INTRODUCING THE OLD MUTUAL INTERNATIONAL INVESTMENT

PORTFOLIO FROM OLD MUTUAL ISLE OF MAN

Rakesh JhunjhunwalaPreeminent Indian value investor

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.

INVESTMENT PORTFOLIOPEDIGREE

INVESTMENTACCOUNTSINGAPORE

COLLECTIVEREDEMPTIONBONDU.K.

EXECUTIVEINVESTMENTBONDHONG KONG

COLLECTIVEINVESTMENTBOND U.K.

EXECUTIVEINVESTMENTACCOUNTSINGAPORE

EXECUTIVEREDEMPTIONBONDWORLDWIDE

EXECUTIVEINVESTMENTPORTFOLIOLATIN AMERICA

EUROPEANEXECUTIVEINVESTMENTBOND)

EXECUTIVEINVESTMENTBONDWORLDWIDE

SPANISHCOLLECTIVEINVESTMENTBOND

INVESTMENTPORTFOLIOSOUTHAFRICA

INVESTMENT PORTFOLIOPEDIGREE

£600,000,000STRUCTUREDPRODUCTS

303,000TRADES43,000POLICIES

No.1£800,000,000EQUITIES

£1,500,000,000

CASH10,000‘OTHER’ ASSETS

£100,000,000FIXED INCOME BONDS

20%+

15,000COLLECTIVESAPE£130,000,000

1000+ ASSET REVIEWS

98%34,80

0ADMIN QUERIES

£10,0

00,0

00,0

00 A

UM

OPTION TOCONSOLIDATE

EXISTING ASSETS

BENEFITS

ADMINISTRATIONCONVENIENCE

TAXEFFICIENCY WIDE ASSET

CHOICE

CURRENCY CHOICE

TAXBENEFITS

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.

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%

ADMINISTRATIONBENEFITS

• 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

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.

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.

OMIOM CHARGES

Assets Under Management(Linked Plans)

£100,000 - £199,999£200,000 - £349,999£350,000 - £499,999£500,000 - £999,999

£ 1, 000,000 +

0% INITIAL FEE

Annual Charge(Deducted Quarterly)

0.60%0.50%0.45%0.40%0.35%

CHARGES – INITIAL COMMISSION FLEXIBILITY

OPTION 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% per annum•Outstanding establishment charges recouped on full surrender

CHARGES – INITIAL COMMISSION FLEXIBILITY

OPTION 20-3% initial “advice fee” available.Allocation 97%-100%

No establishment charges to recoup on surrender

CHARGES – OTHER COSTS

Annual Investment review fee•Up to 1.14% or equivalent monetary amountDiscretionary 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

OFFSHORE STOCKBROKERS (CUSTODIANS)

STOCKBROKER CHARGES-EXECUTION ONLY

INVESTMENT PORTFOLIO FEE GUIDELINE

Trade sizeCollins Stewart Credo Fairbairn Hargreave Hale Savoy Investec

Equities

GBP10,000 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 Charge p.a 0,15%-0,25% 0,20%

0,15%-0,25% uk shares zero

GBP30/stock GBP35

       GBP100/ Foreign share    

STOCKBROKER CHARGES-DISCRETIONARY MANAGEMENT FEES

Portfolio SizeCollins Stewart Credo Fairbairn

Hargreave Hale Savoy Investec

GBP100,000 1,5% 1,25% Minimum 0,5% 1,5% 1,5%

GBP200,000 1,5% 1,25%GBP500,000 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 Charge included 0,075% included included

GBP30/stock included

STOCKBROKER CHARGES-DISCRETIONARY DEALING CHARGES

Trade sizeCollins Stewart Credo Fairbairn

Hargreave 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

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)

INVESTMENTS

Excluded investments:• Medium Term Notes- require committee approval• Commodities• Options/derivatives• Illiquid assets• Certain jurisdictions• US,Singapore and Hong Kong unit trusts

SUPPORT

• Client Brochure• Adviser brochure• Offshore specialists

Like investments,blending spices is part

art, part science.Getting it right for

your personal palateis what counts.