CLIENT SERVICE

Transparency and Safety

The security of our clients’ funds is of paramount importance and we make sure your assets are as safe as we can make them. Your mandate with Eau Rouge entrusts us with full discretion over the management of your funds, but importantly, you retain direct and immediate entitlement to your assets through selected specialist administrators. Not one cent of your money flows through Eau Rouge. Your segregated account with regulatory approved administrators, held in your own name, ensures the safety of your local and offshore cash and scrip, allowing full transparency and peace of mind. Part of the Eau Rouge service, however, is to function as a watchdog, and we hold our partners in administration to the same high standards as ourselves.

Reporting

We ensure that our clients remain fully appraised of the progress of their investments with regular and timeous reporting. Every transaction undertaken is reflected to clients with the timeous mailing of a contract note, and portfolio valuations and statements of account are mailed after each month end. The portfolio valuation shows all the investments held on behalf of the client, their cost and current market value analysed into sector values and percentages, as well as the current yield on the various investments. The monthly statements reflect the movements of capital during the month, month end cash balances and the scrip position. The income account reflects the income earned and expenses, such as management fees, during the month.

Periodic reports and/or presentations are also provided to institutional investors according to their requirements. These are more comprehensive than the monthly statements and portfolio valuations and will include performance results, investment strategy, local and international asset and equity mixes, and other relevant information on the status of the fund.

Tax

Record keeping for Capital Gains Tax is part of the service and clients are presented with capital gains and other tax schedules, as required by South African Revenue Services annually.

Compliance and Controls

The internal controls at Eau Rouge and its administration partners are scrutinised by auditors and internal and external compliance officers. All dealing procedures are regularly analysed. There is a complete separation between decision making (Eau Rouge), and at our administrators between dealing and administration (capturing the completed deals). All assets are held by appointed custodians. Only the administration department has the authority to ensure that a deal is properly recorded, settlement procedures followed and the client’s details are correct. A group compliance officer is responsible for monitoring of trade and derivative risk exposures.

Professional Indemnity

As a Financial Services Provider, Eau Rouge has the required professional indemnity insurance. In addition, Eau Rouge and its clients are covered by various investor protection mechanisms held by the JSE which provide comprehensive financial protection for losses incurred by investors and stockbroking firms as a consequence of fraud, theft or default.

The protection afforded by Nedgroup Private Wealth, as administrators of clients’ investments, includes:

• The JSE Guarantee Fund
• Fidelity insurance policy held by the JSE, providing cover for broking firms and clients.
• Professional indemnity, fidelity guarantee, negligence and electronic and computer crime insurance; via a “Bankers Blanket Guarantee” policy. The cover is in accordance with the SA Reserve Bank requirements.

The Crime and Professional Indemnity protection through Glacier includes:

• A “Bankers Blanket Bond”, including fidelity,
• Electronic and computer crime, and
• Civil liability and dishonest and fraudulent acts.

Termination of this Service

Clients may withdraw from the managed account service simply by giving written notice to Eau Rouge. Cancellation is immediate and carries no penalties. In this event, delivery of the investments and cash will also be almost immediate except when purchases await settlement or during a share’s record period.