Health. Wealth. Security

Transcription

1 Health Wealth Security

2 PPS Investments provides a full range of investment products that is strikingly simple, with a fee structure that is clear, transparent and very competitive. All of these products are linked to Investment Options (unit trusts) that are managed by PPS Multi-Managers and other top fund managers. As part of the PPS member circle, you can share in the profits of PPS Investments - giving you exclusive benefits and ownership. Facts about investing Reasons to choose PPS Investments PPS Multi-Managers PPS Preferred Funds PPS Personal Pension PPS Investments Corporate Personal Pension PPS Preservation Funds PPS Endowment Plan PPS Living Annuity Combining PPS Living Annuity & PPS Post-Retirement SRA

3 Facts about investing PPS Investments acknowledges the responsibility you feel when selecting who to trust with your money. You have to: Manage your anxiety and level of uncertainty in good and bad times Be confident in your choices and the decisions you have taken Ensure that the tailored plan that you have developed remains attainable and, above all, that you manage to stick to it In addition to this, when deciding how best to structure your retirement and savings products with underlying Investment Options, you need to: Understand all the available asset managers investment philosophies Be able to correlate their performance to ensure consistent delivery Select the right combination of asset managers, asset classes and investment returns needed to attain your investment objective Reasons to choose PPS Investments We offer a focused range of Investment Options Having a focused range of quality Investment Options to choose from means that you can construct your investment portfolio to best achieve your retirement goals, without having to contemplate hundreds of funds. The range provides you with the scope to cater for your financial requirements in the comfort that all of the funds have been explicitly approved by the PPS Investment Policy Committee We present a competitive product fee structure No initial administration or transaction fees Annual administration fees are very competitive and reduce as your assets grow Ongoing advice fees can be charged on an as-and-when basis Significant partnership savings have been negotiated with various fund managers to transparently reduce the costs for PPS members We are refreshingly flexible No penalties policy (e.g. if you change your mind about your debit orders and want to invest a different amount, change your escalation rate or have to skip payments for a few months, you won t be penalised) No switching fees when you need to re-structure your underlying portfolios This is your company, after all! You have the unique opportunity of being an owner of your investment company The success of PPS Investments contributes to your Surplus Rebate Account 1

4 Why use a Multi-Manager for your investment portfolio? Ask yourself: Am I able to distinctly differentiate between fund managers? Do I have the qualitative insight to know whether there is a problem? Can I successfully choose the correct mix of funds to achieve the diversified result I need to achieve my goal? With the help of the PPS Multi-Managers in-house investment team, you will confidently be able to answer yes to all of these questions. PPS Multi-Managers construct portfolios that are explicitly focused on the long-term goals of PPS members. We understand the differences between fund managers and how including them will benefit your overall portfolio. Multi-Managed Fund of Funds At the core of our Multi-Managed fund range are three risk-profiled funds. These funds are managed with the objective of delivering a spectrum of real returns (returns in excess of inflation) over specific investment periods: PPS Conservative Fund of Funds: PPS Moderate Fund of Funds: PPS Managed Flexible Fund of Funds: CPI + 2% p.a. over a rolling 3 year periods CPI + 4% p.a. over a rolling 5 year periods CPI + 6% p.a. over a rolling 7 year periods Multi-Managed Funds In addition to the core fund of funds, we offer a set of market-linked unit trusts providing exposure to specific asset classes, namely: PPS Enhanced Cash Fund PPS Flexible Income Fund PPS Equity Fund Potential Return PPS Equity Fund PPS Managed Flexible Fund of Funds PPS Moderate Fund of Funds PPS Conservative Fund of Funds PPS Flexible Income Fund PPS Enhanced Cash Fund Market-linked Inflation-linked Risk Potential return vs. risk of the PPS Multi-Managed Unit Trusts. 2

5 PPS Preferred Funds Aside from selecting specific unit trusts as the underlying Investment Options (unit trusts) for your retirement and savings needs, you can also invest directly into any of the available Investment Options with your discretionary money. Your decision of which Investment Option to invest in will have a significant impact on the future value of your investment. Our range of Investment Options comprises an appropriate and wellstructured selection of multi-managed and single-manager unit trusts. When would you choose to use the Investment Options? You want to structure your retirement and savings product to match your requirements You want to build a savings base by investing any discretionary money into any of the Investment Options via the PPS Preferred Funds The PPS range of Investment Options comprises an appropriate and well-structured selection of Multi- Managed and Single-Manager unit trusts PPS Multi-Managed Unit Trusts comprise combinations of specialist asset managers whom we continuously monitor. Within this range we offer a suite of Single-Manager Unit Trusts, managed by a selection of leading unit trust management companies. This select suite of Single-Manager funds is made available through our Preferred Funds Platform PPS Personal Pension The PPS Personal Pension is an individual pension fund, which allows you to take charge of planning for your post-retirement financial security. It provides an ideal way for you to build retirement capital while remaining completely in control of your investments, within a structured and tax-efficient framework.* When would you choose the PPS Personal Pension? You need to save towards retirement You are self-employed and have no or limited employee benefits You want to supplement your corporate pension or provident fund You want an additional vehicle to boost retirement savings AND diversify your investment portfolio Tax deductibility: Up to 15% of your non-retirement funding income is tax deductible when invested in the PPS Personal Pension Independence: If you change your employer or career, the provisions you ve made for your retirement won t be negatively affected Estate duty exemption: Your PPS Personal Pension payments after death are exempt from the laws governing estate duty Protection from insolvency: Your PPS Personal Pension cannot be leveraged against personal debt in the event of insolvency * The information provided above may vary from time to time, based on the legislation, regulations and other statements issued by the Minister of Finance in respect of taxation. 3

6 PPS Investments Corporate Personal Pension As a business owner, you can offer your employees corporate benefits through the PPS Investments Corporate Personal Pension without any of the costs or administrative hassles that usually accompany this type of product. Why would you choose the PPS Investments Corporate Personal Pension? You are able to provide an ideal way for ALL of your employees to build retirement capital. A sister suite of OPN products was launched in 2009 to enable investors who do not qualify for PPS membership, to enjoy the benefits of the PPS Investments Corporate Personal Pension The employees wholly own their personal pension, either the PPS Personal Pension or the OPN Personal Pension, which is tailored to meet their specific requirements, giving them full control over their investment These personal pensions are entirely portable, allowing your employees to keep them when they resign or retire the saving is automatically preserved For your employees who qualify for PPS membership, there is the added benefit of sharing in the profits of PPS via their portion of the PPS Surplus Rebate Account (SRA) which is realised when they retire - precisely when they need it the most! Simplicity and no overheads The underlying investments are tailored to your employees needs Minimal administration burden for you, as the employer Low costs to your employees and none to you, the employer An independent, experienced board of trustees is already in place How does it work? 4

7 PPS Preservation Funds The preservation of valuable retirement funding is extremely important and a crucial consideration whenever you change employers in the course of your working life. PPS Preservation Funds are pre-retirement products which are structured to preserve your retirement capital, once you have left either a pension or a provident fund. These are particularly beneficial when changing employment as a result of retrenchment, resignation or the closing of an occupational retirement fund. As a disinvesting member of a pension fund, you will transfer into the PPS Preservation Pension Fund. Similarly, as a disinvesting member of a provident fund, you will transfer your money into the PPS Preservation Provident Fund. In both instances, all rules governing your previous investment remain the same. When would you choose to use a PPS Preservation Fund? You have resigned, were retrenched or your corporate retirement fund has been closed You have a preservation fund with a different product provider and want access to the unique benefits of investing with PPS Investments Delay your tax burden: On transferring to a PPS Preservation Fund, there are no immediate tax liabilities Maximise retirement savings: The investment is safeguarded until you retire and have benefited from having your money in a well-managed portfolio You have flexibility: Should you have a fluctuating income, a preservation fund allows one preretirement withdrawal, a portion of which is tax free Have options at retirement: Upon retiring from the PPS Preservation Pension Fund, a maximum of one third of your retirement proceeds may be taken as a cash lump-sum, a portion of which is tax free PPS Preservation Provident Fund has no prescribed codicil relating to the purchase of an annuity. The full value of your retirement proceeds may thus be taken as a cash lump-sum of which a portion is tax free 5

8 PPS Endowment Plan The PPS Endowment Plan is a tax-efficient investment vehicle which is structured with the creation of longterm wealth in mind. It is most suitable if you have a marginal tax rate greater than 30% and a minimum investment time horizon of five years.* When would you choose to use a PPS Endowment Plan? You fall within a tax bracket that is higher than 30% You are subject to personal tax rates in excess of 30% You have time horizons of at least five years Access to a tax saving: A fixed tax rate of 30% applies to your endowment. Therefore, if you fall into a tax bracket higher than 30%, you will get a tax saving on the interest you earn. This also applies to Capital Gains Tax (CGT), when you switch and redeem, which is set at a rate of 7.5%. The tax is paid on your behalf, meaning that we declare any income earned to SARS, on your behalf Helps you stick to your savings goal without total confinement: Even though the investment is fixed for a five-year period, you still have access to one withdrawal and one interest-free loan within that time. You may also stop and start your debit order or change it, if your circumstances demand this. Additional contributions on an ad-hoc basis can be made Extra security: You can cede your PPS Endowment Plan partially or outright * The information provided above may vary from time to time, based on the legislation, regulations and other statements issued by the Minister of Finance in respect of taxation. 6

9 PPS Living Annuity Following retirement, you are often confronted with the challenge of how best to preserve your nest egg. Your ability to sustain your desired lifestyle depends on the growth of your retirement capital as well as the level of income you choose to draw after retirement. The PPS Living Annuity provides you with an income after you have retired from a retirement annuity, pension, provident or preservation fund. When would you choose to use a PPS Living Annuity? You are retiring from the PPS Personal Pension, the PPS Retirement Annuity or any other retirement annuity, pension, provident or preservation funds You have an existing living annuity and want to reduce the drag on your assets caused by high product fees Choice in post-retirement income: Between 2,5% and 17,5% of the net investment value may be withdrawn annually as income. You may select to withdraw this income monthly, quarterly, half-yearly or annually Gives you flexibility: The PPS Living Annuity is designed to allow you the flexibility to change your level of post-retirement income annually and/or switch between Investment Options as your circumstances change without incurring any penalties It is important to note, that the income drawn from your PPS Living Annuity is not guaranteed and will be affected by the investment performance of the Investment Options you have selected. Combining the PPS Living Annuity and PPS Post-Retirement SRA as your post-retirement solution This is quite simply the most effective way to manage your retirement and it is exclusively available to the members of PPS. The most important aspect of retiring is to ensure that your savings last for as long as you need them to. The drawdown selected from your living annuity plays a vital role in the sustainability of those funds. At retirement, after the age of 60, the PPS SRA Retention Option becomes available, which enables you to set up regular withdrawals at your chosen frequency, to supplement your retirement income, without transaction costs or penalties. This greatly reduces the rate at which your other post-retirement assets such as your PPS Living Annuity are used, prolonging the durability of those assets. The PPS SRA Retention Option can also be used to simply leave the full value of your SRA invested in your chosen fund, allowing your nest egg to continue to grow. Please refer to the PPS Insurance brochure for the full details regarding the PPS SRA benefit. 7

10 PPS Limited (Limited by Guarantee) Reg. No.2001/011016/09 (PPS). PPS Insurance Company Limited Reg. No. 2001/017730/06 (PPS Insurance) - Licence No Professional Provident Society Investments (Proprietary) Limited Reg. No. 2005/02/9098/07. PPS Marketing Services (Pty) Ltd Reg. No. 2005/000531/07 - Licence No PPS Insurance and PPS Marketing Services are Authorised Financial Services Providers. PPS Investments (39270 and PPS Multi-Managers (28733) are licenced financial service providers. All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual. We are not acting and do not purport to act in any way as an adviser or in a fiduciary capacity. Any representation or opinion is provided for information purposes only. The information provided in this document is subject to the terms and conditions applicable to any policy issued by PPS Insurance and its subsidiaries PPS. INV 06/10 For a comprehensive financial needs analysis, consult a PPS product-accredited financial adviser. Alternatively, contact our PPS Investments Client Services Centre on or info@ppsinvestments.co.za. for professionals since 1941 Health Wealth Security Profmed ProActive Profmed ProActive Plus Profmed ProSecure Profmed ProSecure Plus Profmed ProPinnacle Profmed Wellness PPS Personal Pension PPS Retirement Annuity PPS Preservation Funds PPS Living Annuity PPS Endowment Plan PPS Preferred Funds PPS Surplus Rebate Account PPS SRA Retention Option PPS Sickness & Permanent Incapacity Benefit PPS Professional Life Provider PPS Professional Health Provider PPS Professional Disabilty Provider PPS Accidental Death Product PPS Business Provider PPS Student Provider PPS Home Contents & Car Insurance PPS Professional Indemnity Provider The Circle of Choice for Professionals Since