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The Inflation-Plus Bond provides a secure, fixed term investment that offers a guaranteed return above inflation. This unique offering will protect the purchasing power of your capital by guaranteeing an attractive after-tax return of inflation + 2% per year on the net amount invested over a 5-year period.

1. Inflation is calculated as the growth in the Headline Consumer Price Index (Headline CPI) as published by Statistics South Africa, with a 2-month lag.
2. It should be noted that the overall return to the investor from the point in time at which they invest to the point in time at which they exit the investment will not necessarily be equal to inflation + 2% per year, for two possible reasons:
- The return during the subscription period, before the start of the investment term, will depend on the early subscription bonus rate and the initial fees charged.
- The Bond is designed to be held in full to the maturity date, and the guaranteed return does not apply to early disinvestments or switches out.

Fairbairn Capital’s Inflation-Plus Bond is exclusively available to individual investors via the Investment Frontiers Capital Portfolio for discretionary investments.

Features & Benefits

• Inflation-beating returns
• Guaranteed returns
• Returns that aren’t dragged down by tax in the investor’s hands

Most investors want all of the above from their investments. However, the majority of investments can’t provide all three, and the search for one often compromises the others.

For example, equity and property investments can deliver inflation-beating returns over time, but there are no guarantees. Money market and fixed interest investments can offer a higher degree of capital security, but for many investors the returns are heavily taxed, and therefore often fail to outpace inflation after tax is taken into account.

Fairbairn Capital’s Inflation-Plus Bond provides: An inflation-beating return, guaranteed by Old Mutual, with no further tax to pay in the investor’s hands, over a specified 5-year period.

Investment subscription period

The Inflation-Plus Bond is available for subscription during a specified period only.

Investment term

The investment term of the Bond is five years, beginning on the first day after the end of the investment subscription period.

Investment Minimums

The minimum investment amount is R100 000.

Fees

The initial administration fees are as follows:

• First R250 000: 2.25%
• Next R250 000: 1.25%
• R500 000+: 0%