The Portfolio will track and replicate the NewFunds/Absa Volatility Managed SA Moderate Equity Index, an index which allows an Investor to gain full market exposure to a universe of 25 liquid, JSE-listed equity securities selected on a 50/50 factor specification to momentum and low volatility characteristics demonstrated in their performance. The Portfolio will comprise of both equity securities and cash (assets in liquid form), the proportion of which will be determined by the risk management process (the concurrent target volatility control mechanism and drawdown management process). The target volatility control mechanism aims to increase the proportion allocated to equity securities during periods of low volatility; and in turn increases the proportion allocated to cash during periods of high volatility. Specifically, where volatility rises and exceed the target threshold of 15%, the proportion allocated to cash will be increased. Where such volatility decreases, the proportion allocated to equity securities will be increased. The drawdown management process aims to increase allocation to cash during periods where the drawdown of the equity basket approaches 25% i.e. where there is a 25% fall from the most recent price peak. In all instances the trade threshold is set at 10%.