Cost efficiency a flat administration fee of 0.3% (including custody fees) Simplified implementation no tax clearance certificates are required for investments less than R1 million Offered within the Global Life Plan, so investors can enjoy all the associated benefits. Three easy steps to access Navigate Step 1 Complete the risk profiling questionnaire, if required (available on Glacier ICE or on the Glacier International website); Step 2 Complete a Global Life Plan quote indicating your selected Navigate choices, and effortlessly generate an application form online; Step 3 Submit the application form and supporting documentation. (In most circumstances, a tax clearance certificate is no longer required for investments of less than R1 million.) Once invested, your account will be accessible online at all times. A simple, cost effective international investment solution Model Portfolios: You may select funds from a category that matches your risk profile, alternatively the three categories are also available as model portfolios. Should you choose a model portfolio, your investment will be equally allocated to all the funds in the selected risk profile and rebalanced on an annual basis. Should any of the funds change at any stage, these will be automatically applied to your portfolio.

4 Global Cautious Growth Funds included in this category aim to produce positive returns over the longer term at relatively steady rates (typically single digit percentage annual growth) with relatively low volatility. Preserving capital is a key objective of funds in this category. Returns from these types of funds are not guaranteed and can be negative, but when markets fall these funds should not fall as much as funds in the moderate growth or global equities categories. Due to the typically low allocation to equities or equity-type (and higher risk) assets, when equity markets are producing good returns, the returns from these funds may be more muted. Funds in this category all follow actively managed global strategies, but vary in approach from moderated, low equity balanced portfolios (Coronation, M&G and Sarasin), to fixed income only strategies (Templeton and PIMCO), and a highly diversified multi-asset strategy (Henderson). Funds Available Currencies Investment Objective Coronation Global Capital Plus Fund Franklin Templeton Global Total Return Bond Fund USD, EUR, GBP USD, EUR Aims at achieving real returns over a 3-5 year period while preserving capital over any 12-month period. This is a low-risk global balanced fund reflecting Coronation s best longterm global investment view, moderated for investors with smaller risk budgets. Exposure to equities is typically around 30% of the portfolio. Seeks to generate total return through investment opportunities in currency, interest rate and credit markets. The fund strategically allocates assets across fixed income markets around the world, leveraging off the broad expertise of the 100-plus investment professionals of the Franklin Templeton Fixed Income Group. The fund has a flexible strategy, and can invest across geographic, sector, currency and credit opportunities to maximize income and total return potential. Typically, the fund will have no exposure to equities.

5 Global Cautious Growth (continued) Henderson Multi-Manager Absolute Return Fund USD, EUR, GBP Aims to produce consistent, positive returns with lower volatility, whatever the market conditions. The fund invests in a broad range of asset classes meaning that the fund can potentially achieve positive returns from areas that are doing well, even when other areas of the market are underperforming. The diversity of the fund means that risk is spread, potentially reducing the impact of market volatility to deliver absolute growth over the long term. The allocation to equities will be approximately 10%. M&G Episode Income Fund GBP Aims to generate a high and rising level of income, coupled with capital growth over the long term, through investment in a diversified range of assets. Central to this approach is the identification of episodes, which are periods of time during which, in the fund manager s view, asset prices become over- or under-stated, relative to objective valuation measures, due to the emotional reaction of investors to events. The fund will typically hold between 20-50% in equities, 40-80% in fixed income (including cash), and up to 20% in other assets (primarily indirect exposure to commercial property). PIMCO Unconstrained Bond Fund USD This fund uses an absolute return oriented investment-grade bond strategy that is not bound to benchmark-specific guidelines or significant sector constraints. The fund can adjust duration of exposure, allocate across sectors and express other active views in order to produce attractive risk-adjusted returns. The fund has no exposure to equities. *Please note that although the M&G fund describes producing income as part of its objectives, we offer the accumulating share classes which means that the income is included in the net asset value of the fund and they do not pay out distributions to investors.

6 Global Cautious Growth (continued) Sarasin Globalsar Income Fund GBP Aims to provide a consistently attractive level of income coupled with long term capital appreciation whilst aiming to preserve the value of capital over the longer term. Investments are predominately in fixed interest securities with the remainder in a mix of global equities, convertible bonds and cash. The fund is part of Sarasin s flagship global multi-asset fund range offering dynamic asset allocation and thematic stock selection. The equity exposure is approximately 20%. *Please note that although the Sarasin fund describes producing income as part of its objectives, we offer the accumulating share classes which means that the income is included in the net asset value of the fund and they do not pay out distributions to investors.

7 Global Moderate Growth Funds included in this category provide diversified exposure to global assets with the aim to maximise risk-adjusted returns over the longer term (more than 5 years). The funds are all actively managed, with the managers having a large degree of flexibility to allocate investments as they deem appropriate. Having said that, the funds tend to be balanced in approach allocating across asset classes with a bias towards equities (50% to 60% +) based on the long-term return potential of this asset class. Further diversification within the funds (into fixed interest, property, commodities, alternatives, cash, etc), at the managers discretion, serves to reduce the risk profile of the funds and means that when equity markets fall, these funds should not decline by as much. The funds selected are managed by respected and recognisable fund management companies with strong performance track records and are often representative of their best house views on different assets in terms of the potential to produce long-term value for clients. They are selected for the differences in their approach to investing, be that in their views on relative value, which sectors to favour, or which investment guidelines and principals they base their decisions on. Funds Available Currencies Investment Objective BlackRock Global Allocation Fund Coronation Global Managed Fund USD, EUR, GBP USD From the largest fund management company in the world (with almost US$4 trillion assets under management), this is a flagship fund of the BlackRock group. It is a highly diversified, actively managed fund with a flexible, unconstrained mandate which typically invests in more than 700 securities, across 40 countries in 30 currencies across traditional and nontraditional asset classes, sectors and capital structures. The investment team comprises more than 40 dedicated professionals with over 300 years of combined experience. Over its 24-year history, the fund has delivered returns in excess of global stocks and bonds with one-third less volatility than global equities. Equity exposure can range between 40% and 70% with a typical allocation of 60%. From the well-known and respected South African fund management company, this fund reflects Coronation s best long-term global investment view. This global balanced fund aims to maximise long-term capital appreciation by investing across multiple asset classes and global markets. It is managed with an equity bias over time with an expected average equity exposure of between 60% and 70%.

8 Global Moderate Growth (continued) Jupiter Merlin International Balanced Fund Sarasin Globalsar Dynamic Fund Nedgroup Investments Global Flexible Fund USD, EUR, GBP USD, GBP USD Managed by the award winning and well-regarded multi-manager team from UK-based asset manager, Jupiter, this fund aims to achieve long-term capital growth with income by investing in other funds. They start with a top down view of markets, and seek to determine which areas will do best by looking at the bigger economic picture. They act with conviction and are willing to take positions based on their economic analysis without paying too much attention to what their peers are doing. The underlying funds invest in international equities, fixed interest stocks, commodities and property. The fund can have a minimum of 40% and a maximum of 85% exposure to equities. Sarasin and Partners is a market leader in thematic investing and this fund is part of their flagship global multi-asset fund range offering dynamic asset allocation and thematic stock selection. It aims to achieve long term capital growth and income generation through a diversified portfolio of equities, bonds, property, alternative assets and cash. This fund s equity allocation can range between 30% and 90% but the typical allocation is 60%. This fund is managed by Californian-based FPA (First Pacific Advisors), a fundamental value oriented firm with an impressive track record. The fund endeavours to provide, over the long term, equity-like returns with less risk than the stock market. The fund has a broad mandate which gives the manager more tools to provide an absolute path to value investing, and seeks to invest in genuine bargains, not simply relatively attractive securities. If prospective investments do not meet that requirement, then the manager will wait until they do. Investments are made across a company s capital structure, as well as in a variety of market capitalisations, industries, geographies and other asset classes, while frequently holding cash. The fund has a flexible mandate but investors can expect a typical allocation to equities of slightly above 50%.

9 Global Moderate Growth (continued) Sanlam Global Balanced Fund USD The investment team focuses on achieving the critical balance between risk and return when applying a research driven investment process. The team applies a combination of quantitative, fundamental, and macroeconomic analysis in the pursuit of delivering alpha within mandated parameters. The Fund is actively managed with the aim to provide clients with above average long-term capital growth by investing in a diversified range of regions, currencies and asset classes including equities, fixed income, property and cash. The fund has a neutral weighting of 65% equities and 35% bonds in line with the benchmark, with a maximum equity exposure (including listed property) of 75%.

10 Global Equities Funds included in this category provide exposure to global equities, and will aim to produce a relatively high level of capital growth over the long term. Investors in funds in this category should be prepared to tolerate high fluctuations in the value of their investment over the short term. The global equity funds included are actively managed, with the managers having a large degree of flexibility in terms of which stocks to hold. They will also typically have discretion as to which regions and markets they select to invest in. They will generally be fully invested in equities and will not invest in other asset classes (i.e. fixed income), although some funds may have discretion to hold cash when adequate investment opportunities are not perceived to be available. The funds selected are managed by respected and recognisable fund management companies with strong performance track records. The funds have also been selected for the differences in their approach to investing. As such, while all are invested in global equities, the performances generated by the funds may differ depending on which style, sector, capitalisation, etc. is in favour at any one time. Funds Available Currencies Investment Objective BlackRock Global Equity Income Fund USD From the largest fund management company in the world (with almost US$4 trillion assets under management), this global equity fund targets high quality companies with above average dividend yields and, crucially, superior dividend growth rates. The fund adopts a flexible approach to sectors, industries and countries, and is a focused portfolio of high conviction ideas it typically comprises 50 to 70 large-cap equity stocks. The fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, developed markets. The team invests with a real return mindset where risk is viewed as loss of capital over the investment cycle, and the fund has the flexibility to avoid areas of the market where it lacks conviction.

11 Global Equities (continued) M&G Global Basics Fund GBP A long standing fund, launched in 1973, that invests in companies considered to be the building blocks of the world s economy, selecting companies operating in basic industries ( primary and secondary industries) and also in companies that service these industries. Guided by the M&G Global Basics curve of economic development concept, the fund seeks to take advantage of the changing needs of an economy at different stages of development. As nations move up the curve, basic demands for food and shelter are accompanied by increasing appetite for additional goods and services. The fund gains exposure by investing in high quality, well established companies that are able to capitalise on these trends through their global operations. The manager can move up and down the curve of economic development based on where he thinks valuation levels are most attractive. Nedgroup Investments Global Equity Fund USD Managed by London-based Veritas Asset Management, this fund uses global context and themes to help identify industries and companies that are well positioned to benefit from medium term growth regardless of where they are located. These potential investments are then subject to rigorous bottom-up analysis using propriety research and valuation models. The manager focuses on protecting and growing the real value of clients capital, and companies are only invested into when an annualised total return of at least 15% is expected. It is a global, unconstrained, focused portfolio of 25 to 40 stocks which targets annualised returns of CPI + 6-10% over the medium term (3-5 years). RE:CM Global Fund USD This fund aims to outperform the US$ MSCI World Index over the long term with lower than average risk of capital loss and with less volatility than the index. The managers apply a consistent value philosophy with an emphasis on cheap, high quality assets and invest predominantly in large global companies. The fund can hold cash when it cannot find attractive enough companies to hold. The investment process is designed to minimise the risk of losing money over the long term.

12 Global Equities (continued) Sanlam Global Best Ideas Fund Schroders Global Equity Alpha Fund USD USD, EUR, GBP This global equity portfolio is the product of a bottom-up, value orientated and benchmark agnostic research process. The process seeks out, and focuses the research effort on, companies that are trading at an attractive discount to their estimated intrinsic value. The assessment of this value is based on the manager s understanding of the business current financial position, past performance, historic valuation and likely prospects. The manager believes that markets are inefficient and that opportunities arise when prices differ from intrinsic value; that valuation is the key consideration in bottom-up investing and that although they can identify undervaluation, they are unable to predict when the value will be unlocked and should have the patience to wait; that even though they don t actively target the benchmark, their philosophy will result in benchmark beating performance over time. This is a focused and unconstrained portfolio of high conviction ideas, typically comprising between 40 and 60 shares. This fund from Schroders, who have been managing money since 1804, invests in companies which they believe have a current share price that does not reflect the future prospects for the business. It looks for growth opportunities that may not have been fully appreciated by the market. The manager considers investment opportunities that reflect the importance of themes that drive longer term growth in companies, including climate change, changes to population demographics and rising importance of emerging market countries. The fund will typically hold between 50 and 60 companies and has no bias to any particular industry or size of company.

14 Glacier International has partnered with the following local and international companies: BlackRock is a global firm that combines the benefits of worldwide reach with local service and relationships. They manage assets for clients in North and South America, Europe, Asia, Australia, the Middle East and Africa. The firm maintains offices in 27 countries around the world. Client base includes corporate, public, union and industry pension plans; governments; insurance companies; third-party mutual funds; endowments; foundations; charities; corporations; official institutions; sovereign wealth funds; banks; financial professionals; and individuals worldwide. One of southern Africa s most successful third-party fund management companies. As a pure fund management business it provides individual and institutional investors with expertise across Developed Markets, Emerging Markets and Africa. Clients include some of the largest retirement funds, medical schemes and multi-manager companies in South Africa, many of the major banking and insurance groups, selected investment advisory businesses, prominent independent financial advisors, high-net worth individuals and direct unit trust accounts. Franklin Templeton established its South African office, registered as Templeton Asset Management Limited, in 1995. Templeton Asset Management Limited is a wholly owned subsidiary of Franklin Resources, Inc. Franklin Templeton Investments offers investment choices under the Franklin, Templeton and Mutual Series names and manages US$670.3 billion in assets (as of December 31, 2011) composed of mutual funds and other investment vehicles for individuals, institutions, pension plans, trust and partnerships in 150 countries. The San Mateo, California-based company has 60 years of investment experience.

15 Founded in 1934, Henderson Global Investors (Henderson) is wholly-owned by Henderson Group plc, which is dual-listed on the London Stock Exchange and Australian Securities Exchange. Henderson Group is a constituent of the FTSE 250 and S&P/ASX 200 indices. Henderson Group plc is a pure, independent investment manager built around autonomous teams of portfolio managers. All global resources, infrastructure and distribution are geared towards supporting these teams. The Group s strategic focus is the development of Henderson as a leading investment manager, based around their core fixed income, equity and property capabilities as well as their offering of alternative products, such as private equity and hedge funds. With its principal place of business in London, Henderson has US$99.9bn assets under management employing more than 1000 people worldwide. Launched in 1985 as a specialist boutique, Jupiter has grown to be one of the UK s most successful and respected investment management groups. They currently manage assets spread across a range of UK and offshore mutual funds, multi-manager products, institutional mandates and investment companies. Jupiter has gained a reputation for achieving outperformance across a broad variety of portfolios specialising in different markets, including UK equities, Europe, global financials and emerging Europe. M&G was founded under its original name of Municipal and General Securities in 1901 as the financial arm of a British engineering company. M&G revolutionised British finance in 1931 when it launched the first mutual fund for the general public. Since that time the firm has concentrated on the management of investment funds. In 1999, M&G merged with Prudential plc, a leading international financial services group, now with more than 21 million customers worldwide and a market capitalisation of over 15 billion as at 31 December 2011. Based in London, M&G now manages investment funds for its individual and institutional clients, and also acts as European investment manager for Prudential plc. M&G International Investments Ltd, the international fund distribution business of M&G, was launched in 2001.

16 Nedgroup Investments was established on the Isle of Man in 1992 as a way of offering a sophisticated range of products and services to satisfy the varied needs of the investment community, and represent the international asset management operation of Nedbank Group. Nedgroup Investments benefits from this strong financial standing and substantial business and corporate investment infrastructure while remaining an independent and dynamic investment manager. Established in 1971 in the US, PIMCO is today recognized as one of the world s leading investment management firms. With 12 international offices, they aim to provide local solutions and service to clients across the globe. Demonstrating this commitment, they have a well-developed distribution and servicing platform across Europe, Asia and the Americas. PIMCO manages assets for a wide and diverse client base, ranging from central banks, multinational corporations and pension plans to family offices and individual investors. They currently manage over US$1.77 trillion of client assets. RE:CM (Regarding Capital Management) is a privately owned, independent asset management company that was founded in 2003. They follow a disciplined, value-based philosophy that focuses on growing clients wealth while protecting their capital against the risk of permanent capital loss. RE:CM follows a bottom-up value approach based on thorough, fundamental research. They believe that a sustainable asset management business can only be built by delivering returns that exceed client expectations and therefore aim to deliver superior real returns over the long term with their focused investment offerings.

17 Sanlam International Investments (SII) is an investment management business, managing and advising on approximately US $6billion of assets on behalf of institutional and retail clients. Sanlam International Investments has investment capabilities in the UK, USA, Asia-Pacific, Southern Africa and India and across all major asset classes. In order to provide clients with access to a range of investment capabilities spanning the asset class spectrum, they have formed Investment Partnerships with specialist, owner managed, asset management firms across the globe. Sarasin & Partners is a London-based specialist investment management firm. The firm employs 203 people and manages around 11.7 billion for private clients, charities, pension funds and institutions in the UK and internationally which include a range of offshore and onshore unit trusts and investment funds. Sarasin & Partners LLP was originally established in the City of London in 1983. It is 60% owned by Bank Sarasin and 40% owned by local management in London. Schroders, with a history dating back to 1804, manages 187.3 billion (EUR 224.2 billion/$291.0 billion) on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, fixed income and alternatives. Asset management is their entire focus and they employ 2921 talented people worldwide operating from 33 offices in 26 different countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs their approach to investing, building client relationships and growing their business.

Contact Details For more information, please speak to your financial intermediary, visit our website at www.glacierinternational.com or contact our Communication Centre on: Tel: +27 21 917 9002 Fax: +27 21 947 9210 Email: clientservices@glacierinternational.co.za 8/2013 i963 GLACIER FINANCIAL SOLUTIONS (PTY) LTD IS A LICENSED FINANCIAL SERVICES PROVIDER. 2012 P2INTERNATIONAL LTD., ALL RIGHTS RESERVED. P2 AND P2 FAMILY OF SERVICE MARKS ARE OWNED BY P2INTERNATIONAL, LTD., A MEMBER OF THE SANLAM GROUP