The primary objective of the Portfolio will be to achieve long-term capital growth that exceeds the performance of a typical South African Balanced Portfolio that complies with the regulations governing retirement fund investments.
Investments to be included in the Portfolio, apart from assets in liquid form and financial instruments for the exclusive purpose of hedging risk and subject to prevailing legislation, consist of local and foreign securities and or participatory interests in portfolios of Collective Investment Schemes ("underlying portfolios") 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 sufficient standard to provide investor protection at least equal to that in South Africa. Maximum exposure limits to "underlying portfolios" as permitted by prevailing legislation, will apply to investments in participatory interest in portfolios of collective investment schemes.
The securities and or underlying portfolios in which the Portfolio will invest will have exposure to either equity, non-equity, fixed income, money market and property. The Portfolio and or underlying portfolios may invest in listed and unlisted financial instruments, subject to prevailing regulations. The asset allocation of the Portfolio will be actively managed by varying the exposures to the underlying securities and or portfolios.
The Portfolio will be managed in compliance with the Prudential Investment Guidelines that are applicable to South African retirement funds from time to time, to the extent allowed by the Act.
Maximum foreign exposure limits as permitted by prevailing legislation, will apply to international investments.
Nothing contained herein shall preclude the Manager from varying the ratio of securities to best position the portfolio to achieve its objective in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange recognised in terms of the Act and from retaining cash or placing cash on deposit in terms of the Deed and any supplemental deeds thereto.
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.
The Trustee shall ensure that the investment policy set out in this supplemental deed is carried out.
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