The fund aims to provide investors with a high level of income and a low risk capital growth to outperform the greater of the rolling 2 year SA Repo rate or CPI plus 2% pa. The funds is diversified between asset classes with a high allocation to assets that generate income. It is managed according to the Prudential Regulation 28 guidelines of the Pension Fund Act.
The fund has a prederminded risk budget per asset class to allow the manager to vary exposure between asset classes, whilt respecting the fund's strategic asset allocation benchmarks. The managers consider tactical asset allocation between asset classes and sectors after a team process has determined a risk score by considering the global and local leading economic indicators, asset class valuations, fundamental research, independent liquidity analysis and technical analysis.