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Absolute Growth Portfolios

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 Absolute Growth Portfolio does exactly that. Experience the ups without all the sharp downs. The benefits of this portfolio include:

  • Enhanced investment growth – Approximately 80% of the portfolio, on a strategic long-term basis, is invested in "growth" assets and expertly managed by Old Mutual Investment Group (SA) and selected other asset managers.
  • Protection – the risk of short-term volatility is significantly reduced through the application of a smoothing philosophy. Retirement fund investors can also choose the desired level of capital guarantee for their specific fund profile.
  • Certainty of investment returns/outcome – Absolute Growth Portfolios target explicit, inflation-linked returns over rolling 3 year periods.
  • Absolute transparency – returns are formula-driven, linked to CPI targets and declared monthly in advance.

Overview of the Absolute Growth Portfolios

This video unpacks the key benefits and features of the full range of Absolute Growth Portfolios.

NB:You will need sound on your PC for video effectiveness.

  • Portfolio options

    There are three portfolio options for investors with different risk-return profiles:

    • Absolute Smoothed Growth –offers a 50% guarantee level on capital and a growth objective of CPI + 6.0%.
    • Absolute Stable Growth – offers an 80% guarantee level on capital and a growth objective of CPI + 5.5%.
    • Absolute Secure Growth – offers 100% guarantee level on capital and a growth objective of CPI + 3.5%.

    As at 01 April 2009 two new series for Absolute Growth Portfolios were made available. Absolute Growth Portfolios Transition Series (for Guaranteed Fund and Genesis clients who wish to transfer) and Absolute Growth Portfolios 2009 Series (for new business). It is important to note that bonus rates declared for each series may be different due to different reserve levels.

  • Key Features

    • Long-term return target of CPI+3.5%, CPI+5.5% or CPI+6% (depending on guarantee level selected).
    • An aggressive investment mandate that focuses on growth assets such as equity and property.
    • Provides investors with a chosen guarantee level on all capital and declared bonuses.
    • Distributes investment earnings by way of smoothed bonuses.
    • Bonuses are declared according to a pre-defined formula, making the bonus declaration process fully transparent.
    • An efficient, performance-related fee structure that aligns the interests of the client and the product provider (including negative performance fees for under-performance).

  • Value add to clients

    • Members can select the level of protection according to their risk/return appetite.
    • Monthly-in-advance bonuses make planning easier for trustees.
    • The fully transparent bonus declaration process allows clients to track how their money is working for them.
    • The performance-related fee structure ensures that clients’ expectations are being delivered on.

Performance-related information

Brochures and Fact Sheets

Disclosure and Governance

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