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: June 2026

The first half of the year ended with investors welcoming the announcement of an interim peace agreement between the US and Iran and the partial reopening of the Strait of Hormuz, although a rotation out of technology stocks on the back of AI spending fears resulted in heightened volatility late in the month.

US economic growth in Q1 was revised upwards from 1.6% to 2.1% annualised (the third revision, after a downward adjustment previously), as imports were revised sharply downwards. Growth in consumer spending was also revised down as services consumption dropped. Growth in fixed investment however remained strong, driven by AI infrastructure spending. The Federal Reserve, led by newly appointed Fed Chair Kevin Warsh, unanimously decided to keep interest rates unchanged and signalled a shift away from rate cuts as stubborn inflationary pressures amid a firm labour market necessitate higher interest rates. Interest rates are forecast to remain at or near current levels in the medium term, although the recent sharp drop in oil prices may relieve some inflationary pressure. Headline inflation rose 4.2% in May, from 3.8% in April, with a rise in energy prices accounting for more than 40% of the increase. Core inflation, the Fed’s preferred measure, accelerated to 2.9%, validating the Federal Reserve’s cautious stance on interest rates. Consumer confidence meanwhile remained low as consumers are feeling the squeeze of high interest rates and elevated cost-of-living expenses, despite a labour market that appears to be holding up. Latest non-farm payrolls showed that 57000 jobs were added in June, well below the downwardly revised 129000 in May and forecasts of 110000, and job openings also rose, suggesting the labour market is in a holding pattern.

Global equity markets consolidated in June, with many global markets slightly off highs reached earlier in the month, as investors shifted their focus from the earnings of AI-related technology companies to their future spending plans and the potential negative impact on profitability. The MSCI World Index declined 0.7% for the month (+13.8% for Q2), as a 4% decline in information technology stocks and an 8% decline in communication services stocks (which include platforms like Alphabet, Meta, and Netflix) offset gains in healthcare, financials and consumer staples stocks. Energy stocks shed over 5% as oil prices retreated to below $70 per barrel – close to levels seen before the outbreak of the US-Iran war. US markets performed in line with global markets with the S&P500 limiting losses to 1% and the NASDAQ declining just 0.1% for the month thanks to a two-day rally at month end. Despite the lacklustre month, the S&P500 and NASDAQ gained 15% and 28%, respectively, in Q2 for the best quarterly performance in six years. It is likely that the IPO of Elon Musk’s SpaceX – the largest ever US IPO – impacted market liquidity by absorbing an estimated $75 billion in capital, prompting institutional and retail investors to adjust their portfolios by selling off other tech assets and cryptocurrencies to free up cash. The IPO was initially met with enthusiasm but lost momentum later in the month as investors rotated to sectors with better valuations. US industrials and mid-caps appeared to be the biggest beneficiaries of the rotation with the Russell 2000 index gaining 3.7% for the month. With a 22% return for H1 (+21% for Q2), the mid-cap index posted its best first-half performance since 1991. Emerging markets meanwhile declined 1.4% in June (+24% for Q2) as losses in China, Hong Kong and South Africa offset gains in Colombia and the Philipines. Global bonds shed 0.8% (+0.9% for Q2) as global yields rose on higher inflation expectations, while global property stocks gained 1.6% for the month (+10% for Q2) thanks to large gains in US REITs focusing on lodging, data centres, and shopping centres.

In South Africa, major economic releases in June revealed steady but modest growth, continued high inflation and worsening business confidence. GDP grew by 0.5% quarter-on-quarter in the first quarter of 2026, marking the sixth consecutive quarter of economic expansion. On an annual basis, the economy expanded by 1.9%, driven by growth in the agricultural, financial, and transport sectors. Growth for the quarter was broad-based with only the manufacturing sector contracting. Inflation jumped to 4.5% in May, from 4% in April, as elevated oil prices drove transport inflation to 9.4%, largely because fuel prices leaped by 28.7% over the 12-month period. As the inflation expectations of the average household and analyst have ticked up, the central bank faces a difficult job of anchoring inflation at 3%, and further interest rate hikes are likely. Growth in retail sales meanwhile dropped to just 1.3% year-on-year in April as higher fuel prices negatively affected sentiment and spending.

The local equity market lagged global developed and emerging markets in June as the rotation out of commodity stocks continued. The All Share Index declined 3.7% for the month (-2.4% for Q2), driven by a 16% decline in Resources stocks as large losses in gold and platinum miners, as well as energy company Sasol and paper producer Sappi were compounded by losses in diversified miners. Industrials gained 2.2% despite further losses in Naspers and Prosus thanks to double-digit gains in retailers Mr. Price, Pick ‘n Pay and Foschini, as well as gains in Richemont, MTN and British American Tobacco. Financials gained 2.6% thanks to strength in banks, insurers Momentum and Outsurance, and asset management firms PSG and Sygnia. The rand strengthened towards month end as a resolution to the war appeared imminent. The currency ended the month at R16.38, recording a loss of just 1%. The yield on the 10yr government bond ended the month unchanged at 8.4%, resulting in a gain of 1.5% for the All Bond Index for the month (+7.9% for Q2) as a sovereign credit rating upgrade by Fitch – the first in 21 years – offset concerns of elevated inflation. Listed property stocks added 3.7% for the month (+10% for Q2), following global property markets higher as investors expected lower funding costs post the credit rating upgrade, which now aligns the nation’s credit rating with that of the other two rating agencies.