Objectives and Approach

The objective of the Sub-fund is to provide capital growth, with the potential for income, over any five-year period. A balanced asset allocation will provide exposure to a range of asset classes across any economic sector and geographic area. The maximum exposure to shares will be 85%, with the average exposure expected to be between 65% and 85% under normal circumstances. The minimum exposure to shares will be 40%. The maximum exposure to bonds (which may include government, corporate, sub-investment grade and inflation linked) will be 60%, with the average exposure expected to be between 15% and 30%. The minimum exposure to bonds will be 10%. The Sub-fund will be fully invested except for an amount to enable ready settlement of liabilities (including redemption of units) and efficient management. Exposure to cash will vary depending upon prevailing circumstances and although it would normally not exceed 10% of the total value of the Sub-fund, there may be times when the Manager considers stock markets around the world to be overpriced or that a period of instability exists which presents unusual risks. In such cases or during such periods, a higher level of liquidity may be maintained and, if considered prudent, the exposure to cash or near cash instruments held would be increased. Unless market conditions were deemed unusually risky, the increased exposure and period would not be expected to exceed 30% and six months respectively. The balance of exposure may include alternative investments, such as property or commodities, which are intended to improve the overall risk reward profile of the Sub-fund. Exposure to alternative investments will be limited to 30%. To provide the above exposure, a minimum of 70% of the Sub-fund will be invested in collective investment schemes (which may include schemes operated by the ACD, associates or controllers of the ACD). The Sub-fund may also invest directly (maximum of 30%) in shares, bonds, cash, near cash instruments, investment trusts, real estate investment trusts (REITs) and structured products which may embed derivatives.