We returned 1.02% on your investment in the Anchor BCI African Flexible Income Fund for the month of March. The month was initially actually quite strong for South African financial instruments, with significant rand gains and strong asset prices.

However, all of this reversed dramatically in the early hours of 31 March 2017. We discuss this in more depth below, although now is the time for calm heads as there is attractive opportunity in all market environments. Our inclination to hold a portion of the portfolio in US dollars puts us in a good place and the impact of the shock has been rather minimal. We feel that our risk-management strategy was tested and came through with flying colours.

It has been a major aspect of our performance and track record that we externalise an above-average component of our clients’ wealth to the shores of safer jurisdictions. This did not play out well through the strong rand we experienced last year, although now, more than ever, we think that this remains the prudent course of action.

The month was characterized by a stronger bond market and stronger listed property market, the benefits of which was offset by the Rand strength into year end. The Chinese announcement that they will include the Rand in their currency basket that they buy in order to manage the Yuan was the most significant event, with the Rand Gaining about 40 cents during the month on the back of this news.

Going forward, we expect that this will provide some long term support to both the Rand and to our financial assets, particularly bonds. We find that your portfolio yield of 11.07% remains attractive in today's environment.