1. Standard for Classification of SA Regulated Collective Investments Portfolios

2. ASISA STRUCTURE ASISA ASISA Board Executive Comm. Nominations Comm.
Remuneration
Audit
Disciplinary
Executive Comm.
ASISA Board
Nominations Comm.
Board Committees
Investments
Life and Risk Business
Marketing & Distribution
Economics and Savings Policy
Regulatory Affairs
Transformation, Skills Dev & Education
Technical & Operations
Standing Committees
Working Groups

3. Fund Classification Decision Making Process
Investments Board Committee
Regulatory Affairs Board Committee
Fund Classification Standing Committee
CIS Standing Committee

4. Historical Perspective
Year Funds Manco
Equity
Equity and Balanced
Prescribed assets
Equity and Balanced
Raging Bulls 1997
Wide range
New Third Party fund rules

5. Historical influences
AUT introduced Code of Fund Classification early 90’s
Joint AUT & Personal Finance Raging Bull Awards
Performance awards tend to influence classification
Code was used as a marketing tool
Style was used as a differentiator
Examples: Growth; Value; TARR
Other legislation used as overlay – Regulation 28 prudential categories
Classification becomes subjective
Does this assist the investor?

6. ASISA Perspective October 2008 ASISA is formed
ACI codes and standards are retained
Standards are reviewed
Fund classification is part of process
Regulator uses classification as regulatory tool
3 year process to refine the Standard
Assurances obtained from FSB
Principles agreed for classification:
CISCA applies as only legislation
Where are the assets held?
What assets are permitted?

7. Standard of Fund Classification: Where?
South Africa
Minimum 70% South African assets
Maximum 25% foreign assets
Plus 5% in Africa excluding South Africa
Formerly Domestic
Global
Minimum 80% in foreign assets
No specific geographic restriction
Formerly Foreign
Regional
Minimum 80% in a specified geographical region
e.g. Asia, USA, South America, Africa excluding SA
Worldwide
No geographical restrictions - totally flexible

8. Standard of Fund Classification: What?
Equity
General – merges former General, Growth and Value
Large Cap
Medium and Small Cap
Resources
Financial
Industrial
Unclassified – formerly Varied Specialist
Interest Bearing
Money Market
Short term – modified duration up to 2
Variable term

9. Standard of Fund Classification: What?
Real Estate category
General – 80% real estate assets
Multi Asset Category
Income – up to 10% equity
Low Equity – up to 40% equity
Medium Equity – up to 60% equity
High Equity – up to 75% equity
Flexible – no limits

10. Standard of Fund Classification - other
Categories lost:
Fixed Interest - Varied Specialist
Asset Allocation – Targeted Absolute and Real Return (TARR)
Asset Allocation - Prudential - Regulation 28 compliant portfolios to be flagged irrespective of category
Process for introduction
Formally adopted standard 7 September 2012
September/October reclassify portfolios
Effective date 1 January 2013
6 months to effect changes to deeds – ballot exemption in most instances

11. Questions?