AF Access Trustee Report

Retirement

AF Access Retirement Funds Annual Trustee Report 2023

alexforbes.com

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Contents 1.

About the AF Access Retirement Funds

2.

Who manages your fund?

3

Fund, industry and legal updates

4

Member impact – communication and Alexforbes Rewards

5

The fund’s investments

6

The administration of the fund

7

Death benefits

8

The fund’s contact details

9

Complaints

Annual trustee report

2

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

About the AF Access Retirement Funds The fund is an umbrella fund consisting of:

the AF Access Retirement Fund (Pension Section), and

the AF Access Retirement Fund (Provident Section).

An umbrella fund is a retirement fund set up by a specialist financial services company, which a number of different employers choose to join.

The objective of the fund is to help you save for your retirement and to help your family financially if you were to pass away.

You are a member of the fund because your employer has decided to contribute to this fund to assist and support you in saving for your retirement.

Every year the trustees take the opportunity to update you with fund information.

Who manages your fund?

The board of trustees The funds are both separate legal entities managed by a professional board of trustees.

The board is accountable and responsible for directing, controlling and overseeing the business of the fund.

External trustee Name

Appointment date

Re-appointment date

Expiry of term of office

Jürgen Fegbeutel

01-Sep-15

01-Sep-20

31-Aug-25

Herbert Hurd

01-Jul-19

-

30-Jun-24

Lavinia Khangala

01-May-13

01-May-23

30-Apr-28

Internal trustees Name

Appointment date

Re-appointment date

Expiry of term of office

Nazreen Fakir

01-Oct-22

-

30-Sep-27

Leroy Munetsi

01-May-19

-

30-Apr-24

Michael Prinsloo

01-Mar-18

01-Mar-23

28-Feb-28

Annual trustee report

3

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

Board of trustees The AF Access Retirement Fund is managed by a board of six trustees. The board is made up of:

• •

Three external (independent) trustees appointed by the board Three internal trustees appointed by the sponsor (Alexander Forbes Financial Services (Pty) Ltd. Collectively, the trustees have over 100 years of industry experience. They apply their experience to the governance and management of the fund to make sure it meets all its financial and legal commitments. Each trustee has an area of expertise to add value to the management of the fund. During the year under review the trustees were:

Internal trustee

Internal trustee

Internal trustee

Independent trustee

Independent trustee

Independent trustee

Independent principal officer

Michael Prinsloo

Leroy Munetsi

Nazreen Fakir

Lavinia Khangala

Jurgen Fegbeutel

Sakkie Hurd

Nomonde Zwane

B Com, CFP

BBA, GDE, MBA

CA (SA)

B Proc, LLB, LLM CFP

LLD, LLB, MA (Hons)

B.Mil Sc

B Com, MBA, MPhil

Over 20 years industry experience

Over 17 years industry experience

Over 11 years experience

Over 16 years industry experience

Over 38 years industry experience

Over 21 years industry experience

Over 14 years industry experience

Change in the board Mr Leroy Munetsi resigned effective 31 December 2023 and has been succeeded as an internal trustee by Ms Alvina Chetty.

Alvina is a senior legal adviser at Alexforbes. She has been with the company for over 11 years. Her skills include drafting rules, management, employee benefit design, legal research and advice, contracts and pension funds. Alvina has a strong legal background with a Bachelor of Laws (LLB) from the University of KwaZulu-Natal, focused on corporate.

Annual trustee report

4

About the AF Access Retirement Funds

Who manages your fund?

The trustees’ duties include:

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Act with care, diligence and in good faith

Death benefits

The fund’s contact details

Avoid conflicts of interest

3

4

5

6

2

Take all reasonable steps to make sure your interests are always protected

1 Manage the fund according to the rules of the fund, as well as pension fund and tax laws

The trustees believe that the Treating Customers Fairly principles are aligned with the fulfilment of their fiduciary duties.

Make sure proper management control systems are in place

9

Make sure the operation and administration of the fund comply with all relevant laws

8

Get expert advice where they lack expertise

Act with fairness towards you and your family members

7

Make sure you get appropriate and adequate communication

Specialist appointments supporting the board Independent principal officer - Nomonde Zwane

Monitoring person - Wendy Wessels

Appointed by the trustees to manage the day-to-day affairs of the fund:

Appointed by the trustees to monitor the receipt of contributions by the fund and to report to the board on any breaches by employers:

N Zwane (appointed 1 March 2021)

Annual trustee report

W Wessels (appointed April 2021)

5

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Fund governance The fund is governed by the board of trustees and further, there are five sub-committees in place, namely: Investment sub-committee:

Benefits sub-committee:

The purpose of this committee is to review the investment strategy of the fund in collaboration with the fund’s asset consultant.

The purpose of this committee is to allocate death benefits and consider applications submitted by participating employers for deductions from your benefits and contentious divorce orders.

Communication sub-committee: The purpose of this committee is to make sure the fund complies with all the communication requirements set out in:

• • •

The Pension Funds Act The guidelines provided by the Financial Sector Conduct Authority (circulars PF86, PF90 and PF130) The Treating Customers Fairly (TCF) principles

The sub-committee also understands and promotes the Protection of Personal Information Act (POPIA) and the King IV Report on Corporate Governance.

This committee has been given the right to make decisions and reports its activities to the board of trustees at each quarterly trustee meeting.

Sustainability and transformation sub-committee: The purpose of this committee is to review and monitor the funds' sustainability practices and transformation related to the management, operation and procurement of the fund. This committee will provide the funds’ board with recommendations to promote sustainability and transformation.

Governance, audit, and risk sub-committee: The purpose of this committee is to review and manage the fund’s governance, audit risk management framework and monitor the effectiveness of financial controls to safeguard the assets and integrity of the financial reporting.

Annual trustee report

6

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Trustee meetings The trustees meet formally four times a year to review the legal, benefit, financial and governance framework of the fund. Sub-committees are in place to deal with the day-to-day running of the fund. They also meet regularly to monitor and review these activities. Over the past year, the following meetings took place: Trustee meetings Meeting focus

Meeting dates

Venue

Quorum

17-Mar

MS Teams

Yes

30-Jun

Sandton office

Yes

29-Sep

Sandton office

Yes

14-Dec

MS Teams

Yes

Sub-committee meetings Investment

Quarterly

MS Teams

Yes

Communication

Quarterly

MS Teams

Yes

Governance Audit and Risk

Quarterly

MS Teams

Yes

Benefit

Monthly

MS Teams

Yes

Trustee meetings

These committees regularly review these policies:

Investment policy statement

Fund policies: • Annuity strategy • Preservation strategy • Procurement policy

Annual trustee report

Sub-committee mandates

The fund’s risk policy and register

• Privacy statement • PAIA manual • Personal Information Impact Assessments (PIIA)

7

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

Your employer management committee Each participating employer in the fund must have an employer management committee. This management committee is responsible for making decisions regarding:

• •

Your employer’s benefit structure (contributions, approved risk benefits and investment portfolio selection) in the fund.

Ask your human resources department to find out who is on your management committee that interacts with the fund on your behalf.

Your employer management committee also has a specialist financial adviser (appointed by the employer) assisting them in managing your employer’s participation.

Any matter that may be unique to your employer.

Fund, industry and legal updates The two-pot retirement system The two-pot system (or two-component system) is a plan to help with two big issues in retirement savings: making sure people have enough money when they retire, and giving them a way to get some money in emergencies before retirement. This legislation is still in draft, but the system is expected to work as follows:.

Two-pot system

Savings pot

• • • • •

Retirement pot How access to retirement savings will work once the two-pot system is implemented

Maximum of one-third of contributions May access these savings before retirement or at retirement Only condition: only one withdrawal in any 12 months is allowed Tax applies on pre-retirement withdrawals at marginal tax rate

• • • •

Minimum of two-thirds of contributions Contributions above the tax deductable limits only flow to this pot Must be preserved until retirement Must be annuitised

Tax applies on lump sum withdrawals at retirement per retirement tax table. First R550 000 currently taxed at 0%

Annual trustee report

8

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

With this system, members can take out up to a third of the money they put into their retirement fund, plus any money they’ve made from investing it. This is for short-term help. The other two-thirds of the money has to stay invested for the long term.

This way, people will not feel like they have to quit their jobs just to get money from their retirement funds when they really need it. This is better for most people compared to the current situation where people are

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

leaving their job and taking out all their retirement savings so they can use some of it and keep access to the rest, then typically use it for something else.

With this new system, members remain invested for retirement but can take some money when they really need it, but the rest remains invested for retirement.

Even if the amount in the savings account is taken out each year, our calculations indicate they will end up with more money when they retire.

This assessment of the two-pot system is based on draft legislation that is being finalised.

There are adjustments still to be reviewed, which may affect how the system is implemented.

Accumulated value of contributions of 15% of R100 salary per year in today’s money terms

Two-pot system (expected)

Current system

Full preservation

Source: https://www.ebnet.co.za/two-pot-system-for-retirement-funds-to-commence-1-march-2024/

How are we responding The fund is in favour of the two-pot system because it’s better for people’s retirement savings in the long run. In the short term, however, there will be pressure on our administrators to process significant amounts of claims because people can cash out some of their savings right away.

We are assessing and managing the various areas impacted by the changes required by the two-pot system, like administration, governance (compliance, legal documentation, reporting), communication and investments, and the anticipated impact on resources and capacity, with workplans to address these. Our sponsor is making big changes to their systems and using the latest technology to talk to our members and facilitate the changes.

We’ll make sure our members understand how this new system works so that they are able to make the best decisions about their retirement savings.

A further impact may be that free-standing funds consider moving to umbrella funds, which can cater for the changes more efficiently. This could result in the fund’s membership growing bigger.

The fund is following two-pot roll out developments closely and we are providing input through our service providers to help shape the final legislation that will enable the new system – together with our sponsor’s research, expertise and insight – to ensure the public interest is considered in decision-making.

Keep up to date with developments relating to the two-pot system

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The administration of the fund

The fund’s investments

Death benefits

The fund’s contact details

Member impact communication and Alexforbes Rewards Alexforbes has three new ways for you to connect with your retirement savings, making it easy for you to stay informed and in control.

AF Mobile App

AF Connect

Enjoy the online platform, which gives you access to: Personal details

Enjoy the ‘on the move’ experience, which gives you access to:

Benefit statements

Investment balances

Investment portfolios and balances

Benefit statements

Investment product details

Fund fact sheets

Personalised product and portfolio management

Personal details

Claims summary and status

Investment portfolios

Fund fact sheets

Nomination of beneficiaries form

Visit AF Connect here and follow the menu prompts Once you’ve registered, you’ll receive confirmation that your registration is complete

WhatsApp

Use WhatsApp self-service, which gives you access to:

Connect with an Alexforbes financial adviser

Register on AF Connect or reset password

Benefit statements

Learn more on specific topics

Latest tax certificate

WhatsApp uses end-to-end encryption to keep your messages secure

Claims summary and status

Annual trustee report

Scan me

10

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

Alexforbes Rewards We launched Alexforbes Rewards to all our South African members in July 2022. Our loyalty programme aims to save you money on everyday items and a lot more. There is something for everyone and there is no subscription fee. You can access Alexforbes Rewards online (https://rewards.alexforbes.com) or using USSD by dialing *120*9006#.

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Alexforbes Rewards is available to all members of the fund, including in-fund preservation members and deferred retirees!

This is what you’ll get through Alexforbes Rewards: Supermarket coupons (Shoprite, Checkers, Checkers Hyper and Pick n Pay): save on day-to-day necessities with exclusive rand values from leading retail chains.

Wellness coupons (Dischem): stay healthy and save the next time you shop for health and wellness products.

Travel deals (Randgo): expert agents guiding you to find the perfect holiday and travel solutions.

Make sure we have your ID or passport number and email address or cell number so you can access Alexforbes Rewards.

Airtime deals (Vodacom, Virgin Mobile, Telkom Mobile, Cell C and MTN): access to discounts on airtime and data from South Africa’s leading providers.

Annual trustee report

11

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Retirement benefit counselling The trustees encourage you to get all the information you need to make the best decisions on retirement. There are a number of ways you can get retirement counselling:

1. Read the Options on retiring brochure.

2. Your HR or salaries department can put you in touch with an accredited financial adviser.

3. Contact the My Money Matters Centre.

My Money Matters toolkit Are you starting a new job, leaving your employer, retiring soon, or just trying to achieve your financial goals?

Our My Money Matters toolkit provides guided decision journeys for important financial decision moments during your working life and beyond. Our aim is for every person to make informed financial choices and access the support they need to make decisions that are right for them. If you need help with understanding your fund and other money-related topics, have a look at the My Money Matters website or call the My Money Matters centre: 0860 000 381 https://mymoneymatters.alexforbes.com/

Annual trustee report

12

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

The fund’s investments The default investment strategy Your retirement savings (fund credit) in the fund is invested in an investment portfolio managed by an investment manager approved by the trustees. The fund’s investment managers and the portfolios available to employers and members are selected and regularly reviewed by the trustees. The trustees use specialist asset consultants to assist them in their decision-making process.

Each participating employer has chosen their investment portfolios from the range of portfolios made available by the trustees. The details of the portfolios for your participating employer are set out in your benefit statement and can be viewed on AF Connect.

In line with the requirements of the Pension Funds Act, the trustees have developed and implemented a default investment strategy for your retirement savings to be invested in if you don’t make, or are uncomfortable making an investment choice. This default investment strategy is the AF Goals-based Balanced LifeStage. The design of this strategy is based on the latest investment research. It moves your retirement savings automatically into an income target (pre-retirement) portfolio as you approach your employer’s normal retirement age. There are three pre-retirement portfolios to choose from namely;

• • •

AF Access Houseview Income Target AF Access Flexible Income Target AF Access Inflation Income Target

The default pre-retirement portfolio is the AF Access Houseview Income Target. If you, or your management committee, don’t make a different investment choice, your retirement savings will be invested in this strategy.

For employers in the Base Access option, the default investment portfolio is the AF Retirement Navigator portfolio, and no investment choice is offered.

The AF Balanced High Growth (Performer) portfolio This is the growth portfolio in the trustee default strategy for the Select Access and Full Access options.

Top 10 equity holdings as a percentage of the portfolio Naspers

3.0%

British American Tobacco PLC

2.2%

ABSA Group Limited

1.9%

Glencore

1.9%

Prosus

1.9%

Firstrand Limited

1.6%

Sasol

1.5%

MTN Group

1.5%

Standard Bank Group

1.2%

Impala Platinum HLDS

1.1%

Total

17.8%

Annual trustee report

13

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Asset allocation: 30 September 2023 The AF Balanced High Growth portfolio is invested in the following investment types: Local

Africa

Global

64%

1.4%

34.7%

Balanced High Growth investment performance: 30 September 2023 Returns

*Benchmark

1 year

13.93%

14.06%

3 years

12.30%

11.82%

5 years

8.88%

7.75%

*We use a benchmark as a value to measure how an investment portfolio is performing and if it is delivering on its performance objectives.

Investment fees: 30 September 2023 Employer’s asset size: First R50m

0.67%

Next R50 million

0.60%

Next R100 million

0.52%

Next R300 million

0.48%

Above R500 million

0.45%

International assets:

Annual trustee report

On average this equates to about

0.2%

14

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

The new Explorer portfolios From June 2023, the AF Explorer and AF Passive Explorer are available as a member investment choice option. The AF Explorer is a portfolio that invests in a variety of assets from around the world. It is specially designed to invest close to the maximum limit allowed offshore under Regulation 28, which is currently 45% (including Africa).

Sustainability The trustees believe that a retirement fund’s objectives, and their management duties, must be achieved through a sustainability lens to provide a framework that enables meaningful retirement outcomes for members. The trustees have started the journey of making the fund future fit. The first step is focusing on looking at the sustainability of the fund.

From an investment point of view, the trustees decided that the Code for Responsible Investing in South Africa (CRISA 2) – which promotes a sustainable approach – would be the reference framework for their investment approach. The CRISA 2 aims to:

The ESG (Environmental, Social and Governance) gap analysis reported on in the previous trustee report was completed and the results were reviewed by the trustees and the fund sustainability and transformation sub-committee (STSC), with help from the fund asset consultants. An ESG implementation plan and transformation plan providing for the incorporation and integration of ESG factors in the fund’s investment

improve corporate governance best practice, and provide an incentive to the investment industry further integrate environmental, social and governance (ESG) and sustainability principles into the investment process

approach was adopted and is being implemented and monitored. Through these plans, a more detailed investment framework is being developed to include a responsible investment policy with transformation, impact and climate components, as well as the measurement and review of key metrics and deliverables under these components.

Some of these metrics of the domestic component of the AF Balanced High Growth (Performer) portfolio, as the largest portfolio of default investment strategy as well as the largest individual member selected portfolio, representing approximately 75% of total fund assets are as follows:

Gender diversity

Annual trustee report

We are pleased to note that South African companies have embraced female representation on boards and our portfolios reflect this positive outcome. Locally, our portfolios are in line with female board representation being close to the 30 - 35% range, broadly in line with the FTSI JSE All Share Index. Both our local and global portfolios are in line with their respective benchmarks. Globally, the diversity metric being reported by Mercer is approximately 50 - 55%. This is the percentage of companies that meet the 30% or more diversity target. In our conversation with Mercer, we understand that the global investment manager universe and investable companies have a long journey ahead in improving diversity.

Portfolio solution

Female representation

Performer

31%

15

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Our investment process is focused on assessing asset managers on their approach towards integrating ESG considerations into their respective investment decision-making processes. These ratings apply to the full scope of the investment strategy and its underlying assets, not solely to equities.

Death benefits

The fund’s contact details

Complaints

ESG integration

The portfolio ratings represent a weighted average of the ESG ratings of individual managers within a given portfolio as determined through our due diligence processes. ESG 1 signifies a leader in the integration of ESG factors and it goes down to ESG 4, indicating little integration of ESG considerations.

Overall, most of our portfolios have higher-rated portfolio ratings relative to their respective benchmarks.

Portfolio solution

ESG Integration rating

Performer

2.3

Climate change

We have adopted the Weighted Average Carbon Intensity (WACI) metric to report the carbon intensity of the Performer portfolio. The equity component of our domestic portfolios reflect a WACI range of 220 – 450. The equity component of our global portfolios can be split into a developed market allocation which reflects a range of 90 – 160 and an emerging markets allocation which reflects a range of 260 – 340.

For comparison – we have found that a WACI measure around 450 means a portfolio is highly vulnerable to carbon-related risks and a measure around 90 indicates that it is relatively protected from carbon-related risks.

Over the past six months, we note that domestic WACI across the Performer portfolio has marginally weakened. This is due to our appointed managers increasing their exposure to the resources, construction and chemicals sectors.

These exposures have contributed to positive portfolio performance over the period, but have undoubtedly contributed negatively to the portfolio WACI ratings in the short term.

Portfolio solution

WACI score

Performer

355

Ongoing participation The fund is already investing in private markets through two of the Goals-based LifeStage portfolios: AF Balanced High Growth (Performer) High Growth

Annual trustee report

These two portfolios invest in the different ESG sectors namely: water, power, environment and housing. This means that by investing in these portfolios you are participating in ESG and contributing towards the recovery of the economy.

16

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

The funds investment portfolios AF Goals-based LifeStage Model portfolios

Multimanager portfolios

Balanced single-manager portfolios

AF Balanced High Growth

Accelerator

Allan Gray Classic Balanced

AF High Growth

AF Retirement Navigator

Coronation Fund Managed II

AF Passive Bold

Banker

Foord Asset Management

AF Access Houseview Income Target

Conserver

M&G Investments

AF Access Passive Houseview Income Target

Performer

Ninety One SA (Pty) Ltd

AF Access Flexible Income Target

Real Return Focus

AF Access Inflation Income Target

Shari’ah High Growth AF Explorer AF Passive Explorer Shari’ah Medium Growth Stable Focus Stable Focus Combined

The administration of the fund Fund statistics: pension and provident sections 30 September 2023

30 September 2022

Provident section

Pension section

Provident section

Pension section

Fund assets

R6.9 billion

R6.3 billion

Fund assets

R5.6 billion

R5.4 billion

Membership

55 458

24 921

Membership

45 254

21 670

Participating employers

267

209

Participating employers

296

206

Benefit payments

The fund administration processed over 4 545 claims paid for the pension fund and 8 574 for the provident fund.

97% of claims are paid within 5 working days after we receive the tax directives from SARS. Payment is typically delayed when members don’t provide valid tax numbers or correct banking details.

Investing of contributions 1. We invest 96% of members contributions within 5 working days which is 5 days quicker than our standard turnaround times.

2. We receive over 540 contribution schedules from participating employers every month.

3. Our administration team takes an average of 2.42 days to invest contributions.

Annual trustee report

17

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

Your personal information We know we require a lot of personal information from your, but we assure you that this is in line with the (legislation) and the Conduct Standard. The information we require is mandated by the Pension funds Act and the Tax Act. The information we receive ensures that we can:

• • • •

manage your fund records efficiently process claims more efficiently submit the necessary reports to the Financial Sector Conduct Authority on the late payment of contributions contact you if you leave your employer and you don’t submit a withdrawal claim form

What happens when you leave your employer and don’t complete a withdrawal claim form?

Remember: if you leave your employer without completing a withdrawal claim, your employer may complete and submit a withdrawal claim form on your behalf. They can do this by completing the no-payment option instruction. This means that you’ll become a default paid-up member. Your retirement savings will stay invested in the portfolio you’re invested in before you left the employer.

Financial year-end: 30 September 2023 The trustees are pleased to inform you that the audited annual financial statements for the last financial year ended on 30 September 2023 are in the process of finalisation for submission to the FSCA within the legislated deadline. The annual financial statements are set to be in good standing. You can view the fund’s annual financial statements for this and previous years by appointment at the fund’s registered address: Alexforbes, 115 West Street, Sandton, Johannesburg.

Deloitte is the external auditor of the fund and the company’s services are closely monitored.

The fund is valuation exempt. This means that the fund doesn’t have to appoint a valuator or submit a valuation report on the financial condition of the fund to the Registrar every three years. We confirm that both sections of the fund are equal to the liabilities:

• •

The fund’s rules No amendments to the fund rules were submitted from 1 October 2022 to 30 September 2023.

You can view the fund’s general rules by appointment at the fund’s registered address: Alexforbes, 115 West Street, Sandton, Johannesburg.

Your employer-specific benefits in the fund are set out in your employer’s special rules. These special rules apply only to your employer’s members in the fund.

You receive a separate newsletter if these special rules are amended.

You can view your sub-fund’s special rules at your employer.

The pension section exemption is valid until 30 September 2024.

The provident section exemption is valid until 30 September 2024.

Annual trustee report

18

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

Your fund’s service providers Service

Provider

Function

Sponsor

Alexander Forbes Financial Services (Pty) Ltd

The sponsor sets up the fund to provide retirement and other benefits to the fund’s members

Administrator

Alexander Forbes Financial Services (Pty) Ltd

The administrators handle all the day-to-day administrative duties of the fund. They make sure the contributions are received by the fund are invested, benefits are paid out, new members are registered, and so on You can contact the fund’s administrator if you have any questions about your benefits on 0860 60 61 62 or info@alexforbes.com

Independent Financial Adviser (IFA)

Your employer’s choice

An accredited financial adviser provides advice to your management committee on which benefits and investments to put in place for your particular employer’s group of members.

Note: the AF consultant is still classified as an IFA

Investment managers

Alexander Forbes Investments

A multi-manager chooses investment managers who invest your fund benefit according to your chosen investment strategy

Alexander Forbes Financial Services (Pty) Ltd

The actuaries make sure that the fund is in a sound financial position.

Together with the consultants, they provide expert advice to the trustees on the management of and the benefits provided by the fund

Deloitte

The auditors examine the fund’s financial statements once a year to make sure the fund’s financial situation is sound and that the information reported in the financial statements is correct

Camargue Underwriting Managers (Pty) Ltd

This insurance covers the fund and trustees for losses caused by theft or fraud and professional negligence of fund trustees and the principal officer

Ms N Burrows

The information officer is appointed by the trustees to fulfill the duties set out in the Protection of Personal Information Act (POPIA)

Actuaries & Consultants

Auditors

Retirement benefit fund and trustee liability insurance

Information officer

Annual trustee report

19

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Death benefits If you pass away while you are a member of the fund, it is the legal duty of the trustees to distribute your death benefit to your beneficiaries, preferably within 12 months of your passing. This benefit does not form part of your estate and can therefore not be distributed according to your will or testament.

The trustees must conduct a thorough investigation and identify all your dependants and nominated beneficiaries, to accurately assess their level of dependency on you. The trustees have full discretion in allocating these benefits, which may be proportional.

When allocating the death benefit, the trustees consider the information that you give in your nomination of beneficiaries form.

It is extremely important to update your nomination of beneficiaries form when your life circumstances change, for example, when you get married, divorced, one of your dependants dies, or after the birth of a child.

You can update your nomination form on AF Connect any time of day or night.

The fund’s contact details If you have any questions, comments or suggestions about the fund, your benefits, investments or any other fundrelated issues, please contact one of your management committee members or phone the AF Access Retirement Fund Call Centre on 0860 60 61 62.

Fund name and Financial Sector Conduct Authority registration number

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Registered address Alexforbes, 115 West Street, Sandton, Johannesburg

AF Access Retirement Fund: Pension Section (12/8/37997) AF Access Retirement Fund: Provident Section (12/8/37998)

Annual trustee report

20

Complaints

About the AF Access Retirement Funds

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints The trustees of the fund aim to ensure that you have confidence in the fund and are satisfied with the standard of service provided by its service providers. If, however, you do have a complaint, this can be lodged at the following offices.

Alexforbes Contact Centre Tel: 0860 60 61 62 Email: complaintsoffice@alexforbes.com

• •

Pension Funds Adjudicator Tel: 086 066 2837 or 012 748 4000 Fax: 086 693 7472 Email: enquiries@pfa.org.za www.pfa.org.za

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FAIS Ombud Tel: 012 470 9080 Fax: 012 348 3447 Email: info@faisombud.co.za www.faisombud.co.za

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Information officer Ms N Burrows burrowsn@alexforbes.com

Information Regulator Email: complaints.IR@justice.gov.za www.justice.gov.za/inforeg

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Lodge an official complaint in writing to the fund.

All complaints should be lodged here so that they can be investigated and dealt with promptly.

Lodge a complaint with the Pension Funds Adjudicator if your complaint about the fund or the trustees was not resolved to your satisfaction through the Contact Centre.

Lodge a complaint with the FAIS Ombud, if your complaint about the quality or appropriateness of the financial advice you received from your financial adviser.

Lodge a complaint in writing to the fund’s information officer if you are dissatisfied with the manner in which your personal information has been processed or if your privacy rights have been compromised or breached.

Lodge a complaint with the Information Regulator if you remain dissatisfied with the fund’s information officer’s response to your complaint.

If there are any conflicts between the information in this trustees’ annual report and the official rules of the fund, the rules of the fund will always apply.

Annual trustee report

21

Complaints

Who manages your fund?

Fund, industry and legal updates

Member impact – communication and Alexforbes Rewards

The fund’s investments

The administration of the fund

Death benefits

The fund’s contact details

Complaints

25886-2024-01 • Getty Images

About the AF Access Retirement Funds

These businesses are licensed as follows: Alexander Forbes Financial Services (Pty) Ltd administers the Alexander Forbes Retirement Fund (FAIS licence number 1177, company registration number 1969/018487/07 and pension fund administrator number 24/331).

Alexander Forbes Investments Limited manages the investments in the Alexander Forbes Retirement Fund and is a registered insurer (FAIS licence number 711, company registration number 1997/000595/06, pension fund administrator number 24/217 and insurer number I155).

Please speak to your financial adviser for tailored advice based on your individual financial needs before you make financial decisions based on this information. This information is not advice nor is it intended as a personal recommendation, guidance or a proposal on the suitability of any financial product or course of action as defined in the Financial Advisory and Intermediary Services (FAIS) Act. While care has been taken to present correct information, Alexforbes and its directors, officers and employees take no responsibility for any actions taken based on this information, all of which require advice.

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