Newsletter March 2020

I hope you are all keeping well and staying in doors.

During these uncertain and challenging times it is understandable that members may be concerned about the impact of COVID-19 on their retirement savings. With continued volatility in all asset classes expected it is however important to retain your long-term focus and not make any rash decisions, that can have a negative long-term investment impact. Yes, it might sound easier said than done, but we need to remind ourselves that history has taught us that eventually things will return to normal.

• During the 2008 financial crises many investors panicked and switched from high equity exposure portfolios to "safer" money market portfolios in the fear of losing capital. When the markets rapidly recovered, they missed out on the 37.5% growth the following year, only experiencing the loss and not the potential growth/recovery.
• Investments are about the time in the market and not necessarily timing the market. Bad returns are inevitably followed by positive returns and with time your investment will recover.
• The default life stage model applied by the fund automatically takes members through different investment portfolios i.e. aggressive to more conservative portfolios as they near retirement age. The fund does offer individual investment choice where members can choose any of the investment portfolios available. Members are however cautioned against emotional switching as no one knows when the markets will recover and they may end up in a portfolio or portfolios that are not in line with their long-term investment objectives.
• If you were planning on leaving service, it might be a good time to look at the options available to you to recover the possible losses. This could include postponing your date of resignation or retirement (55 years to maximum age of 65 years) or leaving your money in the fund and becoming a deferred member. This can mitigate the potential of members losing out on the market recovery cycle. Members are encouraged to always seek professional financial advice to avoid making investment decisions that they may later regret.
• Last but not least, stick to your long-term plan. The value of staying invested cannot be over emphasised. Years of research have shown that investors who stick to their long-term investment plan outperform those who make rash decisions and changes based on short-term market volatility. In a recent article published by RMB Private Bank they stated that the average annual return on the SA market is 10% over the past 20 years. However, if one misses just the best 10 days out of more than 5 000 days, that return drops by 30% to under 7% per annum. No one knows exactly when these 10 days will occur and we must therefore recognise the value of remaining invested in order to have the highest likelihood of achieving our goals.

Please remember, we are always here to help if you need any information or assistance with a fund-related query.

Kind regards

Sean Samons
Principal Executive Officer

TOO MUCH TIME TO YOURSELF DURING LOCKDOWN PERIOD?

Use the time wisely and ensure that the fund has all your updated contact details as well as the details of your beneficiaries for death and dependants for funeral benefits on records. All the forms you need can be accessed by clicking here.

REMINDER: FUND OPERATIONS DURING LOCKDOWN PERIOD

Processing and payment of claims

Our staff continues to work remotely to ensure the minimum disruption and to continue with service delivery. There will therefore be no delays in the processing and payment of claims, once ALL the required documentation and information have been submitted to the fund. All claims documentation and monthly schedules must still be submitted to the relevant Fund Administration Officer.

You can contact the fund through the following mediums

• E-mail: info@nationalfund.co.za
• Website: http://www.nationalfund.co.za/contact
• Social media: Send an inbox message on the fund's Facebook page https://www.facebook.com/nationalfundformunicipalworkers/
• Connect with us via WhatsApp and Telegram on number 063 645 7110
• The Sanlam online platform allows you to access your benefit information, update personal and beneficiary details, request benefit statements and much more. Register now on https://cp.sanlam.co.za/ or download the free Sanlam My Retirement App.

New and pending pension backed home loan applications

The two financial credit providers Standard Bank and RFS Home loans have confirmed that they will be operating remotely to ensure business continuity and will therefore process all new and pending home loan applications. Please note that your employer must have an agreement with the respective financial credit provider, in order to apply for the home loan facility.

The application forms for both financial credit providers including the list of supporting documents required are available on the fund’s website www.nationalfund.co.za. The contact details for the respective financial credit providers are provided should you require further information and assistance with the home loan application process:

Standard Bank Pension Backed lending - Pblloanorigination@standardbank.co.za (new applications) or PBL.CallCentre@standardbank.co.za (enquiries)

RFS Home loans – 012 523 5555 or morris@rfshomeloans.co.za

Latest Investment Portfolio Returns

The table shows the most recent return declarations up to 29 February 2020;