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FOUNDER MEMBER AND ASSOCIATE OF FINSOLNET

1 Finsolnet News Pg.2

2 Investment News 3

3 Project: switching of old retirement annuities to better portfolios

3

4 Economic Review and Graphs 3-7

5 Income Tax 8

6 Stainless Steel Containers 8

7 Division of Capital 9

8 Monthly Travel Program 9

9 General 10

10 Personnel News 11

11 Addenda 11-19

12 Staff and Contact details 20

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11..11 SSYYGGNNIIAA IINNVVEESSTTMMEENNTT RREETTUURRNNSS::

Sygnia continues to build on the excellent returns of their conservative, moderate and aggressive portfolios. Please refer to the latest report ending April 2014 - Addendum A. 11..22 PPRROOGGRREESSSS WWIITTHH TTRRAANNSSFFEERR FFRROOMM AAIIMMSS

TTOO SSYYGGNNIIAA AASS AADDMMIINNIISSTTRRAATTIIVVEE SSEERRVVIICCEE

PPRROOVVIIDDEERR

Please refer to our December 2013 Newsletter as well as the individual letters to clients explaining the process and costs involved.

We would like to thank everyone for the speedy and thorough reaction we received to these letters. Of the about 3,500 clients only 350 have not yet responded and we are currently contacting each of these clients personally.

A number of Option forms were returned without all the requested documents attached. The transfer process was therefore delayed, as we had to draw the individual files in order to make photocopies of the FICA documents required and/or to contact clients individually in this regard.

The process for transfer to the new administrative service provider takes place in the following 3 phases:

1) Optional Capital: (This would be available/liquid capital invested in portfolios either for capital growth and/or income purposes).

The transfer of these investments has very nearly been completed and you will be receiving confirmation documents directly from Sygnia. Their letter will also explain how to obtain direct internet access to your portfolio. Refer in this regard to point 9.1 (pg.10), where more information regarding access to Sygnia portfolios via the internet is discussed. 2) Retirement Annuities and Living Annuities: The process for these transfers has started and the administration of several retirement annuity investments has already been transferred to Sygnia. The transfer process of Living Annuities is as follows: a. You have already signed and returned the letter of

instruction and application form(s ) to us; b. We ensured that the forms were completed in full and

forwarded them to Sygnia; c. Sygnia forwarded the Article 37 Transfer forms to

AIMS;

d. The above process has now been completed and AIMS has sent the final option letter regarding the “outgoing” transfer to Sygnia to be signed.

e. Sygnia (or RSA Brokers) will be sending you (the client) the “incoming” transfer form as well as the AIMS “outgoing” transfer form for your final approval and signature, to be returned to us. The forms may be returned either by fax, email or ordinary post and your URGENT attention to this matter will once again be greatly appreciated.

3) AIMS investments in 5 year policies (Life Series): These investments are selected specifically for growth and/or tax-free income. In view of the important tax benefit already vested in these investments we shall, at a later stage, make individual evaluations to determine whether this capital should be retained or whether it would be better to reinvest. Further advantages are: a. Where a beneficiary has been appointed, no

Executor’s fees are applicable, with the result that up to 3.9% of fund value may be saved in fees.

b. Capital Gains Tax is limited to 10% instead of the normal 13.3% of net profit;

c. After maturity a tax-free income may be withdrawn from these investments. Internal tax on the interest and capital components may easily be limited or avoided through specific portfolio structuring.

11..33 MMOONNTTHHLLYY IINNCCOOMMEE PPAAYYMMEENNTTSS FFRROOMM

OOPPTTIIOONNAALL CCAAPPIITTAALL::

As a result of the administrative transfer process to Sygnia, it unfortunately happened that the income payment of a few clients was late. On behalf of Sygnia we apologise sincerely for the inconvenience caused. Sygnia has assured us that similar

problems will not occur with the transfer of administration on Living Annuities. N.B. Monthly income payments from AIMS were done around the 25th of each month, whereas the monthly payments from Sygnia will take place around the 27th of each month.

11..44 CCOOSSTT AADDVVAANNTTAAGGEE OOFF MMOOVVIINNGG TTHHEE

AADDMMIINNIISSTTRRAATTIIVVEE SSEERRVVIICCEE PPRROOVVIIDDEERR

FFUUNNCCTTIIOONN FFRROOMM AAIIMMSS TTOO SSYYGGNNIIAA

We kindly request that you revisit our December 2013 newsletter to reconfirm the advantages set out on page 4.

11)) FFIINNSSOOLLNNEETT NNEEWWSS

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11..55 AADDMMIINNIISSTTRRAATTIIVVEE PPRROOCCEESSSS::

AAIIMMSS AAddmmiinniissttrraattiioonn

vveerrssuuss

SSyyggnniiaa AAddmmiinniissttrraattiioonn

The process is exactly the same as with AIMS, i.e. Sygnia will in future:

- Supply you with quarterly statements, either by email or direct mail, as you prefer;

- Provide the annual Tax Certificates; - Pay the income to client(s) where applicable; - Arrange internet access to your own portfolios by means

of your private authorisation code;

11..66 SSYYGGNNIIAA AADDMMIINNIISSTTRRAATTIIVVEE SSEERRVVIICCEE

PPRROOVVIIDDEERR CCOOSSTT CCOOMMPPAARRIISSOONN

Please refer to Addendum B – Page 13 where a cost comparison between Sygnia and other Companies is reflected for your attention. 11..77 SSYYGGNNIIAA FFUUNNDD PPEERRFFOORRMMAANNCCEE

CCOOMMPPAARRIISSOONN

Please refer to Addendum C - Page 13 for an updated table comparing the returns between Sygnia’s various portfolios/ strategies.

22..11 LLIIBBEERRTTYY LLIIFFEE PPOORRTTFFOOLLIIOO

We have been investing in Liberty Life funds for the past 15 years, mainly in their vesting Property portfolio and Multi-Managed Conser-vative Funds. The first 12 years delivered excellent returns. However, for the last couple of years their returns cannot be compared to Sygnia’s portfolio returns. Peter-John and Japie are currently calling on individual clients who are withdrawing an income from their Liberty investments, to consider alternative investment propo-sals.

Where capital growth is a priority, particularly in Trusts, each case is being dealt with individually and we are trying to switch to alternative internal Liberty Life portfolios. If you are withdrawing an income from your Liberty Life investment and have not yet been contacted by Maria de Jongh for an appointment, you should contact her to find out where you are on her scheduled appointment list.

22..22 OOLLDD MMUUTTUUAALL-- XXTTRRAA--MMAAXX IINNVVEESSTTMMEENNTT

This Old Mutual investment has made a more aggressive portfolio option available. Please refer to our December 2013 Newsletter where this investment is discussed in full, as well as to the attached Brochure Addendum D pg. 14.

As confirmed in the December 2013 Newsletter, Peter-John and Japie are currently consulting with individual clients to discuss the amendment and/or reinvestment of the capital into alternative, more cost effective portfolios, providing better returns. This project is progressing well.

44..11 MMAARRKKEETT RREEVVIIEEWW::

The forecast for South Africa’s Economic returns for 2015 has been adjusted downwards to ±2% per annum, which does not indicate much good for the serious problem of job creation.

Government is becoming increasingly involved in the economy and although this could be positive, it also has a negative effect with increased corruption in, for example, the awarding of Government contracts and the abnormally high rental that Government Departments are paying for office space controlled by Black Empowerment Companies.

44)) EECCOONNOOMMIICC RREEVVIIEEWW AANNDD GGRRAAPPHHSS

22)) IINNVVEESSTTMMEENNTT NNEEWWSS

33)) PPRROOJJEECCTT:: SSWWIITTCCHHIINNGG OOFF OOLLDD RREETTIIRREEMMEENNTT AANNNNUUIITTIIEESS TTOO BBEETTTTEERR PPOORRTTFFOOLLIIOOSS

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GRAPH 1 - COMMENTS: All sectors of the economy reflected good returns, with the exception of Bonds, which

reflected serious negative movement.

The economy of the USA and parts of Europe show definite signs of recovery, particularly noticeable in the increased price of housing. The Chinese economy should grow at about 7.5% per annum again. This represents an excellent growth percentage in spite of the slight levelling out compared to previous years. However, this has very good prospects for the export of our mineral resources, with China being the world’s largest consumer of mineral resources. 44..22 IINNTTEERREESSTT RRAATTEE RREEVVIIEEWW::

The Reserve Bank has decided to leave the repo-rate unchanged, which is contrary to the expectation of many Economists.

Increased interest rates are an important instrument in controlling rising inflation and also in making Government Bonds more attractive for offshore investors. The disadvantage of increased interest rates, however, is the stifling effect it has on the economy, resulting in in-creased costs that are, in time, simply passed on to the con-sumer once again.

Various graphs in this regard are discussed under our next point 4.3.

44..33 GGRRAAPPHHSS

We recently attended the 2 day Finsolnet Associates Annual General Meeting held at Zevenwacht and were addressed by the following guest speakers: Willem van der Merwe and Justine Wyatt from Sygnia; Michael Power; Prof. Mathew Lester; Charl Gouws. We have extracted the following graphs from the presentation of Mr Willem van der Merwe, which we feel will provide our clients with valuable insights:

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GRAPH 2 - COMMENTS: The serious outflow of offshore investor capital from Government Bonds is clearly reflected in this graph. This is one of the main reasons for the devaluation of the Rand against other currencies. The decrease in liquidity announced in world markets also has a negative effect on this tendency. This is one of the reasons why the returns on Bonds decreased and will remain low for quite a while. This investment option is,

therefore, much less attractive and is generally avoided by our Fund Managers.

GRAPH 3 - COMMENTS: The prospect of gold again becoming a valuable investment instrument in the near future seems quite unlikely.

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GRAPHS 5-7 - COMMENTS: The following three graphs clearly indicate the performance of the individual conservative, moderate and aggressive portfolios in relation to their immediate competition and/or similar portfolio combinations in their individual groups. Without exception all 3 of Sygnia’s Finsolnet portfolios performed exceedingly well and we are grateful to Sygnia and their 10 portfolio Managers for the excellent results. It is clear that their strategies work well.

Conservative: CPI + 2%

GRAPH 4 - COMMENTS: Problem sectors of the economy are reflected here and should be treated with great caution.

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Aggressive: CPI + 6%

Moderate: CPI + 4%

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55..11 IINNCCOOMMEE TTAAXX AAMMEENNDDMMEENNTTSS

The following amendments to income tax legislation have been announced for the 2015 Tax Year. a) As from 1 March 2014 the maximum tax-free amount

that may be withdrawn from retirement annuities / pension funds will be increased from R315,000 to R500,000. This is excellent news, especially for clients for whom we are “rolling over” their retirement annuities. This increase enables us to claim more contributions with existing annuities over a longer period resulting in large income tax savings.

b) As from 1 March 2015 the current formula to calculate the maximum, tax-deductible retirement annuity contributions from non-pensionable taxable income, will be increased from

15% to 27.5% per annum.

This offers the opportunity to invest more capital in retirement annuities and also increases the amount of capital we can “roll-over” for subsequent tax savings.

c) As from 1 March 2015 the amount that may be commuted from smaller retirement annuities will increase from the current R75,000 to R150,000 cumulatively per company. This is very good news for the “roll-over” process to save income tax, as we will then be able to invest and/or roll over larger amounts per company.

55..22 MMAAXXIIMMUUMM RREETTIIRREEMMEENNTT AANNNNUUIITTYY

CCOONNTTRRIIBBUUTTIIOONNSS FFOORR 22001155 TTAAXX YYEEAARR

Our annual letters to individual clients reminding them to maximise their retirement annuity contributions and/or to “roll-over” existing annuities will be mailed in August. You are kindly requested to approve, sign and return the forms to us as soon as possible as we experience problems in

dealing with huge volumes of these requests in February. We wish to confirm that we will not accept responsibility for any documents received AFTER

31 January 2015, as this may lead to late processing, resulting in the loss of income tax saving for the current tax year. The individual Insurance Companies also experience this pressure during February. We would, therefore, appreciate the co-operation of all our clients in this regard.

“Work Overload”

66..11 MMUULLTTIISSTTAARR

As discussed in our December 2013 Newsletter, we are still awaiting confirmation from the Attorney, Sonnenbergs, regarding an estimate of the individual expenditure to become part of the court case against Multistar to be heard in England. It has come to our attention that Multistar unexpectedly released a number of containers. Clients were informed by letter but, before they could actually make a decision, a capital amount was paid into their bank accounts. Should this happen to you, we request that you send a copy of the letter in question to us as soon as possible and at the same time direct a letter to Multistar confirming that the receipt of this capital amount does not stop you from:

a) becoming part of the legal process to claim maintenance fees not utilised for your containers in the past, and b) that it also does not prevent you from claiming for future loss of income as a result of the payment of the container value without you having been given the opportunity to exercise a choice in this regard. 66..22 IINNTTEERRNNAATTIIOONNAALL TTAANNKK CCOONNTTAAIINNEERRSS

The proceeds from International Tank Containers remain excellent and prove that this is a well managed company. Our thanks and appreciation go to ITC Management.

55)) IINNCCOOMMEE TTAAXX

66)) SSTTAAIINNLLEESSSS SSTTEEEELL CCOONNTTAAIINNEERRSS

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We repeat and confirm our recommendations in previous Newsletters that each individual should not have more than R30,000 in a money market bank account for emergencies. The poor interest rates on these Bank investments persist. It is a more profitable option to invest such capital in the conservative strategy with Sygnia for liquidity and capital growth. The Sygnia Bank Account Number, into which such investment capital could be transferred, is confirmed again. We kindly request that, as soon as you have transferred capital to this account, you supply us with the proof of payment/transfer per fax or email. The capital will then be allocated to your portfolio.

SSYYGGNNIIAA BBAANNKK DDEETTAAIILLSS ((ffoorr UUnniitt TTrruussttss))::

Account Name : Sygnia Financial Services Inflow Bank : Nedbank Branch Code : 198765 Account Number : 1032604158 Reference : Initials and Surname

88..11 TTRRAAVVEELL RROOUUTTEE

We repeat our monthly travel program. Should you encounter particular circumstances requiring discus-sion outside of our normal scheduled visit to you, you are welcome to arrange an appoint-ment with Maria de Jongh or Eileen van Zyl. However, please note that if your financial situation has changed to such an extent that revised planning is required, it is important that you supply us with the relevant detailed information to prepare, change and/or update your analysis. EASTERN CAPE - This area is visited during the second week of the month. We begin in George, travel via Jeffrey’s Bay to Port Elizabeth, from where we fly to East London and return to Cape Town. JOHANNESBURG / POTCHEFSTROOM / PRETORIA This area is visited during the last week of the month. CAPE TOWN AND SURROUNDINGS –During the 1st en 3rd weeks of the month clients are seen in these areas.

88..22 VVEENNUUEE AADDDDRREESSSSEESS:: We would like to emphasise that if any client has a problem seeing us at a particular venue, we would appreciate if you would contact the office and arrange an appointment at your residence.

JOHANNESBURG: Regus House, Block A, Wedgefield Office Park 17 Muswell Road South

Bryanston POTCHEFSTROOM: 2nd Floor, Oktron Building 62 James Moroka Avenue

PRETORIA: Renwick House, 878 Rubenstein Avenue Moreleta Park GEORGE: Office Reliance 123 Mitchell Street George JEFFREYSBAAI: “Supertubes” 12 Pepper Street Jeffrey’s Bay PORT ELIZABETH: Regus House, Fairview Office Park, Ring Street Greenacres EAST LONDEN: Second Office 6 Donald Street Vincent

77)) DDIIVVIISSIIOONN OOFF CCAAPPIITTAALL

88)) MMOONNTTHHLLYY TTRRAAVVEELL PPRROOGGRRAAMM

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99..11 IINNTTEERRNNEETT AACCCCEESSSS TTOO YYOOUURR SSYYGGNNIIAA

PPOORRTTFFOOLLIIOO

As soon as Sygnia’s Welcome letter has been received, either regarding the transfer of Administration from AIMS or for a new investment, you will receive a personal authorisation code from Sygnia that will facilitate access to your portfolio via the internet. Please note that, in order to obtain access to the Sygnia website, you may need to upgrade your internet system to

at least Windows Explorer 9 or Google Chrome. These upgrades can be done free of charge from the internet.

99..22 WWHHAATT IISS TTHHEE DDIIFFFFEERREENNCCEE BBEETTWWEEEENN AANN

AADDMMIINNIISSTTRRAATTIIVVEE ““PPLLAATTFFOORRMM”” AANNDD AANN

AADDMMIINNIISSTTRRAATTIIVVEE ““CCOOMMPPAANNYY””??

We normally speak of an administrative company or service provider such as AIMS and Sygnia that deals with unit trust portfolios. This simply implies that these companies perform the administrative duties/services as explained in point 1.5 on page 3.

We also speak of an Administrative “platform” and confirm herewith that there is, in actual fact, no difference between the function of an administrative company and an administrative platform. They are in fact exactly the same.

The word “platform” implies that large selections of portfolios from a variety of companies are dealt with through one administrative service provider company. Investors do not, for example, have to go to 5 separate companies in order to invest in each company’s individual unit trust portfolios.

99..33 EEXXPPLLAANNAATTIIOONN OOFF TTHHEE FFLLOOWW OOFF

IINNVVEESSTTMMEENNTT CCAAPPIITTAALL AANNDD MMAANNAAGGEEMMEENNTT OOFF

FFUUNNDDSS::

We attach the explanation that was also included in our December 2013 newsletter - ADDENDUM E - Page 16 – with the request that you study this again. Please note that, although Sygnia is primarily responsible for the Management of all portfolios, they do this by allocating the investment capital between 10 individual companies that are strictly monitored by Sygnia. There is, therefore, no question of all eggs being invested in one basket.

99..44 PPRROOCCEEDDUURREE//DDOOCCUUMMEENNTTSS AATT DDEEAATTHH

Various clients have requested that we repeat the articles from previous newsletters regarding the procedure and documents required at death. We have pleasure in attaching them under Addendum F - Pg 17-19. 99..44 CCAAMMBBIISSTT IINNVVEESSTTMMEENNTT @@ 1199..55%%

We have investigated this investment option and are of the opinion that our clients should avoid investing in this, at all costs. An article in Sunday Times, Business News, of 01/06/2014 confirms this opinion. 99..55 IINNTTEERREESSTTIINNGG FFAACCTT::

Please find an extract from a recent Afrikaans newspaper article which we thought would be of interest to clients:

WHAT DOES SO MUCH MONEY LOOK LIKE?

99)) GGEENNEERRAALL

100x$100.00 =$10,000

100x$10,000 = $1 million

= $100 million

= $1 Billion

= $1 Trillion (NB: double layer)

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23h30 12 December 2013 We are very tired but glad the task is done, so far.

1100)) RRSSAA BBRROOKKEERRSS –– SSTTAAFFFF NNEEWWSS

The first phase of the project to transfer RSA Brokers investment book from AIMS’ administration to Sygnia’s administration (sending out the letters with the application forms to individual clients) took place during November/December 2013 and required lots of hard work after normal working hours. On Thursday night, 12th December 2013 at 23h30 (almost midnight) we finished labelling, filling and packing the last envelope. The following morning, Peter-John’s Prado was filled to the brim and the boxes were delivered to a very surprised Post Master. It was teamwork and also required sacrifices from our families at home, as evening meals during those weeks were

rather slap-dash

CORRECTION: In our previous Newsletter we congratulated Magda’s Daughter, Anzette on her BA

degree. However, the spell checker had a blond moment and changed UNISA to Unisex. We apologise

sincerely to Anzette for not picking up this error before printing.

Peter-John and Lynnette Smitsdorff will be overseas on leave for 3 weeks during June. We wish them a wonder-ful journey and a safe return, with

many new memories to share.

Peter-John ran the 2 Oceans and the SAD half marathons again this year and we have heard rumblings of possibly

another Comrades in 2015.

Eileen travelled to the USA during May together with her husband, Deon, and, amongst other things, visited the “Big Apple” and Washington. She is back in her post and working full steam

to catch up again.

We have just heard that Stiaan van

Zyl, son of our newest staff member,

Denise, and specialist Batsman for the

Cape Cobra’s, has been selected for

the Protea Cricket team to play in Sri

Lanka during July 2014. WELL DONE

AND GOOD LUCK.

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AADDDDEENNDDUUMM AA -- FFIINNSSOOLLNNEETT FFUUNNDD FFAACCTT SSHHEEEETT

1111)) AADDDDEENNDDAA

Conserv

ative

Modera

te

Aggre

ssiv

e

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AADDDDEENNDDUUMM BB:: SSYYGGNNIIAA MMAANNAAGGEEMMEENNTT CCOOSSTT CCOOMMPPAARRIISSOONN

Investment Value

SYGNIA AIMS

Endowment Other

OLD MUTUAL WEALTH

ALLAN GRAY

GLACIER INVESTEC MOMENTUM

R 500,000 R 1 425 R 2 280 R1 995 R 2 565 R 2 280 R 2 250 R 2 280 R 2 280

R 1,000,000 R 2 850 R 5 700 R3 990 R 5 730 R 4 560 R 5 700 R 4 560 R 4 560

R 2,000,000 R 5 700 R 9 200 R6 840 R10 260 R 7 980 R 8 693 R 7 410 R 8 265

R 4,000,000 R 7 980 R16 000 R9 120 R13 680 R12 540 R14 939 R13 110 R13 965

R 5,000,000 R 9 120 R20 000 R11 300 R15 390 R14 820 R17 243 R15 960 R16 815

R 6,000,000 R10 260 R20 400 R13 680 R17 100 R17 100 R19 523 R18 810 R19 665

R15,000,000 R20 520 R51 000 R34 200 R32 490 R37 620 R40 043 R44 460 R45 315

AADDDDEENNDDUUMM CC:: PPEERRFFOORRMMAANNCCEE CCOOMMPPAARRIISSOONN ooff SSyyggnniiaa’’ss AAlltteerrnnaattiivvee IInnvveessttmmeennttss MANAGED FUNDS

(CONSERVATIVE) INDEX FUNDS

(CONSERVATIVE MANAGED FUNDS

(MODERATE) INDEX FUNDS (MODERATE)

SIGNATURE 40 SKELETON 40 SIGNATURE 50 SKELETON 50

1 Month 0.64% 0.93% 0.91% 0.91%

3 Months 2.79% 3.65% 3.40% 4.12%

6 Months 5.44% 5.50% 5.89% 5.85%

1 Year 15.40% 14.06% 17.91% 16.01%

3 Year 14.26% 14.35% 15.56% 15.56%

5 Year 14.08% 14.82% 15.79% 16.47%

MANAGED FUNDS (MODERATE)

INDEX FUNDS (MODERATE)

MANAGED FUNDS (AGGRESSIVE)

INDEX FUNDS (AGGRESSIVE)

SIGNATURE 60 SKELETON 60 SIGNATURE 70 SKELETON 70

1 Month 0.93% 1.07% 1.13% 1.26%

3 Months 3.76% 4.83% 4.40% 5.29%

6 Months 6.30% 6.55% 6.92% 6.93%

1 Year 20.04% 18.95% 23.42% 22.40%

3 Year 16.83% 17.21% 17.56% 18.44%

5 Year 17.75% 18.10% 18.85% 19.60%

COST PER CLIENT PER ANNUM

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AADDDDEENNDDUUMM DD:: OOLLDD MMUUTTUUAALL XXTTRRAA--MMAAXX

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AADDDDEENNDDUUMM EE––IINNVVEESSTTMMEENNTT PPRROOCCEEDDUURREE TTOO IINNVVEESSTT CCAAPPIITTAALL TTHHRROOUUGGHH AANN

AADDMMIINNIISSTTRRAATTIIVVEE PPLLAATTFFOORRMM

FINSOLNET INVESTMENT PROCEDURE VIA SYGNIA ADMIN. PLATFORM THE FLOW OF NEW CAPITAL

1. Sygia is the official Fund Manager. a. From investment research done by Sygnia decisions are made how the individual portfolios are divided between the various

investment categories. b. Sygnia appoints the individual Management Companies to deal with the funds. c. Sygnia communicates this investment process through the Finsolnet Investment Committee. d. The Investment Committee reports to the Finsolnet Directors.

2. Benefits of this process: a. As a result of the cumulative capital under Sygnia management, they are in a position to negotiate competitive institutional

management rates on our behalf. b. As a result of the larger volumes of capital under management on the platform, administrative fees are substantially reduced. c. The interactive Management processes applied by Sygnia allow for speedy adjustments or amendments to investment

combinations according to market circumstances

The Administrative Platform divides the investment capital between the strategies in the Finsolnet Sygnia Funds

according to the client’s risk profile and the Financial Planner’s advice

Client pays the investment capital into the bank

account of the relevant Administration platform

by direct bank transfer. Receipts to be supplied

to Financial Planner

Client

Administrative Platform

Available Platforms

Sygnia AIMS

Glacier (Sanlam) Investec

Allan Gray Momentum

CONSERVATIVE MODERATE AGGRESSIVE

SYGNIA Umbrella Fund Manager

SYGNIA Umbrella Fund Manager

Individual building blocks of the portfolios

Cash Bonds Property Equities

Individual Fund Managers appointed by Sygnia

Allan Gray; Cadiz; Coronation; Foord; Investec; Kagiso; Mazi; Prudential; Stanlib; 36ONE

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AADDDDEENNDDUUMM FF -- PPRROOCCEEDDUURREE//DDOOCCUUMMEENNTTSS AATT DDEEAATTHH

DDooccuummeennttss eeaacchh iinnddiivviidduuaall sshhoouulldd hhaavvee aavvaaiillaabbllee iinn tthhee eevveenntt ooff DDeeaatthh

Step 1: The following persons need to be informed of the Death: The family doctor, if the death occurred at home; The police, if the death was as a result of unnatural causes; The deceased’s Broker must be informed who, in turn, will contact the Executor of the Estate; The deceased’s church minister; The employer and/or pension fund; The local undertaker must be approached to make arrangements for the funeral. Step 2: The following documents and information are required to deal with the Estate: Original and certified copies of Death Certificate The original Will Identity Document (deceased, spouse and children) Marriage Certificate/contract Deeds of Transfer and related documents Policies (life and short term) Banking account details Savings account numbers Medical Aid details Investment Certificates Share certificates Any other documents relating to assets/investments Motor Vehicle Registration Certificates Outstanding accounts Hire-purchase agreements Bank loans Income-tax and Auditor’s details Any other documents relating to liabilities/debts Employer and/or pension fund details We would like to stress the importance of informing the deceased’s Broker, in our clients’ case that would be RSA Brokers, of the death. The surviving spouse, or guardian of minor children, may arrange an interim income with the Executor.

Remember, NO decisions should be made without first consulting the Executor. A straightforward Estate should not take longer than +-6-9 months to finalise. The winding up of an estate could be delayed or complicated by matters such as complex company structures or property transactions, complicated inheritance requests, etc. Please note that the Executor will only be remunerated after the estate has been wound up, so it is also in his interest to finalise the process as soon as possible. We strongly recommend that the Executor’s fees should always be negotiated and reflected in the Will so that there can be no doubt or dispute regarding this fee. If you wish to be cremated, this should also be stated in the Will.

LLiivviinngg WWiillll Please note that it is important to also pay attention to a so-called Living Will.

OOrrggaann ddoonnoorr If you would like to consider being an organ donor you would need to register as soon as possible and inform your next of kin. For more information and/or registration please contact The Organ Donor Foundation on their website at: www.odf.org.za or you can contact them by telephone on: Cape Town 021-4260198; Johannesburg 082-7101156.

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PPrroocceedduurree bbyy tthhee FFiinnaanncciiaall PPllaannnneerr ((FF..PP..))::

1. As soon as the surviving relatives (spouse, children or family) inform the F.P. of a death, the summary of Investments and Insurance of the deceased is immediately updated with the latest values and is handed to the heirs. An appointment is made with the surviving spouse and/or heirs.

2. A copy of the Will and Death Certificate must be handed to the F.P. as well as copies of the following FICA documents:

ID document;

proof of income tax reference number;

proof of bank account

proof of address (e.g. with a Municipal account)

(the latter 2 documents may not be older than 3 months).

3. The F.P. obtains the required claims documents from the relevant Insurers and Investment companies and prepares them. In cases where a beneficiary has been appointed, the beneficiaries must sign the documents for the claim to be activated.

4. The completed claim documents, death certificate and FICA documents are urgently forwarded to the relevant companies by the F.P. to process the claim(s) and pay the capital directly to the beneficiaries.

5. A copy of the Letter of Appointment of the Executor must also be handed to the F.P. who, in turn, will provide the investment companies with a copy.

6. Please note that, where a beneficiary has been appointed, investments are not subject to Executor’s Fees, but are still deemed to be an asset in the Estate for Estate Duty purposes. Retirement annuities, pension funds, living annuities and preservation funds are not subject to Executors Fees or Estate Duty.

7. New financial information of the

heirs/relatives will be obtained during the discussion with the F.P. and, depending on the client’s new budget/ income requirements, a financial analysis will be prepared.

8. Provision will be made should there be capital expense requirements.

9. Recommendations will be made for re-investment of capital and, where necessary, the application forms for the transfer of e.g. annuities or living annuities will be provided for signature.

10. The options available for the application of individual investments, annuities and/or pension funds will also be fully discussed and the applicable written recommendations to meet identified requirements executed.

11. The F.P. will provide the Summary of Insurance, as mentioned in point 1 above, to the Executor in order to facilitate his work and also to speed up the process. It is crucial that there should be a good working relationship between the Executor and the Financial Planner in order to finalise the Estate cost effectively and as quickly as possible.

12. The F.P. checks the final Distribution Account of the Executor on completion of the Estate.

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PPrroocceedduurree bbyy tthhee EExxeeccuuttoorr:: 1) The Executor must also be informed by the

relatives/F.P. of the death as soon as possible.

2) The Executor then proceeds with the following:

Arranges an appointment with the spouse/heirs, during which the documents as discussed in Step No 2 (Pg. 14) of our December 2011 Newsletter are required and will be completed.

Applies to the Office of the Master for confirmation of appointment as the Executor of the Estate;

Compiles a register of all assets and liabilities of the deceased;

Arranges the transfer of all liquid capital, e.g. in Bank accounts, to a Trust Account with the Executor;

Arranges the required advertisements in the local Newspapers.

3) On receipt of the Letter of Appointment the Executor proceeds to inform all relevant investments and/or insurance companies of the death and obtains detailed information thereof.

4) Claims: The Executor deals with all claims e.g. medical, etc, unless a beneficiary has been appointed.

5) Transfers: The Executor arranges the transfer to the heir(s) and/or the sale of fixed assets (e.g. property) and moveable assets (e.g. a motor car) according to the terms of the Will and depending on the circumstances as agreed with the heirs It is very important that the heir(s) communicate in GOOD TIME with the Executor regarding for example NOT selling shares and/or unit trusts, but rather to specifically have them transferred to the heirs.

6) After dealing with possible claims, a preliminary distribution account is prepared. This is a summary of all assets and liabilities and is discussed with the heirs.

7) As soon as the Estate is finalised a final distribution account is submitted to the Office of the Master for approval.

8) On receipt of approval of the final distribution account the Executor proceeds with the transfer of liquid assets/capital in the Estate to the heirs. The transfer and/or sale of fixed assets (property) should at that stage have been finalised according to the requirements of the heirs.

9) The Executor then receives payment and the Estate is concluded.

GGeenneerraall

1) Please note that all available documents of the deceased must be handed over to the Executor in order that they may decide, according to their discretion, whether it needs to be investigated or not. Clients should under no circumstances decide which matter should or should not be handed to the Executor.

2) It is extremely difficult to re-open an estate account with the Office of the Master should it be found, after completion, that there are further assets or investments.

3) Please note that, if the deceased was a beneficiary in terms of e.g. an existing Trust, it is essential that the Executor is informed accordingly.

4) If you are aware that the deceased had usufruct provisions in terms of a previous Will, this information must also be handed over to the Executor.

5) Where the assets in an estate are less than R125,000, a so-called Article 18(3) is

applied. This is simply a summary of the Assets and Liabilities that is presented to the Office of the Master and a tariff of 3.9% of the value of the Estate is payable. No further formalities are required.

6) It is important to ensure that the Executor’s fees are negotiated with the Executor and are predetermined in your Will. Alternatively the fees must be negotiated immediately on reporting the estate. The maximum Executors Fee is 3.5% of Nett Estate value + VAT = 3.9% total.

7) Master’s fees are in the order of R1,500 per estate.

8) Funeral expenses should be redeemed from the Estate in order to reduce the nett asset value, thereby saving Executors Fees.

9) A new Will should be drawn up as soon as possible, should the existing Will no longer prove to be viable. The Financial Planner or the Executor can arrange this.

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Peter-John Smitsdorff peterjon@rsabrokers.co.za Derick Payne derick@rsabrokers.co.za Japie Louw japie@rsabrokers.co.za 112 Maria de Jongh (Personal Assistant) maria@rsabrokers.co.za 101 Ingrid Singels (Financial Analysis) ingrid@rsabrokers.co.za 108 Colleen Knoetze (Reception/Dictaphone) colleen@rsabrokers.co.za 100

AAddmmiinniissttrraattiivvee AAssssiissttaannttss // CClliieenntt SSeerrvviicceess:: Magda Matthee (A-C ) magda@rsabrokers.co.za 111 Denise van Zyl (D-H) denise@rsabrokers.co.za 115 Michelle Hüsselmann (I-M) michelle@rsabrokers.co.za 109 Heidi Fontini (N-S) heidi@rsabrokers.co.za 107 Linda Marais (T-Z) linda@rsabrokers.co.za 110 Eileen Van Zyl (Portfolio: D Payne) eileen@rsabrokers.co.za 113

Insurance House 126 Edward Street BELLVILLE 7530

GPS: S 33º52.707’ E018º38.171’

E-mail: peterjon@rsabrokers.co.za Website : www.rsabrokers.co.za www.finsolnet.co.za Tel: 021- 9196916

Fax: 021- 9199718

P.O.Box 3547

TYGER VALLEY 7536

FSB CODE:

11108

FRONT from left to right: Ingrid Singels; Japie Louw; Eileen van Zyl; Heidi Fontini; BACK from left to right: Colleen Knoetze; Linda Marais; Magda Matthee; Maria de Jongh; Michelle

Hüsselmann; Denise van Zyl en Peter-John Smitsdorff

INSET PHOTOS: TOP: Derick Payne MIDDLE: Pam Coetzee BOTTOM: Sarah Pieterse(tea lady)