1. INTRODUCING THE OLD MUTUAL INTERNATIONAL
INVESTMENT PORTFOLIO
FROM OLD MUTUAL ISLE OF MAN
2. A good investment vehicle
should offer the same
advantages as a traditional
spice box … it should house
a wide range of individual,
complementary assets – and
offer the possibility of new and
potent combinations.
Rakesh Jhunjhunwala
Preeminent Indian value investor
3. INVESTMENT PORTFOLIO
PEDIGREE
INVESTMENT COLLECTIVE EXECUTIVE COLLECTIVE
ACCOUNT REDEMPTION INVESTMENT INVESTMENT
SINGAPORE BOND BOND BOND
U.K. HONG KONG U.K.
EUROPEAN
EXECUTIVE EXECUTIVE EXECUTIVE
EXECUTIVE
INVESTMENT REDEMPTION INVESTMENT
INVESTMENT
ACCOUNT BOND PORTFOLIO
BOND)
SINGAPORE WORLDWIDE LATIN AMERICA
EXECUTIVE SPANISH INVESTMENT
INVESTMENT COLLECTIVE PORTFOLIO
BOND INVESTMENT SOUTH
WORLDWIDE BOND AFRICA
6. TAX
BENEFITS
NO 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. TAX
BENEFITS
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. 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. OLD MUTUAL INTERNATIONAL
INVESTMENT 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. 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 partial
withdrawals. OMIOM purely facilitate payment.
•Each payment will lock at least one contract.
To reduce the impact
• co-ordinate payments
• reduce frequency
• use up all commission
Maximum total withdrawal during first 5 years is initial contribution
plus 5% growth per annum in foreign currency.
12. CHARGES – INITIAL COMMISSION
FLEXIBILITY
OPTION 1
•0-3% initial commission available.
•100%-103% allocation.
WAIVED INITIAL COMMISSION
•Reduce the establishment charge
or
• Increase the allocation rate
•Commission/over allocation recouped equally over 5 years, up to 0.70% per
annum
•Outstanding establishment charges recouped on full surrender
13. CHARGES – INITIAL COMMISSION
FLEXIBILITY
OPTION 2
0-3% initial “advice fee” available.
Allocation 97%-100%
No establishment charges to recoup on surrender
14. CHARGES – OTHER COSTS
Annual Investment review fee
•Up to 1.14% or equivalent monetary amount
Discretionary Manager fee
•Up to 1.14% or equivalent monetary amount
Paid quarterly, minimum payment - £500 Safe custody, dealing,
•Investment review fee and Discretionary manager fee are withdrawals
from a policy.
•Commission and advice fee is not a withdrawal from a policy.
•Commission is calculated on premium while investment review fee is
calculated on fund value
18. STOCKBROKER CHARGES-
DISCRETIONARY DEALING CHARGES
Collins Hargreave
Trade size Stewart Credo Fairbairn Hale Savoy Investec
GBP10,000 GBP40 0,75% included 1,52% 1,95% included
GBP20,000 GBP40 0,75% included 1,13% 1,28% included
GBP30,000 GBP40 0,67% included 0,92% 1,06% included
GBP40,000 GBP40 0,63% included 0,81% 0,95% included
GBP50,000 GBP40 0,60% included 0,75% 0,89% included
GBP100,000 GBP40 0,55% included 0,62% 0,75% included
GBP200,000 GBP40 0,53% included 0,43% 0,64% included
GBP500,000 GBP40 0,51% included 0,32% 0,55% included
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. INVESTMENTS
Excluded investments:
• Medium Term Notes- require committee approval
• Commodities
• Options/derivatives
• Illiquid assets
• Certain jurisdictions
• US,Singapore and Hong Kong unit trusts