About the Progressive Smooth Bonus Fund

The Progressive Smooth Bonus Fund is the first and only empowered smoothed bonus portfolio in South Africa, managed by 27four Investment Managers and guaranteed by Sanlam. Here are 7 things to know about the fund.

 

  1. In volatile times, avoiding drawdowns can allow you to steadily build and grow your savings. The Progressive Smooth Bonus fund allows you to benefit from smoothed returns and a capital guarantee.
  2. The fund has the dual objectives of giving investors a CPI linked return and managing the risk of drawdowns and volatility.
  3. All of the managers in the Progressive Smooth Bonus Fund are black owned and managed businesses.
  4. In the Sanlam benchmark survey, 71% of blue collar workers and 90% of members close to retirement cited stable returns as the most important characteristic of the investment product they would choose. The Progressive Smooth Bonus provides this.
  5. Volatility can impact the value of your retirement savings at the point you retire which then impacts the level of income that you can purchase through an annuity. Smoothing and a guarantee structure can provide the necessary protection.
  6. Loss aversion is a big driver of investor behaviour. The Progressive Smooth Bonus Fund can overcome this while avoiding the trap of being too conservative with a minimum of 50% equity exposure.
  7. The Fund is geared for retirement funds looking to provide a cost effective, relevant solution for their membership that rewards black excellence and aligns with the Amended Financial Sector Code.