Old mutual training

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Old mutual training

  1. 1. INTRODUCING THE OLD MUTUAL INTERNATIONAL INVESTMENT PORTFOLIO FROM OLD MUTUAL ISLE OF MAN
  2. 2. A good investment vehicleshould offer the sameadvantages as a traditionalspice box … it should housea wide range of individual,complementary assets – andoffer the possibility of new andpotent combinations.Rakesh JhunjhunwalaPreeminent Indian value investor
  3. 3. INVESTMENT PORTFOLIO PEDIGREEINVESTMENT COLLECTIVE EXECUTIVE COLLECTIVEACCOUNT REDEMPTION INVESTMENT INVESTMENTSINGAPORE BOND BOND BOND U.K. HONG KONG U.K. EUROPEANEXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVEINVESTMENT REDEMPTION INVESTMENT INVESTMENTACCOUNT BOND PORTFOLIO BOND)SINGAPORE WORLDWIDE LATIN AMERICA EXECUTIVE SPANISH INVESTMENT INVESTMENT COLLECTIVE PORTFOLIO BOND INVESTMENT SOUTH WORLDWIDE BOND AFRICA
  4. 4. INVESTMENT PORTFOLIO PEDIGREE £600,000,000 303,000 £800,000,000 £1,500,000,000 CASH STRUCTURED PRODUCTS TRADES EQUITIES 43,000 POLICIES 10,000 £100,000,000£10,000,000,000 „OTHER‟ ASSETS FIXED INCOME BONDS 20%+ No. 1000+ ASSET98% 15,000 AUM REVIEWS COLLECTIVES 34,800 ADMIN QUERIES APE£130,000,000
  5. 5. BENEFITS ADMINISTRATION OPTION TO CONVENIENCE CONSOLIDATE EXISTING ASSETS CURRENCY CHOICE TAX EFFICIENCY WIDE ASSET CHOICE
  6. 6. TAXBENEFITSNO TAX ADMINISTRATION• Old Mutual is responsible for all reporting obligations, not the investor.• Share purchases/sales no longer need to be accounted for in annual returns, neither any currency gains/losses.LOWER TAX RATE• Old Mutual is responsible for paying all taxes.• OMIOM pays tax according to section 29A,”four fund approach”• Tax rate applicable to OMIOM 0% vs 13,3% CGT, 40% income tax.
  7. 7. TAXBENEFITS No wrapper Wrapper Capital 100,000 100,000 Growth 10% 10,000 10,000 CGT 13,3% 1,330 0 End year 1.Tax vs Fee 1,33% 0,35%-0,6% Growth 20% 20,000 20,000 CGT 13,3% 2,660 0% End year 1.Tax vs Fee 2,66% 0,35%-0,6%
  8. 8. ADMINISTRATION BENEFITS• Old Mutual not involved in day to day portfolio activity.• All deal instructions placed directly with stockbroker.• Valuations and deal confirmations come directly from stockbroker• Stock transfers available.• Reporting currencies include, GBP ,USD,EUR,CHF,AUD.• Can appoint third party DIM• Custodian account opened in the name of Royal Skandia
  9. 9. OLD MUTUAL INTERNATIONALINVESTMENT PORTFOLIO• Provided by Old Mutual Isle of Man• Sinking fund – 99 year term, maturity value of fund or £100• Available to • individuals (joint/multiple contract holders) • companies • an individual trustees or a corporate trustee • Can accommodate asset swaps• £100,000 – 150,000 for USD, EUR, AUD, CHF• £50,000 for top ups• Beneficiary nomination for ownership, avoids lengthy probate.
  10. 10. Section 54•Issue up to 1000 policies•Minimum per policy GBP500•Minimum payment or withdrawal amount GBP500•Investment review and and Discretionary Manager fees are partialwithdrawals. OMIOM purely facilitate payment.•Each payment will lock at least one contract.To reduce the impact• co-ordinate payments• reduce frequency• use up all commissionMaximum total withdrawal during first 5 years is initial contributionplus 5% growth per annum in foreign currency.
  11. 11. OMIOM CHARGESAssets Under Management Annual Charge (Linked Plans) (Deducted Quarterly) £100,000 - £199,999 0.60% £200,000 - £349,999 0.50% £350,000 - £499,999 0.45% £500,000 - £999,999 0.40% £ 1, 000,000 + 0.35% 0% INITIAL FEE
  12. 12. CHARGES – INITIAL COMMISSIONFLEXIBILITYOPTION 1•0-3% initial commission available.•100%-103% allocation.WAIVED INITIAL COMMISSION•Reduce the establishment chargeor• Increase the allocation rate•Commission/over allocation recouped equally over 5 years, up to 0.70% perannum•Outstanding establishment charges recouped on full surrender
  13. 13. CHARGES – INITIAL COMMISSIONFLEXIBILITYOPTION 20-3% initial “advice fee” available.Allocation 97%-100%No establishment charges to recoup on surrender
  14. 14. CHARGES – OTHER COSTSAnnual Investment review fee•Up to 1.14% or equivalent monetary amountDiscretionary Manager fee•Up to 1.14% or equivalent monetary amountPaid quarterly, minimum payment - £500 Safe custody, dealing,•Investment review fee and Discretionary manager fee are withdrawalsfrom a policy.•Commission and advice fee is not a withdrawal from a policy.•Commission is calculated on premium while investment review fee iscalculated on fund value
  15. 15. OFFSHORE STOCKBROKERS(CUSTODIANS)
  16. 16. STOCKBROKER CHARGES-EXECUTION ONLY INVESTMENT PORTFOLIO FEE GUIDELINE CollinsTrade size Stewart Credo Fairbairn Hargreave Hale Savoy Investec EquitiesGBP10,000 1,76% 1,25% 1,25% 1,52% 1,95% 1.95%GBP20,000 1,72 1,12% 0,88% 1,13% 1,28% 1.48%GBP30,000 1,09% 1,04% 0,61% 0,92% 1,06% 1.15%GBP40,000 0,94% 0,96% 0,51% 0,81% 0,95% 0.99%GBP50,000 0,86% 0,92% 0,45% 0,75% 0,89% 0.89%GBP100,000 0,68% 0,70% 0,32% 0,62% 0,75% 0.60%GBP200,000 0,49% 0,60% 0,26% 0,43% 0,64% 0.45%GBP500,000 0,37% 0,54% 0,22% 0,32% 0,55% 0.35%Custody 0,15%- GBP30/stoCharge p.a 0,15%-0,25% 0,20% 0,25% uk shares zero ck GBP35 GBP100/ Foreign share
  17. 17. STOCKBROKER CHARGES- DISCRETIONARY MANAGEMENT FEES Collins HargreavePortfolio Size Stewart Credo Fairbairn Hale Savoy InvestecGBP100,000 1,5% 1,25% Minimum 0,5% 1,5% 1,5% GBP500,00GBP200,000 1,5% 1,25% 0 0,5% 1,5% 1,5%GBP300,000 1,5% 1,25% 0,5% 1,5% 1,5%GBP400,000 1,5% 1,25% 0,5% 1,5% 1,5%GBP500,000 1,5% 1,25% 1,0% 0,5% 1,5% 1,5%GBP1,000,000 1,5% 1,12% 0,9% 0,44% 1,5% 1,5%GBP2,000,000 1,0% 0,93% 0,9% 0,34% 1,5% 1,0%GBP5,000,000 0,6% 0,82% 0,8% 0,29% 1,5% 1,0%Custody GBP30/stoCharge included 0,075% included included ck included
  18. 18. STOCKBROKER CHARGES-DISCRETIONARY DEALING CHARGES Collins HargreaveTrade size Stewart Credo Fairbairn Hale Savoy InvestecGBP10,000 GBP40 0,75% included 1,52% 1,95% includedGBP20,000 GBP40 0,75% included 1,13% 1,28% includedGBP30,000 GBP40 0,67% included 0,92% 1,06% includedGBP40,000 GBP40 0,63% included 0,81% 0,95% includedGBP50,000 GBP40 0,60% included 0,75% 0,89% includedGBP100,000 GBP40 0,55% included 0,62% 0,75% includedGBP200,000 GBP40 0,53% included 0,43% 0,64% includedGBP500,000 GBP40 0,51% included 0,32% 0,55% included
  19. 19. INVESTMENTS• Securities quoted on all major exchanges including: Singapore, Hong Kong, Australia,Luxembourg.• Unit Trust funds/Mutual funds: •UK Unit Trusts and FSA recognised funds in other jurisdictions •Exchange Traded Funds (ETFs),Australian Mutual Funds• Fixed term bank deposits• Corporate Bonds (Not Old Mutual)• Structured Products/Notes• Hedge fund of funds (mainly UCITS compliant)
  20. 20. INVESTMENTSExcluded investments:• Medium Term Notes- require committee approval• Commodities• Options/derivatives• Illiquid assets• Certain jurisdictions• US,Singapore and Hong Kong unit trusts
  21. 21. SUPPORT• Client Brochure• Adviser brochure• Offshore specialists
  22. 22. Like investments,blending spices is part art, part science. Getting it right for your personal palate is what counts.

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