OLD MUTUAL UNIT TRUSTS LIVING ANNUITY

Transcription

1 OLD MUTUAL UNIT TRUSTS LIVING ANNUITY IMPORTANT INFORMATION 1. Please complete all the relevant sections and sign section 14. Investors in Shari ah-compliant unit trusts must sign section 7 as well. 2. The completed form and a certified copy of your identity document/passport can be scanned and ed to uttransactions@oldmutual.com, faxed to +27 (0) Illegible and incomplete forms may lead to delays. Contact our service centre at if you have any queries. The Effective Annual Cost (EAC) is a standard industry measure for your information and to facilitate comparing the cost of an investment over specific periods. (Visit for more information and to access the EAC illustrator.) The EAC of your investment will be confirmed in writing once your investment has been processed. 3. Please note an Old Mutual Quote or a signed Living Annuity Illustrator must be submitted with this completed form for new business only. You can obtain the Unit Trusts Living Annuity Illustrator under Adviser tools on our website at or from our service centre Your investment will be made once we have received the completed form and supporting documents and your funds reflect in the correct bank account. 5. Once your account has been opened, you can register via to view and/or transact on your portfolio. 6. It is important to provide a cellphone number, as transaction notifications are only sent via SMS. PROCESSING TIMES The same day s price is applied to transaction requests submitted (with all requirements met) by 15h00 (13h00 for all transactions involving money market funds). Transaction requests received after these times will be processed the next available working day, once all requirements have been met, with the same cut-off times applying. ABOUT THE OLD MUTUAL UNIT TRUSTS LIVING ANNUITY The Old Mutual Unit Trusts Living Annuity is designed to provide retirees with a regular income from their accumulated retirement savings. You can select an annual income percentage of between 2.5% and 17.5% (of the portfolio value on the anniversary date), which can be adjusted annually. Your portfolio can be structured to suit your risk profile and investment preferences from any of the available unit trust funds (subject to restrictions on unit trust availability that may apply from time to time). Performance is dependent on the unit trust/s chosen and there is no guaranteed income level. Your income can therefore decrease or increase in line with the performance of your underlying portfolio. All risks associated with this investment are therefore carried in full by the annuitant. Any capital that is not exhausted can be bequeathed to your selected beneficiaries. This is a member-owned annuity, and investment into this annuity can only take place if the rules of the transferring fund allow such investment. Please read the Old Mutual Unit Trusts Living Annuity fact sheet to ensure you understand the product. Please complete this form using block letters and tick ( ) where appropriate. PROPOSAL TO BUY UNITS In my capacity as a pension/provident/retirement annuity fund member, I hereby apply for the number of units that can be purchased by the investment amount referred to below in the Old Mutual Unit Trusts Living Annuity. All transactions are subject to the conditions of the relevant trust deed(s). Do you already have an Old Mutual Unit Trusts investment? No Yes If Yes, please provide unit trust number Does this application to buy units include a Money Market Unit Trust Fund? No Yes 1. ANNUITANT DETAILS INDIVIDUAL IN WHOSE NAME INVESTMENT IS HELD Surname and initials Title and first names Gender: Male Female Marital status: Married Single ID/Passport number Income tax number INDIVIDUAL IN WHOSE NAME INVESTMENT IS HELD of birth Nationality If passport, place of issue Tel. (Code) (Home) (Code) (Work) Fax Cellphone Preferred method of communication: Postal address Postal address Old Mutual Unit Trusts preferred method of communication is . Physical address Postcode Postcode Page 1 of 7

2 2. TRANSFERRING RETIREMENT ANNUITY, PENSION OR PROVIDENT FUND DETAILS Name of Fund Postal address Contact person Postcode Tel. Code Fax. Code Number Number Replacement: Does this policy qualify as a replacement policy in terms of the LOA Code on Replacement? YES NO 3. ANNUITANT BANK DETAILS Payments can only be made to your own South African bank account. Surname of account holder Initials Bank and branch Branch code and account number Account type: Current Savings 4. COMPULSORY PURCHASE ANNUITY DETAILS Unit trust minimums apply. Distributions are automatically reinvested. No additional withdrawals, other than regular income withdrawals, are allowed. Please refer to Selecting an income level in light of investment risk further on in this form for important information before completing this section. To view the Effective Annual Cost (EAC) of your investment, visit Amount to be invested R (min. R50 000) I wish to receive an annuity income MONTHLY 3-MONTHLY 6-MONTHLY YEARLY at a gross rate of % per annum. Please click here to view the full range of Old Mutual Unit Trust funds available to you for investment UNIT TRUST SELECTION AMOUNT TO BE INVESTED ANNUITY INCOME Rand amount or % % of income drawn per fund TOTAL R 100% 100% of Gross Annuity Rate Page 2 of 7

3 5. BENEFICIARIES You can elect a beneficiary/beneficiaries on this investment. If you have more than two beneficiaries, please attach their details to this form. If no beneficiary is elected, your estate receives the remaining capital. 1. Surname and initials Title and first names % Gender: Male Female Relationship Benefit Share ID/Passport number of birth Nationality 2. Surname and initials Title and first names % Gender: Male Female Relationship Benefit Share ID/Passport number of birth Nationality 6. INCOME TAX DETAILS The income you draw is taxed at the marginal tax rate. Investment returns generated by this annuity are currently not taxable. Tax (SITE and PAYE, if applicable)will be deducted unless an income tax directive is provided. Note that payouts to beneficiaries may be subject to taxes. Additional tax per month (if required): Income tax ref. no.: 7. SHARI AH-COMPLIANT UNIT TRUSTS (Old Mutual Albaraka Equity Fund and Old Mutual Albaraka Balanced Fund) I acknowledge that I have opted to invest into a Shari ah-compliant unit trust, which means that it will be managed in accordance with the guidelines of the Shari ah Supervisory Board and having regard to the Shari ah Standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). I agree that any income deemed to be non-permissible by the Shari ah Supervisory Board will be paid to the charitable trust elected by the Shari ah Supervisory Board in line with the principles of Shari ah and the supplemental deed of the unit trust. I acknowledge that this does not form part of my income and will not reflect on my tax certificate. I take note that in some instances, income may be reflected as interest income in line with current tax practices on my tax certificate, but accept that such income is fully Shari ah compliant and has been approved as such by the Shari ah Supervisory Board. Signature of investor 8. ACCEPTANCE OF ADVICE A OR B I am solely responsible for my investment choices and their associated outcomes, and acknowledge that I have entered into this transaction without obtaining financial advice as that is my preference. I hereby confirm that, where applicable, the relevant intermediary (adviser or broker) has satisfied me that he/she is authorised to render financial services in respect of this product. Do you want to appoint this intermediary as your Preferred Servicing Intermediary (PSI) for all your future Old Mutual financial services needs? YES, I appoint and give the PSI access to information on all my existing Old Mutual financial services products. NO, I will complete an Intermediary Appointment Note (IAN) selecting my servicing intermediary of preference per category of Old Mutual financial services product. Page 3 of 7

4 9. INSTRUCTION FOR PAYMENT OF ADVISER FEES (If applicable) Note: Fees to the adviser can only be applied if this section is fully completed for all fees agreed. INITIAL ADVISER FEE An initial adviser fee has been agreed as follows. The applicable amount will be deducted prior to the purchase of units. % incl. VAT (Max 1.73% incl. VAT) which is R (incl. VAT) (Note: If % and rand amount differ, the % holds.) Your adviser may receive a maximum initial adviser fee of 1.73% (incl. VAT) of the investment amount as a portion of the initial charge. The amount of the adviser fees on this policy is outlined in the OMUT Illustrator Quote Package. Advisers employed by Old Mutual Personal Financial Advice receive remuneration partly in the form of reduced adviser fees and partly in the form of other benefits. The PWM financial consultant is a permanent employee of Private Wealth Management, a business of Old Mutual. The consultant is remunerated by way of salary and performance bonus. Signature of investor ANNUAL ADVISER FEE In addition, you may elect to pay an ongoing annual adviser fee. This fee is negotiated between yourself and your adviser and is over and above the initial adviser fee stipulated above. YES or NO If yes, specify percentage. % (max 1.15% p.a. incl. VAT) of your Old Mutual Unit Trusts Living Annuity s market value as at the investment start date and thereafter on the anniversary date. Note that this instruction overrides all existing annual adviser fee agreements. This annual fee is calculated as a percentage of the value of all your member-owned Old Mutual Unit Trusts Living Annuities as at your last investment anniversary date. It excludes the Old Mutual Albaraka Equity Fund, Old Mutual Income Fund A3 and Old Mutual Balanced Fund A3 as they pay a trail fee out of their annual service fee. This annual adviser fee is deducted from your scheduled annuity payments after tax has been deducted, and paid to your servicing intermediary. Payment of this fee starts on your next annuity payment. You will receive confirmation of the implementation of this fee, any adjustments made to the annual percentage or to the unit trust, as well as the cancellation thereof. This fee is based on an agreement between the client and the intermediary. You need to take into account whether your intermediary is VAT registered. Old Mutual Unit Trusts is not a party to the agreement and will cancel the fee on the written instruction of either party. The fee will further be cancelled by a change in servicing intermediary. Old Mutual Unit Trusts will change any erroneous instructions received, but will not rectify prior payments based on erroneous instruction. Signature of investor 10. DECLARATION BY ADVISER/BROKER SPECIAL INSTRUCTIONS I, the undersigned, hereby declare and warrant that I am duly authorised to render financial services in respect of this product. All parties concerned have been identified and verified and all relevant documentation has been obtained and appropriate procedures have been applied in accordance with FICA (Act 38 of 2001). Name of introducer Branch Intermediary/Broker code Tel. no. Introducer s address I further declare that I: fully understand and accept the S referencing system; and fully understand replacement of an insurance policy contract. Are you registered with the LOA to market life assurance? YES NO Signature of introducer Page 4 of 7

5 11. DISCLOSURES SELECTING AN INCOME LEVEL IN LIGHT OF INVESTMENT RISK The Old Mutual Unit Trust is a living annuity is a long term Insurance product issued by Old Mutual Life Assurance Company (South Africa) Limited "Old Mutual" which provides the annuitant with the flexibility to elect their income level. You can review your income level annually on the anniversary date of the annuity. This income level is currently between 2.5% and 17.5% p.a. of the portfolio value, but it may be reviewed from time to time. As performance is dependent on the underlying unit trusts selected, the value of the annuity (and consequently annuity payments) can increase or decrease. This annuity is not guaranteed. Selecting a high initial income level may further impair your ability to generate an income in future, especially if the income level is in excess of the growth of the portfolio and you are eroding capital. ASSOCIATION FOR SAVINGS & INVESTMENT SA (ASISA) recommends that this should not be your sole source of retirement income. In addition, if you require a pre-tax annuity of more than inflation plus 2% of the consideration in order to sustain your lifestyle, then rather consider a different type of investment. In light of the current economic environment ASISA recommends a maximum income level of 12%. We urge you to consider the following guidelines when deciding on your annuity income level. Under age 70: Between 70 and 80: Over age 80/ill health*: Maximum 12% p.a. Maximum 15% p.a. Maximum 17.5% p.a. * If you are suffering from ill health or some other impairment that will significantly reduce your life expectancy. Please make sure you have read this accompanying fact sheet. You can diversify your portfolio by investing in any of the funds offered in this product, thus aiming to manage investment risk. Note investors should consider both volatility risk and inflation risk in structuring a portfolio. You may switch between, Old Mutual Unit Trust funds at any time. INFORMATION Full details of unit trusts, including performance, investment objectives, risk factors and fees, are available at RIGHT TO CANCEL This policy is a living annuity and as such is not subject to cancellation. However, you may transfer your living annuity to another insurer at any time. In addition, it may be converted to a conventional life annuity, administered by the same assurer or another assurer. A conversion is based on the market value of the units at the date of conversion, and subject to ruling legislation at the time. POLICY AMENDMENTS Old Mutual reserves the right to amend the member s benefit in the event of a change in the basis of taxation or rate. OWNERSHIP Ownership of the underlying assets of this annuity vests in the assurer, not the annuitant. EXPENSE CHARGES Potential initial product charges: Should you use an intermediary, the agreed initial adviser fee of between 0% and 1.73% (incl. VAT) of the investment amount will be deducted prior to the purchase of units. Charges against the underlying funds: An annual service fee is calculated on the market value of a unit trust s assets (excluding income and permissible deductions) and is deducted from each underlying unit trust s portfolio on a monthly basis. This fee may include payment of adviser fees. Further costs incurred by the fund may be deducted from its portfolio. These are compulsory and bank charges, brokerage, marketable securities tax, other taxes and levies, custodian and trustee fees, and audit fees. The majority of these underlying fees are jointly reflected in the Total Expense Ratio (TER) of a unit trust, disclosing the historical fees paid over a one-year period. Refer to individual unit trust fund fact sheets for these figures. A schedule of charges, fees and commission is available from the administrator. Annuity income payment fee: Dependent on payment frequency and deducted from after-tax annuity payments: R9 per month R15 per quarter R24 per half-year R42 per annum The charges outlined in our Illustrator are the full expenses that will be charged to your policy. These charges are used by Old Mutual to cover all costs of administration as well as the commission payable to the financial adviser. 12. PROTECTION OF PERSONAL INFORMATION Old Mutual would like to offer you ongoing financial services and may use your personal information to provide you with information about product or services that may be suitable for your financial needs. Please indicate here if you do not wish to receive this. We may use your information or obtain information about you for the following purposes: Fraud prevention and detection Market research and statistical analysis Audit & record keeping purposes Compliance with legal & regulatory requirements Verifying your identity Sharing information with service providers we engage to process such information on our behalf or who renders services to us. You may access the personal information that we hold and request us to correct any errors or to delete this information. To view our full privacy notice and to exercise preferences, visit our website on Page 5 of 7

6 13. STATUTORY INFORMATION We aim to treat our clients fairly by giving you the information you need in as simple a way as possible to enable you to make informed decisions about your investments. We believe in the value of sound advice and so recommend that you consult a financial adviser before buying or selling unit trusts. You may however, buy and sell without the help of a financial adviser. If you do use a financial adviser, we remind you that they are entitled to certain negotiable adviser fees or commissions. You should ideally see unit trusts as a medium to long term investment. The fluctuations of particular investment strategies affect how a fund performs. Your fund value may go up or down. Therefore, we cannot guarantee the investment capital or return of your investment. How a fund has performed in the past does not necessarily indicate how it will perform in the future. Our cut-off time for client instructions (e.g. buying and selling) is at 15:00 each working day for all funds, except the Money Market Funds, which is at 13:00. These are also the times we value our funds to determine the daily ruling price (other than at month-end when we value the Old Mutual Index Funds and Old Mutual Multi-Managers Fund of Funds ranges at 17:00 close). Daily prices are available on our public website ( and in the media. The daily ruling price is based on the current market value of the fund s assets plus income minus expenses (NAV of the portfolio) divided by the number of units in issue. The fund fees and costs that we charge for managing your investment is accessible on the relevant fund's minimum disclosure document (MDD) or Table of fees and charges, both available on our public website ( or from our contact centre ( ). Additional information on this proposed investment can be obtained, free of charge, from our public website or our contact centre. Funds may borrow to pay client disinvestments and may engage in scrip lending. A process of ring-fencing of withdrawal instructions and managed pay-outs over time may be followed should excessive withdrawals from a fund place the fund under liquidity pressures. Old Mutual Unit Trusts has the right to close a portfolio to new investors in order to manage it more efficiently in accordance with its mandate. Old Mutual Unit Trust Managers (RF) (Pty) Ltd is a registered manager in terms of the Collective Investment Schemes Control Act 45 of Old Mutual is a member of the Association for Savings & Investment South Africa (ASISA). Money Market Funds: A Money Market Fund is not a bank deposit account. Its unit price aims to be constant but investment capital is not guaranteed. The total return is primarily made up of interest (declared daily at 13:00) but may also include any gain/loss on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in the case of abnormal losses, it can have the effect of reducing the capital value of the fund. The published yield is calculated using the average of the fund s previous seven days net income (and assumes all income was reinvested). This figure is then annualised, which is the weighted average compound growth rate. Income Funds: Income funds derive their income primarily from interest-bearing instruments as defined. The published yield is a current yield and is calculated daily. The value of underlying assets of Income funds are marked to market on a daily basis. Fund of Funds: A fund of funds is a portfolio that invests in other funds in order to meet the investment objective of the fund of funds. Fund of funds can invest in local, foreign or offshore funds which levy their own charges, and may result in a higher fee structure. Feeder Funds: A feeder fund is a portfolio that invests all of its capital in a single underlying fund. This underlying fund can be a local, foreign or offshore fund and levy its own charges which may result in a higher fee structure. Third-Party Named Funds (co-branded): Old Mutual Unit Trust Managers (RF) (Pty) Ltd is the manager of Adviceworx and Old Mutual Multi-Managers suites of co-branded funds and retains full legal accountability. Funds holding foreign assets: Some funds hold assets in foreign countries and therefore may have risks, in these countries, regarding liquidity, the repatriation of funds, political and macro-economic situations, foreign exchange, tax, settlement and the availability of information. 14. DECLARATION I understand and agree that: 1. The application form and related documents, together with the policy document, form the sole basis of the contract. 2. This policy, underwritten by Old Mutual, is subject to the conditions of the contract (as amended from time to time). The policy is subject to the provisions laid down by the Registrar of Long Term Insurers and the South African Revenue Services. 3. The annuity is payable for life. The administrator reserves the right to vary the income percentage in exceptional circumstances. I understand that the annuity is not guaranteed and will depend on the income percentage selected and the investment returns of the selected unit trust funds. 4. The amount of the annuity may be reviewed annually in accordance with the annuity conditions. 5. The investment in the selected investment portfolio will be made at the ruling price on the date of receipt of the investment amount, supported by this duly completed instruction to Old Mutual, provided all statutory disclosure requirements have been met, and that payment of the annuity can commence within the first month thereafter. 6. An administration fee will be levied on all annuity income payments. 7. All information given in this instruction, and in all documents that have been or will be signed by me in connection with this instruction, whether in my handwriting or not, is true and complete. 8. I know that the cost of buying units may include an initial adviser fee charge plus VAT, depending on whether or not I use an intermediary, and that there are no guarantees on my capital. 9. I do not have a contractual right to cancel this policy. 10. No cessions/transfers/pledges/attachments and repurchases are permitted. 11. I can request a copy of this application, which must be given to me within a reasonable time of my request. 12. I am aware of the investment portfolios objectives, risk factors, the charges and income distributions as set out in the fund fact sheet(s). 13. I acknowledge that Old Mutual Unit Trust Managers Ltd may borrow up to 10% of the portfolio to bridge insufficient liquidity. 14. I further authorise Old Mutual Unit Trust Managers Ltd to accept instructions from me via facsimile (please delete if not applicable). 15. I am aware that I may view the Effective Annual Cost (EAC) of my investment on Once my investment has been processed, Old Mutual Unit Trust Managers (RF) (Pty) Ltd will confirm the EAC to me in writing. 16. Please tick ( ) where appropriate. I confirm I have: OR Viewed the Living Annuity OM Quote with my adviser : Quote Version Number.. I have enclosed and signed the OM Unit Trust Living Annuity Illustrator with this application Page 6 of 7

7 Signature CONTACT DETAILS Old Mutual Unit Trust Managers (RF) (Pty) Ltd (Registration no. 65/08471/07) Mutualpark, Jan Smuts Drive, Pinelands 7405, South Africa PO Box 207, Cape Town 8000, South Africa Telephone no.: +27(0) Helpline: Fax no.: +27(0) Internet address: Complaints may be directed to the Client Relationship Manager at the above address. Our complaints process is available via our website or by contacting Compliance Department: +27(0) Old Mutual Investment Administrators (Pty) Ltd (Registration no. 1988/003478/07) Mutualpark, Jan Smuts Drive, Pinelands 7405, South Africa PO Box 5408, Cape Town 8000, South Africa Telephone no.: +27(0) Fax no.: +27(0) Compliance Department: +27(0) Professional indemnity cover and fidelity insurance cover are in place. Old Mutual Investment Administrators (Pty) Ltd is a third party administration and service provider to Old Mutual Unit Trust Managers (RF) (Pty) Limited and is a licensed financial services provider. Visit for unit trust information, prices and news. Log in to view your portfolio online. Clients who select as their preferred correspondence method benefit from an enhanced communication offering. Page 7 of 7