25 Years of only positive returns with Old Mutual's Smoothed funds
There are more than one million Old Mutual customers invested in our range of retail Smoothed funds - and they're all smiling!
These days investing can be quite nerve wracking. It's great when investments start to grow but you never know what's going to happen next. Wouldn't it be great to have a smoother ride? Old Mutual's expertly managed range of Smoothed funds do exactly that - experience the ups without all the sharp downs.
Even in these turbulent times, our Smoothed Bonus Fund has delivered positive returns for over a million investors, consistently, for 25 years.
Old Mutual Smoothed fund declarations for 2009
For 2009, Old Mutual declared a total bonus of 7.2% for investors in the retirement portfolio of its Flexi Smoothed Bonus Fund (net of investment fund charges).
The returns enjoyed over the last 3 years by retirement fund investors in the Smoothed Bonus Fund of 9.8% p.a. have been 4.8% p.a. better than the returns of the average fund within the most comparable market-linked fund category, and over 1.5% p.a. above inflation.
In fact the Smoothed Bonus Fund has now seen its 25th consecutive year of positive declarations. And with returns since inception averaging over 5% p.a. more than inflation, there can be little doubt that this fund has helped many investors in building their investment value without incurring undue risk in the process.
Why invest in a Smoothed fund?
Smoothed funds are designed to smooth out fluctuations in the market returns of the underlying assets, namely equity, property, fixed interest instruments and alternative investments. Smoothed bonus funds offer an attractive combination - targeting steady inflation-beating growth and also providing varying levels of capital protection.
Smoothed funds remain probably the most efficient and well-proven strategy to achieve the ultimate goal of all investors - good risk-adjusted returns. Put another way, they allow investors to benefit from the upside potential of exposure to growth assets such as equities and property, but with significantly lower risk (or volatility of returns) than that normally associated with investing in these asset classes.
Who should invest in a Smoothed fund?
- Investors looking for long-term, inflation-beating returns without the volatility of a typical market-related fund.
- Individuals looking for investment peace of mind through capital guarantees and our smoothing mechanism.
Why is the reduced volatility of returns that Smoothed funds provide important?
Behavioural finance experts tell us that one of the biggest contributors to investors not achieving their investment goals is the influence of emotions on their decision-making.
Smoothed funds, together with an advice partner, help to overcome the influence of emotions and keep you focused on your long-term objectives by reducing the volatility normally associated with investment in growth assets such as equities and property.
Smoothed Bonus Funds Declaration