Capital Growth

Old Mutual Capital Growth offers guaranteed downside protection, combined with targeted investment growth in excess of inflation.

The Fund operates along the same principles as most absolute return funds and targets long-term growth of CPI plus 4% per annum (net of fees, gross of tax) over rolling three-year periods.

The difference is that unlike most absolute return funds, Capital Growth explicitly guarantees that investors will not lose money over pre-defined quarterly investment periods.

Functionality

Combines the approach of an absolute return fund with the protection of an explicit capital guarantee.
Provides institutional investors with a real or absolute return (in excess of inflation) over the longer term.
Exposure to active and dynamic asset management.
100% Capital guarantee, increasing quarterly if returns are positive and locking in any investment growth achieved.

Key Features

The growth objective of the portfolio is to deliver absolute returns of CPI+4% p.a. (net of fees, gross of tax) over rolling three-year periods.
100% capital guarantees (net of fees, gross of tax) that may increase each defined quarter, but will never decrease below the quarterly guaranteed minimum value.
Active asset management by multi-award winning boutiques in the Old Mutual Investment Group (SA).
Daily unit pricing (net of fees, gross of tax).
Old Mutual Capital Growth's quarterly investment dates are 1 December, 1 March, 1 June and 1 September each year.
An innovative investment strategy mainly concentrating on large capitalisation local equities.
An ideal fee structure with a base management fee of only 0.6% per annum and a quarterly performance fee - aligning the interests of investors and the asset manager.

Value add to clients

Institutional investors have access to an investment vehicle that offers guaranteed downside protection, combined with targeted investment growth in excess of inflation.
High levels of liquidity with investors able to disinvest their full holding at the end of each pre-defined quarter. Limited liquidity is also available during each quarter to meet cash flow needs.
Total transparency and full disclosure.

Suitable for

Any retirement fund or medical aid fund that requires capital protection and positive real returns.
Retirement funds with a low-risk core holding or those that want to avoid the volatility of fully market-linked investments.
Retirement funds that offer individual member choice.
Retirement fund members nearing retirement age.
Investors with a medium-term investment horizon (i.e. surplus money, liquidations, Section 14 transfers, restructuring).