MONEY
diversified, and that your capital should continue to achieve real returns and growth above inflation. • Outstanding debts Another important point to consider is whether you have any outstanding debt that still need to be paid. Monthly vehicle repayments,
CONSERVATIVE FUND OF FUNDS SUITABLE FOR RETIREMENT SAVINGS BY LUIGI MARINUS, PORTFOLIO MANAGER AT PPS INVESTMENTS
you retire could therefore
A
Conservative Fund of Funds is
task of determining the next
rolling three-year periods. The
make a huge difference to
steps to secure a comfortable
fund is defensive in nature and
your monthly expenses and
retirement. Broadly speaking, you
suitable for investors with a low
thus your draw from your
will be faced with making critical
risk tolerance and medium-term
pension fund.
decisions, and you will have to
investment horizon.
• Future cashflow
consult your financial adviser
for instance, could eat into your capital very quickly. Concentrating your focus on repaying any debt before
s you reach your
The aim of the PPS
retirement age, it can be an exciting and daunting
to achieve inflation +2% over
The fund has a combined
While no one can predict
and review your circumstances to
maximum allowance of up to
how long they may live or
determine your unique retirement
40% exposure to domestic and
how markets may change, a
financial needs and the best
global equities, and a maximum
professional financial advisor
approach to meet those needs.
allowance of 25% to property.
should be able to identify
Making financial resolutions
This means that there is a
whether you may be running
and planning ahead allows you
large exposure to fixed interest
out of money 10 or 15 years
to reap the benefits later. In
securities all the time, which
ahead of time, while you still
combination with other long-term
reinforces the defensive nature of
have time to adjust your lifestyle
investment plans, investing in
the fund. The maximum offshore
and spending.
multi-assets can optimise your
exposure is up to 30%, with an
investment strategy and generate
additional allowance of 10% for
long-term returns for you.
investments in Africa.
It can be extremely difficult to identify potential problems with
The PPS Conservative Fund
your future cashflow yourself,
of Funds is a multi-asset low-
and the chances are you might
equity unit trust that is managed
realise you have a problem too
according to Regulation 28 of the
late. That’s why it’s absolutely
Pension Funds Act, and therefore
crucial to engage the services of a
is a suitable vehicle for retirement
professional to do the calculations
savings.
Continued …
and necessary planning on your behalf, both before and during your retirement. •
This article first appeared on MoneyMarketing.co.za, 22 October 2019
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