3.1. The primary investment objective of the PPS Balanced Index Tracker Fund is to track the customised PPS Balanced Index, a published multi asset high equity composite index that is diversified across a number of constituent indices, and calculated and published daily by a recognised index compiler.
3.2. The multi asset high equity composite index that the PPS Balanced Index Tracker Fund will track shall include domestic and international equities, domestic bonds, domestic cash and domestic property. The portfolio may also invest in any listed or unlisted financial instruments, and international cash, to the extent as allowed by the Act. The benchmark, while diversified, has a greater exposure to growth orientated asset classes.
3.3. The customised PPS Balanced Index will comprise:
a. "SWIX Index" means the FTSE/JSE Shareholder Weighted Total Return Index - J403T;
b. "ALBI Index" means the BEASSA All Bond Total Return Index;
c. "IGOV Index" means the FTSE/JSE Inflation-Linked Government Bond Total Return Index;
d. "SAPY Index" means the FTSE/JSE SA Listed Property Total Return Index;
e. "MSCI World ESG Index"" means the - The MSCI World ESG Total Return (Net) Index in ZAR; and
f. "SA Nominal cash" means the call rate of the trustee call account.
Constituents Strategic Asset Allocation Weighting
SWIX Index 47.5%
ALBI Index 12.5%
IGOV Index 7.5%
SAPY Index 10.0%
SA Nominal cash 5.0%
MSCI Index 17.5%
3.4. The portfolio will invest in the types of securities necessary to effectively track this index, subject to the following limitations:
" The portfolio will conform to regulations governing retirement fund investments to the extent allowed by the Act and, as such, will be a suitable vehicle for retirement funds.
" The limit on offshore investments will be in accordance with the requirements for South African portfolios as per the ASISA Fund Classification for South African Regulated Collective Investments Portfolios.
" The domestic cash portion will be placed on call with the trustee call account.
3.5. The manager will be permitted to invest on behalf of the portfolio in offshore investments as legislation permits.
3.6. The portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes that track one of the underlying indices that forms the building blocks to the PPS Balanced Index. Where the aforementioned schemes are operated in territories other than 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 of a sufficient standard to provide investor protection at least equivalent to that in South Africa.
3.7. Nothing in this supplemental deed shall preclude the PPS Balanced Index being modified; provided it is still consistent with a deliberate growth orientation. In such an event, the PPS Balanced Index Tracker Fund will make the necessary changes to track the modified benchmark.
3.8. For the purposes of the portfolio the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate. This critical size shall be determined from time to time by the manager.
3.9. The trustee shall ensure that the investment policy set out in this supplemental deed is carried out.
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