National Fund for Municipal Workers

Investments


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

The fund has implemented a phasing-in approach for default switches. Read more

The first 25% switch to the new recommended portfolio will commence at the end of a member’s birthday month. As a result, it will take 12 months for a total portfolio switch to be completed. After the 12 month phase-in period, all future member contributions will automatically accrue to the new default life stage portfolio. See an illustration of a default switch from the Aggressive Growth portfolio to the Capital Growth portfolio below.

*The first 25% switch to the new recommended portfolio will commence at thee end of a member's birthday month.

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.
Investment switch form

Aggressive Growth Portfolio

Investment objective: To maximise capital growth over a long-term investment horizon. Members should acknowledge that this strategy could deliver volatile and negative returns over the short-term. This strategy is suitable for members with more than 10 years to retirement.

Capital Growth Portfolio

Investment objective: :To target capital growth over a medium to long-term investment horizon. Members should acknowledge that this strategy could deliver volatile and negative returns over the short-term. This strategy is suitable for members with 5 to 10 years to retirement.

Stable Growth Portfolio

Investment objective: To target stable returns over a medium-term investment horizon with low volatility and a low probability of negative returns. This strategy is suitable for members with 1 to 5 years to retirement.

Capital Protector Portfolio

Investment objective: To provide capital security with very low volatility and an extremely low probability of negative returns. This strategy is suitable for members with less than 1 year to retirement where capital protection is absolutely necessary

Shari’ah portfolio

This portfolio is suitable for Muslim investors requiring a Sharia-compliant investment portfolio. The portfolio will be invested in a variety of domestic and international asset classes. The underlying investments will comply with Shari'ah requirements as prescribed by the Auditing Organisation for Islamic Financial Institutions. The portfolio targets capital growth over the long-term while limiting short term market fluctuations.

Latest investment returns



Economic Commentary: August 2025


Global markets rose in August on the back of robust earnings growth and expectations for US rate cuts, despite an increasingly uncertain tariff environment and increased geopolitical tension.

In the US, inflation rose 0.3% in July with the annual core rate increasing to 2.9% from 2.7% in June. Consumer spending remained robust with an increase of 0.5% in the month despite the higher prices as personal income accelerated 0.4%. Though price pressures from tariffs on imports were mild last month, economists expect the duties to drive up inflation later in the year. It is also anticipated that increasing operating costs for businesses because of tariffs will eventually force employers to lay off workers, putting a damper on their spending. With this backdrop, President Trump's interference in the Federal Reserve's operations intensified as he fired Governor Lisa Cook and further criticised Fed Chair Jerome Powell for his stance on interest rates. Monetary Policy Committee members remain divided over the need for rate cuts citing upside risks to inflation and stable employment as reasons to hold rates at current levels. Recent payroll weaknesses and increased political pressure however seems to have finally forced Jerome Powell's hand, and his dovish comments at the Jackson Hole Symposium suggest that a 0.25% cut at the September meeting is likely. Powell justified his pivot by stating that he viewed tariff inflation as transitory. Meanwhile, a US federal appeals court ruled that tariffs imposed under the International Emergency Economic Powers Act, were illegal, but said they would remain in place until October 14 to allow time for further appeals. This creates further uncertainty for the US' trading partners. While India, hit by a 50% tariff will be rejoicing, China will be weighing its stance in making concessions in ongoing talks. Other countries like Japan and Korea who have made oral deals will likely wait until there is more clarity.

Global markets rose in August, supported by robust earnings growth from US technology companies and a shift in China's market dynamics. The MSCI World Index ended the month with gains of 2.6% thanks to large gains in the Healthcare, Materials, Consumer Discretionary, Communication Services, and Energy sectors. The US' S&P500 ended the month up 1%, while the Russell 2000 index of smaller companies surged 7.1% as smaller companies are expected to benefit more from interest rate cuts. The tech-heavy NASDAQ gained just 0.9% as investors appeared to acknowledge that the valuations of technology stocks remained elevated. Germany's DAX meanwhile dipped 0.7% as economic growth in the region contracted in Q2, while Japan's Nikkei Index surged 7% to a record high driven by a surge in technology companies and renewed optimism over trade with the US. Emerging markets lagged developed markets with gains of 1.2%, as weakness in Argentina and India offset strong gains in Brazil and China. Chinese markets rallied 8% as optimism among retail investors rose and market dynamics shifted from gambling to investing as households shifted some of their enormous wealth into stocks. Global bond markets gained 1.5% as yields on developed market government bonds fell while global property stocks followed bonds higher, recording gains of 4.1%.

In South Africa, inflation increased to 3.5% in July (from 3% in June) as the price of food and non-alcoholic beverages rose along with housing and utilities. While the most recent inflation rate is higher than the SARB's new target of 3% (which has not yet been endorsed by National Treasury), a lower long-term target should over time reduce inflation expectations which in turn would result in lower bond yields. Lower nominal bond yields will reduce borrowing costs for consumers, businesses and government while the savings on debt service costs can be re-invested in the economy to re-energise growth. Meanwhile, the impact of the 30% tariff on SA goods exported to the US is expected to have a not-insignificant impact on GDP, with estimates suggesting a -0.7% impact while the impact on jobs is harder to quantify as some labour-intensive sectors such as citrus farming will be more heavily impacted than others.

Local equity markets gained for a sixth consecutive month as resources stocks surged on the back of higher commodity prices. The All Share Index gained 3.5% for the month driven by an 11.4% gain in resources stocks as gold miners surged on improved profitability thanks to higher prices for the yellow metal. Diversified miners BHP and Anglo American rallied 9% and 6%, respectively, while platinum miners gave back some of the recent gains as palladium prices dropped. Industrial stocks gained 1.1% as strength in Prosus, British American Tobacco and Richemont was offset by continued weakness in domestic retailers. Financials also gained 1.1% as gains from Standard Bank and Capitec were offset by Nedbank's 9% decline. The rand strengthened 3% for the month as the dollar weakened on the increased probability of interest rate cuts in the US. Local bonds gained 0.7% for the month, benefiting from the high running yield, while listed property stocks added 2.8% as the sector benefited from improving confidence.

Investment policy statement


Investments FAQs


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

The fund also allows flexibility in providing our members with the option to elect any of the individual investment portfolio options available.
  • Capital Protector
  • Stable Growth
  • Capital Growth
  • Aggressive Growth
  • Shari’ah

Unitisation is a strategy which allows the fund to calculate your returns on a daily basis

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.

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).

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.

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.

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.

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!

Benefit statements are posted to member twice a year. Should you require a statement in the interim please e-mail your request to info@nationalfund.co.za. You can also register on the Sanlam online platform which allows members to access their benefit and beneficiary information, by clicking on the following link https://cp.sanlam.co.za