Pay-on-delivery investing

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EVOLVE INVESTmENT rANGE

Pay-on-delivery

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EVOLVE INVESTMENT RANGE 1

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The upfront costs are on us, and once your investment earns more than the Target Return you’ll share in its

growth with us. Whether you are investing a lump sum for a rainy day or saving for your retirement, sharing

growth with Liberty means you’ll only pay to set up your investment once it has performed.

Picture a world where you only Pay

a comPany once they have delivered

Imagine striking oil first, before you have to buy the

mineral rights, or only paying your cell phone bill if

all your calls and SMSs go through without any

loss of signal.

In this world, you would only pay for an airline ticket once you and your luggage arrived safely and on time at

your destination.

what would investing look like in this world?

Your investment company wouldn’t make you pay upfront costs until they had first worked hard to earn a

healthy return for you.

So, there would be no initial deductions to pay your adviser’s fees, nor would you have to pay set-up costs.

Most importantly, if your investment didn’t perform in the first few years then you would never have to pay for

those upfront costs.

Stop imagining. it’s here!

At Liberty we strive to earn great returns for you. We value the trust you place in us and we’re rewarding that

trust with a promise:

For example, if you invest in the Evolve Investment Range and we do

not earn you the Target Return in any of the first three years of your

investment, then you will never be charged for any of the upfront

costs, including advice fees.

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60%

40%

Target Return

Gateway investment Plan portfolios

The Gateway offers you a way to invest your money into

a wide range of externally managed portfolios.

We give you the flexibility to choose portfolios that best suit your investment needs and risk appetite in one place.

easy access

When life happens, you can withdraw your money. No questions asked.

easy invest

Once you’ve set up your GateWay Investment Plan, investing more is as easy as paying the money to Liberty. You can also set up a debit order, from as little as R1 000 a month.

YOUR CHOICE OF PORtFOlIOs

A portion of your money will be invested in the Capped Tracker portfolio.

The Capped Tracker portfolio gives you the return on the ALSI 40 (including dividends), up to the Target Return.

Your investment in the Capped Tracker portfolio is a three-year commitment.

After three years, your investment in the Capped Tracker portfolio is automatically switched to the Top 40 Tracker and you will have access to this money.

CaPPEd tRaCkER

PORtFOlIO

taRgEt

REtURn

When you invest in the Evolve Investment Range you can choose to place either 60% or 40% of your money in the Capped Tracker portfolio. How much of your investment is invested in the Capped Tracker portfolio determines your Target Return. The less you choose to invest in the Capped Tracker, the lower your Target Return. A lower Target Return may see you sharing more of your growth on the ALSI 40 (including dividends) with Liberty.

evolve investment range portfolios

Choose from our:

trackers

Trackers are a low-cost investment tool, which allow you to track the return on the market exactly. Liberty offers equity, bond and cash trackers. We also offer trackers to suit your risk profile.

managed solutions

Liberty’s professional and experienced portfolio managers are here to help you manage your investment goals through a range of individually identified investments that best suit your investment needs.

YOUR InVEstMEnt

The remaining portion of your money will be invested in your choice of portfolios.

The Capped Tracker portfolio is an

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60%

40%

Your investment choices in the Evolve Investment Range work

together. We call it growth sharing:

• The growth on the Capped Tracker portfolio is yours up to the Target Return. • Above the Target Return, Liberty retains the growth on the

Capped Tracker portfolio.

• When 40% growth is reached, you again receive all growth.

all the growth on

your choice of portfolios

is yours.

at annual growth in excess of 40%, growth sharing falls away for that year and all other excess returns are yours.

Once you exceed the target Return, liberty retains Capped tracker growth.

You will receive annual growth in the first 3 years on your entire investment up to the target Return.

40% TARGET RETURN 0% G ROW TH

all growth on your choice of portfolios is yours. 40% 15% 0% G ROW TH

Target Return

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Scared of SharinG too much of the

Growth on the alSi 40 with liberty?

If the performance of the ALSI 40 (including dividends) exceeds 40% in a year, returns above

40% on the Capped Tracker portfolio are all yours.

hoPinG to recover from a droP in Share

PriceS?

If, at the end of the first or second year of your investment, the ALSI 40 (including dividends) has

fallen by 30% (or more) from the start of your investment then all further Growth Sharing stops.

our GuaranteeS are your Peace of mind

Our optional guarantees keep your original investment amount safe should markets go down.

While you still benefit from positive returns, you are protected against any loss over the

guarantee period. At the end of the guarantee period you will receive your original investment

(less withdrawals and any ongoing fees paid to your adviser) plus the positive growth on your

original investment. A guarantee charge is levied for this additional peace of mind.

now your choice iS SimPle

You can also let Liberty’s Multi-Manager choose between Investment Managers for you – and

it won’t be more expensive than making the choice yourself. You can find out more about the

portfolios available at www.liberty.co.za.

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what do i have to Pay for thiS?

MaIntEnanCE CHaRgEs

Any investment comes with maintenance charges. There are three main types of charges: the platform charge,

the portfolio charge and the ongoing advice fee. Each is levied as a percentage of your investment each year.

PlatFORM CHaRgE

Your investment

on day 1 You invest standard initialadvice fee*

the initial advice fee boost from

liberty* liberty then boosts your investment by Your Evolve Investment Range

Below R1 million 100% LESS 3.42% PLUS 3.42% 0% 100%

Between R1 million

and R2.5 million 100% LESS 3.42% PLUS 3.42% PLUS 1% 101% R2.5 million and

above 100% LESS 3.42% PLUS 3.42% PLUS 2% 102%

PORtFOlIO CHaRgE

- A portfolio charge is levied by the Investment Company.

OngOIng adVICE FEE

- You negotiate this fee with your financial adviser.

tHE EVOlVE InVEstMEnt RangE is for you IF: tHE EVOlVE InVEstMEnt RangE isn’T for you IF:

l You want to ensure all of your money performs from the start l You want to avoid upfront costs

l You want optional guarantees and competitive portfolios l You believe that you should only “pay” when we deliver returns

l You don’t want to risk the possibility that returns on the Capped

Tracker will substantially exceed the Target Return

l You don’t want to run the risk of incurring a Growth Sharing

deduction from your Capped Tracker for leaving within the first three years of your investment

The platform charge on Evolve Investment Range portfolios is 0.3% a year.

No VAT will be levied on this charge.

EVOlVE InVEstMEnt RangE PORtFOlIOs gatEWaY InVEstMEnt Plan PORtFOlIOs

The platform charge on the GateWay Investment Plan portfolios is based on all the money invested in Evolve and the GateWay portfolios. This means the more that’s invested the less you’ll pay. Any amount in the money market portfolio will count towards your total assets but we will not charge you a platform charge on these amounts

Between R1 million and R3 million 0.35% a year on all of your _{investment in the GateWay} More than R3 million 0.25% a year on all of your _{investment in the GateWay} Less than R1 million 0.50% a year on all of your _{investment in the GateWay}

your evolve and Gateway assets the platform charge you’ll pay (excluding vat)

WE bElIEVE tHat CHaRgEs and FEEs MattER

The Evolve Investment Range takes no upfront deductions off your initial lump sum investment. We guarantee

that at least 100% of your initial lump sum investment will be invested at standard initial advice fees. Liberty

always pays the standard initial advice fee on your behalf and, if your adviser chooses to take less than the

standard initial advice fee, then the balance is yours.

REWaRdIng YOU FOR InVEstIng MORE

As you invest more in your Evolve Investment Range we’ll give your investment an additional boost:

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choice 1

When you invest in the Evolve Investment Range, you have a choice of the following

products:

* The Target Return will vary from time to time and by product. At the time of going to print the Target Return is 14% or 9% per annum (depending on Capped Tracker selected) for retirement products and 13% or 8% per annum (depending on Capped Tracker selected) for investment products. The Target Return that is applicable to your investment will be reflected on your investment proposal and once set will not change.

oPtional

+

Gateway

investment Plan

Gateway

investment Plan

Gateway

investment Plan

evolve

investment Plan*

evolve retirement

annuity*

evolve Pension/Provident

fund Preserver*

evo

lve

in

ve

st

m

en

t

ra

ng

e

or

evolve

investment

Plan

evolve

retirement

annuity

evolve

Pension/

Provident

fund

Preserver

Gateway

investment

Plan

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evolve inveStment Plan

How long should i invest for?

You should invest in the Capped Tracker portfolio for three years.

How much do i need to invest?

You have two options:

l A minimum lump sum of R150 000 on day 1 or,

l A minimum of R100 000 as a lump sum on day 1 with

regular contributions of no less than R500 per month (with no minimum period the regular contributions are required to be invested for).

You can also make once off additional lump sum contributions of R10 000 or more.

How often can i invest?

You won’t be able to invest more than 1.2 times the larger of the total investment made in either of the previous two years. Each additional lump sum must also be R10 000 or more. For example if your initial investment was R1 000 000 you would only be able to invest an additional R1 200 000 in the following year (1.2 times the original amount) which would make your total lump sum invested R2 200 000.

How can i take my money?

l You can take your money through a part withdrawal and one

further full withdrawal in the first five years (up to the legally allowed amount).

l If you take the money invested in the Capped Tracker

portfolio in the first three years, a Growth Sharing Deduction applies. This deduction is the market value of the Growth Sharing we expect when you take your money.

Can i use this investment as collateral?

Yes you can. You are able to use your whole investment as collateral and give it to the person or institution as a financial commitment. Please note that whoever becomes the collateral owner of the investment will need to approve all future transactions.

Can i transfer ownership of my investment?

Yes, you can, however not during Growth Sharing.

Absolute cessions are not allowed during Growth Sharing due to the potential change in the Target Return Percentage and it may have tax consequences.

What happens to my investment when i die?

If you chose an Investment Plan with a death benefit, the investment will pass directly to the nominated beneficiaries if the last person nominated as an assured life dies. Liberty guarantees that on the passing of the last assured life, your beneficiaries will never receive less than what was invested on day 1 (less advances, withdrawals and advice fees after 5 years). If you chose an investment plan without a death benefit, the investment will form part of your estate (if you are an individual and the owner). The executor of your estate will determine what to do with the investment. The investment value will be paid (less any Growth Sharing Deduction).

What tax do i need to pay?

l Liberty pays the tax for you if you are the original owner.

l For individual investors and trusts with only natural person

beneficiaries: 30% on income + 10% on capital gains.

l For corporate and other trusts: 28% on income + 18.67% on

capital gains.

This is based on the Income Tax Act and may be subject to change.

Can i cancel the investment?

Yes, you can. Please note that because of changes in the investment market, you may receive less than what you invested on day 1. Depending on when you withdraw your investment, you may also need to pay a Growth Sharing Deduction.

Can i phase in my investment?

No, you can’t. Your upfront investment is invested in your choice of portfolios on day 1.

What type of investor can invest in the Evolve investment Plan?

l Individuals

l Companies

l Trusts

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evolve retirement annuity

What is the minimum i can contribute?

You have two options:

l A minimum lump sum of R150 000 on day 1 or,

l A minimum of R100 000 as a lump sum on day 1 with

regular contributions of no less than R350 per month (with no minimum period the regular contributions are required to be invested for).

You can also make a once off additional lump sum contribution of R10 000 or more.

How often can i contribute?

You can contribute to your investment as often as you’d like. There are no limits to the amount you can invest as long as they are above the minimums above.

When you retire:

l You may retire from the age of 55, or;

l Before age 55 if you can prove to the Trustees of the Fund

that you suffer from ill health.

l You can also take your money if you emigrate before age 55.

If you retire or transfer within three years of taking this investment, then a Growth Sharing Deduction will apply to your investment.

What happens when i retire?

You can choose to take up to one-third of your money as a lump sum. This will be taxed. The remaining money must be used to buy an income for life. To find out more speak to your adviser or broker about Liberty’s annuity options.

Can i use my Evolve retirement Annuity as collateral?

No, you can’t.

Can i transfer ownership?

No, you can’t.

What happens to my money should i pass away?

Your retirement benefits do not fall into your estate.

The trustees of the Fund have a legal duty to ensure that your dependants receive all or a portion of your retirement benefit. Liberty guarantees that on your passing, the amount paid will never be less than what was invested on day 1 (less any legislative withdrawals and ongoing advice fees).

What tax is paid?

l The contributions you make may be tax deductible.

l The income and capital gains are not taxable.

l Dividend withholding tax does not apply.

No, you can’t. You can, however, transfer your retirement annuity to another registered retirement fund. If you decide to transfer your investment, you may receive less than what you invested on day 1. This is due to changes in the investment market and a possible Growth Sharing Deduction, depending on when you decide to transfer your investment.

Can i phase in?

Who can take out an Evolve retirement Annuity?

Individuals

When you invest money with the Evolve Retirement Annuity, you become a member of the

Lifestyle Retirement Annuity Fund, a registered and approved retirement annuity fund.

Although the Fund buys the Evolve Retirement Annuity on your behalf and provides you with

retirement benefits when you retire, you will still have the freedom to choose which portfolios

you want the Fund to invest in for you.

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evolve Provident/PenSion

fund PreServer

What is the minimum i can contribute?

You will need at least R150 000 on day 1.

How often can i contribute?

You can invest more in the Fund Preserver as long as the money comes from the same pension fund or provident fund.

When you retire:

l You may retire from the age of 55, or;

l Before age 55 if you can prove to the Trustees of the Fund

that you suffer from ill health.

l You can also take all or a portion as your one allowable

withdrawal before age 55 subject to tax.

If you retire, withdraw or transfer within three years of taking this investment, then a Growth Sharing Deduction will apply to your investment.

What happens when i retire?

Provident Fund Preserver:

Currently you can choose to take all of your money as a lump sum less any tax or as an income for life, or a combination of these two options. From March 2016, this will change to be the same as the Pension Fund Preserver for any new investments made after this date. Any investments made prior to this date will not be affected.

Pension Fund Preserver:

You can choose to take up to one-third of your money as a lump sum less any tax. The remaining money must be used to provide you with an income for life.

No, you can’t.

What happens to my investment should i pass away?

Your retirement benefits do not fall into your estate.

The trustees of the Fund have a legal duty to ensure that your dependants receive all or a portion of the benefit. Liberty guarantees that on your passing, the amount paid will never be less than what was invested on day 1 (less any legislative withdrawals and ongoing advice fees).

What tax should be paid?

l There is no tax on transfer from your existing provident or

pension fund to the Fund Preserver

l The income and capital gains are not taxable.

l Dividend withholding tax does not apply.

No, but you can take all or a portion of your one allowable withdrawal before age 55, subject to the withdrawal tax tables. You will also be able transfer to another provider. If you decide to transfer your investment, you may receive less than what you invested on day 1. This is due to changes in the investment market and a possible Growth Sharing Deduction, depending on when you decide to transfer your investment.

Can i phase in?

Who can take out an Evolve Provident/Pension fund Preserver? Individuals

If you want to preserve the money you’ve saved through your employer provident or pension

fund when you leave your employer, you can transfer that money to the Lifestyle Retirement

Preserver Provident or Pension Plan. If you do, you will become a member of that Fund. This

transfer will be done on a tax free basis. Although the Fund buys the Evolve Provident/Pension

Fund Preserver on your behalf and allows you to preserve your retirement benefits, you will still

have the freedom to choose the portfolios you want the Fund to invest in for you.

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Gateway inveStment Plan

How long should i invest for?

There is no minimum amount of time that you have to remain invested in this product.

How much do i need to invest?

You can set up a debit order for the GateWay Investment Plan or invest a lump sum. The minimum debit order is R1000 a month and an initial lump sum from as little as R50 000.

How often can i invest?

You can invest as often as you’d like. There are no limits to the amount you can invest as long as it is more than R1000 for additional lump sums and regular debit orders.

You can take your money at any time.

Can i use this investment as collateral?

Yes you can. You are able to use your whole investment as collateral and give it to the person or institution as a financial commitment. Please note that whoever becomes the owner of the investment will need to approve all future transactions.

Yes, you can. This may have a tax consequence.

What happens to my investment when i die?

The investment will form part of your estate. The executor of your estate will determine what to do with the investment. There is no minimum amount that will be paid out.

What tax do i need to pay?

l You pay the tax yourself. Every year, Liberty will send

you the relevant tax certificate – one for income (IT3 b certificate), and one for capital gains (IT3 c certificate).

l We withhold dividend withholding tax received from South

African companies or foreign companies listed on the JSE.

Yes, you can. Please note that because of changes in the investment market, you may receive less than what you invested on day 1.

Can i phase in my investment?

Yes, you can choose to phase in your lump sum investments over a period of 3 to 12 months. If you do, we will first invest your money in the STANLIB Money Market Fund before we invest it in your choice of portfolios.

What type of investor can invest in the Gateway investment Plan?

l Individuals

l Companies

l Trusts

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Name of location

cr

oss colours 17815 / Evolve

For more information please contact your Liberty financial adviser or broker, contact our call centre on 0860 327 327 or visit www.liberty.co.za Information provided in this leaflet is correct at time of going to print. (October 2014)

Liberty Group Limited

Registration number 57/02788/08 1 Ameshoff Street, Braamfontein PO Box 10499, Johannesburg 2000 Disclaimer The information contained in this document does not constitute advice by Liberty. Any legal, technical or product information contained in this document is subject to change from time to time. If there are any discrepancies between this document and the contractual terms or, where applicable, any fund rules, the latter will prevail. Past performance cannot be relied on as an indication of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by inflation levels in the economy and prevailing market conditions. Any recommendations made must take into consideration your specific needs and unique circumstances. The Evolve Investment Range set of products is underwritten by Liberty Group Limited, an authorised financial services provider (no. 2409) except the GateWay Investment Plan which is administered by Liberty Linked Investment Platform (Pty) Ltd, an authorised administrative financial services provider (no. 44551) © Liberty Group Ltd 2014. All rights reserved.