Company DDQ DDSA Universal Company DDQ — complete this once for your firm as a whole. Company / Operational Due Diligence The information in this Due Diligence Questionnaire is the intellectual property of the asset manager. It should be treated as such and kept confidential. It is intended to be used for research purposes only to enable fund selectors to collate the information they need to conduct the due diligence they require to compile portfolios or recommend portfolios for clients. If another asset manager gains access to this document it should be destroyed immediately without reading it. The information has been kindly supplied by the asset manager. Any conclusions drawn or research conducted on the contents will have no bearing on the future and cannot be used to forecast performance. The contents of the document do not constitute advice from the asset manager or Due Diligence SA. The information contained herein is subject to change with or without notice. 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Any document downloaded from the site is used for information purposes only and all information should be verified with the provider of the original document. Due Diligence SA is not responsible for any actions taken by any persons who have downloaded any document from www.duediligencesa.co.za and used it for any purpose whatsoever.Company / Operational Due Diligence QuestionnairePlease bear in mind that each fund/strategy offered by the company will have its own Fund DDQ. The answers below are aimed at gaining due diligence information for the company as a whole.Person Completing This FormFull Name(Required) First Last Position / Title in Company(Required)Telephone Number(Required)Email Address(Required) Date of Completion(Required) MM slash DD slash YYYY 1. General Information1. Company Name(Required)2. Company Registration Number(Required)3. Company Physical Address/es(Required)4. FSP Licence Number(Required)4. Attach copy of FSP licence certificate/s(Required) Drop files here or Select files Accepted file types: pdf, jpg, jpeg, png, Max. file size: 20 MB, Max. files: 5. 5. FAIS Product Categories Registered(Required) 6. Does the company have a life licence for pooling assets?(Required) Yes No 7a. List Categories Registered under the Long-Term Insurance Act 7b. Attach copy of Long-Term Insurance life licence Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 8. Is the company registered as an administrator under Section 13B of the Pension Fund Act?(Required) Yes No 8. Attach copy of Section 13B Registration Certificate Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 9. Is the company registered with any authorities other than FSCA (domestic or foreign)?(Required) Yes No 9. Please provide details of other registrations 10. Does the Company market investment products outside South Africa?(Required) Yes No 10. Please provide details 2. Business Structure1. If the company is a public company, provide the names and shareholding of the three largest shareholders. 2. If privately owned, describe the ownership structure, the three largest shareholders, their percentage ownership and role. 3. How long has the current business structure been in place and have there been any changes? Please attach a graphical timeline showing key events. 3. Upload business timeline graphic (optional) Drop files here or Select files Accepted file types: pdf, doc, docx, jpg, jpeg, png, Max. file size: 20 MB, Max. files: 5. 4. Total number of employees (front, middle and back office)(Required)5. Quantum of assets under management across all mandates. Show split between mandates.(Required) 6. Total assets under management at end of each of the last three years.(Required) 7. Split between institutional and retail assets. List the three largest clients (without naming). Split between multi-managers, single institutional, LISPs and direct. Split by asset class.(Required) 8. Has the company consistently complied with Capital Adequacy Ratios required by legislation?(Required) Yes No 9. Where is the Head Office? Do you have other offices? What functions are performed at each location?(Required) 10. Are there any criminal, civil or administrative proceedings pending or threatened against the firm or any of its principals?(Required) Yes No 10. Please provide full details of proceedings 11. Is there a dedicated marketing/business development function? Is it split by mandate/product type or geography? 12. Describe processes in place to ensure systems can handle applications, claims, payment/debit order instructions and detail changes efficiently.(Required) 13. Does the company have Professional Indemnity/Fidelity cover in place?(Required) Yes No 13a. Amount of cover 13b. Attach copy of most recent insurance certificate/schedule Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 13c. What other regulatory oversight exists? Attach any relevant licences. 13. Has there ever been a claim on this cover?(Required) Yes No 14. Does the company hold Directors and Officers insurance?(Required) Yes No 14. Has there ever been a claim against this cover?(Required) Yes No 15. Is the company listed on a stock exchange?(Required) Yes No 15. Attach copy of latest annual financial statements Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 15. Attach confirmation of financial soundness from auditors Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 16. Which bank is the Company's main banker? Does the company use other banks for its own management?(Required) 17. Describe the firm's governance structure including committees and policies (Code of Conduct, Anti-Corruption, Gift Policy, Fraud Prevention, Conflict of Interest, Whistleblowing, Data Protection, Privacy, ESG, AML, Cybercrime etc.)(Required) 3. People1. List or provide an organogram of the Management Team (Executive and Non-Executive Directors).(Required) 1. Upload organogram (optional) Drop files here or Select files Accepted file types: pdf, doc, docx, jpg, jpeg, png, Max. file size: 20 MB, Max. files: 5. 2. Name, position, qualifications and experience of each key decision maker/manager.(Required) 3. Who are the Key Individuals and for what FAIS product categories are they approved?(Required) 4. By what internal or other codes of conduct are management and Key Individuals bound? Attach the Company's Code of Conduct.(Required) 4. Upload Code of Conduct Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 5. Have there been any additions or losses in the management team over the past two years?(Required) Yes No 5. Please provide details of additions/losses 6. Who is the Chief Investment Officer?(Required)7. Who is Head of Dealing?(Required)8. Breakdown/organogram of senior staff including portfolio managers, analysts, dealers, operations, administration and accounting (roles, qualifications and experience).(Required) 8. Upload staff organogram (optional) Drop files here or Select files Accepted file types: pdf, doc, docx, jpg, jpeg, png, Max. file size: 20 MB, Max. files: 5. 9. Describe the Company's attitude to B-BBEE and progress made towards advancement of people of colour.(Required) 10. What is the company's current B-BBEE score?(Required)10. Attach latest B-BBEE certificate(Required) Drop files here or Select files Accepted file types: pdf, Max. file size: 20 MB, Max. files: 5. 11. Has the B-BBEE score improved over the last 3 years?(Required) Yes No 12. Are investment analysts rotated through sectors or do they become sector specialists?(Required) Yes No 12. Please explain your approach 13. Is there a head of research and/or do different sectors have separate research heads?(Required) Yes No 14. Is the CFA appellation encouraged?(Required) Yes No 15. How does the company actively encourage/sponsor staff to pursue further studies? 16. Do portfolio managers retain responsibility for and conduct analysis?(Required) Yes No 17. Which employee benefits (retirement plan, life cover, disability cover etc.) does the company offer and is it the same for all staff?(Required) 18. Describe succession planning for key members of the company and investment teams.(Required)19. List appointments and losses of staff over the last 5 years.(Required) 4. Investment Philosophy & ProcessEach fund/product will complete a separate fund-specific questionnaire. Answers here can be high-level.1. Does the company have a single basic investment philosophy or does it allow different philosophies in silos/franchises/departments?(Required) Yes No 1. Please explain(Required) 2. Describe the investment philosophy/ies at high level.(Required) 3. Is the company an active manager, index tracker, hedge fund manager or does it manage across disciplines?(Required) 4. Is the company a multi-asset manager or does it concentrate on a single or few asset classes?(Required) 5. Is the company primarily a South African asset manager or domiciled abroad with a South African presence?(Required) 6. Describe the basic house view — value, valuation-driven, growth, pragmatic value, pragmatic growth etc. 7. Is ESG part of the basic process or managed separately?(Required) Yes No 7. If part of the process, describe in detail how ESG is imbued in the process. 8. Does the company use in-house fundamental research, sell-side research, system-based research or other? Attach a percentage to each form if more than one is used.(Required) 9. How is technical analysis used as part of the process? 10. How are deals allocated between different broking firms?(Required) 11. Does the company have its own securities/broking division? If YES, is it allocated any normal deal flow?(Required) Yes No 12. What product or portfolio does the Company offer for which it does not produce an MDD? 13. Explain how the investment process guards against behavioural finance biases (anchoring, bandwagon, confirmation, status quo, gambler's fallacy, 10th man rule etc.)(Required) 14. What competitive advantages does your company have over its peers?(Required) 5. Remuneration and Retention1. Describe the staff remuneration philosophy. If different for investment specialists and other staff, please elaborate.(Required) 2. Are there short-term and long-term bonuses?(Required) Yes No 3. Is there an actual or virtual share option scheme?(Required) Yes No 4. How are key staff retained to prevent them leaving for a competitor?(Required) 5. Are all staff remunerated at a level fully recognised by their seniority? e.g. are senior staff drawing lower salaries to help profitability? 6. Operational Risk Management1. What are the three main risks in the company's operational risk matrix?(Required) 2. Who are the principal owners of those risks?(Required) 3. Does the company have a Risk Management/Control/Mitigation Policy?(Required) Yes No 4. Does the company have a Risk Committee separate to a committee evaluating investment risks?(Required) Yes No 5. Is counterparty risk management handled at a level separate to individual fund management?(Required) Yes No 6. Does the company have a Counterparty Risk Management Policy?(Required) Yes No 7. Does the Company screen all clients in terms of AML, Financing of Terrorism and PEP/PIP legislation? How often are clients re-screened?(Required) 8. Does the Company currently have any clients on any sanctions list or PEP/PIP list?(Required) Yes No 7. Operational Compliance1. Provide details of the internal compliance officer and the name of the outsourced compliance officer and company.(Required) 2. Does the company have any/all of the following — Compliance Policy, Conflict of Interest Policy, PA Trading Policy, AML Policy, Privacy/POPI Policy, TCF Policy? Can they be inspected on request?(Required) 3. Are you managing any conflicts of interest at present?(Required) Yes No 3. Please describe the conflicts of interest 4. Who is the company's auditor?(Required)5. Is the company solvent on a business-as-usual basis? For how long has this been the case?(Required) Yes No 6. Which legal firm does the company use?7. Name of the company's Anti-Money Laundering Officer8. Name of the Information Officer for POPI9. Are the 6 TCF outcomes embedded in the way the company treats its customers? How is this achieved?(Required) 8. Investment Compliance1. How is pre-trade compliance conducted for mandate and regulations?(Required) 2. How is post-trade compliance conducted for mandate and regulations?(Required) 3. How does the dealing desk ensure all clients receive the same or similar price on a trade?(Required) 4. Is trading for personal account allowed for any staff?(Required) Yes No 4. How is personal account trading controlled? 5. Which custodian/s does the company use?(Required) 6. Can a client of sufficient size choose its own custodian?(Required) Yes No 9. Systems1. What investment systems does the company use? (Bloomberg, IRESS, FactSet, Charles River, Refinitiv etc.)(Required) 2. Does the company pay full subscriptions for all systems used?(Required) Yes No 3. Which portfolio administration system is used?(Required) 10. Cyber Risk, Disaster Recovery & Business Continuity1. Has the company ever been subject to a cyber event?(Required) Yes No 1. Please describe the cyber event 2. Describe the disaster recovery and business continuance policies.(Required) 3. Does the company practice active and compulsory password maintenance for all staff?(Required) Yes No 4. Is the company insured against a cyber attack?(Required) Yes No 4. What exclusions apply to the cyber insurance? 5. Is the company fully aware of any events which may lead the insurer to repudiate a claim?(Required) Yes No 6. How is client and investment data protected and backed up? (Cloud services, off-site backup etc.)(Required) 7. What measures does the Company take against cyber-intrusion or data corruption? (Virus protection, phishing, white-hat hackers etc.)(Required) 11. Client Relationship Management1. Do portfolio managers give investment feedback to investors or do you have a client relationship/business development team?(Required) 2. Is client relationship different to business development for your company?(Required) Yes No 3. Do you run seminars to give advisors investment feedback?(Required) Yes No 4. Do you run seminars to give investors investment feedback?(Required) Yes No 5. Do you rely on advisors to give feedback to investors? What about direct clients? 6. How large must a client be to command a presentation from a portfolio manager? 7. Can investors access their own information on a web-based portal?(Required) Yes No 8. Do you issue MDDs for all products?(Required) Yes No 9. Are all MDDs issued monthly?(Required) Yes No 10. Do you employ a retention team to discourage disinvestors or is that part of the client relationship role? 12. Other1. Does the Company have an outreach program or charity donation philosophy?(Required) Yes No 2. Do staff become personally involved in Company outreach/charity?(Required) Yes No 3. If the Company considers itself a corporate citizen in a greater role than an asset manager, how does it fulfil this role? 4. Does the Company have a scholarship or bursary program at school or university level?(Required) Yes No 5. Does the Company sponsor any individuals or events? 6. Does the Company offer bursaries to individuals either directly or through a foundation scheme? 7. In addition to B-BBEE, how does the Company actively empower women and people of colour?(Required) 8. Does the Company have an active Sustainability Policy outside of the investment process?(Required) Yes No 9. Does the Company espouse the principles of CRISA, UNPRI and/or the UN SDGs? Explain. 10. Does the Company encourage staff to become shareholders of the Company?(Required) Yes No Elevator QuestionYou have just boarded an elevator with a stranger going to the 20th floor. You have 45 seconds to explain why she should invest with your company, why your company is different, and give her a hook on which to hang her investment decision. What do you say?(Required) Declaration & SignatureFull Name of Authorised Signatory(Required)Title / Designation(Required)Date of Signature(Required) MM slash DD slash YYYY Declaration(Required) I sign herewith that the information given above is true and accurate as at the date given above, and I am authorised to submit this on behalf of the company.
