FUND INVESTMENTS
Investments
The Fund is a defined contribution retirement fund meaning that the rate of investment return earned on the member’s retirement savings has a direct impact on the benefit the member receives. Members are thus carrying the full investment risk and opportunity and the investment strategy for their retirement savings is therefore critical.
Member Investment Choice
Members who are younger than age 50 are invested in the Fund’s Market Portfolio by default. Members aged 50 and older have the option to invest in either in the Market Portfolio or in the Capital Protection Portfolio. The Capital Protection Portfolio has two investment portfolios to choose from.
Investment switches can be made on 1 June and 1 October of each year. Members may not split their Fund Credit or contributions between the available portfolios. The Capital Protection Portfolio is an irrevocable option; once a member moves into it, they cannot switch back to the Market Portfolio.
At age 55, members are switched to the Capital Protection Portfolio by default, unless they elect to remain invested in the Market Portfolio.
While the Trustees encourage members to consider the long-term nature of retirement savings, they appreciate that members’ risk tolerance and investment objectives are different, hence the reason for investment options for members who closer to retirement.
Living Annuity Pensioners
Living Annuity Pensioners are invested in the Living Annuity Portfolio, which is constructed by the Trustees to achieve a return of inflation (NCPI) + 3.5% per annum over rolling three-year periods. The Living Annuity Portfolio is a combination of a market-linked portfolio and a more conservative portfolio.
Members are strongly advised to seek financial advice from a duly licensed financial advisor before making any investment choice.