The Citadel SA Bond H4 Fund ('the fund') delivered 1.3% during Q3-2019, ahead of its benchmark which rose 0.7%. Developed market bond yields rose (i.e. prices fell) during September but ended the quarter lower as investors sought safe haven assets; on the back of fears over a possible global slowdown and further easing of monetary policy. South African government bonds rose during Q3-2019 despite emerging market local currency bonds ending the quarter slightly lower on the whole. The fund's in-house managed government bond mandate and the externally managed Investec Corporate Bond mandate outperformed the benchmark for the quarter.

The fund continues to adhere to its policy.

The Citadel SA Bond H4 Fund is a specialist interest bearing portfolio with the primary objective of relatively stable capital values, a reasonable level of liquidity and a return commensurate with the South African All Bond Index (ALBI).

The Citadel SA Bond H4 Fund ('the fund') rose 3.2% in Q2-2019, just behind its benchmark which rose 3.7%. South African government bond yields rallied (i.e. prices rose) over the quarter, pulled lower by falling developed market bond yields. Fears of slowing growth and below target inflation have caused market participants to price in interest rate cuts globally, with South Africa being no exception. Despite the dovish tone when it comes to monetary policy, South Africa faces its own fiscal challenges. The burden of Eskom on the government’s already strained budget cannot be ignored and continues to keep the rating agencies circling. The fund's in-house managed government bond mandate underperformed the benchmark over the quarter; while the externally managed Investec Corporate Bond mandate outperformed.

The fund continues to adhere to its policy.