Old Mutual Unit Trusts Product Guide.

WHAT IS A UNIT TRUST?

A Unit Trust is an excellent way to accumulate wealth. It is a pool of savings by members. Old Mutual portfolio managers then invest the pooled funds in selected securities. Each receives units depending on the size and value of his/her investment. Returns on the Equity Fund Returns consist of an interest and a dividend portion and are credited half yearly in June and December. It is recommended that the income be reinvested into the fund so as to maximize investments returns through compounded growth.
Its initial fee is chargeable on a stepped basis as shown. Investment Amount Kshs. 50,000 - Kshs. 499,999 Kshs. 500,000 - Kshs. 999,999 Kshs. 1,000,000 - Kshs. 2,499,999 Kshs. 2,500,000 - Kshs. 4,999,999 Kshs. 5,000,000 - Kshs. 9,999,999 Kshs. 10,000,000 Initial Fee 5.25% 5.00% 4.75% 4.50% 4.25% 4.00%

WHY INVEST IN A UNIT TRUST

Pooled resources: This allows the fund managers to buy shares from a position of strength in a diversified portfolio. The Diversified Portfolio: Spreading your investment reduces the overall risk of the investment and maximizes returns. Professional Management: Old Mutual Asset managers manage all The Old Mutual unit trust funds. They are first class professional asset managers with a track record of research and excellent returns in the Kenyan market. Security: Unit Trust funds are statutorily entrusted to the Capital Markets Authority and controlled by the Collective Investment Schemes Regulations Act, aimed at protecting the investor. These regulations relate to the activities of the Unit Trust management companies. Convenience: Old Mutual Unit trusts are easy to buy and sell, and this can be done at any time. Asset allocation can also be changed i.e. you can switch from Equity-based fund to Money market fund or vice versa, as required. Flexibility and term of investment: You can invest for as long or as briefly as you like. There is no fixed investment period.

OLD MUTUAL BALANCED FUND

The Old Mutual balanced Fund provides investors with a single fund that combines both growth and income objectives by investing in shares for growth and interest bearing assets for income. This fund has an offshore element that contributes to the diversity of the fund. Risk profile: This is a medium risk fund with a risk rating of 3 (based on Old Mutuals rating scale of 1 - 5). Who should invest? This fund is suitable for the medium risk investor, who is seeking longterm growth through dividends and capital gains from the investments. It is aimed at investors looking for a mixture of safety, income, and capital appreciation. The recommended investment period is 3 to 5 years. Returns on the Balanced Fund Returns consist of an interest and a dividend portion and are credited quarterly. It is recommended that the income be reinvested into the fund so as to maximize investments returns through compounded growth.
Its initial fee is chargeable on a stepped basis as shown. Investment Amount Kshs. 50,000 - Kshs. 499,999 Kshs. 500,000 - Kshs. 999,999 Kshs. 1,000,000 - Kshs. 2,499,999 Kshs. 2,500,000 - Kshs. 4,999,999 Kshs. 5,000,000 - Kshs. 9,999,999 Kshs. 10,000,000 Initial Fee 4.50% 4.25% 4.00% 3.75% 3.50% 3.25%

OLD MUTUAL MONEY MARKET FUND

The fund manager invests the funds money in high quality interest bearing investments, fixed deposits, and near cash holdings in the Kenyan market. Risk Profile: This is a conservative risk fund with a risk rating of 1 (based on Old Mutuals rating scale of 1 - 5). The fund is exposed to limited risk due to the short term nature of the assets held in the portfolio, which substantially reduces the funds exposure to interest rate risk. Ideal during times of stock market turbulence Who Should Invest? Ideal for the low risk investor who would like to have a safe parking place for their funds. It is also a good investment for individuals who hold bank accounts, particularly saving accounts. Returns on the Money Market Fund: Interest is calculated on a daily basis, and credited to the clients account monthly. It is recommended that the income be reinvested into the fund so as to maximize investments returns through compounded growth.

TOBOA INVESTMENT PLAN

The Toboa investment plan is suited to investors who want to accumulate wealth in the Old Mutual Balanced Fund through regular payments of Kshs 1,000 every month. Risk profile: This is a medium risk fund with a risk rating of 3 (based on Old Mutuals rating scale of 1 - 5). Who should invest? It is aimed at investors looking for a mixture of safety, income, and capital appreciation. It is suited to investors who want to accumulate wealth over a specific period of time to meet a specific goal.

OLD MUTUAL EQUITY FUND

The Old Mutual Equity fund invests in professionally selected shares and stocks listed on the Nairobi Stock Exchange. This fund is suitable for the investor, who is seeking long-term growth through dividends and capital gains from the investments. Risk Profile: This is a high risk fund with a risk rating of 4 (based on Old Mutuals rating scale of 1 - 5). Who Should Invest? This fund is suitable for investors seeking superior returns over the medium to long term and who have a tolerance for fluctuations in capital value. The recommended investment period is 4 to 7 years

 Also ideal for individuals who hold bank accounts, particularly saving accounts. The recommended investment period is 3 to 5 years.
Its initial fee is chargeable on a stepped basis as shown. Investment Amount Kshs. 1,000 - Kshs. 49,999 Kshs. 50,000 - Kshs. 199,999 Kshs. 200,000 - Kshs. 499,999 Kshs. 500,000 - Kshs. 999,999 Kshs. 1,000,000 - Kshs. 2,499,999 Kshs. 2,500,000 - Kshs. 4,999,999 Kshs. 5,000,000 - Kshs. 9,999,999 Kshs. 10,000,000 Initial Fee 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25%

Who should invest? Suitable for investors with a medium-high risk profile looking for Regional opportunities with a mixture of safety, income, and capital appreciation. Ideal for investors environment. looking beyond the Kenyan investment

The recommended investment period is 3 to 5 years. Returns on the East Africa Fund Returns consist of an interest and a dividend portion and are credited half yearly in June and December. It is recommended that the income be reinvested into the fund so as to maximize investments returns through compounded growth.
Its initial fee is chargeable on a stepped basis as shown. Investment Amount Kshs. 50,000 - Kshs. 499,999 Kshs. 500,000 - Kshs. 999,999 Kshs. 1,000,000 - Kshs. 2,499,999 Kshs. 2,500,000 - Kshs. 4,999,999 Kshs. 5,000,000 - Kshs. 9,999,999 Kshs. 10,000,000 Initial Fee 4.50% 4.25% 4.00% 3.75% 3.50% 3.25%

OLD MUTUAL BOND FUND

The Old Mutual Bond Fund aims to achieve the best total returns possible from a well diversified portfolio invested in a whole range of bonds. The Fund offers a dynamically blended portfolio of fixed-income securities issued by the Kenyan government and corporations with some offshore element. Risk profile: This is a low to medium risk fund with a risk rating of 2 (based on Old Mutuals rating scale of 1 - 5). Who should invest? Suitable for a low to medium risk investor who is seeking a reasonable level of current income and a steady growth of capital. It is also a good investment for individuals who hold bank accounts, particularly saving accounts. Returns on the Bond Fund Returns consist of an interest portion and are credited quarterly. It is recommended that the income be reinvested into the fund so as to maximize investments returns through compounded growth.
Its initial fee is chargeable on a stepped basis as shown. Investment Amount Kshs. 50,000 - Kshs. 499,999 Kshs. 500,000 - Kshs. 999,999 Kshs. 1,000,000 - Kshs. 2,499,999 Kshs. 2,500,000 - Kshs. 4,999,999 Kshs. 5,000,000 - Kshs. 9,999,999 Kshs. 10,000,000 Initial Fee 2.00% 1.95% 1.90% 1.85% 1.80% 1.75%

RISK RATING
The risk rating used herein is based on Old Mutuals rating scale of 1 5, as follows; 1- low risk, 2-low to medium risk, 3 medium risk, 4 medium to high risk, 5 higher risk.

KEY BENEFITS
Free financial advice. You can top up your account at any point in time. No fixed investment period. Despite the recommended investment period an investor can withdraw at any time at the prevailing unit price. Our easy pay options allow you to top up your account via M-Pesa, Postapay, Check-off, Cheque or Direct debit according to your preference.

HOW TO INVEST
Application form: Fill out the Application form and attach all the documents as listed in the application form. Form available online. Minimum Investment Lump Sum varies depending on the fund as follows; Equity, Balanced, East Africa and Bond Funds at Kshs.50, 000 Money Market Fund at Kshs.1,000 and Toboa Investment Plan at Ksh 1,000 monthly. You can top up your account at any point in time through any of our easy pay options. Fund Charges: A service fee of 2% p.a. is applicable to all funds. Discounts: Amounts of Kshs 10,000,000 and above will have a discounted charge of 1.75% p.a. The discount is credited at the point of distributing income on each fund.

OLD MUTUAL EAST AFRICA FUND

The Old Mutual East Africa Fund invests in a diversified portfolio of East African equity, bond and money market instruments offering a balanced portfolio.. Risk profile: This is a medium to high risk fund with a risk rating of 3 (based on Old Mutuals rating scale of 1 - 5).

Please note the following: Past performance is not necessarily a guide to future investment performance. The value of units as well as the income there from may go down as well as up and in certain specified circumstances the right to redeem your units may be suspended. Contact us: We are located Upper-Hill, Corner of Hospital/Mara Road. P.O Box 30059,00100 Nairobi Tel: 254 020 2829800. Fax: 254 020 2722415 Email:omis@oldmutualkenya.com. Website: www.oldmutualkenya.com