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in Focus (PDF)


									                                                                                              N EWS
                                                                                                  men   t Profe
                                                                                                                           ls                             03
                                                                                       d   Invest
                                                                              ies an
                                               ia   tion of
                      ation   of the
         rly   public

                                                                                                                                       Mathews Phosa
                                                                                                                                           Speaks on
                                                                                                                                   ECONOMIC POLICY

                                                                                                                                       WBS          Survey

                                                                                                                                       Asset Managers in Focus

                                                                                                                                          in Focus

                                                                                                                                                     st s
                                                                                                                                                   Ju Thi


                                                       Table of Contents:
                                                       1.       Editors Note
                                                       2.       A word from the president
                                                       3.       News in Brief
                                                       4.       Wits Business School Study
                                                       5.       PowerSpeak 2008
                                                                - 1st PowerSpeak 2008
                                                                - 2ND PowerSpeak 2008
                                                       6.       ABSIP Women in Focus
                                                       7.       Profiling: Black Asset Management Companies
                                                       8.       Calendar: Dates to Diarise

         r’s Not e
Edi   to
                                                        We promise to be consistently informative by
                                                        providing you with articles that will not only give
                                                        you a much better insight into the market in which
                                                        we all work, but also enable you to be far better
                                                        informed about particular topics of interest.

                                                        Another feature that has been introduced in this
                                                        newsletter is a focus on successful black-owned
                                                        companies within a specific segment of the market.
                                                        Each forthcoming newsletter will focus on a
                                                        different area of the market. In this edition we
                                                        focus on black owner-managed asset management

                                                        We strive to show the best our industry has by
 Welcome to our new improved newsletter.                highlighting the strides made towards transforming
                                                        the financial services sector and point out those
 This is a fresh start in our commitment to provide     areas where excellence is being achieved.
 you, our members, with better communication,           We welcome any and all responses and feedback
 more relevant input on subjects that are meaningful    you have for us, as it is only through strong
 to you and a wealth of information on what we          interaction with all of you that we can improve
 are doing in the months ahead.                         our service to you.

 The newsletter will be delivered to all our members    Our motto at the ABSIP office is: “Less Talk, More
 quarterly, with the aim of bringing to you news        Action”. 2008 is the year in which we must put
 on what ABSIP has planned for the future, as well      this firmly into practice.
 as feedback on all that has happened in previous
 months.                                                Masedi Molosiwa
       ESID ENT
th e PR
A Wor
     d from

              Dear ABSIPers

              Welcome to the Inaugural ABSIP Quarterly Newsletter and thank you for your continued support and

              We are putting into practice a strategic plan aimed at enhancing ABSIP’s core objective of being a force
              for transformation in the Financial Sector. While we understand that transformation is an ongoing exercise
              and remains a major challenge for all of us, we have made some significant strides in the past few
              months in achieving our objectives.

              Although our objectives are clear, we need regular interaction with - and input from - our members,
              since we are a people-driven organisation, and it is only with your support and ongoing two-way
              communication that we can ensure that we are not only addressing our sector’s needs, but your individual
              needs as members too.

              The input gained from the Membership izimbizo are allowing us to engage with our members around
              key values and structures of ABSIP. The insights relate to the challenges faced by black professionals in
              this industry and the best means for us to deliver tangible value to our members.

              Increasing membership participation (through the izimbizo) will help us to positively contribute to a
              growing economy, which in turn will contribute towards the broader perspectives of poverty alleviation
              and the creation of a better life for all our people.

              At the beginning of this year we outlined some key focus areas for our organisation, and I am happy
              to report that we are making good progress with a number of these.

              For one, our communication with members has improved (as can be witnessed by this newsletter), while
              we have also increased ABSIP’s presence in many of the financial industry sub-sectors. Mentorship
              facilitation is on track, allowing our junior members to learn from their more senior counterparts, and
              we continue to position ourselves as the catalyst for rigorous debate around the issues of policy and
              transformation in our sector.

              We have already hosted two PowerSpeaks this year and have a full and exciting programme of future
              events lined up for you in 2008, including further PowerSpeaks and an event to replace the Annual
              ABSIP Financial Awards, which has been deferred to next year.

              As always, we look forward to your co-operation and participation in all our forthcoming events and
              we appreciate your dedication in helping us to meet the challenges posed by a transforming society.

              Yours sincerely,

              Nomkhita Nqweni
              President ABSIP


NEWS in brief
People on the move
‘People on the Move’ is a new section we are adding to the newsletter, highlighting the growth and
development of ABSIP members’ careers, as these professionals move from success to success. We would
like to invite submissions from members who have either ‘moved up the corporate ladder’ themselves
or know of another member who has done so.

Please send submissions to:

ABSIP Annual Financial Awards
Most members will be aware that we have hosted the ABSIP Financial Awards on an annual basis. It has
been decided to alter this to every second year in order to maintain the dynamism of the concept and
to ensure that, much like the FIFA World Cup that only comes once every four years, our members strive
that much harder to win what will surely be a more worthy award.

For those wondering about what will happen this year, the awards will be replaced with another event,
details of which we will inform our membership of in due course.

New Look for ABSIP website
If you haven’t noticed already, the ABSIP website has cleaned up and will be upgraded regularly. We
would appreciate your feedback and suggestions. We invite you to please visit the homepage and check
your membership details. This will assist in ensuring that our database is always up to date, especially
with respect to those members whose contact details have changed.

The website address is:

Membership Izimbizo
The ABSIP Exco team represented by Masedi Molosiwa has been visiting members. To date, we have
visited the Development Bank of Southern Africa, ABSA and Nedbank. The presentations take
approximately sixty (60) minutes. The platform is used to present to our members and potential members
the ABSIP planned Program of Action for 2008. Furthermore, the interaction has enabled us to solicit
feedback that should guide us and ensure relevance to our members. We will be visiting the rest of our
corporate members in due course. All the secured dates will be posted on the ABSIP website, so please
do visit the website regularly.

Wits Business School

                                                          The first step in the event study is to identify the

Are BEE                                                   event. An event study is appropriate to use when
                                                          the event is "likely to have a financial impact, is
                                                          unanticipated by the market, and provides new
transactions                                              information to the market" (McWilliams & Siegel,
                                                          1997: 16). In a study conducted on mergers, both

good or bad for
                                                          Dodd (1980) and Asquith (1981), in Asquith (1982),
                                                          found that the merger date is not nearly as accurate
                                                          as the announcement date in analysing stock

shareholder                                               market reactions to mergers.

                                                          The second step in an event study is defining the

value?                                                    event date and the period over which the stock
                                                          prices of the companies involved in the event will
                                                          be examined (MacKinlay, 1997; McWilliams &
                                                          Siegel, 1997 and Wells, 2004). The event date
While the mainstream view of black economic               identifies that date on which the event actually
empowerment (BEE) transactions is that these add          takes place, while the event window will be based
value to shareholders, it is, in fact, the reverse that   on the number of one or more days before and/or
is true, according to an analysis conducted by            after the event has taken place. Although the
Professor Mthuli Ncube, from Wits Business School.        events may have taken place within the various
                                                          firms at different dates and times, the event date
The study was conducted in order to analyse               and window are standardised, so that they are
whether the Financial Services Charter should be          comparable. For example, the day of the event
aligned with the Codes of Good Practice, as stated        would be defined as t0, while two days before the
by the Department of Trade and Industry, in respect       event is t-2, and a day after the event would be
of ownership provisions.                                  defined as t+1. The event window is the period
                                                          over which the event is measured.
Since aligning the charter with the Codes has the
potential to raise the Cost of Capital (CoC) and          "The event period usually includes the day before
destroy value for shareholders, thereby making            the event date through one to three days following
such an alignment disadvantageous, even for the           the event date. The event period is often expanded
BEE partners, Wits Business School decided to             to include preceding and subsequent days so that
analyse the change in the CoC before the BEE              the researcher can identify possible leaks and/or
transaction compared to the ex-post period.               delayed reactions to events" (Wells, 2004: 4). In
                                                          the case where information leakages are expected,
The study compared Cumulative Average Returns             a window that includes the planning period before
(CAAR) on share prices of the target companies,           the event might be justified (McWilliams & Siegel,
in what is referred to as the ‘event study’ method,       1997).
and is described in the report as follows:

                                                       SA Eagle and Sasol, to name a few.
                                                       From the tests carried out, it was concluded that
                                                       the Cumulative Average Abnormal Returns (CAAR)
                                                       change negatively after a BEE transaction is
                                                       concluded, which in turn implies the BEE
                                                       transactions are on average already resulting in an
                                                       increase in CoC, indicating that these BEE
                                                       transactions had the impact of reducing shareholder

                                                       The study further considered the impact of BEE
                                                       transactions on shareholder value creation as
                                                       measured through changes in accounting-based
                                                       ratios such as Return on Equity (ROE), Return on
                                                       Investment (ROI), Economic value Added (EVA)
                                                       and Cash Value Added (CVA), as well as CoC and
                                                       WAAC, by analysing changes in these ratios before
                                                       2002 and after 2002, for a sample of 47 companies
                                                       that were either a target, acquirer or a seller during
                                                       2002 BEE transactions.

                                                       Two types of t-tests were therefore administered
                                                       to the data; the first based on the averages of
                                                       values before the transaction, as a value
                                                       independent of the averages of values after, for
                                                       all six ratios respectively.

                                                       A second t-test captured the situation of
                                                       dependence between the two means, hence t-
                                                       test of paired means for the same ratios. Companies
                                                       which did not have data before 2002 or beyond
                                                       2002 were eliminated for incomplete data. Thirty
                                                       eight companies that had data before and after
                                                       2002 were then observed as paired samples.

                                                       All ratios - namely ROE, ROCE, ROIC and EVA -
                                                       except ROI and CVA showed a positive, but
                                                       insignificant correlation coefficient, leading Prof
                                                       Ncube and his team to the conclusion that BEE
By using discounted cash flow and CoC analysis         transactions, including those in the financial services
interchangeably as a basis for determining the         sector, have already increased the CoC and have
value for the CoC calculation, the researchers used    not added significantly to shareholder value
the Weighted Average Cost of Capital (WACC)            creation. Indeed, they may have already contributed
formula to study the share movement of a sample        to shareholder value destruction.
group of 43 companies from 365 days before the
event, up to 10 days after the event. (For a full      It must be remembered that the research was
breakdown of the formula and companies involved,       conducted in order to understand the impact of
you can download the report from                       CoC and shareholder value by moving the equity                                       variable - as detailed in the Financial Services
                                                       Charter - to align with the DTI Codes of Good
Using the McGregor Web site to source all SENS         Practice.
announcements on BEE deals dating back to
January 2001 which had been made regarding the         However, with the understanding that knowledge
population of listed companies, the sample studied     is power, and armed with the insight provided by
the results of transactions of listed companies such   this telling report, you will now have to make up
as Absa, Basil Read Holdings, Goldfields, Bytes        your own minds as to how parties should proceed
Technology Group, Illovo Sugar, Nampak, Netcare,       with regards to ownership provisions.

                     SPEAK                                 2         0       0         8

                                                                            impact the budget may have on the acceleration
                                                                            of Black Economic Empowerment, through its
                                                                            procurement policy and implementation thereof

                      PowerSpeak                                            and a discussion around the enabling environment
                                                                            for small and medium size companies as the pillar
                                                                            for the acceleration of both economic and

Lesetja Kganyago
                      takes the                                             employment growth.

                                                                            As the traditional first PowerSpeak of the year for
 National Treasury    budget to task                                        ABSIP, this is usually viewed as the barometer for
                                                                            the envisaged PowerSpeaks throughout the
                                                                            remainder of the year, and the success of this first
                                                                            one is generally judged on the number of people
                                                                            who attend.
                     The first PowerSpeak event of 2008, hosted by
                     the Association of Black Securities and Investment
                                                                            While the events are hosted by ABSIP, the topics
                     Professionals (ABSIP) and focusing on the Annual
                                                                            that are generally covered are not only of interest
                     Budget Review, took place recently at the Balalaika
                                                                            to ABSIP members but should also appeal to the
                     Hotel in Sandton.
                                                                            general public. Attendance is opened to all
                                                                            interested although non-members pay an entrance
                     The keynote speakers included Lesetja Kganyago,
                     Director General of the National Treasury and
                     Standard Bank Chief Economist, Goolam Balim.
                     Unfortunately Political and Economic Analyst Dr
                     Mohau Pheko was unable to attend.

                     These highly respected individuals provided a clear
                     review of the national budget as presented by the
                     Minister of Finance in Parliament the previous day,
                     with Balim providing the foil to Kganyago, by
                     acting as a critic and touching on the missed
                     opportunities within the budget.

                     Amongst the items highlighted were the potential
                     impact of the budget on the poor, as well as its
                     effect on business and society as a whole; also
                     discussed was the possible interpretation of the
                     budget by other global players and the concomitant
                     impact in terms of foreign direct investment.
                     Other issues raised at the event included what

                   SPEAK                                 2         0       0        8

                                                                          face the economy, while still prioritising issues such
                                                                          as the alleviation of poverty and the upliftment of
                                                                          the majority.

                    PowerSpeak                                            Matshiqi pointed out that although the economic
                                                                          policy agreed on by delegates at the ANC’s

Matthews Phosa
                    discusses                                             conference in Polokwane hadn’t really advanced
                                                                          any fundamental changes in the existing policy,
                                                                          there is still much work to be done to achieve the
 ANC Treasurer -
    General         economic policy                                       macro-economic goals that we as a nation have
                                                                          set for ourselves.

                                                                          He also touched on the need to engage with all
                                                                          relevant parties on topics of importance – such as
                   ABSIP’s second PowerSpeak event of 2008,               the energy crisis – and its impact on other areas
                   held at the Sandton Convention Centre in Sandton
                                                                          of life, stating that it is important to be conscious
                   on the 30th of April, proved to be an interesting
                                                                          of the surrounding factors too, such as the impact
                   look into the ANC’s economic policy and need for
                                                                          of price hikes, and the urgent need to choose the
                   all stakeholders to move to a new culture, both
                                                                          course of action that will achieve what is best for
                   politically and economically.
                                                                          the majority.
                   Keynote speaker Matthews Phosa, the ANC
                                                                          The next PowerSpeak will take place on June 25
                   Treasurer-General, discussed the impact of
                                                                          at our new regular venue, the Sandton Convention
                   government’s economic policy on the financial
                                                                          Centre. Members can expect a PowerSpeak event
                   services sector, as well as the fact that democracy
                                                                          of every second month, and will be informed by
                   can only thrive when all the institutions of
                                                                          e-mail as to who the guest speakers will be.
                   government work together for the benefit of the

                   Sharing the stage alongside Phosa were political
                   analysts, Aubrey Matshiqi and Steven Friedman.

                   Phosa told the audience that it is vital that the
                   country as a whole move towards a new culture
                   of rigorous debate, one in which there are no
                   sacred cows to impede a proper discussion.

                   He also mentioned that there is a critical need for
                   a genuine partnership between government and
                   the private sector as we tackle the challenges that

                  WOMEN bears fruitFOCUS
                  Mentorship scheme
                  ABSIP has made the empowerment of black                participating to apply.
                  women one of its key strategic objectives from
                  2006 and beyond, and its mentorship programme          Speaker Series continues to provide insight
                  is just one of a number of initiatives through which
                  the organisation seeks to make a meaningful            The ABSIP Women In Focus Speaker Series, a
                  contribution towards the progression of women          programme that provides a platform for women
                  leaders within the financial sector.                   at the forefront of the economy to share their
                                                                         experiences and knowledge with professional
 Yolanda Cuba
                  The objectives of the programme include providing      women across the spectrum of the industry, held
CEO-Mvela Group
                  a support structure and peer networks for black        a very successful first meeting at the beginning of
                  women in the sector through mentorship and             May.
                  learning opportunities; ensuring effective skills
                  transfer and the building of strong, globally          On May 7th, members were privileged to hear
                  competitive women leaders; providing a repository      guest speaker Yolanda Cuba, CEO of the Mvela
                  of data on the progression of black women in the       Group speak around the issue of transformation,
                  sector; assisting corporates in their need to ensure   telling attendees her personal story of growth and
                  that they have the requisite levels of black women     success.
                  across the spectrum; and contributing towards the
                  broader principles and issues of national interest.    It is hoped that all the listeners were able to learn
                                                                         something from her experiences, as she shared
                  Mentorship                                             her views of the sector and was extremely vocal
                                                                         around the current representation of black women
                  The first mentorship programme in 2006, is now         at senior management and board level, pointing
                  reaching fruition, with a number of young black        out that in over 300 listed companies, there are
                  professional women having received guidance            only four black women heading up such
                  from established professionals since the programme     organisations.
                                                                         Cuba also reflected on the lessons she learned in
                  To enable this project to continue and grow, ABSIP     her career and discussed at length the impact
                  has retained the services of Patience Magwenzi as      having a mentor had in her development,
                  project manager and co-ordinator for the               encouraging attendees to tap into the ABSIP
                  mentorship programme; as one of the members            mentorship programme, as she is fully aware of
                  of the team that originally conceptualised the idea,   the importance such a programme can have.
                  she is ideally positioned to ensure its continuance
                  and will assist the current applicants wherever        The feedback from members and non-members
                  possible and also co-ordinate follow-up procedures     alike was particularly good and the interactions
                  in this regard.                                        and discussions afterwards were extremely
                                                                         engaging, with much rigorous debate around the
                  The mentorship programme draws to a conclusion         subject.
                  in July of this year, and ABSIP is currently hard at
                  work revising and improving on the existing            The next Speaker Series event will take place on
                  programme.                                             July 9th at the offices of JP Morgan, who have
                                                                         graciously come on board as Series sponsor, at 1
                  The plan is to build more structure into the           Fricker Road, Illovo. Details around who the speaker
                  processes, in order to ensure that certain specific    will be will be released to members in due course.
                  issues will be raised and particular topics will be
                  discussed with applicants by their respective

                  Details of the new mentorship programme will be
                  communicated to members in the coming months
                  via the Web site, newsletter and e-mail, when we
                  will be inviting all members who are interested in

Black-owned Asset
Management Companies

The financial sector charter, as well as building     structure, and are also gradually transforming the
awareness of the need to support these emerging       staff breakdown to reflect the demographics of
managers will ensure their success, as these start    the country.
ups are more than equipped to compete with
established asset managers.                           However, transformation of staff has been very
                                                      slow, with only 23 percent of asset management
Asset managers have seen the biggest structural       firms having senior decision makers of colour. In
impact from the introduction of the charter. More     this issue of ABSIP News we profile 4 emerging
than 60 percent of the managers we monitor have       black-owned asset management companies.
a black empowerment partner in their shareholding

Mduduzi Ndlovu     Mothobi Seseli
Chief Investment   Managing Director

                                                                                Current size of assets under management:

                                                                                ZAR 4.6 Billion on behalf of some 30 institutional
                                                                                clients, which includes retirement funds, insurance
                                                                                companies, medical funds and multi managers.

                         Argon Asset Management
                                                                                -   Specialist Active Equity
                         Argon Asset Management is a Cape Town based
                                                                                -   Specialist Active Fixed Income
                         wholly owner-managed investment management
                                                                                -   Core bonds
                         company which started operating in April 2005.
                                                                                -   Enhanced money market
                         Argon’s organizational vision is to build a premier
                                                                                -   Absolute Return
                         investment management business dedicated to
                         meeting the needs of the broader investing
                                                                                Investment Philosophy:
                         community principally in the Southern Africa region.
                         Their success has been underpinned by consistently
                                                                                Argon’s philosophy to investing is predicated on
                         meeting and exceeding client expectations across
                                                                                an active fundamental research approach. This
                         a range of predefined benchmarks.
                                                                                means conducting in-depth research on all potential
                                                                                investment opportunities we pursue on behalf of
                         Key Facts:
                                                                                our client portfolios. The principal benefit of such
                                                                                an approach lies in the achievement of considerably
                         Date Established:
                                                                                higher levels of conviction in our views about the
                                                                                different types of investment opportunities available
                         Argon Asset Management was launched in April
                                                                                at any one point in time. Ultimately, the probability
                         2005. The current team is made up of 11
                                                                                of investment success is increased through higher
                         individuals who have a combined industry
                                                                                conviction levels.
                         experience of over 94 years.

                                                                                Contact details
                         The Senior Management team comprises:

                                                                                Luyanda Joxo (Mr)
                         -   Mothobi Seseli (Managing Director)
                                                                                Business Development Manager
                         -   Mduduzi Ndlovu (Chief Investment Officer)

                                                                                Tel:     +27 21 441 2474
                         Company Ownership:
                                                                                Cell:    +27 84 701 1271
                         Argon Asset Management is 100% black-owned
                         and managed. Their BEE rating as verified by
                         Empowerdex is AAA+ and as verified by KPMG -
                         Level One contributor.

                                                                         number of companies in the universe, this enables
                                                                         us to diversify our reliance on any single item of
                                                                         data. In contrast, we believe that, with “top-
                                                                         down” approaches, there are only a small number
                                                                         of variables to rely on and the risks of being wrong
                                                                         are consequently increased.
                 Kagiso Asset Management                                 In managing equity portfolios, we focus on 3
                                                                         important areas, namely:
                 Kagiso Asset Management (KAM) is a specialist
                 investment management company, focused
                                                                         -   Quantitative research: which provides breadth
                 primarily on a quantitative investment approach.
                                                                             of coverage of the entire stock market, for
                 KAM offers a focused range of products to
                                                                             which there is data available
                 sophisticated private investors and public sector
                                                                         -   Fundamental research: which provides depth
                 institutional clients, mainly targeting core and
Roland Greaver                                                               of coverage in particular focus areas, where
                 aggressive satellite mandates within institutional
  CEO-Kagiso                                                                 we feel there is an opportunity to add alpha
                 portfolios. KAM is registered as an investment
                                                                         -   Portfolio construction: where the investment
                 manager with the FSB and currently manages R12
                                                                             team debates our investment ideas and
                 billion of assets for various clients. The management
                                                                             combines the quantitative and fundamental
                 team’s primary focus is to produce superior
                                                                             research inputs, to arrive at our final stock
                 investment performance for our clients.
                 Kagiso is run by a highly skilled investment team,
                                                                         Company Ownership:
                 which optimally combines quantitative processes
                 and fundamental judgement to exploit inefficiencies
                                                                         KAM was established in 2001 as a joint venture
                 in the South African markets.
                                                                         between the Kagiso Group and Coronation Fund
                                                                         Managers. In early 2005, on reaching critical mass,
                 Kagiso Trust Investments is the majority shareholder,
                                                                         a staff equity transaction saw Coronation exit the
                 with management and staff also participating in
                                                                         business and the current ownership structure
                 the ownership structure of the company.
                                                                         emerge. This is illustrated alongside and results
                                                                         in 85% direct black ownership and control.
                 Key Facts:

                 Date Established:

                 Kagiso Core Equity Fund
                 Kagiso Managed Equity Fund
                 Kagiso Protector Fund
                 Kagiso Balanced Fund                                                                     KAM
                 Kagiso Money Market Fund                                                              management

                 Size of Assets under management:                                    70%                   20%
                 R12 Billion

                 Investment Philosophy:

                 At KAM, we manage a variety of general equity
                 portfolios using the same investment philosophy
                 and stock selection process. We do, however, vary
                 the level of “aggression” between our more
                                                                         Kagiso Asset Management (Pty) Ltd
                 conservatively managed “core equity” funds and
                                                                         2nd Floor Coronation House
                 our more aggressive “managed equity” funds.
                                                                         Boundary Terraces
                                                                         No 1 Mariendhal Lane
                 We focus primarily on company-specific information
                 - a so called “bottom-up approach” – which
                                                                         Tel:   +27 (0)21 680 2460
                 encompasses us focusing on a wide variety of data
                                                                         Fax: +27 (0)21 680 2471
                 about each company. With the relatively high

The Renaissance Team
     Cape Town


                                                                        Renaissance provides specialist equity management

                                                                        Size of Assets under Management:
                 Renaissance Specialist Funds                           R3.462 Billion as at 29 February 2008
                                                                        Investment Philosophy:
                 Renaissance Specialist Fund Managers is a Cape
                 Town based investment management firm                  Renaissance’s philosophy is to search for good
                 established in November 2005. The firm is wholly       quality companies trading below our assessment
                 owned by management and was founded by a               of intrinsic value.
                 team of entrepreneurial investment professionals
                 who share a common vision to build a substantial,      Renaissance sees themselves as fundamental
                 quality third party investment management firm         bottom up stock pickers. Quality in-depth
                 that is truly African in character and composition.    fundamental research is the bedrock of our
                 Renaissance focuses on producing superior long         investment process. The company has a single
                 term investment returns and providing quality          intuitive investment philosophy that is implemented
                 service for our clients. Our sole business is the      across all our client mandates through a robust
                 professional management of investment portfolios       and disciplined process.
                 on behalf of third party clients, and retirement
                 funds in particular. Our speciality lies in the        Company Ownership:
                 management of South African equity portfolios.
                 Our approach to investments is based on the            Renaissance Specialist Fund Managers is wholly
                 philosophical belief that our job as a specialist      owned by the founding partners and senior staff,
                 equity manager is the search for good quality          including over 60% direct black ownership.
                 companies trading below our assessment of intrinsic
                 value.                                                 Contacts:

                 Their philosophy is implemented through a robust       Thato Minyuku
                 team based investment process that ensures we          Marketing Manager
                 approach stock selection and portfolio construction    Tel:   +27 21 488 3880
                 in a systematic, disciplined and repeatable fashion.   FaX: +27 21 424 4334
                 Key Facts:                                             Web:
                                                                        4th Floor, 35 on Wale, 35 Wale Street, Cape
                 Date Established:                                      Town 8001 PO Box 16081, Vlaeberg 8018
                 Established in November 2005

                                                           - Enhanced Yield Fund (Cash Plus)
                                                           - Active Bond Fund

                                                       Size of Assets under Management

                                                       The assets under management as at 29 Feb 2008
                                                       = ZAR3.2 Billion.
Tri-Linear Investment
Management                                             Investment Philosophy:

Tri-Linear is a leading black economic                 Tri-linear uses a multi-disciplined approach to long-
empowerment (BEE) financial institution, founded       term investing which entails actively seeking
in 1996, with a strong track record in asset           superior returns.
management and specialised finance. Its client
base includes parastatal, corporate and trade union    This is achieved by employing a unique blend of:
                                                       -   Fundamental Macro (Top-Down)
Key Facts:                                             -   Fundamental Micro (Bottom-Up)
                                                       -   Quantitative Techniques
Date Established:
                                                       These techniques are implemented in a disciplined
Established in December 1996                           manner which allows us to manage their downside
                                                       Company Ownership:
   Equity Products
   - General Equity Fund                               Tri-linear is 100% black owned, by Tri-linear
   - Specialist Equity Fund                            Holdings (80%) and Tri-linear Management & staff
   - High Dividend Yield Fund                          (20%)
   Property Products
   - Property Fund (Listed)                            Contacts:
   Balanced Products
   - Global Balanced                                   Jennifer Harley
   - Domestic Balanced                                 Client Relationship Manager
   Alternative Investment                              16th Floor, 2 Long Street
   - Products                                          2 Long Street, Cape Town
   - Capital Protected Funds
   - Alpha Plus Fund                                   Tel:   +27 21 410 1300
   - Absolute Return Fund                              FaX: 0866 570 265
   Fixed Income & Money Market Products                Email:
   - Money Market Fund

Dates to diarise
DATE                        EVENT                                  VENUE
25 June                     PowerSpeak 03                          Sandton Convention Centre
09 July                     ABSIP Women in Focus –                 JP Morgan, 1 Fricker Road, Illovo
                            Speaker Series
28 August                   PowerSpeak 04                          Sandton Convention Centre
10 September                ABSIP Women in Focus –                 JP Morgan, 1 Fricker Road, Illovo
                            Speaker Series
23 October                  PowerSpeak 05                          Sandton Convention Centre
12 November                 ABSIP Women in Focus –                 JP Morgan, 1 Fricker Road, Illovo
                            Speaker Series

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