Disclaimer and limitation of liability
Although NAFF has taken care to ensure that the content on this website is true and accurate, NAFF cannot be held responsible for any inaccuracies in the information herein.
The information and content (collectively ‘information’) provided herein are provided by NAFF as general information. NAFF does not guarantee the suitability or potential value of any information or particular investment source. Any information herein is not intended nor does it constitute financial, tax, legal, investment, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Adviser. In the absence of a full needs analysis in respect of a particular investor, the investor understands that there may be limitations on the appropriateness of any information in this website with regard to the investor’s unique objectives, financial situation and particular needs.
The use of this website and the online services is entirely at your own risk. You assume full responsibility for the risk or loss resulting from your use of this site and your reliance on the material and information contained on it.
NAFF and its affiliates, shareholders, its respective directors, agents, consultants or employees shall not be responsible and disclaims all loss, liability or expenses of any nature whatsoever which may be attributable directly, indirectly or consequentially to the use of the information provided and relation to your use of this website or the online services or the information contained on this website or your inability to use this website or the online services. This includes, without limitation, any direct, indirect, special, incidental, consequential or punitive damages, whether arising out of contract, statute, and delict or otherwise and regardless of whether we were expressly advised of the possibility of such loss or damage.
The content of the website is provided without any express or implied warranty of any kind whatsoever. In particular, NAFF does not warrant that it is appropriate or suitable for any particular purpose, that it is complete or accurate, or that it or any hardware on which it is stored is virus-free.
Without derogating from the generality of the above, we will not be liable for:
Any interruption, malfunction, downtime or other failure of the site or online services, our system, databases or any of its components, for whatever reason;
Any loss or damage arising from your orders, investment decisions, purchases or disposal of goods and services, including financial instrument(s) or currency, from third parties, based on the information provided on this site;
Any loss or damage with regard to customer data or other data directly or indirectly caused by malfunction of NAFF’s system, third party systems, power failures, unlawful access to or theft of data, computer viruses or destructive code on our system or third party systems; programming defects; negligence on our part or caused by the year 2000 computer problem;
Any interruption, malfunction, downtime or other failure of goods or services provided by third parties, including, without limitation, third party systems such as the public switched telecommunication service providers (currently Telkom), internet service providers, electricity suppliers (currently Eskom).
Local authorities and certification authorities
Any event over which we have no direct control.
Warrantee by you
You hereby warrant that you have full legal capacity required to enter into a contractual relationship and that you will be bound by contractual terms. All minors must be assisted by their legal guardians when reading these conditions and entering into any contractual relationship. If you are unsure regarding your legal capacity to enter into agreements, contact someone able to provide you with this information before you continue using this site.
You hereby warrant that all information provided by you to NAFF via the website and in writing will in all respects be accurate, current and complete.
You will fully disclose all material and relevant facts to NAFF, a breach of which may lead to any contract or any transactions arising from such contract being rendered void or subject to cancellation.
Indemnity
You agree to indemnify and hold harmless NAFF and its affiliates, shareholders, its respective directors, agents, consultants, employees and any third party information providers from and against all losses and expenses (including attorney and own client costs), resulting from any failure to adhere to these terms of use by you.
Electronic Transactions and Instructions
The Client agrees that NAFF is authorised, but not obliged, to accept and implement all signed instructions, applications or other communication received by facsimile, e-mail or other form of electronic communication from, or which may purport to be from, the Client, or from an authorized person/agent on behalf of the Client.
NAFF shall be entitled to treat such instruction, application or other communication as fully authorised by and binding upon the Client and NAFF shall be entitled (but not bound) to take such steps in connection with or in reliance upon such instruction, application or other communication as NAFF may in good faith consider appropriate.
In consideration of NAFF acting in accordance herewith, the Client undertakes to indemnify NAFF and to keep NAFF indemnified against all losses, claims, actions, proceedings, demands, damages, costs and expenses of whatever nature and howsoever arising, out of or in connection with NAFF acting on such instruction, application or other communication referred to above.
Dispute Resolution
Subject to the relevant service terms, in the event of a dispute arising as a result of your use of the website or on the interpretation of these conditions or on any matter which in terms of the conditions requires agreement by the parties (other than where an interdict is sought or urgent relief may be obtained from a court of competent jurisdiction), will be submitted to and decided by arbitration.
Certificate
A certificate signed by any one of NAFF’s directors will constitute prima facie proof of the operation or functionality of the online services or any part thereof and the contents of any information displayed on the site on a given date.
Our address for all notices and service of legal process or chosen domicilium citandi et executandi (address for any legal notice), is: Director, Middle Office, 17 Melrose Boulevard, Melrose Arch, 2196
Governing Law
The conditions will be governed and construed in accordance with the law of the Republic of South Africa.
NAFF ASSET MANAGEMENT LIMITED, NAFF CREDIT PARTNERS (PROPRIETARY) LIMITED,
NAFF MULTI-MANAGER LIMITED, NAFF WEALTH MANAGEMENT LIMITED,
NAFF Asset Management Limited is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 26/10/719)
NAFF Credit Partners (Proprietary) Limited is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 24751)
NAFF Multi-Manager Limited is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 26/10/763)
NAFF Wealth Management Limited is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (Licence No. 26/10/590)
NAFF COLLECTIVE INVESTMENTS (RF) LIMITED
Statutory Disclosure and General Terms and Conditions:
Net Asset Value (NAV)
Prices are calculated on a NAV basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio divided by the number of participatory interests in issue. Permissible deductions include brokerage, Securities Transfer Tax (STT), auditor’s fees, bank charges, trustee/custodian fees and the service charge levied by NAFF Collective Investments (RF) Limited (“the Manager”).
Upfront Manager Charges
The upfront manager charge is deducted from the full investment value and the remaining amount is allocated to the selected investment options. Commission paid to Intermediaries is incorporated in the upfront manager charge. Any additional investment will incur an upfront manager charge. The charge is set at a maximum of 5.70% of investments made in the equity portfolios and the asset allocation portfolios, and may range from 1.14% to 3.42% in the fixed-interest portfolios. These charges are all VAT inclusive. In the Standard Bank Money Market Fund, an upfront manager charge of 0.29% is levied on debit order investments and lump sums below R10 000.
Service Charge (levied monthly incl. VAT)
The service charge for the individual portfolios is accrued daily and levied monthly on the market value of the portfolio. Certain portfolios have a performance based service charge which shall be a variable amount that may either increase or decrease, depending on whether the Manager has added or detracted value for the portfolio relative to a passive investment in the portfolio’s benchmark. Please refer to the latest fact sheet(s) for more details. The service charge is normally deducted from the income received by the portfolios. The Portfolio Charges document (including Performance Fee Frequently Asked Questions) is available on
www.NAFF.com (“Individuals” section).
Performance Fees
Where fees are not accrued daily, the fee accrual is lagged and rolling measurement periods are used, certain participatory interest holders may carry a lower proportion of the performance fee relative to performance enjoyed, whilst other Investors may carry a higher proportion of the performance fee relative to performance enjoyed. Where underlying portfolios charge implicit performance fees (i.e. implicit in their unit prices), participatory interest holders may carry these performance fees regardless of whether the top-tier portfolio or mandate has out-performed its own benchmark. The Portfolio Charges document (including Performance Fee Frequently Asked Questions) is available on
www.NAFF.com (“Individuals” section).
Total Expense Ratio
The Total Expense Ratio (TER) of a portfolio is a measure of the portfolio’s assets that were relinquished as operating costs expressed as a percentage of the daily average value of the portfolio calculated over a period of usually a financial year. Typical expenses which are deducted from a portfolio include service charges, taxes, trustee fees and audit fees. The TERs can be located on the Fact Sheets and the Portfolio Charges document (including the Performance Fee Frequently Asked Questions), which is available on
www.NAFF.com (“Individuals” section).
Switching
A "switch" involves selling participatory interests (units) in one portfolio and investing the proceeds in another portfolio. NAFF Collective Investments (RF) Limited does not normally charge upfront manager charges twice, other than in the instance where the original entry was into a portfolio with lower charges than the portfolio into which the Investor will be investing. Accordingly, the Investor will have to pay in the difference in the upfront manager charges. However, the Investor and the Intermediary may agree on a different arrangement to that mentioned above, in which case an upfront manager charge as agreed, between the Investor and the Intermediary, will be charged on the switch transaction. As costs may change from time to time, please consult with your authorised Intermediary.
Income Distributions
Income distributions are made at regular intervals for all portfolios. Portfolios either declare distributions monthly, quarterly (31 March, 30 June, 30 September, 31 December), half-yearly (30 June, 31 December), or annually (31 December). These distributions are paid by no later than the last working day of the following month. Please refer to the latest fact sheet(s) for more details. Distribution payments will only be made if the value of the payment is above R50. From 1 February 2008, no upfront manager charges will be levied on reinvestments.
Dividend Income Portfolios
The Manager has received a circular, CISCA Circular No.11, from the Registrar of Collective Investment Schemes regarding a joint investigation of National Treasury, SARS and the FSB, which is currently in progress with regard to dividend income fund type portfolios. The Manager is obliged, in terms of this circular, to bring the following to your attention with regard to this investigation. The outcome of the investigation could affect certain structures and special purpose vehicles (SPVs) used by underlying investments of these types of portfolios, which may result in possible adverse tax consequences, and may require amendments to existing legislation. The abovementioned regulators still have concerns which could impact negatively on the future of these portfolios and the continuation of these portfolios can therefore not be guaranteed. The Manager however do not believe that there is any current cause for concern regarding the NAFF Dividend Income Fund and should there be a more definitive outcome from the investigation investors in our NAFF Dividend Income Fund will be informed timeously of any legislative changes that may affect their investment.
Money Market Portfolios
The price of each participatory interest (unit) is aimed at a constant value for all Money Market Portfolios. The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the portfolio.
NAFF Collective Investments (RF) Limited will endeavour to give Investors access to their cash within a period of 48-hours, provided that there are no outstanding administrative issues between the Manager and the Investor, that the Investor has a bank account with Standard Bank, and that the Investor’s repurchase request has reached the Manager before 12h30 on any business day. The Manager will not accept responsibility for not being able to make payment to the Investor within 48 hours if the above-mentioned requirements have not been met, or the delay was caused due to circumstances beyond the control of the Manager. The minimum transaction amount for this portfolio is R2'000. The initial minimum lump sum investment is R25'000. If the balance of the account is below R2'000, any repurchase instruction will result in the total balance being redeemed and the account will be closed. If the balance of the account is above R2'000, any repurchase request below R2'000 will result in the minimum transaction amount of R2'000 being redeemed. Any additional investment below R10'000 will be charged an upfront manager charge of 0.25% (excl. VAT). The reinvestment of income does not attract this charge.
Repurchase and Income Distribution Payments
Repurchase and income distribution payments are not transferable (will only be paid into a bank account in the name of the Investor) and can only be made electronically.
Shari'ah Compliant Portfolios
In terms of Shari’ah Law, NAFF will purify the dividend income earned by automatically deducting all non- permissible income from the total dividend income distribution due to the investor. The balance, after the deduction of non-permissible income, is then applied according to the Investor’s further instructions, i.e. either reinvested or paid to the Investor’s bank account. All non-permissible income deducted will be donated on behalf of investors to charitable organizations, as directed by the Shari’ah Supervisory Board. Non-permissible income sources include interest income earned from companies invested in. The quantum of non-permissible income will be determined by the Shari’ah Supervisory Board which will typically be a percentage of the total dividend income that accrued to the portfolio, e.g. 5%.
For example, the Shari’ah Board determined that 5% of all dividends that accrued to the portfolio are non-permissible. A proportionate amount of the dividend income due to the investor (i.e. 5%) will be deemed to be non-permissible and will be deducted from the total dividend income distribution due to the investor and donated on behalf of the investor to charitable organisations, as directed by the Shari’ah Supervisory Board. Investors must take note that their statements and the statutory tax certificates (I.T. 3 (b)) will indicate the total income distributed to them, the portion of non permissible income deducted from the total income distribution and donated to a charity on their behalf, and the net amount that was distributed to them according to their instructions, i.e. reinvested or paid to the investor’s bank account. It is also important to note that certain permissible income received by the portfolio is deemed to be interest income in terms of the Income Tax Act, as amended from time to time, and will be reflected as such. Investors are accordingly advised to seek appropriate tax advice as to the potential tax consequences they may be subjected to.
General
Collective investment schemes in securities are generally medium to long term investments
The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future
An investment in the participations of a collective investment scheme in securities is not the same as a deposit with a banking institution
Where exit charges are applicable, participatory interests are redeemed at the net asset value where after the exit charge is deducted and the balance is paid to the Investor
A portfolio of a collective investment scheme in securities may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity as a result of the redemption of participatory interests, and may also engage in scrip lending
Where different classes of participatory interests apply to certain portfolios, they would be subject to different charges
A schedule of charges and maximum commissions is available on request from the Manager
Commission and incentives may be paid and if so, would be included in the overall costs
Ongoing commission may be paid to Intermediaries. Such ongoing commission, if applicable, will be paid by the Manager from the service charge paid to it. Details of such ongoing commission paid by the Manager to the Intermediary of record in respect of your investment is available on request from the Manager
The exposure limit to a single security in certain portfolios can be greater than is permitted for other portfolios in terms of the Collective Investment Schemes Control Act, 2002. Details are available from the Manager
A Fund of Funds portfolio only invests in other portfolios of collective investment schemes, which levy their own charges, which could result in a higher cost structure for these portfolios
A Feeder Fund portfolio only invests in the participatory interests (units) of a single portfolio of a collective investment scheme, apart from assets in liquid form
The Manager reserves the right to close certain portfolios from time to time in order to manage them more efficiently. More details are available from the Manager
The holdings of offshore investments in certain portfolios are subject to current South African Reserve Bank Regulations
Forward pricing is used
Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down
The Manager undertakes to repurchase participatory interests at the price calculated according to the requirements of the Collective Investment Schemes Control Act, 2002, and on the terms and conditions of the relevant Deeds. Payment will be made within 14 days of receipt of a valid repurchase form. Please note that there is a 21-day clearance period for cheques and direct deposits, a 45-day clearance period for debit orders, and a 60-day clearance period for once-off debit orders
Any capital gain realised on the disposal of a participatory interest in a collective investment scheme is subject to Capital Gains Tax (CGT). The Manager is obliged to report on the weighted average cost method for CGT purposes
All portfolios are valued on a daily basis at 15h30 with the exception of some of the Fund of Funds portfolios and Feeder Fund portfolios, which are valued at 17h00. Investments and repurchases will receive the price of the same day if received prior to 15h30
The Investor confirms that neither the Manager nor any of its staff provided him/her with any advice and that he/she has taken particular care to consider on his/her own or with the assistance of his/her authorised Intermediary whether the investment is appropriate considering his/her unique objectives, financial situation and particular needs
All bank accounts supplied for the duration of this investment will be verified with the relevant banks
Conflicts of Interest
NAFF shall, wherever possible avoid situations causing a conflict of interest. Where it is not possible to avoid such conflict: NAFF shall advise the Client, of such conflict in writing at the earliest reasonable opportunity and shall mitigate the conflict of interest in accordance with its Conflict of Interest Management Policy. A copy of this Policy is available on the NAFF website.
NAFF is part of the Standard Bank Group of companies and both the Liberty Agency and SBFC intermediaries are permitted to sell various NAFF products. Stonehouse Capital holds equity interests in various FSP’s which may result in an unavoidable conflict of interest. Clients of StoneHouse Capital partners, are encouraged to familiarize themselves with the conflict of interest disclosures, as required by their FAIS license, prior to engagement.
The Client may at any time terminate the Intermediary’s appointment. It is the Client’s responsibility to advise NAFF of such termination in writing. Upon receipt of such notification NAFF will cease payment of any further service charge to the Intermediary. However the client understands that this will not result in a lower annual service charge as the full service charge will now be paid to NAFF.
Statements
Investors in the Standard Bank Money Market Fund will receive consolidated statements monthly, or quarterly should their investment value fall below R25 000
All other Investors will receive consolidated statements quarterly
IT3B and IT3C documents will be sent to Investors by May each year
Cooling off rights
Due to the nature of this product, cooling off rights are not offered on this product.
Query Support & Middle Office:
NAFF Compliance and Complaints
21 Cuck Drive
1 800 8008135
