The Allan Gray Umbrella Retirement Fund offers two trustee-approved default investment strategies:
Your employer has chosen one of these options for you and your contributions will automatically be invested into this default investment strategy. You can opt out of their chosen strategy if you want to. You must then choose from one of the options described below.
The default investment strategies are designed to automatically transition your retirement savings into portfolios that are appropriate for the number of years you have until you reach retirement (your investment horizon).
Younger members, who have a longer savings time horizon, are invested in portfolios with greater exposure to growth assets, which will provide the best opportunity for their assets to grow over the long term, and have ample time to recover if there is downturn.
Members who are closer to retirement are invested in lower-risk portfolios to reduce the risk of permanently losing money.
The table explains this process in more detail. No action is required from you to benefit from this approach.
You can opt out of your employer’s chosen default investment strategy if you want to. You must then choose from one of the options described below.
You can also opt out of life-staging, by completing and returning the Umbrella Retirement Fund member information update form, if you do not want your retirement savings automatically transitioned from one portfolio to another in the three years preceding retirement.
You can opt back into the default investment strategy and life-staging at any point in time.
Please refer to the latest Member information booklet for more detailed information.