Investments to be included in the portfolio will apart from assets in liquid form, consist of participatory interests and other forms of participation in portfolios of collective investments schemes registered in South Africa and other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the portfolio's primary objective. The underlying portfolio will invest in financially sound equity securities, property shares and property related securities listed on exchanges, fixed interest instruments and assets in liquid form. To the extent that assets in the portfolio are exposed to exchange rate risk, the Manager may include listed and unlisted financial instruments for the exclusive purpose of hedging exchange rate risk subject to the conditions and limits stipulated by the Act. The manager shall have the maximum flexibility to vary assets between the various market and asset classes to reflect changing economic and market conditions.
In selecting securities for this portfolio, where possible, the manager shall seek to deliver long-term capital growth at an acceptable level of volatility.
The effective offshore exposure of the portfolio invested outside of the Republic of South Africa (including participatory interests in collective investment schemes, whether listed on an exchange or not, and other forms of participation in portfolios of collective investment schemes, financial instruments, and assets in liquid form) will always be above 80%.
The portfolio will not follow a specific theme and the manager will have the flexibility to take advantage of short-term, as well as long-term events and themes within securities markets. Overall the portfolio seeks to provide investors with maximum capital growth over the medium to long term at a reasonable level of monthly volatility relative to the international equity and fixed interest markets. To that effect the portfolio places an emphasis on active manager selection, sector allocation and tactical asset allocation.
As the portfolio is managed on a fund of funds basis the assets are split between participatory interests in collective investment schemes of different types, including but not limited to collective investment schemes in securities and foreign collective investment schemes and managers with complementary, but diverse, investment styles and approaches.