The Propsal

Welcome

Investment ProposalPresented by:Njabulo HadebeTrainee Portfolio Manager (under supervision)16/09/2016

Agenda

1. Sanlam Private Wealth the business

2. The proposal

SectionSanlam Private Wealth the business

1

8

Global Wealth Management Business

SwitzerlandUK

South AfricaAustralia

Mauritius

Cayman Islands

32

41

6

5

6 countries | 23 offices | 400+ staff globallyR317 billion assets under management | administration

as at 31 March 2016

First in the lump-sum investor and up-and-coming professional categories

Unwavering Commitment to Client Service

2014, 2015 and 2016

Top Wealth Manager3nd year running

• Portfolio management

• Investment advisory service

• Stock broking

• Fiduciary & tax services

• Offshore investments

• Credit

• Derivatives

• Art advisory service

• Structured products

Wealth Management Solutions

Investments Process

• Protect and grow the wealth of our clients

• Disciplined investment approach

• Huge responsibility (phased-in approach)

• Value driven | bias in our models

• Proprietary research

• Participative debate (weekly investment

meeting)

• Tap into collective wisdom and experience of

portfolio managers and wealth managers

Investment Process

IMPLEMENTATIONPORTFOLIO MANAGER

DAILY CALLSALL INVESTMENT PROFESSIONALS

INVESTMENT COMMITTEEWEEKLY MEETINGS

COMPREHENSIVE PROPRIETARY RESEARCH

& EXTERNAL RESEARCH

MODEL PORTFOLIOS

BUY-SELL LISTS

Most suitable portfolio is selected in line with client’s profile

Extensive, continuous research allows investment team to identify best investment ideas on individual stock and asset allocation

Investment Committee

UNIQUE REQUIREMENTS, INDIVIDUAL PREFERENCES

NEEDS ANALYSIS AND RISK PROFILING

CENTRAL PROCESSEntire Team – CIO, Analysts, PMs

TAILORINGPortfolio Manager

Portfolio Managers have discretion to tailor the model portfolio in line with the client’s unique circumstances

CLIENT IMPLEMENTATION

Adding value

•1/1 interaction with the client• Comprehensive reports and online portfolio

access

• Researched house view models

• A dedicated team of portfolio managers

• A network of global partners & backed by the Sanlam Group

• Access to market information

The people… a well balanced team

Emile Fourie Peter Duminy

Danie Wolmarans

David Botes

Carel De Jongh

Sizwe Mkhwanazi

Rikus Swanepoel Frik van Wyk

Njabulo Hadebe

• More that 100 years experience collectively

• Wide range of expertise and background

• Service driven

• Team orientate

Experience

• If you win a competition and your prize money is to be given to you in one of two ways.• A R10 million lump-sum today or you get 1 cent today and

everyday I doubled what I gave you the previous day for a month.

Idea behind investing

Days Amount Cum. Amount1 0.01R 2 0.02R 0.03R 3 0.04R 0.07R 4 0.08R 0.15R 5 0.16R 0.31R

10 5.12R 10.23R 15 163.84R 327.67R 20 5 242.88R 10 485.75R 25 167 772.16R 335 544.31R 30 5 368 709.12R 10 737 418.23R 31 10 737 418.24R 21 474 836.47R

US SP500 INDEX

The JSE – diminishing volatility over time

Source: Inet & Glacier Research Performance to 31/12/2010

About You

•Risk Profile

• Has capacity for risk

• Aggressive risk appetite

•Asset Class

• Equity

• High risk - high return

The compounding earnings

“Your goal as an investor should be simply to purchase, at a rational price, a part interest in an easily understood business whose earnings are virtually certain to be materially higher, five, ten, and twenty years from now….. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.”

-Warren Baffett

Warren Buffett's view – it is all about earnings

It’s all about earnings

Source: Inet

Because earnings drive stock prices

Source: Inet

The importance of dividends ...dividends drive compound returns

SectionThe proposal 2

• Split

o 70% local (JSE)

o Equity portfolio

o 30% Offshore (SPW UK)

o Direct equity share portfolio

o Worldwide diversification

Investment Proposal

SPW Equity Portfolio (70%)

Examples Of The Companies Our Clients Own Locally.

Rand versus the US$

0

2

4

6

8

10

12

14

16

18Ja

n-86

May

-87

Sep

-88

Jan-

90M

ay-9

1S

ep-9

2Ja

n-94

May

-95

Sep

-96

Jan-

98M

ay-9

9S

ep-0

0Ja

n-02

May

-03

Sep

-04

Jan-

06M

ay-0

7S

ep-0

8Ja

n-10

May

-11

Sep

-12

Jan-

14M

ay-1

5

Ran

d/$

Actual PPP (fitted value) +1STDEV

+2STDEV +3STDEV

Source: INet,SI

SPW Global Equity Income Portfolio (30%)

Examples Of The Companies Our Clients Own Offshore

Sources: SPW UK, Company

Client touch points

• SMS notifications

• Monthly Statement

• Ad-hoc Statements

• Internet “Secure services”

• Feedback

•1/1 client centric service• Tax reporting

Way forward

• Signing mandates• Providing us with FICA• Banking details• Transfer money over• Start phase-in capital

Any Questions?

Thank you

This document is not intended to constitute financial advice. You are urged to seek financial advice from a registered financial advisor. Should you not have a financial advisor, we can make one available to you. Please contact us for more information. The value of investments is subject to fluctuation and past performance is not necessarily a guide to future performance. 

Participation in our model portfolios is a medium to long-term investment. The value is subject to fluctuation and past performance is not necessarily a guide to its future performance. Calculations are based on a lump sum investment with gross income reinvested on the ex-dividend date. All terms exclude costs. Actual investment performance will differ based on the fees applicable, the actual investment date and the date of reinvestment of income.  A schedule of fees and maximum commissions is available on request.

Sanlam Private Wealth (Pty) Ltd, registration number 2000/023234/07 is a member of the Johannesburg Stock Exchange, a licensed Financial Services Provider (FSP 37473) and a Registered Credit Provider (NCRCP1867).

Disclaimer