The Glacier AI Balanced Fund is a portfolio with investments that are diversified across the cash, bonds, property, fixed interest and equity assets. The portfolio will invest up to the maximum allowable limits set by regulation 28 of the Pension Funds Act. The Fund has a multi asset high equity mandate that allows it to have up to 75% equity exposure. The primary objective of the fund is to provide superior capital growth over the medium to long term within a balanced mandate, utilising AI. The fund aims to achieve a return of at least 5% above CPI per annum, measured over rolling 5-year periods.
The fund aims to limit downside risk over the medium to long term. Investments to be included in the portfolio will, apart from assets in liquid form consist of government bonds, equities, futures, property and exchange traded funds registered in the Republic of South Africa or of participatory interests in collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and the trustee of a sufficient standard to provide investor protection which is at least equivalent to that in South Africa. The Fund is managed utilising a multipurpose AI machine learning investment engine.
The AI engine is designed to develop its own knowledge from data, to selfadjust based on experience, and to minimize real investor risk i.e. the risk of capital loss, in all or most market conditions. It is designed to dynamically detect changing relationships between past and future prices and construct effective price and risk models at each prediction and allocation instance to exploit the available opportunities. The AI engine will interpret and analyse the data and optimise the allocations. The allocations will be within the parameters of the fund mandate and applicable regulatory limits. The AI engine integrates three major components: a data processor, a price predictor, and a risk allocator, generating a complex statistical thinking process from raw data input to the determination of optimal portfolio weightings. While the AI engine operates autonomously, it is subject to human oversight and trade execution.
The Manager will be permitted to invest on behalf of the Glacier AI Balanced Fund in offshore investments as legislation permits.
The Trustee shall ensure that the investment policy set out in the preceding clauses are adhered to; provided that nothing contained in this clause shall preclude the Manager from varying the proportions of securities in terms of changing economic factors or market conditions or from retaining cash in the portfolio and/or placing cash on deposit.
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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