Investments

Life stage (default)

The fund applies a life stage model which automatically takes members through different investment portfolios i.e. aggressive to more conservative portfolios as they near retirement age. The life stages are as follows:

Members younger than age 55 - Aggressive Growth portfolio
Members age 55 and older, but younger than age 62 -Capital Growth portfolio
Members age 62 and older - Stable Growth portfolio

The fund has implemented a phasing-in approach for default switches. Read more

The first 25% switch to the new recommended portfolio will commence at the end of a member’s birthday month. As a result, it will take 12 months for a total portfolio switch to be completed. After the 12 month phase-in period, all future member contributions will automatically accrue to the new default life stage portfolio. See an illustration of a default switch from the Aggressive Growth portfolio to the Capital Growth portfolio below.

*The first 25% switch to the new recommended portfolio will commence at thee end of a member's birthday month.

Member investment choice

The fund also allows flexibility in providing our members with the option to elect any of the individual investment portfolio options available.
Investment switch form

Aggressive Growth Portfolio

Investment objective: To maximise capital growth over a long-term investment horizon. Members should acknowledge that this strategy could deliver volatile and negative returns over the short-term. This strategy is suitable for members with more than 10 years to retirement.

Capital Growth Portfolio

Investment objective: :To target capital growth over a medium to long-term investment horizon. Members should acknowledge that this strategy could deliver volatile and negative returns over the short-term. This strategy is suitable for members with 5 to 10 years to retirement.

Stable Growth Portfolio

Investment objective: To target stable returns over a medium-term investment horizon with low volatility and a low probability of negative returns. This strategy is suitable for members with 1 to 5 years to retirement.

Capital Protector Portfolio

Investment objective: To provide capital security with very low volatility and an extremely low probability of negative returns. This strategy is suitable for members with less than 1 year to retirement where capital protection is absolutely necessary

Shari’ah portfolio

This portfolio is suitable for Muslim investors requiring a Sharia-compliant investment portfolio. The portfolio will be invested in a variety of domestic and international asset classes. The underlying investments will comply with Shari'ah requirements as prescribed by the Auditing Organisation for Islamic Financial Institutions. The portfolio targets capital growth over the long-term while limiting short term market fluctuations.

Latest investment returns

Economic Commentary: October 2025

Global markets rose in October despite signs of stress in some credit markets as the US cut interest rates, US companies beat earnings expectations, and the US and China reported positive trade developments.

In the US, consumer price inflation (CPI) measured 3% in September, slightly less than expected and lower than the 3.1% annual change in the previous two months as a surge in the cost of gasoline was partially offset by a moderation in rental increases. Based on the CPI data, economists estimate that core PCE inflation (the Fed's preferred measure) rose 0.2% in September, translating to a 2.9% year-on-year gain - the same as the previous month. The ongoing government shutdown has delayed the release of that data as the manual collection of price data was halted. Despite some concerns around the accuracy of data and two dissenting members, the Federal Reserve nevertheless decided to cut interest rates by a further 0.25% in October. The narrative was largely unchanged from the previous month with the Fed Chairman Jerome Powell noting that downside risks to employment have risen in recent months. Further rate cuts this year are however unlikely as there were "strongly differing views" about the appropriate path for monetary policy among the Fed officials. Meanwhile, consumer spending, although robust, appears to be concentrated in the higher-income sectors and the strain on lower-income and younger Americans is becoming harder to ignore.

Global markets rose in October, supported by strong earnings from US technology companies and a trade-related rally in emerging markets. The MSCI World Index ended the month with gains of 2% as strength in the Technology, Healthcare and Consumer Discretionary sectors offset weakness in Consumer Staples, Financials, Materials and Energy stocks. The US' S&P500 ended the month up 2.3%, while the tech-heavy NASDAQ gained 4.8% as strong earnings outweighed investor's concerns about the surge in AI-related capex and the impact on free cash flow. Q3 earnings have thus far surprised on the upside with the blended earnings growth rate of 10.7% marking the fourth consecutive quarter of double-digit earnings growth for the S&P500. Financials, Technology and Consumer Discretionary stocks were the largest contributors to earnings growth this quarter. Investors are however becoming increasingly concerned about the record levels of capex as Meta, Microsoft, and Alphabet each plan to spend 21% to 35% of revenue on capital expenditure. Increased debt levels and circular funding deals that mirror dot-com era practices (such as Nvidia investing $100 billion in OpenAI, which then buys Nvidia chips) add further risk to a sector that comprises 42% of the S&P500 index. Emerging markets meanwhile gained 4.2%, as large gains in Argentina, South Korea, and Taiwan (the latter two regions benefitting from AI spending) offset losses in China, Turkey, and Mexico. Global bond markets declined 0.3% as yields on developed market government bonds rose slightly, while global property stocks followed bonds lower, recording losses of 1.4%.

In South Africa, inflation increased slightly to 3.4% in September (from 3.3% in August) mainly driven by higher costs in housing and utilities, and food and non-alcoholic beverages. Thanks to low inflation recently, the SARB has been able to reduce interest rates by 1.25% over the last year. With the US cutting rates in October, it is likely that the SARB will follow suit at the MPC's 20 November meeting. While the nation desperately needs further rate cuts to stimulate economic activity, it is likely the SARB will delay further rate cuts as upside risks to inflation (such as an increase in medical aid costs) remain. Data on economic activity remains mixed with manufacturing production declining 1.5% year-on-year in August, and retail sales rising just 2.3% in August (from 5.7% in July) despite a 6% growth in private sector credit extension. It is likely that funds previously used for retail purchases and restaurant outings are being diverted to online gambling. A recent Daily Maverick article noted that the online gambling industry experienced a 550% increase in turnover in only four years, reaching R1.14-trillion (nearly 17% of GDP) in the 2023/24 year (not accounting for unlicensed global platforms). Of particular concern is that the sector does not contribute meaningfully to jobs or the fiscus as most of the profits are extracted by offshore entities.

Local equity markets gained for an eighth consecutive month as investors shifted their attention to relatively undervalued financials stocks. The All Share Index gained 1.6% for the month, as an 8.4% gain in financials stocks offset a 4.8% decline in resources stocks. Banks and insurers rallied sharply on the back of increased interest from foreigners, while gold and platinum miners sold off as investors took profits after a record rally. Industrial stocks gained 1.8% as gains in MTN and food retailers offset losses in Naspers, British American Tobacco, and clothing retailers. The rand weakened 0.3% for the month as the dollar strengthened slightly as investors tempered expectations for further interest rate cuts in the US. Local bonds gained 2.6% as bond yields declined sharply on the back of increased foreign buying following South Africa's removal from the FATF grey list and the SARB's commitment to a 3% inflation target. Listed property stocks surged 7.8% as investors priced in lower funding costs.