Key features of your Old Mutual International Investment Portfolio

Transcription

1 Key features of your Old Mutual International Investment Portfolio

2 Spice Boxes were carefully crafted and customised for their recipients, no two were ever the same. Contents at a glance - The Investment Portfolio+ and its benefits - About Old Mutual Isle of Man - Important information - Frequently asked questions: 1. What does the Investment Portfolio+ offer? 2. Could the Investment Portfolio+ be right for me? 3. What tax advantage does my Investment Portfolio+ hold? 4. What are the roles and responsibilities of the various parties? 5. Section 54 of the Long Term Insurance Act 6. Can I take money out? 7. Can I make additional contributions? 8. Is the money I put into my Investment Portfolio+ guaranteed? 9. What might I get back? 10. What assets can I choose from for my Investment Portfolio+? 11. What currency flexibility does my Investment Portfolio+ offer? 12. How are the assets held? 13. How will I know how the assets within my Investment Portfolio+ are performing? 14. What payments are made to my financial adviser? 15. What payments are made to my Fund Adviser/Discretionary Investment Manager? 16. What are the product charges levied by Old Mutual Isle of Man? 17. What other fees will be incurred? 18. How can I make a contribution? 19. What happens to my Investment Portfolio+ if I die? 20. Complaints process 21. Contact information 22. Compensation and investor protection The purpose of this Key Features Document is to give you a clear and balanced summary of the information you need to help you make a decision about investing in the Old Mutual International Investment Portfolio+. 01

3 Investors with more than the minimum investment amount of 35,000 (52,500 in, US$, Aus$ or CHF) can invest in a range of funds which cover a variety of asset managers, investment styles and strategies. They are primarily multi-asset class funds across geographical regions although there are asset and geographically specific funds available as well. The range of funds is split between the Core Funds and Self Select Funds, both of which can be held in the same Plan. Core FundS range The Core Funds range is a selection of funds carefully constructed by Old Mutual Isle of Man. It offers funds that target inflation-linked returns (managed funds), money market funds and single asset funds that cover both specific regions and the world. The Investment Portfolio+ and its benefits Specifically designed for the South African resident, the Investment Portfolio+ allows you to consolidate and manage your offshore investments within a single, convenient, taxefficient structure, and aims to provide the potential for growth of the assets over the long term. The product is a single-premium capital redemption contract. It is structured so that it does not have lives assured; therefore, it will not come to an end on your death. Instead, the Investment Portfolio+ has a 99-year fixed term where a maturity will be paid and your investment will continue to the end of the term (the maturity date), unless you fully cash it in before the maturity date. The Investment Portfolio+ is issued as a number of contracts (minimum 100) which collectively forms the Plan. The Investment Portfolio+ offers two levels of investment choice subject to minimum premium criteria: The first level provides access to a range of internal life funds denominated in sterling, US dollars and euros. These funds have been specifically selected for the South African investor and include funds managed by Old Mutual Global Investors (the Core Fund range) as well as third party managers (the Self Select Fund range). The second level offers a significantly increased range of assets including collective investments schemes and shares listed on recognised stock exchanges (these are accessed through the Authorised Custodian Facility ). In both cases you can build your own portfolio to suit your financial goals and attitude to risk. We are currently waiving switching charges and dealing fees although there may be transactional fees if you utilise the Authorised Custodian Facility. The Investment Portfolio+ offers the convenience of removing the complexities and concerns of tax administration as this is performed by Old Mutual Isle of Man, which is a Branch of Old Mutual Life Assurance Company (South Africa) Limited ( OMLACSA ) within the policy, with the exception of personal tax administration. Under current legislation the proceeds will not be taxed in your hands at maturity. About Old Mutual Isle of Man The Investment Portfolio+ is issued by Old Mutual Isle of Man, Branch of Old Mutual Life Assurance Company (South Africa) Limited (OMLACSA). The Branch is registered in the Isle of Man and its principal place of business is Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles and is authorised and regulated by the Isle of Man Insurance and Pensions Authority. OMLACSA is a registered long term insurer and a licensed Financial Services Provider in South Africa. Old Mutual Life Assurance Company (South Africa) Limited is part of the Old Mutual Group. The holding company of the group is Old Mutual plc, which, as a FTSE 100 company, is one of the 100 largest listed on the London Stock Exchange. Old Mutual plc is also listed on the Johannesburg Stock Exchange. Old Mutual plc manages more than 288 billion* of clients funds worldwide. The Old Mutual Group has a portfolio of businesses offering asset management, life assurance, banking and general insurance services around the world. * As at 30 April 2013 Source: Old Mutual plc. So, to summarise, the Investment Portfolio+ enables you to: Choose from a range of funds and assets to match your investment objectives; Move assets within your Investment Portfolio+; Enjoy tax efficiency; Manage your estate planning; and Consolidate your existing offshore investments into one portfolio. As a leading provider of offshore investments to South African residents, we believe that decisions about your financial future are important and we encourage you to seek advice through a financial adviser. Important notice The Investment Portfolio+ is designed to be a long-term investment, so you should aim to hold it for at least five to ten years. If you wish to encash your Investment Portfolio+ earlier, there will be restrictions and a recovery of outstanding charges in the first five years, or longer if additional contributions have been made (please refer to Getting Money Out Of Your Contract, section 5). All investments involve some risk. The Investment Portfolio+ is a unit-linked policy which gives you access to a variety of assets, the value of which may rise and fall. You accept this investment risk by taking out the Investment Portfolio+. The amount you get back when your Investment Portfolio+ ends may be less than you expected, or less than you invested, for the following reasons: The funds and assets held within your Investment Portfolio+ may rise or fall in value. We cannot provide any assurance that the funds or investments will be successful or that their investment objectives will be achieved. It is possible that some of the funds or investments may become difficult to sell. It may take longer than anticipated to realise the cash value of the fund or asset. Where the fund or investment is in a currency other than the currency in which the return is being measured, there may be additional changes in value due to exchange rate fluctuations. In exceptional circumstances it is possible that funds, assets and bank deposits could become temporarily or permanently valueless should the bank or Authorised Custodian become insolvent. WHY CHOOSE THE OLD MUTUAL INTERNATIONAL INVESTMENT PORTFOLIO+? 1. What does Investment Portfolio+ offer? The Investment Portfolio+ provides two levels of investment choice within the same product. Investors with more than 100,000 (150,000 in, US$, Aus$ or CHF) may access a number of different Authorised Custodian facilities which is a gateway to a significant range of funds and assets. This is explained in more detail below. These funds are managed by Old Mutual Global Investors on a fund-of-fund, best-of-breed or a direct basis. Extensive research goes into finding and monitoring the underlying managers and investments. This process ensures that the managers remain true to their stated investment styles and objectives through continuous scrutiny and review, although, as with all investments, risks will still be attached. Funds may be added or removed from the Core Fund range from time to time. SELF SELECT FUNDS RANGE In addition to providing a monitored Core Funds range, Investment Portfolio+ also offers a Self Select Funds range. Old Mutual Isle of Man recognises that you may wish to access other investment managers and makes these available through the Self Select Funds range. This range of funds is predominantly managed (multi-asset class) funds but also includes single-asset class funds. The funds are available in sterling, euros and US dollars. Most of the investment managers have a presence in South Africa (or make regular visits to the country) to ensure ongoing reporting is available to our investors and their advisers. The list of funds available under the Self Select range will change over time as funds are added and removed. Investment Portfolio+ Authorised Custodian Facility The Authorised Custodian Facility on the Investment Portfolio+ provides substantial freedom to implement an investment strategy that meets your needs and expectations in terms of flexibility, risk tolerance, capital growth and portfolio management. You are able to choose from an extensive range of collective investment schemes (SICAVs, FCPs or unit trusts), assets quoted on a recognised stock exchange acceptable to us or various currency deposits. Restrictions are outlined in section 5 below. We recommend that you consult with a qualified professional, including your financial adviser or Fund Adviser, to work together with you in selecting and investing in the funds or assets. You can hold assets in the Core, Self Select and the Authorised Custodian Facility components of the Investment Portfolio+ at the same time, and move between the investment options, providing the minimum investment amount of 100,000 (or equivalent) is invested in the Authorised Custodian Facility

4 2. Could Investment Portfolio+ be right for me? Investment Portfolio+ offers a single, flexible, convenient, tax-efficient entry point to investing in international markets. It provides access to a range of Assets that cover most investment objectives and risk appetites. For the larger investment amounts it offers access to international stock exchanges and a wide range of collective investment schemes. It is a Plan which can consolidate all your offshore assets into one manageable portfolio. You should be looking to invest for at least five to ten years and be willing to accept more risk than a bank or building society savings account to access the potential for greater growth. You can choose to have your Investment Portfolio+ transferred to a nominated beneficiary rather than your estate if you are the sole owner of the Investment Portfolio+ at the date of your death. This avoids probate, reduces delay and costs and provides the comfort of knowing what will happen to your Investment Portfolio+ in the event of your death. Authorised Custodian Investments made through the Investment Portfolio+ Authorised Custodian Facility will be executed through one of a range of Authorised Custodians with whom terms of business have been agreed. These Authorised Custodians are companies with stock broking licences and who act as custodians for the assets purchased. The availability of any particular Authorised Custodian is in no way any indication of their suitability or their financial strength and it is your responsibility to ensure you review and monitor the Authorised Custodian you, the Contract Holder, have requested that we appoint. Old Mutual Isle of Man, or the Reinsurer, may, from time to time, review the Authorised Custodians and could add or remove Authorised Custodians. In the event that an Authorised Custodian is removed, an alternative will be appointed and we will confirm this in writing. The Investment Portfolio+ provides you with a bespoke offshore solution, which allows you to adapt and change the investment holdings. Dealing desk and the restrictions apply to each contract individually. After five 7. Can I make additional contributions? years the restrictions fall away and you can access your funds. The dealing desk is where the dealing or trading instructions You may make additional contributions, although there are 3. What tax advantage does my for Investment Portfolio+ are executed.for the Core and Self More formally only a restricted amount can be taken restrictions based on the same legislation that limits the number Investment Portfolio+ hold? Select range of funds the dealing desk is provided by Old as a withdrawal during a restricted period. of withdrawals from the contracts within the first five years. Mutual Isle of Man. Investment Portfolio+ is a policy issued by Isle of Man Branch of The rules are that during the first year you can add as much Old Mutual Life Assurance Company (South Africa) Limited and For the Authorised Custodians the dealing desks are the Restricted period and as many contributions as you wish. In the second year you is taxed in terms of the four-funds approach, a tax regime which department within the Authorised Custodian to which The restricted period is the five years commencing from may add 120% of your first year s contribution, and thereafter applies to South African life insurers. the dealing instructions should be sent. The dealing desk the first day of the month when the contribution is received. you may add 120% of the higher of the previous two years will then be responsible for buying and selling assets in All tax payable on the assets held within the Investment Therefore, for example, if a contribution is received on contributions. If you wish to add more than what is allowed accordance with these instructions and subject to our Portfolio+, as the case may be, will be deducted at the level of the 15 th June 2013 the restriction period will commence then a new application will need to be made which will have investment guidelines and restrictions. and by Old Mutual Isle of Man Branch. From an administration on 1 st June 2013, and will cease on 31 st May 2018, with its own restricted period. Each additional contribution will perspective, there will be no need to include any gains, interest unrestricted access available from 1 st June attract the appropriate contract establishment charge over a five year period from the date of the additional contribution if or dividends in respect of the underlying assets in your personal Financial Adviser commission is paid or an initial enhancement is made. tax returns as the administration including the collection of any Your financial adviser should provide initial and ongoing Withdrawals tax payable will be attended to by Old Mutual Isle of Man The table in this section shows an example of the maximum financial planning advice. By completing a full financial If a withdrawal (either full or partial) has been taken from a Branch. You will, however, need to include the Investment contributions that may be made each year after considering plan, they will be able to determine your needs and they contract, then no further withdrawals can be made again Portfolio+ in your statement of assets and liabilities if held in your the actual contribution made in the previous two years. may also set your investment objectives and risk profile. during the restricted period on that particular contract. own name. However, where there are a number of contracts within a EXAMPLE Contributions* The current levels of taxation experienced by these policies may Fund Adviser (also known as the Discretionary Investment plan, then withdrawals can be taken from the other contracts be reviewed and changed in future in accordance with revised Manager) providing they comply with the restricted rules. After the five Year Maximum Actual legislation. year restricted period there are no restrictions Your Fund Adviser should provide advice on the right asset on withdrawals, subject to fund availability. 1 Any 100,000 allocation needed to achieve your investment objectives 4. What are the roles and responsibilities of 2 120,000 50,000 and may give instructions to the dealing desk to put these the various parties? into effect. Your financial adviser can act in this capacity if Restricted amount 3 120,000 Nil There are various parties who work together to make Investment they are suitably qualified. As a Fund Adviser they can make The 'restricted amount' is the amount that can be encashed Portfolio+ work: timely asset changes quickly and efficiently without having either partially or fully which is limited to no more than 4 60,000 60,000 to refer back to you if you have signed a full discretionary the Contribution received on the Contract plus 5% interest 5 72,000 10,000 Product Provider mandate with them. Some of the Authorised Custodians will thereon each year, compounded annually. only accept dealing instructions from a Fund Adviser whilst 6 72,000 Nil Old Mutual Isle of Man, as the product provider, others will allow you to give dealing instructions directly. 7 12,000 Nil will issue the contract and legally own the assets held in the 6. Can I take money out? Investment Portfolio+. Old Mutual Isle 8 Nil Nil of Man has reinsured its obligations under the Investment Getting money out of your Subject to Asset availability, and a minimum withdrawal of *Subject to acceptance by Old Mutual. 250, you can take one-off withdrawals or encash your Portfolio+. contract Investment Portfolio+ in full by writing to us. Your instruction The value of the new Plan, if taken out by the exact same will be actioned once received at Old Mutual Isle of Man. Contract Holder(s), can however be linked to the original Contract Holder 5. Section 54 of the Long term If you take one-off withdrawals, we will encash a sufficient Investment Portfolio+. The Investment Portfolio+ has a sliding Insurance Act number of your Contracts which make up your Investment This will typically be the person paying the contribution scale for its charges, which means that the percentage fee Portfolio+ to make the payment, unless you tell us otherwise, through a cash transfer or transferring across acceptable Designed specifically for South African investors, the Investment reduces as the Fund value breaks certain thresholds. The and leave the remaining Contracts unaffected. We will deduct assets and entering into a contract with Old Mutual Isle Portfolio+ will be subject to, amongst other things, the restrictions advantage of having Plans linked to one another is that you the outstanding contract establishment charges (explained in of Man. While the Contract Holder does not own the of the Long Term Insurance Act (LTIA). There are certain rules will receive a single statement that consolidates your various section 14) for a full surrender and under certain circumstances underlying assets, the value of the assets linked to the (known as the Restricted Rules ) that have to be complied with Investment Portfolio+ plans. we will deduct them before paying out a partial surrender. Investment Portfolio+ will determine its value. The Contract when taking withdrawals (either partial or full). The rules state The minimum additional Contribution that can be made Holder as the owner of the Investment Portfolio+ has the rights to the benefits arising from it. that only one withdrawal may be taken during the first five years from each contract and the maximum withdrawal is the value We may not accept a one-off withdrawal request, we may limit the amount available, if the value remaining in the to an existing Investment Portfolio+ is 5,000 or 7,500 in other acceptable currencies. Additional Contributions will be 04 of the contributions received plus 5% interest compounded Investment Portfolio+ immediately after the withdrawal falls applied proportionately across all the contracts held within the annually. The Investment Portfolio+ is divided into many contracts below 10% of your total contribution. Investment Portfolio+. 05

5 RISK 8. Is the money I put into my Investment Portfolio+ guaranteed? There is no guarantee on investment performance other than you will get back the higher of the surrender value or 100 on the Maturity Date (which is 99 years from the commencement of the Plan). The value of your investment in the Investment Portfolio+ can go down as well as up and you may not get back the amount invested. 9. What might I get back? The amount you get back will depend on: How much you have invested; How long your contribution has been invested for; Your choice of assets; The investment performance of the chosen assets; The currency of your asset; Any Tax that may be deducted; How much you have previously withdrawn; and The charges deducted from your Investment Portfolio+. ALLOWABLE ASSETS AND PERFORMANCE 10. What assets can I choose from for my Investment Portfolio+? In the case of the Core Fund range, the funds on offer are managed by Old Mutual Global Investors. These are multiasset class, managed funds with inflation-linked targeted returns, money market funds and single-asset class funds. The funds are available in various currencies and the managed funds are hedged in their respective currencies. The Self Select Fund range utilises third-party investment managers. The chosen investment managers generally have a presence in the South African market to ensure regular feedback is available to investors and their advisers. They are predominantly managed funds where the manager makes the decisions on the allocations to different markets and between asset classes. Single-asset class funds are available. Lists of funds available within the Core Fund and Self Select Fund ranges will be made available in the Investment Choices brochure and on the Old Mutual International website. (www. oldmutualinternational.com) The Investment Portfolio+ Authorised Custodian Facility allows a significantly wider range of assets, including: Any collective investment funds, funds with UCITS status, SICAVs, FCPs or unit trusts agreed by us; Assets quoted on a recognised stock exchange acceptable to us; Various currency deposits (subject to our acceptance as we may not be able to accept certain types of investment). As you are investing through an Investment Portfolio+ you may be able to access assets which might not normally be available to you as an individual investor. Whilst we recommend that you review the prospectus of all the chosen assets, more care needs to be exercised when reviewing some of these as they are specialist assets. It is essential that you seek professional advice and review the underlying prospectus to ensure you are aware of the risks relating to this type of asset. You can change your choice of assets whenever you wish unless the asset has been suspended or restricted in some way, subject to any switch fees applicable. All asset changes may involve a dealing charge. You, together with your Fund Adviser, should review your choice of assets regularly and change them if your selection no longer meets your needs. 11. What currency flexibility does my Investment Portfolio+ offer? With Investment Portfolio+ you can choose which of the five currencies you want to make your contribution payment in and receive your valuations. Contribution currency you can make your contribution payment in five different currencies;, US$,, Aus$ and CHF. Contract currency your Investment Portfolio+ can be held in any of the five currencies listed above. You can choose which currency you wish your Investment Portfolio+ valuations to be shown in, although we won t physically convert your money into this currency if different to your contribution currency. The contract currency is also the currency in which the Investment Portfolio+ deductions for charges will be made. In addition to the above, the Investment Portfolio+ Authorised Custodian Facility can hold assets in many different currencies, no matter what currency you choose as your contribution or contract currency. Such exposure will increase your currency exchange risks. 12. How are the assets held? The Investment Portfolio+ holds units in a portfolio fund provided by Old Mutual Isle of Man. These units are linked to the underlying funds or assets you have selected which are owned by Old Mutual Isle of Man. Each of these funds or assets will contribute towards the value and the overall performance of your Investment Portfolio How will I know how the assets within my Investment Portfolio+ are performing? The value of your Investment Portfolio+ is based on the total number of units in your Investment Portfolio+. The value of these units is determined by the value of the underlying assets adjusted by any applicable charges. If the unit or share price of the underlying assets rises or falls, so will the total value of your Investment Portfolio+. When you become a Contract Holder you will be able to register for our Client Centre at where you can access a summary view of all your Old Mutual International contracts We will keep you regularly informed about the value of your Investment Portfolio+ by sending you quarterly valuation statements based on valuation points of 31st March, 30th June, 30th September and 31st December of each year. These will show the opening and closing values of your Investment Portfolio+ quarterly, benefits paid and the charges we have deducted. If you need additional valuation statements, you can get these by asking your financial adviser for an update or log onto If you require further valuations, we may apply a charge for doing so. CHARGES, FEES and COMMISSIONS 14. What payments are made to my financial adviser? Your financial adviser may request to be paid at outset as well as an ongoing investment review fee. At outset: At outset there are two ways in which your financial adviser can be paid. The first option is that you agree we can pay your adviser a commission from the amount we receive to invest in your Investment Portfolio+. The second option is that you agree to pay an Advice Fee by asking us to facilitate a payment to your adviser before the funds received are invested by us. In each case the minimum payment is 3% or 3.42% (if VAT is applicable). Where you agree that we pay your financial adviser commission (option one) we will invest the full contribution received. Your Investment Portfolio+ will be subject to a contract establishment charge over a five-year period which is taken to reflect some of the initial costs of setting up your contract. Should you and your financial adviser agree to take initial commission of less than the maximum, then either the contract establishment charge will be reduced or an increase in the allocation rate will be made. option 1 (Commission) option 2 (Advice Fee) As an example, if you have 100,000 to invest, and agree with your adviser that a commission or Advice Fee of 2.85% (including VAT) is appropriate, then the following are possible outcomes: - Under Option 1 Commission of 2.85% is paid and 100,000 is invested with a contract establishment charge of 0.57%per annum (2.85% / 5) being levied for five years Commission of 2.85% is paid and 0.57% (3.42% less 2.85%) is rebated to the client to give an allocation percentage of %. 100,570 is invested with a contract establishment charge of 0.684% per annum (3.42% / 5) per annum being levied for five years. - Under Option 2 Advice Fee of 2.85% is paid to the adviser and 97,150 is invested. No contract establishment charge applies. Investment Review fee: Where you have agreed to pay an Investment Review Fee to your adviser for ongoing advice you may instruct us to make partial withdrawals (subject to the restricted rules and liquidity) from your Plan of up to 1% or 1.14% if VAT is applicable, per year. 15. WHAT PAYMENTS ARE MADE TO MY FUND ADVISER (also known as DISCRETIONARY INVESTMENT MANAGER)? A fee will be agreed between you and your Fund Adviser for the ongoing discretionary management services in relation to your investments. This fee is a maximum of 1% or 1.14% (if VAT is applicable) per annum and is referred to as the Discretionary Manager Fee. You can pay this fee directly or you can request a regular withdrawal from your Plan (subject to the restricted rules and liquidity) and instruct Old Mutual Isle of Man to pay this to your Fund Adviser. 16. What are the PORTFOLIO FUND charges levied by Old Mutual Isle of Man? The Portfolio Fund charges taken by Old Mutual Isle of Man are provided in the table below. The Annual Management Charge is taken against the Fund Value whilst the Fund Access Fee and Custodian Access Fees are taken against the specific fund or asset as at the previous Quarterly Date or Contribution amount. The charges shown previously are subject to review from time to time. Full details on the review process are within the Investment Portfolio+ General Conditions. For the Authorised Custodian Facility please note the following: Old Mutual Isle of Man is able to refuse to accept an asset either before it is acquired or insist that it is sold after acquisition. Specifically excluded are investments in the equity of Old Mutual plc. and valuations Allocation Percentage Contract Establishment Charge Minimum of 100% of the contribution. Any commission waiver can be used either to reduce the contract establishment charge or to increase the allocation rate by the commission being waived. The contract establishment charge is up to 0.684% p.a. over the first 5 years. If part of the commission is being waived, you and your financial adviser may select to reduce the establishment charge (with no change to the allocation rate). 100% of the Contribution i.e the amount you have sent to us less the Advice Fee. The contract establishment charge is not applicable.

6 CORE AND SELF SELECT funds Standard Annual Management Charge table 35,000 99, % 100, , % 200, , % 350, , % 500, , % 1,000, % If the plan value falls below 35,000 then the Annual Management Charge will be 0.6%. Subject to a minimum fee (calculated on a quarterly basis) of 120 each year Value of assets held within the Authorised Custodian Facility 35,000 99, % 100, , % 200, , % 350, , % 500, , % 1,000, % Subject to a minimum fee (calculated on a quarterly basis) of 300 each year Fund Access Fee The Fund Access Fee is an additional annual fee payable against the Fund Value of the Assets at the previous Quarterly Date or Contribution amount. Core range: 0.0% Self Select: 0.10% Custodian Access Fee The Custodian Access Fee is an additional annual fee payable against the Fund Value of Assets held with the Authorised Custodian at the previous Quarterly Date or Contribution amount. 0.30% Subject to a minimum of 300 (for a 100,000 investment) and is payable in addition to the minimum annual management charge above 17. WHAT THIRD PARTY CHARGES ARE PAYABLE? The electronic transfer of money from one party to another will generally incur a charge made by the financial institution facilitating this payment. This will be deducted from the proceeds and is typically in the range of 20, US$25, 20 and CHF30 or Aus$35 depending upon the currency involved. If you have selected an Authorised Custodian Facility, please ensure that you obtain a copy of and familiarise yourself with the charges detailed in your chosen Custodian s documented details. The safe custody, dealing, settlement and foreign exchange charges will vary depending upon the Authorised Custodian and service selected. Some of the assets which may be held within the Investment Portfolio+ have fees which exist in part to meet the advice, promotion and distribution expenses.these may include initial commission paid by the investment provider to your financial adviser and/or Fund Adviser in respect of the assets held. Further details of whether these apply, and the level of fees and commissions involved, are available from your financial adviser and/or Fund Adviser upon request. 18. How can I make a contribution? You can make your payment by electronic bank transfer in one of five currencies, US$,, Aus$ and CHF. If you wish to make an electronic bank transfer, you can find full information on your application form. Alternatively, you can request to make a payment by an asset transfer should you wish to invest in the Authorised Custodian Facility. Please note that asset transfers are subject to our approval and may take some time to complete. Old Mutual Isle of Man does not facilitate the transfer of assets from your existing Custodian, that responsibility lies with you and the Custodians involved. This transfer process should not be started until Old Mutual Isle of Man confirms all the Investment Portfolio+ paperwork is in order. 19. What happens to my Investment Portfolio+ if I die? (i) You are the sole owner of the Investment Portfolio+ You can choose to have your Plan transferred to a nominated beneficiary rather than to your estate if you are the sole owner at the date of your death. This avoids probate, reduces delay and costs, and gives you the reassurance of knowing what will happen to your Investment Portfolio+ after your death. You may also appoint secondary beneficiaries in the event that your appointed beneficiaries predecease you. Should you fail to nominate a beneficiary your Investment Portfolio+ will form part of your estate. (ii) The Investment Portfolio+ is held in trust The Plan will continue as normal following your death and the outcome will depend on the letter of wishes and the terms of the trust. (iii) The Investment Portfolio+ is held by a company The Investment Portfolio+ will continue following your death as the Company owns the Policy. If you own shares in the company on the date of your death then your shares in the company will form part of your estate and the protocol to be followed will depend on the jurisdiction within which the company is domiciled and any shareholders agreement. 20. Complaints process Customer satisfaction is very important to us at Old Mutual Isle of Man Branch, but if you do have any cause to complain about the service provided, either by your financial adviser or by Old Mutual Isle of Man Branch, you should proceed as shown below. In the first instance you should write to your financial adviser (if your complaint relates to the advice you have been given) or to the Old Mutual Isle of Man Branch Complaints Manager if it concerns the service you have received from Old Mutual Isle of Man Branch. The Complaints Team Manager address is listed below in the Contact Information and we will aim to resolve your concerns. If you are not satisfied with the response you receive and your complaint relates to the administration or service of your Investment Portfolio+ then you can complain to: Isle of Man Financial Services Ombudsman Scheme Government Buildings Lord Street Douglas Isle of Man IM11LE British Isles If your complaint is about the advice that you have received you must first contact your adviser and thereafter the Old Mutual Isle of Man Branch Complaints Manager to try to resolve the complaint. If you are not satisfied with the response that you receive you can direct your complaint to: FAIS OMBUD P.O. Box Lynnwood Ridge 0040 Telephone number: +27 (0) Fax number: +27 (0) address: info@faisombud.co.za Website: Contact information If you need any further information about this product please contact your financial adviser in the first instance. If you wish to contact us directly you can do so by writing to us at: Old Mutual Isle of Man Branch Skandia House King Edward Road Onchan Isle of Man IM 99 1NU British Isles Telephone number: +44 (0) Fax number: +44 (0) Calls may be monitored and recorded for training purposes and to avoid misunderstandings. 22. Compensation and investor protection Old Mutual Isle of Man is not a member of the Isle of Man Insurance Policyholder Protection Scheme. However, Old Mutual Isle of Man reinsures its business and the reinsurance company is a participant insurer for the purposes of the Life Assurance (Compensation of Policyholders) Regulations Due to its relationship with the Reinsurance Company, Old Mutual Life Assurance Company (South Africa) Limited will benefit from the Policyholder Holder Protection Scheme that would be established under the Life Assurance (Compensation of Policyholders) Regulations 1991 (a copy is available on request), in the event that the Reinsurance Company fails, and whilst the reinsurance arrangement is in place. Old Mutual Isle of Man is entitled to reinsure its obligations under Investment Portfolio+. However, this will have no effect on the legal relationship and the rights, duties and obligations between you, the Contract Holder and Old Mutual Isle of Man arising from your policy. Old Mutual Isle of Man s obligations under this relationship remain the responsibility of the Old Mutual Isle of Man Branch and it is the branch which will fulfill such obligations when they fall due. The value of your Old Mutual International Investment Portfolio+ is linked to the value of funds, bank deposits and assets generally managed by third parties such as banks and fund managers. In the event that the provider of any asset, including bank deposits, fails, compensation will depend on the scheme in place where that provider is registered. You should be aware that any compensation arrangements would relate only to Old Mutual Isle of Man s aggregate holdings across all affected policies rather than to individual investors. As a result you may not benefit from any scheme. To ensure you fully understand all the risks and benefits of the Old Mutual International Investment Portfolio+, you should also read the Investment Portfolio+ General Conditions. At Old Mutual International, we believe strongly in the benefit of financial advice and encourage clients to review their circumstances and financial planning needs with their financial adviser before investing in the Investment Portfolio+. Old Mutual Isle of Man is a branch of Old Mutual Life Assurance South Africa. It also forms part of the wealth management business of Old Mutual plc

7 Old Mutual Isle of Man, Branch of Old Mutual Life Assurance Company (South Africa) Limited, is registered in the Isle of Man under number F and whose principal place of business is Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0) Fax: +44 (0) Authorised and regulated by the Isle of Man Insurance & Pensions Authority. Old Mutual Life Assurance Company (South Africa) Limited is incorporated in South Africa (reg. number: 1999/04643/06). Registered office: Mutualpark, Jan Smuts Drive, Pinelands, Cape Town, South Africa. Old Mutual Life Assurance Company (South Africa) Limited is a registered long term insurer and a licensed financial services provider. A Member of the Group OMISA/IP+/037/1.0/0913