The Ashburton Diversified Income Fund is an actively managed income solution. The primary objective is to utilise the entire opportunity set available to funds in its category. It utilises asset allocation, currency diversification, credit inclusion, duration variation and derivative strategies in order source additional returns for the fund. The goal is to provide a single solution for the fixed income component of a portfolio or the destination for the conservative investor looking for higher returns than can be attained in other income portfolios. The fund will aim to achieve performance returns significantly in excess of money market funds and current account yields. The fund will comply with regulations governing retirement funds. Risks include political, economic, interest rate risk, default risk as well as general market risk which could lead to an increase in bond yields and credit risk. 3.1 The portfolio a specialist income portfolio that seeks to maximise income, through use of diversified and non-correlated securities and preserve capital for investors. 3.2 In order to achieve this objective, the securities to be included in the portfolio will comprise a combination of assets in liquid form, equities and local and global securities of an interest bearing nature, including but not limited to loan stock, inflation-linked bonds, debentures, debenture stock, debenture bonds, unsecured notes, money market instruments, preference shares, property, financial instruments and any other non-equity securities which are considered consistent with the portfolio's primary objective and that of the requirements of the Act or as prescribed by the Registrar from time to time, as well as the ASISA category limits, all to be acquired at fair market value. 3.3 The portfolio can have a maximum effective equity exposure (including international equity) of up to 10% and a maximum effective property exposure (including international property) of up to 25% of the market value of the portfolio. 3.4 The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act. The portfolio's asset allocation will be actively managed and will continually reflect the portfolio manager's view of the relative attractiveness of the various asset classes. 3.5 The portfolio 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. The portfolio may from time to time utilize repurchase transactions for efficient portfolio management purposes. The Manager may also include forward currency, interest rate and exchange rate swap transactions for efficient portfolio management purposes. 3.6 The Manager may invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes as the Act may allow from time to time, and which are consistent with the portfolio's inves tment policy. Where the aforementioned schemes are operated in territories other than South Africa, participatory interests or any other form of participation in portfolios of these schemes will be included in the portfolio only where the regulatory environment is, to the satisfaction of the Manager and the Trustee, of sufficient standard to provide investor protection at least equivalent to that in South Africa. 3.7 Nothing in this Supplemental Deed shall preclude the Manager from varying the ratios of securities, non-equity securities or assets in liquid form in a changing economic environment or market conditions, or to meet the requirements in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and this Supplemental Deed. 3.8 The Trustee shall ensure that the investment policy set out in this Supplemental Deed is carried out. 3.9 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.

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