In addition to the policy outlined above, further investment rules are as follows:
- The fund will not hold more than 10% of its value in cash for any prolonged period of time.
- The fund will not have any borrowings except for purposes of foreign exchange exposure management.
- To ensure a good spread, the fund will not allocate more than 10% of its value to any one company’s stock and if any investments greater that 5% of the fund are made, they will be limited, in aggregate, to 40% of the fund. If this 40% level is reached the fund will not invest more than 5% of the fund in any further single investment. The fund will not hold more than 10% of the total voting share capital of any of its investments.
- A proportion of the fund will always be invested in the larger mining companies based on their relative value and better liquidity.
- Companies with major new discoveries and active drilling programmes will be of particular interest in the hope that their resources will in due course become larger than those first announced.
- Derivatives may be used for efficient portfolio management purposes only.