Return on Sanlam's Stable Bonus Portfolio exceeds 27%

The Stable Bonus Portfolio, declared an exceptional return of 27.8% for the past 12 months to November 2006. This bonus rate is gross of tax and investment administration fees.

With the latest CPI inflation rate of 5.3% (for 12 months to September), the rate equates a return of over 22% in excess of inflation.

Sanlam's Stable Bonus Portfolio is aimed at retirement funds whose members want exposure to South African and offshore assets, but also need market ups and downs to be smoothed over time. Members are therefore protected from downturns in the market when they retire, die, resign, become disabled or retrenched.

Unlike its competitors that declare annual bonuses, the returns of Sanlams Stable Bonus Portfolio is declared monthly in advance and as a result protect leaving members' interest. Alternatively, members who opt to leave between annual bonus declarations receive an interim bonus for the period since the last bonus review, which is generally lower than the final bonus declared for the year.

Danie van Zyl, Actuary at Sanlam Employee Benefits- Client Solutions says: "The 27.8% return indicates the extent to which our clients have already benefited from the exceptional performance of the JSE over the past year." Sanlam also provides protection from market downturns by ensuring that a portion of the members' bonuses is locked in. The guaranteed portion of these bonuses amounts to 10.09%_ which comfortably exceeds inflation over the period.

"While we believe local equities still offer value, it is important for investors to realise that the exceptional equity performance of the last 18 months are unlikely to be repeated. Having said that, the smoothing of returns mentioned means that clients would continue to share in the recent good returns in the coming months. Investors in the Stable Bonus Portfolio are currently reaping the rewards of good returns coupled with underlying guarantees. The best of both worlds!" van Zyl concluded.