AF ACCESS RETIREMENT FUND

Introducing the AF Explorer and AF Passive Explorer Portfolios

Dear members

With the increase of the maximum offshore investment allowance under Regulation 28 of the Pensions Funds Act (Regulation 28), the fund's asset consultants recommended adding the AF Explorer portfolios as an investment option because it allows members to invest close to the maximum amount offshore which is currently 45% (including Africa). The board of trustees of the fund agreed to this proposal to provide an option for members whose risk profile aligns with this increased offshore exposure. The AF Explorer portfolio will be available as a member investment choice option in June 2023.

We are in the process of updating all relevant communication and forms to include AF Explorer in the member investment choice options - these will be available soon.

The below communication will provide you with an overview of the AF Explorer portfolios.

Who is the portfolio for?

Members still in the growth phase of their retirement savings journey who understand and can remain patient through investment market volatility.

About AF Explorer

AF Explorer is a portfolio that invests in a variety of assets from around the world. It is specially designed to invest, close to the maximum limit allowed offshore under Regulation 28, with full exposure to those returns and any impact of currency movement. The portfolio is constructed with purposeful diversification in mind, using a multi-asset, multi-style, multi-manager approach, to reduce risk. The portfolio is therefore spread across different types of investments and top-rated asset manager strategies, both locally and globally.

The portfolio is designed portfolio is designed to help you grow your money and aims to beat inflation by at least 6% per year over a five-year ongoing period.

The Alexander Forbes Investments team keeps a close eye on the market and looks for new opportunities to invest in. By actively managing the portfolio the investment team ensures that the portfolio is well-positioned to meet its objectives in different market conditions and keep within the allowable offshore limits

Asset Allocation

Why local?

• Differing risk and return profiles versus global markets

• Diversification of benefits through a mix of local asset classes

Why global?

• Access deeper markets

• Access broader opportunity sets

• Reduce risk and enhance returns

Why alternatives?

• Diversification through uncorrelated exposure to equity markets

• Focus on risk management and downside protection

Why Tactical Asset Allocation (TAA)?

• Capitalise on short-term market opportunities

• Strengthen portfolio risk management

About AF Passive Explorer

You can also choose a low-cost version of AF Explorer, which is managed passively. This portfolio reflects Alexander Forbes Investments strategic asset allocation views. The investment team will still manage the portfolio actively by choosing different managers, types of investments, and assets that will help investors at a lower cost This portfolio has the same level of risk, recommended investment term, and outperformance goal as AF Explorer.

Asset Allocation

The policy fees for AF Explorer and AF Passive Explorer are determined according to the below fee scales. The policy fee includes the base fee paid to underlying investment managers, and is exempt from VAT.

If any of the underlying asset managers perform well, they will receive a performance fee. These fees are paid directly to them from the investment portfolio, and only a small amount of the assets in AF Explorer may be subject to such fees. The investment returns will be reflected net of any such performance fees. Alexander Forbes Investments does not charge, earn, or get a share of any performance fees.

If you are interested in investing in the AF Explorer portfolio, you'll need to fill out this switch form, but it is recommended that you speak to your financial advisor and obtain specialist advice before making any changes to your investments.

For additional information on these portfolios please click here.

AF Access Retirement Fund