Your Investment Options

The Fund offers you flexibility when it comes to the investment of your retirement savings.

You can choose where to invest your retirement fund savings by selecting one of two investment options below:

AUTOMATIC LIFE STAGE INVESTMENT OPTION

OUR default investment strategy is the automatic life stage investment OPTION. It Invests YOUR retirement savings ACCORDING TO YOUR AGE.
AS YOU GET OLDER AND CLOSER TO RETIREMENT, Your investments are GRADUALLY DE-Risked.

Who should consider Automatic Life Stage

This investment option is suitable for all members of the Fund who are planning to retire at age 63, who have a moderate risk profile, and who do not wish to be actively involved in making their own investment decisions.

How does the Automatic Life Stage option work?

  • Your Fund Credit is allocated to a portfolio based on your number of years to the normal retirement age of 63.
  • The Fund’s administrators gradually and automatically switch you from the more volatile Balanced Growth Portfolio to the less volatile Conservative Growth Portfolio from age 57.
  • The returns that you earn are added to your Fund Credit on a daily basis.
  • You do not have to make any investment decisions unless your circumstances change and you wish to move to another investment option.
  • Automatic Life Stage is a ‘balanced’ investment approach managed by carefully selected expert investment managers who invest in a wide range of different assets both in South Africa and abroad.
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Until age 57

You are invested in the balanced growth portfolio until age 57.

We use an investment strategy that takes your age into consideration. When you are younger, your retirement savings are invested with the aim of higher returns, which carry higher risk. As you get closer to retirement, we aim for more conservative returns with a lower risk. This makes sense, because as you get older, your Fund Credit needs to be preserved with less risk.

Our default investment approach is that members up to age 57 are invested in our Balanced Growth Portfolio and then gradually moved to the Conservative Growth Portfolio starting three months before age 57.

After age 57

Once you are 57 years of age, a more conservative approach is taken with your investments and your fund credit is automatically moved into a lower-risk portfolio.

The aim is to grow your retirement savings as much as possible with the least risk. Because this is the Automatic Life Stage investment option, you do not have to make any investment decisions. It is all done for you by the Fund.

At age 62 you are invested in a combination of the Conservative Growth and Banker Portfolios.

Up to age 57
Balanced Growth
Portfolio
  • If you are more than seven years from normal retirement age, your retirement savings will be fully invested in the Balanced Growth Portfolio.
  • The largest proportion of money in the Fund is invested in the Balanced Portfolio.
The Balanced Portfolio invests in:
  • Various shares
  • Listed property
  • Bonds
  • Cash in the domestic and global markets
+5.5%
TARGETS INFLATION
+5.5% per year over 7 years
From age 57 to 62
Conservative GROWTH
PORTFOLIO
  • From age 57, a portion of your retirement savings is invested in the Conservative Growth Portfolio.
  • The Conservative Portfolio is used to transition members‘ investments as they approach retirement. It aims to deliver more stable, lower-risk returns during this period.
3%
TARGETS INFLATION
+3% per year over 7 years
Age 62 to 63
Banker
Portfolio
  • Members are invested partly in the Banker Portfolio for only the last year before their retirement.
  • The final transition allocates 80% of your retirement savings to the Conservative Growth Portfolio with the residual 20% invested in the Banker Portfolio.
  • The final transition allocates 80% of your retirement savings to the Conservative Growth Portfolio with the residual 20% invested in the Banker Portfolio.
2.5%
TARGETS INFLATION
+2.5% per years
+5.5%
TARGETS INFLATION
+5.5% per year over 7 years
3%
TARGETS INFLATION
+3% per year over 7 years
2.5%
TARGETS INFLATION
+2.5% per years

OWN INVESTMENT choice OPTION

Balanced Growth Portfolio

conservative GROWTH PORTFOLIO

Banker Portfolio

SHARI'AH

This option allows you to decide in which portfolios you want to invest.
With this option, there is no automatic movement between investment portfolios. Here you are entirely responsible for any switches and movements.

If you don't want to follow the Automatic Life Stage investment strategy, you can use the Own Investment Choice option.

This investment option offers you the same range of portfolios as those offered under the Automatic Life Stage investment option and also includes the Shari'ah Portfolio that is described in more detail on the next page.

Under this option, members must decide in which portfolios they want to invest and can switch portfolios as and when they deem appropriate.

There is no automatic movement between investment portfolios within this option.

Who should consider the Own Investment Choice option?

  • Members who wish to retire early and want to protect their Fund Credit against volatility or higher risk.
  • Members who are planning to resign and want to ensure that their Fund Credit is not at risk.
  • Members who, after age 57, want their investments to remain longer in a higher-risk environment.
  • Members who have other investments and want to keep their Fund Credit as an aggressive or higher-risk investment.
  • Members who are confident about making their own investment decisions.

How does the Own Investment Choice option work?

  • You select the correct split between the above four portfolios based on your retirement savings plan.
  • The actual returns earned on the portfolio in which you are invested will be added to your Fund Credit on a daily basis.
  • You can switch portfolios within the Own Investment Choice at any time, free of charge. You will need to complete the Switching Form below.

Changing your investment option

Automatic Life Stage is the Fund's default investment option and is suitable for most members of the Fund. Please get expert financial advice before you make these important investment decisions.

Contact the Alexforbes Individual Advice Centre (IAC):
Call 0860 100 444 or email iac@alexforbes.com

Switch Investments