OLD MUTUAL WEALTH

LIFE WRAPPED INVESTMENT

OLD MUTUAL WEALTH
LIFE WRAPPED INVESTMENT
Old Mutual Wealth is an elite service offering brought to you by Old Mutual Investment Services (Pty) Ltd
and Old Mutual Life Assurance Company (South Africa) Ltd, Licensed Financial Services Providers
OVERVIEW
The Old Mutual Wealth Life Wrapped Investment is a potentially tax-
efcient investment vehicle to grow your after-tax investment capital
and manage your estate planning.
INVESTOR PROFILE
This investment vehicle is suited to anyone who wants the benets of
a life wrapper, while building capital with after-tax money over the
long term.
The Old Mutual Wealth Life Wrapped Investment does not cater for
investors wanting ad hoc liquidity at any time.
FEATURES AND BENEFITS
A choice of underlying investment options
The underlying investment options represent a carefully selected range
which provides wide coverage across the investment spectrum.
This includes:
Specially designed investment strategies
The core propositions from leading South African asset managers
Single and multi-managed approaches
Specialist and multi-asset class options
Smoothed and guaranteed solutions
The underlying investment options can be life or unit trust funds.
Please refer to the current platform fund list for more information.
Investment parameters
You may invest in the Old Mutual Wealth Life Wrapped Investment at
any stage during your lifetime.
Additional investments
In line with legislation, you may add money during each contract year
to a maximum of 120% of the highest total investments made in each
of the previous two contract years. Recurring investments via debit
order are allowed.
Liquidity
Two withdrawals (one zero interest loan and one disinvestment) are
allowed during the rst ve years. The total withdrawal amount(s),
whether by loan or disinvestment, during the rst ve years, may not
exceed your investments made plus 5% p.a. compounded (and less
any prior disinvestment/loan).
After the rst ve years, you may access your investment via ad hoc
disinvestments or regular withdrawals. The money may only be paid
into your bank account and not into a third partys bank account.
Cool-offs
You may cool off or cancel your investment contract within 30 days
of receiving conrmation that your investment was implemented. A
cool-off will only take place after your written instruction was received.
A cool-off is not possible if, during the rst 30 days after receiving your
investment conrmation:
you switched between investment options; or
a benet was paid or claimed.
Switching exibility
You may switch between underlying investment options within the
Old Mutual Wealth Life Wrapped Investment, subject to any disinvestment
restrictions that may apply to the investment option from which you
want to switch.
Tax efciency
You will only be allowed to use post-tax money to invest into this
investment vehicle. All income and capital gains earned in the investment
vehicle are taxed in the hands of the insurer, Old Mutual Life Assurance
Company (SA) Limited (commonly referred to as four-funds taxation).
You do not have to declare your investment returns (both income and
capital gains) from the investment vehicle in your personal tax returns.
Proceeds are paid after-tax to the investor. For unit trust funds, capital
gains tax (CGT) is deducted before units are sold. Second-hand policies
may be liable for additional CGT over and above that deducted in
terms of the four-fund approach.
Outright cessions
You may transfer ownership of the investment to another legal entity
after providing us with all the necessary documentation.
Security cessions
The investment may be ceded as security after providing us with all the
required documentation.
Estate planning
In terms of current legislation, you may nominate beneciaries for
ownership of the investment, which facilitates the estate planning process
and can result in signicant savings. Beneciaries may then restructure
the investment according to their own needs.
Savings on executors fees of up to 3.99% (incl. VAT)
Savings on new investment fees for the nominated beneciary
Ownership
You become a policyholder and Old Mutual Life Assurance Company
(South Africa) Ltd owns the underlying unit trust or other funds for your
benet.
Term
The investment term is open-ended. However, during the rst ve years
(the restriction period) you may request one zero interest loan and one
disinvestment only.
After the rst ve years, you may access your investment via ad hoc
disinvestments or regular withdrawals. The restriction period does
not have an impact on your ability to switch within the Life Wrapped
Investment, should you wish to do so.
Governing legislation
The Old Mutual Wealth Life Wrapped Investment is regulated by various
laws, including the Long-term Insurance Act, Financial Advisory and
Intermediary Services Act and the Income Tax Act.The underlying unit
trust funds are regulated by the Collective Investment Schemes Control
Act. The rules above may change subject to changes in these regulations.
Disclaimers:
This guide has been compiled as an information document and is based on information available. Old Mutual Wealth (Pty) Limited, Old Mutual Investment Services (OMIS) (Pty) Ltd and/or Old Mutual Life Assurance Company
(South Africa) Limited do not accept liability for any loss, damage or expense that may be incurred as a direct or an indirect consequence of reliance placed upon this guide.
For unit trust funds only:
Unit trusts are generally medium- to long-term investments. The value of the units may go down as well as up and past performance is not necessarily a guide to the future. Unit trusts are traded at ruling prices. A schedule of fees
and charges is available on request from the management company. Forward pricing is used. In the case of Money Market Funds, a constant unit price will be maintained.
Other funds:
These are generally medium- to long-term investments. The value of the units may go down as well as up and past performance is not necessarily a guide to future performance.
Old Mutual Investment Services (OMIS) (Pty) Ltd is a member of the Old Mutual Group and is a licensed Administrative Financial Services Provider.
Mutualpark, Jan Smuts Drive, Pinelands 7405. PO Box 207, Cape Town 8000. Tel 0860 999 199, Fax 0860 999 197.