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PPS Endowment Plan

The PPS Endowment Plan is a tax-efficient investment vehicle which is structured with the creation of long-term wealth in mind. It is most suitable if you fall into a marginal tax rate greater than 30% and have a minimum investment time horizon of five years. While access to capital is limited within the first five years or extended restriction period, this plan offers significant tax benefits. Taxable income for you (interest, net rental income and foreign dividends) is taxed at 30%, while realised capital gains attract capital gains tax at 7.5%. The proceeds of a withdrawal from the plan are tax-free in your hands. All tax reporting responsibility is removed from you, the Investor. The PPS Endowment Plan offers a simple and transparent cost structure and allows you unlimited flexibility in changing your underlying investments as well as managing the timing of investments into your plan. KEY BENEFITS AND FEATURES Investment Options The range of Investment Options offers a selection of multimanaged PPS unit trusts that provide clearly defined underlying investment choices. We also give you the choice of a selection of top-performing single-manager unit trusts to ensure that you have a varied and well-defined range of alternatives. Switching You may change your Investment Options as often as you choose without incurring a transaction fee. Certain underlying asset managers do, however, charge an initial upfront fee for investment in their Investment Options, which would be applied upon your switch into those Investment Options. Transfers You may not transfer your PPS Endowment Plan to another endowment policy or transfer another endowment policy into the PPS Endowment Plan. Restriction period The PPS Endowment Plan has an initial restriction period of five years. You may make additional contributions to your plan at any time, subject to set minimum investment amounts. Should the contributions, however, exceed 120% of the greater of your annual contributions in the prior two-year period, your investment will enter an extended restriction period for another five years from the date of the contribution. Surrender value You are entitled to one withdrawal during the initial restriction period of five years or any extended restriction period. The withdrawal value is limited to your contributions plus 5% compound interest per year. If the actual market value of the PPS Endowment Plan is less than the legal surrender limit, the market value (less any deductions such as tax) will be paid to you. Withdrawals from your PPS Endowment Plan are not limited once the initial five-year restriction period, as well as any further restriction periods which may have been applied, have expired. Cessions A PPS Endowment Plan may be ceded outright or partially. Loans You are entitled to one Non-interest Bearing Loan/Zero interest loan during the initial restriction period of five years. The zero interest loan value is limited to the amount invested plus 5% compound growth per year. You have the right to pay the amount taken as a loan back into the endowment structure without breaking the restriction period. There will however be no obligation on you to pay back this loan. There will also be no interest payable from the amount taken. The amount of loans you can take after the five year restriction period will be unlimited but the same rules as with withdrawals will apply. Death benefits Upon your death, the proceeds of your PPS Endowment Plan will flow directly to your beneficiaries, tax-free in their hands. This will save your estate up to 4% (including VAT) in executor's fees. Cooling-off period A 30-day cooling-off period applies from the date that you receive your PPS Endowment Plan policy summary and its terms and conditions. Should you choose to terminate your investment within this period, your original investment amount will be returned to you but may be reduced as a result of market losses. No interest or investment return will be paid or accrued to you. This option will not be available to you if you have made any switches to your investment selection or if any benefit has been paid within the cooling-off period.

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Minimum investment Lump sum: R10 000 Recurring*: R 500 per month Ad hoc: R5 000
* The minimum recurring debit order amount for a member under the age of 30 is R200 per month, which should be escalated to the normal minimum of R500 per month after the members 30th birthday.

ADMINISTRATION FEES Initial fees No initial fees. Ongoing fees An ongoing administration fee of 0.80% is charged annually. Your fee may be reduced by a sliding scale and partnership savings that we have negotiated with the managers of the Investment Options featured on our administration platform. Your annual administration fee is calculated as follows: 1) PPS Endowment Plan invested in any of the PPS Multi-Managed unit trusts Your annual administration fee is 0.80% Subtract the partnership saving of 0.80% Leaving a net annual administration fee of 0% 2) PPS Endowment Plan invested in other 3rd party Investment Options Your annual administration fee is 0.80% and can be reduced by the following: a. A sliding scale that reduces your fees depending on your investment amount i.e. the higher your investment amount, the lower your annual administration fee. Refer to the PPS Endowment Plan application form for more details. b. The partnership saving for example.

Tax Taxable growth (interest, net rental income and foreign dividends) is taxed at 30% for individuals and the proceeds of a withdrawal from the plan are tax-free in your hands. All taxes due and payable are paid by PPS Insurance and recovered by PPS Investments from your PPS Endowment Plan. All tax reporting responsibility is removed from you, the Investor. FEES There are three types of fees: Intermediary fee (initial and ongoing) Payable to your accredited PPS Intermediary. (if applicable) Administration fees (initial and ongoing) Payable to PPS Investments. Asset manager fees (initial and ongoing) Payable to the manager of the unit trust(s) that you select.

Asset Manager A YOUR INVESTMENT Accredited PPS Intermediary Administration Company PPS Investments Asset Manager B Asset Manager C

Investment amount R1mil

Scaled administration fee 0.65%

Partnership saving 0.46%

Actual administration fee 0.19%

Negotiated initial and ongoing advice fees

Ongoing administration fees

Initial and ongoing asset manager fees

FEES Initial fees This fee is negotiated between you and your accredited PPS Intermediary and ranges from 0% to 3.42%. Ongoing fees Annual fee is negotiated between you and your accredited PPS Intermediary and ranges from 0% to 1.14% per annum.

ASSET MANAGEMENT FEES Initial fees No initial fees are charged on investments into the PPS MultiManaged unit trusts. Should you choose to invest in one of the 3rd party Investment Options, an initial fund management fee of 0.29% may be charged by the fund manager. Currently none of the 3rd party Investment Options, on our platform levy fees. Ongoing fees The annual asset management fees vary depending on the unit trusts you select. These are fully disclosed on the Investment Option schedule; please see application form for details.
* All fees include an amount calculated to compensate for VAT costs.

PPS INVESTMENTS (PTY) LIMITED REG NO: 2005/029098/07


1ST FLOOR, TRAVERS HOUSE, BOUNDARY TERRACES, 1 MARIENDAHL LANE, NEWLANDS, 7700, PO BOX 44507, CLAREMONT 7735 DIRECTORS: EA MOOLLA (CHAIRMAN), NJ BATTERSBY, CK DE KLERK, MJ JACKSON, PJ KOEKEMOER, HA NELSON, AC PILLAY CLIENT SERVICE: 0860 468 777 (0860 INV PPS) www.ppsinvestments.co.za

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Disclaimer: The information, opinions and any communication from the PPS Investments group, whether written, oral or implied are expressed in good faith and not intended as investment advice, neither does it constitute an offer or solicitation in any manner. Furthermore, all information provided is of a general nature with no regard to the specific investment objectives, financial situation or particular needs of any person. It is recommended that investors first obtain appropriate legal, tax, investment or other professional advice prior to acting upon such information. All reference to tax is under current tax legislation. Please refer to product rules or contact a tax specialist for more information. PPS Investments (39270) and PPS Multi-Managers (28733) are licensed financial services providers

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