OVERVIEW

Ownership and Copyright

Copyright on all information, material and logos (hereinafter referred to generally as “material”) made available through this website are protected by both national and international intellectual property laws. Accordingly, any unauthorised copying, reproduction, retransmission, distribution, dissemination, sale, publication, broadcast or other circulation, or exploitation of this material will constitute an infringement of such protection.

The copyright in all material of 27four and all its subsidiaries published on this website shall continue to vest in 27four. A visitor’s access to this website, and the information contained on it, does not in any way convey or transfer any right in or to the intellectual property rights of 27four. Without derogating from the aforegoing, 27four hereby authorises you to view, copy, download to a local drive, print and distribute the content of this website, or any part thereof, provided that: –

• such content is used for personal information purposes only; and
• such content is used for non-commercial purposes. You are expressly prohibited from incorporating any of 27four’s proprietary material from this website in any other work, publication or website either of your own or belonging to any third party;
• any reproduction of 27four’s proprietary material from this website or portion thereof must include this notice in its entirety.
• The trademarks, logos and service marks displayed on this website are registered or in the registration process. Nothing contained on this website should be construed as granting any licence or right to use any trademark without the written permission of the owner thereof.

Content and Information

Content and Information (“information”) on this website is intended to provide general information regarding 27four and its products and services and is not intended to provide exhaustive treatment of any subject dealt with.

The information on this website including, without limitation, all research, opinions or other content is therefore not intended, nor does it constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Before making any decision or taking any action, which might affect your personal finances or business, you should consult your own professional advisors.

This website could include technical, typographical or other inaccuracies and you are urged to contact 27four to confirm all information contained on these pages prior to placing reliance thereon. Changes are periodically made to the information herein and these changes will be incorporated in new editions of this website. 27four expressly reserves the right, in its sole and absolute discretion, to alter or amend any criteria or information set out in this website without notice.

No Offer

No information or content contained on these pages should be construed as an offer by 27four. All services offered by 27four are subject to signature of the requisite application forms and other documentation relating thereto and are governed by the standard terms and conditions of 27four in respect thereof. 27four shall not be bound in any manner until a formal written agreement has been entered into. 27four reserves the right to reject in its discretion any application submitted for services contained on this website.

Transmission of Information

Your attention is drawn to the fact that information transmitted via the internet, including without limitation e-mail, is susceptible to monitoring and interception. You are therefore discouraged from transmitting to 27four any information, which may be confidential, proprietary or sensitive. You shall bear all risk of transmitting such information in this manner and under no circumstances will 27four be liable for any loss, harm or damage suffered by you as a result thereof. 27four reserves the right to request independent verification of any information transmitted via e-mail and you consent to such verification should 27four deem it necessary.

Links to third party sites

27four may provide hypertext links to websites or webpages on the internet that are operated by third parties. Visitors are advised to use caution and discretion when searching or accessing such links. Under no circumstances does 27four take responsibility for the content and/or services or products offered on third party websites or webpages that may be linked to this website and 27four gives no warranty, guarantee and makes no representation in respect of such linked websites or webpages.

Disclaimer

This website and the information contained therein is provided “as is” and without warranty whether expressed or implied thereto. Without limiting the generality of the aforegoing: –

27four does not warrant that the website or information will be error-free or will meet any particular criteria of accuracy, completeness or reliability of information, performance or quality. 27four expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy; and while 27four has taken reasonable measures to ensure the integrity of this website and its contents, no warranty, whether express or implied is given that any files, downloads or applications available via this website are free of viruses, trojans, bombs, time-locks or any other data or code that has the ability to corrupt or affect the operation of your system.

Risk & No Liability

Your use of this website and the information contained therein is entirely at your own risk and you assume full responsibility in respect of any loss or damage resulting from the use thereof. Neither 27four, its affiliated companies, holding company, subsidiaries or subsidiaries of its holding company, or their officers, agents, consultants or employees, shall be liable for any direct, consequential or indirect loss or damages suffered by a visitor or any other person relating to the use of this website or the information contained therein.

The visitor hereby indemnifies 27four and its suppliers from and against any and all losses, liability, cost or damages suffered or incurred by a visitor or any other person arising out of or in connection with the use of this website or any other website that can be accessed from this website, however, such loss or liability may occur, and whether such loss or liability is foreseeable, financial, personal, consequential, incidental or otherwise.

Enforceability

If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply.

Jurisdiction

These terms and conditions shall be governed by and construed in accordance with the laws of the Republic of South Africa without giving effect to any principles of conflict of law. You hereby consent to the exclusive jurisdiction of the High Court of South Africa in respect of any disputes arising in connection with the services referred to herein, or these terms and conditions or any matter related to or in connection therewith.

Product Disclaimer

Investors should take cognisance of the fact that there are risks involved in buying or selling any financial product and that past performance of a financial product is not necessarily indicative of the future performance. The value of financial products can increase, as well as decrease over time, depending on the value of the underlying securities and market conditions.

Hedge funds are declared regulated financial products under the Collective Investment Schemes Control Act.

The information provided on this website does not constitute a solicitation, invitation or investment recommendation and, prior to selecting a financial product or fund, it is recommended that investors seek specialised financial, legal and tax advice.

Introduction

The Treating Customers Fairly (TCF) initiative is a key component of the Financial Services Board’s broader consumer protection and market conduct mandate. TCF is an outcomes-based regulatory and supervisory approach designed to ensure that specific, clearly articulated fairness outcomes for financial services consumers are delivered by regulated financial firms.

27four Investment Managers incorporates TCF into the way that we conduct business every day and in the way that we deal with our clients. We may not outsource this responsibility to another party, although our compliance officer may provide guidance and assistance with regards to incorporating TCF into our business.

Our approach to TCF is reflected into the following organisational structures and processes:

Leadership:

The Board and management provide direction and monitor the delivery of TCF behaviors and outcomes.

Strategy:

The TCF aims are not merely stated vision and values, but built into our strategic and business plans.

Decision-making:

Decision-making protocols ensure that all decisions that impact on customers are subject to the challenge implicit in our TCF strategy.

Governance & Controls:

Our governance structures and control mechanisms are designed to cater for TCF considerations and include TCF measurement systems and identification of TCF risks.

Performance management:

Our staff and representatives are trained to deliver appropriate TCF outcomes. TCF deliverables form part of our staff performance contracts and performance is evaluated in terms of TCF competence and expectations.

Reward:

Our remuneration, incentive and reward policies take cognizance of fair customer outcomes and ensure that conflicts of interest are avoided.

The Six Treating Customers Fairly Fairness Outcomes

We have incorporated the following 6 TCF outcomes into our business operations. The questions listed below each of the outcomes, illustrates what we do to ensure that all our operations incorporate the TCF outcomes.

Outcome 1:

Customers are confident that they are dealing with a firm where the fair treatment of customers is central to the firm culture.

1. Is our board involved with TCF decisions and communicating to staff about it?
2. If we are your own client, would we be happy with the way we are treated?
3. Do we talk about the treatment of clients and do we have a unified approach amongst our staff?
4. In terms of section 2 of the FAIS General Code of Conduct we must at all times render financial services honestly, fairly, with due skill, care and diligence and in the interests of clients and the integrity of the financial services industry. How do we currently comply with this section?
5. Do we do a due diligence on other businesses before contracting with them?
6. Have our board and executive management thought about the strategic implications of TCF and how we treat our clients?
7. Is TCF a standing agenda point at all our investment committee meetings?
8. How has TCF responsibility been allocated to management and staff?
9. How have we built TCF into our reward structures?
10. What is the level of staff awareness of TCF?
11. What TCF governance structures, controls and management information do we need to develop?
12. Does our risk management plan incorporate TCF principles and are these monitored on an on-going basis? m. How does our conflict of interest policy deal with specific conflict of interest issues?
13. How does our Personal Trading policy deal with specific conflict of interest issues?

Outcome 2:

Products and services marketed and sold in the retail market are designed to meet the needs of identified customer groups and are targeted accordingly.

1. Do we understand our clients, their financial situation and their financial needs?
2. Do we understand what the products really do and how they match the needs of our clients?
3. Do we conduct due diligence on all the funds/products/providers that we offer?
4. In terms of Section 8 of the FAIS General Code of Conduct we must do a suitability analysis prior to providing a client with advice. How do we do this?
5. In terms of section 4 of the FAIS Discretionary Code we must – prior to entering into a written or electronic mandate with a client – obtain information with regard to the client’s financial circumstances, needs and objectives and such information that is necessary to enable us to render suitable intermediary services to the client. How do we comply with this section?
6. To what extent do we consider the profile of the end client when designing products or constructing funds (i.e. structuring portfolios and their charges)?
7. Would we know whether our funds/products were being sold into the wrong target markets? If so, what would we do about it?
8. Would TCF standards influence our choice of who we allow to ‘wrap’ or distribute our products or whose platform we put them on?
9. What due diligence do we undertake when deciding to structure products/portfolios?
10. Do we have sufficient details about our clients and our clients’ existing positions?
11. Do we understand who the client is? (could be more than one client e.g. pension fund, broker force, administrator, trustees).

Outcome 3:

Customers are given clear information and are kept appropriately informed before, during and after the time of contracting.

1. Do we use clear explanations of the products when talking to our clients?
2. Are the mechanics and risk profile of the product disclosed to the client in plain language?
3. Do we keep our clients informed of our own processes and information required by others in the value chain?
4. Do we guide clients about the information required by product suppliers?
5. In terms of section 7 of the General Code of Conduct we must provide a reasonable and appropriate general explanation of the nature and material terms of the relevant contract or transaction to a client, and generally make full and frank disclosure of any information that would reasonably be expected to enable the client to make an informed decision. How do we disclose information in terms of section?
6. Do we consider the end client when we develop marketing and product disclosure material (e.g. Fund fact sheets, other marketing material, websites)? Do we test it with clients/IFAs?
7. Do we review the quality and accuracy of material used by others who market or distribute our products? h. What would we do if we discovered misrepresentation of our products/services?
8. Are we accessible to end clients who may need information on our products?
9. What controls do we have in place to ensure our product/service information remains current?

Outcome 4:

Where customers receive advice, the advice is suitable and takes account of their circumstances.

1. In terms of Section 8 of the FAIS General Code of Conduct we must do a suitability analysis prior to providing a client with advice. Do we conduct a suitability analysis?
2. Do we check the client’s needs against the recommendations?
3. Does your record of advice comply with the FAIS General Code of Conduct and contain all required disclosures?
4. Do we consider all requirements relating to replacement products?
5. In terms of section 6(1) of the FAIS Discretionary Code we must furnish a written report to a client which complies with certain requirements. How do we comply with this section?
6. What insight do we have into the quality of advice provided about our products/portfolios/services?
7. Do we consider whether the advisers who provide advice on our products/ portfolios/services have the adequate knowledge thereof?
8. What would we do if we discovered mis-selling of our products?
9. Do advisers have reasonable access to any information they may need to advise on our products/ portfolios/services? o. Do we monitor the adviser/client behaviour to alert us to possible inappropriate advice? j. Do we have management information that we could mine for trends, e.g. complaints about specific IFAs? k. Do we provide sufficient information about the features and risks of the fund/ portfolio?
10. Is accountability in terms of this outcome clearly defined in the value chain?

Outcome 5:

Customers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and what they have been led to expect.

1. Do we check product performance before we offer to our clients?
2. Do we give feedback to product suppliers about their products and services?
3. How do we select funds? What do we consider in the process? Do we have a clear understanding with all others in the value chain around this?
4. Who is responsible for managing investment performance expectations?
5. Whose job is it to mitigate risk for clients if we deliver poor investment performance or breach mandates? f. Who is responsible for keeping clients informed of environmental changes that could result in products not meeting the expectations?
6. Do we have adequate service liaison structures in place to ensure the end client receives reasonable service?
7. Do we consider the client service standards of those who market or distribute our products?
8. How do we deal with errors?
9. What happens if there was a profit as a result of an error? Who does it belong to?
10. Do we do client reimbursement?
11. Do we conduct assessments with FSPs in terms of service levels and standards if the FSP is the end client? m. Do we conduct feedback assessments in terms of whether the products are suited to what the product supplier said it would?
12. Is accountability in terms of this outcome clearly defined in the value chain?

Outcome 6:

Customers do not face unreasonable post-sale barriers to change product, switch provider, submit a claim or make a complaint.

1. When we provide after-sales services, is it easy for clients to contact us for assistance?
2. Do we make it a priority to assist clients who have complaints?
3. If an IFA contacts us on behalf of a client, do we have processes to assist him/her?
4. What insight do we have into the types of end client complaints relating to our funds/products – directly or indirectly?
5. How easy is it for an end client to complain to us?
6. Do we consider the end client’s position when dealing with complaints from others in the value chain?
7. Do we have a policy for client redress? Does it deal with affected clients that have not complained?

27four Investment Managers respects your privacy and is committed to keeping your information confidential.

Personal Information

In general, you can visit our website/s without having to divulge any personal information about yourself. However, while using this website you may provide information about yourself or it may be collected by us. You may update personal information at any time by e-mailing 27four Investment Managers. You may also view your personal information that we hold and correct it if necessary on written request to 27four Investment Managers. Access to your personal information held by 27four Investment Managers may also be requested by yourself or third parties. For South African jurisdictions, the Promotion of Access to Information Act, 2 of 2000 regulates and sets out the procedure for such a request and under what circumstances such access may be refused. For other jurisdictions, different legislation may apply and should be consulted.

Use of Information

Personal information is used as is appropriate in the normal course of business to provide the products and services you have requested. We may retain any information for purposes of investment transaction processing and administration, to monitor our site or to communicate directly with you.

Sharing of Information

All personal information supplied to 27four Investment Managers or collected by us is kept strictly confidential and will not be given or sold to any third parties. 27four Investment Managers will disclose or report personal information if and when required to do so by law or any regulatory authority, and to our employees, or agents who require such information to carry out their duties.

Security of Information

We take all reasonable steps to protect your personal information, including the use of technology. We can however not guarantee the security of any information you transmit to us electronically and you do so at your own risk.

1. Introduction

1.1 This document embodies the conflict of interest management policy for 27four Investment Managers (Pty) Ltd (“27four”).

1.2 “Conflict of interest” means any situation in which 27four or its representatives has an actual or potential interest that may, in rendering a financial service to a client influence the objective performance of his, her or its obligations to that client; or prevent 27four or its representatives from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client, including, but not limited to

1.2.1 a financial interest;

1.2.2 an ownership interest;

1.2.3 any relationship with a third party (“third party” means

1. a product supplier,
2. another provider,
3. an associate of a product supplier or a provider;
4. a distribution channel;
5. any person who in terms of an agreement or arrangement with a person referred to in paragraphs (a) to (d) above provides a financial interest to a provider or its representatives.)

1.3 The primary objectives of this Policy are:

1.3.1 To provide guidance on the behaviours expected in accordance with 27four standards;

1.3.2 To promote transparency and to avoid business-related COI;

1.3.3 To ensure fairness in the interests of employees and 27four;

1.3.4 To document the process for the disclosure, approval and review of activities that may amount to actual, potential or perceived COI;

1.3.5 To provide a mechanism for the objective review of personal outside interests.

1.4 27four is committed to ensuring that all business is conducted in accordance with good business practice. To this end 27four conducts business in an ethical and equitable manner and in a way that safeguards the interests of all stakeholders to minimise and manage all real or potential conflict of interest (COI). 27four and its representative must therefore avoid (or mitigate where avoidance is not possible) any COI between 27four and a client or its representative and a client.

2. Financial Interest

2.1 27four or its representatives may only receive or offer financial interest from or to a third party as determined by the Registrar of Financial Services Providers from time to time, and as set out in Annexure A hereto.

2.2 “Financial interest” means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic and foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than –

2.2.1 an ownership interest

2.2.2 training, that is not exclusively available to a selected group of providers or representatives on products and legal matters relating to those products; general financial and industry information; specialised technological systems of a third party necessary for the rendering of a financial service; but excluding travel and accommodation associated with that training.

2.3 27four may not offer any financial interest to its representatives for giving preference to the quantity of business secured for the provider to the exclusion of the quality of the service rendered to clients; OR giving preference to a specific product supplier, where a representative may recommend more than one product supplier to a client; OR giving preference to a specific product of a product supplier, where a representative may recommend more than one product supplier to a client.

3. Mechanism for identifying COI

3.1 To adequately manage conflicts of interest 27four must identify all relevant conflicts timeously. 27four employs two different mechanisms to ensure that all conflicts are identified:

3.1.1 The Executive Office Manager maintains a list of potential conflict risks at 27four taking into consideration the entire business. The list is classified by conflict type with documented controls. The list is updated with all new conflicts identified, and to ensure completeness is reviewed on an annual basis;

3.1.2 All employees, including the compliance officer and management, are responsible for identifying specific instances of conflict and are required to notify the Managing Director of any conflicts they become aware of. The Managing Director together with 27four’s Compliance will assess the implications of the conflict and how the conflict should be managed.

4. Resolving COI

4.1 The first and most important line of defense against COI or commitment must be by the key individuals and representatives themselves.

4.2 Once a conflict of interest has been identified it needs to be appropriately and adequately managed.

4.3 Compliance assesses each conflict, including whether the conflict is actual or perceived, what the value of the conflict or exposure is and the potential reputational risk. Compliance and management then agree on the controls that need to be put in place to manage the conflict.

4.4 27four has various internal controls to manage and mitigate Conflicts of Interests, including:

4.4.1 Business practices – Confidentiality and Representing the Company

4.4.2 Information barriers – Restrictive access control to IT folders, IT access control policy and “Clean Desk” policy

4.4.3 Disclosure – Clear and concise disclosure to enable the recipient to fully understand its relevance.

4.5 Specific instances of conflict may require management intervention in addition to the documented controls already in place. These can include escalation to a management forum for a decision on how the conflict should be managed, for example, disclose to the client or decline to act.

4.6 27four additionally has various internal policies to manage and mitigate Conflicts of Interests, including: 4.6.1 Personal Account Dealing Policy

4.6.2 Policy on Outside Business Interests

4.6.3 Gifts and Entertainment Policy

3.7 Compliance maintains records of all conflicts of interests identified and their resolution, including the persons involved and the controls used.

5. Potential COI that could affect 27four

5.1 The following are potential COI that could affect 27four:

5.1.1 Directorships or other employment;

5.1.2 Interests in business enterprises or professional practices;

5.1.3 Share ownership;

5.1.4 Beneficial interests in trusts;

5.1.5 Personal Account Trading;

5.1.6 Professional associations or relationships with other organisations;

5.1.7 Personal associations with other groups or organisations, or family relationships;

5.1.8 Front running;

5.1.9 Rebates;

5.1.10 Kickbacks; and

5.1.11 Commission

6. Measures to avoid COI:

6.1 27four communicates its Conflict of Interest Policy to all employees on a regular basis to ensure that all employees are aware of the process to identify and resolve conflicts.

7. Disclosure of COI:

7.1 At the earliest reasonable opportunity, 27four and its representative must, in writing, disclose to a client any COI in respect of that client including –

7.1.1 Measures taken to avoid or mitigate the conflict;

7.1.2 Any ownership interest or financial interest that the provider or representative may be or become eligible for;

7.1.3 The nature of the relationship or arrangements with a third party that gives rise to a COI in sufficient detail to enable the client to understand the exact nature of the COI.

7.2 At the earliest reasonable opportunity, 27four and its representative must, in writing, inform a client of the Conflict of Interest Management Policy and how it may be accessed.

7.3 Notification of an actual or potential COI should be made to a person with responsibility for the issue or area, such as the relevant management team, supervisor, head of the department or key individual.

7.4 In accordance with an employee’s obligation to act in the best interest of his or her employer, it is not permissible for employees to engage in conduct that would amount to a COI with 27four.

7.5 Staff that fail to disclose a potential or actual COI in accordance with this policy may be liable to disciplinary procedures as governed by relevant industrial awards or agreements.

8. Processes, procedures and internal controls to facilitate compliance with the policy

8.1 Every staff member must have a copy of the Conflicts of interest Management Policy.

8.2 If a potential COI arises, the transaction must first be discussed with management before entering into the transaction.

9. Consequences of non-compliance with the policy by the provider’s employees and representatives

9.1 Non-compliance with this policy and the procedures described in it may be considered to be misconduct and employees may be subject to disciplinary action that may lead to dismissal.

10. List of all 27four associates

10.1 None.

11. Names of any third parties in which the provider hold an ownership interest

11.1 27four has no external equity interests.

12. Names of any third parties that holds an ownership in the provider

12.1 No external third-party owns an equity interest in 27four.

13. Include the nature and extent of the ownership interest referred to in paragraphs 11 and 12

13.1 Not applicable.

This publications featured are strictly for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the investments mentioned herein. Any information and opinions contained in this communication, and any supplemental information provided, is believed to be reliable but no representation or warranty is given as to its correctness, accuracy or completeness. Any representation or opinion is provided for information purposes only. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. It is not intended to create, and shall not be capable of creating, any obligation or liability on the part of 27four Investment Managers or any of its affiliates, and shall not form part of any contract. All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. Any decision to invest must be made by the recipient solely on the basis of its own independent judgement and research and subject to the terms and conditions governing applications to any relevant fund. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. While opinions stated are honestly held, they are not guarantees and should not be relied on. Please note that past performance figures are not audited and should not be taken as a guide to the future. 27four Investment Managers will not be held liable or responsible for any direct or consequential loss or damage suffered by any party as a result of that party acting on or failing to act on the basis of the information provided in this document. This document may not be amended, reproduced, distributed or published without the prior written consent of 27four Investment Managers. 27four Investment Managers is an authorised financial services provider.

Should you wish to pursue a complaint against a key individual or representative of 27four Investment Managers (Pty) Ltd, you should address the complaint in writing. If you cannot settle your complaint with us, you are entitled to refer it to the office of the FAIS Ombud, at info@faisombud.co.za or telephone number 0860 324 766. The Ombud has been created to provide you with a redress mechanism for any inappropriate financial advice that you feel may have been given to you by a financial services provider.