Principles and
practicesThe principles we follow when dealing
with your investments

What is the PPFM?

Principles and Practices of Financial Management (PPFM) is a document that all long-term insurers managing discretionary participation business are required to publish and make available to policyholders.
PPFM for Retail Customers

Retail customers that are clients invested in:

  • Max Investments
  • Investment Frontiers and Horizons
  • Essential Savings
  • Group Schemes products
Two businessmen walkingPPFM for Corporate Customers

Below you will find documents describing the principles and practices applicable to the various Corporate products. A single document covers the groupings of products indicated.

Corporate smoothed bonus and Absolute Growth Portfolios
  • Absolute Smooth Growth
  • Absolute Stable Growth
  • Absolute Secure Growth
  • CoreGrowth 100 and 90
  • Guaranteed Fund
  • Genesis Gross and Net
  • Bonus Escalating Annuity Targeting Portfolio
Corporate smoothed bonus and Absolute Growth PortfoliosCorporate with Profit Annuity Funds
  • Pensions Optiplus (including Pensions Plus)
  • Platinum Pension
  • Platinum Pension 2003
  • Platinum Multi-Manager (AFI and OMMM)
Corporate with Profit Annuity FundsPPFM Explanatory Guides

Explanatory Guides cover the most important information contained in Old Mutual’s official Principles and Practices of Financial Management (PPFM) of Discretionary Participation Business.

PPFM Explanatory GuidesImportant additional documentsThere are a few additional important documents that you might want to read.Discretionary participation business covered by PPFMBonus accrual periodsInvestment objectives and mandatesCapital chargesClasses of discretionary participation businessFrequently Asked Questions

If you have a query regarding the Principles and Practices of Financial Management, you can speak to your Old Mutual financial adviser or broker.

    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

    The PPFM does not alter the contractual rights and obligations which Old Mutual or its customers have under policies which Old Mutual has issued or acquired. Should there be any conflict between the PPFM and the policy contract, the policy contract will prevail.

    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 via this email corporateinvestments@oldmutual.com

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