Steady Growth Model Portfolio Celebrates Its 3-Year Track Record

What if you could change the conversation from “Which fund is the best compared to its peers?” to “Which solution can reduce the uncertainty of achieving my client’s goal?”

Clients invest money with a goal in mind. Whether it is to finance a specific future life event or to satisfy some emotional need. Instead of measuring investment success against some relative benchmark, outcomes-based investing is designed to increase the probability of achieving a specified outcome over a specific rolling investment term.

Amity Investment Solutions designed a range of outcomes-based investment solutions. December 2019 saw the launch of the Steady Growth model portfolio, a strategy suitable for the short-term essential goals of private investors. This strategy managed to deliver well in excess of both CPI and the ASISA category over its first official 3-year period delivering 8,1%.

This model portfolio was designed to offer a more predictable outcome over rolling 3 to 5-year investment periods. This solution is designed

  • to deliver a return which ranges between inflation and 3% above inflation over any rolling 3-year period;
  • to deliver a return of inflation or higher with a 90% probability over a rolling 3-year investment horizon; and
  • not to lose capital over a rolling 12-month period.


Deliver Outcomes

Over the recent 3-year period, this strategy would have delivered R 126 500 if you invested R 100 000. This is well in excess of the category average of R 122 100 and we are pleased that this strategy managed to deliver the given outcome.

Preserve Capital

The next investment pillar of outcomes-based investing is to ensure we preserve the capital. The return numbers here highlights the 1-year and 3-year rolling periods as this is the targeted band we focus on for this strategy.

Reduce Risk

We aim to reduce behavioural risk with outcomes-based strategies. The ultimate risk for an end client, is not achieving their goal. The dispersion range highlights the worst and best outcomes over the 3-year period. This highlights that we can offer the end client a better outcome with more certainty and reduce the behavioural risk.

Achieve Consistency

The philosophy of outcomes-based investing is to deliver the outcomes you set CONSISTENTLY. To measure consistency, we look at the return dispersion. We have managed to consistently achieve our targeted outcome.

The below distribution table shows that historically the strategy produced a return ranging between 6,96% and 16,65% 95% of the time. The ASISA category in comparison managed to deliver a return ranging between 4,26% and 15,55% 95% of the time.

Technical Info

The Amity Advisor Experience team will assist with any queries you may have!

Go to our contact us page to find the necessary details.

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