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Investment Choice

While the majority of people within a retirement fund the size of Thacsa share common investment goals, there are individuals who have specific needs based on their own unique circumstances. We have introduced two investment strategies to ensure that members are able to tailor a programme to suit their needs; they are the Default Strategy, based on a life-stage model, and an Individual Member Choice model. These strategies have been carefully developed by the Trustees in conjunction with their investment advisors to ensure the best financial performance considering risk and returns.

Option 1:

Default Investment Strategy

Thacsa is a Defined Contribution Fund. Your monthly contribution plus that of your employer less the deductions are invested for your retirement. If the Fund performs well you benefit accordingly. However, you also carry the risk if the Fund does not perform well. The introduction of a Default Investment Strategy is a way to minimise the risk according to your age and closeness to retirement. This is also known as a life-stage model.

What is Default Strategy investing

The younger you are – the more time to actual retirement you have – the more risky your investment strategy can be. Obviously in the pension space risk is a relative term. As you get closer to retirement the more secure your investment strategy should be.
The aim of the Default Strategy model is to provide you with the right amount of exposure to risk based on your age. If you have more than 10 years to retirement you should still have enough time to recover should there be a negative investment return. The opposite will apply to members 55 and older, they can’t afford exposure to negative returns so close to retirement.

How does it work?

The Default Strategy consists of two investment portfolios; the Diversified Growth Portfolio and the Stable Growth Portfolio.

  • If you are younger than 55 years old your Member’s Share will be invested in the Diversified Growth Portfolio.
  • From age 55 to 65 years old your Member’s Share will be moved over to the Stable Growth Portfolio in monthly instalments.
  • Once you turn 65 you will be fully invested in the Stable Growth Portfolio.


Option 2:

Individual Member Choice

In addition to the two investment portfolios available in the Default Strategy, the individual member choice option brings in a third choice – the Money Market Portfolio. It must be stressed though, if you are going to customise your investment strategy outside of the Default Strategy you should make use of an accredited financial advisor to guide you. 

The Diversified Growth Portfolio

The goal

Provides you with the best possible returns over the long term, but you will be exposed to market volatility over the short term.

Risk/return exposure

The portfolio is structured to perform in line with the target of 5% above inflation over a rolling five-year average.

Is this good for me?

You have many years before retirement. You can afford to take more risk in the short term to grow your investment over the long run.

The Stable Growth Portfolio

The goal

Protects your investment over the short term by smoothing out investment returns and providing an element of capital guarantee.

Risk/return exposure

The portfolio is structured to perform in line with the target of 4% above inflation over a five-year rolling average. This is slightly lower growth but more stable returns.

Is this good for me?

You are approaching retirement age and can afford some exposure to risk, but also want to start protecting your savings for retirement.

The Money Market Portfolio

The goal

To provide returns that are driven by the level of interest income, thereby protecting your investment so that you do not experience negative returns.

Risk/return exposure

This portfolio has the lowest risk, but also delivers the lowest returns.

Is this good for me?

You are at, or very close to retirement, and cannot afford to lose capital for the sake of trying to earn further returns on your investment.

When can I transfer to the investment portfolios of my choice?

You can switch from one portfolio to the other at any time during the financial year. Or you can switch back to the Life-stage model at any time. If you switch back to the Life-stage model, your investment will be allocated into the two portfolios based on your age at the time.

Do I have to transfer my full Member's Share into a specific portfolio?

No, you have the option to share your Fund Credit across the various portfolios. Your future contributions, including any additional voluntary contributions, will be invested in the same way.

Are there any charges?

Your first switch during a financial year is free. Switches thereafter – in the same financial year – are charged at R342 including VAT. This fee is deducted from your Member’s Share when the switch is made.

How do I know which combination of the three portfolios will suit me?

Before making any decision that affects your retirement planning it is advisable to contact an accredited financial advisor or your broker. Every person’s financial situation is unique and it is worth obtaining professional advice.

What is the process?

Download and complete the Thacsa Switch Option Form and email to [email protected]

Or register as a web user and submit it online:
o Click on the login/Register button alongside
o You will be directed to the Momentum page, mouse over LOG IN on the top right
o A drop down menu listing various pension funds will appear, select Thacsa and click on it
o When registering for the first time you are required to enter your ID number, employee number and email address
o Then enter and confirm a password of your choice.

Or access the site through your smartphone:
o Go to the App Store for iPhones or Google Play for Android phones

If you need more information or assistance with the Life-stage investing model please contact the Help Desk.