Independent, Objective, Creative The Enhance Wrap Fund Solution Portfolio Construction Simplified Investment Plans That Work

Independent, Objective, Creative

The Enhance Wrap Fund Solution

Portfolio Construction Simplified

Investment Plans That Work


What is a Wrap Fund

Asset Classes

Investment Managers

Investment Processes

Investment Styles

Global Regions

Is a Wrap Fund a Fund of Funds

Is a Wrap Fund a Multi Manager Fund

It could be said that a Wrap Fund is something of a hybrid, focusing on blending:


The main objectives of a Wrap Fund

Match Portfolio Risk with Client Risk

Reduce Volatility

Employ Diligent Fund Selection Processes

Identify Consistently Successful Fund Managers

Outperform Clearly Stated Benchmarks

Provide Clients with an Efficient Portfolio Management Process

Keep Costs Competitive

Wrap Fund Managers seek to build portfolios which:


What Makes the Enhance Wrap Funds Simple

Managed by Professionals Who Understand Client Needs

Investors have Direct Access to the Fund Managers

Investors Become Members of the Enhance Investor Community

Total Investment Decision Transparency and Communication

Absolute Performance Benchmarks

Efficient Portfolio Management and Re-Balancing

Clearly Defined Investment Objectives & Mandates


Who Manages the Enhance Wrap Funds

In Collaboration With Glacier Financial Solutions

Rafiq Taylor: Portfolio Manager

B.Com. (Economics)B.Com. (Honours) (FAPM)Sanlam Multi Manager International (SMMI)

Peter Strydom: Research

National Certificate Wealth ManagementIndependent Financial Advisor (IFA)Peter Strydom Financial Services (PSFS)

JP Newman: Business Development

B.Com. (Economics)B.Com. (Honours) (FAPM)Sanlam Multi Manager International (SMMI)

Garth Strydom: Research

B.Com.Certified Financial Planner (CFP)Peter Strydom Financial Services (PSFS)


Why an Enhance Wrap Fund

Unlike traditional asset managers who select the underlying assets in a portfolio, Enhance & SMMI focus on finding the best managers in the market who in turn select the underlying assets for our clients. We believe there are skilful managers who are able to achieve real value for their investors over time. But not all investment management styles fare equally well in all phases of the market cycle. At times market conditions favour a particular management style, but when those conditions change, managers with a different portfolio construction style or bias tend to fare better.When selecting a traditional, single-asset manager, clients seldom unpack the biases that underpin that manager’s investment philosophy, such as his view of risk and how best to manage it. In doing so, they limit themselves to the manager’s specific investment style and skill set, which may not be optimally suited to achieving their own investment objectives. Enhance & SMMI’s analysis process is carefully designed to uncover these biases, to understand the risk inherent in the various management styles and to ensure manager selection is geared towards achieving the fund’s investment objectives in the long run.We believe we can help our clients achieve better investment outcomes by finding and blending skilful managers who are not only suited to today’s environment, but geared to benefiting from changing market conditions.Because of our size, we are also able to take advantage of our pricing power and offer our clients the benefit of doing this at competitive prices.

This makes a Multi-Managed Wrap Fund solution a compelling investment proposition.


Investment Management Process

Fund management: Rebalancing, allocation, calls

Contact: a) RFP covering business structure, investment process; performance and risk issues. b) On-site visits with key decision makers.

Qualitative: business structure; team dynamics, decision making; philosophy, fund construction.

Evaluate manager information

Combination analysis: Blending, correlation, tracking error, information ratio, qualitative factors.

Appoint Managers

SMM Investment Management Process summary

Screening model: Historical risk & return data; size, performance consistency.

Quantitative: Performance and risk analysis, attribution, mandate compliance, ratio analysis.

Mandate & Benchmark Alignment

Portfolio Construction: based on manager research, financial market analysis, combination analysis & mandates.

Monitor: All Qualitative and Quantitative factors



OrganisationalStructure

Holding Company (12)

Inv Management (25)

Key Focus Areas

SA

EquitiesFixed

InterestAbsolute Return

Philosophy (2)

Team Dynamics (6)

Style (4)

Res. & Valuation (11)

Portf. Construction (10)

Portf. Characteristics (9)

Comp. Advantages (2)

Risk Management (7)

Products (8)

Investment ProcessOrganisationalStructure

Holding Company (12)

Inv Management (25)

Key Focus Areas

SA

EquitiesFixed

InterestAbsolute Return

Philosophy (2)

Team Dynamics (6)

Style (4)





Risk Management (7)

Products (8)

Investment Process Philosophy (2)

Team Dynamics (6)

Style (4)





Risk Management (7)

Products (8)

Philosophy (2)

Team Dynamics (6)

Style (4)





Risk Management (7)

Products (8)

Investment Process

Fund Manager Selection



QUANTITATIVEQUANTITATIVE

TRACKING ERROR

BETA

VOLATILITY

ACTIVE POSITIONS

RISK ATTRIBUTION

PERFORMANCE

INFO RATIO

QUALITATIVEQUALITATIVE

COMBINATION

ANALYSIS

INVESTMENT PROCESS

KEY INDIVIDUALS

STRENGTH & WEAKNESS

SUBJECTIVE

SMM Investment Management Process Combination Analysis

Fund Manager Blending


The Enhance Wrap Fund Range

Enhance Income Fund

Enhance Cautious Fund

Enhance Moderate Fund

Enhance Worldwide Flexible Fund


The Risk/Reward Matrix

Income

Cautious

Moderate

Flexible

Reward

RiskLow

Low

High

High


Fund Investment ObjectivesEnhance Income Fund

The Enhance Income Fund has been

structured so as to provide a low risk, low

volatility portfolio ideally suited to

providing an income. This portfolio is Regulation 28

compliant and may be used in a Living

Annuity or Retirement Fund. The fund aims to deliver a return

greater than Inflation+2% and to outperform the Multi Asset-Income Unit

Trust Sector average.

Enhance Moderate Fund

The Enhance Moderate Fund has

been structured so as to provide a medium

volatility growth portfolio and is

suitable for investors with at least a 5 year

investment time horizon. The portfolio consists of a blend of low correlation funds

& asset classes, is Reg. 28 compliant &

may be used in a Living Annuity or

Retirement Fund. The fund aims to deliver

an annual return greater than

Inflation+4% and to outperform the Multi Asset-Medium Equity

Unit Trust Sector average.

Enhance Worldwide Flexible Fund

The fund has been structured so as to provide an actively managed, asset allocation growth portfolio

and is suitable for investors with an investment time horizon of greater than 5 years. The portfolio has complete flexibility to invest across different

geographies & in all major asset classes. The fund aims to deliver an annual return of greater than

Inflation+6% over a rolling 5 year period & is not Reg. 28 compliant.


Performance & Volatility Characteristics

3 Year Simulated Performance Graphs

The graphs illustrate the volatility/performance attributes of each of the funds. The smoother the graph, the lower the risk.

These graphs are simulated and are for risk illustration purposes only. Past performance is not an indicator of future performance.


How to Invest in an Enhance Fund

Available only on the Glacier LISP Platform

Available to all Glacier registered & approved intermediaries

Can be used in:

- Living Annuities, Preservation Funds, Retirement Annuities

- Endowments, Sinking Funds

- Capital Growth & Discretionary Income Investments

- Employer Pension & Provident Funds


For more Information:

031 205 2496Telephone• Tel: 031 205 6548• Fax: 031 205 1752

Peter Strydom Financial ServicesWebsites• Sanlam Multi Manager International

[email protected]• gpstrydom@telkomsa.

http://www.psfsza.com/

http://www.sanlam.co.za/wps/wcm/connect/corporates/Sanlam/Corporates/Sanlam+Multi+Manager+International+(SMMI)

Documents

Independent, Objective, Creative The Enhance Wrap Fund Solution Portfolio Construction Simplified Investment Plans That Work