Multi-fund Structure

This booklet provides you with the key investor information about the proposed Multi-Fund. It is not a marketing material. The information is required to help you understand the nature and features of the fund types to make a more informed investment decision.

A Key Information Booklet (KIB) is a ‘fact-sheet’ style document which outlines the investment objectives of each fund type and other practical information.

Multi-Fund is a structure that divides the Retirement Savings Account (RSA) and Retiree fund into Six (6) funds known as I, II, III, IV, V and VI. The Funds recognizes different demographic (age) profiles and risk appetites of registered contributors.

The objective of the Multi-Fund structure is:

Give contributors greater participation in the management of their funds by aligning their funds with their return profile.

THE MULTI-FUND STRUCTURE OF RETIREMENT SAVINGS & RETIREE FUNDS

The Multi-Fund Structure comprises of Six (6) funds namely:

FUND 1

(Contributors aged 49 years and below)

Contributors must apply to move to this fund.
Investments in Variable instruments can be between 20% and 75% of the fund. The balance in the fund shall be invested in Fixed Income instruments.
This fund is particularly suitable for contributors with a longer duration of employment

FUND II

(Contributors aged 49 years and below)

This is the default fund from which contributors elect to move to other funds or are moved automatically upon the attainment of 50 years.
Contributors can move to Fund I depending on their investment plan.
A contributor who moves from Fund III to Fund II cannot move to Fund I.
Investments in Variable instruments can be between 10% and 55% of the fund. The balance in the fund shall be invested in Fixed Income instruments

FUND III

(Contributors aged 50 years and above)

For contributors aged 50years to 59years**
Contributors in Fund III can elect to move to Fund II
Investments in Variable instruments can be between 5% and 20% of the fund. The balance in the fund shall be invested in Fixed Income instruments

**A maximum of 70years for Professors and 75years for Judges

FUND IV

(Retirees)

This fund is for those that have applied for retirement and chose the Programmed Withdrawal option.
Investments in Variable income instruments cannot exceed 10% of the fund. The balance in the fund shall be invested in Fixed Income instruments.

FUND V

(Micro Pensions)

This fund is for self-employed persons operating in the informal sector.
Contributions are flexible and may be paid daily, weekly, monthly or as may be convenient for you.
A maximum of 40% can be withdrawn for contingent purposes while 60% shall be for Retirement savings.
Investments in Variable income instruments cannot exceed 5% of the fund. The balance in the fund shall be invested in Fixed Income instruments.
Contributors in this fund can move to Funds I ,II and III.
Contributors in other funds cannot move to this fund.

FUND VI

This fund is for contributors who desire their pension contributions to be invested in Sharia compliant Capital Market and non-interest bearing
Maximum exposure of 55% of portfolio value shall be invested in compliant variable income instruments such as Sharia compliant Ordinary Shares, Infrastructure Funds, Private Equity Funds and Open/Close Hybrid Funds.
The balance shall be invested in non-interest bearing instruments.

Exercisable Rights

Active Choices

Contributors may elect to move between funds subject to the following restrictions:

Contributors in:

Fund I may move to Fund II
Fund II may move to Fund I
Fund III may move to Fund II
Fund I, II & III can move to Fund VI active.
Fund I, II, III, IV and VI may not move to Fund V.
Fund IV are not allowed to move to any of the other Funds except Fund VI Retiree. And you can also add that contributors in