Integrated Report 2018

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PPS INTEGRATED REPORT 2018 180
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2018
Typical investments
The manager invests in fixed instruments such as money market and bonds, as well as local
property and equities.
Risk exposure
A conservative fund exposed to credit risk, interest rate risk, and local equity price risk.
(k) PPS Institutional Bond Fund
Investment objective
To outperform the broad bond market index within defined duration limits relative to the benchmark,
with more consistency than a typical bond fund.
Investment mandate
This institutional multi-managed bond fund invests in underlying managers that invests in a
spectrum of fixed interest securities with the focus on benchmark relative performance, together
with a regular and high level of income.
Typical investments
The portfolio will invest in a spread of listed and unlisted bonds, fixed deposits and other
interest-bearing securities. The portfolio may invest in short, intermediate and long-dated securities.
Risk exposure
A bond fund exposed to credit risk, interest rate risk and inflation risk.
(l) PPS Institutional Multi-Asset Flexible Fund
Investment objective
To maximise total portfolio return while outperforming CPI for all urban areas over a rolling
three-year period. The portfolio has a focus on capital protection and diversification.
Investment mandate
This institutional multi-managed fund invests in a number of underlying managers with a specific
mandate to allocate assets based on their best view. Flexible asset allocation provides diversification
across all asset classes and sectors, with equity exposure limit to not more than 75% of the portfolio
value.
Typical investments
The managers may invest in a flexible combination of listed and unlisted investments in equity,
bond, money market and property market.
Risk exposure
A moderate to high risk fund exposed to credit risk, interest rate risk and local equity price risk.
(m) PPS Stable Growth Fund
Investment objective
The primary objective to outperform ASISA SA MA Medium equity while preserving capital over
the medium to long-term. The investment horizon for this fund is greater than five years.
35. MANAGEMENT OF RISKS (continued)
35.3 Financial risk management (continued)
(j) PPS Institutional Multi-Asset Low Equity Fund (continued)