The Marriott Income Fund distributed 0.6918 cpu in September. The portfolio is structured to continue to produce a relatively high distribution and includes cash and premium deposits, corporate debt, preference shares and inflation linked bonds.

The year ahead is likely to be characterised by rising inflation, potentially higher interest rates, a consumer under pressure and a downward adjustment of many asset prices.

Assuming rising inflation, it is anticipated that the instruments in this portfolios will produce more income and have growth in capital values.

We look forward to re-investing in property and long bonds as these are the instruments that offer retired investors the most secure and reliable long term income. They will however only be included when the income streams are appropriately priced with yields reflecting higher inflation. The target asset allocation is:

o Floating rate corporate debt 10%
o High yielding equities 7.5%
o Listed preference shares 5%
o Inflation linked bonds 7.5%
o Cash 70%

It must be noted that the portfolio now includes instruments that are priced in the market on a daily basis.

The Marriott Income Fund distributed 0.7727 cpu in June. The portfolio is structured to continue to produce a relatively high distribution and includes cash and premium deposits, corporate debt, preference shares and inflation linked bonds.

The year ahead is likely to be characterised by rising inflation, higher interest rates, a consumer under pressure and a downward adjustment of many asset prices. Assuming rising inflation, it is anticipated that the instruments in this portfolios will produce more income and have growth in capital values.

We look forward to re-investing in property and long bonds as these are the instruments that offer retired investors the most secure and reliable long term income. They will however only be included when the income streams are appropriately priced with yields reflecting higher inflation.

The target asset allocation is: o Floating rate corporate debt 20% o Listed preference shares 10% o Structured NCD's 30% o Inflation linked bonds 20% o Cash 20% It must be noted that the portfolio now includes instruments that are priced in the market on a daily basis.

The Marriott Income Fund distributed 0.6087 cpu in March. The portfolio is structured to continue to produce a relatively high distribution and includes cash and premium deposits, corporate debt, preference shares and inflation-linked bonds.

The year ahead is likely to be characterised by rising inflation, higher interest rates, a consumer under pressure and a downward adjustment of many asset prices.

Assuming rising inflation, it is anticipated that the instruments in this portfolios will produce more income and have growth in capital values.

We look forward to re-investing in property and long bonds as these are the instruments that offer retired investors the most secure and reliable long-term income. They will however only be included when the income streams are appropriately priced with yields reflecting higher inflation.

The target asset allocation is: o Floating rate corporate debt 20% o Listed preference shares 10% o Structured NCD's 30% o Inflation linked bonds 20% o Cash 20%

It must be noted that as the portfolio now includes instruments that are priced in the market the price of the units can now move up or down.

The Marriott Income Fund distributed 0.5708 cents per unit in December 2010. The portfolio was restructured in July to include premium NCD instruments, floating corporate debt, preference shares and inflation-linked bonds.

Floating corporate debt provides a higher yield than cash and the additional credit risk has been managed by loaning only to those companies in which Marriott is currently invested in our equity and property portfolios. The capital value of the debt is unaffected by changes to interest rates as it readjusts to current rates every 3 months.

Listed preference shares also provide a relatively high yield with the opportunity of capital gain should these current yields return to their lower long term averages. Inflation linked bonds when linked with premium NCD's, offer higher levels of income than cash as well as low capital volatility and a known real return (return in excess of inflation) if held to maturity. The target asset allocation is:

o Floating rate corporate debt 20%
o Listed preference shares 10%
o Structured NCD's 30%
o Inflation linked bonds 20%
o Cash 20%

Property and long bonds yields are well below their historic averages and will only be included when the opportunity for capital gains outweighs the risk of capital loss. It must be noted that as the portfolio now includes instruments that are priced in the market the price of the units can now move up or down.