This fund is Prudential Guideline Compliant. In order to generate sufficient real returns and out perform its return benchmark, investments are made across the entire spectrum of asset classes, although growth assets will be favoured to interest-bearing assets. This is done to ensure enhanced real returns. The fund will have medium exposure to pure equity assets, which will be around 60% of the total portfolio.
The fund employs a 'building-block approach' whereby a variety of specialist managers are selected based on skill, expertise and benchmark out performance of mandates selected for each asset class.
The objective of this fund is to provide the investor with a moderate level of capital appreciation, resulting in stable real returns over the medium term. The fund is ideal for investors who are looking to achieve moderate real returns with limited downside over the medium-term. The fund is designed to achieve a real rate of return in excess of CPI plus 4.5% over rolling 4 year periods, aiming to preserve capital over any 24 months.