Warwick General Presentation

WARWICK WEALTH PRESENTATION

1. Who is Warwick Wealth?2. Warwick Asset Management3. The Warwick Financial Plan4. Investment Fundamentals5. Our Investment Philosophy6. The Client Financial Analysis7. The Way Forward8. Closing Questions

AGENDA

1. WHO IS WARWICK WEALTH?

• The local and international investment house, known as the “Investment Specialists”.

• Established in 2002.

• The company has four professional product houses:

o INVEST - South African and Offshore bespoke share portfolios.

o FUNDS - Regulated collective investment funds, for the South African and Offshore

investor.

o OFFSHORE - International fund, asset management and other private client products.

o TRUST - Will drafting, estate planning, executorship, and Trustee services.

• A financial institution with authorised companies in several jurisdictions, Warwick Wealth

companies conduct their own fund, asset management, asset allocation, Will drafting and

executorship services, as well as delivering exceptional client care.

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1. Who is Warwick Wealth?

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• Warwick in South Africa has offices in four of the country’s largest cities, Cape Town, Port

Elizabeth, Durban and Johannesburg, from which it is able to service its extensive client base

across the whole of South Africa.


• Assets Under Management and Administrationo Warwick collectively manages and administers in excess of R20 billion of private client

investments and assets, via its Asset Management and Estates divisions.

• Staff Complimento Warwick employs in excess of 100 qualified, salaried staff members.

o Warwick’s professional financial advisors assess each client’s financial needs and then

create a comprehensive and bespoke financial plan based upon the financial analysis

done for each client. This ensures that each client’s financial needs and objectives are

met and then reviewed on an on-going basis.

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• Client Foldero A Client Folder is created for each Warwick client consisting of the following:

Invest Account – A list of investment solutions to meet the financial needs and

objectives of each client, both onshore and offshore.

Cash Account – Is a bespoke offering by Warwick providing attractive cash rates

and assistance, to each client, assisting them to manage their cash flows.

Estate Account – Warwick draft local and/or international wills for clients at no cost.

The Executor’s Fees are charged at a discounted fee of 2.5%, on the gross asset

value, on all estates administered by Warwick, subject to a minimum fee of R5 000.

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• Client Service Modelo The Client Teams are led by a Wealth Specialist who is supported by a team of

professionals who take care of all the client’s needs and queries, to deliver an exceptional

level of client care.

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CLIENT RELATIONSHIP OFFICER (CRO)

FUND CLIENT SPECIALIST (FCS)

CLIENT RELATIONSHIP SPECIALIST (CRS)

WEALTH SPECIALIST (WS)

2. WARWICK ASSET MANAGEMENT

• Introductiono Our Warwick Asset Management team consists of handpicked and highly qualified

individuals selected for their exceptional ability to manage Private Client Portfolios and

Funds to the highest standard and provide tailored solutions for all Warwick clients.

o The team utilises an array of external analysis and research, as well as conducting their

own primary research on the South African market.

o The team is responsible for managing the South African client Portfolios, as well as

Warwick’s suite of South African FSB approved Funds. On-going monitoring of all

Portfolio and Fund models ensures that the investment vehicles match exactly their

stated objectives and thus give clients their desired exposure and returns.

o This ensures that the clients’ needs, security and returns are optimised during every

stage of this long-term working relationship.

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2. Warwick Asset Management

• Warwick Onshore Direct Equity Portfolio Modelso Warwick Asset Management utilises the following three broad models for all clients who

qualify and have chosen to have a direct equity share portfolio.

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Flexible Portfolio – Voluntary Investments

Managed Portfolio – Post-Retirement Investments

Balanced Portfolio – Pre-Retirement Investments


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Warwick MET Balanced Fund – A multi asset fund that aims to provide long term capital growth and moderate income. The benchmark is CPI + 4%, Regulation 28 compliant

Warwick MET Enhanced Income Fund – A conservative fund that aims to provide a high level of sustainable income and capital preservation. The benchmark is STEFI Call + 1%, Regulation 28 compliant

Warwick MET Balanced Fund of Funds – A multi manager and multi asset fund that aims to provide long term capital growth and moderate income. The benchmark is CPI + 4%, Regulation 28 compliant


Warwick MET International Fund of Funds – This fund provides local investors with Rand denominated investment access to Warwick’s offshore suite of Funds

• Warwick Onshore Fund Suiteo The following are Warwick’s Onshore Fund offering available for sale in South Africa:

Warwick MET Property Fund – A listed property fund that aims to provide high income and long term capital growth. The benchmark is the SA Listed Property Index

Warwick MET Equity Fund - This fund predominantly invests into JSE listed shares and aims to provide long term capital growth. The benchmark is the JSE All Share Index

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International Fund – An FSB approved Fund that primarily invests in a group of 25 – 30 top rated international equities, funds and cash. This fund aims to achieve long term capital growth

2. Warwick Asset Management• Warwick Offshore Direct Equity Portfolio Models and Fund

o The following is Warwick’s Offshore Direct Equity Portfolio and Fund offering available for

sale in South Africa:

Managed Portfolio – Primarily invests in a group of 20 - 25 top rated international equities, fixed income and cash. This portfolio aims to achieve moderate income generation and long term capital growth

Flexible Portfolio – Primarily invests in a group of 20 – 25 top rated international equities, fixed income and cash. This portfolio aims to achieve long term capital growth

3. DEVELOPING THE WARWICK FINANCIAL PLAN

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3. The Warwick Financial Plan

Capital

Income

Lifespan

Interest %

? ?

?

?

• The Four Key Numberso These Four numbers are the core elements that dictate every Financial Plan

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• How do we develop your Financial Plano The process we follow and the way in which we draft the Financial Plan, provides you with a

framework for CORRECT decision-making.

1. You decide on the LIFESTYLE. 2. We calculate the required RETURN to

sustain the lifestyle. 3. We then determine the required

ASSET ALLOCATION to achieve the required return.

4. All of the above consider the RISK ANALYSIS that will be conducted with you.


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1st Meeting Client Financial Analysis and Information Gathering

2nd Meeting Presentation of your Financial Plan

2nd Meeting ConclusionImplementation and Paperwork

Ongoing ReviewsOngoing review of Financial Plan

• The Warwick Client Take-On Processo A professional process is followed to gather the required information and ensure that we

have a full understanding of your “four key numbers” and therefore you understand clearly the process that we will follow in developing your Financial Plan.


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• An Example of an Unsustainable Financial Plan

Longevity = 95

Liquidity = 85

Income

Interest %

Lifespan

Capital


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• An example of a Sustainable Financial Plan

Longevity = 95

Liquidity = 95

CapitalInterest (R) Income

Lifespan


4. INVESTMENT FUNDAMENTALS

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• Why it is important to outperform inflation

4. Investment Fundamentals

Volkswagen Citi Golf/Vivo - price increase over time

2010R101 500

1978R5 300

1990R19 000

2040Assuming Inflation at 6% a

Polo VIVO will cost R582 964

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• Why it is important to outperform inflation

Wimpy Farmhouse Breakfast in 1983


Farmhouse Breakfast R2.70

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4. Investment Fundamentals• Why it is important to outperform inflation

Wimpy Farmhouse Breakfast TODAY

Today R45.00

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10 Historical South African Equity Returns9 2002 2010

1960 to 20148 2000 2007

7 1998 2011 2003 2004

6 1997 1996 1988 2001

5 1992 1995 1983 1994

4 1990 1984 1974 1977 2009 2006 1993

3 1975 1987 1973 1967 1966 1991 2005 1989

2 2008 1969 1981 1971 1964 1963 1982 1985 1986 1999

1 1970 1960 1976 1965 1961 1962 1978 1980 1968 1972 1979

<-20%

-20% to -10%

-10% to 0%

0% to 10%

10% to 20%

20% to 30%

30% to 40%

40% to 50%

50% to 60%

60% to 70%

> 70%

2012

2015

2014

• What is the importance of a long-term investment philosophy?o Warwick follow a Long Only Active investment management strategy.

2013

Source: Firer & Staunton, IAJ, 2002

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Asset Allocation 94%

Stock picking 4%• Stock picking?

• Market timing?

• Asset allocation?

Market timing 2%

• What determines the majority of Risk and Returns?o What do you think the most important element is when constructing your investment

portfolio?

Source: Financial Analyst Journal, May – June 1991 “Determinants of Portfolio Performance” Brinson, Hood and Beebower 1986, 1991

5. OUR INVESTMENT PHILOSOPHY

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5. Our Investment Philosophy• Warwick Asset Management follow a Long Only Active Investment Philosophy

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• Our Investment Process

5. Our Investment Philosophy

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• Our Investment Process – Stock Selection

5. Our Investment Philosophy

6. CLIENT FINANCIAL ANALYSIS

• The following is required for the drafting of your Financial Plan

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6. Client Financial Analysis

Personal InformationCurrent Info, Investments, Goals, Objectives, Income and Expenditure

Risk Analysis Analyse your understanding and appetite for risk

Needs AnalysisConsider your capital growth and Estate needs

7. THE WAY FORWARD

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7. The Way Forward

CONCLUDE YOUR FULL FINANCIAL ANALYSIS This will now be done jointly with your Wealth Specialist Team.

BUILD YOUR UNIQUE FINANCIAL PLANWe will meticulously construct a comprehensive and bespoke Financial Plan based entirely on your Financial Analysis and needs.

PRESENT YOUR FINANCIAL PLANWe will present you with your Personal Financial Plan at the following meeting, the date of which we will agree today.

IMPLEMENT YOUR FINANCIAL PLANUpon your acceptance of your Financial Plan at the next meeting, Warwick will conclude all documentation and implement the plan.

• What is the process that we will now follow?

8. CLOSING QUESTIONS

PLEASE TAKE NOTEThis document is for information purposes only and does not constitute or form part of any issue to offer or sell, or any solicitation or any offer to subscribe for or purchase any particularinvestment. It is recommended that investors obtain professional financial advice from a licensed financial advisor prior to investing. Warwick Wealth, or any of its subsidiary companies

directors, employees or officers shall not be responsible and disclaim any liability for any loss, expense and or damages (direct, indirect, consequential and or special) which may be suffered

due to or be attributable, directly or indirectly, to the reliance of, or use of any information contained in this document.Warwick Invest (Pty) Ltd is an Authorised Financial Services Provider FSP no. 1218

Warwick Funds (Pty) Ltd is an Authorised Financial Services Provider FSP no. 45442Warwick Private Clients (Pty) Ltd is an Authorised Financial Services Provider FSP no. 44731

Warwick General Presentation

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