Client Letter February CHANGE OF ADMINISTRATORS We advised holders by katiealibrandi


									                    Client Letter – February 2006


We advised holders of Satrix Investment Plan accounts last year that there would
be a change of administrators in the New Year. This change of administrators will
now take place from the end of April 2006. The current administrators, Absa
Investment Management Services (AIMS) will send out the relevant tax certificates
(IT3(b) and CGT certificates) to all registered investment plan holders as at the
end of the tax year, 28 February 2006.

From 1st May 2006, the Satrix Investment Plan will be administered by Automated
Outsourcing Services Limited (AOSL).

Your current client identification (account) numbers will remain exactly the same
with the new administrators. Debit orders will be collected by AOSL as before –
there is no need to change your debit order instructions.

Statements will continue to be sent out on a quarterly basis as before.
Alternatively you can view your statement on line at (click on the
link to Investment Plan statements). All data on your accounts will be transferred
to AOSL and captured on their systems and it is planned that the change in
administrators will be conducted seamlessly without any impact for existing or
future Satrix investors.

AOSL are specialised administrators of collective investment schemes, offshore mutual
funds, wrap and life portfolios and other investment or business outsource products and
procedures. Pending imminent SARB approval, AOSL will become 100 percent owned by
the Fidentia Group.

Assets under administration by AOSL now total in excess of R35 billion and it handles the
administration for the following companies: Absa Fund Managers, PSG Collective
Investments, M Cubed Unit Trusts, Investec Securities, Indequity, Grant Thornton Capital
and SIS Management Company. In total it administers over 300 collective investment
funds. AOSL prides itself in providing a superior service and is investing in the best of
breed technology.

It is believed that a number of Satrix Investment Plan clients will want to transact and
communicate electronically with the administrators and AOSL are committed to providing
and developing the required technology.

Some unit trusts and other investment product providers are moving away from initial fees
payable for new investments. We will be doing the same for the Satrix Investment Plan.
The initial fee of 0,3% per transaction will fall away from 1st June 2006. The annual
management fee (which is deducted pro-rata from the four quarterly dividend payments
made annually) will rise from 0,8% of the value of the investment held to 1,0% on the same

This letter serves as the 3 month advice to Satrix Investment Plan investors of the change
in the fee structure. The existing fee structure will stay in place until 1st June 2006.

In the 15th February 2006 Budget, it was disclosed that the UST of 0,25% on Exchange
Traded Funds will no longer be payable on transactions. The date from which this change
will become applicable still needs to be announced by the authorities. The fee structures
will then be amended accordingly, with the UST no longer payable on purchases or

                                                          Old Fee Structure               New Fee Structure
                                                          (to 31/05/2006)                 (from 01/06/2006)
 Transaction Costs
 Stockbrokerage (on purchases and sales)                          0,10%                        0,10%
 UST                                                              0,25%                        0,25%
 Debit Orders (per debit order)                                   R2,50                        R3,50
 Initial Fees                                                     0,30%                         None
 Administration Costs
 Annual Fees                                                      0,80%                        1,00%
 Financial Services Provider (if applicable)
 Maximum commission payable                                       4,00%                        3,00%
 Note: commission fees can be negotiated with your FSP if you choose to use an adviser.
              The favourable conditions for financial markets continued in 2005, with economic
              growth accelerating and, aided by a relatively strong rand, inflation rates and
              interest rates moved to the lowest levels in twenty years. Company earnings and
              dividend growth expanded strongly in this environment and the JSE has moved
              steadily to record highs.

              Economic conditions continue to look promising with the economy gaining
              momentum and shifting into a more sustainable growth path.            In such
              circumstances, the local stockmarket could continue to benefit from a relatively
              promising investment environment for some time to come.

                                                            SATRIX HISTORICAL PERFORMANCE
                                                                        (for lump sum investments)
                                                                          (total percentage growth)
                                                                         1 Year                                       2 Year                                        3 Year
              Satrix 40                                                     47,9                                         77,7                                        106,9
              Satrix Fini                                                   31,4                                         84,6                                        124,7
              Satrix Indi                                                   35,2                                         90,3                                        129,2
              Note: includes reinvestment of dividends

              We would like to thank you for your support for the Satrix Investment Plan, which
              since its inception in mid-2002 has grown strongly to more than R500 million
              under management, with new investor interest increasing accordingly. We will be
              listing some new Satrix products, on other FTSE/JSE indices, in the next few
              months and these products will be made available in the Satrix Investment Plan
              in due course. We will advise you when they become available.

              We hope you will continue to support Satrix in the future.

              Mike Brown
              Satrix Managers (Pty) Ltd
              Tel: 011- 520-7355     Fax: 011-520-8355                                                                  Email:

Satrix securities are listed on the JSE Limited and the trading of participatory interests on the Exchange will incur trading and settlement costs. The price at which a participatory interests trades on
    an exchange, may differ from the price at which the manager repurchases participatory interests. As with all stock exchange investments, the market price of Satrix securities will fluctuate
                                                                   according to market conditions, general sentiment and other factors.
   Collective Investment Schemes in Securities (CIS) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not
necessarily a guide to the future. CIS products are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on
                                      request from the company/scheme. Commission and incentives may be paid and if so, would be included in the overall costs.”

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