annual financial statements - UCT Retirement Fund

ANNUAL FINANCIAL STATEMENTS

NAME OF RETIREMENT FUND: UNIVERSITY OF CAPE TOWN RETIREMENT FUND

FINANCIAL SERVICES BOARDREGISTRATION NUMBER: 12/8/31582/2

FOR THE PERIOD: 1 July 2014 to 30 June 2015

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 - 5

6

7

8 - 9

10 - 17

18

19

HA

HB

I

IA

IB

Notes to the financial statements

Report of the Valuator *

Report of the independent auditors tothe Registrar of Pension Funds

Investment schedule pertaining to theannual financial statements *

Assets held in compliance withRegulation 28Report of the independent auditorson compliance with Regulation 28 tothe Registrar of Pension Funds

20 - 38

39

40 - 53

54 - 63

64 - 69

70

* Not subject to any engagement by an auditor

UNIVERSITY OF CAPE TOWN RETIREMENT FUND

SCHEDULE AREGULATORY INFORMATIONfor the year ended 30 June 2015

REGISTERED OFFICE OF THE FUND

Postal address: Private Bag X3Rondebosch7701

Physical address: Bremner Building, Lovers' WalkRondebosch7700

FINANCIAL REPORTING PERIODS

Current year: 1 July 2014 to 30 June 2015Prior year: 1 July 2013 to 30 June 2014

Period 1 January 2014 to 31 December 2015

Full name E-mail Address Capacity Date appointed orre-appointed

Date resigned

Mr H.T. Amoore [email protected] E & C(1) 1 January 2014 N/A

Mr S. Abrahams [email protected] E 1 January 2014 N/A

Dr P. de Jager [email protected] E & C(2) 1 January 2014 N/A

Ms L. Haddow [email protected] E 1 January 2014 N/A

Dr H. Raubenheimer [email protected]; E 1 January 2014 N/A

Emeritus Professor J. Simpson [email protected] E 1 January 2014 N/A

Ms J. du Toit [email protected] M & DC 1 January 2014 N/A

Ms K. Lehmann [email protected] M 1 January 2014 N/A

Mr D. Munene [email protected] M 1 January 2014 N/A

Professor S. Richardson [email protected] M 1 January 2014 N/A

Mr C. Tobler [email protected] /[email protected]

M 1 January 2014 N/A

Mr D. Strugnell [email protected] M 1 January 2014 N/A

Ms M. Tainton [email protected] E/A 1 January 2014 N/A

Professor J. Glazewski [email protected] M/A 1 January 2014 N/A

- 'M' denotes member elected- 'E' denotes employer appointed- 'A' denotes alternate- 'C(1) ' denotes chairperson- 'DC' denotes deputy chairperson- 'C(2) ' denotes sponsor/trustee elected

Governance note: schedule of meetings* held by the Board of Fund in terms of the Rules of the Fund

Meeting date Place of meeting Quorum

26 September 2014 Mafeje Room, Bremner Building, UCT, Rondebosch Yes

2 December 2014 Mafeje Room, Bremner Building, UCT, Rondebosch Yes

23 March 2015 Kramer Building, UCT, Rondebosch No **

19 June 2015 Mafeje Room, Bremner Building, UCT, Rondebosch Yes

* Only meetings held by the Board of Fund and does not include meetings held by the sub-committees.** All decisions taken were subsequently ratified by the Board of Fund.

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SCHEDULE AREGULATORY INFORMATION (continued)For the year ended 30 June 2015 BOARD OF FUNDAttendance register:

Full Name 26 September 2014 2 December 2014 23 March 2015 19 June 2015

Employer Trustees

Mr H.T. Amoore (Chair) Present Present Present Present

Mr S. Abrahams Present Apology Apology Present

Dr P. De Jager Present Present Apology Present

Ms L. Haddow Present Present Present Apology

Dr H. Raubenheimer Apology Present Present Present

Emeritus Professor J. Simpson Apology Apology Apology Apology

Ms M. Tainton (Alternate) Present Present Present Present

Employee Trustees

Ms J. Du Toit (Deputy Chair) Present Present Apology Present

Ms K. Lehmann Present Present Present Present

Mr D. Munene Present Present Apology Present

Professor S. Richardson Present Present Present Present

Mr C. Tobler Present Present Apology Present

Mr D. Strugnell Apology Present Apology Present

Professor J. Glazewski (Alternate) Present Apology Present Present

ADMINISTRATION, AUDIT AND RULES COMMITTEE

ADMINISTRATION, AUDIT AND RULES COMMITTEE is responsible for reviewing the benefit structure and Rules of the Fund andrecommend changes where appropriate to the Board of Fund and to ensure the implementation of any Board of Fund approved Rulechange including the necessary regulatory approval process such as practice notes required for the operation of the Fund. TheCommittee monitor benefit payments, Fund operations, risk management and financial management.

Attendance register:

Full Name 19 August 2014 20 November 2014 24 February 2015 12 May 2015

Dr P. De Jager (Chair) Present Present Present Present

Mr H.T. Amoore Apology Apology Present Present

Ms J. Du Toit Present Present Present Present

Ms L. Haddow Present Present Present Present

Ms M. Tainton (Alternate) Present Present Present Present

INVESTMENT COMMITTEE

INVESTMENT COMMITTEE is responsible for reviewing the Fund’s Investment Policy Statement (IPS) on an annual basis (or morefrequently on the events set out in the IPS) and if necessary recommend changes to the IPS to the trustee and to report to the Board ofFund on the Fund’s compliance with the IPS. Another key performance area is to make recommendations to the Board of Fundregarding the appointment and/or replacement of investment managers.


Full Name 12 May 2014 21 September 2014 10 February 2015 21 April 2015

Professor S Richardson (Chair) Present Present Present Present

Mr H.T. Amoore Present Present Present Present

Mr D. Cleland Present Present Present Present

Dr P. De Jager Present Present Present Present

Associate Professor G. Holman Apology Present Apology Apology

Mr D. Munene Present Apology Apology Present

Emeritus Professor J. Simpson Present Apology Present Apology

Mr D. Strugnell Present Apology Present Present

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SCHEDULE AREGULATORY INFORMATION (continued)For the year ended 30 June 2015 DEATH BENEFIT 37C COMMITTEE

DEATH BENEFIT 37C COMMITTEE makes proposals, according to a process approved by the Board of Fund for allocation of deathbenefits in accordance with Section 37C of the Pension Fund Act.


Full Name 9 September 2014 7 November 2014 11 March 2015 2 September 2015

Ms K. Lehmann (Chair) Present Present Present Present

Ms J. Du Toit Present Present Apology Present

Ms L. Haddow Present Present Present Apology

Mr C. Tobler Apology Apology Present Apology

COMMUNICATIONS COMMITTEE

COMMUNICATIONS COMMITTEE recommends to the Board of Fund and thereafter implements (without prior reference to the Boardof Fund) a communications policy and annual cycle of communication for the Fund covering verbal, electronic and written mediaincluding: University of Cape Town Retirement Fund (UCTRF) website, member booklets, new member induction, retirementcounseling, member road shows, death benefit multiple and investment choice exercises, annual member benefit statement: Thecomittee ensure that the Fund meets the minimum statutory requirements in respect of member communication as laid down in thePension Funds Act (Sections 18, 22, 35 and Regulation 24(d) and PF Circulars 86 and 90).


Full Name 7 August 2014 25 November 2014 4 February 2015 7 May 2015

Emeritus Professor J. Simpson (Chair) Apology Apology Present Present

Mr S. Abrahams Present Apology Present Apology

Mr D. Strugnell Present Present Present Present

Ms M. Tainton Apology Present Present Apology

Mr C. Tobler Present Present Present Present

Ms K. Chernotsky N/A Present N/A N/A

RETIREMENT AND EXIT BENEFITS COMMITTEE

RETIREMENT AND EXIT BENEFITS COMMITTEE is to recommend to the Board of Fund and thereafter implement (without priorreference to the Board of Fund) policies and avenues for members to deal with exit benefits including but not limited to default optionsto be made available to members, the living annuity option offered by the Fund, including limitations on drawdown rate to be imposedand periodic communication of life annuity options to living annuitants, the life annuity options available to members on retirement fromthe Fund, other preservation options available to members on exiting the Fund and the process of communication to membersregarding exit benefits and post-retirement options available. To ensure that retiring members, and those setting investment strategy inplanning for retirement and to oversee the annual processes, managed by the Principal Officer together with the Fund’s consultants, ofoffering life and living annuity quotes to retiring members and of communication to UCTRF living annuitants, including the LivingAnnuitant Certificate and Annual Drawdown Form.


Full Name 24 July 2014 14 October 2014 9 March 2015 1 June 2015

Mr D. Strugnell (Chair) Present Present Present Present

Mr H.T. Amoore Present Present Apology Apology

Mr C. Tobler Present Present Present Apology

FINANCIAL STATEMENTS SUB-COMMITTEE


Full Name 27 October 2014 11 November 2014 21 November 2014

Dr P. De Jager (Chair) Present Present Present

Mr H.T. Amoore Present Present Present

Ms L. Haddow Present Present Present

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SCHEDULE AREGULATORY INFORMATION (continued)For the year ended 30 June 2015 FUND OFFICERS

Principal Officer

Full name Postal address Physical addressTelephonenumber E-mail address Appointed Resigned

Ms Olivia van der Hoven Private Bag X3,Rondebosch, 7701

Bremner Building, Lovers'Walk, Rondebosch, 7700

(021) 650 2159 [email protected] 1 May 2013 30 Apr 2015

Ms Margie Tainton Private Bag X3,Rondebosch, 7701


(021) 650 3028 [email protected] 1 May 2015 30 Nov 15

Ms Penny Fabre Private Bag X3,Rondebosch, 7701


(021) 650 2159 [email protected] 1 Dec 15 N/A

Deputy Principal Officer

Full name Postal address Physical addressTelephonenumber E-mail address Appointed

Mr William Nkutha Private Bag X3,Rondebosch, 7701

Bremner Building, Lovers' Walk,Rondebosch, 7700

(021) 650 2532 [email protected] 1 May 2015

Monitoring person*

Full name Postal address Physical addressTelephonenumber E-mail address Appointed Resigned

Ms Margie Tainton Private Bag X3,Rondebosch, 7701


(021) 650 3028 [email protected] 1 May 2015 30 Nov 15

Ms Penny Fabre Private Bag X3,Rondebosch, 7701


(021) 650 2159 [email protected] 1 Dec 15 N/A

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

PROFESSIONAL SERVICE PROVIDERS

Actuary/Valuator

Full name Postal address Physical addressTelephonenumber E-mail address Re-appointed

Dr Erich Potgieter Private Bag X30,Rondebosch, 7701

Great Westerford Building, 240 MainRoad, Rondebosch, 7700

(021) 681 3700 [email protected]

1 Jul 2015

Auditor

Full name Postal address Physical addressTelephonenumber E-mail address Re-appointed

PricewaterhouseCoopers Inc. P.O.Box 2799, Cape Town,8000

1 Waterhouse Place, Century City,Cape Town, 7441

(021) 529 2000 [email protected] 1 Jul 2013

Benefit administrator

Full name Postal address Physical addressTelephonenumber Re-appointed

Benefitadministrator'sregistration numberin terms ofsection 13B

Sanlam Employee Benefits(Division of Sanlam LifeInsurance Limited)

P.O.Box 1, Sanlamhof,7532

2 Strand Road, Bellville, 7530 (021) 947 9111 1 Sep 2011 24/85

- 4 -


SCHEDULE AREGULATORY INFORMATION (continued)For the year ended 30 June 2015

Investment administrator

Full name Postal address Physical addressTelephonenumber Appointed Termination

Date

Investmentadministrator'sFAIS registrationnumber

ABAX Investments (Pty) Limited P.O.Box 23851,Claremont, 7735

Ground Floor Coronation HouseThe Oval, 1 Oakdale Road,Newlands, 7700

(021) 670 8960 1 May 2014 N/A 856

Allan Gray Investment ServicesLimited

P.O.Box 21318,Waterfront, CapeTown, 8002

Granger Bay Court, BeachRoad, V&A Waterfront, 8001

(021) 415 2300 1 Feb 2004 N/A 19896

Catalyst Fund Managers SA P.O.Box 44845,Claremont, 7735

c/o Catalyst Fund Managers,27th floor Thibault Square, CapeTown, 8001

(021) 657 5500 21 Jun 2012 N/A 723

Coris Capital CollectiveInvestment Managers Limited

Private Bag X14,Highveld Park, 0169

Lords Office Estate, 276 WestStreet, Centurion, 0169

(012) 683 3400 1 May 2009 N/A 581

Investec Asset Management(Pty) Limited

P.O.Box 1655, CapeTown, 8000

5th Floor, Norwich on StGeorge's Mall, Cape Town,8001

(021) 410 5100 1 Jun 2004 N/A 587

MMI Group Limited P.O.Box 2212,Bellville, 7535

Metlife Centre, 7 Coen SteytlerAvenue, Cape Town, 8001

(021) 917 3111 21 Sep 1995 N/A 3780

PIMCO Europe Limited 11 Baker Street,London, W1U3AH

11 Baker Street, London,W1U3AH

(044) 2079730023

1 Feb 2013 17 Jun 2015 42071

Prescient InvestmentManagement (Pty) Limited

P.O.Box 31142,Tokai, 7966

Prescient House The Terraces,Steenberg Boulevard,Steenberg Office Park, 7945

(021) 700 3600 1 Feb 2001 N/A 612

Prescient Life Limited P.O.Box 31142 ,Tokai, 7966

Prescient House, WestlakeBusiness Park, Otto Close,Westlake, 7945

(021) 700 3622 31 Mar 2010 N/A 44077

Sanlam Life Insurance Limited P.O.Box 1,Sanlamhof, 7532

2 Strand Road, Bellville, 7530 (021) 947 9111 1 May 2009 N/A 579

Stanlib Asset ManagementLimited

P.O.Box 202, MelroseArch, 2076

17 Melrose, Boulevard MelroseArch, 2196

(011) 448 6826 1 Jul 2015 N/A 719

Stone Harbor InvestmentPartners LP

31 West 52ND Street,16TH Floor, NewYork, 10019

31 West 52ND Street, 16THFloor, New York, 10019

(212) 548 1200 1 Apr 2013 15 Jun 2015 43570

Investment advisor

Full name Postal address Physical addressTelephonenumber Re-appointed

Investment advisor'sFAIS registrationnumber

Towers Watson (Pty) Limited Private Bag X30,Rondebosch, 7700

Great Westerford Building, 240 MainRoad, Rondebosch, 7701

(021) 681 3700 1 Jul 2015 2545

Risk insurer

Full name Postal address Physical addressTelephonenumber Re-appointed FSP approval no

Capital Alliance P.O.Box 1655, Cape Town,8002

2nd Floor, Mariendahl House, CnrMain & Campground, Newlands,7700

(021) 416 1555 1 Mar 2014 17404

Custodian and/or nominee

Full name Postal address Physical addressTelephonenumber Appointed FSP approval no

Nedbank Limited P.O.Box 1144,Johannesburg, 2000

3rd Floor, Braampark Forum IV, 33Hoofd Street, Braamfontein, 2001

(011) 667 1000 1 Dec 2003 9363

PARTICIPATING EMPLOYERS

The following employers participates in the Fund in terms of the Rules of the Fund:

� University of Cape Town� Cape Higher Education Consortium NPC (Non Profit Organisation Number: 028-374-NPO)

- 5 -


SCHEDULE EREPORT OF THE BOARD OF FUNDAs at 30 June 2015

1. DESCRIPTION OF FUND

1.1. Type of Fund

The Fund is a Defined Contribution Provident Fund.

1.2. Benefits

The Fund provides retirement, death and withdrawal benefits. Members on the permanent staff of the employer may elect,under certain conditions, to reduce the multiple of death cover provided, in which case the employer contributions towardsretirement benefits are increased for those members, in line with the consequential reduction of death-in-cover costs. Thedeath benefit (group life assurance cover) for permanent staff under the Fund, unless reduced, is six times annual deemedpensionable amount. It is part of the approved scheme. This means that payment of tax is deferred until a benefit is paid.

There is a separate, unapproved group life assurance scheme, outside of the UNIVERSITY OF CAPE TOWN RETIREMENTFUND, providing a compulsory single multiple of the annual deemed pensionable amount for death and permanent disabilitycover for members on the permanent staff of the employer, and a compulsory three times multiple for members who are fixed-term contract staff of the employer. As this is unapproved, it is a member contributed scheme; the employer pays the premiumon the members' behalf and deducts the tax on behalf of the member in respect of the premium paid. Members may in certaincircumstances elect to increase the multiple of this cover, and if permitted to do so must meet the premiums for the additionalmultiples. Any benefit paid out under this scheme is not subject to tax.

There is also a separate unapproved disability income continuation scheme for members who are permanent staff of theemployer, outside of the UNIVERSITY OF CAPE TOWN RETIREMENT FUND.

1.2.1.Unclaimed benefits

The Board of Fund and Principal Officer endeavour to trace those former members with outstanding benefits in order to paysuch benefits. Procedures between the employer and the Fund for exiting staff are regularly monitored. In respect of unclaimedbenefits, complete records, as prescribed, are maintained since inception.

1.3. Contributions

1.3.1 Member contributions

According to Rule 8.1 of the Fund a member will not be required to contribute to the Fund, unless the member is granted leave ofabsence with less than full normal remuneration. If the employer does not contribute to the Fund in respect of the member duringsuch absence, the member must contribute 6.5% of his/her normal pensionable salary to cover the contributions to the separateunapproved schemes and the balance to the Fund.

Such member does, however, have the option to contribute 22.5% of his/her normal pensionable salary to the Fund during suchabsence. Such contributions would be member contributions. The costs of the Fund regarding the member and the cost of death-in-service benefits are first deducted from the contributions referred to above and the balance is credited to his/her member'saccumulated credit in accordance with the determination for employer contributions.

Member contribution rates for permanent staff on leave without pay (limited contributions):

Period Total membercontribution

Separateunapproved

schemes

Risks & costs Retirement savings Discretionaryretirement savings

2015/03/01 -2015/06/30

6.500% 0.799% 1.501% 0.000% 4.200%

2014/03/01 -2015/02/28

6.500% 0.859% 1.491% 0.000% 4.150%

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SCHEDULE EREPORT OF THE BOARD OF FUND (continued)For the year ended 30 June 2015

Member contribution rates for fixed term contract staff on leave without pay (limited contributions)


Separateunapproved

schemes


2015/03/01 -2015/06/30

6.500% 0.777% 0.495% 0.000% 5.228%

2014/03/01 -2015/02/28

6.500% 0.777% 0.495% 0.000% 5.228%

Member contribution rates for permanent staff on leave without pay (full contributions):


Separateunapproved

schemes


2015/03/01 -2015/06/30

22.500% 0.799% 1.501% 16.000% 4.200%

2014/03/01 -2015/02/28

22.500% 0.859% 1.491% 16.000% 4.150%

Member contribution rates for fixed term contract staff on leave without pay (full contributions):


Separateunapproved

schemes


2015/03/01 -2015/06/30

22.500% 0.777% 0.495% 16.000% 5.228%

2014/03/01 -2015/02/28

22.500% 0.777% 0.495% 16.000% 5.228%

1.3.2 Employer contributions

The employer contributed to the Fund based on the rates set out in the table below.

Employer contribution rates for permanent staff:

Period Total employercontribution

Separateunapproved

schemes


2015/03/01 -2015/06/30

22.500% 0.799% 1.501% 16.000% 4.200%

2014/03/01 -2015/02/28

22.500% 0.859% 1.491% 16.000% 4.150%

Employer contribution rates for fixed term contract staff:


Separateunapproved

schemes


2015/03/01 -2015/06/30

20.912% 0.777% 0.495% 16.000% 3.640%

2014/03/01 -2015/02/28

20.912% 0.777% 0.495% 16.000% 3.640%

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Employer contribution rates for permanent staff on leave without pay (limited contributions):


Separateunapproved

schemes


2015/03/01 -2015/06/30

6.500% 0.799% 1.501% 0.000% 4.200%

2014/03/01 -2015/02/28

6.500% 0.859% 1.491% 0.00% 4.150%

Employer contribution rates for members on leave without pay (full contributions):


Separateunapproved

schemes


2015/03/01 -2015/06/30

22.500% 0.799% 1.501% 16.000% 4.200%

2014/03/01 -2015/02/28

22.500% 0.859% 1.491% 16.000% 4.150%

Employer contribution rates for disability members (disability lump sums paid out):


Separateunapproved

schemes


2015/03/01 -2015/06/30

21.701% 0.000% 1.501% 16.000% 4.200%

2014/03/01 -2015/02/28

21.641% 0.000% 1.491% 16.000% 4.150%

Employer contribution rates for disability members:


Separateunapproved

schemes


2015/03/01 -2015/06/30

21.960% 0.259% 1.501% 16.000% 4.200%

2014/03/01 -2015/02/28

21.900% 0.259% 1.491% 16.000% 4.150%

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1.4. Rule amendments

Ruleamendment No.

Descriptionand

motivation

Date ofBoard of Fund

resolution

Effectivedate

Date registered bythe

Financial ServicesBoard

4.Paragraph 1, 10and 11

The requirement to give the FSB written notice ofthe appointment of a new Principal Officer inaccordance with prescribed requirements has beenextended to valuators and auditors as well. TheRules have been amended to provide for thischange.

26 September2014

1 July 2014 11 December 2014

4.Paragraph 2 and 3

The definitions of “pension preservation fund” and“provident preservation fund” have been updated inaccordance with the changes to the Pension FundsAct.

26 September2014


4.Paragraph 4

The Rules are amended in order to make theamount available for commutation at retirementsubject to income tax legislation due to comingamendments to income tax legislation.

26 September2014


4.Paragraph 5

The Rules now empower the Board of Fund todirect that the benefit of a Member or Beneficiary bepaid to a third party if the Member or Beneficiary isable to submit sufficient proof that he/she is unableto open a bank account.

26 September2014


4.Paragraph 6

The Rules now provide for the deduction ofamounts awarded to non-member spouses not onlyin terms of divorce orders in terms of section 7(8) ofthe Divorce Act, but also in terms of otherapplicable legislation.

26 September2014


4.Paragraph 7

The definition of “unclaimed benefit” was amendedto include a benefit due to a non-member spousenot paid within 24 months from the date of electionor expiry of the election period (120 days). TheRules have been amended to provide for thischange.

26 September2014


4.Paragraph 8 and 9

Provision has been made for the Board of Fund toappoint a deputy Principal Officer who may act asPrincipal Officer if the Principal Officer is unable todischarge any duty or may be delegated some ofthe duties of the Principal Officer.

26 September2014


4.Paragraph 12

The Rules now require the Board of Fund to requestEmployers participating in the Fund to notify it inwriting of the identity of the persons who arepersonally liable for the payment of contributions tothe Fund.

26 September2014


4.Paragraph 13

Rule 13.9(7) has been rectified, as it contradictsRule 11.5(2) with regard to the way unclaimedbenefits are to be dealt with in the case of Section28 or 29 dissolutions.

26 September2014


4.Paragraph 14

Appendix I has been amended to provide for therecent changes to Section 37C of the Act.

26 September2014


All Rule amendments are available for inspection at the Fund’s registered office.

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

General Reserve Account:

The "General Reserve Account" was established to provide for contingencies and obligations of the Fund not covered by theAccumulation Account, the Risk Reserve Account, Data Reserve, Surplus Apportionment Cost Reserve, Processing ErrorReserve or the Living Annuity Balance Account. These obligations include the fees of the valuator, the administrator andauditors.

Risk Reserve Account:

The "Risk Reserve Account" is no longer being built up to minimize fluctuations arising from death and disability benefits tomembers as the Fund fully insures its risk benefits.

Data Reserve:

The "Data Reserve" is to account for the quality of the data submitted for valuation of the Fund.

Processing Error Reserve:

The "Processing Error Reserve" was established to provide for mismatching and for timing differences in the actual investmentof monies from the time when they are deemed to have occurred in the calculation of benefits or the accrual of investmentreturns.

Surplus Apportionment Cost Reserve:

The "Surplus Apportionment Cost Reserve" was established to provide for:- Fund costs in respect of surplus apportionment exercises; and- Fund costs related to ad hoc bonuses to members as determined by the Board of Fund in consultation with the Fund actuarybased upon distributable valuation surpluses.

2. INVESTMENTS

2.1 Investment strategy

The Board of Fund has formulated an investment strategy and produced an Investment Policy Statement. The investmentsare managed according to mandates set in terms of these principles. The investment strategy complies with the provisions ofRegulation 28 under the Pension Funds Act 24 of 1956 in South Africa. The Board of Fund reviewed and revised theInvestment Policy Statement during March 2014.

2.1.1. General

The Board of Fund is advised by an investment consultant (Towers Watson (Pty) Ltd) and supported by an investmentcommittee. For the Balanced Fund (Portfolio C) the Board of Fund have adopted a specialist investment manager approach.The investment managers for the SA and global equity parts of this portfolio must adopt the intrinsic value investmentapproach in terms of the Investment Policy Statement.

2.1.2. Individual member choice

The members have the option of electing the Life Stage Model of investment choice or making their own investment choicesacross the current Fund portfolios (Income Fund, Smoothed Bonus Fund, Balanced Fund and Shari'ah Fund). They mayexercise this choice twice a year on 31 March and 30 September.

The living annuitants have the option of making their own investment choices across the current Fund portfolios (IncomeFund, Smoothed Bonus Fund, Balanced Fund and Shari'ah Fund). They may exercise this choice twice a year on 31 Marchand 30 September.

2.1.3. Life Stage Model

The Board of Fund has decided that, from 1 April 2015 onwards, a blend of the Smoothed Bonus Fund and the Income Fundwill be used as the pre-retirement portfolio and members who opt for the Life Stage Model will be transitioned accordingly.

2.1.4. Unclaimed benefits

The Board of Fund and Principal Officer with the help of the employer, endeavour to trace former members with outstandingbenefits. Unclaimed benefits are held in the Fund’s near cash portfolio as defined by the Rules of the Fund. This providescapital protection and liquidity as the Fund is in the process of making these payments. The Fund charges an administrationfee against unclaimed benefits which is the charge levied by the administrator for administering the member record.

- 14 -



2.1.5. Surplus apportionment allocations

The 2001 and 2010 Surplus amounts payable to former members are invested by the Fund are held in the Fund's near cashportfolio as defined by the Rules of the Fund. Such 2001 and 2010 surplus amounts that have not yet been paid, weretransferred to unclaimed benefits on 31 May 2015 with a value of R 75,934. This provides capital protection and liquidity asthe Fund is in the process of making these payments. In terms of Fund policy the return on distributable surplus awaitingdistribution accrues to the surplus beneficiary concerned. The surplus allocations to active members, deferred pensioners andliving annuitants were allocated to their respective accounts in the Fund.

The Board of Fund have approved a proposal to allocate the surplus of R4,506,600 as at 30 June 2012, to current memberswho was still active at the time the surplus was allocated. The balance was transferred to the unclaimed member category.

2.1.6. Reserve accounts

These funds are invested in terms of the investment strategy of the Fund in the Income Fund. This provides capital protectionand liquidity.

2.2 Management of investments

The Board of Fund monitor the management and performance of the investments regularly. The Fund had investment policieswith Sanlam Life Insurance Limited, MMI Group Limited and Prescient Life Limited as well as directly held assets managed byAllan Gray Investment Services Limited, Prescient Investment Management Limited, Investec Asset Management Limited,Catalyst Fund Managers SA and Stanlib Asset Management Limited. Collective investment schemes investing in a diverse mixof assets are held with Abax Investments (Pty) Limited for the period ended 30 June 2015. The Stone Harbor and PIMCOinvestments were terminated in June 2015 and were replaced by a new global fixed-income investment managed byBrandywine, accessed through a Stanlib offshore unit trust at a fee of 0.75% p.a.

The net returns of these portfolios by the Fund for the period 1 July 2014 to 30 June 2015 were:

Asset Manager Analysis(12 months to 30 June 2015)

Gross Income % Fees % Net Income %

Portfolio A Prescient Income Fund 6.90% 0.17% 6.73%Portfolio B Momentum Smooth Bonus 20.04% 1.59% 18.45%Portfolio C 4.46% 0.30% 4.16%

Abax Equity Fund 10.70% 0.33% 10.37%Allan Gray - Domestic Equities 3.29% 0.35% 2.94%Allan Gray – Global Equities 9.78% (0.59%) 10.37%Catalyst – Listed Property 31.61% 0.51% 31.10%Investec – Domestic Equities (14.37%) 0.74% (15.11%)PIMCO – Global Corporate Bonds 10.51% 0.54% 9.97%Prescient - Bonds 8.94% 0.31% 8.63%Stone Harbor – Global EM Bonds 3.74% 0.63% 3.12%

Portfolio D27four Shari'ah Balanced Fund 5.40% 0.73% 4.67%

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

30 June 2015R

30 June 2014R

Abax Investments (Pty) Limited 239,109,916 217,065,670Allan Gray Investment South Africa Pty Ltd - Offshore 503,114,654 412,032,790Allan Gray Investment South Africa Pty Ltd - SA Equity 676,773,114 657,419,089Catalyst Fund Managers SA 106,093,019 80,892,080Investec Asset Management (Pty) Limited 341,760,300 402,429,267MMI Group Limited 1,178,506,220 909,315,001PIMCO Europe Limited - 87,408,474Prescient Investment Management (Pty) Limited 707,532,481 687,606,540Prescient Life Limited (27four) 74,842,527 71,435,339Sanlam Life Insurance Limited 4,228,064 2,596,851Stanlib Asset Management Limited 129,336,500 -Stone Harbor Investment Partners LP - 79,712,680

Total value of investments managed 3,961,296,795 3,607,913,781

- 15 -



3. MEMBERSHIP

3.1. Members, deferred pensioners, living annuitants and beneficiaries

Activemembers

Deferredpensioners

LivingAnnuitants

Beneficiaries

Number at the beginning of year 3,614 130 182 4Opening balance corrections (2) (2) - -Additions 464 - - -Transfers in 10 - - N/AWithdrawals (179) (2) - N/ARetirements (42) (3) - N/ADeaths (2) - (4) (1)Transfers to deferred pensioners (13) 13 - -Transfers to Living Annuities (50) - 50 -

Number at the end of the year 3,800 136 228 3

Local at the end of the year 3,800 136 228 3Foreign at the end of the year - - - -

Additions refer to new members of the Fund (excluding transfers in). Transfers in reflect members transferring into the Fundfrom other funds (see note 6). Transfers out refer to section 14 transfers to other funds. Transfers to deferred pensionersreflect resigning members who have elected to preserve their benefits. Transfers from deferred pensioners reflect membersthat previously preserved their benefits in the Fund and have now been re-employed by the participating employer. Transfersto Living Annuities reflect those retiring members electing to draw a pension from the Fund in the form of a Living Annuity.Withdrawals, retirements and deaths reflect departures from active members, deferred pensioners or living annuitants, as thecase may be, not considered in any other category above.

All active members, deferred pensioners and living annuitants are South African citizens or permanent residents. Although wewould not necessarily know details of domicile, we have no record of any deferred pensioner who has domicile outside ofSouth Africa. All active members and all living annuitants are domiciled in South Africa.

3.2. Corrections

The opening balance correction under the Active members column is as follows: 2 Members that were shown as activemembers in the prior year had exit dates pertaining to the prior reporting period.

The opening balance correction under the Deferred pensioners column is as follows: 2 Members that were shown as activemembers in the prior year had exit dates pertaining to the prior reporting period.

4. ACTUARIAL VALUATION

In accordance with the Rules of the Fund, the financial position of the Fund is examined and reported upon by the valuator atintervals not exceeding three years. For good governance, the Board of Fund requires an annual valuation to be performed.

The last statutory valuation was performed as at 30 June 2012. The actuary recommended that the Processing Error Reserveshould be set at a level of 0.25% of the market value of assets for Portfolio C and Portfolio D only and that the Data Reserveshould be set at a level of 0.5% of the market value of total assets.The Board accepted the recommended actions.t

The valuation report reflected a surplus of R4 506 000. The Board of Fund approved a proposal to allocate this surplus tocurrent members as at 30 June 2012 who were still active at the time the surplus was allocated.

An interim valuation was completed as at 30 June 2014 in which was found that the Fund was in a financally sound position,and that no surplus beyond agreed reserve levels had accrued.

- 16 -



5. SURPLUS APPORTIONMENT

The actuary and valuator of the Fund completed the valuation for the period 01 January 2008 to 30 June 2010 in 2011 and indoing so determined that there was a distributable surplus in the Fund as at 30 June 2010. The Board of Fund accepted therecommendations of the actuary / valuator that this surplus be distributed to members and former members and determined thedistribution method. The surplus was allocated to accumulated credits on 12 April 2012 for all categories of members in respectof whom the Fund held accumulated credits at any time after 31 December 2007 to 30 June 2010. Surplus payments are dueto former members in respect of whom the Fund held accumulated credits at anytime after 31 December 2007 to 30 June2010. At financial year end distributable surpluses (including allocated investment return on such surpluses) totalling R75,594(2014 : R99,150) remained to be paid to 31 former members (2014 : 42 ).

The Board of Fund have approved a proposal to allocate the surplus, as at 30 June 2012, to the current members. The surpluswas apportioned pro rata to the accumulated credits of the members of the Fund (including pensioners and deferred members)as at 30 June 2012.

6. HOUSING LOAN FACILITIES

The Fund Rules do not allow loans for any purpose from the Fund. The Fund Rules allow members to pledge a portion of theirnet withdrawal benefit as security for loans for housing from approved financial institutions. This is subject to the provisions ofthe Pension Funds Act 24 of 1956 and the provisions of the National Credit Act 34 of 2005. The total outstanding borrowing at30 June 2015 against which pledges had been made in prior years was R5,964,935 (2014 : R4,512,895); the number ofmembers involved was 69 (2014 : 65). Refer to note 5 of the financial statements.

7. INVESTMENTS IN PARTICIPATING EMPLOYERS

The Fund holds no investments in the participating employers.

8. SIGNIFICANT MATTERS

The Board of Fund have agreed to propose an important rule amendment to given affect to a member's right to become a "phased retiree",

retiring from the Fund or a date subsequent to retiring from service of the employer.

The purpose of Rule amendment no 5 is to provide for:

♦ Membership is now redefined to being entitled to a benefit from the Fund.

♦ The default position with regard to a Member who makes no election when he/she retires from service.

♦ The way Retirement benefits are described (Part 4) as the Rules must now provide for postponement of payment of

the benefit.

♦ The way the Member’s benefit is dealt with during the period of postponement and how costs are recovered.

♦ The way the Member’s benefit is dealt with during the period of postponement.

♦ The moment at which a surety furnished by the Fund for a housing loan lapses as it should lapse when the Member

retires from Service and not when the Retirement benefit is paid should payment be postponed.

♦ Rule 2.3(1) is also amended to provide clarity with regard to the day on which the Member’s benefit must be switched

to the money market portfolio and to do away with the reference to the seven day period. The inclusion of this in the

Rules poses the risk that the Fund's administration could become non-compliant with its Rules if the Administrator fails

to comply with this provision. Also any such instance must be reported in the Fund’s financial statements. This

limitation is therefore removed in order to protect the Fund in this regard and also because the service levels in this

regard are already contained in the Fund’s service level agreement with the Administrator.

The Rules are amended to allow the Fund to receive transfers from Preservation Funds.

♦ The Rules are amended to provide that the default position to apply when a Member makes no election with regard to

the payment of his/her withdrawal benefit when he/she leaves service is that the benefit must be preserved in the

Fund until the Member does make an election in this regard, and to provide a proper notice period when the Deferred

Pensioner wants to transfer his/her benefit.

♦ The Rules are amended to remove the restrictions with regard to the way additional voluntary contributions may be

made to the Fund.

♦ To afford a Member more time to make an election with regard to the investment of his/her benefits and contributions

before these are invested in the default investment portfolio selected by the Fund.

- 17 -


SCHEDULE FSTATEMENT OF NET ASSETS AND FUNDSAs at 30 June 2015

Note30 June 2015

R30 June 2014

RASSETS

Non-current assets 3,965,178,662 3,611,796,032Investments 2 3,961,296,795 3,607,913,781Investments supporting unclaimed benefits 3 3,881,867 3,882,251

Current assetsCash and money market funds 4 14,494,492 9,051,094

Total assets 3,979,673,154 3,620,847,126

FUNDS AND LIABILITIES

Members’ funds and surplus account 3,391,604,475 3,170,677,181Members’ individual accounts 19 3,386,953,138 3,167,437,417Amounts to be allocated 21 423,274 642,913Beneficiaries' term annuity policies 16 4,228,063 2,596,851

Reserves 547,209,303 386,733,172Living annuities 20 525,430,158 367,207,474Reserve accounts 20 21,779,145 19,525,698

Total funds and reserves 3,938,813,778 3,557,410,353

Non-current liabilitiesUnclaimed benefits 9 3,881,867 5,162,234

Current liabilities 36,977,509 58,274,539Transfers payable 7 - 426,340Benefits payable 8 36,419,325 57,339,290Accounts payable 10 558,184 508,909

Total funds and liabilities 3,979,673,154 3,620,847,126

- 18 -

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- 19 -


SCHEDULE HANOTES TO THE ANNUAL FINANCIAL STATEMENTSFor the year ended 30 June 2015

1. PRINCIPAL ACCOUNTING POLICIES

The following are the principal accounting policies used by the Fund. These policies have been applied consistently to all yearspresented, 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 Retirement Fundsin 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 specifically indicatedotherwise 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 arrangements becomebinding and is derecognised when the contractual rights to the cash flows of the instrument expire or when such rights aretransferred in a transaction in which substantially all risks and rewards of ownership of the instrument are transferred.

Financial instruments carried on the statement of net assets and funds, include cash and bank balances, investmentsreceivables and accounts payable.

Financial instruments are recognised on acquisition using trade date accounting, which includes transaction costs. Upon initialrecognition financial instruments are designated at fair value through the statement of changes in net assets and funds as theassets or liabilities are managed, evaluated and reported internally on a fair value basis and/or the designation eliminates orsignificantly 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 closing pricesat the close of business on the last trading day on or before the statements of net assets and funds date.

Bills and bonds

Bills and bonds comprise investments in government or provincial administration, local authorities, 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.

Equities

Equity instruments consist of equities with primary listing on the JSE, equities with secondary listing on the JSE, foreign listedequities and unlisted equities.

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

- 20 -


SCHEDULE HANOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)For the year ended 30 June 2015

Listed equities

Equity instruments are subsequently measured at fair value and the fair value adjustments are recognised in the statement ofchanges in net assets and funds. The fair value of equity instruments with standard terms and conditions and traded on activeliquid markets is based on regulated exchange quoted ruling closing prices at the close of business on the last trading day on orbefore the statements of net assets and funds date.

Preference shares

Listed preference shares

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

Insurance policies

Non - linked insurance policies

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

Linked or market-related policies

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

Beneficiaries' term annuity policies

Beneficiaries' term annuity policies purchased in the name of the Fund with the insurer are disclosed as an asset of the Fundand included under investments. The corresponding liabilities are included under funds and reserves. These term annuitypolicies are valued as equivalent to the financial soundness valuation as certified by the insurer.

Collective investment scheme

Investments 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 bythe number of units.

1.2.2. ACCOUNTS RECEIVABLE

Accounts receivable are financial assets measured initially at fair value and subsequently measured at amortised cost using theeffective 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 liquid investmentswith 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 attributable tothe liability and subsequently measured at amortised cost using the effective interest rate method.

1.3. RESERVES

Reserve accounts comprise particular amounts of designated income and expenses as set out in the Rules of the Fund and arerecognised in the year in which such income and expenses accrue to the Fund.

- 21 -



1.4. IMPAIRMENT

Financial assets carried at amortised cost

The Fund assesses at each statement of net assets and funds date whether or not there is objective evidence that a financialasset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment lossesare incurred only if there is objective evidence of impairment as a result of one or more events that have occurred after the initialrecognition of the asset (a loss event) and that loss event has an impact on the estimated future cash flows of the financialasset or group of financial assets that can be reliably estimated.

The Fund first assesses whether objective evidence of impairment exists individually for financial assets that are individuallysignificant. If the Fund determines that no objective evidence of impairment exists for an individually assessed financial asset,whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics andcollectively assesses them for impairment.

If there is objective evidence that an impairment loss has been incurred on loans and receivables or held to maturityinvestments carried at amortised cost, the amount of the loss is measured as the difference between the asset’s carryingamount and the present value of the estimated future cash flow (excluding future credit losses that have been incurred)discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount ofthe loss is recognised in the statement of changes in net assets and funds. If a loan has a variable interest rate, the discountrate for measuring any impairment loss is the current effective interest rate determined under contract. As a practical expedient,the Fund may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent year, the amount of the impairment loss decreases and the decrease can be related objectively to an eventoccurring after the impairment was recognised (such as improved credit rating), the previously recognised impairment loss isreversed in the statement of changes in net assets and funds.

Impairment of non-financial assets

Assets that have an indefinite useful life, for example land, are not subject to amortization and are tested annually forimpairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’snet carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs tosell and value in use. For this purpose of assessing impairment, assets are grouped at the lowest levels for which there areseparately identifiable cash flows.

Impairment of loans and receivables

A provision for impairment of loans and receivables is established when there is objective evidence that the fund will not be ableto collect all amounts due according to their original terms.

1.5. 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 which it isprobable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of the amount ofthe obligation can be made. Where the effect of discounting to present value is material, provisions are adjusted to reflect thetime 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.

- 22 -



1.6. CONTRIBUTIONS

Contributions are measured at the fair value of the consideration received or receivable.

Contributions are accrued and recognised as income in accordance with the actuarial recommendations, and the Rules of theretirement Fund. Contributions received are apportioned between retirement funding and funding for risk and other expenses.The apportionment is governed by the Rules of the Fund and actuarial recommendations.

Voluntary contributions are recognised when they are received from annual payments or accrued where monthly recurringpayments are made.

Any contributions outstanding at the end of the reporting year are recognised as a current asset – contribution receivable. Anycontributions received in advance at the end of the reporting year are recognised as a current liability – accounts payable.

Contributions transferred from surplus accounts

Contributions transferred from surplus accounts include any contributions that are funded from the surplus accounts and relatesto contribution holiday after surplus apportionment has been approved and the corresponding approval of the utilization of theemployer and member surplus accounts.

Interest charged on late payment of contributions

Compound interest on late payments or unpaid amounts and values shall be calculated for the year from the first day of themonth following the expiration for the year in respect of which the relevant amounts or values are payable or transferable untilthe date of receipt by the Fund.

1.7. FOREIGN CURRENCIES

Transactions in foreign currencies are accounted for at the ruling rate of exchange on the transaction date. Assets and liabilitiesin 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.

1.8. INVESTMENT INCOME

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 net assetsand 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 in netassets 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.

- 23 -



1.9. BENEFITS

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

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

Reinsurance proceeds

Reinsurance proceeds are measured at the fair value of the consideration received or receivable and are accrued andrecognised as income at the same time as the recognition of the related claim.

Internal Transfer to Living Annuities at Retirement

The Fund Rules provide members who retire from the Fund with an option to commute the accumulated credit for a cashpayment and/or purchase an annuity in the manner permitted by the Rules either from the Fund or from an insurer. The benefitpayable to members electing to purchase an annuity from the Fund are disclosed first as a benefit payable and then a transferto the Fund.

1.10. TRANSFERS TO AND FROM THE FUND

Section 14 and 15B transfers

Section 14 and 15B transfers to or from the Fund, under the Pension Fund Act 24 of 1956, are recognised on the date ofapproval of the scheme/arrangement of transfer of business by the Financial Services Board, as contained in the approvalcertificate from the Registrar. The transfers are measured at the values as per the section 14 application or the value of thetransfer at effective date of transfer adjusted for investment return or late payment interest as guided by the application.

Individual Transfers

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. The transfer is measured at the Recognition of Transfer valuetogether with late payment interest from the transferor fund where applicable.

Internal Transfer to Living Annuities at Retirement

The Fund Rules provide members who retire from the Fund with an option to commute the accumulated credit for a cashpayment and/or purchase an annuity in the manner permitted by the Rules either from the Fund or from an insurer. The benefitpayable to members electing to purchase an annuity from the Fund are disclosed first as a benefit payable and then a transferto the Fund

1.11 ADMINISTRATION EXPENSES

Expenses incurred in the administration of retirement funds are recognised in the statement of changes in net assets and fundsin 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 overpayment occurred, the applicable amount will be disclosed under theaccounts receivable note.

1.12. ACCOUNTING POLICIES, CHANGING IN ACCOUNTING ESTIMATES AND ERRORS

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

- 24 -

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fair

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gh

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t fa

ir

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licie

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fair

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gh

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tem

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ne

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ve

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ir

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gh

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g t

o R

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ES

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PP

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IME

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tes

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l

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reig

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rre

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us

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scie

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me

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t fa

ir

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tem

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k L

imite

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fair

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- 25 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

HA

NO

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NU

AL

FIN

AN

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ME

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co

nti

nu

ed

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or

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ye

ar

en

de

d 3

0 J

un

e 2

01

5

4.

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AN

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l

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reig

n

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cu

rre

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nk L

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fair

va

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gh

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nt

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me

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nd

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ir

va

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gh

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tem

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ne

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tal

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US

ING

LO

AN

GU

AR

AN

TE

ES

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e F

un

d d

oe

s n

ot

cu

rre

ntly g

ran

t g

ua

ran

tee

s t

o A

BS

A B

an

k L

imite

d f

or

loa

ns t

o m

em

be

rs.

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vio

usly

gra

nte

d g

ua

ran

tee

s a

re a

pp

lica

ble

to

20

(2

01

4:

26

) m

em

be

rs.

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e t

ota

l o

uts

tan

din

gb

orr

ow

ing

fro

m A

BS

A B

an

k L

imite

d a

t 3

0 J

un

e 2

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ag

ain

st

wh

ich

ple

dg

es h

ave

be

en

ma

de

, w

as R

26

3,2

74

(

20

14

: R

42

9,7

05

).

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erm

s o

f th

e F

un

d R

ule

s a

gu

ara

nte

e m

ay n

ot

exce

ed

50

% o

f th

e p

ost

tax c

ash

be

ne

fit

tha

t a

me

mb

er

wo

uld

re

ce

ive

on

with

dra

wa

l.

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e F

un

d g

ran

ted

gu

ara

nte

es t

o F

NB

lim

ite

d f

or

loa

ns g

ran

ted

to

49

(2

01

4 :

39

) m

em

be

rs.

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e t

ota

l o

uts

tan

din

g b

orr

ow

ing

fro

m F

NB

at

30

Ju

ne

20

15

, a

ga

inst

wh

ich

ple

dg

es h

ave

be

en

ma

de

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as R

5,7

01

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1

(2

01

4 :

R4

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3,1

90

).

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erm

s o

f th

e F

un

d R

ule

s a

gu

ara

nte

e m

ay n

ot

exce

ed

50

% o

f th

e p

ost

tax c

ash

be

ne

fit

tha

t a

me

mb

er

wo

uld

re

ce

ive

on

with

dra

wa

l.

- 26 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

HA

NO

TE

S T

O T

HE

AN

NU

AL

FIN

AN

CIA

L S

TA

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ME

NT

S (

co

nti

nu

ed

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or

the

ye

ar

en

de

d 3

0 J

un

e 2

01

5

6.

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AN

SF

ER

S F

RO

M O

TH

ER

FU

ND

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AB

CD

A+

B+

C-D

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. o

fm

em

be

rsA

t b

eg

inn

ing

of

the

ye

ar

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ns

fers

ap

pro

ve

dR

etu

rn o

nT

ran

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rsA

ss

ets

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ns

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ed

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en

d o

f ye

ar

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div

idu

al tr

an

sfe

rs in

10

-1

,35

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06

-(1

,35

9,8

06

)-

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mp

su

ms o

n r

etire

me

nts

- I

nte

rna

ltr

an

sfe

rs t

o L

ivin

g A

nn

uitie

s*

49

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31

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40

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31

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2,2

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)-

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ath

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ne

fits

- I

nte

rna

l tr

an

sfe

rs t

oL

ivin

g A

nn

uitie

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-

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tal

60

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nsfe

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tem

en

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ge

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efe

r to

acco

un

tin

g p

olic

y 1

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nd

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- 27 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

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TIR

EM

EN

T F

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D

SC

HE

DU

LE

HA

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S T

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AL

FIN

AN

CIA

L S

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ME

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co

nti

nu

ed

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or

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ye

ar

en

de

d 3

0 J

un

e 2

01

5

7.

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AN

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ER

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ER

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ND

S

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CD

A+

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C-D

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. o

fm

em

be

rsA

t b

eg

inn

ing

of

the

ye

ar

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ns

fers

ap

pro

ve

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etu

rn o

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ets

tra

ns

ferr

ed

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en

d o

f ye

ar

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ivid

ua

l tr

an

sfe

rs o

ut:

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llan

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y L

ivin

g A

nn

uity P

olic

y1

42

6,3

40

--

(42

6,3

40

)-

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tal

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0-

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26

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0)

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nsfe

rs a

pp

rove

d (

B)

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etu

rn o

n t

ran

sfe

rs (

C)

-

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tem

en

t o

f ch

an

ge

s in

ne

t a

sse

ts a

nd

fu

nd

s-

- 28 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

HA

NO

TE

S T

O T

HE

AN

NU

AL

FIN

AN

CIA

L S

TA

TE

ME

NT

S (

co

nti

nu

ed

)F

or

the

ye

ar

en

de

d 3

0 J

un

e 2

01

5

8.

BE

NE

FIT

PA

YM

EN

TS

8.1

.B

en

efi

ts -

cu

rre

nt

me

mb

ers

AB

CD

EA

+B

+C

-D-E

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be

gin

nin

g o

fye

ar

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ne

fits

fo

rc

urr

en

t p

eri

od

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turn

all

oc

ate

dP

aym

en

tsT

ran

sfe

rre

d t

ou

nc

laim

ed

be

ne

fits

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en

d o

f ye

ar

RR

RR

RR

Pe

nsio

ns:

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ing

an

nu

ita

nts

-2

2,1

71

,46

9-

(22

,17

1,4

69

)-

-T

erm

an

nu

ity p

aym

en

ts :

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ne

ficia

rie

s-

27

7,4

53

-(2

77

,45

3)

--

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mp

su

ms o

n r

etire

me

nts

-

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ll b

en

efit

36

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24

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90

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8-

(12

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2)

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8,2

70

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tern

al tr

an

sfe

r to

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ing

an

nu

itie

s-

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1,6

62

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(13

1,6

62

,24

0)

--

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mp

su

ms b

efo

re r

etire

me

nt

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ath

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ne

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ctive

me

mb

ers

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15

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ith

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wa

l b

en

efits

: A

ctive

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ers

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etr

en

ch

me

nt

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17

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mp

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ath

be

ne

fits

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uita

nts

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6,7

77

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77

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tal

(8.1

)5

7,2

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03

21

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92

-(3

41

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3,2

07

)-

36

,41

9,3

25

8.2

.B

en

efi

ts i

n t

erm

s o

f s

urp

lus

ap

po

rtio

nm

en

tE

nh

an

ce

me

nts

to

20

10

fo

rme

r m

em

be

rs9

9,1

50

--

(23

,21

6)

(75

,93

4)

-

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tal

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ne

fits

(8

.2)

99

,15

0-

-(2

3,2

16

)(7

5,9

34

)-

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tal

(8.1

+ 8

.2)

57

,33

9,2

90

32

1,1

22

,39

2-

(34

1,9

66

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3)

(75

,93

4)

36

,41

9,3

25

To

tal B

en

efits

allo

ca

ted

(B

)3

21

,12

2,3

92

Re

turn

allo

ca

ted

(C

)-

Sta

tem

en

t o

f ch

an

ge

s in

ne

t a

sse

ts a

nd

fu

nd

s3

21

,12

2,3

92

♦B

enefits

for

the c

urr

ent

period inclu

de investm

ent

retu

rns t

o t

he a

mount

of

R2,1

52,0

84

whic

h a

ccru

e

on t

he m

em

bers

benefits

until th

e t

ax d

irective is o

bta

ined.

This

retu

rn is d

efined a

s inclu

ded in t

he

benefit

paid

to t

he m

em

ber.

Benefits

for

curr

ent

period a

lso inclu

de 2

active m

em

bers

(R

591,4

88)

and 2

defe

rred m

em

bers

(R

124,5

13)

who h

ad e

xit d

ate

s p

ert

ain

ing t

o t

he p

rior

report

ing p

eriod.

♦Lum

p s

um

s b

efo

re r

etire

ment

- D

eath

benefits

for

active m

em

bers

of

R3,0

09,7

87 inclu

des r

ein

sura

nce p

roceeds o

f R

1,2

47,7

06.

♦E

nhancem

ents

to 2

010 f

orm

er

mem

bers

com

prises t

he 2

010 a

ctu

arial surp

lus p

ayable

to m

em

bers

. T

he F

und is in t

he p

rocess o

f tr

acin

g t

he f

orm

er

mem

bers

rela

ting t

o t

he u

npaid

2010 a

ctu

arial surp

lus.

♦R

etu

rn a

llocate

d r

epre

sents

bank inte

rest

that

a m

em

ber

receiv

es a

fter

the m

em

ber

cre

dit h

as b

een d

isin

veste

d f

rom

the e

xit p

roduct,

aft

er

obta

inin

g t

he t

ax d

irective,

and r

em

ain

s u

nsett

led f

or

more

than

five d

ays.

- 29 -



9. UNCLAIMED BENEFITS

No. of members 30 June 2015R

30 June 2014R

Balance at the beginning of the year 231 5,162,234 4,163,326Transferred from benefits payable - 1,279,983Transferred from surplus benefits payable 31 75,994 -Investment income allocated 242,157 394,711Less:Administration expenses (32,079) (1,593)2001 surplus benefits paid (19) (113,169) (48,329)Unclaimed benefits paid (5) (1,453,270) (625,864)

Balance at the end of the year238 3,881,867 5,162,234

Note: Unclaimed benefits arise when the member has not for 24 months:��

��

��

� - exercised a choice in respect of the payment by the Fund of a benefit.

10. ACCOUNTS PAYABLE

30 June 2015R

30 June 2014R

Actuarial and consulting fees 93,480 88,920Administration fees - Deferred pensioners - 5,965Administration fees - Housing loans 1,300 -Administration fees - Unclaimed benefits 1,360 2,450Annuity purchase fee 2,064 -Audit fees 404,700 404,700Communication fees 55,280 -Principal Officer fees - 6,874

Total 558,184 508,909

- 30 -



11. CONTRIBUTIONS

A B C D A+B+C-DAt beginning

of the yearTowards

retirementTowards

reinsuranceand expenses

Contributionsreceived

At end of theyear

R R R R R

Member contributions received - 37,015 192,568 (229,583) -Employer contributions received - 215,058,858 70,841,852 (285,900,710) -

Total - 215,095,873 71,034,420 (286,130,293) -

Towards retirement 215,095,873Towards reinsurance and expenses 71,034,420

Statement of changes in net assets and funds 286,130,293

The allocation of employer contributions between "Towards retirement" and "Towards reinsurance and expenses" in note 11 areaccording to Fund Rules. Where a member is on Leave Without Pay the contribution is made by the member or employer. Actualcontributions towards reinsurance and expenses were substantially less, the balance being added to retirement savings. Seenotes 17 and 18 .

Refer to the contribution tables in section 1.3 of the Report of the Board of Fund.

ActiveMembers

DisabilityMembers

Leave WithoutPay - Member

Leave Without Pay - Employer

Total

R R R R R

Employer contributions toretirement savings 202,796,580 945,969 - 335,514 204,078,063

Employee contributions toretirement savings - - 37,015 - 37,015

Additional VoluntaryContributions - Employer 10,980,795 - - - 10,980,795

Contributions - Expenses /Reinsurance 70,376,289 333,828 192,568 131,735 71,034,420

GLA 11,642,280 58,732 34,342 23,041 11,758,395

- Premiums 10,810,104 58,537 32,125 13,631 10,914,397

- Risk Cost Savings 832,176 195 2,217 9,410 843,998

General Reserve 4,200,496 18,705 11,478 7,732 4,238,411

Administration Costs 2,141,919 9,990 5,841 3,937 2,161,687Discretionary Retirement Savings

52,391,594 246,401 140,907 97,025 52,875,927

284,153,664 1,279,797 229,583 467,249 286,130,293

- 31 -



12. NET INVESTMENT INCOME

30 June 2015R

30 June 2014R

Income from investments 276,206,850 232,153,509� Dividends 36,578,074 27,441,964� Interest 60,401,206 52,175,202� Income from insurance policies 179,227,570 152,536,343Realised profits 136,517,287 130,399,472Adjustment to fair value (107,166,641) 344,698,809

305,557,496 707,251,790Less: Expenses incurred in managing investments (12,532,782) (8,651,639)

Total 293,024,714 698,600,151

The "Expenses incurred in managing investments" are made up of the following payments to investment managers.

Investment manager30 June 2015

R30 June 2014

R

Allan Gray Investment South Africa Pty Ltd (2,248,045) (2,227,786)

Allan Gray Investment South Africa Pty Ltd - Offshore performance rebate (305) 2,824,094

Catalyst Fund Managers SA (395,321) (346,478)

Investec Asset Management (Pty) Limited (3,147,035) (3,571,638)

MMI Group Limited (5,128,337) (3,994,081)

Prescient Investment Management (Pty) Limited (1,722,046) (1,457,269)

Sanlam Life Insurance Limited (2,925) (2,782)

Stone Harbor Investment Partners LP 111,232 124,301

(12,532,782) (8,651,639)

The collective investment scheme fees are netted against investment income in note 12 above, and such fees are not included inthe schedule of expenses incurred in managing investments.

13. OTHER INCOME

30 June 2015R

30 June 2014R

Life stage correction 878,243 -

Total 878,243 -

- 32 -



14. ADMINISTRATION EXPENSES

Note30 June 2015

R30 June 2014

R

Actuarial fees 504,336 478,344Administration fees 2,193,893 1,961,030Audit fees - Audit services 404,700 404,700Audit fees - prior period over / (under) provision 6,081 4,048Consultancy fees 712,044 549,480Fidelity insurance 60,000 45,000Other Expenses 778,533 753,756FSB levies 62,809 60,684Reserve Bank reporting fees 26,270 12,576General office expenses 157,390 110,659Switch fees - active members * 18,040 22,330Bank charges * 15,708 31,189Communication fees 290,165 207,554Tracing fees 29,250 271Administration fees - deferred pensioners * 21,129 18,231Administration fees - Housing loan guarantee * 1,300 -Administration fees - living annuitants * 102,952 73,869Legal fees 19,950 -Implementation of Life stage model fees 33,570 -Surplus apportionment costs - 216,393Principal Officer office expenses 14.3. 614,710 581,041Other Staff expenses 14.2. 1,104,114 1,004,107Board of Fund expenses 14.1. 183,472 35,735

Total 6,561,883 5,817,241

* These expenses have been charged directly to members and former members (including unclaimed benefits) in terms of theFund Rules which now provide for these members to bear a portion of Fund costs.

14.1. Board of Fund expenses30 June 2015

R30 June 2014

R

Trustee Training 9,000 35,735Retirement Seminars Conference fees 105,450 -Operational expenses 69,022 -

Total 183,472 35,735

14.2. Other staff expenses30 June 2015

R30 June 2014

R

Lawyer Association fees - 5,250Conference fees 3,629 6,874Training fees 6,834 5,520Institute of Retirement Funds Africa 14,193 -Other staff remuneration 1,079,458 986,463

Total 1,104,114 1,004,107

- 33 -



14.3. Principal Officer office expenses30 June 2015

R30 June 2014

R

Principal Officer remuneration 613,915 559,290Travel and accommodation - 2,730Pension Lawyers Association fee 510 5,350Batseta membership fee and conference attendance 285 13,671

Total 614,710 581,041

14.4. Total cost analysis

The Fund’s total expenses (asset management fees as found in note 12 and administration expenses as found in note 13) areexpressed as a percentage of the average total assets of R3,800,260,140 for the year (2014/2013: R3,243,015,990 of averagetotal assets). These expense ratios exclude the reinsurance premiums indicated on the statement of changes in net assets andfunds and asset management fees paid to collective investment schemes (which are netted off against investment income asexplained in note 12). Reinsurance premiums are not related to total assets under management and are rather expressed as apercentage Rand cover per month: 2014/2015 0.138 per R1,000pm and 2014/2013 0.138 per R1,000pm.

30 June 2015R

30 June 2014R

Fund Administrator %0.06 %0.06Asset management * %0.33 %0.27Other administrative expenses %0.11 %0.12

Total %0.50 %0.45

* The asset management fee increased by 45% during the 2015 financial year compared to the 2014 financial year. Theincrease is as a result of a once-off performance fee rebate of R 2,824,094 received during the 2014 financial year.

15. PRIOR PERIOD ADJUSTMENTS

30 June 2015R

30 June 2014R

Beneficiary term annuity policies - bought in the name of the Fund - (10,735,487)

Total - (10,735,487)

The prior period adjustment is as follows: 17 beneficiaries for whom term annuities had been purchased in a prior reportingperiod was incorrectly disclosed under the beneficiaries in the prior reporting period. After an investigation it was establishedthat these term annuities were not bought in the name of the Fund.

16. BENEFICIARIES' TERM ANNUITY POLICIES

Financial liabilities30 June 2015

R30 June 2014

R

At beginning of period 2,596,851 12,581,380Opening balance adjustment - (10,735,487)Actuarial adjustment including policy income 1,911,590 1,048,381Administration expenses (2,925) (282)Monthly term annuity payments : Beneficiaries (277,453) (297,141)

4,228,063 2,596,851

- 34 -



17. RISK MANAGEMENT POLICIES

17.1

�

�

�

�

�

�

�

�

17.2

�

Board of Fund approach to risk management

Having regard to the below areas of risk and the governance recommendations of Pension Fund Circular 130, the Board ofFund have adopted an active approach to risk management.

A risk management policy, outlining some of the governance and risk areas that the Board of Fund need to consider, wasadopted by the Board of the Fund on 20 June 2014. Included as an Annexure to the risk policy is a risk matrix, which identifiesthe activities of the UCTRF and the associated risk. All risks included in the matrix are scored in terms of probability ofhappening and impact, and are reviewed annually by the Board of Fund.

The risk categories are as follows:

Regulatory compliance

Risk that the various regulatory, legal and governance requirements are not complied with.

Fund governance

The Board of Fund are not adequately discharging their duties in terms of the Pension Funds Act, leading to poor anduninformed decision making.

Fund operations

The risk is that the UCTRF office does not comply with the Financial Services Board in terms of management and governance.

Investments

The risk is that the Board of Fund design an investment strategy that is not aligned to investment targets, or the Fund Rules.

Member benefits

The risk is that the member benefits are inadequate to meet the member’s needs.

S37C death benefits

The risk is that the Board of Fund decisions in terms of allocation of death benefits is not according to the Fund Rules, and arechallenged.

Living Annuities

The risk is that members exercise poor investment choices, based on poor, late or misleading information or that decisions aretaken contrary to sound advice.

Communication

That communication is not correct, not easily understood or the medium used to communicate is not effective, which leads topoor decision making by the members.

Financial statement risk

Contractual risk

The risk that contracts or agreements between the UCTRF and various internal and external service providers are either not inplace, incomplete, misunderstood, not aligned to the legal requirements or not used or monitored.

� Solvency risk

Solvency risk is the risk that the investment returns on assets will not be sufficient to meet the Fund's contractual obligations tomembers.

The nature of the Fund (defined contribution, member investment choice) is such that this risk is insubstantial. The investmentchannels (in particular the smoothed bonus and the income channel) have been designed to further reduce solvency risk.

- 35 -



17. RISK MANAGEMENT POLICIES (Continued)

� Credit risk

Credit risk is the risk that a counter-party to a financial instrument will fail to discharge an obligation, and cause the Fund toincur a financial loss. The Board of Fund reviews the position of the insurer providing the smoothed bonus investment channelon a regular basis, paying attention to such measures as its capital adequacy ratio and shareholder funds.

The Board of Fund monitors receivable balances on an ongoing basis with the result that the Fund's exposure to bad debts isnot significant. An appropriate level of provision is maintained.

� Legal risk

Legal risk is the risk that the Fund will be exposed to contractual obligations for which no provision has been made. Legalrepresentatives of the Fund monitor the drafting of contracts to ensure that rights and obligations of all parties are clearly setout.

� Cash flow risk

Cash flow risk is the risk that future cash flows associated with monetary financial instruments will fluctuate in amount. In theinvestment channel where the risk might arise (the income portfolio) financial instruments are held to maturity.

� Currency risk

Currency risk is the risk that the value of an instrument will fluctuate in Rands owing to changes in foreign exchange rates. TheFund's exposure to currency risk is mainly in respect of foreign investments made on behalf of members of the Fund for thepurpose of seeking desirable international diversification of investments. Direct and indirect foreign investments do not exceedapproved Reserve Bank limits, thus minimising the risk.

� Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in raising funds to meet commitments associated with financialinstruments. The nature of the investments allowed by the Fund's investment policies is such as to limit the Fund's exposure torisk.

� Market risk

Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices or marketinterest rates. This is implicit in the Balanced Fund Portfolio. Members can reduce this risk by investing in the smoothed bonusand income portfolios.

� Investments

Investments in equities are valued at fair value and therefore susceptible to market fluctuations. Investments are managed withthe aim of maximising the Fund's returns while limiting risk to acceptable levels within the framework of statutory requirements.

- 36 -



18. RELATED PARTY TRANSACTIONS

The following transactions between the participating employer and the fund occurred during the year

- The participating employers made effective contributions to the Fund for members' retirement and towards the Fund'sexpenses and reserves to the value of R268,635,659 and R17,265,051 respectively. (2014: R242,136,298 andR15,521,240).

30 June 2015

R

30 June 2014

RRetirement Expenses Retirement Expenses

Employer Contributions (Refer note 11 ) 215,058,858 70,841,852 194,894,830 62,762,708Transferred to members (Refer note17.1) 53,576,801 (53,576,801) 47,241,468 (47,241,468)

268,635,659 17,265,051 242,136,298 15,521,240

- UCTRF office expenses (including Principal Officer office expenses) of R1,902,296 (2014: R1,620,883) were paid to the University of Cape Town. The Principal Officer and staff of the office of the Principal Officer are employed by the University of Cape Town. The University of Cape Town invoices the Fund for these costs.

18.1. TRANSFERRED TO MEMBERS

30 June 2015

R

30 June 2014

RRetirement Expenses Retirement Expenses

Discretionary Retirement Savings * 52,735,020 (52,735,020) 46,437,082 (46,437,082)Risk Cost Savings* 841,781 (841,781) 804,386 (804,386)* (Refer note 11 ) 53,576,801 (53,576,801) 47,241,468 (47,241,468)

19. MEMBERS' INDIVIDUAL ACCOUNTS

30 June 2015R

30 June 2014R

Members' Individual Accounts - Active members 3,274,428,119 3,052,452,250Members' Individual Accounts - Deferred pensioners 111,913,414 99,587,521Timing difference between the administrator and the asset manager 611,605 15,397,646

Total 3,386,953,138 3,167,437,417

- 37 -

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- 38 -

SCHEDULE HB REPORT OF THE VALUATOR Particulars of financial condition of the fund:

1. Net assets available for benefits as at 30 June 2014 were R 3 557 410 000 (a).

2. The actuarial value of the net assets available for benefits, for the purposes of comparison with the actuarial present value of promised retirement benefits, was R 3 557 410 000 as at 30 June 2014.

3. The actuarial present value of promised retirement benefits(b), split into vested(c) and non-vested benefits are R 3 537 884 000 (all vested) as at 30 June 2014.

4. The total of the contingency reserve account balances recommended to and accepted by the Trustees was R 19 526 000. 5. Details of the valuation method adopted (including that in respect of any contingency reserve) and details of any changes since the

previous summary of report. Benefit obligations are the sum of the market values or fair values of the Accumulated Credits of in-service members, deferred

pensioners and pensioners (living annuitants) as at 30 June 2014. Assets backing benefit obligations and contingency reserves were taken at market value. There has been no change to the valuation method since the 30 June 2012 statutory valuation.

6. Details of the actuarial basis adopted (including that in respect of any contingency reserve) and details of any changes since the

previous summary of report. Assets at market/fair value including non-vested bonuses where applicable. Member Accumulated Credits at face value reflecting

market/fair value of corresponding assets. Data reserve targeted at 0.50% of total assets (unchanged since 2012 valuation). Processing Error reserve targeted at 0.25% of total assets in market-linked Portfolios C and D only (unchanged since 2012 valuation). Surplus Apportionment Expense Reserve set equal to accumulated value brought forward. General Reserve targeted at 6 months� estimated operating expenses (unchanged). Actual account balances have been used where these are lower than the targeted levels.

7. Any other particulars deemed necessary by the valuator for the purposes of this summary. The valuation report shows a nil surplus as at 30 June 2014.

8. A statement as to whether the Fund was in a sound financial condition for the purposes of the Pension Funds Act, 1956. I certify that the Fund was financially sound for the purposes of the Pension Funds Act as at 30 June 2014.

Prepared by me:

Erich Johann Potgieter (Towers Watson (Pty) Ltd) VALUATOR Fellow of the Actuarial Society of South Africa In my capacity as the valuator of the Fund and as an employee of Towers Watson (Pty) Ltd.

REMARKS For the purposes of this summary of report: (a) Net assets available for benefits are the fair value of the assets of the Fund less liabilities other than the actuarial present value of

promised retirement benefits. (b) The actuarial present value of promised retirement benefits means:

i. The actuarial liabilities in respect of past service benefits (including accrued bonus service) of active members, with due allowance for future salary increases where these affect the benefits in respect of past service, and with due allowance for increases in pension and deferred pensions at rates consistent with the pension increase policy of the Fund;

ii. The actuarial liabilities in respect of pensions in course of payment and deferred pensions, including any contingent annuity payable on the death of a pensioner, with due allowance for increases at rates consistent with the pension increase policy of the Fund; and

iii. Any other accrued liability. (c) Vested benefits are benefits, the right to which, under the conditions of the Fund, are not conditional upon continued employment.

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s/in

str

um

en

ts h

eld

in

th

e C

olle

ctive

In

ve

stm

en

t S

ch

em

e c

om

plie

d w

ith

th

e a

sse

t sp

rea

din

g lim

its c

on

tain

ed

in

Re

gu

latio

n 2

8 b

ut

the

Fu

nd

wa

s u

na

ble

to

ob

tain

a r

ep

ort

fro

m t

he

a

ud

ito

r o

f th

e M

an

ag

em

en

t C

om

pa

ny c

on

firm

ing

th

e a

ccu

racy o

f th

e R

eg

ula

tio

n 2

8 c

om

plia

nce

ce

rtific

ate

; o

r-

the

se

cu

ritie

s/in

str

um

en

ts h

eld

in

th

e C

olle

ctive

In

ve

stm

en

t S

ch

em

e d

id n

ot

co

mp

ly w

ith

th

e a

sse

ts s

pre

ad

ing

lim

its c

on

tain

ed

in

Re

gu

latio

n 2

8.

- 54 -


SCHEDULE IA - SCHEDULES PERTAINING TO THE ANNUAL FINANCIAL STATEMENTS (continued)For the year ended 30 June 2015

A CASH

Instrument

Local

Fair Value30 June 2015

RLocal notes, deposits, money market instruments issued by a SouthAfrican Bank, margin accounts, settlement accounts with an exchange andIslamic liquidity management financial instruments

290,776,986

Notes and coins; any balance or deposit in an account held with a SouthAfrican bank; 80,792,408

List issuers/entities which exceeds 5% of total assets 80,792,408A money market instrument issued by a South African bank including anIslamic liquidity management financial instrument 194,632,610

List issuers/entities which exceeds 5% of total assets 194,632,610Any positive net balance in a margin account with an exchange

4,547,632List issuers/entities which exceeds 5% of total assets 4,547,632

Any positive net balance in a settlement account with an exchange,operated for the buying and selling of assets 10,804,336

List issuers/entities which exceeds 5% of total assets 10,804,336ForeignForeign balances or deposits, money market instruments issued by aforeign bank including Islamic liquidity management financial instruments

-Any balance or deposit held with a foreign bank -

List issuers/entities which exceeds 5% of total assets -Any balance or deposit held with an African bank -A money market instrument issued by a foreign bank including an Islamicliquidity management financial instrument

-

Total 290,776,986

B COMMODITIES

Instrument Local or foreign Holding number Holding%

Fair valueR

LocalGold (including Kruger Rands)

List issuers/entities which exceeds 5% of total assets Local - 6,209,316

6,209,316Other

Palladium Local - 6,861,761Platinum Local - 17,429,330

24,291,091

30,500,407

Total 30,500,407

- 55 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

IA

- S

CH

ED

UL

ES

PE

RT

AIN

ING

TO

TH

E A

NN

UA

L F

INA

NC

IAL

ST

AT

EM

EN

TS

(c

on

tin

ue

d)

Fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

15

CD

EB

T I

NS

TR

UM

EN

TS

IN

CL

UD

ING

IS

LA

MIC

DE

BT

IN

ST

RU

ME

NT

S

Ins

tru

me

nt

Lo

ca

l o

r fo

reig

nS

ec

ure

d/

Un

se

cu

red

Iss

ue

d/

Gu

ara

nte

ed

Re

de

mp

tio

nva

lue

R

Fa

ir v

alu

e

R

Go

ve

rnm

en

t d

eb

t:D

eb

t in

str

um

en

ts i

ss

ue

d b

y a

n l

oa

ns

to

th

e g

ove

rnm

en

t o

f th

e R

ep

ub

lic

an

d a

ny

de

bt

or

loa

n g

ua

ran

tee

d b

y t

he

Re

pu

bli

c

Re

pu

blic

Of

So

uth

Afr

ica

Lo

ca

lSe

cu

red

-7

5,3

48

,31

8

75

,34

8,3

18

Lis

ted

on

an

ex

ch

an

ge

wit

h a

n i

ss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f R

20

bil

lio

n o

rm

ore

, o

r a

n a

mo

un

t o

r c

on

dit

ion

s a

s p

res

cri

be

d

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

30

1,2

17

,82

9

30

1,2

17

,82

9

No

t li

ste

d o

n a

n e

xc

ha

ng

e

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

1,2

78

,31

6

1,2

78

,31

6

Pu

bli

c d

eb

t:D

eb

t in

str

um

en

ts i

ss

ue

d o

r g

ua

ran

tee

d b

y a

pu

bli

c e

nti

ty u

nd

er

the

Pu

bli

cF

ina

nc

e M

an

ag

em

en

t A

ct,

19

99

(A

ct

No

. 1

of

19

99

) a

s p

res

cri

be

d:-

De

ve

lop

me

nt

Ba

nk o

f S

ou

th A

fric

aL

oca

l-

26

,18

6,4

05

Ind

ustr

ial D

eve

lop

me

nt

Co

rpo

ratio

n o

f S

ou

th A

fric

aL

oca

l-

7,0

86

,60

9R

an

d W

ate

r B

oa

rdL

oca

l-

6,2

90

,34

8T

he

So

uth

Afr

ica

n N

atio

na

l R

oa

ds A

ge

ncy L

imite

dL

oca

l-

15

,16

7,9

42

Tra

ns-C

ale

do

n T

un

ne

l A

uth

ori

tyL

oca

l-

2,2

67

,28

3U

mg

en

i W

ate

rL

oca

l-

52

,95

7,0

82

10

9,9

55

,66

9

Co

rpo

rate

de

bt

(ex

clu

din

g d

eb

en

ture

s):

De

bt

ins

tru

me

nts

is

su

ed

or

gu

ara

nte

ed

by a

n e

nti

ty t

ha

t h

as

eq

uit

y l

iste

d o

n a

ne

xc

ha

ng

eL

iste

d o

n a

n e

xc

ha

ng

e

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

45

,90

4,8

20

45

,90

4,8

20

No

t li

ste

d o

n a

n e

xc

ha

ng

e

La

nd

an

d A

gri

cu

ltu

ral D

eve

lop

me

nt

Ba

nk o

f S

AL

oca

l-

4,0

36

,05

6

4,0

36

,05

6

- 56 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

IA

- S

CH

ED

UL

ES

PE

RT

AIN

ING

TO

TH

E A

NN

UA

L F

INA

NC

IAL

ST

AT

EM

EN

TS

(c

on

tin

ue

d)

Fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

15

De

be

ntu

res

:O

the

rL

iste

d o

n a

n e

xc

ha

ng

e:

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

5,7

41

,72

4

5,7

41

,72

4

TO

TA

L D

EB

T I

NS

TR

UM

EN

TS

IN

CL

UD

ING

IS

LA

MIC

DE

BT

IN

ST

RU

ME

NT

S5

43

,48

2,7

32

DIN

VE

ST

ME

NT

AN

D O

WN

ER

OC

CU

PIE

D P

RO

PE

RT

IES

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f R

10

bil

lio

n o

r m

ore

, o

r a

n a

mo

un

t o

rc

on

dit

ion

s a

s p

res

cri

be

d

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

89

,94

2,3

95

89

,94

2,3

95

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f b

etw

ee

n R

3 b

illi

on

an

d R

10

bil

lio

n,

or

� ��a

n a

mo

un

t o

r c

on

dit

ion

s a

s p

res

cri

be

d

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

11

,67

7,5

51

11

,67

7,5

51

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f le

ss

th

an

R3

bil

lio

n,

or

an

am

ou

nt

or

co

nd

itio

ns

as

pre

sc

rib

ed

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

6,2

12

,54

56

,21

2,5

45

Sh

are

s i

n p

rop

ert

y c

om

pa

nie

s a

nd

lin

ke

d u

nit

s i

n p

rop

ert

y c

om

pa

nie

s,

no

t li

ste

d o

n a

n e

xc

ha

ng

e:

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

10

,18

9,2

51

To

tal

11

8,0

21

,74

2

- 57 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

IA

- S

CH

ED

UL

ES

PE

RT

AIN

ING

TO

TH

E A

NN

UA

L F

INA

NC

IAL

ST

AT

EM

EN

TS

(c

on

tin

ue

d)

Fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

15

EE

QU

ITIE

S

Ins

tru

me

nt

Lo

ca

l/ F

ore

ign

Iss

ue

d s

ha

res

Ord

ina

ry/

Pre

fere

nc

e s

ha

res

Ho

ldin

g n

um

be

rH

old

ing

inis

su

er/

en

tity

%

Fa

ir v

alu

eR

Lis

ted

eq

uit

ies

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f R

20

bil

lio

n o

r m

ore

, o

r a

n a

mo

un

t o

rc

on

dit

ion

s a

s p

res

cri

be

d

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

DIV

/06

70

,77

5,0

76

To

tal

67

0,7

75

,07

6

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f b

etw

ee

n R

2 b

illi

on

an

d R

20

bil

lio

n,

or

an

am

ou

nt

or

co

nd

itio

ns

as

pre

sc

rib

ed

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

DIV

/01

88

,49

0,5

18

To

tal

18

8,4

90

,51

8

Iss

ue

r m

ark

et

ca

pit

ali

sa

tio

n o

f le

ss

th

an

R2

bil

lio

n,

or

an

am

ou

nt

or

co

nd

itio

ns

as

pre

sc

rib

ed

Lis

t is

su

ers

/en

titie

s w

hic

h e

xce

ed

s 5

% o

f to

tal a

sse

tsL

oca

l-

--

DIV

/01

2,7

15

,87

6

To

tal

12

,71

5,8

76

TO

TA

L E

QU

ITIE

S8

71

,98

1,4

70

- 58 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

IA

- S

CH

ED

UL

ES

PE

RT

AIN

ING

TO

TH

E A

NN

UA

L F

INA

NC

IAL

ST

AT

EM

EN

TS

(c

on

tin

ue

d)

Fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

15

IO

TH

ER

AS

SE

TS

Ins

tru

me

nt

Lo

ca

l o

rF

ore

ign

Ho

ldin

gn

um

be

rH

old

ing

F

air

va

lue

%R

Lo

ca

l

Oth

er

Se

cu

ritie

s Z

AR

_R

EG

28

ZA

RL

oca

l-

%-

(25

,24

5)

To

tal

loc

al

po

rtfo

lio

as

se

ts(2

5,2

45

)

Fo

reig

n

Oth

er

Se

cu

ritie

s A

ud

_R

eg

28

Au

dF

ore

ign

-%

-(9

5,0

86

)O

the

r S

ecu

ritie

s B

RI_

RE

G2

8B

RI

Fo

reig

n-

%-

9O

the

r S

ecu

ritie

s C

LP

_R

EG

28

CL

PF

ore

ign

-%

-6

5,5

53

Oth

er

Se

cu

ritie

s I

DR

_R

EG

28

IDR

Fo

reig

n-

%-

(18

1,9

04

)O

the

r S

ecu

ritie

s I

NR

_R

EG

28

INR

Fo

reig

n-

%-

(5,0

79

)O

the

r S

ecu

ritie

s K

RW

_R

EG

28

KR

WF

ore

ign

-%

-(2

8,8

89

)O

the

r S

ecu

ritie

s M

YR

_R

EG

28

MY

RF

ore

ign

-%

-1

3,3

69

Oth

er

Se

cu

ritie

s P

LN

_R

EG

28

PL

NF

ore

ign

-%

-(7

2,2

24

)O

the

r S

ecu

ritie

s U

SD

_R

EG

28

US

DF

ore

ign

-%

-1

,09

5,6

68

To

tal

fore

ign

po

rtfo

lio

as

se

ts7

91

,41

7

To

tal

po

rtfo

lio

as

se

ts7

66

,17

2

- 59 -



L CERTIFIED REGULATION 28 COMPLIANT INVESTMENTS

Instrument Local orForeign Fair value

RLinked policies – regulation 28(8)(b)(ii)

Local

Prescient Life - 27Four Shari'ah Balanced Fund Local 74,842,527

Non Linked policies – regulation 28(8)(b)(iii)

Local

Momentum Smooth Growth Fund (I10466) Local 39,536,466Momentum Smooth Growth Fund (I4852) Local 244,106,781Momentum Smooth Growth Fund (I4912) Local 894,862,974

Total certified Regulation 28 compliant investments

1,253,348,748

M REGULATION 28 NON COMPLIANT INVESTMENTS

M1 NON-COMPLIANT COLLECTIVE INVESTMENT SCHEMESInstrument

Local

Local or Foreign Holding%

Fair valueR

ABAX Equity Fund Local 239,109,916 Allan Gray Orbis International Global Equity fund Local 503,114,654 Stanlib Global Bond Fund Local 129,336,500

871,561,070

Foreign

-

Total Non-compliant Collective investment schemes 871,561,070

- 60 -

UN

IVE

RS

ITY

OF

CA

PE

TO

WN

RE

TIR

EM

EN

T F

UN

D

SC

HE

DU

LE

IA

- S

CH

ED

UL

ES

PE

RT

AIN

ING

TO

TH

E A

NN

UA

L F

INA

NC

IAL

ST

AT

EM

EN

TS

(c

on

tin

ue

d)

Fo

r th

e y

ea

r e

nd

ed

30

Ju

ne

20

15

OE

NT

ITY

/ C

OU

NT

ER

PA

RT

Y E

XP

OS

UR

EC

red

it /

Co

un

ter

pa

rty r

isk

Co

un

ter

pa

rty

Dir

ec

tin

ve

stm

en

t in

co

un

ter

pa

rty

De

po

sit

/liq

uid

as

se

t w

ith

co

un

ter

pa

rty

An

y o

the

rin

str

um

en

tT

ota

l p

er

Co

un

ter

Pa

rty

Ex

po

su

re t

oc

ou

nte

r p

art

y a

sa

%

of

the

fa

irva

lue

of

the

as

se

ts o

f th

efu

nd

RR

RR

Ba

nk

sA

BS

A B

an

k L

td9

,26

9,5

03

--

9,2

69

,50

30

.23

As

se

t m

an

ag

ers

-lo

ca

l3

1,8

07

,87

22

2,7

12

,15

83

,28

3,4

32

,46

73

,33

7,9

52

,49

7M

om

en

tum

Sm

oo

thG

row

th F

un

d (

I10

46

6)

--

39

,53

6,4

65

39

,53

6,4

65

0.9

9

Mo

me

ntu

m S

mo

oth

Gro

wth

Fu

nd

(I4

85

2)

--

24

4,1

06

,78

12

44

,10

6,7

81

6.1

3

Mo

me

ntu

m S

mo

oth

Gro

wth

Fu

nd

(I4

91

2)

--

89

4,8

62

,97

48

94

,86

2,9

74

22

.49

27

Fo

ur

Sh

ari

'ah

Ba

lan

ce

d F

un

d-

-7

4,8

42

,52

77

4,8

42

,52

71

.88

Ca

taly

st

Fu

nd

Ma

na

ge

rs-

-1

06

,09

3,0

19

10

6,0

93

,01

92

.67

Alla

n G

ray D

om

estic

Eq

uity P

ort

folio

--

67

6,7

73

,11

46

76

,77

3,1

14

17

.01

Inve

ste

c A

sse

tM

an

ag

em

en

t -

Va

lue

Eq

uity

31

,80

7,8

72

22

,71

2,1

58

28

7,2

40

,27

03

41

,76

0,3

00

8.5

9

Pre

scie

nt

- B

on

ds

--

47

1,2

23

,65

84

71

,22

3,6

58

11

.84

Pre

scie

nt

- In

co

me

--

24

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- 61 -



Market risk

Equity Holdings

InvestmentFair value at end of year

R

Total fair value equityholdings and open

instrumentsR

Market movement by 5%R

Sasol Ltd 75,917,250 75,917,250 3,795,863Standard Bank Group Ltd 72,217,450 72,217,450 3,610,873Reinet Investments SCA 51,211,764 51,211,764 2,560,588SABMiller Plc 45,868,519 45,868,519 2,293,426British American Tobacco Plc 41,845,837 41,845,837 2,092,292Old Mutual Plc 39,333,906 39,333,906 1,966,695AngloGold Ashanti Ltd 39,054,479 39,054,479 1,952,724Sappi Ltd 37,552,107 37,552,107 1,877,605British American Tobacco Plc [BTIU] 36,339,495 36,339,495 1,816,975Remgro Ltd 30,729,436 30,729,436 1,536,472

Total value of 10 largest equity holdings 470,070,243 470,070,243 23,503,513

Total movement as % of non-current assetsplus bank

%0.59

Other Financial Instruments

Instrument

HoldingR

Fair value at end ofyear

R

Market movement by5%R

Momentum Smooth Growth Fund (I4912) 894,862,974 894,862,974 44,743,149Allan Gray Orbis International Global Equity fund 503,114,654 503,114,654 25,155,733Momentum Smooth Growth Fund (I4852) 244,106,781 244,106,781 12,205,339ABAX Equity Fund 239,109,916 239,109,916 11,955,496Stanlib Global Bond Fund 129,336,500 129,336,500 6,466,825Nedbank Ltd 108,722,879 108,722,879 5,436,144ABSA Bank Ltd 79,048,999 79,048,999 3,952,450Republic Of South Africa - Government Bonds 75,348,318 75,348,318 3,767,416ABSA Bank Ltd 75,098,676 75,098,676 3,754,93427Four Shari'ah Balanced Fund 74,842,527 74,842,527 3,742,126Total value of 10 largest other instruments

2,423,592,224 2,423,592,224 121,179,612

Total movement as % of non-current assets plusbank

%3.04

Foreign currency exposure

Foreign instruments

Fair value at end of yearR

Market movement by 5%R

Allan Gray Orbis International Global Equity fund 503,114,654 25,155,733Momentum Smooth Growth Fund (I4912) 265,177,992 13,258,900Stanlib Global Bond Fund 123,932,903 6,196,645Momentum Smooth Growth Fund (I4852) 72,336,935 3,616,84727Four Shari'ah Balanced Fund 19,261,300 963,065Momentum Smooth Growth Fund (I10466) 11,701,168 585,058Investec Asset Management - Value Equity 1,262,235 63,112ABAX Equity Fund 26,302 1,315Total value of 10 largest foreign instruments

996,813,489 49,840,675

Total movement as % of non-current assets plus bank %DIV/0

- 62 -

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- 63 -


SCHEDULE IBASSETS HELD IN COMPLIANCE WITH REGULATION 28For the year ended 30 June 2015

Fair valueR

Fair valueR

A Total assets of the fund as per Statement of Net Assets and Funds 3,979,673,154

B Less: Non-investment items of Statement of Net Assets and Funds: -B.1 Property Plant and Equipment -B.2 Current assets (excluding cash at bank) -

C Total assets (Regulation 28) (A – B) 3,979,673,154

D1 Less: Reg 28 compliant investments (certificate received from issuing entity):- 1,253,348,748D.1.1 Collective Investment Schemes (Reg 28(8)(b)(i)) -D.1.2 Linked Policies (Reg 28(8)(b)(ii)) 1,253,348,748D.1.3 Guaranteed policies (Reg 28(8)(b)(iii)) -D.1.4 Entity regulated by FSB (Reg 28(8)(b)(iv)) -D2 Less: Reg 28 Excluded investments -D.2.1 Insurance Policies ( Reg 28(3)(c)) -

E Less: Investments not disclosed /data not available for disclosure* -

C TOTAL ASSETS for REGULATION 28 DISCLOSURE 2,726,324,406

Categories of kinds of assets Fair valueR

Fair value%

1 CASH 301,884,516 11.07%

1.1 Local notes, deposits, money market instruments issuedby a South African Bank, margin accounts, settlementaccounts with an exchange and Islamic liquiditymanagement financial instruments

100%

294,770,120 10.81%(a) Notes and coins; any balance or deposit in an account

held with a South African bank; 84,740,112 3.11%Per issuer/entity 25% 84,740,112 3.11%

(b) A money market instrument issued by a South Africanbank including an Islamic liquidity management financialinstrument

194,675,649 7.14%

Per issuer/entity (no individual issuer exceeded 5%) 25% 194,675,649 7.14%(c) Any positive net balance in a margin account with an

exchange 4,550,023 0.17%Per issuer/entity 25% 4,550,023 0.17%

(d) Any positive net balance in a settlement account with anexchange, operated for the buying and selling of assets 10,804,336 0.40%

Per issuer/entity 25% 10,804,336 0.40%

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

SARBmax.limits 7,114,396 0.26%

(a) Any balance or deposit held with a foreign bank 7,114,396 0.26%

Per issuer/entity 5% 7,114,396 0.26%(b) Any balance or deposit held with an African bank - -%

Per issuer/entity 5% - -%(c) A money market instrument issued by a foreign bank

including an Islamic liquidity management financialinstrument - -%

Per issuer/entity 5% - -%

2 DEBT INSTRUMENTS INCLUDING ISLAMIC DEBTINSTRUMENTS 670,265,301 24.58%

2.1 Inside the Republic 100% 548,909,447 20.13%(a) Debt instruments issued by, and loans to, the government

of the Republic, and any debt or loan guaranteed by theRepublic 100% 80,798,679 2.96%


Carried forward 382,683,195 14.04%

- 64 -


SCHEDULE IB - ASSETS HELD IN COMPLIANCE WITH REGULATION 28For the year ended 30 June 2015


Fair value%

Brought forward 382,683,195 14.04%

(b) Debt instruments issued or guaranteed by the governmentof a foreign country 10% - -%

Per issuer/entity 25% - -%(c) Debt instruments issued or by a South African bank

against its balance sheet 75% 301,953,630 11.08%c(i) Listed on an exchange with an issue market capitalisation

of R20 billion or more, or an amount or conditions asprescribed 75% 300,675,314 11.03%

Per issuer/entity (no individual issuer exceeded 5%) 25% 300,675,314 11.03%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% - -%

Per issuer/entity 15% - -%c(iii) Listed on an exchange with an issuer market capitalisation

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

Per issuer/entity 10% - -%c(iv) Not listed on an exchange

25%1,278,316 0.05%

Per issuer/entity 5% 1,278,316 0.05%(d) Debt instruments issued or guaranteed by an entity that

has 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% 160,334,117 5.88%

d(i) Listed on an exchange 50% 156,298,061 5.73%

Per issuer/entity 10% 156,298,061 5.73%d(ii) Not listed on an exchange 25% 4,036,056 0.15%

Per issuer/entity 5% 4,036,056 0.15%(e) Other debt instruments:- 25% 5,823,021 0.21%e(i) Listed on an exchange 25% 5,823,021 0.21%

Per issuer/entity 5% 5,823,021 0.21%e(ii) Not listed on an exchange 15% - -%


2.2 Outside the Republic

SARBmax.limits

121,355,854 4.45%(a) Debt instruments issued by, and loans to, the government

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

- -%

Per issuer/entity 25% - -%(b) Debt instruments issued or guaranteed by the government

of a foreign country 62,718,726 2.30%Per issuer/entity 25% 62,718,726 2.30%

(c) Debt instruments issued or guaranteed by a South AfricanBank against its balance sheet:- 1,262,235 0.05%

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

1,262,235 0.05%

Per issuer/entity 25% 1,262,235 0.05%c(ii) Listed on an exchange with an issuer market capitalisation

of between R2 billion and R20 billion, or an amount orconditions as prescribed - -%

Per issuer/entity 15% - -%c(iii) Listed on an exchange with an issuer market capitalisation

of less than R2 billion, or an amount or conditions asprescribed

- -%


Carried forward 914,774,924 33.56%

- 65 -




Fair value%

Brought forward 914,774,924 33.56%

c(iv) Not listed on an exchange - -%

Per issuer/entity 5% - -%(d) Debt instruments issued or guaranteed by an entity that

has equity listed on an exchange 19,590,947 0.72%d(i) Listed on an exchange 17,015,478 0.62%

Per issuer/entity 10% 17,015,478 0.62%d(ii) Not listed on an exchange 2,575,469 0.09%

Per issuer/entity 5% 2,575,469 0.09%(e) Other debt instruments 37,783,946 1.39%e(i) Listed on an exchange 34,521,401 1.27%

Per issuer/entity 5% 34,521,401 1.27%e(ii) Not listed on an exchange 3,262,545 0.12%


3 EQUITIES 1,602,430,610 58.78%

3.1 Inside the Republic 75% 1,103,356,178 40.47%(a) Preference and ordinary shares in companies, excluding

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

1,103,356,178 40.47%a(i) Issuer market capitalisation of R20 billion or more, or an

amount or conditions as prescribed 75% 890,658,161 32.67%Sasol Ltd 15% 85,142,111 3.12%Standard Bank Group Ltd 15% 78,408,005 2.88%British American Tobacco Plc 15% 62,177,353 2.28%Reinet Investments SCA 15% 55,293,370 2.03%SABMiller Plc 15% 55,093,379 2.02%Old Mutual Plc 15% 50,887,697 1.87%Naspers Ltd 15% 50,537,297 1.85%AngloGold Ashanti Ltd 15% 39,054,479 1.43%Sappi Ltd 15% 37,552,107 1.38%Per issuer/entity (no individual issuer exceeded 5%) 15% 376,512,363 13.81%

a(ii) Issuer market capitalisation of between R2 billion and R20billion, or an amount or conditions as prescribed 75% 199,982,141 7.34%

Per issuer/entity (no individual issuer exceeded 5%) 10% 199,982,141 7.34%a(iii) Issuer market capitalisation of less than R2 billion, or an

amount or conditions as prescribed 15% 12,715,876 0.47%Per issuer/entity 5% 12,715,876 0.47%

(b) Preference and ordinary shares in companies, excludingshares in property companies, not listed on an exchange 15% - -%

Per issuer/entity 2.5% - -%

3.2 Outside the Republic 499,074,432 18.31%

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

SARBmax.limits 499,074,432 18.31%

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

Per issuer/entity 15% - -%a(ii) Issuer market capitalisation of between R2 billion and R20

billion, or an amount or conditions as prescribed - -%Per issuer/entity 10% - -%

a(iii) Issuer market capitalisation of less than R2 billion, or anamount or conditions as prescribed 499,074,432 18.31%

Positions less than 1 percent 5% 189,727,918 6.96%NetEase 5% 33,338,382 1.22%eBay 5% 24,089,670 0.88%Motorola Solutions 5% 22,592,654 0.83%Apache 5% 16,954,413 0.62%Samsung Electronics 5% 15,691,130 0.58%Charter Communications 5% 13,609,290 0.50%

Carried forward 2,391,509,452 87.73%

- 66 -




Fair value%

Brought forward 2,391,509,452 87.73%

Liberty Global 5% 13,305,168 0.49%Gazprom 5% 11,938,294 0.44%QUALCOMM 5% 11,144,780 0.41%Microsoft 5% 10,995,189 0.40%Time Warner Cable 5% 10,968,554 0.40%Per issuer/entity (no individual issuer exceeded 5%) 5% 124,718,990 4.57%

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

Per issuer/entity 2.5% - -%

4 IMMOVABLE PROPERTY 120,477,401 4.42%

4.1 Inside the Republic 25% 120,477,401 4.42%(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% 110,288,150 4.05%

a(i) Issuer market capitalisation of R10 billion or more, or anamount or conditions as prescribed 25% 92,398,054 3.39%

Per issuer/entity 15% 92,398,054 3.39%a(ii) Issuer market capitalisation of between R3 billion and R10

billion, or an amount or conditions as prescribed 25% 11,677,551 0.43%Per issuer/entity 10% 11,677,551 0.43%

a(iii) Issuer market capitalisation of less than R3 billion or anamount or conditions as prescribed 25% 6,212,545 0.23%

Per issuer/entity 5% 6,212,545 0.23%(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% 10,189,251 0.37%


4.2 Outside the Republic - -%(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

SARBmax.limits - -%

a(i) Issuer market capitalisation of R10 billion or more, or anamount or conditions as prescribed - -%

Per issuer/entity 15% - -%a(ii) Issuer market capitalisation of between R3 billion and R10

billion, or an amount or conditions as prescribed - -%Per issuer/entity 10% - -%

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

Per issuer/entity 5% - -%(b) Immovable property, preference and ordinary shares in

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


5 COMMODITIES 30,500,407 1.12%

5.1 Inside the Republic 10% 30,500,407 1.12%(a) Kruger Rands and other commodities on an exchange,

including exchange traded commodities 10% 30,500,407 1.12%a(i) Gold (including Kruger Rands) 10% 6,209,316 0.23%

Per issuer/entity 10% 6,209,316 0.23%a(ii) Other commodities 5% 24,291,091 0.89%


5.2 Outside the Republic 10% - -%

Carried forward 2,725,558,235 99.98%

- 67 -




Fair value%

Brought forward 2,725,558,235 99.98%

(a) Gold and other commodities on an exchange, includingexchange traded commodities 10% - -%

a(i) Gold 10% - -%Per issuer/entity 5% - -%

a(ii) Other commodities 5% - -%


6 INVESTMENTS IN THE BUSINESS OF APARTICIPATING EMPLOYER INSIDE THE REPUBLIC INTERMS OF:- - -%

(a) Section 19(4) of the Pension Funds Act - -%


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


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

95% - -%

8 HEDGE FUNDS, PRIVATE EQUITY FUNDS AND ANYOTHER ASSET NOT REFERRED TO IN THISSCHEDULE 766,171 0.03%

8.1 Inside the Republic 15% (25,245) -%(a) Hedge fund 10% - -%a(i) Funds of hedge funds 5% - -%

Per issuer/entity 15% - -%a(ii) Hedge funds 2.5% - -%

Per issuer/entity 10% - -%(b) Private equity funds 10% - -%b(i) Funds of private equity funds 5% - -%

Per issuer/entity 15% - -%b(ii) Private equity funds 2.5% - -%

Per issuer/entity 10% - -%(c) Other assets not referred to in this schedule and excluding

a hedge fund or private equity fund 2.5% (25,245) -%Per issuer/entity 15% (25,245) -%

8.2 Outside the Republic 15% 791,416 0.03%(a) Hedge fund 10% - -%a(i) Funds of hedge funds 5% - -%

Per issuer/entity 15% - -%a(ii) Hedge funds 2.5% - -%

Per issuer/entity 10% - -%(b) Private equity funds 10% - -%b(i) Funds of private equity funds 5% - -%

Per issuer/entity 15% - -%b(ii) Private equity funds 2.5% - -%

Per issuer/entity 10% - -%(c) Other assets not referred to in this schedule and excluding

a hedge fund or private equity fund 2.5% 791,416 0.03%Per issuer/entity 15% 791,416 0.03%

9 FAIR VALUE OF ASSETS TO BE EXCLUDED IN TERMSOF SUB-REGULATION (8)(b) OF REGULATION 28 - -%

9.1 Inside the Republic - -%

9.2 Outside the Republic - -%

TOTAL (equal to the fair value of assets) 2,726,324,406 100.00%

- 68 -

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- 69 -

annual financial statements - UCT Retirement Fund

Documents

Transcript of annual financial statements - UCT Retirement Fund