Sanlam Cumulus Investments

Transcription

1 Sanlam Cumulus Investments Prepared for Mr Example Quotation Prepared by Sanlam Tel: (021) Quotation number: 122 Date: 2015/10/22 SPECIAL FEE BASIS ID: S302 Version: 051 Page: 1 DST15485 / PO Box 1, Sanlamhof, Strand Road, Bellville Group Sanlam Cumulus Investments is a policy under the insurance licence of Sanlam Developing Markets Sanlam Life Insurance Limited Reg no 1998/021121/06 Licensed Financial Services Provider Refer to the Sanlam website for directors and company secretary details. T (021) or F (021) E cumulus@sanlam.co.za

2 The plan is an insurance policy as described under, and regulated by the Long-term Insurance Act, 1998, and is issued under the insurance licence of Sanlam Developing Markets Limited (Sanlam Developing Markets). The plan is a contract between the planholder, and us, Sanlam Developing Markets Limited (Sanlam Developing Markets). We have contracted Sanlam Life Insurance Limited (Sanlam Life) to deal with all administrative matters on our behalf. In this quotation we refer to you, the applicant, as the planholder. Plan details Product code E40 Product name Sanlam Cumulus Investments (E40) Option date 2020/11/01 Tax dispensation Natural person Alteration charge date 2020/11/01 Start date The plan starts on 2015/11/01 for a term of 5 years. After the option date, the term of the plan is open-ended. Open-ended term After the chosen term has expired, the term of the plan is considered as open-ended. This means that the fund value will not be paid out automatically after the chosen term has expired, but that the plan will continue until it is terminated by the planholder, or by us if this product is no longer available for new business. In the latter case the planholder will be provided with the various options then available. Life insured Personal details Title and surname Mr Quotation First name Example Date of birth 1970/01/01 Age next birthday 46 Gender Male Language English See Benefit descriptions for information about the benefits for this plan. Payment details One-off payment A one-off payment of R is payable on 2015/11/01. Investment details Investment fund Fund number Risk classification/ asset class Allocation % Sanlam Life Escalating Funds Sanlam Escalating - SIM Balanced Fund 654 Cautious Total Information about all investment funds we offer, is available on the Sanlam website at We invest a payment plus an additional allocation in the respective chosen investment funds by buying units in each of these investment funds. The additional allocation depends on the level of commission negotiated at the start. For all investment funds the unit price is not guaranteed, and may increase or decrease over time. The fund value of a specific investment fund is the number of units multiplied by the unit price for that Version: 051 Page: 2 DST15485 /

3 investment fund. The fund value of the plan is the total fund value of all the investment funds for the plan. Switches and revised payment allocations Switching of investment funds allowed at the time for this type of plan may be done on request. We will sell units of the investment funds out of which a switch is done, and buy units of the investment funds into which a switch is done. We do this on the first working day after receiving the switch request. Future payments may be allocated to any investment fund allowed for this type of plan. The payments already allocated to the current investment funds, will then remain in these investment funds. Currently there is no transaction charge for the first four switches in a plan year. For each subsequent switch in a plan year, we will levy a transaction charge, which will be determined at the time. We may change the number of free switches from time to time. The transaction charge for a switch requested by you is currently R This only applies once all free switches in a plan year have been used. This charge will increase in future to allow for inflation. Escalating Funds with guarantees For a number of investment funds there is a corresponding Escalating Fund with a built-in guarantee available. This guarantee is provided by Sanlam Developing Markets Limited (Sanlam Developing Markets). The guarantee will ensure that the unit price of an Escalating Fund is always at least 80% of the highest unit price it has ever reached since the inception date of that Escalating Fund, despite what happens to the underlying investments. An Escalating Fund invests in a combination of the corresponding investment fund and cash. Accordingly, the investment return on an Escalating Fund is a combination of the investment returns on the corresponding investment fund and cash, and can thus differ substantially from that of the corresponding investment fund. The allocation between the corresponding investment fund and cash is not fixed, but varies according to market conditions. When the market value of the corresponding investment fund decreases, the percentage allocated to cash will be increased to protect the capital value. Similarly, when the market value of the corresponding investment fund increases, the percentage allocated to the corresponding investment fund will be increased, allowing the Escalating Fund to benefit from a rising market. An Escalating Fund reduces the volatility of returns, compared to the corresponding investment fund, and aims to limit capital losses in a declining market, while also benefiting from rising markets. In market downturns the cash component of an Escalating Fund may increase substantially and an Escalating Fund may invest the bulk of its assets in cash. Therefore it is not unlikely that the cash component of an Escalating Fund may exceed 50% from time to time. In extreme downturns, an Escalating Fund could become 100% invested in cash. However, interest earned on the cash coupled with a recovery in the market will result in an Escalating Fund gradually switching out of cash and into the corresponding investment fund again. Factors affecting the return on the plan Investment return on chosen investment funds The gross investment return is the rate of return earned on the investment funds chosen by the planholder, before deductions for life office tax and charges but after direct investment expenses. This rate will depend on financial market conditions and the rate of inflation during the plan term. Effect of inflation Inflation has a major impact on investment returns, and in general higher inflation leads to higher investment returns and lower inflation leads to lower investment returns. Real rates of return (the excess of the investment return over the inflation rate) give a meaningful indication of how the investment has performed. Effect of life office taxation Version: 051 Page: 3 DST15485 /

4 Gross investment returns are subject to life office taxation. The effective tax rate depends on the asset composition of the underlying investment fund. For example, the effective tax rate on the gross investment returns (for income and capital gains combined) will be about 11% a year for equity funds, 16% a year for balanced funds and 30% a year for money market funds. Effect of charges The reduction in yield (RIY) shows the extent to which the investment return on the plan will be reduced by charges against the plan until the option date (2020/11/01). Assumed investment return per year after life 10.00% office tax Less reduction in yield * 1.43% Effective investment return per year after life 8.57% office tax *The RIY includes the effect of charges for investment guarantees. The assumed investment return is not guaranteed, but merely used to illustrate the impact of all the charges in the quotation. Charges This information is given as on 2015/11/01 and any reference to "current" or "currently" refers to this date. This means that the charges may change from time to time. Charges for the plan The current charges are indicated below. Marketing charge A yearly marketing charge, which is a percentage of the fund value and may differ for different investment funds. It is taken into account when we calculate the daily price of the units. The current marketing charge is indicated below. Investment fund Yearly marketing charge % of fund value Sanlam Escalating - SIM Balanced Fund 0.00 One-off payment allocation One-off payment R Plus additional allocation* R One-off amount available for investment R *We will invest R (106.00%) of the one-off payment. Variable administration charge A yearly variable administration charge, which is a percentage of the fund value. This charge is calculated on a monthly basis, which means it is divided by 12. The charge is deducted monthly from the fund value by selling units to the value of the charge. The variable administration charge changes as the fund value increases to higher fund value bands, as indicated below. One-off fund value band Yearly variable administration charge % of fund value First R Next R Excess above R The variable administration charge is currently 1.46% per year of the fund value. Guarantee charge A yearly guarantee charge for Escalating Funds, which is a percentage of the fund value and may differ for different investment funds. It is taken into account when we calculate the daily price of the units. The current yearly guarantee charge for Escalating Funds is indicated below. Version: 051 Page: 4 DST15485 /

5 Investment fund Yearly guarantee charge % of fund value Sanlam Escalating - SIM Balanced Fund 0.80 Deductions made by the asset managers An asset manager levies the following for an investment fund. These are included in the daily price of the units. Asset management charge A yearly asset management charge, which is a percentage of the plan s part of the market value of the assets in an investment fund. The charge is calculated on a daily basis, which means it is divided by 365 to calculate the daily amount. Investment fund Yearly % of market value Sanlam Escalating - SIM Balanced Fund 0.00 Funds with additional charges The fund managers of the investment funds below invest in other funds. The fund managers of these other funds will deduct their management charges and expenses directly from the investment returns. These deductions are therefore not included in the above asset management charge. The table below shows the additional charge that was used in the calculation of the RIY. Investment fund Additional charge % used in RIY calculation Minimum additional charge % of market value Maximum additional charge % of market value Sanlam Escalating - SIM Balanced Fund Direct investment expenses The direct investment expenses are for example, collective investment initial fees, brokerage, audit fees, bank charges and trustee fees. Alteration charge A plan may be changed at any stage, provided we agree to the alteration. We will levy an alteration charge if the alteration is done before an alteration charge date. The alteration charge date is determined at the start and does not change at subsequent alterations. The alteration charge will be taken from the fund value, by selling the required number of units. Below we set out the alteration charge for the most common alterations. We may also deduct an alteration charge for alterations not mentioned below. We will quote the alteration charge when such an alteration is requested. Amounts paid For the following alterations the fund value will be reduced by the amount paid to the planholder and by the alteration charge: Termination of the plan; A loan against the plan; An ad hoc withdrawal from the plan. The alteration charge will be equal to the percentage of the reduction of the fund value as indicated below. Alteration date % of fund value 2015/11/ /11/ /11/ /11/ /11/ /11/ Dates in-between those shown For a date in-between those shown in a table, the percentage to be used on the required date will be equal to the percentage on the date shown prior to the required date. Version: 051 Page: 5 DST15485 /

6 Transaction charge The transaction charge for each of the following alterations is currently R as determined by means of regulatory measures and it will change in future if such regulatory measures or legislation change. This charge will be levied in addition to the alteration charge. Termination of the plan; A loan against the plan; An ad hoc withdrawal from the plan. We will not levy this transaction charge on or after the option date. The transaction charge will be taken from the fund value by selling the required number of units. Commission The commission below, if applicable, is not levied in addition to the Charges. A part of these charges pays for the following commission to the intermediary. Initial commission Initial commission of R is payable for the one-off payment. Ongoing commission No ongoing commission is payable. Legislative restrictions In terms of current legislation, the amount we pay out during the first five years after the start date of the plan may not exceed an amount determined according to legislative restrictions. If the value which we determine is greater than the value restricted by legislation, we will pay out the restricted amount. The balance and further growth will be payable and will remain invested after the end of the five year period. During this five year period, you may make only one ad hoc withdrawal from the plan and we may grant only one loan against the plan. Taxability of plan benefits According to current legislation the returns of the plan will not be taxable in your hands. Benefit descriptions Benefit payable at death At the death of the life insured the following will be payable: The fund value at the date on which we received notice of such death, for funds without an investment guarantee. The larger of the fund value and the investment guarantee at that stage, for funds with an investment guarantee. The benefit will be payable to the planholder s appointed beneficiaries, or to his/her estate. Claim procedure In the event of a claim please inform us as soon as possible. To obtain the necessary claim forms and to ensure that all the required information is supplied, contact the Sanlam Life Claims Call Centre at (021) Depending on the nature of the claim, documentary proof (e.g. a death certificate or medical report) will be required. Enquiries If you have any questions regarding this quotation, please contact your intermediary, as indicated on the front page of the quotation or thesanlam Life Client Care Centre or visit your nearest Client Care Office. Please always provide the plan number when you contact us. Client Care Centre details Address PO Box 1, Sanlamhof, 7532 Telephone (021) or Fax (021) for enquiries cumulus@sanlam.co.za for Compliance department complianceoffice@sanlam.co.za Version: 051 Page: 6 DST15485 /

7 Compliance For any problem regarding compliance of products, advice or service, the Compliance department may be contacted via thesanlam Life Client Care Centre. Complaints If you are dissatisfied with our service, advice or any of our products, we would like to hear about it. We have an internal complaints handling process where the complaint can be escalated up to the Sanlam Arbitrator. You may contact thesanlam Life Client Care Centre or the Sanlam Arbitrator at the contact details given below. Please always provide the plan number when you contact us. Client Care Centre details Address PO Box 1, Sanlamhof, 7532 Telephone (021) or Fax (021) for complaints for Compliance department Sanlam Arbitrator Fax (021) If any problem regarding advice has not been dealt with to your full satisfaction by our internal complaints handling process, you may contact the office of the FAIS Ombud at: Address PO Box 74571, Lynnwood Ridge, 0040 Telephone (012) or (012) Fax or (012) Website If any problem regarding the product has not been dealt with to your full satisfaction, you may contact the office of the Ombudsman for Long-term insurance at: Address Private Bag X45, Claremont, 7735 Telephone or (021) Fax (021) Website Client protection The Financial Advisory and Intermediary Services Act and its sub-legislation regulate advice and intermediary services of financial products. Through its debarment system it also protects the public from persons who are not fit and proper to market financial products, and it controls those who are engaged to market such products. The intermediary, Mrs Ronel Barkhuizen, is authorised to market this product and in terms of the above legislation he/she has not been debarred nor has any authorisation given to him/her been withdrawn or suspended, or lapsed. Cooling-off period If you accept this quotation, and apply for a plan based on it, you will have a period of 30 days in which to examine the contract documents, and decide whether you wish to continue with the plan. If the plan really does not meet your requirements, and if you have not made any changes to it, you can cancel it by notifying us in writing during this period. We will then refund any payments you have already made. If the assets in which the payments were invested have decreased in value, or if you have already received benefits from the plan, we will reduce the amount to be refunded to you accordingly. Validity period This quotation assumes a date of payment of 2015/11/01 and is only valid if the one-off payment is paid into a Sanlam bank account on 2015/11/01. If the one-off payment is paid before or after this date, it may have an effect on the amount available for investment and the start date. In such a case, a final quotation specifying the actual date of payment must be obtained. Investment fund descriptions For non-linked policies, we may leverage the assets in the investment funds for transactions such as scrip lending. Any income or loss arising from these transactions will be for our own account, and therefore do not affect the benefits to which the planholder is entitled under this plan. Sanlam Escalating - SIM Balanced Fund The Sanlam Escalating - SIM Balanced Fund provides investors with exposure to the SIM Balanced Fund and to cash, as well as a guarantee that the value of Escalating units will always be at least 80 percent of the highest value ever achieved. Version: 051 Page: 7 DST15485 /

8 For office use Life insured Title and surname Mr Quotation Name Example Date of birth 1970/01/01 Age next birthday 46 Gender Male Commission/fee One-off payment Initial commission Initial commission R (100.00%) Ongoing commission (Fund based commission) No ongoing commission is payable. General plan details Product code E40 Product name Sanlam Cumulus Investments (E40) Term 5 years and open-ended thereafter Start date 2015/11/01 Option date 2020/11/01 Payment details No recurring payments One-off payment R One-off payment date 2015/11/01 One-off payment method Cash Investment funds Fund number Allocation % SPECIAL DEAL 1% ADDITIONAL ALLOCATION Version: 051 Page: 8 DST15485 /