The Marriott Income Fund distributed 0.4725 cpu in September 2012. The portfolio is positioned to produce a relatively high income and includes cash deposits, corporate debt, preference shares, inflation linked bonds and high yielding equities.

Money in the bank is currently yielding approximately 4.5% - the lowest it has been for more than 38 years. We continue to be of the opinion, however, that inflation will resume it's upwards trend in light of the continued weakness of the Rand as well as increasing oil and food prices. We therefore maintain a 10% exposure to inflation linked bonds and high yielding equities which will benefit from rising inflation. We look forward to re-investing in property and long bonds when the income streams are appropriately priced.

The attached pie chart shows the current levels of these instruments. The target asset allocation is:

Floating rate corporate debt 10%
High yielding equities 5%
Listed preference shares 4%
Inflation linked bonds 10%
Cash 71%

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

The Marriott Income Fund distributed 0.4858 cpu in June 2012. The portfolio is positioned to produce a relatively high income and includes cash deposits, corporate debt, preference shares, inflation linked bonds and high yielding equities.

Income from approximately 36% of the portfolio would be influenced by interest rate movements (within 6 months) and 10% from changes to the inflation rate. We feel this is a prudent positioning given that inflation is set to continue rising in 2012 and that the next move in interests rates is likely to be upwards.

We look forward to re-investing in property and long bonds when the income streams are appropriately priced.

The attached pie chart shows the current levels of these instruments. The target asset allocation is:

o Floating rate corporate debt 10%

o High yielding equities 5%

o Listed preference shares 4% o Inflation linked bonds 10%

o Cash 71%

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

The Marriott Income Fund distributed 0.4704 cpu in March 2012. The portfolio is structured to continue to produce a relatively high distribution and includes cash deposits, corporate debt, preference shares, inflation linked bonds and high yielding equities. The average term for the deposits held with the five major South African Banks is 108 days.

Equities in the portfolio include Vodacom, MTN, Altech and Liberty Holdings. Equities may not be considered a 'traditional' asset class for 'income' type funds, however, when one looks at the nature of the income stream currently being produced by these companies their inclusion fits well with Marriott's Income Focused Investment Style.

We look forward to re-investing in property and long bonds as these are the asset classes 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.

The attached pie chart shows the current levels of these instruments. 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 10%
o Cash 67.5%

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

The Marriott Income Fund distributed 0.7512 cpu in December 2011. The portfolio is structured to continue to produce a relatively high distribution and includes cash deposits, corporate debt, preference shares, inflation linked bonds and high yielding equities. The average term for the deposits held with the five major South African Banks is 51 days.

Equities in the portfolio include Vodacom, MTN, Altech and Liberty Holdings. Equities may not be considered a 'traditional' asset class for 'income' type funds, however, when one looks at the nature of the income stream currently being produced by these companies their inclusion fits with Marriott's Income Focused Investment Style. 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.

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.