We foresee the local economy remaining fairly buoyant throughout 2007. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to remain around the top end of the 3-6% range as targeted by the Reserve Bank. However, we are of the opinion that the top of the current interest rate cycle has now been reached. The Reserve Bank will not need to hike short-term interest rates further, as long as the rand reflects less volatility and the oil price softens.

The interest rate curve still remains relatively flat, with little relative value to be found anywhere along the curve. Market uncertainty regarding interest rate levels has increased substantially. We are looking for value opportunities that are created by data announcements and surprises. The Fund's current maturity profile is close to the maximum allowed 90 days' limit. 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 uncertain interest rate environment and we are confident that the good long-term performance history of the Coris Capital Money Market Fund will remain intact.

We foresee the local economy remaining fairly buoyant throughout 2007. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to remain within the 3-6% range as targeted by the Reserve Bank. We are of the opinion that the top of the current interest rate cycle has been reached. The Reserve Bank will not need to hike short-term interest rates further, as long as the rand reflects less volatility and the oil price softens. The interest rate curve 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. The Fund's current maturity profile is at the maximum allowed, which is 90 days' limit. We continue to actively avoid higher risk investments and invest only with A1/F1 or better credit-rated counterparties, contributing to the low volatility of the yield of the Fund. The Fund is well positioned for the current uncertain interest rate environment and we are confident that the good long-term performance history of the Coris Capital Money Market Fund will remain intact.

We foresee the local economy remaining fairly buoyant throughout 2007. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to remain within the 3-6% range, as targeted by the Reserve Bank. We are of the opinion that the top of the current interest rate cycle was reached. The Reserve Bank will not need to hike short-term interest rates further, as long as the rand reflects less volatility and the oil price softens. 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 increased substantially lately. We are looking for value opportunities that are created by data announcements and surprises. The Fund's current maturity profile is relatively short, as to enable quick repricing in the rising interest rate environment. 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 uncertain interest rate environment and we are confident that the good long-term performance history of the Coris Capital Money Market Fund will remain intact.