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Nedgroup Investments Unit Trust Portfolio Characteristics – Nedbank Financial Planners of 3

Nedgroup Investments Unit Trust Portfolio Characteristics Nedbank Financial Planners Section A: Unit trust portfolios that pay an annual financial planning fee priced into the unit price of the portfolio (unit price)

Section A notes: 1 If the total expenses are more than the income earned, the unit trust portfolio will not make a distribution. 2 Includes an annual financial planning fee of 0.50% (0.20% for Core Income Fund and 1.00% for the fund of funds portfolios). 3 Based on a long-term assumption for inflation of 5.00%. 4 Although not approved as a Regulation 28 compliant portfolio, the underlying assets of this unit trust portfolio are managed in line with Regulation 28 of the Pension Funds Act.5 Based on long-term assumption for cash of 5.50%. 6 The annual portfolio management fee represents the aggregate of the fees levied by the fund of funds and by its underlying portfolios.

Unit trust portfolio

Investor profile Risk rating / Recommended term

Income distribution1

Regulation 28 compliant

Benchmark Annual portfolio management fee (excl VAT)2

Investment managers

Equity portfolios

Rainmaker Fund Class A1

Investors seeking exposure to the domestic equity market with maximum capital appreciation as their primary goal over the long term. Investors should have a tolerance for short-term market volatility in order to achieve long-term objectives.

Medium to high / Minimum 5 - 7 years

Annually No South African Equity General Unit Trust Mean

Fixed fee: 1.75% Abax Investments

Value Fund Class A1




Fixed fee: 1.75% Foord Asset Management

Growth Fund Class A1




Fixed fee: 1.75% Electus (a member of the Old Mutual group)

Specialist equity portfolios Entrepreneur Fund Class A1

Investors seeking sector specific exposure to small- and mid-cap shares as part of their overall investment strategy, with maximum capital appreciation as their primary goal over the long term. Due to its specialist nature, the portfolio will typically display higher volatility than a general equity portfolio.

High / Minimum 5 - 7 years

Annually No South African Equity Mid and Small Cap Unit Trust Mean


Asset allocation portfolios Stable Fund Class A1

Investors seeking a high level of capital protection, with the potential for some capital growth, who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 40% helps to reduce risk and volatility relative to an average prudential portfolio.

Low to medium / Minimum 3 years

Biannually Yes Inflation +4%pa over rolling 3 year periods

Base fee of 0.50% plus performance fee calculated daily as 10% (sharing rate) of total positive performance above high watermark. Minimum fee: 0.50% Fee at benchmark: 1.40%3 Maximum fee: 3.00%

Foord Asset Management

Opportunity Fund Class A2

Investors seeking moderate levels of capital growth who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 60% helps to reduce risk and volatility relative to an average prudential portfolio.

Medium / Minimum 3 - 5 years

Biannually Yes Inflation +5% pa over rolling 3 year periods


Managed Fund Class A2

Investors seeking moderate levels of capital growth who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 75% helps to reduce risk and volatility relative to a general equity portfolio.

Medium / Minimum 3 – 5 years

Biannually Yes South African Multi Asset High Equity Unit Trust Mean

Fixed fee: 1.75% RECM

Bravata Worldwide Flexible Class A

Investors seeking exposure to both domestic and international assets, with maximum capital appreciation as their primary goal. The portfolio may be subject to currency fluctuations due to its international exposure, but will typically display lower volatility than a general equity portfolio.


Annually No Inflation +5% pa over rolling 3 year periods

Base fee of 1.50% plus performance fee calculated as 20% (sharing rate) of outperformance of inflation +5% with a high watermark. Minimum fee: 1.50% Fee at benchmark: 1.50% Maximum fee: 3.50%

Aylett & Company

Income portfolios

Core Income Fund Class A1

Investors seeking high levels of income and capital preservation. The portfolio is similar to a money market portfolio but will typically have a longer average duration than traditional money market portfolios.

Low / Minimum 6 months

Monthly Yes STeFI Composite

Fixed fee: 0.60% Taquanta Asset Managers

Flexible Income Fund Class A1

Investors seeking enhanced money market returns, but who have a low tolerance for capital loss and who do not wish to make complex asset allocation decisions between cash, bonds, property and other fixed interest asset classes. The portfolio typically displays higher volatility than a money market portfolio.


Quarterly No4 110% STeFI Call Rate

Base fee of 0.50% plus performance fee calculated daily as 10% (sharing rate) of total positive performance above high watermark. Minimum fee: 0.50% Fee at benchmark: 1.10%5 Maximum fee: 1.75%

Abax Investments

XS Select Fund of Funds portfolios XS Select Guarded Fund of Funds Class A

Investors for whom a more defensive, risk-orientated investment policy is appropriate.


Quarterly Yes Inflation +3% pa over rolling 3 year periods

Aggregate fee6: 1.95%

Nedgroup Investment Advisors

XS Select Diversified Fund of Funds Class A

Investors for whom a balanced risk-orientated investment policy is appropriate.





XS Select Equity Fund of Funds Class A

Investors for whom a more aggressive risk-orientated investment policy is appropriate.


Annually No Inflation +6.5% pa over rolling 7 year periods



30 Dec 2014


Section B: Unit trust portfolios where the annual financial planning fee is recovered via the selling of units (sale of units)

Unit trust portfolio

Investor profile Risk rating / Recommended term

Income distribution1

Regulation 28 compliant

Benchmark Annual portfolio management fee (excl VAT)

Investment managers

Equity portfolios Rainmaker Fund Class A2





Value Fund Class A2




Fixed fee: 1.25% Foord Asset Management

Growth Fund Class A




Fixed fee: 1.50% Electus (a member of the Old Mutual group)

Core Equity Fund Class A

Investors seeking exposure to the domestic equity market (and favour a quantitative investment approach) with maximum capital appreciation as their primary goal over the long term. Investors should have a tolerance for short-term market volatility in order to achieve long-term objectives.




Specialist equity portfolios Entrepreneur Fund Class A

Investors seeking sector specific exposure to small- and mid-cap shares as part of their overall investment strategy, with maximum capital appreciation as their primary goal over the long term. Due to its specialist nature, the portfolio will typically display higher volatility than a general equity portfolio.


Annually No South African Equity Mid and Small Cap Unit Trust Mean


Mining and Resource Fund Class A

Investors seeking sector specific exposure to mining and resources shares as part of their overall investment strategy, with maximum capital appreciation as their primary goal over the long term. Due to its specialist nature, the portfolio will typically display higher volatility than a general equity portfolio.


Annually No South African Equity Resources Unit Trust Mean

Fixed fee: 1.50% Prudential Portfolio Managers

Financials Fund Class A

Investors seeking specific exposure to financial sector shares as part of their overall investment strategy, with maximum capital appreciation as their primary goal over the long term. Due to its specialist nature, the portfolio will typically display higher volatility than a general equity portfolio.


Annually No South African Equity Financial Unit Trust Mean

Fixed fee: 1.50% SIM Global

Asset allocation portfolios Stable FundClass A

Investors seeking a high level of capital protection, with the potential for some capital growth, who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 40% helps to reduce risk and volatility relative to an average prudential portfolio.



Foord Asset Management

Opportunity Fund Class A1

Investors seeking moderate levels of capital growth who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 60% helps to reduce risk and volatility relative to an average prudential portfolio.




Managed Fund Class A1

Investors seeking moderate levels of capital growth who do not wish to make complex asset allocation decisions between equities, cash and bonds, both locally and offshore. Diversification across asset classes and a maximum equity exposure of 75% helps to reduce risk and volatility relative to a general equity portfolio.


Biannually Yes South African Multi Asset High Equity Unit Trust Mean

Fixed fee: 1.25% RECM

Income portfolios

Money Market Fund Class R

Investors seeking high levels of income and capital preservation. The portfolio provides an attractive alternative to savings accounts. The portfolio typically displays little volatility.

Low / No minimum period

Monthly No STeFI Call Rate


Core Income Fund Class B

Investors seeking high levels of income and capital preservation. The portfolio is similar to a money market portfolio but will typically have a longer average duration than traditional money market portfolios.


Monthly Yes STeFI Composite


Flexible Income Fund Class A

Investors seeking enhanced money market returns, but who have a low tolerance for capital loss and who do not wish to make complex asset allocation decisions between cash, bonds, property and other fixed interest asset classes. The portfolio typically displays higher volatility than a money market portfolio.

Quarterly No3 110% STeFI Call Rate

Low / Minimum6 months

Abax Investments

Performance fee calculated daily as 10% (sharing rate) of total positive performance above high watermark.Minimum fee: 0.00%Fee at benchmark: 0.60%4

Maximum fee: 1.25%

Performance fee calculated daily as 10% (sharing rate) of total positive performance above high watermark.Minimum fee: 0.00%Fee at benchmark: 0.90%2

Maximum fee: 2.50%

30 Dec 2014


Section B notes: 1 If the total expenses are more than the income earned, the unit trust portfolio will not make a distribution. 2 Based on a long-term assumption for inflation of 5.00%. 3 Although not approved as a Regulation 28 compliant portfolio, the underlying assets of this unit trust portfolio are managed in line with Regulation 28 of the Pension Funds Act. 4 Based on long-term assumption for cash of 5.50%. 5 Includes the underlying fee and VAT is not applicable. 6 Refers to the investment manager of the underlying unit trust portfolio that the feeder funds feed into. 7 The annual portfolio management fee represents the aggregate of the fees levied by the fund of funds and by its underlying portfolios. Unit trusts (collective investment schemes in securities) are generally medium- to long-term investments. The value of units (participatory interests) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up and down. Unit trust prices are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accruals and less any permissible deductions (brokerage, Securities Transfer Tax, VAT, auditor’s fees, bank charges, trustee and custodian fees and the annual management fee) from the unit trust portfolio, divided by the number of units in issue. Unit trusts are traded at ruling prices and forward pricing is used. Unit trust portfolios are priced daily at 15:00. Instructions must reach us before 14:00 (12:00 for the Money Market Fund) to ensure same business day value. Unit trusts can engage in scrip lending and borrowing. Different classes of units may apply to these unit trust portfolios and are subject to different fees and charges. A schedule of maximum fees and charges is available on request from us. Fees and incentives may be paid, and if so, are included in the overall costs. These unit trust portfolios may be closed. The Money Market Fund aims to maintain a constant price of 100 cents per unit. The total return to the investor is primarily made up of interest received, but may also include any gain or loss made on any particular investment. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the Money Market Fund. A fund of funds is a portfolio that invests in portfolios of collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. A feeder fund is a unit trust portfolio that, apart from assets in liquid form, consists solely of participatory interests in a single unit trust portfolio of a collecti ve investment scheme. A member of the Association for Savings and Investment South Africa (ASISA).

.Trustee: The Standard Bank of South Africa Limited; PO Box 54, Cape Town, 8000.

www.nedgroupinvestments.co.zaunit trusts │ offshore │ retirement funds

Section B: Unit trust portfolios where the annual financial planning fee is recovered via the selling of units (sale of units) (cont.)

Rand denominated international portfolios

Global Cautious Feeder Fund Class A1

Investors seeking global exposure to a diversified portfolio (in respect of asset classes, regions and currencies) through a single entry point. The portfolio will have a maximum equity exposure of 40%.The portfolio will be subject to currency fluctuations due to its international exposure.


Annually No USD Libor 1 month (rand equivalent)

Fixed fee: 1.25%5 J.P. Morgan Asset Management6

Global Flexible Feeder Fund Class A

Investors seeking exposure to a fully flexible globally diversified portfolio (in respect of asset classes, regions and currencies) through a single entry point. The portfolio will be subject to currency fluctuations due to its offshore exposure.


Annually No Global Multi Asset Flexible Unit Trust Mean

Fixed fee: 1.25%5 First Pacific Advisors6

Global Equity Feeder Fund Class B

Investors seeking exposure to global equity markets with maximum capital appreciation as their primary goal over the long term. The portfolio will be subject to currency fluctuations due to its international exposure.

Medium to high / Minimum 5 – 7 years

Annually No Global Equity General Unit Trust Mean

Fixed fee: 1.25%5 Veritas Asset Management6

XS Select Fund of Funds portfolios XS Select Guarded Fund of Funds Class C

Investors for whom a more defensive, risk-orientated investment policy is appropriate.


Quarterly Yes Inflation +3% pa over rolling 3 year periods



XS Select Diversified Fund of Funds Class C

Investors for whom a balanced risk-orientated investment policy is appropriate.





XS Select Equity Fund of Funds Class C

Investors for whom a more aggressive risk-orientated investment policy is appropriate.


Annually No Inflation +6.5% pa over rolling 7 year periods



Income portfolios (Continued)

Core Bond Fund Class A

Investors seeking specific exposure to the South African bond market as part of their overall investment strategy. The portfolio typically displays higher volatility than a money market portfolio, but lower volatility than a general equity or balanced portfolio.


Quarterly No All Bond Index Fixed fee: 0.35% Taquanta Asset Managers

Property Fund Class A1

Investors seeking sector specific exposure to real estate securities as part of their overall investment strategy, with both income generation and capital appreciation as their primary goal over the long-term.

Medium to high / Minimum 5 years

Quarterly No South African Real Estate General Unit Trust Mean

Fixed fee: 0.75% Grindrod Asset Management

Manager: Nedgroup Collective Investments (RF) Proprietary Limited (Reg No 1997/001569/07).

30 Dec 2014

Nedgroup Investments Proprietary Limited (Company registration number 1996/017075/07)Incorporating Nedgroup Collective Investments (RF) Proprietary Limited (Company registration number 1997/001569/07) Nedgroup Investment Advisors Proprietary Limited (Company registration number 1998/017581/07) an authorised Financial Services Provider (FSP number 1652)Sponsor of the Nedgroup Investments Retirement Funds

Nedbank Clocktower Clocktower Precinct V&A Waterfront Cape Town 8001PO Box 1510 Cape Town 8000 South Africawww.nedgroupinvestments.co.zaDirectors: D Macready NA Andrew CE Sevenoaks

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