1. Overview of CIS Industry December 2011

2. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

3. ASISA structure

4. Regulated savings pool
Household Savings
Regulated Products
Long Term Insurance
Life Offices
R1.5 Trillion
______________
ASISA Members Manage
Retirement Funds
R2.4 Trillion
________________
R1.7 Trillion*
CIS Portfolios
R1 Trillion
_________
ASISA Members
= R4,9 trillion
= R4,2 trillion
*Difference: Some major government and parastatal funds manage some of their own assets – particularly the Government Employees Pension Fund (GEPF).
Assets – particularly the Government Employees Pension Fund (GEPF)

5. ASISA agenda 2012 Prudential Market Conduct Regulatory Reform SAM
Hedge Fund Regulation
Expanded Investment Powers (CIS)
OTC’S
Market Conduct
TCF
Disclosure
Remuneration Review
Regulatory Reform
CISCA
Insurance Amendment Bill
Social Security Reform
Micro Insurance
RIDDA

6. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

7. Assets for CIS industry
(All Rand denominated funds)
R1011bn – Previous methodology - Double counting removed for FoF’s only R996bn – All double counting removed - FoF’s - Hybrid funds

8. CIS Statistics December 2010 Assets for CIS industry
(All Rand denominated funds) (Previous methodology)
CIS Statistics
December 2010

9. CIS Statistics December 2010 Assets for CIS industry
(All Rand denominated funds) (All double counting removed)
CIS Statistics
December 2010

10. CIS Statistics December 2010 Net quarterly flows
(All Rand denominated funds)
CIS Statistics
December 2010

11. CIS Statistics December 2010 Net annual flows by sector
(Excluding Worldwide and Foreign sectors)
CIS Statistics
December 2010

12. CIS Statistics December 2010 Domestic funds asset split December 2006
(Excl. Worldwide and Foreign sectors) (Previous methodology)
December 2006
December 2011
CIS Statistics
December 2010

13. CIS Statistics December 2010 Domestic funds asset split December 2006
(Excl Worldwide, Foreign & Money Market sectors) (Previous methodology)
December 2006
December 2011
CIS Statistics
December 2010

14. Net annual sales
(Sector winners)
• Domestic – AA – Prudential Variable Equity (R20.3bn) • Domestic – Asset Allocation – Flexible (R9.1bn) • Domestic – Fixed Interest – Income (R8.1bn) • Domestic – AA – Prudential Low Equity (R6.9bn)

15. Net annual sales
(Sector losers)
• Domestic – Fixed Interest – Money Market (-R21.2bn) • Domestic – Equity – Growth (-R1.4bn) • Domestic – Fixed Interest – Bond (-R648m) • Foreign – Fixed Interest – Varied Specialist (-R567m)

16. Largest CIS Managers
(All funds)
Stanlib Allan Gray Investec Old Mutual Absa Sanlam Coronation Prudential NedGroup Investments Momentum
80.4% of the assets of the
CIS industry

17. Largest CIS Managers
(Excluding Money Market funds)
Allan Gray Investec Coronation Old Mutual Stanlib Sanlam NedGroup Investments Prudential Momentum Absa
79.9% of the assets of the
CIS industry

18. Largest funds Absa Money Market Fund R59 128 Allan Gray Balanced Fund
(Values in Rand million)
Absa Money Market Fund
R59 128
Allan Gray Balanced Fund
R48 634
Standard Bank Money Market Fund
R33 436
Allan Gray Stable Fund
R27 997
Allan Gray Equity Fund
R27 728
Standard Bank Corporate Money Market Fund
R26 221
Prudential Money Market Fund
R25 569
Investec Opportunity Fund
R21 094
Investec Money Market Fund
R19 236
Standard Bank Institutional Money Market Fund
R18 330

19. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

20. CIS Statistics December 2010 Sector performances
(One year to 31 December 2011)
CIS Statistics
December 2010
Source: Profile Media

21. CIS Statistics December 2010 Sector performances
(Five years to 31 December 2011)
CIS Statistics
December 2010
Source: Profile Media

22. CIS Statistics December 2010 Sector performances
(Ten years to 31 December 2011)
CIS Statistics
December 2010
Source: Profile Media

23. CIS Statistics December 2010 Sector performances
(Twenty years to 31 December 2011)
CIS Statistics
December 2010
Source: Profile Media

24. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

25. Indices performances
(In Rand for the 12 months ending 31 December 2011)
24.6%
18.5%
2.6%
Source: Inet Bridge

26. Indices performances (In Rand for the 5 years ending 31 December 2011)
47.5%
13.1%
-1.9%
Source: Inet Bridge

27. Indices performances
(JSE All Share index – 12 months ending 31 December 2011)
31/12/2011
31 986
31/12/2010
32 123
Source: Inet Bridge

28. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

29. International Investments Funds Association
(IIFA)
Countries/Regions represented by country and regional associations
ASISA is a member
Board of Directors
Comprised of Association
Representatives *
IIFA Secretariat (Canada)
Executive Committee / Policy Secretariat *
Governance & Membership Committee
Audit & Finance Committee *
Conference Committee *
Statistics Working Committee *
IOSCO Working Committee *
IAS/IFRS Working Committee *
* ASISA Represented

30. International Investments Funds Association
(IIFA)
Assets
US$ trillion
48 members
Americas
Europe
Asia/Pacific
Africa (SA)

31. International Investments Funds Association
(IIFA)
Top 10
Assets
US$ trillion
USA
Luxembourg
France
Australia
Ireland
Brazil
United Kingdom
Japan
Canada
China

32. International Investments Funds Association
(IIFA)
SA position
Overall 17/48
Europe 10/28
Americas 4/8
Asia/Pacific 5/11

33. International Investments Funds Association
(IIFA)
BRICS
Assets
US$ trillion
Brazil
China
South Africa 0.12
India
Russia

34. CIS Statistics December 2010
International Investments Funds Association
(IIFA)
CIS Statistics
December 2010

35. Agenda
ASISA structures Industry overview Performance figures Index data IIFA Consumer education – Value of advice

36. Advice need growing
Surveys on retirement need show the need is growing
Survey’s on Insurance Gap show South Africans are underinsured
Research on the value of advice
Irrefutable evidence that there is a need for advice, it is growing and good advice makes a difference

37. Advice
What do customers value most about the advice they receive? (Harris)
Recommendations based on needs
Provide options
Expert opinion
Personal relationships
Keep me on track with my plan
Monitor my Investments
Value of financial advice (Dutkiewicz et al)
Focus is always on the cost
Value is much more
Real value
Community value
Economic value
Perceived value
Statistical value
It’s not (just) about the cost
Reference: Association of Independent Financial Advisers (2010); The value of Financial
Advice: Colin Dutkiewicz, Steven Levin, Anuska Dukhi (2007)

38. Retirement need
Sanlam, Old Mutual and Alexander Forbes conducted surveys during 2010
The survey results show
12% of RF members retire reasonably okay
6% of South African’s can afford to retire
Goal is a NRR of 75%
71% of RF members have a NRR of less than 45%
77% of South Africans are worried about their retirement
30% believe the government will look after them
Advice need around retirement
Reference: Old Mutual, Sanlam, Alexander Forbes

39. Advice is for all life stages
NetWorth
AGE

40. Thank you