National Fund for Municipal Workers

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: July 2025


Global markets rallied in July as investors priced in successful trade negotiations in the run-up to the 1 August tariff deadlines and shrugged off signs of weakening in the US jobs market.

In the US, inflation rose in June (+0.3% m-o-m) with the annual rate increasing to 2.7% in June from 2.4% in May. While the evidence in June was mixed on how much tariffs impacted prices, there are signs that the duties were having an impact. Before the 1 August deadline, the U.S. had already agreed deals with some of its largest trading partners, including the European Union, Japan, South Korea, the U.K., and Vietnam. These deals provide investors with a more definitive trading environment with reduced uncertainty. Average tariff rates on U.S. imports however remain materially higher than they have been for decades but are more favourable than the punitive rates threatened on Liberation Day. Economic growth fundamentals, despite the high policy uncertainty from the tariff negotiations, remain robust and economic growth in the U.S. bounced back to 3% in the second quarter following a 0.5% contraction in the first quarter, as consumer spending rose and imports dropped sharply after the March surge. This growth spurt is welcomed but it appears that economic activity is likely to slow in the latter half of the year as the labour market shows signs of weakness. The US added just 73000 jobs in July with sharp downward revisions to the prior two months. The latest revisions, which are a normal part of data collection and analysis, angered President Trump who stated that the latest numbers were “rigged” and promptly fired the commissioner of the Bureau of Labor Statistics. While consumer consumption remains robust, high mortgage rates are cooling the US housing market, with softer sales, higher inventory, and falling prices likely to impact consumer sentiment.

Global markets rose in July, supported by a less uncertain trading environment and robust earnings releases from US technology companies. The MSCI World Index ended the month with gains of 1.2% as gains in Information Technology, Communication Services, and energy stocks offset losses in Healthcare and Consumer Staples stocks. The S&P500 ended the month with gains of 2.2% while the NASDAQ rallied 3.7% as both indices benefited from strong earnings from technology companies. Earnings growth has been robust with 81% of S&P 500 companies reporting a positive earnings surprise and 81% of S&P 500 companies reporting a positive revenue surprise. Nine of the eleven sectors reported positive earnings growth for Q2 with the blended growth rate of 11.8% well above the ten-year average of 9.2%. Germany's DAX rose 0.7%, while Japan's Nikkei Index gained 1.4%. Emerging markets outperformed developed markets with gains of 1.7% as Chinese markets rallied 3.7%. Chinese markets were supported by the surprise 5.2% GDP growth, further stimulus efforts and easing trade tensions. Global bond markets declined 1.5% as yields on developed market government bonds rose. Global property stocks followed bonds lower, recording losses of 1.2%.

In South Africa, inflation settled at 3%, and the SARB decided to cut interest rates by a further 0.25%. The SARB also confirmed that they would target an inflation rate of 3% to promote price stability. This however contrasts with National Treasury's planning, which is based on the SARB's previous target inflation rate of 4.5%, prompting criticism from the Minister of Finance and highlighting the need for more consultations between the two institutions. Meanwhile, a 30% reciprocal tariff on exports to the US is expected to hit the transportation and agriculture sectors hard, while exemptions for precious metals, chemicals, and key minerals will lessen the impact on the mining sector. Any weakness in demand could worsen the already weak growth outlook and offset the positive impact of recent reforms at Transnet and the ports.

Local equity markets gained for a fifth consecutive month as resources stocks rose on the back of higher commodity prices and rand hedge industrials benefited from a weaker currency. The All Share Index gained 2.3% for the month driven by a 5.1% gain in resources stocks as platinum miners continued to rally as the price of Palladium and Rhodium soared. Industrials stocks gained 1.1% as strength in Prosus, British American Tobacco and MTN was offset by weakness in domestic retailers, while financials added 1.4%. The rand weakened 3% for the month as the dollar strengthened. Local bonds gained 2.7% for the month and listed property stocks surged 4.8% as the lower inflation target and lower interest rates boosted demand for interest rate sensitive assets.

Investment policy statement


Investments FAQs


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 also allows flexibility in providing our members with the option to elect any of the individual investment portfolio options available.
  • Capital Protector
  • Stable Growth
  • Capital Growth
  • Aggressive Growth
  • Shari’ah

Unitisation is a strategy which allows the fund to calculate your returns on a daily basis

The fund's administrative processes will enter a two-week freeze period from 1 August 2020, effectively. This is to ensure that all assets, liabilities and unit prices on the administration system are matched with the assets, liabilities and values of the Asset Consultants. Members will still be able to view their benefit statements online during the freeze period.

Interest will be integrated into the daily calculated unit price. In a unitised fund, benefit values are real-time (unit prices are updated daily, usually with a 2-3 day delay).

Yes, benefits will fluctuate on a daily basis and the benefit values displayed will be real-time. Members will still be able to monitor their investment growth by means of the Sanlam online platform and benefit statement.

Investment choice switches can be processed within 5 to 7 days from the day a correctly completed Investment switch instruction-form has been received by Sanlam.

Yes. However, we will first need to arrange to open this up to members. It will take 3 – 5 working days to activate the online functionality as soon as the unitisation implementation has been completed.

It is understandable that daily fluctuations in a member’s fund credit may lead to uncertainty and emotional switching, which may cost members dearly when making uninformed decisions. Members are therefore reminded to consult with a financial advisor first, before making any investment choices. Remember, a retirement fund is a long-term savings vehicle!

Benefit statements are posted to member twice a year. Should you require a statement in the interim please e-mail your request to info@nationalfund.co.za. You can also register on the Sanlam online platform which allows members to access their benefit and beneficiary information, by clicking on the following link https://cp.sanlam.co.za