General Rules

In addition to the policy outlined above, further investment rules are as follows:

  1. The fund will not hold more than 10% of its value in cash for any prolonged period of time.
  2. The fund will not have any borrowings except for purposes of foreign exchange exposure management.
  3. 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.
  4. A proportion of the fund will always be invested in the larger mining companies based on their relative value and better liquidity.
  5. 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.
  6. Derivatives may be used for efficient portfolio management purposes only.