The CRF follows a unitisation strategy which allows the Fund to calculate your returns on a daily basis. This ensures that the management of your investments are transparent, and you can monitor your Fund value on a daily basis!
How does unitisation work?
When we receive your and the employer’s contributions, the Fund will invest the contributions after allocating it to your record and verifying the contributions received. Your total monthly contributions received will be converted into units which is linked to a unit price. The total units allocated to your member share will depend on the unit price on the day of investment.
The number of units in your member account will remain constant throughout the month and only increases once per month when your contributions are invested.
Your member share is calculated by multiplying the number of units in your account by the unit price on the day. Remember, you carry the investment risk, which means that as unit prices go up or down every day depending on the performance of the investment portfolios, your member share value can show an increase or decrease daily in relation to market fluctuations.
How are my investments protected if I carry the investment risk?
The investment of the assets of the Fund is one of the most critical of all the management functions carried out by the Board of Trustees. Regulation 28 of the Pension Funds Act provides guidelines and limits on the investments of retirement funds. This is to protect funds against making irresponsible investments. The CRF is fully compliant, ensuring your investments are managed properly. The Fund follows an active hedging strategy to manage the downside of risk and to protect you from extreme drops in the market.
Do I have a say when it comes to how my retirement savings are invested?
To cater for the different investment and risk needs of our members, the CRF has a variety of investment options available to assist members with their retirement planning.
In the table below we explain how much you can invest in the available portfolios and at what age it would be suitable to switch:
|Portion of member share account||Investment Option||Notes on eligibility and contribution placement||Notes on Objective & Risk|
|100% only||Shariah Portfolio||Any age||Investment strategy in line with principles of ‘Islamic Finance’.|
|100%||Growth Portfolio||Any age||Best growth in longer term; can fluctuate in shorter term (Default Portfolio)|
|100%||Moderate Portfolio||50 years or older||Aims at a balance of growth with moderate risk for overall investment stability.|
|100%||Money Market Portfolio||50 years or older||Conservative approach aimed at protecting your savings.|
|25%, 50%, 75%||Combination of the Growth and Moderate Portfolios||All future contributions are allocated to the Moderate Portfolio||Allows a member some flexibility in balancing and apportioning their own investment risk.|
|25%, 50%, 75%||Combination of the Growth and Money Market Portfolios||All future contributions are allocated to the Money Market Portfolio||Allows a member some flexibility in balancing and apportioning their own investment risk.|
|Switching from/to Portfolio||When are you allowed to switch?|
|Growth Portfolio||Free switch after 50th birthday (on 1st day of month following)
Optional free switch on 1st July
One additional switch per Fund year
|Money Market Portfolio|
|Shariah Portfolio||One free switch per Fund Year|
Important to consider
- Fund Year refers to the Fund’s financial year, starting 1st July to 30th June
- Member share is determined as at date of transfer from one portfolio to another
- Completed Fund Option forms must be submitted to the administrator by the last day of the month preceding the month in which the switch must happen.