Alexander Forbes Investments Global Offering

ALEXANDER FORBES INVESTMENTS

GLOBAL OFFERING The primary aim of an asset manager research programme is to supplement the portfolio construction process, like the one Senzo is responsible for overseeing, with an assessment of performance prospects across various investment strategies and asset managers considered for inclusion in an overall portfolio.

We don’t believe that it is possible to pick winners in advance with absolute certainty. We also don’t believe that it is sensible to rely solely on the analysis of past performance as a reliable predictor of future performance. Our belief is that, with the aid of a thorough forward-looking asset manager research programme, it is possible to assess the likelihood of an investment strategy or asset manager delivering outperformance prospects over time. This way, portfolios can be built with the future in mind, ensuring that they are exposed to the best investment ideas through various market cycles.

This is a belief which Mercer fundamentally shares. Like us, Mercer uses their investment manager research programme to understand the investment philosophies and investment strategies employed by asset managers, building optimally diversified global portfolios.

LEBO THUBISI

Head: Manager Research

Four-factor ratings framework Over the years, we have developed what we consider a robust, repeatable and evidence-based approach to asset manager research. Investment strategies are rated based on a proprietary,

forward-looking Alexander Forbes Investments and Mercer methodology which scores factors such as: ■ idea generation ■ portfolio construction ■ implementation and business management ■ traditional philosophy, processes and people criteria.

Also, our ratings framework formally considers how asset managers evaluate, incorporate and address environmental, social and governance (ESG) factors and active ownership practices in their portfolios. We believe that asset managers who are rated highly in these four areas are those with the highest likelihood of achieving sustainable outperformance over time.

ALEXANDER FORBES INVESTMENTS GLOBAL OFFERING | LEBO THUBISI

Mercer’s global research is a game changer Mercer’s breadth of coverage is comprehensive and unrivalled in the industry. Mercer’s leading research network and extensive intellectual capital provides a strong foundation for full-time research specialists to distinguish good investment strategies from bad ones and identify talented asset managers that will outperform over time, wherever they are based in the world.

Unrivalled breadth of coverage

Active managers

6 705

Active strategies

35 622

Strategies rated

11 817

Strategies rated “A”

2 853

ESG-rated strategies

5 596

ESG ‘1&2’-rated strategies

1 245

200+ Research specialists

50+

Research specialists with management experience

34 Cities with Mercer research specialists

Access to this scope of research enriches the quality of our global portfolio offerings and advice to clients. If there is a strategy we are interested in, the chances are that Mercer will have a view on it. Importantly, Mercer’s comprehensive coverage provides Senzo’s team with a streamlined suite of quality global building block portfolios comprising the best global investment ideas and best-in-class asset managers. It is for this reason that we are so well positioned to enhance our global offering to better meet your outcomes in the most efficient, cost-effective way.

I am delighted that you have expressed interest in our global portfolio solutions and services following your meeting with Gavin. Our global research process and capability has given our clients the confidence that the global asset managers with whom their assets are invested with have been closely scrutinised and are those with the highest likelihood of achieving satisfactory outperformance over time. I certainly look forward to the possibility of unpacking more detail around our global research capability and inspiring the same confidence among your committee, in our ability to deliver the best possible value to the members invested in your fund.

Best regards

Lebo Alexander Forbes Investments Limited is a licensed financial services provider, in terms of section 8 of the Financial Advisory and Intermediary Services Act 37 of 2002, as amended, FAIS licence number 711. This information is not advice, as defined and contemplated in the Financial Advisory and Intermediary Services Act 37 of 2002, as amended. The value of a portfolio can go down, as well as up, as a result of changes in the value of the underlying investments, or of currency movement. An investor may not recoup the full amount invested. All policies issued or underwritten by Alexander Forbes Investments are linked policies, under which no guarantees are issued. The policy benefits are determined solely on the value of the assets, or categories of assets, to which the policies are linked. Past performance is not necessarily an indication of future performance. Forecasts and examples are for illustrative purposes only and are not guaranteed to occur. Any projections contained in the information are estimates only and are not guaranteed to occur. Such projections are subject to market influences and contingent on matters outside the control of Alexander Forbes Investments, so may not be realised in the future. Please be advised that there may be supervised representatives. Company registration number: 1997/000595/06. Pension Fund Administrator number: 24/217.

Insurer number: 10/10/1/155. Postal address: PO Box 786055, Sandton 2146. Physical address: 115 West Street, Sandown 2196. Telephone number: +27 (0) 11 505 6000. The complaints handling procedure and conflict of interest management policy can be found on the Alexander Forbes Investments website: www.alexanderforbesinvestments.co.za.