This document discusses Absa Linked Investments' assets under administration as of March 2017, which totaled R1.2 trillion. It breaks down the AUA by type of fund, showing that retirement funds make up the largest portion at 51% and discretionary funds the second largest at 39%. The document also notes a decline in industry flows compared to the previous quarter, which it attributes to struggling economic conditions reducing people's ability to save. It suggests money is moving into lower risk investments like cash and multi-asset portfolios. Finally, it emphasizes that platforms must provide comprehensive reporting, assist advisers to be efficient and financially viable, contribute to industry knowledge, and ensure their products deliver as promised while being used appropriately.

1. Absa Linked Investments Conversations
“Excellence is the Product of Choice.”

3. 3
“know what is in
front of your face,
and what is hidden from you
will be disclosed ”
Gospel of Thomas

4. 4
Assets Under Administration – 31 March 2017 (All LISPS)
R 1,2trn AUA
-
100,000,000,000
200,000,000,000
300,000,000,000
400,000,000,000
500,000,000,000
600,000,000,000
DISCRETIONARY RETIREMENT
ANNUITIES AND
PRESERVATION
FUNDS
CONTRIBUTING
PENSION AND
PROVIDENT
FUNDS
RETIREMENT
INCOME
ENDOWMENTS and
VOLUNTARY
PURCHASE
ANNUITIES
AUA
39%
51%
10%
AUA %
DISCRETIONARY
COMPULSORY
ENDOWMENTS
and VOLUNTARY
PURCHASE
ANNUITIES
30%
65%
5%
Adviser %
Tied and Bank
aligned
Independent
Financial Advisors
Direct

5. 5
Industry Flows
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
70,000,000,000
New Business Repurchases Net flows
• Decline in inflows from the previous
quarter
• The decline will in all likelihood continue
into the 2nd quarter
• Increase in repurchases – Low net flows
into the industry
• Economy is struggling and it is affecting
our ability to save

6. 6
Where is the money going on the platform
• Where the investment period is shorter than two years money is going into low risk investments
such as bank deposits, cash or cash like portfolios
• Products with guaranteed and secured returns
• Multi–asset portfolios

7. 7
What will be required from platforms in future
When we provide comprehensive client
and management reporting to our financial
advisers and customers on a continual basis
We can assist the financial adviser to grow
his/her business.
Platforms is part of the lifecycle and cnnot
ignore there role to the adviser and their
responsibility to the customer by providing
access to products, investment vehicles,
appropriate pricing and tools
Assist the adviser to be appropriate, efficient
as well as financially viable through creating
business and operational efficiencies
A platform must be seen as a valuable
knowledge and learning contributor to the
industry and the financial adviser.
Be at the forefront of innovation.

8. 8
Platforms are your partners in a post RDR enevironment
• Ensure that our products deliver, what we say they will deliver
• Ensure that you use our products appropriately and not abuse them. Use
example of Guaranteed Outcome
• We need to educate financial advisers and clients on the use of our products
• We need to monitor how you use our products- Advice, Sell and Service
• We have a reporting obligation to the regulator, your client and you Use
example of replacement policy

9. Thank you