Why risk the rollercoaster when you can enjoy a smooth ride?

Investors in Old Mutual's Smoothed Bonus Fund can expect a boost to their current policy values following returns of between 14.8% and 16.2% declared by the savings and wealth management company o¬n its range of retail smoothed funds.

"The nominal return of 16.2% translates into a 7.2% return in excess of inflation in an environment where year-on-year inflation was reported at 9%, says Steven Levin, General Manager Product at Old Mutual.

In a smoothed fund, a life assurer holds back some of the investment growth during times of strong market performance and allocates additional growth during time of poor market performance, thus smoothing market extremes.

The Old Mutual Flexi Smoothed Bonus Fund is the best-performing absolute return fund in SA over the last 23 years. With real returns since inception averaging 6% a year, there can be little doubt that this fund has helped investors to build their retirement nest egg without incurring undue risk in the process.

"Going into 2008, South Africans are facing what could prove to be the most difficult investment conditions in many years, with disposable incomes under pressure, highly uncertain local and global political and economic environments and significant financial market volatility" says Mike Harper, Managing Director of Retail Affluent at Old Mutual. "In these current turbulent times in the markets, it is increasingly important for investors to focus o¬n a proven investment strategy that rests o¬n sound investment principles. It is with this kind of environment that the range of smoothed funds comes into its own".