FML November 2020 Newsletter

NEWSLETTER I VOLUME 1 ISSUE 04 I NOVEMBER 2020 Promoting Investment Growth & Guaranteeing Stability for Pension Funds First Mutual Funeral Services opens Bulawayo Branch Launch of First Mutual Eternal Life Plan

2 I First Mutual Life - Volume 1 Issue 04 : Financial Literacy Newsletter October 2020 PROMOTING Diversification - A key INVESTMENT GROWTH & Investment Strategy GUARANTEEING STABILITY FOR PENSION The key to achieving the above objectives is premised on FUNDS diversification of the Fund assets. A large portion of the portfolio is allocated to growth assets, such as equity and property. Due to Pension Funds by their nature are long-term investment vehicles its size, it has access to these assets which smaller portfolios which ultimately should provide meaningful retirement benefits. cannot afford. These assets are best suited to provide real return The driving force in meeting this challenge is dependent on where in the long term. Alternative investments (unlisted equities) also and what the assets are invested in. One of the key fiduciary form part of the assets mix, thus providing the much needed responsibilities of Trustees is the on-going review of the pension additional growth. The overall DA Fund investment strategy has fund’s investment strategy and an understanding of investment also considered country risk by having offshore linked markets, i.e. proactiveness rather than reactiveness. The First investments whilst taking cognisant of the need to comply with Mutual Deposit Administration Fund (DA Fund) is a key investment Prescribed Assets thresholds. component to consider. DA Fund Overview THE FIRST MUTUAL DEPOSIT ADMINISTRATION FUND The Fund offer investors an opportunity for competitive and inflation- beating returns in the long-term while protecting returns against the (DA FUND) IS A KEY INVESTMENT volatility associated with market-linked products. Therefore, the DA COMPONENT TO CONSIDER. Fund is ideal for investors seeking the following investment objectives; Reduction of volatility of their investment. Real returns in excess of inflation over the long term. Comprehensive guarantees on their benefit payments.

3 I First Mutual Life - Volume 1 Issue 04 : Financial Literacy Newsletter October 2020 Provision of Guarantees on Investments The DA Fund offers guarantees on capital, contributions and declared positive returns. Capital and contributions are fully protected, while partial guarantees apply to declared returns which are split into the vesting and deferred vesting bonus. These guarantees are backed by First Mutual’s shareholder capital. Smoothing Philosophy This is premised on reduction of the short-term movements It’s important to always of market returns by smoothing out the investment growth earned on its review and consider the underlying asset portfolio. Part of the investment returns are reserved following; and used to absorb the impact of market movements, while in the longer term delivering positive returns to investors Investment returns Is your Group Life Cover still in place? Is this the time to terminate your Group Life and disability The First Mutual Deposit Administration Fund has weathered the storm cover? over the years since dollarization. It posted a cumulative investment Should you not be increasing the Group Life Cover multiple? return of 1 986% from 2009 to 2019 versus inflation of 802% over the Is it possible to include the non-pensionable allowance as same period. As an update, we are pleased to advise that the DA Fund part of Group Life Assurance Cover? awarded a bonus of 250% for the period 01January 2020 to 30 June 2020. Is it possible to be on flat cover? This translates to an annualised return of 1 125%. What about cover during times of illness? The half year bonus declaration was necessitated by the need to pass on For further investment advice on the First Mutual Deposit value to policyholders in response to inflationary pressures. Please Administration Fund and answers to some of these questions contact us for further discussion on our other products where the DA Fund why don’t you get in touch with us on; Email: forms a key investment component. These include our First Mutual Preservation Fund and First Mutual Annuitants Fund for those proceeding [email protected] on retirement. [email protected] In conclusion, the advent of COVID-19 has brought its own challenges to the pension industry. We should not overlook the need to ensure that members of the pension are adequately covered for Group Life Assurance benefits. [email protected] [email protected] WE SHOULD NOT OVERLOOK THE NEED TO ENSURE THAT MEMBERS OF THE PENSION ARE ADEQUATELY COVERED FOR GROUP LIFE ASSURANCE BENEFITS.

CIRCULAR Number 08/2020 adrenalin 16617 ETERNAL LIFE PLAN FUNERAL SERVICES PRODUCT 30 October 2020 Dear Valued Client You spoke, we listened. Great News! First Mutual Life Assurance Company (Pvt) Ltd is excited to advise you, our valued customer of the official launch of our Funeral Services product, Eternal Life Plan with effect from 1 November 2020. The Eternal Life Plan is a funeral services product which provides services upon death of an insured person at affordable monthly premium rates from as a low as USD$1.30 or ZWL$149.00 per family made up of Principal member, Spouse and unlimited number of biological children under the age of 23. For more details on the product features, please find attached our brochure and contact our CRM Consultant, Mthulisi Ncube on +263 772 469 709 or your Account Manager, Moreblessing Maposa on +263 773 393 575 or your Agent on Econet Toll free line 08080071, WhatsApp numbers +263772187438/+263719703211 or email FMLIB@fiirstmutual.co.zw. We thank you for your custom and look forward to your continued support. For and on behalf of First Mutual Life Assurance Company (Pvt) Ltd M Wadyewata (Mrs) Individual Business Administration Executive FIRST MUTUAL LIFE, First Mutual Park, First Floor, 100 Borrowdale Road,Borrowdale, Harare, Zimbabwe. | P O Box 1083, Harare. Tel: +263 (242) 886018 - 34, 798 517 - 24, 250 420, 250 424 | E-mail: [email protected]

4 I First Mutual Life - Volume 1 Issue 06 : Financial Literacy Newsletter October 2020 Did you Money Market Gross Fund know? Minimum Initial Deposit of ZWL1,000 and monthly top up deposit of ZWL1,000 thereafter Bond Fund First Mutual Wealth (FMW) General Equity Fund Balanced Fund Money Market Fund First Mutual Wealth Growth Fund [email protected] or [email protected]

5 I First Mutual Life - Volume 1 Issue 07 : Financial Literacy Newsletter October 2020 DOWNLOAD THE FML MOBILE APP ON PLAY STORE TODAY Make online payments Add dependants Check policy Update personal detail Upgrade policy DOWNLOAD FROM THE PLAYSTORE TODAY

5 I First Mutual Life - Volume 1 Issue 08 : Financial Literacy Newsletter October 2020 OUR NEW WEBSITE IS LIVE! WE ARE EXCITED TO INTRODUCE YOU TO OUR BRAND NEW WEBSITE. Information on FMHL subsidiaries Loan calculator Live chat Investor information Claim procedures Contact centre

6 I First Mutual Life - Volume 1 Issue 09 : Financial Literacy Newsletter October 2020 TOLL FREE 08080071 FOR MORE INFORMATION Murerutsi Wendima - Umethuli Womthwalo