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.
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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
The role of smoothing in living annuities | Danie van Zyl
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