The Fund offers members a single default portfolio that seeks to deliver a real return of 4.5% above inflation (CPI + 4.5%) over any consecutive five-year period at a minimum level of risk. This target level of return is the outcome of a stochastic liability-driven modelling exercise to determine the most appropriate level of return target suitable for the membership profile of the Fund.
The Fund utilises a Core-Satellite approach to meet the investment objective of CPI + 4.5% over any consecutive five-year period. The total Fund is managed as a combination of a Core Portfolio (Core) and a Market Linked Portfolio (Satellite). The strategic weighting between the Core and the Satellite is 40% and 60% respectively:
The Fund has outperformed all industry peers (with the same investment objectives) over three, five and 10 years respectively. The Fund also stacks up favourably over one year as it remains in the top three Funds when compared to peers.
Most importantly, we have achieved these outstanding results with a transformed value chain of service providers demonstrating that transformation makes good business sense!
Asset Consultant – Majority black-owned managed and controlled (Level 1 contributor)
Asset Managers – 35% exposure to majority black-owned, managed and controlled (inclusive of black women participation)
As an asset owner, we understand that the power of reform lies with us. Therefore, we continuously review our supply chain and engage our service providers through the setting of transformation targets and ongoing monitoring.