This fund is Prudential Guideline Compliant. In order to generate sufficient real returns and outperform its return benchmark, investments are made across the entire spectrum of asset classes, although no asset class will be favoured significantly above the other. The fund will have a medium exposure to growth assets including listed property while the fund will strive to reduce volatility by limiting equity exposure to around 40%.
The fund employs a "building-block approach" whereby a variety of specialist managers are selected based on skill, expertise and benchmark outperformance of mandates selected for each asset class.
The objective of this fund is to provide the investor with consistent capital appreciation, while maintaining high cognisance on managing risk. The fund is ideal for investors looking to reduce their risk profile into retirement, while still achieving a reasonable real rate of return. The fund is designed to provide a real rate of return in excess of CPI plus 3.5% over rolling 3 year periods, aiming to preserve capital over any 18 months.