Portfolio Performance 2021 Q3

Newsletter   •   Quarter 3   •   2021

Woolworths Group Retirement Fund

Portfolio Performance

This chart shows the returns per year for the Woolworths Group Retirement Fund’s main portfolio, the High Growth Portfolio, over different time periods, all ending on 30 June 2021. All returns are net of fees. The Fund performance is compared to inflation and the return of an index-linked (passive) balanced fund.
Your contributions are invested carefully across different types of investment markets, both in South Africa and internationally.

We do this to achieve growth, while minimising the risks taken and the costs of administering the Fund.

It is essential that your contributions made to the Fund grow over time in order to be able to provide for you in your retirement.

Geopolitical and global events such as the coronavirus pandemic, and local economic and political factors, do affect the performance of investment markets. However, the investment portfolios of the Fund are structured and monitored to maximise long-term returns, while reducing long-term risks. Expert investment advisers support the Board in designing and implementing the investment strategy of the Fund, with resilience being a key objective.

Image
The events in South Africa in the last year provide an excellent illustration that it is impossible to predict the future with any certainty. This is just as true of investment markets. Our aim is to build an investment strategy that is resilient, which means that it does not rely on any specific scenario for investment success. A resilient portfolio will combine different types of investments, from different geographies, with different sources of risk and return.

Commentary on performance

Since the market crash in March 2020, investment markets, including the South African equity market, have recovered well. This recovery is reflected in the performance of the Fund's portfolios up to 30 June 2021.

The Woolworths Group Retirement Fund invests the maximum portion allowed outside South Africa. This substantially increases the types of investments available to the Fund and improves the resilience of the Fund’s investments and the investment outcomes for members.

Behaviour matters

We have had our fair share of unpredictable and extraordinary events in the past year. It is natural for us to become overwhelmed by what is going on in the world around us. In these times it is best to focus on what you can control – and we can control our own behaviour and choices with our personal finances.

The Fund is designed to safeguard your retirement savings through these changing times, as the strategy is intentionally built with resilience in mind.

Being a member of the Woolworths Group Retirement Fund provides you with an opportunity to create a better future for yourself and your loved ones by saving for your retirement.

Remember – stay invested!  Focus on the long term and don't overreact to short-term market movements.

In This Newsletter: