Questions & Answers

It stands for the Principles and Practices of Financial Management. It is a document that all long-term insurers managing discretionary participation business are required to publish and make available to policyholders in terms of the Financial Services Board Directive 147.A.

The PPFM describes two things:

• The principles that Old Mutual uses in exercising the discretion it has in managing its discretionary participation business, e.g. in the declaration of bonuses. These principles should not change very often.
• The practices that Old Mutual has put in place to ensure that the management of its discretionary participation business is done in accordance with the high level principles it has set. These may change from time to time.

Discretionary participation business is essentially business where policyholders participate in the returns earned, and where the insurer has discretion in some key areas that affect policy benefits, such as how the assets backing the policies are invested, how bonuses are declared and how termination values are calculated. Most typically, discretionary participation business includes smoothed bonus-type business.

No, Old Mutual has always managed its discretionary participation business according to sound principles and with consideration of the interests of policyholders. These principles were formalised internally in 1993, and again at Old Mutual's demutualisation in 1999. The PPFM is consistent with these previously agreed principles and practices.

In the interest of greater transparency and of good governance, which Old Mutual supports, the Financial Services Board has made it a requirement that all insurance companies writing discretionary participation business need to publish a document detailing the principles and practices that are applied in the management of this business.

No. The PPFM does not in any way add to or amend any aspect of your contract with Old Mutual. It is simply an explanation of principles and practices that are applied in the management of your funds in order to aid you in your investment decision-making and understanding.

Old Mutual always considers the interests of policyholders when exercising its discretion. The practices that ensure this are detailed in the PPFM. The details in the PPFM are intended to provide greater information to customers making investment decisions, and are fully in accordance with the requirements of the various elements of regulation governing our business.

If a Retail client is not happy with any specific practice relating to their policy, they are able to raise this with Old Mutual via the normal complaints process detailed in their new business policy quotation or contract.

If a Corporate client is not happy with any specific practice relating to their policy, they are able to raise this with Old Mutual using any of the contact details provided here.

If you are an Old Mutual Retail client and require additional information, you can access the full PPFM document as well as summaries thereof. Alternatively, you can direct any questions to your Financial Adviser or Broker.

If you are an Old Mutual Corporate client and require additional information, you can access the full PPFM document as well as summaries thereof. Alternatively, you can direct any questions to your Old Mutual Consultant or Broker, or contact us using any of the contact details provided here.

Yes. All companies writing discretionary participation business are required to publish their Principles and Practices of Financial Management by 1 January 2008.

One of the purposes of the PPFM document is to highlight the various practices in place that ensure that Old Mutual upholds the principle of considering the interests of policyholders at all times. This has always been a cornerstone of Old Mutual’s principles and practices of financial management.

The requirement to publish a PPFM document only became effective on 1 January 2008. Companies were previously not required to publish this document. It is not an addition or amendment to your policy contract, but merely a description of existing principles and practices that Old Mutual applies in the management of its discretionary participation business.

If the PPFM document changes, Old Mutual will publish an updated version on the website.

All business invested in any of the following funds is covered by the PPFM.

Max Investments:

• Smoothed Performance Fund
• Secured Money Market Fund

Max Income:

• Investment Funded Income plan – Smoothed Performance Fund
• Investment Funded Income plan – Secured Money Market Fund
• Income for Life with Bonus Escalation Option

Investment Frontiers:

• Smoothed Performance Fund
• Secured Money Market Fund
• Smoothed Fund
• Stabilised Investment Fund
• EB Guaranteed Fund

Galaxy:

• CoreGrowth Fund
• EB Guaranteed Fund

Investment Horizons:

• Smoothed Performance Fund
• Secured Money Market Fund
• Stabilised Investment Fund

Essential Savings:

• Smoothed Growth Fund

Nedbank 10:

• All business

Greenlight Savings Benefit:

• Smoothed Performance Fund
• Secured Money Market Fund

Flexi:

• Smoothed Bonus Fund & Smoothed Bonus Plus Fund

• Performance Profits business:

  • Balanced Fund & Balanced Plus Fund
  • Equity Fund & Equity Plus Fund
  • Top 40 Index
  • World Wide Equity Fund
  • World Wide Balanced Fund
  • Select Fund
  • Stable Fund & Stable Plus Fund
  • Standard Bank Growth Fund
  • Standard Bank Balanced Fund
  • Standard Bank Defensive Fund

Conventional:

• Reversionary Bonus

• Performance Profits business:

  • Balanced Portfolio
  • Equity Portfolio
  • Property Portfolio
  • Stable Fund

Guaranteed Capital Fund:

• All business

All products invested in the Group Schemes Savings or the Group Schemes GrowPlan portfolios are covered by the PPFM.

These products include:

• Savings Portfolio
  • Investment Plan
  • Short Term Investment Plan
  • Single Premium Investment Plan
  • Education Plan
  • Education Care Plan
  • Money Care Plan
  • Short Term Money Care Plan
  • Retirement Plan
• GrowPlan Portfolio
  • GrowPlan Money Value
  • GrowPlan Real Value

All business invested in any of the following funds is covered by the PPFM.

Pre-Retirement Investments – Smoothed Bonus and Absolute Growth Funds including:

• The Guaranteed Fund
• Genesis Gross
• Genesis Net
• CoreGrowth 100, 95 and 90
• Multi-Managed Smoothed Bonus 100, 95 and 90
• CPI Guaranteed
• Absolute Smooth Growth
• Absolute Stable Growth
• Absolute Secure Growth

Post-Retirement Investments – With-Profit Annuity Funds including:

• Pensions Optiplus (including Pensions Plus)
• Platinum Pension
• Platinum Pension 2003
• Platinum Pension Multi-Manager (IS & SYmmETRY)