Fairbairn Capital | Old Mutual

Absolute Smooth Growth Portfolio

(Only available on Investment Frontiers Retirement Capital Portfolio and Retirement Income Portfolio)

Old Mutual’s Absolute Smooth Growth Portfolio (ASGP) aims to achieve the ultimate goal in investing – that of providing superior long term returns through exposure to growth assets while still offering stability over time. Many funds attempt to achieve this through a variety of strategies, yet the smoothing mechanism has proven itself over the long term – as shown by Old Mutual’s 41 year market-leading track record of managing smooth portfolios.

The ASGP takes smoothing to the next level with a unique formula-driven bonus approach and monthly-in-advance bonus declarations, providing increased certainty for investors.

The ASGP has been one of the fastest-growing funds in South Africa since its launch in mid-2007 with an expected R30 billion in assets under management by the end of 2008. The fund is now available to individual investors for the first time.

Rolling 3-year market returns, Absolute Smooth Growth returns and inflation

Growth Objective

The ASGP targets returns of 6% p.a. in excess of inflation over rolling 3-year periods*, while significantly reducing the volatility associated with equivalent marketlinked investments.

_{*Net of guarantee charges}

Investment Strategy

The investments underlying the ASGP are broadly similar to balanced market-related portfolios, incorporating a high allocation to growth assets such as equities, property and alternative assets. This means that, over the medium- to long-term, returns are expected to compare favourably with similarly constructed market-related investment portfolios.

Smoothing Philosophy

The Absolute Smooth Growth Portfolio ensures that exposure to the volatility of the underlying investments is significantly reduced, while long-term growth comparable to a similarly managed marketlinked portfolio is earned. The enhanced smoothing approach absorbs the impact of the peaks and troughs experienced with investing in the market, while it is expected to deliver real returns to investors in the medium to long term.