OLD MUTUAL WEALTH

RETIREMENT ANNUITY INVESTMENT

OLD MUTUAL WEALTH
RETIREMENT ANNUITY 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 Retirement Annuity Investment is an investment
vehicle to which you can contribute on a exible basis to accumulate
tax-free growth up to your retirement.
When you invest in the Old Mutual Wealth Retirement Annuity Investment,
you become a member of the SIS Retirement Annuity Fund, which is
governed by a Board of Trustees and administered by Old Mutual
Investment Services (Pty) Limited.
Your annual contributions are deductible, within limits, from your taxable
income for that tax year.
INVESTOR PROFILE
This vehicle is suited to investors wanting to save for retirement. This
includes anyone who recognises the need for retirement savings, or
members of pension or provident funds who wish to supplement their
retirement income through an additional savings vehicle.
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 top 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. Capital
depreciation risk may be reduced during volatile market conditions by
switching into a money market fund.
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 invest in the Old Mutual Wealth Retirement Annuity Investment
at any stage. However, transfers from provident funds to retirement
annuities may have adverse tax consequences on tax and liquidity.
Additional investments
You may add to your investment at any time on an ad hoc basis.
Recurring investments via debit order are allowed.
Liquidity
You can retire at any time from the age of 55, although earlier retirement
may be permitted at the discretion of the Trustees in the event of proven
permanent disability. You can also access your annuity before retirement
if you emigrate.
On retirement, you may take up to a maximum of one-third of the value
of the investment in the form of a cash lump sum. The balance must be
used to purchase an approved compulsory annuity.
Loans
These are not allowed, as determined by legislation.
Switching exibility
You may switch between underlying investment options within the
Old Mutual Wealth Retirement Annuity Investment, subject to any
disinvestment restrictions that may apply to the investment option from
which you want to switch.
Transfers
You may transfer your Old Mutual Wealth Retirement Annuity Investment
to another retirement annuity fund.
Income tax efciency
Your annual contributions are deductible from your taxable income
for that tax year, subject to limitations set by the Income Tax Act, to a
maximum of the greatest of:
15% of non-retirement funding taxable income;
R3 500 less allowable pension fund contributions; or
R1 750;
or as legislation allows.
Any contributions that exceed these allowances can be rolled over into
the following tax year. To the extent that they have not been utilised,
they may be used to enlarge the tax-free portion of the lump sum payout
at retirement. Of the lump sum payout at retirement and death, up to
R315 000 (or as legislation allows) may be tax free within certain limits.
The balance will be taxed at between 18% and 36%, subject to limits
as determined by the Income Tax Act. Currently, retirement annuities are
income tax and capital gains tax exempt. No tax is payable on transfer
from another approved pension, provident or retirement annuity fund
into the Old Mutual Wealth Retirement Annuity Investment.
Outright cessions
These are not allowed, as determined by legislation.
OLD MUTUAL WEALTH
RETIREMENT ANNUITY 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 999 197.
Security cessions
These are not allowed, as determined by legislation.
Estate planning
The investment is not subject to estate duty on your death. 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.
Insolvency protection
In terms of current legislation, your benet is protected in the fund
should you become insolvent.
Ownership
The SIS Retirement Annuity Fund owns the underlying assets.
Term
The investment is not subject to a minimum contractual term. However,
by law a member of a retirement annuity fund may only retire from the
age of 55, although earlier retirement may be permitted (in the sole
discretion of the Trustees) in the event of proven permanent disability.
Governing legislation
The Old Mutual Wealth Retirement Annuity Investment is regulated by
various laws, including the Long-term Insurance Act, Financial Advisory
and Intermediary Services Act, Income Tax Act and Pension Funds Act.
The underlying unit trust funds are regulated by the Collective Investment
Schemes Control Act.