The Benchmark Retirement Fund Default Portfolio has the following investment objectives:
The Default Portfolio has a risk profile lower than that of the moderate risk portfolios and as such the expected long-term returns should also be lower.
The Capricorn Enhanced Cash Fund aims to provide a higher return than money market funds while minimizing the chance of capital losses by investing in instruments with a longer duration than most money market fund investments.
The Ninety One Namibia High Income Fund aims to maximise income and grow capital. The fund targets returns in excess of the benchmark, measured over rolling one year periods.
The Sanlam Namibia Absolute Return Fund aims to generating returns in excess of inflation, regardless of market conditions. The portfolio provides risk averse members with exposure to the Sanlam Namibian Inflation Plus Fund with a 100% capital guarantee, accompanied by minimal termination and switching restrictions. This is achieved through extensive use of derivative (hedging) instruments and the declaration of a monthly fully vesting bonus. At termination, the full value of net contributions plus declared bonuses is paid.
The Capricorn Stable Fund is a conservative fund with a low risk profile. The fund aims to provide the investor with a return of 2% above inflation over any 2 year rolling period. This is achieved by investing in a diversified portfolio covering all major asset classes. In order to limit downside risk, the manager applies discretion in terms of the allocation to each asset class from time to time.
The Old Mutual Namibia Absolute Stable Growth Fund offers stability by means of smoothing of returns, whereby a Bonus Smoothing Reserve is maintained to absorb the impact of high peaks and low troughs often experienced in the market, thus reducing short-term volatility. The Fund target returns in excess of inflation over the long term, while significantly reducing the short-term volatility associated with balanced market-linked investments. However due to this smoothing technique used, it has an additional fee over and above the investment management fee, namely a capital charge. Bonuses are declared monthly in advance, gross of investment fees and net of the capital charge.
The Fund aims to return CPI + 5% per annum over a full market cycle with less capital risk than the average balanced fund. The Fund is Regulation 13 compliant and at least 45% is invested in Namibian assets. The Fund invests in a diversified portfolio including cash, capital markets, equities and property, with active asset allocation. Derivatives can be utilised to reduce downside risk when pricing warrants this. The equity selection is active. The Fund is well diversified globally and the offshore allocation and currency exposure is managed actively.
The NAM Coronation Balanced Plus Fund is a unit trust with a moderate risk profile. It is a fully managed investment solution diversified across the various asset classes and sectors. The investment portfolio is a balanced portfolio in compliance with the Regulations of the Namibian Pension Funds Act.
The moderate to low risk Sanlam Namibian Inflation Linked Fund aims to produce above inflation (or real) returns by investing in bonds, other interest bearing securities and equities and attempts to preserve capital over a 12-month rolling period. The fund targets a benchmark return of Namibia Headline inflation plus 4% over a rolling three year period.
The Sanlam Namibia Active Fund’s objective is to provide a higher level of income than a money market portfolio. The fund is actively managed and invests across the income-yielding universe, including fixed-interest securities, corporate and government bonds, preference shares, money-market instruments and listed property. This portfolio does not invest in equities.
The NAM Coronation Balanced Defensive Fund is a balanced fund which utilizes all asset classes, but with a low allocation towards equities (shares). The portfolio aims to provide a reasonable level of current income and seeks to preserve capital over the medium to long-term. The benchmark of this portfolio is the IJG Money Market Index plus 3%. This portfolio is attractive for the pensioner who requires real investment returns but cannot take too much risk on the capital invested.
The Fund aims to achieve steady growth of capital and income through global asset allocation and superior stock selection across all industry sectors.
The low risk Investec High Income Fund aims to maximise income and grow capital. The fund targets returns in excess of the BEASSA 1-3 year All Bond Index, measured over one year periods. The fund invests in high-yielding Namibian and South African fixed-income assets, including government and corporate bonds, fixed deposits and money market instruments.
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The moderate to low risk NAM Coronation Capital Plus Fund aims to provide a real return in excess of inflation as well as to preserve capital over a rolling 12 month period. The fund aims to achieve a yield benchmarked to the Namibian Consumer Price Index plus 4% annually.
The moderate to low risk MG Inflation Plus Fund aims to produce above inflation (or real) returns by investing in inflation linked bonds, other interest bearing securities and equities. The fund targets a benchmark return of Namibia Headline inflation plus 4% over a rolling three year period.
The moderate risk Standard Bank Namibia Managed Fund is a prudential fund, which seeks to generate long-term capital growth with rising levels of income. The fund is a balanced portfolio providing opportunities in all major asset classes, equities, bonds, cash and offshore investments.
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The Old Mutual Namibia Profile Pinnacle Fund, a moderate risk fund, invests in equities, bonds and property.
The moderate risk Sanlam Namibia Balanced Fund invests in a wide spectrum of investments in the equity, bond, money and property markets to maximise total returns over the long term. It complies with Regulation 28 and may not have more than a 75% exposure to equities.
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Ninety One Namibia Managed Fund, a moderate risk fund, aims to provide investors with stable growth of capital and returns well in excess of the fund’s peer group average, measured over three to five year periods. The fund invests in Namibian and South African equity, bonds and money market instruments, as well as international equity and fixed interest investments.
{jcomments off}The M&G Balanced Fund, a moderate risk fund, aims to achieve steady growth of capital income through global asset allocation and superior stock selection across all industry sectors. The fund conforms to the regulations governing retirement investments.
The Capricorn Investment Fund is a money market fund with a very low risk profile. The fund’s main aim is to provide a stable and secure return to the conservative investor, who does not wish to be affected by the volatility normally associated with the equity, property and international markets. The fund’s return will adjust in accordance with the changes in short term interest rates. The fund is highly liquid and available on demand. The fund’s benchmark is the Bank of Namibia 7 day repo Rate.
{jcomments off}The Investment Solutions Namibia Balanced Growth Fund achieves a moderate risk profile by diversifying across diferent regions in Namibia, South Africa and globally diversified asset classes, investment managers and investment styles. It aims to consistently yield returns higher than its benchmark on a three-year rolling basis at reduced volatility.
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{jcomments off}The Allan Gray Namibia Balanced Fund is a segregated investment portfolio with a moderate risk profile. It is designed specifically for Namibian retirement funds. Its main aim is to earn a higher total rate of return than that of the average Namibian retirement fund investment manager over the long term. The investment portfolio is a balanced portfolio in compliance with the Regulations of the Namibian Pension Funds Act.
The fund fact sheet of the Allan Gray Namibia Balanced Unit Trust Fund available for download is a proxy for the investment portfolio make-up and performance of the segregated Allan Gray Balanced Fund that members of the Fund have chosen to invest in.