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: May 2026

Global investors appeared to price in a deal being reached in the Middle East, adopting a heavy risk-on position supported by lower energy prices, upward revisions to global growth forecasts, and a surge in AI-related corporate profitability.

US economic growth in Q1 was revised downwards from 2% annualised to 1.6%, reflecting slower consumer spending and a reduction in inventory. With April’s rise in consumer spending attributed to outsized tax payments, spending remains on a downward trend as real disposable income growth and consumer sentiment remain weak. Despite a surging stock market and stable house prices, the US savings rate has declined to 2.6%, the lowest level since 2008 and well below the 5.7% long-term average, supporting the view that consumer spending is likely to slow as higher prices of essentials impact household budgets. Americans are increasingly relying on credit to get by as wage growth began to lag inflation in April, and many consumers are tapping into retirement savings to fund expenses. Headline inflation rose 3.8% in April, with a rise in energy prices accounting for more than 40% of the gain. Core inflation, the Fed’s preferred measure, also rose as the cost of shelter, apparel, furniture and travel rose. The labour market meanwhile remains on a solid footing but is experiencing a gradual cooling. New job creation has been limited with monthly payroll gains averaging 55,000 over the past six months. The unemployment rate has however remained stable at 4.3%, partly due to the sharp drop in immigration, but is rising for some groups, notably recent graduates who face competition from AI. The new Chair of the Federal Reserve, Kevin Warsh, sworn in on 22 May, assumed the chairmanship against a backdrop of political pressure and heightened concern over institutional independence. President Trump expects Warsh to be more amenable to rate cuts, but inflation driven by disruptions to energy supplies could constrain his ability to act.

Global equity markets surged in May, with many recording new highs, as heavy spending on AI infrastructure and growing earnings expectations boost stock prices. The MSCI World Index gained 4.6% as a 16% gain in information technology stocks offset declines in energy and consumer staples stocks. US markets outperformed as large gains in technology stocks drove the S&P500 up 5.3% and the NASDAQ up 10.6%. Healthcare and Consumer Discretionary stocks lagged with gains of just 2.5%, while energy stocks retreated 5.6% as the oil price shed more than 20% from its peak. With most of the companies in the S&P500 having reported Q1 results, 85% beat expectations and the blended earnings growth rate of 28.6% marks the highest growth rate recorded since Q4 2021. Big tech and AI-infrastructure bellwethers like Alphabet, Amazon, Meta, and Dell were the largest contributors to the surge in earnings growth. With significant technology exposure, Japan’s Nikkei also participated in the blistering rally, recording a gain of 11.9% as SoftBank – Japan's primary proxy for global AI enthusiasm – surged 38%. Emerging markets also benefited from the AI euphoria, posting a gain of 9.7% in May as South Korean and Taiwanese stocks – collectively over 40% of the index – surged to new highs on the back of further gains in semi-conductor stocks TSMC, Samsung and SK Hynix. SK Hynix gained 58% in May and is up over 1000% over the past year as memory pricing surged. Global bonds gained 0.3% as yields on the US 10yr Treasury rose slightly while EM yields dipped, and global property stocks declined 0.3% on the back of higher USD funding costs.

In South Africa, major economic releases in May revealed accelerating inflation pressures and worsening unemployment, prompting a pre- emptive interest rate hike by the central bank. Inflation jumped to 4% in April – the highest in 20 months – driven by massive fuel hikes and an increase in electricity tariffs. Headline PPI more than doubled to 4.8% year-on-year, reflecting higher manufacturing input costs. The unemployment rate meanwhile jumped to 32.7% in Q1 as the economy shed 345,000 jobs. On the positive side, mining production increased 0.6% in Q1 and the trade balance posted a surplus of R15.2bn in April as the value of exports of mineral products increased sharply. Retail sales ticked up to 2.6% year-on-year in March but are expected to dip as higher fuel prices in April would likely have impacted spending. With inflation now firmly above the SARB’s newly adopted 3% target, the central bank was forced to raise interest rates by 0.25% at the MPC’s May meeting and may need to raise rates further as the risk of second-round price pressures rises.

The local equity market lagged global developed and emerging markets in May as investors rotated out of commodity stocks into global technology stocks. The All Share Index declined 0.3% in the month, driven by a 1.4% decline in Resources stocks as large losses in gold and platinum miners, as well as energy company Sasol and paper producer Sappi offset gains in diversified miners. Industrials shed 0.9% as meaningful declines in Naspers and Prosus and retailers Spar and Foschini (the latter down 25% and 19%, respectively) offset gains in British American Tobacco, AB-InBev, and MTN. Financials gained 1.1% thanks to strength in Capitec, Alexander Forbes and Discovery. The rand strengthened towards month end as a resolution to the war appeared imminent. The currency ended the month at R16.25, recording a gain of 2.7%. The yield on the 10yr government bond followed the currency lower, ending the month at 8.4%, driving a gain of 2.9% for the All Bond Index for the month. Listed property stocks however added just 0.6% as investors priced in higher funding rates after the MPC decision.