The Scheme will be actively managed on a total return basis investing primarily in UK companies having a market capitalisation of £250m or less at the time of purchase. A considerable proportion of the portfolio will be invested in smaller companies with a market capitalisation of less than £150m at the time of purchase. At times it may be appropriate for the Scheme not to be fully invested but to hold cash and near cash. The Scheme may also invest in other transferable securities, including but not limited to, warrants and government and public securities and units in collective investment schemes. The Scheme is permitted to invest in derivatives and forward transactions for the purposes of hedging only.