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(b) PPS Moderate Fund of Funds
Investment objective
To maximise total portfolio return while outperforming a moderate real return target of CPI + 4%
per annum over the medium term.
Investment mandate
This multi-managed fund invests in a number of underlying managers with the specific mandate
to employ real return strategies to provide real capital growth. Flexible asset allocation provides
diversification across all asset classes and sectors, with equity exposure limit to not more than
60% of the portfolio value.
Typical investments
The managers invest in fixed instruments such as money market and bonds, as well as local and
international equities.
Risk exposure
A moderate fund exposed to credit risk, interest rate risk, local and international equity price risk
and currency risk.
(c) PPS Enhanced Yield Fund
Investment objective
To provide an enhanced level of income in excess of a broad short-term fixed interest benchmark.
Investment mandate
This specific mandate to actively manage the fund by investing in less than three-year maturity limits.
Asset allocation is defensive with exposure to fixed interest instruments, including high-yielding
corporate bonds and securities, government bonds, listed property, preference shares and
inflation-linked bonds.
Typical investments
The manager invests in income-yielding fixed instruments such as money market, bonds and
preference shares.
Risk exposure
An enhanced yield income fund exposed to credit risk and interest rate risk.
(d) PPS Flexible Income Fund
Investment objective
To provide investors with a total return with a strong income bias while also seeking to protect
capital in terms of bond market index.
Investment mandate
This multi-managed flexible fund invests in a number of underlying managers with the specific
mandate to actively manage the fund by investing without prescribed maturity limits. Asset allocation
is defensive with exposure to fixed interest instruments, including high-yielding corporate bonds
and securities, government bonds, listed property, preference shares and inflation-linked bonds
and to the extent as allowed by the Act.