FINANCE: Sanlam To Ovation's Rescue
Recent Western Cape Business News
Cape Town: The administration of Ovation Global Investment Services’ living annuities will be transferred to Sanlam subsidiary, Glacier Financial Solutions from the end of July 2010 on the request of underwriters Metropolitan Life. The initiative comes after Ovation was placed under curatorship in March 2007 following financial mismanagement and is aimed at ensuring that Ovation clients have high quality administrative support in future.
In addition, Metropolitan will honour payment of close to R70 million to compensate those clients who were affected by the mismanagement of the Common Cents funds that ultimately led to the curatorship.
Phillip Matlakala, chief executive of Metropolitan Retail, says that securing the best possible future for Ovation living annuity clients had been a key priority. “We selected Glacier for a number of reasons. Firstly, Glacier is part of Sanlam, one of the largest life insurance groups in South Africa with an exceptionally high level of commitment to corporate governance and best practice, offering our Ovation clients complete security. Secondly, Glacier is the largest linked investment service provider in SA, offering the widest investment choice. We believe it will deliver exceptional investment value to Ovation policyholders.”
Anton Raath, chief executive of Glacier, says that the initiative will bring additional clients to Glacier with a book value of approximately R1.2 billion. “Metropolitan Life will remain the underwriter of the annuities and we will create a new living annuity product in order to administer the annuities under Metropolitan Life’s license.”
He says that Glacier’s products and services are designed to assist clients to create and preserve wealth throughout their lifetime. “Living annuity investors will benefit from the transaction because they will gain access to all the unit trust funds available on the Glacier platform. With the assistance of their intermediaries they will be able to switch and rebalance their portfolios and have access to the full range of web-based services. Every effort will be made to ensure a smooth transition for these clients.”
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