The fund aims to deliver positive real returns of CPI+3% over any rolling 3-year period and capital preservation over any rolling 12-month period. This fund is expected to be less volatile than general balanced and equity funds.
The fund will use an active asset allocation strategy by investing in shares, income-bearing instruments and fixed-interest instruments. Most of the fund will be invested in interest bearing securities with equity exposure limited to 40%. The fund will be managed in accordance with regulations governing pension funds as well as medical aid schemes. The fund may also invest in listed and unlisted financial instruments (derivatives) for efficient portfolio management and to achieve the investment objective.
The fund is an ideal investment vehicle for investors seeking inflation-beating returns with a strong focus on capital protection. The fund is diversified across all major asset classes and offers potential for income generation and capital appreciation.
Regulation 28: Yes
Benchmark: CPI+3/4/5/6%
Risk Profile: Cautious
Ideal Investment Timeframe: 3 years or more
