Imali Asset Management Prospectus 2020

MALI

ASSET MANAGEMENT INTELLIGENT ASSET MANAGEMENT SKILLFULLY DELIVERED

2020 PROSPECTUS

Monthly Investment Report

IMALI ASSET MANAGEMENT PTY LTD TEL: +27 21 201 1430 | 201 MASON’S PRESS | 7 RAVENSCRAIG ROAD | WOODSTOCK | CAPE TOWN | 7925 ALL RIGHTS RESERVED. AN AUTHORISED FINANCIAL SERVICES PROVIDER | REGISTRATION NO: 2017/135107/07 | FSP NO: 48326 WWW.IMALIASSETMANAGEMENT.CO.ZA

It’s OK to have your eggs in one basket as long as you control what happens to that basket.

Elon Musk

2 | IMALI ASSET MANAGEMENT

DESIGN BY PHILLIP @ GAMUTPLANET - 082 503 6227 | PHOTO: NORBERT WKAZMIERCZAK \ UNSPLASH

Index 1.

INVESTMENT PHILOSOPHY

2.

FACT SHEET

3. PORTFOLIO 4

ASSETS - AUM

5

PERFORMANCE PAGES

6

PERFORMANCE RANKING

7

WHO IS GREYSWAN?

7

IMALI DUE DILIGENCE

8

IMALI FACTS ABOUT THE COMPANY

9

FSA REGISTERED PRODUCTS

10 FSCA 11

IMALI DISASTER RECOVERY PLAN

12

RISK MANAGEMENT COMPLIANCE DOCUMENTS

13

IMALI LIQUIDITY CALCULATION

I4

IMALI PHYSICAL LICENSE TO TRADE

15

IMALI 2020 FINANCIAL STATEMENTS

IMALI ASSET MANAGEMENT | 3

Investment Philosophy Diversification Is Key Diversification is a technique that can be summed up by the timeless adage “don’t put all your eggs in one basket”. By selecting the right investments, this can help limit the level of investment losses and reduce the fluctuations of investment returns without sacrificing too much potential gain.

Investment Risk And Return Are Related The statement that Investment Risk and Return are related may sound obvious but it’s something that many of us as investors have ignored at our peril in the past. All investments carry some degree of risk, even cash. At IMALI, one of our goals is to educate clients on the different types of risk that exist when it comes to investing and thus hopefully avoid mistakes of the past.

Capital Markets Work When it comes to investing, it’s easy to follow the crowd but rare to outperform by chasing trends. We are committed to long-term investing and remaining invested even in times of market stress, investment markets throughout the world have a history of rewarding investors who stay the course. When it comes to building investment portfolios, that’s why it’s so important to have a well-defined, methodical approach to making investment decisions. If investors follow a structured and disciplined approach to investing, they will avoid many of the biases which cause them to act in irrational ways. Our role as investment managers and consultants are in-line with those of historic Capital Market performance.

Costs Matter We know that costs can have a significant impact on a portfolio’s long-term performance, that is why at IMALI, we implement passive strategies in our portfolios to ensure our investors are getting the best value possible for the chosen level of risk and return.

4 | IMALI ASSET MANAGEMENT

Investment Process Investment Process

Our disciplined process ensures that each solution is aligned with our overall philosophy. Our teams interact daily and meet formally on a regular basis to review strategies and assess all factors affecting individual portfolios. We constantly review the global economic situation, world financial markets and performance of individual sectors and instruments.

Asset Allocation Process

Our asset allocation process is specifically designed to meet the objectives, goals and mandates of our solutions. Strategic in nature, it is based on the results of our research model that focus on risk, asset allocation and investment performance (short, medium and long term). The building blocks are carefully selected based on these factors to fit into the solutions and to apply to our investment philosophy of capital preservation and growth. This applies mainly to our approach to underlying funds in our portfolios.

Portfolio Construction Process and Risk Management Process

All holdings are monitored and adjusted according to new information affecting one of our holdings. As a dedicated portfolio management and research team the continuous reviewing of information allows us to effectively manage risk by applying the research findings and answers of our models.

We employ a strict investment-risk control and full compliance program in order to adequately monitor our investment process. By means of full disclosure we maintain thorough accountability and our external compliance officer further enhance our process to comply with all legislations as required by legislation.

“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left.

The poor spend their money and invest what is left.�

Robert Kiyosaki

IMALI ASSET MANAGEMENT | 5

IMALI BCI PASSIVE BALANCED FUND (A)

MANAGED BY: IMALI ASSET MANAGEMENT - AUTHORISED FSP 48326 MINIMUM DISCLOSURE DOCUMENT

30 JUNE 2020

IMALI BCI Passive Balanced Fund (A) Minimimum Disclosure Document - 30 June 2020 FUND INFORMATION

INVESTMENT OBJECTIVE The objective of the Imali BCI Passive Balanced Fund is to offer investors a moderate to high long term total return mainly through the use of passive investment strategies.

INVESTMENT POLICY The fund will mainly invest in exchange traded funds and index related securities.

However, an active component may be included where deemed fit by the investment manager. Asset allocation and investment allocation factors may include factors such as market, defensive, quality, value and momentum strategies, and will be used with the aim to deliver better risk adjusted long term total returns than the market for similar risk profiled portfolios. The investment manager will apply and or rotate the factors and indices which they deem most appropriate to cater for the varying market conditions and investment cycles. The portfolio provides investors access to capital growth over the long term and may exhibit levels of volatility and possibly capital loss over the short term. The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act with a maximum net equity exposure of 75% of the portfolio’s asset value.

PERFORMANCE (Net of Fees)

% Cumulative Return

15% 10%

Portfolio Manager: Launch date: Portfolio Value: NAV Price (Fund Inception): NAV Price as at month end: JSE Code: ISIN Number: ASISA Category: Fund Benchmark: Minimum Investment Amount: #Monthly Fixed Admin Fee: Valuation: Valuation time: Transaction time: Regulation 28: Date of Income Declaration: Date of Income Payment:

Clayton Stewart 22 May 2018 R 136 704 591 100 cents 105.68 cents IPBFA ZAE000254728 SA Multi Asset High Equity **ASISA SA Multi Asset High Equity category average None R15 excl. VAT on all direct investor accounts with balances of less than R100 000 Daily 15:00 14:00 Yes 30 June/31 December 2nd working day of Jul/Jan

Income Distribution (cpu)

5%

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

0%

-

1.63

-

-

-

-

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

-

1.58

-

-

-

0.94

-5% -10%

11-2018

05-2019

11-2019

06-2020

Date

Imali BCI Passive Balanced Fund (A) Fund Benchmark Cumulative (%)

1 Year

3 Years

5 Years

10 Years

Since Inception

Fund

3.01

-

-

-

11.01

Fund Benchmark

0.49

-

-

-

4.07

Annualised (%) Fund

3.01

-

-

-

5.08

Fund Benchmark

0.49

-

-

-

1.91

Inception date: 22 May 2018 **Effective 01/04/2020: Fund had a benchmark change. Annualised return is the weighted average compound growth rate over the period measured.

Risk Statistics

Dec-19

FEE STRUCTURE Annual Service Fee: Initial Advisory Fee (Max): Annual Advice Fee: Initial Fee: Performance Fee: * Total Expense Ratio (TER): Performance fees incl in TER: Portfolio Transaction Cost: Total Investment Charge:

0.86% (Incl. VAT) 3.45% (Incl. VAT) 0 - 1.15% (if applicable) 0.00% (Incl. VAT) None Mar 20 : 1.46% (PY: 1.41%) Mar 20 : 0.00% (PY: 0.00%) Mar 20 : 0.14% (PY: 0.13%) Mar 20 : 1.60% (PY: 1.54%) All percentages include VAT

RISK PROFILE

Highest and Lowest

Fund

1 Year

3 Years

Standard deviation

15.20%

-

Calendar year performance since inception High

9.81%

Maximum drawdown -12.17%

-

Low

9.81%

MONTHLY RETURNS JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

YTD

2020

0.9

-4.3

-8.2

10.2

0.7

3.7

-

-

-

-

-

-

1.92

2019

1.6

3.4

1.8

2.1

-2.8

2.4

-0.8

-0.6

0.7

2.1

-1.1

0.8

9.81

2018

-

-

-

-

-

1.9

0.6

4.4

-2.7

-3.4

-2.4

0.7

-1.11

6 | IMALI ASSET MANAGEMENT

Medium Risk • This portfolio has a balanced exposure to various asset classes. It has more equity exposure than a low risk portfolio but less than a high-risk portfolio. In turn the expected volatility is higher than a low risk portfolio, but less than a high-risk portfolio.

• Where the asset allocation contained in this MDD reflects offshore exposure, the portfolio is exposed to currency risks.

• The portfolio is exposed to equity as well as default and interest rate risks.

• The portfolio is suitable for medium term investment horizons.

• The probability of losses is higher than that of a low risk portfolio, but less than a high-risk portfolio and moderate long term investment returns are expected.

IMALI BCI PASSIVE BALANCED FUND (A) | 1 of 2 DATE OF ISSUE: 15 JULY 2020

IMALI BCI PASSIVE BALANCED FUND (A)

MINIMUM DISCLOSURE DOCUMENT | 30 JUNE 2020

IMALI BCI Passive Balanced Fund (A) Minimimum Disclosure Document - 30 June 2020 PORTFOLIO HOLDINGS Asset Allocation (%) Domestic Equity Offshore Equity Domestic Bonds Domestic Cash Domestic Property Offshore Cash Offshore Property Offshore Bonds Africa Property

As at 31 May 2020

43.49 24.28 17.29 8.66 3.13 1.66 1.25 0.23 0.01 0

30

60

90

120

Top Holdings (%)

As at 31 May 2020

MI-PLAN IP Enhanced Income A1 Sygnia Itrix MSCI World ETF Satrix 40 ETF CoreShares S&P Global Divtrax ETF Prescient Income Provider A2 CoreShares S&P SA Top 50 ETF Naspers Ltd Class N MI-PLAN IP Global Macro B5 BHP Group PLC STANLIB Bond B5

13.5 11.1 9.8 9.2 6.3 6.1 5.7 5.3 3.4 2.6

INFORMATION AND DISCLOSURES Risks Certain investments - including those involving futures, options, equity swaps, and other derivatives may give rise to substantial risk and might not be suitable for all investors. Where foreign securities are included in the portfolio there may be additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of market information.

* Total Expense Ratio (TER) Please note: A higher TER ratio does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TER’s. Transaction Costs are a necessary cost in administering the Fund and impacts Fund returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Fund, the investment decisions of the investment manager and the TER. The prior year (“PY”) TER and Transaction cost calculations are based upon the portfolio’s direct costs for the financial year ended 31 August 2019, whilst the underlying portfolios’ ratio and cost calculations are based upon their most recent published figures, being 31 March 2020.

Effective Annual Cost: Boutique Collective Investments adopted the ASISA Standard on Effective Annual Cost ("EAC"). The EAC measure allows you to compare charges on your investments as well as their impact on your investment returns prior to investing. For further information regarding the ASISA Standard on Effective Annual Cost and access to the EAC calculator please visit our website at www.bcis.co.za. #Monthly Fixed Admin Fee: R15 excl. VAT which will apply to all direct investor accounts with balances of less than R100 000 at month end, unless an investor transacts online, in which case no such fee will be levied.

Total Investment Charges * Total Expense Ratio (TER)

Transactional Cost (TC)

Total Investment Charge (TER & TC)

1.46%

0.14%

1.60%

Of the value of the Fund was incurred as expenses relating to the administration of the Fund.

Of the value of the Fund was incurred as costs relating to the buying and selling of the assets underlying the Fund.

Of the value of the Fund was incurred as costs relating to the investment of the Fund.

FAIS Conflict of Interest Disclosure Please note that your financial advisor may be a related party to the co-naming partner and/or BCI. It is your financial advisor’s responsibility to disclose all fees he/she receives from any related party. The portfolio’s TER includes all fees paid by portfolio to BCI, the trustees, the auditors, banks, the co-naming partner, underlying portfolios, and any other investment consultants/managers as well as distribution fees and LISP rebates, if applicable. The portfolio’s performance numbers are calculated net of the TER expenses. The investment manager earns a portion of the service charge and performance fees where applicable. In some instances portfolios invest in other portfolios which form part of the BCI Scheme. These investments will be detailed in this document, as applicable.

Investment Manager Imali Asset Management (Pty) Ltd is an authorised Financial Service Provider FSP 48326.

Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge or can be accessed on our website www.bcis.co.za.

Valuation takes place daily and prices can be viewed on our website (www.bcis.co.za) or in the daily newspaper.

Actual annual performance figures are available to existing investors on request.

Upon request the Manager will provide the investor with portfolio quarterly investment holdings reports.

Management Company Information

Custodian / Trustee Information

Boutique Collective Investments (RF) (Pty) Limited Catnia Building, Bella Rosa Village, Bella Rosa Street, Bellville, 7530 Tel: +27 (0)21 007 1500/1/2 +27 (0)21 914 1880 + Fax: 086 502 5319 + Email: clientservices@bcis.co.za + www.bcis.co.za

The Standard Bank of South Africa Limited Tel: 021 441 4100

DISCLAIMER Boutique Collective Investments (RF) (Pty) Ltd (“BCI”) is a registered Manager of the Boutique Collective Investments Scheme, approved in terms of the Collective Investments Schemes Control Act, No 45 of 2002 and is a full member of ASISA. Collective Investment Schemes in securities are generally medium to long term investments. The value of participatory interests may go up or down and past performance is not necessarily an indication of future performance. BCI does not guarantee the capital or the return of a portfolio. Collective Investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees, charges and maximum commissions is available on request. BCI reserves the right to close the portfolio to new investors and reopen certain portfolios from time to time in order to manage them more efficiently. Additional information, including application forms, annual or quarterly reports can be obtained from BCI, free of charge. Performance figures quoted for the portfolio are from Morningstar, as at the date of this minimum disclosure document for a lump sum investment, using NAV-NAV with income reinvested and do not take any upfront manager’s charge into account. Income distributions are declared on the ex-dividend date. Actual investment performance will differ based on the initial fees charge applicable, the actual investment date, the date of reinvestment and dividend withholding tax.BCI retains full legal responsibility for the third party named portfolio. Although reasonable steps have been taken to ensure the validity and accuracy of the information in this document, BCI does not accept any responsibility for any claim, damages, loss or expense, however it arises, out of or in connection with the information in this document, whether by a client, investor or intermediary. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice or guidance in any form whatsoever. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of BCI's products.

IMALI ASSET | 7 IMALI BCI PASSIVE BALANCED FUND (A)MANAGEMENT | 2 of 2 + e: admin@imaliasset.com + t: 021 201 6808 + www.imaliassetmanagement.co.za + Unit 201 Mason's Press, 7 Ravenscraig Road, Woodstock, 7925

2020/06/30

Total iMALI AUM INVESTOR NAME

FUND NAME

AMOUNT

%

PRICE

BELL

IMALI BCI PASSIVE BALANCED FUND (A)

R 1 746,20

0,00%

1,06

AXIS NOMINEES

IMALI BCI PASSIVE BALANCED FUND (A)

R 15 523 925,57

11,36%

1,06

PRESCIENT LIFE IMALI SMART MAXIMISER

IMALI BCI PASSIVE BALANCED FUND (A)

R 104 198 600,57 76,22%

1,06

PRESCIENT RETIREMENT ANNUITY FUND

IMALI BCI PASSIVE BALANCED FUND (A)

R 6 543 201,75

4,79%

1,06

PRESCIENT LIVING ANNUITY

IMALI BCI PASSIVE BALANCED FUND (A)

R 1 237 672,49

0,91%

1,06

PRESCIENT PRESERVATION PENSION FUND

IMALI BCI PASSIVE BALANCED FUND (A)

R 1 565 430,79

1,15%

1,06

PRESCIENT PRESERVATION PROVIDENT FUND

IMALI BCI PASSIVE BALANCED FUND (A)

R 7 495 766,34

5,48%

1,06

PRESCIENT ENDOWMENT

IMALI BCI PASSIVE BALANCED FUND (A)

R 132 893,73

0,10%

1,06

R 136 699 237,44

17.86%

Imali Institutional Clients

82.14%

iMali Private Clients

AUM

8 | IMALI ASSET MANAGEMENT

2020/06/30

Prescient iMALI Smart Maximiser AUM INVESTOR NAME

FUND NAME

AMOUNT

PRESCIENT UMBRELLA PROVIDENT FUND

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

R 55 917 567,72

PRESCIENT UMBRELLA PENSION FUND

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

PRESERVATION PENSION FUND

%

PRICE

53,66%

1,09

R 40 838 675,83 3

9,19%

1,09

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

R 873 784,81

0,84%

1,09

PRESERVATION PROVIDENT FUND

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

R 1 480 823,87

1,42%

1,09

RETIRE ANNUITY

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

R 5 850 445,13

5,61%

1,09

LIVING ANNUITY

27FOUR LIFE IMALI SMART MAXIMISER PORTFOLIO

R 738 855,81

0,71%

1,09

R 104 198 600,57

Platform Exposure Glacier

BCI Platform

0.0013%

11.36%

My philosophy is that if I have any money I invest it in new MIZER ventures and not have it sitting around.

AUM MAXI SMART

Prescient

12.42%

Richard Branson Prescient Life

76.22% IMALI ASSET MANAGEMENT | 9

10 | IMALI ASSET MANAGEMENT

Portfolio Description

Portfolio Construction Strategy

The IMALI Smart Maximiser Portfolio will be measured against the ASISA Multi-asset high equity average. The Portfolio aims to provide maximum growth in capital that is greater than the benchmark, over a rolling 6-year period. The portfolio will be managed by implementing a coresatellite approach and will blend active and passive management and will only switch instruments as and when identified by the quantitative selection process. Furthermore, the portfolio will invest in Exchange Traded Products due to their low cost, transparent and diversified nature. The portfolio will also consist of Alternative Investment products that aim to reduce the price volatility of the portfolio. The portfolio is ideal for risk averse investors with a long-term investment horizon.

Distributions received from the Portfolio will automatically be reinvested into the portfolio in order to maximise total returns and optimise tax efficiency.

The portfolio construction follows a cost effective and transparent core-satellite management style.

Investment objectives are achieved by abiding to strict risk control measures as well as implementing a smart beta and stand fast investment philosophy. The portfolio is constructed according to a strategic asset allocation diversified across a range of asset classes and are invested in Exchange Traded Products (ETFs). These include domestic equities, domestic interestbearing assets, domestic listed property, international equity, international property and cash.

The Portfolio intends to reduce an element of volatility by investing in Alternative Investment Vehicles, however, short term fluctuations may occur.

The underlying instruments and securities selected within each asset class has been selected to best meet the portfolios mandate.

Actual asset class weights can move away from the strategic benchmark asset allocation within selected tolerance bands. Specific Rebalancing methodologies are continuously evaluated and are optimised for cost efficiency.

About the Portfolio Manager Clayton Stewart, B Com Clayton’s expertise is vast in traded equities, bonds and instrument on various bourses around the world, traded forex across various currencies, structuring portfolios and international investment solutions, wealth offshore trading across jurisdictions, including the setup of offshore structures and structured finance deals. Clayton has extensive experience managing Unit trust/ Funds both locally and internationally for IMALI Asset Management (Pty) Ltd, as part of the Portfolio Management Team.

Notes: 1. The performance of the Model Portfolio represents the theoretical performance of the strategic asset allocation without the impact of actual investment cash flows.

The performance numbers are simulated and not actual, using a back-testing method.

2. All returns quoted are net of fees – that is, after deduction of all expenses as quoted in the Portfolio Management TER. Returns for periods exceeding one year are annualised. All returns are in Rands.

3. The benchmark is a composite benchmark as per the weights and indices as indicated on the first page. The return is an estimate and is displayed as a general guide which is subject to change without notice to investors.

4. All holdings information is based on latest available data. There may be differences in totals due to rounding.

Disclaimer This investment portfolio is administered by Prescient Fund Services, a registered long-term insurer and an authorised financial services provider in terms of the Financial Advisory and Intermediary Services Act (FAIS Act) FSP licence number 43191. The investment manager is IMALI Asset Management (Pty) Ltd, an authorised financial services provider in terms of the FAIS Act, FSP licence number 48326. This fact sheet has been compiled to provide factual information on the policy offered and does not constitute advice as defined and contemplated in the FAIS Act. IMALI recommends that financial advice be sought should any party seek to place any reliance on the information contained herein or for purposes of determining the suitability of the products for the investor as mentioned in this document. IMALI and its officers, directors, agents, advisors and employees, including persons involved in the preparation or issuance of this document, may from time to time act as manager or advisors in relation to the securities or investment products which are the subject of this document. All returns are quoted after the deduction of portfolio management fees. Past investment returns are not indicative of future returns and the value of investments will fluctuate over time. Any modelling or back-testing data contained in this document should not be construed as a statement or projection as to future performance.

Although reasonable steps have been taken to ensure the validity and accuracy of the information in this document, Prescient and IMALI do not accept any responsibility for any claim, damages, loss or expense, howsoever arising, out of or in connection with the information in this document, whether by a client, investor or intermediary.

BetaPlus Group Solutions (Pty) Ltd shareholders have an interest in IMALI Asset Management (Pty) Ltd.

My philosophy is that if I have any money I invest it in new ventures and not have it sitting around.

Richard Branson

IMALI ASSET MANAGEMENT | 11

31 July 2020

IMALI BCI PASSIVE BALANCED SA MULTI ASSET HIGH EQUITY

ABSOLUTE PERFORMANCE Portfolio

Since Inception*

Imali BCI Passive Balanced

6.06%

SA Mt SA Multi Asset High Equity – Average

3.03%

SA Mt SA Multi Asset High Equity – Passive Fund Average**

3.71%

*22 May 2018, annualised

-3.93%

Manager 180

-17.27%

-0.62%

Manager 170

Manager 186

0.41%

0.78%

Manager 150

Manager 160

1.11%

1.64%

Manager 130

Manager 140

2.08%

2.88%

Manager 100

Manager 120

3.12%

Manager 90

2.41%

3.44%

Manager 80

Manager 110

4.02%

5.15%

Manager 50

Manager 70

5.63%

Manager 40

4.44%

5.99%

Manager 30

Manager 60

6.37%

Manager 20

9.01%

Manager 10

14.04%

Manager 1

3.03%

Industry Average

6.06%

20% 15% 10% 5% 0% -5% -10% -15% -20%

Imali BCI Passive Balanced

Annualised Performance Since Inception

ASISA SOUTH AFRICA MULTI ASSET HIGH EQUITY

1.10%

1.10%

Manager 11

1.59%

Manager 9

Manager 10

1.64%

2.5%

Manager 8

2.83%

3.35%

3.77%

5.86%

Manager 3

5.0%

4.31%

6.18%

Manager 2

3.71%

6.06%

7.5%

6.75%

10.0%

Manager 7

Manager 6

Manager 5

Manager 4

Manager 1

Passive Fund Average**

0.0% Imali BCI Passive Balanced

Annualised Performance Since Inception

ASISA SOUTH AFRICA MULTI ASSET HIGH EQUITY – PASSIVE FUNDS**

SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

12 | IMALI ASSET MANAGEMENT

31 July 2020

IMALI BCI PASSIVE BALANCED SA MULTI ASSET HIGH EQUITY

RANKINGS Portfolio

Since Inception*

Imali BCI Passive Balanced

29

Number of Funds

187

RANKINGS (PASSIVE FUNDS**) Portfolio

Since Inception*

Imali BCI Passive Balanced

3

Number of Funds

12

ANNUALISED STANDARD DEVIATION Portfolio

Since Inception*

Imali BCI Passive Balanced

11.47%

SA Mt SA Multi Asset High Equity TR in ZA

11.14%

SA Mt SA Multi Asset High Equity – Passive Funds*

12.44%

ASSET ALLOCATION 50% 44.1%

40%

40.1%

30% 25.7%

24.1%

23.4%

Imali BCI Passive Balanced SA Multi Asset High Equity

18.9%

20%

13.1%

10% 3.0%

0%

SA Equities

4.4%

SA Property

3.0%

SA Bonds

SA Cash

Offshore

SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

IMALI ASSET MANAGEMENT | 13

31 July 2020

IMALI BCI PASSIVE BALANCED SA MULTI ASSET HIGH EQUITY

15% 10% 5% 0% -5%

Imali BCI Passive Balanced TR in ZA

SA Mt SA Multi Asset High Equity

Annualised Performance Since Inception

ASISA SOUTH AFRICA MULTI ASSET HIGH EQUITY 15%

Q1

10%

LowerBound

5%

Imali BCI Passive Balanced TR in ZA

6.06% 3.03%

0% -5% -10%

Industry Average Q2 UpperBound Q3

**The following funds have been included in the SA Multi Asset High Equity Passive Fund Average: 1. Alexander Forbes Investments Aggressive Passive TR in ZA 2. Imali BCI Passive Balanced TR in ZA 3. Imali Smart Maximiser – Prescient 4. Momentum Target 6 Fund of Funds TR in ZA 5. Nedgroup Investments Core Accelerated TR in ZA 6. Nedgroup Investments Core Diversified TR in ZA 7. PPS Balanced Index Tracker TR in ZA 8. Prescient Cordatus Balanced Prescient TR in ZA 9. Satrix Balanced Index TR in ZA 10. STANLIB 1NVEST High Equity Passive Balanced Fund of Funds TR in ZA 11. Sygnia CPI Plus 6% TR in ZA 12. Sygnia Skeleton Balanced 70 TR in ZA. SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

14 | IMALI ASSET MANAGEMENT

2020-07-31

2020-06-30

2020-05-31

2020-04-30

2020-03-31

2020-02-29

2020-01-31

2019-12-31

2019-11-30

2019-10-31

2019-09-30

2019-08-31

2019-07-31

2019-06-30

2019-05-31

2019-04-30

2019-03-31

2019-02-28

2019-01-31

2018-12-31

2018-11-30

2018-10-31

2018-09-30

2018-08-31

2018-07-31

2018-06-30

2018-05-31

-10% 2018-05-22

Cumulative Performance Since Inception

CUMULATIVE PERFORMANCE

IMALI ASSET MANAGEMENT | 15

1,84% 1,24% 3,02% 2,80% 0,22% 1,40% 1,70% 5,86% 4,10%

Sentio Sanlam Collective Investments Hikma Shariah Balanced

ARGON ABSOLUTE RETURN FUND

-- AVERAGE -- SA -Mut Aset High Eq

Sentio Sanlam Collective Investments Balanced Fund

Mianzo CPI + 3% ACI Fund - A1

VUNANI DOMESTIC ABSOLUTE RETURN COMPOSITE [CPI+6%]

Mergence Domestic CPI + 5% Fund

Perpetua SCI Balanced Fund - A

Prescient Absolute Balanced - A2

5,69%

3,88%

Prescient Balanced Fund - A2

Kagiso Balanced Fund

0,26%

Ngwedi Absolute Return SNN Fund - I1

3,06%

4,80%

Taquanta Nedgroup Investments Core Diversified Fund - B

Prowess Balanced ACI Fund - B3

3,66%

Imali BCI Passive Balanced Fund - A

-1,17%

3,26%

Aeon Balanced Prescient Fund (CPI + 5%)

FVC ENDURANCE SEGREGATED PORTFOLIO

6,26%

1 MTH

Visio BCI Balanced Fund - A

Name

13,13%

12,94%

NA

14,91%

13,85%

-0,50%

NA

3,54%

13,36%

13,55%

6,49%

8,96%

15,32%

3,87%

16,49%

15,06%

16,36%

17,78%

3 MTHS

-10,59%

-10,14%

NA

-8,10%

-6,99%

-3,58%

NA

-3,74%

-3,24%

-2,04%

-1,76%

-1,75%

-1,18%

-0,89%

-0,81%

1,92%

4,07%

8,07%

6 MTHS

-10,59%

-10,14%

-9,58%

-8,10%

-6,99%

-4,96%

-4,40%

-3,74%

-3,24%

-2,04%

-1,76%

-1,75%

-1,18%

-0,89%

-0,81%

1,92%

4,07%

8,07%

YTD

-2,96%

-16,64%

-10,52%

-5,98%

-2,43%

-2,05%

-1,30%

NA

-3,08%

0,42%

0,23%

-1,96%

1,60%

NA

0,83%

3,01%

7,05%

NA

1 YR

3,58%

NA

NA

2,63%

0,25%

3,16%

2,10%

NA

NA

3,62%

4,15%

3,75%

5,97%

NA

4,56%

5,96%*

7,05%

NA

3 YRS

4,81%

NA

NA

1,42%

0,70%

4,17%

NA

NA

NA

3,59%

NA

NA

5,38%

NA

4,38%

5,78%*

6,77%

NA

5 YRS

MAY VALUES*

MAY VALUES*

MAY VALUES*

LOW EQUITY FUND

NOTES

31 July 2020

IMALI SNAPSHOT

SA MULTI ASSET HIGH EQUITY ABSOLUTE PERFORMANCE Portfolio

2 Year Since Annualised Inception*

1Month

3Months

YTD

1 Year

Imali Smart Maximiser – Prescient

2.51% 1.97%

7.01% 6.37%

4.48% 3.86%

6.47% 5.76%

10.66% 9.49%

6.06% 4.31%

Fund Benchmark (5% STeFI, 10% ALBI, 50% JSE ALSI, 10% SAPY, 25% MSCI World)

1.80%

8.07%

0.61%

3.52%

9.33%

4.65%

SA Mt SA Multi Asset High Equity – Average

2.18%

5.84%

0.44%

3.70%

5.99%

3.03%

SA Mt SA Multi Asset High Equity – Passive Fund Average**

2.35%

6.89%

1.18%

3.83%

7.01%

3.71%

Imali BCI Passive Balanced A TR in ZA

*22 May 2018, annualised

-5.49%

-17.27% Manager 185

0.25% Manager 160

Manager 180

0.77% Manager 150

0%

-0.63%

1.10% Manager 140

1.59% Manager 130

2.40% Manager 110

1.98%

2.88% Manager 100

Manager 120

3.10% Manager 90

3.35% Manager 80

4.44% Manager 60

3.94%

5.15% Manager 50

Manager 70

5.63%

5.99% Manager 30

Manager 40

6.37% Manager 20

9.01%

14.04%

3.03%

5%

4.65%

10%

4.31%

15%

6.06%

20%

-5% -10%

Manager 170

Manager 10

Manager 1

Industry Average

Fund Benchmark

-20%

Imali Smart Max. - Prescient

-15% Imali BCI Passive Balanced

Annualised Performance Since Inception

ASISA SOUTH AFRICA MULTI ASSET HIGH EQUITY

1.10%

1.10%

Manager 10

1.59%

Manager 8

Manager 9

1.64%

2.5%

Manager 7

2.83%

3.35%

5.86%

Manager 3

3.77%

6.18%

Manager 2

6.75% 4.65%

Fund Benchmark

3.71%

4.31%

5.0%

Imali Smart Max. - Prescient

7.5%

6.06%

10.0%

Manager 6

Manager 5

Manager 4

Manager 1

Passive Fund Average**

0.0% Imali BCI Passive Balanced

Annualised Performance Since Inception

ASISA SOUTH AFRICA MULTI ASSET HIGH EQUITY – PASSIVE FUNDS**

SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

16 | IMALI ASSET MANAGEMENT

31 July 2020

IMALI SNAPSHOT

SA MULTI ASSET HIGH EQUITY RANKINGS 1Month

3Months

YTD

1 Year

2 Year

Imali BCI Passive Balanced A TR in ZA

72

57

34

59

47

Since Inception 29

Imali Smart Maximiser – Prescient

114

87

43

68

59

64

Number of Funds

205

205

205

205

189

187

3Months

YTD

1 Year

2 Year 4

Portfolio

RANKINGS (PASSIVE FUNDS**) Portfolio

1Month

Since Inception 3

Imali BCI Passive Balanced TR in ZA

8

8

3

4

Imali Smart Maximiser – Prescient

10

12

5

5

5

5

Number of Passive Funds

14

14

14

14

12

12

RISK VS RETURN

ANNUALISED STANDARD DEVIATION

Imali BCI Passive Balanced

11.47%

Imali Smart Maximiser – Prescient

11.42%

Fund Benchmark

14.44%

SA Mt SA Multi Asset High Equity TR in ZA

11.14%

SA Mt SA Multi Asset High Equity – Passive Funds**

12.44%

Annualised Return Since Inception

Since Inception

Portfolio

20%

Imali BCI Passive Bal.

10% 0%

Industry Average

-10%

Imali Smart Max. - Prescient

-20%

0%

5%

10%

15%

20%

Annualised Standard Deviation

ASSET CLASS ABSOLUTE PERFORMANCE Asset Class

1Month

3Months

YTD

1 Year

SA Equity (JSE ALSI)

2.56%

10.83%

-0.68%

1.58%

SA Property (SAPY)

-3.19%

8.97%

-39.55%

-41.19%

2 Year Since Annualised Inception* 3.81% 1.31% -41.14%

-23.26%

SA Bonds (ALBI)

0.61%

6.44%

0.97%

4.25%

12.65%

6.31%

SA Cash (STeFI)

0.42%

1.36%

3.62%

6.66%

14.48%

7.00%

Offshore Equity (MSCI World)

3.02%

3.84%

20.33%

27.55%

42.80%

21.36%

Offshore Property (GPR 250 Global Property)

1.30%

-2.06%

-0.10%

3.26%

21.58%

14.93%

ASSET ALLOCATION 50% 40%

44.1% 43.8% 40.1%

30%

25.7% 25.6% 18.9%

20%

13.1%

10% 0%

24.1% 23.9% 23.4%

3.0% 3.0% 4.4%

SA Equity

SA Property

Imali BCI Passive Balanced Imali Smart Maximiser - Prescient SA Multi Asset High Equity

3.0% 3.7%

SA Bonds

SA Cash

Offshore

SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

IMALI ASSET MANAGEMENT | 17

31 July 2020

IMALI SNAPSHOT

SA MULTI ASSET HIGH EQUITY

15% 10% 5% 0% -5%

Imali BCI Passive Balanced TR in ZA

Imali Smart Maximiser - Prescient

Fund Benchmark

SA Mt SA Multi Asset High Equity

2020-07-31

2020-06-30

2020-05-31

2020-04-30

2020-03-31

2020-02-29

2020-01-31

2019-12-31

2019-11-30

2019-10-31

2019-09-30

2019-08-31

2019-07-31

2019-06-30

2019-05-31

2019-04-30

2019-03-31

2019-02-28

2019-01-31

2018-12-31

2018-11-30

2018-10-31

2018-09-30

2018-08-31

2018-07-31

2018-06-30

2018-05-31

-10%

2018-05-22

Cumulative Performance Since Inception

CUMULATIVE PERFORMANCE

TOTAL EXPENSE RATIO* 3.0% Q1

Total Expense Ratio

2.5%

LowerBound

2.0% 1.5%

Imali BCI Passive Balanced TR in ZA 1.46%

1.57%

1.0%

Industry Average Q2 UpperBound

0.5%

Q3

0.0% *as at 30/06/2020 **The following funds have been included in the SA Multi Asset High Equity Passive Fund Average: 1. 10X High Equity Index TR in ZA 2. Absa Multi Managed Passive Growth TR in ZA 3. Alexander Forbes Investments Aggressive Passive TR in ZA 4. Imali BCI Passive Balanced TR in ZA 5. Imali Smart Maximiser – Prescient 6. Momentum Target 6 Fund of Funds TR in ZA 7. Nedgroup Investments Core Accelerated TR in ZA 8. Nedgroup Investments Core Diversified TR in ZA 9. PPS Balanced Index Tracker TR in ZA 10. Prescient Cordatus Balanced Prescient Fund TR in ZA 11. Satrix Balanced Index TR in ZA 12. STANLIB 1NVEST High Equity Passive Balanced Fund of Funds TR in ZA 13. Sygnia CPI Plus 6% TR in ZA 14. Sygnia Skeleton Balanced 70 TR in ZA. SOURCE: ProfileData DISCLAIMER: Gray Swan Financial Services (Pty) Ltd does not make any guarantees with respect to the protection of capital or returns. Past performance is not necessarily an indication of future performance. The information does not constitute financial advice as contemplated in terms of the Financial Advisory and Intermediary Services Act. Use or rely on this information at your own risk. Independent professional financial advice should always be sought before making an investment decision. Gray Swan Financial Services (Pty) Ltd (Reg No: 2010/009813/07) is an authorised Financial Services Provider (FSP No: 42290).

18 | IMALI ASSET MANAGEMENT

MALI

ASSET MANAGEMENT

“Investing money is the process of committing resources in a strategic way to accomplish a specific objective.”

Alan Gotthardt, The Eternity Portfolio

IMALI ASSET MANAGEMENT | 19

“It’s important to know what you want to accomplish with your investments before you actually invest.”

Oscar Auliq-Ice

20 | IMALI ASSET MANAGEMENT

INTRODUCTION

GRAYSWAN INVESTMENTS

GRAYSWAN INVESTMENT CONSULTING SERVICES www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

INTRODUCTION

GRAYSWAN INVESTMENTS

We are an award-winning investment consulting business and our clients are top performers “Black Swan” events are random and unexpected. They are the unpredictable unknowns such as Brexit and Trump.

“GraySwans”, as we coined the term and named our business, are those risks that can be identified and which may have unintended adverse consequences for investors and therefore should be managed to ensure adequate compensation thereof or should be avoided.

At GraySwan we do not intend to predict the unpredictable. Our unique, refreshing and high conviction investment consulting approach empowers retirement funds as well as other institutional investors to identify risks and then to pro-actively manage such risks in their investment portfolios or to avoid such risks. The essence of investment management is the management of risks, not the management of returns.

We take great pride in our work, our in depth proprietary research and our superior long term record. We provide objective, transparent, high conviction and measurable value add investment consulting services and we believe that makes all the difference. Our clients are all top performers – such speak to an investment consulting process that has been refined over the past two decades that works.

“The thing is, we still live in a world that’s filled with opportunity.

In fact, we have more than an opportunity – we have an obligation.

An obligation to spend our time doing great things.

To find ideas that matter and to share them.

To push ourselves and the people around us.

To demonstrate gratitude, insight, and inspiration.

To take risks and to make the world better by being amazing.”

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

INTRODUCTION

GRAYSWAN INVESTMENTS

We conduct business based on the following values:

BOUTIQUE

TRUSTWORTHY

We are a boutique company. We provide premium and tailor-made services. We strive to provide an authentic experience that meets each client’s unique needs. Boutique does not mean expensive and exclusive, it means focused and tailor-made.

Doing the right things for the right reasons is in our DNA. That is why clients can trust our advice and why they can Sleep Well At Night (“SWAN”). We value total transparency and invest their money with highly reputable investment managers.

DISCIPLINED

PASSIONATE

We always count. We conduct thorough and detailed quantitative and qualitative and operational research of the universe of investment managers before we advise our clients to invest.

We believe passion changes everything. Our passion for investments is the reason why we exist. Passion drives us to find new investment opportunities and innovate smarter ways of doing things. We always go the extra mile.

RESPONSIBLE INVESTING GraySwan is a signatory to the United Nations Principles of Responsible Investing (UNPRI) and have previously been awarded as the Responsible Investment Consultant of the Year. This award is testimony to our unique and leading edge approach of incorporating best practice Responsible Investing principles into our investment advisory and wealth management approach.

The award aims to recognise and reward service providers who have given extraordinary service to retirement funds in terms of the incorporation of Responsible Investment principles into their investment consulting approach.

We are the only South African investment consultant to be a member of the PRI’s Global Reporting and Assessment Committee. We believe the road of being responsible is the road less travelled but it makes all the difference.

UN PRI is an international investor initiative sponsored by the UN and based on six principles for responsible investments. The aim is to help investors actively to incorporate environmental, social and governance issues into their investments.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

CHARITABLE TRUST

GRAYSWAN INVESTMENTS

PAY IT FORWARD “We make a living by what we get, but we make a life by what we give.”

-Winston Churchill We’re more than just an investment consulting business. We are a business that cares. We make a living by what we get, but we make a life by what we give.

Since inception of our business we have channelled 10% of our company’s profits to various organisations via our GraySwan Charitable Trust. We care about our direct community. It’s in our DNA and part of the adventure at GraySwan.

We don’t just commit finance but also material amounts of our time.

One of the highlights of the many GraySwan charitable projects is our School Shoes Project “Walk with a Purpose” which has donated more than 10 000 shoes and more than R3,000,000 to underprivileged schools in our direct community.

Our website is comprehensive and covers our ongoing involvement in our community www.walkwithapurpose.co.za

CLICK HERE TO WATCH OUR

LATEST VIDEO (JULY 2019)

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

SERVICES

GRAYSWAN INVESTMENTS

OUR INVESTMENT CONSULTING SERVICES Our investment consulting offering includes a comprehensive range of services. These services can be acquired as a complete full retainer offering or they could be provided on an ad-hoc basis as and when required. We tailor make our offering according to any clients’ specific needs. We serve our clients on a non-discretionary advisory or a discretionary investment advisory model. Every client is different and we tailor-make our offering to fit their needs.

Investment Audit

Investment Strategy and Asset Liability Modeling

Manager Research and Selection

Risk Management

Performance, Risk and Mandate Monitoring

Transaction Cost Analysis (“TCA”) Reporting

Securities Lending Income Monitoring

Transition Monitoring

Trustee Training

On-Line Technology

Many of our services are unique i.e. our Investment Review services, Transaction Cost Analyses and Policy, Securities Lending Reports and Policy, Responsible Investment Policy, Total Expense Ratio reports and many more.

For example, it is best practice to have an independent investment review conducted on your current investment strategy. We provide objective recommendations as to where enhancements can be made, transparency increased and fees reduced. Our recommendations serve as a “second opinion” to ensure that global best practice is implemented and that you are optimally positioned to reach your performance objectives.

We do not have any arrangements with any product providers to our institutional clients, nor are we affiliated or have any relationship with any life insurer, investment platform, investment manager, stockbroker or custodian and we do not market or sell any investment products to our institutional clients. We do not manage conflicts of interest, we avoid such.

ALWAYS HAVE ACCESS TO OUR BEST VIEWS

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

CLIENTS

GRAYSWAN INVESTMENTS

OUR CLIENTS Currently we provide investment consulting services to in excess of R20 billion of assets. Our investment consulting clients range from as small as a R35 million group retirement annuity and a R250 million medical aid fund to as large as a R4 billion retirement fund and a R5 billion short term insurer.

The investment strategies which we have implemented range from specialist, balanced and liability driven investment (LDI) strategies and we include both actively managed and passively managed strategies within our best advice framework.

Each client is regulated by different legislation and every client has their own fund or scheme rules and own unique liabilities and investment requirements. Our investment process remains exactly the same across all our clients but we simply take cognisance of such unique requirements to tailor-make our advice to suit such needs.

Our clients are the ambassadors of our business and our business has been built primarily on word of mouth. Our clients have yielded superior investment performance than the industry and have experienced service excellence.

We have furthermore been impressed by their work ethic and attention to detail when investigating opportunities, conducting due diligences (both local and abroad) and when scrutinising investment manager mandates and their respective performance and risk. We are particularly pleased by GraySwan’s uncompromising attitude towards staying truly independent, since it is important to us that our investment consultant does not have conflicting interests that could impact on the absolute objectivity of their advice.

“

“

Since their appointment in 2010, GraySwan’s advice has resulted in a significant improvement in our investment results. Our Fund now rank under the top performers in the country and such results has been obtained with material hedging strategies in place to ensure that the Fund provides superior risk adjusted results.

The reference is from a large multi-billion institutional client. We assisted them to enhance their investment strategy, to reduce the number of mandates from in excess of 25 mandates to 11 mandates, to reduce the costs of the Fund by more than 25%, to materially increase the transparency and liquidity of the underlying investments and have turned around the performance to now being a top performer versus their peers – all within 3 years. We have also now assisted them to implement “In Fund” annuities and a best practice financial advisory model to the underlying members. They are the top performing retirement fund in their industry and their fees are bottom quartile.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

TEAM

GRAYSWAN INVESTMENTS

OUR INVESTMENT CONSULTING TEAM “Consult with wise men, let their wisdom protect thy treasure from unsafe investments.”

- George S. Clason - The richest man in Babylon Our depth of our collective experience of more than 100 years of providing investment consulting and investment management services to most of the most prestigious institutional funds in the country perfectly positions us to assist any retirement fund, medical aid fund, corporate investor or even umbrella fund. The core of our investment consulting team has worked together for in excess of 12 years. The average experience of our investment consultants is 13 years which is significant.

Having consulted to 7 of the largest 10 pension funds as well as many other medium and smaller sized funds in South Africa and also having previously managed many of these funds’ offshore assets provides us with a competitive edge versus our competitors. Most investment consultants do not have actual investment management experience. Our previous experience of managing an offshore alternative investment manager provides us with practical rather than theoretical insights.

Our investment consultant to client ratio is the highest in the industry which gives us a strong competitive advantage.

Therefore, our clients receive a premium and world class service which leads to superior risk adjusted and sustainable performance.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

APPROACH

GRAYSWAN INVESTMENTS

OUR INVESTMENT CONSULTING APPROACH “Two roads diverged into the woods, we took the road less travelled and that has made all the difference.”

- Robert Frost A robust and well-defined investment strategy enables investors to achieve their short, medium and long-term investment objectives in any market environment. We act as the investment architects and long term thinking investment partners thereby empowering investors to optimally combine different asset classes, different investment styles and different type of investment manager mandates within a clear and well-defined performance and riskmanaged framework.

CONSTRUCTING A STRATEGIC AND TACTICAL ASSET ALLOCATION The most important starting point is to establish the performance objectives and risk tolerances of a Fund and to test whether such can be met and managed within a pre-defined framework. We test such objectives by using our unique proprietary asset modelling optimization program where we model asset classes both testing historically and by making forward looking adjustments based on our expectations. This process enables us to construct a Strategic Asset Allocation (SAA) with Tactical Asset Allocation (TAA) bands based on forward looking beliefs that would meet all the performance objectives and risk parameters identified.

Understanding the nature of the liabilities and then defining the optimal performance objective, time horison and risk tolerance is the key to building any successful investment strategy. We know that strategic long-term asset allocation counts for approximately 80% to 90% of the variation in portfolio returns whilst tactical asset allocation and dynamic hedging strategies counts for about 10% and investment manager selection for another 10% in the variance of returns.

We believe success in the next few years will ultimately depend on our client’s ability to implement tactical asset allocations, periodic rebalancings into strength and to buy into the dips when opportunities arise.

INVESTMENT MANAGER SELECTION We also know that if we invest with quality and premium investment managers they will assist us to manage our clients’ expectations and thereby meet pre-defined performance targets within a well-managed risk budget.

Investing is a world where every investment manager claims to be terrific and they can typically back it up with some or other performance analytics. However, most investment managers actually underperform the market, making active management a losers’ game unless the investment consultant have the skill to advise their clients to select superior investment managers and furthermore blend them in an optimal manner to provide superior risk adjusted returns.

The problem is not that investment management is not done well, the problem is it is done well and by many and the active investment management universe thereby becomes the market.

Although there is enough evidence to support a passive investment management approach there is also evidence to indicate that truly exceptional investment managers can beat the market which is an argument in favour of an active investment management strategy. We advise our clients to use a combination of passive and active funds in their portfolios. We believe both these approaches has a place in a well-diversified and cost-effective investment portfolio.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

APPROACH

GRAYSWAN INVESTMENTS

Further, as Charles Ellis highlights in his paper - The Winners Game – “… investment managers may or may not outperform their benchmarks, but if the investment consultant has not understood how best to meet the investor’s requirements, its game over. It’s actually the investment consultant and not the investment manager who has the greatest impact on outcomes and performance.”

Our unique and high conviction investment manager research and selection advisory offering centres around a deep understanding of the investment manager industry of which their expertise were gained over the past two decades.

We have gained our competitive edge not only from our wealth of investment consulting experience, but also from our offshore investment management backgrounds where we managed an offshore alternative fund of fund investment management business which at the time was one of the largest 100 alternative fund of fund businesses in the world.

We look for investment managers that have consistent investment philosophies, distinct and replicable investment processes and an ability to meet your performance objectives within a well-defined risk managed framework and within pre-defined time horizons. We focus our investments manager research and selection process on in-depth qualitative, quantitative and operational research and on-site due diligence in order to guide you to select the optimal blend of investment managers that will lead to superior performance.

PORTFOLIO CONSTRUCTION We make use of our proprietary optimisation program to ensure the optimal blend of skilled active, passive and smart beta investment managers within each asset class, investment strategy and investment style.

Diversification is managed in a number of ways such as: • • • •

Asset class composition; Geographical allocation (i.e. local versus offshore and Africa assets and developed vs emerging markets); Portfolio construction (i.e. the optimal combination of asset classes and investment managers, investment styles, investment approaches.); Currency and equity hedging strategies as and when suitable.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

APPROACH

GRAYSWAN INVESTMENTS

INCORPORATION OF OUR VIEWS After identifying and blending the most optimal investment managers and funds we incorporate our current and forward-looking views within the Tactical Asset Allocation (TAA) bands. Our investment team functions as a cohesive unit which interacts daily and formally meets on a monthly basis to review the current investment portfolios, to discuss the current global market environment and most importantly to identify where opportunities exist and / or any risks which needs to be managed within any one of their client portfolios.

EXECUTION, MONITORING & IMPLEMENTATION We implement our investment beliefs with high conviction and at low costs and conduct such timeously. Thereafter we monitor our clients’ underlying investments on a continuous basis and report on such to their Investment Committee.

We always count. We test, we test and we test again. We provide full and fair and fully transparent and timeous disclosure of any investment results, guaranteeing that all investment managers or products are assessed on a level and objective playing field.

OUR TAILOR-MADE PERFORMANCE AND RISK REPORTS AS WELL AS OUR COMPREHENSIVE RANGE OF PEERGROUP SCORECARDS EMPOWER OUR CLIENTS TO FOCUS ON THOSE RISKS THAT ARE TRULY MATERIAL. THIS ENABLES THEM TO FULFIL THEIR FIDUCIARY ROLES THROUGH MAKING INFORMED, PROCESS DRIVEN AND TIMELY INVESTMENT DECISIONS. Our reporting tools empower our clients to audit the success of their long-term investment strategy as well as to monitor the selected investment managers, mandates or products to customised and clearly defined benchmarks, performance targets and risk guidelines.

RISK MANAGEMENT We believe that our strong risk culture - driven by our collective analytical and qualitative insight, intellectual discovery, experienced judgement and active collaboration between our clients and their selected investment managers - plays a critical role in the establishment of an effective risk management process.

Our approach is influenced by our strong risk management backgrounds, which we have gained not only in our wealth of investment consulting experience but also from our offshore investment management backgrounds. We empower our clients via quantitative and qualitative risk monitoring to understand the trade-offs between performance, risk and liquidity and to have better control of their investments. We empower our clients to develop a risk culture to thereby ensure risk efficient portfolios. We help our clients to be risk aware - not risk averse.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

SUMMARY

GRAYSWAN INVESTMENTS

TRUSTEE TRAINING We host ongoing training workshops for investors. Such workshops are interactive and developed to suit our clients specific needs. Investments and education is our passion. We provide training on relevant topics in a simplistic yet informative manner. The better our clients understand investments, the more successful their decisions-making will be.

WE PROVIDE PREMIUM AND TAILOR-MADE INVESTMENT ADVISORY SERVICES.

SUMMARY We are not just our clients’ investment consultants. We always go the extra mile. We help our clients to be great, to be remarkable, and to be the best in their industry. We are our client’s strategic long-term investment thinking partner and we care.

We believe that our independence, our wealth of investment consulting experience, our previous investment management experience, our stable team and our superior service ethos and excellent long term track record differentiates us from our peers.

WE INVITE YOU TO CONSIDER TAKING THE ROAD LESS TRAVELLED AS THAT WILL MAKE ALL THE DIFFERENCE.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

CONTACT US

OUR SENIOR TEAM

The core of our investment team has been working together for more than a decade. Our collective investment experience exceeds a 100 years of advising to and managing institutional client’s and private client’s assets in South Africa.

DUNCAN THERON Chief Executive Officer Executive Investment Consultant duncan@grayswan.co.za

KOBUS FOUCHE Head of Reporting Senior Investment Consultant kobus@grayswan.co.za

GREGOIRE THERON Head of Manager Research Senior Investment Consultant greg@grayswan.co.za

TANIA THERON Head of GraySwan Wealth Senior Investment Consultant tania@grayswan.co.za

ROBERT ROBINSON Senior Investment Analyst

MART-MARIE DE JONGH Financial Advisor

robert@grayswan.co.za

martmarie@grayswan.co.za

UN PRI is an international investor initiative sponsored by the UN and based on six principles for responsible investments. The aim is to help investors actively to incorporate environmental, social and governance issues into their investments.

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

LOCATION

WHERE TO FIND US SOMERSET WEST OFFICE PHYSICAL ADDRESS: Lourensford Wine Estate Lourensford Road Somerset West 7130 CONTACT DETAILS: Consultant: Duncan Theron Tel No: 021 852 9092 E-mail: duncan@grayswan.co.za

JOHANNESBURG OFFICE PHYSICAL ADDRESS: 300 Acacia Road, Stonemill Office Park, Keystone House, Lower Level, Darrenwood, 2195 CONTACT DETAILS: Consultant: Gregoire Theron Tel No: 011 431 0141 E-mail: greg@grayswan.co.za

www.grayswan.co.za l 021 852 9092 (CT) l 011 431 0141 (JHB)

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

The goose that lays the golden eggs likes to lay where there are eggs already.

Charles Spurgeon

LETTER OF INTRODUCTION AND DISCLOSURES – GRAYSWAN In terms of the Financial Advisory and Intermediary Services Act (FAIS) (Act No. 37 of 2002) we would like to bring the following information to your attention:

Company information Full Name of Financial Services Provider (FSP):

Gray Swan Financial Services (Pty) Ltd

Trading As:

GraySwan Investments/GraySwan Wealth

Registration number:

2010/009813/07

Licence Type:

Category I and II, FSP #42290

Physical address (Head office):

Lourensford Wine Estate Lourensford Road Somerset West ,7130

Physical address (Johannesburg):

Lower Level, Keystone House Stonemill Office Park 300 Acacia Road Darrenwood Private Bag x34, Suite 184 Somerset West, 7129

Postal address: Phone:

(021) 852 9092 (Cape Town) (011) 431 0141 (Johannesburg) * A copy of our licence is available for inspection on request.

Key Individuals (KI) and representatives (Rep) Name:

Key Individual/Rep:

Email Address:

Cell Number:

Duncan Theron Tania Theron Philippa Owen Mart-Marie de Jongh Braam Bredenkamp Gregoire Theron Kobus Fouche Robert Robinson Jaco Redelinghuys Julian Redelinghuys Russell Bodill

KI and Rep (CT) KI and Rep (CT) KI and Rep COMPLIANCE (CT) Rep (CT) KI and Rep (JHB) Rep (JHB) Rep (CT) Rep (CT) Rep (JHB) UNDER SUPERVISION Rep (JHB) UNDER SUPERVISION Rep (JHB)

duncan@grayswan.co.za tania@grayswan.co.za philippa@grayswan.co.za martmarie@grayswan.co.za braam@grayswan.co.za greg@grayswan.co.za kobus@grayswan.co.za robert@grayswan.co.za jaco@grayswan.co.za julian@grayswan.co.za Russell@grayswan.co.za

082 336 8615 071 605 1863 072 053 0546 072 380 9139 071 868 8889 073 140 6603 072 246 1695 082 338 0954 074 1901 527 079 690 9476 082 731 3726

Initial GraySwan Financial Services (Pty) Ltd is an authorised financial services provider (FSP # 42290) DOC 1-010

IMALI ASSET MANAGEMENT | 35

GraySwan registered product categories – Category I GraySwan and its representatives are registered with the following products (for advice and intermediary services). These details can be confirmed on the FSCA website. (https://www.fsca.co.za/Fais/Search_FSP.htm) #

Name

DT

TT

PO

MM

GT

KF

Cat 1 1

Long Term Insurance Sub Cat A

*

*

3

Long Term Insurance Sub Cat B

*

*

4

Long Term Insurance Sub Cat C

*

*

*

*

*

5

Retail Pension Benefits

*

*

*

*

*

7

Pension Fund Benefits

*

*

*

*

*

8

Shares

*

*

*

*

*

9

Money Market Instruments

*

*

*

*

10 Debentures and securitised debt

*

*

*

11 Warrants Certificates or other

*

*

12 Bonds

*

13 Derivative instruments

RB

BB

Jaco Julian *

*

*

*

*

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14 Participatory Interests in CIS

*

*

*

*

*

*

*

*

*

*

17 Long Term deposits

*

*

*

*

*

*

*

*

*

*

18 Short Term deposits

*

*

*

*

*

*

*

*

*

*

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*

20 Long Term Insurance Sub Cat B2

*

*

*

*

*

21 Long Term Insurance Sub Cat B2-A

*

*

*

*

*

22 Long Term Insurance Sub Cat B1-A

*

*

*

*

*

24 Structured deposits

*

*

*

*

*

*

*

*

*

*

26 Participatory Interests in CIS in HF

*

*

*

*

*

*

*

*

*

*

Jaco and Julian Redelinghuys are currently working under supervision and are supervised by Braam Bredenkamp in the Johannesburg office. Each KI and Rep has the required level of qualification, experience and product knowledge as outlined in by FAIS. All Reps are required to maintain their knowledge by completing mandatory ongoing training and continuous professional development. Copies of each Rep’s qualifications will be provided on request.

(NOTE KI BRAAM BREDENKAMP HAS BEEN APPOINTED AS KI BUT THIS IS NOT AS YET CORRECTLY REFLECTED ON THE FSCA WEBSITE)

Initial GraySwan Financial Services (Pty) Ltd is an authorised financial services provider (FSP # 42290) DOC 1-010

36 | IMALI ASSET MANAGEMENT

GraySwan registered product categories – Category II GraySwan and its representatives are registered with the following products (discretionary services under Category II). These details can be confirmed on the FSCA website. (https://www.fsca.co.za/Fais/Search_FSP.htm) Cat II

#

Name

DT

TT

2

Long Term Insurance Sub Cat C

*

3 4 5 6 7

Retail Pension Benefits Pension Fund Benefits Shares Money Market Instruments Debentures and securitised debt Warrants Certificates or other inst. bonds Derivative instruments Participatory Interests in CIS Long Term deposits Short Term deposits Structured deposits Participatory Interests in CIS in HF

8 9 10 11 13 14 18 20

PO

MM

GT

KF

RR

BB

RB

*

*

*

*

*

*

*

*

*

*

*

*

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*

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Contracts with product suppliers GraySwan is accredited to advise on the products of the following product suppliers*: Allan Gray Just Retirement Coronation Liberty Discovery BrightRock

Momentum FMI Old Mutual Glacier by Sanlam PPS Investec AM

Investec Private Bank Ltd Stanlib INN8 Blackrock

*Contact details for these product suppliers are available on request.

Conflict of interest GraySwan and its Reps do not own more than 10% of issued shares directly or indirectly of any life assurer or financial product provider. GraySwan is not an associated company of any life assurer or product provider.

GraySwan and its Reps are remunerated by any of the following means: Initial GraySwan Financial Services (Pty) Ltd is an authorised financial services provider (FSP # 42290) DOC 1-010

IMALI ASSET MANAGEMENT | 37

I. II. III.

Advisory fees for investment advice paid by the client or deducted from the client’s investment and paid over by the product provider and/or Commission for risk benefits services paid over by the product provider which is built into the client’s premiums and/or Management fees for discretionary management services paid by the client or deducted from the client’s investment and paid over by the product provider.

As an authorised FSP we may not request or induce in any manner a client to waive any right or benefit conferred on the client by or in terms of any provision of the General Code of Conduct (FAIS), or recognise, accept or act on any such waiver by a client. Should a material conflict of interest (as outlined in our conflict of interest policy*) arise, this will be disclosed to you at the earliest opportunity.

A gift register is maintained for the recording of any gifts (of any value) received by our representatives from clients or product/service providers*. *A copy of our conflict of interest policy and/or the gift register is available upon request.

Professional indemnity cover GraySwan has professional indemnity insurance cover of R30 million.

Complaints If you feel that your rights have been prejudiced, or you have been aggrieved in any way, you have the right to lodge a complaint*. *A copy of our complaints procedure is available upon request.

Compliance Masthead (Pty) Ltd is GraySwan’s appointed compliance officer and is represented by Lara Hughes-Thom.

Masthead Compliance can be contacted at: Unit 6, Canal Edge 4, Tyger Waterfront, Carl Cronje Drive, Bellville 7530 or 021 555 4121.

Declaration I, _________________________________, the undersigned hereby acknowledge the receipt of the disclosure notice from Gray Swan Financial Services (Pty) Ltd and confirm that I have read the contents of this document.

_____________________________________

__________________________

Client Signature

Date

Initial GraySwan Financial Services (Pty) Ltd is an authorised financial services provider (FSP # 42290) DOC 1-010 38 | IMALI ASSET MANAGEMENT

FINANCIAL SERVICES BOARD LICENCE DOCUMENTS

IMALI ASSET MANAGEMENT | 39

40 | IMALI ASSET MANAGEMENT

IMALI ASSET MANAGEMENT | 41

42 | IMALI ASSET MANAGEMENT

24 June 2020

RE: CONFIRMATION OF IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326)’S COMPLIANCE WITH THE FAIS ACT 1.

I am the appointed external compliance officer for IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326). This letter serves as confirmation of IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326)’s compliance with the Financial Advisory and Intermediary Services Act No. 37 of 2002 (the “FAIS Act”).

2.

Confirmation of Compliance with the FAIS Act

2.1.

I hereby confirm that:

2.1.1. IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326), its key individuals and representatives are currently compliant with the fit and proper requirements as per FAIS Board Notice 194 of 2017.

2.1.2. IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326) is authorized to render financial services in the correct product subcategories. IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326) is currently approved to render discretionary financial services in the following category II product subcategories: • • • • • •

Shares Money market instruments Debentures and securitised debt Warrants, certificates and other instruments Bonds Participatory interests in one or more collective investment schemes

2.1.3. IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326) is currently up to date with all of its Regulatory reporting obligations.

2.1.4. IMALI ASSET MANAGEMENT (PTY) LTD (FSP 48326) has not breached the FAIS Act and currently has no adverse findings against it.

2.1.5

The FSP complies with the financial soundness requirements and confirm that the annual Liquidity confirmation (Annexure 6 - Form A) was submitted.

IMALI ASSET MANAGEMENT | 43

2.1.6 The FSP complies with FAIS Circular 1 of 2013 with regards to disclosure of fees and other potential conflict of interest on Third Party Collective Investment Scheme portfolios.

2.1.7 The FSP has an approved Risk Management and Compliance Plan (RMCP) in place which meets the requirements of the new FIC Act.

I trust you find the above in order. Should you have any queries in respect above confirmations, please do not hesitate to contact me.

_________________ Germa Beukes - CO945 Compliance Officer

44 | IMALI ASSET MANAGEMENT

Pre-Trade Compliance Policy Imali Asset Management Pty Ltd herein referred to as the FSP. Purpose

2. Trade process

This document contains the PreTrade Compliance Policy (“the Policy“)

2.1 Trade sheet

1. Restrictions 1.1 Regulations The FSP will ensure all trades that are completed are in line with FSCA Regulations. For example, if a fund is restricted to regulation 28 stipulating the asset percentages according to the pension fund act the trade is not allowed to cause the fund to break regulation and be rebalanced after the trade. This will be monitored by the portfolio managers and investment analyst instructing the trade.

1.2 Amount The amount of the trade will constitute whether the portfolio manager will have to pre-approve the trade. Any amount that is larger than 10% of the portfolio will have to be signed off by the portfolio manager to ensure the correct amount is being transferred and to reduce risk of loss.

A trade sheet is compiled that contains the specific fund’s restrictions. The investment analyst will have to explain on the trade sheet what trade he is about to initiate and how it affects the long-term strategy of the fund. On the trade sheet all calculations made by the investment analyst will be added and all communication sent to the stockbrokers and their confirmation of successful trades.

2.2 Reason for trade The reason for the trade will be a document that clearly shows why the investment analyst felt the trade was necessary to ensure the fund is still trading in line with its long-term strategies. These include, but are not limited to, the NAV report.

2.3 Trade calculation Full trade calculation will be made visible through the NAV report that has been split into a before and after trade calculation. This will clearly show the calculation made by the investment analyst and how the portfolio is affected before and after.

2.4 Approval request The approval request that has been sent to the portfolio manager will be saved as an additional compliance document. Once the request has been granted the approval letter from the portfolio manager will also be saved.

My philosophy is that if I have any money I invest it in new ventures and not have it sitting around.

Richard Branson

IMALI ASSET MANAGEMENT | 45

2.5 Trade instruction

4. Authority to trade

The trade instruction is sent to the corresponding stockbrokers with all details.

1.1) Each fund has a duly appointed investment manager (“the portfolio manager”) that has been appointed to manage the investment portfolio, and who makes the investment decisions.

2.6 Communication: All trade request and approvals sent and received from the stockbroker will be kept on record. This can be in the form of a printed email, saved email, etc.

2.7 Backup Back up of all trades, calculations, NAV’s, etc will be backed up in the cloud by Imali Asset Management at the end of the day.

3. Trade Size & Rounding Trades will be rounded to the nearest zero value. No trade will be made that has additional decimal spaces. Trade sizes will be evaluated per trade and the investment analyst will have to decide if that trade can wait to be action with a larger trade in a few days to lower trading costs. If the investment analyst feels that a small move into the market might lead to a significant result, then the trade is automatically approved regardless of how small the trade is. Larger trades, as stated in section 1, are restricted by the pre-approval of the fund manager.

1.2) The BCI dealing team (“Implementer”) do not make investment decisions, but merely execute and implement the instructions, thus giving effect to the instructions of the portfolio manager.

1.3) Only the portfolio manager, or those individuals duly authorised to do so can give instruction to the BCI dealing team.

1.4) The BCI dealing team only accept and execute trades received from those so authorised, subject to the BCI trade process being followed.

1.5) The company will also regard breach of the law and / or this policy as serious misconduct, which may lead to disciplinary action and / or dismissal.

5. Investment Manager / Portfolio Manager The portfolio manager is responsible: 5.1) To ensure that all orders are made in accordance with the funds’ investment policy and the requirements of the Collective Investment Control Act of 2002 as amended (“CISCA”); and 5.2) To ensure that the necessary precompliance checks has been done in accordance with their internal compliance rules.

46 | IMALI ASSET MANAGEMENT

DISASTER RECOVERY PLAN

IMALI ASSET MANAGEMENT | 47

“A good plan today is better than a perfect plan tomorrow. Expect the best, plan for the worst, and prepare to be surprised.

It is far better to foresee even without certainty than not to foresee at all.

Robert Kiyosaki

48 | IMALI ASSET MANAGEMENT

Disaster Recovery Plan Imali Asset Management Pty Ltd herein referred to as the FSP.

1. Introduction This disaster recovery plan’s purpose is to help ensure the continued availability of the vital business processes in the event that a disaster occurs.

Its purpose is to provide a solution that can be used to recover all vital business processes in the required time frame using vital records that are backed up off site.

The term “disaster” is relative, but for the purpose of this document a disaster will refer to any event that causes disruption in operational and/or computer processing capabilities for a period of time which affects the operations of the FSP. First this document will define and broadly outline the relevant parties responsibilities.

Thereafter, the document will provide general guidance regarding required steps to be taken in any disaster.

2. Command and Control The decision to use this plan will be taken by the following, which will also be responsible for taking the “difficult” decisions for the FSP overall: Name

Title

Contact details

Deidre van Niekerk

CEO / Shareholder

082 457 4536

Clayton Stewart

Portfolio Manager

083 749 3905

Nicholas Liebman

Shareholder

083 749 3905

IMALI ASSET MANAGEMENT | 49

IMALI DISASTER RECOVERY PLAN

3. Definitions Disaster A disaster is defined as a progressive or sudden widespread or localised, natural or human caused occurrence which causes or threatens to cause:

• death, injuries or disease; • damage to property, infrastructure or the environment; and

reduce the vulnerability of disaster prone areas; • identify the areas that are at risk and prioritise; • take into account indigenous knowledge relating to disaster management; • identify and address weaknesses in the capacity to deal with possible disasters;

• disruption in a business.

• provide for approximate prevention and mitigation strategies;

Disaster Management

• facilitate maximum emergency preparedness;

Disaster management is defined as a process of planning and implementing measures aimed at:

• contain contingency plans and emergency procedures in the event of a disaster, thus providing for:

• reducing the risk of disasters;

• The allocation of responsibilities to

consequence of disasters;

the various role players and coordination in the execution of those responsibilities

• emergency preparedness;

• Prompt disaster response and relief

• rapid and effective response to

• Procurement of essential goods,

• mitigating the severity or

disasters; and

• post disaster recovery and rehabilitation.

equipment and services

• Establishment of strategic communication links • Dissemination of information.

Disaster Management Plan / Framework A disaster management plan/ framework comprises of the following:

• anticipate the types of disaster that are likely to occur as well as the possible effects;

• place emphasis on measures that

50 | IMALI ASSET MANAGEMENT

4. Risk and Vulnerability Assessment Ultimately the risk and vulnerability analysis will inform and underpin the plan and the resulting risk profile will determine the priorities of the disaster recovery programme.

The ultimate residual risk value will be the criteria by which priorities will be allocated to the various scenarios.

The companies risk profile indicating the generic risks are as follows:

TYPE OF HAZARD FIRE SERVICE INTERRUPTIONS / POWER & ELECTRICITY OUTAGES FLOODING VIOLENCE AND TERRORISMS NATURAL PHENOMENA ACCIDENTAL SITUATIONS TECHNOLOGICAL BREAKDOWN

Security The FSP does not have a dedicated server room, the server is housed in the “Cloud” Access to the network has been restricted by means of static workgroup passwords as no domain exists. The user home folders have been secured individually.

Remote branches access the network remotely via a terminal server using the company adsl line. No redundancy measures are currently in place should this line/ link fail.

Mail is hosted offsite and spam is blocked at the ISP. Norton antivirus corporate edition protects the servers and all desktops from virus infections.

No proxy server exists and all users have full internet access via the linux firewall.

5. Information Systems

Back-Up

The FSP understands the importance of a sound IT infrastructure and has taken the following steps to minimize possible downtime due to failure.

The server and All laptops are equipped with an online UPS that provides power for up to four hours should a power failure occur.

IT support is outsourced to an external IT support company – Cloudbox. This external company is engaged by means of a SLA. All files are stored in the “cloud”. Cloudbox is also tasked with the backups and checking backup and virus history.

The server is configured to use mirrored drives (Raid 1) to minimize downtime should the primary drive fail.

All employees will have DATA available on their phones and at their homes should the need arise for them to work remotely.

The server is scheduled to daily backup to one external USB drive.

Offsite backups are also scheduled to copy changes to pastel and user data daily via the internet, backup reports are generated with each backup and is being monitored.

IMALI ASSET MANAGEMENT | 51

IMALI DISASTER RECOVERY PLAN

Disaster Recovery In case of a natural disaster and the building is destroyed it will have no impact on the data in the cloud.

Software Microsoft Windows 10 is the operating system. The major software package in use: Microsoft Office.

All Microsoft software is licensed under the Microsoft OEM agreement and the relevant licenses records are maintained and stored in individual folders per laptop Currently the server is being used as a fileserver and Terminal server.

It is proposed that a Windows Small Business be implemented as a primary domain controller to address the security issues. Other benefits include exchange server which means a centralized database is stored on the server allowing for all user mail to be backed up.

User passwords are changed for security reasons at set intervals and screensaver passwords are implemented for all laptops. We have implemented a two way authentication process with cloudbox.

6. Emergency Response Procedure The following emergency response plan is applicable in the following scenarios:

• Armed Robbery / Hostage Situation

• Bomb Threat • Fire, Flooding etc • Marches / Riots

Armed Robbery / Hostage Situation • If you see or hear an altercation or hear the sound of gunshots, stay away from windows and seek safety in a locked area if possible.

• If possible and if you are not endangering your life or any other person’s life, press the panic button.

• If you are confronted by an armed individual co-operate fully with any demands.

• Give up deposit bags or personal items and follow any requests that do not endanger your life or the lives of others.

For internet access a proxy server will allow for more control and usage monitoring of users.

All user documents should be stored on the server for centralized backup purposes with relevant file securities and rights in place. Laptop users can synchronize their data to the server automatically using offline files avoiding the need to manually backup their information.

All emails are backed up automatically and stored in the cloud.

52 | IMALI ASSET MANAGEMENT

• Do not try to stop, hold, or trap an armed individual.

• After the situation has passed phone the applicable emergency services and report the situation.

Bomb Threat • The staff member who is informed of the bomb threat is to notify a senior staff member immediately.

• The senior staff member is to contact the applicable emergency services. Put on display a list of the telephone numbers of all the emergency services in the area. The list of telephone numbers is to be put on display in an area visible to all staff members.

• The senior staff member is to address the staff members on the situation and request them to please remain calm and accompany the staff members to the assembly area.

• Staff members are to assemble in the assembly area on the outside of the building and escort any visitors with them.

equipment but use your best judgment. If the fire does not go out, or spreads, all staff are to leave the area immediately.

• Address the staff members on the situation and request them to please remain calm and accompany the staff members to the assembly area.

(Identify an assembly area which is a safe distance from the fire)

• In a situation where there is smoke the staff members must be requested to stay as low as possible to the ground while exiting the building.

• Staff members are to assemble in the assembly area on the outside of the building and escort any visitors.

• Remain in the assembly area until the emergency services arrive at the scene.

• Only to re-enter the premises once it has been cleared by the emergency services.

• Only to re – enter the premises

Fire, Flooding, Etc..

Marches / Riots

• The staff member who identifies the

• All staff must stay away from the

fire has to make alarm by ensuring that he/she warns each area of the branch of the fire.

• It is the responsibility of the person who identified the fire to phone the emergency services. display a list of the telephone numbers of all the emergency services in the area. The list of telephone numbers is to be put on display in an area visible to all staff members)

once it has been cleared by the emergency services.

front doors and windows.

• Should the situation become dangerous or out of hand, all the front doors must be closed.

• In an event where teargas is used all the windows and doors should be kept closed. The air conditioners switched off.

• Doors to be open when the situation has cleared.

• Depending on the circumstances, try to put out the fire using existing

IMALI ASSET MANAGEMENT | 53

IMALI DISASTER RECOVERY PLAN

7. Emergency Contact Numbers Emergency Departments

Number

Emergency Services (Fire) Paarl

021 872 2323

Emergency Services (Fire) Randburg

011 789 1351

South African Police Service

10111

Drakenstein Municipality (Water and Electricity)

021 807 4500

Joburg Water and Electricity

011 688 1500 / 011 470 3630

Ambulance (Netcare)

082 911

Poison Information Helpline (24 hours)

0861 555 777

Centre for Disease Control and Prevention

012 424 9000

When you’re an investor, you can look at the quantitative and qualitative elements of an investment, but there’s a third aspect: What you feel in your gut.

Kevin O’Leary

54 | IMALI ASSET MANAGEMENT

Annexure A

Imali Asset Management Due Diligence • Imali Asset Management (Pty) Ltd, FSP #48326

• Imali manages 1 cobranded portfolio with an asset size of R 138 138 850,91 at 24/06/2020.

• Funds: • Imali BCI Passive Balanced Fund • Contact: Renier Robertse Email: renier@imaliasset.com Tel: +27 21 201 1430

Shareholders Caleo Capital – 51% Deirdre van Niekerk – 49%

Directors Nicolas Liebman Clayton Stewart Deirdre van Niekerk

Key Management • Clayton Stewart, CAIA level 1, BComm, TEP, 10 years of international banking experience, previously employed by Nedbank.

• Nicolas Liebman, 10+ years financial services experience, previously employed by Sasfin. Currently KI and CEO of Caleo Capital.

• Gray Swan are independent investment advisors for Imali Asset Management. They conduct market research and advise possible positions to outperform the benchmark of Imali.

3. External compliance officer • Sirius Lex Consulting (Pty) Ltd Compliance • External = Sirius Lex Consulting (Pty) Ltd

• Not aware of any significant compliance issues and FSCA submissions are up to date

• Imali Asset Management has all the relevant FSCA category 2 approvals to manage the portfolio.

• Financial soundness is acceptable • No issues report on the FSCA website

• No concerns noticed from Google search

• TCF policy in place and board approved • Not aware of any reputational risks • The investment manager has a Disaster Recovery Plan – since BCI will be handling all the portfolio administration (Maitland and Silica), the investment manager just require access to emails and internet to manage the portfolio.

Upon termination the portfolios and admin will remain with BCI. BCI has sufficient capacity to handle the portfolios as confirmed

by Maitland and Silica letters. In case of emergency, BCI has access to its sister company, Boutique Investment Partners, FSP45011, investment management services – they are one of the larger medium sized investment managers in the country (R43bn assets under management and consulting).

The beauty of diversification is it’s about as close as you can get to a free lunch in investing.

Barry Ritholtz

IMALI ASSET MANAGEMENT | 55

IMALI DUE DILIGENCE

• BCIS employs 4 compliance staff and makes use of the Asset Arena Compliance System as a post trade compliance system. All CISCA, ASISA and portfolio specific rules are captured and checked for by this system on a daily basis. Any breaches are reported on daily basis. BCI conducts also pretrade compliance on all fund of fund investment instructions. The EFG Group has various statutory and other bodies which review our operations, e.g. Audit Board -, Compliance -, Finance -, Risk - and Board Committees. Apart from our annual audits by KPMG, KPMG is also the auditors of Silica and issue ISAE 3402 reports. Imali has their own internal corporate governance processes - in addition they have an effective disaster recovery plan and business continuity plans in place.

Auditor • RWFC Financial Consultants Incorporated

Insurance cover • Imali has adequate PI cover, being R5m via Carmarque

Website • www.Imaliassetmanagement.co.za

Systems • CIS administration - Silica and Maitland • Morningstar

I try to invest smart. I’m not a baller.

I’m not a blinger Venus Williams

56 | IMALI ASSET MANAGEMENT

MALI

ASSET MANAGEMENT

APPROVED FINANCIAL PRODUCTS

IMALI ASSET MANAGEMENT | 57

IMALI APPROVED FINANCIAL PRODUCTS Authorised Financial Service Provider FSP No 48326 FSP Name

IMALI ASSET MANAGEMENT (PTY) LTD

FSP Type

Company - Private

Registration No

2017/135107/07

Date Authorised

11/07/2017

Products Approved Category Description

Advice Automated

Advice Nonautomated

Intermediary Scripted

Intermediary Other

CATEGORY I Long-Term Insurance subcategory A

X

X

Long-Term Insurance subcategory B1

X

X

Long-term Insurance subcategory B1-A

X

X

Long-Term Insurance subcategory C

X

X

Retail Pension Benefits

X

X

Pension Funds Benefits

X

X

Shares

X

X

Money market instruments

X

X

Bonds

X

X

Participatory interests in a collective investment scheme

X

X

Long-term Deposits

X

X

Short-term Deposits

X

X

CATEGORY II - Discretionary FSP Shares

X

Money market instruments

X

Debentures and securitised debt

X

Warrants, certificates and other instruments

X

Bonds Participatory interests in one or more collective investment schemes

If you have any enquiries please contact the FSCA call centre - 0800 20 37 22

58 | IMALI ASSET MANAGEMENT

X

FINANCIAL SECTOR CONDUCT AUTHORITY LEVY FSP Name

Declaration of assets under management FINANCIAL FINANCIAL SECTOR SECTOR CONDUCT CONDUCT AUTHORITY AUTHORITY LEVY LEVY Imali Asset Management (PTY) LTD

Declaration Declaration of assets of assets under under management management

FSP Number FSP Name FSP Name Category of license FSP Number FSP Number

48326 ImaliImali AssetAsset Management Management (PTY)(PTY) LTD LTD CAT II 48326 48326 Please complete the details of the Assets Under Management (AUM) in the table below: Category Category of license of license CAT CAT II II Total Market Value of AUM at Assets managed Assets managed Total Please Please complete complete the details the details of the of Assets the Assets Under Under Management Management (AUM) (AUM) in the in table the table below: below: locally offshore (foreign) (Rand Amount) the reporting date for the (Rand amount) (Rand amount) following type of clients: TotalTotal Market Market ValueValue of AUM of AUM at at Assets Assets managed managed Assets Assets managed managed TotalTotal locally locally offshore offshore (foreign) (foreign) (Rand(Rand Amount) Amount) the reporting the reporting date for date the for the amount) amount) (Rand(Rand amount) amount) Private clients (individuals following following type of type clients: of clients: not(Rand(Rand R 27 408 721,94 R 27 408 721,94 0 listed below) Private Private clients clients (individuals (individuals not not Retirement/pension funds RR 109 R 27 408 27295 721,94 408868,78 721,94 0 listedlisted below) below) Collective investment Retirement/pension Retirement/pension fundsfunds R 109R295 295 868,78 0 0109868,78 schemes Collective Collective investment investment Long-term insurers schemes schemes

0 00

Short-term insurers Long-term Long-term insurers insurers

0

Hedge fund clients Short-term Short-term insurers insurers

0

Other Hedge Hedge fund clients fund clients

0

GRAND TOTAL OtherOther

0

GRAND GRAND TOTAL TOTAL Key Individual Name

Key Individual signature Key Individual Key Individual Name Name

0 0 0

00

RR408 109 295 R 27 27721,94 408 868,78 721,94

00

R 109R295 1090 868,78 295 868,78

0

00

0

00

0

0

0 0

0

0 0

0

0

0 0

0

0 0

0

0

0 0

0

0

0

CLAYTON STEWART

R R

0 0 0 136 704 590,72 0 0

R 704 136 136590,72 704 590,72

CLAYTON CLAYTON STEWART STEWART

Key Individual Key Individual signature signature Date

02/07/2020

Date Date Name of Compliance Officer02/07/2020 02/07/2020 Name Name of Compliance of Compliance Officer Officer CO Number COCO Number CO Number Signature

Date

IMALI ASSET MANAGEMENT | 59

60 | IMALI ASSET MANAGEMENT

PERFORMANCE SUMMARY

IMALI ASSET MANAGEMENT | 61

IMALI PERFORMANCE SUMMARY

Current Month Performance Summary July 2020

Current Month Performance Summary July 2020 LOCAL ECONOMIC INDICATORS

SA Inflation (y-o-y) ALSI Level Prime Rate Overnight Call Gold Price (R/kg)

2.2% 54,362.36 7.25% 3.80% R 985,312.82

OFFSHORE ECONOMIC INDICATORS

Dollar/Rand Exchange Rate Euro/Rand Exchange Rate British Pound /Rand Exchange Rate Brent Crude Oil ($/ Barrel) Gold Price ($/OZ)

R 17.35 R 19.50 R 21.52 $ 41.27 $ 1,772.86

LOCAL MARKET- ZAR

LOCAL EQUITY SECTORS – ZAR

OFFSHORE MARKET - USD

OFFSHORE MARKET - ZAR

AFRICA EQUITY INDICES - USD

BRICS EQUITY INDICES - USD

1

62 | IMALI IMALI ASSET ASSET MANAGEMENT MANAGEMENT

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

Local SummarySUMMARY (ZAR) IMALIMarket PERFORMANCE July 2020

Local Market Summary (ZAR) July 2020 ABSOLUTE PERFORMANCE

1 month 2 months 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years 15 years

SA Inflation

SA Money Market

SA Inflation Bonds

SA Fixed Rate Bonds

SA Listed Property

SA Equities*

0.52% -0.09% -0.61% 0.97% 2.22% 3.34% 3.75% 4.08% 4.51% 5.00% 5.65%

0.42% 0.86% 1.36% 3.02% 6.66% 6.99% 7.10% 7.23% 7.18% 6.46% 7.28%

-1.67% -2.07% -0.61% -3.73% -5.01% -0.53% 0.23% 0.07% 1.38% 5.82% 7.46%

0.61% -0.58% 6.44% -0.21% 4.25% 6.14% 7.79% 7.63% 7.40% 7.93% 7.97%

-3.19% 9.80% 8.97% -37.64% -41.19% -23.28% -20.18% -14.87% -10.55% 3.67% 9.05%

2.56% 10.50% 10.83% 1.03% 1.58% 1.89% 3.63% 4.60% 4.58% 10.31% 12.31%

CUMULATIVE PERFORMANCE (15 years)

RISK RETURN COMPARISON (15 years)

CALENDAR YEAR

2016 2017 2018 2019 2020

SA Inflation

SA Money Market

SA Inflation Bonds

SA Fixed Rate Bonds

SA Listed Property

SA Equities*

6.61% 4.62% 5.18% 3.56% 1.23%

7.39% 7.54% 7.25% 7.29% 3.62%

6.27% 2.93% -0.43% 2.25% -3.71%

15.45% 10.22% 7.69% 10.32% 0.97%

10.20% 17.15% -25.26% 1.92% -39.55%

2.63% 20.95% -8.53% 12.05% -0.68%

RISK COMPARISON (15 years)

Standard Deviation Upside Deviation Downside Deviation Worst Month Worst Peak-to-Trough

*All

SA Inflation

SA Money Market

SA Inflation Bonds

SA Fixed Rate Bonds

SA Listed Property

SA Equities*

1.44% 1.36% 0.24% -0.61% -1.12%

0.47% 0.47% 0.00% 0.39% 0.00%

8.26% 5.58% 5.17% -17.47% -18.55%

7.64% 5.33% 4.02% -9.75% -9.79%

19.51% 10.97% 12.98% -36.57% -60.50%

15.36% 10.07% 8.08% -13.24% -40.45%

Share Index

Source: iress

2

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

IMALI ASSET MANAGEMENT | 63

Offshore (USD) IMALI PERFORMANCE SUMMARY July 2020

Offshore (USD) July 2020 ABSOLUTE PERFORMANCE

1 month 2 months 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years 15 years

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

0.55% 0.55% -0.12% 0.32% 0.65% 1.15% 1.72% 1.69% 1.56% 1.69% 1.90%

0.01% 0.03% 0.04% 0.28% 1.19% 1.78% 1.74% 1.51% 1.28% 0.74% 1.49%

1.35% 3.40% 5.80% -0.50% 1.60% 1.40% 2.37% 3.26% 1.73% 2.85% 2.61%

3.19% 4.11% 4.56% 4.93% 7.85% 6.78% 4.30% 2.88% 4.16% 2.79% 3.82%

3.03% 5.71% 6.35% -19.15% -13.19% -2.74% -0.30% -0.91% 2.24% 6.84% 4.91%

5.29% 8.65% 13.38% -0.19% 7.20% 5.05% 6.99% 9.42% 7.37% 8.87% 6.53%

CUMULATIVE PERFORMANCE (15 years)

RISK RETURN COMPARISON (15 years)

CALENDAR YEAR

2016 2017 2018 2019 2020

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

1.69% 2.20% 2.18% 2.05% 0.23%

0.51% 1.14% 2.06% 2.20% 0.41%

0.49% 7.76% -4.02% 8.38% -0.22%

2.09% 7.40% -1.20% 6.84% 6.27%

5.29% 10.17% -4.49% 22.57% -18.02%

7.86% 23.97% -9.42% 26.60% -1.29%

RISK COMPARISON (15 years)

Standard Deviation Upside Deviation Downside Deviation Worst Month Worst Peak-to-Trough

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

1.37% 0.90% 0.76% -1.92% -4.43%

0.49% 0.49% 0.00% 0.01% 0.00%

5.47% 2.69% 3.81% -7.63% -22.22%

5.38% 3.39% 2.93% -3.97% -10.07%

19.55% 10.54% 13.43% -27.71% -67.29%

15.90% 8.92% 10.23% -19.82% -54.92%

*Global

Bonds: Barclays Global Aggregate Bond Index Global Equities: MSCI ACWI Source: iress, GPR & InflationData.com

3

64 | IMALI ASSET MANAGEMENT

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

Offshore (ZAR) IMALI PERFORMANCE SUMMARY July 2020

Offshore (ZAR) July 2020 ABSOLUTE PERFORMANCE

1 month 2 months 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years 15 years

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

ZAR/USD

-1.14% -2.19% -8.02% 14.06% 19.71% 14.66% 10.87% 7.15% 7.82% 10.72% 8.61%

-1.67% -2.70% -7.87% 14.02% 20.36% 15.39% 10.90% 6.96% 7.53% 9.69% 8.18%

-0.35% 0.58% -2.57% 13.13% 20.85% 14.95% 11.58% 8.80% 8.00% 11.98% 9.37%

1.45% 1.27% -3.70% 19.30% 28.28% 21.05% 13.69% 8.40% 10.58% 11.91% 10.66%

1.30% 2.82% -2.06% -8.07% 3.26% 10.26% 8.67% 4.40% 8.54% 16.32% 11.83%

3.52% 5.69% 4.41% 13.48% 27.51% 19.09% 16.62% 15.29% 13.99% 18.53% 13.55%

-1.68% -2.73% -7.91% 13.70% 18.94% 13.36% 9.00% 5.37% 6.16% 8.88% 6.59%

CUMULATIVE PERFORMANCE (15 years)

RISK RETURN COMPARISON (15 years)

CALENDAR YEAR

2016 2017 2018 2019 2020

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

ZAR/USD

-9.96% -7.60% 18.49% -0.46% 22.14%

-11.00% -8.56% 18.36% -0.32% 22.37%

-11.02% -2.57% 11.31% 5.71% 21.59%

-9.61% -2.90% 14.58% 4.21% 29.50%

-6.77% -0.40% 10.76% 19.55% -0.10%

-4.49% 12.09% 5.05% 23.48% 20.29%

-11.46% -9.59% 15.97% -2.46% 21.86%

RISK COMPARISON (15 years)

Standard Deviation Upside Deviation Downside Deviation Worst Month Worst Peak-to-Trough

US Inflation

USD Cash

Global Hedge FoFs

Global Bonds*

Global Property

Global Equities*

ZAR/USD

16.51% 11.63% 7.75% -11.66% -33.46%

16.45% 11.63% 7.67% -11.84% -35.18%

14.25% 9.90% 6.86% -10.95% -23.94%

15.00% 10.66% 6.95% -11.08% -24.14%

16.93% 10.48% 9.70% -18.21% -54.09%

13.84% 9.97% 6.42% -10.77% -35.06%

16.41% 11.46% 7.80% -11.87% -35.60%

*Global

Bonds: Barclays Global Aggregate Bond Index Global Equities: MSCI ACWI Source: iress, GPR & InflationData.com

4

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

IMALI ASSET MANAGEMENT | 65

IMALI PERFORMANCE SUMMARY Local & Offshore Equity Indices (Base currency)

July 2020

Local and Offshore Equity Indices (Base Currency) July 2020 ABSOLUTE PERFORMANCE

1 month 2 months 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years 15 years

ALSI (ZAR)

SWIX (ZAR)

MSCI Develop (USD)

MSCI Emerging (USD)

MSCI All Country (USD)

MSCI Africa ex ZA (USD)

2.56% 10.50% 10.83% 1.03% 1.58% 1.89% 3.63% 4.60% 4.58% 10.31% 12.31%

2.37% 10.64% 9.57% -2.36% -1.69% -1.41% 0.72% 1.70% 2.59% 9.99% 12.11%

4.78% 7.56% 12.75% -0.66% 7.23% 5.41% 7.52% 9.61% 7.52% 9.61% 6.64%

8.94% 16.94% 17.84% 3.08% 6.55% 2.09% 2.84% 7.95% 6.15% 3.33% 6.46%

5.29% 8.65% 13.38% -0.19% 7.20% 5.05% 6.99% 9.42% 7.37% 8.87% 6.53%

-0.03% 0.80% 4.66% -21.61% -11.42% -9.34% -6.68% -0.98% -3.38% -1.51% 1.79%

CUMULATIVE PERFORMANCE (15 years)

RISK RETURN COMPARISON (15 years)

CALENDAR YEAR

2016 2017 2018 2019 2020

ALSI (ZAR)

SWIX (ZAR)

MSCI Develop (USD)

MSCI Emerging (USD)

MSCI All Country (USD)

MSCI Africa ex ZA (USD)

2.63% 20.95% -8.53% 12.05% -0.68%

4.13% 21.21% -11.67% 9.32% -4.10%

7.51% 22.40% -8.71% 27.67% -1.26%

11.19% 37.28% -14.58% 18.44% -1.72%

7.86% 23.97% -9.42% 26.60% -1.29%

-7.91% 22.31% -12.95% 16.65% -20.10%

RISK COMPARISON (15 years)

Standard Deviation Upside Deviation Downside Deviation Worst Month Worst Peak-to-Trough

ALSI (ZAR)

SWIX (ZAR)

MSCI Develop (USD)

MSCI Emerging (USD)

MSCI All Country (USD)

MSCI Africa ex ZA (USD)

15.36% 10.07% 8.08% -13.24% -40.45%

14.90% 9.65% 7.99% -14.15% -36.98%

15.51% 8.63% 9.99% -18.96% -54.03%

21.88% 13.11% 13.18% -27.37% -61.59%

15.90% 8.92% 10.23% -19.82% -54.92%

21.23% 11.52% 14.19% -26.23% -62.83%

Source: iress

5

66 | IMALI ASSET MANAGEMENT

INVESTMENT CONSULTING I WEALTH MANAGEMENT I TREASURY SOLUTIONS

IMALI LIQUIDITY CALCULATION

IMPORTANT NOTICE: USE OF THIS DOCUMENT IS LIMITED TO AUTHORISED USERS ONLY AND UNDER NO CIRCUMSTANCES SHALL IT SHOWN OR FORWARDED TO UNAUTHORISED PERSONS BY THE INTENDED RECIPIENT OR ANY OTHER PERSONS.

FORM A LIQUIDITY CALCULATION

ANNEXURE SIX FORM A: LIQUIDITY CALCULATION

FSP Name

IMALI ASSET MANAGEMENT (PTY) LTD

FSP No.

48326

30/06/2020 (Liquidity calculation as at _________________________ with comparative figures as 31/03/2020 at _________________ )

Notes (1) This form must be completed by the key individual/s of the FSP or in the case of an FSP that is a natural person by such natural person.

(2) A person that is authorised for multiple categories must submit a single form based on the calculation of the most onerous liquidity requirement.

Component

LIQUID ASSETS 1.

01/04/2020 to 30/06/2020

Previous reporting period 01/01/2020 to 31/03/2020

Cash Capable of being converted without any penalty on capital into cash within 7 days Capable of being converted without any penalty on capital into cash within 30 days

2.

Current reporting period

100% of market value of a participatory interest in a money market portfolio Capable of being converted without any penalty on capital into cash within 7 days Capable of being converted without any penalty on capital into cash within 30 days [Note: The total assets referred to in line 1 and 2 that are capable of being converted into cash within 30 days may not constitute more than 50% of the total assets in line 1 and 2]

68 | IMALI ASSET MANAGEMENT

99 650

97 345

Component

3.

70% of the market value of a participatory interest in a collective investment scheme, other than a participatory interest in a money market portfolio or CIS hedge fund, provided that participatory interest are capable of being converted into cash within 7 days

4.

70% of the market value of a security listed on a licensed exchange provided it does not constitute more than 50% of total liquid assets

5.

TOTAL LIQUID ASSETS

Current reporting period

Previous reporting period

99 650

97 345

203 913

257 043

ANNUAL EXPENDITURE 6.

Total annual expenditure (including sales costs, finance costs and operational costs)

7.

Less staff bonuses

8.

Less employees’ and directors’, partners’ or members’ share in profit

9.

Less emoluments of directors, members, partners or sole proprietor

10.

Less other appropriation of profits to directors, members and partners

11.

Less remuneration that is linked to(a) a percentage of the FSP’s revenue; or (b) a percentage of the revenue generated by an employee, representative or contractor of the FSP; and that in the absence of such revenue the FSP has no obligation to pay the remuneration

12.

Less depreciation

13.

Less bad debt

14.

Less any loss resulting from the sale of assets

15.

TOTAL ADJUSTED ANNUAL EXPENDITURE

203 913

257 043

IMALI ASSET MANAGEMENT | 69

FORM A LIQUIDITY CALCULATION Component

Current reporting period

Previous reporting period

CALCULATION 16.

Divide total adjusted annual expenditure by 52 (no. of weeks per year)

17.

Multiply the amount reflected in line 16 with-

18.

(a)

4, in the case of a Category I FSP

(b)

8, in the case of Category II FSP

(c)

13, in the case of a Category IIA FSP

(d)

13, in the case of a Category III FSP

(e)

4, in the case of a Category IV FSP

Total liquid assets required (Amount reflected in line 17)

19.

Deduct total liquid assets required from total liquid assets

3 921

4 943

31 368

39 545

31 368

39 545

68 282

57 800

(Line 5 minus line 18)

Management Declaration This declaration must be signed by the Chief Financial Officer of the FSP or in the absence of such a person, a person of equivalent status, or the provider in the case of a provider being a sole proprietor (responsible person).

Juanita Sadler

I, ……………………………………………………………….…………………………, (name of responsible person) declare that the information provided in this form is true and correct.

I am aware that the information provided may be subject to verification by the Registrar of Financial Services Providers, and should I submit false, incorrect or misleading information to the Registrar, this may impact on my compliance with the fit and proper requirements contemplated in section 6A of the Act. 09/07/2020 …………………………………….

Date

70 | IMALI IMALI ASSET ASSET MANAGEMENT MANAGEMENT

…………………………………….

Signature

IMALI ASSET MANAGEMENT FSA LICENCE DOCUMENTATION

IMALI ASSET MANAGEMENT | 71

IMALI ASSET MANAGEMENT FSA LICENCE DOCUMENTATION

72 | IMALI IMALI ASSET ASSET MANAGEMENT MANAGEMENT

IMALI ASSET MANAGEMENT FSA LICENCE DOCUMENTATION

IMALI ASSET MANAGEMENT | 73

13 AUGUST 2020 IMALI ASSET MANAGEMENT

PERFORMANCE

MONITOR

HOW IMALI RANKS AMONGST INDUSTRY PEERS

ABSOLUTE Performance

5.08% 2.08%

MANAGERS

active

passive

KEY FUND / MANAGER CATEGORIES

* STATISTICS BASED ON BUSINESS TRADING SINCE 18 MAY 2018.

74 | IMALI ASSET MANAGEMENT

NET OF ALL FEES

2.72% MANAGERS

PEER GROUP Rankings

29/187 3/12 FUNDS

FUNDS

RISK vs RETURN

24.2%

11.61% 12.60%

IMALI ASSET MANAGEMENT | 75

MALI

ASSET MANAGEMENT INTELLIGENT ASSET MANAGEMENT SKILLFULLY DELIVERED

IMALI ASSET MANAGEMENT PTY LTD TEL: +27 21 201 1430 | 201 MASON’S PRESS | 7 RAVENSCRAIG ROAD | WOODSTOCK | CAPE TOWN | 7925 ALL RIGHTS RESERVED. AN AUTHORISED FINANCIAL SERVICES PROVIDER | REGISTRATION NO: 2017/135107/07 | FSP NO: 48326 WWW.IMALIASSETMANAGEMENT.CO.ZA