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SANLAM GLOBAL FUNDS PLC
Annual audited financial statements
for the year ended 31 December 2015
SANLAM GLOBAL FUNDS PLC
ANNUAL AUDITED FINANCIAL STATEMENTS
for the year ended 31 December 2015
Contents
Company information
Directors’ report
Independent auditor’s report
Page(s)
1-4
5-9
10 - 11
Depositary’s report
12
Manager’s report
13
Economic & market review
14 - 20
Investment Manager’s reports
21 - 43
Statement of comprehensive income
of the Company
of the Funds
44
45 - 53
Statement of financial position
of the Company
of the Funds
54
55 - 63
Statement of changes in net assets attributable to holders of
redeemable participating shares
of the Company
of the Funds
64
65 - 73
Statement of cash flows
of the Company
of the Funds
74
75 - 83
Portfolio of investments
Analytics International Flexible Fund
Sanlam Global Balanced Fund
Sanlam Global Best Ideas Feeder Fund
Sanlam Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
NFB Global Balanced Fund of Funds
Sanlam BIFM World Equity Fund
Sanlam BIFM Global Fixed Income Fund
Mpile Global Equity Fund
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
Counterpoint Global Equity Fund
84 - 88
89
90
91
92
93
94
95
96
97 - 104
105
106
107 - 108
109
110 - 112
Notes to and forming part of the audited financial statements
SAMI Remuneration Policy (unaudited)
Leverage (unaudited)
Notice of Annual General Meeting
Proxy Form
113 - 238
239 - 242
243 - 244
245
246
0
SANLAM GLOBAL FUNDS PLC
COMPANY INFORMATION
Directors of Sanlam Global
Funds Plc (the “Company”)
Paul Dobbyn* – Irish
Thomas Murray* – Irish
Haydn Franckeiss (appointed 28 May 2015) – South African
Richard Aslett (appointed 14 August 2015) – British
Peter Murray* (resigned 31 December 2015) – Irish
All Directors are non-executive
Registered number
307841
Funds of the Company
Analytics International Flexible Fund
Sanlam Global Balanced Fund
Sanlam Global Best Ideas Feeder Fund
Sanlam Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
Sanlam International Multi Asset I Fund**
Verso Global Flexible Fund**
NFB Global Balanced Fund of Funds
Sanlam BIFM Emerging Markets Equity Fund**
Sanlam BIFM World Equity Fund
Sanlam BIFM Global Fixed Income Fund
Sanlam BIFM South Africa Inflation Linked Bond Fund**
Mpile Global Equity Fund
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
Counterpoint Global Equity Fund
Odyssey Global Equity Fund***
Registered office of the Company
Beech House
Beech Hill Road
Dublin 4
Ireland
Manager, Alternative Investment Fund
Manager & Secretary
Sanlam Asset Management (Ireland) Limited
Beech House
Beech Hill Road
Dublin 4
Ireland
Administrator
Sanlam Asset Management (Ireland) Limited
Beech House
Beech Hill Road
Dublin 4
Ireland
Registrar & Transfer Agent
Brown Brothers Harriman Fund Administration Services
(Ireland) Limited
30 Herbert Street
Dublin 2
Ireland
*Paul Dobbyn and Thomas Murray are considered independent Directors by the Irish Stock Exchange only. Peter Murray was also
considered an independent Director by the Irish Stock Exchange prior to his resignation effective 31 December 2015.
**Sanlam International Multi Asset I Fund, Verso Global Flexible Fund, Sanlam BIFM Emerging Markets Equity Fund, and Sanlam
BIFM South African Inflation Linked Bond Fund closed during the year ended 31 December 2015.
***Odyssey Global Equity Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company
on 30 October 2015. As of the date of approval of these financial statements, Odyssey Global Equity Fund has not yet been
launched.
1
SANLAM GLOBAL FUNDS PLC
COMPANY INFORMATION (CONTINUED)
Investment Managers
Sanlam Global Liquidity Fund
Sanlam Global Best Ideas Feeder Fund
Sanlam Global Equity Fund
Sanlam Investment Management (Pty) Limited
55 Willie van Schoor Avenue
Bellville 7530
South Africa
Sanlam Global Balanced Fund
Sanlam Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam US Dollar Liquidity Fund
Sanlam BIFM Global Fixed Income Fund
Sanlam BIFM World Equity Fund
Mpile Global Equity Fund
Sanlam FOUR Investments UK Limited*
1 Ely Place
London
EC1N 6RY
United Kingdom
Analytics International Flexible Fund
Canaccord Genuity Wealth (International) Limited
Collins Stewart House
P.O. Box 45
The Grange
St Peter's Port
Guernsey
GY1 4AX
Channel Islands
Investec Asset Management Limited
2 Gresham Street
London EC2V 7QP
United Kingdom
Sanlam BIFM World Equity Fund
Franklin Templeton Investment Management Limited
The Adelphi, 1-11 John Adam Street
London WC2N 6HT
United Kingdom
Schroder Investment Management Limited
31 Gresham Street
London EC2V 7QA
United Kingdom
NFB Global Balanced Fund of Funds
NFB Asset Management (Pty) Limited
NFB House, 108 Albertyn Avenue
Wierda Valley
Sandton
South Africa
Brackenham Global Balanced Fund
Brackenham Investments (Proprietary) Limited
14 Corporate Park, 11 Sinembe Crescent
La Lucia Ridge
Durban
South Africa
*Effective 31 July 2015, Sanlam International Investments Limited and Sanlam FOUR Investments UK Limited entered into a Deed
of Novation upon which the rights, obligations and liabilities of Sanlam International Investments Limited were transferred to Sanlam
FOUR Investments UK Limited.
2
SANLAM GLOBAL FUNDS PLC
COMPANY INFORMATION (CONTINUED)
Investment Managers (continued)
APS Global Flexible Fund of Funds
Associated Portfolio Solutions (Pty) Limited
Ground Floor, Pentagon House
Corner Cliffendale and Plettenberg Street
Faerie Glen, Pretoria
South Africa
Counterpoint Global Equity Fund
Counterpoint Boutique Pty Limited
Ground Floor,
Building No. 3 Tijger Park,
Willie Van Schoor Avenue,
Tyger Valley, Cape Town 7535
South Africa
Investment allocation manager*
Sanlam FOUR Investments UK Limited
1 Ely Place
London
EC1N 6RY
United Kingdom
Depositary
Brown Brothers Harriman Trustee Services
(Ireland) Limited
30 Herbert Street
Dublin 2
Ireland
Listing broker
Maples and Calder
75 St. Stephens Green
Dublin 2
Ireland
Auditor
Ernst & Young
Harcourt Centre
Harcourt Street
Dublin 2
Ireland
Irish legal adviser
Maples and Calder
75 St. Stephens Green
Dublin 2
Ireland
Stock lending agent
Brown Brothers Harriman & Co
50 Post Office Square
Boston
MA 02109
United States
*Sanlam FOUR Investments UK Limited is the Investment Allocation Manager for all Funds except Analytics International Flexible
Fund, Sanlam Global Best Ideas Feeder Fund, Sanlam Global Liquidity Fund, NFB Global Balanced Fund of Funds, Brackenham
Global Balanced Fund, APS Global Flexible Fund of Funds and Counterpoint Global Equity Fund.
3
SANLAM GLOBAL FUNDS PLC
COMPANY INFORMATION (CONTINUED)
Distributors
Sanlam Collective Investments Limited
2 Strand Road
Bellville 7530
South Africa
Sanlam Investment Management (Pty) Limited
55 Willie van Schoor Avenue
Bellville 7530
South Africa
Portfolio Analytics (Pty) Limited
54 Peter Place
st
1 Floor Aberdeen House
Peter Place Park
Bryanston
Johannesburg
South Africa
NFB Asset Management (Pty) Limited
NFB House, 108 Albertyn Avenue
Wierda Valley
Sandton
South Africa
BIFM
rd
3 Floor Block A
Fairgrounds Office Park, Fairgrounds
Gabarone
Botswana
African Life Financial Services (Zambia) Limited
741 Independence Avenue
st
1 Floor Mpile Park
Lusaka
Zambia
Associated Portfolio Solutions (Pty) Limited
Ground Floor, Pentagon House
Corner Cliffendale and Plettenberg Street
Faerie Glen, Pretoria
South Africa.
Counterpoint Boutique Pty Limited
Ground Floor,
Building No. 3 Tijger Park,
Willie Van Schoor Avenue,
Tyger Valley, Cape Town 7535
South Africa
4
SANLAM GLOBAL FUNDS PLC
DIRECTORS’ REPORT
The Directors of Sanlam Global Funds plc (the “Company”) present herewith their Annual Report together
with the audited financial statements for the year ended 31 December 2015.
RESULTS AND BUSINESS ACTIVITIES
Detailed investment reviews are included in the Reports of the Investment Manager on pages 21 to 43.
The results of operations are set out in the Statement of Comprehensive Income on pages 44 to 53.
The Directors also draw your attention to the significant events during the year disclosed in Note 22 on
pages 237 to 238.
PRINCIPAL RISKS AND UNCERTAINTIES
The Company is exposed to the risks associated with the financial instruments and markets in which the
Funds invest. The Directors draw your attention to Note 18 on pages 177 to 221 which outlines the
financial risks associated with meeting the Company’s investment objectives. The Directors are not aware
of any existing or contingent liability of the Funds that may expose the assets of the Company as a whole.
DIVIDENDS
The Directors have no current intention to make distributions from any Fund. All such profits shall be
retained in the relevant Fund.
DIRECTORS
The Directors of the Company during the year were as follows:





Paul Dobbyn (Irish)
Thomas Murray (Irish)
Haydn Franckeiss (South African)
Richard Aslett (British)
Peter Murray (Irish)
Paul Dobbyn is a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc.
Paul Dobbyn is also a Director of Sanlam Global Fund of Hedge Funds Plc, which the Directors resolved
to place into voluntary liquidation on 7 November 2014. Paul Dobbyn was also a Partner in Maples and
Calder until his resignation on 23 March 2015.
Thomas Murray is a Director of Sanlam Qualifying Investors Funds and Sanlam Universal Funds Plc.
Thomas Murray is also a Director of Sanlam Global Fund of Hedge Funds Plc, which the Directors resolved
to place into voluntary liquidation on 7 November 2014. On 07 October 2015, Thomas Murray was also
appointed as a Director of Sanlam Asset Management (Ireland) Ltd. (“SAMI”).
Haydn Franckeiss was appointed as a Director of the Company on 28 May 2015. Haydn Franckeiss is
also a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc.
Richard Aslett was appointed as a Director of the Company on 14 August 2015. Richard Aslett is the Chief
Executive Officer of SAMI. Richard Aslett is also a Director of Sanlam Qualifying Investors Funds Plc,
Sanlam Universal Funds Plc and SAMI.
Peter Murray (resigned 31 December 2015) was also a Director of SAMI, Sanlam Qualifying Investors
Funds Plc, Sanlam Universal Funds Plc and Sanlam Global Fund of Hedge Funds Plc before his
resignation effective 31 December 2015.
5
SANLAM GLOBAL FUNDS PLC
DIRECTORS’ REPORT (CONTINUED)
DIRECTORS’ AND SECRETARY’S INTEREST IN SHARES AND CONTRACTS
At 31 December 2015, Haydn Franckeiss held 39,547.68 shares in Sanlam Global Best Ideas Feeder
Fund. The other Directors who held office on 31 December 2015 had no interest in the shares of the
Company or Funds at that date or at any time during the financial year. None of the Directors has a
service contract with the Company. The Manager holds non-participating shares of the Company as
explained in the notes to the Financial Statements.
RELATED PARTIES
Disclosures in respect of related parties are contained in note 12 to the Financial Statements.
CONNECTED PARTIES
The Central Bank of Ireland AIF Rulebook section on "Dealings by management company, general
partner, depositary, AIFM, investment manager or by delegates or group companies of these" states that
any transaction carried out with the Company by a management company, general partner, depositary,
AIFM, investment manager or by delegates or group companies of these ("Connected Parties") must be
carried out as if negotiated at arm's length. Transactions must be in the best interests of the shareholders.
The Board of Directors is satisfied there are arrangements (evidenced by written procedures) in place, to
ensure that the obligations set out above are applied to all transactions with Connected Parties entered
into during the year and that all such transactions have complied with these obligations.
ACCOUNTING RECORDS
The measures taken by the Directors to ensure compliance with the Company’s obligation to keep proper
accounting records are the use of appropriate systems and procedures which are carefully implemented
by the Administrator. The accounting records of the Company are kept at Beech House, Beech Hill Road,
Dublin 4, Ireland.
SUBSEQUENT EVENTS
Other than as disclosed in note 23, up to the date of the approval of these financial statements there were
no events subsequent to the year end, which, in the opinion of the Directors of the Company, may have
had an impact on the financial statements for the year ended 31 December 2015.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Irish company law requires the Directors to prepare financial statements for each financial year which give
a true and fair view of the state of affairs of the Company and of the results of the Company for that year.
In preparing those financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

follow applicable accounting standards or disclose or explain material departures from them in the
financial statements;

provide a fair review of the development and performance of the Company and its subsidiaries;

give a description of principal risks and uncertainties that they face; and

prepare the financial statements on the going concern basis, unless it is inappropriate to presume
that the Company will continue in business.
6
SANLAM GLOBAL FUNDS PLC
DIRECTORS’ REPORT (CONTINUED)
STATEMENT OF DIRECTORS’ RESPONSIBILITIES (CONTINUED)
The Directors are responsible for keeping proper books of account which disclose with reasonable
accuracy, at any time, the financial position of the Company and to enable them to ensure that the
financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”)
as adopted by the EU and comply with the Irish Companies Act 2014. They are also responsible for
safeguarding the assets of the Company and in fulfilment of this responsibility, they have entrusted the
assets of the Company to the Depositary for safekeeping, in accordance with the Memorandum and
Articles of Association of the Company. The Directors are responsible for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
CORPORATE GOVERNANCE CODE
The European Communities (Directive 2006/46/EC) Regulations (S.I. 450 of 2009 and S.I.83 of 2010) (the
“Regulations”) requires the inclusion of a corporate governance statement in the Directors’ Report.
Although there is no specific statutory corporate governance code applicable to Irish collective investment
schemes whose shares are admitted to trading on the Irish Stock Exchange (“ISE”), the Irish Funds
Industry Association (“IFIA”) has published a corporate governance code (“IFIA Code”) that may be
adopted on a voluntary basis by Irish authorised collective investments schemes. This code became
effective from 1 January 2012, with a twelve month transitional period. It should be noted that the IFIA
Code reflects existing corporate governance practises imposed on Irish authorised collective investment
schemes, as noted above.
On 19 December 2012, the Board of Directors voluntarily adopted the IFIA Code as the Company’s
corporate governance code. The Board of Directors has assessed the measures included in the IFIA
Code as being consistent with its corporate governance practises and procedures for the financial year.
The code is available at www.sanlam.ie.
In addition to the IFIA Code, the Company is subject to corporate governance practices imposed by:
i)
ii)
iii)
iv)
v)
vi)
The Irish Companies Act 2014, which is available for inspection at the registered office of the
Company. It may also be obtained at http://www.irishstatutebook.ie/eli/2014/act/38/enacted/en/html.
The Articles of Association of the Company which are available for inspection at the registered office
of the Company at Beech House, Beech Hill Road, Dublin 4, Ireland and the Companies Registration
Office in Ireland.
The Central Bank of Ireland in their AIF Rulebook for Retail Investor AIFs which can be obtained
from the Central Bank of Ireland website at http://www.centralbank.ie/regulation/industrysectors/funds/aifmd/Pages/default.aspx and are available for inspection at the registered office of the
Company.
The ISE through the ISE Code of Listing Requirements and Procedures which can be obtained from
the
ISE’s
website
at
http://www.ise.ie/Products-Services/Investment%20Funds/List-aFund/Open%20ended%20rules.pdf?v=1032015.
SAMI's Programme of Activity, Business Plan and Code of Conduct, which are available for
inspection at the registered office of SAMI at Beech House, Beech Hill Road, Dublin 4, Ireland.
SAMI is also subject to the Corporate Governance Code of the Sanlam Group.
The Board of Directors is responsible for establishing and maintaining internal control and risk
management systems of the Company in relation to the financial reporting process. Such systems are
designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial
reporting objectives and can only provide reasonable and not absolute assurance against material
misstatement and loss. The Board of Directors has delegated this duty to SAMI.
7
SANLAM GLOBAL FUNDS PLC
DIRECTORS’ REPORT (CONTINUED)
CORPORATE GOVERNANCE CODE (CONTINUED)
SAMI is appointed as administrator to maintain the books and records of the Company. SAMI is
authorised and regulated by the Central Bank of Ireland and must comply with the rules imposed by the
Central Bank of Ireland. SAMI also monitors and evaluates the external auditor's performance,
qualifications and independence.
The Company has procedures in place to ensure all relevant books of accounts are properly maintained
and are readily available, including production of annual and half-yearly financial statements. The annual
financial statements of the Company are required to be approved by the Board of Directors of the
Company and the annual and half yearly financial statements are required to be filed with the Central
Bank of Ireland and the ISE.
The statutory financial statements are required to be audited by the independent auditors who report
annually to the Board on their findings. The Board of Directors evaluates and discusses significant
accounting and reporting issues as the need arises.
Shareholders’ meetings
The convening and conduct of shareholders meetings are governed by the Articles of Association of the
Company and the Companies Acts. Although the Directors may convene an extraordinary general
meeting of the Company at any time, the Directors of the Company are required to convene a general
meeting within eighteen months of incorporation and fifteen months of the previous annual general
meeting thereafter. Shareholders representing not less than one-tenth of the paid up share capital of the
Company may also request to convene a shareholders meeting. Not less than twenty one days’ notice of
every annual general meeting and any meeting for the passing of a special resolution must be given to
shareholders and fourteen days’ notice must be given in the case of any other general meeting unless the
auditors of the Company and all the shareholders entitled to attend and vote agree to shorter notice.
Two members present either in person or by proxy constitutes a quorum at a general meeting provided
that the quorum for a general meeting convened to consider any alteration to the class rights of shares is
two shareholders holding or representing by proxy at least one third of the issued shares of the relevant
Funds or class.
Every holder of participating shares or non-participating shares present in person or by proxy who votes
on a show of hands is entitled to one vote. On a poll, every holder of participating shares present in
person or by proxy is entitled to one vote in respect of each share held by him and every holder of nonparticipating shares is entitled to one vote in respect of all non-participating shares held by him. The
chairman of a general meeting of the Company, or at least two members present in person or by proxy, or
any holder or holders of participating shares present in person or by proxy representing at least one-tenth
of the shares in issue having the right to vote at such meeting, may demand a poll.
Shareholders may decide to sanction an ordinary resolution or special resolution at a shareholders’
meeting. An ordinary resolution of the Company (or of the shareholders of a particular Fund or class)
requires a simple majority vote cast by the shareholders voting in person or by proxy at the meeting at
which the resolution is proposed. A special resolution of the Company (or of the shareholders of a
particular Fund or class) requires a majority vote of not less than 75% of the shareholders present in
person or by proxy and voting in general meeting in order to pass a special resolution including a
resolution to amend the Articles of Association.
Composition and Operation of the Board
Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number
of Directors may not be less than two. Currently the Board of Directors of the Company is composed of
four Non-Executive Directors, being those listed on page 1 of these financial statements with Paul
Dobbyn, Thomas Murray and Richard Aslett being Irish residents. None of the Company’s Directors hold
common directorships with the Depositary.
8
SANLAM G LOBAL FUNDS PLC
REPORT OF THE DEPOSITARY TO THE SHAREHOLDERS
12
SANLAM GLOBAL FUNDS PLC
MANAGER’S REPORT
Sanlam Asset Management (Ireland) Limited (“SAMI” or the “Manager”) presents herewith the Manager’s
Report for the year ended 31 December 2015.
SAMI has been appointed to serve as the Company's administrator and Alternative Investment Fund
Manager ("AIFM") and to manage the assets of each Fund in accordance with its investment objective and
policies as determined by the AIFM and any subsequent changes thereto.
As the AIFM, SAMI has responsibility for the management and administration of the Company's affairs
and distribution of the Shares, subject to the overall supervision and control of the Directors of the
Company. SAMI has delegated the performance of certain of its investment management functions in
respect of the Company to the Investment Allocation Manager and the Investment Managers. In addition,
SAMI has delegated the performance of certain of its distribution functions in respect of the Company to
the Distributors. These delegation arrangements have been notified to the Central Bank and made in
accordance with SAMI's outsourcing/delegation policy, its Programme of Activity, the AIFM Regulations
and the AIF Rulebook. SAMI will notify the Central Bank before any further delegation becomes effective
and will be able to justify its entire delegation structure with objective reasons.
Performance and Investment Activities
An overall review of the economic environment is detailed in the Economic and Market Review on pages
14 to 20.
The performance and investment activities of the individual Funds of the Company are set out in the
Investment Managers’ reports on pages 21 to 43.
Material Changes
The AIFMD requires certain information to be made available to investors in AIFs, including the Company,
before they invest and requires that material changes to this information be disclosed in the annual report.
The Company’s Prospectus and the Supplement of each Fund of the Company, which sets out
information on the Company’s investment strategy and policies, leverage, risk, liquidity, administration,
management, fees, conflicts of interest and other shareholder information is available on the AIFM’s
website at www.sanlam.ie. There have been no material changes (other than those reflected in these
financial statements) to this information requiring disclosure. Any information requiring immediate
disclosure pursuant to the AIFMD will be disclosed to shareholders as and when it arises.
Portfolio Overview
The portfolios held by the individual Funds are disclosed on pages 84 to 112.
Other risk disclosures
The financial risk disclosures relating to the Company’s risk framework and liquidity risk are set out in note
18 of the notes to and forming part of the audited financial statements on pages 177 to 221.
SAMI Remuneration Policy
The remuneration policy of the Manager for the year ended 31 December is disclosed on page 239 to
242.
Leverage
The leverage of each Fund of the Company, as determined using the methodologies prescribed under the
AIFMD is disclosed on pages 243 to 244.
13
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW
for the year ended 31 December 2015
Global Economic Review
Amongst developed economies, the recovery in the US and UK continued in the latter half of 2015,
while a mild upswing took hold in the Euro area. Generally, the recovery in real economic activity
reflects firmer household consumption expenditure, partially due to the support lent to real disposable
income growth by the collapse in oil prices. Unemployment rates have trended lower and the fall in
commodity prices has boosted the terms of trade and purchasing power of commodity importers.
In the US, specifically, credit extension, while moderate, has recovered from the financial crisis slump.
US households have deleveraged and their net wealth has bounced. In addition, jobs growth data has
been especially buoyant. Further, the US housing market held up in 2015. Homebuilder sentiment has
been elevated and house price growth remained moderate. Pending and existing home sales data
weakened in the final months of the year, but housing starts and permits trended higher through last
year. That said real GDP growth did slow appreciably in the world’s largest economy in the final
quarter of 2015.
Meanwhile, growth expectations for emerging market economies were revised substantially lower
through the past year, reflecting the adverse impact of soft external demand, falling terms of trade
amongst commodity producers, softer productivity growth, weaker corporate profitability, geopolitical
tension and stubbornly high inflation in some cases.
Tighter global financial market conditions exposed the vulnerability of numerous emerging market
economies, notably those running macroeconomic imbalances.
China was a focal point as industrial production growth slowed to its lowest level since the global
financial crisis. Concern also mounted over the country’s high debt level, including non-financial
corporations’ debt, amidst slowing income growth. Accordingly, China’s policymakers eased policy,
including cuts in the benchmark rates of the Peoples Bank of China and reductions in the Reserve
Requirement Ratio of banks. In addition, the monetary authorities managed the Yuan weaker, which
is not surprising considering the extent of real appreciation of China’s currency since the financial
crisis, the concomitant decline in the country’s current account surplus in recent years and the
exceptionally low level of inflation.
Also, partially reflecting softening production levels in China, global industrial production growth,
which stalled in the first half of 2015, remained weak in the latter half of the year. In particular, the
December 2015 global manufacturing purchasing managers’ index (PMI) release disappointed with
declines recorded in the US and China. Overall, the PMI output index remained consistent with low,
single digit global industrial production growth at best. One consequence of this was continued
downward pressure on commodity prices, including oil prices which declined to their lowest level since
the global recession by the end of the year.
Given tepid growth and lower commodity prices, global headline inflation was well contained in 2015,
although there were notable exceptions in developing countries including Brazil, Russia and Turkey.
Core inflation in developed economies remained stable at a relatively low level.
The monetary policy stances of the European Central Bank (ECB) and the US Federal Reserve
continued to diverge. In Europe, non-harmonised consumer price inflation advanced just 0.2 per cent
in the year to December 2015. Concern over possible deflation in the Euro area, in addition to the lack
of real GDP growth, encouraged the European Central Bank (ECB) to announce an extension of its
sovereign quantitative easing programme (initially introduced on 22nd January 2015) at the
conclusion of the ECB Governing Council meeting in early December 2015.
14
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Global Economic Review (continued)
In contrast, encouraged by the ongoing economic recovery and relative buoyancy of employment
data, the US Federal Reserve Open Market Committee, which concluded its asset purchase
programme in October 2014, shifted towards a less accommodative monetary policy stance,
increasing the target range for the federal funds rate from ¼ to ½ per cent at the conclusion of its
monetary policy meeting on 16 December 2015 (from the previous range on 0 to 1/4 per cent). The
marked divergence in monetary policy stances between the ECB and the US Federal Reserve
contributed to sustained US$ strength in 2015.
Global Economic Outlook
Available data suggests global real GDP growth slowed materially in the final quarter of 2015. There
is also little to suggest a sustained robust upswing is likely anytime soon amidst constrained
productivity, disappointing global trade activity and fixed investment levels, tighter financial sector
regulation, geo-political tension and the credit overhang in a number of EM economies. Also, the
collapse in oil prices is expected to continue placing severe downward pressure on income growth,
purchasing power and government revenue streams amongst oil producers.
In large developed economies, quantitative easing may have stabilised economies, but has not
managed to lift trend growth rates. Rather, economic growth has persistently been lower than
expected in recent years. In essence, structural economic reform is required to lift trend growth,
notably in Europe.
China, the world’s largest commodity importer is likely to remain a focal point in the year ahead.
Although expansionary monetary and fiscal policy may underpin real economic activity for some time,
China’s long-term real GDP growth prospects have weakened. The country has over-invested and
productivity growth is slowing, given diminishing returns on investment as more and more capital
stock has been added per worker. Ultimately, an adjustment appears likely through a decline in the
ratio of fixed investment to GDP.
Core inflation rates in developed economies are low and stable, while inflation expectations are well
contained. Given the collapse in oil prices and constrained real economic activity, inflation is expected
to remain relatively low, given some notable exceptions mainly in EM economies.
Indeed, sustained low inflation prompted the ECB, in early January 2016, to signal its intention of
easing monetary policy further. In the same month, the Bank of Japan, which remains determined to
push inflation up to 2 per cent, shifted to negative interest rates, by applying a -0.1 per cent interest
rate on the portion of reserves held in current accounts by financial institutions at the Bank over and
above reserves held due to policy requirements or policy action. It also indicated further decreases in
this interest rate would be implemented if necessary.
In contrast the Bank of England is expected to commence an interest rate hiking cycle in 2016, while
the US Federal Reserve is also expected to continue increasing its policy rate. To date, the message
from the US Federal Open Market Committee (“FOMC”) has been relatively straightforward, arguing
that a falling unemployment rate may lift wages and ultimately inflation. This is a debatable point.
Admittedly, the non-farm payrolls data has remained firm and the unemployment rate has declined
meaningfully. And, although inflation is expected to remain low in the near term, the FOMC does
project an increase in inflation over the medium to long-term, which appears reasonable considering
that the favourable impact of lower commodity prices is likely to fade at some point. However, the
recent softening in real economic activity may give the US Federal Reserve pause for thought. In any
event, the FOMC has indicated that further increases in the federal funds rate are likely to be
implemented at a gradual rate, while also expecting the federal funds rate to remain below its
expected long-term level “for some time”. This suggests a mild US interest rate hiking cycle.
On balance, it appears as if we can expect “more of the same” in 2016 as global nominal growth
remains modest (with risk seemingly skewed to the downside) and real interest rates remaining low.
15
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Market Review
The first quarter of 2015 continued with the oil theme from the end of 2014, which saw the oil price
decline further, however this appeared to find a bottom around $50 a barrel, and has subsequently
seen a slight drift up in price. The consequence of this fall in the oil price has been that US onshore
shale gas rigs have started to shut down, and this is a major factor in closing the global over supply of
oil, which is now estimated to be less than 1% excess, hence equilibrium between supply and
demand is now much closer to being achieved. January also saw markets focus on the Greek
elections and, while there was initial concern about Syriza’s victory and their rhetoric, in practice, the
Greek situation has meant there is little room for them to negotiate with the Troika, and so Syriza’s
stance has been somewhat symbolic for the Greek electorate. That said the importance of Greece
and their potential exit from the Eurozone has become increasingly less of an issue, as has the
potential contagion effects from that for the rest of the Eurozone. Additionally issues during the first
quarter, where the harshness of the US winter, which will impact US GDP, and consequently the
timing of the US Federal Reserve’s interest rate hike. There were also concerns about the slowdown
of the Chinese economy, and currency movements were also a theme, most noticeably focused on
the Swiss franc, which in turn was in advance of the European Central Bank announcing its own
quantitative easing program.
The second quarter of 2015 really saw the market focus on four main things. Firstly, the oil price,
which had been a theme from recent quarters, appears to have stabilised and moved north of $60 a
barrel, only to drift below that post quarter-end. Secondly, and perhaps most importantly, the market
continues to anticipate when the US Federal Reserve will raise interest rates, and for the majority of
the quarter it looked like the first rise would come in September 2015, the likelihood of this continues
to be pushed back and so December 2015 could turn out to be the month when the first interest rate
rise is implemented. However, the market continues to be uncertain as to when this first hike will
come, and this remains a point of discussion and uncertainty. Thirdly, as the quarter progressed the
issues around Greece gained increased attention, which has significantly dented current market
confidence and was a material contributor to the market declines seen in June. The snap referendum
in the first weekend of July, and subsequent “No” vote – a rejection of further austerity, at the time of
writing, has failed to resolve the deadlock, though ultimately a resolution and agreement between
both sides remains possible. Finally, and perhaps less obvious to many is that there have been
significant gyrations in the domestic Chinese equity market. These events have led Chinese
authorities to recently announce some measures to help support the market, to try and manage and
contain any effects to the wider Chinese economy and domestic sentiment. It remains unclear
whether these measures will be successful and what the impact on the Chinese economy will be.
The third quarter of 2015 has been a difficult period for most investors with volatility and uncertainty
spreading throughout global markets. Identifying the exact trigger for this is difficult, but the longevity
of the equity bull market was almost certain to suffer a setback at some point, and this last quarter has
definitely witnessed that. Clearly the issues within the domestic Chinese equity market, which were a
significant contributing factor to the Chinese managing a devaluation in their currency early in the
quarter was a significant event, and subsequently investors’ concerns have grown. China is a
significant contributor to the global economy, but perhaps even more importantly to the global
economic growth rate. With early signs of a slowdown in China the market became increasingly
bearish and moved into a risk averse outlook. The other major event during the quarter was actually
one that did not happen, and that was in September when the US Federal Reserve decided not to
raise interest rates, which would have been the initiation of their formal interest rate tightening cycle.
Even in advance of the announcement, the market was sure it was a close call, but many
commentators now think that an opportunity has been missed by the Federal Reserve, and that with
interest rates so low there are stored up risks building for the future. From the Federal Reserve’s own
perspective they continued to see risks to the downside and a lack of inflationary pressures to justify
any move. The ongoing saga of when US interest rates will increase has now been extended once
again. Another event during the period was the escalation of geopolitical events in the Middle East,
which has also not helped investor confidence during the quarter.
16
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Market Review (continued)
The fourth quarter of 2015 would have appeared to be an easier quarter for investors, if one were to
look at the direction of equity markets. However, the quarter was a challenging one. The global
economic picture that started to soften during the third quarter continued to weaken into the fourth
quarter. This has led certain investors to identify May 2015 as the beginning of a bear market. This
has created a bearish sentiment in the market which has been a major factor influencing the market’s
view of where to invest. The apparent declining level of Chinese economic activity has remained an
issue, and one that has attracted increasing concern. The quarter will probably be remembered
though as being when the US Federal Reserve finally raised interest rates. In December the US
Federal Reserve raised interest rates by 0.25% to 0.50%. This was the first US Federal Reserve
interest rate rise since 2006. Another major factor during the quarter was the further decline in the oil
price, which appeared to have very broadly stabilised around the $50 a barrel level, decreased further
in the period. This took the oil price well below $40 and on its way towards $30. The quarter saw
some mild rises in volatility, all of which reflected the markets increased nervousness.
Equity Market Review
For the first quarter of 2015, global equity markets as measured by the MSCI World Index, rose
2.31%. The quarter proved challenging with intra-quarter movements once again providing some
meaningful differences. January was a volatile month which saw markets continuing the fall from
December with an aggressive fall in the first week of the quarter, this reversed somewhat during the
rest of January and so the month ended with a return of -1.81%. The recapture of the initial losses in
the quarter continued strongly in February with a very strong and consistent month, resulting in a
return of 5.86%. March was in many regards a repeat of January where markets started off poorly
dropping roughly -3.4%, followed by a strong recovery into the third week of the month recouping all
the losses month to date. During the final week of March markets turned down once again and ended
the month -1.57% behind.
Overall it was a strong first quarter for most regions with the only exception being North America
which was up only 0.76%. Japan led the regions with a very strong quarterly return of 10.21%, this
was at least partly due to tailwinds of the Japanese Government Pension Investment Fund’s move
into stocks, an expectation of wage increases and some improvement in corporate performance.
Europe also experienced a strong quarter with new market optimism in the region which can largely
be attributed to the start in quantitative easing, resulting in a rise of 3.45%. Emerging Markets underperformed Developed Markets for the quarter with a return of 2.24%, although the two effectively
performed in line with each other.
While the oil price has recovered marginally, the Energy sector continued on its decline and returned
-3.97% for the quarter after significant declines in the last six months of 2014. The only other sector to
produce a negative return over a strong quarter in world markets was Utilities that returned -5.12%,
which had been one of the best performing sectors in 2014. The strongest performing sector for the
quarter was Health Care which returned 8.29%, followed by Consumer Discretionary which returned
5.83%. Consumer Staples, Industrials, Information Technology, Materials and Telecommunication
Services all returned in the region of 2% over the quarter. Of the positive returning sectors Financials
was the poorest performing sector with a return of only 0.75%.
For the second quarter, global equity markets as measured by the MSCI World Index, rose 0.31%.
The market moved around quite a bit in April, but was on a general upward trend, ending up in a
2.35% gain for the month. May started more cautiously, but still resulted in the market drifting upwards
by 0.34% for the month. June, even from the start saw the market mood become more pessimistic,
and despite a bounce in the middle of the month, the concerns towards the end of the month
overwhelmed everything leading to a decline of -2.35%, and thus resulting in the broadly flat quarter.
To the end of June, global equity markets were then up by around 2.6%.
17
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Equity Market Review (continued)
Looking at the regional equity markets, Japan once again led the way rising by over 3% for the quarter.
Meanwhile Europe slightly out-performed North America with returns of 0.36% and 0.11% respectively.
The Pacific excluding Japan was the material laggard with a decline of -2.48% over the period. Emerging
Markets out-performed this region and both Europe and North America, with a return of 0.69%, and
consequently out-performed Developed Markets for the quarter. On a year-to-date basis Japan has risen
almost 14%, while Europe is up nearly 4%, and North America and Pacific excluding Japan are up, but
each by less than 1%; Emerging Markets are under-performing Developed Markets by about -1% to the
end of June.
At a sector level only four of the ten sectors produced positive returns for the quarter. Telecommunication
Services led the way with a rise of 3.40%, while Financials gained 1.63%, and Health Care and Consumer
Discretionary rose 1.52% and 1.12% respectively. Of the declining sectors Information Technology was
the least poor, with a fall of only -0.39%, while Materials and Consumer Staples declined by less than -1%.
Industrials fell by -1.09%, and Energy by -1.15%, while Utilities were the weakest global sector falling by
-2.92%. Year-to-date Health Care is the best performing sector rising almost 10%, while Utilities is the
weakest sector declining nearly -8%. The Energy sector is the only other sector with a negative absolute
decline in 2015, with a fall of -5.08%.
For the third quarter, global equity markets as measured by the MSCI World Index, fell -8.45%. The
market moved moderately upwards in July, but as fears started to grow the market suffered a set-back in
the second-half of July, but one from which it recovered somewhat before month-end. However, in August
with the negative backdrop and investor caution becoming increasingly prevalent the market moved
sideways before selling off sharply mid-month, which saw the VIX index, a measure of volatility, spike
above 40 for the first time since 2011 – it has barely exceeded 25 since such time. August saw markets
decline over -6.6% and was the weakest month for global equities since May 2012. September continued
in much the same vain as August, but not quite as aggressively, and so equity markets sold-off by almost
-3.7%.
Looking at the regional equity markets, the MSCI Pacific excluding Japan was the weakest performer in
the quarter declining by nearly -16%. This was directly related to the contagion effects from the Chinese
domestic market. Japan was the next weakest region declining by -11.8%, while Europe decreased -8.7%
and North America was the most resilient at -7.3%. With the risk-off environment the quarter also saw
Emerging Markets sell-off materially with a decline of -17.9%. This meant that they under-performed
Developed Markets materially for the period, however Emerging Markets actually out-performed
marginally in the month of September.
At a sector level the defensive nature of the quarter was clearly evident. The Utilities sector was the best
performing sector, and the only one to produce a positive absolute return of 0.1%. This was followed by
Consumer Staples which declined -1.14%. Then there was a significant gap to Information Technology,
which was the third best performing sector, with a return of -5.1%. Consumer Discretionary and
Telecommunication Services were the other two sectors to out-perform the wider market. The weakest
sector was Materials falling -19.6%, followed by Energy at -18.1%, both of which suffered from the sell-off
in underlying commodities. Financials was the third weakest sector falling -9.5%, while Health Care with a
decline of -9.4% was the clear exception to the defensive nature of the quarter.
For the fourth quarter, global equity markets as measured by the MSCI World Index, rebounded strongly
after the weak, or rather dismal as some might put it, third quarter; the index rose 5.50%. The strong
performance can be quite safely called a rebound in that the positive performance was only due to the
month of October where the index rose 7.92%. The subsequent months of November and December saw
markets capitulating again with returns of -0.50% and -1.76% respectively. 2015 proved to be a volatile
year with global growth and a Chinese slowdown at the forefront of concerns. For the calendar year the
index returned -0.87% - hence equities effectively delivered a flat return for 2015.
18
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Equity Market Review (continued)
Looking at the regional equity markets, further evidence of the rebound from the third quarter can be
found, with the MSCI Pacific excluding Japan, which was the weakest market of the third quarter, being
the second strongest market of the fourth quarter, with a rise of 8.29%. Japan was the leading market for
the quarter with a return of 9.34%. North America out-performed the global equity market slightly, and
Europe was the clear laggard producing a return just shy of 2.5%. However, Emerging Markets were
weaker still, although they did manage to product a positive return for the quarter, although this was not
even 1%. For 2015 as a whole Japan was the best performing market rising over 9.5%, while the other
regional markets posted negative returns. Emerging Markets declined almost -15% in 2015.
For the fourth quarter, at a sector level Information Technology led the way with a rise of 8.85%. This was
followed by Health Care, Industrials and Telecommunication Services. Energy was the weakest sector for
the quarter, and the only sector to produce an absolute decline, of not quite -1%. Utilities were the second
weakest sector. Despite these sector performances, which appear to indicate a more positive bias, the
underlying tone of the market was focused on the defensive areas and those were what drove the market
higher. For 2015 as a whole Health Care was the best performing sector rising 6.60%, while Consumer
Staples rose 6.35%. Most of the sectors produced positive returns for 2015, but Energy was the major
faller with a decline of nearly -23%. Materials also declined substantially with a fall of over -15%, while
Utilities fell nearly -7%. Financials and Industrials also both produced negative absolute returns, but
significantly more moderate ones.
Fixed Income Market Review
Global bond markets continued with yet another difficult quarter in the first quarter of 2015. For the quarter
global bond markets, as measured by the Barclays Capital Global Aggregate Index, declined by -1.92%.
The market produced negative returns in all three months of the quarter. While January was fairly muted
with a return of -0.16%, February and March was significantly worse with returns of -0.81% and -0.96%
respectively. Non-sovereign markets, while still disappointing, performed somewhat better than the overall
aggregate market, albeit with a more volatile return profile for the period, with the Barclays Capital Global
Aggregate Corporate Index, producing a return of -1.18% for the quarter. Corporate bonds out-performed
the wider bond market in January and February, but were slightly behind in March.
The primary issues facing bond investors over the quarter where the timing of the US Federal Reserve’s
rise in interest rates, which continues to appear to slip, with some investors continuing to doubt that there
will be a rise in 2015. There remains a fine balancing act, and the strength of the US dollar has clearly
helped apply some gentle braking to the US economy. The European Central Bank’s quantitative easing
announcement had been well flagged and hence anticipated in concept by investors, although the fine
details of the program were unknown to the announcement. The European Central Bank continues to face
a difficult environment and the threat of persistent deflation, which is one of the major reasons why it has
embarked on this quantitative easing program. Whilst it is very early days, the raw initial signs are positive
in that Eurozone economic activity looks like it is starting to materially improve.
It was a volatile second quarter for global bonds, and there were significant moves, most notably in the
German 10-year bund, which saw yields back-up materially from extremely low levels: at their low these
reached 7 basis points, but backed up to just shy of 100 basis points during the quarter, and ended the
period at around 76 basis points. With this type of movement, it was unsurprising that global bond
markets, as measured by the Barclays Capital Global Aggregate Index, declined by -1.18% for the quarter
– the fourth consecutive quarterly decline. Global bond markets produced a positive return in April with a
rise of just over 1%, but this was more than wiped out in May with a decline of -1.79%. In June markets
once again declined, but by a more moderate -0.44%. As a result of these movements global bond
markets have fallen by more than -3% in 2015 so far, and have declined by more than -7% in the last
twelve months.
19
SANLAM GLOBAL FUNDS PLC
ECONOMIC & MARKET REVIEW (CONTINUED)
for the year ended 31 December 2015
Fixed Income Market Review (continued)
Turning to corporate bonds, the Barclays Capital Global Aggregate Corporate Index returned -1.55% for
the second quarter, which like the wider market saw a positive return in April, followed by declines in May
and June, although the extent of the fall in these two months was much more similar at around -1.15%.
Bond investors remain focused upon the timing of the US Federal Reserve’s first interest rate hike, and
quantitative easing by the European Central Bank and Bank of Japan. The Chinese Central Bank has also
continued to ease during the quarter with two 0.25% interest rate cuts, with one in May and one in late
June. This leaves the Chinese deposit rate at 2% at the end of the period.
Given the risk-off nature of the third quarter, the period saw global bond markets produce a positive
absolute return for the first time since the second quarter of 2014, and hence this was the best quarter for
bonds since then. For the quarter global bond markets, as measured by the Barclays Capital Global
Aggregate Index, rose by 0.85%. The quarter also saw bonds produce positive absolute returns in all
three months, albeit moderate rises of 0.2% and 0.1% in July and August respectively, while September
saw a 0.5% gain. The US 10-year Treasury started the period with a yield around 2.35%, although this fell
relatively smoothly during the quarter to end the period at around 2.04%. This remains well above the
2015 lows of around 1.64% seen around the end of January.
In the corporate bond market, the Barclays Capital Global Aggregate Corporate Index returned -0.05% for
the third quarter, which reflected the more risk-off environment. Corporate bonds produced a positive
return in July, and a flat return in September, but in August as concerns were rapidly escalating they soldoff and declined by -0.5% for the month. The sell-off was even more pronounced in the high yield
segments of the bond market as investors took flight to move to more protected areas of the overall bond
market.
During the fourth quarter global bond markets declined -0.92%, which suggested that the positive return in
the third quarter was potentially an exception to the pattern of negative absolute returns. The global bond
market rose very modestly during October, but then fell by nearly -1.7% in November, before regaining
some of that loss in December, but not nearly enough to return to positive territory. For 2015 as a whole,
global bond markets declined by over -3%, thus indicating that despite global equity markets mild negative
absolute return they still out-performed global bond markets. With the US Federal Reserve’s interest rate
tightening cycle underway investors are now increasingly cautious about the bond market.
In the corporate bond market, the Barclays Capital Global Aggregate Corporate Index returned -0.82% for
the fourth quarter. This meant that it marginally out-performed the wider global bond markets, but at that
same time could not avoid the negative sentiment around the bond market in general. For 2015, corporate
bonds declined by almost -3.6%, and therefore they under-performed the broader market.
20
SANLAM GLOBAL FUNDS PLC
ANALYTICS INTERNATIONAL FLEXIBLE FUND
Investment Objective
The investment objective of Analytics International Flexible Fund (the “Fund”) is to provide long-term
capital growth by diversifying investments across various asset classes providing the opportunity for real
capital growth. The Fund will not have any particular geographic or sectoral focus and intends to invest
principally in transferable securities in the form of cash and/or cash equivalents, global equities, real
estate investment trusts, global bonds, and global equity linked securities which are listed on Recognised
Markets.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 months
Inception
Fund USD-terms
0.27%
1.16%
-5.74%
4.20%
-0.38%
1.64%
Benchmark
0.59%
-0.27%
-5.11%
2.70%
-2.32%
4.19%
Excess return
-0.33%
1.43%
-0.63%
1.51%
1.94%
-2.55%
Note: The Fund benchmark is 60% MSCI All Country World/40% Citigroup WGBI. Performance figures longer than 12 months are
annualised. Figures are quoted gross of Investment Manager and AIFM fees.
The Fund was able to deliver pleasing alpha across 2015 at 1.94%, mainly due to the second and fourth
quarter returns strongly outperforming the benchmark. In these periods, the Fund produced returns of
1.16% and 4.20% respectively. The fourth quarter was characterised by a rebound in equity and listed
property markets which offset the negative returns that continued in global government bond markets. The
Fund produced a strong return over the quarter of 4.20% and in so doing managed also to deliver a return
that was well in excess of the benchmark return of 2.70%.
Fund Outlook
Global asset classes in general provided investors with very little in terms of returns over the calendar
year of 2015. The expected divergence of monetary policy between the US and the rest of the globe
materialised in December when the US Federal Reserve finally announced the long-awaited rise in their
benchmark interest rate. Commodity markets in aggregate continued their downward trend, with the price
of Brent Crude oil being particularly hard hit. Emerging Market currencies also took a beating over the
course of the year in the face of the stronger US dollar and Emerging Market equities in general had a
poor year.
Further uncertainty was added to the global investment arena when the Chinese authorities implemented
a policy of currency devaluation that threatens the already fragile Emerging Markets.
21
SANLAM GLOBAL FUNDS PLC
ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED)
Fund Outlook (continued)
The outlook for 2016 remains clouded at best with questions still being asked about the impact of lifting oil
sanctions against Iran on the oil market. The path of US interest rates will also lead to currency market
volatility and further devaluation moves by the Chinese will just increase this volatility. Very low yields on
investment grade bonds and the likelihood of further increases in US interest rates over the course of
2016 means that the Fund will continue to favour equity exposure over bonds. The Fund will exit the
energy sector during the first quarter of 2016 and the equity exposure will be focused on developed
market companies. The intention is also to include listed property exposure in the Fund.
Investment Managers
Canaccord Genuity Wealth (International) Limited
Investec Asset Management Limited
22
SANLAM GLOBAL FUNDS PLC
SANLAM GLOBAL BALANCED FUND
Investment Objective
Sanlam Global Balanced Fund (the “Fund”) aims to provide above average long-term capital growth.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
0.78%
-0.30%
-6.02%
3.71%
-2.07%
3.76%
Benchmark
0.86%
-0.20%
-5.22%
3.28%
-1.47%
4.26%
Excess return
-0.09%
-0.10%
-0.80%
0.44%
-0.60%
-0.49%
Note: The Fund benchmark is 65% MSCI World/35% Barclays Capital Global Aggregate Bond. Performance figures longer than 12
months are annualised. Figures are quoted gross of Investment Manager and AIFM fees.
2015 was a disappointing year for the Fund on both an absolute and relative basis. The Fund returned
-2.07% for the calendar year and under-performed its benchmark (65% MSCI World Index/35% Barclays
Capital Global Aggregate Index), which returned -1.47%, by -0.60%. On a quarterly basis, the Fund
underperformed over the first three quarterly periods by -0.09%, -0.10% and -0.80% respectively, while
the benchmark returned 0.86%, -0.20% and -5.22%. The fourth quarter was the strongest period for the
market, and could be seen as a bounce back after a poor third quarter, where the Fund’s index returned
3.28%. The Fund outperformed during this period with a relative return of +0.44%. The Fund now lags its
benchmark by -0.49% since inception while producing a positive absolute return of 3.76%.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data. Weakness in economic
growth is a common theme recently. This should perhaps not be seen as a surprise since the current
economic expansion is one of the longest in history. If we are to see gains in risky assets, the business
cycle will have to continue showing increases in revenue. A headwind is, of course, China and its
deceleration. The official GDP number out of China is 6.9% for 2015, whereas many market participants
believe in reality the rate of growth is as low as around 4%. The slowdown is also coupled with an
economy that is turning towards a consumer driven one with pressure, therefore, on industrials,
commodities and emerging markets to name a few. The US is grinding ahead slowly while the Eurozone is
in a weak recovery mode, although it is perhaps the region with the most tailwinds given QE and the weak
Euro of late. Monetary policy has dominated the investment world since the global financial crisis and we
expect this to continue into 2016. While the Fed has started raising interest rates in December of 2015, we
expect rates to remain at historical lows - as the ex-Fed Governor Ben Bernanke remarked in recent years
that there will be no rate normalization during his lifetime. The market is currently pricing in about half of
the proclaimed rate hikes by the Fed, which brings the level to 100bps. If anything is sure about 2016, we
are most likely to see a continuation of volatile and uncertain markets.
Investment Manager
Sanlam FOUR Investments UK Limited
23
SANLAM GLOBAL FUNDS PLC
SANLAM GLOBAL BEST IDEAS FEEDER FUND
Investment Objective
Sanlam Global Best Ideas Feeder Fund (the "Fund") invests substantially all of its assets in Sanlam
Global Best Ideas Fund (the "Master Fund"). The investment objective of the Master Fund is to provide
above average long-term capital growth by investing primarily in global equities which the Investment
Manager has identified as being undervalued and as offering above average growth potential.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
-1.03%
0.52%
-8.46%
4.16%
-5.15%
6.16%
Benchmark
2.31%
0.31%
-8.45%
5.50%
-0.87%
6.31%
Excess return
-3.34%
0.21%
-0.01%
-1.34%
-4.28%
-0.15%
Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees.
Global equity markets recovered some of their earlier losses during the last quarter of 2015, despite the
fact that many of the issues that are routinely trotted out as reasons for periodic bouts of poor
performance remain unresolved. The US Federal Reserve finally put paid to the “will they or won’t they”
(raise interest rates) speculation by raising their benchmark rate by 25bp in December. This was the first
interest rate rise in the US since mid-2006 and comes after almost seven years of close to zero percent
interest rates. Markets initially appeared to be quite sanguine about this development, but more recently
appear progressively more uncertain about the consequences. The Fed’s action was taken in response to
data that confirmed that a sustainable economic recovery has taken root in the US and is appropriate to
their domestic situation; however, from the perspective of most of the rest of the world, it is ill-timed and is
expected to exacerbate the pressure already being exerted on developing economies. The focus of
speculation is now expected to move to prognostications about the incidence and pace of future
increases.
For the year, the Fund returned -5.15%, while the benchmark MSCI World Index ended down 0.87%. By
far the largest part of the Fund’s underperformance came from the IT sector. In a period characterised by
a small number of spectacular winners, notably in speculative Information Technology “disrupters” (the
loftily valued so-called “FANGs” - Facebook, Amazon, Netflix and Google - which all returned in excess of
35% in 2015 - with Netflix at 134% and Amazon 118%), value-oriented investors were rarely on the front
foot. Forgotten IT stalwarts such as Oracle (3% of the Fund) fell 18%. Fund performance was not helped
by holdings in Hewlett Packard which gave back all of its considerable 2014 gains, despite a hoped for
value unlock in the form of a corporate split into two entities, nor by an ill-timed purchase of Apple. These
sector-specific headwinds were somewhat mitigated by continued exposure to Microsoft, which returned
22% for the year.
24
SANLAM GLOBAL FUNDS PLC
SANLAM GLOBAL BEST IDEAS FEEDER FUND (CONTINUED)
Fund Performance (continued)
The most notable sector contribution to relative performance came from Energy, where the Fund was both
underweight and not exposed to companies most highly geared to the oil price rout (e.g. Kinder Morgan 63%; National Oilwell Varco -47%). Notable share contributors to the Fund’s performance were its
holdings in Imperial Tobacco Group (+27%), the homebuilders NVR Inc (+28%) and Taylor Wimpey
(+42% since purchase), and the US insurer AIG (+12%). Major detractors outside of IT were Indonesian
financier Adira Dinamika (-54%), Potash Corporation (-36%; sold during the year) and Wal-Mart Stores (27%).
Fund Outlook
Whilst the market outlook for 2016 remains uncertain, based on current consensus expectations the Fund
offers a significantly more attractive valuation (fwd P/E: 16.1x vs. 18.1x and P/NAV: 1.6x vs. 2.1x) than the
overall market, while producing a similar return (ROE: 17.3% vs. 17.4%). Among other currently
underappreciated attributes, we believe that this positions the Fund well for the future.
Investment Manager
Sanlam Investment Management (Pty) Limited
25
SANLAM GLOBAL FUNDS PLC
SANLAM GLOBAL EQUITY FUND
Investment Objective
Sanlam Global Equity Fund (the “Fund”) aims to provide above average long-term capital growth.
Fund Performance
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
2.03%
1.16%
-7.77%
5.82%
0.73%
4.79%
Benchmark
2.31%
0.31%
-8.45%
5.50%
-0.87%
4.89%
Excess return
-0.28%
0.85%
0.67%
0.32%
1.60%
-0.09%
Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees
After a disappointing 2014, the Fund produced a better 2015, outperforming its benchmark in all quarters
barring the first. The Fund’s benchmark, the MSCI World Index, produced a return of -0.87% while the
Fund rose by 0.73%, hence the Fund outperformed by +1.60%. The markets were volatile throughout
2015 with quarterly returns of 2.31%, 0.31%, -8.45% and 5.50% respectively. The Fund underperformed
in the first quarter with a relative return of -0.28%. Post the first quarter, the Fund outperformed in both up
and down markets with relative returns of +0.85%, +0.67% and +0.32%. Since inception, the Fund
remains slightly behind its index with an annualised relative return of -0.09%.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data such as the US and
Chinese industrial production. Deflationary pressures also remain a concern. Weakness in economic
growth is a common theme. This should perhaps not be seen as a surprise since the current economic
expansion is one of the longest in history. If we are to see gains in risky assets, the business cycle will
have to continue with increases in revenue. A headwind is, of course, China and its deceleration. The
official GDP number out of China is 6.9% for 2015, whereas many market participants believe in reality the
rate of growth is as low as around 4%. The slowdown is also coupled with an economy that is turning
towards a consumer driven one with pressure, therefore, on industrials and commodities and emerging
markets to name a few. The US is grinding ahead slowly while the Eurozone is in a weak recovery mode,
although it is perhaps the region with the most tailwinds given the QE and weak Euro of late. Monetary
policy has dominated the investment world since the global financial crisis, we expect this to continue into
2016.
Investment Managers
Sanlam FOUR Investments UK Limited
Sanlam Investment Management (Pty) Limited
26
SANLAM GLOBAL FUNDS PLC
SANLAM EURO LIQUIDITY FUND
Investment Objective
The investment objective of Sanlam Euro Liquidity Fund (the “Fund”) is to provide a high degree of safety
of principal together with an investment return exceeding that available from cash deposits in Euro. The
Fund pursues its investment objective primarily by investing all of its assets in some or all of the classes of
shares of the Institutional Euro Liquidity Fund, a sub-fund of Institutional Cash Series plc (an Irish UCITS
open-ended umbrella investment company with variable capital) which, in the opinion of the Investment
Manager, will enable the Fund to achieve its investment objective.
Fund Performance
0.4%
0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund EUR-terms
-0.17%
-0.20%
-0.21%
0.09%
-0.49%
0.19%
Benchmark
-0.05%
-0.06%
-0.07%
-0.08%
-0.26%
0.23%
Excess return
-0.12%
-0.13%
-0.14%
0.17%
-0.23%
-0.04%
Note: The Fund benchmark is 7 Day LIBID Rate (Euro). Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees.
For 2015, the Fund returned -0.49%, while its Benchmark, 7 Day Euro LIBID, produced a return of -0.26%,
hence the Fund underperformed its benchmark by -0.23% over the year. Performance continues to be
disappointing as the Fund failed to produce a positive absolute return. That being said, the trend of returns
saw a change of direction in the fourth quarter, which was due to technical factors given the Fund’s small
size; this led to positive returns for the Fund over the fourth quarter. The relative returns for the Fund over
the four quarters were -0.12%, -0.13%, -0.14% and +0.17%. Given the Fund’s performance in 2015, the
Fund is now behind the benchmark since inception with an annualised relative return of -0.04%, while in
absolute terms the Fund has returned 0.19% since inception.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last
stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market
expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed
rate hikes for 2016 by the Fed, which will bring the level to 100bps. The Fed’s move to tighten is in
contrast to the ECB which are still fully committed to continuing with their QE program uninterrupted to
2017 when they will re-evaluate the program. Mario Draghi has reiterated that they will do whatever is
necessary in order to see the region climb away from its woes. We expect rates in the Eurozone to remain
at low levels for the foreseeable future, and therefore prospects for Euro cash funds to not improve
materially any time soon.
Investment Manager
Sanlam FOUR Investments UK Limited
27
SANLAM GLOBAL FUNDS PLC
SANLAM STERLING LIQUIDITY FUND
Investment Objective
The investment objective of Sanlam Sterling Liquidity Fund (the “Fund”) is to provide a high degree of
safety of principal together with an investment return exceeding that available from cash deposits in
Sterling. The Fund pursues its investment objective primarily by investing all of its assets in some or all of
the classes of shares of the Institutional Sterling Liquidity Fund, a sub-Fund of Institutional Cash Series
plc (an Irish UCITS open-ended umbrella investment company with variable capital) which in the opinion
of the Investment Manager will enable the Fund to achieve its investment objective.
Fund Performance
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
-1.0%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund GBP-terms
-0.51%
-0.53%
-0.53%
1.28%
-0.29%
0.05%
Benchmark
0.09%
0.09%
0.09%
0.09%
0.36%
0.45%
Excess return
-0.60%
-0.62%
-0.62%
1.19%
-0.65%
-0.39%
Note: The Fund benchmark is 7 Day LIBID Rate (Sterling). Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees.
For 2015, the Fund returned -0.29%, while its benchmark, 7 Day GBP LIBID, produced a return of
+0.36%, hence the Fund underperformed its benchmark by -0.65% over the year. Performance continues
to be disappointing as the Fund failed to produce a positive absolute return. The first three quarters
continued to be poor performers, as was the case in 2014 as well, while the fourth outperformed strongly.
The relative returns for the Fund over the four quarters were -0.60%, -0.62%, -0.62% and +1.19%. The
Fund’s performance benefitted from some technical issues in the fourth quarter, due to the Fund’s size.
Since inception the Fund has returned 0.05% to investors while its benchmark has returned 0.45%, hence
the Fund lags its benchmark by -0.39% since inception.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last
stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market
expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed
rate hikes for 2016 by the Fed, which will bring the level to 100bps. It was widely expected that the Bank
of England would started raising rates roughly six months after the Fed moved; this has shifted out to at
least 12 months recently. The change of perception might have something to do with headwinds being
anticipated in the UK, at least for sentiment. One of these is the question of a UK “BREXIT” from the
European Union later in 2016. Such an exit, we believe, is unlikely, however it looks like it will be a close
call and only time will give us the outcome. We expect UK interest rates to remain low for 2016.
Investment Manager
Sanlam FOUR Investments UK Limited
28
SANLAM GLOBAL FUNDS PLC
SANLAM GLOBAL LIQUIDITY FUND
Investment Objective
Sanlam Global Liquidity Fund (the “Fund”) aims to provide a return consistent with investment in a
combination of highly liquid Euro, Sterling and US Dollar Investments.
Fund Performance
6%
4%
2%
0%
-2%
-4%
-6%
-8%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
-5.41%
2.43%
-0.53%
-1.52%
-5.08%
1.01%
Benchmark
-5.32%
2.41%
-0.55%
-1.41%
-4.92%
1.17%
Excess return
-0.09%
0.02%
0.01%
-0.11%
-0.17%
-0.16%
Note: The Fund benchmark is a composite benchmark (45% US/40% EU/15% GB). Performance figures longer than 12 months are
annualised. Figures are quoted gross of Investment Manager and AIFM fees.
Cash markets remain a difficult environment for managers in the current economic environment of
historically low rates. 2015 was another disappointing year for the Fund, especially in absolute terms. The
Fund’s benchmark (45% 7 Day USD LIBID, 40% 7 Day EUR LIBID and 15% 7 Day GBP LIBID) produced
a return of -4.92% while the Fund returned -5.08%, hence the Fund underperformed by -0.17% in 2015.
The first and fourth quarters negatively detracted from relative performance while the second and third
quarters were marginal contributors. The benchmark produced volatile returns during the year, being
down -5.32% and up 2.41% in the first and second quarter, for example. The Fund produced relative
returns of -0.09%, +0.02%, +0.01% and -0.11% over the respective quarters. Since inception, the Fund
has returned an absolute number of 1.01% to investors while the benchmark produced a return of 1.17%.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last
stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market
expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed
rate hikes for 2016 by the Fed, which will bring the level to 100bps. However, developed market cash
yields are at all-time lows across the globe. Negative absolute rates are also becoming more of a reality in
investors’ minds – we are in unprecedented times. The continuing low current level of prevailing yields
means that almost all of the Fund’s return is going to be generated from currency movements – this we
expect will remain the case for the foreseeable future, barring a miraculous strong recovery across the
globe.
Investment Manager
Sanlam Investment Management (Pty) Limited
29
SANLAM GLOBAL FUNDS PLC
SANLAM US DOLLAR LIQUIDITY FUND
Investment Objective
The investment objective of Sanlam US Dollar Liquidity Fund (the “Fund”) is to provide a high degree of
safety of principal together with an investment return exceeding that available from cash deposits in US
Dollars. The Fund pursues its investment objective primarily by investing all of its assets in some or all of
the classes of shares of the Institutional Dollar Liquidity Fund, a sub-Fund of Institutional Cash Series plc
(an Irish UCITS open-ended umbrella investment company with variable capital) which in the opinion of
the Investment Manager will enable the Fund to achieve its investment objective.
Fund Performance
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
-0.10%
-0.20%
-0.30%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
-0.20%
-0.24%
-0.25%
0.52%
-0.16%
-0.01%
Benchmark
0.00%
0.01%
0.01%
0.02%
0.04%
0.07%
Excess return
-0.20%
-0.24%
-0.25%
0.50%
-0.19%
-0.08%
Note: The Fund benchmark is 7 Day LIBID Rate (US Dollar). Performance figures longer than 12 months are annualised Figures are
quoted gross of Investment Manager and AIFM fees.
For 2015 the Fund declined -0.16% while its benchmark, 7 Day USD LIBID, experienced a marginally
positive year returning 0.04%; hence the Fund underperformed its benchmark by -0.19%. It was another
difficult year, albeit better than the previous. The virtually flat returns in the cash market remain a
disappointment in a difficult environment where investors are struggling to find yield. Quarterly returns for
the benchmark can be said to be flat, with a range between 0.00% and 0.02%. The Fund underperformed
during the first three quarters with relative returns of -0.20%, -0.24% and -0.25%. During the fourth quarter
the Fed raised rates from 0.25% to 0.50%. This change in policy stance was reflected in the Fund’s return
where it took advantage of the long awaited hike by producing a more positive absolute return of 0.52%,
though a portion of this was also due to technical issues given the Fund’s small size. The Fund’s
performance in the fourth quarter did help it claw back much of the year’s underperformance. Since
inception, the Fund is behind its benchmark with an annualised relative return of -0.08%.
Fund Outlook
Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown
concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last
stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market
expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed
rate hikes for 2016 by the Fed, which will bring the level to 100bps. The extreme drop in oil during 2015,
and the low oil price at roughly $30 a barrel has knock-on effects, one of them being the demise of the
petrodollar and an indirect tightening of financial conditions – this is one reason why the Fed might want to
revise their hiking plans in 2016.
30
SANLAM GLOBAL FUNDS PLC
SANLAM US DOLLAR LIQUIDITY FUND (CONTINUED)
Fund Outlook (continued)
The falling oil price has also dragged down inflation expectations. If we were to see a significant downturn
in economic releases for the US economy in the first six months of 2016 (not that the numbers have been
great to start with), the Fed would most probably be revising their interest rate hiking plan.
Investment Manager
Sanlam FOUR Investments UK Limited
31
SANLAM GLOBAL FUNDS PLC
NFB GLOBAL BALANCED FUND OF FUNDS
Investment Objective
The investment objective of NFB Global Balanced Fund of Funds (the “Fund”) is to provide long-term
capital growth by diversifying investments across various asset classes providing the opportunity for real
capital growth. The Fund will not have any particular geographic or sectoral focus and intends to invest
principally in transferable securities in the form of cash and/or cash equivalents, global equities, real
estate investment trusts, global bonds and global equity linked securities which are listed on Recognised
Markets.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 months
Inception
Fund USD-terms
0.46%
-1.88%
-5.06%
3.51%
-2.77%
3.89%
Benchmark
0.03%
1.63%
0.69%
0.13%
2.49%
2.80%
Excess return
0.43%
-3.51%
-5.74%
3.38%
-5.26%
1.10%
Note: The Fund benchmark is G7 Inflation plus 2%. Performance figures longer than 12 months are annualised. Figures are quoted
gross of Investment Manager and AIFM fees.
The Fund is now two years old and, since then, it has produced an annualised return of 3.89%; just
outperforming its benchmark return of 1.10%. This is, however, not the investment horizon of the Fund
and therefore performance commentary will only be appropriate after September 2016 when the Fund
has a three-year track record (please note that the stated investment horizon is five years). The Fund is
down 5.26% over the last year, which is disappointing. The diversification benefits we would expect to
protect the Fund in markets like these just has not been there (i.e. we would expect in a falling equity
market for the bond, property and flexible income fund exposures to hold up better than they have).
Fund Outlook
Whilst we would prefer to return positive numbers to our investors, we are not wholly disappointed with the
performance of the Fund during the most recent period; 2015 specifically. During this time, the Fund was
down close to 3% while certain global equity markets were down between 5% and 10%. The average
balanced portfolio that we view as competitors to our investment proposition were down roughly the same
and in some instances were worse off during 2015.
Current market factors – including, amongst others, the effect of last December’s rate hike by the US
Federal Reserve, the ongoing slowdown in Chinese GDP growth and the collapse in the oil price – may
create opportunities for NFB Asset Management to increase the Fund’s global equity exposure where we
have run lighter than usual exposures (we have allocated the balance of this type of exposure to global
property assets). NFB Asset Management remain committed to exploiting these opportunities should they
arrive.
32
SANLAM GLOBAL FUNDS PLC
NFB GLOBAL BALANCED FUND OF FUNDS (CONTINUED)
Fund Outlook (continued)
Recently, there has been a change in the currency profile of the Fund (though, we would like to note, not
the currency exposure) as we have shifted, wherever we can, from Euro-denominated lines of the ETFs
held by the Fund into the equivalent US dollar lines.
Investment Manager
NFB Asset Management (Pty) Limited
33
SANLAM GLOBAL FUNDS PLC
SANLAM BIFM WORLD EQUITY FUND
Investment Objective
The investment objective of Sanlam BIFM World Equity Fund (the “Fund”) is to provide long-term capital
growth.
Fund Performance
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
-4.00%
-6.00%
-8.00%
-10.00%
-12.00%
-14.00%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
3.36%
1.16%
-12.23%
6.12%
-2.62%
0.24%
Benchmark
2.31%
0.31%
-8.45%
5.50%
-0.87%
3.66%
Excess return
1.05%
0.85%
-3.78%
0.62%
-1.75%
-3.42%
Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees.
The Fund returned -2.62% in USD terms during 2015, underperforming the benchmark MSCI World Index
return of -0.87%.
Our underweight to US equities and material overweight to European equities impaired the Fund’s relative
performance. Our overall underweight to information technology and an overweight exposure to energy
sectors detracted from Fund performance. Stock selection, notably in the consumer discretionary and
financials sectors, detracted from the Fund’s relative performance.
Our emerging markets exposure, notably in China, hurt relative performance as the market traded lower.
Our holding in South Korea aided Fund performance, driven by stock selection.
Fund Outlook
2016 will be characterised by divergent global economic growth and policy trends. We anticipate that
major trends seen in 2015, such as a strong US dollar, weak commodity prices, and persistent emerging
market hiccups, will continue in 2016.
As the US progresses with normalizing monetary conditions amidst modest economic recovery, investors
will contend with the high market volatility. Historically, value tends to outperform in interest rate rising
environments.
Europe continues to face myriad of risks, including faltering economic growth, peripheral debt crisis, and
political instability within the Monetary Union. The region has made significant progress to address fault
lines. Whilst we are not yet out of the woods, Europe continues to offer compelling attractive long-term
opportunities within global equities for long-term investors.
34
SANLAM GLOBAL FUNDS PLC
SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
Fund Outlook (continued)
Emerging and frontier markets will continue to face major challenges in 2016. Headline valuations
continue to be attractive as indicated by trend earnings multiple. It should be noted that emerging markets
are not homogenous. We see select opportunities in this diverse market which continues to warrant an
overweight exposure.
In recent years, the world has witnessed China, Russia and Saudi Arabia exert themselves globally both
economically and militarily. International geopolitical instability remains a significant risk in 2016 and
beyond.
We anticipate continued market volatility in 2016 driven by continued diverged global policies, global
economic fragility, geopolitical flare ups, emerging markets and unexpected events. Global equity
valuations broadly remain attractive.
Investment Managers
Franklin Templeton Investment Management Limited
Sanlam FOUR Investments UK Limited
Schroder Investment Management Limited
35
SANLAM GLOBAL FUNDS PLC
SANLAM BIFM GLOBAL FIXED INCOME FUND
Investment Objective
The investment objective of Sanlam BIFM Global Fixed Income Fund (the “Fund”) is to provide income
and capital appreciation over the long-term. The Fund invests in offshore bonds, including both
government and corporate bonds, to achieve the Fund’s objective.
Fund Performance
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
-1.24%
-1.12%
-0.13%
-0.75%
-3.20%
-1.67%
Benchmark
-1.92%
-1.18%
0.85%
-0.92%
-3.15%
-1.85%
Excess return
0.68%
0.06%
-0.98%
0.17%
-0.05%
0.18%
Note: The Fund benchmark is Barclays Capital Global Aggregate Bond Index. Performance figures longer than 12 months are
annualised. Figures are quoted gross of Investment Manager and AIFM fees.
The Fund returned -3.20% during 2015, marginally underperforming the benchmark return of -3.15%.
Stock selection notably detracted from fund performance. Our tactical overweight to global high yield
exposure added value to relative performance as it outperformed sovereign bonds.
Fund Outlook
The US Federal Reserve commenced the much anticipated interest rate hike in December 2015. The Fed
policy normalization indicates the strength of the economic recovery and continued improvement in the US
employment data. Despite US inflation currently being below the Fed’s objective of 2%, we see scope for
it to trend upwards driven by continued economic recovery and rolling of the crude oil price decline. We,
therefore, anticipate that yields will trend upwards in the medium-term.
Monetary policies of major central banks will continue to diverge driven by the unsynchronized global
economic recovery. We continue to favour high yield in the current environment of interest rate rising as
yield spreads relative to sovereign bonds remain attractive. Yields remain low at nominal and real levels in
major developed capital markets. The world economy grew by 2.7% in the third quarter of 2015. China
was still the biggest contributor to world growth, despite its growth rate being below 7%, accounting for
40% of the world growth with the US as the third contributor, behind India’s contribution of 17% of global
growth (Economist).
Overall, given current market valuations, we continue to expect that, overall, sovereign bond yields will
have limited upside from these levels as the economic recovery gathers pace in the US. Global bonds will
continue to exhibit a high degree of volatility in the medium-term due to the current environment of
financial repression and fiscal policy uncertainty.
Investment Manager
Sanlam FOUR Investments UK Limited
36
SANLAM GLOBAL FUNDS PLC
MPILE GLOBAL EQUITY FUND
Investment Objective
Mpile Global Equity Fund (the “Fund”) aims to achieve capital appreciation in the long-term by investing
primarily in offshore markets. The objective of the Fund is to outperform its benchmark by selecting equity
funds that follow value investing principles which seek to capture mispricing opportunities relative to
intrinsic values.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
12 Months
Inception
Fund USD-terms
-0.14%
0.80%
-6.68%
6.88%
0.40%
-3.18%
Benchmark
2.31%
0.31%
-8.45%
5.50%
-0.87%
-1.96%
Excess return
-2.45%
0.49%
1.77%
1.38%
1.27%
-1.22%
Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are
quoted gross of Investment Manager and AIFM fees.
The Fund outperformed the benchmark, the MSCI World Index, for the full year 2015 returning 0.40%
against the benchmark’s return of -0.87%. The year was marked with increased volatility. Global capital
markets in the first half of the year posting gains as the European Central Bank announced an extensive
quantitative easing programme of 1.5 trillion Euro. However, the momentum was lost with the Greek crisis
and later a significant pullback from Chinese stocks which led to an overall decline in global markets as
investors feared that the slowing Chinese economy would have a ripple effect on global growth. Hence,
the third quarter saw global markets suffer losses. A rebound was witnessed during the fourth quarter as
the market adjusted to the previous quarter’s overreaction.
Notably, the European and Japanese markets fared well on account of quantitative easing and improving
corporate performance. The US dollar appreciated for most of the year reflecting a relatively stable
economy with improving employment, consumer spending and housing. However, the stronger dollar
presented an impediment to US exports.
In terms of individual sector performance, the consumer staples, health care and information technology
sectors aided the Fund’s performance. Given the difficult year, these non-cyclical sectors continued to
outperform most sectors. Detractors to the Fund’s performance included financials, energy and
telecommunications stocks. Oil prices fell to historical lows sending energy stocks tumbling due to
declining profitability while financial institutions exposed to the energy sector also came under stress.
37
SANLAM GLOBAL FUNDS PLC
MPILE GLOBAL EQUITY FUND (CONTINUED)
Fund Outlook
The Federal Open Market Committee (“FOMC”) of the US Federal Reserve decided to hike interest rates
for the first time since 2008, on the belief that US economic fundamentals, particularly regarding full
employment and inflation had reached levels that could withstand a higher rate. Additional rationale for
the hike, gleaned from the Governor’s comments, attested to the FOMC’s fear of a lack of sufficient
arsenal, should the need arise, were rates to remain at 0%.
The Fed had given initial indication of four rate hikes this year though the market expects them to hold off
and only increase rates once. In their January meeting, the Fed opted not to raise interest rates amidst
market volatility but would continue to monitor the global economy. They also raised concerns on inflation
and have lowered their consideration for full employment from an unemployment rate of 5.0% to 4.9%.
Looking forward, we anticipate the FOMC will take a prudent approach to rate hikes given the precarious
state of global economies and financial markets, with the state of Chinese markets and the Chinese
economy a particular concern due to its magnitude and extended interaction with other world economies.
We must bear in mind that China has been responsible for at least half of global GDP growth in these
recent lean times, so the outlook for that economy will have a strong bearing on worldwide GDP growth.
On the capital markets, 2016 has begun on a challenging note for global equities, and further rate hikes
could precipitate an extended bear market. At the start of the year, investors, jittery about the state of the
Chinese and global economy caused Chinese stock trading to be halted twice in the first week of
January. This was after the CSI 300 plunged 7% in 30 minutes and triggered automatic circuit breakers.
The S&P500 has fared no better, with a slide since the turn of the year that has seen an 8% drop in
value, unprecedented for the start of a new year.
Yet even more gloom may materialize, as we believe the equity market may hit a triple headwind of rising
interest rates, a strengthening dollar (caused by diverging monetary policy between the US and other
major economies), and stalled profitability as global growth remains anaemic. Another major concern is
the actual valuations of stocks, with the S&P500 at 17.1, FTSE 100 at 26.8, Nikkei 225 at 18.7, and other
developed market indices all high by historic standards. We expect a turbulent 2016 as investors react to
mixed-signals economic news from developing and emerging markets.
Despite the apparent headwinds, we believe opportunities may still arise from stocks that may be sold
below their intrinsic value as selloffs may be driven more by sentiment rather than fundamentals.
Additionally, part of the Fund’s defensive strategy is to hold high dividend paying stocks which tends to
limit the downside during times of significant volatility.
Investment Manager
Sanlam FOUR Investments UK Limited
38
SANLAM GLOBAL FUNDS PLC
BRACKENHAM GLOBAL BALANCED FUND
Investment Objective
The Brackenham Global Balanced Fund (the “Fund”) aims to provide capital growth.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Fund USD-terms
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
Inception
0.63%
-5.74%
3.44%
-2.85%
Note: The Fund has no benchmark. Figures are quoted gross of Investment Manager and AIFM fees.
Since inception (15 March 2015), the Fund’s performance was relatively flat until the downturn in the
markets in the third quarter. The return for the fourth quarter was 3.44%.
The year-to-date performance was -2.85% (Class A Shares) with the negative performance being due to
the market corrections experienced during this period.
Fund Outlook
The Fund was approved by the South African Financial Services Board in May 2015.
Due to the fact that the Fund is still in its first year, and additional investors will be added to the Fund in
the short to medium-term, short-term performance is difficult to predict. As new investment is received, the
investment managers will look for opportunities to acquire assets at reasonable prices which will assist in
providing positive growth during the remainder of the year.
For South African investors invested in the Fund, the Rand’s weakness during the course of 2015 has
resulted in the Rand performance of their investments being obviously favourable (in Rand terms).
Individual performance would depend on entry levels and would have varied significantly due to the
Rand’s volatility during the period under review.
Investment Manager
Brackenham Investments (Proprietary) Limited
39
SANLAM GLOBAL FUNDS PLC
APS GLOBAL FLEXIBLE FUND OF FUNDS
Investment Objective
The investment objective of APS Global Flexible Fund of Funds (the “Fund”) is to provide long-term capital
growth by diversifying investments across various asset classes providing the opportunity for real capital
growth. The Fund will not have any particular geographic or sectoral focus and intends to invest principally
in transferable securities in the form of cash and/or cash equivalents, global equities, real estate
investment trusts, global bonds and global equity linked securities which are listed on Recognised
Markets.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
Year to date
Inception
Fund USD-terms
0.46%
-6.40%
4.39%
-4.57%
-4.57%
Benchmark
0.03%
-9.34%
5.15%
-6.36%
-6.36%
Excess return
0.43%
2.95%
-0.76%
1.80%
1.80%
Note: The Fund benchmark is the MSCI World Index Figures are quoted gross of Investment Manager and AIFM fees.
The fourth quarter of 2015 was characterised by a rebound in equity and listed property markets that
offset the negative returns that continued in global government bond markets. The Fund produced a
strong return over the quarter of 4.39% but still trailed the benchmark return of 5.15%. Since inception,
however, the Fund has delivered alpha of 1.80% in what have been very challenging global market
conditions in which asset class returns have generally been negative. The Fund has only been in
existance for 8 months, producing an alpha of 1.80% in that time.
Fund Outlook
Global asset classes in general provided investors with very little in terms of returns over the calendar
year of 2015. The expected divergence of monetary policy between the US and the rest of the globe
materialised in December when the US Federal Reserve finally announced the long-awaited rise in their
benchmark interest rate. Commodity markets in aggregate continued their downward trend, with the price
of Brent Crude oil being particularly hard hit. Emerging Market currencies also took a beating over the
course of year in the face of the stronger US dollar and Emerging Market equities in general had a poor
year.
Further uncertainty was added to the global investment arena when the Chinese authorities implemented
a policy of currency devaluation that threatens the already fragile Emerging Markets. The outlook for 2016
remains clouded at best with questions still being asked about the impact of the lifting oil sanctions against
Iran on the oil market. The path of US interest rates will also lead to currency market volatility and further
devaluation moves by the Chinese will just increase this volatility.
40
SANLAM GLOBAL FUNDS PLC
APS GLOBAL FLEXIBLE FUND OF FUNDS (CONTINUED)
Fund Outlook (continued)
Very low yields on investment grade bonds and the likelihood of further increases in US interest rates over
the course of 2016 means that the Fund will continue to favour equity exposure over bonds. The equity
exposure in the Fund will continue to favour developed market companies with global operations, well
defined brands and well diversified revenue streams.
Investment Manager
Associated Portfolio Solutions (Pty) Limited
41
SANLAM GLOBAL FUNDS PLC
COUNTERPOINT GLOBAL EQUITY FUND
Investment Objective
The investment objective of Counterpoint Global Equity Fund (the “Fund”) is to provide investors with longterm capital growth.
.
Fund Performance
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
3rd Qtr 2015
4th Qtr 2015
Fund USD-terms
-5.13%
7.89%
Inception
0.80%
Benchmark
-8.45%
5.50%
-5.66%
Excess return
3.32%
2.39%
6.46%
Note: The Fund benchmark is the MSCI World Index. Figures are quoted gross of Investment Manager and AIFM fees.
The Fund was launched on 02 June 2015 which coincided with the global equity market, as measured by
the MSCI World Index, being near its all-time historic high point.
In absolute terms, the Fund gained in value from inception to the end of December 2015, increasing by
0.80%. However, when considering the performance of the MSCI World Index during the same period, a
decline of -5.66%, the Fund's performance has been satisfactory.
The Fund’s stock picks have favoured, as its core holdings, global multinationals that are domiciled in the
US and Europe. This strategy has largely paid off as it has avoided many problematic outcomes,
particularly in the Emerging Markets. In addition, from a top down point of view, the Fund has been
defensively positioned, not owning many companies that are dependent on cyclical global growth such as
energy and materials. This, taken in combination with sticking to quality businesses that are deemed to be
attractively priced, has resulted in the pleasing start to the Fund’s track record.
Fund Outlook
Looking out into 2016, the scene is set for a volatile year in which the good times for risk assets have
crested and basic fundamentals will have to re-assert themselves to gain the confidence of investors. The
post-global financial crisis world of easy money and high liquidity has started to come to an end in the
largest economy in the world, although it continues in Europe and Japan. Rising corporate bond yields
mean that the willingness of corporates to raise cash is lessened at the margin, which will put a damper on
investment and especially on the elevated buy-back of shares we have witnessed over the past few years.
42
SANLAM GLOBAL FUNDS PLC
COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED)
Fund Outlook (continued)
Hence, global economic growth, which is struggling to find traction and remains with a higher than usual
forecast risk in parts of the world where it is expected to grow (e.g. the US), will regain its importance as a
driver of earnings going forward. The bad news is that global growth continues to be downgraded. The
latest global economic forecast from the World Bank (January 2016) has once again downgraded global
economic growth, since its last projection in June 2015, from 3.3% to 2.9%.
Investment Manager
Counterpoint Boutique Pty Limited
43
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS
for the year ended 31 December 2015
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(677,373)
(2,671,998)
(5,418,308)
12,998,196
1,453,136
1,940
2,314
3,620
783,637
254,305
69,322
210
793
(2,347,368)
591
(5,417,717)
1,725,993
2,422
14,726,611
(634,275)
(43,792)
(18,742)
(9,207)
(1,866)
(707,882)
(992,356)
(36,876)
(54,378)
(11,005)
(4,700)
(1,099,315)
(850,548)
(30,831)
(36,555)
(14,750)
(3,803)
(936,487)
(9,837,918)
(201,895)
(385,746)
(113,411)
(48,375)
(10,587,345)
75,755
(3,446,683)
(6,354,204)
4,139,266
(115,006)
317,254
(27)
1,646,067
(85)
3,556,707
(39,251)
(3,129,429)
(4,708,164)
7,695,888
Withholding tax
(230,361)
(2,218)
-
-
Change in net assets attributable to
holders of redeemable participating shares
(269,612)
(3,131,647)
(4,708,164)
7,695,888
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Rebates received
Bank interest
Other income
Income from stock lending
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Other operating expenses
Administration fees
Custody fees
Directors’ fees
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
Profit/(loss) before tax
6
12
17
12
12
45
-
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Rebates received
Bank interest
Other income
Income from stock lending
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Other operating expenses
Administration fees
Custody fees
Directors’ fees
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
Profit/(loss) before tax
6
12
17
12
12
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
(2,415)
4,466
(504,968)
4,897
529
(1,886)
102
380
384
5,332
667
(504,301)
550
591
6,038
(9,975)
(15,938)
(3,471)
(665)
(224)
(30,273)
(3,088)
(9,096)
(1,479)
(299)
(22)
(13,984)
(29,680)
(19,482)
(5,714)
18
(256)
(55,114)
(12,178)
(14,247)
(4,539)
(701)
(179)
(31,844)
(32,159)
(8,652)
(559,415)
(25,806)
(2,851)
7,717
4,293
16,216
16,543
(27,293)
(4,359)
(543,199)
(9,263)
-
-
-
-
(27,293)
(4,359)
(543,199)
(9,263)
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
46
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
(172)
787,907
(864,707)
3,025,974
7,901
791
8,520
85,586
928
874,421
294,610
23,306
325
604
(545,862)
471,719
9,722
5,159
3,512,574
(93)
(10,317)
2,232
76
7
(8,095)
(96,157)
(60,678)
(2,864)
(996)
(549)
(161,244)
(100,348)
(25,268)
(10,922)
(3,773)
(779)
(141,090)
(310,811)
(185,690)
(10,891)
(166,526)
(3,125)
(677,043)
425
713,177
(686,952)
2,835,531
Finance costs
Interest expense
Income equalization
5,595
(1,076)
(326,648)
(35,075)
(2,084,551)
Profit/(loss) before tax
6,020
385,453
(722,027)
750,980
-
(22,052)
(640)
(45,590)
6,020
363,401
(722,667)
705,390
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Rebates received
Bank interest
Other income
Income from stock lending
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Other operating expenses
Administration fees
Custody fees
Directors’ fees
Total operating expenses
Operating profit/(loss)
6
12
17
12
12
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
47
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Sanlam BIFM South Africa
Inflation Linked Bond Fund
Mpile Global
Equity Fund
US$
US$
US$
US$
6,876,593
(1,727,675)
(1,586,072)
9,724
6,049,287
113,804
19
2,008
13,041,711
80,470
215
2,140
(1,644,850)
272,704
40,575
20,053
(1,252,740)
23,563
90
199
33,576
(3,987,214)
(121,282)
(130,053)
(67,665)
(15,663)
(4,321,877)
(827,262)
(45,925)
(20,792)
(2,223)
(1,969)
(898,171)
(75,857)
(44,102)
4,775
(107)
(1,561)
(116,852)
(17,670)
(8,030)
412
(363)
(25,651)
8,719,834
(2,543,021)
(1,369,592)
7,925
(1,300)
(2,226,090)
2,027,758
(658,514)
(38,620)
Profit/(loss) before tax
6,492,444
(515,263)
(2,028,106)
(30,695)
Withholding tax
(911,063)
-
-
-
5,581,381
(515,263)
(2,028,106)
(30,695)
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Rebates received
Bank interest
Other income
Income from stock lending
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Other operating expenses
Administration fees
Custody fees
Directors’ fees
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
6
12
17
12
12
Change in net assets attributable to
holders of redeemable participating shares
48
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Rebates received
Bank interest
Other income
Income from stock lending
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Other operating expenses
Administration fees
Custody fees
Directors’ fees
Total operating expenses
6
12
17
12
12
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
Profit/(loss) before tax
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
49
Brackenham Global
Balanced Fund
APS Global Flexible
Fund of Funds
Counterpoint Global
Equity Fund
US$
US$
US$
(480,964)
(2,179,478)
149,046
200,590
1,021
18
(279,335)
77,578
782
(2,101,118)
66,467
323
1
215,837
(58,706)
(21,554)
(10,220)
(3,347)
(393)
(94,220)
(160,810)
(33,023)
(10,496)
(2,831)
(919)
(208,079)
(84,451)
(19,655)
(3,802)
(1,683)
(271)
(109,862)
(373,555)
(2,309,197)
105,975
(20,217)
(10,679)
(19,470)
(393,772)
(2,319,876)
86,505
(37,823)
-
(15,723)
(431,595)
(2,319,876)
70,782
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Bank interest
Income from stock lending
Other income
Rebates received
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Administration fees
Directors’ fees
Custody fees
Other operating expenses
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
Profit/(loss) before tax
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
6
17
12
12
12
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(2,232,000)
1,368,580
881
12,497
4,094
(845,948)
1,928,909
96,119
344
2,946
65,286
2,093,604
4,012,843
21
3,401
4,016,265
44,972,616
430,689
6,257
8,528
403,645
45,821,735
(609,142)
(22,708)
636
(13,623)
(22,054)
(666,891)
(1,072,042)
(57,514)
2,408
(13,948)
(40,064)
(1,181,160)
(1,000,594)
(49,644)
(1,388)
1,165
(26,767)
(1,077,228)
(10,620,511)
(389,815)
(17,829)
(29,976)
(164,789)
(11,222,920)
(1,512,839)
912,444
2,939,037
34,598,815
87,131
(9,123)
267,206
1,519,770
(1,425,708)
903,321
3,206,243
36,118,585
(280,168)
-
-
-
(1,705,876)
903,321
3,206,243
36,118,585
50
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Bank interest
Income from stock lending
Other income
Rebates received
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Administration fees
Directors’ fees
Custody fees
Other operating expenses
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
Profit/(loss) before tax
6
17
12
12
12
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
1,606
71
1,904
3,581
4,154
222
1,564
5,940
(775,088)
2,563
20,520
(752,005)
2,383
792
5,821
12
9,008
(10,867)
(3,677)
37
(1,459)
(15,929)
(31,895)
(3,435)
(3,988)
91
(1,469)
(11,016)
(19,817)
(65,883)
(14,948)
323
(12,219)
(28,917)
(121,644)
(28,314)
(13,877)
(873,649)
(13,321)
(7,497)
1,086
(1,667)
(25,628)
(47,027)
47,027)
(38,019)
2,859
1,248
(253)
187,509
3,643
(25,445)
(12,629)
(686,393)
(34,376)
-
-
-
-
(25,455)
(12,629)
(686,393)
(34,376)
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
51
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
13,949
5,203
29,372
48,524
(1,581,469)
1,146,734
312
4,662
(429,761)
1,487,661
(15,525,484)
433,352
168
6,342
1,927,523
4,714,366
17,949
642
86,052
(10,706,475)
(4,406)
(14,437)
350
(21,586)
(40,079)
(608,532)
(32,347)
(463)
(40,983)
(17,149)
(699,474)
(94,164)
(12,840)
(336)
(7,432)
(21,560)
(136,332)
(1,741,597)
(109,308)
(763)
(224,540)
(93,722)
(2,169,930)
8,445
(1,129,235)
1,791,191
(12,876,405)
Finance costs
Interest expense
Income equalization
(43)
19,962
(62,727)
(111,047)
190,195
Profit/(loss) before tax
28,364
(1,191,962)
1,680,144
(12,686,210)
-
(224,678)
(1,140)
(363,593)
28,364
(1,416,640)
1,679,004
(13,049,803)
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Bank interest
Income from stock lending
Other income
Rebates received
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Administration fees
Directors’ fees
Custody fees
Other operating expenses
Total operating expenses
Operating profit/(loss)
6
17
12
12
12
Withholding tax
Change in net assets attributable to
holders of redeemable participating shares
52
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam BIFM World Equity
Fund
Sanlam BIFM Global
Fixed Income Fund
Sanlam BIFM South Africa
Inflation Linked Bond Fund
Mpile Global
Equity Fund
US$
US$
US$
US$
(12,294,916)
624,859
(2,801,755)
(322,278)
15,520,124
4,171
1,060
152,746
3,383,185
118
58,700
683,677
449,495
34,550
16,370
(2,301,340)
34,190
(288,088)
(8,872,677)
(270,150)
(5,509)
(174,438)
(268,140)
(9,590,914)
(1,877,795)
(53,290)
(78)
(16,369)
(27,699)
(1,975,231)
(114,943)
(23,207)
(448)
(6,817)
(11,859)
(157,274)
(3,162)
(282)
(4,312)
(11,930)
(19,686)
(6,207,729)
(1,291,554)
(2,458,614)
(307,774)
(399,812)
64,154
105,320
(176)
(34,323)
Profit/(loss) before tax
(6,607,541)
(1,227,400)
(2,353,294)
(342,273)
Withholding tax
(2,341,771)
-
-
(5,129)
Change in net assets attributable to
holders of redeemable participating shares
(8,949,312)
(1,227,400)
(2,353,294)
(347,402)
Note
Investment income
Net gains/(losses) on financial assets and liabilities fair
at fair value through profit or loss – held for trading
Income from financial assets at fair value
through profit or loss
Bank interest
Income from stock lending
Other income
Rebates received
Net investment income/(deficit)
Operating expenses
AIFM and investment management fees
Administration fees
Directors’ fees
Custody fees
Other operating expenses
Total operating expenses
Operating profit/(loss)
Finance costs
Interest expense
Income equalization
6
17
12
12
12
53
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS
as at 31 December 2015
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
4,960,688
139,072
40,693,936
-
2,081,346
111,305,073
-
26,195
50,764,385
-
5,400,884
1,157,362,330
36
45,793,696
113,386,419
50,790,580
1,162,763,250
(65,656)
(5,878)
(16,311)
(94,997)
(16,745)
(758,151)
-
(55,409)
(10,571)
-
(838,380)
(123,958)
-
(87,845)
(869,893)
(65,980)
(962,338)
45,705,851
112,516,526
50,724,600
1,161,800,912
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Amounts payable on purchase of securities
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
55
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2015
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Amounts payable on purchase of securities
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
1,296,201
3,344,023
245
383,299
1,073,066
-
327,427
9,114,484
-
1,506,300
3,870,288
-
4,640,469
1,456,365
9,441,911
5,376,588
(12,013)
(1,185)
-
(8,450)
(642)
-
(12,833)
(1,995)
-
(13,182)
(1,414)
-
(13,198)
(9,092)
(14,828)
(14,596)
4,627,271
1,447,273
9,427,083
5,361,992
56
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2015
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds Fund
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
8,797
1,733
35,534
430
812,252
16,152,440
26,971
245,955
552
10,530
35,964
16,991,663
246,507
(12,208)
1,678
-
(35,841)
(123)
-
(21,808)
(3,575)
-
(241,684)
(4,823)
-
(10,530)
(35,964)
(25,383)
(246,507)
-
-
16,966,280
-
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Amounts payable on purchase of securities
Financial liabilities at fair value through profit or loss
Sanlam International
Multi Asset I Fund
19
57
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2015
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Mpile Global
Equity Fund
US$
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
US$
US$
1,943,377
213,445
264,462,426
23,509
354,899
31,068,651
1,604
37,173
196,868
25,127,387
-
266,642,757
31,425,154
37,173
25,324,255
(288,303)
(45,904)
(33,300)
-
(67,636)
(6,905)
-
(2,753)
(34,106)
(314)
-
(19,196)
(2,546)
-
(367,507)
(74,541)
(37,173)
(21,742)
266,275,250
31,350,613
-
25,302,513
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Amounts payable on purchase of securities
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
58
US$
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2015
Brackenham Global
Balanced Fund
APS Global Flexible
Fund of Funds
Counterpoint Global
Equity Fund
US$
US$
US$
6,510,846
15,500
10,827,897
19,767
2,306,405
46
43,470,602
23,320
1,531,773
1,525
12,645,367
13,155
17,374,010
45,800,373
14,191,820
(30,875)
(3,443)
-
(53,564)
(4,089)
-
(32,675)
(1,556)
-
(34,318)
(57,653)
(34,231)
17,339,692
45,742,720
14,157,589
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Amounts payable on purchase of securities
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
59
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2014
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
2,502,752
127,970
47,810,369
15,246
946,891
131,560,904
15,452
49,941
127,711,141
11,087
2,377,401
1,356,983,691
86,892
50,456,337
132,523,247
127,772,169
1,359,447,984
(63,443)
(6,102)
(891)
(100,577)
(18,068)
(9,709)
-
(89,651)
(15,005)
-
(904,909)
(121,359)
(54,458)
-
(70,436)
(128,354)
(104,656)
(1,080,726)
50,385,901
132,394,893
127,667,513
1,358,367,258
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on purchase of securities
Amounts payable on repurchase of shares
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
60
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2014
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on purchase of securities
Amounts payable on repurchase of shares
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global Liquidity
Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
1,467,001
3,728,617
3,957
455,338
1,193,202
1,817
267,129
10,514,485
13,085
1,950,819
4,825,469
3,769
5,199,575
1,650,357
10,794,699
6,780,057
(6,693)
(2,192)
(4,250)
-
(5,592)
(1,720)
(21,400)
-
(11,415)
(3,895)
-
(8,804)
(2,418)
(48,640)
-
(13,135)
(28,712)
(15,310)
(59,862)
5,186,440
1,621,645
10,779,389
6,720,195
61
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2014
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds Fund
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
71,485
29,391
1,498,055
42,346
47,626,376
24,270
5,709,516
17,083,333
36,030
7,232,619
302,959
147,831,524
11,082
Total assets
100,876
49,191,047
22,828,879
155,378,184
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on purchase of securities
Amounts payable on repurchase of shares
Financial liabilities at fair value through profit or loss
(3,033)
(15,413)
(3,982)
-
(66,715)
(7,129)
-
(15,070)
(4,333)
-
(247,510)
(18,250)
(274)
-
(22,428)
(73,844)
(19,403)
(266,034)
78,448
49,117,203
22,809,476
155,112,150
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
62
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED)
as at 31 December 2014
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
Mpile Global
Equity Fund
US$
US$
US$
US$
13,480,765
553,693
1,030,180
745,745,141
10,783
804,088
132,479,704
11,082
3,899,711
430,640
63,361,082
3,910
79,641
12,614,102
2,259
760,820,562
133,294,874
67,695,343
12,696,002
(688,350)
(81,242)
(4,100,000)
-
(187,513)
(14,927)
-
(49,833)
(15,451)
-
(12,716)
(3,052)
-
(4,869,592)
(202,440)
(65,284)
(15,768)
755,950,970
133,092,434
67,630,059
12,680,234
Note
Assets
Cash and cash equivalents
Accrued income
Amounts receivable on sale of securities
Financial assets at fair value through profit or loss
Other debtors
7,8,18
Total assets
Liabilities
Bank overdraft
Accrued expenses
Administration fees accrued
Amounts payable on purchase of securities
Amounts payable on repurchase of shares
Financial liabilities at fair value through profit or loss
12
7,8,18
Liabilities (excluding net assets attributable to
holders of redeemable participating shares)
Net assets attributable to holders of redeemable
participating shares
19
63
SANLAM GLOBAL FUNDS PLC
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF
REDEEMABLE PARTICIPATING SHARES OF THE COMPANY
for the year ended 31 December 2015
Year ended
31 December 2015
Year ended
31 December 2014
US$
US$
(324,169)
12,110,485
145,106,995
363,898,617
Redemption of shares during the year
(1,225,784,247)
(534,414,137)
Net decrease in net assets attributable to holders of
redeemable participating shares from capital transactions
(1,080,677,252)
(170,515,520)
Net decrease in net assets attributable to holders of
redeemable participating shares in the year
(1,081,001,421)
(158,405,035)
2,891,585,914
3,050,980,537
(754,155)
(989,588)
1,809,830,338
2,891,585,914
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
Exchange differences due to presentation of these financial
statements in USD
Net assets attributable to holders of redeemable
participating shares at the end of the year
The attached notes form an integral part of these annual audited financial statements.
64
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS
for the year ended 31 December 2015
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(269,612)
(3,131,647)
(4,708,164)
7,695,888
5,893,212
(10,303,650)
3,948,461
(20,695,181)
(72,234,749)
3,415,053
(207,677,287)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(4,410,438)
(16,746,720)
(72,234,749)
(204,262,234)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(4,680,050)
(19,878,367)
(76,942,913)
(196,566,346)
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
50,385,901
132,394,893
127,667,513
1,358,367,258
Net assets attributable to holders of redeemable
participating shares at the end of the year
45,705,851
112,516,526
50,724,600
1,161,800,912
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Redemption of shares during the year
65
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
(27,293)
(4,359)
(543,199)
(9,263)
Issue of shares during the year
Redemption of shares during the year
(531,876)
31,933
(201,946)
595,126
(1,404,233)
359,905
(1,708,845)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(531,876)
(170,013)
(809,107)
(1,348,940)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(559,169)
(174,372)
(1,352,306)
(1,358,203)
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
5,186,440
1,621,645
10,779,389
6,720,195
Net assets attributable to holders of redeemable
participating shares at the end of the year
4,627,271
1,447,273
9,427,083
5,361,992
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
66
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
US$
US$
US$
Sanlam BIFM
Emerging Markets
Equity Fund
US$
6,020
363,401
(722,667)
705,390
Issue of shares during the year
Redemption of shares during the year
(84,468)
(49,480,604)
11,407,730
(16,528,259)
66,668
(155,884,208)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(84,468)
(49,480,604)
(5,120,529)
(155,817,540)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(78,448)
(49,117,203)
(5,843,196)
(155,112,150)
78,448
49,117,203
22,809,476
155,112,150
-
-
16,966,280
-
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
Net assets attributable to holders of redeemable
participating shares at the end of the year
67
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Mpile Global
Equity Fund
US$
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
US$
US$
5,581,381
(515,263)
(2,028,106)
(30,695)
9,447,170
(504,704,271)*
2,283,423
(103,509,981)
14,692,046
(80,293,999)**
12,753,844
(100,870)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(495,257,101)
(101,226,558)
(65,601,953)
12,652,974
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(489,675,720)
(101,741,821)
(67,630,059)
12,622,279
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
755,950,970
133,092,434
67,630,059
12,680,234
Net assets attributable to holders of redeemable
participating shares at the end of the year
266,275,250
31,350,613
-
25,302,513
US$
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Redemption of shares during the year
* Redemptions include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at date of transfer of USD 435,066,173.
** Redemptions include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at date of transfer of ZAR 947,834,510. The USD equivalent of this ZAR
amount at the date of transfer was USD 81,063,460.
68
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Brackenham Global
Balanced Fund
US$
APS Global Flexible
Fund of Funds
US$
Counterpoint Global
Equity Fund
US$
(431,595)
(2,319,876)
70,782
17,845,204*
(73,917)
48,062,596
-
14,287,757
(200,950)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
17,771,287
48,062,596
14,086,807
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
17,339,692
45,742,720
14,157,589
-
-
-
17,339,692
45,742,720
14,157,589
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Redemption of shares during the year
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
Net assets attributable to holders of redeemable
participating shares at the end of the year
* Subscriptions include in specie transfers from Brackenham SCI Managed Fund during the year in exchange for assets with a fair value at date of transfer of USD 7,261,745.
69
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(1,705,876)
903,321
3,206,243
36,118,585
8,720,429
(1,628,471)
21,845,333
(22,143,971)
(26,380,083)
23,705,127
(199,958,738)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
7,091,958
(298,638)
(26,380,083)
(176,253,611)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
5,386,082
604,683
(23,173,840)
(140,135,026)
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
44,999,819
131,790,210
150,841,353
1,498,502,284
Net assets attributable to holders of redeemable
participating shares at the end of the year
50,385,901
132,394,893
127,667,513
1,358,367,258
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Redemption of shares during the year
.
70
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
(25,455)
(12,629)
(686,393)
(34,376)
Issue of shares during the year
Redemption of shares during the year
(513,541)
(167,188)
2,569,746
(23,172,033)
532,897
(1,147,126)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(513,541)
(167,188)
(20,602,287)
(614,229)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(538,996)
(179,817)
(21,288,680)
(648,605)
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
5,725,436
1,801,462
32,068,069
7,368,800
Net assets attributable to holders of redeemable
participating shares at the end of the year
5,186,440
1,621,645
10,779,389
6,720,195
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
71
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
US$
US$
US$
Sanlam BIFM
Emerging Markets
Equity Fund
US$
28,364
(1,416,640)
1,679,004
(13,049,803)
Issue of shares during the year
Redemption of shares during the year
1,695
(464,628)
1,532,490
(8,328,423)
8,602,591
(18,865,342)
13,843,622
(69,287,756)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
(462,933)
(6,795,933)
(10,262,751)
(55,444,134)
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
(434,569)
(8,212,573)
(8,583,747)
(68,493,937)
513,017
57,329,776
31,393,223
223,606,087
78,448
49,117,203
22,809,476
155,112,150
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
Net assets attributable to holders of redeemable
participating shares at the end of the year
72
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Mpile Global
Equity Fund
US$
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
US$
US$
(8,949,312)
(1,227,400)
(2,353,294)
(347,402)
164,635,606
(107,640,270)
33,331,053
(52,761,126)
69,983,353
-
14,594,675*
(1,567,039)
Net increase/(decrease) in net assets attributable to holders of
redeemable participating shares from capital transactions
56,995,336
(19,430,073)
69,983,353
13,027,636
Net increase/(decrease) in net assets attributable to holders
of redeemable participating shares in the year
48,046,024
(20,657,473)
67,630,059
12,680,234
Net assets attributable to holders of redeemable participating
shares at the beginning of the year
707,904,946
153,749,907
-
-
Net assets attributable to holders of redeemable
participating shares at the end of the year
755,950,970
133,092,434
67,630,059
12,680,234
US$
Operating activities
Change in net assets attributable to
participating shareholders from operations
Capital transactions
Issue of shares during the year
Redemption of shares during the year
* Subscriptions include in specie transfers from African Life during the year, in exchange for assets with a fair value at date of transfer of USD 6,837,717.
73
SANLAM GLOBAL FUNDS PLC
STATEMENT OF CASH FLOWS OF THE COMPANY
for the year ended 31 December 2015
2015
2014
US$
US$
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
(479,698,252)
(2,342,836,478)
Proceeds from sale of investments (including realised gains)
1,051,031,832
2,535,084,784
Dividends received
9,709,986
19,879,358
Bond interest received
1,021,246
4,310
420,322
800,205
Bank interest received
52,048
110,797
Other income
40,419
66,371
3,620
12,497
Operating expenses paid
(20,746,688)
(29,533,802)
Net cash inflow from operating activities
561,834,533
183,588,042
Rebates received
Income from stock lending received
Cash flows from financing activities
137,843,535
357,419,358
(713,121,993)
(530,543,740)
2,065,980
1,833,261
(573,212,478)
(171,291,121)
(11,377,945)
12,296,921
Cash and cash equivalents at the start of the year
43,280,124
31,356,785
Exchange losses on cash and cash equivalents
(1,682,678)
(373,582)
Cash and cash equivalents at the end of the year
30,219,501
43,280,124
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
The attached notes form an integral part of these annual audited financial statements.
74
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS
for the year ended 31 December 2015
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(7,144,656)
13,517,793
904,447
317,902
1,940
2,314
3,620
(701,323)
(103,851,979)
121,460,462
252,087
69,322
210
793
(1,090,766)
71,528,448
(27)
591
(964,076)
(103,365,958)
316,045,221
1,725,993
(85)
2,422
(10,564,419)
6,902,037
16,840,129
70,564,936
203,843,174
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
5,893,212
(10,303,650)
(115,006)
3,948,461
(19,946,739)
317,254
(72,234,749)
1,646,067
3,415,053
(207,731,745)
3,556,707
Net cash provided by/(used in) financing activities
(4,525,444)
(15,681,024)
(70,588,682)
(200,759,985)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
2,376,593
2,502,752
81,343
1,159,105
946,891
(24,650)
(23,746)
49,941
-
3,083,189
2,377,401
(59,706)
Cash and cash equivalents at the end of the year
4,960,688
2,081,346
26,195
5,400,884
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Rebates received
Bank interest received
Other income
Income from stock lending received
Operating expenses paid
Net cash inflow/(outflow) from operating activities
75
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
(3,634,009)
4,016,219
2,640
(2,851)
529
(24,888)
(1,142,933)
1,267,526
1,066
380
384
(11,351)
(10,017,563)
10,915,212
12,176
667
(54,687)
(4,072,653)
5,032,734
3,733
550
591
(28,434)
357,640
115,072
855,805
936,521
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
(536,126)
7,717
31,933
(223,346)
4,293
595,126
(1,404,233)
16,216
359,905
(1,757,485)
16,543
Net cash provided by/(used in) financing activities
(528,409)
(187,120)
(792,891)
(1,381,037)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
(170,769)
1,467,001
(31)
(72,048)
455,338
9
62,914
267,129
(2,616)
(444,516)
1,950,819
(3)
Cash and cash equivalents at the end of the year
1,296,201
383,299
327,427
1,506,300
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Rebates received
Bank interest received
Other income
Income from stock lending received
Operating expenses paid
Net cash inflow/(outflow) from operating activities
76
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
71,330
35,540
791
(16,941)
48,423,017
105,880
(1,076)
928
(175,284)
(3,940,822)
4,008,985
293,970
23,306
325
604
(126,051)
(18,128,904)
170,125,523
729,088
9,722
5,159
(685,766)
90,720
48,353,465
260,317
152,054,822
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
(84,468)
5,595
(49,480,604)
(326,648)
11,407,730
(16,528,259)
(35,075)
66,668
(155,884,208)
(2,084,551)
Net cash provided by/(used in) financing activities
(78,873)
(49,807,252)
(5,155,604)
(157,902,091)
11,847
(3,033)
(17)
(1,453,787)
1,498,055
(8,734)
(4,895,287)
5,709,516
(1,977)
(5,847,269)
7,232,619
(1,139,395)
8,797
35,534
812,252
245,955
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Rebates received
Bank interest received
Other income
Income from stock lending received
Operating expenses paid
Net cash inflow/(outflow) from operating activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
Cash and cash equivalents at the end of the year
77
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
Mpile Global
Equity Fund
US$
US$
US$
US$
(123,641,104)
177,825,930*
5,478,472
113,804
19
2,008
(4,737,988)
(80,470)
99,763,849
80,470
215
2,140
(1,016,592)
(16,993,555)
(2,051,892)**
703,344
40,575
20,053
(180,979)
(15,154,148)
2,650,586
23,563
90
199
(17,418)
55,041,141
98,749,612
(18,462,454)
(12,497,128)
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
9,447,170
(73,738,098)*
(2,226,090)
2,283,423
(103,509,981)
2,027,758
14,692,046
769,461**
(658,514)
12,753,844
(100,870)
(38,620)
Net cash provided by/(used in) financing activities
(66,517,018)
(99,198,800)
14,802,993
12,614,354
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
(11,475,877)
13,480,765
(61,511)
(449,188)
804,088
(1)
(3,659,461)
3,899,711
(243,003)
117,226
79,641
1
1,943,377
354,899
(2,753)
196,868
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Rebates received
Bank interest received
Other income
Income from stock lending received
Operating expenses paid
Net cash inflow/(outflow) from operating activities
Cash and cash equivalents at the end of the year
* Excludes a transfer of investments via-in-specie redemption to Botswana Insurance Fund Management Limited during the year amounting to USD 435,066,173.
** Excludes a transfer of investments via in-specie redemption to Botswana Insurance Fund Management Limited during the year of amounting to ZAR 947,834,510. The USD equivalent of this ZAR amount at the
date of transfer was USD 81,063,460.
78
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2015
Brackenham Global
Balanced Fund
US$
APS Global Flexible Fund
of Funds
US$
Counterpoint Global
Equity Fund
US$
(5,486,120)*
1,441,619
147,267
1,021
18
(79,669)
(46,700,000)
1,050,000
77,532
782
(173,746)
(15,488,926)
2,992,870
49,219
323
1
(88,786)
Net cash inflow/(outflow) from operating activities
(3,975,864)
(45,745,432)
(12,535,299)
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
10,583,459*
(73,917)
(20,217)
48,062,596
(10,679)
14,287,757
(200,950)
(19,470)
Net cash provided by/(used in) financing activities
10,489,325
48,051,917
14,067,337
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
6,513,461
(2,615)
2,306,485
(80)
1,532,038
(265)
Cash and cash equivalents at the end of the year
6,510,846
2,306,405
1,531,773
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Rebates received
Bank interest received
Other income
Income from stock lending received
Operating expenses paid
* Excludes a transfer of investments via in-specie subscription from Brackenham SCI Managed Fund during the year amounting to USD 7,261,745.
79
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Analytics International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
US$
US$
US$
US$
(10,742,082)
4,884,470
1,002,314
(14,545)
881
12,497
4,094
(674,108)
(122,777,347)
123,675,487
96,119
344
2,946
65,286
(1,188,618)
27,167,876
21
3,401
(1,118,701)
(1,302,546,258)
1,487,356,017
430,689
6,257
8,528
403,645
(11,415,668)
Net cash inflow/(outflow) from operating activities
(5,526,479)
(125,783)
26,052,597
174,243,210
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
8,720,429
(1,628,471)
87,131
22,203,125
(22,134,262)
(9,123)
(26,380,083)
267,206
23,705,159
(199,908,732)
1,519,770
Net cash provided by/(used in) financing activities
7,179,089
59,740
(26,112,877)
(174,683,803)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
1,652,610
837,289
12,853
(66,043)
1,005,687
7,247
(60,280)
110,221
-
(440,593)
2,856,162
(38,168)
Cash and cash equivalents at the end of the year
2,502,752
946,891
49,941
2,377,401
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Bank interest received
Income from stock lending received
Other income
Rebates received
Operating expenses paid
80
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Sanlam US Dollar
Liquidity Fund
EUR
GBP
US$
US$
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Bank interest received
Income from stock lending received
Other income
Rebates received
Operating expenses paid
(2,531)
349,969
71
1,904
7,409
(42,063)
(941)
97,673
222
1,564
8,170
(29,959)
(2,176,440)
22,177,070
2,563
2,864
(130,132)
(252,356)
679,502
792
5,821
9,219
(53,722)
Net cash inflow/(outflow) from operating activities
314,759
76,729
19,875,925
389,256
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
(509,291)
2,859
(145,788)
1,248
2,569,746
(23,172,033)
187,509
532,897
(1,098,486)
3,643
Net cash provided by/(used in) financing activities
(506,432)
(144,540)
(20,414,778)
(561,946)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
(191,673)
1,658,650
24
(67,811)
523,157
(8)
(538,853)
798,952
7,030
(172,690)
2,123,509
-
Cash and cash equivalents at the end of the year
1,467,001
455,338
267,129
1,950,819
81
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Bank interest received
Income from stock lending received
Other income
Operating expenses paid
Sanlam International
Multi Asset I Fund
Verso Global
Flexible Fund
NFB Global Balanced
Fund of Funds
Sanlam BIFM Emerging
Markets Equity Fund
US$
US$
US$
US$
380,970
5,202
(48,959)
(13,606,382)
20,301,576
879,710
45,114
4,662
(722,459)
14,333,194
432,212
168
6,342
(183,831)
(251,907,397)
308,958,666
4,170,443
17,949
642
86,052
(2,138,617)
337,213
6,902,221
14,588,085
59,187,738
1,731
(469,273)
19,962
1,532,490
(8,328,423)
(62,727)
8,602,591
(18,865,342)
(111,047)
13,843,622
(69,337,915)
190,195
(447,580)
(6,858,660)
(10,373,798)
(55,304,098)
(110,367)
117,529
(10,195)
43,561
1,465,003
(10,509)
4,214,287
1,507,816
3,883,640
3,420,931
(12,587)
(71,952)
(3,033)
1,498,055
5,709,516
7,232,619
Net cash inflow/(outflow) from operating activities
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
Cash and cash equivalents at the end of the year
82
SANLAM GLOBAL FUNDS PLC
STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED)
for the year ended 31 December 2014
Sanlam BIFM World
Equity Fund
Sanlam BIFM Global
Fixed Income Fund
Sanlam BIFM South
Africa Inflation Linked
Bond Fund
Mpile Global
Equity Fund
US$
US$
US$
US$
(530,048,107)
469,809,633
12,838,810
4,171
1,060
152,746
(9,615,644)
(29,309,700)
47,619,118
118
58,700
(2,008,495)
(71,767,219)
5,565,729
34,550
35,225
(95,900)
(7,698,663)*
1,600,000
29,061
(6,353)
(56,857,331)
16,359,741
(66,227,615)
(6,075,955)
164,636,204
(103,936,351)
(399,812)
33,331,053
(52,761,126)
64,154
69,983,353
105,320
7,756,958*
(1,567,039)
(34,323)
60,300,041
(19,365,919)
70,088,673
6,155,596
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Exchange gains/(losses) on cash and cash equivalents
3,442,710
10,024,493
13,562
(3,006,178)
3,810,269
(3)
3,861,058
38,653
79,641
-
Cash and cash equivalents at the end of the year
13,480,765
804,088
3,899,711
79,641
Cash flows from operating activities
Purchases of financial assets and settlement of financial liabilities
Proceeds from sale of investments (including realised gains)
Dividends received
Bond interest received
Bank interest received
Income from stock lending received
Other income
Operating expenses paid
Net cash inflow/(outflow) from operating activities
Cash flows from financing activities
Proceeds from redeemable participating shares issued
Redemption of redeemable participating shares
Income equalization
Net cash provided by/(used in) financing activities
* Excludes a transfer of investments via in-specie subscription from African Life during the year amounting to USD 6,837,717.
83
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Equities - 76.62%
Belgium - 3.06%
11,200
Anheuser-Busch Inbev NV ADR
Total Belgium
1,400,000
3.06%
1,400,000
3.06%
127,509
0.28%
47,343
0.10%
152,048
0.33%
68,947
0.15%
206,521
0.45%
21,799
0.05%
Canada - 2.73%
5,840
Canadian Natural Resources
16,100
Canyon Services Group Inc
4,575
Enbridge Inc
167,000
Ithaca Energy Inc
7,100
Keyera Corp
4,930
Paramount Resources Ltd
9,750
Pembina Pipeline Corporation
212,385
0.46%
13,410
Suncor Energy Inc
346,077
0.76%
43,230
Trinidad Drilling Ltd
66,215
1,248,844
2.73%
Total Canada
0.15%
France - 2.18%
1,538
L’Oreal
259,367
0.57%
2,945
Technip
146,259
0.32%
13,180
Total SA
590,588
996,214
1.29%
Total France
2.18%
Great Britain - 14.72%
15,390
BG Group Plc
223,520
0.49%
86,300
BP Plc
450,460
0.99%
10,241
Diageo
280,336
0.61%
11,614
GlaxoSmithKline
235,123
0.52%
30,779
Imperial Tobaco Group
1,627,675
3.56%
7,478
London Stock Exchange Group Plc
302,560
0.66%
11,600
Petrofac
17,974
Reckitt Benckiser Group
31,895
Royal Dutch Shell
25,040
Unilever Plc
Total Great Britain
136,149
0.30%
1,664,622
3.64%
725,656
1.59%
1,080,501
2.36%
6,726,602
14.72%
Ireland - 2.49%
104,116
C&C Group Plc
419,788
0.92%
9,329
Medtronic Plc
717,586
1.57%
1,137,374
2.49%
Total Ireland
84
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
322,346
0.70%
322,346
0.70%
1,539,032
3.37%
1,539,032
3.37%
743,589
1.63%
743,589
1.63%
477,287
1.04%
477,287
1.04%
502,200
1.10%
502,200
1.10%
190,469
0.42%
190,469
0.42%
121,872
0.27%
121,872
0.27%
1,664,595
3.64%
702,180
1.54%
1,187,646
2.60%
3,554,421
7.78%
Financial assets at fair value through profit or loss (continued)
Equities - 76.62% (continued)
Israel - 0.70%
3,961
Check Point Software Technologies
Total Israel
Japan - 3.37%
41,400
Japan Tobacco International
Total Japan
Jersey Channel Islands - 1.63%
32,265
WPP Plc
Total Jersey Channel Islands
Korea (South) - 1.04%
898
Samsung Electronics Co Ltd
Total Korea (South)
Netherlands - 1.10%
7,200
Schlumberger Ltd
Total Netherlands
Norway - 0.42%
13,650
Statoil ASA
Total Norway
Sweden - 0.27%
8,400
Lundin Petroleum AB
Total Sweden
Switzerland - 7.78%
22,371
Nestle SA
8,105
Novartis AG
4,305
Roche Holding AG genusschein
Total Switzerland
Unites States - 35.13%
13,799
Altria Group Inc
803,240
1.76%
3,920
Anadarko Petroleum Corp
190,434
0.42%
2,550
Apache Corp
113,399
0.25%
8,570
Chevron Corp
770,957
1.69%
10,847
Colgate-Palmolive Com
722,627
1.58%
6,535
Conocophillips Co
305,119
0.67%
85
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss (continued)
Equities - 76.62% (continued)
Unites States - 35.13% (continued)
4,400
Eog Resources Inc
311,476
0.68%
8,640
Exxon Corp
673,488
1.47%
3,757
Factset Research Systems Inc
610,776
1.34%
2,950
Fluor Corp (New)
139,299
0.30%
3,148
Intuit Inc
15,062
Johnson & Johnson
8,370
Marathon Petroleum Corp
29,601
Microsoft Corp
12,954
Moody’s Corp
1,299,804
2.84%
3,925
Occidental Petroleum Corp
265,369
0.58%
12,551
Oracle Corp
458,488
1.00%
12,185
Paypal Holdings Inc
441,097
0.97%
7,524
Pepsico Inc Com
751,798
1.64%
14,933
Philip Morris International Inc
1,312,760
2.87%
845
Pioneer Nat Res
105,946
0.23%
1,813
The 3M Co
273,110
0.60%
20,706
Twenty First Century Fox Inc
562,375
1.23%
8,660
Valero Energy Corp
612,349
1.34%
6,373
VeriSign Inc
556,745
1.22%
10,417
Visa Inc
807,838
1.77%
4,495
Whiting Petroleum Corp
42,433
0.09%
Total Unites States
16,058,042
35.13%
Total Equities
35,018,292
76.62%
Nominal
Security
303,782
0.66%
1,547,169
3.39%
433,901
0.95%
1,642,263
3.59%
Coupon
Maturity
Fair Value
USD
% of
Net Assets
Corporate Debt - 10.00%
250,000
Inter-American Devel Bk
6.00%
15/12/2017
180,195
0.39%
100,000
DBS Bank Ltd Singapore
0.93%
15/07/2021
99,691
0.22%
200,000
Franshion Development Ltd.
6.75%
15/04/2021
225,280
0.49%
120,000
Kuwait Projects Co
9.38%
15/07/2020
148,619
0.33%
200,000
Noble Group Ltd
6.75%
29/01/2020
128,666
0.28%
200,000
Ipic GMTN Ltd
6.88%
01/11/2041
258,524
0.57%
200,000
Abu Dhabi National Energy
3.63%
12/01/2023
192,424
0.42%
86
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
Coupon
Maturity
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss (continued)
Corporate Debt - 10.00% (continued)
326,000
RWE AG
7.04%
12/10/2072
329,410
0.72%
200,000
Ooredoo International
5.00%
19/10/2025
216,466
0.47%
250,000
Temasek Financial Ltd
2.38%
23/01/2023
244,973
0.54%
200,000
State Grid Overseas Inv
3.13%
22/05/2023
196,330
0.43%
380,000
Kommunalbanken AS
3.75%
11/12/2017
262,880
0.57%
200,000
Codelco Inc
4.50%
13/08/2023
194,880
0.43%
154,702
Oro Negro Dril Pte Ltd
7.50%
24/01/2019
92,546
0.20%
1,000,000 Fonterra Cooperative
200,000
China Cinda Finance
3.60%
5.63%
29/01/2019
14/05/2024
147,340
209,920
0.32%
0.46%
300,000
Export- Import BK Korea
1,000,000 China Construction Bank
4.88%
3.45%
15/12/2017
27/06/2017
208,752
151,951
0.46%
0.33%
426,000
Rabobank Nederland
4.75%
26/06/2017
296,754
0.65%
225,000
Saudi Electricity
5.06%
08/04/2043
195,563
0.43%
3.60%
04/02/2016
152,958
0.33%
1,000,000 Ojsc Russ Agric Bk
50,000
10.75%
15/11/2018
11,750
0.03%
17,000,000 Intl Bk Recon & Develop
Cobre Del Mayo SA
6.00%
20/12/2016
255,443
0.56%
200,000
5.38%
26/06/2026
170,789
0.37%
4,572,104
10.00%
Ecopetrol SA
Total Corporate Debt
Government Debt - 2.42%
2,000,000 HK Govt Bond Programme
3.68%
11/08/2017
268,617
0.59%
215,000
Australia (Cmnwlth)
4.75%
21/04/2027
183,524
0.40%
900,000
Mex Bonos Desarr Fix
10.00%
05/12/2024
66,338
0.15%
230,000
State of Qatar
6.40%
20/01/2040
291,125
0.64%
50,000,000 Republic of Chile
6.00%
01/01/2020
74,744
0.16%
220,000
3.00%
15/11/2044
219,192
0.48%
1,103,540
2.42%
40,693,936
89.04%
US Treasury Note
Total Gove rnment Debt
Total financial assets at fair value through profit or loss
87
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND
(CONTINUED)
as at 31 December 2015
Financial liabilities at fair value through profit or loss
Derivative financial instruments
Buy currency
Buy Amount
Sell currency
Sell Amount
Maturity
Fair Value
USD
% of
Net Assets
Forward Contracts – (0.04%)
1
(0.03)%
(3,253)
1
(0.01)%
Total Forward Contracts
(16,311)
(0.04)%
Total financial liabilities at fair value through profit or loss
(16,311)
(0.04)%
USD
939,400
NZD
(1,400,000)
31/03/2016
(13,058)
USD
182,523
AUD
(256,000)
31/03/2016
4,960,688
2
10.85%
67,538
45,705,851
0.15%
100.00%
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
Brown Brothers Harriman acts as counterparty to the open forward positions at 31 December 2015.
2
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 4,345,133 held
with Citibank and USD 615,555 held with JPM Chase.
88
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL BALANCED FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 98.92%
37,298,263
Sanlam Centre Global Select Equity Fund
40,748,353
36.21%
929,316
Sanlam FOUR Global Equity Fund
13,610,950
12.10%
2,647,763
Sanlam FOUR Multi Strategy Fund
26,537,733
23.59%
196,538
Sanlam FOUR Stable Global Equity Fund
3,044,135
2.71%
19,059,848
Sanlam Global Bond Fund
26,334,992
23.40%
544,397
Sanlam World Equity Fund
1,028,910
0.91%
Total Collective Investment Schemes
111,305,073
98.92%
Total financial assets at fair value through profit or loss
111,305,073
98.92%
Cash and cash equivalents
2,081,346
1.85%
Other net assets and liabilities
(869,893)
(0.77)%
112,516,526
100.00%
Net assets attributable to holders of redeemable participating shares
89
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL BEST IDEAS FEEDER FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 100.08%
45,224,397
50,764,385
100.08%
Total Collective Investment Schemes
Sanlam Global Best Ideas Fund
50,764,385
100.08%
Total financial assets at fair value through profit or loss
50,764,385
100.08%
26,195
0.05%
(65,980)
(0.13)%
50,724,600
100.00%
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
90
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL EQUITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 99.42%
42,363,496
8IP Australian Small Companies Fund
30,810,938
2.65%
716,563
663,095
Sanlam FOUR Active European Ex UK Equity Fund
Sanlam FOUR Global Equity Fund
12,323,107
9,711,819
1.06%
0.84%
6,256,967
Sanlam FOUR Stable Global Equity Fund
96,912,915
8.34%
2,500,000
Sanlam FOUR US Dividend Income Fund
25,626,250
2.21%
511,204,317
Sanlam World Equity Fund
966,176,160
83.16%
12,336,573
SIIP India Opportunities Fund
13,465,369
1.16%
1,155,026,558
99.42%
Maturity
Fair Value
USD
% of
Net Assets
22/06/2016
2,335,772
0.20%
2,335,772
0.20%
1,157,362,330
99.62%
Total Collective Investment Schemes
Derivative financial instruments
Notional
Underlying
Outperformance Swap – 0.20%
7,687
MSCI World Index/S&P ASX MIDCAP50 Index
AUD/USD FX rates
Total Outperformance Swap
Total financial assets at fair value through profit or loss
Cash and cash equivalents
5,400,884
0.46%
Other net assets and liabilities
(962,302)
(0.08)%
1,161,800,912
100.00%
Net assets attributable to holders of redeemable participating shares
91
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM EURO LIQUIDITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
EUR
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 72.27%
32,947
3,344,023
72.27%
Total Collective Investment Schemes
Institutional Euro Liquidity Fund
3,344,023
72.27%
Total financial assets at fair value through profit or loss
3,344,023
72.27%
Cash and cash equivalents
1,296,201
28.01%
(12,953)
(0.28)%
4,627,271
100.00%
1
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of EUR 766,600 held with
Deutsche Bank and EUR 529,601 held with Societe Generale.
92
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM STERLING LIQUIDITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
GBP
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 74.14%
10,442
1,073,066
74.14%
Total Collective Investment Schemes
Institutional Sterling Liquidity Fund
1,073,066
74.14%
Total financial assets at fair value through profit or loss
1,073,066
74.14%
Cash and cash equivalents
383,299
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
1
26.49%
(9,092)
(0.63)%
1,447,273
100.00%
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of GBP 176,741 held
with HSBC and GBP 206,558 held with Brown Brothers Harriman Cayman.
93
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL LIQUIDITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 96.69%
1
BlackRock Institutional Cash Series – Sterling Liquidity Fund
137
0.00%
1
BlackRock Institutional Euro Fund
147
0.00%
39,263
Institutional Cash Series Plc
3,945,432
41.86%
34,513
Institutional Euro Liquidity Fund
3,803,832
40.35%
9,008
Institutional Sterling Liquidity Fund
1,364,936
14.48%
Total Collective Investment Schemes
9,114,484
96.69%
Total financial assets at fair value through profit or loss
9,114,484
96.69%
Cash and cash equivalents
327,427
3.47%
Other net assets and liabilities
(14,828)
(0.16)%
9,427,083
100.00%
Net assets attributable to holders of redeemable participating shares
94
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM US DOLLAR LIQUIDITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 72.18%
38,515
Institutional Cash Series Plc
3,870,288
72.18%
Total Collective Investment Schemes
3,870,288
72.18%
Total financial assets at fair value through profit or loss
3,870,288
72.18%
Cash and cash equivalents
1,506,300
28.09%
(14,596)
(0.27)%
5,361,992
100.00%
1
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 965,140 held
with Societe Generale and USD 541,160 held with Citibank.
95
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF NFB GLOBAL BALANCED FUND OF FUNDS
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Collective Investment Schemes – 16.08%
264,880
PIMCO Funds Global Investors Series Plc – Unconstrained Bond Fund
2,728,269
16.08%
Total Collective Investment Schemes
2,728,269
16.08%
Financial assets at fair value through profit or loss
Exchange Traded Funds – 79.12%
79,326
iShares Core MSCI World UCITS ETF
3,265,554
19.24%
114,487
iShares Developed Markets Property Yield Fund
2,754,948
16.24%
116,976
iShares DJ Stoxx Global Select Dividend 100
3,291,180
19.40%
6,108
iShares Global Inflation Linked Government Bond Fund
91,869
iShares MSCI World UCITS ETF
863,305
5.09%
3,249,184
19.15%
Total Exchange Traded Funds
13,424,171
79.12%
Total financial assets at fair value through profit or loss
16,152,440
95.20%
812,252
4.79%
1,588
0.01%
16,966,280
100.00%
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
96
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Equities - 75.14%
Australia - 0.32%
42,939
Amcor Ltd
420,566
0.16%
5,693
CSL Ltd
436,911
0.16%
857,477
0.32%
420,141
0.16%
1,912,148
0.72%
2,332,289
0.88%
1,370,736
0.52%
Total Australia
Belgium - 0.88%
6,709
KBC Bankverzekeringsholding
21,157
UCB S.A.
Total Belgium
Bermuda - 0.99%
675,846
Haier Electronics Group Co. Ltd
5,007
Jardine Strategic Holdings Ltd
136,841
0.05%
752,483
Kunlun Energy Company Ltd
669,884
0.25%
3,674
Signet Jewelers Ltd
Total Bermuda
454,437
0.17%
2,631,898
0.99%
315,540
0.12%
315,540
0.12%
Brazil - 0.12%
92,806
Petroleo Brasileiro SA - ADR
Total Brazil
Canada - 0.86%
1,417
Canadian Pacific Railway Ltd
61,962
Suncor Energy Inc
13,347
Toronto-Dominion Bank
Total Canada
180,931
0.07%
1,599,077
0.60%
523,041
0.19%
2,303,049
0.86%
6,279
0.00%
910,504
0.34%
916,783
0.34%
1,546,925
0.58%
Cayman Island - 0.34%
1,216,746
GCL Poly Energy Holding Limited RTS
6,083,733
GCL-Poly Energy Holdings Ltd
Total Cayman Island
China - 0.87%
478,639
China Life Insurance
612,243
China South Locomotive and Rolling Stock Corp
Total China
756,733
0.29%
2,303,658
0.87%
353,996
0.13%
353,996
0.13%
Denmark - 0.13%
10,334
H Lundbeck A/S
Total Denmark
97
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
302,092
0.11%
302,092
0.11%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Finland - 0.11%
42,183
Nokia OYJ
Total Finland
France - 6.12%
72,961
AXA Insurance
1,998,921
0.75%
47,071
BNP Paribas
2,669,691
1.00%
2,417
Cie Generale D’Optique Essilor International
301,961
0.11%
37,210
Compagnie De Saint-Gobain SA
1,610,184
0.61%
131,668
Credit Agricole SA
1,555,595
0.58%
1,025
Hermes International
346,991
0.13%
2,237
Ingenico
282,995
0.11%
10,952
Legrand SA
620,800
0.23%
23,412
Michelin Class B
2,234,678
0.84%
7,370
Safran SA
507,153
0.19%
15,063
Sanofi-Aventis
1,285,646
0.48%
13,750
Societe Generale
635,614
0.24%
16,479
Technip
818,403
0.31%
31,825
Total SA
1,426,060
0.54%
16,294,692
6.12%
Total France
Germany - 5.01%
14,907
Bayer AG
1,874,504
0.70%
1,997
Continental AG
486,943
0.18%
14,447
Deutsche Bank AG
353,370
0.13%
4,014
Fresenius Medical Care
0.13%
15,158
Heidelberg-Cement AG
338,808
1,244,704
28,940
Lanxess
1,341,252
0.50%
142,572
Lufthansa AG
2,254,926
0.85%
15,272
Merck KGAA
1,485,409
0.56%
52,091
Metro AG
1,672,071
0.63%
8,160
SAP SE
0.25%
16,728
Siemens AG
650,213
1,632,656
13,334,856
5.01%
431,701
0.16%
Total Germany
0.47%
0.61%
Great Britain - 11.31%
28,179
ARM Holdings Plc
233,259
Aviva Plc
1,774,722
0.67%
721,500
Barclays Plc
2,328,758
0.87%
22,940
BG Group Plc
333,175
0.13%
27,708
Bhp Billiton Plc
310,500
0.12%
98
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
1,975,270
0.74%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Great Britain - 11.31% (continued)
378,426
BP Plc
113,040
British Aerospace Plc
832,716
0.31%
31,195
Capita Group Plc
555,641
0.21%
10,393
Diageo
284,497
0.11%
79,951
GlaxoSmithKline
1,618,589
0.61%
318,431
HSBC Holdings Plc
2,536,016
0.95%
9,594
Imperial Tobaco Group
507,356
0.19%
144,689
ITV Plc
590,106
0.22%
146,957
Kingfisher PLC
713,983
0.27%
1,232,222
Lloyds Bank Plc
1,327,609
0.50%
230,826
Marks and Spencer Plc
1,539,748
0.58%
50,112
Noble Corp Plc
528,682
0.20%
115,599
Petrofac
1,356,780
0.51%
11,028
Reckitt Benckiser Group
1,021,334
0.38%
20,406
Prudential Corp
460,654
0.17%
67,729
Royal Dutch Plc
1,530,655
0.57%
106,452
SKY Plc
1,745,423
0.66%
161,637
Standard Chartered Plc
1,343,479
0.50%
701,875
Tesco Plc
1,547,188
0.58%
796,692
Vodafone Group Plc
2,596,121
0.98%
4,966
WHITBREAD PLC
322,255
0.12%
30,112,958
11.31%
1,199,378
0.45%
458,882
0.17%
1,111,966
0.42%
Total Great Britain
Hong Kong - 1.62%
199,488
AIA Group Ltd
40,648
China Mobile Hong Kong Ltd
571,527
China Resources Energy
3,262,681
China Telecom Corp LTD
Total Hong Kong
1,532,250
0.58%
4,302,476
1.62%
2,312,500
0.87%
Ireland - 1.67%
7,400
Allergan Plc
12,901
CRH Plc
22,764
Medtronic Plc
Total Ireland
374,043
0.14%
1,751,007
0.66%
4,437,550
1.67%
599,445
0.23%
Israel - 1.37%
7,366
Check Point Software Technologies
99
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
3,046,090
1.14%
3,645,535
1.37%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Israel - 1.37% (continued)
46,406
Teva Pharmaceutical Industries Ltd
Total Israel
Italy - 1.42%
10,591
Atlantia SpA
281,767
0.11%
64,382
ENI-Ente Nazionale Idrocarburi SpA
964,786
0.36%
372,994
Intesa Sanpaolo SpA
1,250,739
0.47%
230,258
Unicredit SpA
1,283,934
0.48%
3,781,226
1.42%
Total Italy
Japan - 5.45%
6,749
Bridgestone Corp
48,559
Canon Inc
234,226
0.09%
1,483,781
0.56%
2,182
4,372
Daikin Industries Ltd
161,486
0.06%
Disco Corp
418,043
0.16%
1,700
Fanuc Ltd
297,963
0.11%
5,700
Fuji Heavy Industries Ltd
238,246
0.09%
12,500
KDDI Corp
327,804
0.12%
500
Keyence Corp
278,873
0.10%
111,016
Konica Minolta Inc
1,127,975
0.42%
37,214
Kubota Corp.
584,186
0.22%
1,840
Murata Manufacturing Co Ltd
217,005
Nissan Motor Co Ltd
31,400
32,127
268,802
0.10%
2,308,621
0.87%
Orix Corp
447,881
0.17%
Sekisui House Ltd
546,669
0.21%
12,800
Seven & I Holdings Co Ltd
590,671
0.22%
1,697
SMC Corp
448,272
0.17%
31,600
Softbank Corp
1,612,974
0.61%
13,846
Sumitomo Realty & Development Co Ltd
530,263
0.20%
26,559
Suntory Beverage & Food Ltd
1,174,806
0.44%
282,000
Toshiba Corp
585,947
0.22%
13,386
Toyota Motor Co
Total Japan
833,411
0.31%
14,500,900
5.45%
815,868
0.31%
815,868
0.31%
854,627
0.32%
Jersey Channel Islands - 0.31%
611,540
Glencore Plc
Total Jersey Channel Islands
Korea (South) - 1.16%
4,076
Hyundai Mobis
100
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
2,221,752
0.84%
3,076,379
1.16%
742,233
0.28%
742,233
0.28%
232,176
0.09%
1,359,806
0.51%
523,634
0.20%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Korea (South) - 1.16% (continued)
2,073
Samsung Electronics Co Ltd
Total Korea (South)
Luxembourg - 0.28%
104,360
Acergy SA
Total Luxembourg
Netherlands - 2.18%
10,344
ABN AMRO Group
239,435
Aegon NV
7,818
Akzo Nobel NV
1,675
ASML Holding NV
89,787
ING Groep NV
1,478
25,835
150,148
0.06%
1,213,865
0.45%
LyondellBasell Industries NV
128,438
0.05%
NN Group NV
913,160
0.34%
28,300
Qiagen N.V.
771,804
0.29%
7,322
Schlumberger Ltd
510,709
0.19%
5,803,740
2.18%
Total Netherlands
Norway - 0.74%
12,406
DNB ASA
153,658
0.06%
38,769
Statoil ASA
540,973
0.20%
75,855
Telenor ASA
1,268,956
0.48%
1,963,587
0.74%
670,358
0.25%
670,358
0.25%
Total Norway
Portugal - 0.25%
57,587
Galp Energia SGPS SA
Total Portugal
Singapore - 0.50%
38,278
DBS Bank Ltd
450,854
0.17%
343,247
Singapore Telecommunications Ltd
889,002
0.33%
1,339,856
0.50%
782,506
0.29%
782,506
0.29%
511,659
0.19%
511,659
0.19%
Total Singapore
Spain - 0.29%
70,751
Telefonica SA
Total Spain
Sweden - 0.19%
19,432
Getinge AB
Total Sweden
101
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
1,189,906
0.45%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Switzerland - 3.29%
66,379
ABB Ltd
2,689
ACE Limited
314,210
0.12%
2,906
Basilea Pharmaceutica AG
279,317
0.10%
86,016
Credit Suisse Group AG
1,862,149
0.70%
3,539
Lonza AG
576,116
0.22%
10,705
Nestle SA
796,544
0.30%
4,965
Novartis AG
430,145
0.16%
9,079
Roche Holding AG genusschein
2,504,677
0.94%
3,009
Swiss RE AG
294,773
0.11%
1,293
Syngenta AG
Total Switzerland
506,282
0.19%
8,754,119
3.29%
409,947
0.15%
409,947
0.15%
Thailand - 0.15%
95,596
Bangkok Bank Public Co
Total Thailand
Unites States - 27.21%
35,843
Allegheny Technology
403,234
0.15%
4,620
Alphabet Inc Cl A
3,594,406
1.35%
1,555
Amazon.Com Inc
1,051,009
0.39%
17,956
American International Group
1,112,733
0.42%
16,017
Amgen Corp Com Npv
2,600,040
0.98%
30,880
Apache Corp
1,373,234
0.52%
12,264
Apple Inc
1,290,909
0.48%
56,768
Applied Material Inc Com Stk NPV
1,059,859
0.40%
31,616
Baker Hughes
1,459,078
0.55%
3,574
Ball Corp
259,937
0.10%
1,922
Blackrock Inc
654,479
0.25%
3,201
Boeing
462,833
0.17%
7,148
CABOT OIL & GAS CORP
126,448
0.05%
11,308
Capital One Financial Corp
816,211
0.31%
8,883
Carnival Corp
483,946
0.18%
2,359
Celgene Corp
282,514
0.11%
30,990
Chemtura Corporation
845,097
0.32%
88,539
Chesapeake Energy Corp
398,425
0.15%
3,941
Chevron Corp
354,532
0.13%
3,860
Cimarex Energy Co
345,007
0.13%
49,593
Cisco Systems Internetworking Ltd
1,346,698
0.51%
54,752
Citigroup Inc
2,833,416
1.06%
14,164
Coca-Cola Co
608,485
0.23%
102
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
774,198
0.29%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Unites States - 27.21% (continued)
12,899
Cognizant Tech Solutions CRP
4,885
Colgate-Palmolive Com
51,454
Comcast Corp
4,862
8,657
325,439
0.12%
2,903,549
1.09%
Costco Wholesale Corp
785,213
0.29%
CVS Health Corporation
846,395
0.32%
7,114
Danaher Corp
660,748
0.25%
175,392
Denbury Resources Inc.
354,292
0.13%
7,660
Devon Energy Corporation
245,120
0.09%
9,966
Discover Financial Services
534,377
0.20%
5,965
Dow Chemical Co
307,078
0.12%
10,990
Eastman Chemical Co
741,935
0.28%
2,920
Electronic Arts Inc
200,662
0.08%
5,351
Estee Lauder Cos
471,209
0.18%
4,652
Extra Space Storage
410,353
0.15%
7,389
Exxon Corp
575,973
0.22%
3,484
Facebook Inc
364,635
0.14%
2,448
FDX Corp
364,728
0.14%
22,361
Fifth Third Bancorp
449,456
0.17%
2,521
Foot Locker Inc
164,092
0.06%
29,991
General Motors Co
1,019,994
0.38%
30,166
Gilead Sciences Inc
3,052,498
1.15%
24,846
Halliburton Co
845,758
0.32%
55,190
Hewlett Packard Enterprise
838,888
0.31%
5,533
Home Depot
731,739
0.27%
33,480
HP Inc
396,403
0.15%
1,784
International Flavors & Fragrances Inc
213,438
0.08%
14,727
Interpublic Group Cos. Inc.
342,845
0.13%
4,366
Johnson & Johnson
448,476
0.17%
2,277
JONES LANG LASALLE INC
364,001
0.14%
34,259
JP Morgan Chase & Co
2,262,122
0.85%
46,830
Knowles Corporation
624,244
0.23%
7,790
Lilly (Eli) & Co
656,385
0.25%
537
LinkedIn Corp
120,868
0.05%
30,463
Macy’s Inc
1,065,596
0.40%
9,973
Mastercard Inc
970,971
0.36%
757
Mckesson Corp
149,303
0.06%
15,252
Merck & Co
805,611
0.30%
3,498
Metlife Inc
168,639
0.06%
51,568
Microsoft Corp
2,860,993
1.07%
2,332
Mohawk Industries Inc
441,657
0.17%
103
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
271,775
0.10%
1,393,787
0.52%
458,031
0.17%
Financial assets at fair value through profit or loss (continued)
Equities - 75.14% (continued)
Unites States - 27.21% (continued)
6,061
Mondelez International Inc
43,816
Morgan Stanley
7,874
Nasdaq OMX Group Inc
130,825
News Corporation
1,747,822
0.66%
31,490
Oracle Corp
1,150,330
0.43%
2,217
O’Reilly Automotive Inc
62,710
Pfizer Inc
3,543
8,860
11,774
Sealed Air Corp.
10,270
Stanley Black & Decker Inc
7,090
4,435
7,224
Thermo Fisher Scientific Inc
8,591
TJX Cos Inc
2,950
31,755
561,832
0.21%
2,024,279
0.76%
Procter & Gamble Co
281,350
0.11%
Rockwell Collins
817,778
0.31%
525,120
0.20%
1,096,117
0.41%
Starbucks Corp.
425,613
0.16%
Texas Instruments Inc
243,082
0.09%
1,024,724
0.38%
609,188
0.23%
Tripadvisor Inc.
251,487
0.09%
Twenty First Century Fox Inc
862,466
0.32%
1,242
Ultimate Software Group Inc
242,823
0.09%
6,786
United Healthcare Corp
798,305
0.30%
3,406
United TechnologiesCorp
327,214
0.12%
6,944
Vantiv Inc Class A Shares
329,284
0.12%
19,272
Voya Financial Inc
17,968
Walgreens Boots Alliance Inc
5,167
11,088
711,330
0.27%
1,530,065
0.57%
Walt Disney Co
542,948
0.20%
Wells Fargo & Co
602,745
0.23%
72,451,906
27.21%
200,049,133
75.14%
15,434,368
5.80%
28,207,168 Sanlam World Equity Fund
48,978,925
18.39%
Total Collective Investment Schemes
64,413,293
24.19%
264,462,426
99.33%
Cash and cash equivalents
1,943,377
0.73%
Other net assets and liabilities
(130,553)
(0.06)%
266,275,250
100.00%
Total Unites States
Total Equities
Collective Investment Schemes - 24.19%
863,060
Aberdeen Global - World Equity Fund
Total financial assets at fair value through profit or loss
Net assets attributable to holders of redeemable participating shares
104
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF SANLAM BIFM GLOBAL FIXED INCOME FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 99.10%
213,843
PIMCO Global Investors Series Plc – Global High Yield Bond Fund
20,631,844
Sanlam Global Bond Fund
4,197,737
13.39%
26,870,914
85.71%
Total Collective Investment Schemes
31,068,651
99.10%
Total financial assets at fair value through profit or loss
31,068,651
99.10%
Cash and cash equivalents
354,899
1.13%
Other net assets and liabilities
(72,937)
(0.23)%
31,350,613
100.00%
Net assets attributable to holders of redeemable participating shares
105
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF MPILE GLOBAL EQUITY FUND
as at 31 December 2015
Fair Value
USD
% of
Net Assets
18,693,671
4,411
73.88%
0.02%
6,429,305
25.41%
Total Collective Investment Schemes
25,127,387
99.31%
Total financial assets at fair value through profit or loss
25,127,387
99.31%
Nominal
Security
Financial assets at fair value through profit or loss
Collective Investment Schemes – 99.31%
1,270,814
484
BlackRock Global Funds - Global Equity Income Fund
Franklin Templeton Global Equity Income Fund
5,411,418
Sanlam World Equity Tracker Fund
Cash and cash equivalents
196,868
0.78%
Other net assets and liabilities
(21,742)
(0.09)%
25,302,513
100.00%
Net assets attributable to holders of redeemable participating shares
106
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF BRACKENHAM GLOBAL BALANCED FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
137,739
0.79%
137,739
0.79%
Financial assets at fair value through profit or loss
Equities - 52.82%
China - 0.79%
2,100
Petrochina Co Ltd
Total China
Germany - 1.58%
1,200
Bayer AG
150,896
0.87%
5,000
Deutsche Bank AG
122,299
0.71%
273,195
1.58%
Total Germany
Great Britain - 8.47%
45,000
GlaxoSmithKline
911,015
5.25%
23,244
HSBC Holdings
183,772
1.06%
80,000
Intu Properties Plc
Total Great Britain
374,285
2.16%
1,469,072
8.47%
262,656
1.52%
262,656
1.52%
140,987
0.81%
140,987
0.81%
142,436
0.82%
142,436
0.82%
470,360
2.71%
470,360
2.71%
Hong Kong - 1.52%
43,200
Dairy Farm Intl
Total Hong Kong
Korea (South) - 0.81%
5,000
KB Financial Group Inc
Total Korea (South)
Norway - 0.82%
11,500
DNB ASA
Total Norway
Singapore - 2.71%
430,000
Suntec Real Estate Investment Trust
Total Singapore
Switzerland - 8.79%
8,000
Nestle SA
595,269
3.43%
2,750
Novartis AG
238,247
1.37%
625
Roche Holding AG genusschein
172,422
1.00%
1,325
Syngenta AG
Total Switzerland
518,812
2.99%
1,524,750
8.79%
Unites States - 27.33%
600
Alphabet Inc Cl A
466,806
2.69%
3,300
American International Group
204,501
1.18%
2,650
Amgen Corp Com Npv
430,175
2.48%
107
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF BRACKENHAM GLOBAL BALANCED FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss (continued)
Equities - 52.82% (continued)
Unites States - 27.33% (continued)
1,875
Berkshire Hathaway Inc.
247,575
1.43%
4,850
Brown-Forman Corp-Cl B
481,508
2.78%
8,750
Cisco Systems Internetworking Ltd
237,606
1.37%
5,625
Conocophillips Co
262,631
1.51%
24,500
General Electric Co
763,175
4.40%
1,500
Intl Business Machine Corp
206,430
1.19%
2,650
Johnson & Johnson
272,208
1.57%
10,000
Microsoft Corp
554,800
3.20%
3,250
Oracle Corp Com
162,451
0.94%
8,250
Wells Fargo & Co
448,471
2.59%
Total Unites States
4,738,337
27.33%
Total Equities
9,159,532
52.82%
Collective Investment Schemes - 5.38%
11,806
Orbis SICAV - Japan Equity Fund
426,884
2.46%
35,714
Orbis Optimal SA Fund Ltd
506,429
2.92%
933,313
5.38%
Total Collective Investment Schemes
Exchange Traded Funds - 4.24%
7,600
iShares MSCI South Korea Index Fund
377,492
2.18%
28,000
Ishares MSCI Taiwan Index Fund
357,560
2.06%
735,052
4.24%
10,827,897
62.44%
Total Exchange Traded Funds
Total financial assets at fair value through profit or loss
1
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
6,510,846
949
37.55%
17,339,692
100.00%
0.01%
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 3,140,400 held
with Citibank, USD 3,140,400 held with Societe Generale and USD 230,046 held with JPM Chase.
108
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF APS GLOBAL FLEXIBLE FUND OF FUNDS
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss
Collective Investment Schemes – 95.03%
791,378
Coronation Global Managed Fund
8,261,428
18.06%
418,944
Investec Global Multi Asset Income Fund
9,019,864
19.72%
337,387
Investec Global Strategic Managed Fund
8,056,805
17.61%
4,772,616
Nedgroup Global Equity Fund
6,938,429
15.17%
7,520,185
Nedgroup Global Flexible Fund
8,351,166
18.26%
256,835
Sarasin IE Real Estate Equity Global
2,842,910
6.21%
Total Collective Investment Schemes
43,470,602
95.03%
Total financial assets at fair value through profit or loss
43,470,602
95.03%
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
109
2,306,405
5.04%
(34,287)
(0.07)%
45,742,720
100.00%
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
213,527
1.51%
213,527
1.51%
Financial assets at fair value through profit or loss
Equities - 89.32%
Bermuda - 1.51%
15,133
Textainer Group Holdings Ltd
Total Bermuda
Cayman Island - 4.71%
1,575
Baidu Com Inc
297,738
2.10%
13,214
Noah Holdings Ltd
369,067
2.61%
666,805
4.71%
328,733
2.32%
328,733
2.32%
153,216
1.08%
153,216
1.08%
Total Cayman Island
Denmark - 2.32%
5,660
Novo Nordisk A/S
Total Denmark
Germany - 1.08%
28,800
Porsche Automobil Holding SE
Total Germany
Great Britain - 2.55%
4,279
Diageo
117,133
0.83%
6,020
London Stock Exchange Group Plc
243,570
1.72%
360,703
2.55%
168,102
1.19%
168,102
1.19%
Total Great Britain
Hong Kong - 1.19%
6,600
Hong Kong Exhanges & Clearing Limited
Total Hong Kong
Japan - 2.50%
7,100
Nidec Corporation
129,504
0.91%
8,910
Softbank Group Corp
224,398
1.59%
353,902
2.50%
412,406
2.91%
412,406
2.91%
292,098
2.06%
292,098
2.06%
Total Japan
Netherlands - 2.91%
9,520
Unilever NV
Total Netherlands
Switzerland - 2.06%
3,925
Nestle SA-Spons Adr For Reg
Total Switzerland
Unites States - 68.49%
1,780
Adobe Systems Inc
167,213
1.18%
4,650
ADT Corp
153,357
1.08%
110
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
Fair Value
USD
% of
Net Assets
Financial assets at fair value through profit or loss (continued)
Equities - 89.32% (continued)
Unites States - 68.49% (continued)
4,142
Akamai Technologies Inc
217,993
1.54%
720
Alphabet Inc Cl C
546,394
3.86%
968
Amazon.Com Inc
654,262
4.62%
452
Amerco
176,054
1.24%
4,067
American Airlines Group Inc
172,237
1.22%
2,648
Apple Inc
278,728
1.97%
1,585
Becton Dickinson & Co
244,233
1.73%
2,805
Berkshire Hathaway Inc.
370,372
2.62%
2,213
Brown-Forman Corp-Cl B
219,707
1.55%
5,250
CF Industries Holdings Inc
214,252
1.51%
6,298
Coca-Cola Co
270,562
1.91%
3,700
Davita Inc
257,927
1.82%
5,100
eBay Inc.
140,148
0.99%
1,890
Facebook Inc
197,807
1.40%
1,720
FDX Corp
256,263
1.81%
3,400
First Solar Inc
224,366
1.58%
2,532
Gilead Sciences Inc
256,213
1.81%
1,440
Goldman Sachs Group Inc
259,531
1.83%
790
Intl Business Machine Corp
108,720
0.77%
2,568
Johnson & Johnson
263,785
1.86%
4,040
Marriott International Inc.
270,842
1.91%
7,370
Mastercard Inc
717,543
5.07%
3,500
Nasdaq OMX Group Inc
203,595
1.44%
5,775
Paypal Holdings Inc
209,055
1.48%
330
Priceline Group Incorporated
420,733
2.97%
2,177
Procter & Gamble Co
172,876
1.22%
4,260
Starbucks Corp.
255,728
1.81%
9,960
Superior Uniform Group Inc
169,121
1.19%
1,700
Tempur-Pedic International Inc
119,782
0.85%
3,763
TJX Cos Inc
266,834
1.88%
3,510
Union Pacific Corp
274,482
1.94%
6,365
Visa Inc
493,606
3.49%
3,569
Wal-Mart Stores Inc.
218,780
1.55%
4,650
Wells Fargo & Co
252,774
1.79%
9,695,875
68.49%
Total Equities
12,645,367
89.32%
Total financial assets at fair value through profit or loss
12,645,367
89.32%
Total Unites States
111
SANLAM GLOBAL FUNDS PLC
PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND
(CONTINUED)
as at 31 December 2015
Nominal
Security
% of
Net Assets
Fair Value
USD
1
Cash and cash equivalents
Other net assets and liabilities
Net assets attributable to holders of redeemable participating shares
1
1,531,773
10.82%
(19,551)
(0.14)%
14,157,589
100.00%
The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 1,531,773 held
with Societe Generale.
112
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
for the year ended 31 December 2015
1
General – The Company
Sanlam Global Funds plc (the “Company”) is an investment company with variable capital and was
incorporated on 11 June 1999 with registration number 307841 under the laws of Ireland and
authorised under Part 24 of the Companies Act, 2014 as a designated open-ended investment
company pursuant to Section 1395 of that Act. The Company is domiciled in Ireland.
The Company is authorised by the Central Bank of Ireland as a Retail Investor Alternative Investment
Fund (“RIAIF”) in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). In
order to comply with the requirements of AIFMD, the Manager is the Alternative Investment Fund
Manager (“AIFM”).
At 31 December 2015, the Company comprised fifteen separate active investment sub-funds
(“Fund(s)”). The Articles of Association of the Company provides segregated liability between the
various Funds. A list of Funds active during the year and their status at the year end is set out below:
Name
Status at 31 December 2015
Analytics International Flexible Fund
Sanlam Global Balanced Fund
Sanlam Global Best Ideas Feeder Fund
Sanlam Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
Sanlam International Multi Asset I Fund
Verso Global Flexible Fund
NFB Global Balanced Fund of Funds
Sanlam BIFM Emerging Markets Equity Fund
Sanlam BIFM World Equity Fund
Sanlam BIFM Global Fixed Income Fund
Sanlam BIFM South Africa Inflation Linked Bond Fund
Mpile Global Equity Fund
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
Counterpoint Global Equity Fund
Active
Active
Active
Active
Active
Active
Active
Active
Closed 02 February 2015
Closed 16 March 2015
Active
Closed 27 May 2015
Active
Active
Closed 02 March 2015
Active
Active – launched 19 March 2015
Active – launched 07 May 2015
Active – launched 02 June 2015
Prices
There is a single price for buying, selling and switching Share classes in each Fund. This is
represented by the Net Asset Value per Share class of the relevant Fund. In the case of subscriptions,
a preliminary charge of up to 5% may be added to the Net Asset Value per Share class of all Funds. A
conversion fee of up to 2% may be charged on applications to convert Shares of any class to Shares
of another class. A repurchase fee of up to 3% may be deducted from the Net Asset Value per Share
class of all Funds. Details of the charges applicable to each Fund are detailed in the Fund
supplements.
Dealing
The Dealing Day is, except where otherwise clarified in the Prospectus or sub-fund supplement, any
day other than Saturday or Sunday on which banks are open for business in Dublin. The valuation
point is, except where otherwise clarified in the Prospectus or sub-fund supplement, the close of
business in each relevant market on the business day immediately preceding a dealing day.
113
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
1
General – The Company (continued)
Shares
Applications for shares must be sent so as to arrive at the Registrar and Transfer Agent's office, no
later than 4.00pm (Irish time) on the business day preceding the relevant dealing day, or such later
time as the Directors may from time to time permit. Applications which are received late, or funds
which are not cleared by the relevant time, will be held over and invested at the next dealing day.
Requests for repurchases should be sent so as to arrive at the Registrar and Transfer Agent's office
by post, facsimile or telex by no later than 4.00pm on the business day preceding the relevant dealing
day.
As at 31 December 2015, the following Share classes were admitted to the official list of the Irish
Stock Exchange.
Fund
Share Class
Launched
Analytics International Flexible Fund
A
14 December 2012
Sanlam Global Balanced Fund
A
B
C
05 May 2001
30 July 1999
30 July 1999
Sanlam Global Best Ideas Feeder Fund
A
B
C
16 August 2004
16 August 2004
16 August 2004
Sanlam Global Equity Fund
A
B
C
16 August 1999
17 November 2000
20 July 2000
Sanlam Euro Liquidity Fund
A
B
C
29 September 2008
29 September 2008
29 September 2008
Sanlam Sterling Liquidity Fund
A
B
C
29 September 2008
29 September 2008
29 September 2008
Sanlam Global Liquidity Fund
A
B
C
16 August 2004
16 August 2004
16 August 2004
Sanlam US Dollar Liquidity Fund
A
B
C
29 September 2008
29 September 2008
29 September 2008
114
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
1
General – The Company (continued)
Shares (continued)
Fund
Share Class
Launched
NFB Global Balanced Fund of Funds
A
B
C
02 September 2013
02 September 2013
27 June 2014
Sanlam BIFM World Equity Fund
A
B
04 November 2013
04 November 2013
Sanlam BIFM Global Fixed Income Fund
A
B
C
04 November 2013
04 November 2013
29 September 2014
Mpile Global Equity Fund
A
B
C
23 May 2014
23 May 2014
23 May 2014
Brackenham Global Balanced Fund
A
B
12 June 2015
19 March 2015
APS Global Flexible Fund of Funds
A
B
07 May 2015
07 May 2015
Minimum Subscription
The minimum initial investment for each of the Funds is as follows:
Class A Shares USD
Class B Shares USD
Class C Shares USD
Class D Shares USD
Analytics
International
Flexible
Fund
10,000
N/A
N/A
N/A
Sanlam
Global
Equity Fund
1,000
350,000
400,000
N/A
Sanlam Global
Best Ideas
Feeder Fund
1,000
750,000
1,000,000
N/A
Sanlam Global
Balanced Fund
1,000
350,000
400,000
1,500,000
Class A Shares USD
Class B Shares USD
Class C Shares USD
Sanlam Euro
Liquidity
Fund
1,000
1,000,000
5,000,000
Sanlam
Sterling
Liquidity
Fund
1,000
1,000,000
5,000,000
Sanlam Global
Liquidity Fund
1,000
1,000,000
5,000,000
Sanlam US
Dollar Liquidity
Fund
1,000
1,000,000
5,000,000
115
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
1
General – The Company (continued)
Shares (continued)
Minimum Subscription (continued)
Class A Shares USD
Class B Shares USD
Class C Shares USD
Class D Shares USD
Class G Shares USD
NFB Global
Balanced
Fund of
Funds
20,000
1,000,000
20,000
N/A
N/A
Sanlam
BIFM World
Equity Fund
1,000
1,000,000
5,000,000
50,000,000
N/A
Sanlam BIFM
Global Fixed
Income Fund
1,000
1,000,000
5,000,000
50,000,000
3,000,000
Class A Shares USD
Class B Shares USD
Brackenham
Global
Balanced
Fund
10,000
100,000
APS Global
Flexible
Fund of
Funds
5,000
10,000
Counterpoint
Global Equity
Fund
30,000
10,000
Mpile Global
Equity Fund
1,000
N/A
1,000,000
10,000,000
N/A
The minimum additional investment for the Class A shares of Analytics International Flexible Fund is
USD 1,000.The minimum additional investment amount for the Class A shares of Sanlam Global
Equity Fund and Sanlam Global Balanced Fund is USD 300, The minimum additional investment
amount for each of the Class A, Class B and Class C shares of NFB Global Balanced Fund of Funds
is USD 5,000. There is no minimum additional investment amount required for any of the other share
classes of the Funds.
2
Significant accounting policies
(a) Basis of preparation
The financial statements have been prepared in accordance with Irish Statute comprising the
Companies Act 2014 under the historical cost convention as modified by the revaluation of financial
assets and financial liabilities held at fair value through profit or loss. The financial statements are
prepared in US Dollars (“USD”) and on a going concern basis.
These financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the European Union (“EU”) and interpretations adopted by the
International Accounting Standard Board (“IASB”).
The principle accounting policies adopted in the preparation of the financial statements are set out
overleaf.
All references to net assets throughout this document refer to net assets attributable to holders of
redeemable participating shares, unless otherwise stated.
The Statement of Financial Position presents assets and liabilities in decreasing order of liquidity and
does not distinguish between current and non-current items.
116
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2
Significant accounting policies (continued)
(b) Significant accounting judgments and estimates
The preparation of the Company’s financial statements requires management to make judgments,
estimates and assumptions that affect the amounts recognised in the financial statements. However,
uncertainty about these assumptions and estimates could result in outcomes that could require a
material adjustment to the carrying amount of the asset or liability affected in the future.
Going concern
The Company’s management has made an assessment of the Company’s ability to continue as a
going concern and is satisfied that the Company has the resources to continue in business for the
foreseeable future. Furthermore, the management is not aware of any material uncertainties that may
cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the
financial statements continue to be prepared on the going concern basis.
Fair value of financial instruments
When the fair value of financial assets and financial liabilities recorded in the Statement of Financial
Position cannot be determined based on quoted prices in an active market, they are determined using
an appropriate valuation technique. The valuation techniques employed by the Company and the
judgements, estimates and assumptions associated with them are disclosed in note 2(d).
Investment entity status
The Company’s management has determined that the Company has all of the typical characteristics of
an investment entity as set out in paragraph 27 of IFRS 10.
(c) Income recognition
Interest income and expense are recognised in the Statement of Comprehensive Income using the
using the effective interest rate method.
Dividends are recognised as income on the dates the securities are first quoted “ex dividend” to the
extent that information thereon is reasonably available to the relevant Fund. Bank deposit interest and
other income are accounted for on an accruals basis. Income which is subject to a deduction of tax at
source is shown gross of such withholding tax. Withholding tax recoverable is accounted for on a
receipts basis. Franked investment income (which comprises most of the UK source dividend income)
is shown net of the notional tax credit.
(d) Investment transactions and valuations
(i) Classification
In accordance with IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”), the
Funds have classified all of their investments as financial assets and liabilities at fair value through
profit or loss. The categories of financial assets and financial liabilities at fair value through profit or
loss comprise:
 Financial assets or financial liabilities held for trading: these are instruments which are either
acquired for generating a profit from short-term fluctuations in price or dealer margins, or are
included in a portfolio where a pattern of short-term trading exists. Under IAS 39, derivatives and
short positions are always classified as held for trading. All derivatives in a net receivable position
(positive fair value) are reported as financial assets. All derivatives in a net payable position
(negative fair value) are reported as financial liabilities.
117
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2
Significant accounting policies (continued)
(d) Investment transactions and valuations (continued)
(i) Classification (continued)
 Financial assets or financial liabilities designated at fair value through profit or loss upon initial
recognition: Financial assets are designated at fair value through profit or loss upon initial
recognition if the investments are managed and purchase and sale decisions are made based on
their fair value in accordance with the Funds’ documented risk management or investment
strategy.
At 31 December 2015 and 31 December 2014, the Funds classified their investments as held for
trading. All other financial assets are classified as loans and receivables and are carried at amortised
cost using the effective interest rate method, less impairment losses, if any.
Financial liabilities that are not held for trading comprise balances due to brokers and all other
liabilities. These are carried at amortised cost using the effective interest rate method, less impairment
losses, if any.
(ii) Recognition
The Company recognises financial assets and financial liabilities on the date it becomes a party to the
contractual provisions of the instrument.
A regular way purchase of financial assets is recognised using trade date accounting. From this date
any gains or losses arising from changes in the fair value of the financial assets or financial liabilities
are recorded in profit or loss in the Statement of Comprehensive Income.
Financial liabilities are not recognised unless one of the parties has performed or the contract is a
derivative contract not exempted from the scope of IAS 39.
(iii) Measurement and fair value measurement principles
Initial measurement
Financial instruments are measured initially at fair value (transaction price) plus, in the case of
financial assets or financial liabilities not at fair value through profit or loss, transaction costs that are
directly attributable to the acquisition or issue of the financial assets or financial liabilities.
Transaction costs on financial assets or financial liabilities at fair value through profit or loss are
expensed immediately while on other financial instruments they are amortised. Transaction costs are
included within commission and other charges in the Statement of Comprehensive Income.
Subsequent measurement
Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or
loss are measured at fair value, with changes in their fair value recognised as gains or losses in the
Statement of Comprehensive Income in the period in which they arise.
Loans and receivables are measured at amortised cost using the effective interest rate method, less
impairment losses, if any.
Financial liabilities that are not at fair value through profit or loss are measured at amortised cost
using the effective interest rate method.
Financial liabilities arising from the redeemable shares issued by the Funds are carried at the
redemption amount representing the investor’s right to a residual interest in the Funds’ assets.
118
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2
Significant accounting policies (continued)
(d) Investment transactions and valuations (continued)
(iii) Measurement and fair value measurement principles (continued)
Fair value measurement principles
In accordance with IFRS 13, Fair value measurement (“IFRS 13”), the fair value of financial assets
and financial liabilities traded in active markets (such as publicly traded derivatives, trading securities
and exchange-traded funds) are based on the last reported sales price at the close of trading on the
reporting date, if the last reported sales price falls within the bid-ask spread. However, if the last
reported sales price falls outside the bid-ask spread, Management will determine the point within the
bid-ask spread that is most representative of fair value.
Assets not listed, or traded on any stock exchange or over-the-counter (“OTC”) market, are valued at
their fair value as determined with care and in good faith by the AIFM in consultation with the relevant
Investment Manager.
Collective investment schemes – investments in open-ended collective investment schemes are
valued at the latest available unaudited net asset value. Closed ended schemes which are traded as
liquid schemes are valued at bid price at the year-end or if unavailable, a mid-quotation from a broker
or, if unavailable or unrepresentative, the latest available unaudited net asset value as deemed
relevant to the collective investment scheme.
Derivative instruments – exchange-traded derivative instruments are valued at the settlement price for
such instruments as determined on the specific market. If such a price is not available the fair value
shall be the probable realisation value estimated by the the AIFM, consulting where appropriate with
Investment Manager.
OTC derivative instruments are valued at the settlement price as provided by the counterparty and
verified by the AIFM on a monthly basis, or by a competent person appointed by the AIFM and
approved for such a purpose by the Depositary. Such competent person may be the relevant
Investment Manager provided that he is independent of the counterparty.
Forward foreign exchange contracts are valued with reference to the prevailing market maker
quotations, namely the price at which a new forward contract of the same maturity could be
undertaken or, if unavailable, at the settlement price provided by the counterparty.
119
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2
Significant accounting policies (continued)
(d) Investment transactions and valuations (continued)
(iv) Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in
accordance with IAS 39. A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled or expired.
The Company uses the first-in-first-out (“FIFO”) method to determine realised gains and losses on
derecognition. Realised gains and losses on derecognition are included in the Statement of
Comprehensive Income.
(v) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the Statement of
Financial Position when there is a legally enforceable right to offset the recognised amounts and there
is an intention to settle on a net basis or realise the asset and liability simultaneously.
(e) Foreign currency translation
Functional and presentation currency
Items included in each Fund’s financial statements are measured using the currency of the primary
economic environment in which it operates (‘the functional currency’).
US Dollar (“USD”) is the functional currency of Analytics International Flexible Fund, Sanlam Global
Balanced Fund, Sanlam Global Best Ideas Feeder Fund, Sanlam Global Equity Fund, Sanlam Global
Liquidity Fund, Sanlam US Dollar Liquidity Fund, Sanlam International Multi-Asset I Fund, Verso
Global Flexible Fund, NFB Global Balanced Fund of Funds, Sanlam BIFM Emerging Markets Equity
Fund, Sanlam BIFM World Equity Fund, Sanlam BIFM Global Fixed Income Fund, Sanlam BIFM
South Africa Inflation Linked Bond Fund, Mpile Global Equity Fund, Brackenham Global Balanced
Fund, APS Global Flexible Fund of Funds and Counterpoint Global Equity Fund.
Euro (“EUR”) is the functional currency of Sanlam Euro Liquidity Fund.
Pound Sterling (“GBP”) is the functional currency of Sanlam Sterling Liquidity Fund.
The functional currency of each Fund reflects the primary denomination of the securities and
derivatives in which it invests.
The Company has adopted USD as its presentation currency. Where necessary, each Fund’s financial
position is translated from its functional currency to the presentation currency, as follows:


assets and liabilities, including net assets attributable to holders of redeemable participating
shares, are translated at the closing rate at each reporting date. Exchange differences arising
between the rate of translation of subscriptions and the holders of redeemable participating
shares; and
income and expenses for each Statement of Comprehensive Income are translated at average
exchange rates.
120
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2
Significant accounting policies (continued)
(e) Foreign currency translation (continued)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the Statement of
Comprehensive Income.
Proceeds from subscriptions and amounts paid on redemption of redeemable participating shares are
translated at monthly average rates, which approximate the rates prevailing at the dates of the
transactions. Translation differences on non-monetary items, such as equities, held at fair value
through profit and loss are reported as part of their fair value gain or loss.
(f) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term
highly liquid investments with original maturities of three months or less, and bank overdrafts are
included within liabilities.
(g) Margin accounts
Margin accounts represent the exchange-traded futures contracts margin deposit amounts held with
brokers.
(h) Distribution Policy
The Directors have no current intention to make distributions from any Fund. All such profits shall be
retained in the relevant Fund.
(i) Consolidation
The Company has determined that it is an investment entity in accordance with IFRS 10, Consolidated
Financial Statements and Investment Entities Amendments to IFRS 10, IFRS 12 and IAS 27.
Information about the significant judgements and assumptions made in determining that the Company
is an investment entity is disclosed in note 2(b). As an investment entity, the Company is required to
account for its investment in subsidiaries, if any, at fair value through profit or loss. The Company does
not present consolidated financial statements since it is required to measure all of its subsidiaries at
fair value through profit or loss.
(j) Changes in accounting policy and disclosures
Standards and amendments to existing standards effective 1 January 2015
There were no standards and amendments to existing standards effective 1 January 2015, relevant to
investment entities.
121
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
2 Significant accounting policies (continued)
(k) Standards, interpretations and amendments to published standards that are not yet
effective
The following new standards, amendments to standards and interpretations that may be relevant to
investment funds have been issued to date and are not yet effective for these financial statements of
the Company for the year ended 31 December 2015, and have not been applied nor early adopted in
preparing these financial statements:
Effective date
Standard:
Narrative:
Annual periods beginning
on or after
IFRS 9
Financial Instruments: Classification and
1 January 2018
Measurement
IFRS 9 Financial Instruments: Classification and Measurement (“IFRS 9”)
IFRS 9, issued on 24 July 2014 is the IASB’s replacement of IAS 39. IFRS 9 includes requirements
for recognition and measurement, impairment, derecognition and general hedge accounting.
The IASB completed its project to replace IAS 39 in phases, adding to the standard in each phase.
The complete standard issued on 24 July 2014 includes requirements previously issued and
additional amendments to incorporate a new expected loss impairment model and to introduce limited
amendments to the classification and measurement requirements for financial assets.
This version of IFRS 9 supersedes all previous versions and is mandatorily effective for periods
beginning on or after 1 January 2018 with early adoption permitted (subject to local endorsement
requirements). For a limited period, previous versions of IFRS 9 may be adopted early if not already
done so provided the relevant date of initial application is before 1 February 2015.
IFRS 9 uses business models and contractual cash flow characteristics to determine whether a
financial asset is measured at amortised cost, fair value through profit or loss or fair value through
other comprehensive income, replacing the four category classification in IAS 39. The approach is
also based on how an entity manages its financial instruments (its business model) and the
contractual cash flow characteristics of the financial assets. Most of the requirements for financial
liabilities were carried forward unchanged from IAS 39. However, some changes were made to the
fair value option for financial liabilities to address the issue of own credit risk.
IFRS 9 introduces a substantially-reformed model for hedge accounting with enhanced disclosures
about risk management activity.
As part of IFRS 9, the IASB has introduced a new, expected loss impairment model that will require
more timely recognition of expected credit losses. Specifically, the new standard requires entities to
account for expected credit losses from when financial instruments are first recognised and it lowers
the threshold for recognition of full lifetime expected losses.
Paragraph 31 of IAS 8 Accounting Polices, Change in Accounting Estimates and Errors states that
financial statements disclose either:
(i)
(ii)
a discussion of the impact that initial application of the IFRS is expected to have on the entity’s
financial statements; or
if that impact is not known or reasonably estimable, a statement to that effect.
Based on an initial assessment, IFRS 9 is not expected to have a material impact on the financial
statements of the Company as financial instruments that are currently measured at fair value through
profit or loss will continue to be measured at fair value through profit or loss under IFRS 9. Similarly,
those financial instruments currently measured at amortised cost will continue to be measured at
amortised cost under IFRS 9.
122
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
3
Taxation
The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes
Consolidation Act, 1997, as amended. It is not chargeable to Irish tax on its income or gains. Tax may
arise on the happening of a chargeable event. A chargeable event includes any distribution payments
to shareholders or any other encashment, redemption or transfer of shares. No tax will arise on the
Company in respect of chargeable events in respect of:


a shareholder who is not an Irish resident and not ordinarily resident in Ireland for tax purposes,
at the time of the chargeable event, provided the necessary signed statutory declarations are held
by the Company; and
certain exempted Irish resident investors who have provided the Company with the necessary
signed statutory declarations.
Following legislative changes in the Finance Act 2006, the holding of shares at the end of a Relevant
Period will, in respect of Irish Resident investors, also constitute a chargeable event. To the extent
that any tax issues arise on such a chargeable event, such tax will be allowed as a credit against any
tax payable on the subsequent encashment, redemption, cancellation of the relevant Shares.
Relevant Period is defined as a period of 8 years, beginning with the acquisition of a Share by a
shareholder and each subsequent period of 8 years beginning immediately after the preceding
Relevant Period.
Dividend income, interest and capital gains received by the Company may be subject to nonrecoverable withholding tax in the countries of origin.
4
Share Capital
Authorised Share Capital
The authorised share capital of the Company is 1,000,000,000,000 shares of no par value.
Subscriber Shares
The equity share capital of the Company is USD 7 represented by Subscriber Shares issued for the
purposes of incorporation of the Company. These Shares are beneficially owned by the Manager. The
Manager is an ultimate subsidiary of Sanlam Limited. The holder or holders of Subscriber Shares are
entitled to one vote only in respect of all Subscriber Shares. The Subscriber Shares do not form part
of Shareholders’ Funds. They are thus disclosed in the financial statements by way of this note only.
In the opinion of the Directors, this disclosure reflects the nature of the Company’s business as an
investment fund.
Redeemable Participating Shares
Each Fund may issue one of more classes of Shares and each class of Shares in a Fund may have
different charging structures and different minimum initial investment amounts, minimum additional
investment amounts and minimum shareholding requirements. Each class of Shares has a distinct fee
structure as outlined in note 12.
123
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
The following share classes were in issue as at 31 December 2015:
Fund
Class A
Class B
Class C


-
-
Sanlam Global Balanced Fund


Sanlam Global Best Ideas Feeder Fund



Sanlam Global Equity Fund



Sanlam Euro Liquidity Fund



Sanlam Sterling Liquidity Fund



Sanlam Global Liquidity Fund



Sanlam US Dollar Liquidity Fund



NFB Global Balanced Fund of Funds





Sanlam BIFM World Equity Fund
Sanlam BIFM Global Fixed Income Fund



Mpile Global Equity Fund



Brackenham Global Balanced Fund


-
APS Global Flexible Fund of Funds


-
-

-
Analytics International Flexible Fund
Counterpoint Global Equity Fund
-
The redeemable participating shares are redeemable at the shareholders option and are classified as
financial liabilities. They carry voting rights. The participating shares can be put back to the Company
at any time for cash equal to a proportionate share of the Company’s net asset value. The
participating share is carried at the redemption amount that is payable at the balance sheet date if the
shareholder exercises its right to put the share back to the Company.
The Shares issued by the Company are freely transferable and entitled to participate equally in the
profits and dividends of the Company and in its net assets upon liquidation. The Shares, which are of
no par value, carry no preferential or pre-emptive rights and are entitled to one vote each at all
meetings of the relevant class of Shareholders. All Shares rank pari-passu.
124
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015:
Analytics International Flexible Fund
Class A
Shares
4,774,678
542,759
(969,942)
4,347,495
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
Redemptions during the year
Class A
USD
5,893,212
(10,303,650)
Sanlam Global Balanced Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
6,195,321
1,584,333
(2,579,121)
5,200,533
Class B
Shares
1,319,654
996,858
(171,659)
2,144,853
Class C
Shares
72,679,095
(9,916,904)
62,762,191
Subscriptions during the year
Redemptions during the year
Class A
USD
2,259,332
(3,668,151)
Class B
USD
1,689,129
(294,168)
Class C
USD
(16,732,862)
Class A
Shares
1,253,226
(413,540)
839,686
Class B
Shares
55,181
(763)
54,418
Class C
Shares
64,421,080
(37,549,434)
26,871,646
Class A
USD
(782,388)
Class B
USD
(1,395)
Class C
USD
(71,450,966)
Sanlam Global Best Ideas Feeder Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
Redemptions during the year
125
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Sanlam Global Equity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
2,993,637
6,526
(2,142,077)
858,086
Class B
Shares
4,173,320
67,977
(669,563)
3,571,734
Class C
Shares
1,025,991,082
2,456,303
(149,284,180)
879,163,205
Subscriptions during the year
Redemptions during the year
Class A
USD
7,986
(2,628,188)
Class B
USD
89,620
(893,220)
Class C
USD
3,317,447
(204,155,879)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
73
73
Class B
Shares
72
72
Class C
Shares
5,144,058
(523,058)
4,621,000
Subscriptions during the year
Redemptions during the year
Class A
EUR
-
Class B
EUR
-
Class C
EUR
(531,876)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
56
56
Class B
Shares
56
56
Class C
Shares
1,628,789
31,560
(199,580)
1,460,769
Subscriptions during the year
Redemptions during the year
Class A
GBP
-
Class B
GBP
-
Class C
GBP
31,933
(201,946)
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
126
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Sanlam Global Liquidity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
8,563,074
537,129
(405,330)
8,694,873
Class B
Shares
881,637
(881,537)
100
Class C
Shares
100
100
Subscriptions during the year
Redemptions during the year
Class A
USD
595,126
(450,641)
Class B
USD
(953,592)
Class C
USD
-
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
536,538
(536,438)
100
Class B
Shares
100
100
Class C
Shares
6,246,955
359,897
(1,175,620)
5,431,232
Subscriptions during the year
Redemptions during the year
Class A
USD
(533,077)
Class B
USD
-
Class C
USD
359,905
(1,175,768)
Class A
Shares
Class B
Shares
74,059
(74,059)
-
100
(100)
-
Class A
(GBP)
Shares
101
(101)
-
Class A
USD
Class B
USD
(84,185)
(102)
Sanlam US Dollar Liquidity Fund
Sanlam International Multi-Asset I Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
Redemptions during the year
127
Class A
(GBP)
USD
(181)
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Verso Global Flexible Fund
Class A
Shares
16,554
(16,554)
-
Class I
Shares
4,219,275
(4,219,275)
-
Class A
USD
(170,898)
Class I
USD
(49,309,706)
Class A
Shares
49,563
1,019,771
(63,391)
1,005,943
Class B
Shares
1,557,176
7,155
(1,016,347)
547,984
Class C
Shares
477,013
3,611
(480,614)
10
Class A
USD
11,291,380
(689,785)
Class B
USD
80,405
(11,047,024)
Class C
USD
35,945
(4,791,450)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
175,930
57
(175,987)
-
Class B
Shares
170,846,268
71,905
(170,918,173)
-
Subscriptions during the year
Redemptions during the year
Class A
USD
53
(161,638)
Class B
USD
66,615
(155,722,570)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
Redemptions during the year
NFB Global Balanced Fund of Funds
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
Redemptions during the year
Sanlam BIFM Emerging Markets Equity Fund
128
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Sanlam BIFM World Equity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
318,618,005
8,353,172
(57,102,055)
269,869,122
Class B
Shares
423,140,314
441,391
(421,781,757)
1,799,948
Subscriptions during the year
Redemptions during the year
Class A
USD
9,000,387
(57,924,096)
Class B
USD
446,783
(446,780,175)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
123,989,813
1,031,580
(93,022,022)
31,999,371
Class B
Shares
630,438
1,300,002
(397,395)
1,533,045
Class C
Shares
11,196,557
3,951
(11,200,408)
100
Subscriptions during the year
Redemptions during the year
Class A
USD
1,012,238
(92,113,287)
Class B
USD
1,267,304
(387,982)
Class C
USD
3,881
(11,008,712)
Sanlam BIFM Global Fixed Income Fund
Sanlam BIFM South Africa Inflation Linked Bond Fund
Class B (ZAR)
Shares
Opening shares issued
76,514,991
Shares issued during the year
16,569,354
Shares redeemed during the year
(93,084,345)
Closing shares issued
Class B (ZAR)
USD
Subscriptions during the year
Redemptions during the year
14,692,046
(80,293,999)
129
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Mpile Global Equity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
100
100
Class B
Shares
100
100
Class C
Shares
13,336,570
13,277,438
(107,492)
26,506,516
Subscriptions during the year
Redemptions during the year
Class A
USD
-
Class B
USD
-
Class C
USD
12,753,844
(100,870)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
9,969,561
(77,063)
9,892,498
Class B
Shares
8,076,652
8,076,652
Subscriptions during the year
Redemptions during the year
Class A
USD
9,770,817
(73,917)
Class B
USD
8,074,387
-
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
100
100
Class B
Shares
48,130,955
48,130,955
Subscriptions during the year
Redemptions during the year
Class A
USD
100
-
Class B
USD
48,062,496
-
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
130
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2015 (continued):
Counterpoint Global Equity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class B
Shares
14,345,865
(197,803)
14,148,062
Subscriptions during the year
Redemptions during the year
Class B
USD
14,287,757
(200,950)
Participating share transactions for the year ended 31 December 2014:
Analytics International Flexible Fund
Class A
Shares
4,144,825
773,197
(143,344)
4,774,678
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Subscriptions during the year
8,720,429
(1,628,471)
Redemptions during the year
Sanlam Global Balanced Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
4,601,680
2,928,376
(1,334,735)
6,195,321
Class B
Shares
131,145
1,197,715
(9,206)
1,319,654
Class C
Shares
75,304,263
9,311,117
(11,936,285)
72,679,095
Subscriptions during the year
Redemptions during the year
Class A
USD
4,182,887
(1,889,159)
Class B
USD
2,051,597
(15,617)
Class C
USD
15,610,849
(20,239,195)
131
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2014 (continued):
Sanlam Global Best Ideas Feeder Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
3,178,305
(1,925,079)
1,253,226
Class B
Shares
1,981,346
(1,926,165)
55,181
Class C
Shares
74,499,375
(10,078,295)
64,421,080
Subscriptions during the year
Redemptions during the year
Class A
USD
(3,536,848)
Class B
USD
(3,641,304)
Class C
USD
(19,201,931)
Sanlam Global Equity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
1,755,322
3,010,787
(1,772,472)
2,993,637
Class B
Shares
4,264,148
4,620,309
(4,711,137)
4,173,320
Class C
Shares
1,161,165,768
1,111,279,597
(1,246,454,282)
1,025,991,083
Class A
USD
1,549,560
(36,781)
Class B
USD
417,313
(535,319)
Class C
USD
21,738,254
(199,386,638)
Subscriptions during the year
Redemptions during the year
Sanlam Euro Liquidity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
73
73
Class B
Shares
72
72
Class C
Shares
5,649,070
(505,012)
5,144,058
Subscriptions during the year
Redemptions during the year
Class A
EUR
-
Class B
EUR
-
Class C
EUR
(513,541)
132
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2014 (continued):
Sanlam Sterling Liquidity Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
56
56
Class B
Shares
56
56
Class C
Shares
1,794,487
(165,698)
1,628,789
Subscriptions during the year
Redemptions during the year
Class A
GBP
-
Class B
GBP
-
Class C
GBP
(167,188)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
9,822,578
2,112,890
(3,372,394)
8,563,074
Class B
Shares
17,056,514
(16,174,877)
881,637
Class C
Shares
100
100
Subscriptions during the year
Redemptions during the year
Class A
USD
2,569,746
(4,077,913)
Class B
USD
(19,094,120)
Class C
USD
-
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
26,918
536,438
(26,818)
536,538
Class B
Shares
100
100
Class C
Shares
7,367,985
(1,121,030)
6,246,955
Subscriptions during the year
Redemptions during the year
Class A
USD
532,897
(26,638)
Class B
USD
-
Class C
USD
(1,120,488)
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
133
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2014 (continued):
Sanlam International Multi-Asset I Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
172,633
1,524
(100,098)
74,059
Class B
Shares
100
100
Class A (EUR)
Shares
100
(100)
-
Subscriptions during the year
Redemptions during the year
Class A
USD
1,695
(112,039)
Class B
USD
-
Class A (EUR)
USD
(149)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A (GBP)
Shares
165,516
(165,415)
101
Class B (EUR)
Shares
100
(100)
-
Class B (GBP)
Shares
36,086
(36,086)
-
Subscriptions during the year
Redemptions during the year
Class A (GBP)
USD
(286,288)
Class B (EUR)
USD
(135)
Class B (GBP)
USD
(66,017)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
14,713
2,581
(740)
16,554
Class I
Shares
4,784,967
123,111
(688,803)
4,219,275
Subscriptions during the year
Redemptions during the year
Class A
USD
26,767
(8,289)
Class I
USD
1,505,723
(8,320,134)
Verso Global Flexible Fund
134
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2014 (continued):
NFB Global Balanced Fund of Funds
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
10
50,291
(738)
49,563
Class B
Shares
2,976,039
299,823
(1,718,686)
1,557,176
Class C
Shares
477,659
(646)
477,013
Subscriptions during the year
Redemptions during the year
Class A
USD
556,263
(8,208)
Class B
USD
3,319,323
(18,850,753)
Class C
USD
4,727,005
(6,381)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
1,951,870
339,473
(2,115,413)
175,930
Class B
Shares
228,775,652
13,656,085
(71,585,469)
170,846,268
Subscriptions during the year
Redemptions during the year
Class A
USD
343,274
(2,065,848)
Class B
USD
13,500,348
(67,221,908)
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
324,465,099
23,934,048
(29,781,142)
318,618,005
Class B
Shares
360,105,969
135,523,265
(72,488,920)
423,140,314
Subscriptions during the year
Redemptions during the year
Class A
USD
24,751,369
(30,778,409)
Class B
USD
139,884,237
(76,861,861)
Sanlam BIFM Emerging Markets Equity Fund
Sanlam BIFM World Equity Fund
135
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
4
Share Capital (continued)
Redeemable Participating Shares (continued)
Participating share transactions for the year ended 31 December 2014 (continued):
Sanlam BIFM Global Fixed Income Fund
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
155,490,947
20,899,425
(52,400,559)
123,989,813
Class B
Shares
100
630,338
630,438
Class C
Shares
11,196,557
11,196,557
Subscriptions during the year
Redemptions during the year
Class A
USD
21,499,050
(52,761,126)
Class B
USD
641,899
-
Class C
USD
11,190,104
-
Opening shares issued
Shares issued during the year
Shares redeemed during the year
Closing shares issued
Class A
Shares
100
100
Class B
Shares
100
100
Class C
Shares
14,936,570
(1,600,000)
13,336,570
Subscriptions during the year
Redemptions during the year
Class A
USD
100
-
Class B
USD
100
-
Class C
USD
14,594,475
(1,567,039)
Sanlam BIFM South Africa Inflation Linked Bond Fund
Class B (ZAR)
Shares
Opening shares issued
Shares issued during the year
76,514,991
Shares redeemed during the year
Closing shares issued
76,514,991
Class B (ZAR)
USD
Subscriptions during the year
Redemptions during the year
69,983,353
-
Mpile Global Equity Fund
136
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
5
Investments in subsidiaries
At 31 December 2015, the Funds held a majority holding in the following collective investment schemes:
Sanlam Global Balanced Fund
Name
Sanlam Centre Global Select Equity Fund
Country of
incorporation
Ireland
Geographic
focus
Global
Proportion of
ownership
interest held
74.68%
Country of
incorporation
Ireland
Ireland
Ireland
Geographic
focus
Global
United States
Global
Proportion of
ownership
interest held
92.63%
79.29%
76.45%
Sanlam Global Equity Fund
Name
Sanlam FOUR Stable Global Equity Fund
Sanlam FOUR US Dividend Income Fund
Sanlam World Equity Fund
At 31 December 2014, the Funds held a majority holding in the following collective investment
schemes:
Sanlam Global Balanced Fund
Name
Miton Global Equity Fund
(formerly PSigma Global Equity Fund)
Country of
incorporation
Geographic
focus
United Kingdom
Global
Proportion of
ownership
interest held
90.66%
Sanlam Global Equity Fund
Name
Sanlam FOUR US Dividend Income Fund
8IP Australian Small Companies Fund
Sanlam World Equity Fund
Country of
incorporation
Ireland
Australia
Ireland
137
Geographic
focus
United States
Australia
Global
Proportion of
ownership
interest held
99.99%
97.78%
73.51%
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
6
Net gains and losses on financial assets and liabilities at fair value through profit or loss
Net gains and losses for the year ended 31 December 2015:
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Analytics
International
Flexible Fund
2015
USD
1,338,536
(1,717,494)
3,545,749
(3,925,507)
81,343
(677,373)
Sanlam Global
Balanced
Fund
2015
USD
2,530,663
(1,772,334)
1,064,622
(4,470,299)
(24,650)
(2,671,998)
Sanlam Global
Best Ideas
Feeder Fund
2015
USD
8,724,496
(14,142,804)
(5,418,308)
Sanlam Global
Equity Fund
2015
USD
103,479,344
5,735,513
(96,156,955)
(59,706)
12,998,196
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam Euro
Liquidity Fund
2015
EUR
68,010
(75)
(70,319)
(31)
(2,415)
Sanlam
Sterling
Liquidity Fund
2015
GBP
29,226
(24,769)
9
4,466
Sanlam Global
Liquidity Fund
2015
USD
5,153
(869,944)
363,745
(1,306)
(2,616)
(504,968)
Sanlam
US Dollar
Liquidity Fund
2015
USD
18,943
(14,043)
(3)
4,897
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam
International
Multi-Asset I
Fund
2015
USD
7,623
(139)
140
(7,779)
(17)
(172)
Verso Global
Flexible
Fund
2015
USD
7,191,576
(3,107,437)
3,259,466
(6,546,964)
(8,734)
787,907
NFB Global
Balanced
Fund of Funds
2015
USD
355,069
(9,968)
(1,207,831)
(1,977)
(864,707)
Sanlam BIFM
Emerging
Markets
Equity Fund
2015
USD
10,302,950
(14,847,350)
14,047,135
(5,337,366)
(1,139,395)
3,025,974
138
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
6
Net gains and losses on financial assets and liabilities at fair value through profit or loss
(continued)
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam
BIFM World
Equity Fund
2015
USD
58,967,141
(39,010,062)
41,028,979
(54,047,954)
(61,511)
6,876,593
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Brackenham
Global
Balanced
Fund
2015
USD
48,733
(114,252)
364,572
(777,402)
(2,615)
(480,964)
985,255
(2,667,740)
582,041
(627,231)
(1,727,675)
Sanlam BIFM
South Africa
Inflation
Linked Fund
2015
USD
(4,163,599)
2,820,530
(243,003)
(1,586,072)
APS Global
Flexible
Fund of Funds
2015
USD
(9,515)
(2,169,883)
(80)
(2,179,478)
Counterpoint
Global
Equity Fund
2015
USD
66,260
(174,349)
824,344
(566,944)
(265)
149,046
Sanlam BIFM
Global Fixed
Income Fund
2015
USD
-
Mpile Global
Equity Fund
2015
USD
23,114
(133,776)
281,040
(160,653)
(1)
9,724
Net gains and losses for the year ended 31 December 2014:
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Analytics
International
Flexible Fund
2014
USD
939,771
(861,330)
2,579,963
(4,903,257)
12,853
(2,232,000)
Sanlam Global
Balanced
Fund
2014
USD
6,785,228
(36,598)
1,341,655
(6,168,623)
7,247
1,928,909
139
Sanlam Global
Best Ideas
Feeder Fund
2014
USD
3,446,912
565,931
4,012,843
Sanlam Global
Equity Fund
2014
USD
86,825,500
(3,323,325)
8,115,315
(46,606,706)
(38,168)
44,972,616
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
6
Net gains and losses on financial assets and liabilities at fair value through profit or loss
(continued)
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam Euro
Liquidity Fund
2014
EUR
6,396
(4,813)
23
1,606
Sanlam
Sterling
Liquidity Fund
2014
GBP
1,962
2,200
(8)
4,154
Sanlam Global
Liquidity Fund
2014
USD
294,994
(71,317)
(1,005,795)
7,030
(775,088)
Sanlam
US Dollar
Liquidity Fund
2014
USD
2,181
202
2,383
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam
International
Multi-Asset I
Fund
2014
USD
45,619
(404)
383
(21,454)
(10,195)
13,949
Verso Global
Flexible
Fund
2014
USD
3,584,884
(704,743)
2,564,763
(7,015,865)
(10,508)
(1,581,469)
NFB Global
Balanced
Fund of Funds
2014
USD
1,410,483
448,032
(358,267)
(12,587)
1,487,661
Sanlam BIFM
Emerging
Markets
Equity Fund
2014
USD
8,870,940
(22,377,761)
13,868,100
(15,814,810)
(71,953)
(15,525,484)
Realised gains
Realised losses
Change in unrealised gains
Change in unrealised losses
Foreign currency gain/(loss)
Total gains/(losses)
Sanlam
BIFM World
Equity Fund
2014
USD
24,305,064
(12,040,593)
44,858,833
(69,431,781)
13,561
(12,294,916)
Sanlam BIFM
Global Fixed
Income Fund
2014
USD
774,525
(164,501)
375,601
(360,763)
(3)
624,859
140
Sanlam BIFM
South Africa
Inflation
Linked Fund
2014
USD
21,085
(40,965)
(2,820,530)
38,655
(2,801,755)
Mpile Global
Equity Fund
2014
USD
(104,813)
(217,465)
(322,278)
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
7
Financial assets and financial liabilities at fair value through profit or loss
The following tables show financial assets measured at fair value through profit or loss at 31
December 2015:
Analytics
International
Flexible Fund
31/12/2015
USD
Sanlam Global
Balanced Fund
31/12/2015
USD
Sanlam Global
Best Ideas
Feeder Fund
31/12/2015
USD
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
Equity
35,018,292
Corporate Debt
4,572,104
Government Debt
1,103,540
Total financial assets at fair value through
profit or loss
40,693,936
111,305,073
-
50,764,385
-
111,305,073
50,764,385
Sanlam Global
Equity Fund
31/12/2015
USD
Sanlam Euro
Liquidity Fund
31/12/2015
EUR
Sanlam
Sterling
Liquidity Fund
31/12/2015
GBP
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
1,155,026,558
Derivatives
2,335,772
Total financial assets at fair value through
profit or loss
1,157,362,330
3,344,023
-
1,073,066
-
3,344,023
1,073,066
Sanlam
Global
Liquidity Fund
31/12/2015
USD
Sanlam
US Dollar
Liquidity Fund
31/12/2015
USD
NFB Global
Balanced
Fund of Funds
31/12/2015
USD
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
9,114,484
Exchange Traded Funds
Total financial assets at fair value through
profit or loss
9,114,484
3,870,288
-
2,728,269
13,424,171
3,870,288
16,152,440
141
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
7
Financial assets and financial liabilities at fair value through profit or loss (continued)
Sanlam
BIFM World
Equity Fund
31/12/2015
USD
Sanlam BIFM
Global Fixed
Income Fund
31/12/2015
USD
Mpile Global
Equity Fund
31/12/2015
31/12/2014
Financial assets at fair value through profit or loss
Held for trading:
Equity
200,049,133
Collective Investment Schemes
64,413,293
Total financial assets at fair value through
profit or loss
264,462,426
31,068,651
25,127,387
31,068,651
25,127,387
Brackenham
Global
Balanced Fund
31/12/2015
USD
APS Global
Flexible Fund
of Funds
31/12/2015
USD
Counterpoint
Global Equity
Fund
31/12/2015
USD
Financial assets at fair value through profit or loss
Held for trading:
Equity
9,159,532
Collective Investment Schemes
933,313
Exchange Traded Funds
735,052
Total financial assets at fair value through
profit or loss
10,827,897
43,470,602
-
12,645,367
-
43,470,602
12,645,367
The following tables show financial assets measured at fair value through profit or loss at 31
December 2014:
Analytics
International
Flexible Fund
31/12/2014
USD
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
Equity
41,202,926
Corporate Debt
5,907,554
Government Debt
699,889
Total financial assets at fair value through
profit or loss
47,810,369
142
Sanlam Global
Balanced Fund
31/12/2014
USD
Sanlam Global
Best Ideas
Feeder Fund
31/12/2014
USD
131,560,904
-
127,711,141
-
131,560,904
127,711,141
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
7
Financial assets and financial liabilities at fair value through profit or loss (continued)
Sanlam Global
Equity Fund
31/12/2014
USD
Sanlam Euro
Liquidity Fund
31/12/2014
EUR
Sanlam
Sterling
Liquidity Fund
31/12/2014
GBP
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
1,354,735,474
Derivatives
2,248,217
Total financial assets at fair value through
profit or loss
1,356,983,691
3,728,617
-
1,193,202
-
3,728,617
1,193,202
Sanlam
Global
Liquidity Fund
31/12/2014
USD
Sanlam
US Dollar
Liquidity Fund
31/12/2014
USD
Sanlam
International
Multi-Asset I
Fund
31/12/2014
USD
Financial assets at fair value through profit or loss
Held for trading:
Collective Investment Schemes
10,514,485
Total financial assets at fair value through
profit or loss
10,514,485
4,825,469
71,485
4,825,469
71,485
Verso Global
Flexible
Fund
31/12/2014
USD
NFB Global
Balanced
Fund of Funds
31/12/2014
USD
Sanlam BIFM
Emerging
Markets
Equity Fund
31/12/2014
USD
Financial assets at fair value through profit or loss
Held for trading:
Equity
47,626,376
Equity Linked Note
Collective Investment Schemes
Exchange Traded Funds
Total financial assets at fair value through
profit or loss
47,626,376
2,849,629
14,233,704
146,487,312
1,103,418
240,794
-
17,083,333
147,831,524
143
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
7
Financial assets and financial liabilities at fair value through profit or loss (continued)
Sanlam BIFM
World
Equity Fund
31/12/2014
USD
Sanlam BIFM
Global Fixed
Income Fund
31/12/2014
USD
Sanlam BIFM
South Africa
Inflation Linked
Bond Fund
31/12/2014
USD
Financial assets at fair value through profit or loss
Held for trading:
Equity
559,958,980
Collective Investment Schemes
185,786,161
Corporate Debt
Government Debt
Total financial assets at fair value through
profit or loss
745,745,141
132,479,704
-
927,437
62,433,645
132,479,704
63,361,082
Mpile Global
Equity Fund
31/12/2014
USD
Financial assets at fair value through profit or loss
Held for trading:
Equity
Collective Investment Schemes
12,614,102
Total financial assets at fair value through
profit or loss
12,614,102
The following table shows financial liabilities measured at fair value through profit or loss at 31
December 2015:
Analytics
International
Flexible Fund
31/12/2015
USD
Financial liabilities at fair value through profit or loss
Held for trading:
Derivatives
(16,311)
Total financial liabilities at fair value through
profit or loss
(16,311)
144
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
7
Financial assets and financial liabilities at fair value through profit or loss (continued)
The following table shows financial liabilities measured at fair value through profit or loss at 31
December 2014:
Analytics
International
Flexible Fund
31/12/2014
USD
Financial liabilities at fair value through profit or loss
Held for trading:
Derivatives
Total financial liabilities at fair value through
profit or loss
8
(891)
(891)
Fair value of financial instruments
The AIFM is responsible for ensuring that proper and independent valuation of the assets of the Company
can be performed. The financial instruments held by each Fund are valued in accordance with the valuation
policy of the AIFM.
The following table shows financial instruments recognised at fair value. The fair value hierarchy has the
following levels:



Quoted prices in active markets for identical assets or liabilities (Level 1);
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
The inputs or methodology used for valuing securities are not necessarily an indication of the risks
associated with investing in those securities.
Assets measured at fair value
The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair
value through profit or loss at 31 December 2015:
Analytics International Flexible Fund
Equity
Bonds
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
35,018,292
1,103,540
4,572,104
-
35,018,292
5,675,644
36,121,832
4,572,104
-
40,693,936
145
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
Sanlam Global Balanced Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
111,305,073
-
-
111,305,073
111,305,073
-
-
111,305,073
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
50,764,385
-
-
50,764,385
50,764,385
-
-
50,764,385
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
1,124,215,620
-
30,810,938
2,335,772
- 1,155,026,558
2,335,772
1,124,215,620
33,146,710
- 1,157,362,330
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
3,344,023
-
-
3,344,023
3,344,023
-
-
3,344,023
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
1,073,066
-
-
1,073,066
1,073,066
-
-
1,073,066
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
9,114,484
-
-
9,114,484
9,114,484
-
-
9,114,484
Sanlam Global Best Ideas Feeder Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Global Equity Fund
Collective Investment Schemes
Outperformance Swap
Total financial assets at fair value
through profit or loss
Sanlam Euro Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Sterling Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Global Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
146
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
Sanlam US Dollar Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
3,870,288
-
-
3,870,288
3,870,288
-
-
3,870,288
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
2,728,269
13,424,171
-
-
2,728,269
13,424,171
16,152,440
-
-
16,152,440
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
200,042,854
64,413,293
6,279
-
-
200,049,133
64,413,293
264,456,147
6,279
-
264,462,426
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
31,068,651
-
-
31,068,651
31,068,651
-
-
31,068,651
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
25,127,387
-
-
25,127,387
25,127,387
-
-
25,127,387
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
9,159,532
735,052
933,313
-
-
9,159,532
933,313
735,052
9,894,584
933,313
-
10,827,897
NFB Global Balanced Fund of Funds
Collective Investment Schemes
Exchange Traded Funds
Total financial assets at fair value
through profit or loss
Sanlam BIFM World Equity Fund
Equity
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam BIFM Global Fixed Income Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Mpile Global Equity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Brackenham Global Balanced Fund
Equity
Collective Investment Schemes
Exchange Traded Funds
Total financial assets at fair value
through profit or loss
147
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
APS Global Flexible Fund of Funds
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
43,470,602
-
-
43,470,602
43,470,602
-
-
43,470,602
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
12,645,367
-
-
12,645,367
12,645,367
-
-
12,645,367
Counterpoint Global Equity Fund
Equity
Total financial assets at fair value
through profit or loss
The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair
value through profit or loss at 31 December 2014:
Analytics International Flexible Fund
Equity
Bonds
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
41,202,926
699,889
5,907,554
-
41,202,926
6,607,443
41,902,815
5,907,554
-
47,810,369
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
98,751,573
32,809,331
-
131,560,904
98,751,573
32,809,331
-
131,560,904
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
127,711,141
-
-
127,711,141
127,711,141
-
-
127,711,141
Sanlam Global Balanced Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Global Best Ideas Feeder Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
148
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
Sanlam Global Equity Fund
Collective Investment Schemes
Outperformance Swap
Total financial assets at fair value
through profit or loss
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
1,325,373,448
-
29,362,026
2,248,217
- 1,354,735,474
2,248,217
1,325,373,448
31,610,243
- 1,356,983,691
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
3,728,617
-
-
3,728,617
3,728,617
-
-
3,728,617
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
1,193,202
-
-
1,193,202
1,193,202
-
-
1,193,202
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
10,514,485
-
-
10,514,485
10,514,485
-
-
10,514,485
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
4,825,469
-
-
4,825,469
4,825,469
-
-
4,825,469
Level 1
USD
-aA
Level 2
USD
Level 3
USD
Total
USD
71,485
-
-
71,485
71,485
-
-
71,485
Sanlam Euro Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Sterling Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam Global Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam US Dollar Liquidity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam International Multi-Asset I Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
149
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
Verso Global Flexible Fund
Equity
Total financial assets at fair value
through profit or loss
Level 1
USD
-aA
Level 2
USD
Level 3
USD
Total
USD
47,577,792
48,584
-
47,626,376
47,577,792
48,584
-
47,626,376
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
2,849,629
14,233,704
-
-
2,849,629
14,233,704
17,083,333
-
-
17,083,333
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
143,859,528
240,794
2,627,784
1,103,418
-
-
146,487,312
1,103,418
240,794
144,100,322
3,731,202
-
147,831,524
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
559,958,980
185,786,161
-
-
559,958,980
185,786,161
745,745,141
-
-
745,745,141
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
132,479,704
-
-
132,479,704
132,479,704
-
-
132,479,704
NFB Global Balanced Fund of Funds
Collective Investment Schemes
Exchange Traded Funds
Total financial assets at fair value
through profit or loss
Sanlam BIFM Emerging Markets Equity Fund
Equity
Equity Linked Note
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam BIFM World Equity Fund
Equity
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Sanlam BIFM Global Fixed Income Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
150
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Assets measured at fair value (continued)
Sanlam BIFM South Africa Inflation Linked Bond Fund
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
-
63,361,082
-
63,361,082
-
63,361,082
-
63,361,082
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
12,614,102
-
-
12,614,102
12,614,102
-
-
12,614,102
Bonds
Total financial assets at fair value
through profit or loss
Mpile Global Equity Fund
Collective Investment Schemes
Total financial assets at fair value
through profit or loss
Liabilities measured at fair value
The following table analyses, within the fair value hierarchy, the Funds’ financial liabilities at fair value
through profit or loss at 31 December 2015:
Analytics International Flexible Fund
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
-
(16,311)
-
(16,311)
-
(16,311)
-
(16,311)
Forward Currency Contracts
Total financial assets at fair value
through profit or loss
The following table analyses, within the fair value hierarchy, the Funds’ financial liabilities at fair value
through profit or loss at 31 December 2014:
Analytics International Flexible Fund
Level 1
USD
Level 2
USD
Level 3
USD
Total
USD
-
(891)
-
(891)
-
(891)
-
(891)
Forward Currency Contracts
Total financial assets at fair value
through profit or loss
Investments whose values are based on quoted market prices in active markets, and therefore
classified within level 1, include active listed equities, exchange traded derivatives and collective
investment schemes. The AIFM does not adjust the quoted price for these instruments nor does it
apply a discount to securities where the volume traded in the market is low relative to the Fund’s
holding.
151
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
8
Fair value of financial instruments (continued)
Financial instruments that trade in markets that are not considered to be active but are valued based
on quoted market prices, dealer quotations or alternative pricing sources supported by observable
inputs are classified within level 2 (i.e. OTC derivatives such as forward currency contracts). These
include certain collective investment schemes, over-the-counter derivatives such as forward currency
contracts and swaps. As level 2 investments include positions that are not traded in active markets
and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or nontransferability, which are generally based on available market information.
Investments classified within level 3, if any, have significant unobservable inputs, as they trade
infrequently.
Significant transfers between levels 1, 2 and 3
There were no significant transfers between levels in the year ended 31 December 2015.
The following table shows significant transfers between level 1 and level 3 of the fair value hierarchy
for financial assets recognised at fair value for the year ended 31 December 2014:
Sanlam BIFM Emerging Markets Equity Fund
Financial assets held for trading:
Equities
Transfer from level
1 to level 3
46,059
The following table shows a reconciliation of all movements in the fair value of financial instruments
categorised within Level 3 between 1 January and 31 December 2015 and 1 January and 31
December 2014:
Sanlam BIFM Emerging Markets Equity Fund*
Investment in securities
2015
2014
(11,044)
(101,092)
87,094
(21,017)
46,059
-
Balance as at 1 January
Realised gains/(losses)
Change in unrealised
Gross Purchases
Gross Sales
Transfers in and out of level 3
Balance as at 31 December
Total unrealised gains and losses for the year included
in profit or loss for level 3 assets held at year end
-
(120,213)
*Sanlam BIFM Emerging Markets Equity ceased trading and was fully redeemed on 27 May 2015. At this date,
the Fund held a level 3 security, African Bank Investments Ltd., which was valued at USD Nil (trading was
suspended on this security on 10 August 2014 and its value was written down to USD Nil on 3 October 2014).
Any value realised on the eventual disposal of this security by the AIFM will be distributed to those shareholders
who held shares in the Sanlam BIFM Emerging Markets Equity Fund at the final redemption date.
For the purpose of IFRS 7 for the reconciliation showing the change in fair value due to a change in
inputs used, changes to one or more of the inputs to reasonably alternative assumptions, is irrelevant
in this case and would result in this position being written down to zero.
152
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
9
Assets and liabilities not carried at fair value but for which fair value is disclosed
For all non-financial assets and liabilities at fair value through profit and loss, their carrying values are
a reasonable approximation of fair value.
10
Offsetting of financial assets and liabilities
IFRS 7 requires an entity to disclose information to enable users of its financial statements to evaluate
the effect or potential effect of netting arrangements on the entity’s financial position.
At 31 December 2015 and 31 December 2014, one Fund held derivative financial instruments that
were subject to an enforceable master netting arrangement or similar agreement.
The following tables provide information on the financial impact of netting for instruments subject to
an enforceable master netting arrangement or similar agreement at 31 December 2015 and 31
December 2014:
Analytics International Flexible Fund – 31 December 2015
Gross amount
of recognised
financial assets/
liabilities
USD
Derivative financial assets
Forwards
Amounts of
financial
assets/
liabilities
presented in
the statement
of financial
position
USD
Gross amount of
recognised
financial
liabilities/ assets
set off in the
statement of
financial position
USD
-
-
-
Other financial assets at fair value
through profit or loss
40,693,936
-
40,693,936
Total financial assets at fair value
through profit or loss
40,693,936
-
40,693,936
(16,311)
(16,311)
-
(16,311)
(16,311)
-
-
-
(16,311)
-
(16,311)
Derivative financial liabilities
Forwards
Other financial liabilities at fair value
through profit or loss
Total financial liabilities at fair
value through profit or loss
153
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
10
Offsetting of financial assets and liabilities (continued)
Analytics International Flexible Fund – 31 December 2015 (continued)
Related amounts not set
off in the statement of
financial position
Amounts of
financial
assets/liabilities
Financial
Cash
presented in the
instruments
collateral
statement of
financial
position
USD
USD
USD
Derivative financial assets
Forwards
Net
amount
USD
-
-
-
-
Other financial assets at fair
value profit or loss
through
40,693,936
-
-
40,693,936
Total financial assets at fair
value
through profit or loss
40,693,936
-
-
40,693,936
(16,311)
(16,311)
-
16,311
16,311
-
Other financial liabilities at fair
value
through profit or loss
-
-
-
-
Total financial liabilities at
fair
value through profit or loss
(16,311)
-
16,311
-
Derivative financial liabilities
Forwards
154
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
10
Offsetting of financial assets and liabilities (continued)
Analytics International Flexible Fund – 31 December 2014
Gross amount
of recognised
financial assets/
liabilities
USD
Derivative financial assets
Forwards
Other financial assets at fair value
through profit or loss
Total financial assets at fair value
through profit or loss
Derivative financial liabilities
Forwards
Other financial liabilities at fair value
through profit or loss
Total financial liabilities at fair
value through profit or loss
Gross amount of
recognised
financial
liabilities/ assets
set off in the
statement of
financial position
USD
Amounts of
financial
assets/
liabilities
presented in
the statement
of financial
position
USD
-
-
-
47,810,369
-
47,810,369
47,810,369
-
47,810,369
(891)
(891)
-
(891)
(891)
-
-
-
(891)
-
(891)
155
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
10
Offsetting of financial assets and liabilities (continued)
Analytics International Flexible Fund – 31 December 2014 (continued)
Related amounts not set
off in the statement of
financial position
Amounts of
financial
assets/liabilities
Financial
Cash
presented in the
instruments
collateral
statement of
financial
position
USD
USD
USD
Derivative financial assets
Forwards
Other financial assets at fair
through
value profit or loss
Total financial assets at fair
through
value profit or loss
Derivative financial liabilities
Forwards
Other financial liabilities at fair
through profit or loss
value
Total financial liabilities at
value through profit or loss
fair
Net
amount
USD
-
-
-
-
47,810,369
-
-
47,810,369
47,810,369
-
-
47,810,369
(891)
(891)
-
891
891
-
-
-
-
-
(891)
-
891
-
156
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
11
Exchange rates
The following year end USD exchange rates have been used in this report:
1 USD =
AED
AUD
BRL
CAD
CHF
CLP
CNY
DKK
EUR
GBP
HKD
IDR
INR
JPY
KES
KRW
MXN
NGN
NOK
NZD
PHP
QAR
RON
SEK
SGD
THB
TRY
TWD
USD
ZAR
31 December 2015
1.3722
1.3841
1.0019
708.6000
6.4915
6.8719
0.9209
0.6782
7.7508
66.2003
120.2700
1175.6400
17.1980
8.8650
1.4616
8.4502
1.4170
36.0280
1.0000
15.4951
31 December 2014
3.6723
1.2258
2.6804
1.1627
0.9894
605.8230
6.1385
6.1235
0.8226
0.6437
7.7574
12406.9000
63.5901
119.9300
89.0462
1096.7300
14.7589
180.9820
7.4363
1.2805
44.6834
3.6386
3.6819
7.7965
1.3230
32.8684
2.3215
31.7433
1.0000
11.6017
The following average USD exchange rates have been used in this report:
1 USD =
EUR
GBP
31 December 2015
0.9012
0.6544
157
31 December 2014
0.7535
0.6072
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12
Related party transactions and significant agreements
Directors’ interests
At 31 December 2015, Haydn Franckeiss held 39,547.68 shares in Sanlam Global Best Ideas Feeder
Fund.
The other Directors had no interest in the shares of the Company or Funds at 31 December 2015 or
at any time during the financial period.
Significant Agreements
Manager
Pursuant to the Amended and Restated Management and Administration Agreement effective 29
August 2014, SAMI acts as both Manager and Administrator to the Company. SAMI is an ultimate
subsidiary Company of Sanlam Limited.
The Manager is entitled to receive an AIFM fee (an annual fee of the percentages listed below per
Share Class). These fees are payable monthly in arrears and accrued by reference to the net assets
of the share class on a daily basis.
Class A Shares USD
Class B Shares USD
Class C Shares USD
Class D Shares USD
Analytics
International Sanlam Global
Flexible Fund* Balanced Fund*
1.50%
1.50%
0.85%
N/A
0.75%
N/A
0.65%
N/A
Sanlam Global
Best Ideas
Feeder Fund*
1.50%
0.85%
0.75%
N/A
Sanlam Global
Equity Fund*
1.50%
0.85%
0.75%
N/A
Class A Shares USD
Class B Shares USD
Class C Shares USD
Sanlam Euro Sanlam Sterling
Liquidity Fund* Liquidity Fund*
0.30%
0.30%
0.40%
0.40%
0.20%
0.20%
Sanlam Global
Liquidity Fund*
0.30%
0.65%
0.25%
Sanlam US
Dollar Liquidity
Fund*
0.30%
0.40%
0.20%
Class A Shares USD
Class B Shares USD
Class B Shares EUR
Class B Shares GBP
Class C Shares USD
Class D Shares USD
Class G Shares USD
NFB Global
Balanced Fund
of Funds*
0.80%
0.30%
N/A
N/A
0.90%
N/A
N/A
Sanlam BIFM
World Equity
Fund
0.15%
0.15%
N/A
N/A
0.15%
0.15%
N/A
Sanlam BIFM
Global Fixed
Income Fund
0.15%
0.15%
N/A
N/A
0.15%
0.15%
0.15%
Mpile Global
Equity Fund*
1.50%
1.00%
N/A
N/A
No Fee
N/A
N/A
Class A Shares USD
Class B Shares USD
Brackenham
Global
Balanced Fund
0.15%
0.15%
APS Global
Flexible Fund
of Funds
0.27%
0.27%
Counterpoint
Global Equity
Fund*
1.50%
1.25%
*For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where
applicable, the fees of the Investment Allocation Manager and Investment Advisors also.
158
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12
Related party transactions and significant agreements (continued)
Significant Agreements (continued)
Manager (continued)
AIFM fees earned by the Manager during the year and outstanding accrued fees as at 31 December
2015 and 31 December 2014 are disclosed as part of the summary of AIFM and investment
management fees on pages 162 to 166.
Administrator
SAMI, as the Administrator, is a related party of the Company. In its role as the Administrator SAMI is
entitled to receive out of the assets of each Fund an annual fee ranging from 0.025% to 0.03% of the
net assets of the Fund, plus an annual fee up to a maximum of USD 15,000 per annum. In addition,
the Administrator is entitled to receive its reasonable costs and expenses incurred in the performance
of its duties as Administrator of the Company. These fees shall accrue and be calculated on each
dealing day and shall be payable monthly in arrears. The administration fees earned by the
Administrator during the year and outstanding accrued administration fees at 31 December 2015 are
presented in the Statement of Comprehensive Income and Statement of Financial Position
respectively.
Investment Managers and Investment Allocation Manager
The Investment Managers are appointed by the Manager. For certain Funds, as noted on the previous
page, the Manager, as AIFM, will pay out of its fees, the fees of the Investment Managers, Investment
Allocation Manager and Investment Advisors (as applicable) appointed to those Funds.
For the remaining Funds of the Company, the fees of the appointed Investment Managers, Investment
Allocation Manager and Investment Advisors (as applicable) are paid directly by the Fund. The table
below sets out the rates for the annual Investment Management fees paid directly by these Funds to
the Investment Managers (in respect of each share class of the relevant Fund). These fees are
payable monthly in arrears and accrued by reference to the net assets of the relevant share class on
a daily basis:
Class A Shares USD
Class B Shares USD
Class C Shares USD
Class D Shares USD
Class G Shares USD
Sanlam
BIFM World
Equity Fund
1.00%
0.80%
1.10%
No Fee
N/A
Sanlam BIFM
Global Fixed
Income Fund
1.50%
1.00%
0.49%
No Fee
0.80%
Brackenham
Global
Balanced Fund
1.50%
0.00%
N/A
N/A
N/A
APS Global
Flexible Fund
of Funds
0.60%
0.42%
N/A
N/A
N/A
Fees paid directly to the appointed Investment Managers, Investment Allocation Manager and
Investment Advisors (as applicable) by these Funds during the year and outstanding accrued fees as
at 31 December 2015 and 31 December 2014 are disclosed as part of the summary of AIFM and
investment management fees on pages 162 to 166.
Two of the appointed Investment Managers, Sanlam Investment Management (Pty) Limited and
Sanlam FOUR Investments UK Limited, are related parties to the Company and the Manager. Sanlam
FOUR Investments UK Limited is also the appointed Investment Allocation Manager for a number of
the Funds.
159
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12
Related party transactions and significant agreements (continued)
Significant Agreements (continued)
Depositary
Brown Brothers Harriman Trustee Services (Ireland) Limited is the appointed Depositary to the
Funds. The Depositary is not a related party to the Company.
The Depositary is entitled to receive out of the assets of the Fund an annual trustee fee which will not
exceed 0.015% of the net assets of the Fund (plus VAT, if any) together with reasonable costs and
expenses incurred by the Depositary in the performance of its duties as Depositary of the Fund.
These fees are accrued and calculated on each dealing day and are payable monthly in arrears. The
Depositary is also entitled to be reimbursed out of the assets of the Fund all agreed safekeeping fees,
expenses and transaction charges (which are charged at normal commercial rates).
Stock lending
Brown Brothers Harriman & Co. is the appointed Stock Lending Agent to the Company. The Stock
Lending Agent receives remuneration for services provided as part of the Company’s stock lending
arrangements, the terms of which are set out in the Stock Lending Agreement between the Company
and the Stock Lending Agent. The Stock Lending Agent is not a related party to the Company.
As a party to the stock lending arrangements, SAMI is also entitled to remuneration for services
provided. For the year ended 31 December 2015, SAMI received USD 1,123 (2014: USD 7,645) with
respect to the stock lending activity of the Analytics International Flexible Fund.
Further details on the Company’s stock lending activity are disclosed in note 17.
Registrar and Transfer Agent
Brown Brothers Harriman Fund Administration Services (Ireland) Limited is the appointed Registrar
and Transfer Agent to the Company. Transfer agency fees are charged at normal commercial rates.
The Registrar and Transfer Agent is not a related party of the Company.
160
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
Significant shareholders at year end
Shareholders
First Rand Bank Ltd ITF Analytics
Sanlam Life Insurance Ltd*
Sanlam Life Insurance Ltd*
Sanlam Life Insurance Ltd*
Sanlam Life Insurance Ltd*
Sanlam Life Insurance (Jersey) Ltd*
Sanlam Life Insurance Ltd*
Sanlam Life Insurance (Jersey) Ltd*
Standard Bank of SA Ltd**
Agulhas Nominees (Pty) Ltd for SPI
Sanlam Life Insurance Ltd*
Agri-VIE Fund PCC Company
Sanlam Life Insurance (Jersey) Ltd*
Fundsettle EOC Nominees Ltd
Somers Dublin Ltd
Botswana Insurance Fund Management*
Botswana Insurance Fund Management*
Konkola Copper Mine Pension Trust
Standard Chartered Bank Zambia Plc
Mpile Offshore Equity Fund**
SCZSS Nominees Ltd - Barclays Bank Staff
Stanbic Nominees
SBSA ITF Brackenham SCI Managed Fund**
APS CI Managed Growth Fund of Funds
APS CI Moderate Fund of Funds
APS CI Cautious Fund of Funds
SBSA ITF Counterpoint MET Bal Plus Fund**
SBSA ITF Counterpoint MET Cautious Fund**
SBSA ITF Counter Point Met Value Fund**
Fund
Analytics International Flexible Fund
Sanlam Global Balanced Fund
Sanlam Global Best Ideas Feeder Fund
Sanlam Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Euro Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
Sanlam US Dollar Liquidity Fund
Sanlam US Dollar Liquidity Fund
NFB Global Balanced Fund of Funds
NFB Global Balanced Fund of Funds
Sanlam BIFM World Equity
Sanlam BIFM Global Fixed Income
Mpile Global Equity Fund
Mpile Global Equity Fund
Mpile Global Equity Fund
Mpile Global Equity Fund
Mpile Global Equity Fund
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
APS Global Flexible Fund of Funds
APS Global Flexible Fund of Funds
Counterpoint Global Equity Fund
Counterpoint Global Equity Fund
Counterpoint Global Equity Fund
% held at
% held at
31 December 31 December
2015
2014
87.52%
100.00%
82.18%
84.37%
96.85%
98.07%
89.41%
90.51%
61.16%
65.11%
38.84%
34.89%
66.71%
70.15%
33.28%
29.84%
83.70%
77.35%
10.16%
58.47%
52.13%
21.05%
26.49%
16.83%
13.47%
100.00%
83.61%
16.39%
99.33%
99.81%
97.80%
99.53%
44.23%
64.34%
16.53%
11.39%
21.83%
13.70%
45.25%
38.63%
50.65%
10.72%
46.62%
28.93%
11.77%
* These investors are related parties to the Company and the Manager.
**These are investments by South African Unit Trusts. These Unit Trusts are managed by related parties to the Manager.
161
-
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
AIFM and investment management fees
A summary of AIFM and investment management fees earned during the year and outstanding accrued fees
as at 31 December 2015 are presented in the tables below and overleaf.
Analytics
International
Flexible
Fund*
USD
Fees incurred during the year ended 31 December 2015
Class A Management Fees
(634,275)
Class B Management Fees
Class C Management Fees
(634,275)
Fees accrued at 31 December 2015
Class A Management Fees
Class B Management Fees
Class C Management Fees
(48,659)
(48,659)
Sanlam
Global
Balanced
Fund*
USD
Sanlam
Global Best
Ideas Feeder
Fund*
USD
Sanlam
Global Equity
Fund*
USD
(116,613)
(25,166)
(850,577)
(992,356)
(27,449)
(877)
(822,222)
(850,548)
(25,011)
(44,524)
(9,768,383)
(9,837,918)
(8,815)
(2,492)
(65,401)
(76,708)
(1,826)
(71)
(37,505)
(39,402)
(1,282)
(3,358)
(745,475)
(750,115)
Sanlam
Global
Liquidity
Fund*
USD
Sanlam
USD Dollar
Liquidity
Fund*
USD
(28,452)
(1,228)
(29,680)
(584)
(11,594)
(12,178)
(2,405)
(2,405)
(910)
(910)
Sanlam Euro Sanlam Sterling
Liquidity
Liquidity
Fund*
Fund*
EUR
GBP
Fees incurred during the year ended 31 December 2015
Class A Management Fees
Class B Management Fees
Class C Management Fees
(9,975)
(3,088)
(9,975)
(3,088)
Fees accrued at 31 December 2015
Class A Management Fees
Class B Management Fees
Class C Management Fees
(790)
(790)
(248)
(248)
*For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable,
the fees of the Investment Allocation Manager and Investment Advisors also.
162
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
AIFM and investment management fees (continued)
Sanlam
International
Verso Global
Multi-Asset I
Flexible
Fund*
Fund*
USD
USD
Fees incurred during the year ended 31 December 2015
Class A Management Fees
(93)
(165)
Class B Management Fees
Class C Management Fees
Class I Management Fees
(95,992)
(93)
(96,157)
Fees accrued at 31 December 2015
Class A Management Fees
Class B Management Fees
Class C Management Fees
Class I Management Fees
-
-
NFB Global
Balanced
Fund Of
Funds*
USD
Sanlam BIFM
Emerging
Markets
Equity Fund**
USD
(61,887)
(35,312)
(3,149)
(100,348)
(245)
(310,566)
(310,811)
(7,334)
(1,580)
(8,914)
-
Sanlam BIFM
Sanlam BIFM
Sanlam BIFM
South Africa
World Equity
Global Fixed Inflation Linked
Fund** Income Fund**
Bond Fund**
USD
USD
USD
Fees incurred during the year ended 31 December 2015
Class A Management Fees
(3,354,701)
(808,429)
Class B Management Fees
(632,513)
(9,717)
Class B ZAR Management Fees
(75,857)
Class C Management Fees
(9,116)
(3,987,214)
(827,262)
(75,857)
Fees accrued at 31 December 2015
Class A Management Fees
Class B Management Fees
Class B ZAR Management Fees
(227,109)
(1,214)
(228,323)
(38,781)
(1,237)
(40,018)
(1,088)
(1,088)
Mpile Global
Equity Fund*
USD
-
-
*For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable,
the fees of the Investment Allocation Manager and Investment Advisors also.
**For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as
applicable) were paid directly by the Fund.
163
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
AIFM and investment management fees (continued)
Brackenham
Global
Balanced
Fund**
USD
Fees incurred during the year ended 31 December 2015
Class A Management Fees
(51,311)
Class B Management Fees
(7,395)
(58,706)
Fees accrued at 31 December 2015
Class A Management Fees
Class B Management Fees
(12,965)
(1,000)
(13,965)
APS Global
Flexible Fund
of Funds**
USD
Counterpoint
Global Equity
Fund*
USD
(160,810)
(160,810)
(84,451)
(84,451)
(22,121)
(22,121)
(14,646)
(14,646)
A summary of AIFM and investment management fees earned during the year and outstanding accrued fees
as at 31 December 2014 are presented in the tables below and overleaf.
Analytics
International
Flexible
Fund*
USD
Fees incurred during the year ended 31 December 2014
Class A Management Fees
(609,142)
Class B Management Fees
Class C Management Fees
(609,142)
Fees accrued at 31 December 2014
Class A Management Fees
Class B Management Fees
Class C Management Fees
(53,638)
(53,638)
Sanlam
Global
Balanced
Fund*
USD
Sanlam
Global Best
Ideas Feeder
Fund*
USD
Sanlam Global
Equity
Fund*
USD
(118,735)
(5,872)
(947,435)
(1,072,042)
(45,934)
(8,986)
(945,674)
(1,000,594)
(33,495)
(46,393)
(10,540,623)
(10,620,511)
(10,832)
(1,443)
(77,470)
(89,745)
(2,885)
(76)
(79,328)
(82,289)
(4,514)
(3,931)
(862,992)
(871,437)
*For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable,
the fees of the Investment Allocation Manager and Investment Advisors also.
**For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as
applicable) were paid directly by the Fund.
164
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
AIFM and investment management fees (continued)
Sanlam Euro Sanlam Sterling
Liquidity
Liquidity
Fund*
Fund*
EUR
GBP
Fees incurred during the year ended 31 December 2014
Class A Management Fees
Class B Management Fees
Class C Management Fees
(10,867)
(3,435)
(10,867)
(3,435)
Fees accrued at 31 December 2014
Class A Management Fees
Class B Management Fees
Class C Management Fees
(883)
(883)
(279)
(279)
Sanlam
International
Verso Global
Multi-Asset I
Flexible
Fund*
Fund*
USD
USD
Fees incurred during the year ended 31 December 2014
Class A Management Fees
(1,201)
(2,824)
Class A (GBP) Management Fees
(2,938)
Class B Management Fees
Class B (GBP) Management Fees
(267)
Class C Management Fees
Class I Management Fees
(605,708)
(4,406)
(608,532)
Fees accrued at 31 December 2014
Class A Management Fees
Class B Management Fees
Class C Management Fees
Class I Management Fees
(93)
(93)
(251)
(45,845)
(46,096)
Sanlam
Global
Liquidity
Fund*
USD
Sanlam
USD Dollar
Liquidity
Fund*
USD
(32,389)
(33,494)
(65,883)
(108)
(13,213)
(13,321)
(2,501)
(759)
(3,260)
(100)
(1,062)
(1,162)
NFB Global
Balanced
Fund Of
Funds*
USD
Sanlam BIFM
Emerging
Markets
Equity Fund**
USD
(834)
(81,052)
(12,278)
(94,164)
(8,723)
(1,732,874)
(1,741,597)
(302)
(4,157)
(3,595)
(8,054)
(170)
(132,344)
(132,514)
*For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable,
the fees of the Investment Allocation Manager and Investment Advisors also.
**For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as
applicable) were paid directly by the Fund.
165
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
AIFM and investment management fees (continued)
Sanlam BIFM
Sanlam BIFM
World Equity
Global Fixed
Fund** Income Fund**
USD
USD
Fees incurred during the year ended 31 December 2014
Class A Management Fees
(4,603,928)
(1,861,678)
Class B Management Fees
(4,268,749)
(2,804)
Class B ZAR Management Fees
Class C Management Fees
(13,313)
(8,872,677)
(1,877,795)
Fees accrued at 31 December 2014
Class A Management Fees
Class B Management Fees
Class B ZAR Management Fees
(278,177)
(294,210)
(572,387)
(159,909)
(159,909)
Sanlam BIFM
South Africa
Inflation Linked
Bond Fund**
USD
Mpile Global
Equity Fund*
USD
(114,943)
(114,943)
-
(26,966)
(26,966)
-
*For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable,
the fees of the Investment Allocation Manager and Investment Advisors also.
**For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as
applicable) were paid directly by the Fund.
The Manager may rebate a portion of its fees to certain of the Funds of the Company where those Funds are
themselves invested into other funds managed by the Manager or enter into special fee arrangements and/or
rebate agreements, in its sole discretion, with certain shareholders who may be affiliates of the Manager,
including Botswana Insurance Fund Management, Sanlam Private Investments (Pty) Limited, Sanlam Life
Insurance Limited, Sanlam Life & Pensions (UK) Limited and Sanlam Collective Investments Limited. With the
exception of NFB Global Balanced Fund of Funds and APS Global Flexible Fund of Funds, rebate income
earned by each of the Funds of the Company, as disclosed on the Statement of Comprehensive Income, was
paid from the profits of the Manager.
Related Transactions
Sanlam Global Best Ideas Feeder Fund and Sanlam Global Balanced Fund operate as feeder funds of the
Sanlam Universal Funds Plc. Sanlam Global Equity Fund also operates as a feeder fund to the Sanlam
Universal Funds Plc, but the investment policy of the Fund also allows it to invest in Funds that are not subfunds of the Sanlam Universal Funds Plc. The Fund’s investments are detailed in the portfolio of investments
on pages 84 to 112. All of the Fund’s underlying funds are managed by related parties within the Sanlam
Group.
The transactions overleaf occurred within Sanlam Limited (the “Group”) during the year ended 31 December
2015:
166
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
Related Transactions (continued)
Sanlam Global
Balanced Fund
Year Ended
31 December
2015
USD
Purchases:
Sanlam World Equity Fund
Sanlam Centre Select Global Equity Fund
Sanlam FOUR Stable Global Equity Fund
8IP Australian Small Companies Fund
Total purchases
11,500,000
41,133,322
52,633,322
Sanlam BIFM
Global Fixed
Income Fund
Year Ended
31 December
2015
USD
Purchases:
Sanlam Global Bond Fund
Sanlam World Equity Tracker Fund
Total purchases
80,470
80,470
Sanlam
Global
Balanced
Fund
Year Ended
31 December
2015
USD
Sales:
Sanlam World Equity Fund
Sanlam Equity Allocation
Sanlam Global Best Ideas Fund
Sanlam Global Bond Fund
SIIP India Opportunities Fund
Total sales
18,361,811
5,540,594
4,100,000
28,002,405
167
Sanlam Global
Sanlam BIFM
Equity Fund World Equity Fund
Year Ended
Year Ended
31 December
31 December
2015
2015
USD
USD
91,640,596
1,725,363
93,365,959
Mpile Global
Equity Fund
Year Ended
31 December
2015
USD
113,804
113,804
Counterpoint
Global Equity
Fund
Year Ended
31 December
2015
USD
6,123,086
6,123,086
2,500,000
2,500,000
Sanlam
Global Best
Ideas
Feeder Fund
Year Ended
31 December
2015
USD
Sanlam
Global
Equity
Fund
Year Ended
31 December
2015
USD
71,528,447
71,528,447
315,495,223
550,000
316,045,223
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
Related Transactions (continued)
Sanlam BIFM
Global Fixed
Income
Fund
Year Ended
31 December
2015
USD
Sanlam
BIFM World
Equity Fund
Year Ended
31 December
2015
USD
Sales:
Sanlam World Equity Fund
Sanlam World Equity Tracker Fund
Sanlam Global Bond Fund
Total sales
100,200,000
100,200,000
83,538,849
83,538,849
Counterpoint
Global Equity
Fund
Year Ended
31 December
2015
USD
2,400,151
2,400,151
The following transactions occurred within Sanlam Limited (the “Group”) during the year ended 31
December 2014:
Sanlam
Global
Balanced
Fund
Year Ended
31 December
2014
USD
Purchases:
Sanlam World Equity Fund
Sanlam Emerging Market Equity Tracker Fund
Sanlam North America Equity Tracker Fund
Sanlam Global Bond Fund
Sanlam FOUR US Dividend Income Fund
SIIP India Opportunities Fund
Total purchases
Sanlam
Global
Equity Fund
Year Ended
31 December
2014
USD
Sanlam
BIFM World
Equity
Fund
Year Ended
31 December
2014
USD
26,200,000
947,073,834
13,262,404
87,042,241
45,763,826
25,000,000
11,997,702
71,963,826 1,084,376,181
152,476
152,476
Sanlam BIFM
Global Fixed
Income Fund
Year Ended
31 December
2014
USD
Purchases:
Sanlam Global Bond Fund
Sanlam World Equity Tracker Fund
Total purchases
29,309,700
29,309,700
168
Mpile Global
Equity Fund
Year Ended
31 December
2014
USD
471,000
471,000
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
Related Transactions (continued)
Sanlam Global
Balanced
Fund
Year Ended
31 December
2014
USD
Sanlam Global
Best Ideas
Feeder Fund
Year Ended
31 December
2014
USD
Sanlam
Global Equity
Fund
Year Ended
31 December
2014
USD
45,071,163
13,500,012
22,248,505
5,600,000
20,045,911
106,465,591
27,167,876
27,167,876
124,900,012
13,744,647
97,885,905
236,530,564
Sales:
Sanlam World Equity Fund
Sanlam Emerging Market Equity Tracker Fund
Sanlam North America Equity Tracker Fund
Sanlam Global Property Fund
Sanlam Global Bond Fund
Sanlam Global Best Ideas Fund
Sanlam Strategic Cash Fund
Total sales
Sales:
Sanlam World Equity Fund
Sanlam World Equity Tracker Fund
Sanlam Global Property Fund
Sanlam Global Bond Fund
Sanlam Global Best Ideas Fund
Sanlam Strategic Cash Fund
Total sales
Sanlam
International
Multi-Asset
I Fund
Year Ended
31 December
2014
USD
Sanlam
BIFM World
Equity Fund
Year Ended
31 December
2014
USD
Sanlam BIFM
Emerging
Markets
Equity Fund
Year Ended
31 December
2014
USD
105,000
134,900
85,900
67,200
23,100
416,100
14,551,000
14,551,000
8,940,984
8,940,984
Sanlam
BIFM Global
Fixed Income
Fund
Year Ended
31 December
2014
USD
Sales:
Sanlam World Equity Tracker Fund
Total sales
23,000,000
23,000,000
169
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
12 Related party transactions and significant agreements (continued)
Related Transactions (continued)
In-specie transfers
The following in-specie transfers occurred during the year ended 31 December 2015:
Redemptions from BIFM World Equity Fund include in specie transfers to Botswana Insurance Fund
Management Limited during the year of assets with a fair value at the date of transfer of USD
435,066,173.
Redemptions from BIFM South Africa Inflation Linked Bond Fund include in specie transfers to
Botswana Insurance Fund Management Limited during the year of assets with a fair value at the date of
transfer of ZAR 947,834,510. The USD equivalent of this ZAR amount at the date of transfer was USD
81,063,460.
Subscriptions in Brackenham Global Balanced Fund include in specie transfers from Brackenham SCI
Managed Fund during the year in exchange for assets with a fair value at the date of transfer of USD
7,261,745.
During the year, Sanlam Global Balanced Fund redeemed positions it held in Sanlam World Equity
Fund via transfer of assets from Sanlam World Equity Fund. These assets had a fair value at the date of
transfer of USD 8,661,811.
During the year, Sanlam Global Balanced Fund redeemed positions it held in Miton American Fund via
a transfer of assets from Miton American Fund. These assets had a fair value at the date of transfer of
USD 16,638,911.
During the year, Sanlam Global Balanced Fund redeemed positions it held in Miton Global Equity Fund
via a transfer of assets from Miton Global Equity Fund. These assets had a fair value at the date of
transfer of USD 24,819,046.
The following in specie transfers occurred during the year ended 31 December 2014:
Subscriptions in Mpile Global Equity Fund include in specie transfers from Africa Life during the year, in
exchange for assets with a fair value at date of transfer of USD 6,837,717.
Cross Investments
No Fund held any investments in other Funds within the Company at 31 December 2015 or 31
December 2014.
13 Efficient portfolio management
The Funds may enter into forward foreign currency contracts for efficient portfolio management.
Forward foreign currency exchange contracts are used to hedge against anticipated future changes in
exchange rates which otherwise might either adversely affect the value of the Funds’ portfolio securities
or adversely affect the price of securities which the Funds intend to purchase at a later date. The Funds
may use forward currency contracts to alter the currency characteristics of the underlying assets of the
Funds.
The Funds may also enter into futures contracts for efficient portfolio management. The primary
purposes for which the Funds use futures contracts are cash equalisation, hedging and return
enhancement. The purpose of cash equalisation is to expose uninvested cash within the Funds to
equity market-like returns and ensure that the Funds’ liquid assets are utilised as though invested in the
markets. Hedging is used by the Funds to limit or control risks, such as adverse movements in
exchange rates and interest returns.
170
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
13 Efficient portfolio management (continued)
Return enhancement can be accomplished through the use of futures in the Funds. By purchasing
certain instruments, the Funds may more effectively achieve the desired portfolio characteristics that
assist the Funds in meeting their investment objectives.
14 Soft commissions
Some of the Investment Managers have soft commission agreements in place in respect of the investments
managed by them.
15 Portfolio changes
A list of portfolio changes during the year is available, free of charge, from the Administrator.
16 Underlying collective investment schemes
The Funds of the Company invest in collective investment schemes. These underlying collective schemes
may be subject to management and performance fees. Those Funds of the Company which operate as
feeder funds to the sub-funds of Sanlam Universal Funds plc invest in non-fee paying classes of the relevant
sub-funds. In addition, Sanlam BIFM World Equity Fund, Sanlam BIFM Global Fixed Income Fund and Mpile
Global Equity Fund invest in fee paying classes of sub-funds of Sanlam Universal Funds Plc.
The table below and overleaf summarises the collective investment schemes in which the Funds of the
Company hold investments at 31 December 2015 and details the investment management fees and
incentive fees incurred relating to these collective investment schemes:
Year ended 31 December 2015
Collective Investment
Fund Name
Scheme Name
8IP Australian Small
Sanlam Global Equity Fund
Companies fund
Sanlam BIFM World Equity
Aberdeen Global - World
Fund
Equity Fund
BlackRock Global Funds Mpile Global Equity Fund
Global Equity Income Fund
BlackRock Institutional
Cash Series-Sterling
Sanlam Global Liquidity Fund
Liquidity Fund (UCITS)
BlackRock Institutional Euro
Sanlam Global Liquidity Fund
Fund (UCITS)
APS Global Flexible Fund of
Coronation Global Managed
Funds
Fund
Franklin Templeton Global
Mpile Global Equity Fund
Equity Income Fund
Sanlam Global Liquidity Fund
Institutional Cash Series Plc
Sanlam US Dollar Liquidity Fund Institutional Cash Series Plc
Institutional Euro Liquidity
Sanlam Global Liquidity Fund
Fund
1
% of net assets
2
% of the gains in net assets above the benchmark
171
Collective
Investment
Scheme
Type
Australian
RMIC
Luxembourg
UCITS
Luxembourg
UCITS
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
1.29%
20.00%
-
-
0.75%
-
Irish UCITS
0.10%
-
Irish UCITS
0.10%
-
Irish UCITS
Luxembourg
UCITS
Irish UCITS
Irish UCITS
0.85%
20.00%
1.00%
0.10%
0.10%
-
Irish UCITS
0.10%
-
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
16 Underlying collective investment schemes (continued)
Year ended 31 December 2015
(continued)
Fund Name
Sanlam Euro Liquidity Fund
Sanlam Global Liquidity Fund
Sanlan Sterling Liquidity Fund
APS Global Flexible Fund of
Funds
APS Global Flexible Fund of
Funds
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
Brackenham Global Balanced
Fund
Brackenham Global Balanced
Fund
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
APS Global Flexible Fund of
Funds
APS Global Flexible Fund of
Funds
Brackenham Global Balanced
Fund
Brackenham Global Balanced
Fund
NFB Global Balanced Fund of
Funds
Sanlam BIFM Global Fixed
Income Fund
Collective
Investment
Scheme
Type
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
Irish UCITS
0.10%
-
Irish UCITS
0.10%
-
Irish UCITS
Luxembourg
UCITS
Luxembourg
UCITS
0.10%
-
0.75%
-
0.75%
-
ETF
0.59%
-
ETF
0.46%
-
ETF
0.25%
-
ETF
0.62%
-
ETF
0.62%
-
ETF
0.50%
-
ETF
0.20%
-
Irish UCITS
1.00%
-
Irish UCITS
Bermudan
Orbis Optimal SA Fund Ltd
OEIC
Orbis SICAV - Japan Equity Luxembourg
Fund
UCITS
PIMCO Funds Global
Investors Series Plc Unconstrained Bond Fund
Irish UCITS
PIMCO Funds Global
Investors Series Plc - Global
High Yield Bond Fund
Irish UCITS
1.00%
-
1.00%
20.00%
0.50%
1.74%
1.25%
-
0.55%
-
Collective Investment
Scheme Name
Institutional Euro Liquidity
Fund
Institutional Sterling
Liquidity Fund
Institutional Sterling
Liquidity Fund
Investec Global Multi Asset
Income Fund
Investec Global Strategic
Managed Fund
iShares Developed Markets
Property Yield Fund UCITS
ETF
iShares DJ Stoxx Global
Select Dividend 100
iShares Global Inflation
Linked Government Bond
UCITS ETF
iShares MSCI South Korea
Index Fund
iShares MSCI Taiwan Index
Fund
iShares MSCI World UCITS
ETF
iShares Core MSCI World
UCITS ETF
Nedgroup Global Equity
Fund
Nedgroup Global Flexible
Fund
1
% of net assets
2
% of the gains in net assets above the benchmark
172
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
16 Underlying collective investment schemes (continued)
Year ended 31 December 2015
(continued)
Fund Name
Sanlam Global Equity Fund
Sanlam Global Balanced Fund
Sanlam Global Equity Fund
Sanlam Global Balanced Fund
Sanlam Global Balanced Fund
Sanlam Global Equity Fund
Sanlam Global Equity Fund
Sanlam Global Best Ideas
Feeder Fund
Sanlam BIFM Global Fixed
Income Fund
Sanlam Global Balanced Fund
Sanlam BIFM World Equity
Fund
Sanlam Global Balanced Fund
Sanlam Global Equity Fund
Mpile Global Equity Fund
Sanlam Global Balanced Fund
APS Global Flexible Fund of
Funds
Sanlam Global Equity Fund
Collective Investment
Scheme Name
Sanlam FOUR Active
European Ex-UK Equity
Fund Class B EUR
Sanlam FOUR Global
Equity Fund Class B USD
Sanlam FOUR Global
Equity Fund Class B USD
Sanlam FOUR Multi
Strategy Fund Class B USD
Sanlam FOUR Stable
Global Equity Class B USD
Sanlam FOUR Stable
Global Equity Class B USD
Sanlam FOUR US Dividend
Income Fund Class B USD
Sanlam Global Best Ideas
Universal Fund Class E
Sanlam Global Bond Fund
Class C
Sanlam Global Bond Fund
Class E
Sanlam World Equity Fund
Class C
Sanlam World Equity Fund
Class E
Sanlam World Equity Fund
Class E
Sanlam World Equity
Tracker Fund Class I
Sanlam Centre Global
Select Equity Fund
Sarasin IE Real Estate
Equity Global GBP
SIIP India Opportunities
Fund Class E
1
% of net assets
2
% of the gains in net assets above the benchmark
173
Collective
Investment
Scheme
Type
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
0.60%
-
Irish UCITS
-
-
Irish UCITS
0.75%
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
0.30%
-
Irish UCITS
-
-
Irish UCITS
1.50%
-
Irish UCITS
-
-
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
16 Underlying collective investment schemes (continued)
The table below and overleaf summarises the collective investment schemes in which the Funds of the
Company hold investments at 31 December 2014 and details the investment management fees and
incentive fees incurred relating to these collective investment schemes:
Year ended 31 December 2014
Fund Name
Sanlam Global Equity Fund
Sanlam BIFM World Equity Fund
Mpile Global Equity Fund
Mpile Global Equity Fund
Sanlam Euro Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam Sterling Liquidity Fund
Sanlam Global Liquidity Fund
Sanlam US Dollar Liquidity Fund
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
NFB Global Balanced Fund of
Funds
Sanlam Global Balanced Fund
Sanlam Global Balanced Fund
Collective Investment
Scheme Name
8IP Australian Small
Companies Fund
Aberdeen Global - World
Equity Fund
BlackRock Global Funds Global Equity Income
Fund
Franklin Templeton
Global Equity Income
Fund
Institutional Euro Liquidity
Fund
Institutional Euro Liquidity
Fund
BlackRock Institutional
Sterling Liquidity Fund
Institutional Sterling
Liquidity Fund
Institutional Cash Series
Plc
Institutional Cash Series
Plc
iShares Developed
Markets Property Yield
Fund UCITS ETF
iShares DJ Stoxx Global
Select Dividend 100
iShares Global Inflation
Linked Government Bond
UCITS ETF
iShares MSCI World
UCITS ETF
iShares Core MSCI World
UCITS ETF
Miton American Fund
Miton Global Equity Fund
1
% of net assets
2
% of the gains in net assets above the benchmark
174
Collective
Investment
Scheme
Type
Australian
RMIC
Luxembourg
UCITS
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
1.29%
-
-
-
0.75%
-
1.00%
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
ETF
0.59%
-
ETF
0.45%
-
ETF
-
-
ETF
0.50%
-
ETF
UK Unit Trust
UK Unit Trust
0.20%
0.75%
0.75%
-
Luxembourg
UCITS
Luxembourg
UCITS
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
16 Underlying collective investment schemes (continued)
Year ended 31 December 2014
(continued)
Fund Name
Sanlam BIFM Global Fixed
Income Fund
NFB Global Balanced Fund of
Funds
Sanlam Global Balanced Fund
Sanlam Global Equity Fund
Sanlam Global Balanced Fund
Sanlam Global Balanced Growth
Fund
Sanlam International Multi-Asset I
Fund
Sanlam International Multi-Asset I
Fund
Sanlam Global Equity Fund
Sanlam Global Best Ideas Feeder
Fund
Sanlam BIFM Global Fixed
Income Fund
Sanlam Global Balanced Fund
Sanlam International Multi-Asset I
Fund
Sanlam International Multi-Asset I
Fund
Sanlam International Multi-Asset I
Fund
Sanlam BIFM World Equity Fund
Sanlam Global Balanced Fund
Collective Investment
Scheme Name
PIMCO Funds Global
Investors Series Plc Global High Yield Bond
Fund
PIMCO Funds Global
Investors Series Plc Unconstrained Bond Fund
Sanlam Equity Allocation
Fund Class E
Sanlam FOUR Active
European (ex UK) Equity
Fund
Sanlam FOUR Active
Global Income & Growth
Fund
Sanlam FOUR MultiStrategy Fund
Sanlam FOUR MultiStrategy Fund
Sanlam FOUR Stable
Global Equity Fund
Sanlam FOUR US
Dividend Income Fund
Class B (USD)
Sanlam Global Best Ideas
Universal Fund Class E
Sanlam Global Bond Fund
Class C
Sanlam Global Bond Fund
Class E
Sanlam Global Bond Fund
Class E
Sanlam Global Property
Fund Class E
Sanlam Strategic Cash
Fund Class E
Sanlam World Equity Fund
Class C
Sanlam World Equity Fund
Class E
1
% of net assets
2
% of the gains in net assets above the benchmark
175
Collective
Investment
Scheme Type
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
Irish UCITS
0.55%
-
Irish UCITS
1.25%
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
0.60%
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
0.75%
-
Irish UCITS
-
-
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
16 Underlying collective investment schemes (continued)
Year ended 31 December 2014
(continued)
Collective Investment
Fund Name
Scheme Name
Sanlam World Equity Fund
Sanlam Global Equity Fund
Class E
Sanlam International Multi-Asset I Sanlam World Equity Fund
Fund
Class E
Sanlam International Multi-Asset I Sanlam World Equity
Fund
Tracker Fund Class E
Sanlam World Equity
Mpile Global Equity Fund
Tracker Fund Class I
Sanlam Global Equity Fund
SIIP India Opportunities
Fund Class E
Sanlam BIFM Emerging Markets
Equity Fund
SIM Property Fund
1
% of net assets
2
% of the gains in net assets above the benchmark
Collective
Investment
Scheme Type
Investment
Management
1
Fees (%)
Incentive
2
Fees (%)
Irish UCITS
-
-
Irish UCITS
-
-
Irish UCITS
0.30%
-
Irish UCITS
0.30%
-
-
-
1.71%
-
Irish UCITS
South African
Mutual Fund
Some of the fees detailed in the tables above and on the preceding pages are subject to rebate agreements.
Any rebates recovered by the Funds are invested in the Funds.
17
Stock lending activities
Stock lending activities are conducted through Brown Brothers Harriman & Co pursuant to the Securities
Lending Agency Agreement dated 29 August 2014. In this arrangement, the Company transfers securities to
a counterparty, in return for which it is agreed that securities of the same kind and amount should be
transferred back to the Company at a later date. The arrangement has the substance of a loan of the
Company’s securities in return for collateral. The collateral held is in a form required by the Central Bank of
Ireland.
Aggregate income arising from stock lending activities consists of fees charged to a counterparty, where the
counterparty has provided collateral other than cash, plus net realised income derived from investments of
cash collateral less any rebate payable to a counterparty on cash collateral less any commissions or similar
transactions costs. Pursuant to the Securities Lending Agency Agreement, income from stock lending
activities is split in the ratio of 70:30 in favour of the Company, with Brown Brothers Harriman & Co. and
SAMI receiving 30% as remuneration for their services.
The Company received income as follows under the terms of those agreements for the year ended 31
December 2015:
Analytics International Flexible Fund
Year ended
31/12/2015
USD
Income
3,620
176
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
17
Stock lending activities (continued)
A summary of collateral related to stock lending held as at 31 December 2015 is as follows:
Analytics International Flexible Fund
Year ended
31/12/2015
USD
Aggregate value of securities on loan at year end
Aggregate value of collateral held in respect of the loans
120,079
126,083
Collateral %
105%
The Company received income as follows under the terms of those agreements for the year ended 31
December 2014:
Analytics International Flexible Fund
Year ended
31/12/2014
USD
Income
12,497
A summary of collateral related to stock lending held as at 31 December 2014 is as follows:
Analytics International Flexible Fund
Year ended
31/12/2014
USD
Aggregate value of securities on loan at year end
Aggregate value of collateral held in respect of the loans
Collateral %
18
71,773
75,361
105.00%
Risk arising from Financial Instruments
The Funds of the Company maintain positions in a variety of financial instruments in accordance with
each Fund's investment objective and policies. In addition, certain of the Funds operate as feeder
funds to or invest into various underlying funds. Investments in underlying funds expose those Funds
to various types of risk that are associated with the financial investments and markets of the
underlying funds. The significant types of financial risks to which all the Funds of the Company are
exposed are market risk, price risk, liquidity risk and counterparty credit risk.
Asset allocation is determined by the Funds’ Investment Managers, who manage the allocations of
assets to achieve the investment objectives. Divergence from target asset allocations and the
composition of the portfolio is monitored by the Funds’ Investment Managers. The performances of
the Funds, together with various risk measures, are discussed by the Board of Directors and its
appointed advisors on a quarterly basis. The Manager enters into Agreements with the Investment
Managers and Investment Allocation Managers as applicable. The Agreements include details on the
parameters within which the Funds must be managed.
177
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
The Agreements include items such as maximum exposure to cash/asset classes, exposure to a
single issuer or Fund and the relevant rules for RIAIF's as set out in the AIF Rulebook of the Central
Bank. The Investment Managers are required to report to the Manager on a monthly basis that they
have managed the portfolio in accordance with the Investment Management Agreement and that no
breaches occurred during the month. If, during the course of the month, the Investment Manager does
detect a breach, they must notify the Manager immediately with the details of the breach, its cause,
the impact on the Fund and their proposed action to resolve the breach. The Manager will engage
with the Investment Manager to determine what action should be taken (this can include putting the
Fund back to the position it would have been in if the breach had not occurred). The Depositary will
also be consulted to ensure they are in agreement with the proposed remedy.
Each Investment Manager appointed by SAMI will have its own risk management policies and
procedures in place, which may differ from Investment Manager to Investment Manager, and these will
be considered by SAMI at the time of assessing the Investment Manager and in regular periodic
assessments of the Investment Manager. Varieties of methods are used to monitor market risk and
are described below.
(i) Market Risk
The potential for changes in the fair value or cash flows of the Fund’s investment is referred to as
market risk. Categories of market risk include currency risk, interest rate risk and other price risk.
The Company’s market risk strategy is driven by the Company’s underlying Funds’ investment
objectives. The AIFM has instructed the Manager to manage each of the risks in accordance with
policies and procedures in place.
(a) Currency Risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
exchange rates. Currency risks may result from exposures to changes in spot prices, forward prices
and volatilities of currency rates.
The Funds may invest in financial investments and enter into transactions denominated in currencies
other than their functional currency. The Funds are also exposed to the currency risk of the underlying
funds in which they invest. Consequently, the Funds may be exposed to risks that the exchange rate
of their functional currency, relative to other foreign currencies, may change in a manner that has an
adverse effect on the value of that portion of the Funds’ assets or liabilities denominated in currencies
other than the functional currency. The Investment Managers are allowed to invest in derivatives to
manage currency risk.
When considering the asset allocation of each Fund, the relevant Investment Manager will consider
the likely movement of foreign exchange rates in investment decisions. The tables overleaf set out the
Funds’ exposure to foreign currency risk and sensitivity analysis.
178
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Analytics International Flexible Fund
31 December
2015
USD
Australian Dollar
Canadian Dollar
Swiss Franc
Chilean Peso
Chinese Yuan
Euro
Pound Sterling
Hong Kong Dollar
Indonesian Rupiah
Japanese Yen
Mexican Peso
Norwegian Kroner
New Zealand Dollar
Swedish Krona
Total
Australian Dollar
Canadian Dollar
Chinese Yuan
Euro
Hong Kong Dollar
Japanese Yen
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Swedish Krona
Swiss Franc
Total
184,992
1,182,655
3,554,421
76,878
616,704
1,424,733
7,544,470
272,338
255,950
1,576,909
66,556
190,469
957,255
121,872
18,026,202
% movement
10.00
7.89
2.57
7.35
0.60
9.80
3.87
(0.01)
2.58
7.18
9.66
13.95
9.44
11.45
31 December
2014
USD
% movement
79,210
2,421,882
799,441
1,739,664
699,138
1,341,085
1,080,116
371,844
7,333,203
169,476
4,189,836
3.49
3.58
(0.37)
0.02
(0.01)
4.15
(0.59)
3.58
(2.57)
2.65
(0.65)
20,224,895
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
18,493
93,297
91,288
5,650
3,729
139,637
291,988
(40)
6,614
113,243
6,428
26,570
90,405
13,952
901,254
0.40
2.59
7.78
0.17
1.35
3.12
16.51
0.60
0.56
3.45
0.15
0.42
2.09
0.27
39.46
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
2,763
86,801
(2,965)
371
(94)
55,715
(6,410)
13,299
(188,286)
4,498
(27,285)
(61,593)
0.16
4.81
1.59
3.45
1.39
2.66
2.14
0.74
14.55
0.34
8.32
40.15
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
179
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam Global Balanced Fund
31 December
2015
USD
Pound Sterling
Euro
Total
Pound Sterling
Total
105,310
25
105,335
% movement
3.87
9.80
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
4,076
2
4,078
0.09
0.09
Concentration of
foreign
exchange
exposure
%
31 December
2014
USD
% movement
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
32,849,985
(2.57)
(843,452)
24.81
(843,452)
24.81
32,849,985
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
Sanlam Global Best Ideas Feeder Fund
At 31 December 2015 and 31 December 2014, Sanlam Global Best Ideas Feeder Fund did not have
an exposure to foreign currency risk arising from its investments.
180
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam Global Equity Fund
31 December
2015
USD
Australian Dollar
Euro
Pound Sterling
South African Rand
Total
Australian Dollar
Euro
Pound Sterling
South African Rand
30,810,938
12,323,106
59,586
3,060
43,196,690
% movement
10.00
9.80
3.87
8.88
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
3,079,983
1,207,779
2,306
272
4,290,340
2.65
1.06
0.01
3.72
Concentration of
foreign
exchange
exposure
%
2.16
0.88
3.04
31 December
2014
USD
% movement
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
29,362,026
12,003,468
62,975
4,106
3.49
0.02
(2.57)
6.15
1,024,387
2,562
(1,617)
252
41,432,575
1,025,584
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
Sanlam Euro Liquidity Fund
At 31 December 2015 and 31 December 2014, Sanlam Euro Liquidity Fund did not have an
exposure to foreign currency risk arising from its investments.
Sanlam Sterling Liquidity Fund
At 31 December 2015 and 31 December 2014, Sanlam Sterling Liquidity Fund did not have an
exposure to foreign currency risk arising from its investments.
181
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam Global Liquidity Fund
31 December
2015
USD
Euro
Pound Sterling
Total
3,892,517
1,409,890
5,302,407
31 December
2014
USD
Euro
Pound Sterling
Total
4,185,536
1,631,114
5,816,650
% movement
9.80
3.87
% movement
0.02
(2.57)
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
381,503
54,566
436,069
0.34
0.12
0.46
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
894
(41,880)
(40,986)
38.83
15.13
53.96
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
Sanlam US Dollar Liquidity Fund
At 31 December 2015 and 31 December 2014, Sanlam US Dollar Liquidity Fund did not have an
exposure to foreign currency risk arising from its investments.
Sanlam International Multi-Asset I Fund
Sanlam International Multi-Asset I Fund closed during 2015. The Fund’s exposure to foreign
currency risk at 31 December 2014 is set out below.
31 December
2014
USD
Euro
Pound Sterling
Total
85
3,071
3,156
% movement
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
0.02
(2.57)
(79)
0.11
3.91
4.02
(79)
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
182
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Verso Global Flexible Fund
Verso Global Flexible Fund closed during 2015. The Fund’s exposure to foreign currency risk at 31
December 2014 is set out below.
31 December
2014
USD
Australian Dollar
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Japanese Yen
Mexican Peso
Pound Sterling
Singapore Dollar
South African Rand
Swedish Krona
Swiss Franc
Total
771,951
307,551
1,690,782
10,028,785
783,063
6,874,942
270,006
4,595,300
267,079
296,340
384,489
2,239,513
28,509,801
% movement
3.49
3.58
0.02
(0.01)
4.15
2.15
(2.57)
0.62
6.15
2.65
(0.65)
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
26,932
11,023
60
2,141
(105)
285,620
5,793
(117,988)
1,650
18,219
10,206
(14,584)
228,967
1.57
0.63
3.44
20.42
1.59
14.00
0.55
9.36
0.54
0.60
0.78
4.56
58.04
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
NFB Global Balanced Fund of Funds
31 December
2015
USD
Euro
Total
13,424,261
13,424,261
31 December
2014
USD
Euro
Total
14,233,704
14,233,704
% movement
9.80
% movement
0.02
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
1,315,702
1,315,702
79.12
79.12
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
3,039
3,039
62.40
62.40
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
183
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam BIFM Emerging Markets Equity Fund
Sanlam BIFM Emerging Markets Equity Fund closed during 2015. The Fund’s exposure to foreign
currency risk at 31 December 2014 is set out below.
Australian Dollar
Brazilian Real
Chilean Peso
Euro
Hong Kong Dollar
Indian Rupee
Indonesian Rupiah
Kenyan Shilling
Mexican Peso
New Taiwan Dollar
Nigerian Naira
Philippine Peso
Pound Sterling
Qatari Riyal
Romanian New Lei
Singapore Dollar
South African Rand
South Korean Won
Swedish Krona
Swiss Franc
Thai Baht
Turkish Lira
United Arab
Emirates Dirham
Total
31 December
2014
USD
% movement
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration
of foreign
exchange
exposure
%
744,306
7,459,447
1,593,991
4,786,713
20,707,815
11,308,569
3,905,361
953,614
1,400,903
4,771,540
1,930,797
1,901,408
11,986,431
4,706,934
1,122,413
2,653,326
7,422,015
6,763,274
238,545
3,087,623
14,505,002
4,146,948
3.49
4.46
4.27
0.02
(0.01)
6.92
2.06
1.07
2.15
1.11
1.85
2.29
(2.57)
(0.06)
1.64
0.62
6.15
(1.86)
2.65
(0.65)
2.91
7.40
25,967
332,423
68,065
1,022
(2,780)
782,138
80,288
10,167
30,058
53,195
35,742
43,630
(307,762)
(3,040)
18,433
16,390
456,294
(125,554)
6,332
(20,107)
421,582
306,867
0.48
4.81
1.03
3.09
13.35
7.29
2.52
0.61
0.90
3.08
1.24
1.23
7.73
3.03
0.72
1.71
4.78
4.36
0.15
1.99
9.35
2.67
1,787,039
119,884,014
-
(24)
2,229,326
1.15
77.27
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
184
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam BIFM World Equity Fund
31 December
2015
USD
Australian Dollar
Canadian Dollar
Swiss Franc
Danish Krone
Euro
Pound Sterling
Hong Kong Dollar
Japanese Yen
South Korean Won
Norwegian Kroner
Swedish Krona
Singapore Dollar
Thai Baht
Total
857,477
2,303,407
8,443,346
353,996
42,818,754
28,241,154
11,469,857
14,546,169
3,076,379
2,705,831
511,675
1,356,328
409,947
117,094,320
31 December
2014
USD
Australian Dollar
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Japanese Yen
Norwegian Kroner
Pound Sterling
Singapore Dollar
South Korean Won
Swedish Krona
Swiss Franc
Thai Baht
Total
4,115,660
7,446,987
2,618,031
132,685,947
38,195,529
34,034,269
7,691,999
55,899,353
4,559,272
7,137,110
2,134,079
20,331,026
3,939,654
320,788,916
% movement
10.00
7.89
2.57
9.84
9.80
3.87
(0.01)
7.18
3.79
13.95
11.45
4.25
2.72
% movement
3.49
3.58
0.02
(0.01)
4.15
3.58
(2.57)
0.62
(1.86)
2.65
(0.65)
2.91
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
85,717
181,711
216,851
34,818
4,196,636
1,092,996
(1,701)
1,044,608
116,522
377,454
58,578
57,665
11,168
7,473,023
0.32
0.87
3.17
0.13
16.08
10.61
4.31
5.46
1.16
1.02
0.19
0.51
0.15
43.98
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration of
foreign
exchange
exposure
%
143,588
266,902
92
28,325
(5,127)
1,413,954
275,100
(1,435,264)
28,163
(132,494)
56,645
(132,399)
114,504
621,989
0.54
0.99
0.35
17.55
5.05
4.50
1.02
7.39
0.60
0.94
0.28
2.69
0.52
42.42
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
185
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
Sanlam BIFM Global Fixed Income Fund
At 31 December 2015 and 31 December 2014, Sanlam BIFM Global Fixed Income Fund did not have
an exposure to foreign currency risk arising from its investments.
Sanlam BIFM South Africa Inflation Linked Bond Fund
Sanlam BIFM South Africa Inflation Linked Bond Fund closed during 2015. The Fund’s exposure to
foreign currency risk at 31 December 2014 is set out below.
31 December
2014
USD
South African Rand
Total
63,791,432
63,791,432
% movement
6.15
Effect of movement
against
Net Assets and Profit*
31 December 2014
USD
Concentration
of foreign
exchange
exposure
%
4,161,565
4,161,565
100.09
100.09
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
Mpile Global Equity Fund
At 31 December 2015 and 31 December 2014, Mpile Global Equity Fund did not have an exposure to
foreign currency risk arising from its investments.
Brackenham Global Balanced Fund
31 December
2015
USD
Swiss Franc
Euro
Pound Sterling
Japanese Yen
South Korean Won
Norweigan Kroner
Singapore Dollar
Total
1,524,750
273,195
1,481,525
426,884
140,987
142,437
470,360
4,460,138
% movement
2.57
9.80
3.87
7.18
3.79
13.95
4.25
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
39,160
26,776
57,338
30,656
5,340
19,869
19,998
199,137
8.79
1.58
8.54
2.46
0.81
0.82
2.71
25.71
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
186
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(a) Currency Risk (continued)
APS Global Flexible Fund of Funds
At 31 December 2015, APS Global Flexible Fund of Funds did not have an exposure to foreign
currency risk arising from its investments.
Counterpoint Global Equity Fund
31 December
2015
USD
Pound Sterling
Total
360,703
360,703
% movement
Effect of movement
against
Net Assets and Profit*
31 December 2015
USD
Concentration
of foreign
exchange
exposure
%
13,960
13,960
2.55
2.55
3.87
*The estimated movement is based on the average of the last two years exchange rate movements which management
considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly.
(b) Interest rate risk
Interest rate risks may result from exposures to changes in the level, slope and curvature of the yield
curve, the volatility of interest rates, mortgage prepayment speeds and credit spreads. Interest rates
are determined by factors of supply and demand in the international money markets, which are
influenced by macro-economic factors, speculation and central bank and government intervention.
Fluctuations in short-term and/or long-term interest rates may affect the value of the Funds.
All Funds are potentially subject to interest rate risk on their cash balances and indirectly through their
investments in underlying funds as at 31 December 2015 and 31 December 2014.
Analytics International Flexible Fund
The interest rate profile of the financial assets of Analytics International Flexible Fund as at 31
December 2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
Floating rate financial assets
Fixed rate financial assets
Total
5,658,406
4,977,925
10,636,331
56,584
49,779
106,363
Interest Rate Characteristics
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
Floating rate financial assets
Fixed rate financial assets
Total
3,888,522
5,221,673
9,110,195
38,885
52,217
91,102
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
187
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam Global Balanced Fund
The interest rate profile of the financial assets of Sanlam Global Balanced Fund as at 31 December
2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
2,081,346
111,305,073
20,813
1,113,051
113,386,419
1,133,864
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
946,891
131,560,904
132,507,795
9,469
1,315,609
1,325,078
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam Global Best Ideas Feeder Fund
The interest rate profile of the financial assets of Sanlam Global Best Ideas Feeder Fund as at 31
December 2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
26,195
50,764,385
50,790,580
262
507,644
507,906
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
49,941
127,711,141
499
1,277,111
127,761,082
1,277,610
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
188
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam Global Equity Fund
The interest rate profile of the financial assets of Sanlam Global Equity Fund as at 31 December 2015
and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit
USD
5,400,884
1,155,026,558
1,160,427,442
54,009
11,550,266
11,604,275
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit
USD
2,377,401
1,354,735,474
1,357,112,875
23,774
13,547,355
13,571,129
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam Euro Liquidity Fund
The interest rate profile of the financial assets of Sanlam Euro Liquidity Fund as at 31 December 2015
and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
EUR
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
EUR
1,296,201
3,344,023
4,640,224
12,962
33,440
46,402
Total Exposure
2014
EUR
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
EUR
1,467,001
3,728,617
14,670
37,286
5,195,618
51,956
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
189
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam Sterling Liquidity Fund
The interest rate profile of the financial assets of Sanlam Sterling Liquidity Fund as at 31 December
2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
GBP
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
GBP
383,299
1,073,066
1,456,365
3,833
10,731
14,564
Total Exposure
2014
GBP
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
GBP
455,338
1,193,202
4,553
11,932
1,648,540
16,485
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam Global Liquidity Fund
The interest rate profile of the financial assets of Sanlam Global Liquidity Fund as at 31 December
2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
327,427
9,114,484
9,441,911
3,274
91,145
94,419
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
267,129
10,514,485
10,781,614
2,671
105,145
107,816
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
190
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam US Dollar Liquidity Fund
The interest rate profile of the financial assets of Sanlam US Dollar Liquidity Fund as at 31 December
2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
1,506,300
3,870,288
5,376,588
15,063
38,703
53,766
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
1,950,819
4,825,469
6,776,288
19,508
48,255
67,763
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam International Multi-Asset I Fund
The interest rate profile of the financial assets of Sanlam International Multi-Asset I Fund as at 31
December 2014 was as follows:
Interest Rate Characteristics
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
71,485
71,485
715
715
Non interest bearing securities
Total
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Verso Global Flexible Fund
The interest rate profile of the financial assets of Verso Global Flexible Fund as at 31 December 2014
was as follows:
Interest Rate Characteristics
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
Floating rate financial assets
Total
1,498,055
1,498,055
14,981
14,981
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
191
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
NFB Global Balanced Fund of Funds
The interest rate profile of the financial assets of NFB Global Balanced Fund of Funds as at 31
December 2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
812,252
16,152,440
16,964,692
8,123
161,524
169,647
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
5,709,516
17,083,333
22,792,849
57,095
170,833
227,928
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam BIFM Emerging Markets Equity Fund
The interest rate profile of the financial assets of Sanlam BIFM Emerging Markets Equity Fund as at
31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
7,232,619
240,794
7,473,413
72,326
2,408
74,734
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
192
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam BIFM World Equity Fund
The interest rate profile of the financial assets of Sanlam BIFM World Equity Fund as at 31 December
2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
1,943,377
64,413,293
66,356,670
19,434
644,133
663,567
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
13,480,765
185,786,161
199,266,926
134,808
1,857,862
1,992,670
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Sanlam BIFM Global Fixed Income Fund
The interest rate profile of the financial assets of Sanlam BIFM Global Fixed Income Fund as at 31
December 2015 and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
354,899
31,068,651
31,423,550
3,549
310,687
314,236
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
804,088
132,479,704
133,283,792
8,041
1,324,797
1,332,838
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
193
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
Sanlam BIFM South Africa Inflation Linked Bond
The interest rate profile of the financial assets of Sanlam BIFM South Africa Inflation Linked Bond
Fund as at 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
3,899,711
63,361,082
67,260,793
38,997
633,611
672,608
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Mpile Global Equity Fund
The interest rate profile of the financial assets of Mpile Global Equity Fund as at 31 December 2015
and 31 December 2014 was as follows:
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Interest Rate Characteristics
Floating rate financial assets
Non interest bearing securities
Total
Total Exposure
2015
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
196,868
25,127,387
25,324,255
1,969
251,274
253,243
Total Exposure
2014
USD
Effect of 1.00% movement in interest
rates on Net Asset and Profit*
USD
79,641
12,614,102
12,693,743
796
126,141
126,937
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Brackenham Global Balanced Fund
The interest rate profile of the financial assets of Brackenham Global Balanced Fund as at 31
December 2015 was as follows:
Total Exposure
Effect of 1.00% movement in interest
Interest Rate Characteristics
2015
rates on Net Asset and Profit*
USD
USD
Floating rate financial assets
6,510,846
65,108
Non interest bearing securities
1,668,365
16,684
Total
8,179,211
81,792
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
194
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS
(CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(b) Interest rate risk (continued)
APS Global Flexible Fund of Funds
The interest rate profile of the financial assets of APS Global Flexible Funds of Funds as at 31
December 2015 was as follows:
Total Exposure
Effect of 1.00% movement in interest
Interest Rate Characteristics
2015
rates on Net Asset and Profit*
USD
USD
Floating rate financial assets
2,306,405
23,064
Non interest bearing securities
43,470,602
434,706
Total
45,777,007
457,770
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
Counterpoint Global Equity Fund
The interest rate profile of the financial assets of Counterpoint Global Equity Fund as at 31 December
2015 was as follows:
Total Exposure
Effect of 1.00% movement in interest
Interest Rate Characteristics
2015
rates on Net Asset and Profit*
USD
USD
Floating rate financial assets
1,531,773
15,318
Non interest bearing securities
Total
1,531,773
15,318
*The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking
into account current market conditions and expectations for future interest rate movements, but actual results can differ
significantly.
(c) Other price risk
Price risk is the risk that (a) the value of a financial investment will fluctuate as a result of changes in
market prices, whether caused by factors specific to an individual investment, its issuer or any factor
affecting financial investments traded in the market or (b) the risk that the valuations of the underlying
Funds into which the Funds invest does not reflect the true value because the values are not verified
by an independent third party, or the values of these underlying funds are not available at the
valuation points of the funds.
Other price risks may result from exposures to changes in the prices and volatilities of individual
equities, equity baskets, equity indices, and commodities.
Each Fund is required to be managed in accordance with the prospectus, Fund supplement and the
RIAIF requirements as set out in the AIF rulebook of the Central Bank of Ireland. Each Investment
Manager is required to report to the Manager each month that the respective Funds have been
managed in accordance with the Investment Management Agreement agreed between them.
As the Funds’ financial investments are carried at fair value with fair value changes recognised in the
Statement of Comprehensive Income, all changes in market conditions will directly affect net assets
attributable to holders of redeemable participating shares.
195
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(c) Other price risk (continued)
The following table demonstrates Management’s best estimate of the sensitivity of net assets and
profit to change in the relevant benchmark index 5 year annualised return:
Benchmark
Index 5 year
annualised
return
2015
%
Benchmark
Index 5 year
annualised Total Effect* Total Effect*
return 31 December 31 December
2014
2015
2014
%
USD
USD
Fund name
Benchmark index name
Analytics
International Flexible
Fund***
60% MSCI All Country
World/40% Citigroup WGBI
3.60
6.77
1,463,820
3,236,702
Sanlam Global
Balanced Fund
65% MSCI World/35%
Barclays Capital Global
Aggregate Bond
5.37
7.69
5,971,563
10,117,034
Sanlam Global Best
Ideas Feeder Fund
MSCI World
7.59
10.20
3,851,105
13,026,536
Sanlam Global
Equity Fund
MSCI World
7.59
10.20
87,800,221
138,412,336
Sanlam Euro
Liquidity Fund
7 Day LIBID Rate (Euro)
0.10
0.22
3,426
8,203
Sanlam Sterling
Liquidity Fund
7 Day LIBID Rate (Sterling)
0.39
0.41
4,222
4,892
Sanlam Global
Liquidity Fund
Composite benchmark (45%
US/40% EU/15% GB)
(1.63)
(1.14)
(148,297)
(119,865)
Sanlam US Dollar
Liquidity Fund
7 Day LIBID Rate (US Dollar)
0.04
0.06
1,551
2,895
Sanlam International
Multi Asset I Fund**
USD 3 Month LIBOR + 2%
N/A
2.51
N/A
1,794
Verso Global Flexible
Fund**
MSCI World
N/A
12.87
N/A
6,129,515
G7 Inflation plus 2%
2.74
2.83
443,085
483,458
MSCI Emerging Markets
Index
N/A
(4.31)
N/A
(6,371,539)
MSCI World Index
3.66
7.71
9,689,383
57,496,950
NFB Global Balanced
Fund of Funds***
Sanlam BIFM
Emerging Markets
Equity Fund**
Sanlam BIFM World
Equity Fund***
*Total effect is the impact on Net Assets and Profit, calculated as the total exposure (as detailed in Note 8) multiplied by the
Benchmark Index 5 year annualised return, but actual results could differ significantly.
**This Fund closed in 2015.
***This Fund has not been in operation for 5 years. The benchmark index annualised return is calculated from the date of
inception of the Fund.
196
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(i) Market Risk (continued)
(c) Other price risk (continued)
Fund name
Benchmark index name
Sanlam BIFM Global
Fixed Income Fund***
Sanlam BIFM South
Africa Inflation Linked
Bond Fund**
Barclays Capital Global
Aggregate
Barclays/ABSA S.A
Government InflationLinked Bond Index
Mpile Global
Equity Fund***
Benchmark
Index 5 year
annualised
return
2015
%
Benchmark
Index 5 year
annualised Total Effect* Total Effect*
return 31 December 31 December
2014
2015
2014
%
USD
USD
(1.85)
(0.72)
(574,136)
(953,854)
N/A
(4.23)
N/A
(2,680,174)
MSCI World
(1.96)
(1.95)
(492,101)
(245,975)
APS Global Flexible
Fund of Funds***
MSCI World
(7.12)
N/A
(3,094,316)
N/A
Counterpoint Global
Equity Fund***
MSCI World
(5.66)
N/A
(715,485)
N/A
*Total effect is the impact on Net Assets and Profit, calculated as the total exposure (as detailed in Note 8) multiplied by the
Benchmark Index 5 year annualised return, but actual results could differ significantly.
**This Fund closed in 2015.
***This Fund has not been in operation for 5 years. The benchmark index annualised return is calculated from the date of
inception of the Fund.
At 31 December 2015, Brackenham Global Balanced Fund does not have a benchmark index.
(ii) Liquidity Risk
Liquidity risk is defined as the risk that a Fund will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or another financial asset.
Exposure to liquidity risk increases because of the possibility that a Fund could be required to redeem
its shares earlier than expected. The Funds are exposed to cash redemptions of its redeemable
shares on a daily basis. Shares are redeemable at the holder’s option based on the Fund’s net asset
value per share at the time of redemption calculated in accordance with the Fund’s constitution. The
Funds, therefore, are exposed to the liquidity risk of meeting shareholder redemptions at any time.
The majority of the Funds’ financial investments are either listed securities or collective investment
schemes trading on a regular basis which are readily realisable. All Investment Managers are required
to keep appropriate levels of cash or near cash investments to meet normal day to day liquidity
demands, for example from normal levels of investor redemptions and to meet expense payments as
they fall due. In addition the Manager performs daily monitoring of cash balances and reports low or
overdrawn cash balances to Investment Managers.
197
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
In the event of significant requests for redemption of shares resulting in the Funds having to liquidate
investments more rapidly than otherwise desirable, in order to raise cash for the redemptions and
achieve a market position appropriately reflecting a smaller asset base, the Board of Directors has the
ability to levy a dilution charge so that the investors remaining in the Funds are not disadvantaged.
The Company manages its obligation to repurchase the shares when required to do so and its overall
liquidity risk as follows:

The Articles provide that the Company cannot affect the repurchase of Shares, if after payment of
any account in connection with such repurchase, the Net Asset Value of the issued share capital
would be equal or less than EUR38,100 or its foreign currency equivalent.

The Directors are entitled to limit the number of shares of any Fund repurchased on any dealing
day to Shares representing 10% of the total Net Asset Value of Shares of that Fund in issue on
that Dealing Day. In this event, the limitation will apply pro-rata so that all shareholders wishing to
have shares of the Fund repurchased on that Dealing Day realize the same proportion of such
Shares and Shares not repurchased, but which would have otherwise been repurchased, will be
carried forward for repurchase on the next Dealing Day and will be dealt with in priority (on a
rateable basis) to repurchase request received subsequently. If requests for repurchases are
carried forward, the Registrar and Transfer Agent will inform the shareholders affected.

The Articles contain special provisions where a repurchase request received from a Shareholder
would result in more than 5 per cent of the Net Asset Value of Shares of any Fund being
repurchased by the Company on any Dealing Day. In such a case the Company may satisfy all or
part of the repurchase request by a distribution of investments of the relevant Fund in specie
provided that such a distribution would not be prejudicial to the interests of the remaining
Shareholders of that Fund. The Shareholder however may require the Company to sell such
investments on his behalf and pay him the proceeds of sale less any costs incurred in connection
with such sale.

The Directors may at any time temporarily suspend the calculation of the Net Asset Value of any
Fund and the issue, repurchase and conversion of Shares and the payment of repurchase
proceeds during inter alia any period during which any transfer of Funds involved in the realisation
or acquisition of investments of the relevant Fund cannot, in the opinion of the Directors, be
effected at normal prices or rates of exchange or any period during which the Directors are unable
to repatriate Funds required for the purpose of making payments due on repurchase of Shares in
the relevant Fund, or any period when the Directors consider it to be in the best interest of the
Company. Where possible, all reasonable steps will be taken to bring any period of suspension to
an end as soon as possible.
The Fund’s policy is to satisfy redemption requests by the following means:
1. Withdrawal of cash deposits;
2. Disposal of highly liquid assets (i.e. short-term, low-risk debt investments);
3. Disposal of other investments;
4. The Fund may borrow on a temporary basis in order to fund redemptions; and
5. Searching for new investors.
198
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
The Fund invests primarily in marketable securities and other financial instruments, which under
normal market conditions are readily convertible to cash. In addition, the Fund’s policy is to maintain
sufficient cash and cash equivalents to meet normal operating requirements and expected
redemption requests.
Trading limits and collateral arrangements limit the extent to which liabilities can be incurred by the
Fund.
It is the Fund’s policy that the Investment Manager monitors the Fund’s liquidity position on a daily
basis and that the Board of Directors reviews it on a quarterly basis.
For the avoidance of doubt none of the assets of the Company are subject to special liquidity
arrangements.
The tables overleaf summarise the maturity profile of the Funds’ financial liabilities. Balances due
within 6 months equal their carrying amounts, as the impact of discounting is significant. The table
also analyses the maturity profile of the Funds’ financial assets in order to provide a complete view of
the Funds’ contractual commitments and liquidity.
199
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Analytics International Flexible
Fund 2015
Cash
Due on demand
Due within
6 months
Total
USD
USD
USD
4,960,688
-
4,960,688
-
139,072
139,072
Accrued income
Financial assets at fair value through
profit and loss
40,693,936
-
40,693,936
Total Financial Assets
45,654,624
139,072
45,793,696
(16,311)
-
(65,656)
(16,311)
(65,656)
(5,878)
(5,878)
Financial liabilities at fair value
through profit and loss
Accrued expenses
Administration fees accrued
Redeemable participating shares
(45,705,851)
-
(45,705,851)
Total Financial Liabilities
(45,722,162)
(71,534)
(45,793,696)
Due on demand
Due within
6 months
Total
USD
USD
USD
2,502,752
-
2,502,752
-
127,970
127,970
47,810,369
-
47,810,369
Analytics International Flexible
Fund 2014
Cash
Accrued income
Financial assets at fair value through
profit and loss
Other debtors
Total Financial Assets
Financial liabilities at fair value
through profit and loss
Accrued expenses
-
15,246
15,246
50,313,121
143,216
50,456,337
(891)
-
(63,443)
(891)
(63,443)
-
(6,102)
(6,102)
Administration fees accrued
Redeemable participating shares
(50,385,901)
-
(50,385,901)
Total Financial Liabilities
(50,386,792)
(69,545)
(50,456,337)
200
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam Global Balanced Fund 2015
Cash
Due on demand
Due within
6 months
Total
USD
USD
USD
2,081,346
-
2,081,346
Financial assets at fair value through profit
and loss
111,305,073
-
111,305,073
Total Financial Assets
113,386,419
-
113,386,419
Accrued expenses
-
(94,997)
(94,997)
Administration fees accrued
-
(16,745)
(16,745)
Amounts payable on repurchase of shares
-
(758,151)
(758,151)
Redeemable participating shares
(112,516,526)
-
(112,516,526)
Total Financial Liabilities
(112,516,526)
(869,893)
(113,386,419)
Due on demand
Due within
6 months
Total
USD
USD
USD
946,891
-
946,891
-
-
-
Other debtors
131,560,904
-
15,452
131,560,904
15,452
Total Financial Assets
132,507,795
15,452
132,523,247
Accrued expenses
-
(100,577)
(100,577)
Administration fees accrued
-
(18,068)
(18,068)
Sanlam Global Balanced Fund 2014
Cash
Amounts receivable on issue of shares
Financial assets at fair value through profit
and loss
-
(9,709)
(9,709)
Redeemable participating shares
(132,394,893)
-
(132,394,893)
Total Financial Liabilities
(132,394,893)
(128,354)
(132,523,247)
Amounts payable on repurchase of shares
201
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam Global Best Ideas Feeder Fund
2015
Due on demand
Due within
6 months
Total
USD
USD
USD
Cash
26,195
-
26,195
Financial assets at fair value through profit
and loss
50,764,385
-
50,764,385
Total Financial Assets
50,790,580
-
50,790,580
-
(55,409)
(55,409)
Accrued expenses
Administration fees accrued
-
(10,571)
(10,571)
Redeemable participating shares
(50,724,600)
-
(50,724,600)
Total Financial Liabilities
(50,724,600)
(65,980)
(50,790,580)
Due on demand
Due within
6 months
Total
USD
USD
USD
49,941
-
49,941
-
-
-
Other debtors
127,711,141
-
11,087
127,711,141
11,087
Total Financial Assets
127,761,082
11,087
127,772,169
Accrued expenses
-
(89,651)
(89,651)
Administration fees accrued
-
(15,005)
(15,005)
Redeemable participating shares
(127,667,513)
-
(127,667,513)
Total Financial Liabilities
(127,667,513)
(104,656)
(127,772,169)
Sanlam Global Best Ideas Feeder Fund
2014
Cash
Amounts receivable on issue of shares
Financial assets at fair value through profit
and loss
202
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam Global Equity Fund 2015
Cash
Financial assets at fair value through profit
and loss
Due on demand
Due within
6 months
Total
USD
USD
USD
5,400,884
-
5,400,884
1,157,362,330
-
1,157,362,330
Other debtors
-
36
36
1,162,763,214
36
1,162,763,250
Accrued expenses
-
(838,380)
(838,380)
Administration fees accrued
-
(123,958)
(123,958)
Redeemable participating shares
(1,161,800,912)
-
(1,161,800,912)
Total Financial Liabilities
(1,161,800,912)
(962,338)
(1,162,763,250)
Due on demand
Due within
6 months
Total
USD
USD
USD
2,377,401
-
2,377,401
-
-
-
1,356,983,691
-
-
Other debtors
Total Financial Assets
1,359,361,092
86,892
86,892
1,356,983,691
86,892
Accrued expenses
-
(904,909)
(904,909)
Administration fees accrued
-
(121,359)
(121,359)
Total Financial Assets
Sanlam Global Equity Fund 2014
Cash
Amounts receivable on issue of shares
Financial assets at fair value through profit
and loss
1,359,447,984
-
(54,458)
(54,458)
Redeemable participating shares
(1,358,367,258)
-
(1,358,367,258)
Total Financial Liabilities
(1,358,367,258)
(1,080,726)
(1,359,447,984)
Amounts payable on repurchase of shares
203
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Due on demand
Due within
6 months
Total
EUR
EUR
EUR
Cash
1,296,201
-
1,296,201
Financial assets at fair value through profit
and loss
3,344,023
-
3,344,023
Sanlam Euro Liquidity Fund 2015
Other debtors
-
245
245
4,640,224
245
4,640,469
Accrued expenses
-
(12,013)
(12,013)
Administration fees accrued
-
(1,185)
(1,185)
Redeemable participating shares
(4,627,271)
-
(4,627,271)
Total Financial Liabilities
(4,627,271)
(13,198)
(4,640,469)
Due on demand
Due within
6 months
Total
EUR
EUR
EUR
1,467,001
-
1,467,001
Other debtors
3,728,617
-
3,957
3,728,617
3,957
Total Financial Assets
5,195,618
3,957
5,199,575
Accrued expenses
-
(6,693)
(6,693)
Administration fees accrued
-
(2,192)
(2,192)
Amounts payable on repurchase of shares
-
(4,250)
(4,250)
Total Financial Assets
Sanlam Euro Liquidity Fund 2014
Cash
Financial assets at fair value through profit
and loss
Redeemable participating shares
(5,186,440)
-
(5,186,440)
Total Financial Liabilities
(5,186,440)
(13,135)
(5,199,575)
204
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam Sterling Liquidity Fund 2015
Cash
Due on demand
Due within
6 months
Total
GBP
GBP
GBP
383,299
-
383,299
Financial assets at fair value through profit
and loss
1,073,066
-
1,073,066
Total Financial Assets
1,456,365
-
1,456,365
Accrued expenses
-
(8,450)
(8,450)
Administration fees accrued
-
(642)
(642)
(1,447,273)
(1,447,273)
(9,092)
(1,447,273)
(1,456,365)
Due on demand
Due within
6 months
Total
GBP
GBP
GBP
455,338
-
455,338
1,193,202
-
1,193,202
-
1,817
1,817
1,648,540
1,817
1,650,357
Accrued expenses
-
(5,592)
(5,592)
Administration fees accrued
-
(1,720)
(1,720)
Amounts payable on repurchase of shares
-
(21,400)
(21,400)
(1,621,645)
(1,621,645)
(28,712)
(1,621,645)
(1,650,357)
-
Redeemable participating shares
Total Financial Liabilities
Sanlam Sterling Liquidity Fund 2014
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Redeemable participating shares
Total Financial Liabilities
205
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam Global Liquidity Fund 2015
Cash
Due on demand
Due within
6 months
Total
USD
USD
USD
327,427
-
327,427
Financial assets at fair value through profit
and loss
9,114,484
-
9,114,484
Total Financial Assets
9,441,911
-
9,441,911
-
(12,833)
(12,833)
Accrued expenses
Administration fees accrued
-
(1,995)
(1,995)
Redeemable participating shares
(9,427,083)
-
(9,427,083)
Total Financial Liabilities
(9,427,083)
(14,828)
(9,441,911)
Due on demand
Due within
6 months
Total
USD
USD
USD
267,129
-
267,129
10,514,485
-
10,514,485
-
13,085
13,085
10,781,614
13,085
10,794,699
Accrued expenses
-
(11,415)
(11,415)
Administration fees accrued
-
(3,895)
(3,895)
Sanlam Global Liquidity Fund 2014
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Redeemable participating shares
(10,779,389)
-
(10,779,389)
Total Financial Liabilities
(10,779,389)
(15,310)
(10,794,699)
206
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Due on demand
Due within
6 months
Total
USD
USD
USD
Cash
1,506,300
-
1,506,300
Financial assets at fair value through profit
and loss
3,870,288
-
3,870,288
Total Financial Assets
5,376,588
-
5,376,588
-
(13,182)
(13,182)
Sanlam US Dollar Liquidity Fund 2015
Accrued expenses
Administration fees accrued
-
(1,414)
(1,414)
Redeemable participating shares
(5,361,992)
-
(5,361,992)
Total Financial Liabilities
(5,361,992)
(14,596)
(5,376,588)
Due on demand
Due within
6 months
Total
USD
USD
USD
Cash
1,950,819
-
1,950,819
Financial assets at fair value through profit
and loss
4,825,469
-
4,825,469
-
3,769
3,769
6,776,288
3,769
6,780,057
Accrued expenses
-
(8,804)
(8,804)
Administration fees accrued
-
(2,418)
(2,418)
Sanlam US Dollar Liquidity Fund 2014
Other debtors
Total Financial Assets
Amounts payable on repurchase of shares
-
(48,640)
(48,640)
Redeemable participating shares
(6,720,195)
-
(6,720,195)
Total Financial Liabilities
(6,720,195)
(59,862)
(6,780,057)
207
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Sanlam International Multi
Asset I Fund* 2014
Due on demand
Due within
6 months
Total
USD
USD
USD
71,485
-
71,485
-
29,391
29,391
Total Financial Assets
71,485
29,391
100,876
-
-
Bank overdraft
(3,033)
Financial assets at fair value through profit
and loss
Other debtors
(3,033)
Accrued expenses
-
(15,413)
(15,413)
Administration fees accrued
-
(3,982)
(3,982)
Redeemable participating shares
(78,448)
-
(78,448)
Total Financial Liabilities
(81,481)
(19,395)
(100,876)
Due on demand
Due within
6 months
Total
USD
USD
USD
1,498,055
-
1,498,055
-
42,346
42,346
Other debtors
47,626,376
-
24,270
47,626,376
24,270
Total Financial Assets
49,124,431
66,616
49,191,047
Accrued expenses
-
(66,715)
(66,715)
Administration fees accrued
-
(7,129)
(7,129)
Redeemable participating shares
(49,117,203)
-
(49,117,203)
Total Financial Liabilities
(49,117,203)
(73,844)
(49,191,047)
Verso Global Flexible Fund* 2014
Cash
Accrued income
Financial assets at fair value through profit
and loss
* Funds closed in 2015.
208
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
NFB Global Balanced Fund of Funds
2015
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
NFB Global Balanced Fund of Funds
2014
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
BIFM Emerging Market Equity Fund*
2014
Cash
Accrued Income
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Amounts payable on purchase of securities
Redeemable participating shares
Total Financial Liabilities
Due on demand
Due within
6 months
Total
USD
USD
USD
812,252
-
812,252
16,152,440
16,964,692
26,971
26,971
16,152,440
26,971
16,991,663
(16,966,280)
(16,966,280)
(21,808)
(3,575)
(25,383)
(21,808)
(3,575)
(16,966,280)
(16,991,663)
Due on demand
Due within
6 months
Total
USD
USD
USD
5,709,516
-
5,709,516
17,083,333
22,792,849
36,030
36,030
17,083,333
36,030
22,828,879
(22,809,476)
(22,809,476)
(15,070)
(4,333)
(19,403)
(15,070)
(4,333)
(22,809,476)
(22,828,879)
Due on demand
USD
Due within
6 months
USD
Total
USD
7,232,619
-
302,959
7,232,619
302,959
147,831,524
155,064,143
11,082
314,041
147,831,524
11,082
155,378,184
(155,112,150)
(155,112,150)
(247,510)
(18,250)
(274)
(266,034)
(247,510)
(18,250)
(274)
(155,112,150)
(155,378,184)
-
* Fund closed in 2015.
209
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
BIFM World Equity Fund 2015
Cash
Accrued Income
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Redeemable participating shares
Total Financial Liabilities
BIFM World Equity Fund 2014
Due on demand
USD
Due within
6 months
USD
Total
USD
1,943,377
-
213,445
1,943,377
213,445
264,462,426
266,405,803
23,509
236,954
264,462,426
23,509
266,642,757
(266,275,250)
(266,275,250)
(288,303)
(45,904)
(33,300)
(367,507)
(288,303)
(45,904)
(33,300)
(266,275,250)
(266,642,757)
Due on demand
USD
Due within
6 months
USD
Total
USD
Cash
Accrued Income
Amounts receivable on sale of securities
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
13,480,765
-
553,693
1,030,180
13,480,765
553,693
1,030,180
745,745,141
759,225,906
10,783
1,594,656
745,745,141
10,783
760,820,562
Accrued expenses
Administration fees accrued
Amounts payable on repurchase of shares
Redeemable participating shares
Total Financial Liabilities
(755,950,970)
(755,950,970)
(688,350)
(81,242)
(4,100,000)
(4,869,592)
(688,350)
(81,242)
(4,100,000)
(755,950,970)
(760,820,562)
210
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
BIFM Global Fixed Income Fund 2015
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
BIFM Global Fixed Income Fund 2014
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
Sanlam BIFM South Africa Inflation
Linked Bond Fund* 2014
Cash
Financial assets at fair value through profit
and loss
Accrued income
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
Due on demand
USD
Due within
6 months
USD
Total
USD
354,899
-
354,899
31,068,651
31,423,550
1,604
1,604
31,068,651
1,604
31,425,154
(31,350,613)
(31,350,613)
(67,636)
(6,905)
(74,541)
(67,636)
(6,905)
(31,350,613)
(31,425,154)
Due on demand
USD
Due within
6 months
USD
Total
USD
804,088
-
804,088
132,479,704
133,283,792
11,082
11,082
132,479,704
11,082
133,294,874
(133,092,434)
(133,092,434)
(187,513)
(14,927)
(202,440)
(187,513)
(14,927)
(133,092,434)
(133,294,874)
Due on demand
USD
Due within
6 months
USD
Total
USD
3,899,711
-
3,899,711
63,361,082
67,260,793
430,640
3,910
434,550
63,361,082
430,640
3,910
67,695,343
(67,630,059)
(67,630,059)
(49,833)
(15,451)
(65,284)
(49,833)
(15,451)
(67,630,059)
(67,695,343)
* Fund closed in 2015.
211
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
Due on demand
USD
Due within
6 months
USD
Total
USD
196,868
-
196,868
25,127,387
25,324,255
-
25,127,387
25,324,255
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
(25,302,513)
(25,302,513)
(19,196)
(2,546)
(21,742)
(19,196)
(2,546)
(25,302,513)
(25,324,255)
Mpile Global Equity Fund 2014
Due on demand
USD
Due within
6 months
USD
Total
USD
79,641
-
79,641
12,614,102
12,693,743
2,259
2,259
12,614,102
2,259
12,696,002
(12,680,234)
(12,680,234)
(12,716)
(3,052)
(15,768)
(12,716)
(3,052)
(12,680,234)
(12,696,002)
Due on demand
USD
Due within
6 months
USD
Total
USD
6,510,846
-
15,500
6,510,846
15,500
10,827,897
17,338,743
19,767
35,267
10,827,897
19,767
17,374,010
(17,339,692)
(17,339,692)
(28,696)
(3,443)
(2,179)
(34,318)
(28,696)
(3,443)
(2,179)
(17,339,692)
(17,374,010)
Mpile Global Equity Fund 2015
Cash
Financial assets at fair value through profit
and loss
Total Financial Assets
Cash
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
Brackenham Global Balanced Fund
2015
Cash
Accrued Income
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
AIFM fees accrued
Redeemable participating shares
Total Financial Liabilities
212
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(ii) Liquidity Risk (continued)
APS Global Flexible Fund of Funds 2015
Cash
Accrued Income
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
AIFM fees accrued
Redeemable participating shares
Total Financial Liabilities
Counterpoint Global Equity Fund 2015
Cash
Accrued Income
Financial assets at fair value through profit
and loss
Other debtors
Total Financial Assets
Accrued expenses
Administration fees accrued
Redeemable participating shares
Total Financial Liabilities
Due on demand
USD
Due within
6 months
USD
Total
USD
2,306,405
-
46
2,306,405
46
43,470,602
45,777,007
23,320
23,366
43,470,602
23,320
45,800,373
(45,742,720)
(45,742,720)
(47,742)
(4,089)
(5,822)
(57,653)
(47,742)
(4,089)
(5,822)
(45,742,720)
(45,800,373)
Due on demand
USD
Due within
6 months
USD
Total
USD
1,531,773
-
1,525
1,531,773
1,525
12,645,367
14,177,140
13,155
14,680
12,645,367
13,155
14,191,820
(14,157,589)
(14,157,589)
(32,675)
(1,556)
(34,231)
(32,675)
(1,556)
(14,157,589)
(14,191,820)
(iii) Credit Risk
Credit risk is the risk that a counterparty to a financial asset will fail on a commitment that it has
entered into with the Company. A Fund is subject to the possibility of insolvency, bankruptcy or default
of a counterparty with which the Fund, as appropriate, trades such instruments. This could result in
substantial losses to the Fund.
213
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Each Fund will be exposed to credit risk on the counterparties with which it trades in relation to OTC
derivative contracts. Such instruments are not afforded the same protections as may apply to
participants trading futures or options on organised exchanges, such as the performance guarantee of
an exchange clearing house. Investment Managers who enter into transactions involving financial
derivatives are required to abide by the Prospectus and the AIF Rulebook and any breaches must be
reported to the Manager.
The various Investment Managers to the Funds have adopted procedures to reduce credit risk related
to their dealings with counterparties in respect of Bonds and Collective Investment Schemes. Before
transacting with any counterparty, the Investment Manager or its affiliates evaluate both
creditworthiness and reputation by conducting a credit analysis of the party, their business and
reputation. The reputational risk of approved counterparties is then monitored on an ongoing basis,
including periodic reviews of financial statements and interim financial reports as needed.
In order to reduce exposure to credit losses, Master Netting Agreements (MNA’s) are entered into with
over-the-counter derivative counterparties, excluding those counterparties executing only spot foreign
exchange contracts. While MNA’s do not result in an offset of reported assets and liabilities because
transactions are generally settled on a gross basis, MNA’s do provide for the reduction of credit risk on
favourable contracts to the extent of the value of unfavourable contracts in the event of default as all
amounts with the counterparty are terminated and settled on a net basis.
A Fund may enter into stock lending, reverse repurchase agreements and repurchase agreements
provided that it is within the conditions and the limits laid down by the Central Bank or the purpose of
generating income for the Company with an acceptable level of risk. Such arrangements are those
where the Company or the Depositary delivers securities to a third party in return for which it is agreed
those securities or securities of the same kind and amount should be redelivered to the Company or
the Depositary at a later date.
Margin accounts and amounts due from sale/purchase of securities are with the Company’s
counterparties. The credit ratings of these counterparties are as follows:
Prime broker/Depositary
Brown Brothers Harriman Trustee Services (Ireland) Limited
2015 Rating
2014 Rating
A+
A+
The Institutional Euro Liquidity Fund, the Institutional Sterling Liquidity Fund and the Institutional US
Dollar Liquidity Fund must retain their credit rating of Aaa/MR+ Money Market fund rating from
Moody’s, or AAAm from Standard and Poor’s.
214
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
At 31 December 2015 and 31 December 2014, the following financial assets were exposed to counterparty
credit risk: investments in debt securities, derivative financial assets and other receivables. The fair value of
financial assets best reflects the maximum counterparty credit risk exposure at the reporting date.
The maximum exposure to credit risk as at the reporting date can be analysed as follows in the tables
below and overleaf for the years ended 31 December 2015 and 31 December 2014:
Bonds
31 December
2015
Total
31 December
2015
Bonds
31 December
2014
Total
31 December
2014
USD
USD
USD
USD
Australia
183,524
183,524
90,754
90,754
Bermuda
345,132
345,132
438,580
438,580
Cayman Islands
602,706
602,706
627,662
627,662
Chile
269,624
269,624
211,530
211,530
Analytics International Flexible
Fund
-
-
160,948
160,948
Columbia
170,788
170,788
-
-
Germany
329,410
329,410
210,514
210,514
-
-
213,004
213,004
420,568
420,568
568,400
568,400
-
-
150,879
150,879
Korea (South)
208,752
208,752
235,824
235,824
Luxembourg
152,958
152,958
-
-
China
Great Britain
Hong Kong
India
78,088
78,088
-
-
Netherlands
296,754
296,754
549,126
549,126
New Zealand
147,340
147,340
159,842
159,842
Norway
262,880
262,880
293,555
293,555
Qatar
291,125
291,125
291,692
291,692
-
-
151,871
151,871
Singapore
437,209
437,209
614,905
614,905
Supra-National
435,638
435,638
205,466
205,466
Mexico
Russia
-
-
161,123
161,123
United Arab Emirates
192,424
192,424
201,328
201,328
United States
219,194
219,194
251,273
251,273
Virgin Islands
Total
631,530
631,530
819,166
819,166
5,675,644
6,607,442
6,607,442
Sweden
5,675,644
215
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Collective
Collective
Investment
Investment
Schemes
31 December
2015
Total
31 December
2015
Schemes
31 December
2014
Total
31 December
2014
USD
USD
USD
USD
-
-
32,809,331
32,809,331
Ireland
111,305,073
111,305,073
98,751,573
98,751,573
Total
111,305,073
111,305,073
131,560,904
131,560,904
Sanlam Global Balanced Fund
Great Britain
Collective
Collective
Investment
Investment
Schemes
31 December
2015
Total
31 December
2015
Schemes
31 December
2014
Total
31 December
2014
USD
USD
USD
USD
Ireland
50,764,385
50,764,385
127,711,141
127,711,141
Total
50,764,385
50,764,385
127,711,141
127,711,141
Sanlam Global Best Ideas Feeder
Fund
Collective
Collective
Investment
Sanlam
Global
Equity Fund
Australia
Ireland
United States
Total
Investment
Schemes
Derivative
Total
Schemes
Derivative
Total
31
December
2015
31
December
2015
31
December
2015
31
December
2014
31
December
2014
31
December
2014
USD
USD
USD
USD
USD
USD
30,810,938
-
30,810,938
29,362,026
-
29,362,026
1,124,215,620
-
1,124,215,620
1,299,803,199
-
1,299,803,199
-
2,335,772
2,335,772
-
2,248,217
2,248,217
1,155,026,558
2,335,772
1,157,362,330
1,329,165,225
2,248,217
1,331,413,442
216
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Collective
Collective
Investment
Investment
Schemes
Total
Schemes
31 December
2015
31 December
2015
31 December
2014
EUR
EUR
EUR
Total
31
December
2014
EUR
Ireland
3,344,023
3,344,023
3,728,617
3,728,617
Total
3,344,023
3,344,023
3,728,617
3,728,617
Sanlam Euro Liquidity Fund
Collective
Collective
Investment
Investment
Schemes
31 December
2015
GBP
Total
31 December
2015
GBP
Schemes
31 December
2014
GBP
Total
31 December
2014
GBP
Ireland
1,073,066
1,073,066
1,193,202
1,193,202
Total
1,073,066
1,073,066
1,193,202
1,193,202
Sanlam Sterling Liquidity Fund
Collective
Collective
Investment
Investment
Schemes
31 December
2015
Sanlam Global Liquidity Fund
USD
Total
31 December
2015
USD
Schemes
31 December
2014
USD
Total
31 December
2014
USD
Ireland
9,114,484
9,114,484
10,514,485
10,514,485
Total
9,114,484
9,114,484
10,514,485
10,514,485
Collective
Collective
Investment
Investment
Schemes
31 December
2015
USD
Total
31 December
2015
USD
Schemes
31 December
2014
USD
Total
31 December
2014
USD
Ireland
3,870,288
3,870,288
4,825,469
4,825,469
Total
3,870,288
3,870,288
4,825,469
4,825,469
Sanlam US Dollar Liquidity Fund
217
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Collective
Collective
Investment
Investment
Schemes
31 December
2015
Total
31 December
2015
Sanlam International Multi Asset I
Fund*
Schemes
31 December
2014
Total
31 December
2014
USD
USD
USD
USD
Ireland
-
-
9,822
9,822
United States
-
-
61,663
61,663
Total
-
-
71,485
71,485
*Fund closed in 2015
Collective
Exchange
Collective
Exchange
Investment
Traded
Investment
Traded
Schemes
Funds
Schemes
Funds
Total
Total
31 December 31 December 31 December 31 December 31 December 31 December
2015
2015
2015
2014
2014
2014
NFB Global
Balanced Fund of
Funds
Ireland
Germany
Total
USD
USD
USD
USD
USD
USD
10,884,341
13,733,970
2,728,268
10,132,991
12,861,259
2,849,629
-
3,291,181
3,291,181
-
3,349,363
3,349,363
2,728,268
13,424,172
16,152,440
2,849,629
14,233,704
17,083,333
Collective
Collective
Investment
Investment
Schemes
Total
Schemes
Total
31 December
2015
31 December
2015
31 December
2014
31 December
2014
USD
USD
USD
USD
United States
-
-
240,794
240,794
Total
-
-
240,794
240,794
Sanlam BIFM Emerging Markets Equity
Fund*
*Fund closed in 2015
218
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Collective
Collective
Investment
Investment
Schemes
Total
Schemes
Total
31 December
2015
USD
31 December
2015
USD
31 December
2014
USD
31 December
2014
USD
Luxembourg
15,434,368
15,434,368
40,012,840
40,012,840
Ireland
48,978,925
48,978,925
145,773,321
145,773,321
Total
64,413,293
64,413,293
185,786,161
185,786,161
Sanlam BIFM World Equity Fund
Collective
Collective
Investment
Investment
Schemes
Total
Schemes
Total
31 December
2015
31 December
2015
31 December
2014
31 December
2014
USD
USD
USD
USD
132,479,704
Sanlam BIFM Global Fixed Income Fund
Ireland
31,068,651
31,068,651
132,479,704
Total
31,068,651
31,068,651
132,479,704
132,479,704
Bonds
Total
Bonds
Total
31 December
2015
31 December
2015
31 December
2014
31 December
2014
Sanlam BIFM South Africa Inflation
Linked Bond Fund*
USD
USD
USD
USD
South Africa
-
-
63,361,082
63,361,082
Total
-
-
63,361,082
63,361,082
*Fund closed in 2015
Mpile Global Equity Fund
Luxembourg
Ireland
Total
Collective
Collective
Investment
Investment
Schemes
Total
Schemes
Total
31 December
2015
USD
31 December
2015
USD
31 December
2014
USD
31 December
2014
USD
18,698,082
18,698,082
12,147,230
12,147,230
6,429,305
6,429,305
466,873
466,873
25,127,387
25,127,387
12,614,103
12,614,103
219
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Collective
Exchange
Investment
Traded
Schemes
Funds
Total
31 December
2015
USD
31 December
2015
USD
31 December
2015
USD
Bermuda
506,429
-
506,429
Luxembourg
426,884
-
426,884
-
735,052
735,052
933,313
735,052
1,668,365
Brackenham Global Balanced Fund
United States
Total
Collective
Investment
Schemes
Total
31 December 2015
USD
31 December 2015
USD
Luxembourg
17,076,669
17,076,669
Ireland
26,393,933
26,393,933
Total
43,470,602
43,470,602
APS Global Flexible Fund of Funds
Percentages of debt by rating agency category
The Company mitigates credit risk arising on debt instruments by investing primarily in credit
instruments that have received an investment grade credit rating from recognised ratings agencies
such as S&P, Moody’s and Fitch.
At 2015, 1 fund (2014: 2) has exposure to debt instruments. Details of the credit ratings of these debt
instruments are disclosed in the tables below and overleaf. The Funds that have exposure to debt
instruments are Analytics International Flexible Fund and Sanlam BIFM South Africa Inflation Linked
Bond Fund.
Analytics International Flexible Fund
A
AA
AAA
BB
BBB
Not rated
Total Debt
2015
2014
14.61%
25.33%
28.27%
23.19%
8.60%
100.00%
23.30%
25.95%
17.39%
0.74%
29.95%
2.67%
100.00%
220
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
18
Risk arising from Financial Instruments (continued)
(iii) Credit Risk (continued)
Percentages of debt by rating agency category (continued)
Sanlam BIFM South Africa Inflation Linked Bond Fund*
2015
2014
-
98.54%
1.46%
100.00%
BBB
Not rated
Total Debt
-
*Fund closed in 2015
(iv) Additional Risks
(a) Concentration Risk
The Funds invest in a limited number of investments and investment themes. A consequence of a
limited number of investments is that performance may be more favourably or unfavourably affected
by the performance of an individual investment.
(b) Operational Risk
Operational risk is the potential for loss caused by a deficiency in information, communications,
transaction processing and settlement and accounting systems. The Funds’ service providers maintain
controls and procedures for the purpose of managing operational risk.
(c) Legal, Tax and Regulatory Risks
Legal, tax and regulatory changes could occur during the duration of a Fund which may adversely
affect the Fund. The Manager and their appointed Investment Advisors monitor the international
regulatory environment closely for any legislation or regulatory changes that may impact the Funds.
Appropriate information on such matters is considered by senior management and referred to the
Board of Directors, where required.
(d) Non-Developed/Emerging Market Risk
A Fund may invest a portion of its capital in securities and companies based in non-developed or
emerging markets or issued by governments of such countries. Investing in the securities of such
companies and countries involves certain considerations not usually associated with investing in
securities of developed market companies or countries, including, without limitation, less liquidity,
greater price and foreign currency volatility, and greater legal, tax and regulatory risks.
e) Small Capitalisation Companies Risk
A Fund may invest a portion of its capital in securities of companies with smaller capitalisation. Smaller
capitalisation companies are generally not as well known to the investing public and have less investor
following than larger capitalisation companies. Investing in the securities of such companies may
involve certain considerations, including, without limitation, less liquidity, greater price volatility, and
risks associated with limited operating histories and/or the availability of information pertaining to the
Fund and its operations.
221
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share
Analytics International Flexible Fund
31 December
2015
31 December
2014
31 December
2013
USD45,705,851
4,347,495
USD50,385,901
4,774,678
USD44,999,819
4,144,825
USD10.5131
-
USD10.5527
-
USD10.8569
-
USD10.5131
USD10.5527
USD10.8569
31 December
2015
31 December
2014
31 December
2013
USD6,928,565
5,200,533
USD8,553,719
6,195,321
USD6,359,606
4,601,680
USD1.3323
-
USD1.3807
-
USD1.3820
-
USD1.3323
USD1.3807
USD1.3820
USD3,476,660
2,144,853
USD2,202,380
1,319,654
USD217,653
131,145
USD1.6209
-
USD1.6689
-
USD1.6596
-
USD1.6209
USD1.6689
USD1.6596
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Sanlam Global Balanced Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
USD102,111,301
62,762,191
USD121,638,793 USD125,212,951
72,679,095
75,304,263
USD1.6270
-
USD1.6736
-
USD1.6628
-
USD1.6270
USD1.6736
USD1.6628
222
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam Global Best Ideas Feeder Fund
Share Class A
Net Asset Value
Number of Shares in Issue
31 December
2015
31 December
2014
31 December
2013
USD1,425,596
839,686
USD2,276,960
1,253,226
USD5,680,367
3,178,305
USD1.6978
-
USD1.8169
-
USD1.7872
-
USD1.6978
USD1.8169
USD1.7872
USD97,992
54,418
USD105,644
55,181
USD3,706,848
1,981,346
USD1.8007
-
USD1.9145
-
USD1.8709
-
USD1.8007
USD1.9145
USD1.8709
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class C
Net Asset Value
Number of Shares in Issue
USD49,201,012
26,871,646
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
223
USD125,284,909 USD141,454,138
64,421,080
74,499,375
USD1.8310
-
USD1.9448
-
USD1.8987
-
USD1.8310
USD1.9448
USD1.8987
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam Global Equity Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD1,004,880
858,086
USD3,532,562
2,993,637
USD2,037,527
1,755,322
USD1.1711
-
USD1.1800
-
USD1.1608
-
USD1.1711
USD1.1800
USD1.1608
USD4,622,160
3,571,734
USD5,406,730
4,173,320
USD5,399,016
4,264,148
USD1.2941
-
USD1.2955
-
USD1.2661
-
USD1.2941
USD1.2955
USD1.2661
USD1,156,173,872
879,163,205
USD1,349,427,964
1,025,991,083
USD1,491,065,741
1,161,165,768
USD1.3151
-
USD1.3152
-
USD1.2841
-
USD1.3151
USD1.3152
USD1.2841
224
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam Euro Liquidity Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
EUR74
73
EUR74
73
EUR74
73
EUR1.0167
-
EUR1.0126
-
EUR1.0114
-
EUR1.0167
EUR1.0126
EUR1.0114
EUR74
72
EUR74
72
EUR74
72
EUR1.0270
-
EUR1.0228
-
EUR1.0215
-
EUR1.0270
EUR1.0228
EUR1.0215
EUR4,627,123
4,621,000
EUR5,186,293
5,144,058
EUR5,725,288
5,649,070
EUR1.0013
-
EUR1.0082
-
EUR1.0135
-
EUR1.0013
EUR1.0082
EUR1.0135
225
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam Sterling Liquidity Fund
31 December
2015
31 December
2014
31 December
2013
GBP57
56
GBP56
56
GBP56
56
GBP1.008
-
GBP0.9993
-
GBP0.9996
-
GBP1.008
GBP0.9993
GBP0.9996
GBP57
56
GBP57
56
GBP57
56
GBP1.0172
-
GBP1.0083
-
GBP1.0087
-
GBP1.0172
GBP1.0083
GBP1.0087
GBP1,447,159
1,460,769
GBP1,621,531
1,628,789
GBP1,801,349
1,794,487
GBP0.9907
-
GBP0.9955
-
GBP1.0038
-
GBP0.9907
GBP0.9955
GBP1.0038
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
226
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam Global Liquidity Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD9,426,869
8,694,873
USD9,810,417
8,563,074
USD12,005,023
9,822,578
USD1.0842
-
USD1.1457
-
USD1.2222
-
USD1.0842
USD1.1457
USD1.2222
USD104
100
USD968,859
881,638
USD20,062,924
17,056,514
USD1.0429
-
USD1.0989
-
USD1.1763
-
USD1.0429
USD1.0989
USD1.1763
USD110
100
USD116
100
USD123
100
USD1.1040
-
USD1.1586
-
USD1.2290
-
USD1.1040
USD1.1586
USD1.2290
227
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam US Dollar Liquidity Fund
31 December
2015
31 December
2014
31 December
2013
USD99
100
USD531,110
536,538
USD26,636
26,918
USD0.9931
-
USD0.9899
-
USD0.9895
-
USD0.9931
USD0.9899
USD0.9895
USD100
100
USD99
100
USD99
100
USD1.0016
-
USD0.9936
-
USD0.9917
-
USD1.0016
USD0.9936
USD0.9917
USD5,361,793
5,431,232
USD6,188,985
6,246,955
USD7,342,065
7,367,985
USD0.9872
-
USD0.9907
-
USD0.9965
-
USD0.9872
USD0.9907
USD0.9965
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
228
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam International Multi-Asset I Fund
Share Class A (USD)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial statement
purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class A (EUR)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial statement
purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class A (GBP)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial statement
purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share class B (USD)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial statement
purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
.
229
31 December
2015
31 December
2014
31 December
2013
-
USD78,182
74,059
USD174,683
172,633
-
USD1.0557
-
USD1.0119
-
-
USD1.0557
USD1.0119
-
-
EUR100
100
-
-
EUR0.999
-
-
-
EUR0.999
-
GBP105
101
GBP164,282
165,516
-
GBP1.0441
-
GBP0.9925
-
-
GBP1.0441
GBP0.9925
-
USD101
100
USD95
100
-
USD1.0082
-
USD0.9526
-
-
USD1.0082
USD0.9526
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam International Multi-Asset I Fund (continued)
31 December
2015
Share Class B (EUR)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class B (GBP)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
230
31 December
2014
31 December
2013
-
-
EUR102
100
-
-
EUR1.0246
-
-
-
EUR1.0246
-
-
GBP37,233
36,086
-
-
GBP1.0318
-
-
-
GBP1.0318
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Verso Global Flexible Fund
31 December
2015
31 December
2014
31 December
2013
Net Asset Value
-
USD173,737
USD159,998
Number of Shares in Issue
-
16,554
14,713
Net asset value per share for financial
statement purposes
-
USD10.4954
USD10.8749
-
-
-
-
USD10.4954
USD10.8749
Net Asset Value
-
USD48,943,465
USD57,169,717
Number of Shares in Issue
-
4,219,276
4,784,967
Net asset value per share for financial
statement purposes
-
USD11.6000
USD11.9478
-
-
-
-
USD11.6000
USD11.9478
Share Class A
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
Share Class I
Add: Valuation adjustment
Net asset value per share for shareholder
dealing
231
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
NFB Global Balanced Fund of Funds
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD10,976,529
1,005,943
USD558,970
49,563
USD106
10
USD10.9117
-
USD11.2780
-
USD10.5660
-
USD10.9117
USD11.2780
USD10.5660
USD5,989,653
547,984
USD17,504,694
1,557,176
USD31,393,117
2,976,039
USD10.9303
-
USD11.2413
-
USD10.5486
-
USD10.9303
USD11.2413
USD10.5486
USD97
10
USD4,745,814
477,013
-
USD9.71
-
USD9.9490
-
-
USD9.71
USD9.9490
-
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
232
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam BIFM Emerging Markets Equity Fund
31 December
2015
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2014
31 December
2013
USD158,851
175,930
USD1,890,051
1,951,870
-
USD0.9029
-
USD0.9683
-
-
USD0.9029
USD0.9683
-
USD154,953,300
170,846,268
USD221,716,03
6
228,775,652
-
USD0.9070
USD0.9691
-
USD0.9070
USD0.9691
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Sanlam BIFM World Equity Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD264,494,583
269,869,122
USD323,821,642
318,618,005
USD335,375,969
324,465,099
USD0.9801
-
USD1.0163
-
USD1.0336
-
USD0.9801
USD1.0163
USD1.0336
USD1,780,667
1,799,948
USD432,129,328
423,140,314
USD372,525,701
360,105,969
USD0.9893
-
USD1.0212
-
USD1.0345
-
USD0.9893
USD1.0212
USD1.0345
233
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam BIFM Global Fixed Income Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD29,894,562
31,999,371
USD121,440,230
123,989,813
USD153,749,808
155,490,947
USD0.9342
-
USD0.9794
-
USD0.9888
-
USD0.9342
USD0.9794
USD0.9888
USD1,455,956
1,533,045
USD624,528
630,438
USD99
100
USD0.9497
-
USD0.9906
-
USD0.9915
-
USD0.9497
USD0.9906
USD0.9915
USD95
100
USD11,027,677
11,196,557
-
USD0.9498
-
USD0.9849
-
-
USD0.9498
USD0.9849
-
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
234
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Sanlam BIFM South Africa Inflation Linked Bond Fund
31 December
2015
Share Class B (ZAR)
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
-
31 December
2014
31 December
2013
ZAR780,870,171
76,514,991
-
-
ZAR10.2057
-
-
ZAR10.2057
-
31 December
2015
31 December
2014
31 December
2013
USD96
100
USD95
100
-
-
USD0.9626
-
USD0.9543
-
-
USD0.9626
USD0.9543
-
USD96
100
USD95
100
-
-
USD0.9626
-
USD0.9543
-
-
USD0.9626
USD0.9543
-
USD25,302,321
26,506,516
USD12,680,043
13,336,570
-
-
USD0.9546
-
USD0.9508
-
-
USD0.9546
USD0.9508
-
Mpile Global Equity Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class C
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
235
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Brackenham Global Balanced Fund
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
31 December
2015
31 December
2014
31 December
2013
USD9,492,881
9,892,498
-
-
USD0.9596
-
-
-
USD0.9596
-
-
USD7,846,811
8,076,652
-
-
USD0.9715
-
-
-
USD0.9715
-
-
31 December
2015
31 December
2014
31 December
2013
USD95
100
-
-
USD0.9543
-
-
-
USD0.9543
-
-
USD45,742,625
48,130,955
-
-
USD0.9504
-
-
-
USD0.9504
-
-
APS Global Flexible Fund of Funds
Share Class A
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
236
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
19
Net asset value per share (continued)
Counterpoint Global Equity Fund
Share Class B
Net Asset Value
Number of Shares in Issue
Net asset value per share for financial
statement purposes
Add: Valuation adjustment
Net asset value per share for
shareholder dealing
20
31 December
2015
31 December
2014
31 December
2013
USD14,157,589
14,148,062
-
-
USD1.007
-
-
-
USD1.007
-
-
Cross liability of funds
The Directors are not aware of any such existing or contingent liability at 31 December 2015 or 31
December 2014. The Company’s amended Articles provide for segregated liability between the
various Funds.
21 Contingent liabilities
There were no contingent liabilities as at 31 December 2015 or 31 December 2014.
22
Significant events during the year
During the year the following Funds launched*/closed:
Fund Name
Sanlam International Multi-Asset I Fund
Verso Global Flexible Fund
Sanlam BIFM South Africa Inflation Linked Bond Fund
Sanlam BIFM Emerging Markets Fund
Brackenham Global Balanced Fund
APS Global Flexible Fund of Funds
Counterpoint Global Equity Fund
Status
Closed 02 February 2015
Closed 16 March 2015
Closed 02 March 2015
Closed 27 May 2015
Active – launched 19 March 2015
Active – launched 07 May 2015
Active – launched 02 June 2015
The following Funds issued new offering supplements during the year:
Date of latest revised
offering supplement
31 March 2015
28 April 2015
09 July 2015
Fund Name
NFB Global Balanced Fund of Funds
Sanlam Global Equity Fund
Analytics International Flexible Fund
*Odyssey Global Equity Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company
on 30 October 2015. As of the date of approval of these financial statements, Odyssey Global Equity Fund has not yet been
launched.
237
SANLAM GLOBAL FUNDS PLC
NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2015
22
Significant events during the year (continued)
Effective 28 May 2015, Haydn Franckeiss was appointed as a non-executive Director of the Company.
Effective 07 October 2015, Thomas Murray was appointed to the Board of Directors of SAMI. Following
the appointment, Thomas Murray ceased to be considered an independent Director in the context of the
Corporate Governance Code but continues to be considered an independent Director by the Irish Stock
Exchange.
Effective 14 August 2015, Richard Aslett was appointed as a non-executive Director of the Company.
Richard Aslett is the Chief Executive Officer of SAMI.
Effective 31 December 2015, Peter Murray resigned from his position as a non-executive Director of the
Company. Peter Murray also resigned from his position as a non-executive Director of SAMI.
There were no other significant events during the year.
23
Significant events since the end of the year
Up to the date of approval of the financial statements, there were no other material subsequent events
affecting the Company which necessitate disclosure or revision of the figures included in the financial
statements.
24
Auditors fee
Auditor remuneration for the period was EUR 92,140 excluding VAT (2014: EUR 87,948 excluding
VAT). Auditor remuneration related solely to the audit of the financial statements for the year ended 31
December 2015. There were no other assurance services, tax advisory services or other non-audit
services provided by the auditor of the Company.
25
Off balance sheet arrangements
The Company was not party to off balance sheet arrangements for the twelve months from 1 January
2015 to 31 December 2015 or 1 January 2014 to 31 December 2014.
26
Approval of audited financial statements
The financial statements were approved by the Board of Directors on 21 April 2016.
238
SANLAM GLOBAL FUNDS PLC
SAMI REMUNERATION POLICY (UNAUDITED)
Purpose and objective
Sanlam Asset Management Ireland Limited (“SAMI”) has implemented a remuneration policy (the
“SAMI Remuneration Policy”) in line with the provisions of Article 13 of the Directive 2011/61/EC on
Alternative Investment Fund Managers (the “AIFMD”), in particular Annex II, and of the European
Securities and Markets Authority’s (“ESMA’s”) “Guidelines on sound remuneration policies under the
AIFMD” (the “ESMA Guidelines”).
The purpose of the SAMI Remuneration Policy is to provide clear direction and policy regarding
SAMI’s remuneration policies and practices consistent with the principles set out in the European
Union (Alternative Investment Fund Managers) Regulations 2013 (the “AIFM Regulations”). The SAMI
Remuneration Policy also complies with the overarching remuneration philosophy of the Sanlam
Investments Cluster (the “Cluster Policy”) with local adjustments to adhere to regulations applicable in
Ireland.
The objective of the SAMI Remuneration Policy and the Cluster Policy is to support SAMI’s and the
Sanlam Investments Cluster’s business objectives, and the Sanlam Group corporate values, including
prudent risk management, by attracting, retaining and motivating the key talent to achieve these
outcomes. The SAMI Remuneration Policy has been designed to be consistent with and promote
sound and effective risk management, not encourage excessive or inappropriate risk-taking, eliminate
conflicts of interest and be cognisant of SAMI’s Treating Customers Fairly policy.
Design
In the design of its Remuneration Policy, SAMI has also taken into account the nature, scale and
complexity of its business. In determining the range of activities undertaken, SAMI has given due
consideration to the number of funds under management, the type of investments, the investment
strategies, the investment location, the distribution models and the investor base. Due consideration
has also been given to the resources available to SAMI and the resources and expertise of the various
third parties engaged to support SAMI and carry out certain functions on its behalf.
The SAMI Remuneration Policy applies to those categories of staff, including senior management, risk
takers, control functions and any employee receiving total remuneration that takes them into the same
remuneration bracket as senior management and risk takers, whose professional activities have a
material impact on the risk profiles of SAMI or of the Alternative Investment Funds (“AIFs”), including
the Sanlam Global Funds Plc (the “Company”), to which SAMI has been appointed as AIFM. The
disclosures in this report are made in respect of the SAMI Remuneration Policy and how it applies to
the Company and to the persons to whom portfolio and risk management activities have been
delegated by SAMI. SAMI has the facility to appoint delegates to carry out discretionary portfolio
management activity on its behalf in accordance with its outsourcing policy (the “Investment
Managers”). Disclosures are made in accordance with the AIFMD, the European Commission
Delegated Regulation supplementing the AIFMD and the ESMA Guidelines.
Risk management
SAMI recognises the important role played by sound risk management in protecting stakeholders.
Moreover, SAMI acknowledges that inappropriate remuneration structures could in certain
circumstances result in situations whereby individuals assume more risk on the relevant institution’s
behalf than they would have done had they not been remunerated that way. The SAMI Remuneration
Policy aligns the risk taking behaviour of employees and officers with SAMI’s risk appetite and the risk
appetite in respect of each of the Funds.
239
SANLAM GLOBAL FUNDS PLC
SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED)
Identified Staff
The SAMI Remuneration Policy applies to “Identified Staff”. Under the ESMA Guidelines, Identified
Staff are defined as follows:


Categories of staff, including senior management, risk takers, Control Functions and any
employee receiving total remuneration that takes them into the same remuneration bracket as
senior management and risk takers, whose professional activities have a material impact on
the AIFM’s risk profile or the risk profiles of the AIF that it manages and categories of staff of
the entity/entities to which portfolio management or risk management activities have been
delegated by the AIFM, whose professional activities have a material impact on the risk
profiles of the AIF that the AIFM manages.
Any other employee/persons whose total remuneration is within the same remuneration
bracket as senior managers (e.g. other high earning staff) and who can exert a material impact
on the risk profile of the AIFM or the AIFs under management.
The list of Identified Staff maintained by SAMI is subject to regular review (at least annually by the
Board of Directors of SAMI) and is formally reviewed in the event of, but not limited to:




Organisational changes;
New business initiatives;
Changes in role responsibilities; and
Revised regulatory direction.
Fixed and variable remuneration
In deciding the mix between fixed and variable remuneration, SAMI is mindful of the need to ensure
that the basic pay of staff is adequate to remunerate the professional services rendered taking into
account, inter alia, the level of education, the degree of seniority and the level of expertise and skills
required.
SAMI recognises that variable remuneration is an important tool to incentivise staff. It also gives SAMI
or the Investment Managers (and therefore the Company) flexibility such that, in years in which SAMI
or the Investment Managers perform poorly, variable remuneration may be reduced or eliminated. In
some circumstances, however, variable remuneration, if inappropriately structured, can lead to
excessive risk taking as employees may be incentivised to keep taking risk to maintain or increase
their variable remuneration. Accordingly, there is a clear and well defined pay-for-performance
philosophy that seeks to attract, retain and motivate employees who are accountable and whose
behaviours are aligned with the SAMI’s strategic goals and Treating Customers Fairly principles.
As an AIFM and UCITS Management Company, SAMI’s revenues are based on a percentage of the
NAVs of the Funds, including that of the Company. As a result, its revenues may be more volatile than
other types of businesses. SAMI may also be paid expenses and other revenue from the Funds to
which it provides services. Variable remuneration allows SAMI to reduce the risk that its capital base is
eroded due to the need to pay fixed remuneration costs should trading revenues decline. Owing to the
nature of the contracts SAMI enters into with its Directors and their Designated Persons, the ratio of
variable pay to fixed pay is considered appropriate but is kept under review.
Decision-making process
The level of variable remuneration within SAMI is dependent on the achievement of individual goals,
overall individual performance, the financial results of SAMI, the Sanlam Investments Cluster, the
Sanlam Group and the achievement of Treating Customers Fairly outcomes.
Individual goals, consistent with shareholder goals, are set at the beginning of the year and
performance is measured through Sanlam’s performance management process. Goals set shall be
financial and non-financial in nature. Mistakes resulting in unforced and avoidable losses may be
penalised.
240
SANLAM GLOBAL FUNDS PLC
SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED)
Decision-making process (continued)
Variable remuneration paid is based on the previous year’s financial results and individual
performance outcomes as determined as a result of a formal review of performance carried out in
January following the end of the performance year. This timing allows full year financial results to be
considered along with other non-financial goals and objectives. Individuals are not involved in setting
their own remuneration. Pro-rata payments apply to new appointments based on time in the job over
the financial year.
Ratings are used to differentiate and reward individual performance – but do not pre-determine
compensation outcomes. Compensation decisions remain discretionary and are made as part of the
year end compensation process. Compensation practices do not provide undue incentives for short
term planning or short term financial rewards, do not reward unreasonable risk. Short and long-term
strategic objectives are measured and rewarded to mitigate unreasonable or excessive risk-taking and
provide balance.
Oversight of the Investment Managers’ Remuneration Framework
As AIFM, SAMI ensures that the persons to whom portfolio and/or risk management activities have
been delegated are subject to remuneration arrangements that are equally as effective as those
provisions of the AIFMD. As the discretionary portfolio management activity has been delegated to the
Investment Managers, SAMI shall ensure those staff of Investment Managers who engage in
discretionary portfolio management activity are subject to a remuneration framework consistent with
the provisions of AIFMD. SAMI will assess on a regular basis the appropriateness of the Investment
Managers’ remuneration framework, the applicable policies and procedures in this regard for
continuing compliance with AIFMD, and ensure that updates are made as necessary in line with the
applicable regulations. SAMI shall determine, on a case by case basis, whether or not the scope of the
mandate granted to a particular delegate is such that the relevant staff of the Investment Manager
constitute “Identified Staff” for the purposes of SAMI’s Remuneration Policy.
Proportionality
SAMI, as AIFM, may take a proportionate approach, both in respect of how the SAMI Remuneration
Policy shall apply to itself and to any relevant delegates (e.g. Investment Managers), in order to ensure
compliance in a manner and to the extent that is appropriate to the size and internal organisation of the
relevant entity and the nature, scope and complexity of its activities. In assessing what is
proportionate, SAMI shall have regard to the provisions contained in the ESMA Guidelines and will
focus on the combination of all the criteria mentioned therein.
Quantitative Remuneration Disclosure
SAMI is required under the AIFMD to make quantitative disclosures of remuneration. The AIFMD
requirements on quantitative remuneration disclosures apply only to full performance periods and are
first applicable to the first full performance period following the authorisation of the AIFM. The financial
year and performance period of SAMI ends on 31 December which coincides with the financial year of
the Company. Accordingly the quantitative remuneration disclosures provided in respect to SAMI as
AIFM relate to the year ended 31 December 2015.
The disclosures set out below are made in line with SAMI’s interpretation of currently available
regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice
develops, SAMI may consider it appropriate to make changes to the way in which quantitative
remuneration disclosures are calculated.
241
SANLAM GLOBAL FUNDS PLC
SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED)
Quantitative Remuneration Disclosure (continued)
The table below provides an overview of the following:



Aggregate total remuneration paid by SAMI to all employees;
Aggregate total remuneration paid by SAMI to senior management and other Identified Staff
who have a material impact on the risk profile of the Company*; and
The allocation of aggregate total remuneration paid by SAMI to senior management and other
Identified Staff which is attributable to the Company**.
Total remuneration paid by
SAMI during financial year
Total remuneration paid to
employees who have a
material impact on the risk
profile of the Company:
Senior management (including
executives)
Other Identified Staff*
Allocation of total
remuneration paid to the
employees attributable to the
Company**:
Senior management (including
executives)
Other risk takers/other
identified staff
2015
2015
2015
Number of
beneficiaries
Fixed
remuneration paid
US$
Variable
remuneration paid
US$
2015
Carried
interest paid
by the AIF
US$
15
1,463,922
744,188
Nil
6
N/A
886,212
N/A
595,742
N/A
Nil
Nil
6
236,771
159,166
Nil
N/A
N/A
N/A
Nil
*There are no Other Identified Staff of the AIFM, in addition to Senior Management of the AIFM, who would have a material
impact on the risk profile of the Company.
**As Identified Staff of the AIFM typically provide both AIFMD and non-AIFMD related services in respect of multiple funds,
clients and functions of the AIFM and across the wider Sanlam Group, the allocation of aggregate total remuneration paid which
is attributable to the Company is calculated based on total assets of the Company which are managed by SAMI as a proportion
of the total assets under the management of SAMI at 31 December 2015.
Remuneration Disclosures in respect to Identified Staff of Delegates
Many of the Investment Managers to which discretionary portfolio management activity has been
delegated by SAMI have financial year ends and performance periods that do not coincide with the
financial year and performance period end of SAMI. As a result, remuneration disclosures in respect to
Identified Staff of Delegates have not been provided in these financial statements as, for many of
those Investment Managers, the first full performance periods, following the authorisation of SAMI as
the AIFM, have not yet ended. Accordingly, information currently available to SAMI as AIFM in respect
to remuneration of Identified Staff of Delegates would not be relevant to the AIFs for this financial year
under review or provide a meaningful basis for comparison.
Notwithstanding the foregoing, the total remuneration for services rendered paid to the AIFM and each
Delegate out of the assets of the relevant Fund in respect of this financial year is disclosed in the
financial statements.
242
SANLAM GLOBAL FUNDS PLC
LEVERAGE (UNAUDITED)
Each Fund may employ leverage and borrow cash strictly in accordance with its stated investment
policy or investment strategy. Consistent with its investment objectives and policy, a Fund may utilise a
variety of exchange traded and over-the-counter (OTC) derivative instruments such as swaps, options,
futures and forward currency transactions as part of its investment policy as more fully set out in each
Fund’s Supplement. The use of derivatives may expose a Fund to a higher degree of risk. In particular,
derivative contracts can be highly volatile, and the amount of initial margin is generally small relative to
the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively
small market movement may have a potentially larger impact on derivatives than on standard
underlying bonds or equities. Leveraged derivative positions can therefore increase a Fund’s volatility.
The use of borrowings and leverage has attendant risks and can, in certain circumstances,
substantially increase the adverse impact to which a Fund’s investment portfolio may be subject. For
the purposes of this disclosure, leverage is any method by which a Fund’s exposure is increased,
whether through borrowing cash or securities, or leverage embedded in derivative contracts or by any
other means. The AIFMD prescribes two required methodologies, the gross methodology and the
commitment methodology (as set out in AIFMD Level 2 Implementation Guidance), for calculating such
exposure. These methodologies are briefly summarised below.
The commitment methodology takes account of the hedging and netting arrangements employed by a
Fund at any given time (purchased and sold derivative positions will be netted where both relate to the
same underlying asset). This calculation of exposure includes all Incremental Exposure as well as a
Fund’s own physical holdings and cash.
By contrast, the gross methodology does not take account of the netting or hedging arrangements
employed by a Fund. This calculation of exposure includes all Incremental Exposure as well as the
Fund’s own physical holdings; cash is however excluded from the calculation under the gross
methodology.
The AIFMD requires that each leverage ratio be expressed as the ratio between a Fund's total
exposure (including any Incremental Exposure) and its net asset value. Using the methodologies
prescribed under the AIFMD and implementing legislation, the Company has set a maximum level of
leverage, taking into account atypical and volatile market conditions. This maximum level and the
actual leverage in respect to each Fund of the Company are disclosed in the table below and overleaf:
Fund Name
Analytics
International
Flexible Fund
Sanlam Global
Balanced Fund
Sanlam Global Best
Ideas Feeder Fund
Sanlam Global
Equity Fund
Sanlam Euro
Liquidity Fund
Sanlam Sterling
Liquidity Fund
Sanlam Global
Liquidity Fund
Commitment leverage
Maximum
Actual as at 31
permitted
December
2015
Gross Leverage
Maximum
Actual as at 31
permitted
December
2015
1:1
1:1
2:1
0.91:1
1:1
1:1
1:1
0.99:1
1:1
1:1
1:1
1:1
1:1
1:1
2:1
0.99:1
1:1
1:1
1:1
0.72:1
1:1
1:1
1:1
0.74:1
1:1
1:1
1:1
0.97:1
243
SANLAM GLOBAL FUNDS PLC
LEVERAGE (UNAUDITED) (CONTINUED)
Fund Name
Sanlam US Dollar
Liquidity Fund
Verso Global
Flexible Fund*
Sanlam BIFM
Emerging
Markets Equity
Fund*
Sanlam BIFM World
Equity Fund
Sanlam BIFM
Global Fixed
Income Fund
NFB Global
Balanced Fund
of Funds
Sanlam BIFM South
Africa Inflation
Linked Bond Fund*
Mpile Global
Equity Fund
Brackenham Global
Balanced Fund
APS Global Flexible
Fund of Funds
Counterpoint Global
Equity Fund
Odyssey Global
Equity Fund**
Commitment leverage
Maximum
Actual as at 31
permitted
December
2015
Gross Leverage
Maximum
Actual as at 31
permitted
December
2015
1:1
1:1
1:1
0.72:1
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1:1
1:1
1:1
0.99:1
1:1
1:1
1:1
0.99:1
1:1
1:1
1:1
0.95:1
N/A
N/A
N/A
N/A
1:1
1:1
1:1
0.99:1
1:1
1:1
2:1
0.62:1
1:1
1:1
1:1
0.95:1
1:1
1:1
2:1
0.89:1
1:1
N/A
2:1
N/A
*Verso Global Flexible Fund, Sanlam BIFM Emerging Markets Equity Fund and Sanlam BIFM South Africa Inflation Linked Bond
Fund closed during the year ended 31 December 2015.
**Odyssey Global Equity Fund was approved by the Central Bank of Ireland on 30 October 2015. However, as of the date of
approval of these financial statements, the Fund has not yet launched.
244
SANLAM GLOBAL FUNDS PLC
NOTICE OF GENERAL MEETING
OF
SANLAM GLOBAL FUNDS PLC
Notice is hereby given that the annual general meeting of Sanlam Global Funds Plc will be held at the
offices of Sanlam Asset Management (Ireland) Limited, Beech House, Beech Hill Road, Dublin 4 on 24
June 2016 at 11.15 a.m. for the following purposes:



To receive and consider the financial statements for the year ended 31 December 2015 and the
reports of the Directors and auditors thereon.
To appoint Ernst & Young as auditors of the Company.
To authorise the Directors to fix the remuneration of the auditors.
And to transact any other business which may properly be brought before the meeting.
By Order of the Board
Sanlam Asset Management (Ireland) Limited
Dated 21 April 2016
Registered Office:
Beech House, Beech Hill Road, Dublin 4.
A member entitled to attend and vote may appoint a proxy to attend, speak and vote on his behalf. A
proxy need not be a member of the Company.
245
SANLAM GLOBAL FUNDS PLC
PROXY FORM
SANLAM GLOBAL FUNDS PLC
I/We………………………………………………………………………………………………………………
Please insert your name in block capitals
………………………………………………………………………………………………………………………
Please insert your name in block capitals
being a Shareholder in Sanlam Global Funds Plc hereby appoint
………………………………………………………………………………………………………………………
Please insert the name of someone who can attend on your behalf or else leave this space blank –
see notes below
or failing him/her the Chairman of the Meeting or failing him/her Gerardine Kelly
to vote on my/our behalf at the Meeting of the shareholders of the Company to be held on 24 June
2016 at 11.15 a.m. and at any adjournment thereof. I/We instruct my/our proxy to vote in the manner
indicated below in respect of each of the Resolutions. Failing any specific instruction, the proxy will
vote at his/her complete discretion.
IN FAVOUR OF / AGAINST
Please tick appropriate box
1. To receive and consider the financial statements for the year ended 31 December
2015 and the reports of the Directors and auditors thereon.
2. To appoint Ernst & Young as auditors of the
Company.
3. To authorise the Directors to fix the remuneration of the auditors.
Signature ………………………………………………………………………………….
Date ………………………………
Notes:
A Shareholder entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend
and vote instead of him/her. If you wish to appoint as your proxy some person other than the Chairman
of the meeting or Gerardine Kelly, insert in block capitals the full name of the person of your choice in
the space provided. A proxy need not be a Shareholder of the Company.
The proxy will exercise his/her discretion as to how he/she votes or whether he/she abstains from
voting on the resolutions referred to above if no instruction is given of the resolutions, and on any
business or resolution considered at the Meeting other than the resolutions to above.
This proxy form (and the power of attorney or other authority, if any, under which it is signed or a
notarially certified copy thereof) must be deposited at the registered office of the Company, Beech
House, Beech Hill Road, Dublin 4, Ireland attention Gerardine Kelly (or fax to: 353 1 205 3521) no later
than the time appointed for the meeting. If the appointer is a corporation, this proxy form must be
executed under the seal or under the hand of some officer or attorney duly authorised on its behalf. In
the case of joint holders, any one holder may sign. The completion and return of the proxy form will not
preclude Shareholders from attending and voting at the Meeting should they decide to do so.
246
SANLAM GLOBAL FUNDS PLC
Issued by
Sanlam Asset Management (Ireland) Limited
Beech Hill House
Beech Hill Road
Dublin 4
Ireland
247