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: Oct 2024

Global markets lived up to expectations of heightened volatility and ended the month lower as investors worried about the outcome of US elections, slower interest rate cuts, heightened tensions in the Middle East and disappointing earnings releases by global technology companies.

Robust economic growth in the US – Q3 GDP rose at an annualised 2.8% – and slightly higher-than-expected inflation has dashed hopes for aggressive interest rate cuts and a small 0.25% reduction is widely expected in November. But an uptick in underlying price pressures – headline and core CPI rose 0.3% and 0.2% respectively in September – and uncertainty over the outcome of the U.S. presidential election make the road for further interest rate reductions in December and especially next year less clear. Consumer spending remains robust with retail sales rising 0.4% month-on-month in September which, along with government expenditure, was the key driver of economic activity in the third quarter. Some softening of consumption is expected as the latest labour market reading showed employers added just 12000 jobs in October. That report was however skewed by the strike at Boeing (affecting 40000 workers) and the effects of Hurricanes Helene and Milton that made landfall shortly before the numbers were compiled. Other indicators point to a more gradual cooling in the labour market. The number of job openings has declined steadily in recent months and employers are no longer having to compete as fiercely to find workers. Employers' labour costs in September were however still up 3.9% from a year ago — a higher-than-inflation rise, but a smaller increase than the previous year.

Global markets were on edge in October as robust US economic growth dampened expectations for aggressive interest rate cuts and investors took profits after indices reached new all-time highs in the month. The MSCI World Index declined 2%, led by losses in materials, healthcare and consumer discretionary stocks. The US’ S&P 500 lost 1% as consumer-oriented stocks sold off sharply, while the NASDAQ Index fell 0.8% after reaching an all-time high late in the month as investors took profits after disappointing earnings releases and guidance from Microsoft, Meta and Apple. The rally in emerging markets ran out of steam in October, led by losses in Hong Kong and China, as mixed economic data from the region weighed on sentiment towards Chinese stocks. Global bonds fell 3.3% in October as the yield on developed market government bonds rose on expectations of a slowdown in rate cuts and a higher terminal rate in the US. Global property stocks declined 4.9% as the sector reacted to higher funding costs.

In South Africa, annual inflation slumped to 3.8% in September as transport prices backtracked on lower oil prices. transport category entered deflationary territory for the first time in 13 months, with the annual rate falling from 2.8% in August to -1.1% in September. Fuel prices dropped for a fourth successive month and are on average 9% lower than a year ago, while food inflation remained at 4.7%. Retail sales growth accelerated in August, with sales rising 3.2% year-on-year, thanks to increased sales at general dealers and clothing retailers. With inflation now well below the SARB’s 4.5% target, the Monetary Policy Committee is widely expected to cut rates by a further 0.25% at the November MPC meeting. Meanwhile, in the Medium-Term Budget Policy Statement the Finance Minister reiterated National Treasury’s commitment to fiscal prudence and stabilising SA’s debt-to-GDP ratio. Forecasts for the fiscal ratios for this year were however adjusted to account for weaker-than-expected tax revenues, higher capital expenditure and slightly softer GDP expectations.

Local markets retreated in October with the All Share Index declining 0.9%, led by losses in industrials and financials. Resources stocks bucked the trend and gained 3% as gold and PGM miners rallied. Gold prices reached record highs amid heightened geopolitical risks, US election uncertainty and strong festive season buying in India, while the price of palladium surged after the US lobbied the G7 to impose sanctions on Russia’s supply of palladium. The rand weakened c. 3% as the dollar strengthened to end the month at R17.60 to the dollar. Local bond yields rose as the currency weakened and global yields rose. The All Bond Index declined 2.2% for the month as yields on the 10 year government bond rose from below 9% to 9.31% despite lower-than-expected inflation. Listed property stocks lost 2.8% as investors priced in higher funding costs.