The net exposure of your fund to shares is 84%. Although the gold price is reaching new all-time highs in US Dollar terms, the strength of the Rand means that the Rand price of gold is some 23% below the high reached in February this year. South African gold shares have also underperformed other resources shares.

The net exposure of your fund to shares is 46%. Governments and Central Banks worldwide are providing unprecedented amounts of liquidity in order to stave off the economic crisis. These funds are applied by investors - not to the troubled areas of the economy but to "real assets" - specifically, stockmarkets. This is behind the strong advance in share prices globally.

The net exposure of your fund to shares was 19% at month end.

When the "risky" shares in the stockmarket stage a strong V-shaped recovery, as happened in March, our hedging method (selling index futures) becomes very expensive.

We believe the massive injections of liquidity from Central Banks will not find their way into helping the real economy, but will rather find their way into lifting share prices. We have therefore removed the hedges from your portfolio post month end.

Please note that the investment manager of the below mentioned portfolios has changed from Interneuron (Pty) Ltd to Interneuron Capital (Pty) Ltd due to a restructuring of the group.
Interneuron Equity Portfolio
Interneuron Freestyle Portfolio
Interneuron Managed Portfolio

In future the portfolios will be known as the:
Interneuron Capital Equity Portfolio
Interneuron Capital Freestyle Portfolio
Interneuron Capital Managed Portfolio