1. SA OPEN PROVIDENT FUND KNIGHTS COLLEGE 14 MAY2012

2. FUND STRUCTURE  SA Open Provident Fund - Umbrella Fund  Participating employer – Knights College  Defined Contribution Fund  contributions defined  benefit dependent on amount of net contributions plus/minus investment growth  Provident Fund  Retirement Age – 60 years

3. FUND STRUCTURE SA Open Provident Fund (12/8/21498) Trustees 4 independent trustees (Michael Owen Nosworthy, William Harry Pritchard Nash (PO), Stephen Bryce Truter and Madalene Brown Participating employerKnights College Michelle McMenamin Lesley Scott Fenella Potgieter Jessica Hattingh Carin Coode Participating employer

4. SERVICE PROVIDERS  Administrators – Sanlam  Insurers  Death - Metropolitan  Disability – Metropolitan  Valuator – Krishen Sukdev (ABSA)  Investment Manager – Momentum Manager of Managers (previously called Advantage)  Benefit Consultants - Seshego

5. CONTRIBUTIONS  Pensionable salary – 70% of TCTC  Contributions are shown as a percentage of salary:  Choice – 10%, 14% or 20%  Employer contributions  Costs (administration fees, risk costs and cost reserve) are deducted from contribution

6. CONTRIBUTIONS CONT.  Costs  Admin fee – R35  Death benefit  3x annual pensionable salary – 1.21% of salary  5x annual pensionable salary – 1.66% of salary  Disability benefit  0.91% of salary  Cost reserve – R112.19  Cost reserve = Auditor fees, ad hoc costs, FSB levies, etc

7. CONTRIBUTIONS CONT.  Example: A member with a TCTC of R10,000 pm with a death benefit of 3x  Pensionable salary = 70% of R10,000 = R7,000 10%14%20% ContributionR 700.00R 980.00R 1,400.00 Less costs: Admin feeFlat feeR 35.00 Death benefit (3X)1.21% of R7,000R 84.70 Disability benefit0.91% of R7,000R 63.70 Cost reserveFlat feeR112.19 Towards retirement fundingR 404.41R 684.41R 1104.41

8. RETIREMENT BENEFITS  100% benefit in cash  Part cash and part annuity (annuity is monthly pension from an insurer) payable for life  100% annuity  Tax on the cash portion Taxable amountRate of tax R0 – R315 0000% R315 001 – R630 00018% R630 001 – R945 00027% Amount exceeding R945 00036%

9. WITHDRAWAL BENEFITS  Benefit = Share of fund  Resignation / Retrenchment / Dismissal  Options on exits  Transfer to retirement annuity  Transfer to preservation fund  Transfer to new employer’s fund  Cash Lump sum (taxed)  Tax payable on cash lump sum  Up to R22 500 - 0%  R22 501 to R600 000 - 18%  R600 001 – R900 000 - 27%  R900 001 and above -36%

10. DEATH COVER  Once off choice  5X annual pensionable salary  3X annual pensionable salary  NIL cover  Premiums are tax deductible and the benefit taxed in same way as retirement benefit  Fund policy (S37C applies) - S37C of Pension Funds Act states:  It is the responsibility of the Trustees to distribute death benefits. Dependants have to be considered before all else  Your Beneficiary Form is an important indication for the trustees as to your wishes  Conversion option  Continuation option – cover for disability claimants  Exclusions  Active participation in war and riots

11. DISABILITY COVER  Monthly “salary” on disability  Tax payable on monthly benefit as per tax tables  75% of monthly pensionable salary  Disability cover not optional  Annual Escalation – 5% or CPI  3 month waiting period  Personal income disability policy – aggregate fund and personal policy  Benefit ceases  Reaches age 60 years (receive retirement benefit)  Dies before age 60 years (receive death benefit)  Recover

12. INVESTMENTS  Elect single MIC portfolio  Portfolio choices  CPI plus 7%  CPI plus 5%(default portfolio)  CPI plus 3%  Capital guarantee portfolio

13. MIC PORTFOLIOS PORTFOLIOSCOMMENTS CPI +7%Suitable for long term capital growth. For members who wish to maximise returns over long term and are capable of tolerating capital loss and volatility in the short to medium term. CPI + 5%Suitable for moderate capital growth. For members who want a sound return over the medium term and are capable of tolerating some capital loss and volatility over the short to medium term. CPI + 3%Suitable for targeting some capital growth. For members who do not need high returns to achieve their retirement planning goals, and do not want to tolerate too much risk of capital loss or volatility over the short to medium term. Capital preservation portfolio Suitable for a short term investment time horizon. Highly liquid portfolio invested in short term money market instruments. This may be suitable for members with low tolerance for volatility. However, this portfolio is not likely to generate real returns on an after-tax basis.

14. PORTFOLIO CONSTRUCTION

15. MEMBER INVESTMENT CHOICE

16. SHORT TERM VOLATILTY

17. SESHEGO BENEFIT CONSULTING

19. WHAT IS BEING MADE AVAILABLE  Member Booklet  Special Rules  New Member Presentation  Member Investment Choice Summary Sheet  November 2011 Fund Fact Sheets  Annual Trustees Report (2011)  Communiqué: Q4 of 2011  Registration process for Retirement Fund website  Expression of Wish Form  A website page with the communication on www.saopenfund.co.za www.saopenfund.co.za

20. Questions