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Bennie Crous 22 November 2012 Columbus Retirement Funds – Investment Feedback.

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Presentation on theme: "Bennie Crous 22 November 2012 Columbus Retirement Funds – Investment Feedback."— Presentation transcript:

1 Bennie Crous 22 November 2012 Columbus Retirement Funds – Investment Feedback

2 Index Linked Life Stage Portfolios Product Overview

3 Product overview Low cost structure o Passive investment Caters for different savings profiles o More aggressive investment strategy for younger members o Income and capital protection for older members Fewer risks o No tracking error (Momentum underwrites the returns)

4 Fees per building block CAPI40 Total Return – 25bp MSCI Word Index Total Return – 50bp GOVI - 10bp Momentum Money Market – 20bp Momentum Capital Plus – 50bp

5 Fees per portfolio AgeFees (bp) 48 and below25.5 4926.6 5027.7 5128.8 5229.9 5331.0 5431.2 5531.4 5631.5 5731.7 5831.6 5932.0 6032.0

6 Index allocation matrix

7 Market value of holdings 31 October 2012Pension FundProvident Fund Momentum Capital Plus 24,223,10728,810,332 CAPI40TR 111,831,95170,725,224 MSCI World Index 31,934,79721,565,190 Money Market 14,776,60313,318,743 GOVI 51,314,43740,929,696 Total 234,080,896175,349,184

8 Index Linked Life Stage Portfolios Returns

9 Returns as at 31 October 2012

10 Equity returns

11 Bond returns

12 Capital protection returns

13 Summary Provide exposure the appropriate asset classes given term to retirement Low fees do not erode real returns No hidden cost, i.e. No negative active returns

14 Long term expected returns per asset class

15 Assumptions Risk premiums on various asset classes in relation to ILB remain constant over time Yield on ILB’s with 10 year duration used as proxy for long term expected returns from it Yield on ILB’s were 2.8% and 1.7% in 2007 and 2012 respectively

16 Long term expected real returns

17 Disclaimer This presentation should not be regarded as advice. Whilst all reasonable care has been taken in the preparation thereof, MMI Holdings Limited, its subsidiaries, including Momentum Group Limited and Metropolitan Life Limited, and its employees shall not be liable for any loss, damage (whether direct or consequential) or expense of any nature which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance upon it. We suggest that you consult your financial advisor before taking any decision based on this presentation.

18 Index Linked Life Stage Portfolios Compliance

19 Fund Compliance ClauseDescription (Comments) 3.4Momentum will allocate Linked Units to the Fund in accordance with the investment instructions of the Fund, subject to provisions of Annexure “A” as may be amended from time to time by written agreement. 3.6Contributions made in accordance with 3.1, shall be allocated to Linked Units – 3.6.1on the Business day the Contribution is made, at the price ruling at the end of the immediate preceding Business day on which the investment instruction was received by the Company, provided such investment instruction was received prior to 14:00, subject to the conditions set out in clause 3.7; 3.6.2on the Business day immediately following the date upon which the Contribution was made at the price ruling at the end of the Business day on which the investment instruction was received by the Company, should such instruction be received after 14:00, subject to the conditions set out in clause 3.7 3.7In the case of a Contribution which is, in opinion of the Company, sufficiently large so as to potentially affect (materially or adversely) the participation valuation of the Linked Units, that Contribution shall, at the discretion of the Company, be invested over a period not exceeding 30 (thirty) days of receipt thereof. In the interim, the Contribution will be held in an interest bearing account and interest earned on the Contribution during this period, will accrue in favour of the Fund. The Company undertakes to notify the Fund in writing on the first business day immediately following the date of receipt of investment instruction from the Fund, if the provisions of this sub clause are to be applied. Never been applied

20 Fund Compliance (Continue) ClauseDescription (Comments) 4.3In case of Withdrawals, the value of Withdrawals from the Fund received and notified in writing to the Company shall be calculated: 4.3.1With reference to the value of the Linked Units referred to in clause 4.1 at the price ruling at the end of the immediate preceding Business day, provided the Withdrawal instruction was received before 14:00, subject to the contributions set out in clause 4.3.3 4.3.2With reference to the value of the Linked Units referred to in clause 4.1 at the price ruling at the end of the same Business day, subject to the conditions set out in clause 4.3.3 4.3.3In the case of a Withdrawal, which is, in opinion of the Company, sufficiently large so as to potentially affect (materially or adversely) the participation valuation of the Linked Units, that Withdrawal shall, at the discretion of the Company, be disinvested over a period not exceeding 30 (thirty) days of the receipt thereof. In this case 4.3.1 and 4.3.2 shall not apply and the Linked Units shall be liquidated at the actual price at the which the underlying assets are realised and the Company shall not be entitled to any further fees or remuneration other than as set out in clause 7 hereof Never been applied 6.1The company shall provide the following reports to the Fund – 6.1.1A monthly accounting report containing such information as required in according with the Pension Funds Acto of 1956; and

21 Fund Compliance (Continue) ClauseDescription (Comments) 6.16.1.2A quarterly investment report detailing the performance of the Linked Units during the period and such further information as may reasonably be expected to be contained in a report of this nature 6.1.3A yearly audit certificate 6.1.4To the extent that a certificate contemplated by regulation 28 (2) (a) (ii) (bb) of the Pension Funds Act of 1956 might become a requirement in respect of the Policy, such certificate. (the Company records for clarity that it is not its intention to issue the Policy as a linked policy in terms of the Long-term Insurance Act, 52 of 1998 or for any other purpose) Requirements to be discussed presentation 6.1.5A Retirement Fund Tax certificate, if applicable, on a half yearly basis contained information about the taxable income earned for a given period. Not applicable 6.1.6Capital Gains Tax (CGT): The CGT, if any, will be calculated by the Company. The CGT information will be reported to the administrators of the Fund for reporting or payment by the Fund as applicable. Not applicable 6.1.7Exchange control information (Excon): The Company will from time to time provide the Fund with exchange control information in the prescribed format which the Fund must report to the South African Reserve Bank. Included in the quarterly reports 6.3In addition, the Company shall arrange for regular presentations to the made to the Fund.


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