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: December 2025

Despite modest gains from global markets in December, the year ended with healthy gains across developed and emerging markets as AI momentum continued and economic growth stabilised despite ongoing fiscal, political and geo-political headwinds.

In the US, inflation came in at 2.7% year-on-year in November, slightly lower than expected but likely distorted by missing data. Core PCE inflation is expected to hover between 2% and 3% for 2026 with forecasts varying widely as the impact of tariff pass-through on prices is largely unknown. President Trump’s crackdown in immigration may contribute to further pressure on wages in sectors where many immigrants work, but this is likely to be tempered by a slowing of house price inflation. Based on cooling inflation and a weakening labour market, the Federal Reserve decided to lower interest rates by 0.25% at the December Monetary Policy Committee meeting. Voting was however not unanimous with two members voting for no cuts. Expectations for multiple rate cuts in 2026 have been dampened as many members are comfortable with the current level of interest rates. That said, Jerome Powell’s second term as Chairman comes to an end in June and he is likely to be replaced by National Economic Council Director Kevin Hassett who is viewed as someone who would do Trump’s bidding. Trump has often criticised Powell (and threatened to fire him) for keeping interest rates unnecessarily high. Meanwhile, unofficial data on the labour market suggests that employers are reluctant to add to payrolls or to lay off large numbers of workers. However, recent signs point to heavier jobs reductions to come, with announced layoffs through November topping 1.1 million.

Global markets ended the year on a positive note as gains in Germany and Japan offset lacklustre returns from the US. The MSCI World Index ended the month with a gain of 0.8% (+3% for Q4, +21% for the year) as strength in financials, industrials, and materials stocks offset losses in healthcare, communication services, and consumer staples stocks. The US’ S&P500 lagged global markets with a gain of just 0.1% (+3% for Q4, +18% for the year) as the prospects for further interest rate cuts dimmed, while the tech-heavy NASDAQ ended the month with losses of 0.7% as investors remained cautious on prospective returns for technology companies given the high current valuations. Despite recent weakness, US markets have delivered double-digit gains for each of the past three years. Emerging markets meanwhile rallied 3% in December (+5% for Q4, +34% for the year), as large gains in South Korea, South Africa, and Peru offset small losses in Brazil and China. Global bond markets gained 0.3% (+0.2% for Q4, +8% for the year) as yields on developed market government bonds dipped slightly, while global property stocks shed 1.3% (-0.8% for Q4, +9% for the year) on easing rate cut expectations.

In South Africa, inflation dipped slightly to 3.5% year-on-year in November, from 3.6% in October, while core inflation printed at 3.2% year-on-year, up from October’s 3.1%. Growth meanwhile moderated in Q3, slowing to 0.5% from 0.9% in the previous quarter. While growth has moderated, the annual growth rate rose to 2.1%, signalling gradual improvement and offering cautious optimism. Despite the softer headline number, industry performance was broadly constructive with most major sectors contributing positively, including mining and construction, both of which have faced pressure in recent quarters. The improvement in gross fixed capital formation, which increased by 1.6% after three consecutive quarters of contraction, is encouraging. With SA’s investment ratio at 14% of GDP, compared to 24% a decade ago, sustained improvement in this area remains essential for long-term economic progress. Meanwhile, thanks largely to commodity exports, the nation recorded a trade surplus of R37.7bn in November, more than double October’s R15bn surplus.

Local equity markets gained for a tenth consecutive month as a continued surge in commodity shares and improved sentiment towards SA Inc. shares drove the bourse to new highs. The All Share Index gained 4.6% for the month (+8% for Q4, +42% for the year), as a 5% gain in resources stocks (+10% for Q4, +126% for the year) and a 7% gain in financials (+19% for Q4, +27% for the year) offset relative weakness in industrials. Industrials stocks gained just 2% as losses in Prosus, British American Tobacco, and retailers Spar and Mr Price weighed on gains in construction and hospitality stocks. The rand strengthened 3% for the month (4% for Q4, 12% for the year) as the demand for commodity stocks drove foreign inflows. Local bonds gained 2.7% for the month (+9% for Q4, +24% for the year) as bond yields continued declining on the back of a stable inflation outlook. Listed property stocks were flat for the month but gained 16% for Q4 and 31% for the year.