Lehumo Investments uses its discretion to invest on the client's behalf with great care and diligence. There is a risk associated however with investing in the financial products involved. The value of the investments and income may rise as well as fall, and there is a risk that the client may suffer financial losses. The client does not have a claim against Lehumo Investments in the event of the realization of this risk unless it can be proved that the losses were due to negligence, fraud, misconduct or dishonesty by Lehumo Investments or its staff.

The past performance of any investment or security is not necessarily a guide to future returns. Fluctuations in the value of any investment listed or not, security listed or not, derivative whether listed or not and any currency or foreign exchange instrument and the income derived there from as well as changes in the demand and supply, political environment, interest and exchange rates means that the value of an investment listed or not, security listed or not, derivative whether listed or not, may fall as well as rise and the value thereof is not guaranteed. There can be no assurance that the performance of an investment will achieve the investor's investment objective.

Derivative investments carry a high level of risk to your capital as they are leveraged products. Only deal in derivatives with funds you can afford to lose as you may lose more than your original deposit. Derivatives can be very volatile and prices may move rapidly against you. Resulting losses may require further payments to be made. This notice does not disclose all of the risks and other significant aspects of derivative products. Derivatives may not be suitable for all clients so you should ensure you fully understand the risks involved and seek independent advice if necessary. Derivative instruments include, but are not limited to, Contacts for difference (CFD's)and Single Stock Futures (SSF's) Investors who elect to proceed with these instruments confirm they understand the risks associated with them.

When investing in foreign investment products it is important to be aware of the following risks:

• Getting access to investment performance information may be more difficult than South African based investments.
• Investments are exposed to different tax regimes that may change without warning and it may influence investment returns.
• Exchange control measures may change in the country of investment and it may influence accessibility to the invested capital.
• Fluctuations in the value of the Rand in relation to foreign currencies may have a material impact on the value of your investment

Lehumo Investments may invest in wrap funds on behalf of the client in terms of this mandate and is thus required by the FSB to make certain disclosures regarding wrap funds and how they differ from fund of funds.

• A fund of funds is a collective investment scheme fund that is not allowed to invest more than 50% of the value of the fund in any one collective investment scheme fund. The Collective Investment Scheme Act guarantees the repurchase of participatory interests in a fund of funds by the management company.
A wrap fund is a basket of different collective investment schemes wrapped as a single investment portfolio. The underlying combination of collective investment schemes is selected to optimally target the risk/return requirements and investment objectives of the client. In fact it's a number of separate investments in which the investor has direct ownership and could be better described as an account. These underlying investments are selected in line with the investment requirements of the client. There's no joint ownership among investors and individual ownership of the participatory interests in the collective investment schemes can be transparently demonstrated at all times. A wrap fund investment is administered and facilitated by a linked investment service provider (LISP) i.e. an Administrative FSP. A wrap fund has no limit concerning the collective investment schemes that that it may include in its portfolio. The Administrative FSP of the wrap funds does not guarantee the repurchase of participatory interests in the collective investment schemes that comprise the wrap funds. The Administrative FSP has service level agreements in place with the management.