CONTENTS · Physical address: 275 Kent Avenue Ferndale Randburg 2194 FINANCIAL REPORTING PERIODS Current year: 1 April 2019 to 31 March 2020 Prior year: 1 April 2018 to 31 March 2019

ANNUAL FINANCIAL STATEMENTS

NAME OF RETIREMENT FUND: MOTOR INDUSTRY PENSION FUND (2005)

FINANCIAL SECTOR CONDUCT AUTHORITYREGISTRATION NUMBER: 12/8/16669/1

FOR THE PERIOD: 1 APRIL 2019 to 31 MARCH 2020

CONTENTS

Schedule Page Schedule Page

A

B

C

D

E

F

G

Regulatory Information *

Statement of responsibility by theBoard of Fund *

Statement of responsibility by thePrincipal Officer *

Report of the Independent Auditors

Report of the Board of Fund *

Statement of net assets and funds

Statement of changes in net assetsand funds

1 - 6

7

8

9 - 11

12 - 15

16

17

HA

HB

I

IA

IB

Notes to the Annual FinancialStatements

Report of the Valuator *

Report of the independent auditors onfactual findings to the Board of Fundand Authority of pension funds

Investment schedule pertaining to theAnnual Financial Statements *

Assets held in compliance withRegulation 28

Independent Auditor's report onassets held in compliance withRegulation 28 to the Board of Fund

18 - 26

27 - 28

29 - 42

43 - 57

58 - 64

65 - 67

* Not subject to any engagement by an auditor

MOTOR INDUSTRY PENSION FUND (2005)

SCHEDULE AREGULATORY INFORMATIONFOR THE YEAR ENDED 31 MARCH 2020

REGISTERED OFFICE OF THE FUND

Postal address: Private Bag X10095Randburg2125

Physical address: 275 Kent AvenueFerndaleRandburg2194

FINANCIAL REPORTING PERIODS

Current year: 1 April 2019 to 31 March 2020Prior year: 1 April 2018 to 31 March 2019

BOARD OF FUNDFull name E-mail Address Capacity Date appointed Date resignedJacobus Johannes Olivier [email protected] RMI (E) 4 May 2017Francisens Wilhelmus Maria van derZon

[email protected] FRA (A) 8 February 2018 6 August 2019

Hermann Köstens [email protected] MISA (L) 9 February 2018Barrymore Cavanagh Canning [email protected] RMI (A) 4 May 2017 14 November 2019Motlalepula Michael Motsoane [email protected] FRA (M) 1 January 2013 6 August 2019Basil Sifiso Cele [email protected] NUMSA (L) 8 February 2017Gerald William Leith [email protected] NEASA (E) 18 August 2015Anesh Dhayanan Soonder [email protected] I & C 1 January 2018Japhtaline Mantuka Maisela [email protected] I 1 January 2018Kutlwano Mokhele [email protected] NUMSA (L) 21 August 2018Thabane Dumakude [email protected] NUMSA (A) 11 March 2019Jaco Swart [email protected] NEASA (A) 18 August 2015Leesha Koobair [email protected] MISA (A) 3 June 2019Jeanne Esterhuizen [email protected] RMI (A) 14 November 2019Zibhelezihle Sokabo [email protected] FRA (A) 7 August 2019Francisens Wilhelmus Maria van derZon

[email protected] FRA (E) 7 August 2019

Thandeka Naledi Malehlohonolo [email protected] MISA (A) 8 February 2019 2 June 2019

- 'RMI' Retail Motor Industry Organisation- 'NUMSA' National Union of Metal Workers of South Africa- 'NEASA' National Employers Association of South Africa- 'MISA' Motor Industry Staff Association- 'I' Independent- 'FRA' Fuel Retail Association- 'E' Employer Organisations- 'L' Labour Organisations- 'A' Alternate Trustee

Governance note: schedule of meetings* held by the Board of Fund in terms of the rules of the FundMeeting date Place of meeting Quorum

(yes/no)27 May 2019 275 Kent Avenue, Ferndale, 2194 Yes20 August 2019 275 Kent Avenue, Ferndale, 2194 Yes25 September 2019 275 Kent Avenue, Ferndale, 2194 Yes28 November 2019 275 Kent Avenue, Ferndale, 2194 Yes18 February 2020 275 Kent Avenue, Ferndale, 2194 Yes* Only meetings held by the Board of Fund and does not include meetings held by the sub-committees

FUND OFFICERS

Principal OfficerFull name Postal address Physical address Telephone number E-mail address Date

appointed Radesh ArjunMaharaj

Private BagX10095, Randburg,2125

275 Kent Avenue,Ferndale,Randburg, 2194

011 561 9300 [email protected] 1 March2019

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SCHEDULE AREGULATORY INFORMATION (continued)FOR THE YEAR ENDED 31 MARCH 2020

Monitoring Person*Full name Postal address Physical address Telephone number E-mail address Date

appointed Radesh ArjunMaharaj


275 Kent Avenue,Ferndale,Randburg, 2194

011 561 9300 [email protected] 1 March2019

*(In terms of Section 13A of the Pension Funds Act)

PROFESSIONAL SERVICE PROVIDERS

Actuary/ValuatorFull name Postal address Physical address Telephone number E-mail address Date

appointed Garth Barnard 1st Floor 3

Exchange Square,87 Maude Street,Sandton, 2196

1st Floor 3Exchange Square,87 Maude Street,Sandton, 2196

011 7842309 [email protected] 18 October2018

AuditorFull name Postal address Physical address Telephone

numberE-mail address Date

appointed Dateresigned

Deloitte &Touche

Private Bag X6,Gallo Manor, 2052

Building 8, DeloittePlace, TheWoodlands,Woodlands Drive,Woodmead,Sandton, 2191

011 8065200

[email protected] 17February2020

Nexia SAB&TCharteredAccountants Inc

PO Box 10512,Centurion, 0046

119 Witch-HazelAvenue, HighveldTechnopark,Centurion,0046

012 6828800

[email protected] 18February2020

Benefit AdministratorFull name Postal address Physical address Telephone

numberDate appointed Date resigned Registration

number interms ofsection 13B

Selfadministration


275 Kent Avenue,Ferndale, 2194

011 561 9300 30 September2019

N/A

Motor IndustryFundAdministratorsProprietaryLimited


275 Kent Avenue,Ferndale, 2194

011 561 9300 1 October 2019 24/78

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SCHEDULE AREGULATORY INFORMATION (continued)FOR THE YEAR ENDED 31 MARCH 2020 PROFESSIONAL SERVICE PROVIDERS (continued)

Investment AdministratorFull name Postal address Physical address Telephone number FAIS

registrationnumber

Allan Gray South Africa ProprietaryLimited

PO Box 51318, V &A Waterfront, CapeTown, 8000

Block A, GrangerBay Court, BeachRoad, V & AWaterfront, CapeTown, 8001

021 415 2300 6663

Coronation Fund Managers Limited PO Box 993, CapeTown, 8000

7th Floor,MontClare Place,Cnr Campground &Main Roads,Claremont, CapeTown, 7700

021 680 2000 548

Edge Capital Proprietary Limited PO Box 4188,Tyger Valley, 7536

Edge House, 3Heuwelkruin Close,Durbanville, 7550

021 970 2613 882

Abax Investments ProprietaryLimited

P.O Box 23851,Claremont, 7735

Ground Floor,Coronation House,The Oval, 1Oakdale Road,Newlands, 7700

021 670 8965 856

Futuregrowth Proprietary Limited Private Bag X6,Newlands, 7725

3rd Floor, GreatWesterford, 220Main Road,Rondebosch, 7700

021 659 5400 520

Investec Asset ManagementProprietary Limited

PO Box 3444,Tyger Valley, 7536

Investec GroupSecretariat, 4thFloor, 100 GraystonDrive, Sandown,Sandton, 2196

021 914 1427 587

Marathon Asset Management LLP Orion House, 5Upper St Martin'sLane, London,WC2H 9EA, UK

Orion House, 5Upper St Martin'sLane, London,WC2H 9EA, UK

+44 20 7497 2211 42011

Prudential Portfolio Managers -(SA)Proprietary Limited

PO Box 44813,Claremont, 7735

4th Floor, Sanclare,21 Dreyer Street,Claremont, 7700

021 683 5045/6 45199

Sanlam InvestmentManagement(Pty) Ltd

Private Bag X8,Tyger Valley, 7536

2 Strand Street,Belville, 7530

021 950 2500 579

Ashburton Fund ManagersProprietary Limited

PO Box 653780,Benmore, 2010

4 Merchant Place, 1Fredman Drive,Sandton, 2196

011 282 8800 182

Mergence Investment ManagersProprietary Limited

P.O Box 8275,Roggebaai, 8012

6th Floor, TheEquinox, Cnr Main& Milton Road,Seapoint, 8001

021 433 2960 16134

Kagiso Asset ManagementProprietary Limited

PO Box 1016, CapeTown, 8000

5th Floor,MontClare Place,Cnr Campgroumd &Main Road,Claremont, 7735

021 673 6307 784

Aeon Investment ManagementProprietary Limited

P O Box 21142,Tokai, 7966

Prescient House,Westlake BusinessPark, Otto Close,Westlake, 7945

021 700 3649 27126

All Seasons Capital ManagementLimited

PO Box 4188,Tygervalley, 7536

Edge House, 3Heuwelkruin Close,Durbanville, 7550

021 970 2613 41387

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SCHEDULE AREGULATORY INFORMATION (continued)FOR THE YEAR ENDED 31 MARCH 2020 PROFESSIONAL SERVICE PROVIDERS (continued)Investment Administrators (continued)Full name Postal address Physical address Telephone

numberFAISregistrationnumber

All Weather Capital ProprietaryLimited

9th Floor KatherineTowers, 1 ParkLane, WierdaValley, Sandton,2196

9th Floor KatherineTowers, 1 ParkLane, WierdaValley, Sandton,2196

011 722 7382 36722

Aluwani Capital PartnersProprietary Limited

EPPF Office Park,24 GeorgianCrescent,Bryanston, 2021

EPPF Office Park,24 GeorgianCrescent,Bryanston, 2021

012 204 3832 46196

Argon Asset ManagementProprietary Limited


1st Floor ColintonHouse, The Oval, 1Oakdale Road,Newlands, 7735

021 670 6571 835

Boxwood Property Investment FundGP Proprietary Limited

1st Floor,Silverwood Close,Steenberg OfficePark, Tokai, 7945


021 701 3777 50795

27Four Investment ManagersProprietary Limited

RosebankFirestation, 5th floorc/o Bath Avenueand Baker StreetRosebank, 2196

RosebankFirestation, 5th floorc/o Bath Avenueand Baker StreetRosebank, 2196

011 442 2464 31045

Fairtree Asset ManagementProprietary Limited

Willow bridgePlace, Cnr CarlCronje Drive & OldOak Road, Bellville,7530

Willow bridgePlace, Cnr CarlCronje Drive & OldOak Road, Bellville,7530

021 943 3774 25917

Hosking Partners LLP 2 St James'sMarket, London,SW1Y 4AH

2 St James'sMarket, London,SW1Y 4AH

44 207 004 780 45612

Meago Proprietary Limited Prescient House,Westlake BusinessPark, Otto Close,Westlake, 7945


021 700 5444 24919

Mianzo Asset ManagementProprietary Limited

Unit EG01 VestaHouse, The Forum,Northbank Lane,Century City, SouthAfrica, 7441

Unit EG01 VestaHouse, The Forum,Northbank Lane,Century City, SouthAfrica, 7441

021 552 3555 43114

Morgan Stanley InvestmentManagement Limited

20 Bank Street,Canary Wharf,London, E14 4AD

20 Bank Street,Canary Wharf,London, E14 4AD

44 207 425 7537 9752

Mpande Property Fund ManagerProprietary Limited



021 701 3777

MSM Property Fund ProprietaryLimited

1st Floor, 3Exchange Square,87 Maude Street,Sandton, 2196

1st Floor, 3Exchange Square,87 Maude Street,Sandton, 2196

011 326 8214 45939

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Orient Opportunities Fund Prescient House,Westlake BusinessPark, Otto Close,Westlake, 7945


Perpetua Investment ManagesProprietary Limited

PO Box 44367,Claremont 7735,South Africa

5th Floor, TheCitadel, 15Cavendish Street,Claremont 7708

021 180 4917 29977

Prowess Investment ManagersProprietary Limited

20th Floor, 1Thibault Square, 1Long St, CapeTown

20th Floor, 1Thibault Square, 1Long St, CapeTown

021 565 0069 38318

Sands Capital Ventures, LLC Styne House,Upper Hatch Street,Dublin 2, Ireland

Styne House,Upper Hatch Street,Dublin 2, Ireland

35 31 638 2440 48103

Sentio Capital ManagementProprietary Limited

Illovo Edge,Building 3, 1stFloor, 5 HarriesRoad, Illovo, JHB,South Africa, 2196

Illovo Edge,Building 3, 1stFloor, 5 HarriesRoad, Illovo, JHB,South Africa, 2196

011 880 6082 33843

Sesfikile Capital Proprietary Limited Suite 334, PrivateBag X1, MelroseArch,Johannesburg,2076

2nd Floor, 18 TheHigh Street,Melrose Arch,Johannesburg,2076

011 326 8214 39946

South Suez Capital Limited 4th Floor, 19 BankStreet, Cybercity,Ebene, 72201,Mauritius

4th Floor, 19 BankStreet, Cybercity,Ebene, 72201,Mauritius

230 404 8800 41613

Summit PE Investment ManagersProprietary Limited

3rd Floor, OneVdara Towers, 41Rivonia Rd,Sandhurst,Johannesburg,South Africa

3rd Floor, OneVdara Towers, 41Rivonia Rd,Sandhurst,Johannesburg,South Africa

010 880 1812 48 417

Taquanta Asset ManagersProprietary Limited

7th Floor, NewlandsTerraces, 8Boundary Road,Newlands, CapeTown, 7700

7th Floor, NewlandsTerraces, 8Boundary Road,Newlands, CapeTown, 7700

021 681 5145 618

Third Way Investment PartnersProprietary Limited



082 495 1973 48341

Thyme Capital Proprietary Limited Sands of Thyme, 6Blackpool Road,Bryanston, 2021

Sands of Thyme, 6Blackpool Road,Bryanston, 2021

011 463 0584 48926

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TriAlpha Investment ManagementProprietary Limited

Postnet Suite 277,Private Bag X5061,Stellenbosch 7599,South Africa

Room 12B, 2ndFloor, Ou KollegeBuilding, 35 ChurchStreet,Stellenbosch 7600,South Africa

021 809 1210 28090

Vunani Fund Managers ProprietaryLimited

P O Box 44586,Claremont, 7735

6 Floor, LetterstedtHouse, Newlandson Main, Newlands7700, Cape Town

021 670 4950 608

Quick Leap Investment ProprietaryLimited


275 Kent Avenue,Randburg,Ferndale, 2125

011 561 9300 41508

Investment AdvisorFull name Postal address Physical address Telephone number FAIS

registrationnumber

RisCura Solutions ProprietaryLimited


5th Floor,MontClare Place,Cnr Campground &Main Roads,Claremont, 7735

021 673 6999 6249

Custodian and/or NomineeFull name Postal address Physical address Telephone number FSP approval

noNedbank Ltd PO Box 1144,

Johannesburg,2000

135 Rivonia Road,Sandton, 2196

011 295 8878 9363

PARTICIPATING EMPLOYERS

The list of participating employers is available for inspection at the Fund's registered office.

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SCHEDULE CSTATEMENT OF RESPONSIBILITY BY THE PRINCIPAL OFFICERFOR THE YEAR ENDED 31 MARCH 2020

Save for the reported instances of non-compliance and matter reported in the financial statements, I confirm that for theyear under review the Motor Industry Pension Fund (2005) has timeously submitted all regulatory and other returns,statements, documents and any other information as required in terms of the Pension Funds Act and to the best of myknowledge all applicable legislation.

Radesh ArjunMaharaj Principal Officer

Date

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SCHEDULE EREPORT OF THE BOARD OF FUNDFOR THE YEAR ENDED 31 MARCH 2020

1. DESCRIPTION OF FUND

1.1. Type of fund in terms of the Income Tax Act, 1962

In terms of section 1 of the Income Tax Act, 1962 the Fund is classified as a pension fund. The Fund is a defined benefitfund as regulated by the rules of the Fund.

In terms of regulation 30(2)(t) (ii) of the Regulations to the Pension Funds Act, the umbrella fund is registered as a typeB umbrella fund.

1.2. Benefits

Payments of the retirement benefits, withdrawal benefits and death benefits to members of the fund and/or theirdependants. Retirement benefits are equal to two and one quarter per cent (2,25%) of the members` highest annualremuneration over any three years in the last fifteen years of contributory service. Death benefits are calculated as abenefit equal to twice the annual remuneration at the time of death plus the total contributions, plus any additionalcontributions paid by the member. Refunds are calculated as follows:

1. The member`s total contributions and;2. Any additional contributions and;3. One twenty-fifth of the sum of contributions for each 12 month period that the member contributed.

1.2.1. Unclaimed benefits

Active tracing of members in respect of identified unclaimed benefits is in progress. This is done with assistance of theMotor Industry Bargaining Council, participating employers and labour unions.

In respect of unclaimed benefits records as prescribed, are maintained as from 1 October 1997.

1.2.2. Beneficiary benefits

It is specifically provided that the Board of Fund may agree to transfer to the Motor Industry Beneficiary Fund the capitalvalue of the balance of any death benefit which, in accordance with the provisions of Section 37C of the Pension FundsAct, is being paid to a beneficiary in installments.

On transfer of such amount to the Motor Industry Beneficiary Fund, the Fund shall have no further liability with regard tothe payment of such benefit, such liability having been transferred to the Motor Industry Beneficiary Fund.

1.3. Contributions

1.3.1. As at 31 March 2006 this fund was closed for contributing membership. No contributions are accordingly receivable.

1.4. Rule Amendments

All rule amendments are available for inspection at the fund’s registered office.

1.5. Reserves and specified accounts established in terms of the rules of the Fund

No reserve and specified accounts were used during the period.

2. INVESTMENTS

2.1. Investment strategy

The Board of Fund have formulated an investment strategy that complies with the provisions of Regulation 28 of thePension Funds Act. Application to extend the period of compliance with Regulation37, 38 and 39 was submitted to theAuthority. Exemption was not yet granted by the Authority.

In terms of this strategy the investments are managed according to the following principals:

2.1.1. General

The entire portfolio is managed externally using a diversified group of investment administrators. Benefits andexpenses are paid from income from investments and disinvestment from the Investec Money Market portfolio.

2.1.2. Individual member choice

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SCHEDULE EREPORT OF THE BOARD OF FUND (continued)FOR THE YEAR ENDED 31 MARCH 2020

Members do not have investment choice as this is not provided for in the rules of the Fund.

2.1.3. Unclaimed benefits

Records are kept of unclaimed benefits and funds are held in the Fund's bank account as well as invested inconservative investments.

2.1.4. Surplus apportionment allocations

Surplus due to former members was transferred to the unclaimed benefits account.

2.1.5. Derivative Instruments

The Board of Fund utilises derivative instruments as part of their investment strategy. The Board of Fund ensures thatthe following have been complied with:• The exposure of the asset class does not exceed the maximum percentages as prescribed to the underlying asset

as set out in Regulation 28.• The investment mandate is in place and reviewed by the Board of Fund on a regular basis to ensure compliance

with the requirements as prescribed by Regulation 28 and the relevant Notice.• The investments are monitored for compliance with the provisions of regulation 28 and adherence to the

investment mandate.

2.1.6. Hedge funds

The Board of Fund does not utilise hedge funds as part of their investment strategy.

2.1.7. Securities Lending Transactions

The Board of Fund utilises securities lending transactions as part of their investment strategy. The Board of Fundensures that the securities lending transactions are in compliance with the relevant conditions as prescribed by Noticeissued by the Registrar of Pension Funds.

2.1.8. Investments in Quick Leap Investments 482 Proprietary Limited

The Fund has a 61.54% investment in the above mentioned company, which is a Broad-based Black EconomicEmpowerment investment initiated by Sasol Limited in its subsidiary Sasol Oil Limited. The investment has yieldedsignificant returns of the Fund since 2002, as is evident from the dividends paid and the increased valuation of theinvestment.

The Fund has indicated to the Financial Sector Conduct Authority that the Funds do not believe there is non-compliance with Section 19(5D) or 19(5B)(b)(i) of the Act as the Quick Leap Investments 482 Proprietary Limitedtransaction was initiated in May 2002 (Sizanani Trust) and the special purpose vehicle required by Sasol (Quick LeapInvestments 482 Proprietary Limited in respect of the Funds) was established in 2006. Section 19(5D) of the Act wasonly introduced by amendment to the Act in the Financial Services Laws General amendment Act, 45 of 2013 andgazetted 16 January 2014. The section is not retrospective in operation and therefore cannot impose conditions ontransactions which were concluded prior to the amendment.

The Board of Fund has resolved to re-consider this investment and to this end have requested their investmentconsultants to evaluate it. The investment consultants are currently conducting its due diligence on the investment anda decision will be taken once their report is received and considered.

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2.2. Management of investments

The entire portfolio consist of managed portfolios which is managed externally using a diversified group of investmentadministrators. The investment administrators have complete discretion as to the composition of their share of theportfolio within the boundaries allowed by their mandate and the Pension Funds Act. The Board of Fund meet atquarterly intervals to discuss investment policy and to monitor the asset allocation and performance of the investmentadministrators against the investment strategy of the Fund.

The Fund has implemented a new Asset Liability Model (ALM) to enhance investment returns for members. The ALMwas designed to take into account new regulations. The Investment Policy Statement was accordingly amended toincorporate the new strategy. The Fund has rebalanced all asset classes with the new strategic asset allocation. Theassets were distributed between current as well as new investment managers.

The fair value of the Fund's investment, administered by the investment administrators at the end of the year was:

31 March 2020R

31 March 2019R

Abax Investments Proprietary Limited 81 179 739 328 367 732Allan Gray South Africa Proprietary Limited 78 020 603 340 868 103Ashburton Fund Managers Proprietary Limited 128 372 672 456 661 491Coronation Fund Managers Limited 61 768 373 119 052 169Edge Capital Proprietary Limited - 240 188 532Futuregrowth Proprietary Limited 385 442 932 1 964 110 303Investec Asset Management Proprietary Limited 1 710 117 957 2 436 555 467Marathon Asset Management LLP - 681 680 612Prudential Portfolio Managers -(SA) Proprietary Limited 78 162 731 257 967 702Sanlam Investment Management(Pty) Ltd 51 834 355 332 196 649Quick Leap Investments 482 Proprietary Limited - 93 828 745Aeon Investment Management Proprietary Limited 50 325 959 -All Seasons Capital Management Limited 390 604 626 -All Weather Capital Proprietary Limited 79 765 694 -Alpha 280 341 226 -Aluwani Capital Partners Proprietary Limited 391 655 992 -Argon Asset Management Proprietary Limited 25 723 345 -Boxwood Property Investment Fund GP Proprietary Limited 9 110 578 -27Four Investment Managers Proprietary Limited 169 749 937 -Fairtree Asset Management Proprietary Limited 19 483 656 -Hosking Partners LLP 282 972 240 -Kagiso Asset Management Proprietary Limited 66 905 338 -Meago Proprietary Limited 37 202 897 -Mergence Investment Managers Proprietary Limited 62 908 738 -Mianzo Asset Management Proprietary Limited 21 912 136 -Morgan Stanley Investment Management Limited 137 316 277 -Mpande Property Fund Manager Proprietary Limited 19 956 694 -MSM Property Fund Proprietary Limited 23 054 545 -Orient Opportunities Fund 138 721 604 -Perpetua Investment Manages Proprietary Limited 24 972 382 -Prowess Investment Managers Proprietary Limited 31 192 735 -Sands Capital Ventures, LLC 108 491 565 -Sentio Capital Management Proprietary Limited 18 999 625 -Sesfikile Capital Proprietary Limited 37 892 491 -South Suez Capital Limited 22 830 636 -Summit PE Investment Managers Proprietary Limited 1 259 977 -Taquanta Asset Managers Proprietary Limited 10 001 047 -Third Way Investment Partners Proprietary Limited 50 549 399 -Thyme Capital Proprietary Limited 16 122 748 -TriAlpha Investment Management Proprietary Limited 460 442 980 -Vunani Fund Managers Proprietary Limited 89 156 108 -Transition 494 823 762 -Quick Leap Investments Management Proprietary Limited 313 645 188 -

Total value of investments managed 6 462 991 487 7 251 477 505

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3. MEMBERSHIP

Deferredpensioners

Pensioners Paid upmembers

Unclaimedbenefits

Number at the beginning of year 8 5 530 259 920 191 186Adjustments - (349) - -Additions - 267 - -

Number at the end of the year 8 5 448 259 920 191 186

Note: The fund contains only deferred pensioners, unclaimed benefits and pensioners.

In prior years dormant members were not disclosed as part of the membership reconciliation, however the liability forthese members form part of the accumulated credits.

It was subsequently noted that dormant members are in fact paid up members abd are accordingly disclosed.

4. ACTUARIAL VALUATION

The annual financial statements summarise the transactions and net assets of the Fund. The annual financialstatements do not take account of liabilities to pay pensions and other benefits in the future. In accordance with therules of the Fund, the actuarial position of the Fund, which does take account of such liabilities, is examined andreported on by the actuary at intervals not exceeding three years. An actuarial valuation was performed as at 31 March2019 and the Valuator reported that the fund was in a sound financial position.

5. HOUSING LOAN FACILITIES

The Fund does not grant housing loans or guarantees to members in terms of Section 19(5) of the Pension Funds Act.

6. INVESTMENTS IN PARTICIPATING EMPLOYERS

During the period under review the fund had investments of R4 519 565 (Prior R15 759 135) in participating employers,limited to listed equity and financial instruments as disclosed in schedule HA. No investments have been made in aparticipating employer in contravention of section 19(4A) of the Pension Funds Act. Refer to note 2.2 in Schedule HA tothe annual financial statements.

7. SIGNIFICANT MATTERS

No significant matters were identified.

8. SUBSEQUENT EVENTS

The actuarial gains/ losses in the Fund are born by the participating employers and therefore the impact of COVID-19virus on the Fund assets may lead to asset and liability shortfalls requiring the participating employers to makeadditional payments to the Fund. Under this scenario, the impact of COVID-19 on the employers’ ability to makeadditional payments may affect the Fund’s ability to meet its benefit obligations to the members.

The Board of Fund will continue to monitor the impact of COVID-19 on the Fund and its members.

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SCHEDULE FSTATEMENT OF NET ASSETS AND FUNDSAS AT 31 MARCH 2020

Note31 March 2020

R31 March 2019

R

ASSETS

Non-current assetsInvestments 2 6 462 991 487 7 251 477 505

Current assets 8 065 091 116 599 778Accounts receivable 3 4 418 730 115 246 442Cash at bank 3 646 361 1 353 336

Total assets 6 471 056 578 7 368 077 283

FUNDS,SURPLUS AND LIABILITIES

Funds and surplus accountAccumulated funds 5 035 701 412 6 048 476 084

Non-current liabilitiesUnclaimed benefits 5 1 428 930 120 1 317 313 222

Current liabilities 6 425 046 2 287 977Benefits payable 4 32 849 360 812Accounts payable 6 6 392 197 1 927 165

Total funds and liabilities 6 471 056 578 7 368 077 283

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SCHEDULE GSTATEMENT OF CHANGES IN NET ASSETS AND FUNDSFOR THE YEAR ENDED 31 MARCH 2020

Current year2020

Previous year2019

Note R R R

Net investment income 7 (564 884 718) (564 884 718) 371 121 904Allocated to unclaimed benefits 5 (112 731 873) (112 731 873) (104 566 713)Other income 8 3 706 058 3 706 058 9 978 575

Less:Administration expenses 9 (5 807 070) (5 807 070) (1 996 574)

Net (loss)/income before transfers and benefits (679 717 603) (679 717 603) 274 537 192

Transfers and benefits (333 057 069) (333 057 069) (277 679 297)Transfer to other funds - - (293 463)Benefits 4 (333 057 069) (333 057 069) (277 385 834)

Net loss after transfers and benefits (1 012 774 672) (1 012 774 672) (3 142 105)

Funds and reservesBalance at the beginning of the year 6 048 476 084 6 048 476 084 6 051 618 189

Balance at the end of the year 5 035 701 412 5 035 701 412 6 048 476 084

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SCHEDULE HANOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020

1. PRINCIPAL ACCOUNTING POLICIES

The following are the principal accounting policies used by the Fund. These policies have been applied consistently to allyears presented, unless otherwise specifically stated.

1.1. PURPOSE AND BASIS OF PREPARATION OF ANNUAL FINANCIAL STATEMENTS

The annual financial statements are prepared in accordance with the Regulatory Reporting Requirements for RetirementFunds in South Africa, the rules of the Fund and the provisions of the Pension Funds Act.

The annual financial statements are prepared on the historical cost and going concern basis, except where specificallyindicated otherwise in the accounting policies below:

1.2. FINANCIAL INSTRUMENTS

Measurement

A financial instrument is any contract that gives rise to both a financial asset of one entity and a financial liability or equityinstrument of any other entity. A financial asset or a financial liability is recognised when its contractual arrangementsbecome binding and is derecognised when the contractual rights to the cash flows of the instrument expire or when suchrights are transferred in a transaction in which substantially all risks and rewards of ownership of the instrument aretransferred.

Financial instruments carried on the statement of net assets and funds, include cash and bank balances, investments,housing loans, receivables and accounts payable.

Financial instruments are recognised on acquisition using trade date accounting, which includes transaction costs. Uponinitial recognition financial instruments are designated at fair value through the statement of changes in net assets andfunds as the assets or liabilities are managed, evaluated and reported internally on a fair value basis and/or the designationeliminates or significantly reduces an accounting mismatch which would otherwise arise.

Subsequent to initial recognition, these instruments are measured as set out below.

1.2.1. Investments

Investments are classified at fair value through the statement of changes in net assets and funds and are measured at fairvalue.

Debentures

Debentures comprise investments in listed and unlisted debentures.

Listed debentures

The fair value of listed debentures traded on active liquid markets is based on regulated exchange quoted ruling closingprices at the close of business on the last trading day on or before the statements of net assets and funds date.

Unlisted debentures

Unlisted debentures are financial assets with fixed or determinable payments and fixed maturity. Fair value is estimatedusing pricing models or by applying appropriate valuation techniques such as discounted cash flow analysis or recent arm’slength market transactions in respect of the unlisted debenture.

Bills and bonds

Bills and bonds comprise investments in government or provincial administration, local authorities, participating employers,subsidiaries or holding companies and corporate bonds.

Listed bills and bonds

The fair value of listed bills and bonds traded on active liquid markets is based on regulated exchange quoted ruling closingprices at the close of business on the last trading day on or before the statements of net assets and funds date.

Unlisted bills and bonds

A market yield is determined by using appropriate yields of existing bonds and bills that best fit the profile of the instrumentbeing measured and based on the term to maturity of the instrument. Adjusting for credit risk, where appropriate, adiscounted cash flow model is then applied, using the determined yield, in order to calculate the fair value.

- 18 -


SCHEDULE HANOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)FOR THE YEAR ENDED 31 MARCH 2020

1.2.1. Investments (continued)

Equities

Equity instruments consist of equities with primary listing on the Johannesburg Stock Exchange, equities with secondarylisting on the Johannesburg Stock Exchange, foreign listed equities and unlisted equities.

Equity instruments designated as fair value through the statement of changes in net assets and funds by the fund areinitially recognised at fair value on trade date.

Listed equitiesEquity instruments are subsequently measured at fair value and the fair value adjustments are recognised in the statementof changes in net assets and funds. The fair value of equity instruments with standard terms and conditions and traded onactive liquid markets is based on regulated exchange quoted ruling closing prices at the close of business on the lasttrading day on or before the statements of net assets and funds date.

Unlisted equitiesIf a quoted closing price is not available i.e. for unlisted instruments, the fair value is estimated using pricing models, or byapplying appropriate valuation techniques such as discounted cash flow analysis or recent arm’s length market transactionsin respect of equity instruments.

Preference shares

Listed preference sharesThe fair value of listed preference shares traded on active liquid markets is based on regulated exchanged quoted rulingclosing prices at the close of business on the last trading day on or before the statement of net assets and funds date.

Unlisted preference sharesIn respect of unlisted preference shares, the fair value is determined by applying appropriate valuation techniques such asdiscounted cash flow analysis or recent arm’s length market transactions in respect of preference shares.

Insurance policies

Non-linked insurance policiesNon - linked insurance policies with insurers are valued on the basis of the policyholder’s retrospective contribution toassets (i.e. accumulation at the actual investment return achieved on gross premiums.)

Linked or market-related policiesIf the policy is unitised, the value is equal to the market value of the underlying units. Other linked or market-related policiesare valued at the market value of the underlying assets for each policy, in line with the insurer’s valuation practices.

Collective investment schemeInvestments in collective investment schemes are valued at fair value which is the quoted unit values, as derived by thecollective investment scheme manager with reference to the rules of each particular collective investment scheme,multiplied by the number of units.

Investment in participating employersInvestments in participating employer(s) comprise loans, investments in listed and unlisted equities and other investments.

1.2.2. Accounts receivable

Accounts receivable are financial assets measured initially at fair value and subsequently measured at amortised cost usingthe effective interest rate method, less any allowance for impairment.

1.2.3. Cash and cash equivalents

Cash and equivalents comprise cash in hand, deposits held at call with banks, and other short-term highly liquidinvestments with original maturities of three months or less. Cash and cash equivalents are measured at fair value.

1.2.4. Accounts payable

Accounts payable are financial liabilities measured initially at fair value, net of transaction costs that are directly attributableto the liability and subsequently measured at amortised cost using the effective interest rate method.

- 19 -



1.3. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions

Provisions are recognised when the Fund has a present legal or constructive obligation as a result of past events, for whichit is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of theamount of the obligation can be made. Where the effect of discounting to present value is material, provisions are adjustedto reflect the time value of money.

Contingent liabilities

A contingent liability is not recognised in the statement of net assets and funds, but disclosed in the notes to the financialstatements, unless the possibility of an outflow of resources embodying economic benefits is remote.

Contingent assets

A contingent asset is not recognised in the statement of net assets and funds, but disclosed in the notes to the financialstatements when an inflow of economic benefits is probable.

1.4. CONTRIBUTIONS

The Fund is closed for contributions.

1.5. FOREIGN CURRENCIES

Transactions in foreign currencies are accounted for at the ruling rate of exchange on the transaction date. Assets andliabilities in foreign currencies are converted at the ruling rate of exchange on the statements of net assets and funds date.

Gains and losses on conversion are dealt with in the statement of changes in net assets and funds.

Income and expenditure relating to foreign investments are converted to South African currency at appropriate weightedaverage exchange rates, for the period.

1.6. INVESTMENT INCOME

Investment income comprises of dividends, interest and adjustment to fair value.

Dividends

Dividend income is recognised in the statement of changes in net assets and funds when the right to receive payment isestablished – this is the last date to trade for equity securities. For financial assets designated at fair value through thestatement of changes in net assets and funds, the dividend income forms part of the fair value adjustment.

Interest

Interest income in respect of financial assets held at amortised cost is accounted for in the statement of changes in netassets and funds using the effective interest rate method.

Collective investment schemes’ distribution

Distribution from collective investment schemes are recognised when the right to receive payment is established.

Income from policies with insurance companies

Income from investment policies from insurance companies is included in the adjustment to the movement of the financialasset.

Adjustment to fair value

Gains or losses arising from changes in the fair value of financial assets at fair value through the statement of changes innet assets and funds are presented in the statement of changes in net assets and funds in the year in which they arise.

Expenses incurred in managing investments

Expenses in respect of the management of investments are recognised as the service is rendered.

- 20 -



1.7. BENEFITS

Benefits payable and pensions are measured in terms of the rules of the Fund.

Benefit payments are recognised as an expense when they are due and payable in terms of the rules of the Fund. Anybenefits not paid at the end of the reporting year are recognised as a current liability – benefits payable / due.

Benefits paid during the period and benefits paid during the first 5 days of the next period are deemed to relate to thecurrent period due to the period within which benefits are settled after receiving all the documents required to pay thebenefit. Benefits paid during the first 5 days after period-end are classified as benefits payable.

The accounting policy in respect of benefits payable at period-end is a change in accounting policy as a provision forbenefits payable, based on benefit payments during the period, was made in prior periods.

1.8. TRANSFERS TO AND FROM THE FUND

Section 14 and 15B transfers to or from the fund are recognised on the date of approval of the scheme/arrangement oftransfer of business by the Financial Sector Conduct Authority, as contained in the approval certificate from the Authority.

Individual transfers (Section 13A(5) transfers) are recognised on the earlier of receipt of the written notice of transfer(Recognition of Transfer) or receipt of the actual transfer value.

All the above transfers are measured at the values as per the section 14 application or the value of the transfer at effectivedate of transfer adjusted for investment return or late payment interest as guided by the application.

1.9. ADMINISTRATION EXPENSES

Expenses incurred in the administration of retirement funds are recognised in the statement of changes in net assets andfunds in the reporting year to which they relate.

In the event that an expense has not been paid at the end of a reporting year, the liability will be reflected in the accountspayable note. If the expense was paid in advance or an overpayment occurred, the applicable amount will be disclosedunder the accounts receivable note.

1.10. RELATED PARTIES

In considering each possible related-party relationship, attention is directed to the substance of the relationship and notmerely the legal form.

If there have been transactions between related parties, the Fund shall disclose the nature of the related party relationshipas well as the following information for each related party relationship:• the amount of the transactions;• the amount of outstanding balances;• their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in

the settlement;• details of guarantees given or received;• provisions for doubtful debts related to the amount of outstanding balances; and• the expense recognised during the year in respect of bad or doubtful debts due from related parties.

1.11. ACCOUNTING POLICIES, CHANGING IN ACCOUNTING ESTIMATES AND ERRORS

The Fund applies adjustments arising from changes in accounting policies and errors prospectively. The adjustment relatingto a change in the accounting policy or error is therefore recognised in the current and future years affected by the change.

- 21 -



2.

2.1.

INVESTMENTS

Investment summary

Note Local

R

Foreign

R

Total currentyear

R

Total previousyear

R

Fair valuecurrent year

R

Categorised per IAS 39

Cash 1 702 275 100 32 431 949 1 734 707 049 1 326 637 197 1 734 707 049 At fair value through statement ofchanges in net assets and funds

Commodities 2 213 978 - 2 213 978 6 300 945 2 213 978 At fair value through statement ofchanges in net assets and funds

Debt instruments including Islamic debtinstruments

801 996 959 188 298 802 185 257 1 580 543 191 802 185 257 At fair value through statement ofchanges in net assets and funds

Equities (including demutualisation shares) 1 068 251 588 255 028 898 1 323 280 486 1 581 361 957 1 323 280 486 At fair value through statement ofchanges in net assets and funds

Insurance policies 735 753 022 150 660 991 886 414 013 912 044 641 886 414 013 At fair value through statement ofchanges in net assets and funds

Collective investment schemes 91 652 638 1 376 013 875 1 467 666 513 1 820 579 168 1 467 666 513 At fair value through statement ofchanges in net assets and funds

Private equity funds 313 645 189 22 830 636 336 475 825 - 336 475 825 At fair value through statement ofchanges in net assets and funds

Derivative market investments (87 473 713) (6 997 486) (94 471 199) 8 251 271 (94 471 199) At fair value through statement ofchanges in net assets and funds

Investment in participating employer(s) 4 519 565 - 4 519 565 15 759 135 4 519 565 At fair value through statement ofchanges in net assets and funds

Total 4 632 834 326 1 830 157 161 6 462 991 487 7 251 477 505 6 462 991 487

3. ACCOUNTS RECEIVABLE

31 March 2020R

31 March 2019R

Accrued investment income 32 213 646 997Sundry debtors 1 131 278 -South African Revenue Service 2 349 938 2 349 938Investments in transit 260 217 112 249 507Member payments 81 045 -Administration fees 564 039 -

Total 4 418 730 115 246 442

- 22 -



4. BENEFITS

4.1. Benefits - current members

A B C D E A+B+C-D-EAt beginning of

yearBenefits for

current periodReturn allocated Payments Transferred to

unclaimed benefitsAt end of year

R R R R R RMonthly Pensions 360 812 332 470 803 - (332 817 855) - 13 760Lump sums on retirements - Full benefit - 256 914 1 846 (258 760) - -Lump sums before retirement - Death benefits - 106 137 8 (79 926) (25 990) 229 - Withdrawal benefits - 221 321 40 (191 369) (11 132) 18 860

Total 360 812 333 055 175 1 894 (333 347 910) (37 122) 32 849

Benefits for current year (B) 333 055 175Return allocated (C) 1 894

Statement of changes in net assets and funds 333 057 069

5. UNCLAIMED BENEFITS

31 March 2020R

31 March 2019R

Balance at the beginning of the year 1 317 313 222 1 221 900 338Transferred from benefits payable 37 122 -Investment income allocated 112 731 873 104 566 713Less:• Administration expenses - (6 571 199)• Benefits paid (1 152 097) (2 582 630)

Balance at the end of the year 1 428 930 120 1 317 313 222

- 23 -



6. ACCOUNTS PAYABLE

31 March 2020R

31 March 2019R

Provision for audit fees 138 000 -PAYE 680 951 652 148Sundry payables 999 416 999 427Admin expenses 4 217 111 188 231South African Revenue Service - VAT (172 828) 37 824Legal fees 270 457 -Unidentified deposits 340 -Reserve account - 11 650Actuarial Fees payable 258 750 37 885

Total 6 392 197 1 927 165

7. NET INVESTMENT INCOME

31 March 2020R

31 March 2019R

Income from investments 266 221 438 306 932 091• Dividends 75 468 024 142 824 260• Interest 190 753 414 164 107 831Adjustment to fair value (808 596 522) 78 754 104

(542 375 084) 385 686 195Less: Expenses incurred in managing investments (22 509 634) (14 564 291)

Total (564 884 718) 371 121 904

8. OTHER INCOME

31 March 2020R

31 March 2019R

Scrip lending income 3 706 058 3 486 918Unpaid surplus benefit administration fee recovery - 6 491 657

Total 3 706 058 9 978 575

9. ADMINISTRATION EXPENSES

31 March 2020R

31 March 2019R

Actuarial fees 516 812 624 154Administration fees 93 194 82 726Audit fees - Audit services 160 563 85 669MIFA (Pty) Ltd 4 203 732 -Levies 124 151 115 283Other Expenses 619 890 6 780 905Unclaimed benefits - 6 571 199Bank charges 147 249 120 745Legal fees 472 641 54 783Printing and stationery - 34 178Board of Fund expenses 9.1 88 728 879 036Less: Amount allocated to unclaimed benefits - (6 571 199)

Total 5 807 070 1 996 574

- 24 -



9.1. Board of Fund expenses31 March 2020

R31 March 2019

RMeeting allowances 88 728 879 036

Total 88 728 879 036

10. RISK MANAGEMENT POLICIES

Risk management framework

The Board of Fund has overall responsibility for the establishment and oversight of the fund’s risk management policies. (Ifapplicable)[The Board of Fund has established the Risk Management Committee, which is responsible for developing andmonitoring the fund’s risk management policies. The committee reports regularly to the Board of Fund on its activities.]

The fund’s risk management policies are established to identify and analyse the risks faced by the fund, to set appropriate risklimits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularlyto reflect changes in market conditions and the fund’s activities.

• Solvency risk

Solvency risk is the risk that the investment returns on assets will not be sufficient to meet the funds contractualobligations to members.

Continuous monitoring by the Board and the fund’s actuary takes place to ensure that appropriate assets are heldwhere the funds obligation to members are dependent upon the performance of specific portfolio assets and that asuitable match of assets exists for all other liabilities.

• Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation, and cause theFund to incur a financial loss.

The Board of Fund monitors receivable balances on an ongoing basis with the result that the Fund’s exposure to baddebts is not significant. An appropriate level of provision is maintained.

The Fund's assets are only invested through investment managers who are Financial Advisory and IntermediaryServices compliant. The Fund's investment mandate stipulates that the investment manager should monitor the risksassociated with the Fund's investments on a regular basis.

Credit risk is managed by the Fund's outsourced investment managers by investing in well-researched institutions andwithin the parameters of the investment mandate. The investment manager must report annually on the steps taken toidentify and manage the credit risk, in terms of the Fund's Risk management policy.

• Legal risk

Legal risk is the risk that the fund will be exposed to contractual obligations which have not been provided for. Legalrepresentatives of the fund monitor the drafting of contracts to ensure that rights and obligations of all parties areclearly set out.

• Cash flow risk

Cash flow risk is the risk that future cash flows associated with monetary financial instrument will fluctuate in amount.In the case of a floating rate debt instrument, for example, such fluctuations result in a change in the effective interestrate of the financial instrument, usually without a corresponding change in its fair value.The Board of Fund monitors cash flows by using monthly cash flow projections.

- 25 -



10. RISK MANAGEMENT POLICIES (continued)

• Currency risk

Currency risk is the risk that the value of an instrument will fluctuate in Rands owing to changes in foreign exchangerates. The Fund’s exposure to currency risk is mainly in respect of foreign investments made on behalf of members ofthe Fund for the purpose of seeking desirable international diversification of investments. The Board of Fund monitorsthis aspect of the fund’s investments and limits it to 25% of total assets.

The Board of Fund monitors this aspect of the Fund's investments and limits it to South African Reserve Bank limits oftotal assets.

The foreign currency exposure of the Fund is monitored each quarter with the submission of the quarterly assetallocation reports to the South African Reserve Bank. Investment managers invest the Fund's assets according to theinvestment mandate that stipulates the foreign exposure strategy of the Fund.

• Liquidity risk

Liquidity risk is the risk that the fund will encounter difficulty in raising funds to meet commitments associated withfinancial instruments.The fund’s liabilities are backed by appropriate assets and it has significant liquid resources.

• Market risk

Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices ofmarket interest rates.

• Investments

Investments in equities are valued at fair value and therefore susceptible to market fluctuations. Investments aremanaged with the aim of maximising the fund’s returns while limiting risk to acceptable levels within the framework ofstatutory requirements.

Continuous monitoring takes place to ensure that appropriate assets are held where the liabilities are dependent uponthe performance of specific portfolios of assets and that a suitable match of assets exists for all non–market relatedliabilities.

11. RELATED PARTY TRANSACTIONS

Quick Leap Investments 482 Proprietary Limited is a related party; 2 Trustees of the Fund were appointed as directors onQuick Leap Investments 482 Proprietary Limited.- The fund holds investments in the participating employer to the value of R4 519 565.

- 26 -

- 27 -

SCHEDULE HB

Motor Industry Pension Fund (2005)

Registration number: 12/8/16669

Report of the Valuator

For the period ended 31 March 2020

Effective date of statutory actuarial valuation: 31 March 2019.

1. As at the valuation date, the net actuarial value of assets amounted to R6 048 million.

2. For valuation purposes, the Fund’s net assets were accounted for at their full Market Value.

3. Total liabilities and reserves amounted to R6 048 million, comprised of:

i. Pensioners and deferred pensioners : R2 481 million

ii. Members transferring to the Auto Workers Provident Fund : R1 981 million

iii. Data Reserve : R47 million

iv. Solvency Reserve : R349 million

v. Future Increase and Bonus Reserve : R1 190 million

4. The value of the Fund’s assets was equal to its liabilities and reserves as at 31 March 2019.

5. The methodology and assumptions used in the statutory valuation and the previous

statutory valuation as at 31 March 2016, are set out below:

Gross tax assumption Best estimate basis

31 March 2016

Best estimate basis

31 March 2019

Gross discount rate 9.40% p.a. 9.80% p.a.

Inflation 7.44% p.a. 5.60% p.a.

Net post-retirement discount rate 3.25% p.a. 5.09% p.a.

Spouse’s age difference Males 4 years older than females Males 4 years older than females

Post-retirement mortality:

Autoworkers pensioners 105% of a(55) plus 4% (global)

plus improvements of 0.5% p.a.

105% of a(55) plus 4% (global)

plus improvements of 0.5% p.a.

Post-retirement mortality:

Motor Industry and MISA

pensioners

105% of PA(90) plus

improvements of 0.5% p.a.

105% of PA(90) plus

improvements of 0.5% p.a.

6. The liabilities in respect of pensioners and deferred pensioners were calculated as the

present value of expected payments in respect of those pensioners and deferred

pensioners, including an allowance for future pension increases.

7. For pensioners who had been suspended for less than 2 years, their full liability was held.

For those suspended for more than 2 years, no liability was held.

8. The Data Reserve was set as 2% of pensioner and deferred pensioner liabilities.

- 28 -

9. A discontinuance matching strategy was used in reviewing the appropriate level of the

Solvency Reserve.

10. The statutory actuarial valuation reflected no excess assets as at 31 March 2019,

representing a funding level of 100.0%.

11. As at 31 March 2019 the Fund was in a sound financial condition, in that the assets of the

Fund were sufficient to cover the liabilities in full as well as the recommended contingency

reserves.

Prepared by:

Garth Barnard

VALUATOR

Fellow of the Actuarial Society of South Africa*

Fellow of the Faculty of Actuaries

In my capacity as the valuator of the Fund and

as an employee of Moruba Consultants and Actuaries (Pty) Ltd.

*Primary Regulator

Date: 1 June 2020


SCHEDULE IA - SCHEDULES PERTAINING TO THE ANNUAL FINANCIAL STATEMENTSAT 31 MARCH 2020

INVESTMENTSNotes Direct

InvestmentsNon-compliant

CollectiveinvestmentschemesNote M1

Non-compliantInsurance

policesNote M2

Derivativepositionswithout

residual riskNote G1

Total Local Foreign ForeignAfrica

Total Foreign Totalpercentage of

foreignexposure

Reconcilingitems between

Schedule IB andSchedule F

TOTAL as perRegulation 28(Schedule IB)

R R R R R R R R R % R RCash (including cash at bank) A 1 738 353 409 29 000 355 (371 418 036) - 1 395 935 728 1 407 425 137 (12 195 265) 705 856 (11 489 409) (0.82) (94 471 198) 1 301 464 530Commodities B 2 213 977 - 538 048 - 2 752 025 2 752 025 - - - - - 2 752 025Debt instruments including Islamicdebt Instruments

C 802 185 258 50 555 253 926 435 121 - 1 779 175 632 1 703 410 806 33 431 620 42 333 206 75 764 826 4.26 - 1 779 175 632

Investment and owner occupiedproperties

D 257 066 237 199 257 386 4 116 418 - 460 440 041 283 829 516 176 610 525 - 176 610 525 38.36 - 460 440 041

Equities E 1 066 214 250 1 137 326 642 188 020 858 - 2 391 561 750 1 007 112 184 1 136 667 496 247 782 070 1 384 449 566 57.89 138 721 604 2 530 283 354Derivative Market instruments G - - - (94 471 198) (94 471 198) (87 473 712) (6 997 486) - (6 997 486) 7.41 94 471 198 -Investments in participatingemployers

H 4 519 565 - - - 4 519 565 4 519 565 - - - - - 4 519 565

Private Equity Funds K 336 475 825 51 526 876 - - 388 002 701 314 905 166 50 266 899 22 830 636 73 097 535 18.84 - 388 002 701Insurance policiesLinked policies - - 138 721 604 - 138 721 604 - 138 721 604 - 138 721 604 100.00 (138 721 604) -

Total investments 4 207 028 521 1 467 666 512 886 414 013 (94 471 198) 6 466 637 848 4 636 480 687 1 516 505 393 313 651 768 1 830 157 161 28.30 - 6 466 637 848

- 43 -


SCHEDULE IA - SCHEDULES PERTAINING TO THE ANNUAL FINANCIAL STATEMENTS (continued)AT 31 MARCH 2020

A CASH

Instrument

LocalFair Value

RLocal notes, deposits, money market instruments issued by a South African Bank, margin accounts,settlement accounts with an exchange and Islamic liquidity management financial instruments 1 738 353 347Notes and coins, any balance or deposit in an account held with a South African bank - exceeding 5% oftotal assets

1 730 939 831

Investec Bank Limited 1 730 939 831A money market instrument issued by a South African bank including an Islamic liquidity managementfinancial instrument - exceeding 5% of total assets

6 573 787

No issuers/entities which exceeds 5% of total assets 6 573 787Any positive net balance in a margin account with an exchange - exceeding 5% of total assets 839 729No issuers/entities which exceeds 5% of total assets 839 729

ForeignForeign balances or deposits, money market instruments issued by a foreign bank including Islamicliquidity management financial instruments

62

Any balance or deposit held with a foreign bank - exceeding 5% of total assets 62No issuers/entities which exceeds 5% of total assets 62

Total 1 738 353 409

B COMMODITIES

Instrument Holding number Holding%

Fair valueR

Other Holding%

Platinum - 0.03 2 098 794Palladium - - 115 183

2 213 9772 213 977

Total 2 213 977

- 44 -



C DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS

Instrument Local or foreign Secured/ Unsecured Issued/Guaranteed

Redemptionvalue

R

Fair value

RGovernment debt:Debt instruments issued by an loans to the government of the Republic and anydebt or loan guaranteed by the RepublicRepublic of South Africa Local Secured Guaranteed 623 997 942Total 623 997 942

Debt instruments issued or guaranteed by the government of a foreign country:No issuers/entities which exceeds 5% of total assets 182 938Total 182 938Bank debt :Debt instruments issued or guaranteed by a South African Bank against its balance sheet:-Listed on an exchange with an issuer market capitalisation of R20 billion ormore, or an amount or conditions as prescribedNo issuers/entities which exceeds 5% of total assets 20 457 263Total 20 457 263Listed on an exchange with an issuer market capitalisation of between R2 billionand R20 billion, or an amount or conditions as prescribedNo issuers/entities which exceeds 5% of total assets 62 210Total 62 210Not listed on an exchangeNo issuers/entities which exceeds 5% of total assets 1 356 572Total 1 356 572

Public debt:Debt instruments issued or guaranteed by a public entity under the PublicFinance Management Act, 1999 (Act No. 1 of 1999) as prescribed:-Development Bank of South Africa Local Secured Issued 2 090 636ESKOM Local Secured Issued 5 596 093Industrial Development Corporation of South Africa Local Secured Issued 903 311Land and Agricultural Development Bank of South Africa Local Secured Issued 590 805The South African National Roads Agency Limited Local Secured Issued 1 288 692Rand Water Local Secured Issued 94 700Umgeni Water Local Secured Issued 509 158Total 11 073 395

Corporate debt (excluding debentures):Debt instruments issued or guaranteed by an entity that has equity listed on anexchangeListed on an exchange

- 45 -



C DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTSCorporate debt (excluding debentures) (continued)

No issuers/entities which exceeds 5% of total assets 8 013 342Total 8 013 342Not listed on an exchangeNo issuers/entities which exceeds 5% of total assets 11 319 579Total 11 319 579

OtherListed on an exchange:No issuers/entities which exceeds 5% of total assets 37 591 311Total 37 591 311Not listed on an exchange

88 130 706Total 88 130 706Total debt instruments including Islamic debt instruments

802 185 258

- 46 -



D INVESTMENT AND OWNER OCCUPIED PROPERTIES

Instrument

Shares and linked units in property companies, or units in a collectiveinvestment scheme in property, listed on an exchange:

Local/ Foreign Issued shares Holding number Ordinary/Preference

shares

Holding%

Fair valueR

Issuer market capitalisation of R10 billion or more, or an amount orconditions as prescribedNo issuers/entities which exceeds 5% of total assets - - 174 874 625Total of issuers exceeding 5% 174 874 625

Issuer market capitalisation of between R3 billion and R10 billion, oran amount or conditions as prescribed

- - 66 074 824Total of issuers exceeding 5% 66 074 824

Issuer market capitalisation of less than R3 billion, or an amount orconditions as prescribed

- - 8 847 381Total of issuers exceeding 5% 8 847 381

Total 249 796 830

No issuers/entities which exceeds 5% of total assets - - 7 269 407Total 7 269 407

Total 257 066 237

- 47 -



E EQUITIES

Instrument Local/ Foreign Issued shares Ordinary/Preference

shares

Holding number Holdingin issuer/

entity%

Fair valueR

Listed equities

Issuer market capitalisation of R20 billion or more, or an amount orconditions as prescribedNo issuers/entities which exceeds 5% of total assets - - 927 278 074Total 927 278 074

Issuer market capitalisation of between R2 billion and R20 billion, oran amount or conditions as prescribedNo issuers/entities which exceeds 5% of total assets - - 104 573 362Total 104 573 362

Issuer market capitalisation of less than R2 billion, or an amount orconditions as prescribedNo issuers/entities which exceeds 5% of total assets - - 34 362 814Total 34 362 814

Total equities 1 066 214 250

- 48 -



G DIRECT DERIVATIVE MARKET INSTRUMENTS

G1 DERIVATIVE POSITIONS WITHOUT RESIDUAL RISK

Instrument Fair value

ROptions

USD/ZAR Collar (6 997 486)

Futures/Forwards/SAFEX

SWIX40TR Forward (3 170 387)FINDI30TR Forward (8 303 572)SWIX40TR Forward (37 575 479)I2046TRS (38 424 274)

Total (94 471 198)

H INVESTMENTS IN PARTICIPATING EMPLOYER/S

Instrument Listed or notlisted

Issued/Guaranteed

Fair value

R

Instrument Listed or notlisted

Fair valueR

EquitiesBarloworld Limited 2 054 194Super Group Limited Listed 1 854 304Imperial Holdings Limited Listed 611 067Total 4 519 565

Total for investments in participating employers 4 519 565

- 49 -



K PRIVATE EQUITY FUNDS

Instrument Structure

Private Equity FundQuick Leap Investment 482 (Pty) Ltd. Funds of Private Equity FundSouth Suez Africa Fund III Limited

Total Private Equity Funds commitment

- 50 -



M REGULATION 28 NON-COMPLIANT INVESTMENTS

M1 NON-COMPLIANT COLLECTIVE INVESTMENT SCHEMESInstrument

Local

Holding%

Fair valueR

Boxwood Property Investment Fund: M000030 0.14 9 110 577MSM Property Fund: 67342 0.36 23 054 545Summit Private Equity Fund 0.02 1 259 977Third Way Investment Partners Fund I Partnership 0.78 50 549 399

83 974 498

Foreign27Four Life- Catalyst Feeder: 274LIFE00349 2.63 169 749 937All Seasons Africa Fund Ltd 3.26 210 735 857All Seasons Emerging Market Fund 2.00 129 601 871All Seasons Venture Partners L.P. 0.78 50 266 899All Weather Capital Global Emerging Markets Fund Class C1 0.47 30 535 709Coronation GEM 0.96 61 768 373Hosking Global Sub-Fund No. 1 - A1 Shares 4.38 282 972 240Ninety One Africa Fund - MPNAFR 0.58 37 828 498Ninety One Africa Transition - AFRICATR6 0.10 6 395 967Ninety One Global Equity 2.44 158 028 821Morgan Stanley INVF - Global Brands Fund - Z 2.12 137 316 277Sands Capital Global Growth Fund 1.68 108 491 565

1 383 692 014

Total Non-compliant collective investment schemes 1 467 666 512

The non-compliant collective investment schemes and insurance policies respectively could not be verified on a stand alonebasis confirming compliance with limits as set out in Regulation 28. The Fund`s investment in totality were confirmed to becomplaint with Regulation 28.

M2 NON- COMPLIANT INSURANCE POLICIES

ForeignOrient Opportunities Feeder Fund 3.45 223 024 928

223 024 928Total linked policies 223 024 928

Instrument

Non-linked policiesLocal

Holding%

Fair valueR

Alpha Transport Equity 11 0.94 60 506 694Alpha Transport Equity 8 1.76 114 127 744Alpha Transport ILB 8 1.63 105 706 788Futuregrowth Core Inflation Linked Bond Fund - FGCILF 3.20 206 905 392Futuregrowth Yield Enhanced Bond Fund - FGYEBF 2.72 176 142 467

663 389 085Total non-linked policies 663 389 085

Total certified Regulation 28 non-compliant investments 2 354 080 525

- 51 -



O ENTITY / COUNTERPARTY EXPOSURE

Credit / Counterparty riskCounterparty Direct investment

in counterparty

R

Open financialinstruments markto market value

R

Total percounterparty

R

Exposure tocounterparty

as a % of the fair value of the

Banks 1 890 306 364 - 1 890 306 364 29.23%Nedbank Limited 3 646 361 - 3 646 361 0.06%Investec Bank Limited 1 410 313 461 - 1 410 313 461 21.81%FirstRand Bank Limited 476 346 542 - 476 346 542 7.37%

- 52 -



Asset managers - local - 2 495 770 920 2 495 770 920 38.59%Abax Equity - 10018 - 80 680 003 80 680 003 1.25%Aeon Equity Segregated Portfolio: AIMMIPE - 48 669 374 48 669 374 0.75%Allan Gray Equity - 77 083 911 77 083 911 1.19%Allweather Equity Segregated Portfolio: AWCMIPE - 49 229 985 49 229 985 0.76%Alpha Transport Equity 11 - 76 380 945 76 380 945 1.18%Alpha Transport Equity 8 - 144 132 544 144 132 544 2.23%Alpha Transport ILB 8 - 144 131 062 144 131 062 2.23%Aluwani Equity Segregated Portfolio: 120831 - 23 379 606 23 379 606 0.36%Aluwani ILB Segregated Portfolio:120857 - 368 276 387 368 276 387 5.70%Argon Equity Segregated Portfolio: 85178 - 25 483 221 25 483 221 0.39%Ashburton Property Fund - 128 372 672 128 372 672 1.99%Boxwood Property Investment Fund: M000030 - 9 110 578 9 110 578 0.14%Fairtree Equity Segregated Portfolio: FCMIPE - 19 421 677 19 421 677 0.30%Futuregrowth Active ILB - MIPEIL - 2 395 073 2 395 073 0.04%Futuregrowth Core Inflation Linked Bond Fund - FGCILF - 206 905 392 206 905 392 3.20%Futuregrowth Yield Enhanced Bond Fund - FGYEBF - 176 142 467 176 142 467 2.72%Ninety One Equity - 65 988 624 65 988 624 1.02%Ninety One Money Market - 30 909 842 30 909 842 0.48%Kagiso Equity Segregated Portfolio: 30141 - 66 905 338 66 905 338 1.03%Meago Segregated Porfolio: MAMOTPEN - 37 202 897 37 202 897 0.58%Mergence Equity Segregated Portfolio: 50064 - 62 908 738 62 908 738 0.97%Mianzo Equity Segregated Portfolio: MZAMZPE - 21 844 897 21 844 897 0.34%Mpande Property Fund - 19 956 694 19 956 694 0.31%MSM Property Fund: 67342 - 23 054 545 23 054 545 0.36%Perpetua Equity Segregated Portfolio: 97160 - 24 972 382 24 972 382 0.39%ProwessInvestment Managers - 31 192 735 31 192 735 0.48%Prudential Equity - 50001 - 78 162 731 78 162 731 1.21%Sanlam Bond Fund - MOTPEN - 51 834 355 51 834 355 0.80%Sentio Equity Segregated Portfolio: 98234 - 18 999 625 18 999 625 0.29%Sesfikile Capital: 67599 - 37 892 491 37 892 491 0.59%Summit Private Equity Fund - 1 259 977 1 259 977 0.02%Taquanta: CMIPN1 - 10 001 047 10 001 047 0.15%Third Way Investment Partners Fund I Partnership - 50 549 399 50 549 399 0.78%Thyme Equity Segregated Portfolio: TCMIPF - 15 961 132 15 961 132 0.25%Transition Account - Scrip - 18 998 319 18 998 319 0.29%TriAlphaEnhanced Cash Fund - 158 466 996 158 466 996 2.45%Vunani Bonds Segregated Portfolio: 69659 - 50 967 712 50 967 712 0.79%Vunani Bonds Segregated Portfolio: 69659 - 37 945 547 37 945 547 0.59%

- 53 -



Asset managers - foreign - 1 847 220 237 1 847 220 237 28.57%27Four Life- Catalyst Feeder: 274LIFE00349 - 169 749 937 169 749 937 2.63%All Seasons Africa Fund Ltd - 210 735 857 210 735 857 3.26%All Seasons Emerging Market Fund - 129 601 871 129 601 871 2.00%All Seasons Venture Partners L.P. - 50 266 899 50 266 899 0.78%All Weather Capital Global Emerging Markets Fund Class C1 - 30 535 709 30 535 709 0.47%Coronation GEM - 61 768 373 61 768 373 0.96%Hosking Global Sub-Fund No. 1 - A1 Shares - 282 972 240 282 972 240 4.38%Ninety One Africa Fund - MPNAFR - 37 828 498 37 828 498 0.58%Ninety One Africa Transition - AFRICATR6 - 6 395 967 6 395 967 0.10%Ninety One Global Equity - 158 028 821 158 028 821 2.44%Morgan Stanley INVF - Global Brands Fund - Z - 137 316 277 137 316 277 2.12%Orient Opportunities Feeder Fund - 138 721 604 138 721 604 2.15%Sands Capital Global Growth Fund - 108 491 565 108 491 565 1.68%South Suez Africa Fund III LP - 22 830 636 22 830 636 0.35%TriAlpha EM Alpha Bond Fund I - 301 975 983 301 975 983 4.67%

Participating employers - 4 519 565 4 519 565 0.07%Super Group Limited - 1 854 304 1 854 304 0.03%Barloworld Limited - 2 054 194 2 054 194 0.03%Imperial Holdings Limited - 611 067 611 067 0.01%

Other funds 332 196 650 (94 471 198) 237 725 452 3.68%Khumo Capital - Overlays - (94 471 198) (94 471 198) (1.46)%Quick Leap Investment 482 (Pty) Ltd. 332 196 650 - 332 196 650 5.14%

2 222 503 014 4 253 039 524 6 475 542 538 %100.14

- 54 -



Market risk

EQUITY HOLDINGS

Investment

Fair value at end ofyear

R

Total fair valueequity holdings andopen instruments

R

Market movement by5%

RNaspers Limited 216 513 751 216 513 751 10 825 688British American Tobacco plc 58 126 574 58 126 574 2 906 329Standard Bank Group Limited 39 725 237 39 725 237 1 986 262Prosus NV 37 459 247 37 459 247 1 872 962Anglo American plc 36 349 872 36 349 872 1 817 494AngloGold Ashanti Limited 26 456 613 26 456 613 1 322 831FirstRand Bank Limited 23 798 806 23 798 806 1 189 940MTN Group Limited 23 173 707 23 173 707 1 158 685BHP Group PLC 21 288 387 21 288 387 1 064 419Remgro Limited 21 095 553 21 095 553 1 054 778

Total value of 10 largest equity holdings 503 987 747 503 987 747 25 199 388Total movement as % of non-current assets plus bank %0.39

OTHER FINANCIAL INSTRUMENTS

Instrument


R

Market movement by5%R

I2046 Republic of South Africa 200 961 974 10 048 099R202 Republic of South Africa 198 688 312 9 934 416I2050 Republic of South Africa 136 865 001 6 843 250I2038 Republic of South Africa 109 320 521 5 466 026I2033 Republic of South Africa 63 968 552 3 198 428Growthpoint Properties Limited 58 204 332 2 910 217New Europe Property Investments plc 45 675 548 2 283 777R2037 Republic of South Africa 39 371 772 1 968 589R2048 Republic of South Africa 38 307 149 1 915 357I2025 Republic of South Africa 30 530 244 1 526 512

Total value of 10 largest other instruments 921 893 405 46 094 671Total movement as % of non-current assets plus bank %0.71

- 55 -



Foreign currency exposure

Foreign instruments


R

Market movement by5%R

Amazon.com, Inc. 10 770 652 538 533Microsoft Inc 8 659 387 432 969Bank of America Corporation 8 021 065 401 053Samsung Electronics Co., Ltd. 6 761 837 338 092Google Inc. 6 273 951 313 698Costco Wholesale Corporation 6 227 208 311 360Citigroup Inc. 5 892 425 294 621Google Inc. 5 344 719 267 236Alibaba Group Holding Limited 4 763 080 238 154Apple Inc. 4 702 909 235 145

Total value of 10 largest foreign instruments 67 417 233 3 370 861Total movement as % of non-current assets plus bank %0.05

- 56 -



P RECONCILIATION BETWEEN THE INVESTMENTS IN SCHEDULE HA AND SCHEDULE IA

Fair valuecurrent period

(as per ScheduleHA 2.1)

Cash at bank Non-compliantCIS

Non-compliantInsurancePolicies

Other Total

R R R R R RCash 1 734 707 049 3 646 361 29 000 355 (371 418 037) - 1 395 935 728Commodities 2 213 978 - - 538 047 - 2 752 025Debt instruments including Islamic debt instruments 802 185 257 - 50 555 253 926 435 122 - 1 779 175 632Investment properties and Owner occupied properties - - 199 257 386 4 116 419 257 066 236 460 440 041Equities 1 323 280 486 - 1 137 326 642 188 020 858 (257 066 236) 2 391 561 750Investment in participating employer(s) 4 519 565 - - - - 4 519 565Private equity funds 336 475 825 - 51 526 876 - - 388 002 701Derivative market investments (94 471 199) - 1 - - (94 471 198)Collective investment schemes 1 467 666 513 - (1 467 666 513) - - -Insurance policies 886 414 013 - - (747 692 409) - 138 721 604

Total investments 6 462 991 487 3 646 361 - - - 6 466 637 848

- 57 -


SCHEDULE IB - ASSETS HELD IN COMPLIANCE WITH REGULATION 28AS AT 31 MARCH 2020

Fair valueR

A Total assets (Schedule IA -Total investments) 6 466 637 848

B1 Less: Reg 28 compliant investments(certificate received from issuing entity):-

-

B.1.1 Collective Investment Schemes (Reg 28(8)(b)(i)) -B.1.2 Linked Policies (Reg 28(8)(b)(ii)) -B.1.3 Non-Linked policies (Reg 28(8)(b)(iii)) -B.1.4 Entity regulated by FSCA (Reg 28(8)(b)(iv))) -

B2 Less: Reg 28 excluded investmentsB2.1 Insurance Policies ( Reg 28(3)(c)) -

C Less: Investments not disclosed /data not available for disclosure[Refer to schedule IAN]

-

D TOTAL ASSETS FOR REGULATION 28 DISCLOSURE 6 466 637 848

Categories of kinds of assets % Fair valueR

Fair value%

1 CASH 1 301 464 530 20.13%

1.1 Notes, deposits, money market instruments issued bya South African Bank, margin accounts, settlementaccounts with an exchange and Islamic liquiditymanagement financial instruments

100%

1 281 055 492 19.81%(a) Notes and coins; any balance or deposit in an account

held with a South African bank; 1 351 810 508 20.90%25% 1 351 810 508 20.90%

(b) A money market instrument issued by a South Africanbank including an Islamic liquidity management financialinstrument 9 357 354 0.14%

25% 9 357 354 0.14%(c) Any positive net balance in a margin account with an

exchange (80 112 370) (1.24)%25% (80 112 370) (1.24)%

(d) Any positive net balance in a settlement account with anexchange, operated for the buying and selling of assets - 0.00%

1.2 Balances or deposits, money market instrumentsissued by a foreign bank including Islamic liquiditymanagement financial instruments

SARBmax.limits 20 409 038 0.32%

(a) Any balance or deposit held with a foreign bank 20 409 038 0.32%5% 20 409 038 0.32%

(b) Any balance or deposit held with an African bank - 0.00%(c) A money market instrument issued by a foreign bank

including an Islamic liquidity management financialinstrument - 0.00%

2 DEBT INSTRUMENTS INCLUDING ISLAMIC DEBTINSTRUMENTS 1 779 175 632 27.51%

2.1 Inside the Republic 100% 1 703 410 805 26.34%(a) Debt instruments issued by, and loans to, the government

of the Republic, and any debt or loan guaranteed by theRepublic 100% 1 041 229 649 16.10%

100% 1 041 229 649 16.10%(b) Debt instruments issued or guaranteed by the government

of a foreign country 75% - 0.00%(c) Debt instruments issued or by a South African bank

against its balance sheet 75% 107 203 621 1.66%c(i) Listed on an exchange with an issue market capitalisation

of R20 billion or more, or an amount or conditions asprescribed 75% 104 509 343 1.62%

25% 104 509 343 1.62%

Carried forward 2 447 203 522 37.84%- 58 -




Fair value%

Brought forward 2 447 203 522 37.84%c(ii) Listed on an exchange with an issuer market capitalisation

of between R2 billion and R20 billion, or an amount orconditions as prescribed 75% 297 784 0.00%

15% 297 784 0.00%c(iii) Listed on an exchange with an issuer market capitalisation

of less than R2 billion, or an amount or conditions asprescribed 75% - 0.00%

c(iv) Not listed on an exchange 25% 2 396 494 0.04%5% 2 396 494 0.04%

(d) Debt instruments issued or guaranteed by an entity thathas equity listed on an exchange, or debt instrumentsissued or guaranteed by a public entity under the PublicFinance Management Act, 1999 (Act No. 1 of 1999) asprescribed 50% 122 863 453 1.90%

d(i) Listed on an exchange 50% 95 140 244 1.47%10% 95 140 244 1.47%

d(ii) Not listed on an exchange 25% 27 723 209 0.43%5% 27 723 209 0.43%

(e) Other debt instruments:- 25% 432 114 082 6.68%e(i) Listed on an exchange 25% 134 646 303 2.08%

5% 134 646 303 2.08%e(ii) Not listed on an exchange 15% 297 467 779 4.60%

5% 297 467 779 4.60%

2.2 Foreign

SARBmax.limits

75 764 827 1.17%(a) Debt instruments issued by, and loans to, the government

of the Republic, and any debt or loan guaranteed by theRepublic

SARBmax.limits

- 0.00%

(b) Debt instruments issued or guaranteed by the governmentof a foreign country

SARBmax.limits

14 808 857 0.23%

10% 14 808 857 0.23%(c) Debt instruments issued or guaranteed by a South African

Bank against its balance sheet:-SARBmax.limits

5 135 0.00%

c(i) Listed on an exchange with an issuer market capitalisationof R20 billion or more, or an amount or conditions asprescribed

SARBmax.limits 5 135 0.00%25% 5 135 0.00%

c(ii) Listed on an exchange with an issuer market capitalisationof between R2 billion and R20 billion, or an amount orconditions as prescribed

SARBmax.limits - 0.00%

c(iii) Listed on an exchange with an issuer market capitalisationof less than R2 billion, or an amount or conditions asprescribed

SARBmax.limits

- 0.00%

c(iv) Not listed on an exchange - 0.00%(d) Debt instruments issued or guaranteed by an entity that

has equity listed on an exchangeSARBmax.limits

15 101 401 0.23%

d(i) Listed on an exchange SARBmax.limits

15 095 547 0.23%

10% 15 095 547 0.23%d(ii) Not listed on an exchange SARB

max.limits

5 854 0.00%

5% 5 854 0.00%(e) Other debt instruments SARB

max.limits

45 849 434 0.71%

e(i) Listed on an exchange SARBmax.limits

14 006 410 0.22%

Carried forward 3 034 790 728 46.92%- 59 -




Fair value%

Brought forward 3 034 790 728 46.92%5% 14 006 410 0.22%

e(ii) Not listed on an exchange SARBmax.limits

31 843 024 0.49%

5% 31 843 024 0.49%

3 EQUITIES 2 530 283 354 39.13%

3.1 Inside the Republic 75% 1 007 112 184 15.57%(a) Preference and ordinary shares in companies, excluding

shares in property companies, listed on an exchange:-75%

995 925 129 15.40%a(i) Issuer market capitalisation of R20 billion or more, or an

amount or conditions as prescribed 75% 855 622 992 13.23%15% 855 622 992 13.23%

a(ii) Issuer market capitalisation of between R2 billion and R20billion, or an amount or conditions as prescribed 75% 105 875 277 1.64%

10% 105 875 277 1.64%a(iii) Issuer market capitalisation of less than R2 billion, or an

amount or conditions as prescribed 75% 34 426 860 0.53%5% 34 426 860 0.53%

(b) Preference and ordinary shares in companies, excludingshares in property companies, not listed on an exchange 10% 11 187 055 0.17%

2.5% 11 187 055 0.17%

3.2 Foreign 1 523 171 170 23.55%

(a) Preference and ordinary shares in companies, excludingshares in property companies, listed on an exchange:-

SARBmax.limits 1 510 441 174 23.36%

a(i) Issuer market capitalisation of R20 billion or more, or anamount or conditions as prescribed

SARBmax.limits

1 510 343 103 23.36%

15% 1 510 343 103 23.36%a(ii) Issuer market capitalisation of between R2 billion and R20

billion, or an amount or conditions as prescribedSARBmax.limits

98 071 0.00%

10% 98 071 0.00%a(iii) Issuer market capitalisation of less than R2 billion, or an

amount or conditions as prescribedSARBmax.limits

- 0.00%

(b) Preference and ordinary shares in companies, excludingshares in property companies, not listed on an exchange

10%12 729 996 0.20%

2.5% 12 729 996 0.20%

4 IMMOVABLE PROPERTY 460 440 041 7.12%

4.1 Inside the Republic 25% 283 829 516 4.39%(a) Preference shares, ordinary shares and linked units

comprising shares linked to debentures in propertycompanies, or units in a Collective Investment Scheme inProperty, listed on an exchange 25% 276 560 109 4.28%

a(i) Issuer market capitalisation of R10 billion or more, or anamount or conditions as prescribed 25% 195 704 369 3.03%

15% 195 704 369 3.03%a(ii) Issuer market capitalisation of between R3 billion and R10

billion, or an amount or conditions as prescribed 25% 71 803 807 1.11%10% 71 803 807 1.11%

a(iii) Issuer market capitalisation of less than R3 billion or anamount or conditions as prescribed 25% 9 051 933 0.14%

5% 9 051 933 0.14%(b) Immovable property, preference and ordinary shares in

property companies, and linked units comprising shareslinked to debentures in property companies, not listed onan exchange 75% 7 269 407 0.11%

5% 7 269 407 0.11%

Carried forward 5 894 753 032 91.15%- 60 -




Fair value%

Brought forward 5 894 753 032 91.15%

4.2 Foreign 25% 176 610 525 2.73%(a) Preference shares, ordinary shares and linked units

comprising shares linked to debentures in propertycompanies, or units in a Collective Investment Scheme inProperty, listed on an exchange 25% 176 610 525 2.73%

a(i) Issuer market capitalisation of R10 billion or more, or anamount or conditions as prescribed 25% 175 988 685 2.72%

15% 175 988 685 2.72%a(ii) Issuer market capitalisation of between R3 billion and R10

billion, or an amount or conditions as prescribed 25% 370 912 0.01%10% 370 912 0.01%

a(iii) Issuer market capitalisation of less than R3 billion or anamount or conditions as prescribed

25%250 928 0.00%

5% 250 928 0.00%(b) Immovable property, preference and ordinary shares in

property companies, and linked units comprising shareslinked to debentures in property companies, not listed onan exchange 15% - 0.00%

5 COMMODITIES 2 752 025 0.04%

5.1 Inside the Republic 10% 2 752 025 0.04%(a) Kruger Rands and other commodities on an exchange,

including exchange traded commodities 10% 2 752 025 0.04%a(i) Gold (including Kruger Rands) 10% - 0.00%a(ii) Other commodities 5% 2 752 025 0.04%

5% 2 752 025 0.04%

5.2 Foreign 10% - 0.00%(a) Gold and other commodities on an exchange, including

exchange traded commodities 10% - 0.00%a(i) Gold 10% - 0.00%a(ii) Other commodities 5% - 0.00%

6 INVESTMENTS IN THE BUSINESS OF APARTICIPATING EMPLOYER INSIDE THE REPUBLIC INTERMS OF:- 4 519 565 0.07%

(a) Section 19(4) of the Pension Funds Act 4 519 565 0.07%5% 4 519 565 0.07%

(b) To the extent it has been allowed by an exemption in termsof section 19(4A) of the Pension Funds Act - 0.00%

7 HOUSING LOANS GRANTED TO MEMBERS INACCORDANCE WITH THE PROVISIONS OF SECTION19(5)

95% - 0.00%

8 HEDGE FUNDS, PRIVATE EQUITY FUNDS AND ANYOTHER ASSET NOT REFERRED TO IN THISSCHEDULE 388 002 701 6.00%

8.1 Inside the Republic 15% 314 905 166 4.87%(a) Hedge fund 10% - 0.00%a(i) Funds of hedge funds 10% - 0.00%a(ii) Hedge funds 10% - 0.00%(b) Private equity funds 10% 314 905 166 4.87%b(i) Funds of private equity funds 10% 1 259 977 0.02%

5% 1 259 977 0.02%b(ii) Private equity funds 10% 313 645 189 4.85%

2.5% 313 645 189 4.85%(c) Other assets not referred to in this schedule and excluding

a hedge fund or private equity fund 2.5% - 0.00%

8.2 Foreign 15% 73 097 535 1.13%

Carried forward 6 393 540 313 98.86%- 61 -




Fair value%

Brought forward 6 393 540 313 98.86%(a) Hedge fund 10% - 0.00%a(i) Funds of hedge funds 10% - 0.00%a(ii) Hedge funds 10% - 0.00%(b) Private equity funds 10% 73 097 535 1.13%b(i) Funds of private equity funds 10% 73 097 535 1.13%

5% 73 097 535 1.13%b(ii) Private equity funds 10.0% - 0.00%(c) Other assets not referred to in this schedule and excluding

a hedge fund or private equity fund 2.5% - 0.00%

TOTAL ASSETS – REGULATION 28 6 466 637 848 100.00%

- 62 -



INVESTMENT SUMMARY (Regulation 28)Local Fair value Foreign

(Excluding Africa)Fair value Africa Fair value Total

R % R % R % R1 Balances or deposits, money market instruments

issued by a bank including Islamic liquiditymanagement financial instruments 1 281 055 492 19.81 20 409 038 0.32 - - 1 301 464 530

2 Debt instruments including Islamic debt instruments 1 703 410 805 26.34 75 764 827 1.17 - - 1 779 175 6323 Equities 1 007 112 184 15.57 1 523 171 170 23.55 - - 2 530 283 3544 Immovable property 283 829 516 4.39 176 610 525 2.73 - - 460 440 0415 Commodities 2 752 025 0.04 - - - - 2 752 0256 Investment in the business of a participating

employer 4 519 565 0.07 - - - - 4 519 5658 Hedge Funds, private equity funds and any other

assets not referred to in this schedule 314 905 166 4.87 73 097 535 1.13 - - 388 002 701

TOTAL 4 597 584 753 71.10 1 869 053 095 28.90 - - 6 466 637 848

- 63 -



BREACHES IN TERMS OF SUB REGULATION 3 OF REGULATION 28

Table 1items

Asset Limits in terms of sub regulation 3(f) Total (Inside &Foreign)

R

Percentage ofFair value

%

Regulation 28limits

2.1(e)(ii) Other debt instruments not listed 297 467 779 4.60 3.1(b) Equities not listed 11 187 055 0.17 4.1(b) Immovable properties not listed 7 269 407 0.11 8 Hedge funds , Private Equity funds and other assets 388 002 701 6.00

TOTAL 703 926 942 10.88 35

Table 1items

Asset Limits in terms of sub regulation 3(g) Fair valueR

Fair value%

Regulation 28limits

3.1(b) Equities not listed 11 187 055 0.17 8.1(b) Private Equity funds 314 905 166 4.87

TOTAL 326 092 221 5.04 15

Table 1items

Asset Limits in terms of sub regulation 3(h) Fair valueR

Fair value%

Regulation 28limits

1.1 Cash and deposits with a South African Bank 1 281 055 492 19.81 2.1(c) Debt instruments guaranteed by a South African Bank -

Item107 203 621 1.66

TOTAL 1 388 259 113 21.47 25

- 64 -

Documents

CONTENTS · Physical address: 275 Kent Avenue Ferndale Randburg 2194 FINANCIAL REPORTING PERIODS Current year: 1 April 2019 to 31 March 2020 Prior year: 1 April 2018 to 31 March 2019