Mentenova (Pty) Ltd

Once we’ve established the most appropriate asset managers from a quantitative point of view, each of the mandates are assessed based on the following qualitative measures:

● Company structure - The company structure should be stable and allow for a focused investment approach

● Personnel - The quality and stability of the investment team should be assessed

● Investment philosophy - An investment philosophy, based on sound investment principles should be in place

● Investment process - The investment process must be able to allow efficient implementation of the investment philosophy

● Risk management - The risk management process and measurements should fit into the investment philosophy

● Assets under management - The trend in assets under management provides an indication of any potential problems within the investment team

● Investment performance – The performance of the manager should be used to verify the qualitative factors with regards to the investment philosophy, process and risk management.

The main objective of going through the qualitative review process is to ascertain whether the people, processes and investment philosophy that were responsible for the consistent return profile that was identified are still in place and is expected to produce the same consistency going forward.

After the quantitative and qualitative investment manager selection process is completed a Buy-List of managers is constructed for each asset class.

The Buy-List managers selected through the quantitative and qualitative investment manager selection process for each asset class are blended by optimising the allocation to each manager against the same Objective that was used to select these managers in the quantitative investment manager selection process.

The optimisation process involves running tens-ofthousands of different combinations of asset manager allocations in order to arrive at an optimal blend in terms of:

● Success rate of outperforming the objective

● Volatility of return around the objective

● Quantum of underperformance in rolling periods where target is missed

● Quantum of outperformance in rolling periods where target is achieved

● Annualised cumulative return

The number of managers to use in each solution / asset class are determined during the blending process. Managers with an allocation of less than 5% in the optimal blend are eliminated after each run and the remaining managers run again until an allocation of at least 5% to each of the remaining managers is achieved.

We maintain the belief that adding additional managers reduces active risk, provided managers can be found that have positive expected returns and low correlation to existing ones. In practice, however, adding managers comes at a cost. Custody, administration, performance measurement and manager monitoring all become more expensive as the number of managers increases and this cost has to be played off against the benefit of adding an additional manager. We believe that the cost outweighs the benefit if less than 5% of any asset class is allocated to a manager.At Mentenova all investment professionals are invested in the products, as we believe these products offer the best absolute return opportunities available to us.

We subscribe to a strong client-centric culture and view our clients as partners of our business.”

Who is your FAIS complaints officer?

Francois Viljoen

Please provide the link to the complaints policy on your website: Available upon request from info@mentenova.co.za

What is the ownership structure of the company?

Mentenova is 60% owned by Liberty Group Holdings and 40% is owned by founders and executives of the business. Who are the directors of the company?

Directors: F Viljoen, DM Streicher, JF van Dijk, EJ de Bod MV Norris

Interest in ownership? Please provide the percentage held by staff and management: Company management has a 40% ownership in the company.