Smooth bonus
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Protection-focused solutions

Smoothed bonus portfolios

Protect your investments from short-term volatility with smoothed returns and capital protection.

Our smoothed bonus portfolios reduce the volatility of investment returns that are inherent in market exposure. This is done through regular bonus declarations, which are designed to provide a smoother return over time. These portfolios offer capital protection and are appropriate for members approaching retirement, members whose employment is vulnerable to economic changes, as well as risk-averse members.

Explore our portfolio options

Our smoothed bonus portfolios

  1. Suitable for investors who
    • Want to reduce the volatility of their investment, especially as they approach retirement, without giving up the upside potential of their returns.

    • Want comprehensive guarantees on their benefit payments on retirement, resignation, retrenchment, disability or death.

    What the fund aims to achieve and how
    • Provides investment protection against short-term volatility while providing full guarantees on benefit payments.

    • Smoothes investment returns.

    • Bonuses are fully guaranteed and declared monthly in advance. Bonuses cannot be negative.

    More information

    Product brochure Download Fund Factsheet

  2. Suitable for investors who
    • Want to reduce the volatility of their investment, especially as they approach retirement, without giving up the upside potential of their returns.

    • Are willing to have only a portion of their bonus guaranteed to pursue possible higher returns. Bonuses consist of a guaranteed and non-guaranteed portion.

    What the fund aims to achieve and how
    • Protects investors against short-term volatility while providing partial guarantees on benefit payments.

    • Smoothes investment returns.

    • Bonuses consist of a vesting and non-vesting portion, and are declared monthly in advance. Bonuses cannot be negative.

    More information Product brochure Download Fund Factsheet

  3. Suitable for investors who
    • See economic empowerment as a national priority.

    • Want to reduce the volatility of their investment, especially as they approach retirement, without giving up the upside potential of their returns.

    • Are willing to have only a portion of their bonus guaranteed to pursue possible higher returns. Bonuses consist of a guaranteed and non-guaranteed portion.

    What the fund aims to achieve and how
    • Stable monthly bonuses

    • Market-related performance

    • Guarantees on benefit payments (resignation, retirement, retrenchment, disability and death)

    • Peace of mind irrespective of market conditions

    • Protects investors against short-term volatility while providing partial guarantees on benefit payments

    • Smoothes investment returns

    • Bonuses consist of a vesting and non-vesting portion, and are declared monthly in advance

    More information Product brochure Download Fund Factsheet

  4. Suitable for investors who
    • Want to reduce the volatility of their investment, especially as they approach retirement.

    • Are close to retirement and want to avoid the volatility of a fully market-linked investment.

    • Do not want a market value adjustment to reduce the value of their investment if they terminate or switch due to a non-benefit event.

    What the fund aims to achieve and how
    • Provides capital preservation and stable non-negative investment returns to risk-averse members with exposure to Sanlam’s Inflation Linked Fund.

    • Bonuses are fully guaranteed and declared monthly in advance. Bonuses cannot be negative.

    More information Product brochure Download Fund Factsheet

  5. The Smooth Growth Series consists of two portfolios: the Sanlam Smooth Growth Fund and the Sanlam Multi-Managed Smooth Growth Fund.

    The Sanlam Smooth Growth Fund is a single-managed, moderate-aggressive multi-asset class portfolio, managed by Sanlam Investments’ Active Manager.

    The Sanlam Multi-Managed Smooth Growth Fund is a multi-managed, moderate-aggressive balanced fund of funds, managed by Sanlam Investments’ Multi-Manager.

    The smoothing provided by these portfolios reduces the volatility of the investment, giving risk averse members the capacity to invest more in growth assets such as equities and property.

    Available for the following product categories
    • Living annuities

    • Retirement annuity funds

    • Retail preservation funds

    • Retirement funds

    Suitable for investors who
    • Want high exposure to growth assets but with reduced short-term volatility in their retirement income portfolios.

    • Aim for investment returns of CPI + 4.5% over the longer term.

    • Understand that with the monthly bonus formula they will have less market volatility than similar multi-asset class portfolios, but in the event of severe market conditions their bonuses may at times be zero or negative.

    What the fund aims to achieve and how

    The objective of the fund is to provide stable long-term capital growth. This is achieved by smoothing volatile investment returns while declaring monthly bonuses.

    More information

    Sanlam Smooth Growth Product Brochure Fund Factsheet

    Sanlam Multi-Managed Smooth Growth Fund Product Brochure Fund Factsheet

Downloads
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Responsible investment
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Sanlam Investments is committed to ensuring long-term sustainability for current and future generations through our responsible investing practices. The integration of ESG metrics into our investment processes ensures that we live up to our values, demonstrates good corporate citizenship, and when applied consistently over the long term, will enable sustainable, risk-adjusted returns for our clients.Our Smoothed Bonus Portfolios Responsible Investment Report below provides insights into how Sanlam Corporate Investments integrates responsible investment into our smoothed bonus portfolios.

Market Value Adjustment
What is a Market Value Adjustment and how does Sanlam use this to ensure fairness between clients terminating their investment and those remaining in the smoothed bonus portfolios?

Product summary
Provides a market overview and fund-specific information about our guaranteed investment portfolios.

Sanlam Bonus Portfolios quarterly report
Provides information about the performance of our funds.

Monthly Bonus Survey (gross of fees)
Provides information about the performance of our funds.

Monthly Bonus Survey (net of fees)
Provides information about the performance of our funds.

Funding levels
Provides information about the guaranteed investment portfolios' current funding levels.

Everything you need to know about smoothed bonus products
Provides information on the important things one should know about smoothed bonus products.

Disclosure and Governance Report
Provides information about the product features, benefit and fee philosophy, investment management and governance of the Monthly Bonus Fund and the Stable Bonus Portfolio.

Principles and Practices of Financial Management (PPFM)
Provides detailed information about how we manage our discretionary participation funds.

Resources

Useful smoothed bonus information

The role of smoothing in living annuities with Danie van Zyl

Get in touch
Email: SCInvestments@sanlam.co.za
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