TRUSTEE EDUCATION PROGRAMME WORKSHOP OVERVIEW & FEEDBACK

FEBRUARY 2017

A SUCCESSFUL PARTNERSHIP

TRUSTEE EDUCATION

CALENDAR 2016

• 26 workshops

o 16 - Investment Fundamentals & Active Ownership

o 7 - Trustee Governance

o 1 - Responsible Investing

o 1 - Fund Annual Financial Statements analysis

o 1 - Investment Policy formulation and evaluation

• 291 trustees, principal officers and chairpersons

• 1 additional workshop paid by the fund to 9 trustees

• = Total of 300 delegates

WORKSHOP THEMES

TRUSTEE EDUCATION

1. Investment Fundamentals (one day)

2. Retirement Fund Trustee Governance and Ethics (one day)

3. Responsible Investing (one day) – NEW!

4. Employee benefits (one day ) – NEW!

5. Annual Financial Statement analysis (half-day )

6. Investment Policy formulation (half-day) – NEW!

7. Death benefits Sec 37C (half day) – NEW!

INVESTMENT FUNDAMENTALS

TRUSTEE EDUCATION

0.00%

20.00%

% R

ate

Prime

Rep…

• High level economic concepts

• Interest rates and inflation

• Asset classes

• Risk and return

• Asset Allocation & Diversification

• Formulating an Investment Policy Statement

0%

5%

10%

15%

CPI

3% band

6% band

INVESTMENT FUNDAMENTALS PROGRAMME

TRUSTEE EDUCATION

Typical schedule

09:00 – 09:20 Introductions

09:20 – 10:30 Economy Overview

10:30 – 10:45 Tea break

10:45 – 12:00 Asset Classes

12:00 – 12:30 Risk and Returns

12:30 – 13:15 Lunch

13:15 – 14:00 Asset Allocation / Diversification

14:00 – 14:45 IPS, Portfolio & Regulation 28

14:45 – 15:00 Tea

15:00 – 16:00 IPS formulation group exercise

Suppose you had R100 in a savings account

and the interest rate was 2% per year. After 5 years how much do you think you would have

in the account if you left the money to grow?

A. More than R102

B. Exactly R102

C. Less than R102

D. Do not know

E. Refuse to answer

6 M

ore th

an R102

Exact

ly R

102

Less

than R

102

Do not k

now

Refuse

to an

swer

0% 0% 0%0%0%

RETIREMENT FUND TRUSTEE GOVERNANCE AND ETHICS

TRUSTEE EDUCATION

• Retirement fund types, purpose & workings

• Defined benefit v defined contribution

• Functions needed to run a fund

• Trustees’ responsibilities & fiduciary duties

• Legal requirements and ethical principles for Trustees

RETIREMENT FUND TRUSTEE GOVERNANCE AND ETHICS

TRUSTEE EDUCATION

• Defining ethics

• Common conflict of interests

o Identification

o Manage or avoid?

• Applied Case Studies

o Legislation

o Codes of conduct

o PF Circular 130

Case study: AlphaMax and trustee education

A. It’s a good idea for Alphamax to sponsor the

event and the dinner

B. It’s okay provided Alphamax only sponsors

the education event

C. It’s not okay

10 A. B. C.

0% 0%0%

• AlphaMax Asset Managers has recently been appointed to manage a

balanced portfolio for the Bleakfuture Pension Fund.

• Ray Chingbull one of the trustees of Bleakfuture Pension Fund requests

AlphaMax to sponsor an educational event for the trustees with a

R50,000 donation.

• The two-day event will take place at one of Johannesburg’s top hotels

with the trustees’ annual dinner included on the first night.

RESPONSIBLE INVESTING

TRUSTEE EDUCATION

• Definitions of RI , Active Ownership and Impact Investing

• Meaning of Environmental, Social and Governance factors

• Financial returns versus ESG benefits

• Strategies for Active Ownership asset engagements

• Regulatory and risk environments (CRISA, Reg 28, PF130, King lV)

RESPONSIBLE INVESTING

TRUSTEE EDUCATION

• Growing social pressures…

• ESG issues across companies

• International and local best practice

• Developing an RI policy

• Strategic asset allocation

• Implementing an RI policy

MONITORING & EVALUATION : WORKSHOP: PRE-WORKSHOP CLICKER ASSESSMENT

INVESTMENT FUNDAMENTALS

M and E feedback - CONFIDENCE

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PRE

POST

1 = not confident at all

10 = perfectly confident

% o

f d

ele

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sele

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h le

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1. How confident would you feel in engaging in a discussion on: Inflation Rates

INVESTMENT FUNDAMENTALS

M and E feedback - FACTUAL

6. Pension Fund Circular 130 addresses the following topics: a.

Treating customers fairly b. Accountability of the fund’s board

c. Conflicts of interest d. Appointment of auditors e. Education

of board members (Multiple Choice)

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Incorrect Correct

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OUR PRESENTERS

TRUSTEE EDUCATION

• 5 presenters + 3 in training

• Based in Cape Town, Johannesburg & Pretoria

• Will travel anywhere in Southern Africa!

• All are independent university finance lecturers or experienced

practitioners

• MBA, CFAs, PHD, CA (SA), MSc

• “Wide variety of topics covered, very informative.”

• “Found case studies and discussion very rewarding; maybe more case studies.”

• “Great facilitation skills and allowed for maximum participation.”

• “ Really great experience.”

Favourable feedback

10 MINUTES

Q&A

THANK YOU.

www.asisaacademy.org.za