2020 INTEGRATED REPORT

this as an opportunity to increase our exposure to South African government debt and to benefit from the compensation this offered. While economic conditions remain challenging and financial markets are vulnerable to short-term corrections, the size of our equity holdings across many of our portfolios means we are well positioned to benefit from opportunities our asset managers have identified. In terms of our member-centric approach, an offer to members to transfer from the legacy section of the Retirement Annuity Fund to the new-generation section was taken up by 1 800 members. Members who took up the offer will benefit from zero administration fees for a minimum of five years or until retirement at age 66. In term of strategic developments, a new web- based administration system to future-fit our business and enable more effective remote working was successfully implemented. Straight-through processing and bulk transaction capability for various transaction types were introduced. We also introduced mass customisation of communications with our members, and consolidated certain products to reduce administration complexity and reduce costs. Finally, the PPS Global Equity Feeder Fund was launched and received good support from financial advisers and investors, who can access this global offering via a Rand-denominated investment. RISKS, CHALLENGES AND OPPORTUNITIES The most significant challenges to the business in 2020 came about as a result of the impact of the COVID-19 pandemic. The lockdown at the end of the first quarter and the shift to operating remotely at such short notice meant that we had to make some significant operational changes. This process of reorganisation was exacerbated by continuing load shedding and unreliable internet connectivity, while increased fraud and phishing attempts were also a challenge. However, we were able to shift to a new mode of working without significant disruption. There was no break in service to our members and we were able to continue to provide the quality products and services our members expect from us. Many member-facing functionalities, such as self- service options and the ability to transact, were already available online and, over the course of the year, the number of transactions conducted online shifted from 5% to 30%. The shift to virtual engagements and digital servicing resulted in increased engagement with members and financial advisers, enabling us to deliver better services and better results. Total assets under management (R’bn) 0 10 20 30 40 50 2020 2019 2018 2017 2016 25.0 28.6 31.4 37.8 43.1 New business: Investments (R’bn) 0 1 2 3 4 5 6 7 8 2020 2019 2018 2017 2016 3.5 4.0 5.9 6.1 7.5 GROUP PERFORMANCE AT A GLANCE | 59