Lifestyle Balanced Bonus Portfolio by sdsdfqw21


									Lifestyle Balanced Bonus Portfolio
As at 30 June 2010

Portfolio objective                                                                                                         Performance
This Portfolio consists of a balanced mix of equities, bonds, property and cash investments. The                            200
                                                                                                                                                Lifestyle Balanced Bonus
balanced asset mix provides asset sector diversification, lowering the inherent risk profile of the
Portfolio. Bonuses declared for this Portfolio are smoothed each year, providing the investor with                          180                 Inflation
more stable returns from year to year than under a market value portfolio. Over long periods, the
bonuses on this Portfolio should reflect the performance of the underlying assets. The Portfolio                             160
provides a guaranteed minimum return at specific dates.

Portfolio facts
 Management company                  STANLIB
                                                                                                                                                                                                                                                  *cumulative performance based on untaxed fund class
 Launch date                         December 1985                                                                           80

                                                                                                                                                     Nov 06

                                                                                                                                                                                                                                                                                                                             Nov 09
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                                                                                                                                                                                                                                                                    Nov 08
                                                                                                                                           Sep 06

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                                                                                                                                                                                                                                                                                                                    Sep 09
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                                                                                                                                                                                                                                                                                      Mar 09
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                                                                                                                                                                                                             Nov 07
                                                                                                                                                                                  May 07
                                                                                                                                  Jul 06

                                                                                                                                                                                                                                                                                                           Jul 09
                                                                                                                                                                                                    Sep 07

                                                                                                                                                                                                                                                                             Jan 09
                                                                                                                                                                                                                                                 Jul 08
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                                                                                                                                                                        Mar 07

                                                                                                                                                                                                                                                                                                                                                         May 10
                                                                                                                                                                                           Jul 07
                                                                                                                                                               Jan 07

                                                                                                                                                                                                                                                                                                                                               Mar 10
                                                                                                                                                                                                                                                                                                                                      Jan 10
 Portfolio type                      Single Manager
 Portfolio size                      R 304,818,075
 Guarantee available                 An optional guarantee is available on this portfolio
The performance of the portfolio benchmark over time provides the basis against which the portfolio manager will
be measured.
                                                                                                                                                                             3 Mths                 6 Mths                      1 Yr                2 Yrs                    3 Yrs                       5 Ys                  8 Yrs                    10 Yrs
Please consult the current portfolio grid for any current restrictions on the availability of portfolios for new business
and switching.
                                                                                                                            Taxed                                                1.23%               2.47%                     5.75%              5.72%                      7.09%                   11.88%                  10.47%                     9.74%
Risk profile                                                                                                                 Retirement Annuity                                   1.47%              2.96%                      6.75%              6.75%                      8.25%                   13.33%                  11.64%                     10.75%

   Conservative                                       Moderate                                       Aggressive             Inflation                                             1.18%               2.39%                     4.76%              6.37%                      8.12%                       7.03%                5.83%                     6.08%

No adjustment has been made to the above risk profile for the guaranteed version of the portfolio. If a guarantee is         Please Note: The above investment returns are after four-fund tax has been deducted but before any Liberty
selected on the portfolio, then the risk profile will be lower, provided the investor remains in the guaranteed portfolio    Life charges have been deducted, with applicable distributions reinvested and are on a sell-to-sell basis. They
for the duration of its guaranteed term.                                                                                    are applicable to single contributions and are for Excelsior 300 and 500 Series products for the periods above.
                                                                                                                            Investment returns for periods less than one year are not annualised.
What return is this portfolio designed to achieve?
 Expected return*                                         CPI + 3.5%                                                        Asset allocation
 Investment horizon                                       8 years                                                                                                                                                                                                  Offshore Assets 14.7%

The Consumer Price Index (CPI) measures the increase in the price of the basket of goods an average
                                                                                                                                                              Domestic Cash 13.4%
family would buy over a specified period of time.
* Expected return is after the deduction of tax but before any Liberty Life charges and fees have been deducted.

Quarterly commentary (2nd quarter)                                                                                                                  Domestic Bonds 12.5%                                                                                                                       Domestic Equity 59.4%

The prudent stock selection strategy taken within the equity component has been the main de-
tractor from performance over the past 12 months, but has not been strong enough to materially
reduce the underperformance over the 3 and 5 year periods.

Over the quarter, the portfolio was underweight Basic Resources, Financial Services and Insurance,
which were the main contributors to negative performance. The sectors that did contribute to
performance were overweight’s in Retail, Healthcare and other Equity, as well as an underweight
in Media. As stated, the portfolio remains underweight resources and financials and overweight                               *asset allocation based on untaxed fund class
industrials. The underweight resource exposure remains on the back of concern surrounding
global economic recovery and metal prices. Within financials, the majority of exposure remains to
banks. Within industrials exposure has been sector specific based on valuations.                                             Top ten equity holdings
The bond portfolio outperformed the benchmark BEASSA All Bond Index for the 12 months ending                                MTN Group                                                                                                                                                                                                                    7.5%
30 June 2010. The major benefit for the portfolio was a large underweight position in the long end                           Sasol                                                                                                                                                                                                                        6.5%
of the yield curve and an overweight in the middle sector. The overweight position in the middle                            BHP Billiton                                                                                                                                                                                                                 5.5%
sector of the yield curve remained unchanged as it continues to outperform the other sectors of
                                                                                                                            Standard Bank Group                                                                                                                                                                                                          5.4%
the yield curve. The portfolio also benefited from its exposure in corporate bonds, as spreads con-
tinued to compress.The modified duration of the portfolio remains short of the Index on concerns                             Anglo American                                                                                                                                                                                                               5.1%
of expected issuance in the long end of the curve, which is expected to have a negative impact on                           SABMiller                                                                                                                                                                                                                    4.1%
performance in this sector.                                                                                                 Firstrand Limited                                                                                                                                                                                                            3.5%
The Foreign Assets portfolio outperformed the composite benchmark after manager fees this                                   Impala Platinum Hlds                                                                                                                                                                                                         3.0%
quarter. Despite having added value of the past 12 months, our tactical position of being over-                             Compagnie Financiere Richemont                                                                                                                                                                                               3.0%
weight equity detracted from performance over the quarter. However, due to both equity manag-                               Woolworths Holdings                                                                                                                                                                                                          2.9%
ers outperforming their respective benchmarks and minimal contribution from global bonds, the
portfolio ended the quarter adding marginal alpha.

                                                                                                                                                                                                                                                          Info & Queries:
The information contained in this document does not constitute advice by Liberty Life. Whilst every attempt has been made to ensure the accuracy of the information contained herein, Liberty Life cannot be held responsible for any errors that
may occur. Past performance cannot be relied on as an indicator of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by inflation levels in the economy and prevailing
market conditions. Source: Liberty Life, STANLIB.
Liberty Group Limited - an Authorised Financial Services Provider in terms of the FAIS Act. (licence no. 2409)                      Liberty Active Limited - an Authorised Financial Services Provider in terms of the FAIS Act. (licence no. 10332)

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