Old Mutual Absolute Smooth Growth Portfolio

14 February 2016

General Information

Status Open
Fund category: Life Fund, Bonus Funds
Management company: Old Mutual Life Fund
Asset Manager(s): Old Mutual Investment Group (SA)
Sector Insurance----Smoothed
Benchmark CPI
Launch Date 01 April 2008
Fund Value ZAR 76,000,000,000.00 as at 30 Sep 2015
Risk Rating
Low Risk  High Risk
Performance Target CPI plus 6% pa (gross of fees with the execption of a capital charge, over a rolling 3-year period)
Status is provided by the management company. This does not provide an indication of the availability of the fund within an Old Mutual product and may differ from the status of the fund within a product. The displayed risk rating may differ from the risk rating provided by the management company, where deemed appropriate.

Please note this fund is only available through Max Investments Retirement Annuity Wrapper only.


Fund Description

FUND OBJECTIVE
The Absolute Smooth Growth Portfolio targets inflation-beating returns over the long term (in excess of ten years), using smoothing to substantially reduce the market volatility experienced by investors.

WHO IS THE FUND FOR?
This fund is aimed at investors who seek a real return with reduced market volatility and a comprehensive guarantee on benefit payments. The fund is most suited to investors saving towards a specific goal over a period in excess of five years, such as retirement, a child’s education or a significant future purchase.

BONUS PHILOSOPHY AND SMOOTHING
The underlying investment of the fund is in line with that of an aggressive balanced fund. The returns earned on the underlying investments are smoothed and passed on to investors by way of bonuses declared monthly in advance.

This smoothing mechanism significantly reduces the short-term volatility associated with aggressive market-related investments. A Bonus Smoothing Reserve is maintained, which absorbs the impact of the peaks and troughs experienced in the market, while delivering real returns to investors in the long term.

GUARANTEE AND MARKET VALUE ADJUSTMENT
The Absolute Smooth Growth Portfolio offers a 50% guarantee on the net amount invested and bonuses earned in the fund. This guarantee applies to Defined Benefit Payments*, which include:

• Retirement Annuities, Preservation Funds and Living Annuities: retirement, death, disability and annuity income payments
• Investment Plans (LIFE): Payments on a Guaranteed Smoothed Value Date** and death.
* On Defined Benefit Payments the full Fund Value is available without adjustment.
** The Guaranteed Smoothed Value Date is set 5 years from the day of the first investment into the fund. On reaching the Guaranteed Smoothed Value Date a new Guaranteed Smoothed Value Date is set for 5 years into the future.

A Market Value Adjustment (MVA) is an adjustment applied to an investor’s smoothed value to reflect current market conditions when the value of the underlying investments is less than the smoothed value. An MVA can only be applied on withdrawals from the fund (including switches) that are not Defined Benefit Payments as set out above.

Guarantees are backed by Old Mutual shareholders’ capital.

Old Mutual reserves the right to remove the non-guaranteed element in poor markets by declaring a negative bonus.


Prices

Latest Buy Price: ZAR 316.80 10 Feb 2016
Latest Sell Price: ZAR 316.80 10 Feb 2016
Highest Sell Price: ZAR 316.80 10 Feb 2016

Prices are those of the tax-exempt fund class.


Price Performance


Daily Performance Figures as at 11 February 2016


Fund:
1 Year 3 Years 5 Years
12.78% 16.16% 14.86%
Fund performance results are calculated on the sell-to-sell fund performance of the tax-exempt fund class, net of asset management fees and including reinvested income. Figures are calculated on a lump sum investment basis in the currency of the fund and are annualised.


Month-End Performance Figures as at 31 January 2016


Fund:
Benchmark:
1 Year 3 Years 5 Years
13.18%
N/A
16.30%
N/A
14.89%
N/A
Fund performance results are calculated on the sell-to-sell fund performance of the tax-exempt fund class, net of asset management fees and including reinvested income. Figures are calculated on a lump sum investment basis in the currency of the fund and are annualised. Benchmark performance results include reinvested income and are gross of any deductions.


Asset Management Fees

Buy / Sell Spread Fee: N/A
Annual Fee: 0.95%
Performance Fee: N/A
Total Expense Ratio: 2.46


Fees are those of the tax-exempt class and include VAT. Fees are those levied when investing in the fund through an Old Mutual product and do not include product administration charges and adviser fees.


Asset Split as at 30 September 2015

Holding Name Percentage
Foreign Alternative Investment Strategies
3.00%
Foreign Bonds
1.00%
Foreign Equities
23.00%
Local Alternative Investment Strategies
6.00%
Local Bonds
17.00%
Local Equities
44.00%
Local Property
6.00%

Top Holdings as at 30 June 2008

Holding Name Sector Percentage
SASOL Chemicals 8.00%
MTN GROUP Mobile Telecommunications 7.80%
ANGLO Mining 7.20%
BHPBILL Mining 6.30%
IMPLATS Mining 5.60%
STANBANK Banks 4.00%
RICHEMONTX Personal Goods 4.00%
AMPLATS Mining 3.80%
OLDMUTUAL Life Insurance 3.60%
REMGRO General Industrials 3.40%

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