Local inflation has bottomed in the current cycle, but should remain low for the foreseeable future and stay within the target bands set by the Reserve Bank. The fundamentals for interest rates remain stronger than consensus expectations, which motivates our view that short-term interest rates may remain at current levels for longer, and if and only when interest rate hikes start, to be smaller than generally expected. Over the ultra short term the market is divided on what the next move will be, with half the market expecting the Reserve Bank to cut rates during the December MPC meeting. These expectations have caused the longer end of the short-term curve to move down significantly lately. The curve is relatively flat point in time, with little value to be found anywhere. The fund is however well positioned thanks to being managed close to the maximum allowed duration during the past year. We continue to actively avoid higher risk investments and invest only with A1 or better credit rated counter parties.

Local inflation has bottomed in the current cycle, but should remain low for the remainder of the year and stay within the target bands set by the Reserve Bank. The fundamentals for interest rates remain stronger than the consensus expectations, which motivates our view that short-term interest rates may remain at current levels for longer, and if and when interest rate hikes started, to be smaller than generally expected. For this reason better value is at present to be found at the longer end of the interest rate curve. We therefor manage the fund closer to the maximum allowed duration of 90 days. We continued to actively avoid higher risk investments and invest only with A1 or better credit rated counter parties.

Local inflation has bottomed in the current cycle, but should remain low for the remainder of the year and stay within the target bands set by the Reserve Bank. The fundamentals for interest rates remain stronger than the consensus expectations, which motivates our view that short-term interest rates may remain at current levels for longer and if and when interest rate hikes finally start, to be smaller than generally expected. For this reason better value is at present to be found at the longer end of the interest rate curve. We therefor manage the fund closer to the maximum allowed duration of 90 days. We continue to actively avoid higher risk investments and invest only with A1 or better credit rated counter parties.

Local inflation has bottomed in the current cycle, but should remain low for the remainder of the year and stay within the target bands set by the Reserve Bank. The fundamentals for interest rates remain stronger than the consensus expectations, which motivates our view that short-term interest rates may remain at current levels for longer and if and when interest rates hikes started, to be smaller than generally expected. For this reasons better value is at present to be found at the longer end of the interest rate curve. We therefor manage the fund closer to the maximum allowed duration of 90 days. We continue to actively avoid higher risk investments and invest only with A1 or better credit rated counter parties.