
Lifestage Portfolio
Legal Provident Fund offers members either a Lifestage portfolio default strategy or individual member investment choice portfolios. The Fund’s assets are managed by Alexander Forbes Investments. For more information about Alexander Forbes Investments or the Fund’s portfolios please visit www.alexanderforbesinvestments.co.za
Not all members are comfortable with making investment choices. The Lifestage portfolio uses a range of underlying portfolios and members are invested in a portfolio or a combination of portfolios based on their number of years to normal retirement age (being 65 years).
The underlying portfolios used are as follows:
The Lifestage portfolio graph shows the full portfolio structure effective from January 2023. Allocations are made to the Alexander Forbes Investments’ Performer, Conserver and Banker depending on the numbers of years to normal retirement age. The graph shows the “phase-down” methodology to the lower risk portfolios in the lead-up to normal retirement age.
LIFESTAGE portfolio
Investment switches between these portfolios are automatic and will take place on a quarterly basis, five years before a member’s normal retirement age of 65 years. Member’s existing retirement savings as well as his/her future contributions will be invested in accordance with the default Lifestage portfolio.
Members may choose one or a combination of the following portfolios in structuring their own investment strategy:
Portfolio | Risk Profile | Aim |
---|---|---|
AFI Performer | High / Medium | Performer is a moderate- to high-risk, multi-asset portfolio that aims to outperform the Alexander Forbes Investable Global Large Manager Watch™ Median. In addition, the portfolio targets CPI inflation-beating returns of CPI +5% over rolling five-year periods. The portfolio’s asset allocation is dynamic to allow it to competitively participate in market recoveries and protect in falling markets. The portfolio blends diversified strategies including alternatives, both locally and offshore, to manage risk and enhance performance potential by capturing different sources of returns. |
AFI Conserver | Medium / Low | This portfolio is managed within what are regarded to be conservative investment parameters. A lower allocation to equities allows for a higher allocation to local and global bonds and cash. The global component is invested in the Conserver Global portfolio and has an allocation to global equities, bonds, cash and alternative investments. |
AFI Banker | None | The specialist asset managers selected for this portfolio may invest in money market instruments and cash. Money market instruments are liquid financial instruments that basically simulate cash, but often give a higher return. The managers are given specific mandates aimed at providing an investment return above the average of money market portfolios, while maintaining a high degree of liquidity and capital preservation. They may only be exposed to institutions with an A1 (F1) credit rating or better. |
Portfolio | Risk profile | Aim |
---|---|---|
AFI Accelerator | High | The Accelerator Portfolio is an aggressive multi-asset class portfolio that aims to achieve capital growth above inflation over the long term by having a consistently high allocation to growth assets. To reach this objective, Alexander Forbes Investments allocates to a variety of local and global assets including equities, bonds and property. The assets within each asset class are managed by select investment managers that have been carefully blended by Alexander Forbes Investments using proprietary systems. The portfolio allows for tactical asset‑allocation (TAA) strategies, which involves adjusting the portfolio’s strategic asset allocation in the short to medium term (between three and 12 months) based on the prevailing and expected market environment. The portfolio also has exposure to Africa at a weighting of 5%. |
AFI Shari'ah High Growth | High / Medium | A Shari'ah compliant portfolio designed to grow an investor’s savings over the long term (six years or more). This portfolio is invested in both local and international types of investments that are Shari’ah complaint, such as shares, sukuk and listed property. Asset managers who are specialists in a particular asset class are appointed to invest assets within their area of expertise. This portfolio has a low chance of the value of one’s investment going down over the long term. The value of your investment will go up and down in the short term due to the exclusions required by Islamic law. This means that there are fewer shares and other types of assets available to invest in, which may result in the portfolio being more volatile over the short term. |
The investment strategy chosen by the member will not change unless the member chooses to complete a switch form and changes their strategy. Members may switch between portfolios by following the procedures adopted by the Fund administrators (download switch form).
All completed switch forms must be submitted to zzswitches@alexforbes.com