Sygnia CPI + 6% Fund

Investment objective and strategy
The Sygnia CPI + 6% Fund portfolio targets an annual return of the consumer price index (CPI) plus 6% over a rolling 24-month period and no capital losses over a rolling 60-month period. This multi-asset-class fund is managed with a high exposure to equities to seek long-term returns of at least 6% per annum above inflation while still moderating short-term volatility. The fund has exposure to both domestic and foreign assets, which include equities, fixed interest and money market assets, and is comprised of a number of underlying portfolios managed by different managers selected by Sygnia. The fund is managed within prudential guidelines and maintains a maximum 75% equity exposure. Derivatives are allowed for efficient portfolio management.

What the fund invests in

Risk profile
The fund has a medium-to-high risk profile, as it has a 70% strategic allocation to South
African and global equities. The risk is managed by spreading investments across asset
classes and among a number of asset management houses. The former ensures a diverse
source of returns over market cycles, while the latter diversifies investment styles and
philosophies. Tactical asset allocation is used to take advantage of short-term mispricing
opportunities in the market in an efficient and cost-effective manner and as a risk
management tool in times of market downturns.

Who should invest
Investors seeking higher returns who are willing to tolerate higher volatility and who aim to
maximise capital accumulation over the longer term. The strategy complies with Regulation
28 of the Pension Funds Act 1956, as amended, so is suitable for investors in retirement
annuities, preservation, pension and provident funds.

And for how long?
A minimum of 5 years.

Sygnia charges an annual management fee, calculated and accrued daily. This fee is payable
monthly in arrears. The underlying asset managers may charge performance-related fees
relative to performance benchmarks designed by Sygnia, which are intended to incentivise
the manager to maximise returns. These performance fees are accrued daily and collected
monthly. Consequently, the TER of the product may be higher than the annual management
fee quoted above.

Disclosures
Sygnia does not provide advice and therefore does not charge advice fees. If a financial planner is appointed, initial and ongoing advice fees may be payable as agreed upon between you and your financial advisor. The payments of these fees are facilitated by the Linked Investment Service Provider (LISP) and not directly by Sygnia. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER’s. Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time
including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER.

Disclaimer
The Sygnia Group is a member of the Association for Savings and Investment SA. Sygnia Collective Investments RF (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium to long-term investments. Sygnia Asset Management (Pty) Limited (FSP 873), an authorised financial services provider, is the appointed investment manager of the Fund. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result in a higher fee structure and that the value of investments / units / unit trusts may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available from the Manager on request.
Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor
performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. The Manager does not provide any guarantee either with
respect to the capital or the return of a portfolio. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including
any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest in foreign countries and therefore it
may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. A copy of the Minimum Disclosure Document (MDD) is available on our website: www.sygnia.co.za