The fund changed sectors from South African--Multi Asset--Flexible to South African--Multi Asset--Medium Equity on 20 June 2014

The Aeon Balanced Prescient Fund seeks to achieve:

- Inflation beating returns by investing in the full spectrum of domestic and foreign equity and fixed income markets
- Provide investors with stable income and modest capital appreciation in the long run
- Manage risk through disciplined portfolio construction
- Employ low cost trading techniques

The Aeon Balanced Prescient Fund was in line with its benchmark in the first quarter of 2014 on a net return basis. This is after it managed to outperform the benchmark in 2013 by over 11.5%.

The market, in general, has slowed its upward trajectory and the quarter was characterised by more volatility. The three major global influences that caused this in the quarter were ongoing concerns about China's growth, the tense situation in Ukraine, and the mixed comments from the new FED chair-woman Janet Yellen all yielding increased volatility in the emerging market space.

Due to increased volatility and a less optimistic viewpoint, the protection on the fund has increased. The fund now enjoys a lower exposure to the equity market, a more prudent approach.

Going forward, we still prefer stocks with foreign exposure such as BHP Billiton Plc, MTN, and British American Tobacco Plc which still provide attractive growth prospects.

The advantage of having multiple sources of alpha helps to smooth returns and diversify risk as can be seen in the returns from the multiple components. This combined with the use of multiple systems to aid in analysis and timing (currency model for currency timing as well as technical analysis for equity timing ) is further intended to generate outperformance.