Arrive, enjoy refreshments, chat to old friends A Presentation - PDF document

01-Aug-19 Arrive, enjoy refreshments, chat to old friends A Presentation commences @ 10:00 B Sentinel Retirement Fund’s Standing 1 Interesting Pensioner Statistics 2 Sentinel Investments 3 Up-To-Date Pension Increase Indicators 4 Pensioner Benefits in a Nutshell 5 Bits & Tips 6 Revert back to A above .…… C 1

01-Aug-19 Asset Member Fund Name Assets Membership Ranking Ranking (R‘m) 1 31 ESKOM PENSION AND PROVIDENT FUND 133 343 88 017 2 2 SOUTH AFRICAN RETIREMENT ANNUITY FUND 112 151 1 407 129 3 3 CENTRAL RETIREMENT ANNUITY FUND 104 584 842 166 4 33 SENTINEL RETIREMENT FUND 82 490 81 243 5 5 LIFESTYLE RETIREMENT ANNUITY FUND 76 207 631 950 6 1 ENGINEERING INDUSTRIES PENSION FUND 72 443 1 573 006 7 6 MOMENTUM RETIREMENT ANNUITY FUND 53 795 409 542 8 8 OLD MUTUAL SUPERFUND PROVIDENT FUND 50 219 277 750 9 73 SASOL PENSION FUND 48 876 27 540 10 19 OLD MUTUAL SUPERFUND PENSION FUND 48 490 140 456 11 4 METAL INDUSTRIES PROVIDENT FUND 42 569 832 723 12 16 ALEXANDER FORBES RETIREMENT FUND (PROVIDENT SECTION) 39 285 185 505 13 27 PROFESSIONAL PROVIDENT SOCIETY RETIREMENT ANNUITY FUND 39 235 99 457 14 75 TELKOM RETIREMENT FUND 38 981 26 385 15 54 STANDARD BANK GROUP RETIREMENT FUND 36 701 38 720 16 53 ABSA PENSION FUND 31 619 40 980 17 18 MINEWORKERS PROVIDENT FUND 30 587 175 620 18 28 ALLAN GRAY RETIREMENT ANNUITY FUND 30 295 96 933 19 54 FIRST RAND RETIREMENT FUND 28 991 39 568 20 32 ALEXANDER FORBES RETIREMENT FUND (PENSION SECTION) 25 657 84 991 Source: 2017 Registrar of Pension Funds Annual Report Age Primary Pensioner Member Total % Group Pensioner Spouses Spouses - 60 2,924 961 3,235 7,501 21% 60 - 69 6,494 2,198 952 9,846 29% 70 - 79 6,386 3,995 502 11,069 33% 80 + 2,660 2,632 186 5,686 17% Total 18,464 9,786 4,875 33,125 % 56% 29% 15% Oldest Pensioner = 101 years, 7 months = Primary Pensioner 3 Spouse Pensioners = over 100 years old 90 – 100 years old = 581 Pensioners 2

01-Aug-19 Group Suspensions Additions No Ave No Ave Capital Pension Pension Transferred Primary 917 R11,068 629 R14,791 R1,6 bn Pensioners Pensioner 507 R8,559 537 R9,369 Spouses Member 114 R3,869 117 R5,661 R 120 mil Spouses Total 1,538 1,283 R1,7 bn SENTINEL Current Ave Ave Age Ave Years (Dec 2018) Gross Monthly Paid until Pension Suspended Primary Pensioner R12,491 69,5 yrs 19,6 yrs Spouse Pensioner R7,908 67,5 yrs 12,2 yrs SOUTH AFRICA Population Ave Banked Number (April 2019) Group Monthly Values Bankserv Index Employees R13,741 3,092,809 Bankserv Index Pensioners R7,317 693,689 3

01-Aug-19 22 044 24 112 11 081 Monthly Payslips Annual Benefit Statements Annual Tax Certificates TOTAL ASSETS R 82.2bn MEMBER PENSIONER R 38.1bn R 44.1bn 4

01-Aug-19 China Equity 3% EM Equity 6% Foreign SA Equity 22% Property 4% SA Property Foreign 7% Equity 17% SA Nominal Africa Bonds 3% Equity 7% SA Money Market 2% SA LT ILB 29% 5

01-Aug-19 11.8% 11.1% 9.9% 9.3% 8.8% 8.5% 6.3% 6.2% 4.1% 3.8% 3.6% 3.1% 1 Year 3 Year 5 Year 10 Year Portfolio Benchmark CPI+4% Geopolitics Trumponomics Trade Wars Brexit 6

01-Aug-19 Sovereign Rating 2019 Elections Currency Volatility SOE’s 7

01-Aug-19 Community Development Small Business Finance and Enterprise Development Health and Wellness Education Microfinance and Financial Inclusion Infrastructure Development Natural Resources and Conservation Renewable Energy and Climate Change Sustainable Agriculture and Development Sustainable Consumer Products and Fair Trade Affordable Housing Environmental Preservation Consumer and Business Access to Finance Broad-Based Black Economic Empowerment Funding 8

01-Aug-19 CONSUMER AND BUSINESS AFFORDABLE SUSTAINABLE ACCESS TO FINANCE 0.47% HOUSING AGRICULTURE AND 0.29% DEVELOPMENT EDUCATION, 0.03% 0.28% ENVIRONMENTAL SMALL BUSINESS PRESERVATION FINANCE AND 0.13% ENTERPRISE DEVELOPMENT 0.35% HEALTH AND WELLNESS 0.47% INFRASTRUCTURE DEVELOPMENT RENEWABLE ENERGY 1.39% AND CLIMATE NATURAL RESOURCES CHANGE 5.52% AND CONSERVATION 0.10% Kathu Solar Park Northern Cape Tsitsikamma Community Wind Farm The Pavilion Bredasdorp Busamed Private Hospital Moutse Mall Mpumulanga Harrismith 9

01-Aug-19 Regulations 37 and 39 require that all fees and charges are disclosed in a clear and understandable manner from 1 March 2019 Investment Charges All charges of investments and transaction costs Investment consulting fees not included above Advice Charges All personnel, IT & operational costs Admin Charges Legal & consulting fees, audit fees, Board fees, Other Charges FSCA levies, insurances, valuation charges and annual report costs Based on Pensioner Portfolio for the year ended 30 June 2018 Previous Total Direct Cost New Total Fund Charges Detail % Detail % Notes Notes Gross 7.87% Net of Gross Return 8.93% Before all Return indirect costs investment Less: Total Charges (1.52%) cost Less: (0.46%) All direct Investment charges (1.33%) All direct & Direct charges Advice charges (0.01%) indirect costs charges Admin charges (0.16%) Other charges (0.02%) Net Return 7.41% Zero impact Net 7.41% Earned by Return portfolio 10

01-Aug-19 2019 Description Budget Investment Management Charges 1.42% Advice Charges 0.01% Admin Charges 0.19% Other Charges 0.02% Total Charges 1.64% Recovered from Pensioner Portfolio, NOT pensions LONG TERM INVESTMENTS CPI + 4% MINIMUM TARGET PURCHASING POWER 80% CPI FINANCIAL FUNDING LEVEL SOUNDNESS 11

01-Aug-19 The Board will aim to increase pensions annually by a minimum of 80% of year-on- year headline inflation (CPI) as at 30 June, taking into account the impact of any award on the long term sustainability of the pensioner account. 12

01-Aug-19 Pension increases will be smoothed over time, by allowing the funding level of the Pensions Account to fluctuate immediately after the increase between 95% and 105%. The Board may further consider the granting of an ad-hoc discretionary payment to pensioners. Increases as % of CPI 147% 144% 139% 131% 17% 16% 20% 117% 114% 111% 22% 106% 100% 99% 17% 14% 11% 15% 12% 12% 130% 128% 119% 109% 100% 100% 100% 91% 87% 88% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Increase Bonus 13

01-Aug-19 2012 2013 2014 2015 2016 2017 2018 2019 Portfolio Returns % 22 20.1 12.9 11.8 2.8 1.8 7.9 4.2 CPI % 5.5 5.5 6.6 4.7 6.3 5.6 4.6 4.4 Increases % 5 6 8.6 6 6.3 4.5 4.6 ? Funding Level % (Pre) 101 107 111 106 103 100 101 99 Funding Level % (Post) 95.5 99.5 101 99.3 95.7 95.5 95.7 ? Regime Spouse Definition Spouse DBS Lump Pension Sum MOPF MEPF Before Before Spouse @ Retirement 24 X or June 1981 April 1982 convert 50% From From Spouse @ Retirement Exclude LSB 30 X or & ERR June 1981 April 1982 throughout until death convert 33% MEPF from Spouse after Jan 1991 to Sept 1994 Retirement Exclude LSB Feb 2003 minimum & ERR 12 X 14

01-Aug-19 Regime Spouse Definition Spouse Lump Sum at Pension Death Sentinel MEPF Remainder of 75% 5 year Post Post 1/3/2001 1/3/2003 Term Certain Sentinel & ME 75% Spouse @ Retirement Post 1/8/2005 Remainder of or 5-25 year Term Certain 100% Sentinel From 2007 Nominated spouse Continue, Convert or Flexible Pensions Lump Sum • Submit your tax return EARLIER, if required – R350k to R500k increase in income threshold – 2019 Tax certificates are in …Snail-mail? eFiling: Before 31 January 2020 MobiApp: Before 4 December 2019 SARS Branch: 1 August 2019 to 31 October 2019 • Update Sentinel records and e-CONNECT 15

01-Aug-19 Internal & External Auditor appointments Know what you have coming in Pay for necessities first Take advantage of senior discounts Shop smartly Avoid major shopping centers Quit your vices & save on sin taxes… Reminder: Exactly what you told your children..? 16

01-Aug-19 THIS IS MERELY A REMINDER, NOT AN ADVERTISEMENT 17

01-Aug-19 (011) 481-8000 SMS your ID NUMBER to (011) 481-8111 33288 Client Service Centres info@sentinel.za.com www.sentinel.za.com 18