STRONG INVESTMENT PERFORMANCE FOR MUNICIPAL WORKERS’ RETIREMENT FUND MEMBERS
Actual investment performance from 1 July 2024 to 30 June 2025.
The Fund has two investment “pools” for the member liabilities:
The main investment portfolio was increased to R16, 504bn at 30 June 2025 compared to R13, 908bn at 30 June 2024, despite the two-pot withdrawals since September 2024..
The investment return on the main investment portfolio was 19.1% for the year compared to 10.3% the previous year.
The money market portfolio managed by Stanlib Asset Managers was R367.3m at 30 June 2025, compared to R338.3m at 30 June 2024
The investment return on the Stanlib money market portfolios, after deducting investment fees, was calculated as 8.6%, compared to 9,1% for the previous financial year, due to the low interest rate environment.
This is a very strong performance for the fund, beating the Fund’s CPI+4.5% target by more than 11%.
Bonuses declared:
Based on the Fund’s medium-term target of building the smoothing reserve up to 6.5% of the member liabilities (member credits).and to provide for some operational expenses, the board decided to set aside 1,5% to such provisions. This should boost the smoothing reserve to the region of 5.0% and allow for 0,4 for Fund operational expenses.
Trustees declared the June 2025 bonuses as follows:
- For members who were aged 64 and over on 1.7.2024 (and who are still in the Fund):
8.2% for the year to 30.6.2024*. This is the bonus rate derived from the net investment return on the Stanlib money market portfolio, adjusted for expenses of 0.4%
- For members aged 63 (but not yet 64) on 1.7.2024 (and who are still in the Fund):
12.9% for the year**. This means any members born after 1.7.1960, but on or before 1.7.1961. This a “blend” of the return for younger members and the return for those 1 year away from retirement.
Interim bonus rate
The Fund’s interim bonus rate for the period after 1 July 2025 should be retained at 0.6% per month, for all members, for the coming year.
Share of smoothing reserve to be paid out to members leaving the Fund
Members who take benefits from the Fund will receive a share of the investment smoothing reserve of 5.0% of the member liabilities.