37. Management of risks (continued) 37.3 b. c. Investment objective To maximise total portfolio return while outperforming a moderate return target of CPI + 4% per annum over the medium term. Investment mandate PPS Moderate Fund of Funds Financial risk management (continued) Risk exposure A moderate fund exposed to credit risk, interest rate risk, local and international equity price risk and currency risk. PPS Enhanced Yield Fund 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. This specific mandate to actively manage the fund by investing in instruments across various maturities, but limiting the weighted average maturity to less than one year. Asset allocation is defensive with exposure primarily to floating rate instruments, including high-yielding corporate bonds and securities, government bonds and cash. Typical investments The manager typically invests in income-yielding floating rate domestic big five bank paper as well as money market and government bonds. Investment objective To provide an enhanced level of income in excess of a broad short-term fixed interest benchmark. Investment mandate Risk exposure An enhanced yield income fund exposed to credit risk and interest rate risk. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 229 Notes to the Consolidated Financial Statements
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