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Real-Return Portfolio Range

This range is aimed at investors targeting returns above inflation. The investment managers are mandated to consistently outperform inflation over rolling periods. The market-linked portfolios employ many techniques, including active asset allocation and protection strategies through derivatives, to achieve the return targets above inflation. The guaranteed portfolios use risk capital, actuarial smoothing and bonus policies to protect capital.

Real-Return Focus

Stable Focus

This portfolio is managed within what Investment Solutions regards to be conservative investment parameters. The investment managers selected for this portfolio are given specific mandates aimed at providing an investment return of 4% a year above inflation over any three-year rolling period. Investment diversification is achieved by investing in local equities, bonds, cash and alternative investments. By allocating a substantial portion of the portfolio to local cash, capital protection is increased and the volatility of short-term returns reduced. However, over the longer term, returns should be less volatile, although lower than for a typical balanced portfolio. This is because the investment strategies of the managers (which may include investments in derivative instruments) differ from those of managers of typical balanced portfolios.

FullVest Local

This portfolio is managed within what Investment Solutions regards to be a low-risk investment strategy. It is aimed at investors wishing to preserve capital through a capital guarantee underwritten by a local insurer or more than one insurer. This insurer is selected on its bonus-smoothing philosophy and balance-sheet strength. The underlying investment portfolios of the insurer consist of local equities, bonds, property and cash, which are selected and managed by the insurer’s investment managers. The insurer provides fully vesting bonuses declared monthly in advance.

This portfolio is managed within what Investment Solutions regards to be moderate investment parameters. The investment managers selected for this portfolio are given specific mandates aimed at providing an investment return of 6% a year above inflation over any three-year rolling period. Investment diversification is achieved by investing in equities, bonds, cash and alternative investments. Over the longer term, returns should be less volatile but lower than for a typical balanced portfolio because of the investment strategies of the managers, which may include investments in derivative instruments. The global component is invested in the Conserver Global Portfolio, which has a conservative investment profile, with allocation to global equities, bonds, cash and alternative investments. However, if the investor elects to invest in the combined portfolio (ie the local as well as the global component) the volatility of returns of the combined portfolio and the tracking error relative to the local inflation target may increase.

FullVest

This portfolio is managed within what Investment Solutions regards to be a low-risk investment strategy. It is aimed at investors wishing to preserve capital through a capital guarantee underwritten by local insurers. These insurers are selected on their bonus-smoothing philosophies and balance-sheet strength. The underlying investment portfolios of the insurers consist of local and global equities, bonds, property and cash, which are selected and managed by the insurers' investment managers. The insurers provide fully vesting bonuses declared monthly in advance.

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