The fund will invest in a diversified range of fixed interest securities, including but not limited to, local and foreign government, semi-government, corporate bonds, fixed deposits, money market and other interest-bearing securities of differing terms to maturity, taking into account changes in interest rates, credit risk and liquidity. The allocation may span across the short and longer dated interest bearing security markets and will not have any duration limitation. This will necessitate actively switching out of longer dated interest bearing securities into shorter dated interest bearing securities and vice versa depending on market valuations. This strategy will result in a larger tracking error relative to the Benchmark. Investment strategies may include interest rate or duration positions, credit yield enhancement and the use of derivatives strategies. The Fund will be mark-to-marketed on a daily basis. The portfolio is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time. The portfolio will predominately invest in South African markets, but is however permitted to include investments in offshore jurisdictions subject to the investment conditions determined by the Registrar from time to time.

The portfolio will be subject to the Prudential Investment Guidelines for South African Retirement Funds, being Regulation 28 of the Pension Funds Act, or such other Legislation published from time to time. The portfolio may apart from assets in liquid form also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes. Where the aforementioned schemes are operated in territories other than in South Africa, participatory interests or any other form of participation in these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and trustee and is of a sufficient standard to provide investor protection at least equivalent to that in South Africa.

The fund will conform to limits and constraints as determined by ASISA Fund Classification Standard and CISCA. The manager reserves the right to close the portfolio to new investors.