STANLIB Global Investments

It has been said: ‘’The world is a book and those who do not travel read only a page.’’

The same can be said of investing globally.

01About STANLIB 02

02Global Investing with STANLIB 02 STANLIB Global Portfolio Range 04

03 STANLIB Global Partners 04

04Investment Process 08

05 Frequently Asked Questions 12

About STANLIB

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STANLIB - Focused Investing

STANLIB is a Pan-African multi-specialist investment company active in ten African countries. We have business partners in North America, the United Kingdom, Europe, Middle East and Asia. We have USD37 billion assets under management and administration (R579 billion), with over 500 000 retail and institutional clients across the African continent (as at 31 December 2015).

With globalisation becoming an increasingly significant factor in both investment markets and our daily lives, investing globally has become an essential part of building a successful portfolio. By taking advantage of global investment opportunities, you can share in the growth of the world’s most profitable industries and also benefit from holding investments in other currencies.

Global investing has become more accessible to investors over the last decade. The South African Reserve Bank has continued to allow South African citizens to allocate a larger portion of their wealth and savings to foreign assets. As such, more investors are taking advantage of this opportunity and diversifying their wealth across foreign countries, currencies, sectors and asset classes.

At STANLIB we have a simple step by step process to facilitate global investing. Our global funds are available directly with us or accessible through foreign and domestic platforms. We have a number of investment propositions to meet investor’s risk-reward appetite which are detailed in this document.

Why Global Investments?

Diversification is the key to the long-term success of any investment. Global investments offer high levels of diversity across countries, currencies and sectors which are often uncorrelated and unavailable domestically.

Investors who limit their investment options to just one jurisdiction narrow their investment outcome to the potential profitability of just a handful of investment sectors, which are often operating in the same business cycle. In this case, investment returns are often guided by the same macro driven factors such as interest rates, unemployment, inflation and tax. The dispersion of returns is often quite different for investments within the same sector but in different countries, this presents opportunity.

The key is identifying a global manager that has the ability, expertise and support to find these opportunities.

South African residents qualify for an annual offshore allowance of up to R 11 million. This is made up of R1 million (discretionary allowance which does not require a tax clearance) and an additional R 10 million (which requires a tax clearance).

SARS has recently availed an online platform to allow SARS e-filing registered users to apply for tax clearance certificate, enabling an easier offshore investing experience.

Global Investing with STANLIB

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Why STANLIB Global Investments?

At STANLIB we have a key focus on the African continent and are determined to deliver investment excellence in all the markets that we serve. As such we have appointed global experts in their respective fields to apply their management skills in areas that we do not cover. We have meaningful partnerships with global portfolio managers we believe will deliver strong and consistent returns over the long-term, in an unconstrained manner. Our portfolio range covers all asset classes which look to capitalise on global opportunities, wherever they may exist.

Global investing may take the shape of a rand-based foreign investment (via an asset swap) or a foreign currency (via own foreign allowance). At STANLIB we offer both options for investors (rand denominated funds and foreign denominated funds).

Secure, personal, international Jersey is well-established as one of the world’s leading offshore financial centers and has developed a respected funds sector offering a broad range of fund regimes from regulated unit trust options through to the more sophisticated and institutional and of the market. As one of the Channel Islands, Jersey operates in a jurisdiction close to, but outside of the United Kingdom and continental Europe, and offers a high level of security with tightly-controlled regulation from the Jersey Financial Services Commission. It is the largest and most established of the Channel Islands in terms of financial services, particularly in the fund management sector where it is a world leader.

Succession planning through Jersey In South Africa there is no such thing as a “joint” account, there is only an option for a main account holder whose spouse has signing rights. This means that if the main account holder dies, the account is frozen, along with all the money to pay the bills. Jersey on the other hand, legally recognises joint holdings. If one party to the holding passes away, on receipt of a certified copy of the death certificate, the holding reverts jointly to the surviving holder(s) without the need for Jersey probate. It is possible to add up to four individuals to an offshore portfolio.

Tax implications If a client invests in our STANLIB direct offshore unit trust, the investment will form part of the client’s South African estate. STANLIB direct offshore unit trusts are ‘roll-up’ funds meaning all income type returns generated from investments are reinvested into the fund. However, the client will be taxed on capital gains (CGT) if the client redeems/switches funds from portfolio.

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STANLIB Euro Currency FoF

STANLIB Global Bond Feeder Fund

STANLIB Global Equity Feeder Fund

STANLIB Global Property Feeder Fund

STANLIB Global Balanced Feeder Fund

STANLIB US Dollar Cash FoF

STANLIB European Equity Feeder Fund

STANLIB Global Balanced Cautious Feeder Fund

STANLIB Multi-Manager Global Equity Feeder Fund

PORTFOLIO NAMES

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ERS Fidelity Worldwide

InvestmentsBrandywine Global Investments and STANLIB Multi-Manager

Columbia Threadneedle Investments and STANLIB Multi-Manager

STANLIB Asset Management Limited

Columbia Threadneedle Investments

CASH BONDS EQUITY PROPERTY MULTI-ASSET

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Euro Cash FundSTANLIB Global Bond Fund

STANLIB Global Equity Fund

STANLIB Global Property Fund

STANLIB Global Balanced Fund

STANLIB Sterling Cash Fund

STANLIB Multi-Manager Global Bond Fund

STANLIB European Equity Fund

STANLIB Global Balanced Cautious Fund

STANLIB US Dollar Cash Fund

STANLIB Global Emerging Markets Fund

STANLIB Multi-Manager Global Equity Fund

STANLIB’s Global Portfolio Range

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STANLIB’s Global Partners

It is our view that each investment area requires different skills and approaches and hence we create small teams, each with a dedicated focus. This allows us to appoint talented and passionate people with the specific skills to deliver the best potential outcome for our investors, backed by our rigorous process. We follow the same philosophy in our approach to offshore investing but where necessary, we complement our in-house skills by partnering with experienced offshore asset managers who share the same valuation-driven approach.

Brandywine Global Investment Management, LLC

We have partnered with Brandywine Global Investments, a boutique fixed interest asset manager, to manage our global fixed interest portfolios.

Founded in 1986, Brandywine Global Investment Management manages US$70 billion in assets (as at 31 March 2015).

Their mission, to seek value not yet recognised by others, is the core principle behind their work and is reflected in their culture, strategy and day-to-day decision-making process. Brandywine applies a top-down, value-driven process when structuring global income portfolios. Real (inflation-adjusted) yield is their primary measure of value. Currency valuation is next in importance, as the real yield must be captured in US dollars. They focus on appreciating, undervalued currencies and overvalued currencies that can be hedged. Inflation trends, political risks, monetary trends, and business cycle and liquidity measures are also considered. Brandywine typically concentrate investments in 8-16 countries that appear to offer the best total return potential.

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Fidelity Worldwide Investments

We have partnered with Fidelity Worldwide Investments to manage our offshore cash portfolios. Fidelity International and its subsidiaries manage assets worth US$2 trillion (as at 31 March 2016).

The cornerstone of Fidelity’s investment approach is research. As well as studying financial results, analysts and fund managers visit companies, meet their managers and talk to suppliers, customers and distributors, giving the investment team, a clear 360° view of each company they invest in.

Columbia Threadneedle Investments

In managing our global equity and multi-asset portfolios we have partnered with Columbia Threadneedle Investments, which is the global brand name of the Columbia and Threadneedle group of companies. You can benefit from global investment perspectives, which harness the resources, experience and scale of one of the world’s largest asset management groups. Columbia Threadneedle has 2000 professionals, located across 18 countries, responsible for more than US$464 billion in assets (as 31 March 2016).

They manage 115 funds rated four – five stars by Morningstar, which are available in a range of markets throughout the world. Columbia Threadneedle’s global investment framework generates richer insights and shared ideas across their team.

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STANLIB Multi-Manager was established in 1999 and is the centre of excellence for multi-managed solutions within the Liberty group. We have offices in South Africa and London with mandates in excess of R150 billion under stewardship.

With a proud offshore track record of more than a decade. STANLIB Multi-Manager is currently the largest Collective Investment Scheme (CIS) multi-manager in South Africa, demonstrating the confidence that investors have in the multi-managed solutions.

Our investment approach is to simplify an increasingly complex investment universe. Providing investors with the convenience of a single investment decision with a unique value proposition across different asset classes , strategies and passives. We have an advisory agreement with FundQuest UK Limited a subsidiary of BNP Paribas Investment Partners within the BNP Paribas Group. This allows us access to a wide range of world-class service providers and the ability to gain extensive investment insights. STANLIB Multi-Manager also provides additional diversification by including external managers whereby they take responsibility for selecting the right managers.

We currently have with the following managers on the STANLIB Multi-Manager Global Bond Fund: Capital International, Brandywine, Columbia Threadneedle and BlackRock.

Our underlying managers on the STANLIB Multi-Manager Global Equity Fund include: Capital International, Veritas, Aberdeen, Hosking & Co, Arrowstreet and AlianceBernstien.

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STANLIB Multi-Manager

Investment Process

Investing offshore (using foreign currency) is often perceived as challenging when faced with manager selection, foreign exchange control regulations, tax, estate duty etc. We have a dedicated administration team based in Melrose Arch, Johannesburg as well as in Jersey to ensure that the investment process runs smoothly and efficiently. This section outlines the steps to follow on investing in our STANLIB Offshore Unit Trust Schemes for the two scenarios: where funds are already offshore and where funds are still in a South African bank account.

Where the funds are already offshore The step-by-step process for investment is as follows:

STEP 1: Select fund/s STEP 2: Complete a STANLIB Offshore Unit Trust Application Form STEP 3: Arrange for transfer of funds STEP 4: Submit all original documentation including Know Your Client (KYC) documentation to STANLIB

STEP 1: Select fund/s

Please see our global portfolio range found on page 4 of this document.

STEP 2: Complete a STANLIB application form

Complete a STANLIB Offshore Unit Trust Application Form.

STEP 3: Arrange for transfer of funds

The next step is to arrange for the transfer of your funds:

Љ Complete a telegraphic transfer form - available on www.stanlib.com Љ Submit telegraphic transfer form to your bank or; Љ Transfer funds via online banking to banking details which can be found on page 11 of this document

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STEP 4: Submit all documentation including Know Your Client (KYC) documentation to STANLIB The following documents need to be submitted to STANLIB:

Љ Fully completed original STANLIB Offshore Unit Trusts Application Form signed by all holders Љ Originally signed and certified KYC documentation

Where the funds are in a South African bank account The step-by-step process for new investment is as follows:

STEP 1: Select fund/s STEP 2: Complete a STANLIB Offshore Unit Trust Application Form STEP 3: Offshore allowance STEP 4: Arrange for transfer of funds (buying of currency) STEP 5: Submit all original documentation including Know Your Client (KYC) documentation to STANLIB

STEP 1: Select fund/s

Please see our global portfolio range on page 4 of this document.

STEP 2: Complete a STANLIB application form

Complete a STANLIB Offshore Unit Trust Application Form (New Business Application Form/Additional Investment Application Form).

STEP 3: Offshore allowance

Discretionary allowance If your investment amount is below R1 million, you can utilise your annual discretionary allowance by completing the Discretionary Allowance Form for the bank doing your transfer offshore.

Foreign capital allowance If your investment amount is in excess of R1 million, you can make use of your annual individual foreign capital allowance of upto R10 million. This would require a tax clearance certificate from SARS using the FI001 (Foreign investment allowance for individuals) application form. Alternatively apply online through your efiling profile.

A Balance of Payment (BOP) form in both cases must be completed for the bank doing the transfer and relevant FICA documentation submitted as well.

STEP4: Arrange for transfer of funds

Whilst you may have existing arrangements to transfer your funds offshore, we have negotiated wholesale foreign exchange rates that are very competitive.  In addition, once the funds have been converted into foreign currency, we also absorb the transfer charges to move the funds offshore.   

Should you wish to take advantage of this service and you bank with Standard Bank, please submit the following documents to STANLIB :

Љ Original signed STANLIB Offshore Unit Trusts Application Form Љ Original Tax Clearance Certificate/originally signed discretionary Љ Original signed Application to Purchase Foreign Currency Form (BOP) Љ Originally signed and certified KYC documentation

If you bank with other local banks , there maybe a slight difference with regards to the BOP Form depending on the client’s preference. Please contact our offshore team who would be able to provide clear guidance. If you need to apply for a Tax Clearance Certificate, you can either use SARS e-filing or visit any SARS office. If using e-filing, you should select the ‘Foreign Investment Allowance’ option.

STEP 5: Submit all documentation including Know Your Client (KYC) documentation to STANLIB

The following documents need to be submitted to STANLIB:

Љ Fully completed original STANLIB Offshore Unit Trust Application Form signed by all holders Љ Originally signed and certified KYC documentation

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Please note: The before-mentioned steps apply to all new investments and additional investments. However a new investor must complete a STANLIB Offshore Unit Trusts (New Business Application Form) and an additional investor must complete a STANLIB Offshore Unit Trusts (Additional Investments Application Form).

Other Transactions Additions

The minimum additions ad hoc investment amount is US$1000 or currency equivalent. However if it is a new class fund you are investing in, the minimum initial investment amount is US$2500.

To make an additional investment, please complete a STANLIB additional investment form. Submit all relevant documentation.

Switches

The minimum switch amount allowed is US$1 000 or currency equivalent. Once the switch has been completed, there must be at least US$2 500 in the fund to remain active. In addition, if a new fund is selected the minimum investment amount is US$2 500.

To switch portfolios, complete a STANLIB Offshore Switch Form and submit to STANLIB. Make sure to complete the switch between class funds section.

Repurchases

Repurchase amounts are paid into any holder’s account via an Electronic Funds Transfer (EFT). STANLIB does not make third party payments.

To withdraw from an existing STANLIB Offshore Fund complete a STANLIB Offshore Repurchase Form and submit it to STANLIB.

An original redemption form is required unless you have opted for fax or an electronic indemnity.

STANLIB Banking Details

Please note: If funds are coming from a Standard Bank account, STANLIB will debit the investor’s account and subsequently transfer the funds offshore. However, should the funds be coming from any other financial institution, we require an original cheque (maximum amount to be transferred by cheque – R 500 000) addressed to STANLIB Fund Manager Jersery Limited. If the investment amount exceeds R500 000 (coming from any other financial institution), the investor will have to request his/her bank to facilitate the transfer of funds to the STANLIB Fund Managers Jersey Limited bank account.

CURRENCY ACCOUNT HOLDING BANK ACCOUNT NUMBER

Sterling (GBP) Bank of New York Mellon, London SWIFT: IRVTGB2X IBAN: GB53IRVT70022554756360

A/c name: STANLIB Subs and Reds Ac/no: 5475638260 Sort-Code: 70-02-25

US Dollars (USD) Bank of New York Mellon, New York SWIFT: IRVTUS3N ABA No: 021000018

A/c name: STANLIB Subs and Reds Ac/no: 8901158895

Euro (EUR) Bank of New York Mellon, Frankfurt SWIFT: IRVTDEFX IBAN: DE50503303007714069711

A/c name: STANLIB Subs and Reds Ac/no: 7714069711

Please ensure payments are remitted in the fund’s base currency.

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Frequently Asked Questions

Can I have a debit order on my offshore investment?

There is no recurring debit order option available for offshore funds, however, if you have a Standard Bank account we can do a once-off debit for lump sum instructions. Standing orders can be arranged, but this will need to be discussed with your bankers.

Can I add another holder to an existing portfolio?

Yes, you can. A portfolio may have a maximum of four account holders. Upon the death of any of the holders the investment will be transferred into the names of the surviving holders (upon receipt of the required documentation).

What are the requirements for adding/removing holders?

Adding holders Please supply the following:

Љ An original instruction signed by all existing holders instructing us to add the new holder Љ An original application form signed by all the holders, including the new holder Љ An original/certified ID bearing an original specimen signature of the additional holder Љ An original/certified proof of residence, e.g. utility bill (not older than three months) for the additional holder

Removing holders Please supply the following:

Љ An original instruction signed by all existing holders instructing the removal of a holder

What are the requirements for an estate of a deceased when an investment is valued at over and under £10 000 at the date of death?

In accordance with Jersey law, where a single holder of a portfolio dies, their estate will be subject to Jersey Grant of Probate.

This entails an administrative and legal process before the assets can be distributed to beneficiaries.

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What is Jersey Grant of Probate?

This is an official document which the executor needs in order to administer an estate. This is issued by the Jersey courts. Jersey law holds that upon the death of a single holder of an investment, the estate of the deceased will be subject to the Grant of Probate. This can be a lengthy process and costs are involved.

Holders of funds domiciled in Jersey valued at less than £10 000 are exempt from Jersey Grant of Probate.

If the investor’s total assets are £10 000 or more, and its a sole portfolio an application for Jersey Grant of Probate must be made by a Jersey solicitor or advocate.

What can you do to avoid Probate?

You can add additional holders to your portfolio. A maximum of four joint holders are allowed on any portfolio. When joint holders are added to a portfolio and any one of them passes away, the investment will continue in the names of the remaining joint holders to which they all have equal rights to the investment.

By adding joint holders to the investment, the investment ownership will pass to all surviving unit holders, giving each holder equal rights over the investment.

What authority do joint account holders have?

The application form has a joint investor signing authority box and if this is not ticked it indicates that all the holders have to sign any instructions. Should this however be ticked, any one of the holders can sign any instructions. Should the holders require specific signing authority (e.g. only Holder one and four can sign instructions), we require an instruction advising as such. This instruction must be signed by all the holders.

Does STANLIB accept funds from another investment house and can the proceeds of an investment be transferred to another investment house?

Yes, we do. This is a third party payment exception as STANLIB will only make third party payments when you are switching your investment from one management company to another. Confirmation from the management company will be necessary i.e. a copy of the application form.

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For transfers to another management company, we require a STANLIB Offshore Repurchase Form as well as a copy of the new Management Company application form and banking details.

For transfers from a third party into STANLIB, we require the same documentation as for a new business investment together with a copy of your repurchase form from the management company.

For repurchases, can the funds be paid out to the bank account of one of the additional holders or can it only be paid to the main holder’s account?

Proceeds from repurchases can be paid to any holder’s bank account provided it is in their name.

If an instruction is received after the Jersey 14h30 cut-off time, what dealing date will I receive?

If we receive an instruction before 14h30 Jersey time on a business day this will be regarded as Day one and you will get dealing prices on Day two as we operate on forward pricing. We will send a deal confirmation to your financial adviser on Day two. We will send a contract note to you on Day three. The contract note displays how many units were sold, the amount raised in payment currency, the exchange rate, the unit price and the settlement date.

You will receive your withdrawal amount on Day seven. The funds may take between 48 hours to reflect in your bank account depending on the jurisdiction of your bank account.

Should we receive the instruction after 14h30 Jersey time, the above process will begin the following business day.

Does STANLIB provide tax certificates for offshore?

No, STANLIB does not issue tax certificates to offshore investors. All income is retained by the fund and contributes to the increasing value of the fund, which in turn results in an increase in the value of the investment. Foreign dividends have become taxable in the hands of South African residents since 23 February 2000. Due to the specific structure of investments for the unit holders, the holders receive capitalisation units and not dividends. Therefore in terms of the current South African tax law, South African investors in STANLIB Offshore funds earn non-taxable income while they remain invested in the fund.

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What is Know Your Client (KYC) documentation?

These are the minimum documents that are required for individuals and entities.

For individuals A legible, valid, originally certified copy of passport or national identification document, showing a specimen signature and a photograph of each applicant The photograph must also be confirmed a true likeness to the applicant.

An original or originally certified document to verify the permanent residential address of each applicant, i.e. a recent bank statement or a recent utility bill (less than three months old).

For other entities (i.e. trusts, companies or nominees) Please contact STANLIB at wmoffshorequerysupport.stanlib@stanlib.com or call our Offshore Support Desk on 0860 123 003 (SA only) or +27 11 448 5000 (international).

Important Notices

All document needs to be submitted to:

Љ E-mail: instructions@stanlib.com Please note: When instructing by e-mail we will only accept instructions sent by account holder or by your financial adviser.

Љ Fax: +27 11 448 6651 (only if you have completed the Facsimile Authority/indemnity section in your original application form)

Љ Post: STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, 2076

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Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) was originally implemented by the US and is aimed at ensuring that US persons with financial assets outside the US are paying the correct amount of US tax. FATCA places obligations on Foreign Financial Institutions (FFIs) to identify and report annually certain information about US persons who own or control financial accounts maintained by the FFIs, ultimately to the IRS. In certain circumstances FFIs may be required to withhold on certain US source income and capital proceeds aid to their investors. More recently the UK has imposed a similar regime on the Crown Dependencies in respect of UK person. The Organisation for Economic Co-operation and Development has obtained assent from many nations to automatically exchange similar information on the tax residents of other assenting nation as under the Common Reporting Standard.

STANLIB Fund Managers Jersey Limited, on behalf of STANLIB Offshore Unit Trusts will be complying with these various tax-driven information exchange initiatives. Consequently, as an Investor, you must expect that the information about you will be reported via local tax controllers to tax authorities in the jurisdiction which have assented to comply with these initiatives, in which you are a tax resident.

Common Reporting Standard (CRS)

The Common Reporting Standard (CRS) requires financial institutions in participating jurisdictions to follow common due diligence procedures and to report specified financial information to their tax authorities, which is then automatically exchanged with other participating jurisdictions. EU member states will start exchanging information automatically for the first time by September 2017.

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Disclaimer and Statutory Disclosure

ZAR Portfolios The price of each unit of a domestic money market portfolio is aimed at a constant value. 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 instrument. 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 portfolio. Collective Investment Schemes in Securities (CIS) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. An investment in the participations of a CIS in securities is not the same as a deposit with a banking institution. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from STANLIB Collective Investments (RF) Limited (the Manager). Commission and incentives may be paid and if so, would be included in the overall costs. 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. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Liberty is a full member of the Association for Savings and Investments of South Africa. The Manager is a member of the Liberty Group of Companies.

Offshore Portfolios The Portfolios of the STANLIB Offshore Unit Trusts scheme are Feeder Fund Portfolios which only invest in the participatory interests of a single Portfolio of a collective investment scheme. In addition to the annual management charge, other fees are incurred by the trust (trustee, custodian and general expenses). There is no sales tax applicable in Jersey. Commission and incentives may be paid and if so, are included in the overall costs. A schedule of fees and charges and maximum commissions is available on request from STANLIB Fund Managers Jersey Limited, (“the Manager”). The portfolios of STANLIB Offshore Unit Trusts scheme are accumulation portfolios and do not distribute income. Please refer to the prospectus of this scheme for more details, a copy of which is available on request from STANLIB Collective Investments (RF) Limited, (“STANLIB”), the address of which is 17 Melrose Boulevard, Melrose Arch, 2196, South Africa. The reg-istered office of the Manager is Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, Channel Islands. The Trustee is Capita Trust Company (Jersey) Limited, 12 Castle Street, St. Helier, Jersey, Channel Islands. STANLIB Fund Managers Jersey Limited and Capita Trust Company (Jersey) Limited are regulated by the Jersey Financial Services Commission to conduct Funds Service Business. The Manager is a wholly owned subsidiary of STANLIB Asset Management Limited, whose registered office is 17 Melrose Boulevard, Melrose Arch, 2196, South Africa.

STANLIB Collective Investments (RF) Limited Reg. No. 1969/003468/06

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Diversify your wealth through different asset classes, companies, countries and regions.

17 Melrose Boulevard Melrose Arch 2196 PO Box 203 Melrose Arch 2076T 0860 123 003 (SA only) T +27 (0)11 448 6000 E contact@stanlib.com W stanlib.comGPS coordinates S 26.1347°, E 0686°