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Sygnia Asset Management

October 2019

Investment strategies for a low-return environment

Allow us to introduce ourselves

Sygnia Limited

A JSE-listed financial services group offering a range of investment management solutions and administration services to institutional and retail clients in South Africa and abroad.

AdvisorsExternal auditors: MazarsInsurance advisors: Marsh FinancialISAE3402 Type II audit: MazarsInternal auditors: PwC

Sygnia Life


Sygnia Systems

Sygnia Collective Investments

Sygnia Financial Services

Sygnia Securities

Sygnia Employee Benefits

Sygnia Itrix

Sygnia Limited

• Second largest multi-management company in South Africa

• Largest provider of index-tracking ETFs listed on the JSE (excluding commodity funds)

• R228 billion assets under management and administration

• 16 years’ experience

• 66% staff- and management-owned (including BEE staff scheme)

• R1.2 billion PI cover

• Over 220 staff

• Offices in Cape Town, Johannesburg, Durban, London.

Sygnia board of directors

Magda WierzyckaChief Executive OfficerBBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP, FIFM

Murad SirkotFinancial DirectorBBusSc (Finance),PGDA, CA (SA), CFA

David HuftonDeputy Chief Executive OfficerBEconSc (Actuarial), FASSA, FIA

Haroon BhoratNon-Executive ChairpersonPhD (Economics)

Andre Crawford-BruntIndependent Non-Executive DirectorBCom (Commercial Law)

Mcebisi JonasIndependent Non-Executive DirectorBA (History and Sociology), PGDip (HE)

Kaizer MoyaneIndependent Non-Executive DirectorBA, LLB

Ropfiwa SithubiIndependent Non-Executive DirectorCA (SA)

George CavalerosLead Independent Non-Executive DirectorBCompt (Accounting Science),MCom (Applied Risk Management),CA (SA), CFA, CIA

Sygnia clientsOver 900 pension fund clients

AbsaAccentureAFGRIAssupolBidvestBP SACaterpillar AfricaCity of Joburg Pension FundClariantClicksCloverCombined Motor HoldingsCompakDe BeersDistellEngenEvereadyFirstRandGivaudan SA

Group FiveImperialIntelIscorIQ BusinessKellogg’sKWVKZN MunicipalLA Retirement FundLegal WiseMAN groupMcCain FoodsMcDonaldsMedia 24Mercedes-BenzMondelezNestléNUMSAPick n Pay

Pioneer FoodsPPCRedhill Private SchoolRenniesSappiSimbaTotal SAToyotaTransnetTrudonWinhold

IndividualsOver 14 000 LISP investorsOver 25 000 SURF membersOver 30 000 ETF investors

The importance of saving in a low-return environment

Market performance 30 September 2019

September 3 months YTD 1 year 3 years 5 years 10 years

FTSE/JSE SWIX Index 0.4% -4.3% 4.3% 0.2% 2.6% 4.6% 11.5%

SA Listed Property 0.3% -4.4% 1.3% -2.7% -3.5% 3.2% 11.2%

JSE All Bond Composite Index 0.5% 0.7% 8.4% 11.4% 8.9% 8.3% 8.8%

STeFI Index 0.6% 1.8% 5.4% 7.3% 7.4% 7.1% 6.5%

MSCI World Index in SA rands 1.5% 8.2% 23.7% 9.2% 13.9% 13.7% 16.9%

MSCI Emerging Markets Index in SA rands 1.3% 3.0% 11.4% 5.0% 9.5% 8.5% 10.9%

Barclays Capital Global Bond Index in SA rands -1.6% 8.4% 11.9% 15.4% 5.0% 8.2% 9.8%

Rand/US dollar exchange rate -0.6% 7.6% 5.2% 7.2% 3.4% 6.1% 7.3%

Headline CPI 0.3% 1.0% 3.2% 4.3% 4.7% 4.9% 5.1%

Emerging Markets vs South Africa

52

50

48

46

44

42

40

38

Price

(U

SD

)

Source: Thomson Reuters

Emerging Markets

South Africa

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2018

Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

What is driving the reduction in real returns experienced?

1. Adjust for high valuations• Interest rates are at 35-year lows, leading to high asset valuations.

2. High debt• Global debt to GDP has reached an all-time high.

• The global economy has escaped three debt crises over the last decade by taking on more debt.

3. Aging demographics• Population dynamics are changing for the worse.

4. Structural shift in productivity• Productivity gains are not offsetting falling labour force growth.

Why lower real returns?

Japanification of global GDP – Demographics

1.00%

0.75%

0.50%

0.25%

0.00%

-0.25%

Year

-on-

year

pop

ulat

ion

grow

th

Years around bursting of asset bubble/leverage crisis

-6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

USD17tr of debt is trading at negative interest rates

Source: JP Morgan

JapanUSEuro areaChina

Japanification of global GDP – 10yr Yields

8%

7%

6%

5%

4%

3%

2%

1%

0%

-1%

10 Y

ear y

ield

s

Years around start of deleveraging

-6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Source: JP Morgan


Japanification of global GDP – Nominal GDP

150

140

130

120

110

100

90

80

70

60

50

Leve

l of n

omin

al G

DP,

inde

xed


-6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Source: JP Morgan

Japan’s Lost Decade


Japanification of global GDP – Earnings

300

250

200

150

100

50

0

Leve

l of n

omin

al G

DP,

inde

xed


-6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Source: JP Morgan

Decade-long earnings recession

213


Volatility in a low-return environment

Equities old

Equities new

Bonds

Cash

Q4 2018

Equities still required, as they will outperform bonds, credit and cash…

…but in a low-return environment, volatility will cause more losses than before

What can you do?

Agree on a global balanced investment strategy and stay true to the course.

• Do not try to time the market by switching between different risk profiled funds – stick with your plan.

• Importance of low fees.

• Importance of active tactical asset allocation.

• Attractiveness of high-yielding income assets (Enhanced Income Fund) and finding alternate drivers of growth in a low-growth environment (4th Industrial Revolution exposure and ESG Impact Investing).

High fees destroy valueHigh fees (TERs and TICs) translate into significantly lower benefits at retirement.

“A regular saver who reduces the charges on their retirement account from 2.5% of assets each year to 0.5% of assets annually would receive a benefit 60% greater at retirement after 40 years, all else being equal. For someone who is a member of a preservation fund for 30 years this increases to 80%.”

Source: National Treasury, Charges in South African Retirement Funds, July 2013

0% Fee

*R1 000 p.m. contribution over 40 years

R11 011 071Return*

R8 867 450 Return*

R7 202 787Return*

R5 904 813Return*

R4 888 085Return*

35.7%20.1%

1% Fee 2% Fee 3% Fee 4% Fee 5% Fee

57.2%47.7% 64.5%

R13 781 883Return*

Sygnia’s response to low-return environment

Sygnia Skeleton Balanced 70 Fund

Fund performance30 September 2019

unit trusts, most of them actively managed, in the South African –Multi-Asset – High Equity category over the period from inception in October 2013 to September 2019.

6thout of 82

Fund Peer group DifferenceYTD 9.7% 7.0% 2.7%1 year 5.1% 1.4% 3.7%2 years 5.1% 2.3% 2.8%3 years 5.9% 3.5% 2.4%5 years 6.5% 4.6% 1.9%Since inception 7.4% 5.5% 1.9%

Cumulative performance SI

Source: Moneymate

152.7137.0

80.090.0

100.0110.0120.0130.0140.0150.0160.0

2013

/10/

01

2014

/01/

01

2014

/04/

01

2014

/07/

01

2014

/10/

01

2015

/01/

01

2015

/04/

01

2015

/07/

01

2015

/10/

01

2016

/01/

01

2016

/04/

01

2016

/07/

01

2016

/10/

01

2017

/01/

01

2017

/04/

01

2017

/07/

01

2017

/10/

01

2018

/01/

01

2018

/04/

01

2018

/07/

01

2018

/10/

01

2019

/01/

01

2019

/04/

01

2019

/07/

01

Sygnia Skeleton Balanced 70 Fund Class A SA Multi-Asset High Equity

TER Comparison

2.69%2.49%

2.45%2.36%

2.33%2.13%2.13%2.13%

2.09%2.08%

2.03%2.02%

1.98%1.94%

1.92%1.91%

1.89%1.87%

1.86%1.85%

1.84%1.79%

1.75%1.74%

1.73%1.72%

1.71%1.68%

1.67%1.64%

1.60%1.60%

1.59%1.59%

1.57%1.57%

1.56%1.53%

1.52%1.50%

1.49%1.47%

1.44%1.42%

1.36%1.31%

1.28%1.25%

1.24%1.21%1.21%

1.20%1.20%

1.16%1.14%1.14%1.14%

1.08%1.03%

0.94%0.92%

0.83%

0.77%

0.75%0.72%

0.63%0.60%

0.52%0.47% Sygnia Skeleton Balanced 70 Fund, 0.44%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

Nedgroup Investments Xchange Solutions Diversified FoF - A

Nedgroup Investments XS Select Diversified Fund - A

PSG Wealth Moderate FoF - A

Rezco Managed Plus Fund

Rezco Value Trend Fund

Marriott Balanced FoF

Sanlam Multi Managed Balanced FoF - A

Select Manager BCI Balanced FoF - A

Investec Managed Fund - A

APS ACi Managed Growth FoF - A

PWS BCI Moderate FoF - A

Old Mutual Multi-Managers Balanced FoF - A

BCI Prudential FoF 3B1

SPW Balanced Fund

Discovery Balanced Fund

STANLIB Balanced Fund - A

STANLIB Multi-Manager Balanced Fund - A

Momentum Enhanced Growth Plus Fund of Funds - A

Southern Charter BCI Growth FoF

PPS Balanced FoF - A

Momentum Enhanced Growth FoF - A

STANLIB Absolute Plus Fund - A

Northstar SCI Managed Fund - A1

PSG Balanced Fund

SIM Balanced Fund - A

Centaur BCI Balanced Fund - A

Octagon SCI Growth FoF - A1

Prudential Balanced Fund

Allan Gray Balanced Fund

Old Mutual Balanced Fund - A

Coronation Balanced Plus Fund - A

Synergy Ci Growth FOF - A

Truffle SCI Balanced Fund - A

Nedgroup Investments Managed Fund - A

27four Balanced FoF - A8

Roxburgh Ci Balanced Plus FoF - A

Allan Gray Tax-Free Balanced Fund - A

Kagiso Balanced Fund

Graviton SCI Balanced Fund - A1

Roxburgh Ci Balanced FoF - A

Kagiso Islamic Balanced Fund

Prescient Living Planet Fund - A1

Personal Trust Managed Fund

Investec Opportunity Fund - A

Oasis Balanced Unitrust Fund - D

Kruger Ci Balanced Fund - A

Sage Sanlam Collective Investments Long Term Solution FoF - A

Foord Balanced Fund

Financial Fitness Balanced IP FoF - A

Obsidian SCI Balanced Fund

Sanlam Multi Managed Moderate Aggressive FoF - A1

PBi BCI Balanced Fund of Funds - A

Aylett Balanced Prescient Fund - A1

Bridge Managed Growth Fund

SMM Balanced FoF - A3

Nedgroup Investments Balanced Fund Class - A2

Ci Managed Fund - A

Laurium Balanced Prescient - B1

Ashburton Balanced Fund - A

Sanlam Select Managed Fund - A1

H4 Diversified - B1

NFB Ci Managed Fund - A

Finsolnet CPI + 6%

STANLIB Multi-Manager Shariah Balanced FoF

ClucasGray Equilibrium Prescient Fund - A1

Abax SA Absolute Prescient Fund - A1

Nedgroup Investments Core Diversified Fund - C

PPS Balanced Index Tracker Fund - A

Nedgroup Investments Core Accelerated Fund - C

Satrix Balanced Index Fund - A1


South African Multi-Asset – High Equity, Fund Size >R500m

Source: Moneymate



unit trusts, most of them actively managed, in the South African –Multi-Asset – Medium Equity category over the period from inception in May 2014 to September 2019.


1stout of 49

Fund Peer group DifferenceYTD 9.6% 7.7% 1.9%1 year 6.0% 2.5% 3.5%2 years 6.0% 3.1% 2.9%3 years 6.7% 4.1% 2.5%5 years 7.0% 5.0% 2.0%Since inception 7.2% 5.1% 2.1%

Source: Moneymate

144.5

130.1

80.090.0

100.0110.0120.0130.0140.0150.0

2014

/05/

01

2014

/08/

01

2014

/11/

01

2015

/02/

01

2015

/05/

01

2015

/08/

01

2015

/11/

01

2016

/02/

01

2016

/05/

01

2016

/08/

01

2016

/11/

01

2017

/02/

01

2017

/05/

01

2017

/08/

01

2017

/11/

01

2018

/02/

01

2018

/05/

01

2018

/08/

01

2018

/11/

01

2019

/02/

01

2019

/05/

01

2019

/08/

01

Sygnia Skeleton Balanced 60 Fund Class A SA Multi-Asset Medium Equity

TER Comparison

2.71%

2.51%

2.27%

2.13%

2.10%

2.09%

2.01%

2.00%

1.98%

1.86%

1.86%

1.84%

1.82%

1.79%

1.78%

1.77%

1.75%

1.70%

1.69%

1.66%

1.63%

1.63%

1.62%

1.62%

1.60%

1.59%

1.57%

1.54%

1.50%

1.47%

1.47%

1.41%

1.18%

1.06%

0.90%

Sygnia Skeleton Balanced 60; 0.55%0.44%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

Noble PP STANLIB Balanced FoF - A

Platinum BCI Balanced Prudential FoF

27four Balanced Prescient FoF - A4

Momentum Enhanced Stable Growth FoF - A

Select Manager BCI Moderate FoF

S-BRO BCI Balanced FoF - R

Old Mutual Multi-Managers Defensive FoF - A

APS ACi Moderate FoF - A

Absa Balanced Fund - A

STANLIB Multi-Manager Medium-High Equity FOF A

Discovery Moderate Dynamic Optimiser FoF

Absa Multi Managed Growth FoF

STANLIB Multi-Manager Medium Equity FoF - A

NGI Private Wealth Balanced FoF

PPS Moderate FoF

Momentum Enhanced Diversified Growth Fund of Funds - A

Absa Multi Managed Accumulation FoF

PrivateClient BCI Medium Equity Fund - B

Old Mutual Moderate Balanced Fund - A

Quantum BCI Balanced FoF

Discovery Moderate Balanced Fund

GTC Balanced Wealth FoF - A

Oasis Crescent Balanced Progressive FoF - D

Optimum BCI Balanced Fund - A

Coronation Capital Plus Fund - A

Nedgroup Investments Opportunity Fund - A

Old Mutual Dynamic Floor Fund

Analytics ACi Moderate FoF A1

FG IP Saturn Flexible FoF - A

Old Mutual Albaraka Balanced Fund - A

Novare Multikor Moderate FOF - A

Sygnia CPI + 4% Class A

Wealth Associates BCI Moderate FoF - A

Foord Conservative Fund

Prescient Positive Return QuantPlus Fund - A1

Finsolnet CPI + 4%

Sygnia Skeleton Balanced 60

Absa Multi Managed Passive Accumulation Fund - A

South African Multi-Asset – Medium Equity, Fund Size >R500m

Source: Moneymate



unit trusts, most of them actively managed, in the South African –Multi-Asset – Low Equity category over the period from inception in March 2014 to September 2019.

2ndout of 78

Fund Peer group DifferenceYTD 9.4% 7.9% 1.5%1 year 7.6% 4.4% 3.2%2 years 7.1% 4.6% 2.5%3 years 7.6% 5.3% 2.3%5 Years 7.6% 5.9% 1.7%Since inception 7.9% 6.1% 1.8%


Source: Moneymate

151.7138.8

80.090.0

100.0110.0120.0130.0140.0150.0160.0

2014

/03/

01

2014

/06/

01

2014

/09/

01

2014

/12/

01

2015

/03/

01

2015

/06/

01

2015

/09/

01

2015

/12/

01

2016

/03/

01

2016

/06/

01

2016

/09/

01

2016

/12/

01

2017

/03/

01

2017

/06/

01

2017

/09/

01

2017

/12/

01

2018

/03/

01

2018

/06/

01

2018

/09/

01

2018

/12/

01

2019

/03/

01

2019

/06/

01

2019

/09/

01

Sygnia Skeleton Balanced 40 Fund Class A SA Multi-Asset Low Equity

Equity investment performance

2.61%

2.59%

2.45%

2.39%

2.14%

1.96%

1.95%

1.90%

1.83%

1.80%

1.78%

1.77%

1.74%

1.74%

1.69%

1.69%

1.68%

1.68%

1.67%

1.66%

1.62%

1.62%

1.62%

1.60%

1.59%

1.57%

1.56%

1.51%

1.50%

1.44%

1.42%

1.41%

1.40%

1.39%

1.37%

1.32%

1.29%

1.24%

1.22%

1.18%

1.16%

1.14%

1.12%

0.94%

0.93%

0.92%

0.92%

0.65%

0.62%

Sygnia Skeleton Balanced 40; 0.51%0.47%

0.45%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

Noble PP STANLIB Strategic Income FoF - A

Dinamika BCI Conservative FoF

Nedgroup Investments XS Guarded Fund of Fund - A

PSG Wealth Preserver FoF - A

Sanlam Multi Managed Defensive FoF

Celtis BCI Conservative FoF

S-BRO BCI Defensive FoF - R

STANLIB Multi-Manager Defensive Balanced Fund - A

STANLIB Balanced Cautious Fund - A

Select Manager BCI Cautious FoF

Absa Absolute Fund

STANLIB Multi-Manager Low Equity FoF - A

PSG Stable Fund

Investec Cautious Managed Fund - A

PPS Conservative FoF

Octagon SCI Cautious FoF - A1

NGI Private Wealth Defensive FoF

Momentum Enhanced Cautious Growth Fund of Funds - A

Prudential Inflation Plus Fund - A

Optimum BCI Stable Fund - A

Coronation Balanced Defensive Fund - A

Absa Multi Managed Preservation FoF

Discovery Cautious Balanced Fund - A

Momentum SA Defensive Growth Fund - A

Old Mutual Stable Growth Fund - A

Graviton SCI Low Equity Fund - A1

Oasis Crescent Balanced Stable FoF - D

STANLIB Balanced Cautious Fund

Allan Gray Stable Fund

Absa Inflation Beater Fund - A

Personal Trust Conservative Managed Fund

Allan Gray Optimal Fund

Old Mutual Real Income Fund - A

Old Mutual Capital Builder Fund - A

Sygnia CPI + 2% Class A

Sanlam Select Absolute Fund - A1

FG IP Venus Cautious FoF - A

SIM Inflation Plus Fund

NFB Ci Defensive FoF - A

Dynasty ACi Wealth Preserver Fund - A2

Bridge Stable Growth Fund

STANLIB Targeted Return Fund

PBi BCI Conservative Fund of Funds - A

Sanlam Select Defensive Balanced Fund - A1

Nedgroup Investments Stable Fund - A

NFB Ci Stable Fund - A

Ci Cautious Fund - A

PPS Institutional Multi Asst Low Equity Fund

Nedgroup Investments Core Guarded Fund - C

Finsolnet CPI + 2%

Sygnia Skeleton Balanced 40

Satrix Low Equity Balanced Index Fund - A1

Nedgroup Investments Core Guarded Fund - B

South African Multi-Asset – Low Equity, Fund Size >R500m

Source: Moneymate

Why Sygnia?

Unmatched team expertise

Access to low cost passive building blocks

Use of tactical asset allocationto manage risk

Exposure to diversified sources of return

Transparency on fees

Uncompromising governance

12

3456

Thank you

Sygnia Limited (“Sygnia”) is a specialist financial services group headquartered in South Africa focusing on the provision of investment management and administration solutions to institutional and retail clients predominantly located in South Africa.

The information and opinions contained in this presentation are of a general nature and are not intended to address the circumstances of a particular individual or entity. The information in this presentation is not intended as, nor does it constitute, financial, tax, legal, investment or other advice. Sygnia does not act as an advisor or in a fiduciary capacity towards the recipient(s).

Whilst reasonable care was taken in ensuring that the information contained in this presentation is accurate, Sygnia does not warrant its accuracy and accepts no liability in respect of any damages and/or loss suffered as a result of reliance on the information in this presentation. Sygnia’s business procedures, processes, policies and structure may change from time to time and may differ at certain times from that presented herein.

Where information has been provided on investments, please note that different investments may have different risks associated with them. In particular fund of hedge fund products may pose risks that are different to those associated with investments in traditional asset classes. Full disclosure of all risks associated with the investments and investment strategies contained in this presentation (and in particular the specific risks associated with investments into fund of hedge funds) is available on request from Sygnia and no decision regarding investments should be taken without having obtained professional advice thereon and without having investigated the risks inherent thereto.

Copyright and Confidentiality:

This presentation and its content is owned by the Sygnia Group and is protected by copyright and other intellectual laws. All rights not expressly granted are reserved. This presentation contains confidential information and is intended only for the individuals who were present at this presentation or who received a copy of this presentation directly from Sygnia.

The purpose of the confidential information presented is solely to enable an assessment of the services provided by Sygnia and may not be used for any other purpose. The confidential information contained herein may not be distributed or reproduced for any reason whatsoever without first having obtained Sygnia’s express written permission to do so. Any breach of Sygnia’s confidentiality requirement may result in damages and/or financial loss to Sygnia and Sygnia reserves the right to recover such damages or loss from any person or entity that is in breach of this requirement

Inter-Group Relationships:

Financial products such as policies of insurance and/or collective investment schemes described in this presentation are issued by Sygnia Life Limited and Sygnia Collective Investments RF, companies that are related by common shareholding to Sygnia. Sygnia has a conflict of interest policy to manage any potential conflicts of interest that may occur. This policy is available on request.

Financial Service Providers in the Group:

Sygnia Asset Management: CAT II/IIA Discretionary FSP (FSP Registration No. 873)Sygnia Life Limited: CAT I/II FSP (FSP Registration No. 2935)Sygnia Financial Services: CAT I/II/III LISP and approved Section 13 B Administrator (FSP Registration No. 44426)Sygnia Securities: CAT I FSP and member of the JSE. (FSP Registration No. 45818 ).

Information Regarding Sygnia:

Physical Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001Postal Address: PO Box 51591, The Waterfront, 8002Tel: 021 446 4940Fax: 021 446 4950

Email: [email protected]

Disclaimer

Economics & MarketsOctober 2019

“Unmatched Wisdom”

Trade wars decimate growth• JPMorgan’s “Volfefe” index tracks 10,000 Trump tweets,

showing a statistically significant impact on markets.

• Impeachment unlikely but has affected re-election chances.

• Trade wars have hurt investment confidence, with PMIs below 50 for second month:

• UK PMI at 47.4, seven-year low• EU PMI at 45.7, seven-year low• US PMI at 47.8, ten-year low• SA PMI at 41.6, ten-year low• Japan PMI at 48.9• China PMI at 49.5 and MSCI Emerging Market Index down

10% from April high.

• Citi’s Global Economic Surprise Index is experiencing its longest negative period on record.

“Clueless”

Central banks up liquidity• After a decade of no cuts, the Fed has cut for the second

time this year but forecasts no more cuts, even as Trump demands a 100-point rate cut. USD liquidity crisis forced Fed’s first Open Market Operation in a decade, injecting US$400bn over four days – a temporary form of QE.

• The ECB has become even more accommodating: at its September meeting, Draghi restarted QE Infinity with €20 billion a month from 1 November and cut rates from -0.4% to -0.5%.

• More than 30 central banks have cut so far YTD, with the BoAML Emerging Monetary Mood Indicator at its most dovish since 2009.

• Negative-yielding debt reached a record high of over US$17 trillion – 27% of global bonds.

• Gold has risen to six-year highs.

• The USD is at 20-year highs due to risk-off, stronger US growth, reserve currency constraints and dollar liquidity crisis, but this is constricting trade and growth. Jackson Hole focused on a co-ordinated move away from the “dollar standard”, comparing it to the gold standard in the 1930s.

EU negative yields

Impact of negative yields• No European bank that introduced negative yields has been

able to take them positive. Jyske Bank, the third largest Danish bank, is offering negative mortgage rates.

• Germany issued 30-year bund at negative yields for the first time. Trade wars hastening effects of Japanification.

• While negative yields allayed market concerns in the short term, they are having an adverse impact now.

• The yield curve no longer reflects economic information but is distorted by the search for yield, with investors moving along the curve and into credit to avoid negative yields. The ERP has risen, as investors have not moved into equity or property.

• Negative yields are also impairing the efficiency of the banking system: lower bank profitability, which leads to increased cost of borrowing and reduced credit creation. In addition, bond liquidity and volumes fall.

• Destroys demand: households, pension funds and insurance companies raise their savings rates instead of lowering them.

• French and UK Fiscal Stimulus and possibly German.

“Unlawful, void and of no effect.”

Brexit uncertainty continues• Brexit uncertainty continues as Prime Minister Boris Johnson

fails:• The British parliament forced Johnson to delay Brexit to 31

January 2020.• Johnson was not able to trigger an early general election. • Johnson’s proroguing of parliament deemed “unlawful, void

and of no effect”. • Conservative government is 45 seats short of a majority.

• Withdrawal Agreement Vote 4? • Yes: Enter transition period, trade negotiations start –

deadline end 2020• No: Elections on 28th November

• Fiscal spending support: UK Chancellor of the Exchequer Sajid Javid unveiled a £13.8 billion boost to government spending in areas such as health, education and security, the biggest such increase in 15 years.

“No force can shake the status of this great nation.”

• In response to latest tariffs, the RMB weakened to above 7 (weakest in 11 years).

• Growth is slowing: Q3 GDP at 6.0%, lowest in 29 years.

• China doing whatever is necessary to support growth:• US$300 billion in tax cuts• Budget deficit close to 6.5% (including municipal

bonds)• Reserve rate requirement cut to its lowest level

since 2007• Second lending rate cut in two months, to 4.2%.

• Monthly data suggests that growth is stabilising (factory output and retail sales). Services PMI in August at three-month high.

China: Continues with stimulus

“Government at war with itself”

Lowest confidence since 1985• SACCI business confidence index fell in August to 89.1 pts, the

lowest since April 1985. A government “at war with itself”, SARB nationalisation, NHI funding, unemployment at a record-high 29% and xenophobic attacks all reduced confidence.

• Since 2015, foreigners have sold R254bn of SA equities; the yield curve steepened to its highest level on record as foreigners sold bonds.

• Fitch downgraded its outlook to negative due to the fiscal deterioration of lower tax revenue and higher spend on SOEs. They project a budget deficit of 6.3% (official forecast 4.5%) in 2019/2020 and debt in 2021/2022 of 68% vs BB category median of 44.6%. MTBS remains a risk.

• SARB cut rates from 6.75% to 6.5% but held steady in September. Moody’s has given South Africa an 18-month reprieve to implement reforms.

• Commodity prices (Palladium, Platinum, Gold)

Value starting to appear?

Investment allocations

Risk managementRisk management remains key to the TAA process.

Globally DomesticallyFed cut rates; US restarts QE Rate cut from 6.75% to 6.5%

ECB restarts QE & cuts rates; French fiscal support Moody’s grace period before review

UK fiscal support; Brexit delayed until Jan 2021 Commodity price rebound (platinum)

Strong Chinese stimulus & controlled currency weakness Medium-term budget speech event risk

USD at 20-year high: dollar liquidity crisis and reserve currency constraints Unemployment at 16-year high of 29%

Geopolitical risk at 20-year high: Turkey/Syria invasion, US-Iran relationship, trade wars, impeachment

SARB nationalisation, NHI, land reform uncertainty, SOE fiscal slippage (Eskom)

Sygnia’s current views Trump vs World CBs, growth will win but awaiting trade deal

Equities

• Continued to harness volatility well, with low-cost derivatives.

• Managed Naspers unbundling risk successfully.

• Continue to avoid property, slightly overweight.

Bond market

• We remain wary of risks in the domestic bond market.

• We prefer SA Income, which has similar yield without capital volatility.

• Have reduced our underweight after yield curve steepening.

International exposure

• We remain overweight global, as diversifier and shock absorber.

• EM position has gone from underweight to overweight.

• US neutral, EU underweight as trade war hedge.Source: BCA

Signature 70

Strategic model Tactical model Active Direction

SA Equity 48.0% 47.5% -0.5%

SA Bonds 13.0% 11.5% -1.5%

SA Income 10.0% 10.0% 0.0%

SA Money Market 1.0% 1.5% 0.5%

Global Equity 22.0% 27.8% 5.8%

Global Bonds 4.0% 0.0% -4.0%

Global Cash 2.0% 1.7% -0.3%

Asset allocation as at 30 September 2019

Portfolio asset allocation

Thank you

Sygnia Limited (“Sygnia”) is a specialist financial services group headquartered in South Africa focusing on the provision of investment management and administration solutions to institutional and retail clients predominantly located in South Africa.

The information and opinions contained in this presentation are of a general nature and are not intended to address the circumstances of a particular individual or entity. The information in this presentation is not intended nor does it constitute financial, tax, legal, investment, or other advice. Sygnia does not act as an advisor or in a fiduciary capacity towards the recipient(s).

Whilst reasonable care was taken in ensuring that the information contained in this presentation is accurate, Sygnia does not warrant its accuracy and accepts no liability in respect of any damages and/or loss suffered as a result of reliance on the information in this presentation. Sygnia’s business procedures, processes and policies and business structure may change from time to time and may differ at certain times from that presented herein.

Where information has been provided on investments, please note that different investments may have different risks associated with them. In particular fund of hedge fund products may pose risks that are different to those associated with investments in traditional asset classes. Full disclosure of all risks associated with the investments and investment strategies contained in this presentation (and in particular the specific risks associated with investments into fund of hedge funds), is available on request from Sygnia and no decision regarding investments should be taken without having obtained professional advice thereon and without having investigated the risks inherent thereto.

Copyright and Confidentiality:

This presentation and its content is owned by the Sygnia Group and is protected by copyright and other intellectual laws. All rights not expressly granted are reserved. This presentation contains confidential information and is intended only for the individuals who were present at this presentation or who received a copy of this presentation directly from Sygnia.

The purpose of the confidential information presented is solely to enable an assessment of the services provided by Sygnia and may not be used for any other purpose. The confidential information contained herein may not be distributed or reproduced for any reason whatsoever without first having obtained Sygnia’s express written permission to do so. Any breach of Sygnia’s confidentiality requirement may result in damages and/or financial loss to Sygnia and Sygnia reserves the right to recover such damages or loss from any person or entity that is in breach of this requirement

Inter Group Relationships:

Financial products such as policies of insurance and/or collective investment schemes described in this presentation are issued by Sygnia Life Limited and Sygnia Collective Investments RF, companies that are related by common shareholding to Sygnia. Sygnia has a conflict of interest policy to manage any potential conflicts of interest that may occur. This policy is available on request

Financial Service Providers in the Group:

Sygnia Asset Management: CAT II/IIA Discretionary FSP (FSP Registration No. 873)Sygnia Life Limited: CAT I/II FSP (FSP Registration No. 2935)Sygnia Financial Services: CAT I/II/III LISP and approved Section 13 B Administrator (FSP Registration NO. 44426)Sygnia Securities, CAT I FSP and member of the JSE. (FSP Registration No. 45818 )

Information Regarding Sygnia:

Physical Address: 7th Floor, the Foundry, Cardiff Street, Green Point, 8001Postal Address: PO Box 51591, the Waterfront, 8002Tel: 021 446 4940Fax: 021 446 4950

Email: [email protected]

Disclaimer

Exponential effects of low fees on investment returns“The only aspect of saving and investing that you can control are fees, everything else is unpredictable.”

Current asset management landscape“Ripe for disruption”

Fee Gap Opening UpAmount of AUM is increasing faster than revenues

Fee Pressures Are IntensifyingPassive is taking over from active investing

Increasing Regulatory BurdenCosts of compliance are going up

Changing Savings HabitsMillennials look for sustainable and ethical investments

Increasing Competition From Technology Based SolutionsRobo-advisors, ETF trading platforms, free investment blogs

Asset Managers Are Technology Laggards

ETFS as a wrapper are making headlines

Low fees are here to stay“It’s a buyer’s market”

REGULATION-ENFORCED TRANSPARENCY

INCREASED ACCESS TO INFORMATION

GROWING AWARENESSAND EXPECTATIONS OF CLIENTS

NEW ENTRANTS ANDNEW PRODUCTS

SOCIAL MEDIA ENGAGEMENTS

FINAL INVESTMENT OUTCOMES ARE KEY

TECHNOLOGYEVOLUTION

TRANSPARENCY IS VALIDATING LACK OF TRUST

PLATFORMSCONNECTING INVESTORS DIRECTLY WITH INVESTMENT OPPORTUNITIES

Management fees destroy valueHigh fees (TERs and TICs) translate into significantly lower benefits at retirement

“A regular saver who reduces the charges on his retirement account from 2.5% of assets each year to 0.5% of assets annually would receive a benefit 60% greater at retirement after 40 years, all else being equal. For someone who is a member of a preservation fund for 30 years this increases to 80%.”

Source: National Treasury, Charges in South African Retirement Funds, July 2013

0%Fee

R1000 p.m. Contribution over 40 years*

1%Fee

R11 011 071Return*

2%Fee

3%Fee

4%Fee

5%Fee

64.5%lost to fees

R8 867 450 Return*

R7 202 787Return*

R5 904 813Return*

R4 888 085Return*

57.2%lost to fees

47.7%lost to fees

35.7%lost to fees

20.1%lost to fees

Low cost management has won the performance debateIncorporating index tracking in the overall strategy is sensible:

• Passive management has won the performance debate

• Management fees are a key determinant of final investment outcomes and the only controllable factor behind performance

Low cost management has won the performance debate

THE GOLDEN KEY: Finding new, cost-efficient ways to generate excess return for investors and leverage technology to capture more of the “value chain” from existing and new investors.

Some Positives “Change creates opportunities”

Asset/wealth management as a service will endure

Demand for capital from the corporate sector will continue

New markets are opening up

Human-to-human contact will not disappear

Creativity is reappearing in a staid industry

Technology can create efficiencies and leverage in business models

123456

The world is changing rapidly as fees compress

Hedge funds

Private equity

Passives

Real estate

Long-only active

management

Bar-bell approach emerging

PwC forecasts show that by 2025 the average global asset-weighted fee will drop by:

• Passives: 20.7% to 0.12% pa

• Active: 22.0% to 0.53% pa

• Alternatives: 14.6% to 1.33% pa

Choice of business model: large scale versus very boutique.Innovation of management fee structures e.g. flat fees, low fees with high upside.

Passives Smart Betas

Factor InvestingAI-driven Strategies Quants/Algorithms

Active ETFs

Long-only asset management

InfrastructureCommercial Real Estate

Hedge FundsPrivate Equity

ESG (negative screening)Impact Investing

(seeking ESG impact)Venture Capital

Outcome-based solutions are key

VS

OLD STYLE INVESTOR• Happy with intangible

promises• Reliant on 1 financial

advisor• Trusting and compliant• Lacking access to

information• Baby-boomers

Buy-and-hold mentality, like property and fixed interest investing

• Generation XAspirational lifestyles, sophisticated, chasing performance

NEW AGE INVESTOR• Concrete shorter-term

objectives

• Reliant on social media for validation

• Less trusting

• Easy access to information

• Tech-savvy

• FIRE

• Millennials (over 50% of members of retirement funds today)Want to make an impact, will live for longer, lifestyle over work, frugal existence

One model does not suit all

EXPONENTIAL “FUTURE” SAVER:

• More time

• Less money

• Motivated by meaning, experience and self-development

• Passionate about causes

Engaged, younger investors ETF trading platforms evolving into investment advice providers via free blogs and research

Conservative, older investorsUse of financial advisors supported by robo-advisors and trusted platforms

Sophisticated, wealthy investorsSelf-implemented 50% beta / 50% alpha strategies

Platform-style service delivery

• Technology will blur the boundaries between financial advisors, banks, life insurers and asset managers: “I want an app” mentality and vertically integrated solutions

• One-stop shops for the best-priced financial solutions focused on customer experience

• KYC: blockchain, facial recognition, electronic signatures

• Client engagement: software tracking clients’ contacts and optimising content, digital voice assistants, Big Data engagement analyses, CRM and digital e-marketing

• Competition between platforms rather than branded asset managers – large scale asset managers will evolve into platforms

Platform-style service delivery

• Platforms: provided by few global players

• Transaction costs: minimised by blockchain technology

• ETFs (a quicker method of service delivery): increase in popularity, design evolution

• Financial advice: live and free/at low cost – robo-advisors supported by digital voice assistants, investment blogs, research tools embedded in the platforms (final decision may require human intervention)

• Consistent “alpha” providers will thrive, leading to greater innovation

Key themes

Asset managers will increasingly give away beta-oriented products for free, while fighting a rear guard action to defend fees in the alpha/alternative product space, while figuring out technology-driven ways to add value to clients and build client loyalty.Investment Management: Entering Choppier And Shallower Waters, Matt Harris and David Snider, Forbes, January 2019

Neither a wise man nor a brave man lies down on the tracks of history to wait for the train of the future to run over him. Dwight D. Eisenhower

Sygnia Oxford Sciences Innovation Fund“Investing in the future of humankind”

Sygnia OSI Fund focuses on impact investing

OUR MISSION

We deploy 100% of our capital to generate socially impactful

and sustainable long-term returns, where exceptional

performance goes hand-in-hand with changing lives by

making the unaffordable and the unachievable possible.

Morgan Stanley’s Investing with Impact Framework

RESTRICTION SCREENING ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INTEGRATION

THEMATIC EXPOSURE IMPACT INVESTING

Managing exposures by avoiding investments in objectionable activities, sectors or geographies

Proactively considering ESG criteria alongside financial analysis to identify opportunities and risks

Focusing on themes and sectors dedicated to solving sustainability-related domestic and global challenges

Allocating assets to funds focused on private enterprises structured to deliver specific positive social and/or environmental impact

• Restriction criteria and degree of shareholder activism

• Not proactively seeking environmental and social impact

• ESG integration process and degree of shareholder advocacy

• May include some screening

• Macro analysis, sustainability research and sector focus

• Impact approach, regional focus, liquidity and impact reporting and emphasis on issues where public market solutions may not exist

Unit trust/ETF that excludes companies from buy universe (e.g. tobacco, firearms, coal mining companies)

Segregated mandate which requires incorporating analysis of ESG performance into stock selection process

ETFs tracking an index of water utilities, existing renewable energy projects, or infrastructure investment.

A PE or VC fund focused on the interaction of technology and healthcare provision, biosciences and renewable energy projects

PUBLIC MARKETS (TRADITIONAL ASSET CLASSES)



PRIVATE MARKETS (PE OR VC FUNDS)

*Source: Morgan Stanley Global Investment Manager Analysis, February 2019

Def

initi

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pact

Inve

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ent

Cha

ract

eris

tics

Inve

stm

ent

Exam

ples

Minimise negative impact Target impact

Why impact investing?Global Sustainable Development Goals – United Nations, 2015• Rising global inequality has increased the need for affordable access to healthcare,

education, inclusive finance and housing.• Climate change has been identified as the major threat facing humanity driving the

need for renewable and alternative energy sources, energy efficiency and sustainable agriculture and forestry.

• Technological advancements are making the unachievable, achievable, providing solutions at an exponential pace and low cost.

Investor Demand• Millennials and high net worth individual investors are seeking to create a positive

legacy by investing their assets in a way which marries social and financial objectives.

• Regulators are looking to institutional investors and retirement funds to deploy capital in a socially and environmentally impactful manner.

Responsibility and Opportunity• Asset managers, as custodians of capital, have a responsibility to broaden their

investment objectives beyond financial goals. This includes all asset classes. • Investment opportunities are plentiful and likely to deliver exceptional returns over

the longer term. • Direct impact investments are not accessible via traditional asset classes.

Investment Proposition

Sygnia OSI Fund provides access to the shares of Oxford Sciences Innovation Plc, a platform which owns 25% of founders’ shares in all spin-out companies originating from OU with a current portfolio of 73 spin-outs and a pipeline of 10 spin-outs per year (effective ownership of 25% of rights to all past and future patents originating from OU) and more concentrated exposure to select spin-outs.

Launched: May 2019 (OSI was launched in June 2015 with £600m in capital)

Fund size (including co-investments): R1.6 billion

Investment Target: 5 x capital growth in 5 years

Sygnia OSI Fund: Sygnia Life Endowment Policy investing in Braavos Capital I and II LPs, Guernsey-based closed-ended collective investment schemes

Administrators: Langham Hall (Guernsey)External auditors: Mazars (UK)Fund auditors: Grant Thornton (Guernsey)

Management fees: 1.8% per annum, 20% performance fee subject to a 6% per annum hurdle in British pounds

Termination: 30 days’ notice period (multiple endowments issued for liquidity)

Sygnia OSI Fund

• Oldest university in the world (1069)

• Number 1 research university in the world with 29 science faculties*

• Over 12 000 full-time researchers with £450m pa spent on academic R&D

• Medical Science Division rated number 1 in the world for Clinical,Pre-Clinical and Health subjects for the past 8 years (5 000 academics, researchers, NHS clinicians and GPs, 1 500 graduates and 1 600 undergraduates)*

• Mathematics, Physical and Life Sciences Division ranked 1st in the UK in the Research Excellence Framework (1 730 academics and researchers,2 000 DPhil and MSc graduates)

• Files more patents annually than any other UK university (2-3 a week) • Generated most research spin outs of any UK university (136) with an

annual revenue of £600m

“The Times Higher Education ranks Oxford as one of the world's "six superbrands" on its World Reputation Rankings, alongside Berkeley, Cambridge, Harvard, MIT and Stanford.”

University of Oxford

*The Times Higher Education World University Rankings 2019 and Forbes’s World University Rankings

Oxford Sciences Innovation Plc

Practical application• OSI’s Investment Principals work with academics to turn a patent into a

spin-out business. They help build the management team and develop the product through to revenue generation.

• OSI receives founding shares in spin-out companies from the OU(founding shares are split 25% OSI, 25% OU, 50% relevant academic staff).

• OSI supports spin-outs from start-up through to maturity - can opt to retain a significant equity stake (seed £100k to £10m, 20% to 40% stake when leading).

Intrinsic valuation

Net present value of 25% of all past and future IP originating from OU

“Financial platform enabling funding and commercialisation of research ideas originating from Oxford University”

Launched: June 2015 with £600m in capitalCompany size: £708m (investment of £251m in 75 spin-outs, £438m in cash)Return in British pounds since inception: 18.1% (this is expected to increase exponentially over the next 5 years)Commercials: OU and OSI share equally in all qualifying spin-outs from OU (effectively OSI owns half OU’s stake in all past and future patents registered by OU in perpetuity and simplifies access to academic ideas)

Oxford University Spin-out History“More spinouts in the past 5 years than in the previous 700”

OSI “R&D intensive, focus on biosciences and technology, groundbreaking innovation with exponential impact on humankind, founders are academics”

VSSilicon Valley“High-tech, “fake it till you make it”, social behavior breakthroughs, little focus on biosciences, little prior R&D spend, founders are graduates”

OSI Spin-out ideas are:• based on years of rigorous scientific research and supported by significant R&D spend by OU• tested and validated by professional researchers and academics (often published)• subject to peer group reviews• supported by the infrastructure, facilities and resources of OU• overseen by global business leaders and investors acting as funders and advisors

Why is OSI unique?

“OSI shareholders are amongst the largest most successful global companies and individuals.” Peter Davies, Chairman OSI, Senior Partner, Lansdowne Partners

Exclusive access for top brand investors

Investors In OSI

Ordinary shares

Holding %

Lansdowne Partners (UK) LLP 92 720 750 15.25%

Sygnia OSI Fund 73 200 000 12.04%Invesco Asset Management 46 250 000 7.61%

University of Oxford 39 739 973 6.54%IP Group Plc 14 250 000 2.34%OUEM 24 166 667 3.98%The Wellcome Trust 24 166 667 3.98%Sequoia Heritage 24 166 667 3.98%Temasek 20 833 333 3.43%Investors < 3% (59 investors) 248 422 083 40.86%

Total 607 916 140

Investors In OSI Spin OutsGoogle Ventures

Goldman Sachs

Sequoia Capital China

Redmile (US VC firm)

Vertex Pharmaceuticals

F-Prime Capital Partners

Foresite Capital

Syncona

GT Healthcare Capital Partners

Samsara BioCapital

General Catalyst

Portfolio Managers

Lead Portfolio Managers

2018 to current • NED | Sygnia Limited– JSE-listed fintechgroup in SA2016 to current • Founding Investor/NED | Deep Science Ventures, a VC fund and lab supporting interdisciplinary scientists and engineers building solutions to real world challenges2016 to current • Investor | 24 Haymarket - an investment network for VC investors2015 to current • NED/ Investor | Next Biosciences - largest cord blood and tissue Biobank in SA, recently acquired the Genesis Genetics franchise for SA 2014 to 2016 • Seed investor | Jet.com (start-up bought by Walmart for $3.3bn in 2016) – one of the 10 fastest billion dollar sales in VC history2014 to 2018 • Investor and advisor | Kenshō Technologies (machine learning and analytics start-up bought out by S&P Group for $770m in 2018)1994 to 2015 • Deutsche Bank | Global Head of Equity Trading (2010-2015); Portfolio manager of internal hedge fund Austin Friars Capital (2004-2008); worked in SA, UK, NY and HK.

2006 to current • Founder/CEO | Sygnia Limited – JSE-listed fintech group in SA (start-up to IPO in 2015, £12bn in AUM)2017 to current • NED | Centre for Africa, Harvard University –involved in Harvard’s education-focused efforts in Africa2003 to 2006 • Investor/CEO | African Harvest Fund Managers –grew AH to top 10 asset managers in 3 years2003 • Founder | IQVEST Fund Managers – launched and managed 1ST fund of hedge funds in SA (sold to African Harvest)1997 to 2003 • Head of Institutional Business/Director | Coronation Fund Managers - joined a start-up, left when CFM was one of top 10 asset managers in SA – ran all the operations of the business since inception, founded Kagiso Asset Management (JV with Kagiso Trust), founded PPS Asset Management (JV with PPS)1996 to 1997 • Head of Investment Consulting/Director | Alexander Forbes – tasked with designing and launching a new division of AF1994 to 1996 • Investments Actuary/Portfolio Manager | Southern Life – designed and managed the 1st index tracking fund in SA

Andre Crawford-BruntBCom (Commercial Law)

Magda WierzyckaBBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP, FIFM

Head: Scientific Advisory PanelProfessor Edward B Peile MB BS, EdD, FRCP, FHEA, FRCGP, FRCPCH,FAcadMEd, MRCS, DCH, DRCOGEmeritus Professor of Medical Education, Warwick Medical School, University of Warwick, UK

• Over 100 publications, including being the immediate past Editor-in-Chief, Education for Primary Care

• Member of Karolinska Institutet Prize Committee, which is responsible for the most prestigious international award for Research in Medical Education

• In 2017 led the development of a new profession in Digital Healthcare Science (Digital Healthcare Scientist degrees were approved by Health Education England and the Academy for Healthcare Science in 2019)

Few Past Positions Held:

• Member, Steering Group Royal College of General Practitioners Education Forum

• Appraiser, NHS England, Thames Valley Team

• Clinical Adviser, RCGP, and member of assessment panel

• External Peer Member of School of Medical Education Committee at Kings College, London

• Expert assessor at Karolinska Institutet, Sweden, Queen’s University, Belfast and University of Oxford

1994 Awarded Fellowship of the Royal College of General Practitioners1999 Awarded Fellowship of the Royal College of Physicians of London2003 Awarded Fellowship of the Royal College of Paediatrics and Child Health 2004 Invited Lecturer Tom Stewart Memorial Lecture (RCGP): “On being General” 2005 Warwick Award for Teaching Excellence 2007 Awarded UK National Teaching Fellowship2007 Awarded Fellowship of the UK Higher Education Academy2009 Awarded Fellowship of Academy of Medical Educators. 2010 President’s Medal Academy of Medical Educators - for lifetime contribution to medical

education. 2010 Invited to join International advisory Board Queen’s University, Belfast 2011 Eminent Lecturer, Karolinska Institutet, Sweden “Altruism: what is it and can we teach it”. 2012 Appointed member External Review Team, Portuguese Agency for Assessment and

Accreditation of Higher Education. 2012 Invited to join International Advisory Board Gulf Medical University2012 Appointed Visiting Research Professor, School of Medicine, Dentistry and Biomedical

Sciences, Queen’s University Belfast. 2012 Invited to Committee for the Karolinska Prize for Research in Medical Education 2013 Appointed first Ronald Harden Visiting Professor of Medical Education, International Medical

University, Malaysia. 2013 Appointed expert external assessor – Conference of Rectors and Principals of Quebec

Universities 2013 Appointed Interim Vice-Dean, University of Exeter Medical School2014 Associate Director of Clinical Studies, Medical School, University of Oxford2014 Chair, Fitness to Practise Committee, Peninsula College of Medicine and Dentistry2014 Chair Education, Training and Standards Committee, Academy for Healthcare Science2015 Invited to deliver John Horder Memorial Lecture (CAIPE) 2015 External Peer School of Medical Education Committee. Kings College London 2017 Awarded HonFAcadMed – highest Academy award ‘bestowed on exceptional individuals’.

Some Markers of Professional Esteem

Investment Process

Multi-tier screening processOXFORD UNIVERSITY RESEARCH AND DEVELOPMENT PROCESS• All ideas and patents originate from academic research at OU.• All patents has been “lab-tested” and most have been peer group reviewed.

OXFORD SCIENCES INNOVATION PLC INVESTMENT PROCESS• Team of 25 staff with 7 investment professionals dedicated to further research

and screening of each investment opportunity for commercial viability and scientific merit.

• Research is supported by academic staff at OU.

RESEARCH BY VALIDATING CAPITAL INVESTORS• Sygnia invests alongside well-known asset managers and VC investors (demand

for OSI shares exceeds supply)

SYGNIA RESEARCH AND INVESTMENT PROCESS• Staff assesses each opportunity from a commercial viability perspective

(financials, competitor analysis, future founding requirements, strength of management team).

• Scientific advisory panel drawn from outside of OU is used as a “sanity check” to ensure we are not myopic in our approach.

OSI Portfolio

Exposure per sectorA

vera

ge E

xpos

ure

Split

Energy Hardware Health Tech Life Science Tool Medical Device Software Therapeutics

Average

✓ Tens of peer-reviewed publications in top-tier journals✓ Comprehensive data on multiple biomarkers with

external comparisons✓ A functioning prototype device✓ Nine patent families and counting

Osler is creating portable diagnostic devices that enable anyone, anywhere, at any time to test for any of the majority of biomarkers, quickly, cheaply, accurately, from a drop of blood.

Based on decades of OU research, Osler uses Electrochemical impedance spectroscopy.

Osler has created a portable diagnostic device that enables anyone to test for majority of biomarkers from a drop of blood.

Spun out: 2016Fundraise status: £30 million Series ADepartment: ChemistryWebsite: oslerdiagnostics.com

Spin out company| OSLERDecentralised diagnostics

Coronary artery disease is the biggest killer globally affecting 50% of males over 40. The most widely diagnostic tool used is echocardiography (ultrasound) and qualitative clinical interpretation. Evidence suggests that at least 20% of coronary artery disease scans are misdiagnosed. Ultromics EchoGo’s technology reduces that error rate by >50%.

EchoGo extracts over 80 000 data points from an echocardiogram image and analyses it using machine learning.

Ultromics has attracted a world-class team of clinicians, scientists, engineers, and healthcare professionals to develop and deliver the technology to market.

EchoGo’s technology reduces error rate in the diagnosis of coronary heart disease by >50%.

Spun-out: July 2017Fundraise Status: £13M Series ADepartment: MedicineWebsite: ultromics.com

Spin out company | ULTROMICSAI of echocardiography

Evox Therapeutics is harnessing the natural delivery capabilities of extracellular vesicles (foundational transporters in the human body) to develop an entirely novel class of biotherapeutics to treat serious diseases.

Exosomes are nano-sized vesicles secreted by all cells. They are found in all biological fluids and are the natural way that cells deliver proteins and nucleic acids to other cells. Evox combines the delivery capabilities of exosomes with targeting technology, sophisticated biomolecular engineering approaches, and large-scale production methodology, to enable the development of natural delivery nanoparticles for the treatment of severe diseases.

Evox is also developing its own rare disease pipeline and partnering with pharma, leveraging dominant IP estate and world-leading expertise.

Evox modifies exosomesto facilitate targeted drug delivery to organs of interest, not least to the brain and the central nervous system.

Spun-out: July 2017Fundraise Status: $60m in A & BDepartment: Physiology Website: evoxtherapeutics.com

Spin out company | EVOXRevolutionary drug delivery system

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Why Sygnia OSI Fund?Portfolio managers with a proven and successful track record in building businesses and investing, supported by a highly experienced team of investment professionals

Ownership of University of Oxford’s IP, the ”global superbrand”of intellectual and research capital in perpetuity

Access to an existing portfolio of OU’s “best-of-breed” investmentopportunities well into an established roadmap

Access to a pipeline of future deals in the sphere of biosciencesand technology-driven innovation

Invest alongside the most prestigiousnames in global VC investing

Sustainable and direct impact investing in a risk-diversified manner

Funds are backed by resources and infrastructure provided bySygnia Limited

Celebrating Sygnia

A South African JSE-listed financial services group offering a range of investment management solutions and administration services to institutional and retail clients in South Africa and abroad.

Advisors• External auditors: Mazars• Insurance advisors: Marsh• ISAE3402 Type II audit: E&Y• Internal auditors: PwC

Sygnia Life


Sygnia Systems

Sygnia Collective Investments

Sygnia Financial Services

Sygnia Securities

Sygnia Employee Benefits

Sygnia Itrix

Sygnia Limited

Sygnia Limited – Top Performance, Low Fees• Second largest multi-management company in South Africa• Second largest passive manager in South Africa• Largest provider of ETFs in South Africa• R229 billion in assets under management and administration• Over 900 institutional investors• Over 45 000 retail investors• Over 34 000 umbrella fund investors• 14 years’ experience since inception in 2006 (IPO in 2015)• 66% staff- and management-owned • Over 230 staff members• Offices in Cape Town, Johannesburg, Durban and London

Sygnia continues to grow its assets at an exponential rate

Magda WierzyckaChief Executive OfficerBBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP, FIFM

Murad SirkotFinancial DirectorBBusSc (Finance),PGDA, CA (SA), CFA

David HuftonDeputy Chief Executive OfficerBEconSc (Actuarial), FASSA, FIA

Professor Haroon BhoratNon-Executive Chairperson

Head: Economics Department, UCT, PhD (Economics)

Andre Crawford-BruntIndependent Non-Executive DirectorBCom (Commercial Law)

Mcebisi JonasIndependent Non-Executive Director

Ex-Deputy Minister of Finance, Investment Envoy (SA), BA (History and Sociology), PGDip (HE)

Kaizer MoyaneIndependent Non-Executive DirectorCommissioner of CCMA, BA, LLB

Ropfiwa SithubiIndependent Non-Executive DirectorLecturer in Accounting and Tax, UCT, CA (SA)

Sygnia board of directors

George CavalerosLead Independent Non-Executive DirectorEx-Head of Financial Services Practice, Deloitte, BCompt (Accounting Science)M.Com Applied Risk ManagementCA(SA), CFA ,CIA

Thank you

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