Message From Chairperson

Greetings All

Even though there was a lot of volatility with local and global equity markets during the Fund’s financial year ending 30 June 2024, the Fund’s investments performed very well with most of the Fund’s investments delivering returns in the region of three to six percent above inflation. In terms of the Fund’s private market investments, the Fund is almost fully invested in line with its targets it set out at the beginning of the year. The investment returns earned on the Fund continues to perform well with regards to its peers and its inflation targets. Looking ahead from 30 June 2024, the next three months to September 2024 provided exceptional returns in the region of 6% effective for Fund members invested in most of the Fund’s growth portfolios.

The Fund has successfully moved the administration from Alexforbes to Fairsure. We have previously explained the rationale to you regarding this move, being the Fund’s strategic aim of performing self-administration and thereby initially partnering with Fairsure to assist the Fund on this journey. We will continue to engage with you regarding the progress on this front.

Many of you have already made use of the two-pot system by making a claim against your saving pot. The two-pot withdrawals did come with it’s challenges, not only for the Fund, but for the industry as a whole. Although the Trustees had planned for two-pot claims with effect from 1 September 2024, the volume of claims was much more that the Trustees of your Fund, and in that case the industry as a whole, had expected. The Trustees and the Front Office acted quickly to assist in ensuring that member two pot claims were paid as soon as possible. The volumes of claims highlighted to the Trustees the pressures faced by our members, however we encourage you in future to only make claims against your saving pot for emergencies as this eventually does have a large impact on your final retirement benefit should you keep dipping into your savings.

Following the member elections held this year, we thank Mr TN Naidoo, Mr P Babu-Dayal and Mr X Gabela for their contribution to the Board and who were not re-elected. We also say congratulations to the three new trustees Mr SM Ngubane, Mr S Mbatha and Mr S Ntuli who were elected by you the members with effect from 1 July 2024.

Click below for the full Trustee report