Old Mutual Unit Trusts will be implementing a Low Balance Charge after receiving approval from the Financial Sector Conduct Authority (FSCA).
To facilitate the implementation of the Low Balance Charge, we will be introducing a Prescribed Minimum Balance requirement of R10 000 per fund, per investment contract. Changes thereto will be stipulated on the funds’ Minimum Disclosure Document (MDD) from time to time.
These terms will apply with effect from 31 March 2025.
WHAT IS A LOW BALANCE CHARGE AND HOW WILL IT BE IMPLEMENTED?
A Low Balance Charge is a monthly charge that applies to a client’s investment in each underlying fund held within an investment contract, where the investment in the underlying fund is below the Prescribed Minimum Balance requirement.
From 31 March 2025, you should maintain the Prescribed Minimum Balance in each underlying fund within your investment contract. If you do not maintain the Prescribed Minimum Balance in any such fund, you will incur a Low Balance Charge.
Where there is an existing monthly debit order of a minimum of R500 into each underlying fund within your investment contract, the Low Balance Charge will not apply, even if the investment in such fund is below the Prescribed Minimum Balance for that fund.
The Low Balance Charge will be R30 per month excluding VAT with effect from 31 March 2025. This charge will increase with inflation on an annual basis and will be specified on each fund’s MDD.
HOW CAN YOU AVOID INCURRING A LOW BALANCE CHARGE?
- Top-up your investment to a minimum of R10 000 per fund, per investment contract or implement a monthly debit order of minimum R500 per fund, per investment contract. You can do this via the online investment tool on our secure client website.
- Consolidate your investment contracts to ensure your investment per fund, per investment contract, satisfies the Prescribed Minimum Balance of R10 000. You can do this by switching your money from one investment contract to another via the intracontract switching process.
- Consolidate investments held within a single investment contract by switching to a single underlying investment fund to ensure that your investment is above the Prescribed Minimum Balance of R10 000 per fund, per investment contract. You can do this via the secure client website through the online switching tool.
- Disinvest the full proceeds of the investment contract into your bank account. The online disinvestment tool can facilitate this process.
HOW CAN I ACCESS MY LATEST INVESTMENT INFORMATION?
- Visit our Digital Solutions page for the options available to you to easily access your investment information.
- Login to the Wealth & Unit Trusts Secure Services Website.
- If you have not yet registered, click here to follow the easy user guide.
ADVICE
Should you be impacted by the implementation of the Low Balance Charge, we recommend that you discuss the options available to you with a financial planner or contact the service centre as detailed below.
CONTACT US
Should you require further information or assistance in accessing the Old Mutual Wealth & Unit Trusts Secure Client Website, please contact your financial planner. Alternatively, send an email to unittrusts@oldmutual.com or call us at 0860 234 234 or +27 21 503 1770.
Thank you for choosing to invest with us and trusting us with your financial goals.