The Portfolio invests primarily in medium to long-term fixed-income investments given that such securities provide a high-income yield and when undervalued can offer the potential for capital appreciation in the short term mixed with gains from the change in the exchange rate. The portfolio may also invest in preference shares and listed companies with a high dividend yield.

In selecting securities, the focus will be mainly on USD denominated securities. However, investments in other currencies are permitted in so far as the Manager considers that currency exchange rate movements may have a positive impact on the values of such securities in a manner that will seek to maximize the Portfolio’s total return.

In selecting securities denominated in various currencies, the Manager considers, among other factors, the effects of movements in the currency exchange rates on the values of such securities in a manner that will seek to maximize the Portfolio’s total return. Investments will only be made in such foreign currency instruments where relevant exemptions from foreign exchange restrictions have been granted.

The Portfolio may hold significant cash or cash equivalent positions pending investment or when the Manager considers it desirable as a result of market conditions.