Investment and Return Objective
The Fund aims to return CPI + 4% per annum through a full market cycle while providing stability by aiming never to lose capital over any rolling 12 month period.
Who Should Invest
Investors seeking real returns coupled with a stable and attractive income yield via significant exposure to the South African interest bearing markets. Although the Fund's mandate allows investment up to 40% in equities, it is expected to have much lower actual exposure on average. This Fund is suitable to investors with a medium to long-term investment horizon and is Regulation 28 compliant.
This Fund invests in local and offshore money market, bonds and inflation-linked bonds, property, preference and ordinary shares, derivatives and unlisted instruments to meet the investment objectives. Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, asset allocation and exposure equities.
Risk Indicator = Moderately Conservative
Risk Indicator Definition
These portfolios typically have moderate equity exposure or in the case of bond funds, longer duration bond exposure, resulting in some capital volatility over the shorter term. They are managed in such a manner that the probability of capital losses over one year periods is unlikely. These portfolios typically target returns in the region on 3% - 4% above inflation before tax over the long term.