The broad South African equity market exposure in the fund is primarily through an allocation to the FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX), which is intended to be a fairer reflection of the investment universe available to a South African investor. The Capped SWIX has a strategic weighting of 35% in the fund and returned 8.68% for the quarter ending December 2021.

The best performing sectors were consumer discretionary and basic materials returning 40.69% and 22.29% respectively. The worst performing sector was healthcare returning -7.53% for the quarter.

In addition to the broad local equity market exposure, the fund also has exposure to SA listed property, with a strategic weighting of 7.5%. The JSE SA Listed Property Index returned 8.35% for the quarter ending December 2021.

The international equity exposure is invested in the MSCI All Country World ESG Index, which has a strategic weighting of 15%. The MSCI All Country World ESG Index offers exposure to both developed and emerging markets globally. The index returned 7.82% in USD terms for the quarter. The rand weakened by 5.77% against the US dollar over the quarter.

To diversify the fund away from equity, the fund invests in nominal bonds through exposure to the JSE All Bond Index (ALBI), which has a strategic weighting of 15%. The JSE ALBI increased by 2.87% for the quarter.

In addition to the nominal bond exposure, an allocation is also made to inflation-linked government bonds through exposure to the JSE IGOV Index, which has a strategic weighting of 10%. The JSE IGOV increased by 5.25% for the quarter.