Investment and Return Objective
The Fund aims to return CPI + 3% per annum through a full interest rate cycle while providing stability by aiming never to lose capital over any rolling 3 month period.
This Fund invests in local and offshore money market, bonds, property, preference shares, inflation-linked bonds and derivatives to meet the investment objectives. Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, asset allocation between income producing asset classes, offshore exposure and also via the use of derivatives.
Who Should Invest
Investors seeking stable real returns and aiming to maximise income via exposure to primarily the South African money and bond markets. This Fund is suitable to investors with a short- to medium-term investment horizon and is Regulation 28 compliant.
Risk Indicator = Conservative
Risk Indicator Definition
These portfolios typically have no or low equity exposure, resulting in higher interest yields and stable capital values with the probability of capital losses over the shorter term (3 months) highly unlikely. These portfolios typically target returns in the region of 1% – 3% above inflation before tax over the long-term.