Investment mandate

Where the pool is invested, and what can go wrong.

The target split

Four asset classes, so that no single market decides the outcome.

40%

JSE-listed shares and ETFs, and international shares.

30%

GOLD & SILVER

South African Krugerrands and recognised silver bullion.

20%

CRYPTO

Bitcoin and Ethereum.

10%

CASH RESERVE

Kept in the BBS group bank account for stability and quick access.

Shares 40%
Gold & Silver 30%
Crypto 20%
Cash Reserve 10%

This split is a target, not a guarantee. The actual mix moves as prices change. Any change to the target needs a 70% member vote.

What can go wrong

Shares: Share prices can fall sharply and stay down for years. International shares also move with the rand, so a stronger rand lowers their value in rands.
Gold & silver: Metal prices swing and pay no income. Buying and selling costs a dealer margin, and physical coins have to be stored and insured safely.
Crypto: Prices can halve in weeks. Exchanges can fail or be hacked, and the rules for crypto can change.
Cash reserve: Cash does not swing with the markets, but it loses buying power to inflation over time.

Crypto risk warning

Crypto is the highest-risk part of the mix. Its price can fall by more than half in a short time, and it could lose most or all of its value. Only the 20% target is set aside for it, and members should be prepared for that part of the pool to go down as well as up.