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: September 2025


Global markets rose in September as the US cut interest rates, and excitement grew around the prospective returns from investments into Artificial Intelligence.

In the US, inflation (measured by core private consumption expenditure) rose 0.2% in August with the annual rate remaining at 2.9%. Given robust consumer spending, Q2 GDP was revised upwards from 3.3% to 3.8% - the fastest rate of growth since Q3 2023. The Federal Reserve however voted to cut interest rates by 0.25% with market participants expecting two further rate cuts this year. Fed Chairman Jerome Powell said that the decision was largely driven by the slowdown in US job growth and downside risks to employment. While the economy appears strong and consumer spending (which accounts for 70% of economic growth) remains high, other leading indicators, such as heavy truck sales and sales of carboard boxes, suggest that a slowdown in activity is imminent. Historically every major recession has been preceded by a sharp drop in truck sales. Consumer confidence has also declined as consumers face increased job uncertainty and continued high prices for goods and services, including housing. The ongoing trade war (Trump recently imposed tariffs on imported furniture) continues to create an environment of uncertainty for business and consumers, and it is expected that tariff pass-through (how much of the cost increases are passed onto the consumer) will increase from the current 20% to c. 50% as companies cannot continue to absorb the higher costs.

Global markets rose in September, supported by continued excitement about the impact of AI on innovation and growth. The MSCI World Index ended the month with gains of 3.2% as large gains in the Technology, Communication Services and Consumer Discretionary sectors offset weakness in Consumer Staples and Energy stocks. The US' S&P500 ended the month up 3.7%, while the tech-heavy NASDAQ gained 5.5% to record the best September since 2010 as exuberance around AI-investment surged. Germany's DAX meanwhile dipped 0.1% as the industrials-heavy market lagged technology-biased peers, while Japan's Nikkei Index surged 5.9%. Emerging markets gained 7.2%, as strong gains in South Africa, Mexico, South Korea and China offset losses in Argentina. Global bond markets gained 0.7% as yields on developed market government bonds declined slightly, while global property stocks followed bonds higher, recording gains of 1%.

In South Africa, inflation declined to 3.3% in July (from 3.5% in June) as lower food and fuel costs alleviated pressure from rising housing and utilities costs. While inflation remained low, the SARB voted to keep interest rates steady citing heightened global uncertainty and persistent domestic vulnerabilities, including new US tariffs impacting the fragile economy. The bank noted that inflation is expected to climb in the coming months, partly due to higher electricity price inflation. GDP surprisingly grew by 0.8% in Q2 2025, accelerating from a 0.1% expansion in Q1 on the back of increased household consumption, a rebound in manufacturing and mining activity, and growth in the trade, catering, and accommodation industries. However, the annual growth rate remains a pedestrian 0.6% and while a temporary acceleration from high commodity prices is expected, challenges to sustained growth, such as high unemployment and crumbling transport infrastructure, remain.

Local equity markets gained for a seventh consecutive month as the rally in resources stocks continued. The All Share Index surged 6.6% for the month, driven by a 28.1% gain in resources stocks as platinum prices hit multi-year highs and gold prices hit all-time highs. Platinum miner Valterra surged 52%, gold miner DRD gained 51%, while diversified miners Anglo American and Glencore rallied 19% and 14%, respectively. Industrial stocks gained just 1.7% as strength in Naspers and Richemont was offset by weakness in British American Tobacco and domestic retailers. Financials declined 1.6% as small gains in banks were offset by large losses in insurers. The rand strengthened 2.3% for the month as the dollar weakened on the back of US rate cuts and the looming government shutdown. Local bonds gained 3.3% as foreign inflows increased on the back of an adjustment to the country weights in a major emerging market bond index and the expectation for South Africa to be removed from the FATF grey list. Listed property stocks however declined 1% as the investors took profits after strong recent return.

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