Moonstone Investment Rates Report

Updated: 06-March-2023 Valid until: 10-March-2023

This information is supplied as part of our commitment to support and strengthen independent financial advisors. The information contained below is part of our growing product research offering.

In order to understand the difference between guaranteed (G) and linked (L) rates, kindly click here for a detailed explanation.

Secured Investment Rates
(Commission at 3% plus VAT - 3.45)
Comparison of secured investment rates (Investment for five year period)

Institution Nature of Security CAR Ratio Notes Secured Return % Return on investment Secured Return* % Return on investment*

1Life L 8 R 140 255.17 7.000% R1 406 488.53 7.060%

Assupol (secured) G 1.94 8; 11 R 136 232.12 6.379% R1 390 273.47 6.812%

Old Mutual Wealth G 3 8 R 132 452.44 5.782% R1 369 843.61 6.496%

Discovery G 3.5 8 R 132 295.88 5.757% R1 357 442.99 6.303%

Momentum G 2.6 8 R 130 741.00 5.510% R1 354 615.00 6.260%

NEDgroup LIFE* L 8 R 129 707.94 5.340% R1 316 277.65 5.650%

Clientele life* G 2.43 8 R 130 510.28 5.470% R1 311 301.65 5.570%

(Commission at 1.5% plus VAT - 1.725)
Comparison of secured investment rates (Investment for five year period)

Institution Nature of Security CAR Ratio Notes Secured Return % Return on investment Secured Return* % Return on investment*

1Life L 8 R 142 696.97 7.370% R1 430 295.39 7.420%

Assupol (secured) G 1.94 8; 11 R 138 163.93 6.679% R1 412 344.40 7.149%

Old Mutual Wealth G 3 8 R 134 854.46 6.163% R1 394 399.72 6.875%

Momentum G 2.6 8 R 133 660.00 5.970% R1 383 808.00 6.710%

Discovery* G 3.5 8 R 134 796.62 6.154% R1 382 450.38 6.692%

Clientele life* G 2.43 8 R 132 502.20 5.790% R1 331 296.35 5.890%

A linked policy is defined in the long term Insurance Act of 1998 as: "...a long-term policy of which the amount of the policy benefit is not guaranteed by the long-term insurer and is to be determined solely by reference to the value of particular assets or categories of assets which are specified in the policy and are actually held by or on behalf of the insurer specifically for the purposes of the policy."
A company's Capital Adequacy Ratio (CAR) is the actuarially determined excess of assets over liabilities. The CAR provides a buffer against experience worse than that assumed in the financial soundness valuation.
* Capital Gains Tax has been taken in account on the quoted rates of return at the current tax rates for individuals. However if the tax rate for CGT changes the additional tax will be recovered from the returns of the investment (contact institution for details)
Initial investment is R 100,000.
* Initial investment is R 1 million.
Funds received before or on the 15th of a month will have an entry date of the first of that month. Funds received after this will have an entry date of the first of the following month. The impact on the values quoted on these pages should be born in mind when comparing data.
VAT on commission has been taken in account for, Discovery, ABSA, Clientèle Life, Momentum, and Assupol.
Capital Gains Tax has been taken in account on the quoted rates of return at the current tax rates for individuals. Any change in the tax rate for CGT will not affect the returns of the investment (contact institution for details)
" Clientèle Life 's Guaranteed Growth Plan Initial Capital and Interest rate is guaranteed back to the beneficiary when they elect to surrender the policy at death at any given time during the five years.
The full maturity value is payable on death (excluding pre-existing conditions - please see the Discovery Invest Fact File for details)
The returns for the Guaranteed-return Single-premium Policy may change during the week. Please refer to Assupol Life for their latest rates.

Compulsory Annuity
Not underwritten

Comparison of monthly annuity income (R500000 compulsory, monthly paid in arrears)

Institution Escalating 10yrs Certain &
Thereafter* (C&T) Single Life* 10 C&T Joint & Survivor**
10 C&T

Assupol Life (rewired) R 3 969.70 -         -

Assupol (annuity) R 3 406.07 R 4 894.38 R 4 532.79

Metropolitan* R 3 368.61 R 4 844.20 R 4 415.91

Momentum R 3 359.83 R 4 846.26 R 4 472.41

Old Mutual R 3 289.76 R 4 759.55 R 4 371.01

Discovery R 3 256.24 R 4 701.30 R 4 380.53

* Male 60 alb (DOB 01/01/1962)
Male and female 60 alb
0% Tax deducted
Escalation at 5% per Annum
Metropolitan Life Annuities: contact your financial adviser or your nearest Metropolitan branch. Alternatively, contact our call centre on 0860 724 724.

Funds received before or on the 15th of a month will have an entry date of the first of that month. Funds received after this will have an entry date of the first of the following month. This will impact on the values quoted on these pages, and should be born in mind when comparing data.

Voluntary Annuity
Comparison of monthly annuity income (R100000 Voluntary, 5 year term certain)**

Institution Gross Income Taxable Portion Tax Free Portion Taxable Percentage

Absa* R 1 980.38 R 313.71 R 1 666.67 15.841%

Momentum R 1 961.41 R 294.74 R 1 666.67 15.027%

Metropolitan* R 1 879.58 R 212.91 R 1 666.67 11.328%

Old Mutual R 1 856.80 R 190.13 R 1 666.67 10.240%

Annuity with Capital Secured
(Commission at 3% plus VAT - 3.45)
Comparison of monthly annuity income on income plans with capital secured.
(Investment amounts R100 000 and R1 000 000)

Institution NatureSecurity CAR Ratio Notes Gross annuity income
(R100 000) Taxable portion
(R100 000) Gross annuity income
(R1 000 000) Taxable portion
(R1 000 000)

Assupol (annuity) G 1.94 5 -         -         R 5 588.34 R 548.22

Discovery* G 3.5 5 R 464.76 R 32.14 R 5 137.64 R 645.18

Momentum G 2.6 5 -         -         R 5 063.42 R 716.98

Clientele life* G 2.43 5 R 459.06 R 58.59 R 4 669.84 R 605.39

NEDgroup LIFE* L 5 R 429.43 R 31.02 R 4 532.34 R 354.40

(Commission at 1.5% plus VAT - 1.725)
Comparison of monthly annuity income on income plans with capital secured.
(Investment amounts R100 000 and R1 000 000)

Institution NatureSecurity CAR Ratio Notes Gross annuity income
(R100 000) Taxable portion
(R100 000) Gross annuity income
(R1 000 000) Taxable portion
(R1 000 000)

Assupol (annuity) G 1.94 5 -         -         R 5 790.44 R 580.20

Momentum G 2.6 5 -         -         R 5 414.90 R 809.53

Discovery* G 3.5 5 R 490.89 R 36.35 R 5 395.33 R 686.65

Clientele life* G 2.43 5 R 480.43 R 63.91 R 4 883.35 R 659.24

A linked policy is defined in the long term Insurance Act of 1998 as: "...a long-term policy of which the amount of the policy benefit is not guaranteed by the long-term insurer and is to be determined solely by reference to the value of particular assets or categories of assets which are specified in the policy and are actually held by or on behalf of the insurer specifically for the purposes of the policy."
Income is guaranteed/secured for a five-year term after which the capital is guaranteed back to the investor.
* Investor should not have to pay capital gains tax (contact institution for details)
Nedgroup Life pay monthly in advance as opposed to other institutions that pay monthly in arrears.
VAT on commission has been taken in account for Nedgroup Life, ABSA, Momentum, and Assupol.
The full maturity value of the endowment policy is payable on death (excluding pre-existing conditions please see the Discovery Invest Fact File for details)
Clientèle Life's Guaranteed Income - Annuity with Capital Guarantee: VAT is taken into account on the plan and the value will not change for Vat-payable brokers or non VAT-paying brokers. The initial capital amount is guaranteed back to the beneficiary when they elect to surrender the policy at death at any given time during the five years at a different quotation.

Annuity codes

Institute Annuity code

Metropolitan Metquote Codes : A2256 7D1DC D1E7F 901E3

Metropolitan Metquote Codes : 5D702 E6A49 B492A 202E6

Metropolitan Metquote Codes : BC922 BA852 178C2 6039B

Momentum Db : DB-DCFEC-GBIDH-CLBCM-HDDBC-IHFDB-CDBCD

Momentum Ann: A-CHCUIU3-S4EZO46-4GCBRGY

Momentum Guar : G-AXDUAP4-W4FEQID-4XFB7PR

Old Mutual Max Income : 55JRFJ665T66ZZZYYYHJHJJHX36K9NHJ4WC

Old Mutual Bond: PPUUUUUUUUUUUUUUUUUUUUC6UUUUUUUUYED

Old Mutual Ann : QRPNT W4SPA 76DKQ T6YQC

All the information in the tables was generated from official quotation packages supplied by the different companies.
The percentage return for the guaranteed investment plans was determined by expressing the maturity benefit as a percentage of the initial investment amount and may differ from the percentages calculated on the official quotation packages.
Although great care is taken to ensure accuracy, Moonstone Information Refinery (Pty) Ltd. cannot accept responsibility for any errors and advisors are urged to verify any actual quotation to clients with an official quotation from the financial institution.
This information is copyrighted by Moonstone Information Refinery (Pty) Ltd. and may not be duplicated without written permission.
For further information or comments please contact us at info@MoonstoneInfo.com or visit our website https://www.moonstone.co.za.