equities. Risk exposure A moderate fund exposed to credit risk, interest rate risk, local and international equity price risk and currency risk. c. PPS Enhanced Yield Fund Investment objective To provide an enhanced level of income in excess of a broad short-term fixed interest benchmark. Investment mandate This specific mandate to actively manage the fund by investing in instruments across various maturities but limiting the weighted average maturity to less than one year. Asset allocation is defensive with exposure primarily to floating rate instruments, including high-yielding corporate bonds and securities, government bonds and cash. Typical investments The manager typically invests in income-yielding floating rate domestic big five bank paper as well as money market and government bonds. Risk exposure An enhanced yield income fund exposed to credit risk and interest rate risk. d. PPS Flexible Income Fund Investment objective To provide investors with a total return with a strong income bias while also seeking to protect capital in terms of bond market index and be competitive with funds in multi-asset income space. Investment mandate This multi-managed flexible income fund invests in a number of underlying managers with the specific mandate to actively manage the fund by investing without prescribed maturity limits. Asset allocation is defensive with exposure to fixed interest instruments, including high-yielding corporate bonds and securities, government bonds, listed property, preference shares and inflation-linked bonds and to the extent as allowed by the Act. Typical investments The manager invests in income-yielding fixed instruments such as money market, bonds and preference shares. The fund may invest in offshore fixed interest assets. Risk exposure A flexible income fund exposed to credit risk, interest rate risk and currency risk. e. PPS Equity Fund Investment objective 39. Management of risks (continued) 39.3 Financial risk management (continued) 195 Notes to the Consolidated Financial Statements
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