Aug 2019
NFMW-greetings
President Cyril Ramaphosa's statement in the national assembly that South Africa should have a national conversation about the use of prescribed assets, has again created some concerns amongst our fund members. Prescribed assets could refer to the percentage of retirement funds’ assets that, by law, must be invested in bonds issued by the SA government and state-owned enterprises.
With government calling for more discussion, and no policy papers published yet, it is still too early to say how, when and if the state will proceed with prescribed assets. It is important to note that nothing has been decided yet and that there is a long way to go before such policies can be implemented. We will, as always ensure that members are kept informed and urge members to not make any hasty and irrational decisions about their retirement savings.
The latest benefit statements and newsletter were posted during the last week of August. The good news is that, because you are subscribed to receive the monthly news updates, the electronic version of the newsletter is included and "hot of the press". The newsletter provides retirement industry and fund updates, an article on understanding your benefit statement, benefit improvements, exclusive benefit offerings to NFMW members, information on the fund's post-retirement products, the most recent and longer-term investment portfolio returns and a "Test your knowledge"-competition.
Enjoy reading this edition of the mailer and remember, we are always here to help if you need any information or assistance with any fund-related matter.
NFMW NEWS (LATEST EDITION)
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LATEST INVESTMENT UPDATE
What happened in July? Local markets fell sharply in line with global emerging markets as the rand weakened significantly following Fitch’s negative credit outlook on South Africa. The All Share Index fell 2.4% in the month, while the Capped SWIX index dropped 3.1% as financials (-7%) and resources (-5.2%) fell sharply. Industrials gained 1.2% as Naspers, BAT and MTN bucked the trend. Sasol again weighed on the bourse with the share price falling another 11% despite higher oil prices in rand terms. Listed property stocks fell 1.2% for the month as shares in property stocks with UK exposure fell sharply on concerns around a no-deal Brexit. The All Bond Index fell 0.7% as yields rose to 8.3% on the back of the weaker rand. The rand shed close to 2% to end the month at R14.33 to the dollar.
The table below indicates the most recent and longer-term returns experienced by the various NFMW -portfolios as at 30 July 2019.
| Portfolio | 3 months | 1 year | 3 years Ann | 5 years Ann | 10 years Ann |
|---|---|---|---|---|---|
| Shari'ah Portfolio | -1,35% | 3,33% | 5,27% | n/a | n/a |
| Capital Protector | 2,20% | 8,33% | 8,27% | 7,70% | 6,58% |
| Stable Growth | -0,35% | 4,30% | 6,11% | 7,01% | n/a |
| Capital Growth | -1,48% | 3,44% | 5,71% | 7,24% | 9,92% |
| Aggressive Growth | -2,03% | 2,89% | 5,24% | 6,58% | 10,97% |
| CPI (inflation) | 1,61% | 4,61% | 4,77% | 5,05% | 5,18% |
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