liberty advanced global equity t1 portfolio...advanced global equity t1 portfolio 2 6. all returns...

LIBERT Y ADVANCED GLOBAL EQUIT Y T1 P ORTFOLIO

ADVICE INSURE INVESTLiberty Group Limited is a registered Long Term Insurer, the insurer of the Evolve Investment Plan and an Authorised Financial Services Provider (FAIS no 2409). Terms and conditions apply.

DISCLAIMER: This document is only intended for use by financial advisers. The information contained in this document does not constitute advice by Liberty. Any legal, technical or product information contained in this document is subject to change from time to time. If there are any discrepancies between this document and the contractual terms, the contractual terms and conditions will prevail. Past performance cannot be relied on as an indication of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by inflation levels in the economy and prevailing market conditions. Any recommendations made must take into consideration your clients specific needs and unique circumstances.

Grow or preserve your investment, with the Liberty Advanced Global Equity T1 portfolio, regardless of market conditions.

This portfolio is the ideal investment for exposure to the largest companies in the world,

whilst having your initial investment guaranteed. When the indices perform well, you

make significant returns, as the portfolio gives you the opportunity for good growth. At

the same time, it also protects your initial investment, so that no matter how poorly the

markets perform, you will not lose your money.

HOW THE PORTFOLIO WORKS1. You invest a minimum of R150 000. This Lump

Sum Investment Amount plus the Allocation Enhancement less the Initial Advice Fee will be invested in the Liberty SP Holding Fund until the Strike Date (the date your investment starts). You will receive the return of the STANLIB Money Market Fund net of tax.

2. With investments over R1 000 000, you will receive an Allocation Enhancement of 1% on the Lump Sum Investment Amount. Investments over R3 000 000 will receive an Allocation Enhancement of 2% on the Lump Sum Investment Amount.

3. On the Strike Date (7 December 2018), the investment (Lump Sum Investment Amount plus the Allocation Enhancement less the Initial Advice Fee plus the STANLIB Money Market return) will be switched into the Liberty Advanced Global Equity T1 portfolio.

4. The Liberty Advanced Global Equity T1 portfolio’s underlying basket is weighted 50% to the S&P 500 and 50% to the Euro Stoxx 50 capital indices. The former is the American stock market index based on the 500 largest companies listed on both the NYSE and NASDAQ. The latter is a

European index based on 50 of the largest blue-chip companies operating in Europe.

5. The Liberty Advanced Global Equity T1 portfolio has a term of 5 years. At the end of 5 years, on your Maturity Date, the return you will earn depends on the change in the basket of underlying capital indices. On the Maturity Date, you will receive one of the following returns:

• If the change in the basket is positive, but less than 10%* p.a., you still receive 10%* p.a.1

• If the change in the basket is more than 10%* p.a., you receive the full growth adjusted for tax of the capital index.

• If the change in the basket is zero or negative, you receive all your money invested in the Liberty Advanced Global Equity T1 portfolio 2

6. All returns mentioned above are net of fees and taxes**

7. During the investment period, you may withdraw all or a portion of your invested funds. Any funds which are moved out of the Liberty Advanced Global Equity T1 portfolio before the Maturity Date are not guaranteed. It is important to note that if you withdraw from the portfolio before maturity, your returns will not be directly linked to the performance of the underlying basket.

Now accepting funds.Limited to the first R1 billion!

SCENARIO 1: Markets go up by 2% p.a.You invest R1 000 000 on 7 October 2018. The Strike Date is 7 December 2018. This investment amount attracts a 1% Allocation Enhancement. A 3.45% Initial Advice Fee is agreed on. The amount allocated to the Liberty SP Holding Fund is R975 500. This amount earns money market returns up to the Strike Date.

By 7 December, assume the investment has grown to R980 000. The amount is transferred to the Liberty Advanced Global Equity T1 portfolio at the Strike Date.

Assume at the Maturity Date the underlying basket of capital indices has increased by 2% p.a. You will receive a 10% p.a. return on your investment in the Liberty Advanced Global Equity T1 portfolio. Your investment value at the Maturity Date would be R1 578 300.

SCENARIO 2: Markets go up by 20% p.a. (after being adjusted for tax)**You invest R500 000 on 7 October 2018. The Strike Date is 7 December 2018. This investment amount attracts a 0% Allocation Enhancement. A 3.45% Initial Advice Fee is agreed on. The amount allocated to the Liberty SP Holding Fund is R482 750. This amount

earns money market returns up to the Strike Date. By 7 December, assume the investment has grown to R490 000. The amount is transferred to the Liberty Advanced Global Equity T1 portfolio at the Strike Date.

Assume at the Maturity Date the underlying basket of capital indices has increased by 20% p.a. (tax adjusted)**. You will receive a 20% p.a. return on your investment in the Liberty Advanced Global Equity T1 portfolio. Your investment value at the Maturity Date would be R1 220 000.

50

10% p.a.

2% p.a.

Minimum return if the change in the underlying basket of capital indices is positive

Actual change in the underlying basket of capital indices

You receive a return of 10% p.a. over five years (net of tax).

50

20% p.a.

10% p.a.


Minimum return if the change in the underlying basket of capital indices is positive

You receive a return equivalent to the full (tax adjusted) growth of the index.



SCENARIO 3: Markets go down by 7% p.a.You invest R4 000 000 on 7 October 2018. The Strike Date is 7 December 2018. This investment amount attracts a 2% Allocation Enhancement. A 3.45% Initial Advice Fee is agreed on. The amount allocated to the Liberty SP Holding Fund is R3 942 000. This amount earns money market returns up to the Strike Date.

By 7 December, assume the investment has grown to R3 980 000. The amount is transferred to the Liberty Advanced Global Equity T1 portfolio at the Strike Date.

Assume at the Maturity Date the underlying basket of capital indices has decreased by 7% p.a. You will receive the amount initially invested in the Liberty Advanced Global Equity T1 portfolio. Your investment value at the Maturity Date would be R3 980 000.

50

- 7% p.a.

You receive your initial investment value in the Liberty Advance Global Equity T1 portfolio

1 The numbers shown in this brochure are indicative and are subject to market conditions as well as the tax treatment of the investment at the time. Liberty does not charge

any other fees. All returns are net of fees and tax.2 The principle protection and minimum return are only applicable if you hold the investment to maturity. If you choose to withdraw a portion or the whole of your

investment early, you could suffer a capital loss on the portion withdrawn.

*Current indicative pricing is 10.5% p.a. The minimum Liberty will offer on this product is 10% p.a. after fees and taxes. The final number will be determined at Strike Date,

this being at least 10% p.a.

WHY YOU SHOULD CONSIDER THIS PORTFOLIOSignificant growth while ensuring your investment risk is minimised.

You can give your investment the chance to grow in line with the performance of the largest companies in the US and Europe, while ensuring a safety net on your initial investment against market volatility.

No currency exposure

If the Rand weakens, your investment returns are not affected.

Transparent market movements

By linking the portfolio to an underlying index, your returns are calculated according to a straightforward

and transparent method: when the index grows, your investment grows.

Tax administration removed No additional tax related admin.




IMPORTANT INFORMATION:

The 10% p.a. return quoted is the minimum. The final return may be higher based on market conditions at the Strike Date i.e. at the time of purchasing the underlying asset.

This portfolio is only available on the Evolve Investment Plan, which is an Endowment product. The benefits illustrated are only applicable if you stay invested for the full 5 years. Should you decide to withdraw early during the term, it is most likely that you will receive less than your initial investment. There are no guarantees on the value of the investment during the term. The value you receive on early withdrawal can be higher or lower than the amount originally invested, and is not directly linked to the value of the underlying basket of indices.

Liberty may adjust any guarantees and benefits if any legislation (including tax legislation) affecting this Investment is introduced or changed, or the legal interpretation of any legislation (including tax legislation) or legal precedent affecting this investment changes.

Liberty offers you this investment using a certificate issued by BNP Paribas Issuance B.V. (BNPI), which includes a guarantee by BNP Paribas. This means you are exposed to the credit risk of BNPI. As the returns offered by the Liberty Advanced Global Equity T1 portfolio are dependent on the certificate, there is a risk of partial or total loss of capital in the case of bankruptcy or default of payment obligations by BNPI and BNP Paribas. This means that, in the event of BNP not being able to honour the payment, Liberty is not responsible to make this payment on their behalf.

**For more details about benefits, guarantees, fees, tax, limitations, charges, premiums or other conditions about the Liberty Advanced Global Equity T1 portfolio, please speak to a Liberty financial adviser or broker or visit www.liberty.co.za



liberty advanced global equity t1 portfolio...advanced global equity t1 portfolio 2 6. all returns...

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