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: March 2025

Global markets declined in March, driven by losses in US stocks, as investors worried that the Trump Administration’s increasingly punitive tariff announcements would ultimately create an environment of slowing growth and high inflation.

In the US, inflation declined slightly from 3% to 2.8% year-on-year as a smaller increase in shelter costs and lower flight prices offset larger increases in the price of food (egg prices were up 58% for the year!). The Federal Reserve acknowledged the progress made in fighting inflation but kept interest rates steady at 4.5% at their March 19 meeting, as the committee lowered its growth projections for the year (from 2.1% to 1.7%) and anticipated that tariffs would put upward pressure on prices. Tariff wars continued into March and the announcement by the US of an additional 25% tariff on auto imports unleashed a wave of retaliation by the EU, with the latest proposals targeting services provided by US technology companies and banks. The US is also considering tariffs on copper, Canadian dairy products, European alcoholic drinks, a range of other goods like medicine and microchips, and anything from countries that buy oil from Venezuela. While the impact on economic activity remains uncertain, recent data suggest that the US economy is thus far holding up well, with retail sales in February holding up better than the consumer confidence surveys would have suggested. But with increasing uncertainty, consumers appear to be becoming more cautious towards spending – especially on food services and accommodation – despite strongly rising incomes, which combined with heightened trade policy uncertainty prompted economists at Goldman Sachs and JP Morgan to raise their estimates of the probability of a recession from c. 20% to 35% and 40%, respectively.

Global developed markets declined in March as investors priced in expectations for slowing growth and declining corporate profitability as tariff announcements dampened both business and consumer sentiment. The MSCI World Index declined 4.5% (-1.8% for the quarter), led by losses in IT, consumer discretionary and communication services stocks. The US’ S&P 500 declined 5.6% in March (-4.3% for the quarter) as investors reconciled slowing growth with high valuations, while the NASDAQ declined 7.6% for the month (-8% for the quarter) after five consecutive quarters of gains. European markets declined less with Germany’s DAX falling just 1.7% as investors hoped for a revival of European growth after the announcement of various fiscal support measures in the region. Emerging markets meanwhile gained 0.6% in March thanks to large gains in Eastern Europe, South Africa, Indonesia and Brazil. Global bonds gained 0.6% in March as yields on developed market government bonds declined on continued economic growth concerns, while global property stocks declined 2.5% as investors priced in slower growth.

In South Africa, the opposition rejected the ruling party’s new proposal for a 0.5% increase in the VAT rate in each of the next two years, reiterating that it places a heavier burden on the poor. They instead proposed, amongst other things, a hiring freeze outside of essential services, cutting government expenditure by reducing advertising and travel budgets, and proposed an audit of ghost employees. Meanwhile, consumer confidence plunged after the Finance Minister’s aborted proposal as the prospect of significantly higher taxes – either through VAT or income tax bracket creep – alarmed consumers. The souring of diplomatic relations between South Africa and the US and the knock-on effects of the trade wars triggered by US President Donald Trump likely also contributed to the deterioration in sentiment. Business sentiment remained stable overall but four of the five sectors experienced declines in confidence, which combined with declining consumer confidence suggests that economic momentum could slow in coming months. Inflation, at 3.2% year-on-year in February, remains low but the Reserve Bank cautioned that local and global risks remain to the upside and voted to keep interest rates steady at their March 20 meeting. Economists still expect two interest rate cuts in 2025 which could provide some relief to consumers, but lingering uncertainties around taxation, trade relations, and domestic demand could keep both consumers and businesses cautious.

Local equity markets benefited from higher commodity prices, improving investor sentiment towards China, and exposure to defensive consumer staples companies. The All Share Index gained 3.6% for the month (+6% for the quarter) as the 21% gain in Resources stocks offset weakness in Industrial and Financial stocks (-0.2% and +0.2%, respectively). Resources stocks benefited from higher platinum and gold prices which passed $1000 and $3000 an ounce, respectively, while Industrials declined as gains in Naspers and British American Tobacco were offset by losses in global luxury retailer Richemont (down 15%) as well as domestic retailers that sold off sharply as consumer confidence dipped. Financials eked out a small gain as gains in banks offset losses in life insurers. The rand strengthened 2% for the month (2.7% for the quarter) despite deteriorating domestic economic conditions as the US dollar weakened on the back of tariff announcements. Local bonds gained 0.2% for the month (+0.7% for the quarter) as bond yields rose after the National Treasury announced that debt issuance would increase to fund the tax shortfall. Listed property stocks shed 0.9% in March (-3.5% for the quarter) as funding costs remained high and sentiment declined.