The future of LISPS

1. The future of LISPS
Absa Linked Investments
Absa Linked Investments

2. INTERNAL AND EXTERNAL USE2 | Absa Linked Investment Services - Presentation 1

3. INTERNAL AND EXTERNAL USE3 | Absa Linked Investment Services - Presentation 1
The Senate Group is an alliance of financial advisors with the express purpose of sharing
experience, learning and comeraderie. Members enhance their advisory skills by group interaction
through conferences held three times a year, at which external and internal speakers spark lively
debate on scores of relevant and topical subjects. The hallmark of each member is that he or she is
independent, FAIS compliant, and undertakes to share experiences and information which so
enriches the practice of the individual members and their clientele. Membership emanates from
most of the major South African centres, averages fifteen years of individual financial expertise in
most of the recognised financial advisory sectors.
Membership is by invitation to ensure group cohesion and the maintenance of appropriate standards.
• Independence, support & learning
The Senate Group Constitution

4. INTERNAL AND EXTERNAL USE4 | Absa Linked Investment Services - Presentation 1
• All your needs are unique
• Tailoring an offering to support your individual practice needs
• Integrating into your practice(s).
• Forming a partnership
• Supporting the development of your practices
• Ongoing assessment
Understanding your needs (B – B - C)

5. INTERNAL AND EXTERNAL USE5 | Absa Linked Investment Services - Presentation 1
• Broad Portfolio Structuring Capabilities
• Performance Enhancing Attributes
• Affordability
• Client Centricity
• Innovation
The future of LISPS – Does your platform of choice offer
the following?

6. INTERNAL AND EXTERNAL USE6 | Absa Linked Investment Services - Presentation 1
Platforms of the future understand that you need access to
Products
• Tax Free Savings Accounts
• Investment Accounts
• Endowments
• Pre-retirement products
• Post-retirement products
Unit Trusts & ETF’s
Discretionary Fund Management
Share portfolios
Consulting services and support
Alternative Investments
Guaranteed products
Structured products
Investment Solutions

7. INTERNAL AND EXTERNAL USE7 | Absa Linked Investment Services - Presentation 1
DFM Offering
Core
•R0 to R50m
•Fee 0.35% ex vat (All In on ALI)
•Absa Branded FFS
•Quarterly Feedback to Advisers using the wraps
•On all the main LISP platforms
Core Plus
•R50 to R150m
•Fee 0.35% ex vat (All In on AIMS)
•Client Branded FFS
•AMM & Client Investment Committee
•Electives list
Bespoke
•>R150m
•Fee 0.35% to 0.15% ex vat
•Client Branded FFS
•AMM & Client Investment Committee
•Larger Fund universe (Including smaller managers and boutiques)
CIS
•>R250m
•Fee 0.35% to 0.15% ex vat
•Client Branded FFS
•AMM & Client Investment Committee
•External CIS administrator
•Larger Fund universe (Including smaller managers and boutiques)

8. INTERNAL AND EXTERNAL USE8 | Absa Linked Investment Services - Presentation 1
Aggressive Moderate Conservative Cash plus
Investment Objective Growth Core Wrap Solution
Moderate Core Wrap
Solution
Stable Core Wrap Solution
Enhance Cash Core Wrap
Solution
Required Returns
Inflation +5%
(High Equity Balance funds –
no Reg 28)
Inflation +4%
(Medium Equity Balance
funds – Reg28)
Inflation +2%
(Low equity Balance fund’s –
Reg 28)
STeFI Call
(Money Market)
Risk Tolerance High to Medium Medium Low to Medium Low
Time Horizon 7 years plus 4 to 7 years 2-4 years 3 month plus
Risk of capital loss
Low risk of capital loss over
rolling 7 years
Low risk of capital loss over
rolling 4 years
Low risk of capital loss over
rolling 2 years
Low risk of capital loss over
rolling 6 months
ASISA category High Equity Medium Equity Low Equity Money Market
Core Solution Summary

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AMM Core Range Performance
• AMM Core Conservative Wrap • AMM Core Moderate Wrap

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AMM Core Range Performance
• AMM Core Aggressive Wrap • AMM Core Cash Plus Wrap

11. INTERNAL AND EXTERNAL USE11 | Absa Linked Investment Services - Presentation 1
Linked Investment Platforms - Affordability

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Client Centricity brings more business
Client Reporting
Investment Analytics
Access to professionals

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Continual Innovation is a necessity
• Information Technology
• Access to information
• Online capabilities
• Process efficiencies
• Electronic Forms
• Electronic Signatures
• Electronic FICA
• Value add
• Consulting and Support
• Investment Solutions