The category is small — at R55.2bn it is barely a tenth of the size of the high-equity category. Yet it is not significantly more risky. It is not subject to the regulation 28 limit of 75% in equities, as it is not designed as a pretax savings product for retirement.

Most of these funds have an internal limit on growth assets (equity and property) of 80%-85%. At times in the cycle they will reduce this to 50%...

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