DIRECTION DETERMINES DESTINATION

NEW BUSINESS PARTNER

– Mettle Investments owned by Tradehold

– Tradehold’s controlling shareholder is Christo Wiese

– Dynamic, boutique and entrepreneurial

– No distractions, business as usual

As Christo Wiese once said, “Every big business starts as a small business. It’s all about walking across the street. It’s about opportunity and opportunism.”

As of the 1st of June 2017, Mettle Investments – a financial services company owned by the listed entity, Tradehold Limited, of which Christo Wiese is the controlling shareholder, acquired a shareholding in our business.

ABOUT METTLE

Mettle Investments was established in 1995 as a specialist financial services company and has, since its inception, been recognised for innovation in the creation of specialised financing solutions for clients, ranging from international corporates to small to medium enterprises locally, as well as individuals.

We are very excited about our new business partner. They are a very dynamic, boutique and entrepreneurial company, and our DNA and culture are a perfect and easy match. Mettle Investments is a strategic partner to catapult GraySwan to the next level where we will compete more aggressively in the institutional investment advisory and the private client wealth management industry.

BUSINESS AS USUAL

Importantly, the transaction brings no distractions to our business and it is business as usual, albeit that we have great aspirations for our future. Our brand, name, team and the range of services remains exactly as is and we continue to control the daily operations of our business.

We are delighted to welcome our new business partner as we look forward to taking the road less travelled with them.

PRIVATE CLIENT WEALTH MANAGEMENT

– Successfully extended our proven advisory approach to private investors

– Launch of Fund of Funds (FoFs)

– FoFs not available to institutional advisory clients

– Investment of our own monies

During the past four years we have successfully extended our proven institutionalised investment advisory approach to private investors. We now service the entire spectrum of investors and all our clients have access to our best views and our cost efficient, and most importantly, top performing track records.

On the 1st of July 2017 we are launching three Fund of Funds (FoFs) that will invest in underlying collective investment schemes for our private clients. A Fund of Funds (FoFs) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities.

Our FoFs will not be applicable or available to our institutional advisory clients as our institutional clients utilise pooled or segregated accounts, and due to the sheer size of their assets, they can already invest at very low and cost-effective rates which are lower than the retail market. Our FoFs has been designed and costed for the private client retail market.

Not only will we invest our own monies in these FoFs, but our new business partner will also seed such portfolios with investment capital to ensure that we are fully aligned with our private clients. Our GraySwan FoFs will be diversified across investment managers, asset classes, and local and offshore geographies.

All our clients have access to our best views.

TAX EFFICIENT, LOWER COST SOLUTION

– Outperform peers at lower costs

– Tax advantageous structure

– Disciplined, guarded – but more flexible, nimble

We have always done the right thing for the right reasons and that is not going to change.

If you were climbing Table Mountain and you could increase your chances of reaching the summit faster by slightly reducing the weight of your back pack without leaving anything out, would you do that? Physical weight puts a material drag on an investor’s performance potential, thereby reducing their chances of reaching the ultimate goal as fast as possible.

COSTS DRAG PERFORMANCE

Costs associated with investments, especially in the retail private investor market is a major factor which puts a drag on the financial performance of investments. We realised that we had to find a superior and cost effective investment solution for our private clients within an industry which is rife with sub-standard performing products and extremely high and opaque fees.

TAX EFFECTIVE ENVIRONMENT

Through our FoFs we will be offering our private clients investment solutions at an attractive fee. Furthermore, such portfolios will be more tax advantageous than our current tailormade investment advisory solutions. So, if we can continue to outperform our peers (as we have done over the past six years) and at a lower cost than our peers, and within a tax effective structure, then it’s a win-win for all our clients.

OBJECTIVITY, INTEGRITY AND EXCELLENCE

Our private clients will be able to now consider both tailormade advisory solutions or our FoFs or even a blend of both. Most importantly, we will always do the right things in the right way for our clients and we will always maintain absolute objectivity, integrity and excellence in everything we do.

DISCIPLINED, GUARDED – BUT MORE FLEXIBLE, NIMBLE

The next few years of investing will be even tougher than the past three years, which simply emphasises the importance of applying a disciplined and guarded – but more flexible, and nimble investment approach. Within such FoFs we can make changes to our private client portfolios more timeously and tax efficiently than within an advisory portfolio.

OUR TEAM

– Experience, excellence

– Team based investment approach

– New senior research analyst appointment

Our team is one of the most experienced investment advisory and wealth management teams in the industry. Our collective investment experience exceeds 110 years of advising and managing most of the largest and most prestigious investor assets in South Africa.

Not only have we successfully consulted to most of the largest institutional funds in South Africa but we have also previously managed many of these Fund’s assets whilst working for Sanlam’s offshore investment management business. Our wealth of experience over the past two decades in both investment consulting and investment management enables us to understand our clients needs. Very few investment consulting teams have actual investment management experience. This places us in the superior position to implement not only optimal but also practical investment strategies and to negotiate mandates and fee structures that is most beneficial to our clients.

NEW SENIOR RESEARCH ANALYST

To further enhance our investment team, we have appointed Robert Robinson with effect from the 1st of May 2017 as a senior research analyst. Robert has worked in offshore investment management for the past 10 years. Having previously worked together with the senior investment members of the GraySwan team, he was a perfect fit to the team.

OUR CHARITABLE TRUST

– Purpose beyond profit

– 10% of profits to our community

– Walk with a purpose

Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”

GraySwan’s philosophy of purpose beyond just making a profit remains in our DNA. We always aspire to make a significant difference in the lives of our direct community. As a result, we have, since the inception of our business, channelled 10% of our profits via our GraySwan Charitable Trust to various initiatives. Via our Trust we make a meaningful difference in the lives of the less privileged.

WALK WITH A PURPOSE

One of the many highlights over the past year was the launch of a school shoe donation project called ‘Walk with a Purpose’. We managed, through the assistance of donor schools, to distribute 1 800 pairs of school shoes and tekkies to less privileged schools in our direct community. We also managed to raise R120 000 with the help of various private and corporate donors which was used to assist less privileged schools with critical needs. This is a continuing project and we aim to distribute 3 000 pairs of shoes this year as well as raise another R300 000.

BACK TO THE FUTURE

– Strengthened our business, our team, our processes

– Absolute integrity, ruthless objectivity and independent thinking

– Doing the right things, always

As they say, nothing great is created overnight. Growth is a complex process of continuous change. It requires the right mindset, the right procedures, experimentation and an enabling environment. What we have been working on since the inception of our business, and more specifically, the past year, has strengthened our business, our team, our processes and our leading edge offering to not only our institutional clients but also our private clients.

MORE THAN AN INVESTMENT BUSINESS

As you have become accustomed to, we are more than just an investment business. We care and we always go the extra mile. We are your long-term investment thinking partner and we will do everything to make you succeed in your quest to financial freedom and success.

YOUR INTERESTS WILL ALWAYS COME FIRST

Be assured that your interests will always come first at GraySwan. We will continue to service our clients with absolute integrity, ruthless objectivity and independent thinking. Our determination to excel and our persistent drive to improve our offering, as well as our pride in the quality of our work, will remain our core value drivers.

We trust that you are as excited about the news. Should you have any questions in this regard, we would value the opportunity to meet with you to provide you with more insight.

On behalf of the GraySwan team.

Best regards,

DUNCAN THERON


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