TAX FREE PLAN - Old Mutual

THE OLD MUTUAL INVEST
TAX FREE PLAN
INTERMEDIARY TECHNICAL GUIDE
Let’s get South Africa saving.
PLEASE NOTE:
• This reference guide does not constitute advice. The information is of a general nature and
should not substitute detailed financial planning.
• The term “advisers” is inclusive of Old Mutual financial advisers, Agency Franchise Division
(mandated agents), Private Wealth Management, bank brokers and Independent Brokers.
• Although we have taken care in compiling this guide, it may contain inaccuracies,
typographical errors and become outdated. Old Mutual Life Assurance Company
(South Africa) Ltd cannot accept liability for any loss, damage or expense that may be
incurred as a direct or indirect consequence of reliance placed on this guide.
• Where the contents of the customer’s contract and Terms and Conditions differ from the
descriptions or definitions in this guide, the contract and Terms and Conditions will prevail.
• This guide is correct as of March 2015.
CONTENTS:
SECTION A:
INTRODUCING THE OLD MUTUAL INVEST TAX FREE PLAN
4
SECTION B:
OVERVIEW AND CUSTOMER ROLES
5
SECTION C:
PRODUCT RULES
9
SECTION D:
ADVISER FEES
15
SECTION E:
PRODUCT FEES AND CHARGES
19
SECTION F:
INVESTMENT MAXIMISERS
19
SECTION G:
CHANGES TO THE PLAN
21
SECTION H:
INVESTMENT FUNDS
23
SECTION I:
MARKETING SUPPORT AND SERVICE ADMINISTRATION
27
SECTION A:
INTRODUCING THE OLD MUTUAL
INVEST TAX FREE PLAN
Imagine the peace of mind that comes from having an investment that
allows your customers to save for their dreams and goals, gives them
access to their money at any time, and offers them payment flexibility
at no cost. Not just that, but a tax free investment – an investment
where your customers get their full investment return without being taxed on
any of the growth they have earned.
With the Old Mutual Invest Tax Free Plan, they can have
all that and more.
4
SECTION B:
OVERVIEW AND CUSTOMER ROLES
OVERVIEW
THE TAX FREE PLAN
The Tax Free Plan is a simple and transparent savings solution for your customers’ savings needs.
All growth in the plan is completely tax free. With flexibility, accessibility and no penalties, the
Tax Free Plan puts your customers in control and encourages them to save, while giving them the
peace of mind of knowing they can access their money at any time.
Key product features:
All growth on your customer’s plan is tax free
All proceeds to your customer are tax free
Transparent fees and charges
Your customers choose how they want to invest – with lump sums, regular investments or
a combination of both
They have full access to their savings – from day one – with no penalties
They can increase, decrease or stop their regular investments at any time
They have the choice of a range of underlying investment funds to meet their unique
investment strategies
The option to switch their underlying investment funds as many times as they like at no cost
There is no term attached to their plan so they choose how long and how often to invest
INVESTMENT FUNDS
The streamlined range of funds caters to your customers’ specific investment strategies.
They can choose funds that vary in risk – from low and medium, to high risk.
Old Mutual also offers tracker funds that give customers the ability to invest as affordably as
possible while still giving them exposure to growth assets.
Along with investment funds managed by Old Mutual, our selected range also includes funds
managed by leading fund managers including Nedgroup Investments, Coronation, Prudential and
Investec. These funds are referred to as ‘external funds’.
NO TRANSACTIONAL CHARGES
No transactional charges will apply if the customer decides to:
• increase, decrease or stop their regular investments
• withdraw from the plan
• switch between underlying investment funds
A transactional charge may apply if a customer transfers their plan to another provider.
5
INVESTMENT MAXIMISERS
Reduction in administration charges for Old Mutual funds
Customers who invest in funds managed by Old Mutual will receive a reduction in their
administration charges.
Refund of administration charges
Customers who contribute the full R30 000 annual allowance will receive a refund of a
portion of their administration fees after the end of every tax year.
LEGISLATION
Life Pure Investment
The Tax Free Plan is sold under the Life Licence and is governed by the Long Term Insurance Act
(LTIA) and Income Tax Act. Certain criteria have however been waived/introduced in order for the
plan to fulfil the requirements of a tax free plan.
1. There are no Section 54 liquidity constraints.
2. There is an annual and lifetime limit on contributions – as dictated by the government.
Annual and lifetime limits on contributions
The government has placed annual and lifetime limits on the contributions that can be made into
tax free plans. The annual allowance for contributions in a tax year is R30 000. This maximum
allowance is expected to be reviewed regularly by the government. The lifetime allowance for
contributions is R500 000.
If a customer has more than one tax free plan, the maximum of R30 000 per tax year applies
across all their tax free plans, not per plan.
If your customer sets up a regular investment, the R30 000 per tax year maximum means
they can invest up to R2 500 per month (if they invest for the full 12 months). If they start their
investment later in the tax year, they could select a higher regular investment.
Example
Start date: October 2015
Months remaining for that tax year (ending February 2016): 5
Maximum regular investment: R30 000/5= R6 000 per month.
At the start of the next tax year (March 2016), we will reduce your R6 000 monthly investment
to R2 500 to ensure you do not exceed the annual allowance for that tax year.
Even though there are limits as to how much your customers can invest, there
are no limits on the growth of their investment. The longer they stay invested,
the more they benefit from tax free growth.
6
The South African Revenue Services will levy a tax of 40% on all contributions exceeding
R30 000 per tax year. Remember the tax year is from the beginning of March to the end of
February the following year.
For example, if your customer contributes R40 000 in a tax year:
Total amount invested
R40 000
Amount over-contributed
R10 000
Tax the customer will owe SARS
R4 000*
*(R10 000 x 40% = R4 000)
CUSTOMER ROLES
CONTRACTING PARTY
• The contracting party is the owner of the plan.
• The contracting party is entitled to the rights and is responsible for the obligations
under the plan.
• The contracting party must be a natural person.
• A replacement contracting party is not applicable to the Tax Free Plan.
LIFE COVERED
The contracting party will also be the life covered applicable to the plan.
NOMINATED BENEFICIARIES
The plan will cease on the death of the contracting party.
The contracting party can nominate one or more beneficiaries to receive the proceeds of the
Tax Free Plan on their death. This means they can save on executor fees and their beneficiaries
can receive the proceeds quicker.
If no beneficiaries have been nominated, the Tax Free Plan will be part of the contracting party’s
estate for the purposes of determining executor fees.
7
SECTION C:
PRODUCT RULES
INVESTMENT TERM
The Tax Free Plan is an open-ended plan that has no specified term. Your customers can choose
how long they want to contribute for, and also how long they want to keep their money invested.
MINIMUM CONTRIBUTIONS
Customers can choose whether they would like to make regular investments or lump sum
investments, or have a combination of the two.
INVESTING IN OLD MUTUAL FUNDS
Regular investments
R350 per month
Lump sum investments
R5 000
(If customers have a regular investment set up, this
minimum reduces to R1 000)
The minimum regular investment above should be adjusted proportionately for other payment
frequencies, e.g. R350 per month, R1 050 per quarter, R2 100 half-yearly or R4 200 per year.
INVESTING IN EXTERNAL FUNDS
Regular investments
R1 000 per month
Lump sum investments
R5 000
(If customers have a regular investment set up, this
minimum reduces to R1 000)
The minimum regular investment above should be adjusted proportionately for other
payment frequencies e.g. R1 000 per month, R3 000 per quarter, R6 000 half-yearly or
R12 000 per year.
If a customer meets these external fund minimums, they can have a combination of
Old Mutual and external funds.
Old Mutual reserves the right to change these minimums at any time.
9
METHOD OF PAYMENT
Regular investments
Debit order
• Payment can be made by bank debit orders.
• The customer may specify the day of the month the debit order must be lodged.
• If a debit order is unsuccessful, due to insufficient funds in the customer’s bank account,
we will cancel the debit order after 3 failed attempts.
Stop order
• Only an automatic stop order facility will be accepted and this is restricted to certain
companies/institutions that are on Old Mutual’s approved list of companies.
• Stop order payments are always due on the first day of the month. The customer cannot
specify the day of the month the regular investment must be paid.
Once the method of payment is selected, customers have the option to change their future method
of payment from debit order to stop order, and vice versa.
Lump sum investments
Debit order
• Old Mutual can raise a once-off debit order from the customer’s bank account.
• The customer may specify the day of the month the debit order must be lodged.
Deposits/EFTs
Customers can make a deposit into the following Old Mutual Invest bank account:
Name of Bank: Standard Bank
Account holder: Old Mutual Life Account
Branch:
Cape Town
Branch code:
020009
Account number:07-024-4162
Account type: Current
Payment reference: The proposal number of the plan or the identity number of the contracting
party must be used as a reference.
PAYMENT FREQUENCY
•
For regular investments, the following frequencies are allowed:
Debit orders: monthly, quarterly, half-yearly and annual investments will be accepted.
Stop orders: only monthly investments will be accepted.
Once the payment frequency is selected, customers have the option to change their
future regular investments to any of the available payment frequencies.
• Lump sum investments can be made as, and when, the customer is able to.
10
COOL-OFF PERIOD
• The cool-off period is 30 days from receipt of each investment, during which the customer can
cancel the plan.
• On cool-off, the total amount of investments made, less any market loss (if applicable), will be
disinvested at the earliest opportunity after the date that the written request is received by
Old Mutual.
• Payment to the customer may only be made after a minimum period of 40 days from the date
that the investments were due.
• Cool-off will not be allowed where:
• The customer has already received some of the proceeds of their plan(s).
• The customer has increased or decreased the regular investment amount.
• The customer has switched between investment fund/s.
• The customer’s request for any other voluntary change(s) to the plan(s) has been approved.
• An income tax certificate has been issued for the plan(s) (or any other requirements as
determined by SARS in terms of practice or legislation).
INCREASING OR DECREASING REGULAR INVESTMENTS
When a regular investment is increased or decreased, the following rules will apply:
• The regular investment change can be processed at any time for the next due date.
Allowance needs to be made for debit order and stop order lead times (usually three working
days for debit orders and two months for stop orders before the next due date).
• For investment increases: adviser fees will be paid to the current or new intermediary(ies), if
applicable.
• For investment decreases: no adviser fees are clawed back from the adviser.
• Once a change has been requested, the changed investment amount will be the new regular
investment.
• The changed investment amount needs to comply with the minimum investment rules at the time
of the request.
• When increasing investment amounts, customers must ensure that their increase will not result
in them investing more than the annual allowance dictated by government.
11
SCHEDULED ANNUAL INCREASE
• The contracting party has the option to select an automatic scheduled annual
increase on their regular investments.
• This facility allows the customer to automatically increase their regular investments once a year
by a specified percentage to ensure that their investment keeps pace with inflation.
• Regular investments can be increased by any whole percentage (up to 99%), the customer
can select an inflation-linked increase at a rate determined by Old Mutual every year, or
they can choose Education Inflation (based on June-to-June total inflation rate for primary,
secondary and tertiary education according to Stats SA).
• The default date will be the anniversary date of the plan each year. Customers can
subsequently change this date.
• The chosen scheduled annual increase rate can be changed at any time before the next
scheduled annual increase takes place (allowance needs to be made for debit order and
stop order lead times – usually 3 working days for debit orders and 2 months for stop orders
before the next regular investment’s due date).
• The customer may choose not to increase their regular investments in any particular year.
• Once the scheduled annual increase has been taken, the increased investment amount will
become the new regular investment.
• If, at any time, applying the chosen scheduled annual increase will result in your customer
exceeding the annual allowance, we will reduce the scheduled annual increase accordingly.
Once the new tax year begins, we will adjust your customer’s investment amount with the
scheduled annual increase they have selected.
CHANGE IN DUE DATE FOR REGULAR INVESTMENTS
• The due date of regular investments may be changed for debit order payments only.
• The due date may be changed to any date.
• Due date changes can only be made three or more working days before the investment
amount is deducted (as a result of the debit order lead time required by the bank).
SWITCHING UNDERLYING INVESTMENT FUNDS
Customers have the option to switch the underlying investment funds they have selected for their
plan. There are no additional costs for switching funds.
WITHDRAWALS (ONCE-OFF)
• The contracting party may apply for a disinvestment at any time from their plan.
• The percentage to be disinvested from each investment fund, or the rand amount must be
specified.
• There are no restrictions on the number of disinvestments allowed, but customers need to be
aware that disinvestments do not reduce the total contributions they have made for the tax
year. Any money withdrawn does not get deducted from your customer’s annual allowance.
This means that if they have paid R30 000 in a tax year and withdraw R10 000, they will
not be allowed to reinvest that R10 000 until the following tax year.
• Amounts that have been paid but that have not yet been cleared in our bank account, may be
held back until they have been cleared.
• Withdrawals can only be paid into the bank account of the contracting party and will be
paid within 7 days.
12
WITHDRAWALS (REGULAR)
• The contracting party must specify either the rand amount, the percentage of each investment
fund, or select that the withdrawal must be made proportionately from each investment fund to
facilitate the disinvestment.
• The minimum regular withdrawal amount is R100 per month and the maximum will equal the
total fund value at the time of the request.
• There are no restrictions on the number of disinvestments allowed, but customers need to be
aware that disinvestments do not reduce the total contributions they have made for the year.
Any money withdrawn does not get deducted from your customer’s annual allowance. This
means that if they have paid R30 000 in a tax year and withdraw R10 000, they will not be
allowed to reinvest that R10 000 until the following tax year.
• Amounts that have been paid but have not yet cleared in our bank account, may be held
back until they have been cleared.
• Withdrawals can only be paid into the bank account of the contracting party.
ZERO INTEREST LOANS
Zero interest loans are not applicable to the Tax Free Plan.
PLAN CANCELLATION
• The contracting party may apply for a plan cancellation on their plan at any time.
• All units will be disinvested from each investment fund.
• A plan cancellation results in the investment plan ceasing and all future regular investments
will be cancelled.
• If a plan cancellation is requested during the cool-off period then the cool-off proceeds will be
payable provided all the criteria in the cool-off period section (noted above) are met.
• If a plan has a zero fund value for more than 90 days after the start date, we will
automatically cancel the plan.
CESSIONS
Both security and outright cessions are not applicable to the Tax Free Plan.
DEATH OF THE CONTRACTING PARTY
If beneficiaries have been nominated:
The nominated beneficiaries will receive the proceeds of the Tax Free Plan according to the
allocated shares that the contracting party has indicated.
If no beneficiaries have been nominated:
If no beneficiaries have been nominated, the Tax Free Plan will be subject to executor fees.
13
SECTION D:
ADVISER FEES
Adviser fees could be a combination of the following:
Financial planning fee: only payable when a regular investment is set up and
can be negotiated up to the amount of the first regular investment (capped at R2 500).
As-and-when advice fee: negotiable between 0–3.42% of each investment (inclusive
of VAT where applicable)
Ongoing advice fee: negotiable between 0–1.14% per year (calculated as a
percentage of fund value).
INITIAL ADVICE
FINANCIAL PLANNING FEE
The financial planning fee is payable by the customer to the adviser for the initial (upfront)
financial advice given on choosing this plan and the appropriate underlying investment funds.
The financial planning fee is:
• Only payable when a regular investment is set up on the plan.
• Chosen by the customer as a rand amount up to the equivalent of the first
regular investment paid by the customer. This amount is capped at R2 500 (incl. VAT).
• Only payable when the plan is taken out (ie. is not payable on any subsequent investments
into the plan).
The financial planning fee can be paid in one of two ways:
1. Paid from the first regular investment
The customer can choose to pay the financial planning fee as a once-off amount upfront, funded
by the first regular investment.
In this scenario, the financial planning fee is deducted from the first regular investment and the
net amount is invested into the customer’s chosen investment funds.
2. Paid as a monthly charge
The customer can choose to pay the financial planning fee as a monthly charge which is
deducted from their fund value until the full financial planning fee has been paid off.
The financial planning fee will be calculated as an annual charge of 0.6% of the fund value,
which will be payable monthly until the financial planning fee has been paid off.
15
ONGOING ADVICE
Ongoing advice fees are payable for the ongoing advice on the continued suitability of the
chosen investment funds and the product in general.
Your customer may pay for this advice in the form of one, or a combination, of the following:
As-and-when advice fee
The as-and-when advice fee is payable by the customer to the adviser as, and when, each
investment is made.
• The customer can pay the adviser an as-and-when advice fee of up to 3.42% of each
investment – payable as, and when, each investment is made.
• The advice fee is inclusive of VAT.
• The fee is scalable (0–100%).
• The net amount after this fee is invested into the plan.
• This fee can be amended by the customer at any stage and the new rate will be effective on
the next investment.
If the financial planning fee is being paid from the first regular investment
and the customer has also agreed to pay an as-and-when advice fee, the
as-and-when advice fee will only start on the regular investment following
the one that funds the financial planning fee. This means that both a financial
planning fee and an as-and-when advice fee cannot be deducted from the
first regular investment.
The R30 000 annual allowance per tax year is calculated net of the financial
planning fee (only if it is funded from the first regular investment) and the
as-and-when advice fee.
Ongoing Advice Fee
The ongoing advice fee is deducted monthly from the fund value.
• A monthly ongoing advice fee of up to 1.14% of the total fund value of the investment is
allowed per year.
• This fee is paid at the end of every month by disinvesting units proportionally from the
underlying investment funds.
• This fee is inclusive of VAT.
• The fee is scalable (0–100%).
• This fee can be amended by the customer at any stage and the new rate will be effective on
the next deduction.
The as-and-when advice fee and the ongoing advice fee work together in
that the maximum of both cannot be charged. If a higher as-and-when fee
is negotiated, then the ongoing advice fee must reduce accordingly, and vice
versa. The sum of the scaling of the as-and-when fee and the ongoing
advice fee must not equal to more than 100%.
16
As-and-when advice fee
Ongoing advice fee
Fee (% of investment
amount)
Scaling
Fee (% of fund value)
3.42%
100%
0.00%
0%
2.57%
75%
0.29%
25%
1.71%
50%
0.57%
50%
0.86%
25%
0.86%
75%
0.00%
0%
1.14%
100%
Scaling
ALLOWABLE CHANGES TO ADVISER FEES
Changes to the rate of future unpaid adviser fees:
The customer can change the level of future unpaid adviser fees within the maximum allowable
limits. Any adviser fees already paid cannot be changed.
The following specific changes are allowed:
•
•
•
•
Changing the rate of as-and-when advice fees on future investments.
Specifying the rate of as-and-when advice fees on specific lump sum investments.
Changing the rate of future ongoing advice fees.
Changing the adviser to which future unpaid adviser fees are to be paid.
An Adviser Fee Change form needs to be completed in order to request these changes.
CLAWBACK OF ADVISER FEES (ONLY APPLICABLE TO FINANCIAL PLANNING FEE)
Adviser remuneration account
An adviser remuneration account is set up for each Tax Free Plan where the financial planning fee is
paid as a monthly charge.
On any transaction where financial planning fees are clawed back from an adviser, the adviser
remuneration account will be reduced by this amount. The adviser remuneration account will grow
at a rate of interest equal to the current prime lending rate less 2% per year. The prime rate will vary
according to changes made by the RSA Reserve Bank.
The financial planning fee will be clawed back on the following events:
•
•
•
•
When a regular investment was due and not received (reversal)
Withdrawals (proportionately on the withdrawal amount)
Plan cancellation
Regular investments which are cancelled after 3 failed attempts
17
SECTION E:
PRODUCT FEES AND CHARGES
ADMINISTRATION CHARGE
An administration charge of 0.75% per year will be deducted at the end of each month from
the fund value via a cancellation of units for the ongoing administration of the plan. This
administration charge will be a minimum of R20 per month unless a regular investment is in place.
This charge may be increased annually with inflation as determined by Old Mutual.
The administration charge can be reduced and a part is refunded in certain circumstances. These
reductions and refunds are called Investment Maximisers. (See Section F for more on Investment
Maximisers)
ASSET MANAGEMENT FEES
• Asset management fees are deducted by the fund managers of the underlying investment funds.
• The fee varies from investment fund to investment fund.
(The Fund Performance Guide can be referred to for a detailed list of funds
and their respective fees.)
SECTION F:
INVESTMENT MAXIMISERS
The Old Mutual Invest Tax Free Plan offers your customers
Investment Maximisers to make the most of the growth on
their investment through:
REDUCTION IN ADMINISTRATION CHARGES:
When customers choose underlying funds managed by Old Mutual, we reduce the administration
charge on those funds by a third. This means the administration charge on Old Mutual funds
reduces from 0.75% to 0.50% per year.
REFUND OF ADMINISTRATION CHARGES:
After each tax year, we check whether your customer has invested their full R30 000 annual
allowance (or the new allowed maximum as announced by the government each year). If they
have, we will refund a portion of the administration charges that they paid as follows:
• If they are invested in Old Mutual funds, we will refund half of all the administration charges
they paid on those funds in that tax year. This means their administration charges will drop
from 0.50% to 0.25% per year.
• If they are invested in funds managed by fund managers other than Old Mutual, we will
refund a third of all the administration charges they paid on those funds in that tax year. This
means their administration charges will drop from 0.75% to 0.50% per year.
The refunded administration charge will be invested proportionally into the investment funds that
the customer is invested in at the time the refund is made.
19
SECTION G:
CHANGES TO THE PLAN
CHANGES ALLOWED
• Customer details e.g. address, phone numbers, bank account details.
• Beneficiary nomination and allocation changes.
• Personalised naming (purpose for saving).
• Increase regular investment.
• Decrease regular investment.
• Cancel regular investment.
• Addition of scheduled annual increase.
• Change in scheduled annual increase percentage.
• Make lump sum investments.
• Change method of payment from stop order to debit order or vice versa.
• Regular investment due date change.
• Adviser fee changes – both the amount and the recipients.
• Switch underlying investment funds.
• Withdrawals – regular and once off.
CHANGES NOT ALLOWED
• Change of ownership – outright cession.
• Security cessions.
21
SECTION H:
INVESTMENT FUNDS
INVESTMENT STRATEGIES
The investment strategies for the Tax Free Plan are based on Inflation+ targets. These targets
represent the returns targeted by the fund after the deduction of asset management fees.
The table below shows the investment strategies available on the Tax Free Plan:
Investment Strategies
Enhanced income
Inflation plus 2–3%
Inflation plus 3–4%
Inflation plus 4–5%
Inflation plus 5–7%
Maximum return
The characteristics of each investment strategy are as follows:
Enhanced income
This strategy has the following characteristics:
• Aims to achieve returns in excess of those from money markets (after asset management fees),
while attempting to avoid capital loss over any 12-month period.
• There is no guarantee against returns being eroded by inflation.
• The recommended minimum investment period to achieve this return is 1 to 2 years.
• Requires a diversified investment portfolio predominately holding interest bearing assets.
• Returns will have very low volatility.
Inflation plus 2–3%
This strategy has the following characteristics:
• Aims to achieve returns exceeding inflation by 2% to 3% per year (after asset management
fees), while limiting the risk of capital loss over a 12-month period.
• The recommended minimum investment period to achieve this return is 2 to 3 years.
• Requires a diversified investment portfolio concentrated in income bearing assets.
• Returns will have some volatility due to investment in growth assets.
23
Inflation plus 3–4%
This strategy has the following characteristics:
• Targets returns exceeding inflation by 3% to 4% per year (after asset management fees), while
limiting the risk of capital loss over a 12 to 18 month period.
• The recommended minimum investment period to achieve this return is 3 to 5 years.
• Requires a diversified investment portfolio balancing income bearing and growth assets.
• Returns will have moderate volatility due to investment in growth assets.
Inflation plus 4–5%
This strategy has the following characteristics:
•
•
•
•
Targets returns exceeding inflation by 4% to 5% per year (after asset management fees).
The recommended minimum investment period to achieve this return is 5 to 7 years.
Requires a diversified investment portfolio concentrated in growth assets.
Returns will be volatile due to investment in growth assets.
Inflation plus 5–7%
This strategy has the following characteristics:
•
•
•
•
Targets returns exceeding inflation by 5% to 7% per year (after asset management fees).
The recommended minimum investment period to achieve this return is 7 to 10 years.
Requires a diversified investment portfolio concentrated in growth assets.
Returns will have significant volatility and extended periods of negative returns are possible.
Maximum return
This strategy has the following characteristics:
• Targets returns in line with the maximum return available from conventional growth assets over
the long term (after asset management fees).
• The recommended minimum investment period to achieve this return is 10 years.
• Requires an investment portfolio with close to 100% exposure to growth assets.
• Returns will be very volatile and long periods of negative returns are possible.
24
FUND ALLOCATION
Customers select their funds in two steps:
1. Choose their investment strategy
Enhanced income
Inflation plus 2–3%
Inflation plus 3–4%
Inflation plus 4–5%
Inflation plus 5–7%
Maximum return
2. Design their portfolio
Based on the option selected in the first step, customers will be defaulted into the following funds:
Investment strategy
Default fund
Enhanced income
Old Mutual Enhanced Income Fund
Inflation plus 2–3%
Old Mutual Real Income Fund
Inflation plus 3–4%
Old Mutual Stable Growth Fund
Inflation plus 4–5%
Old Mutual Balanced Fund
Inflation plus 5–7%
Old Mutual Flexible Fund
Maximum return
Old Mutual Maximum Return Fund of Funds
Even though these funds are the defaults, customers can select any funds from the fund range
table above. However, doing so may result in their fund selection not being aligned with their
investment strategy.
Customers must invest a minimum of the larger of 5% of their investment, or R100, into each investment
fund.
SECTION I:
MARKETING SUPPORT AND SERVICE
ADMINISTRATION
The following support has been designed to assist you in marketing and servicing the
Old Mutual Invest Tax Free Plan:
Printed marketing support:
• Customer Brochure
• Frequently Asked Questions
These brochures can be ordered from:
The Skynet Warehouse:
Telephone: 011 397 8400
Email: [email protected]
Electronic support:
• Brochures
All printed material is also available electronically on Gateway.
• Information regarding Old Mutual Invest Tax Free Plan will also be available on
www.taxfreesignup.co.za
Service Centre:
Telephone number for advisers:
•
•
•
•
Broker Service Centre (BSC): 0860 00 2200
Preferred Service Centre (PSC PFA): 0860 10 4737
High Value Distribution Service Centre (HVDSC): 0860 121 122
Intermediary Service Centre (Imed): 0860 00 4633
Telephone number for investors: 0860 60 60 60
Fax number: 0860 60 9500
#taxfreesignup
27
OM8762929/IMED
www.taxfreesignup.co.za
Old Mutual is a Licensed Financial Services Provider