Preservation Funds are utilized as a parking bay for Members after exiting another Fund. A Member may remain in the Preservation Fund until retirement or transfer to another approved Fund. It is important to note that a Preservation Fund is an independent Fund defined in the Retirement Funds Act, 2014. Therefore, the Fund has its own Board of Trustees who are responsible for the overall management of the Fund.

The said Board is required to establish and adopt a suitable investment strategy for the Preservation Fund and its Members. By virtue of its name, investments in a Preservation Fund aim to grow, but mainly to preserve Members’ retirement benefits. Therefore, the Trustees of the Fund have established an investment strategy that caters for the objective of the Fund.

It is important for Members to note that investments in retirement funds are governed and strictly regulated and as such, the strategy must be within the confinements of the law. The Fund uses an interest allocation methodology referred to as monthly unit pricing. This means that the returns earned on the investments are consolidated and allocated to Members benefits on a monthly basis.

This ensures that Members’ preserved benefits are up to date.Members are encouraged to liaise with a representative from Mmila Fund Administrators for more information regarding the Preservation Fund and its investments in order to ensure that they make an informed decision.