The primary objective of the IP ACTIVE BETA FUND is to deliver capital growth over the medium to long term at moderate to high levels of volatility while maintaining a low Total Expense Ratio (TER). The generation of income will be of secondary importance.
The portfolio will aim to outperform its benchmark through active asset allocation. This will be managed in a top-down approach depending on macro-economic, fundamental, valuation and technical factors. The portfolio will aim to outperform its asset allocation benchmark over a 4 year rolling period.
In order to keep the TER low, the portfolio will invest in a combination of passive ETF instruments and / or index tracking funds as well as equity, bonds, money market and property securities. The direct holdings will be managed on an index replication basis but this fund will not track any index.
Investments to be included in the IP ACTIVE BETA FUND will, apart from assets in liquid form, consist of securities and financial instruments in the equity, bond, property and money markets.
The portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes in the Republic of South Africa. Where the aforementioned schemes are operating in territories other than South Africa, participatory interests or any other form of participation in these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and the trustee as being of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the portfolio's primary objective.
The portfolio will comply with all prudential requirements and regulations controlling retirement funds or such other applicable legislation as may be determined for retirement funds.
The Manager will be permitted to invest on behalf of the portfolio in offshore investments as legislation permits.
The Manager may from time to time invest in listed and unlisted financial instruments, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio's investment objective.
Nothing in this supplemental deed shall preclude the manager from varying the ratio of securities, to achieve the investment objective in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and this supplemental deed; provided that the Manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of securities and assets in liquid form of the aggregate value required from time to time by the Act.
For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.
The trustee shall ensure that the investment policy set out in this supplemental deed is adhered to.