The investment policy of the portfolio shall be to track the Index as closely as possible.
The portfolio shall not buy or sell constituent securities, any other securities or financial instruments for the purpose of making a profit, nor for any purpose other than tracking the Index.
As a secondary objective, securities held by the portfolio from time to time may be utilised to generate income for the benefit of investors, provided that such activities do not conflict with the investment policy as stated in the clauses above.
Investors can obtain participatory interests in the portfolio by acquiring participatory interests on the secondary market or subscribing for participatory interests in the portfolio. In order to achieve this object the manager may, subject to the Act and the Deed create and issue an unlimited number of participatory interests in the portfolio.
The portfolio will not be managed according to traditional methods of active management, which involve the buying and selling of securities based on economic, financial and market analysis and investing judgment. Instead the investment objective and style will be full replication of the Index. As a result the financial or other condition of any company or entity included from time to time in the Index will not result in the elimination of its securities from the portfolio unless the securities of such company or entity are removed from the Index itself.
The portfolio shall also be entitled, in its discretion, to employ such investment strategies as will most effectively give effect to the investment policies of the portfolio.
The composition of the portfolio will be adjusted periodically to conform to changes in the composition and weighting of the securities in the Index so as to ensure that the composition and weighting of the scheme's portfolio are a reflection of the composition and weighting of the securities contained in the Index.
The portfolio will hold securities purely for the economic rights and benefits attaching thereto, and accordingly if a takeover bid is made for shares of a company included in the Index, the portfolio will not tender shares in respect thereof. Securities held by the portfolio which are subject to a takeover bid will only be surrendered if such surrender is mandatory (and then only to the extent of such mandatory surrender) in terms of applicable law or under the rules of a regulatory authority or body having jurisdiction. If a takeover bid results in a company no longer qualifying for inclusion in the Index, any shares of the company held by the portfolio after the takeover bid will be disposed of by the portfolio, and the proceeds will be applied in effecting the appropriate adjustments to the portfolio.
To the extent necessary for the purposes of achieving its investment policies, the portfolio may hold assets in liquid form. Any assets held in liquid form may be invested in short?term investments such as banker's acceptances and certificates of deposit.
The portfolio's ability to replicate the price and yield performance of the Index will be affected by the costs and expenses incurred by the portfolio.
ETF - Local CIS with 100% investment in foreign equities as approved by FSB