Performance review
The fund returned 20.46% for the year underperforming the benchmark return of 21.55%.The portfolio currently invests in all maturities over the very short end of the yield curve on all deposits. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well diversified portfolio of developed market currencies.

Market review
US dollar 3 month deposit rates increased from 2.73% to 4.10% during the month on the back of credit concerns and the banking crisis. The FOMC decided to keep the rates unchanged on the 16th of September. Expectations are that the FOMC will leave rates unchanged at 2% at the next FOMC meeting taking place on the 29th of October. Looking forward the Fed Fund futures discounts a possible cut in the near future although we believe that rates would stay unchanged. EUR 3 month deposit rates traded in a narrow range between 4.83% and 4.98% during the month. The ECB decided to keep the lending rates unchanged at 4.25% in September. The next meeting will take place on the 2nd of October. Market expectations are that the ECB will leave rates unchanged the next meeting. The GBP 3 month deposit rates increased from 5.68% to 5.95% on the back of credit concerns. The BOE decided to keep the lending rate unchanged at 5% during September. The next meeting will take place on the 9th of October. We expect that the BOE will leave interest rates unchanged at 5%.

Performance review
The portfolio returned 14.19% for the year to May underperforming the17.42% returned by the benchmark. The portfolio currently invests in all maturities over the very short end of the yield curve on all deposits. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well diversified portfolio of developed market currencies.

Market review
US dollar 3-month deposit rates came down from 2.82% to 2.66% during the month. The next FOMC meeting will take place on the 25th of June. Expectations are that the FOMC will leave rates unchanged at 2%. Looking forward the Fed Fund futures discounts a high possibility for interest rates to stay unchanged but concerns about inflation could change the picture. Maturities were reinvested in the 3-month area of the yield curve.

EUR 3-month deposit rates came down from 4.78% to 4.69% during the month. The ECB left the lending rate unchanged at 4% during May. The next meeting will take place on the 5th of June. Market expectations are that the ECB will keep interest rates unchanged at the next meeting. Currently we invest across all maturities in the 3-month area of the yield curve.

The GBP 3-month deposit rates came down from 5.79% to 5.74% during the month. The BOE decided to keep the lending rate unchanged at 5% during May. The next meeting will take place on the 5th of June. We expect that the BOE will leave interest rates unchanged. We currently invest across all maturities in the 3-month area of the yield curve.

Performance review
The portfolio returned 21.60% for the year to March underperforming the 23.60% returned by the benchmark. The portfolio currently invests across all maturities in the very short end of the yield curve on deposits. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well-diversified portfolio of developed market currencies.
Market review
US dollar 3-month deposit rates came down from 2.95% to 2.63% during the month. The FOMC decided to cut the Fed fund rate with another 75 basis points from 3% to 2.25% on the 18th of March on the back of fears about the slowdown in growth and liquidity in money markets. Looking forward the fed fund futures discounts a high possibility for another cut in interest rates at the next meeting-taking place on the 30th April.

EUR 3 month deposit rates marginally increased from 4.19% to 4.66% during the month. The ECB left the lending rate unchanged at 4% during March. The next meeting will take place on the 10th of April. Market expectations are that the ECB will keep interest rates unchanged at 4%. Looking forward the prospects of a cut later in the year looks good. The current 3-month forward rates expect interest rates to trend sideways in the short term but in the long term the forward rates discount an interest rate cut.

The GBP 3 month deposit rates marginally increased from 5.66% to 5.86% during the month. The BOE decided to keep interest rates unchanged at the meeting on the 6th of March. The next meeting will take place on the 10th of April. We expect that the BOE will leave interest rates unchanged.

Money market rates during December increased across the curve. The 3 months Jibar increased from 11.06% to 11.25% and the 12-month Jibar from 11.68% to 11.94%. This was mainly due to the Repo rate hike of 50bp in early December.

Looking at the 3 month forward rates, the market expects the Repo rate to remain at 11% while the long-term forwards suggest that we could see some relief over the next 12 months. Our expectation is for the Repo rate to remain unchanged over the short term.

During the month major maturities were invested in the short end of the yield curve while investing a small portion in the 1-year to take advantage of higher yield and keeping a minimum balance in the current account.