The Investec Wealth & Investment BCI Diversified Income Fund is a conservative portfolio that aims to maximize income while preserving capital with lower volatility in the medium to long-term in order to deliver returns in excess of traditional money market funds by investing in a diversified range of mainly high-income generating instruments.
The portfolio is managed in compliance with the prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act, subject to a maximum equity exposure of 10% of the portfolio's net asset value.
In order to achieve its objective, the investments normally to be include comprise a combination of assets in liquid form, equity securities, property related securities, convertible bonds, preference shares, money market instruments, interest-bearing securities and non-equity. The portfolio may also invest in a participatory interest or any form of participation in portfolios of collective investment schemes or other similar collective investments schemes as the Act may allow from time to time, which are consistent with the portfolio's investment 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.
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 also include forward currency, interest rate derivatives and exchange rate swap transactions for efficient portfolio management purposes in line with the portfolio's investment objective.
The Trustee shall ensure that the investment policy set out in this Supplemental Deed is carried out.
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.