1. Transformation Retirement Industry Asief Mohamed ABSIP FSC Council Member CIO Aeon Investment Management

2. Why Transformation? 10% owned 90% of Wealth Inequality Gap increasing World Bank Gini coefficient South Africa 65 USA 41 World 43 (1820) to 68 BBBEE is Voluntary Local procurement, job creation, skills Reducing inequality gap Poverty reduction ABSIP - grow the economic pie

3. Investment Management FSC Report Source: FSC Council Draft 2013 Annual Report Investment Management firms achieved Level 3 BBBEE rating Expect only firms with good scores to report Only 8 out of 75 investment management firms reported

4. Investment Management a Proxy 20 Years of Democracy Key Black Investment Professionals 15% at Top 10 firms Key Women Investment Professionals 12% at Top 10 firms 27four Bee.conomics 2014 survey

5. What can be done by IRFA? IRFA Full constituent member of Financial Sector Charter Council BBBEE should be integral part of ESG Public Policy Influence Apply BBBEE Generic Scorecard Except Socio-Economic & Enterprise Development

6. dti BBBEE Generic Scorecard for Retirement & Umbrella Funds Ownership Measure member asset or liability by gender & race Enable companies to take credit for worker ownership via retirement funds Encourages wealth distribution to workers and increased productivity Higher ownership threshold targets to be set Management Control Trustees and executive management Procurement Measure all aspects of the investment value chain including brokerage, custodians, administrators and investment management firms etc. Skills development Socio economic & Enterprise development should be exempt