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 2026

The global market environment in August was defined by a resilient equity rally that capped off monthly gains despite severe late-month volatility triggered by reignited Middle East tensions and hawkish central bank messaging.

US economic growth for the second quarter was finalised and confirmed at an annualised rate of 1.5%. Projections for 2026 remained anchored near 2%, significantly bolstered by AI infrastructure investments and strong consumer spending, which was revised upward to 3.4%. Headline inflation rose 3.4% in July, down marginally from 3.5% in June, as the continued decline in energy prices offset small increases in the price of shelter. The Fed’s preferred inflation measure, core PCE, came in at 3.3% year-on-year, confirming that price pressures remain well above the central bank's targets. Consumer stress too remained elevated as national gasoline prices averaged over $4 per gallon for the first time in August. At the annual Jackson Hole Symposium, newly appointed Federal Reserve Chair Kevin Warsh delivered a surprisingly stern message, emphasizing that the Fed remains fully committed to its 2% target and warning that further policy tightening is highly possible if inflation does not cool rapidly. Following Warsh's remarks and sticky inflation data, financial markets aggressively re-priced their expectations. By late August, the probability of a September Fed interest rate hike surged to roughly 60% - a sharp reversal from the rate-cut optimism seen earlier this year. Following an unexpected drop of 23,000 jobs in July, high-frequency private-sector indicators and forward surveys signalled that the labour market began stabilizing in August. Consensus forecasts point to a modest payroll expansion of 50,000 to 55,000 jobs in August.

Global equity market leadership broadened in August as, despite uncertainty in the Middle East and fiscal concerns in the US, corporate earnings, AI-related investment and resilient growth continued to support risk assets. The MSCI World Index gained 2.6% for the month as a 6.5% gain in information technology stocks and a 5% gain in healthcare stocks offset a decline in communication services and consumer staples stocks. Energy stocks gained 4.5% as oil prices remained close to $90 per barrel for much of the month on renewed attacks in the Middle East. US markets performed in line with the diversified global market index with the S&P500 ending up 2.7% for the month and the NASDAQ gaining 4.2% thanks to large gains in semiconductor stocks. With earnings season mostly over, 86% of companies reported a positive EPS surprise with the blended growth rate of 52% being the highest growth rate reported since Q2 2021. The Magnificent 7 was partly responsible for the surge in earnings as that cohort saw earnings increase by 118.5%, although much of that increase was due to Amazon and Alphabet reporting substantial increases in “other income” which includes unrealised gains on holdings in companies like Anthropic. On a non-GAAP basis, aggregate earnings grew a more modest 33.8% which would still mark the seventh consecutive quarter of double-digit earnings growth. Emerging markets gained 3.4% in August as large gains in South Africa, Turkey, South Korea and Taiwan offset losses in South America. Global bonds gained 0.5% as yields were relatively stable, while global property stocks fell 2.9% for the month as the uncertain global growth environment and higher Treasury yields towards month end weighed on the sector.

In South Africa, major economic releases in August revealed slowing inflation, worsening unemployment and stagnant manufacturing. Inflation surprisingly declined to 4.3% in July, from 5% in June, as lower oil prices drove transport inflation lower, and the price of food and beverages also fell. With inflation declining, the SARB has some leeway to pause interest rate hikes to help revive an anaemic economy. July saw the fourth monthly contraction in manufacturing PMI, driven by a sharp drop in business activity and weak new sales orders. Within this backdrop, it came as no surprise that the official unemployment rate increased to 33.6% in the second quarter of 2026 as structural employment challenges, especially regarding youth unemployment, underscore a clear "two-tier economy" where corporate and export sectors are rebounding while household finances remain under severe pressure. On a positive note, the trade surplus widened to R20.1bn in July, thanks to an increase in exports of vehicles, manganese ore and coal, and a decrease in the imports of oil and smartphones.

The local equity market outperformed global developed and emerging markets in August thanks to large gains from resources stocks. The All Share Index gained 4.6% for the month, driven by a 26% gain in resources stocks as gold and platinum mining companies, energy company Thungela, and paper producer Sappi posted large gains. Industrials declined 6% as large losses in Naspers, British American Tobacco and MTN (- 9%, -11%, and 8% respectively) were compounded by double-digit losses in retailers. Financials declined 1.4% as banks and insurers fell. The rand strengthened sharply on the back of increased demand for high-yielding domestic bonds and commodity stocks. The currency briefly dipped below R16 to the dollar to end the month at R16.11, for a gain of 3% for the month. The yield on the 10yr government bond ended the month at 8.75%, resulting in a gain of 0.7% for the All Bond Index as investors weighed up low recent inflation with higher real yields globally. Listed property stocks declined 3.8% for the month, following global property markets lower as investors worried that stubborn inflation globally would translate into higher funding costs for longer.