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How much of my money is guaranteed? 
 
 
Any contributions in the Smoothed Bonus Fund are guaranteed.
 
However, the Insurer’s bonus is declared monthly in advance and consists of two parts, namely:
• A vested bonus – this part of the bonus is guaranteed; and
• A non-vested bonus - this bonus may be reduced or removed by the Insurer in the case of very poor market conditions.

The monthly bonus is declared net of fees (capital charge and investment fees) and gross of the policy fee. The minimum monthly bonus net of fees is 0% (subject to no change in the tax dispensation that applies to retirement Funds) – currently you will only earn a negative return on this portfolio if MMI removes non-vested bonuses or, as discussed below, under certain circumstances if you switch out of the portfolio.

Your Vested Account 

This account is a record of the part of your money that is guaranteed, and consists of any retirement saving contributions and any money you transfer to this Portfolio from the Income Fund, Balanced Fund, or Shari'ah Fund.

The Vested Account is guaranteed never to be removed.

Your Non-Vested Account

The balance in this account may be removed by the Insurer under adverse market conditions and consists of the non-vested part of the bonus. Every 6 months, MMI may transfer part (currently up to 5% p.a.) of the balance in your non-vested account to your vested account.

When you exit the Fund (i.e. receive a benefit), you will receive the fund value (full balance in your vesting and non-vesting accounts).