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: January 2026

Despite heightened volatility at month end amid an escalation in geo-political risk and valuation concerns, global markets posted strong gains to start the year as investors focused on the generally supportive macro-economic backdrop.

In the US, inflation was unchanged at 2.7% year-on-year in December, with the main contributor to price increases being steep increases in the price of food and electricity. President Trumps tariffs have also contributed to rising prices as the average tariff rate reached 17%. That said, the pass-through to consumers has been more muted than expected, likely because businesses have chosen to erode their profit margins rather than risk alienating consumers via higher prices. While tariffs generated over $30bn of additional revenue for the IRS, the desired impact of reviving American manufacturing has not yet materialised. While US industrial production has risen modestly, jobs have not as much of the upturn in industrial production is attributable to growth in the aerospace and electronics sectors, which are among the least burdened by tariffs. Meanwhile, President Trump confirmed that he will nominate Kevin Warsh, not Kevin Hassett, as the next Chairman of the Federal Reserve. Hassett was widely viewed as being too influenced by Trump, intensifying fears about Fed independence. Kevin Warsh is a former banker and Federal Reserve governor, who previously served as economic advisor to both President George W Bush and President Trump. Warsh appears more independent and has a reputation of being an inflation hawk. Warsh would likely have been pleased with the Federal Reserve’s decision to keep interest rates unchanged with a 10-2 vote. The two members that voted against the decision preferred to lower rates as job growth remains low.

Global markets started the year with strong gains despite suffering large losses on the last trading day of the month as a flare up in geo- political risk and heightened concerns about the scale of AI investment spooked investors. The MSCI World Index ended the month with a gain of 2.5% as strength in communication services, consumer staples, energy, industrials, and materials stocks offset losses in financials and technology stocks. The US’ S&P500 lagged global markets with a gain of just 1.5% as investors grew increasingly cautious on valuations amid a pause in the interest rate cutting cycle, while the tech-heavy NASDAQ ended the month with a 1.2% gain as investors grew concerned about the astronomic levels of AI-related capex and the prevalence of circular funding deals in the technology sector. Emerging markets meanwhile rallied 8.9% in January as a flood of capital resulted in double-digit gains in nations exposed to commodities and semi-conductors including South Korea, Colombia, Peru, Brazil, and Taiwan. These gains were compounded by large single-digit gains in most other emerging markets including China. Global bonds gained 0.9% as stability in US Treasuries offset a steep rise in Japanese bond yields, while global property stocks gained 3.2% for the month as investors were encouraged by robust growth and low funding rates.

In South Africa, inflation edged up slightly to 3.6% year-on-year in December, from 3.5% in November, bringing the average inflation rate to 3.2% for the year, well within the SARB’s new target band. The main contributors were housing and utilities (up 4.9%), and meat prices which saw a 12.6% surge for the year. While inflation remains stable, the SARB took a conservative view on monetary policy and kept interest rates unchanged in January. While the consensus is for further rate cuts this year, this view could change should global central banks shift their stance from cutting to hiking interest rates. With lower interest rates for much of the year, private sector credit extension rose 8.7% year-on-year in December, with corporate lending accounting for an increasing share (currently 80%) of total loan demand. While manufacturing production declined 1% year-on-year in November, the knock-on effect of higher commodity prices should result in improved domestic manufacturing. The high precious metals prices and stronger rand have significantly improved the terms of trade with the nation recording a trade surplus of R23.2bn in December from a R37.9bn deficit the previous month. Meanwhile, in a sign of a tentative consumer recovery, retail sales rose 3.5% in November and new vehicle sales remained robust.

Local equity markets gained for an eleventh consecutive month despite suffering a 4% loss on the last trading day of the month as gold and platinum miners continued to rally on record commodity prices. The All Share Index gained 3.7% for the month, as a 12.5% gain in resources stocks and a 2.9% gain in financials offset relative weakness in industrials. Industrials stocks declined 3.4% as double-digit losses in Naspers, Prosus, and Richemont, and weakness in retailers offset gains in construction and consumer defensive stocks. The rand started the year on the front foot, strengthening 2.6% for the month as demand for emerging market bonds with high yield drove foreign inflows. The yield on the 10yr government bond dropped to 8.05% - the lowest level in almost ten years – which resulted in a gain of 2% for the All Bond Index for the month. Listed property stocks gained 1.1%.