Choosing your own portfolio

The extent of your own choice is as follows:

You may choose to invest in any of the portfolios listed below, in any proportion you want at any age. If you make such a choice you will not be automatically transitioned from your current portfolio to the Stable Portfolio and Money Market Portfolio from your transition birthday. In other words you will be opting out of the default Life Stage model.

You will need to inform Alexander Forbes of this election (see Investment Choice Option Form). Please note the “Declaration by Member” and “Important notes” when completing this form.

You should be careful in using an own choice portfolio in an attempt to “time the market”. There is strong evidence that professional investment managers are not able to time the market correctly on a consistent basis (see Common Mistakes).

Portfolios available 

The Portfolios available if you want to opt out of the default Life Stage Model, or if you elect to invest your money in any of, or combination of, the:

  • Market-Linked Portfolio, 
  • Stable Portfolio, 
  • Money Market Portfolio, 
  • Shari”ah Compliant Portfolio

Range of choice you have 

You may make a separate election of how you want to invest your Member Individual Account and how you would like to invest your on-going retirement saving contributions. For example, you may elect to invest your Member Individual Account in the Market-Linked Portfolio and your on-going retirement saving contributions in the Stable Portfolio.

Investment switching 

What switching is

If you make a voluntary choice to change part or all of his/her retirement Fund investment from one portfolio to another, this is a switch. It is voluntary, and requires your specific instruction. 

Restrictions applicable on switching between the portfolios

There are no restrictions on how you can allocate your money between the portfolios. For example you can invest your future contributions differently from your accumulated retirement savings.  

When you can switch

You can switch monthly. 

What you must do

You will need to complete a switching form. These forms are available from the Human Capital Department.

To whom instruction must be sent

The completed switching form must be sent to Alexander Forbes by following the instructions on the switch form. It is your responsibility to ensure that Alexander Forbes receives this form.  

The deadlines applicable

You have the facility to switch on a monthly basis. You must inform the Fund by the 10th of the month if you want a switch to be implemented on the first day of the next month. 

After the instruction are made

The administrator will transfer the money between the investment managers, and will amend your Fund record to allocate your retirement savings to your new portfolio(s). 

How you will know whether your instruction has been carried out

After the switch the administrator will send a confirmation to you to confirm the switches that have been carried out. The switching transaction is also available to you on the Alexander Forbes online Facility.

The cost of switching

In each financial year you will be entitled to one free switch.

You will be charged for any additional switch in the 12-month period. This fee will be deducted from your retirement savings at the time of the switch.

Investment penalties applicable if you switch

There are no penalties on switching out of any of the portfolios. However, on switching out you will receive the market value of your investment in the portfolio at the date of the switch. (Bear in mind that the market value may be less at the switching date than the total amount invested, if the market is at a low point).  

Opting back into the Life Stage portfolios       

If you at any time make a positive election to invest differently from the Life Stage portfolio, then in future you will always need to advise the Fund if you want to switch portfolios in future. 

You always have the option to return to being a Life Stage member, but you will have to advise the Fund in writing.