The portfolio is managed with the aim of delivering positive returns over the medium term in excess of CPI plus 4%. We hope to achieve this by actively managing the asset allocation of the portfolio to reduce downside risk. The portfolio invests in a mix of shares listed on recognised exchanges, gilts and liquid assets. The bulk of the portfolio is invested in 20 to 30 shares picked from a pool of the 100 most marketable shares on the Johannesburg Securities Exchange. Up to 25% may be invested in offshore shares, the bulk of which will be in consumer related shares where the demand for their products
is largely unaffected by economic conditions. The manager makes the investments decisions based on a combination of market behavioural analysis, fundamental analysis and quantitative analysis.