Market Related Portfolio
Contributions for members who
are under 55 years of age are automatically invested in the Fund’s Main
Portfolio. When you are within five years of normal retirement you are given
a choice about how you would like your Fund Credit to be invested.
There is a
default lifestage model that applies if you do not make a choice.
These portfolios are termed Market Related for the reason that the returns
move directly in line with movements in the market indices.
1. What is the Market Related Portfolio?
If they see value in doing so, the asset managers are permitted to invest up to 75% of the Fund’s assets in shares. As shares are the most volatile asset class, negative returns in some years are possible.
The portfolio is run by three asset managers who have been appointed with “full discretion” mandates. The managers are required to maximise your expected fund credit on retirement, taking the relevant risks into consideration.
The managers are expected to select and weight the various asset classes at the appropriate times to optimise the returns in the changing market conditions.
The trustees have appointed three asset managers with different investment styles that complement each other. They did this to achieve a superior combined short-term and medium to long term performance.
1. Foord Asset Management
2. Allan Gray Asset Management
3. Investec Asset Management
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