The Fairtree Flexible Income Plus Prescient Fund will aim to deliver a reasonable level of income as well as capital performance. The fund will endeavor to protect capital and maximize income growth. In order to achieve this objective the fund will invest in interest bearing and non-equity securities (including, but not limited to, bonds, cash deposits and money market instruments) as well as SAFEX-listed non-equity derivatives, JSE-listed preference shares (which are of a debt nature) and assets in liquid form. In order to enhance income returns, the fund may also invest in non-equity securities such as Equity Linked Notes that are exposed to price movements in the equity markets, as well as derivative instruments, such as futures and options linked to the equity exposure of Equity Linked Notes and other similar instruments.
The fund is positioned as an income plus portfolio to correctly reflect the fund's flexible mandate, which allows investments in a broad spectrum of underlying high yielding assets, including non-equity securities linked to equities, taking into consideration the lower risk mandate of the fund and using appropriate strategies to minimise risk where necessary. The fund is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time. The portfolio will predominately invest in South African markets, but is however permitted to include investments in offshore jurisdictions subject to the investment conditions determined by legislation from time to time. The portfolio may apart from assets in liquid form also include participatory interests or any other form of participation in portfolios of collective investment schemes, exchange traded funds or other similar schemes.
Where the aforementioned schemes are operated in territories other than in 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 trustee and is of a sufficient standard to provide investor protection at least equivalent to that in South Africa.