The PPS Endowment Plan is a tax-efficient investment vehiclewhich is structured with the creation of long-term wealth in mind.It is most suitable if you fall into a marginal tax rate greater than30% and have a minimum investment time horizon of five years.

While access to capital is limited within the first five years orextended restriction period, this plan offers significant taxbenefits. Taxable income for you (interest, net rental incomeand foreign dividends) is taxed at 30%, while realised capitalgains attract capital gains tax at 7.5%. The proceeds of awithdrawal from the plan are tax-free in your hands. All taxreporting responsibility is removed from you, the Investor.

The PPS Endowment Plan offers a simple and transparent coststructure and allows you unlimited flexibility in changing yourunderlying investments as well as managing the timing ofinvestments into your plan.

KEY BENEFITS AND FEATURESInvestment OptionsThe range of Investment Options offers a selection of multi-managed PPS unit trusts that provide clearly defined underlyinginvestment choices. We also give you the choice of a selection oftop-performing single-manager unit trusts to ensure that youhave a varied and well-defined range of alternatives.

SwitchingYou may change your Investment Options as often as you choosewithout incurring a transaction fee. Certain underlying assetmanagers do, however, charge an initial upfront fee for investmentin their Investment Options, which would be applied upon yourswitch into those Investment Options.

TransfersYou may not transfer your PPS Endowment Plan to anotherendowment policy or transfer another endowment policy into thePPS Endowment Plan.

Restriction periodThe PPS Endowment Plan has an initial restriction period of fiveyears. You may make additional contributions to your plan at anytime, subject to set minimum investment amounts. Should thecontributions, however, exceed 120% of the greater of yourannual contributions in the prior two-year period, your investmentwill enter an extended restriction period for another five yearsfrom the date of the contribution.

Surrender valueYou are entitled to one withdrawal during the initial restrictionperiod of five years or any extended restriction period. Thewithdrawal value is limited to your contributions plus 5%compound interest per year. If the actual market value of thePPS Endowment Plan is less than the legal surrender limit, themarket value (less any deductions such as tax) will be paidto you.

Withdrawals from your PPS Endowment Plan are not limitedonce the initial five-year restriction period, as well as any furtherrestriction periods which may have been applied, have expired.

CessionsA PPS Endowment Plan may be ceded outright or partially.

LoansYou are entitled to one Non-interest Bearing Loan/Zero interestloan during the initial restriction period of five years. The zerointerest loan value is limited to the amount invested plus 5%compound growth per year. You have the right to pay theamount taken as a loan back into the endowment structurewithout breaking the restriction period. There will however be noobligation on you to pay back this loan. There will also be nointerest payable from the amount taken. The amount of loansyou can take after the five year restriction period will be unlimitedbut the same rules as with withdrawals will apply.

Death benefitsUpon your death, the proceeds of your PPS Endowment Plan willflow directly to your beneficiaries, tax-free in their hands. This willsave your estate up to 4% (including VAT) in executor's fees.

Cooling-off periodA 30-day cooling-off period applies from the date that you receiveyour PPS Endowment Plan policy summary and its terms andconditions. Should you choose to terminate your investmentwithin this period, your original investment amount will bereturned to you but may be reduced as a result of market losses.No interest or investment return will be paid or accrued to you.This option will not be available to you if you have made anyswitches to your investment selection or if any benefit has beenpaid within the cooling-off period.

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ADMINISTRATION FEESInitial feesNo initial fees.

Ongoing feesAn ongoing administration fee of 0.80% is charged annually.Your fee may be reduced by a sliding scale and partnershipsavings that we have negotiated with the managers of the InvestmentOptions featured on our administration platform.

Your annual administration fee is calculated as follows:

1) PPS Endowment Plan invested in any of the PPSMulti-Managed unit trusts

Your annual administration fee is 0.80%Subtract the partnership saving of 0.80%Leaving a net annual administration fee of 0%

2) PPS Endowment Plan invested in other 3rd partyInvestment Options

Your annual administration fee is 0.80% and can bereduced by the following:

a. A sliding scale that reduces your fees depending onyour investment amount i.e. the higher your investmentamount, the lower your annual administration fee.Refer to the PPS Endowment Plan application formfor more details.

b. The partnership saving – for example.

ASSET MANAGEMENT FEESInitial feesNo initial fees are charged on investments into the PPS Multi-Managed unit trusts. Should you choose to invest in one of the3rd party Investment Options, an initial fund management fee of0.29% may be charged by the fund manager. Currently none ofthe 3rd party Investment Options, on our platform levy fees.

Ongoing feesThe annual asset management fees vary depending on the unittrusts you select. These are fully disclosed on the InvestmentOption schedule; please see application form for details.

* All fees include an amount calculated to compensate for VAT costs.

Minimum investmentLump sum: R10 000Recurring*: R 500 per monthAd hoc: R5 000

* The minimum recurring debit order amount for a memberunder the age of 30 is R200 per month, which should beescalated to the normal minimum of R500 per month afterthe member’s 30th birthday.

TaxTaxable growth (interest, net rental income and foreign dividends)is taxed at 30% for individuals and the proceeds of a withdrawalfrom the plan are tax-free in your hands. All taxes due andpayable are paid by PPS Insurance and recovered by PPSInvestments from your PPS Endowment Plan. All tax reportingresponsibility is removed from you, the Investor.

FEESThere are three types of fees:

Intermediary fee (initial and ongoing)Payable to your accredited PPS Intermediary. (if applicable)

Administration fees (initial and ongoing)Payable to PPS Investments.

Asset manager fees (initial and ongoing)Payable to the manager of the unit trust(s) that you select.

FEESInitial feesThis fee is negotiated between you and your accredited PPSIntermediary and ranges from 0% to 3.42%.

Ongoing feesAnnual fee is negotiated between you and your accreditedPPS Intermediary and ranges from 0% to 1.14% per annum.

Investment amount

R1mil

Scaledadministration fee

0.65%

Partnershipsaving

0.46%

Actualadministration fee

0.19%

PPS INVESTMENTS (PTY) LIMITED REG NO: 2005/029098/071ST FLOOR, TRAVERS HOUSE, BOUNDARY TERRACES, 1 MARIENDAHL LANE, NEWLANDS, 7700, PO BOX 44507, CLAREMONT 7735

DIRECTORS: EA MOOLLA (CHAIRMAN), NJ BATTERSBY, CK DE KLERK, MJ JACKSON, PJ KOEKEMOER, HA NELSON, AC PILLAYCLIENT SERVICE: 0860 468 777 (0860 INV PPS) www.ppsinvestments.co.za

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Disclaimer: The information, opinions and any communication from the PPS Investments group, whether written, oral or implied are expressed in good faith and not intended as investment advice, neither does itconstitute an offer or solicitation in any manner. Furthermore, all information provided is of a general nature with no regard to the specific investment objectives, financial situation or particular needs of any person.It is recommended that investors first obtain appropriate legal, tax, investment or other professional advice prior to acting upon such information. All reference to tax is under current tax legislation. Please refer toproduct rules or contact a tax specialist for more information. PPS Investments (39270) and PPS Multi-Managers (28733) are licensed financial services providers

AccreditedPPS

Intermediary

AdministrationCompany

PPS Investments

AssetManager

A

AssetManager

B

AssetManager

C

Initial andongoing assetmanager fees

Ongoingadministration

fees

Negotiatedinitial andongoing

advice fees

YOURINVESTMENT