1. WHAT IS AN IDEAL Living Annuity Investment?
Celebrating 170 years of enabling dreams

2. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
WHAT WOULD BE THE IDEAL CHARACTERISTICS OF A LIVING ANNUITY INVESTMENT?
Strong long term performance
Client needs to fund an income for a potentially very long period
Client would like to leave assets as part of estate
Client wants competitive returns versus alternatives
No negative months
Avoids having to make monthly withdrawals from reduced asset value
Reduces urge to switch to conservative investments
Easier conversations between planner and client
Liquid
Client needs to make regular withdrawals to fund income
Liquidity for income should not come at a cost
Managed by trusted company
This is client’s life savings and must sustain them for the rest of their life

3. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
IS THERE A SOLUTION THAT MEETS THESE CHARACTERISTICS?
OLD MUTUAL
SMOOTHED FUNDS
OLD MUTUAL ABSOLUTE SMOOTH GROWTH PORTFOLIO
OLD MUTUAL ABSOLUTE STABLE GROWTH PORTFOLIO
CORE GROWTH LIFE FUND

4. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
Favourite non-Old Mutual Living Annuity Investments on Old Mutual Wealth
Fund Name *
Fund Category
Coronation Balanced Plus
SA MA High Equity
Foord Balanced
Allan Gray Balanced
NGI Stable (Nov 2007)
SA MA Low Equity
Prudential Inflation Plus
Coronation Balanced Defensive
Investec Opportunity
Allan Gray Stable
Coronation Capital Plus
SA MA Medium Equity
Coronation Strategic Income
SA MA Income
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

5. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
Favourite non-Old Mutual Living Annuity Investments on Old Mutual Wealth
Fund Name *
Fund Category
Coronation Balanced Plus
SA MA High Equity
Foord Balanced
Allan Gray Balanced
NGI Stable (Nov 2007)
SA MA Low Equity
Prudential Inflation Plus
Coronation Balanced Defensive
Investec Opportunity
Allan Gray Stable
Coronation Capital Plus
SA MA Medium Equity
Coronation Strategic Income
SA MA Income
OM Absolute Growth Smooth
Life Fund
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

6. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
WHAT WOULD BE THE IDEAL CHARACTERISTICS OF A LIVING ANNUITY INVESTMENT?
Strong long term performance
Client needs to fund an income for a potentially very long period
Client would like to leave assets as part of estate
Client wants competitive returns versus alternatives
No negative months
Avoids having to make monthly withdrawals from reduced asset value
Reduces urge to switch to conservative investments
Easier conversations between planner and client
Liquid
Client needs to make regular withdrawals to fund income
Liquidity for income should not come at a cost
Managed by trusted company
This is client’s life savings and must sustain them for the rest of their life

7. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
STRONG LONG TERM PERFORMANCE
Fund Name *
1 Yr
3 Yr
5 Yr
10 Yr
or since inception *
High Equity Fund 1
7.1%
7.0%
12.1%
10.7%
High Equity Fund 2
6.8%
6.5%
10.8%
9.9%
High Equity Fund 3
5.9%
8.3%
12.5%
Low Equity Fund 1 (Nov 2007)
6.0%
6.7%
9.0%
9.6%*
Low Equity Fund 2
7.4%
10.2%
Low Equity Fund 3
7.2%
9.6%
10.3%
High Equity Fund 4
6.2%
7.8%
9.5%
Low Equity Fund 4
8.1%
8.9%
10.0%
Medium Equity Fund
5.7%
9.1%
9.2%
Income Fund
8.6%
8.4%
8.2%
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

8. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
STRONG LONG TERM PERFORMANCE
Fund Name *
1 Yr
3 Yr
5 Yr
10 Yr
or since inception *
High Equity Fund 1
7.1%
7.0%
12.1%
10.7%
High Equity Fund 2
6.8%
6.5%
10.8%
9.9%
High Equity Fund 3
5.9%
8.3%
12.5%
Low Equity Fund 1 (Nov 2007)
6.0%
6.7%
9.0%
9.6%*
Low Equity Fund 2
7.4%
10.2%
Low Equity Fund 3
7.2%
9.6%
10.3%
High Equity Fund 4
6.2%
7.8%
9.5%
Low Equity Fund 4
8.1%
8.9%
10.0%
Medium Equity Fund
5.7%
9.1%
9.2%
Income Fund
8.6%
8.4%
8.2%
OM Absolute Growth Smooth (Apr 2008)
6.3%
10.1%
13.2%
11.0%*
Inflation + 5%
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

9. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
Aggressive asset allocation for long-term growth, including alternative assets
Local Assets
Global Assets
Growth Assets over long term
83%
Characteristics:
Real returns over long term
Volatile

10. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
ALTERNATIVE INVESTMENTS – WHY DO YOU NEED THEM?
Great diversifier from more conventional asset classes
Returns less correlated to stock market performance
Provide a more stable return pattern than equities
Access different sources of return
Not available in normal unit trusts

11. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
WHAT WOULD BE THE IDEAL CHARACTERISTICS OF A LIVING ANNUITY INVESTMENT?
Strong long term performance
Client needs to fund an income for a potentially very long period
Client would like to leave assets as part of estate
Client wants competitive returns versus alternatives
No negative months
Avoids having to make monthly withdrawals from reduced asset value
Reduces urge to switch to conservative investments
Easier conversations between planner and client
Liquid
Client needs to make regular withdrawals to fund income
Liquidity for income should not come at a cost
Managed by trusted company
This is client’s life savings and must sustain them for the rest of their life

12. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
Traditionally you had to choose between high returns or stable returns
Fund Name *
Volatility
Max Drawdown
# Neg Months
High Equity Fund 1
9.3%
-20.3% 38
High Equity Fund 2
8.6%
-19.0% 39
High Equity Fund 3
7.4%
-10.2% 35
Low Equity Fund 1 (Nov 2007)
4.6%
-4.4% 23
Low Equity Fund 2
5.8%
-8.6% 34
Low Equity Fund 3
4.2%
-2.6% 25
High Equity Fund 4
7.5%
-18.2%
Low Equity Fund 4
4.4%
-3.3% 32
Medium Equity Fund
6.2%
-8.4% 36
Income Fund
1.8%
-0.8% 9
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

13. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
STRONG LONG-TERM PERFORMANCE AND LOW RISK
Fund Name *
Volatility
Max Drawdown
# Neg Months
High Equity Fund 1
9.3%
-20.3% 38
High Equity Fund 2
8.6%
-19.0% 39
High Equity Fund 3
7.4%
-10.2% 35
Low Equity Fund 1 (Nov 2007)
4.6%
-4.4% 23
Low Equity Fund 2
5.8%
-8.6% 34
Low Equity Fund 3
4.2%
-2.6% 25
High Equity Fund 4
7.5%
-18.2%
Low Equity Fund 4
4.4%
-3.3% 32
Medium Equity Fund
6.2%
-8.4% 36
Income Fund
1.8%
-0.8% 9
OM Absolute Growth Smooth (Apr 2008)
2.1%
0%* 0*
*Negative returns are possible on Absolute Growth portfolios.
Top funds (by AUM) used by planners for Living Annuity clients. 10 years or since inception monthly returns used to end Sep 2017.
Source: Fund factsheets, Profile Media Fund Analytics for UT funds. AGP Smooth factsheet..

14. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
HOW SMOOTHING WORKS
*Negative returns are possible on Absolute Growth portfolios.

15. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
Bonus Smoothing Reserve History
BSR Range
2012
2013
2014
2015
2016
2017
Mar
Jun
Sep
Dec
> 20%
15% to 20%
10% to 15%
5% to 10%
0% to 5%
-5% to 0%
-10% to -5%
-15% to -10%
< -15%
Absolute Growth Portfolio
Long Term Expected Average

16. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
WHAT WOULD BE THE IDEAL CHARACTERISTICS OF A LIVING ANNUITY INVESTMENT?
Strong long term performance
Client needs to fund an income for a potentially very long period
Client would like to leave assets as part of estate
Client wants competitive returns versus alternatives
No negative months
Avoids having to make monthly withdrawals from reduced asset value
Reduces urge to switch to conservative investments
Easier conversations between planner and client
Liquid
Client needs to make regular withdrawals to fund income
Liquidity for income should not come at a cost
Managed by trusted company
This is client’s life savings and must sustain them for the rest of their life

17. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
FULL LIQUIDITY FOR DEFINED BENEFIT PAYMENTS
Defined benefit payments will always pay the full fund value
Defined benefit payments include:
Retirement (including ill-health retirement)
Annuity Income Payments
Death
Disability
A market value adjustment (MVA) may be applied to voluntary disinvestments
MVA might be applied if the Bonus Smoothing Reserve is negative.
MVAs are only expected during extreme market downturns.
MVAs do not impact those who leave due to defined benefit events.
MVAs are applied to protect the investors who remain in the fund.

18. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
WHAT WOULD BE THE IDEAL CHARACTERISTICS OF A LIVING ANNUITY INVESTMENT?
Strong long term performance
Client needs to fund an income for a potentially very long period
Client would like to leave assets as part of estate
Client wants competitive returns versus alternatives
No negative months
Avoids having to make monthly withdrawals from reduced asset value
Reduces urge to switch to conservative investments
Easier conversations between planner and client
Liquid
Client needs to make regular withdrawals to fund income
Liquidity for income should not come at a cost
Managed by trusted company
This is client’s life savings and must sustain them for the rest of their life

19. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
OLD MUTUAL IS THE CLEAR LEADER IN SMOOTHING IN SA
and has been for 50 years
30 June 2017
Absolute Growth
68.2%
of SA market
Absolute Growth
R113.1bn
as at June 2017
Old Mutual
75.9%
of SA market

20. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
OUR CAPITAL STRENGTH MEANS YOUR INVESTMENT IS SECURE
Capital Strength
R’bn
Dec 2016
Net Assets
570.0
Liabilities
524.0
Surplus
46.0
Statutory Capital Requirement
14.3
Statutory Capital Cover
3.2x

21. ALSO AN IDEAL PRE-RETIReMENT INVESTMENT
Reduces uncertainty without reducing returns
The Power of Compound Interest
Investment Amount
Year 1
Year 2
Year 3
Year 4
Year 5
Total
5 years from 2007
5 years from 2009
5 years from 2007
5 years from 2009
5 years from 2007
5 years from 2009
Utopia
R100,000.00
12% R
Aggressive
R100,000.00
-2%
-21%
20%
14% 8% R
Aggressive
R100,000.00
20%
14% 8%
19%
22% R
AGP Smooth
R100,000.00
24% 3% 4% 9%
10% R
AGP Smooth
R100,000.00 4% 9%
10%
17%
19% R
Conservative
R100,000.00
-2.7%
-8.9%
12.3%
11.3%
8.8% R
Conservative
R100,000.00
12.3%
11.3%
8.8%
18.6%
18.1% R
No smoothing – can be a lot more or a lot less than expected
With Smoothing= more predictable outcome

22. WHAT IS AN IDEAL LIVING ANNUITY INVESTMENT?
THE SMOOTHED OPTIONS ON OM WEALTH
Fund Name
Capital Guarantee
Capital Charge
Fund Fee
Target Return
(after fund fees)
Absolute Growth Portfolio Smooth
50%
0.2%
0.95%
CPI + 4%-5%
Absolute Growth Portfolio Stable
80%
0.7%
CoreGrowth Life Fund
100%
1.8%
0.50%
CPI + 2%-3%
Find the funds under the TARGET FUNDS category on Old Mutual Wealth fund list

23. ANY DOUBTS?
To offer your clients the OM Smoothed Bonus range of funds, speak to your OM consultant or contact me at