Fund Growth
Growing your savings through sound investment decisions.
See how your savings are growing with a strategic investment approach designed to deliver long-term value.
Our Investment Objectives
The Fund is busy implementing a new lifestage model for members that will incorporate a wealth accumulation phase for members that are more than 5 years from retirement, with members being phased into an income protection phase as they approach retirement.
The Accumulation portfolio seeks to deliver a real return of 4.5% above inflation (ie CPI + 4.5%) over any consecutive five-year period at an appropriate level of risk, while the Income Protection portfolio seeks to deliver a real return of 3.5% above inflation (ie CPI + 3.5%) over any consecutive three-year period at a lower risk level. These target levels of return are the outcome of a stochastic liability-driven modelling exercise to determine the most appropriate level of return targets suitable for the membership profile of the Fund.
Life Stage Model
The Fund has a diverse range of members of different ages with different needs. The Fund has two lifestage portfolios that caters for the needs of members.
Members are, by default, in terms of Regulation 37 of the ”Default Regulations”, invested in one particular lifestage portfolio, depending on how many years they have until retirement. Younger members will be invested in the Accumulation portfolio where the expected return is higher. As members get closer to retirement, they will switch into the Income Protection portfolio.
The switches will take place on the date of the member’s birthday and phased according to the lifestage model.
Why the switch?
When a member is still young and far from retirement, they have time and the appetite to take more risk by investing their money in a more aggressive or risky portfolio. But when the member is closer to retirement, they cannot afford to lose capital and also do not have enough time to recover the investment losses they would have suffered had their capital remain invested in the markets.
How the Life Stage Investment Model works
Members will be phased across the two portfolios as they approach retirement as follows:
Period to Retirement Accumulation Income Protection More than 5 years to retirement 100% 0% 4 to 5 years to retirement 80% 20% 3 to 4 years to retirement 60% 40% 2 to 3 years to retirement 40% 60% 1 to 2 years to retirement 20% 80% Less than 1 year to retirement 0% 100%
We outperform our competitors
The Fund has outperformed industry peers (with similar investment objectives) over one, three, five and 10 years respectively.
Most importantly, we have achieved these outstanding results with a transformed value chain of service providers demonstrating that transformation makes good business sense!
- Asset Consultant – Majority black-owned and 100% owner managed
- Asset Managers – 54% exposure to majority black-owned, managed and controlled (inclusive of black women participation)
As an asset owner, we understand that the power of reform lies with us. Therefore, we continuously review our supply chain and engage our service providers through the setting of transformation targets and ongoing monitoring.
As an asset owner, we understand that the power of reform lies with us. Therefore, we continuously review our supply chain and engage our service providers through the setting of transformation targets and ongoing monitoring.
