Distribution
The quarterly distribution declared at the end of September was 21.6537 cents per unit, 7% higher than the previous quarter's distribution of 20.2936 cents per unit. The total distribution for 2004 of 70.0568 cents per unit was 11.5% higher than 2003's distribution of 62.8586 cents per unit. Over the last 3 years the Marriott Dividend Growth Fund has grown distributions by an average of 15% per annum, which is above our medium term expected average future growth rate of 8-10% per annum.

Future Income
South Africa's long-term growth trend looks positive, with both local productivity and the global economy growing and the Rand weakening, and the securities in the portfolio have increased their dividends once again this year. The long-term investor should find the Dividend Growth Fund attractive at current levels as many quality financial and industrial companies are still available below their traditional premiums to the market and the after-tax income from these equities should overtake that available from other asset classes in a relatively short time. For private investors in the upper tax brackets the (tax exempt) dividend income available from many solid blue-chip companies already matches or exceeds their after-tax return on cash, and this gap will increase as dividends grow.

Capital
At current levels financial & industrial companies look undervalued relative to bonds and fairly valued relative to their historical average rating. Total returns from the fund over the next 5 years are expected to be approximately 10% - 12% per annum. This forecast is based on an initial income yield of 3.25%, annual growth in income of 8%-10% and no significant change in rating. With reasonable economic growth, this expected total return is realistic and achievable.

Distribution
The quarterly distribution declared at the end of June was 20.2936 cents per unit, 4% higher than the previous quarter's distribution of 19.5192 cents per unit. The total distribution for 2004 of 70.0568 cents per unit was 11.5% higher than 2003's distribution of 62.8586 cents per unit. Over the last 3 years the Marriott Dividend Growth Fund has grown distributions by an average of 15% per annum, which is above our medium term expected average future growth rate of 10-12% per annum.

Future Income
Rand strength over the last two years resulted in many companies showing foreign exchange losses and it was principally for this reason that the All Share Index barely grew its dividends over the last 2 years, despite an otherwise good performance by most companies. The Dividend Growth Fund was not affected to the same extent due to its much smaller exposure to commodity producers and other companies with significant offshore revenues. South Africa's long-term growth trend still looks positive, with productivity and the global economy growing and the Rand weakening, and we expect the securities in the portfolio to grow their dividends by approximately 10% - 12% this year. The long-term investor should find financial and industrial companies attractive at these levels, as the after-tax income from an equity portfolio should overtake that available from other asset classes in a relatively short time. For private investors in the upper tax brackets the (tax exempt) dividend income available from many solid blue-chip companies already matches or exceeds their after-tax return on cash, and this gap will increase as dividends grow.

Capital
At current levels financial & industrial companies look undervalued relative to bonds and fairly valued relative to their historical average rating. Total returns from the fund over the next 5 years are expected to be approximately 13% - 15% per annum. This forecast is based on an initial income yield of 3.5%, annual growth in income of 10%-12% and no significant change in rating. With reasonable economic growth, this expected total return is realistic and achievable.

Distribution
The quarterly distribution declared at the end of March was 19.5192 cents per unit. The total distribution for 2004 of 70.0568 cents per unit was 11.5% higher than 2003's distribution of 62.8586 cents per unit. Over the last 3 years the Marriott Dividend Growth Fund has grown distributions by an average of 15% per annum, which is above our medium term expected average future growth rate of 10-12% per annum.
Future Income
Rand strength over the last two years has resulted in many companies showing foreign exchange losses and it is principally for this reason that the All Share Index barely showed any dividend growth last year, despite an otherwise good performance by most companies. The Dividend Growth Fund was not affected to the same extent due to its much smaller exposure to commodity producers and other companies with significant offshore revenues. South Africa's long-term growth trend still looks positive, with productivity growing, global growth and the Rand expected to weaken, and so we expect the securities in the portfolio to grow their dividends by approximately 10% - 12% this year. The long-term investor should find financial and industrial companies attractive at these levels, as the after-tax income from an equity portfolio should overtake that available from other asset classes in a relatively short time. For private investors in the upper tax brackets the (tax exempt) dividend income available from many solid blue-chip companies already matches or exceeds their after-tax return on cash, and this gap will increase as dividends grow.
Capital
At current levels financial & industrial companies look undervalued relative to bonds and fairly valued relative to their historical average rating. Total returns from the fund over the next 5 years are expected to be approximately 13% - 15% per annum. This forecast is based on an initial income yield of 3.4%, annual growth in income of 10%-12% and no significant change in rating. With reasonable economic growth, this expected total return is realistic and achievable.

Distribution
The quarterly distribution declared at the end of December was 18.5711 cents per unit. The total distribution for 2004 of 70.0568 cents per unit was 11.5% higher than 2003's distribution of 62.8586 cents per unit. Over the last 3 years the Marriott Dividend Growth Fund has grown distributions by an average of 15% per annum, which is above our medium term expected average future growth rate of 10-12% per annum.
Future Income
The recovery of the rand has resulted in many companies showing foreign exchange losses and it is principally for this reason that the All Share Index barely showed any dividend growth last year despite an otherwise good performance by most companies. (the Dividend Growth Fund was not affected to the same extent due to its much smaller exposure to commodity producers and other companies with significant offshore revenues). South Africa's long-term growth trend still looks positive, with productivity growing, global growth and the rand expected to weaken, and so we expect the securities in the portfolio to grow their dividends by approximately 10% - 12% this year. The long-term investor should find equities attractive at these levels, as the after-tax income from an equity portfolio should overtake that available from other asset classes in a relatively short time. For private investors in the upper tax brackets the (tax exempt) dividend income available from many solid blue-chip companies already matches or exceeds their after-tax return on cash, and this gap will increase as dividends grow.
Capital
At current levels financial & industrial companies look undervalued relative to bonds and fairly valued relative to their historical average rating. Total returns from the fund over the next 5 years are expected to be approximately 12% - 15% per annum. This forecast is based on an initial income yield of 3.3%, annual growth in income of 10%-12% and no significant change in rating. With reasonable economic growth, this expected total return is realistic and achievable.