Market Related Portfolio

    3.  What is an Asset Manager?

        An asset manager is a company that manages an investment portfolio which comprises
        various asset classes including:

        Equities: listed shares on a stock exchange (could be local ie: the Johannesburg Stock
        Exchange, or an offshore stock exchange).

        Bonds:  an investment usually in government stock whereby the investment is made at a
        particular interest rate.  The investment earns income from periodic interest payments
        (instead of dividends paid by listed companies). The bond investment also has a capital
        value which increases if you sell it when the prevailing interest rates are lower than the
        interest rate when you purchased it.

        Property: can be a direct investment in fixed land and buildings or an indirect investment
        by purchasing a listed property share.

        Cash: earns interest at rates that are dependant on the duration of the cash investment.

        The asset manager needs to decide on the optimal mix of  the above asset classes at
        any point in time to achieve the best possible overall return.

        The trustees considered the following points when selecting the asset managers:

     -       Reputation, including past performance and management skills

     -       Investment process as described by the manager

     -       Personality and reporting skills of the manager who would deal with the Fund

     -       Total value of assets under management

     -       Fees and other costs