DPF and Investment policies excluding Investment Choice Group Investment Choice (DPF) 2022 R'm % R'm % Equity - local 8 255 32.3 1 750 27.2 Interest - local and international 10 020 39.2 3 072 47.7 Cash - local and international 1 794 7.0 400 6.2 Equity - international 5 521 21.5 1 220 18.9 Total 25 590 100.0 6 442 100.0 DPF and Investment policies excluding Investment Choice Group Investment Choice (DPF) 2021 R'm % R'm % Equity - local 11 053 41.7 1 887 29.2 Interest - local and international 5 128 19.4 2 872 44.4 Cash - local and international 2 080 7.9 335 5.2 Equity - international 8 230 31 1 370 21.2 Total 26 491 100.0 6 464 100.0 The assets held to back the non-DPF component of the liabilities similarly reflect the Group’s risk appetite and the results of the asset liability modelling exercises undertaken in the past. Investment profits or losses arising from the impact of fluctuations in market values of assets and interest rates on the value of assets and non-DPF policy liabilities will be transferred to policyholders by adjusting the allocations made to the DPF component of their benefits. Younger policyholders have more time to recover from the volatility in the financial markets. For that reason the strategic asset allocation for the invested portfolio representing these policyholders has a higher exposure to equity and thus risk. Older policyholders have less time to recover from negative market performance, and are thus given a voluntary option each year to switch to more conservative investment portfolios from age 55 (‘Investment Choice’), i.e. portfolios where there is reduced exposure to equities. The assets held to back the non-DPF component of the policy liabilities are as follows: 39. Management of risks (continued) 39.3 Financial risk management (continued) 187 Notes to the Consolidated Financial Statements
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