Fund Investments








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The Fund offers a mix of investments that have the potential to provide suitable returns in line with the performance objectives over the long term.

When your employer contributes on your behalf to the Fund, the contribution (less Fund expenses and contributions towards death benefits) is paid into an investment portfolio. A portfolio will contain a range of different investment types - such as shares, bonds, cash and property. Shares give you access to high rewards from the equity market, while bonds and cash provide a safe foundation.

The Fund follows a default Life Stage investment strategy. This means that your portfolio is structured according to how far or how close you are to retirement. Your money is moved automatically as you approach your planned retirement date.


In other words, when you reach a certain age, the Fund will start moving your money into safer portfolios by degrees, thus protecting you from market fluctuations. The graph below depicts the Life Stage 65 model:

 

 

 

 


What fees are charged for the various portfolios?

   Inflation Target Portfolio  Stable Portfolio  Income Protection Portfolio  Pensioner Portfolio
Base fee  0.47%  0.44%  0.15%  0.21%
Trading costs  0.13%  0.10%  0.02%  0.01%
Expected performance fee   0.04%  0.03%  0.00%  0.04%
Total expected TIC (total investment charge) including performance fees  0.64%  0.57%  0.17%  0.26%


Switching

All members are automatically invested in the Life Stage 65 Portfolio. However, some members may have special reasons for preferring another portfolio. The Fund recognises the need for flexibility and permits members to change their portfolio investment from time to time.

You pay a switching fee of R350 plus VAT in respect of any change in investment strategy you make to an own-choice portfolio. This fee is deducted from your Member Credit Account. The fee will be revised on an annual basis.

If you choose a different portfolio to the one selected for your age group, you should do so only after careful consideration, and preferably after consulting an accredited financial planner. The Fund accepts no responsibility for any losses you might incur as a result of your alternative choice.






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