THE OLD MUTUAL INTERNATIONAL investment account investments pensions
benefit from our strength and reputation The Investment Account is provided by Old Mutual International Isle of Man Limited Singapore Branch, known as Old Mutual International, one of the world s leading offshore investment solutions providers. When you invest through Old Mutual International you are choosing a large, reputable company that s passionate about innovation, choice and giving you control over your finances. We are renowned for our offshore open-architecture investment accounts, which offer you a breadth of both traditional and alternative asset classes. Ours is a cost-effective way to build an investment portfolio that s tailored exactly to your needs. Old Mutual International is a leading provider of financial solutions designed for both expatriate and local investors across the world, including Africa, Asia, Europe, Latin America, the Middle East and the United Kingdom. Our products and solutions are underpinned by a wide choice of investments and ways to monitor and manage them online, with the help of your financial adviser. What makes us stand out is the flexibility of the solutions we offer. They are designed so that you can tailor them to suit your individual financial needs and ultimately help you achieve your life goals, whether that s growing or preserving your financial worth, helping your children get on in life or simply retiring active and happy. Old Mutual International is the international arm of Old Mutual Wealth, a leading retail investment business. Old Mutual Wealth is a core part of Old Mutual plc, one of the world s largest financial services companies. Founded in 1845, Old Mutual is a FTSE 100 company overseeing 300.5 billion in investments for 16 million customers worldwide (as at 30 June 2014). 3
welcome to the investment account Old Mutual International has always been committed to innovation, value, flexibility and quality service. We realise you need access to the widest possible range of investment opportunities. But we also recognise the burden of monitoring and varying a large number of different asset types over the long term. The Investment Account can help you manage your worldwide assets easily and efficiently. The Investment Account is an investment-linked whole of life assurance policy. Its primary use is not for insurance, but as an offshore investment account to hold assets chosen by you. The value of the policy s benefits will depend solely on the performance of these assets which we hold in a Portfolio Fund. They are held in the name of, and owned by, Old Mutual International. You choose which assets are in the fund according to your goals and attitude to risk, so you can tailor your portfolio to meet your individual needs. You then have the added convenience of being able to view all of your assets in one place. This brochure provides you with an overview of the Investment Account only. You can find full details in the Product Summary (which includes information on the risks you should be aware of) and Terms and Conditions. Please ensure you have read all items before you invest. The value of your Investment Account can fall as well as rise. Some assets are more susceptible to risk than others, so you should select a portfolio that matches your risk appetite. 4
investment freedom through wider choice Financial markets are becoming more sophisticated and investors are demanding access to a wide range of asset classes. Our Investment Account is designed to give you the freedom to construct an investment portfolio that s just right for you. We believe that an open-architecture approach to investing gives you greater flexibility through a wider range of investment opportunities and a higher degree of portfolio customisation. So our leading offshore investment accounts offer you a wide range of assets from a large number of third party fund managers and other organisations. Your Investment Account lets you access the following assets, subject to them being acceptable to Old Mutual International: Collective Investment Schemes you can select from any collective investments that are authorised by MAS (Monetary Authority of Singapore Singapore financial regulator) or recognised under section 286 and 287 of the SFA (Cap 289) stocks and shares or fixed interest securities quoted on recognised stock exchanges eurobonds and various multi-currency deposits alternative investments for example hedge funds, structured notes, and exchange traded funds. 5
about the investment account You can find full details of the Investment Account in your Product Summary, Policy Terms and your guide to life assurance all of which are available from your financial adviser. Please ensure you have read these before you invest in the Investment Account An investment that can adapt to your changing circumstances If your status changes to an Accredited Investor, as defined by the Monetary Authority of Singapore, we can amend your policy to allow you to choose from collective funds in addition to those approved or authorised by the MAS, giving you even greater investment choice. Administration and paperwork made easier for you Paperwork and record keeping can be tedious and time-consuming when managing a diverse portfolio. With the Investment Account, Old Mutual International takes care of all this and manages the paperwork on your behalf. We create a portfolio fund which holds only the assets you select. Running your Account is easy. You can get valuations quickly and easily at any time by using our on-line facility. Buying and selling is also simple, as you only need to send one form to Old Mutual International. You don t need to deal with individual fund managers or stockbrokers. Once an Account is open, you can invest in a wide range of retail investment funds at a reduced cost. With Old Mutual International s substantial buying power, we can normally reduce entry fees to a level that s not usually available to individual investors. These savings on the underlying investment funds can make the Investment Account a cost-effective investment solution. Transfer and consolidate your existing assets To make it even easier for you to set up your Account and reduce dealing costs, you can transfer your existing assets to your Account. This will be a sale of the assets to Old Mutual International so you need to check if this will give rise to a tax liability in your country of residence. This will normally be by in-specie transfer, which means assets are transferred from your own name to Old Mutual International. These can include collective funds, stocks and shares traded on major stock exchanges and are subject to our approval. 6
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stability and security The Investment Account is designed to give your investment every opportunity for growth in the secure and tax-efficient environment of the Isle of Man. Policyholder protection Policyholder protection schemes are regarded as a safety net for policyholders of a life assurance company and allow policyholders to claim for compensation in the unlikely event the life company becomes insolvent. The rules governing schemes and specific rights for each policyholder vary from one jurisdiction to another and in some jurisdictions there is no scheme at all. Of all the major offshore centres, the Isle of Man is one of only a few that has a statutory compensation scheme for life assurance companies. This compensation scheme is a result of the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 which protects all investors whose policies were effected on, or since, 1 February 1991. investors in policies issued by Isle of Man authorised life assurance companies are protected worldwide. in the unlikely event that a life company is unable to meet its liabilities, the policyholder will be protected by this compensation scheme. The compensation scheme offers investors up to 90% of the policy value less any contractual charges associated with the policy, and there is no upper monetary limit. The scheme is funded by a levy on the funds of Isle of Man authorised life assurance companies. In common with all Isle of Man life insurers, if there is a call on the scheme, we may be required to pay a levy of up to 2% of our funds linked to policies in the scheme. Should such a levy be made your investment is likely to be reduced by an equivalent percentage. It should be noted that this protection only applies if the life company, Old Mutual International, is unable to meet its liabilities. The value of your Old Mutual International policy is linked to the value of bank deposits and investments generally managed by third parties such as banks and fund managers. If the provider of such bank deposits and investments fails or is unable to meet its obligations, this particular compensation scheme will not cover such losses. 8
opening your investment account You can open your Investment Account with an initial investment of at least US$75,000, S$150,000 or 50,000 (or currency equivalent of 50,000). You can do this with a lump sum payment or by transferring assets from elsewhere. Please note that we can only accept the transfer of collective investments that are approved or authorised by MAS. If you intend to transfer assets which are held outside of Singapore, you should find out whether the transaction will be taxed. If you want, you can pay additional lump sums in the future, subject to a minimum amount of US$7,500, S$15,000 or 5,000 (or currency equivalent of 5,000). We will set up a transaction account which will be used for all transactions payment of premium, purchase and sale of assets, withdrawal payments and relevant charges. Investment Account charges You can find details of the charges that may apply in the Investment Account Product Summary. Your financial adviser will discuss and agree with you the precise charging structure and terms that suit your individual needs. Creating your portfolio If you have an investment adviser, he will work with you to understand your needs and your financial goals over an appropriate time period, and will recommend the most appropriate mix of assets and asset classes. He will also help you to understand any risks associated with this type of policy or your chosen investments. You then need to choose the assets you would like us to hold in your Portfolio Fund. When you complete your application form, you need to tell us which assets to buy for your portfolio. For future transactions you will need to complete a dealing instruction form. Please remember that Old Mutual International only offers products through financial advisers and does not give investment advice. We also have no responsibility for the performance of your chosen assets. You and your investment adviser must ensure you are satisfied that any particular asset is suitably based on your needs, objectives and risk appetite. You should familiarise yourself with any particular risks associated with any assets. For example, there may be currency risks if assets are denominated in another currency, or there could be liquidity and valuation risks for property funds. The value of assets linked to the Portfolio Fund determines the value of the policy, and can fall as well as rise. Income accruing to underlying assets, if any, may also fall and rise. 9
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tax efficiency Old Mutual International is located in the politically stable and tax-efficient offshore centre of the Isle of Man, so any growth on your investment will be virtually free from tax. Old Mutual International does not currently pay income and capital gains tax on its policyholder funds. However, certain investment income may be subject to withholding tax, which cannot be reclaimed. This depends on the country in which the underlying investments are based. If you are transferring existing assets into the Investment Account there may be tax consequences. It is therefore important you check your position with your financial adviser before investing. We cannot guarantee that tax relief and tax treatment of funds will remain the same in the future. The value of any relief will depend on your individual financial circumstances. 11
benefits of using the investment account With the Investment Account, you can: Choose your assets non-accredited investors can choose from collective investment schemes that are authorised or recognised by the Monetary Authority of Singapore (MAS), fixed interest securities, stocks and shares quoted on any recognised stock exchange, eurobonds and currency deposits, banks and similar deposits, plus other assets allowed by the Isle of Man and Singapore legislation. Choose your currencies your Investment Account can take investments in any major currency. Consolidate your existing assets you can hold your existing/new assets in one investment account. There is no need to sell and repurchase your assets that you transfer to your Investment Account, so you are never out of the market. Adapt your Investment Account as your needs change you have the flexibility to change the emphasis from capital growth to income. Track all your assets through one statement this reduces your personal administration and makes it easier to keep track of the value. receive valuations in your thinking currency no matter what the base currency of your assets, the total value of your Investment Account is summarised in the major currency of your choice. Convert sales proceeds to a different currency when it suits you cash received from sales can be allocated to multi-currency cash accounts until the next investment decision is made, so you can decide when you want to exchange currencies. 12
The Investment Account also provides: Convenience the paperwork required to set up your Investment Account is kept to a minimum and there s a simple dealing form to buy/sell all assets. You can quickly and easily change underlying assets, as we complete all anti-money laundering requirements when you open your Investment Account. institutional discounts thanks to Old Mutual International s institutional buying power, we can negotiate competitive entry fee discounts with a large number of fund management groups and pass these back to you. Collection of Interest/Dividends/Fund Distributions/Coupons Old Mutual International will collect all of the distributions of income from your chosen investments and allocate to your cash account, until the next investment decision is made. Protection the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991, provides compensation of up to 90% (no monetary limit), in the unlikely event that the insurer became unable to meet its liabilities. The Insurance Act in Singapore also provides for the Policy Owner s Protection Fund (PPF) to compensate policyholders in the unlikely event that a registered insurer fails. Under current provisions, the PPF will cover up to 90% of an insurer s liability from any life policy. revocable nomination amendment to the Insurance Act in Singapore gives you an optional revocable nomination form, which lets you keep full rights and ownership of your Account while providing a flexible, affordable and legal way to distribute the account benefits to your chosen nominees if you die. Tax-efficiency and confidentiality assets held offshore on the Isle of Man grow virtually tax-free, subject to any withholding tax payable. 13
further information If you would like more information about Old Mutual International you should speak to your financial adviser. You can find full details of the Old Mutual International Investment Account in the Terms and Conditions, also available from your financial adviser. Once your Account has been set up you can contact us through your local Old Mutual International Singapore Branch. This document is based on our understanding of the taxation and legal framework in Singapore as at January 2014. However, we have only been able to indicate the general tax position. So whilst every effort has been made to ensure the accuracy of this document, we do not give legal or tax advice and can accept no responsibility for any act or failure to act based upon its content. Therefore, we strongly recommend you seek independent taxation and legal advice regarding the suitability of any particular product for your own personal circumstances. 14
00000 This brochure was last reviewed in January 2014. Please confirm with your financial adviser that this is the most up-to-date document for your product or servicing needs. www.oldmutualainternational.com Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual International is the registered business name of Old Mutual International Isle of Man Limited Singapore Branch. Old Mutual International Isle of Man Limited Singapore Branch, 50 Collyer Quay, OUE Bayfront, #05-07, Singapore, 049321. Phone: +65 6216 7990 Fax: +65 6216 7999. Registered in Singapore Number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme. Old Mutual International Isle of Man Limited a member of Old Mutual plc. Registered Office/Head Office: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Authorised and regulated by the Isle of Man Insurance and Pensions Authority. Old Mutual International Isle of Man Limited is a member of the Association of International Life Offices. Old Mutual International is registered in the Isle of Man as a business name of Old Mutual International Isle of Man Limited. When printed by Old Mutual this item is produced on a mixed grade material, which uses a combination of recycled wood or paper fibre from controlled sources and virgin fibre sourced from well managed, sustainable forests. SK6395/INT13-0985R/January 2014