Integrated Report 2018

179 / 203

PPS INTEGRATED REPORT 2018 178
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2018
Typical investments
The manager invests in income-yielding fixed instruments such as money market, bonds and
preference shares.
Risk exposure
A flexible income fund exposed to credit risk, interest rate risk and currency risk.
(e) PPS Equity Fund
Investment objective
To provide long-term capital growth that exceeds the return provided by a broad equity market index.
Investment mandate
This multi-managed fund invests in a number of underlying managers with the specific mandate to
actively manage exposures to domestic listed equities in order to deliver long-term performance.
Typical investments
This multi-manager invests in equities and cash.
Risk exposure
An equity fund exposed to local equity price risk, company specific risk and indirect currency risk.
(f) PPS Balanced Fund of Funds
Investment objective
To maximise total portfolio returns while outperforming a peer-relative benchmark over the
medium to long term.
Investment mandate
This multi-managed fund invests in a number of underlying managers who invest in a spectrum
of local and international securities within the parameters of Regulation 28 of the Pension Funds
Act, No. 24 of 1956 with the specific focus on long-term growth.
Typical investments
The managers invest in local bonds and property, as well as local and international money market
instruments and equities.
Risk exposure
A medium to high risk fund, exposed to credit risk, interest rate risk, local and international equity
price risk and currency risk.
(g) PPS Managed Flexible Fund of Funds
Investment objective
To maximise total portfolio returns while outperforming a real return target of CPI+6% per annum
over the long term.
Investment mandate
This multi-managed fund invests in a number of underlying managers who invest in a spectrum of
local and international securities with the specific mandate to provide real capital growth. Flexible
asset allocation provides diversification across all asset classes and sectors.
35. MANAGEMENT OF RISKS (continued)
35.3 Financial risk management (continued)
(d) PPS Flexible Income Fund (continued)