We foresee the local economy remaining buoyant throughout 2006. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is, however, forecast to remain within the 3-6% range as targeted by the Reserve Bank. Thanks to the inflation environment which is mainly benign, we believe that the Reserve Bank will need to hike short-term interest rates only moderately over the next 12 months.

Although the interest rate curve has started steepening in the 12-month area, it still remains relatively flat with little relative value to be found at any point along the curve. Market uncertainty regarding interest rate levels has increase substantially lately. We are looking for value opportunities that are created by data announcements and surprises. We continue to actively avoid higher risk investments and invest only with A1/F1 or better credit-rated counter parties, contributing to the low volatility of the yield of the fund. The fund is well-positioned for the current interest rate environment and we are confident that the outperforrnance of the Coris Capital Money Market Fund will continue.

We foresee the local economy remaining buoyant throughout 2006, the rand to start weakening when the commodity cycle starts topping out and inflation to remain within the 3-6% range as targeted by the Reserve Bank. We believe that the Reserve Bank will need to hike short-term interest rates only moderately over the next 12 months.

Although the interest rate curve has started steepening in the 12-month area, it still remains relatively flat with little relative value to be found at any point along the curve. We are looking for value opportunities that are created by data announcements and surprises. We continue to actively avoid higher risk investments and invest only with Ai or better credit-rated counter parties, contributing to the low volatility of the yield of the fund. The fund is well positioned for the current interest rate environment and we are confident that the current outperformance of the Coris Capital Money Market Fund will continue.

We foresee the local economy remaining buoyant throughout 2006, the rand to start weakening when the commodity cycle starts topping out and inflation to remain within the 3-6% range as targeted by the Reserve Bank. We believe that if the rand can act less volatile, and the oil price softens, the need for further interest rate hikes may not arise in the current economic cycle at all, because inflation will then be easily contained. In such an environment, short-tern interest rates may remain flat and start moving down again towards the end of 2006 or 2007.

Although the interest rate curve has started steepening in the 12-month area, it still remains relatively flat with little relative value to be found at any point along the curve. We are looking for value opportunities that are created by data announcements and surprises. We continue to actively avoid higher risk investments and invest only with Ai or better credit-rated counter parties, contributing to the low volatility of the yield of the fund. The fund is well positioned for the current interest rate environment and we are confident that the current outperformance of the Coris Capital Money Market Fund will continue.

We foresee the local economy remaining buoyant throughout 2006, the rand to start weakening when the commodity cycle starts topping out and inflation to remain within the 3-6% range as targeted by the Reserve Bank. We believe that if the rand can act less volatile, and the oil price softens, the need for further interest rate hikes may not arise in the current economic cycle at all, because inflation will then be easily contained. In such an environment, short-term interest rates may remain flat and start moving down again towards the end of 2006 or 2007.

Although the interest rate curve has started steepening in the 12 month area, it still remains relatively flat with little relative value to be found at any point along the curve. We are looking for value opportunities that are created by data announcements and surprises. We continue to actively avoid higher risk investments and invest only with Ai or better credit-rated counter parties, contributing to the low voltatility of the yield of the fund. The fund is well positioned for the current interest rate environment and we are confident that the current out performance of the Coris Capital Money Market Fund will continue.