Your Fund's net share exposure at the end of September was 92%.

The political climate in South Africa is deteriorating. A myriad of small negative signals, each too small to impact on the economic climate, may combine to influence especially foreign investors' perceptions. At this stage the impact is more relevant at the Sector Selection level than at the Asset Allocation level.

Your portfolio has an effective exposure to the stockmarket of 72%.

We continue to prefer companies that sell goods (such as Resource and some Industrial companies) over companies that sell services (such as Banks and Retailers). The countries that consume goods (such as China and India) are growing faster than the countries that consume services (such as Europe and the USA).

The effective exposure of your portfolio to shares is 79% The abundantly available cheap money in the world continued to push share prices higher, and our preparations for a possible setback proved premature.