In support of the general policy for diversification of the portfolio the investment guidelines will be as follows:

• The fund will not hold more than 30% 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;
  
  
• The fund will not allocate more than 10% of its value to anyone company's stock and if any investments greater than 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.
• No involvement in companies with substantial assets in Russia and the Middle East;
  
  
• Relative value;
  
  
• A significant proportion of the fund will always be invested in the larger mining companies based on their relative value and better liquidity;
  
  
• A substantial proportion of the fund will be invested in mining companies with a relatively small market capitalisation.  In addition, funds will be kept available to invest in new issues and share placings;
  
  
• Companies with major new discoveries and active drilling programmes will be of particular interest in the hope that the resources will in due course become larger than those first announced;
  
  
• The area of exploration and development will be focused on those companies exploring the most promising areas for new mineral discoveries;
  
  
• Derivatives may be used to cover exceptional risks at critical times.