Edition: February/April 2018
OLD MUTUAL CORPORATE
OLD MUTUAL CELEBRATES 50 YEARS OF SMOOTH RETURNS FOR INVESTORS
If there�s one characteristic of all stock markets that has the ability to strike fear into the heart of even the most seasoned investor, it has to be volatility. Which is why the ability of Old Mutual Smoothed Bonus Funds to smooth out such market volatility has been music to investors� ears for the past 50 years.
The ups and downs of market performance can tempt even the most disciplined investor to want to ‘fi ddle’ with their investment - whether in an effort to protect it from losing value during market underperformance, or to maximise its growth when markets are doing well. However, as any investment professional will tell you, chasing short-term returns or protection is arguably the worst possible thing you can do to your investment.
Fortunately for investors in Old Mutual’s range of Smoothed Bonus funds, the temptation to react to short-term market movements in this way is virtually non-existent. That’s because the Old Mutual Smoothed Bonus Funds are specifi cally engineered to smooth out the ups and downs of market performance in the long term, resulting in a far less stressful investment experience without the need to react emotionally to external forces - whether these are positive or negative.
THE SECRET’S IN THE SMOOTHING
The key to securing long-term investment growth is to invest a reasonable portion of your portfolio in growth assets. Unfortunately, while these assets have the best potential to deliver the growth you want, they are also more susceptible than many other asset classes to poor performance when the markets turn downward.
Smoothed Bonus Funds are designed to overcome this volatility by giving investors a good chance of enjoying reasonable growth of the returns you get over time irrespective of the ups and downs of the investment markets.
Importantly, investors don’t have to sacrifi ce capital growth to enjoy this smoother long-term performance. That’s because the Old Mutual Smoothed Bonus Funds still invest in an optimal range of growth assets like equities, bonds, property and alternative assets, maximising the potential for them to deliver targeted real returns over the long term.
This balanced growth approach is then overlaid with an innovative smoothing process that sets aside a portion of the returns earned in the good times, to offset any dips in performance due to market downturns. These ‘set-aside’ returns are then passed on to investors by means of a regular bonus.
With its proven track record of delivering consistent infl ationbeating growth, Old Mutual’s range of Smoothed Bonus portfolios offers clear evidence of the effectiveness of this approach. Small wonder, then, that 2017 sees these innovative investment portfolios celebrating their 50-year anniversary.
Adding to the appeal of this proven smoothed returns approach is a range of fl exible guarantees. These are offered by Old Mutual to protect investors against the impact of extreme market downturns. The guarantees effectively lock in the value of the investment, and the growth it achieves, at an agreed level, thereby ensuring that investors in the portfolios need never worry about a market catastrophe wiping out some, or all, of their investment.
AN ACHIEVEMENT WORTH CELEBRATING
There aren’t many investments aim to deliver smooth long-term growth with various levels of guaranteed protection. There are even fewer who can back this up with a 50-year track record achieved by a trusted global fi nancial services company with more than 170 years’ experience. In fact, only the Old Mutual Smoothed Bonus Funds can make this claim - which is why investors in these innovative Funds will certainly be joining in the 50th anniversary celebrations.
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