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      Addendum to General Business Terms

      Onshore Unit Trusts

       

      This Addendum forms part of the SCM DMA (Pty) Ltd (“DMA”) General Business Terms as may be in force at the date of application of this Addendum (hereafter “Terms”)

      Last Reviewed: July 2021

      1. Introduction

      1.1  DMA herewith expands its Services as outlined in Clause 4 of the Terms, to include registered collective investment scheme portfolios under the Collective Investment Schemes Control Act,45 of 2002 (hereafter “Unit Trusts”) which Unit Trusts are managed by a “Unit Trust Investment Manager”.

      1.2  The beneficial ownership of all investments vests within the Client’s name. The investment
      will be held on behalf of the Client in the name of DMA’s nominee company, SCMSA Nominees (Pty) Limited (hereafter “SCMSA Nominees”) with the same address details as set out in Clause 27.1 of the Terms.

      2. Definitions

      In this Addendum, unless the context otherwise requires, all terms shall have the meaning as defined in the Terms, and all other terms and conditions in the Terms shall remain unchanged.

      3. Investments

      3.1  All contributions made by the Client are subject to certain requirements pertaining to the UnitTrusts insofar as to the payment mode, frequency and minimum amounts invested. This includes the transfer of assets (other than in cash) from another investment.

      3.2  DMA may lay down certain conditions for a Client’s investment choice, set limits for investments, add or remove an investment option, request investors to switch (in full or part) from an existing investment option to another investment option and on failure of a Client to give effect to such a request, switch a Client’s investment option into an interestbearingaccount elected by DMA, which switch shall be deemed to be an instruction by omission of Client to do so.

      3.3  Client may switch between the available investment options. All switch transactions have two components:

      3.3.1  Sell units from an existing investment;

      3.3.2  Buy units in another investment.

      If the market value of an investment from which you wish to switch is less than the minimum amount, the entire amount must be switched. The two components of the transaction may not take place on the same day and the prices are not guaranteed.

      3.4  DMA provides no guarantees; particularly in relation to investment performance. The Client bears the risk on any investment as the value may fluctuate.

      3.5  The investment is not subject to a cooling-off period; however, The Client may withdraw from the investment at any stage.

      3.6  The Investment Managers of the Unit Trusts may from time to time switch Clients’ investments into a different class within the same Unit Trusts, and the Client hereby consents to such switch. The Client will also accept that such Investment Manager may charge a highermanagement fee in the class of the Unit Trusts that your investment may be switched into.

      3.7  The value of the Client’s investment, as administered through the Investment Manager of the Unit Trust’s sub accounts, is directly linked to the market value of the underlying investments of the Client’s sub account. The value of the Client’s investment is increased by his/her contributions and positive investment returns. Interest and distributions accruing from the investments will be reinvested. The value of the Client’s investment is reduced by negative investment returns and any relevant fees, charges, deductions and expenses as provided for in the legislation.

      4. Ring-fencing

      4.1  If DMA is notified that the Unit Trust Investment Manager has ring-fenced (i.e. delayed) a
      sell instruction for an investment, DMA will cancel and sell or switch the instruction sent to that Unit Trust Investment Manager for that investment.

      4.2  DMA will resubmit the instruction the following business day at the price of that day.

      4.3  If the instruction is ring-fenced again, DMA will then apply the ring-fencing process. This means that it could take up to twenty (20) days for the proceeds to become available from the Unit Trust Investment Manager.

      4.4 DMA is hereby indemnified by the Client against any losses, cost and/or damages that
      may be suffered due to ring-fencing.

      5. Processing cut-offs and turnaround times

      All Unit Trusts transactions will be processed in accordance with the chart below, provided that the Client
      has a sufficient cash balance on account:

      Processing cut-offs and turnaround times

      a) All instructions will be processed on date of receipt (excluding Saturdays, Sundays and public holidays) if the relevant fully completed form is received on or before the cut-off times listed above.
      b) There must be sufficient available funds in the Client’s Account.
      c) The instructions will only be considered to be fully completed subject to the instruction being clearly and fully completed and that all DMA’s requirements as determined from time to time, have been met.
      d) The turnaround times are also subject to there being no ring-fencing impacting the Client’s investments as set out in 4 above.

      6. Fees and charges

      In addition to Clause 11 of the Terms, the following is applicable:

      6.1  DMA reserves the right to sell units to cover its fees, in the event that the Client does not have a sufficient cash balance in his/her account to cover any fees due and payable to DMA.

      6.2  In the event that fees and charges are levied against DMA in relation to the investments, DMA will pass the fee or charge on to Client which may necessitate the proportionate sale of units of the underlying investment options administered in Client’s Account.

      6.3  DMA reserves the right to charge the Client a transaction fee and will charge a custody fee
      for investments held by SCMSA Nominees. All fees will be levied from the Client’s cash balance in his/her account and DMA reserves the right to sell units if there is an insufficient cash balance available in Client’s Account. The custody fee will accrue daily, based on the market value of the investment at the end of the previous business day. The fee accrual period is notfixed and the accrual start date may vary from month to month. DMA aggregates the total investments across the investment selection on the daily closing values and then applies the percentage agreed to the actual fee daily as per above. In the event of an internal fund transaction, the applicable fee will vest within the Unit Trust fund itself.

      6.4  Where applicable, Investment Managers (duly authorised in terms of a DMA Power of Attorney – see Terms) may levy fees against their Client’s cash balance whether for management, advisory or other functions.

      6.5  The following applies to the fees charged by the Unit Trust Investment Managers:

      6.5.1  If the Unit Trust Investment Manager of an investment option charges an initialfee to invest in its fund, the Unit Trust Investment Manager can deduct this feebefore purchasing units in the fund;

      6.5.2  The investment management fee, which is determined by the Unit Trust Investment Manager, is not recovered directly from the investments and is included in the published unit price. The investment management fee can be fixed and/or performance based;

      6.5.3  Investment management fees will be set out in the relevant fund fact sheets
      onthe website of the Unit Trust Investment Manager’s website;

      6.5.4  If the Unit Trust Investment Manager applies an exit fee, the proceeds of the sale of any units will be reduced by the exit fee;

      6.6  All applicable fees will be made available to the Client via his/her duly appointed InvestmentManager as per the executed DMA Power of Attorney on file where applicable. You are advised to obtain this information from them prior to performing any transactions. Where no Investment Manager has been appointed in terms of a DMA Power of Attorney, kindly contact DMA directly on support@dma.co.za or +27(0)10 201 6300.

      7. Tax

      7.1  Taxes will be applied to the investment when applicable in line with the South African Revenue Service’s tax rules and rates, which are subject to change from time to time.

      7.2  For more information on the tax implications of this product, it is suggested that the investor
      consult with his/her Investment Manager and/or financial advisor.

      7.3  Any withholding tax exemptions available to South African Tax Residents will automatically be applied provided the investor has declared he/she is such a resident as provided for in terms of the Income Tax Act.

      8. General

      8.1  All the terms and conditions of the Terms shall apply to this Addendum. In the event of any discrepancies between the Addendum and the Terms, the terms and conditions of this Addendum shall prevail;

      8.2 This Addendum is effective immediately as of 1 July 2020.

      In the event that the General Business Terms are updated, this Addendum will remain in effect until an updated version hereof is released.The prevailing version of this Addendum is always available at www.dma.co.za

      SCM DMA (Pty) Ltd is an Authorised Financial Services Provider with license 40983 and an authorized member of an exchange.