Smoothed bonus portfolios address a common investment behavioural problem that many investors, especially those in living annuities face. These investors are often risk-averse and without appropriate advice may end up too conservatively invested for their risk profile and investment horizon. This problem is aggravated when one needs to draw a regular income for the investment, as in the case of a living annuity.
The Smooth Growth Series consists of two portfolios, the Sanlam Smooth Growth Fund and the Sanlam Select Growth Fund.
The Sanlam Smooth Growth Fund is a single-managed, moderate-aggressive multi-asset class portfolio managed by Sanlam Investments’ Single-Manager.
The Sanlam Select 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
Suitable for investors who
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.
The role of smoothing in living annuities | Danie van Zyl
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