The investment objective of the portfolio is long-term capital appreciation, achieved with lower long-term volatility than available from investing in relevant equity market indices. In order to achieve this objective, the portfolio will primarily invest in equity securities of companies based in developing countries or in equity securities of any other company regardless of where it is based, if the manager determines that a significant portion of the company's assets or revenues (generally 20% or more) is attributable to developing countries. In addition, the portfolio may invest in non-equity securities of similar corporate and government issuers. The portfolio may also hold other non-equity securities, assets in liquid form and appropriate financial instruments. The portfolio will, under normal market conditions, maintain an equity bias, but no limits are placed on the asset class composition of its portfolio. The limit on offshore investments will be in accordance with the requirements for foreign portfolios as per the ACI Code of Practice for Fund Classification. In determining whether a country is an appropriate developing market for inclusion in the investment universe of the portfolio, the manager will consider such factors as the country's per capita gross domestic product, the percentage of the country's economy that is industrialised, market capital as a percentage of gross domestic product, the overall regulatory environment, the presence of government regulation limiting or banning foreign ownership, and restrictions on repatriation of initial capital, dividends, interest and/or capital gains. Developing countries in which the portfolio may invest currently include, but are not limited to, Argentina, Brazil, Chile, China, Colombia, Croatia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, South-Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. The portfolio will be actively managed and relies on the professional judgment of the investment manager to make decisions about the portfolio's investments, both in terms of stock selection and asset allocation. The basic equity investment philosophy of the manager is to seek to invest in attractively valued companies that, in its opinion, represent above-average long-term investment opportunities. The manager believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the manager believes that they no longer represent relatively attractive investment opportunities in the light of the investment objective of the portfolio. The manager will be permitted to invest on behalf of the portfolio in offshore investments as legislation permits. Investments are not restricted to South Africa, but non-equity securities in the currency of a country, other than South Africa, may only be included in this portfolio if it complies with the Registrar's conditions and limits for inclusion of non-equity securities in a portfolio. The portfolio may also include participatory interests or any other form of participation in portfolios of collective investment schemes or other similar schemes. 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. Nothing in this supplemental deed shall preclude the manager from varying the ratios of securities, to maximise capital growth and investment potential in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and this supplemental deed; provided that the manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of securities and assets in liquid form of the aggregate value required from time to time by the Act. 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.
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