Retirement Planning

If you are an Investment Horizons or Flexi client you will have the opportunity to switch into any investment fund available on the Max Investments platform - after transfer.

All the "open" investment funds in Investment Horizons are also available on the Max Investments platform. So, there will be no change to the investment fund on transfer unless you require it. Investment funds that are currently "closed" in Investment Horizons will not be available on the Max Investments platform on or after transfer.

The investment funds available in Flexi will not be made available on transfer to the Max Investments platform (as these funds do not exist on the Max Investments platform). The fund value in the Flexi policies will be transferred to a similar investment fund on the Max Investments platform as shown below.

The mapped funds for transfer from Flexi are:

Flexi investment portfolio/ fund		Mapped investment fund on the Max Investments platform
Stable		Secured Money Market
Smoothed Bonus		Smoothed Performance
Performance Profits Balanced		Optimised Balanced (no guarantee)
Performance Profits Equity		Optimised Growth
Performance Profits Select		Optimised Balanced (no guarantee)
World Wide Balanced		World Balanced
World Wide Equity		World Equity Fund
Other funds		Not allowed for transfer

Guarantees

• The guarantee(s) offered on the transferred policy may be different on the Max Investments platform than would have been the case if you had not transferred.
• A guarantee value will only apply if the investment performance is such that the guarantee value exceeds the fund value.
• Of the above funds on the Max Investments platform, only the Secured Money Market Fund and Smoothed Performance Fund have guarantees.
• Since Investment Horizons and Max Investments offer the same funds (except for the Stabilised Investment Fund), any guarantee rules will continue to apply at the fund level and will not be affected by the transfer. Switches from the Stabilised Investment Fund to the Smoothed Performance (or any other fund) will lose the guarantee on the fund switched out of and adopt the guarantee rules of the fund that is switched into.
• If your current Flexi or Investment Horizons plan does not have a guarantee and you switch to another investment fund that does then the normal guarantee rules of the fund will apply.
• An annuity rate guarantee may exist on FlexiPension products with a start date before 31 May 1997. This guarantee does not exist on the Max Investments platform. This means that at retirement, you will not be able to exercise the guarantee on annuity rates that may currently exist on the policy.

Switches

Switches into any fund offered on the Max Investments platform currently do not have any buy-sell spreads/switching fees. There will therefore currently be no buy-sell spreads/switching fees on transfer to the Max Investments platform.

Choosing the appropriate investment portfolio can often be a daunting experience. Please remember that neither the SARAF Trustees nor Old Mutual’s Client Services personnel are licensed to provide financial advice. We therefore strongly recommend that you discuss investment decisions with your financial adviser or broker.