Investment strategy
Lifestage model
Legal Provident Fund offers members either a lifestage model 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 model 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 retirement.

THE UNDERLYING PORTFOLIOS USED ARE AS FOLLOWS:
PortfolioRisk profileAim
AFI PerformerHigh / MediumTo blend investment managers to achieve superior returns at average risk.
AFI ConserverMedium / LowManaged to conservative investment parameters with a lower allocation to equities and a higher allocation to bonds and cash.
AFI BankerNoneTo provide an investment return above the average of money –market portfolios.

The Lifestage Model table shows the full portfolio structure across the lifestage model effective from 16 April 2020, comprising of different allocations to Alexander Forbes Investments’ Performer, Conserver and Banker. This table shows the “phase-down” methodology towards lower risk portfolios in the lead-up to retirement:

The Lifestage Model table shows the full portfolio structure across the lifestage model effective from 16 April 2020, comprising of different allocations to Alexander Forbes Investments’ Performer, Conserver and Banker. This table shows the “phase-down” methodology towards lower risk portfolios in the lead-up to retirement:

MEMBER INVESTMENT CHOICE
Members may choose one or a combination of the following portfolios in structuring their own investment strategy:

PortfolioRisk profileAim
AFI PerformerHigh / MediumTo blend investment managers to achieve superior returns at average risk.
AFI Conserver
Medium / LowManaged to conservative investment parameters with a lower allocation to equities and a higher allocation to bonds and cash.
AFI BankerNoneTo provide an investment return above the average of money –market portfolios.

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@aforbes.co.za.

Members may choose one or a combination of the following portfolios in structuring their own investment strategy:
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@aforbes.co.za.
LIFESTAGE MODEL
AgePortfolioAllocation
18 to 55AFI Performer100%
56AFI Performer Conserver
70% - 30%
57AFI Performer Conserver
60% - 40%
58AFI Performer Conserver
50% - 50%
59AFI Performer Conserver
40% - 60%
60AFI Performer Conserver
30% - 70%
61AFI Performer Conserver
20% - 80%
62AFI Performer Conserver
10% - 90%
63Conserver AFI Banker
90% - 10%
64 onwardsConserver AFI Banker
67% - 33%

Investment switches between portfolios are automatic and will take place at the month-end of the month in which a member’s birthday occurs. Member’s existing retirement savings as well as his/her future contributions will be invested in accordance with the default Lifestage model.

Investment switches between portfolios are automatic and will take place at the month-end of the month in which a member’s birthday occurs. Member’s existing retirement savings as well as his/her future contributions will be invested in accordance with the default Lifestage model.