ANNUAL FINANCIAL STATEMENTS IN TERMS SECTION 15 OF … · 2019-04-05 · 3rd Floor, Waterway House, 3 Dock Road, V&A Waterfront, Cape Town, 8000 Momentum Consultants and Actuaries

NAME OF RETIREMENT FUND: LA RETIREMENT FUND

FINANCIAL SERVICES BOARD

REGISTRATION NUMBER: 12/8/1278/2

FOR THE PERIOD: 1 July 2017 TO 30 June 2018

Page Page

Regulatory information* 2-7 21

8-9

Notes to the financial statements 22-36

10 Report of the valuator* 37-39

40-45

Report of the independent auditors 11-12

Report of the Board of Fund* 13-19 46-59

Statement of net assets and funds 20

60-73

74

* Not subject to any engagement by an auditor

A G

ANNUAL FINANCIAL STATEMENTS

IN TERMS SECTION 15 OF THE PENSION FUNDS ACT NO 24, 1956

AS AMENDED (PENSION FUNDS ACT)

Schedule Schedule

B

HA

C HB

I

IB

CONTENTS

E

F

D

IA

Report of the independent auditors to

the Financial Sector Conduct Authority

Statement of changes in net assets and

funds

Statement of responsibility by the

Board of Fund

Statement of responsibility by the

Principal Officer*

Assets held in compliance with

Regulation 28

Report of the independent auditors on

compliance with Regulation 28

Schedule pertaining to annual financial

statements*

1

Name of Retirement Fund: LA Retirement Fund

SCHEDULE A

REGULATORY INFORMATION

For the period ended 30 JUNE 2018

Registered office of the Fund

Postal address: PO Box 4300

Tygervalley

7536

Physical address: Belmont Office Park

Twist Street

Bellville

7535

Financial reporting periods

Current: 1 July 2017 to 30 June 2018

Previous: 1 July 2016 to 30 June 2017

Board of Fund

Capacity*

Daniel Lambrechts Carstens [email protected] M 16/05/2013

Daniel Lambrechts Carstens [email protected] C 01/07/2018

Herman Francois Botha [email protected] AD 01/12/2014

Izak du Toit [email protected] AD 01/01/2016 30/06/2018

Izak du Toit [email protected] C 01/07/2016 30/06/2018

Jan Adriaan Hendrik van den Berg [email protected] M 26/04/2013

Johannes David Brand van der Merwe [email protected] M 27/01/2012

Johannes Jacobs [email protected] AD 01/08/2018

Michelle van Zyl [email protected] M 01/01/2016

Pieter Willem Esterhuizen [email protected] M 26/04/2013

Solomon Philander [email protected] E 01/12/2016

Wouter Ryk Meiring [email protected] E 01/12/2016

* M = member elected, C = chairperson, I = independent, A = alternate, E = employer appointed, R = representative

(section 26(2) appointment), S = sponsor appointed, AD = additional

Governance note: schedule of meetings held by the Board of Fund in terms of the Rules of the Fund

Meeting date Place of meeting Quorum (yes/no)

Yes

Yes

01/09/2017 Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

26/01/2018 Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes19/06/2018 Belmont Office Park, Twist Street, Bellville, 7535 Yes18/06/2018 Belmont Office Park, Twist Street, Bellville, 7535

26/03/2018

27/03/2018

20/04/2018

24/05/2018 Belmont Office Park, Twist Street, Bellville, 7535

Belmont Office Park, Twist Street, Bellville, 7535



Date resigned

(for all Board

members)

20/10/2017



31/08/2017


Belmont Office Park, Twist Street, Bellville, 753516/11/2017





08/12/2017

17/11/2017


Mont Fleur Conference Venue, Stellenbosch

Mont Fleur Conference Venue, Stellenbosch

25/01/2018

19/02/2018

20/02/2018

29/09/2017

Full name E-mail address Date appointed

or re-appointed

date (for all

Board members)



2

mailto:[email protected]













REGULATORY INFORMATION - Continued


Fund Officers

Principal Officer Monitoring person*

Full name Ilse Hartlief Ilse Hartlief

Postal address PO Box 4300, Tygervalley, 7536 PO Box 4300, Tygervalley, 7536

Physical address Belmont Office Park, Twist Street, Bellville, 7535 Belmont Office Park, Twist Street, Bellville, 7535

Telephone number 021-943 5300 021-943 5300

E-mail address [email protected] [email protected]

Appointed: 01/07/2015

*(In terms of Section 13A of the Pension Funds Act)

Professional service providers

Actuary/Valuator Auditor

Full name Ernst & Young

Postal address PO Box 2212, Bellville, 7535 PO Box 656, Cape Town, 8000

Physical address Parc du Cap, Mispel Road, Bellville, 7530



Benefit administrator Fund consultants

Full name Verso Financial Services (Pty) Ltd Simeka Consultants & Actuaries (Pty) Ltd

Postal address PO Box 4300, Tygervalley, 7536 Po Box 350, Sanlamhof, 7532

Physical address Belmont Office Park, Twist Street, Bellville, 7535 1st Floor, Simeka House, The Vineyards Office Estate, 99

Jip De Jager, Bellville, 7530



Benefit administrator's registration number in terms of Section 13B: 24/292

Fund consultant's FAIS registration number: 13900

Investment administrators

Full name Coronation Asset Management (Pty) Ltd

Postal address PO Box 44684, Claremont, 7735

Physical address 7th Floor, Montclare Place, c/o Campground and Main Roads, Claremont, 7708

Telephone number 021-680 2427

E-mail address [email protected]

Investment administrator’s FAIS registration number : 548


Full name Momentum Asset Management (Pty) Ltd

Postal address PO Box 7400, Centurion, 0046

Physical address 286 West Avenue, Centurion, 0157





Full name Investec Asset Management (Pty) Ltd

Postal address PO Box 1655, Cape Town, 8000

Physical address 36 Hans Strijdom Avenue, Cape Town, 8000




3rd Floor, Waterway House, 3 Dock Road, V&A Waterfront,

Cape Town, 8000

Momentum Consultants and Actuaries (Pty) Ltd:

Sean Neethling

3










Full name Colourfield Liability Solutions (Pty) Ltd

Postal address Unit 16b, 3rd Floor, 3 Melrose Arch Boulevard, Melrose Arch, Johannesburg, 2076

Physical address Unit 16b, 3rd Floor, 3 Melrose Arch Boulevard, Melrose Arch, Johannesburg, 2076

Telephone number 0861 007 656




Full name Prudential Portfolio Managers SA


Physical address 7th Floor Protea Place, 40 Dreyer Street, Claremont, 7735





Full name African Infrastructure Investment Managers


Physical address Ground Floor, Colinton House, 1 Oakdale Road, Newlands, 7700





Full name Taquanta Asset Managers (Pty) Ltd


Physical address 7th Floor, Newlands Terraces, Boundary Road, Newlands, 7700





Full name Excellerate Real Estate Services (Pty) Ltd, previously JHI for Newshelf

Postal address PO Box 489, Sanlamhof, 7532

Physical address 222 Durban Road, Oakdale, Bellville, 7530



Investment administrator’s FAIS registration number : n/a


Full name Tilney Asset Management Services Ltd

Postal address Block F, The Terraces, Steenberg Office Park, Tokai, 7945

Physical address Block F, The Terraces, Steenberg Office Park, Tokai, 7945

Telephone number 083 3035577



Terminated May-18


Full name Fairtree Capital (Pty) Ltd

Postal address PO Box 4124, Tygervalley, 7536

Physical address 2nd Floor, Mill Square, MS 201c, Cnr Plein & Andringa Street, Stellenbosch, 7599




4









Full name Steyn Capital Management (Pty) Ltd

Postal address PO Box 5673, Tygervalley, 7536

Physical address Oude Westhof Village Square, Block 3 Unit13-14, 5 Van Riebeeckshof Road, Oude Westhof, Bellville, 7530





Full name Prescient Securities (Pty) Ltd

Postal address PO Box 30067, Tokai, Cape Town, 7966

Physical address Prescient House, Westlake Business Park, Otto Close, Westlake, 7945




Terminated Dec-17


Full name Prescient Investment Management (Pty) Ltd

Postal address PO Box 30067, Tokai, Cape Town, 7966

Physical address Prescient House, Westlake Business Park, Otto Close, Westlake, 7945




Appointed Aug-17


Full name Sanlam Investment Management (Pty) Ltd

Postal address Private Bag X8, Tyger Valley, 7536

Physical address 55 Willie van Schoor Avenue, Bellville, 7530



Investment administrator's FAIS registration number: 579


Full name Futuregrowth Asset Management (Pty) Ltd

Postal address Private Bag X6, Newlands, 7725

Physical address 3rd floor, Great Westerford, 240 Main Road, Rondebosch, 7700




Appointed Nov-17


Full name Sanlam Asset Management (Pty) Ltd

Postal address Private Bag X8, Tyger Valley, 7536

Physical address 55 Willie van Schoor Avenue, Bellville, 7530





Full name Old Mutual Customised Solutions (Pty) Ltd, previously Old Mutual Global Index Trackers (Pty) Ltd


Physical address West Campus, Entrance 2, Second Floor, Mutualpark, Jan Smuts Drive Pinelands, 7405




5










Full name Old Mutual Unit Trust Managers (RF) (Pty) Ltd


Physical address West Campus, Entrance 2, Second Floor, Mutualpark, Jan Smuts Drive Pinelands, 7405




Appointed Feb-18


Full name Ashmore Investment Management Limited

Postal address 61 Aldwych, London, WC2B 4AE, United Kingdom

Physical address 61 Aldwych, London, WC2B 4AE, United Kingdom

Telephone number +44 20 3077 6000

E-mail address ashmore-ta-lux-ntrs.com



Full name Standard Bank Corporate and Investment Banking, a division of The Standard Bank of South Africa Ltd

Postal address 1st Floor, East Wing, 30 Baker Street, Rosebank, 2196

Physical address 1st Floor, East Wing, 30 Baker Street, Rosebank, 2196





Full name Sygnia Asset Management (Pty) Ltd

Postal address PO Box 51591, Waterfront, 8002

Physical address 7th Floor, The Foundry, Cardiff Street, Green Point, 8001




Risk insurer Custodian and nominees

Full name Sanlam

Postal address PO Box 1, Sanlamhof, 7532 PO Box 1144, Johannesburg, 2000

Physical address 1 Strand Street, Bellville, 7530

Telephone number 021-916 3130 011- 534 6553


FSP approval number: 2759

Risk insurer Investment advisors

Full name MMI Group Ltd GraySwan Financial Services (Pty) Ltd

Postal address PO Box 2212, Bellville, 7535 Private Bag X34, Suite 184, Somerset West, 7129

Physical address Parc du Cap, Mispel Street, Bellville, 7530 A2, The Beachhead, 10 Niblick Way, Somerset West, 7130

Telephone number 086 - 002 2220 021- 852 9092


FSP approval number: 3780 42290

Nedbank Ltd

9363

2nd Floor, 16 Constantia Blvd, Constantia Kloof, Roodepoort,

1709

6









Participating employers

The following employers participate in the Fund in terms of the Rules of the Fund:

Alfred Nzo District Municipality Langeberg Municipality

Amatole District Municipality Maitland Cottage Home

Beaufort West Municipality Makana Municipality

Bergrivier Municipality Matzikama Municipality

Bitou Municipality Mnquma Municipality

Blue Crane Route Municipality Momentum Disability Claims

Breede Vallei Municipality Mosselbay Municipality

Buffalo City Municipality Naledi Municipality

Cederberg Municipality Nama Khoi Municipality

Central Karoo District Municipality Namakwa District Municipality

Chris Hani District Municipality Ndlambe Municipality

City of Cape Town Nelson Mandela Bay Metropolitan Municipality

Dawid Kruiper Local Municipality (//Khara Hais) OR Tambo District Municipality

Dr Beyers Naude Local Municipality (Camdeboo) Overberg District Municipality

Drakenstein Municipality Overstrand Municipality

Eden District Municipality Phokwane Municipality

Emthanjeni Municipality Renosterberg Municipality

Engcobo Municipality Saldanha Bay Municipality

Enoch Mgijima Local Municipality (Lukhanji) Sol Plaatje Municipality

George Municipality Stellenbosch Municipality

Hessequa Municipality Sundays River Valley Municipality

Inxuba Yethemba Municipality Swartland Municipality

John Taolo Gaetsewe District Municipality Theewaterskloof Municipality

Kaapse Wynland District Municipality Tsantsabane Municipality

Kai!Garib Municipality (no members since 01/04/2018) Walter Sisulu Local Municipality (previously Gariep Mun)

Kareeberg Municipality West Coast District Municipality

Karoo Hoogland Municipality Witzenberg Municipality

Kgatelopele Municipality

Knysna Municipality

Kouga Municipality

7


SCHEDULE B

STATEMENT OF RESPONSIBILITY BY THE BOARD OF FUND


Responsibilities

●

●

●

●

●

●

●

●

●

●

●

The Board of Fund hereby confirms to the best of their knowledge and belief that, during the period under review, in the execution of their duties they have

complied with the duties imposed by the Pension Funds Act and all applicable legislation and the Rules of the Fund, including the following:

ensured that the proper registers, books and records of the operations of the Fund were kept, inclusive of proper minutes of all resolutions passed by the

Board of Fund;ensured that proper internal control systems were employed by or on behalf of the Fund;

ensured that adequate and appropriate information was communicated to the members of the Fund, informing them of their rights, benefits and duties in

terms of the Rules of the Fund;

took all reasonable steps to ensure that contributions, where applicable, were paid timeously to the Fund or reported where necessary in accordance with

Section 13A and regulation 33 of the Pension Funds Act;

the financial records are reliable.

obtained expert advice on matters where they lacked sufficient expertise;

ensured that the rules and the operation and administration of the Fund complied with the Pension Funds Act, and all applicable legislation;

the Fund's assets are safeguarded;

The annual financial statements set out on pages 13 to 36 have been prepared for regulatory purposes in accordance with the Regulatory Reporting

Requirements for Retirement Funds in South Africa, the Rules of the Fund and the Pension Funds Act.

transactions are properly authorized and executed; and

ensured that investments of the Fund were implemented and maintained in accordance with the Fund's investment strategy.

The annual financial statements of LA Retirement Fund are the responsibility of the Board of Fund. The Board of Fund fulfils this responsibility by ensuring the

implementation and maintenance of accounting systems and practices adequately supported by internal financial controls. These controls, which are

implemented and executed by the Fund and/or its benefit administrators, provide reasonable assurance that:

Approval of the annual financial statements

During the financial year under review, Newshelf 922

(Pty) Ltd received 4 signed offers of sale to the

amount of R354 975 000. R145 995 501 was

received by 30 June 2018 with the remaining balance

received after the reporting period.

The matter has been taken up comprehensively with

the FSCA and it was explained that the exceeding of

the limits was not the result of the Fund investing in

contravention of the limits. It resulted from a change

in Regulation 28 requirements after the Fund had

already invested and consolidated its direct property

interests in one company. The situation is monitored

and regularly reported to the FSCA.

Corrective course of action taken to resolve non-

compliance matter

The Fund's investment in Newshelf 922 (Pty) Ltd

exceeds the prescribed limit per issuer as set out in

Regulation 28.

Non-compliance with Regulation 28 limits.

ensured that fidelity cover was maintained and that this cover was deemed adequate and in compliance with the Rules of the Fund; and

Instances of non-compliance

Impact of non-compliance matter on the Fund

These financial statements have been reported on by the independent auditors, Ernst & Young Inc, who were given unrestricted access to all financial records

and related data, including minutes of all relevant meetings. The Board of Fund believes that all representations made to the independent auditors in the

management representation letter during their audit were valid and appropriate. The report of the independent auditors is presented on pages 11 to 12.

The following instances of non-compliance with Acts, Legislation, Regulations and Rules, including the provisions of laws and regulations that determine the

reported amounts and disclosures in the financial statements came to our attention and were not rectified before the Board of Fund’s approval of the financial

statements:

Nature and cause of non-compliance

8


SCHEDULE E

REPORT OF THE BOARD OF FUND


1.

1.1.

1.2.

1.2.1.

(a)

(a)

(b)

(c)

1.2.2.

1.2.2.1.

1.2.2.2.

1.2.3.

1.3.

1.3.1.1.

1.3.1.2.

1.3.1.3.

For benefits payable to DB deferred members, refer to Rule 11.3 of the Rules of the Fund

DESCRIPTION OF FUND

Type of fund

In terms of section 1 of the Income Tax Act, 1962 the Fund is classified as a paragraph (a) Pension Fund. The Fund is a

hybrid fund.

Benefits

Summary in terms of the Rules of the Fund:

Defined Benefit Section: (Note that wef 1/4/2016 there were no active DB members, only DB deferred members and

pensioners)

Rule 4.2: Participating employers contribute at a rate of 18% of pensionable salary for defined contribution

members except councillors whose employer contribution rate is either 7.5% or 10% (wef 01/06/2016).

Contribution holiday: Not applicable

Unclaimed benefits

Strategy of the Board of Fund adopted towards unclaimed benefits: Unclaimed benefits, prior to 01/03/2009

older than 2 years will remain in the Fund until the members have been traced. Effective 01/03/2009 all

unclaimed benefits older than 2 years, will be transferred to an Unclaimed Benefit Fund.

In respect of unclaimed benefits, complete records, as prescribed are maintained as from 1 July 2002.

Beneficiary benefits

Strategy of Board of Fund adopted towards beneficiary benefits:

Beneficiary payments are made in terms of Part 17.1 of the Rules of the Fund.

Defined Contribution Section:

Contributions

Rule 4.1: Defined contribution members contribute at a rate of 7.5% (contract workers & councillors) and

9% (permanent employees) of pensionable salary.

On resignation and retirement a member is entitled to their full member share value, as per Part 9 and 5 of

the Rules of the Fund. Effective July 2016, a member may on retirement choose to receive monthly living

annuity payments from the Fund.

On death a dependant/nominee is entitled to a lump sum, depending on the member's chosen risk option,

plus employer and employee contributions towards his/her retirement funding plus growth. The deceased

member's spouse may elect to receive monthly living annuity payments from the Fund. (For the calculation

of these benefits you are referred to Part 6 of the Rules of the Fund).

The disability benefit if chosen is provided as a monthly income. (For the calculation of these benefits you

are referred to Part 8 of the Rules of the Fund).

13


REPORT OF THE BOARD OF FUND - Continued


1.4.

1.4.1.

Date of Board of

Fund's

resolution

Effective dateDate registered

by the FSCA

01/09/2017 01/10/2017 04/10/2017

26/01/2018 01/03/2018 08/02/2018

24/05/2018 01/08/2018 21/06/2018

1.4.2.

1.5.

1.5.1.

(a)

(b)

(c)

1.5.2.

(a)

(b)

Revised rules / Consolidated rules:

The Rules now empower the Board of Trustees to determine the

term of office of additional Trustees. This is to allow the Board more

discretion in setting the office of these Trustees who are not elected

by either the Members or Pensioners.

13

To allow for the payment of financial advice fees from Living

Annuitants capital per conditions set by the Trustees, which include

a maximum fee as determined by the Board of Trustees from time to

time.

The reference to the unapproved risk benefits where it appears in

the definition of "Insured Risk Benefits" has been made less specific

in order to enable Local Authorities to add more benefits outside the

Fund, which premiums will be funded from the Local Authority

contribution to the Fund.

1

Rules/ amendments

14

Motivation and description of rule amendment

Amendments

Rule

amendment

no.

This reserve is established to provide for receipt and payment of the Insured Risk Benefits obligations of the Fund not covered

by the other accounts held in respect of Defined Contribution members.

The Board of Fund resolved on 27 March 2018 that the existing Rules of the Fund, as amended, be replaced, effective 1 July 2018. The

revised rules were approved by the FSCA on 13 June 2018.

Risk reserve - Rule13.1.3

Accounts

The Share Account represents the accumulated credit values of all active members and defined contribution deferred

pensioners of the Fund.

Share Account - Rule13.1.1 R1 970 695 350 (2017: R1 867 824 436)

Processing error reserve - Rule13.1.4 (R5 882 129) (2017: R16 991 780)

Reserves and specified accounts established in terms of the Rules of the Fund

Reserves

Contingency reserve - Rule13.1.2 R9 198 798 (2017: R10 058 783)

This reserve is maintained to provide for timing and other differences between the actual fund interest earned and the interest

allocated to the Share Accounts of members.

This reserve allows for the payment of all costs and expenses referred to in Rules 16.14.3 and 16.15 of the Fund. The

payment of other expenses of the Fund not provided for elsewhere in the Rules will also be paid out of this reserve at the

discretion of the Board of Fund in consultation with the Actuary.

The Reserve Account provides for contingencies and obligations of the Fund not covered by the Share Account. The level of the

Reserve Account is determined by the Board of Fund after consultation with the Actuary. The Reserve Account includes:

Living Annuity Account - Rule13.1.5 R44 224 450 (2017: R17 062 143)

The Living Annuity Account represents the member share transfer values of all in-fund living annuitants, after the deduction of

lump sum payments on retirement. Monthly payments are made from this account to the in-fund living annuitants.

14




2. INVESTMENTS

2.1.

2.1.1.

Defined Benefit Pensioners

-

-

-

-

-

-

-

-

-

REAL RETURN OBJECTIVES:

Defined Benefit Pensioners

De-Risking portfolio:

Growth portfolio:

Accumulation Phase:

Consolidation Phase:

Preservation Phase:

Cash Plus Option:

The Pensioner assets are invested according to a Liability Driven Investment (LDI) Strategy.

STeFI +1% (Net of Fees) over rolling twelve month periods with cognisance of capital protection over any six month rolling period.

Defined Contribution Active Members

General: The Board of Fund has a fiduciary duty to invest the Fund's assets in a responsible and prudent manner to the benefit of its

members. The Board of Fund decides on matters relating to the administration and management of the Fund's assets in line with the

Fund's investment policy.

to target a pension increase equal to 65% of CPI effective from 1 January 2018 but based on CPI to the preceding 30 June

(subject to affordability and the minimum increases specified in the Rules);

DIVERSIFICATION: Diversification is fundamental to risk minimization and it is therefore the fiduciary duty of the Board of Fund to

diversify the investments of the Fund.

The de-risking portfolio endeavours to manage the liabilities in such a way so as to track the movement of the Fund’s future pensioner

obligations in response to interest rate and inflation movements.

to remain financially sound at all times.

give appropriate consideration to any factor which may materially affect the sustainable long-term performance, including

Environmental, Social and Governance (ESG) considerations;

to provide a competitive long-term real return taking into account appropriate and acceptable risk levels and costs;

CPI+2% (Net of Fees) over rolling three year periods with cognisance of capital protection over any twelve month rolling period.

The Board of Fund has formulated an investment strategy and policy (the Investment Policy Statement, or "IPS") that complies with the

provisions of Regulation 28 of the Pension Funds Act. In terms of this strategy the investments are managed according to the following

principles.

CPI+4% (Net of Fees) over rolling three year periods with cognisance of capital protection over any twenty-four month rolling period.

every three years perform a catch-up exercise to increase pensions to at least 100% of CPI since the date of retirement,

subject to the value of the notional pensioner account and affordability;

The objective of the “Growth” assets is to exceed liabilities i.e. to provide increases in line with inflation. The Growth portfolio targets a

real return of 6% over rolling three year periods.

CPI+6% (Net of Fees) over rolling five year periods with no cognisance of capital protection over shorter periods.

Investment strategy

The long term objective is to provide a pension increase equal to 100% of CPI.

to provide members near retirement with an appropriate mechanism to meet their retirement needs; and

give appropriate consideration to any factor which may materially affect the sustainable long-term performance, including

Environmental, Social and Governance (ESG) considerations; and

to remain financially sound at all times.

Defined Contribution Active Members

The Board has agreed that the primary investment objectives of the Defined Contribution Members’ portfolio are:

to protect and enhance where possible, members’ retirement benefits against the effects of inflation, based on calculated and

acceptable risk levels;

The Board has agreed that the primary financial objectives of the Pensioners' portfolio are:

15




Shari'ah Balanced Fund Option:

2.1.2.

-

-

-

-

-

2.1.3.

2.1.4.

2.1.5.

- 30% in a cash type portfolio

- 70% in a flexible fixed interest mandate

2.1.6.

2.1.7.

(a)

(b)

(c)

2.1.8.

(a)

(b)

(c)

2.1.9.

(a)

The investments are monitored for compliance with the provisions of Regulation 28 and adherence to the investment mandate.

Private Equity Funds: The Board of Fund utilises private equity Funds as part of their investment strategy. The Board of Fund ensures

that the following have been complied with:

The exposure of the asset class does not exceed the maximum percentages as prescribed to the underlying asset as set out in

Regulation 28.

Hedge funds: The Board of Fund utilises hedge funds as part of their investment strategy. The Board of Fund ensures that the following

have been complied with:


Regulation 28.

Provide members closer to retirement with an appropriate mechanism to meet their retirement needs.

Individual member choice: Members may opt out of the default Life Stage investment strategy.

Protect and enhance where possible, members’ retirement benefits against the effects of inflation, based on calculated and

acceptable risk levels;

Default investment strategy: The Board of Fund introduced the Life Stage investment strategy in August 2014 to -

Accumulation Phase – up to 5 years before normal retirement age.

Provide members with a cost effective retirement savings mechanism;

Settlement income: not applicable

The investment mandate is in place and reviewed by the Board of Fund on a regular basis to ensure compliance with the

requirements as prescribed by Regulation 28 and the relevant Notice.

Unclaimed benefits: There is no special investment strategy for unclaimed benefits.

Members at retirement may transfer their member share values into the Board of Fund approved in-fund living annuity. This suitable,

cost-effective and prudent option was implemented with effect from 1 July 2016.

Surplus apportionment allocations: Surplus distribution process completed and approved in terms of Section 15 B(9) of the Pension

Funds Act.

Derivative Instruments: The Board of Fund utilises derivative instruments as part of their investment strategy. The Board of Fund

ensures that the following have been complied with:


Regulation 28.

Members are moved through two phases (from an aggressive growth strategy to a slightly more conservative strategy) as they approach

normal retirement age.

A Cash Plus Option is also offered for members close to retirement who wish to preserve their capital and wish to opt out of the Life

Stage Programme.

45% customised SA Shari'ah Equity index, 10% S&P Developed Markets large and mid-cap Shari'ah index, 40% STeFI composite -

0.5% & 5% three month US Dollar LIBOR over rolling 3-year periods.

Consolidation Phase – within 5 years before normal retirement age.

Reserve accounts: With effect from 01 July 2017, the underlying assets of the Contingency Reserve Account are invested as follows:




A Preservation Phase is also offered to members who opt out of the Life Stage investment strategy.

16




(b)

(c)

2.1.10.

2.2. Management and performance of investments

-

-

-

- Excess return: The average return in excess of the risk free rate;

-

-

-

2018 2017

Total value of investments managed by: R R

Coronation Asset Management (Pty) Ltd 848 018 361 793 415 647

Momentum Asset Management (Pty) Ltd 6 103 929 5 632 901

Taquanta Asset Managers (Pty) Ltd 55 846 362 107 558 377

Investec Asset Management (Pty) Ltd 206 706 943 189 968 258

African Infrastructure Investment Managers 19 543 679 20 905 990

Prudential Portfolio Managers SA 600 911 639 515 263 769

Colourfield Liability Solutions (Pty) Ltd 772 412 215 921 534 873

Fairtree Capital (Pty) Ltd 92 780 867 78 891 752

Steyn Capital Management (Pty) Ltd 228 601 685 196 218 970

Prescient Securities (Pty) Ltd 0 7 623 253

Prescient Investment Management (Pty) Ltd 51 169 954 0

Futuregrowth Asset Management (Pty) Ltd 106 473 188 0

Tilney Asset Management Services Ltd 0 9 260 482

Sanlam Asset Management (Pty) Ltd 157 368 973 136 391 197

Sanlam Investment Management (Pty) Ltd 46 865 770 52 108 815

Old Mutual Customised Solutions (Pty) Ltd, previously Old Mutual Global Index Trackers (Pty) Ltd 269 036 391 240 192 568

Old Mutual Unit Trust Managers (RF) (Pty) Ltd 41 525 0

Ashmore Investment Management Limited 106 737 070 81 843 239

Excellerate Real Estate Services (Pty) Ltd, previously JHI for Newshelf 221 295 550 427 424 831

Direct investments managed by the Fund 28 855 258 15 028 710

* Month-end valuation differences between Sygnia, the Unitising Agent and the Asset Managers 12 658 255 3 288 663

Total 3 831 427 615 3 802 552 295

Sharpe ratio: Excess return divided by the standard deviation of returns. This measures the excess return earned for every unit of

additional risk taken;

The performance of the investment managers is monitored over rolling 1, 3 and 5-year periods with specific focus on rolling 3-year periods.

However, it is recognised that over short periods such as a single year there may be a higher volatility of returns. The Board of Fund recognises

that if the Fund performs consistently above its benchmark, then it will be in a position to achieve its long-term objectives.



Downside risk: The standard deviation of only the negative returns;

Standard deviation: The dispersion of returns around the mean/average return. Standard deviation is used to measure the risk of the

returns;

Tracking error: The standard deviation of the difference in return between an active investment portfolio and its benchmark;

The performance of the various investment managers is measured against specific benchmarks for the purpose of attribution analysis and

overall value add. The Fund’s Investment Consultant advises the Board of Fund on the most appropriate benchmarks to use for each

investment manager as well as for the Fund as a whole. The benchmark of the asset classes (equities, fixed interest, property, alternative

strategies and others) is reviewed at least annually. Each investment manager is expected to choose an appropriate asset mix for multi-strategy

absolute return or multi asset class mandates. Investment results are calculated on a monthly basis and aggregated in order to consider

performance over longer periods. In addition, it is also important for the investment managers, to add value on a risk-adjusted basis. Various

risk measurement tools are used to analyse the risks taken by the investment managers to ensure that they do not take undue risks in striving to

achieve the Fund’s performance target.

Securities Lending Transactions: The Board utilises securities lending transactions as part of their investment strategy. The Board

ensures that the securities lending transactions are in compliance with the conditions as prescribed by the relevant Notice.

Efficiency ratio: Average return divided by the average risk.

Information ratio: Excess return divided by the tracking error. This ratio measures whether you are compensated for additional risk taken

more than the average market risk;

* This amount pertains to reconciling differences, between the asset managers' and the unitising agent's month-end valuations, due to timing

differences.

The Board of Fund monitors on a monthly basis the variation in the returns achieved by the various investment managers as well as the Fund as

a whole. The Fund’s IPS and the combination of investment managers are continuously monitored to ensure that the Board of Fund is

comfortable with the potential fluctuations in performance.

Risk analysis includes an array of risk/return measurements, amongst which the following are looked at on a continual basis:


17




3. MEMBERSHIP

Active Deferred Unclaimed

members pensioners Benefits

Prior year adjustments 3 0 -9 1 0

Additions 84 0 58 11 0

Transfers in 0 0 0 0 0

Transfers out 0 0 0 0 0

Withdrawals -54 0 -269 0 0

Retirements -55 0 0 0 n/a

Retrenchments 0 0 0 0 n/a

Deaths -9 0 0 0 n/a

Transfers (from) / to

deferred pensioners 0 0 0 0 0

Unclaimed benefits paid 0 0 0 0 0

4. ACTUARIAL VALUATIONS

Interim actuarial valuation

5. SURPLUS APPORTIONMENT

6. HOUSING LOAN FACILITIES

7. INVESTMENT IN PARTICIPATING EMPLOYERS

The Defined Contribution Section of the Fund was in a sound financial position with a funding level of 100% as at 30 June 2018. An average

investment return of 11.2% p.a. was allocated to Members' Shares in the DC Section.

0

The Fund does not hold any direct investments in participating employers.

16

The Fund has granted housing loan guarantees in terms of rule 17.4 of the Fund and Section 19(5) of the Pension Funds Act. Each guarantee is

secured by the membershare of the respective member. The loan is limited to 60% of the respective member’s membershare.

The surplus apportionment date of the Fund was 30 June 2003. The Fund has submitted a nil return as there was no surplus to be distributed.

The nil return was submitted to the Registrar and noted on 24 November 2005.

Adjustments:

1 432

The fund rules provide for the granting of housing loan guarantees

1463

In-Fund Living

Annuitants

Numbers at the end of the period

30/06/2018 (South African citizen)

16

0

The adjustments in respect of the active members relates to 3 reinstated members. The adjustment in respect of the active pensioners relates

to 4 resumed pensions, minus 12 pensioners who passed away, minus 1 deactivated pensioner. The 1 adjustment to the In-Fund Living

Annuitants is due to a member who retired at 30 June 2017, but whose option to become an In-Fund Living Annuitant has not yet been

exercised.

1 432

3705

0

4

Investments in terms of section19(4A) of the Act

Based on the interim actuarial valuation results as at 30 June 2018, the Defined Benefit Section of the Fund was in a sound financial position

with a surplus of R63.4 million and a funding level of 103.7% as at 30 June 2018.


30/06/2018

The 269 withdrawals in respect of the pensioners relates to the passing away of 114 origininal pensioners, 118 spouses and the de-activation of

37 children's pension that turned 21 years of age.

0

Numbers at the beginning of the period

01/07/2017

3 481

0

25

4

25 3 485

25

Pensioners

0


30/06/2018 (non - South African citizen)0

18




8. SIGNIFICANT MATTERS

-

-

-

-

9.

Not applicable.

10. SUBSEQUENT EVENTS

Not applicable.

F Suliman brought an application in the Gauteng Division of the High Court of South Africa to review the decision taken by Newshelf 922 (Pty)

Ltd to sell and transfer the Plessey Property to Atcofusion (Pty) Ltd. The application was heard on 29 November 2018.

8.3 Non-adjusting event

A PWC audit and an investigation by the FSB in 2009 revealed that the Fund’s investment advisors at the time had benefitted indirectly through

interests in third parties and had also earned undisclosed commissions from the Fund’s asset managers. The Fund’s former property managers

had also earned undue compensation. The Board of Fund instituted legal action against its former investment advisor and former property

managers to recover all undisclosed commissions and undue compensation. The investment advisors were liquidated and the Fund’s claim

was the subject of an insolvency proceeding. The matter relating to the Fund’s former property managers was referred to arbitration during

October 2015 with the arbitrator’s decision being in favour of the Fund. Settlement agreements were subsequently reached with all the parties.

Newshelf 922 (Pty) Ltd, the company’s holding entity being the Fund, received R2million in respect of its claim against the former property

managers which it paid as interest to the Fund as its sole shareholder. The Fund received an amount of R8 179 336 by 30 June 2018. A further

amount of R3.2m including interest is due to the Fund in regular instalments on or before 30 April 2019.

8.2 Regulation 28

The Board of Fund is aware of the emphasis of matter in the Regulation 28 audit report, relating to its direct investments in properties exceeding

the prescribed limits. The matter has been taken up comprehensively with the FSCA and it was explained that the exceeding of the limits was

not the result of the Fund investing in contravention of the limits. It resulted from a change in Regulation 28 requirements after the Fund had

already invested and consolidated its direct property interests in one company. The situation is monitored and regularly reported to the FSCA.

During the financial year under review, Newshelf 922 (Pty) Ltd received the following signed offers of sale:

ADDITIONAL DISCLOSURE

8.1 Recovery of undue commissions earned on the Fund's property transactions and asset management mandates

An amount of R79 975 000 for the shopping centre in Faerie Glen, Pretoria, held under title deed T34219/2009 (Atterbury Boulevard).

An amount of R149 000 000 for the multi-storey office block, Alexandra Road, Oude Molen Village, Pinelands, held under title deed

T8296/2009 (The Park).

An amount of R79 000 000 for the shopping centre in Oakdale, Cape Town, held under title deed T8294/2009 (The Bridge).

An amount of R47 000 000 for the property on Old Pretoria Main Road, Halfway House under title deed T34218/2009 (Plessey).

19


SCHEDULE F

STATEMENT OF NET ASSETS AND FUNDS AT 30 JUNE 2018

Notes 30 JUNE 2018 30 JUNE 2017

R R

ASSETS

Non-current assets 3 831 427 615 3 802 552 295

Investments (incl investment and owner occupied properties) 2 3 831 427 615 3 802 552 295

Current assets 15 472 466 29 141 332

Accounts receivable 4 1 493 607 1 897 235

Contributions receivable 12 4 130 590 768 741

Cash at bank 9 848 269 26 475 356

Total assets 3 846 900 081 3 831 693 628

FUNDS AND LIABILITIES

Members' funds and surplus account 3 791 101 170 3 743 963 106

Accumulated funds (DB - section) 1 776 181 370 1 859 076 527

Members' individual accounts (DC - section) 2 014 919 800 1 884 886 579

Total reserves 3 316 669 27 050 563

Reserves (DC - section) 21 3 316 669 27 050 563

Total funds and reserves 3 794 417 839 3 771 013 669

Non-current liabilities 0 0

Unclaimed benefits 9 0 0

Current liabilities 52 482 243 60 679 959

Benefits payable 8 47 688 880 56 974 792

Accounts payable 10 4 793 363 3 705 167

Total funds and liabilities 3 846 900 081 3 831 693 628

20


SCHEDULE G

STATEMENT OF CHANGES IN NET ASSETS AND FUNDS


A+B+C A B C

Notes Totals Member's share Accumulated Reserves Totals

30 JUNE 2018 value DC section funds DB section Refer note 21 30 June 2017

30 JUNE 2018 30 JUNE 2018 30 JUNE 2018

R R R R R

Contributions received and accrued 12 89 732 368 72 169 893 0 17 562 475 84 220 220

Reinsurance proceeds 8 907 670 0 0 8 907 670 6 893 227

Net investment income 13 325 906 720 0 325 167 030 739 691 113 024 024

Other income 13.1 1 532 504 0 1 532 504 0 1 718 884

Less: Death and/or disability re-insurance premiums -13 906 010 0 0 -13 906 010 -14 825 079

Administration costs 14 -14 220 316 -25 965 -9 122 141 -5 072 210 -13 796 301

Net income before benefits and transfers 397 952 938 72 143 928 317 577 394 8 231 616 177 234 975

Transfers and benefits -374 548 769 -172 760 831 -192 880 268 -8 907 670 -405 034 713

Transfers from other funds 5 0 0 0 0 0

Benefits 8 -374 548 769 -172 760 831 -192 880 268 -8 907 670 -405 034 713

23 404 169 -100 616 903 124 697 127 -676 054 -227 799 738

Funds and Reserves 3 771 013 669 1 884 886 579 1 859 076 527 27 050 563 3 998 813 408

Balance at beginning of period 3 771 013 669 1 884 886 579 1 859 076 527 27 050 563 3 998 813 408

Net total after benefits and transfers 3 794 417 839 1 784 269 676 1 983 773 654 26 374 509 3 771 013 669

Investment income allocated

Current members 0 213 350 034 -213 350 034 0 0

Surplus and Reserve Accounts 21 0 17 300 090 5 757 750 -23 057 840 0

Balance at end of period 3 794 417 839 2 014 919 800 1 776 181 370 3 316 669 3 771 013 669

21


SCHEDULE HA

NOTES TO THE FINANCIAL STATEMENTS


PRINCIPAL ACCOUNTING POLICIES

The following are the principal accounting policies used by the Fund. These policies have been applied consistently to all yearspresented, unless otherwise specifically stated.

PURPOSE AND BASIS OF PREPARATION OF FINANCIAL STATEMENTSThe financial statements are prepared in accordance with the Regulatory Reporting Requirements for Retirement Funds in SouthAfrica, the Rules of the Fund and the provisions of the Pension Funds Act in South Africa.

The financial statements are prepared on the historical cost and going concern bases, except where specifically indicated in theaccounting policies below:

FINANCIAL INSTRUMENTSA financial instrument is any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrumentof any other entity. A financial asset or a financial liability is recognised when its contractual arrangements become binding and isderecognised when the contractual rights to the cash flows of the instrument expire or when such rights are transferred in atransaction in which substantially all risks and rewards of ownership of the instrument are transferred.

Financial instruments carried on the statement of net assets and funds, include cash and bank balances, investments, housing loans,receivables and accounts payable.

Financial instruments are recognised on acquisition using trade date accounting, which includes transaction costs. Upon initialrecognition financial instruments are designated at fair value through the statement of changes in net assets and funds as the assetsor liabilities are managed, evaluated and reported internally on a fair value basis and/or the designation eliminates or significantlyreduces an accounting mismatch which would otherwise arise.

Subsequent to initial recognition, these instruments are measured as set out below.

INVESTMENTSInvestments are classified at fair value through the statement of changes in net assets and funds and are measured at fair value.

Loans (other than housing loans) – loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determined payments that are not quoted in an active marketother than those that the Fund intends to sell in the short term or that is designated as at fair value through the statement of changesin net assets and funds. Loans and receivables are measured at fair value.

DebenturesDebentures comprise investments in listed and unlisted debentures.

Listed debenturesThe fair value of listed debentures traded on active liquid markets is based on regulated exchange quoted ruling closing prices at theclose of business on the last trading day on or before the statements of net assets and funds date.

Unlisted debenturesUnlisted debentures are financial assets with fixed or determinable payments and fixed maturity. Fair value is estimated using pricingmodels or by applying appropriate valuation techniques such as discounted cash flow analysis or recent arm’s length markettransactions in respect of the unlisted debenture.

Bills and bondsBills and bonds comprise investments in government or provincial administration, local authorities, participating employers,subsidiaries or holding companies and corporate bonds.

Listed bills and bondsThe fair value of listed bills and bonds traded on active liquid markets is based on regulated exchange quoted ruling closing prices atthe close of business on the last trading day on or before the statements of net assets and funds date.

Unlisted bills and bondsA market yield is determined by using appropriate yields of existing bonds and bills that best fit the profile of the instrument beingmeasured and based on the term to maturity of the instrument. Adjusting for credit risk, where appropriate, a discounted cash flowmodel is then applied, using the determined yield, in order to calculate the fair value.

Investment propertyA property held for long-term yields or capital appreciation that is not occupied by the fund is classified as investment property.Investment properties comprise investments in commercial properties, residual properties, industrial properties and hospitals.Investment properties are carried at fair value. Investment property includes investment property companies whose sole or mainunderlying assets are investment properties.

22


SCHEDULE HA

NOTES TO THE FINANCIAL STATEMENTS - Continued


Investment properties are reflected at valuation on the basis of open-market fair value at the statement of net assets and funds date.In the open-market, where valuation information cannot be reliably determined; the fund uses alternative valuation methods such asdiscounted cash flow projections or recent prices on active markets for transactions of similar nature. The fair values are theestimated amounts for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in anarm’s length transaction.

The open-market fair value is determined annually by independent professional valuators.

Changes in fair value are recorded by the Fund in the statement of changes in net assets and funds.

EquitiesEquity instruments consist of equities with primary listing on the JSE, equities with secondary listing on the JSE, foreign listed equitiesand unlisted equities.

Equity instruments designated as fair value through the statement of changes in net assets and funds by the Fund are initiallyrecognised at fair value on trade date.

Listed equitiesEquity instruments are subsequently measured at fair value and the fair value adjustments are recognised in the statement ofchanges in net assets and funds. The fair value of equity instruments with standard terms and conditions and traded on active liquidmarkets is based on regulated exchange quoted ruling closing prices at the close of business on the last trading day on or before thestatements of net assets and funds date.

Unlisted equitiesIf a quoted closing price is not available i.e. for unlisted instruments, the fair value is estimated using pricing models, or by applyingappropriate valuation techniques such as discounted cash flow analysis or recent arm’s length market transactions in respect ofequity instruments.

Preference sharesListed preference sharesThe fair value of listed preference shares traded on active liquid markets is based on regulated exchanged quoted ruling closingprices at the close of business on the last trading day on or before the statement of net assets and funds date.

Unlisted preference sharesIn respect of unlisted preference shares, the fair value is determined by applying appropriate valuation techniques such as discountedcash flow analysis or recent arm’s length market transactions in respect of preference shares.

Insurance policiesNon - linked insurance policiesNon - linked insurance policies with insurers are valued on the basis of the policyholder’s retrospective contribution to assets (i.e.accumulation at the actual investment return achieved on gross premiums.)

Linked or market-related policiesIf the policy is unitised, the value is equal to the market value of the underlying units. Other linked or market-related policies arevalued at the market value of the underlying assets for each policy, in line with the insurer’s valuation practices.

Collective investment schemeInvestments in collective investment schemes are valued at fair value which is the quoted unit values, as derived by the collectiveinvestment scheme manager with reference to the rules of each particular collective investment scheme, multiplied by the number ofunits.

Derivative Market InstrumentsDerivative market instruments consist of options, equity linked instruments, futures/forwards – SAFEX/foreign, currency swaps andinterest rate swaps.

Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. Fair values are obtained from regulated exchange quoted market prices in active markets, includingdiscounted cash flow models and option pricing models, as appropriate. All derivatives are carried as assets when fair value ispositive and as liabilities when fair value is negative. The Fund does not classify any derivatives as hedges in a hedging relationship.

The best evidence of the fair value of a derivative at initial recognition is the transaction price (i.e. the fair value of the considerationgiven or received) unless the fair value of that instrument is evidence by comparison with other observable current markettransactions in the same instrument (i.e. without modification or repackaging) based on a valuation technique whose variables includeonly data from observable markets.

23


SCHEDULE HA



Investment properties are reflected at valuation on the basis of open-market fair value at the statement of net assets and funds date.OptionsOptions are valued using option pricing modules.

Futures/forwardsThe fair value of publicly traded derivatives is based on quoted closing prices for assets held or liabilities issued, and current offerprices for assets to be acquired and liabilities held.

SwapsSwaps are valued by means of discounted cash flow models, using the swap curve from a regulated exchange (BESA) to discountfixed and variable rate cash flows, as well as to calculate implied forward rates used to determine the floating interest rate amounts.The net present values of the fixed leg and variable leg of the swap are offset to calculate the fair value of the swap.

Investment in participating employersInvestments in participating employer(s) comprise loans, investments in listed and unlisted equities and other investments. Refer torespective policies for the basis of accounting. Currently the Fund does not hold any investments in participating employers.

Hedge fundsHedge fund investments are designated as fair value through the statement of changes in net assets and funds by the Fund and areinitially recognised at fair value on trade date.

Listed hedge fundsHedge fund investments are subsequently measured at fair value and the fair value adjustments are recognised in the statement ofchanges in net assets and funds. The fair value of hedge fund investments traded on active liquid markets is based on regulatedexchange quoted ruling closing prices at the close of business on the last trading day on or before the statement of net assets andfunds date.

Unlisted – where investor (fund) has no right to the underlying instrument - investment partnersHedge fund investments are subsequently measured at fair value and the fair value adjustments are recognised in the statement ofchanges in net assets and funds. The value of the financial asset owned by the Fund is measured in relation to the percentageholdings by each investment partner in the total fair value of the hedge fund. The fair value is estimated using pricing models or byapplying appropriate valuation techniques such as discounted cash flow analysis or recent arm’s length market transactions inrespect of hedge fund instruments.

Unlisted – where investor (fund) has a right to the underlying instrumentHedge fund investments are subsequently measured at fair value and the fair value adjustments are recognised in the statement ofchanges in net assets and funds. As the Fund has the right to the underlying instrument, a look through principle is applied, and theunderlying instruments are separately measured and disclosed. The fair value is estimated using pricing models or by applyingappropriate valuation techniques such as discounted cash flow analysis or recent arm’s length market transactions in respect of thehedge fund instrument.

CASH AND CASH EQUIVALENTSCash and deposits comprise cash in hand, deposits held at call with banks, and other short-term highly liquid investments withoriginal maturities of three months or less. Cash and cash equivalents are measured at fair value.

RESERVESReserve accounts comprise particular amounts of designated income and expenses as set out in the Rules of the Fund and arerecognised in the year in which such income and expenses accrue to the Fund.

SURPLUSSurplus apportionments are recognised on the date of approval of the surplus apportionment scheme by the Registrar. Surplus ismeasured at the values contained in the approved surplus apportionment scheme, adjusted for investment return or late paymentinterest until date of approval of the scheme as determined by the Rules of the Fund.

TRANSFERS TO AND FROM THE FUNDSection 14 and 15B transfers to or from the Fund are recognised on the date of approval of the scheme/arrangement of transfer ofbusiness by the Financial Services Board, as contained in the approval certificate from the Registrar.

Individual transfers (Section 13A(5) transfers) are recognised on the earlier of receipt of the written notice of transfer (Recognition ofTransfer) or receipt of the actual transfer value.

All the above transfers are measured at the values as per the section 14 application or the value of the transfer at effective date oftransfer adjusted for investment return or late payment interest as guided by the application.

ACCOUNTS RECEIVABLEAccounts receivable are financial assets measured initially at fair value and subsequently measured at amortised cost using theeffective interest rate method, less any allowance for impairment.

ACCOUNTS PAYABLEAccounts payable are financial liabilities measured initially at fair value, net of transaction costs that are directly attributable to theliability and subsequently measured at amortised cost using the effective interest method.

24


SCHEDULE HA



Investment properties are reflected at valuation on the basis of open-market fair value at the statement of net assets and funds date.IMPAIRMENTFinancial assets carried at amortised costThe Fund assesses at each statement of net assets and funds date whether there is objective evidence that a financial asset or groupof financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only ifthere is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset(a loss event) and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assetsthat can be reliably estimated.

The Fund first assesses whether objective evidence of impairment exists individually for financial assets that are individuallysignificant. If the Fund determines that no objective evidence of impairment exists for an individually assessed financial asset,whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectivelyassesses them for impairment.

If there is objective evidence that an impairment loss has been incurred on loans and receivables or held to maturity investmentscarried at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the presentvalue of the estimated future cash flow (excluding future credit losses that have been incurred) discounted at the financial asset’soriginal effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the statementof changes in net assets and funds. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is thecurrent effective interest rate determined under contract. As a practical expedient, the fund may measure impairment on the basis ofan instrument’s fair value using an observable market price.

If, in a subsequent year, the amount of the impairment loss decreases and the decrease can be related objectively to an eventoccurring after the impairment was recognised (such as improved credit rating), the previously recognised impairment loss is reversedin the statement of changes in net assets and funds.

Impairment of loans and receivablesA provision for impairment of loans and receivables is established when there is objective evidence that the fund will not be able tocollect all amounts due according to their original terms.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETSProvisionsProvisions are recognised when the fund has a present legal or constructive obligation as a result of past events, for which it isprobable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of theobligation can be made.

The amount recognised as a provision is the best estimate of the expenditure require to settle the present obligation at the statementof net assets and funds date, as determined by the judgment of the Board of Fund.

Contingent liabilitiesA contingent liability is not recognised in the statement of net assets and funds, but disclosed in the notes to the financial statements,unless the possibility of an outflow of resources embodying economic benefits is remote.

Contingent assetsA contingent asset is not recognised in the statement of net assets and funds, but disclosed in the notes to the financial statementswhen an inflow of economic benefits is probable.

CONTRIBUTIONSContributions are measured at the fair value of the consideration received or receivable.

Contributions are accrued and recognised as income in accordance with the actuarial recommendations, and the Rules of theretirement fund. Contributions received are apportioned between retirement funding and funding for risk and other expenses. Theapportionment is governed by the rules of the fund and actuarial recommendations.

Voluntary contributions are recognised when they are received from annual payments or accrued where monthly recurring paymentsare made.

Any contributions outstanding at the end of the reporting year are recognised as a current asset – contribution receivable. Anycontributions received in advance at the end of the reporting year are recognised as a current liability – accounts payable.

Contributions transferred from surplus accountsContributions transferred from surplus accounts include any contributions that are funded from the surplus accounts and relates to acontribution holiday after a surplus apportionment has been approved and the corresponding approval of the utilisation of theemployer and member surplus accounts.

Interest charged on late payment of contributionsCompound interest on late payments or unpaid amounts and values shall be calculated for the year from the first day of the monthfollowing the expiration for the year in respect of which the relevant amounts or values are payable or transferable until the date ofreceipt by the Fund.

25


SCHEDULE HA



Investment properties are reflected at valuation on the basis of open-market fair value at the statement of net assets and funds date.BENEFITSBenefits payable, pensions payable and in-fund living annuities payable are measured in terms of the Rules of the Fund.

Benefit payments, monthly pension payments and monthly in-fund living annuities payments are recognised as an expense whenthey are due and payable in terms of the Rules of the Fund. Any benefits not paid at the end of the reporting year are recognised as acurrent liability – benefits payable / due.

Reinsurance proceeds are measured at the fair value of the consideration received or receivable and are accrued and recognised asincome at the same time as the recognition of the related claim.

INVESTMENT INCOMEDividendsDividend income is recognised in the statement of changes in net assets and funds when the right to receive payment is established –this is the last date to trade for equity securities. For financial assets designated at fair value through the statement of changes in netassets and funds, the dividend income forms part of the fair value adjustment.

InterestInterest income in respect of financial assets held at amortised cost is accounted for in the statement of changes in net assets andfunds using the effective interest method.

Collective investment schemes’ distributionDistributions from collective investment schemes are recognised when the right to receive payment is established.

Income from policies with insurance companiesIncome from investment policies from insurance companies is included in the adjustment to the movement of the financial asset.

Interest on late payment of contributions and / or loans and receivablesInterest on late payment of contributions, surplus improperly utilised and / loans and receivables is accounted for in the statement ofchanges in net assets and funds using the effective interest method.

Adjustment to fair valueGains or losses arising from changes in the fair value of financial assets at fair value through the statement of changes in net assetsand funds are presented in the statement of changes in net assets and funds in the year in which they arise.

Expenses incurred in managing investmentsExpenses in respect of the management of investments are recognised as the service is rendered.

ADMINISTRATION EXPENSESExpenses incurred in the administration of retirement funds are recognised in the statement of changes in net assets and funds in thereporting year to which they relate.

In the event that an expense has not been paid at the end of a reporting year the liability will be reflected in the accounts payablenote. If the expense was paid in advance or overpayment occurred, the applicable amount will be disclosed under the accountsreceivable note.

ACCOUNTING POLICIES, CHANGING IN ACCOUNTING ESTIMATES AND ERRORSThe Fund applies adjustments arising from changes in accounting policies and errors prospectively. The adjustment relating to achange in the accounting policy or error is therefore recognised in the current and future years affected by the change.

RELATED PARTIESIn considering each possible related-party relationship, attention is directed to the substance of the relationship and not merely thelegal form.

If there have been transactions between related parties, the Fund shall disclose the nature of the related party relationship as well asthe following information for each related party relationship:

-The amount of the transactions;

-The amount of outstanding balances;

-Their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in thesettlement;

-Details of guarantees given or received;

-Provisions for doubtful debts related to the amount of outstanding balances; and

-The expense recognised during the year in respect of bad or doubtful debts due from related parties.

26




2. Investments

A B A+B

2.1 Investment summary Total Total Total Total Fair value Amortized cost

Local Foreign 30 June 2018 30 June 2017 30 June 2018 30 JUNE 2018

R R R R R

Cash 93 435 975 -5 054 847 88 381 128 178 562 805 88 381 128 0

Commodities 6 782 066 0 6 782 066 8 286 737 6 782 066 0

Debt Instruments including Islamic debt instruments 1 111 373 219 9 131 615 1 120 504 835 1 230 977 827 1 120 504 835 0

Equities(including demutualization shares)** 1 326 954 788 3 470 648 1 330 425 436 1 410 896 506 1 330 425 436 0

Insurance policies 1 101 208 131 116 270 132 217 478 119 162 194 132 217 478 0

Collective Investment Schemes 198 459 820 739 818 285 938 278 106 655 250 516 938 278 106 0

Hedge Funds 176 976 306 0 176 976 306 172 593 039 176 976 306 0

Private Equity Funds 19 543 679 0 19 543 679 20 905 990 19 543 679 0

Derivative market instruments 0 0 0 0 0 0

Other assets 18 318 583 0 18 318 583 5 916 682 18 318 583 0

Total 2 952 945 644 878 481 971 3 831 427 615 3 802 552 295 3 831 427 615 0

**

- Investment in Newshelf 922 (Pty) Ltd

- Investment In Cape Joint Properties (Pty) Ltd

- Delta Property Fund

The following unlisted equites are included:

27




3.2 Housing loan guarantees

●

●

●

4. Accounts receivable

30 June 2018 30 June 2017

R R

Administration fees 0 6 496

Late payment interest 13A 38 640 34 372

Reinsurance recoveries 1 266 789 1 695 984

Scrip lending fees 96 695 61 538

Statutory allowances 1 191 2 795

VAT refund 76 006 93 746

Other 14 286 2 304

Total 1 493 607 1 897 235

The Fund has granted guarantees to First National Bank for loans granted to 355 (2017:404) members of the Fund.The guarantees amounted to R38 981 518

(2017:R39 592 239).

The total housing loan guarantee facility available to the Fund is R120 000 000.00 and is renewable on 01/05/2019.

The amount of the guarantee may not exceed 60% of the benefit that a member would receive in terms of the Rules of the Fund and section 19(5) of the Pension

Funds Act if he or she had to terminate membership of the Fund voluntarily.

28




8. Benefits

A B C D E A+B+C-D-E

Benefits due Benefits for Return Payments Transferred Benefits due

8.1. Benefits - current members 30 June 2017 30 June 2018 allocated to unclaimed 30 June 2018

benefits

R R R R R R

Monthly pension 6 376 676 192 832 865 0 194 753 500 0 4 456 041

Lump sums on retirements 18 299 988 79 420 642 216 350 87 066 212 0 10 870 768

Full benefit 18 299 988 79 420 642 216 350 87 066 212 0 10 870 768

Lump sums before retirement 31 531 567 90 370 478 1 263 469 91 384 641 0 31 780 874

Disability benefits paid by Fund 164 386 864 370 16 372 872 981 0 172 147

Death benefits 22 676 576 17 745 459 1 187 561 18 938 821 0 22 670 775

Withdrawals 8 690 605 71 760 649 59 536 71 572 838 8 937 952

Other 766 561 10 444 964 0 10 630 328 0 581 197

Defaults - divorce grants 766 561 8 520 657 0 8 706 021 0 581 197

Monthly in-fund living annuities 0 1 924 308 0 1 924 308 0 0

Total (8.1) 56 974 792 373 068 950 1 479 819 383 834 681 0 47 688 880

Benefits for 30 June 2018 373 068 950

Return allocated (C) 1 479 819

Statement of changes in net assets and funds 374 548 769

29




9. Unclaimed benefits

30 June 2018 30 June 2017

R R

At the beginning of the period 0 0

Transferred from benefits payable 0 0

Adjustments 0 5 235

Investment income allocated 0 1 938

Less: 0 7 172

Tracing expenses 0 0

Administration expenses 0 0

Other expenses 0 0

Benefits paid 0 0

Transferred to unclaimed benefits fund 0 7 172

Balance at the end of the period 0 0

10. Accounts payable

30 June 2018 30 June 2017

R R

Audit fees 396 110 357 823

Administration fees 634 893 596 907

Reinsurance premiums 1 389 511 1 253 173

Custodian fees 21 371 26 121

Communication fees 160 418 191 344

Investment management fees Prescient TAA 57 585 53 776

Legal fees 0 18 810

SARS 1 683 121 1 007 928

Management expenses 11 041 0

Post retirement medical aid 0 14 822

Sygnia management fees 72 212 71 130

Sygnia Reg28 reporting fees 36 106 35 565

GraySwan investment consulting fees 302 928 0

Consulting fees 0 70 680

Metrofile 6 032 0

Consumption cost 6 112 0

Other 15 922 7 088

Balance at the end of the period 4 793 363 3 705 167

30



Arrear Towards Towards Contributions Arrear

12. Contributions 30 June 2017 retirement reinsurance received 30 JUNE 2018

and expenses

R R R R R

Member contributions - received and accrued 256 247 29 857 370 0 28 736 753 1 376 863

Employer contributions received and accrued 512 493 41 923 355 17 562 475 57 244 597 2 753 726

Additional voluntary contributions - members 0 389 168 0 389 168 0

Other (provide details)

Total 768 741 72 169 893 17 562 475 86 370 519 4 130 590

Towards retirement 72 169 893

Towards reinsurance and expenses 17 562 475

Statement of changes in net assets and funds 89 732 368

13. Net investment income

30 June 2018 30 June 2017

R R

Income from investments

Dividends 47 299 309 35 415 824

Interest 97 744 117 107 613 815

Collective investment schemes distribution 0 0

Interest on late payment of contributions 5 185 16 830

Adjustment to fair value

Adjustment to fair value (realized income) 2 423 854 263 914 806

Adjustment to fair value (unrealized income) 195 607 870 -275 822 244

343 080 335 131 139 031

Less:Expenses incurred in managing investments -17 173 615 -18 115 007

Total 325 906 720 113 024 024

13.1 Other income

30 June 2018 30 June 2017

R R

Bad debts recovered 0 0

Other 1 532 504 1 718 884

Management fee rebates, WHT recoveries and miscellaneous 380 528 863 394

Litigation recoveries (refer to paragraph 8.1 of the Report of the Board of Fund) 350 000 750 000

Scrip lending fees 801 976 105 490

Total 1 532 504 1 718 884

31




14. Administration expenses Notes 30 June 2018 30 June 2017

R R

Actuarial fees 443 197 385 000

Administration fees 5 105 002 4 664 592

Audit fees

Audit services 379 010 357 823

Other 17 100 0

Consultancy fees 643 305 623 807

Fidelity Insurance 221 695 209 695

Levies 104 126 105 629

Other (provide detail):

864 497 857 191

Bank charges 165 914 183 763

Call centre services 363 523 435 844

Communication and client service 593 182 580 852

Document storage fees 69 368 59 047

Legal fees 123 867 586 586

Miscellaneous 49 037 15 037

Post Retirement Medical Aid 45 518 42 390

Subscriptions 32 763 28 420

Support services (IT & technical) 198 002 207 162

Postage 353 331 342 566

Furniture & Equipment 106 289 0

Office expenses 102 575 12 333

Operating lease payments 204 346 140 029

Principal Officer expenses 14.3 1 182 205 987 889

Staff expenses 14.2 0 0

Secretarial fees 733 605 780 605

Board of Fund expenses 14.1 2 118 859 2 190 041

Total 14 220 316 13 796 301

14.1. Board of Fund expenses 30 June 2018 30 June 2017

R R

Remuneration 954 223 915 166

Meeting allowances 612 737 678 059

Expenses (subsistence & travel) 423 529 460 548

Other payments

- AGM 20 291 17 734

- Catering 25 516 22 414

- Training 53 056 65 473

- Sundry (I-pad usage and departing trustee awards) 29 507 30 647

Total 2 118 859 2 190 041

14.3. Principal Officer expenses 30 June 2018 30 June 2017

R R

Remuneration 1 176 023 979 869

Other payments 6 182 8 020

Total 1 182 205 987 889

Ancillary services (human resources, trustee management,

personal assistant to PO, electronic storage & scanning)

32




16. Financial liabilities and provisions

16.2.3. Contingent asset

17. Risk management policies

●

●

●

● Cash flow risk

● Currency risk

The solvency of the Fund is assessed formally on an annual basis as part of interim actuarial valuations, and

once every three years as part of the statutory valuation of the Fund.

Cash flow risk is the risk that future cash flows associated with monetary financial instruments will fluctuate

in amount. In the case of a floating rate debt instrument, for example, such fluctuations result in a change in

the effective interest rate of the financial instrument, usually without a corresponding change in its fair value.

Currency risk is the risk that the value of an instrument will fluctuate in Rands owing to changes in foreign

exchange rates. The Fund’s exposure to currency risk is mainly in respect of foreign investments made on

behalf of members of the Fund for the purpose of seeking desirable international diversification of

investments.

Solvency risk is the risk that the investment returns on assets will not be sufficient to meet the Fund's

contractual obligations to members.

Continuous monitoring by the Board and the Fund's actuary takes place to ensure that appropriate assets

are held where the Fund's obligation to members are dependant upon the performance of specific portfolio

assets and that a suitable match of assets exist for all other liabilities.

Credit risk

Credit risk is the risk that a counter-party to a financial instrument will fail to discharge an obligation, and

cause the Fund to incur a financial loss. The Board monitors receivable balances on an on-going basis with

the result that the Fund’s exposure to bad debts is not significant. An appropriate level of provision is

maintained.

Legal risk

Legal risk is the risk that the Fund will be exposed to contractual obligations for which no provision has been

made. Legal representatives of the Fund monitor the drafting of contracts to ensure that rights and

obligations of all parties are clearly set out.

Refer to paragraph 8.1 of the Report of the Board of Fund for the nature of the contingent asset with a value

of R3.2 million plus interest that is due to the Fund.

The Board of Fund has overall responsibility for the establishment and oversight of the Fund’s risk management

policies.

The Board of Fund monitors this aspect of the Fund’s investments and limits it to SARB limits of total assets.

Reputable financial institutions are used for investing and cash handling purposes. The Trustees have a

credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The credit risk

associated with the fund’s loan receivables and arrear contributions is monitored by the Trustees.

The Board of Fund monitors cash flows by using monthly cash flow projections. The Fund's cash-flow

requirements are maintained by the administrator and amounts disinvested from (or invested in) the

investment portfolios when the Fund has cash-flow requirements (or excess cash to invest).

The Fund’s risk management policies are established to identify and analyse the risks faced by the Fund, to set

appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and

systems are reviewed regularly to reflect changes in market conditions and the Fund’s activities.

Solvency risk

33




●

●

●

18.

19.

Related party Relationship Description Transactions

Cape Joint Properties (Pty) Ltd 100% Shareholding Loan R 5 660 328

The following Board members of the Fund are ex-officio directors of related parties:

- I du Toit Cape Joint Properties (Pty) Ltd (resigned 30/06/2018)

- JD Venter Cape Joint Properties (Pty) Ltd (ceased 30/11/2016)

- D Carstens Cape Joint Properties (Pty) Ltd (appointed 01/01/2017)

- HF Botha Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- JDB van der Merwe Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- M van Zyl Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- JAH van den Berg Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- WR Meiring Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- PW Esterhuizen Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- S Philander Cape Joint Properties (Pty) Ltd (appointed 05/02/2018)

- J Jacobs Cape Joint Properties (Pty) Ltd (appointed 01/08/2018)

- I du Toit Newshelf 922 (Pty) Ltd (resigned 01/03/2018)

- JD Venter Newshelf 922 (Pty) Ltd (ceased 30/11/2016) *

- D Carstens Newshelf 922 (Pty) Ltd (appointed 01/12/2016)

- S Philander Newshelf 922 (Pty) Ltd (appointed 27/03/2018)

* Appointed as independent director for the period 01/12/2016 - 30/11/2017.

Promised retirement benefits

Investments in equities are valued at fair value and therefore susceptible to market fluctuations. Investments

are managed with the aim of maximising the Fund’s returns while limiting risk to acceptable levels within the

framework of statutory requirements.

During the current financial period, fees of R1 182 205 were paid to the Principal Officer.

Service provider, Consulting, Investment and Actuarial fees

Administration fees of R5 105 002 were paid to the administrator of the Fund, Verso Financial Services (Pty) Ltd.

Continuous monitoring takes place to ensure that appropriate assets are held where the liabilities are

dependent upon the performance of specific portfolios of assets and that a suitable match of assets exists

for all non–market related liabilities.

The actuarial present value of promised retirement benefits, distinguishing between vested benefits and non-vested

benefits is set out in the report of the valuator.

Related party transactions

Principal officer fees

Liquidity risk

Market risk

Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market

prices of market interest rates. The investment committee monitors the market risk. The implementation of

an optimal investment strategy for the Fund requires investment in instruments that are subject to market

volatility, notably equities, bonds and related derivative instruments which are used to hedge market risk and

alter the effective asset allocation in the investment portfolios. Derivatives are not used for speculation or

for gearing of positions. An important part of this investment strategy is diversification of the Fund's assets

across different asset classes for diversification benefits, which by itself is a way of managing the market risk

associated with any single asset class.

Investments

Liquidity risk is the risk that the Fund will encounter difficulty in raising funds to meet commitments

associated with financial instruments. The Fund’s liabilities are backed by appropriate assets and it has

significant liquid resources.

34




Active members of the Fund:

- M Van Zyl

In-fund living annuitants of the Fund:

- DL Carstens

Pensioners of the Fund:

- PW Esterhuizen

- JAH van den Berg

- JDB van der Merwe

–

–

The participating employers made contributions to the Fund for members’ retirement and towards the Fund’s

expenses to the value of R41 923 355 and R17 562 475 respectively (Refer note 12 of the financial

statements).

Premiums to unapproved policies amounting to R4 716 488 and funeral premiums amounting to R947 703

were settled against the contributions towards risk and expenses (Refer note 12 of the financial statements).

Board of Fund

The following Board members of the Fund make contributions to the Fund and receive benefits from the Fund:

The following transactions between the participating employers and the Fund occurred during the period:

35




21. Surplus and reserve accounts Total Contingency Risk

reserve reserve reserve

accounts

R R R R

Opening balance - 1 July 2017 27 050 563 10 058 783 0 16 991 780

Employer surplus on appointment 0 0 0 0

Member surplus apportionment 0 0 0 0

Benefit enhancements - current members 0 0 0 0

27 050 563 10 058 783 0 16 991 780

Contributions received and accrued 17 562 475 17 562 475 0 0

Reinsurance proceeds 8 907 670 0 8 907 670 0

Net investment income 739 691 739 691 0 0

Other income 0 0 0 0

Less:

Administration expenses -5 072 210 -5 072 210 0 0

Reinsurance premiums -13 906 010 -13 906 010 0 0

Net income before transfers and benefits 35 282 179 9 382 729 8 907 670 16 991 780

Transfers and benefits

Benefits (incl pensions & LPI) -8 907 670 0 -8 907 670 0

Transfers from other funds 0 0 0 0

Transfers to other funds 0 0 0 0

Net income after transfers and benefits 26 374 509 9 382 729 0 16 991 780

Transfer between reserve accounts 0 -183 931 0 183 931

Net investment return (incl int allocated active members) -23 057 840 0 0 -23 057 840

Closing balance - 30 June 2018 3 316 669 9 198 798 0 -5 882 129

Other (Processing

error reserve)

36


1. Net value of assets available for benefits: R3 794 417 839 (a)

2.

- Pensioner Account R 1 776 181 370

- DC Section R 2 018 236 469

3. The actuarial present value of promised retirement benefits: R 3 681 969 960 allocated as follows: (b)

DB Section pensioner liability R 1 667 050 160 (includes provision for

pensioner expenses)

DC Section Members' Shares R 1 970 695 350

DC Section Living Annuitant account R 44 224 450

4. Reserve account balances:

Contingency Reserve Account R 9 198 798

Processing Error Reserve Account ( R 5 882 129)

Solvency Reserve R 45 708 024

5.

5.1 Liabilities

The active member liability was determined as the sum of the active Members' Shares.

5.2 Solvency Reserve

6.

Valuation basis 30 June 2018 30 June 2017

Interest rate 9.10% p.a. 8.90% p.a.

Interest rate net of pension increases 5.14% p.a. 4.91% p.a.

Inflation risk premium 0.50% p.a. 0.50% p.a.

Price inflation 5.80% p.a. 5.85% p.a.

Mortality post retirementPA90 -2 years and

1.5% p.a. Improvement.

PA90 -2 years and


Mortality of ill-health pensionersPA90 +8 years and


PA90 +8 years and


Base year for mortality improvement 2018 2017

Husbands age greater than wife 4 years 4 years

Proportion married:

- pensioners qualifying for a spouse's pension 60% 60%

SCHEDULE HB

REPORT OF THE VALUATOR

Particulars of financial condition of the Fund as at 30 June 2018

The actuarial value of the net assets available for benefits, for the purposes of comparison with the actuarial present value

of promised retirement benefits: R3 794 417 839 allocated as follows:

Details of the valuation method adopted (including that in respect of any contingency reserve) and details of any changes

since the previous summary of report:

Pensioner liabilities were determined as the present values of the projected future pension payments using the valuation

assumptions. Allowance is made for future pension increases of 65% of assumed future price inflation.

The Living Annuitant liability was determined as the sum of the Living Annuity individual account balances.

The Solvency Reserve has been determined on a discontinuance matching approach based on the principles outlined in PF

Circular 117. The solvency reserve is determined as the value of the liabilities on the discontinuance basis less the value of

the liabilities on the valuation basis, subject to a minimum of zero. The Solvency Reserve is applicable in respect of the

defined benefit pensioner liabilities only.

Details of the actuarial assumptions adopted (including that in respect of any contingency reserve) and details of any

changes since the previous summary report.

The valuation basis reflects nominal and index linked government bond market yields as at the valuation date.

37

Solvency Reserve basis 30 June 2018 30 June 2017

Interest rate 8.85% p.a. 8.65% p.a.

Interest rate net of pension increases 4.90% p.a. 4.67% p.a.

Price inflation 5.80% p.a. 5.85% p.a.

Mortality improvement post retirement 1.75% p.a. 1.75% p.a.

Other assumptions Per funding basis Per funding basis

7. Any other particulars deemed necessary by the valuator for the purposes of this summary.

7.1 Financial condition 30 June 2018 30 June 2017

DB Section R 000 R 000

Pensioner Account

Value of assets 1 776 181 1 859 077

Pensioner liabilities (1 667 050) (1 762 159)

Solvency Reserve ( 45 708) ( 49 929)

Surplus 63 423 46 989

Funding level (Pensioner Account) 103.7% 102.6%

7.2 Financial Condition 30 June 2018 30 June 2017

DC Section Return allocated: Return allocated:

11.16% p.a. 3.62% p.a.

R 000 R 000

Value of assets 2 018 237 1 911 937

Members' Shares (1 970 695) (1 867 824)

Living Annuitant liabilities ( 44 225) ( 17 062)

Contingency Reserve Account ( 9 199) ( 10 059)

Processing Error Reserve Account 5 882 ( 16 992)

Surplus 0 0

Funding level (DC Section) 100.0% 100.0%

8.

8.1 DB Section

8.2 DC Section

Prepared by:

Sean Neethling BSc CFP®

FIA FASSA

VALUATOR

Date: 14 December 2018

I recommend that the negative balance of the Processing Error Reserve Account of -R5.882 million is allocated to

Members' Shares and Living Annuitant accounts.

A pension increase of 3.3% was granted effective 1 January 2018. A pensioner bonus of 50% of monthly pension was

granted in December 2017.

Statement as to whether the Fund was in a sound financial condition for the purposes of the Pension Funds Act, 1956.

The Pensioner Account was in a sound financial condition with a surplus of R63.4 million and a funding level of 103.7% as

at 30 June 2018.

The DC Section of the Fund was in a sound financial condition with a funding level of 100% as at 30 June 2018.

8.3 Fund overall

The Fund overall was in a sound financial condition with a surplus of R63.4 million and a funding level of 101.7%.

Fellow of the Actuarial Society of South Africa

In my capacity as the Valuator of the Fund and as an employee of Momentum Consultants & Actuaries (Pty) Ltd.

The Actuarial Society of South Africa is the primary regulator in my professional capacity.

38

REMARKS

For the purposes of this summary of report:

(a)

(b) The actuarial present value of promised retirement benefits means:

i.

ii.

iii.

iv.

v. Any other accrued liability.

(c)

The actuarial liabilities in respect of past service benefits DB Deferred Members, with due allowance for increases in

pensions at rates consistent with the pension increase policy of the Fund;

The actuarial liabilities in respect of pensions in course of payment, including any contingent annuity payable on the death

of a pensioner, with due allowance for increases at rates consistent with the pension increase policy of the Fund.

Vested benefits are benefits, the right to which, under the conditions of the fund, are not conditional upon continued

employment.

Net assets available for benefits are the fair value of the assets of the Fund less liabilities other than the actuarial present

value of promised retirement benefits.

The actuarial liabilities in respect of past service benefits of active members;

The actuarial liabilities in respect of past service benefits of Living Annuitants;

39


SCHEDULE IA - INVESTMENT SCHEDULE


Note M1 Note M2 Note L

R R R R R R R R % R R

Cash (including cash at bank) A 98 229 397 67 819 841 799 169 0 166 848 407 168 873 348 -2 024 942 0 -2 024 942 -1.21% 0 166 848 407

Commodities B 6 782 066 459 343 0 0 7 241 409 7 241 409 0 0 0 0.00% 0 7 241 409

Housing Loans 0 0 0 0 0 0 0 0 0 0.00% 0 0

C 1 120 504 835 107 031 499 0 0 1 227 536 334 1 213 377 183 14 159 150 0 14 159 150 1.15% 0 1 227 536 334

D 384 626 836 22 347 420 0 0 406 974 256 393 784 310 11 419 555 1 770 392 13 189 946 3.24% 0 406 974 256

Equities E 945 798 600 740 154 982 131 418 309 0 1 817 371 891 964 214 074 611 589 625 241 568 191 853 157 816 46.94% 1 817 371 890

Investments in participating employer(s) H 0 133 023 0 0 133 023 133 023 0 0 0 0.00% 0 133 023

Other assets I 18 318 583 0 0 0 18 318 583 18 318 583 0 0 0 0.00% 0 18 318 583

Hedge Funds J 176 976 306 0 0 0 176 976 306 176 976 306 0 0 0 0.00% 0 176 976 306

Private Equity Funds K 19 543 679 0 0 0 19 543 679 19 543 679 0 0 0 0.00% 0 19 543 679

Collective Investment Schemes 0 0 0 331 997 331 997 331 997 0 0 0 0.00% 0 331 997

Derivative Market instruments 0 0 0 0 0 0 0 0 0 0.00% 0 0

Insurance Policies:

- Linked Policies 0 0 0 0 0 0 0 0 0 0.00% 0 0

- Non-Linked Policies 0 0 0 0 0 0 0 0 0 0.00% 0 0

- Insurance Policies ito Reg 28(3)(c)3

0 0 0 0 0 0 0 0 0 0.00% 0 0

0 0 0 0 0 0 0 0 0 0.00% 0 0

N0 0 0 0 0 0 0 0 0 0.00% 0 0

TOTAL INVESTMENTS 2 770 780 301 937 946 108 132 217 478 331 997 3 841 275 884 2 962 793 913 635 143 388 243 338 583 878 481 971 22.87% 0 3 841 275 884

Notes:

1. Schedule prepared on a look through basis except for private equity and hedge funds which shows the structure of the investment

2. Detailed disclosure is applicable on segregated/direct investments

3. Assets which are subject to the grandfathering provision as set out in regulation 28(3)(c)

4. The total investments will be equal to Schedule IB item A

A B C EA+B+C+D+E+V+

W+XV W X W+X Z V+W+X+Y+Z

Investments1

No

tes

2

Direct Invest-

ments

Non-compliant

Collective

investment

schemes

Non-compliant

insurance

policies

Compliant

invest-

ments

Total

Investments not disclosed /data not available for

disclosure by entities

Local

Foreign

(excluding

Africa)

Foreign Africa Total Foreign

Total % of

foreign

exposure

Reconciling

items between

Schedule IB

and IA

TOTAL as per

Regulation 28

(Schedule IB)4

Debt instruments including Islamic debt instruments

Investment and owner occupied properties

Entities regulated ito Reg 28(b)(iv)

46


NOTES TO THE INVESTMENT SCHEDULE- Continued


A CASH

Instrument Fair Value

R

LOCAL 103 284 244

Notes and coins, any balance or deposit in an account held with a South African bank 41 138 232

List issuers/entities which exceeds 5% of total assets

A money market instrument issued by a South African bank including an Islamic liquidity management financial instrument 37 689 725


Any positive net balance in a margin account with an exchange 22 487 488


Any positive net balance in a settlement account with an exchange, operated for the buying and selling of assets 1 968 800


FOREIGN -5 054 847

Any balance or deposit held with a foreign bank 776 561


Any balance or deposit held with an African bank 0


A money market instrument issued by a foreign bank including an Islamic liquidity management financial instrument -5 831 409


Total Cash 98 229 397

B COMMODITIES

Instrument

Local or

foreign

Holding

number % Holding Fair Value

R

LOCAL

Gold (including Kruger Rands) Local 6 782 066


Other (provide details) 0

N/A Local 0

Total Commodities 6 782 066

Full details of buy-back transactions in respect of Kruger Rands must be furnished.

C DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS

Instrument

Local or

foreign

Secured/

Unsecured

Issued/

Guaranteed

Redemption

Value Fair Value

R R

Government debt

Local 841 923 468


Foreign 3 754 429


Bank debt

234 546 997

Debt instruments issued or guaranteed by the government of a foreign

country:

Notes, deposits, money market instruments issued by a South African Bank, margin accounts, settlement accounts with an exchange and

Islamic liquidity management financial instruments:

Balances or deposits, money market instruments issued by a foreign bank including Islamic liquidity management financial instruments:

Debt instruments issued by and loans to the government of the Republic and

any debt or loan guaranteed by the Republic:

Debt instruments issued or guaranteed by a South African Bank against its balance sheet:

47




Local 204 602 147


Local 0

N/A

Local 1 009 088


Not listed on an exchange 28 935 762

Firstrand Bank Limited Local 21 202 194

Investec Local 3 771 936

Nedbank Limited Local 3 079 523

Residual Debt Services Limited Local 23 848

Standard Chartered Bank Local 858 260

Public debt

4 418 943

Airports Company South Africa Limited Local 1 029 958

Land and Agricultural Bank Local 2 128 757

Rand Water Board Local 373 025

Transnet Local 887 203

Corporate debt (excluding debentures)

Debt instruments issued or guaranteed by an entity that has equity listed on an exchange: 33 942 694

Listed on an exchange 31 845 095

List issuers/entities which exceeds 5% of total assets Local 26 467 908

List issuers/entities which exceeds 5% of total assets Foreign 5 377 187

Not listed on an exchange 2 097 600

Impala Platinum Holdings Ltd Local 2 097 600

Debentures 0

Listed on an exchange 0

N/A

Not listed on an exchange 0

N/A

Other 1 918 304

Listed on an exchange Local 1 262 065


Not listed on an exchange Local 656 238

Macquarie Securities SA 14 424

Southchester 641 814

TOTAL DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS 1 120 504 835

D INVESTMENT AND OWNER OCCUPIED PROPERTIES

Instrument Local/Foreign Fair Value

R

Owner occupied properties 0

N/A

Investment properties 0

TOTAL 0

Listed on an exchange with an issuer market capitalization of R20 billion or

more, or an amount or conditions as prescribed

Listed on an exchange with an issuer market capitalization of less than R2

billion, or an amount or conditions as prescribed

Listed on an exchange with an issuer market capitalization of between R2

billion and R20 billion, or an amount or conditions as prescribed

Debt instruments issued or guaranteed by a public entity under the Public Finance Management Act, 1999 (Act No. 1 of

1999) as prescribed:

48




Instrument

Local or

foreign Issued shares

Holding

Number

Ordinary/

Preference

shares % Holding Fair Value

R

Shares and linked units in property companies, or units in a collective investment scheme in property, listed on an exchange: 142 732 312





Shares in property companies and linked units in property companies, not listed on an exchange: 241 894 524

DELTA PROPERTY FUND L/A DRIP Local 60 063

Investment In Cape Joint Properties (Pty) Ltd Local 20 538 911

Investment in Newshelf 922 (Pty) Ltd * Local 221 295 550

TOTAL 384 626 836

* During the year under review the following properties were sold:

- Pzazz (realised loss R19 206)

- The Park (realised profit R105 501)

- Zomerlust (realised profit R127 341)

Instrument

Local or

foreign Secured by Interest rate Fair Value

R

Participating mortgage bonds 0

N/A

TOTAL 0

TOTAL OF INVESTMENT AND OWNER OCCUPIED PROPERTY 384 626 836

E EQUITIES

Instrument

Local or

foreign Issued shares

Ordinary/

Preference

shares

Holding

number

Holding in

insurer/ entity % Fair Value

R

Listed equities 945 798 600





Unlisted equities 0

N/A 0

TOTAL EQUITIES 945 798 600

Issuer market capitalization of less than R2 billion, or an

amount or conditions as prescribed

Issuer market capitalization of R10 billion or more, or an


Issuer market capitalization of between R3 billion and R10


Issuer market capitalization of less than R3 billion, or an


Issuer market capitalization of between R2 billion and R20


Issuer market capitalization of R20 billion or more, or an


Signed offers to sell the remaining properties were received for Atterbury, Plessey and The Bridge.

49



For the period ended 30-Jun-17

F SECURITIES LENDING

Fair ValueManufactured

dividend

R R

ADH Collateral = Y 201 666 12 886 Securities Lending Nedbank



ADH Collateral = Y 1 095 500 70 000 Securities Lending Nedbank

AGL Collateral = Y 922 290 3 000 Securities Lending Nedbank

AGL Collateral = Y 15 986 360 52 000 Securities Lending Nedbank

ANH Collateral = Y 10 961 250 7 900 Securities Lending Nedbank

ASR Collateral = Y 234 048 800 Securities Lending Nedbank

ASR Collateral = Y 198 941 680 Securities Lending Nedbank

ASR Collateral = Y 2 050 846 7 010 Securities Lending Nedbank

ATT Collateral = Y 1 670 900 98 000 Securities Lending Nedbank

ATT Collateral = Y 2 028 950 119 000 Securities Lending Nedbank

ATT Collateral = Y 17 1 Securities Lending Nedbank

BGA Collateral = Y 157 430 984 Securities Lending Nedbank

BIL Collateral = Y 4 661 400 15 000 Securities Lending Nedbank

CFR Collateral = Y 116 300 1 000 Securities Lending Nedbank

CFR Collateral = Y 11 281 100 97 000 Securities Lending Nedbank

CLH Collateral = Y 271 160 1 912 Securities Lending Nedbank

CLH Collateral = Y 141 820 1 000 Securities Lending Nedbank

CLH Collateral = Y 56 728 400 Securities Lending Nedbank

CLR Collateral = Y 19 762 1 205 Securities Lending Nedbank

CLR Collateral = Y 32 849 2 003 Securities Lending Nedbank

COH Collateral = Y 292 000 10 000 Securities Lending Nedbank


COH Collateral = Y 2 920 100 Securities Lending Nedbank

COH Collateral = Y 27 740 950 Securities Lending Nedbank








DGH Collateral = Y 716 599 5 174 Securities Lending Nedbank

DGH Collateral = Y 1 431 398 10 335 Securities Lending Nedbank

DTC Collateral = Y 262 937 12 391 Securities Lending Nedbank

ENX Collateral = Y 187 482 14 590 Securities Lending Nedbank





ENX Collateral = Y 758 59 Securities Lending Nedbank

ENX Collateral = Y 1 928 150 Securities Lending Nedbank



EPP Collateral = Y 173 900 10 000 Securities Lending Nedbank

EPP Collateral = Y 69 560 4 000 Securities Lending Nedbank

EXG Collateral = Y 62 273 9 610 Securities Lending Nedbank

EXX Collateral = Y 2 136 900 17 000 Securities Lending Nedbank

EXX Collateral = Y 2 891 100 23 000 Securities Lending Nedbank

EXX Collateral = Y 502 800 4 000 Securities Lending Nedbank

FBR Collateral = Y 305 203 2 694 Securities Lending Nedbank

FBR Collateral = Y 18 806 166 Securities Lending Nedbank

FBR Collateral = Y 1 132 900 10 000 Securities Lending Nedbank














FFA Collateral = Y 35 420 2 300 Securities Lending Nedbank

Securities on lendMaximum of Fair

Value of securityTransaction date Collateral

No. of shares

lent

Name of counter

party

Equities - Top 100 of

companies (by market cap)

listed on an exchange

75%

Script

custodian

50






dividend

R R



No. of shares

lent

Name of counter

party

Script

custodian

FFA Collateral = Y 18 480 1 200 Securities Lending Nedbank

FFA Collateral = Y 2 602 600 169 000 Securities Lending Nedbank

FFB Collateral = Y 401 835 26 700 Securities Lending Nedbank

FFB Collateral = Y 30 100 2 000 Securities Lending Nedbank

GRF Collateral = Y 10 720 8 000 Securities Lending Nedbank

GRT Collateral = Y 175 327 6 569 Securities Lending Nedbank

HMN Collateral = Y 660 7 Securities Lending Nedbank

HMN Collateral = Y 38 659 410 Securities Lending Nedbank

HMN Collateral = Y 179 434 1 903 Securities Lending Nedbank

HMN Collateral = Y 1 524 009 16 163 Securities Lending Nedbank


HMN Collateral = Y 4 910 152 52 075 Securities Lending Nedbank



INP Collateral = Y 594 701 6 092 Securities Lending Nedbank

INP Collateral = Y 5 145 453 52 709 Securities Lending Nedbank








ITU Collateral = Y 3 855 051 118 072 Securities Lending Nedbank

ITU Collateral = Y 979 500 30 000 Securities Lending Nedbank

ITU Collateral = Y 9 899 121 303 189 Securities Lending Nedbank

JSE Collateral = Y 611 155 3 770 Securities Lending Nedbank



JSE Collateral = Y 30 801 190 Securities Lending Nedbank


L2D Collateral = Y 13 052 1 752 Securities Lending Nedbank



L4L Collateral = Y 140 581 24 970 Securities Lending Nedbank

LBH Collateral = Y 1 628 480 14 000 Securities Lending Nedbank

LBH Collateral = Y 639 760 5 500 Securities Lending Nedbank

MEI Collateral = Y 4 197 160 44 000 Securities Lending Nedbank

MEI Collateral = Y 1 144 680 12 000 Securities Lending Nedbank

MEI Collateral = Y 490 877 5 146 Securities Lending Nedbank

MEI Collateral = Y 763 120 8 000 Securities Lending Nedbank

MMI Collateral = Y 1 767 000 100 000 Securities Lending Nedbank

MNP Collateral = Y 372 810 1 000 Securities Lending Nedbank

MSM Collateral = Y 334 860 3 000 Securities Lending Nedbank

MSM Collateral = Y 244 671 2 192 Securities Lending Nedbank

MSM Collateral = Y 1 776 321 15 914 Securities Lending Nedbank

MSP Collateral = Y 231 000 11 000 Securities Lending Nedbank

MSP Collateral = Y 390 264 18 584 Securities Lending Nedbank

MTN Collateral = Y 2 697 500 25 000 Securities Lending Nedbank

NED Collateral = Y 8 485 720 34 000 Securities Lending Nedbank



NHM Collateral = Y 901 484 24 577 Securities Lending Nedbank


NHM Collateral = Y 1 885 059 51 392 Securities Lending Nedbank





NRP Collateral = Y 416 242 3 399 Securities Lending Nedbank

NRP Collateral = Y 2 204 280 18 000 Securities Lending Nedbank

OCE Collateral = Y 68 256 864 Securities Lending Nedbank

OCE Collateral = Y 18 091 229 Securities Lending Nedbank

PFG Collateral = Y 716 224 6 400 Securities Lending Nedbank

PFG Collateral = Y 33 573 300 Securities Lending Nedbank

PFG Collateral = Y 1 126 822 10 069 Securities Lending Nedbank




PGR Collateral = Y 60 131 2 789 Securities Lending Nedbank

51






dividend

R R



No. of shares

lent

Name of counter

party

Script

custodian

PIK Collateral = Y 20 191 270 Securities Lending Nedbank

PIK Collateral = Y 157 038 2 100 Securities Lending Nedbank

PIK Collateral = Y 2 085 839 27 893 Securities Lending Nedbank




PPC Collateral = Y 412 508 57 055 Securities Lending Nedbank

PPC Collateral = Y 122 910 17 000 Securities Lending Nedbank

PPC Collateral = Y 1 756 890 243 000 Securities Lending Nedbank

PPC Collateral = Y 1 446 000 200 000 Securities Lending Nedbank

RCL Collateral = Y 462 897 26 788 Securities Lending Nedbank



REB Collateral = Y 59 440 8 000 Securities Lending Nedbank

RFG Collateral = Y 119 255 6 506 Securities Lending Nedbank


RFG Collateral = Y 10 686 583 Securities Lending Nedbank



RFG Collateral = Y 348 19 Securities Lending Nedbank









SAC Collateral = Y 32 338 7 400 Securities Lending Nedbank




SAC Collateral = Y 1 096 870 251 000 Securities Lending Nedbank






SDC Collateral = Y 74 000 20 000 Securities Lending Nedbank

SDO Collateral = Y 38 708 9 464 Securities Lending Nedbank





SNH Collateral = Y 2 580 2 000 Securities Lending Nedbank



SNT Collateral = Y 117 022 410 Securities Lending Nedbank

SNT Collateral = Y 570 840 2 000 Securities Lending Nedbank

SNT Collateral = Y 285 420 1 000 Securities Lending Nedbank

SPG Collateral = Y 621 855 17 747 Securities Lending Nedbank


SPG Collateral = Y 1 098 084 31 338 Securities Lending Nedbank


SRR Collateral = Y 2 137 600 128 000 Securities Lending Nedbank

SRR Collateral = Y 400 800 24 000 Securities Lending Nedbank

SUI Collateral = Y 30 545 500 Securities Lending Nedbank




SUI Collateral = Y 936 632 15 332 Securities Lending Nedbank

SUI Collateral = Y 305 450 5 000 Securities Lending Nedbank


SUI Collateral = Y 3 022 428 49 475 Securities Lending Nedbank

SUI Collateral = Y 1 343 980 22 000 Securities Lending Nedbank

ZPLP Collateral = Y 59 1 Securities Lending Nedbank

ZPLP Collateral = Y 59 1 Securities Lending Nedbank

199 241 209 4 295 526Total equity on loan

52






dividend

R R



No. of shares

lent

Name of counter

party

Script

custodian

R 186 Collateral = Y 1 097 715 1 000 000 Securities Lending Nedbank

R 186 Collateral = Y 944 035 860 000 Securities Lending Nedbank

R 213 Collateral = Y 5 802 730 7 000 000 Securities Lending Nedbank


R 2 023 Collateral = Y 381 448 388 400 Securities Lending Nedbank

R 2 048 Collateral = Y 1 001 189 1 100 000 Securities Lending Nedbank

R 2 044 Collateral = Y 913 536 1 000 000 Securities Lending Nedbank

R 2 044 Collateral = Y 913 536 1 000 000 Securities Lending Nedbank





Toatal Government bonds on loan 297 941 450 326 488 400

TOTAL 497 182 659 330 783 926

Included in the value above are the following script lending transactions:

List and describe your script lending mandates

LA Retirement Fund Equities out on loan

LA Retirement Fund Bonds out on loan

Total 497 182 659

Name of lender Description % of total assetsValue of transaction

R

Debt - Government bonds 75%

5.19% 199 241 209

7.76% 297 941 450

53


NOTES TO THE INVESTMENT SCHEDULE - Continued


I OTHER ASSETS

Fair value

R

Loan to Cape Joint Properties Local 50 50% 5 660 328

Month-end valuation differences between Sygnia, the Unitising Agent and the Asset Managers Local - - 12 658 255

Total other portfolio assets 18 318 583

J HEDGE FUNDS

InstrumentTotal value of

commitment

Current value of

commitment

R R

Hedge Funds 176 976 306

LA Retirement Fund Steyn L/S Equity Fund Local LongShort 100.00% 133% - - 90 016 644 84 195 440

LARF - MAP 260 Fund GP (Pty) Ltd - Fairtree Assegai Class 1 Local LongShort 17.29% 271% - - 97 373 593 92 780 866

Funds of Hedge Funds 0

N/A

Total Hedge Funds commitment 176 976 306

K PRIVATE EQUITY FUNDS

Total value of

commitment

Current value of

commitment

R R

Private Equity Fund

African Infrastructure Investment Fund Local Trust - - 1.89% 15 yrs - - - 25 000 000 19 543 679

Funds of Private Equity Fund

N/A

Total Private Equity funds commitment 19 543 679

Term of

contract

InstrumentLocal or

Foreign

Holding

numberHolding %

Local or

ForeignHolding %

InstrumentLocal or

Foreign

Term of

contract

Number of

draw-downs

exceeded(if

any)

Period into

contract

StructureCategory 2

approval

FAIS approval

number

Leverage/

GearingStructure

Number of

permitted draw-

downs

exercised

Number of

permitted draw-

downs as per

contract

Holding %

54




L CERTIFIED REGULATION 28 COMPLIANT INVESTMENTS

Fair value

R

Collective Investment Schemes - regulation 28 (8)(b)(i) Local 331 997

Linked policies - regulation 28 (8)(b)(ii) 0

Non Linked policies - regulation 28 (8)(b)(iii) 0

Regulated entities - regulation 28 (8)(b)(iv) 0

Total certified regulation 28 compliant investments 331 997

M REGULATION 28 NON-COMPLIANT INVESTMENTS

M1 NON-COMPLIANT COLLECTIVE INVESTMENT SCHEMES

Fair value

R

Ashmore Africa Emerging Markets Fund Foreign 2.78% 106 737 068

Global Opportunity I USD Acc Gross Foreign 0.11% 4 261 588

Global Opportunity I USD Acc Gross Local 0.25% 9 739 409

lal Internal Money Upf Z Local 0.13% 4 882 457

Investec Corporate Money Market Fund Class Z Local 0.24% 9 288 418

GSF Global Quality Equity I Inc USD Foreign 1.43% 54 747 423

Momentum Enhanced Yield Local 0.16% 6 103 929

CORO Global Bond Fund Class Z Foreign 0.13% 5 026 547

CORO Global Strat Usd Inc FD Class Z Foreign 0.37% 14 295 849

Nedgroup Investments Core Income Fund - Class C4 Local 0.55% 21 189 231

Prescient Money Market Fund B3 Local 0.18% 7 020 162

Prescient Stable Income Fund B3 Local 0.18% 7 007 528

Prescient Stable Income Fund B5 Local 0.27% 10 320 183

FG Comm Prop Fund Local 0.71% 27 305 118

FG Hi Yld MMkt Fund Local 0.83% 31 776 872

FG Enh STeFI Fund Local 1.23% 47 391 199

Old Mutual MSCI EM MK ESG IN Foreign 3.06% 117 628 872

Old Mutual MSCI EM MK ESG IN Local 0.41% 15 853 102

Old Mutual MSCI ESG W Foreign 3.53% 135 554 416

Old Mutual Albaraka Balanced Fund B1 Local 0.00% 31 441

Old Mutual Albaraka Balanced Fund B1 Foreign 0.00% 10 084

Sanlam World Equity Tracker Fund Foreign 4.10% 157 368 973

Steyn Capital Africa Fund Foreign 3.75% 144 187 467

Steyn Capital Africa Fund Local 0.01% 218 777

Total Non-compliant Collective investment schemes 937 946 108

M2 NON-COMPLIANT INSURANCE POLICIES

Fair value

R

Linked policies

Prudential Life International Balanced Fund Local 0.83% 1 101 208

Prudential Life International Balanced Fund Foreign 99.17% 131 116 270

Non-linked policies

N/A 0

Total non-compliant Insurance policies 132 217 478

Instrument Local or Foreign

Instrument Local or Foreign % Holding

Instrument Local or Foreign % Holding

55




O ENTITY/COUNTERPARTY EXPOSURE

Credit / counter party

R R R R R R

Banks

- FNB current account 9 848 269 0 0 0 0 9 848 269 0.26%

- Nedbank Transition Account 2 549 021 0 0 0 0 2 549 021 0.07%

Asset managers - Local

- African Infrastructure Investment Managers 0 0 0 0 19 543 679 19 543 679 0.51%

- Colourfield Liability Solutions (Pty) Ltd 0 5 651 352 287 440 821 0 479 320 043 772 412 215 20.08%

- Coronation Asset Management (Pty) Ltd 0 16 258 500 117 735 980 0 714 023 881 848 018 361 22.04%

- Fairtree Capital (Pty) Ltd 0 0 0 0 92 780 867 92 780 867 2.41%

- Investec Asset Management (Pty) Ltd 0 2 850 189 16 266 750 0 187 590 004 206 706 943 5.37%

- Excellerate Real Estate Services (Pty) Ltd, previously JHI for Newshelf 0 0 0 0 221 295 550 221 295 550 5.75%

- Momentum Asset Management (Pty) Ltd 0 0 0 0 6 103 929 6 103 929 0.16%

- Prescient Investment Management (Pty) Ltd 0 26 822 084 0 0 24 347 870 51 169 954 1.33%

- Prudential Portfolio Managers SA 0 2 537 204 75 739 108 0 390 417 849 468 694 162 12.18%

- Sanlam Investment Management (Pty) Ltd 0 303 996 0 0 46 561 774 46 865 770 1.22%

- Steyn Capital Management (Pty) Ltd 0 0 0 0 228 601 685 228 601 685 5.94%

- Futuregrowth Asset Management (Pty) Ltd 0 0 0 0 106 340 165 106 340 165 2.76%

- Taquanta Asset Managers (Pty) Ltd 0 34 657 132 0 0 21 189 231 55 846 362 1.45%

Asset managers - Foreign

- Ashmore Investment Management Limited 0 0 0 0 106 737 070 106 737 070 2.77%

- Old Mutual Customised Solutions (Pty) Ltd, previously Old Mutual Global Index Trackers (Pty) Ltd 0 0 0 0 269 036 391 269 036 391 6.99%

- Old Mutual Unit Trust Managers (RF) (Pty) Ltd 0 0 0 0 41 525 41 525 0.00%

- Sanlam Asset Management (Pty) Ltd 0 0 0 0 157 368 973 157 368 973 4.09%

Insurance Companies

- Prudential Portfolio Managers 0 0 0 0 132 217 478 132 217 478 3.44%

Participating employers

- City of Cape Town 0 0 0 0 133 023 133 023 0.00%

Other

- Arrear contributions 4 130 590 0 0 0 0 4 130 590 0.11%

- Loan to Cape Joint Properties 5 660 328 0 0 0 0 5 660 328 0.15%

- Investment In Cape Joint Properties (pty) Ltd 20 538 911 0 0 0 0 20 538 911 0.53%

42 727 119 89 080 457 497 182 659 0 3 203 650 985 3 832 641 221 99.63%

Any other

instrument

Total per Counter

Party

Exposure to

counter party as a

% of the fair value

of the assets of the

fund

Counter Party

Direct

investment in

counter party

Deposit / liquid

asset with

counter party

Securities

lending

transactions

Open financial

instruments

market to

market value

56




Market risk

EQUITY HOLDINGS

List the 10 largest rand-value equity holdings

R R R

Naspers Limited 108 993 707 108 993 707 5 449 685

British American Tobacco Plc 88 463 576 88 463 576 4 423 179

Sasol Ltd 62 554 944 62 554 944 3 127 747

Standard Bank Group Ltd 61 462 895 61 462 895 3 073 145

MTN 47 139 305 47 139 305 2 356 965

Anglo American 45 260 358 45 260 358 2 263 018

Firstrand Ltd 35 319 640 35 319 640 1 765 982

Pick n Pay Stores Ltd 25 988 073 25 988 073 1 299 404

Compagnie Financiere Richemont 24 921 641 24 921 641 1 246 082

BHP Billiton 24 222 665 24 222 665 1 211 133

Total value of 10 largest equity holdings 524 326 803 26 216 340

Total movement as % of non-current assets plus bank 0.68%

OTHER FINANCIAL INSTRUMENTS

List the 10 largest rand-values other financial instruments

R R

SA Government Debt (Direct) 841 923 468 42 096 173

Investment in Newshelf 922 (Pty) Ltd 221 295 550 11 064 778

SA Bank Debt - Listed Issuer MC > R20bn (direct) 204 602 147 10 230 107

Sanlam World Equity Tracker Fund 157 368 973 7 868 449

Steyn Capital Africa Fund 144 406 245 7 220 312

Old Mutual MSCI ESG W 135 554 416 6 777 721

Old Mutual MSCI EM MK ESG IN 133 481 975 6 674 099

Prudential Life International Balanced Fund 132 217 478 6 610 874

Ashmore Africa Emerging Markets Fund 106 737 068 5 336 853

LARF - MAP 260 Fund GP (Pty) Ltd - Fairtree Assegai Class 1 92 780 866 4 639 043

Total value of 10 largest other instruments 2 170 368 185 108 518 409


Investment

Fair value at

end of period

Open financial

instruments

marked to

market value

Total fair value

equity holdings and

open instruments

Market movement

by 5%

Instrument HoldingFair value at end of

period

Market movement

by 5%

57




Foreign currency exposure

R R

Ashmore Africa Emerging Markets Fund 106 737 068 5 336 853

Global Opportunity I USD Acc Gross 4 261 588 213 079

GSF Global Quality Equity I Inc USD 54 747 423 2 737 371

CORO Global Bond Fund Class Z 5 026 547 251 327

CORO Global Strat Usd Inc FD Class Z 14 295 849 714 792

Old Mutual MSCI EM MK ESG IN 117 628 872 5 881 444

Old Mutual MSCI ESG W 135 554 416 6 777 721

Old Mutual Albaraka Balanced Fund B1 10 084 504

Sanlam World Equity Tracker Fund 157 368 973 7 868 449

Steyn Capital Africa Fund 144 187 467 7 209 373

Klepierre 68 139 3 407

Simon Property Group Inc 416 056 20 803

Macerich 116 658 5 833

Unibail-Rodamco-Westfield 23 537 1 177

Bat Capital Corp 1 610 802 80 540

Remgro 2.625% 220321 1 727 280 86 364

Impala Platinum Holdings Ltd 2 039 105 101 955

Forward foreign exchange payable USD20180919 -5 831 409 -291 570

Brazilian Government 870 089 43 504

Turkish Government 2 884 340 144 217

United Kingdom Pound 64 829 3 241

Mexican Pesos 50 412 2 521

USA Dollars 661 317 33 066

Prudential Life International Balanced Fund 131 116 270 6 555 813

Total value of foreign instruments 875 635 711 43 781 786


Hedging portfolio

R

N/A

DescriptionFair value at end of

period

Market movement

by 5%

Hedged item per categoryHedging

instrument

Marked to market

profit/lossDisclosure

Foreign instruments

58




P RECONCILIATION BETWEEN THE INVESTMENTS IN SCHEDULE H2 AND SCHEDULE IA

Cash 88 381 128 - 9 848 269 - 67 819 841 799 169 - - - - 166 848 407

Commodities 6 782 066 - - - 459 343 - - - - - 7 241 409

Housing Loans 0 - - - - - - - - - 0

1 120 504 835 - - - 107 031 499 - - - - - 1 227 536 333

0 - - 384 626 836 22 347 420 - - - - - 406 974 256

Equities 1 330 425 436 - - -384 626 836 740 154 983 131 418 309 - - - - 1 817 371 891

Investments in participating employer(s) 0 - - - 133 023 - - - - - 133 023

Other assets 18 318 583 - - - - - - - - - 18 318 583

Hedge Funds 176 976 306 - - - - - - - - - 176 976 306

Private Equity Funds 19 543 679 - - - - - - - - - 19 543 679

Collective Investment Schemes 938 278 106 - - - - - -937 946 108 - - - 331 997

Derivative Market instruments 0 - - - - - - - - - 0

Insurance Policies 132 217 478 - - - - -132 217 478 - - - - 0

0 - - - - - - - - - 0

0 - - - - - - - - - 0

TOTAL INVESTMENTS 3 831 427 615 0 9 848 269 0 937 946 108 0 -937 946 108 0 0 0 3 841 275 884

Note 1: Amounts may only be included in this column where such asset(s) are not accommodated in any of the column and proper disclosure must be in this note to disclose the nature of the asset(s):

Debt instruments including Islamic debt

instruments

Investment and owner occupied

properties

Entities regulated ito Reg 28(b)(iv)

Investments not disclosed /data not

available for disclosure by entities

Non-compliant

Insurance Policies

Compliant

investments

Derivatives with

residual risk

Investments no

information

(Schedule IAN)

OtherNote1 TotalInvestments

Fair value current

period (as per

Schedule H2.1)

Amortised cost

current periodCash at bank

Property split

(Schedule IAD)Non-compliant CIS

59

LA Retirement Fund

Fair value

R

A Total assets (Schedule IA - Total investments) 3 841 275 884

B.1 Less: Reg 28 compliant investments (certificate received from issuing entity):- 331 997

B.1.1 Collective Investment Schemes (Reg 28(8)(b)(i)) 331 997

B.1.2 Linked Policies (Reg 28(8)(b)(ii)) 0

B.1.3 Non-linked policies (Reg 28(8)(b)(iii)) 0

B.1.4 Entity regulated by FSB (Reg 28(8)(b)(iv)) 0

B.2 Less: Reg 28 Excluded investments 0

B.2.1 Insurance Policies (Reg 28(3)(c)) 0

C Less: Investments not disclosed /data not available for disclosure 0

[Refer Schedule IAN] 0

D TOTAL ASSETS for REGULATION 28 DISCLOSURE 3 840 943 886

% Fair value Fair value

R %

1 100% 166 848 407 4.34%

1.1

100% 168 873 348 4.40%

(a) 45 900 545 1.20%

Absa BANK Limited 25% 10 336 476 0.27%

FNB Current Account 25% 9 848 269 0.26%

NedBANK Limited 25% 8 320 646 0.22%

Sygnia_Unsettled Trades 25% 7 039 986 0.18%

SZAR 25% 4 089 475 0.11%

Other issuers (Top 5 issuers listed and the rest under other) 6 265 694 0.16%

(b)98 409 227 2.56%

NedBANK Limited 25% 24 117 160 0.63%


Firstrand BANK Limited 25% 16 896 631 0.44%

The Standard BANK Of South Africa Limited 25% 14 520 862 0.38%

Investec BANK Limited 25% 12 432 523 0.32%


(c) 22 686 632 0.59%

SOUTH AFRICAN FUTURES EXCHANGE 25% 20 576 138 0.54%

YIELDX 25% 2 110 494 0.05%

(d)1 876 945 0.05%


1.225% -2 024 942 -0.05%

(a) 1 658 734 0.04%

ABSA ITF OLD MUTUAL 5% 20 0.00%

BANK OF NEW YORK 5% 5 391 089 0.14%

Name of Retirement Fund:

SCHEDULE IB

ASSETS HELD IN COMPLIANCE WITH REGULATION 28 AS AT 30 JUNE 2018

Categories of kinds of assets

CASH

Notes, deposits, money market instruments issued by a South African Bank,

margin accounts, settlement accounts with an exchange and Islamic liquidity

management financial instruments

Notes and coins, any balance or deposit in an account held with a South African bank

A money market instrument issued by a South African bank including an Islamic liquidity

management financial instrument

Any positive net balance in a margin account with an exchange

Any positive net balance in a settlement account with an exchange, operated for the

buying and selling of assets

Balances or deposits, money market instruments issued by a foreign bank

including Islamic liquidity management financial instruments

Any balance or deposit held with a foreign bank

60

LA Retirement FundName of Retirement Fund:

SCHEDULE IB


BNP Paribas 5% 4 172 0.00%

Brown Brothers Harriman 5% 1 330 754 0.03%

Investec BANK Limited 5% 1 075 0.00%

STATE STREET TRUST COMPANY 5% -5 068 376 -0.13%

(b) 0 0.00%

NO ASSETS 5% 0 0.00%

(c)-3 683 676 -0.10%

BANQUE NATIONALE DE PARIS 5% 150 606 0.00%

Investec BANK Limited 5% -6 226 291 -0.16%

NATIONAL BANK OF CANADA 5% 2 385 876 0.06%

RABOBANK 5% 6 132 0.00%

2 100% 1 227 536 334 31.96%

2.1 100% 1 213 377 184 31.59%

(a)100% 848 884 595 22.10%

Eskom Holdings Limited 100% 40 866 977 1.06%

Republic of South Africa National Treasury 100% 808 017 618 21.04%

(b) Debt instruments issued or guaranteed by the government of a foreign country 75% 0 0.00%

NO ASSET 10% 0 0.00%

(c) 75% 250 137 662 6.51%

(c)(i)75% 219 499 402 5.71%


BANK OF CHINA LIMITED 25% 73 175 0.00%

Bank Windhoek Holdings Limited 25% 32 018 0.00%

Barclays Africa 25% 4 701 474 0.12%



NedBANK Limited 25% 48 654 762 1.27%

Rand Merchant BANK 25% 48 787 0.00%


(c)(ii)75% 0 0.00%

NO ASSETS 15% 0 0.00%

(c)(iii)75% 1 489 596 0.04%

African BANK Limited 10% 1 489 596 0.04%

(c)(iv) 25% 29 148 664 0.76%

Absa BANK Limited 5% 9 385 0.00%



NedBANK Limited 5% 3 245 748 0.08%

RESIDUAL DEBT SERVICES LIMITED 5% 23 848 0.00%

Any balance or deposit held with an African bank

A money market instrument issued by a foreign bank including an Islamic liquidity

management financial instrument

DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS

Inside the Republic

Debt instruments issued by, and loans to, the Government of the Republic, and any debt

or loan guaranteed by the Republic

Debt instruments issued or guaranteed by a South African Bank against its balance

sheet

Listed on an exchange with an issuer market capitalization of R20 billion or more, or an


Listed on an exchange with an issuer market capitalization of between R2 billion and

R20 billion, or an amount or conditions as prescribed

Listed on an exchange with an issuer market capitalization of less than R2 billion, or an


Not listed on an exchange

61


SCHEDULE IB


Standard Charted Bank 5% 858 260 0.02%

The Standard BANK Of South Africa Limited 5% 35 593 0.00%

(d)

50% 42 578 295 1.11%

(d)(i) 50% 33 122 903 0.86%

MMI HOLDINGS LTD 10% 7 930 158 0.21%

MTN 10% 7 416 553 0.19%

Old Mutual PLC 10% 2 868 238 0.07%

Sasol Financing (Proprietary) Limited 10% 2 622 376 0.07%

Accelerate Property Fund Ltd 10% 2 005 110 0.05%


(d)(ii) Not listed on an exchange 25% 9 455 392 0.25%

Aspen Pharmacare Holdings Limited 5% 113 465 0.00%

Development BANK Of Southern Africa 5% 1 629 154 0.04%

Growthpoint Note Issuer Company (Proprietary) Limited 5% 76 178 0.00%

Huge Group Limited 5% 179 950 0.00%

IMPALA PLATINUM HOLDINGS LIMITED 5% 2 097 600 0.05%

Land and Agricultural Development Bank of South Africa 5% 3 236 762 0.08%

Life Healthcare Group Holdings Ltd 5% 17 112 0.00%

REDEFINE PROPERTIES LTD 5% 103 158 0.00%

SASOL LTD 5% 173 988 0.00%

Trans-Caledon Tunnel Authority (TCTA) 5% 1 079 0.00%

Transnet SOC Limited 5% 1 826 949 0.05%

(e) 25% 71 776 632 1.87%

(e)(i) Listed on an exchange 25% 15 010 648 0.39%

Mercedes-Benz SA (Pty) Ltd 5% 2 268 575 0.06%

INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA 5% 2 003 971 0.05%

Toyota Financial Services SA Ltd 5% 1 414 079 0.04%

The Thekwini Warehousing Conduit Pty. Ltd. 5% 1 229 809 0.03%

Ekurhuleni Metropolitan Muncipality 5% 1 079 305 0.03%


(e)(ii) Not listed on an exchange 15% 56 765 984 1.48%

COMMUNITY PROPERTY LOAN BOND 29122017 5% 17 929 743 0.47%

MELROSE ARCH INVESTMENTS 5% 2 761 010 0.07%

SCATEC ZCO 5% 2 042 704 0.05%

DARK FIBRE AFRICA 5% 1 636 221 0.04%

HIPX 5% 1 559 819 0.04%

30 836 486 0.80%

2.2 25% 14 159 150 0.37%

(a)25% 0 0.00%

NO ASSETS 0 0.00%

(b) 25% 3 754 429 0.10%

Brazilian Government 10% 870 089 0.02%

Turkish Government 10% 2 884 340 0.08%

Debt instruments issued or guaranteed by an entity that has equity listed on an

exchange, or debt instruments issued or guaranteed by a public entity under the Public

Finance Management Act, 1999 (Act No. 1 of 1999) as prescribed:-

Listed on an exchange

Other debt instruments

Foreign

Debt instruments issued by, and loans to, the government of the Republic, and debt or

loan guaranteed by the Republic

Debt instruments issued or guaranteed by the government of a foreign country

62


SCHEDULE IB


(c) 25% 988 0.00%

(c)(i)25% 988 0.00%

Republic of South Africa National Treasury 25% 988 0.00%

(c)(ii)25% 0 0.00%

NO ASSETS 15% 0 0.00%

(c)(iii)25% 0 0.00%

NO ASSETS 10% 0 0.00%

(c)(iv) 25% 0 0.00%


(d) 25% 10 403 734 0.27%

(d)(i) Listed on an exchange 25% 10 403 734 0.27%

BAT CAPITAL CORP 10% 1 610 802 0.04%

CORO GLOBAL BOND FUND CLASS Z 10% 5 026 547 0.13%

IMPALA PLATINUM HOLDINGS LIMITED 10% 2 039 105 0.05%

REMGRO 2.625% 220321 10% 1 727 280 0.04%

(d)(ii) Not listed on an exchange 25% 0 0.00%


(e) Other debt instruments 25% 0 0.00%

(e)(i) Listed on an exchange 25% 0 0.00%


(e)(ii) Not listed on an exchange 15% 0 0.00%


3 75% 1 817 371 890 47.32%

3.1 75% 964 214 074 25.10%

(a) 75% 964 214 074 25.10%

(a)(i) Issuer market capitalization of R20 billion or more, or an amount or conditions as prescribed 75% 809 862 231 21.08%

Naspers Limited 15% 108 993 707 2.84%

British American Tobacco Plc 15% 88 463 576 2.30%

SASOL LTD 15% 62 554 944 1.63%

STANDARD BANK GROUP LTD 15% 61 462 895 1.60%

MTN 15% 47 139 305 1.23%

Anglo American 15% 45 260 358 1.18%

FIRSTRAND LTD 15% 35 319 640 0.92%

PICK N PAY STORES LTD 15% 25 988 073 0.68%

Compagnie Financiere Richemont 15% 24 921 641 0.65%

BHP Billiton 15% 24 222 665 0.63%

Investec PLC 15% 23 946 060 0.62%

NEDBANK GROUP LTD 15% 23 406 908 0.61%

Old Mutual Ltd 15% 20 404 630 0.53%

SAPPI LIMITED 15% 19 566 248 0.51%

Barclays Africa 15% 19 066 021 0.50%

Other issuers (Top issuers listed and the rest that is in total less than 5%, under other) 179 145 561 4.66%

Debt instruments issued or guaranteed by a foreign bank against its balance sheet:

Listed on an exchange with an issuer market capitalization of R20 billion or more, or an






Not listed on an exchange

Debt instruments issued or guaranteed by an entity that has equity listed on an

exchange-

EQUITIES

Inside the Republic

Preference and ordinary shares in companies, excluding shares in property companies,


63


SCHEDULE IB


(a)(ii) Issuer market capitalization of between R2 billion and R20 billion, or an amount or conditions as prescribed75% 143 172 586 3.73%

NORTHAM PLATINUM LIMITED 10% 13 912 582 0.36%

AFRICAN OXYGEN 10% 13 595 609 0.35%

Sun International Ltd 10% 11 817 794 0.31%

Trencor Ltd 10% 9 793 460 0.25%

Assore Ltd 10% 8 283 278 0.22%


(a)(iii) Issuer market capitalization of less than R2 billion, or an amount or conditions as prescribed 75% 11 179 257 0.29%

Metrofile Holdings 5% 5 096 857 0.13%

Master Plastics Ltd 5% 2 095 382 0.05%

enX Corporation Limited 5% 1 922 652 0.05%

INVESTEC LIMITED PREFERENCE SHS 5% 559 992 0.01%

African Phoenix Investments Limited 5% 281 667 0.01%

1 222 707 0.03%

(b)10% 0 0.00%

NO ASSETS 2.5% 0 0.00%

3.2 25% 853 157 816 22.21%

(a) 25% 853 099 085 22.21%


Ashmore Africa Emerging Markets Fund (A) 15% 104 141 931 2.71%

PRUDENTIAL WORLDWIDE MANAGED FUND - C 15% 87 199 780 2.27%

PRUDENTIAL WORLDWIDE REAL RETURN FUND 15% 44 218 529 1.15%

TENCENT HOLDINGS LTD 15% 15 018 748 0.39%

CORO GLB STRAT USD INC FD CL-Z 15% 14 295 849 0.37%

Afrexim Bank 15% 11 452 082 0.30%

Guinness Nigeria PLC 15% 9 064 803 0.24%

Eastern Company for Tobacco 15% 8 078 200 0.21%

MICROSOFT CORP COMMON STOCK USD 0.00000625 15% 7 556 995 0.20%

Delta Corporation Limited 15% 7 052 873 0.18%

VISA INC COMMON STOCK USD 0.0001 15% 6 703 767 0.17%

Tanzania Breweries Ltd 15% 6 305 351 0.16%

CFC Stanbic 15% 5 996 582 0.16%

Stanbic IBTC Holding Co. 15% 5 469 625 0.14%

SONATEL 15% 5 304 842 0.14%

ETEL 15% 5 214 360 0.14%

ZENITH BANK PLC 15% 5 065 423 0.13%

Egyptian Int Pharmaceutical Co 15% 4 675 868 0.12%

CHINA CONSTRUCTION BANK CORP COMMON STOCK CNY1. 15% 4 663 831 0.12%

Namibian Breweries 15% 4 167 304 0.11%

IntBrew 15% 4 038 136 0.11%

Atlas Mara Ltd 15% 4 025 608 0.10%

Booking Holdings Inc. 15% 3 908 463 0.10%

Microsoft Corp 15% 3 829 855 0.10%

ALPHABET INC-CL C 15% 3 803 144 0.10%

Alexandria Containers 15% 3 604 595 0.09%

Marsa Maroc 15% 3 546 683 0.09%

MOODY S CORP 15% 3 533 000 0.09%

TWENTY-FIRST CENTURY FOX INC 15% 3 521 896 0.09%


not listed on an exchange

Foreign



64


SCHEDULE IB


APPLE INC COMMON STOCK USD 0.00001 15% 3 513 478 0.09%

JOHNSON & JOHNSON COMMON STOCK USD 1 15% 3 411 295 0.09%

Nile Sat 15% 3 239 975 0.08%

Qatar National Bank 15% 3 161 321 0.08%

VERISIGN INC 15% 2 837 419 0.07%

Onatel BF 15% 2 699 190 0.07%

AMAZON.COM INC COMMON STOCK USD 0.01 15% 2 673 352 0.07%

NESTLE SA 15% 2 635 459 0.07%

Amadeus IT Holding 15% 2 607 960 0.07%

KenolKobil 15% 2 598 908 0.07%

Ashmore Africa Emerging Markets Fund (S) 15% 2 595 137 0.07%

ISHARES S&P 500 INDE 15% 2 585 043 0.07%

INTUIT INC COMMON STOCK USD 0.01 15% 2 545 932 0.07%

JOHNSON + JOHNSON 15% 2 541 747 0.07%

Innscor Africa Limited 15% 2 515 710 0.07%

INTEL CORP COMMON STOCK USD 0.001 15% 2 440 566 0.06%

3M CO COMMON STOCK USD 0.01 15% 2 429 747 0.06%

Bralirwa - Brasseries et Limonaderies du Rwanda 15% 2 425 417 0.06%

Imperial Tobacco Group PLC 15% 2 420 555 0.06%

Egypt Kuwait Holding 15% 2 383 100 0.06%

Custodian & Allied Insurance PLC 15% 2 372 879 0.06%

HYNIX SEMICONDUCTOR 15% 2 334 124 0.06%

East African Breweries 15% 2 313 698 0.06%

HOUSING DEV FINANCE CORP 15% 2 311 502 0.06%

RECKITT BENCKISER GROUP PLC 15% 2 159 150 0.06%

VERIZON COMMUNICATIONS INC COMMON STOCK USD 0.1 15% 2 156 721 0.06%

ASML Holding 15% 2 155 550 0.06%

Barclays Bank of Kenya 15% 2 135 869 0.06%

CISCO SYSTEMS INC COMMON STOCK USD 0.001 15% 2 121 846 0.06%

MASTERCARD INC COMMON STOCK USD 0.0001 15% 1 976 907 0.05%

PROCTER & GAMBLE CO/THE COMMON STOCK USD 0 15% 1 958 662 0.05%

Soc Ivoirienne Des Tabacs (SITAB) 15% 1 950 883 0.05%

BECTON DICKINSON AND CO COMMON STOCK USD 1 15% 1 911 828 0.05%

JAPAN TOBACCO INC 15% 1 818 290 0.05%

Netflix Inc 15% 1 814 340 0.05%

FACEBOOK INC COMMON STOCK USD 0.000006 15% 1 796 818 0.05%

ITAU UNIBANCO PN 15% 1 783 730 0.05%

PHILIP MORRIS INTERNATIONAL IN COMMON STOCK NPV 15% 1 780 015 0.05%

UNILEVER PLC 15% 1 779 029 0.05%

COCA-COLA CO/THE COMMON STOCK USD 0.25 15% 1 777 448 0.05%

INFOSYS TECHNOLOGIES 15% 1 742 691 0.05%

CHECK POINT SOFTWARE TECHNOLOGIES LTD COMMON STOCK 15% 1 731 113 0.05%

MERCK & CO INC COMMON STOCK USD 0.5 15% 1 725 263 0.04%

CHARLES SCHWAB CORP/THE COMMON STOCK USD 0.01 15% 1 692 370 0.04%

ISHARES MSCI EAFE IN 15% 1 682 441 0.04%

Old Mutual Zimbabwe 15% 1 664 791 0.04%

WALT DISNEY CO/THE COMMON STOCK USD 0.01 15% 1 654 234 0.04%

LUKOIL 15% 1 651 917 0.04%

ROCHE HLDGS (GENUS) 15% 1 626 040 0.04%

Tanzania Portland Cement Co 15% 1 578 886 0.04%

PEPSICO INC COMMON STOCK USD 0.017 15% 1 565 501 0.04%

Total SA 15% 1 539 669 0.04%

ABBVIE INC 15% 1 498 494 0.04%

65


SCHEDULE IB


NVIDIA 15% 1 474 286 0.04%

Base Resources 15% 1 463 168 0.04%

ORACLE CORP COMMON STOCK USD 0.01 15% 1 459 816 0.04%

Linkassure 15% 1 430 248 0.04%

COLGATE-PALMOLIVE CO COMMON STOCK USD 1 15% 1 416 447 0.04%

Adobe Systems Inc Common Stock USD 0E-14 15% 1 353 668 0.04%

UNIBAIL-RODAMCO-WESTFIELD 15% 1 331 059 0.03%

INTERNATIONAL BUSINESS MACHINES CORP COMMON STOCK 15% 1 324 570 0.03%

Alexandria Pharmaceuticals 15% 1 310 244 0.03%

GLAXOSMITHKLINE PLC 15% 1 304 548 0.03%

Kenya Power 15% 1 302 492 0.03%

JPMORGAN CHASE & CO COMMON STOCK USD 1 15% 1 294 280 0.03%

TATA CONSULTANCY SERVICS LTD 15% 1 292 823 0.03%

MCDONALD'S CORP COMMON STOCK USD 0.01 15% 1 288 700 0.03%

MEDTRONIC INC 15% 1 268 048 0.03%

EXXON MOBIL CORP COMMON STOCK USD 0 15% 1 251 447 0.03%

AMGEN INC COMMON STOCK USD 0.0001 15% 1 249 004 0.03%

BANCO BRADESCO PN 15% 1 247 341 0.03%

INTERCONTINENTAL HOTELS GROUP 15% 1 220 914 0.03%

SAP 15% 1 219 748 0.03%

FACTSET RESEARCH SYSTEMS INC COMMON STOCK USD.01 15% 1 212 813 0.03%

ALPHABET INC - CL A 15% 1 204 119 0.03%

ALTRIA GROUP INC 15% 1 187 883 0.03%

Misr Hotel Company - HILTON 15% 1 183 647 0.03%

TEXAS INSTRUMENTS 15% 1 171 820 0.03%

SAMSUNG ELECTRONICS CO LTD GDR 15% 1 169 501 0.03%

UNION PACIFIC CORP COMMON STOCK USD 2.5 15% 1 159 124 0.03%

NIKE INC COMMON STOCK USD 1 15% 1 148 913 0.03%

Royal Dutch Petrol 15% 1 094 374 0.03%

TORONTO-DOMINION COM 15% 1 084 370 0.03%

ACCENTURE PLC COMMON STOCK USD 0.0000225 15% 1 080 640 0.03%

SALESFORCE.COM INC 15% 1 072 616 0.03%

SIEMENS AG 15% 1 069 266 0.03%

Glaxosmithkline 15% 1 016 005 0.03%

Commonwealth Bk of Australia Ordinary AUD 15% 997 216 0.03%

NHN CORP 15% 997 039 0.03%

KB FINANCIAL GROUP 15% 991 107 0.03%

CTRIP.COM INTERNATIONAL ADR 15% 988 875 0.03%

BRISTOL-MYERS SQUIBB CO COMMON STOCK USD 0.1 15% 986 672 0.03%

GILEAD SCIENCES INC COMMON STOCK USD 0.001 15% 976 146 0.03%

SCHLUMBERGER LTD COMMON STOCK USD 0.01 15% 963 479 0.03%

BANK OF AMERICA CORP COMMON STOCK USD 0.01 15% 959 943 0.02%

WELLS FARGO & CO COMMON STOCK USD 1.666 15% 934 089 0.02%

UNILEVER NV CVA 15% 921 336 0.02%

NETEASE.COM INC ADR 15% 898 191 0.02%

NESTLE 15% 890 428 0.02%

CHEVRON CORP COMMON STOCK USD 0.75 15% 881 562 0.02%

LOWES COS INC 15% 878 710 0.02%

CONOCOPHILLIPS COMMON STOCK USD 0.01 15% 874 272 0.02%

NOVO NORDISK AS 15% 873 126 0.02%

SHINHAN FINANCIAL GROUP LTD 15% 870 432 0.02%

UNITEDHEALTH GROUP INC COMMON STOCK USD 0.01 15% 863 135 0.02%

AT&T INC COMMON STOCK USD 1 15% 847 438 0.02%

PUBLIC BANK BERHAD 15% 843 960 0.02%

66


SCHEDULE IB


CATERPILLAR INC COMMON STOCK USD 1 15% 830 931 0.02%

HINDUSTAN UNILEVER LTD INR 15% 824 491 0.02%

HOME DEPOT INC/THE COMMON STOCK USD 0.05 15% 812 337 0.02%

BERKSHIRE HATHAWAY INC COMMON STOCK USD 0.0033 15% 811 841 0.02%

UNITED PARCEL SERVICE INC COMMON STOCK USD 0.01 15% 784 352 0.02%

MEDIATEK INC 15% 781 103 0.02%

NAN YA PLASTIC 15% 777 177 0.02%

CHINA MERCHANTS BANK H 15% 766 107 0.02%

WESTPAC BANKING CORP 15% 765 887 0.02%

PFIZER INC COMMON STOCK USD 0.05 15% 748 599 0.02%

CSL 15% 748 326 0.02%

BANK CENTRAL ASIA 15% 745 803 0.02%

China Pharmaceutical Group (Red Chip) 15% 737 854 0.02%

LG CHEM LTD COMMON STOCK KRW5000. 15% 736 377 0.02%

HSBC Holdings 15% 734 742 0.02%

UNILEVER 15% 734 185 0.02%

AMERICAN EXPRESS CO COMMON STOCK USD 0.2 15% 732 633 0.02%

SUNCOR ENERGY 15% 727 676 0.02%

STARBUCKS CORP COMMON STOCK USD 0.001 15% 725 955 0.02%

NOVATEK OAO SPONS GDR REG S 15% 723 552 0.02%

Red Star Express 15% 720 932 0.02%

SONY CORP 15% 714 330 0.02%

PNC FINANCIAL SERVICES GROUP INC/THE COMMON STOCK 15% 708 999 0.02%

L OREAL 15% 707 738 0.02%

AXIS BANK LTD 15% 705 954 0.02%

OCCIDENTAL PETROLEUM CORP COMMON STOCK USD 0.2 15% 705 372 0.02%

CHUNGHWA TELECOM CO 15% 693 980 0.02%

NEW ORIENTAL EDUCATIO SP ADR 15% 693 633 0.02%

TELEKOMUNIKASI INDONESIA PER 15% 691 355 0.02%

Boeing Co/The Common Stock USD 5.0 15% 691 095 0.02%

ANTHEM INC 15% 683 735 0.02%

BAT Zimbabwe 15% 681 425 0.02%

CHINATRUST FINL HLDGS 15% 681 087 0.02%

Bk of Nova Scotia Common Stock CAD 15% 676 225 0.02%

GEELY AUTOMOBILE HOLDINGS LT 15% 673 155 0.02%

UNI-PRESIDENT ENT. 15% 669 991 0.02%

NOVARTIS (REGD) 15% 666 029 0.02%

Canadian National Railway Co Common Stock CAD 15% 659 738 0.02%

Mondelez International 15% 653 237 0.02%

TJX COS INC/THE COMMON STOCK USD 1 15% 651 566 0.02%

Global Telecom Holding 15% 647 582 0.02%

BIOGEN INC COMMON STOCK USD 0.0005 15% 644 002 0.02%

BLACKROCK INC COMMON STOCK USD 0.01 15% 642 683 0.02%

Prudential 15% 640 107 0.02%

CELGENE CORP COMMON STOCK USD 0.01 15% 636 715 0.02%

AIR LIQUIDE(L') EUR5.50 15% 631 023 0.02%

LG HOUSEHOLD & HEALTH CARE 15% 629 151 0.02%

FUBON FINANCIAL HOLDING CO LTD COMMON STOCK TWD10. 15% 624 301 0.02%

UAC of Nigeria PLC 15% 620 922 0.02%

BANK OF NEW YORK MELLON CORP/THE COMMON STOCK USD 15% 618 640 0.02%

COMCAST CORP COMMON STOCK USD 0.01 15% 617 880 0.02%

SK INNOVATION CO LTD COMMON STOCK KRW5000. 15% 612 588 0.02%

TENAGA NASIONAL BHD COMMON STOCK MYR1. 15% 608 590 0.02%

ALLIANZ SE 15% 604 590 0.02%

67


SCHEDULE IB


BASF SE Ordinary EUR 15% 601 682 0.02%

Australia & New Zealand Bking Ordinary AUD 15% 600 471 0.02%

HANA FINANCIAL GRP 15% 600 435 0.02%

KEYENCE CORP 15% 599 237 0.02%

ING GROUP CVA 15% 596 042 0.02%

BP PLC 15% 594 287 0.02%

ENBRIDGE 15% 594 022 0.02%

ACE Ltd Common Stock USD 30.6 15% 588 173 0.02%

BM&F BOVESPA ON 15% 585 845 0.02%

CP ALL PCL - FOREIGN 15% 584 556 0.02%

CITIGROUP INC COMMON STOCK USD 0.01 15% 582 605 0.02%

Reckitt Benckiser Group PLC 15% 579 359 0.02%

APPLIED MATERIALS 15% 575 518 0.01%

CME GROUP INC COMMON STOCK USD 0.01 15% 575 310 0.01%

NATIONAL AUSTRALIA BANK 15% 573 176 0.01%

TOYOTA MOTOR 15% 566 530 0.01%

PRAXAIR INC COMMON STOCK USD 0.01 15% 565 133 0.01%

CSX CORP COMMON STOCK USD 1 15% 558 648 0.01%

Samsung SDI Co., Ltd 15% 556 938 0.01%

ITAUSA PN 15% 548 059 0.01%

ZURICH FINANCIAL SERVICES 15% 547 558 0.01%

VALERO ENERGY CORP COMMON STOCK USD 0.01 15% 539 806 0.01%

AAC TECHNOLOGIES HOLDINGS 15% 537 532 0.01%

SINO BIOPHARMACEUTICAL LTD 15% 534 150 0.01%

Deere & Co Common Stock USD 1.0 15% 533 955 0.01%

CEMEX CPO 15% 524 338 0.01%

PHILLIPS 66 COMMON STOCK USD 15% 519 275 0.01%

ICICI BANK LTD 15% 515 181 0.01%

COGNIZANT TECHNOLOGY SOLUTIONS CORP COMMON STOCK 15% 513 544 0.01%

Bk of Montreal Common Stock USD 15% 511 595 0.01%

HONDA MOTOR CO 15% 510 986 0.01%

ZOETIS INC 15% 507 222 0.01%

MAHINDRA & MAHINDRA LTD COMMON STOCK INR5. 15% 505 461 0.01%

AXA 15% 499 489 0.01%

AMOREPACIFIC CORP 15% 498 456 0.01%

China Mengniu Dairy Company Ltd 15% 496 884 0.01%

AMERICAN INTERNATIONAL GROUP INC COMMON STOCK USD 15% 495 814 0.01%

CAPITAL ONE FINANCIAL CORP COMMON STOCK USD 0.01 15% 494 265 0.01%

HUMANA INC COMMON STOCK USD 0.166 15% 493 531 0.01%

Other issuers (Top issuers listed and the rest that is in total less than 5%, under other) 191 838 697 4.99%


TAIWAN SEMICONDUCTOR MANUFACTU COMMON STOCK TWD10. 10% 9 172 987 0.24%

RIC III US DLR CASH II-RROLL 10% 6 591 774 0.17%

FOMENTO ECONOMICO MEXICAN 10% 910 949 0.02%

BANK RAKYAT INDONESIA 10% 570 784 0.01%

HCL TECHNOLOGIES 10% 385 329 0.01%


(a)(iii) Issuer market capitalization of less than R2 billion, or an amount or conditions as prescribed 25% 6 037 861 0.16%

ANHEUSER BUSCH INBEV SA/NV 5% 1 609 648 0.04%

S+P GLOBAL INC 5% 615 078 0.02%

DOWDUPONT INC USD 0.01 5% 613 574 0.02%

68


SCHEDULE IB


Shenzhou International Group 5% 489 976 0.01%

FIRST FINANCIAL HLDG CO 5% 307 374 0.01%


(b)10% 58 731 0.00%

CONCORDIA FINANCIAL GROUP LTD 2.5% 58 731 0.00%

4 IMMOVABLE PROPERTY 406 974 256 10.60%

4.1 Inside the Republic 25% 393 784 310 10.25%

(a)25% 142 947 487 3.72%


GROWTHPOINT PROPERTIES LTD 15% 23 559 275 0.61%

INTU PROPERTIES PLC 15% 16 846 901 0.44%

REDEFINE PROPERTIES LTD 15% 15 876 756 0.41%

FORTRESS REIT LTD A 15% 10 174 812 0.26%

HAMMERSON PLC 15% 9 771 799 0.25%



Accelerate Property Fund Ltd 10% 1 497 873 0.04%

Arrow A Linked Units 10% 826 059 0.02%

DELTA PROPERTY FUND LTD 10% 680 281 0.02%

ECHO POLSKA PROPERTIES NV 10% 1 100 158 0.03%

Emira Property Fund 10% 751 201 0.02%

EQUITES PROPERTY FUND LTD 10% 1 015 079 0.03%

INV AUS PROP FUND 10% 1 923 649 0.05%

MAS PLC 10% 2 018 951 0.05%

REBOSIS PROPERTY FND 10% 701 825 0.02%

Sirius Real Estate Ltd 10% 1 215 393 0.03%

STOR-AGE PROPERTY REIT LTD 10% 693 311 0.02%

(a)(iii) Issuer market capitalization of less than R3 billion or an amount or conditions as prescribed 25% 5 037 713 0.13%

DIPULA INCOME FUND A 5% 2 248 908 0.06%

GEMGROW PROPERTIES LTD A 5% 686 924 0.02%

Hospitality Prop Fund B 5% 1 155 928 0.03%

TEXTON PROPERTY FUND 5% 764 408 0.02%

Tower Property Fund Limited 5% 181 546 0.00%

(b)

15% 250 836 823 6.53%

Cape Joint Properties 5% 20 538 911 0.53%

COMMUNITY PROPERTY LOAN BOND 29122017 5% 8 942 299 0.23%

DELTA PROPERTY FUND L/A DRIP 5% 60 063 0.00%

Newshelf Properties 5% 221 295 550 5.76%

4.2 Foreign 25% 13 189 946 0.34%

(a)

25% 13 189 946 0.34%


Preference shares, ordinary shares and linked units comprising shares linked to

debentures in property companies, or units in a Collective Investment Scheme in

Property, listed on an exchange

Immovable property, preference and ordinary shares in property companies, and linked

units comprising shares linked to debentures in property companies, not listed on an

exchange

Preference shares, ordinary shares and linked units comprising shares linked to

debentures in property companies, or units in a Collective Investment Scheme in

Property, listed on an exchange


not listed on an exchange

69


SCHEDULE IB


KLEPIERRE 15% 1 314 238 0.03%

Real Estate Investment Zambia 15% 1 293 977 0.03%

AMERICAN TOWER CORP REIT USD 0.01 15% 765 780 0.02%

Growthpoint Property New Share REIT 15% 677 022 0.02%

SIMON PROPERTY GROUP INC 15% 623 889 0.02%


(a)(ii) Issuer market capitalization of between R3 billion and R10 billion, or an amount or conditions as prescribed25% 0 0.00%

NO ASSETS 10% 0 0.00%

(a)(iii) Issuer market capitalization of less than R3 billion or an amount or conditions as prescribed 25% 153 278 0.00%

Ascendas Real Estate Investmen REIT SGD 5% 21 408 0.00%

CK ASSET HOLDINGS LTD 5% 131 871 0.00%

(b)15% 0 0.00%


5 COMMODITIES 10% 7 241 409 0.19%

5.1 Inside the Republic 10%

(a)Kruger Rands and other commodities on an exchange, including exchange traded

commodities10% 7 241 409 0.19%

(a)(i) Gold (including Kruger Rands) 10% 7 241 409 0.19%

New Gold Issuer Ltd 10% 7 241 409 0.19%

(a)(ii) Other commodities 5% 0 0.00%


5.2 Foreign

(a) 10% 0 0.00%

(a)(i) Gold 10% 0 0.00%

NO ASSETS 10% 0 0.00%

(a)(ii) Other commodities 5% 0 0.00%


6133 023 0.00%

(a) Section 19(4) of the Pension Funds Act 5% 133 023 0.00%

CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY 133 023 0.00%

(b) 10% 0 0.00%

NO ASSETS 0 0.00%

7 95% 0 0.00%

815% 214 838 568 5.59%

8.1 Inside the Republic 15% 214 838 568 5.59%

(a) Hedge fund 10% 176 976 306 4.61%

(a)(i) Funds of hedge funds 10% 0 0.00%

Immovable property, preference and ordinary shares in property companies, and linked

units comprising shares linked to debentures in property companies, not listed on an

exchange

Gold and other commodities on an exchange, including exchange traded commodities

INVESTMENTS IN THE BUSINESS OF A PARTICIPATING EMPLOYER INSIDE THE

REPUBLIC IN TERMS OF:-

To the extent it has been allowed by an exemption in terms of section 19(4A) of the

Pension Funds Act

HOUSING LOANS GRANTED TO MEMBERS IN ACCORDANCE WITH THE

PROVSIONS OF SECTION 19(5)

HEDGE FUNDS, PRIVATE EQUITY FUNDS AND ANY OTHER ASSET NOT

REFERRED TO IN THIS SCHEDULE

70


SCHEDULE IB



(a)(ii) Hedge funds 10% 176 976 306 4.61%

LA Retirement Fund Steyn L/S Equity Fund 2.5% 84 195 440 2.19%

LARF - MAP 260 Fund GP (Pty) Ltd - Fairtree Assegai ? Class 1 2.5% 92 780 866 2.42%

(b) Private equity funds 10% 19 543 679 0.51%

(b)(i) Funds of private equity funds 10% 0 0.00%


(b)(ii) Private equity funds 10% 19 543 679 0.51%

AllF Private Equity Fund 2.5% 19 543 679 0.51%

(c) 2.5% 18 318 583 0.48%

Cape Joint Properties 2.5% 5 660 328 0.15%

Sygnia's difference 2.5% 12 658 255 0.33%

8.2 Foreign 15% 0 0.00%

(a) Hedge fund 10% 0 0.00%

(a)(i) Funds of hedge funds 10% 0 0.00%


(a)(ii) Hedge funds 10% 0 0.00%

NO ASSETS 2.5% 0 0.00%

(b) Private equity funds 10% 0 0.00%

(b)(i) Funds of private equity funds 10% 0 0.00%


(b)(ii) Private equity funds 10% 0 0.00%

NO ASSETS 2.5% 0 0.00%

(c) 2.5% 0 0.00%

NO ASSETS 2.5% 0 0.00%

TOTAL ASSETS - REGULATION 28 (D above) 3 840 943 886 100.00%

BREACHES IN TERMS OF SUB REGULATION 3 OF REGULATION 28

As at 30 June 2016

Percentage of Fair

ValueRegulation 28 limits

Asset Limits in terms of sub regulation 3(f) %

Other debt instruments not listed 1.48%

Equities not listed 0.00%

Immovable property not listed 6.53%

Hedge funds, Private Equity funds and other assets 5.59%

TOTAL 13.60% 35.00%

Other assets not referred to in this schedule and excluding a hedge fund or private

equity fund

Other assets not referred to in this schedule and excluding a hedge fund or private

equity fund

71


SCHEDULE IB


Asset Limits in terms of sub regulation 3(g)

Equities not listed 0.00%

Private Equity funds 0.51%

TOTAL 0.51% 15.00%

Asset Limits in terms of sub regulation 3(h)

Cash and deposits with a South African Bank 1.20%

Debt instruments guaranteed by a South African Bank 6.51%

TOTAL 7.71% 25.00%

NOTES:

1. Credit balance in current accounts must be included in item 1.

2.

Investments in institution/company/individual Item % of Fair Value Fair Value ( R)

Investment in Newshelf 922 (Pty) Ltd 4.1(b) 5.76% 221 295 550

…………………………………………………………… ……… ……………. …………….

…………………………………………………………… ……… ……………. …………….

3. EXEMPTIONS GRANTED BY THE REGISTRAR

Item Max % Date of letter Expiry Date

…………………………………………………………… ……… ……………. …………….

…………………………………………………………… ……… ……………. …………….

…………………………………………………………… ……… ……………. …………….

If the investments exceed the limit per institution/company/individual and no exemption has been obtained, the details below must be completed for each

institution/company/individual in each category of assts.

72

LA Retirement Fund

ASSETS HELD IN COMPLIANCE WITH REGULATION 28 AS AT 30 June 2018

INVESTMENT SUMMARY (REGULATION 28)

LocalPercentage of Fair

value

Foreign

(Excluding Africa)

Percentage of Fair

valueAfrica

Percentage of Fair

valueTotal

R % R % R % R

1 Balances or deposits, money market instruments

issued by a bank including Islamic liquidity

management financial instruments168 873 348 4.40% -2 024 942 -0.05% 0 0.00% 166 848 407

2 Debt instruments including Islamic debt

instruments 1 213 377 184 31.59% 14 159 150 0.37% 0 0.00% 1 227 536 334

3Equities

964 214 074 25.10% 611 589 625 15.92% 241 568 191 6.29% 1 817 371 890

4Immovable property

393 784 310 10.25% 11 419 555 0.30% 1 770 392 0.05% 406 974 256

5Commodities

7 241 409 0.19% 0 0.00% 0 0.00% 7 241 409

6 Investment in the business of a participating

employer 133 023 0.00% 0 0.00% 0 0.00% 133 023

7 Housing loans granted to members - section 19(5)0 0.00% 0 0.00% 0 0.00% 0

8 Hedge Funds, private equity funds and any other

assets not referred to in this schedule 214 838 568 5.59% 0 0.00% 0 0.00% 214 838 568

9 Fair value of assets to be excluded in terms of

sub regulations 3(c) and 8(b) of Regulation 28 331 997 0.01% 0 0.00% 0 0.00% 331 997

10 Investment not disclosed/data not available for

disclosure 0 0.00% 0 0.00% 0 0.00% 0

Total (equal to fair value of assets) 2 962 793 913 77.13% 635 143 388 16.53% 243 338 583 6.33% 3 841 275 884

Note: Maximum Foreign limits and disclosure in terms of South African Reserve Bank requirements

Name of Retirement Fund:

Reference number : 12/8/32689/2

SCHEDULE IB

73

Documents

ANNUAL FINANCIAL STATEMENTS IN TERMS SECTION 15 OF … · 2019-04-05 · 3rd Floor, Waterway House, 3 Dock Road, V&A Waterfront, Cape Town, 8000 Momentum Consultants and Actuaries