Safeguard your retirement savings when changing jobs
The importance of preserving your retirement savings Moving between jobs can help you climb the corporate ladder but if you dont ensure that you look after your pension or provident fund savings while doing so, you could end up having too little money when retirement comes knocking. Thats where a preservation fund like Protektor from Old Mutual can help. Whether youve been retrenched, are between jobs, or getting ready to start your own business, Protektor is an excellent way to make sure that the money you have already saved towards retirement continues to grow and retains its value in accordance with the markets. About the Protektor Preservation Fund from Old Mutual Protektor is a preservation vehicle that allows you to transfer the value of the Pension or Provident Fund payout you receive when you leave your employer fund without having to pay any tax. Why should you choose Protektor? Old Mutual Protektor is an excellent preservation fund if you: Need a tax-effcient and cost-effective retirement investment; Want to be able to select the investment portfolios into which your money is placed; Want to be able to adjust your investment risk profle as your needs change; Need the assurance that your investment is managed by a professional board of trustees. Investment Portfolios More about the underlying investment funds The investment portfolios are managed by the Old Mutual Investment Group, to suit the life stage, investment objective and risk propensity of individual investors. This enables investors to preserve their retirement benefts according to their investment objectives, their risk profle and other circumstances. Protektor offers two investment options: Protektor Guaranteed Option The underlying portfolio is selected by the Protektor Management Board Protektor Investment Choice A Range of portfolios including fxed interest, market-linked and smoothed bonus portfolios. An investor can, subject to the minimum amounts for each portfolio, allocate the benefts between the two options and between the underlying portfolios of Protektor Investment Choice. Protektor Guaranteed Option Absolute Stable Growth Portfolio (current portfolio) This smoothed bonus portfolio offers high exposure to growth assets, while smoothing returns and reducing volatility. Capital is protected by a fxed 80% guarantee and monthly bonuses are declared in advance. A targeted return of 5.5% above infation enhances the potential for steady retirement investment growth. Protektor Investment Choice CoreGrowth Portfolio CoreGrowth is a smoothed bonus portfolio that offers competitive, long-term growth while providing capital guarantees. Balanced Fund The Balanced Fund invests across equities, bonds and cash with a bias towards shares offering long-term value. Up to 15% of the portfolio may be invested offshore. This is a moderate risk fund, with volatility managed by means of a balanced, diversifed portfolio. Bond Fund This moderate risk fund is exposed to interest rate fuctuations and offers a combination of capital growth and high income yields. The fund invests in public and private sector bonds and deposits, with at least 50% invested in bonds with an effective government guarantee. Money Market Fund The Money Market Fund preserves capital while offering high levels of income. It invests in money market securities with a maturity of less than 12 months. This conservative risk fund has limited risk due to the short-term nature of the assets held. For further information or advice, contact your Corporate Consultant, Financial Adviser or Broker, or call 0860 20 30 40 I email rfamembers@oldmutual.com. Alternatively visit www.oldmutual.co.za/protektor for more information. o m m s
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T 2 1 6 2 . 2 Protektor fees and charges Protektor Preservation Funds offer members an inexpensive and simple fee structure. Fees comprise of: once-off initial fees and where applicable commission. ongoing administration and investment fees and charges.
Investment Fund Investment Administration Capital Charge Performance fee and Asset Management (for guarantees) Smoothed Bonus Funds Old Mutual Absolute Stable Growth Investment Fee: 0.65% 0.70% N/A Old Mutual Guaranteed (Not available after 1 April 2010) Investment Administration Fee: 0.25%* 0.75% N/A Old Mutual Core Growth 100 Investment Fee: 0.35% 1.80% N/A Market-linked Funds Old Mutual Balanced Fund A Investment and Service fees: 0.86% N/A Performance fees: 0% - 1.99% Subject to Overall Maximum 2.85% Old Mutual Bond Fund A Investment and Service fees: 0.86% N/A N/A Old Mutual Money Market Fund A Investment and Service fees: 0.57% N/A N/A Ongoing administration and investment fees and charges Minimum Investment R 6 000 Absolute Stable Growth R10 000 Unit Trust (per option) R30 000 Money Market Portfolio Fee Details Once-off Brokerage fees A maximum of 1.5% (excl. VAT where applicable) of the gross investment amount. Once-off Administration fee 1.5% of the frst R250 000; plus 0.5% of the remaining balance of the gross investment, subject to a minimum of R1000 and a maximum of R7 500 (excl. VAT). Management and administration fee 0.5% per annum of your investment balance Once-off initial fees and where applicable commission (no initial administration fee will be levied for existing Old Mutual clients transferring into Protektor) * Bonuses declared are net of an Asset Management Fee of 0.25% to 0.35% (depending on asset allocation)