CONSERVATIVE PORTFOLIO THIRD QUARTER 2012

PORTFOLIO DEFINITION The Conservative Fund yielded 4.2% over the

This portfolio’s objective is to provide investors last 12 months.
with a steady and consistent stream of income
while limiting the potential volatility of the The portfolio remains invested in Fixed Income
portfolio. Capital preservation is paramount instruments (i.e. Bahamas Government
Registered Stock and Preferred Shares) along
with Cash.
PORTFOLIO ASSET ALLOCATION
The asset allocation of this portfolio will consist Approximately 80% of the portfolio’s assets
primarily of Bahamas Government Registered remain tied to the Prime Rate. As such, the
Stock, bank deposits, term deposits and other portfolio’s return should always be reflective of
money market instruments as well as corporate the current interest rates in the market.
bonds and preference shares issued by strong
Bahamian operating companies. The duration of
the portfolio will generally not exceed 3 years. PERFORMANCE AS OF SEPT. 2012

Portfolio Calendar Last 12 months

PORTFOLIO RISK and RETURN Y-T-D
Due to the portfolio’s asset allocation, this fund
carries a low level of risk. The expected return Conservative 4.2% 4.2%
of this portfolio will generally reflect current
This rate fluctuates throughout the year as new funds are
market conditions, i.e. a Money Market Fund. invested and instruments mature. Please check with your
Long-term, we believe this option will provide a Administrator to confirm the most current rate.
total annual return between 3-6% on average.

As this portfolio is heavily exposed to the prime ASSET ALLOCATION

rate, its yield will be lower during the second
half of the year. Notwithstanding, we expect the
fund’s annualized return for the year to be in
the range of 4.75% to 4.90%.

Prepared by Colonial Pension Services (Bahamas) Limited, which is licensed by the Securities Commission of the Bahamas as a Broker
Dealer

Please note that past performance and rates of return are for illustration purposes and are not indicative of future results. The value of this
investment may fluctuate and is not guaranteed.

For further information contact: Colonial Pensions, Atlantic House, Collins Avenue and Second Terrace, P.O. Box SS-6246, Nassau
Bahamas. Telephone (242) 502-PLAN (7526) Fax (242) 502-7501 or pensions@atlantichouse.com.bs