Our
INVESTMENT STRATEGY
- A liability driven investment (LDI) approach is followed, which addresses interest rate risk, inflation risk, mortality risk and longevity risk combined with a multi-portfolio “life stage” approach with each portfolio having different return objectives and risk characteristics.
- Asset liability modelling is used to set the asset allocation for each portfolio, a process designed to achieve optimal sustainable long-term investment returns at an acceptable level of risk and which is cognisant of our pay-out obligations.
- Risk is managed through position sizing and a well-diversified multi-manager investment structure spread across geographies, asset classes and within asset classes.
- Investments are approached in a responsible manner, incorporating sustainability considerations.
- Investment managers are monitored dynamically, including comparison to benchmarks and peer groups.
- Regulation 28 compliant at member and Fund level.
INVESTMENT PORTFOLIOS
Portfolio details are provided through the following links.
MEMBER INVESTMENT CHOICE (MIC)
The Fund provides members with two investment avenues:
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Life Stage Model
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Member Investment Choice
The Life Stage Model provides for automatic switching of members’ retirement savings from one investment portfolio to the next, as they approach Normal Retirement Age (NRA). Three (3) investment portfolios are utilised in this model and include the Wealth Builder Portfolio (an aggressive portfolio for younger members up to 12 years before NRA), the Inflation Protector Portfolio (a moderate portfolio for members who have less than 12 but more than 5 years to NRA) and the Pension Protector Portfolio (a conservative portfolio for members who have less than 5 years to retirement).
Member Investment Choice allows members who elect not to follow the Life Stage Model, to switch between investment portfolios daily (daily unit pricing). The three Life Stage portfolios, a Money Market and Shari’ah portfolio are available and splitting between portfolios is also allowed.
FEES & COSTS
The Fund’s self-administered business model is beneficial to members and pensioners as only actual costs incurred by the Fund are recovered. A “Total Cost” recovery model, that includes fund entity, administration and asset management costs, is followed to promote transparency and fairness and this is recovered from members’ Fund Credits, the Pensioner Pool and Risk Benefits Pool on a monthly basis. No other fees or charges are levied.
Investment returns, communicated monthly, reflect net returns after Total Retirement Savings Charges have been deducted.
Total Retirement Savings Charges, inclusive of indirect/implicit fees and charges, are communicated monthly through Portfolio Fact Sheets published by the Fund.
