KZNCIPF
investments
The Trustees have a statutory and fiduciary duty to invest the Fund’s assets in a responsible and prudent manner in those asset types such that the long term overall objective of the Fund can be achieved. Success in fulfilling the investment objectives will provide members with high value retirement benefits appropriate to the contributions paid.
The investment objectives of the Fund are as follows:
- To ensure that the assets are available to meet the liabilities as they fall due. The nature of the assets and level of cashflows provide sufficient liquidity for this objective to be met.
- The maximisation of the return on the Fund subject to an acceptable level of risk.
- The Trustees recognise that the Fund’s main objective is to provide retirement benefits to members. Members’ benefits will vary according to the level of contribution paid to the Fund. A target long-term return of Headline Inflation (CPI) plus 4.5%, before fees, has been set by the Trustees.
- To minimize the risk of members experiencing a negative rate of return on their accumulated credits in the Fund by maintaining an investment reserve that will enable returns credited to members’ accounts to be smoothed.