Key Features oF investing in an OLD MUTUAL WEALTH

Transcription

Key Features of investing in an
Old Mutual Wealth
Collective Investment Account*
via an Old Mutual International International Portfolio Bond
For UK Customers
*Provided by Old Mutual Wealth Limited
The Financial Conduct Authority is a financial services regulator. It requires us,
Old Mutual International Isle of Man Limited, to give you this important information
to help you decide whether investing in an Old Mutual International - International
Portfolio Bond is right for you. You should read this document carefully so you
understand what you are buying and then keep it safe for future reference.
CONTENTS
AT A GLANCE
about us
4
Old Mutual International
Old Mutual Wealth Limited
Old Mutual plc
How does it work?
4
4
4
4
aims5
The benefits of investing in an Old Mutual Wealth Collective Investment Account
via an Old Mutual International - International Portfolio Bond5
your commitment
6
What you have to do as an investor
6
risks7
Factors that could affect your investment in the Collective Investment Account via
your International Portfolio Bond
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questions and answers8
Q1.Could investing in the Collective Investment Account via an
Old Mutual International - International Portfolio Bond be right for me?
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Q2.How can I pay my premium for the International Portfolio Bond?
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Q3.What assets do I have access to?
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Q4.Where can I get information about my chosen funds?
10
Q5.What are unit trusts and OEICs?
10
Q6.Can I appoint a fund adviser or discretionary asset manager to
manage the assets held within my Collective Investment Account?
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Q7.Can I switch between assets within the Collective Investment Account?
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Q8.
Does Old Mutual Wealth charge for switches between funds held
within the Collective Investment Account?13
Q9.Can income from funds (dividends/rebates) held within the Collective Investment
Account be credited to the International Portfolio Bond’s transaction account?
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Q10.Can I take money out of the International Portfolio Bond?
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Q11.Is my money guaranteed and what might I get back?
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Q12.How do I pay my adviser?
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Q13.Where can I find out about the charges?
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Q14.Can I put my bond into a trust?
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Q15.What happens to my International Portfolio Bond if I die?
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Q16.What about tax?
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Q17.How will you keep me informed about my International Portfolio Bond?
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Q18. Can I change my mind and cancel my Old Mutual International - International
Portfolio Bond?
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other information
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Contact details
About the policy terms
Compensation and investor protection
Complaint procedures
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Key Features of investing in an Old Mutual Wealth Collective Investment Account
via an Old Mutual International - International Portfolio Bond
PLEASE READ THIS
DOCUMENT CAREFULLY
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 an Old Mutual Wealth Collective Investment Account via an Old Mutual International
- International Portfolio Bond.
Reading financial literature can be daunting, so we try to make our brochures and other documents as clear as possible,
with no ‘small print’.
If technical expressions are unavoidable, we also include an explanation in plain English. We test our literature regularly to
make sure that it can be understood by our customers.
Please read this Key Features Document in conjunction with your Key Features Illustration and the client brochure
Unlocking the secrets of intelligent investing. Your financial adviser will be able to provide you with the latest
Old Mutual Wealth Funds List and Key Features of the Collective Investment Account.
Please note: all references to we, us, our and Old Mutual International mean Old Mutual International Isle of Man Limited
and all references to Old Mutual Wealth mean Old Mutual Wealth Limited.
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ABOUT US
The provider of the International Portfolio Bond is Old Mutual International Isle of Man Limited.
Old Mutual International is the international arm of Old Mutual Wealth, a leading retail investment business.
Old Mutual Wealth Limited
The provider of the Collective Investment Account is Old Mutual Wealth Limited, which is owned by Old Mutual plc.
Old Mutual plc
Old Mutual Wealth is part of Old Mutual plc, a FTSE® 100 group that provides life assurance, asset management, banking
and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of
£394.9 billion assets under management.*
*Old Mutual Wealth (as at 31 December 2016).
how does it work?
Once you have successfully applied for your International Portfolio Bond, your appointed adviser will make an application
to Old Mutual Wealth Limited to set up a Collective Investment Account to hold your chosen investments. Old Mutual
International will own the Collective Investment Account to which the value of your bond is linked.
Your financial adviser, your fund adviser or discretionary asset manager, if one has been appointed, can manage the
holdings within your International Portfolio Bond. If you wish to change your investment choice in the future, your financial
adviser, fund adviser or discretionary asset manager, if one has been appointed, can do this online through Old Mutual
Wealth. This avoids the normal International Portfolio Bond dealing charges which would otherwise apply when buying
and selling collective investments directly, i.e. when they are not held on a fund platform.
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AIMS
The benefits of investing in an Old Mutual Wealth Collective Investment
Account via an Old Mutual International - International Portfolio Bond
The International Portfolio Bond aims to provide a flexible method of investing your money with the potential for growth
over a five to ten year or longer period. It is designed to allow capital to grow and to offer you the option to take regular,
tax efficient withdrawals.
Investing in a Collective Investment Account via an International Portfolio Bond allows you the opportunity to access the
SelfSelect or WealthSelect investment fund ranges and the WealthSelect Managed Portfolio Service. Please refer to Question
3 on pages 9 and 10 for further information on the SelfSelect and WealthSelect fund ranges and the WealthSelect
Managed Portfolio Service.
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YOUR COMMITMENT
WHAT YOU HAVE TO DO AS an INVESTOR
You should satisfy yourself that you understand the features and risks of investing in the International Portfolio Bond and
choosing the Collective Investment Account as the underlying investment. You must decide whether it is likely to meet your
needs and expectations in terms of access to your investment, capital growth and tax planning.
You must invest an initial lump sum of at least £25,000 (or currency equivalent) into your Old Mutual International International Portfolio Bond.
To ensure that your International Portfolio Bond and your chosen funds continue to meet your needs, you should monitor
their performance regularly, consider new assets that become available and give your financial adviser, or if appointed,
your fund adviser or discretionary asset manager, instructions to switch the assets online through Old Mutual Wealth.
If you have agreed with your financial adviser to use the WealthSelect Managed Portfolio Service, the choice of funds
held in your account will be made by us, as the Portfolio Manager.
You will also need to keep us informed of any future changes of address or contact details so we can continue to keep
in touch with you. Our contact details are detailed on page 18 of this document.
The International Portfolio Bond is designed to be a medium to long term investment and you should aim to hold it for at
least five to ten years. You can cash it in earlier but you may get back less than you invested.
Meeting the cost of charges and funding regular withdrawals from your
International Portfolio Bond
We will deduct portfolio fund charges from your transaction account, which is set up within the portfolio fund linked to
your policy as soon as it starts. To help you manage the deduction of portfolio fund charges, you must nominate an asset
which we will sell to automatically clear the portfolio fund charges we debit from this account. This is known as the Charge
Deduction Asset and you can change this asset at any time. If you do not nominate a Charge Deduction Asset, you should
keep enough cash – a general guide is approximately 5% of your premium(s) – in your transaction account to cover any
charges. The Collective Investment Account is an asset itself. If you want us to sell from a named asset held within the
Collective Investment Account you should specify this, otherwise cash will be raised by selling proportionately across
all holdings.
When you request regular withdrawals are set up, you must select either the transaction account or an asset(s) to fund the
withdrawals. If there is not sufficient value in the transaction account or in the asset(s) selected for the regular withdrawals
at the time of the payment, the withdrawal payment will not be sent. We will start paying the regular withdrawals again
as soon as the asset(s) selected to fund withdrawals is replenished, replaced or there is sufficient value in the
transaction account.
These options give you control over your policy and ensure that we don’t sell an asset that you want to keep.
Please refer to the Policy Terms for further information on meeting the cost of charges and funding regular withdrawals and
regular withdrawals for ongoing fees. Your financial adviser will be able to provide you with a copy of the Policy Terms.
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RISKS
Factors that could affect your investment in the Collective Investment
Account via your International Portfolio Bond
All types of investment involve some risk. By choosing to invest in a Collective Investment Account via the International
Portfolio Bond you will have access to a wide variety of investment assets. Their value and the value of any income from
them may fall as well as rise. This means that we cannot guarantee the amount you get back when you switch out of this
investment or completely surrender your Collective Investment Account via your International Portfolio Bond. The amount
you get back may be less than forecasted in your personal Key Features Illustration, or less than you invested, for the
following reasons.
Choice of assets
• The assets available for you to invest in all have specific objectives and associated risks. These differ according to the
assets held within them. For example, if you choose ‘emerging market’ funds that are invested in parts of the world with
less well established economies, their value could be subject to considerable price variations – known as ‘volatility’.
Similarly, some funds, such as those investing in property, can be difficult to sell and you might not be able to sell or
switch from such funds when you want
• If you or your fund adviser or discretionary asset manager do not review the choice of assets within your policy regularly
and monitor their performance, they may fail to meet your expectations
• If the assets do not match your attitude to risk (willingness to accept potential losses), they may not perform as
you anticipate
•W
here an asset holds investments in a currency different to the one in which it is based and in which your bond is held,
there may be additional risks because of exchange rate fluctuations.
Charges and Withdrawals
• The effect of charges may be higher than illustrated in your Key Features Illustration. For example, you might decide to
change to assets with higher charges than those shown in your Illustration, or investment management costs may increase
in the future
• If you take greater withdrawals than originally planned, the value of your International Portfolio Bond may be less than
shown in your Illustration.
Tax Changes
• Future tax changes may affect the amount available after taxation.
Cancellation risk
If you decide to cancel your bond within the first 30 days, its value could fall over this time. If so you will get back less than
you invested. If, at your request, we have facilitated the fee for advice given to you by your financial adviser or if appointed,
your fund adviser or discretionary asset manager and you decide to cancel your contract, we cannot reclaim or refund
the fee. The fee agreement is between you and your financial adviser or fund adviser or discretionary asset manager if
appointed, not Old Mutual International, and it is up to you to reclaim the fee from them.
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QUESTIONS
AND ANSWERS
Q1. could investing in the Collective Investment Account via an Old Mutual
International - International Portfolio Bond be right for me?
You need to consider whether the International Portfolio Bond and the investment into the Collective Investment Account meets
your needs.
Old Mutual International - International Portfolio Bond
This could be the right investment for your needs if you are looking for the potential for investment growth and/or the facility
of taking withdrawals, and you can afford to commit a minimum investment of £25,000 (or other currency equivalent) for at
least five to ten years.
Whether you choose the Old Mutual International - International Portfolio Bond – Life or the Old Mutual International International Portfolio Bond – Redemption, it can be set up to continue after your death, possibly to help with inheritance tax
planning.
Investing in the Old Mutual Wealth Collective Investment Account
The Collective Investment Account provides the flexibility of easy switching between funds, without any Old Mutual
International dealing charges or Old Mutual Wealth administration charges. This facility is especially valuable to clients who
plan to actively manage their portfolio and who wish to avoid incurring additional costs for that facility. It involves more risk
than bank or building society savings accounts but the potential for growth is better. The Collective Investment Account offers
you the opportunity to invest in the SelfSelect or WealthSelect investment range. This choice is not available if you invest
directly into the International Portfolio Bond. Please see Question 3 for further information on assets you can invest in through
your Collective Investment Account.
If you have any questions about the suitability of the International Portfolio Bond or the Collective Investment Account,
we recommend that you speak to your financial adviser.
Q2. How can I pay my premium for the International Portfolio Bond?
You can pay your premium by electronic transfer in most major currencies, or by using our asset transfer or share exchange
services. If you wish to make an electronic bank transfer you can find full information on the banking details in the guidance
notes for starting your International Portfolio Bond. Your financial adviser will be able to provide you with a copy of the
guidance notes.
You can make an offer to add an additional lump sum premium to your International Portfolio Bond whenever you like
by making further payments of at least £2,500 (or other currency minimum – ask your financial adviser for details).
Please contact your financial adviser or our Head Office if you wish to add an additional lump sum premium into your
International Portfolio Bond.
Q3. What assets do I have access to?
The Collective Investment Account offers you a choice of two investment ranges, the WealthSelect investment range and the
SelfSelect investment range. Your financial adviser will discuss with you which is most appropriate for your needs. This will
depend on a number of factors, including your financial objectives, the level of investment risk you are comfortable with
and the breadth of fund choice you require. The funds available for you to hold in your Collective Investment Account
cover a wide range of UK and overseas investments, including shares, government stocks, fixed interest securities and
commercial property.
SelfSelect
SelfSelect offers an extensive choice of more than 1,300 funds from over 60 fund management groups, spanning a broad
range of asset classes, sectors and markets.
WealthSelect
WealthSelect offers a choice of more than 45 fully-researched funds from some of the UK’s best-known investment houses,
together with award-winning packaged funds from Old Mutual Global Investors. WealthSelect investors can opt for the
Managed Portfolio Service. The funds in the Managed Portfolios are exclusively from the WealthSelect researched range.
We do not provide advice on selecting investments. Your financial adviser can help you choose the most suitable funds for
your circumstances and needs. You can change your choice of funds as your needs change.
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Managed Portfolio Service
If you and your financial adviser decide to invest using the WealthSelect Managed Portfolio Service, we, as the Portfolio
Manager, take decisions about changing fund holdings in line with the Managed Portfolio investment strategy detailed in the
relevant Managed Portfolio fund factsheet. Your financial adviser will select the Managed Portfolio suitable for you based on
their assessment of your attitude to risk and your investment objectives.
Holding cash
You may also hold cash in your account. Interest will be calculated and applied daily to your cash holding at the rate set by
us on a monthly basis. There are tax implications on interest earned. Please refer to the client brochure ‘A Managed Portfolio
to match your goals’ for more information . Your financial adviser will be able to provide you with a copy.
Phasing and rebalancing
Whichever investment range you choose, you can opt for ‘automatic rebalancing’ to keep the proportions allocated to
individual funds in line with your original choice. Alternatively, by initially investing cash, you can choose to spread the timing
of your investment into your chosen selection of funds. This is known as ‘phased investment’. The phasing and rebalancing
options are not available if you are using the Managed Portfolio Service, since all investment decisions within the Managed
Portfolios are taken by us, as the Portfolio Manager.
Q4. Where can I get information about my chosen funds?
Some funds are complex in nature which is why we refer you to the appropriate Funds List for information on your chosen
funds. These however only provide summary information. A Key Investor Information Document (KIID) issued by the fund
manager will give more comprehensive information about the way each fund works and its investment risks.
Key Investor Information Documents (KIIDs) are produced by fund managers, not Old Mutual Wealth, for certain types of
‘collective’ funds such as OEICs or unit trusts.
KIIDs contain details of those funds and (where available) must be provided to anyone who is thinking of investing into such
funds via an ISA or Collective Investment Account.
When you read a KIID, you will notice that some information is different from that in other Old Mutual Wealth documentation.
This is because the information in the KIID reflects a direct investment in the fund, whereas the Fund Factsheet and Funds List
provided by Old Mutual Wealth reflect the accurate figures for investment through Old Mutual Wealth.
Q5. What are unit trusts and OEICs?
Unit trusts and Open-Ended Investment Companies (OEICs) are pooled investment funds, also called ‘collective
investment funds’. These provide a useful way for savers to invest for long-term growth, without the need for specialist
investment knowledge.
Collective investment fund managers pool investors’ money to buy assets such as UK and international stocks and shares,
commercial property, fixed interest assets or cash deposits. These are known as the fund’s ‘underlying assets’.
Typically a fund manager heads a team of analysts and stock buyers. It is their responsibility to make whatever investment
decisions are necessary to keep the fund’s performance in line with its objectives and to look after all the regulatory
requirements and administration involved.
Different funds have different objectives. For example, some specialise in particular asset types or geographic areas. Some are
managed in such a way as to produce a particular outcome.
When you invest in a unit trust you buy units and when you invest in an OEIC you buy shares. The number of units or shares
you receive depends on the amount you invest and the price of the units/shares at the time of your investment.
The value of your investment will vary according to the total value of the fund, which is determined by the performance of the
underlying investments.
Unit trusts and OEICs are either accumulation or income funds. Accumulation funds retain any income (such as dividends or
interest) received from underlying investments within the fund. The accumulated income will be reflected in the price. Income
funds regularly pay out any income received on underlying investments on specified dates.
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Q6. Can I appoint a fund adviser or discretionary asset manager to manage
the assets held within my Collective Investment Account?
Unless you have chosen to invest in a WealthSelect Managed Portfolio, you can appoint a fund adviser or discretionary
asset manager to provide investment services in respect of the assets held within your Collective Investment Account.
(All investment decisions within WealthSelect Managed Portfolios are made by us as the Portfolio Manager.)
Fund adviser – a fund adviser is an individual or firm that you appoint to manage some or all of the assets in the portfolio
fund linked to your policy. There are two types of fund adviser:
• An advisory fund adviser can guide you through the process of choosing assets and then manage the relevant assets in
the portfolio fund linked to your policy for you. However, all decisions will ultimately be made by you
• You can also go one step further and allow your fund adviser to make decisions on your behalf in line with pre-agreed
boundaries. This role is sometimes known as a ‘discretionary manager’.
If you wish to appoint a fund adviser please complete the ‘Appointing a fund adviser to your Old Mutual International International Portfolio Bond or Old Mutual International Ireland European Portfolio Bond’ form. Terms of business will normally
need to be agreed between you and the fund adviser and any fees for such a service are personal to you and will not be
deemed a portfolio fund charge. If you request that we facilitate payment of a fee to your fund adviser, this will be a part
surrender or regular withdrawal for ongoing fees and will form part of your 5% UK tax deferred allowance. Please refer to
the Policy Terms for further information on appointing a fund adviser to provide investment services in respect of the assets.
Your financial adviser will be able to provide you with a copy of the Policy Terms.
Discretionary asset manager – a discretionary asset manager is an individual or firm that is appointed by Old Mutual
International to manage some or all of the assets in the portfolio fund linked to your policy. A discretionary asset manager
can be appointed on a discretionary or an advisory basis. The difference between the activities performed by a
discretionary asset manager on a discretionary and advisory basis are explained below:
• Discretionary basis means the adviser holds regulatory authority to carry out discretionary investment management activities
based on an agreed investment mandate and does not need to agree with you any changes to the assets before they
submit the asset dealing instructions
• Advisory basis means the adviser holds the regulatory authority to advise on investments and can only submit asset dealing
instructions following discussions with you.
Where the discretionary asset manager is to act on an advisory basis, then we will appoint you to make investment
decisions in respect of the assets which are linked to the relevant portfolio fund for your policy. Your investment decisions will
be based on investment advice given to you directly by the discretionary asset manager as a requirement of the discretionary
asset manager’s appointment. You will need to complete the form mentioned below if you wish to appoint a discretionary
asset manager to act on an advisory basis. The appointment form and your Policy Terms confirm the restrictions placed on
the assets linked to the portfolio fund for your policy. The discretionary asset manager must have your written approval of any
investment recommendations before they submit asset dealing instructions.
If you wish to request that we use a discretionary asset manager either on a discretionary or advisory basis in respect
of your policy, please complete the ‘Old Mutual International Isle of Man Limited/Old Mutual International Ireland dac
appointing a discretionary asset manager‘ form. Once we are satisfied that the discretionary asset manager is regulated
by an appropriate regulatory authority and has qualifications required by law or regulation to carry out discretionary fund
management services, we will confirm their appointment to you through the Online Service Account, if you have one, or by
post. Please note that the discretionary asset manager fee does not form part of your 5% UK tax deferred allowance. Please
refer to the Policy Terms for further information on appointing a discretionary asset manager to provide investment services in
respect of the assets. Your financial adviser will be able to provide you with a copy of the Policy Terms.
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Q7. Can I switch between assets within the Collective Investment Account?
You can switch between funds at any time within the same range investment range (ie within the WealthSelect or the
SelfSelect investment range) but you cannot hold funds from both investment ranges in your account at the same time.
If you wish to switch to a fund that is not available in your current investment range, you will need to swap all your
holdings to funds in the other investment range.
If you have agreed with your financial adviser to invest in the WealthSelect Managed Portfolio Service, please bear in mind
that all fund switches within the Managed Portfolios are made by us, as the Portfolio Manager. If you or your financial
adviser want to move to the SelfSelect investment range, or switch funds within your Managed Portfolio to other WealthSelect
funds, you can do so but it will automatically mean that the Managed Portfolio Service will stop and any future changes to
your fund choice will be your responsibility. You should therefore discuss any proposed switch with your financial adviser.
If you wish to switch from one Managed Portfolio to another, your financial adviser can do so on your behalf.
How do I switch funds?
You can submit switch instructions directly to us using our secure client extranet, provided you have registered to use this
service. Your financial adviser will also be able to switch online for you unless you cancel this authority by writing to us.
If a switch instruction is placed prior to the cut-off time for your fund, then it will be actioned at the next dealing point for
that fund. Information on funds can be found in the Funds List.
If you are using the Managed Portfolio Service and wish to switch to a new Managed Portfolio, your financial adviser
will have to arrange the switch. They will need to assess that the new Managed Portfolio is suitable for your needs before
requesting the switch.
You can send your switch instructions to us by post. Instructions received by post will usually be processed on the day of
receipt, and actioned at the cut-off point no later than the following dealing day.
If you instruct us to switch a specific amount of money from one fund into another fund, then the sale and purchase of units/
shares will normally take place on the same day. For all other switch instructions, the purchase will usually be made at the
next dealing point after all of the sales in your instruction have taken place and the fund manager(s) have confirmed the sale
proceeds. For some funds, buying or selling units/shares can take up to two working days.
This means that if you are switching from one fund to another, the whole process will typically take no more than five working
days from receipt of your instruction.
You, or your adviser, can also redirect future direct debit payments into a new fund choice by using the Old Mutual Wealth
client and adviser extranet services. Alternatively, you can complete a switch/redirection instruction form, which is available
from your financial adviser. If you want both your existing and future investments to be moved into new funds, you must
request both a switch and a redirection.
Before you switch or redirect future contributions into new funds your financial adviser must provide you with a Key Investor
Information Document for each of these funds, where appropriate.
You (by post) or your financial adviser (using the adviser extranet services) can also request to swap the investment range
for your account. You will need to complete the switch/redirection instruction form, which is available from your
financial adviser.
Old Mutual Wealth reserve the right to reject or defer an instruction, or apply an appropriate charge on a fund or individual
transaction if, under Financial Conduct Authority guidelines and best market practice, we reasonably consider any activity
to constitute ‘Market Timing’. Market Timing is the practice of speculative investment with the aim of gaining short-term
advantage. It typically involves a high volume of fund transactions and short holding periods. Such activities are to the
detriment of the long-term investors for whom our products are designed.
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Q8. Does Old Mutual Wealth charge for switches between funds held within
the Collective Investment Account?
Old Mutual Wealth does not currently make an administrative charge for fund switches or for swapping investment ranges.
We reserve the right to introduce a charge in the future, if administration costs make this necessary. If we have to do this
we will let you know. You may incur charges made by the managers of the funds you are switching.
If you have agreed to pay your financial adviser a fee for switching funds you can ask us to pay them that fee on your
behalf from your account.
If you have agreed with your financial adviser to invest in a WealthSelect Managed Portfolio, Old Mutual Wealth will charge
you for moving your investment to a Managed Portfolio as part of the active management of the portfolio. Please refer to
Question 13 for further details on the charge for the WealthSelect Managed Portfolio Service. If you have agreed an adviser’s
fund switch fee, this fee can only be paid to your adviser if you change from one Managed Portfolio to another but not for
switches instigated by us, as the Portfolio Manager as part of the Managed Portfolio Service.
Q9. Can income from funds (dividends/rebates) held within the Collective
Investment Account be credited to the International Portfolio Bond’s
transaction account?
No. As we do not reflect the underlying funds held within the Collective Investment Account, we are unable to allocate any
dividend payments. Instead, any dividend will be reinvested within the Collective Investment Account.
Q10. Can I take money out of the International Portfolio Bond?
The International Portfolio Bond gives you the flexibility to access your capital subject to a minimum regular withdrawal
amount of £400 and provided that the amount in your bond can sustain both the withdrawals and the charges involved.
Any withdrawals made to pay for advice fees are exempt from this monetary limit. Please see Question 12 for further
information on fees.
You can withdraw up to 5% of your total investment each year without any immediate UK tax liability. This allowance will
be reduced by the amount of any partial withdrawals made to pay fees to your financial adviser or fund adviser. If you
don’t use this allowance in a specific policy year, it can be carried over to the next year, so you could withdraw 10% tax
deferred, and so on.
All withdrawals will be free of policy encashment charges. If the value of your bond falls below the minimum value for
maintaining a policy (currently £10,000 or currency equivalent), we can decide to surrender it unless you agree to add
a further premium to top up your investment.
REGULAR WITHDRAWALS
You can use your bond to create a regular income stream; either yearly, half-yearly, termly (every 4 months) quarterly,
bi-monthly or monthly. These will be deducted from the transaction account for your bond.
To help you manage these deductions, you can nominate one or more assets which we will sell to automatically clear
the sums we debit from this account. This is known as the Nominated Asset. You need to nominate this asset when you
set up your regular withdrawals, but you can change it at any time. This gives you control over how we fund your
regular withdrawals.
If you have agreed with your financial adviser to use the WealthSelect Managed Portfolio Service, payment will be taken
proportionally across all funds.
ONE-OFF WITHDRAWALS (PART SURRENDERS)
As long as you leave the minimum amount in your bond you can, subject to a minimum of £1,000, normally withdraw any
amount you want at any stage by making a request to us and providing a withdrawal instruction.
However, please remember that the International Portfolio Bond is designed for medium to long-term investment, so taking
money out of your bond in the early years can dramatically reduce its potential.
You should ask your financial adviser about the tax and financial planning implications before you commit to withdrawals.
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Q11. Is my money guaranteed and what might I get back?
No, the value of your International Portfolio Bond can go down as well as up and you may not get back the original amount
invested. Your Key Features Illustration gives examples of what you might get back and the projections shown are based on
a range of assumptions about future growth rates, none of which are guaranteed.
The amount you get back will depend on:
• how much you have invested
• how long your premiums have been invested
• the investment performance of your chosen fund(s) or Managed Portfolio
• how much you have previously withdrawn
• the charges that we have taken
• any tax due when you cash it in
• h ow much you have asked us to withdraw to facilitate payment of fees to your financial adviser,
fund adviser or discretionary asset manager.
Q12. How do I pay my adviser?
PAYING FOR YOUR FINANCIAL ADVICE
From 31 December 2012, new UK regulatory rules – known as the Retail Distribution Review (RDR) – mean that any fee
your adviser charges for advice must be agreed with you in advance, to make sure you know exactly what you’re going to
pay and are happy that it’s fair and reasonable based on the service and advice provided. Old Mutual International has no
involvement in setting this fee - it is agreed between you and your adviser.
ADVICE FEES
You can pay your adviser’s fee in a number of ways. You can pay it directly to your adviser, for example by cheque,
keeping it completely separate from your policy. Alternatively, you can ask Old Mutual International to pay a withdrawal
from the policy that’s equivalent to the fee, which will then be paid to your adviser. We will also confirm to you any fees for
which you ask us to arrange payment to either your financial adviser or fund adviser. Please note your adviser cannot ask
Old Mutual Wealth to make these payments.
If you decide on this route, there are a number of options which can be used on their own or in combination with each other:
FINANCIAL ADVISER ADVICE FEES
Initial fee from your payment before it is invested as a premium in the policy (not available for cash or asset transfers): you
can ask Old Mutual International to pay a fixed monetary amount or a percentage of the initial investment we receive from
you to pay to your financial adviser.
Initial fee taken as a withdrawal from your policy once we have accepted your application for the policy: you can ask
Old Mutual International to make a one-off withdrawal from your policy equal to a fixed monetary amount or percentage
of the premium invested in the policy.
These initial fees can also apply to advice for additional premium payments (top ups) where the fee can be paid either
before or after the top up is accepted by us. If you ask us to pay a fee after the policy or top up is accepted, we will treat
this as a withdrawal.
Ongoing service fee: you can also ask Old Mutual International to make a regular withdrawal for ongoing fees of either a
fixed monetary amount or an annual percentage of the value of the portfolio fund linked to your policy. This will be paid to
your financial adviser for any ongoing advice you have arranged with them. This is payable quarterly in arrears.
Ad hoc fee: you can also ask Old Mutual International to pay a one-off withdrawal to your financial adviser to pay an
ad hoc fee. This must be a monetary amount.
14
FUND ADVISER FEES
If you appoint a fund adviser (which could be your financial adviser or a third party), there are a number of fee payment
options which can be used on their own or in combination with each other:
1. F und adviser fee: you can ask Old Mutual International to make a regular withdrawal for ongoing fees of a fixed
monetary amount or an annual percentage of the assets held in the portfolio fund linked to your policy. This will enable
a regular fee to be paid to the fund adviser you have appointed to manage those assets. You can request to pay a
fund adviser fee for each fund adviser you have appointed in respect of the assets they manage for you. This is payable
quarterly in arrears.
2. Ad hoc fee: you can ask Old Mutual International to pay a one-off withdrawal to your fund adviser to pay an ad hoc fee.
This must be a monetary amount.
3. Dealing advice fee (only available where some or all of your assets are held with Old Mutual International’s default
custodian): you can ask Old Mutual International to pay a dealing advice fee of a fixed percentage of the value of the
assets held with our default custodian on the purchase date of the transaction. These are payable quarterly in arrears to
your fund adviser for their ongoing investment services.
DISCRETIONARY ASSET MANAGER FEES
If Old Mutual International appoint a discretionary asset manager, you can choose to pay their fees as either an annual
percentage of the value of the portfolio fund to be taken quarterly or a monetary amount to be paid quarterly. Please refer
to your Policy Terms for further information on discretionary asset manager fees.
Q13. Where can I find out about the charges?
Investing in the Collective Investment Account through your International Portfolio Bond means that you pay charges on both
contracts. Your financial adviser will give you a personalised Key Features Illustration for both your International Portfolio Bond
and your Collective Investment Account that will illustrate the effect that both sets of charges could have on your investment.
PORTFOLIO FUND CHARGES
There are a number of charges that we may deduct from your policy, for example, to cover administration and management
of your policy and any asset dealing charges. Any assets that you invest in will also charge an annual management charge.
The cost of this varies from asset to asset. Full details of the charges for the International Portfolio Bond and the Collective
Investment Account, can be found in their respective Policy Terms. Details of asset charges can be found in the Old Mutual
Wealth fund list, which is available from your financial adviser.
PAYING FOR THIRD PARTY AND OTHER CHARGES
You may incur some additional charges due to the nature of this investment, such as bank charges, and telegraphic transfer
charges. Your financial adviser will provide details and explanations of all the charges. Old Mutual International’s Portfolio
Fund charges will be listed for you in a charges schedule and your Key Features illustration.
WealthSelect Managed Portfolio Service
There is an extra charge for using the WealthSelect Managed Portfolio Service. The charge will cover the administrative
costs of running the WealthSelect Managed Portfolio Service and is equivalent to 20% of the Collective Investment Account
charge. Your financial adviser will give you a personalised Key Features Illustration that will display the charges for the
Collective Investment Account and WealthSelect Managed Portfolio Service. Please note the charge for the WealthSelect
Managed Portfolio Service is presented as VAT in the Illustration but it is in fact a charge for the WealthSelect Managed
Portfolio Service. There is no VAT payable for the WealthSelect Managed Portfolio Service because you have invested in
a Collective Investment Account via an offshore Portfolio Bond. Please contact your financial adviser if you require further
information regarding VAT and your WealthSelect Managed Portfolio Service.
15
Q14. Can I put my bond into a trust?
Yes, it is possible to place your International Portfolio Bond into a trust. If you put your bond in a trust, the trust conditions will
need to be followed when making changes to the bond. Old Mutual International do offer a number of trusts which may be
suitable for your needs. Details of how these trusts work can be found in the relevant trust literature and in the trust documents.
It is important for trustees to ensure that any changes they make to the bond do not breach the trust conditions.
We strongly recommend that you speak to your financial adviser before making any decisions regarding trusts.
Q15. What happens to my International Portfolio Bond if I die?
If you choose the Old Mutual International - International Portfolio Bond – Life, you can set up the life assurance on your own
life (‘single-life’ basis), yourself and one other person (‘joint-life’ basis), or yourself and others (‘multiple-life’ basis). You can
also set it up to cover a life other than yourself (‘life of another’).
When the last person whose life is assured dies, we will pay out 101% of the surrender value of your bond. (So, if the
encashment value of your bond at death is £200,000, for example, the total amount paid out will be £202,000.)
If you have put your bond under trust, we will pay the benefit to the trustees to distribute.
If you choose the Old Mutual International - International Portfolio Bond – Redemption then your bond will continue until its
maturity date, unless it is fully cashed in by you before your death, or by your executors following your death, or by the
trustees if it is held under trust. If you have agreed with your financial adviser to use the WealthSelect Managed Portfolio
Service, this service will stop once we receive written notification of your death, or that of the last surviving account holder if
the account was held jointly.
Q16. What about tax?
The following information is based on our understanding of the current UK tax legislation, although tax treatment will depend
on your country of residence when you cash in your bond. The tax position of your bond may change in the future. You may
be subject to additional taxes or costs which are not accounted for within the contract. Please contact your financial adviser
for advice about tax liabilities and also any potential tax liabilities if the bond is placed under trust.
Personal Tax
The following applies if you are a UK taxpayer.
• You may withdraw up to 5% of your original investment (plus any additional investments) each year for at least 20 years
without any immediate liability to income tax
• If you withdraw more than 5%, or withdraw over the years more than you invested, you may be liable to income tax
• If you request that we facilitate payment of a fee to your fund adviser, this fee will form part of your 5% tax
deferred allowance
• If you request that we facilitate a payment of a fee to your discretionary asset manager, the fee will not form part of your
5% tax deferred allowance
•W
hen you finally cash in your bond, you may have to pay income tax on any gain you have made. This could also affect
your right to age related personal reliefs and any entitlement to children’s tax credit
• If you have chosen the Old Mutual International - International Portfolio Bond – Life, your bond is treated for tax purposes
as though you had fully cashed it in just before the death of the relevant life assured
• You will not normally have to pay capital gains tax in connection with your bond
• If you are not a UK taxpayer then you should seek advice from a tax adviser who may also be your financial adviser.
Taxation of the assets invested through the Collective Investment Account
Through the Collective Investment Account, you can access UK domiciled and some non UK domiciled assets to help meet
your investment objectives. However, please note that Old Mutual International cannot reclaim any tax paid on income
from the assets held with Old Mutual Wealth that are UK domiciled. In such circumstances the returns could be less if you
hold the assets on the platform instead of investing in external assets directly through the International Portfolio Bond. Assets
held directly through the International Portfolio Bond are not currently liable to taxes in the Isle of Man, where Old Mutual
International is based and would grow virtually tax free.
You are unable to benefit from gross returns or reclaim any tax paid at source on any assets held through the Collective
Investment Account. You need to consider the benefits of choosing the Collective Investment Account as the underlying
investment for your International Portfolio Bond against the reduced income returns.
16
Q17. How will you keep me informed about my International Portfolio Bond?
When you become a policyholder you will be able to register for an Old Mutual International Online Service Account,
via the client extranet on Wealth Interactive. Wealth Interactive gives you a straightforward, clear and transparent way to
access information about your investment. You can sign in to your own secure online service account and review your policy,
including your portfolio of assets, whenever you have access to the internet. You can check the latest available figures and
facts about your investments and keep up to date with changes made by your financial adviser.
Q18. C
an I change my mind and cancel my Old Mutual International International Portfolio Bond?
Yes. When we notify you that your application for the Old Mutual International - International Portfolio Bond – Life or
Old Mutual International - International Portfolio Bond – Redemption has been accepted and send you the appropriate
documentation, we will remind you that you have 30 days to change your mind and cancel your application. You can do
this by writing to the customer service centre at the address shown in contact details on page 18 or online via your Online
Service Account.
If you decide to cancel, we will give you your money back. However, if the value of your investment has fallen in the
meantime, you may not get back the full amount you paid in. You should be aware that this reduction could be substantial
if your chosen funds have a medium or high level of volatility or risk, or non-refundable charges. The description of the
funds and/or assets you have chosen will give details if this applies. In cases where the investment you have selected is not
redeemable for a period, we may not be able to return that part of your payment until the end of that period. Please note
that some funds are priced on a weekly or less frequent basis, and certain funds also have cut off times for dealing purposes,
so you may not be able to disinvest as quickly as you would like during periods of market volatility. This therefore could
potentially cause delays in you receiving your money back. Please discuss this with your financial adviser if this is an area
of concern for you.
Any Old Mutual International charges will be refunded in full. If, at your request, we have facilitated any fees for advice
given to you by your financial adviser, or if appointed your fund adviser or discretionary asset manager and you decide to
cancel your contract, we cannot reclaim or refund the fees. The fee agreement is between you and your financial adviser,
fund adviser or discretionary asset manager not Old Mutual International and it is up to you to reclaim the fee from them.
17
OTHER INFORMATION
CONTACT DETAILS
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 in the following ways:
Phone: +44 (0) 01624 655010
Fax: +44 (0) 01624 611715
By writing to: Old Mutual International Isle of Man Limited
King Edward Bay House
King Edward Road
Onchan
Isle of Man
IM99 1NU
British Isles
about the policy terms
This Key Features Document gives a summary of investing in an Old Mutual Wealth Collective Investment Account via an
Old Mutual International - International Portfolio Bond. It does not include all the definitions, exclusions, or Policy Terms.
For a copy of the relevant Policy Terms and our customer brochure Unlocking the secrets of intelligent investing,
or for more information about the fund range, please ask your financial adviser or contact us directly.
We reserve the right to amend certain contractual terms, some without prior notice, as explained in the Policy Terms.
If we do so we will let you know in writing and you may, if you wish, cash in your policy.
The contract you are applying for is subject to Isle of Man Law. If your application is accepted, we will send you the Policy
Terms confirming the law applying to the contract. You can also obtain a copy of the Policy Terms from your financial adviser.
All our literature and future communications to you will be in English.
We provide all disclosure documents in accordance with the pre-contract disclosure requirements applying in the United Kingdom.
Compensation and investor protection
Policyholder protection schemes are regarded as offering protection for policyholders of financial services providers and
allow policyholders to claim for compensation in the unlikely event the financial services provider 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.
On the Isle of Man there is a statutory protection scheme which covers Old Mutual International policyholders. The 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 after 1 February 1991.
• Eligible investors in policies issued by the Isle of Man authorised life assurance companies are protected no matter where
they reside
• In the unlikely event that a life assurance 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 benefit. For the purposes of the scheme this is calculated
as the policy value less any contractual charges associated with the policy. No monetary limit applies to the calculation of the
policy benefit.
Please note that this protection only applies if Old Mutual International is unable to meet its liabilities.
18
OTHER INFORMATION
(CONTINUED)
Old Mutual International only writes unit linked business and therefore there is always a close link between the value of the
company’s assets and the liabilities to its policyholders. Assets linked to Old Mutual International policies are segregated from
Old Mutual International’s business assets in order to comply with the Isle of Man Insurance Act 2008. Please either speak to
your financial adviser or alternatively contact us if you have have questions regarding the above.
Full details are available from Old Mutual International on request.
Investment risk associated with the underlying investment (Collective Investment Account)
The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 are in place to compensate eligible
policyholders of an insolvent life assurance company, not to compensate for risks associated with investing in the underlying
assets of the policy. The outcome is the same where the policyholder is holding a collective investment, OEIC or unit trust with
a management group and the fund management group goes into liquidation.
Old Mutual International as the owner of the underlying asset (Old Mutual Wealth
Collective Investment Account)
Old Mutual International is the legal owner of the Old Mutual Wealth Collective Investment Account. If Old Mutual Wealth
Limited, the provider of the Old Mutual Wealth Collective Investment Account cannot meet its liabilities, the Financial Services
Compensation Scheme (FSCS) may provide compensation. However you should be aware that the compensation arrangements
provided by the FSCS relate only to Old Mutual International’s aggregate holdings across all affected Collective Investment
Account’s rather than to individual investors and as a result you may not benefit from the scheme.
Further information about compensation arrangements is available from the Financial Services Compensation Scheme website
www.fscs.org.uk.
Wealth Select Managed Portfolio Service
Please note that if you are using the WealthSelect Managed Portfolio Service for your Collective Investment Account, the
contractual relationship for this service is between you and your financial adviser and the regulatory responsibility for the service
rests with them.
If this is a concern, please discuss this with your financial adviser so you are aware of the possible risks.
Complaint procedures
Customer satisfaction is very important to us at Old Mutual International, but if you do have cause to complain about the service
you receive, we have procedures to make sure your complaint is dealt with fairly.
How can you complain?
It’s simple to make a complaint to us in writing, by email, or over the phone. If you write to us, please mark it clearly as a
complaint and provide as much detail as possible, including what you want us to do to put things right.
Including as much detail as you can about what happened will enable us to understand your complaint and investigate it
thoroughly. If you are happy for us to call you, please also provide a contact telephone number and we will acknowledge
receipt of your complaint and endeavour to contact you within five working days of receiving the complaint.
What happens if you complain?
Our administration team and manager will be responsible initially for resolving your complaint. If they are unable to do so,
it can be escalated to the complaints team who will carry out a review and if they are unable to resolve your complaint, they
will send you a final response.
continued
19
Complaints Team Contact Details
You can write to the complaints team using the below address:
King Edward Bay House
King Edward Road
Onchan
Isle of Man
IM99 1NU
British Isles
Email: [email protected]
Fax: + 44 (0) 1624 611715
Telephone: + 44 (0) 1624 655555.
What if you are not satisfied with the outcome?
We will do everything we can to resolve your complaint but if you are not satisfied by our response, you can refer it to the Isle
of Man Financial Services Ombudsman Scheme (FSOS).
The FSOS is an independent body that will consider your complaint impartially to reach a conclusion. There is more information
about this service on their website: http://www.gov.im/oft/ombudsman/.
You can write to the Ombudsman at the following address:
The Financial Services Ombudsman Scheme for the Isle of Man
Thie Slieau Whallian
Foxdale Road
St John’s
Isle of Man
IM4 3AS
British Isles
This document was last reviewed in February 2017.
Please confirm with your financial adviser that this is the
most up-to-date document for your product or servicing needs.
www.oldmutualwealth.co.uk
www.oldmutualinternational.com
Calls may be monitored and recorded for training purposes and to avoid misunderstandings.
Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account (ISA) and Collective Investment Account (CIA) and
Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account (CRA) and Collective Investment Bond (CIB).
Old Mutual Wealth Life Assurance Limited, Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England & Wales under numbers 1363932,
1680071 and 4163431 respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom.
Old Mutual Wealth Life Assurance Limited and Old Mutual Wealth Life & Pensions Limited are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority. Their Financial Services register numbers are 110462 and 207977 respectively.
Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority with register number 165359.
VAT number for all above companies is 386 1301 59.
Old Mutual International Isle of Man Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: King Edward Bay House,
King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555. Fax: +44 (0)1624 611 715.
Licensed by the Isle of Man Financial Services Authority.
All promotional material is approved by Old Mutual Wealth Limited. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority.
Financial Services register number 165359.
The rules made under the Financial Services and Markets Act 2000 (as amended) for the protection of retail clients in the UK do not apply.
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.
PDF5118/INT17-0012/April 2017

Key Features oF investing in an OLD MUTUAL WEALTH

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