OLD MUTUAL WEALTH

PRESERVATION INVESTMENT
OLD MUTUAL WEALTH
PRESERVATION 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 Preservation (Pension) Investment and Old Mutual
Wealth Preservation (Provident) Investment offer you the opportunity to
preserve your pension or provident fund benets for retirement.
When you invest in the Old Mutual Wealth Preservation (Pension)
Investment or the Old Mutual Wealth Preservation (Provident) Investment,
you become a member of the SIS Preservation (Pension) Fund or the
SIS Preservation (Provident) Fund, respectively.
The Old Mutual Wealth Preservation (Pension) Investment accepts
pension fund benets, while provident fund benets are invested in the
Old Mutual Wealth Preservation (Provident) Investment.
INVESTOR PROFILE
The Old Mutual Wealth Preservation Investment is suitable for anyone
leaving an employer as a result of resignation, dismissal or retrenchment
and who wishes to preserve the benets of their pension and/or
provident fund membership with their previous employer until retirement,
by transferring to an approved preservation fund.
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
Please refer to the current platform fund list for more information.
Asset limits
Regulation 28 of the Pension Funds Act limits the assets into which
members of a registered retirement fund may invest.
These limits are:
A maximum of 75% exposure to equity
A maximum of 25% exposure to international investments
A maximum of 25% exposure to property
Investment parameters
You may only invest in the Old Mutual Wealth Preservation Investment
by way of transfer from a pension or provident fund or from another
approved preservation fund.
Additional investments
Additional investments are only allowed under certain conditions, e.g.
late payments from the transferring fund.
Liquidity
You may only retire from the age of 55, although earlier retirement may
be permitted in the event of permanent disability. Before retirement,
one taxable withdrawal is allowed, of which the rst R22 500 (or as
legislation allows) is tax free, subject to any restrictions by the transferring
fund. If a cash withdrawal was taken at the time of the initial transfer
to the preservation fund, no further withdrawal will be allowed.
Retirement
OLD MUTUAL WEALTH PRESERVATION (PENSION) INVESTMENT:
Up to a maximum of one-third of the value of the investment may be
taken in the form of a lump sum, subject to tax. The balance must be
used to buy an approved compulsory annuity.
OLD MUTUAL WEALTH PRESERVATION (PROVIDENT) INVESTMENT:
On retirement, the full value of the investment can be withdrawn in the
form of a lump sum, subject to tax. Alternatively, the benet may be
taken partly as an annuity and partly as a lump sum.
Loans
Not allowed.
Switching exibility
You may switch between underlying investment options within your Old
Mutual Wealth Preservation Investment, subject to any disinvestment
restrictions that may apply to the investment option from which you
want to switch.
Transfers
You may transfer your investment to another approved preservation fund.
Income tax efciency
No tax is payable on transfer from another approved pension or
provident fund into the Old Mutual Wealth Preservation (Pension)
Investment or the Old Mutual Wealth Preservation (Provident) Investment.
Of the lump sum payout at retirement, up to R315 000 may be tax
free within certain limits. The balance will be taxed at between 18%
and 36% (or as legislation allows), subject to limits as determined by
the Income Tax Act.
Currently, a preservation fund is not taxed on interest and capital gains
that remain in the fund.
Outright cessions
Not allowed.
Security cessions
Not allowed.
Estate planning
The investment is not subject to estate duty. You may nominate beneciaries.
However, the trustees of the fund are obliged by law to meet the needs
of your nancial dependants rst before considering your nomination.
OLD MUTUAL WEALTH
PRESERVATION 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
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.
Insolvency protection
In terms of current legislation, your benet is protected in the fund
should you become insolvent.
Ownership
The underlying assets are owned by the relevant SIS Preservation Fund.
Term
The investment is not subject to a minimum contractual term. However,
by law, members may retire from the age of 55 only, although earlier
retirement may be permitted in the event of proven permanent disability.
GOVERNING LEGISLATION
The Old Mutual Wealth Preservation Investment is regulated by the
Rules of the SIS Preservation Pension Fund and the SIS Preservation
Provident Fund which have been registered with the registrar of Pension
Funds and approved by the Commissioner for South African Revenue
Services. The underlying unit trust funds are regulated by the Collective
Investment Schemes Control Act. The investment must, at all times,
comply with the rules of the Fund, the Pension Funds Act, the Income
Tax Act and the Long-term Insurance Act.