Investment Factsheets

UNITISATION

For the NFMW to remain competitive in the pension funds industry, it is crucial to continually review existing business processes to ensure that members are experiencing the best possible service delivery. The investment returns used to be declared by means of bonuses that are calculated by the fund’s actuary on a monthly basis. The bonus rate declared represents the net investment return in respect of the previous month’s investments. This unfortunately caused delays in certain business processes e.g. benefit payments and portfolio switches. Therefore, the fund was converted to operate on a fully unitised investment and administration platform from the middle of August 2020. This new strategy will allow the fund to calculate members' returns on a daily basis. Read more

When will this come into effect?

The fund's administrative processes will enter a two-week freeze period from 1 August 2020, effectively. This is to ensure that all assets, liabilities and unit prices on the administration system are matched with the assets, liabilities and values of the Asset Consultants. Members will still be able to view their benefit statements online during the freeze period.

The fund used to declare returns on a monthly basis; how will interest be added to the member’s fund credit with unitisation?

Interest will be integrated into the daily calculated unit price. In a unitised fund, benefit values are real-time (unit prices are updated daily, usually with a 2-3 day delay).

With daily unit pricing, does the member's benefit fluctuate on a daily basis? How will the member be able to monitor investment growth on his/her benefit, i.e. how will this reflect on the Sanlam online platform and benefit statement?

Yes, benefits will fluctuate on a daily basis and the benefit values displayed will be real-time. Members will still be able to monitor their investment growth by means of the Sanlam online platform and benefit statement.

Will the implementation date of a member’s investment switch still be effective on the first day of the following month or will it be done as soon as the new portfolio/s is elected?

Investment choice switches can be processed within 5 to 7 days from the day a correctly completed Investment switch instruction-form has been received by Sanlam.

Will members be able to effect a switch on the Sanlam online platform?

Yes. However, we will first need to arrange to open this up to members. It will take 3 – 5 working days to activate the online functionality as soon as the unitisation implementation has been completed.

Day to day fluctuations in a member’s fund credit may lead to emotional switching; any word of advice to our members on this?

It is understandable that daily fluctuations in a member’s fund credit may lead to uncertainty and emotional switching, which may cost members dearly when making uninformed decisions. Members are therefore reminded to consult with a financial advisor first, before making any investment choices. Remember, a retirement fund is a long-term savings vehicle!

Life stage (default)

The fund applies a life stage model which automatically takes members through different investment portfolios i.e. aggressive to more conservative portfolios as they near retirement age. The life stages are as follows:

  • Members younger than age 55 - Aggressive Growth portfolio
  • Members age 55 and older, but younger than age 62 -Capital Growth portfolio
  • Members age 62 and older - Stable Growth portfolio

Member investment choice

The fund also allows flexibility in providing our members with the option to elect any of the individual investment portfolio options available.

Post-retirement products

Investment policy statement

Financial Statements