The Investec Managed Fund Namibia follows the house-view asset allocation, within the constraints of pension fund prudential requirements, and a minimum investment of 35% in Namibian assets. Following the global equity markets sell-off, the local financial markets came under pressure in 2Q02. The weak local performance for 2Q02 was lead by the Resources sector (-8%), while Small Caps (13.1%), Midcaps (10.5%) and Ex-Resources (9.0%) came to the rescue and as a result the JSE All Share Index did -3.1% for the quarter. The Investec Managed Fund Namibia maintained an overweight stance in Financials and had a relatively large exposure to Banks and Mining Materials. Banks outperformed both the JSE and NSX, while Resources went into a slump. In the Namibian portfolio, where the Resource Sector (Anglo American Plc accounts for nearly 60% of the NSX market capitalization) and the Financial Sector (more than 30% of the NSX market capitalisation) dominate, the fund retained substantial exposures to these two Sectors. The fund also had around 20% exposure to bonds and a 20% exposure to cash. Bonds struggled over the last few months, while returns on Cash were moderate. Against this background the Namibia Managed Fund posed a return of 1.84% for the quarter ended 30 June, hence for the year it returned 13.12%. The depreciation of the Rand/N$ during 2001 and consequent higher inflation rates, caused monetary authorities to raised interest rates a further 100 bp during June 2002 (the third rise for the year), which normally work its way through the economy and should create a negative outlook for Industrial and Financial (with local revenue only) shares. Normally, against this background one should reduce the fund's exposure to the Industrial and Financial sector. The fund managers however, remain bullish on equities and will favour Financials and Industrials over Resources, as we believe the valuation gap is too wide. In addition to the fact that financial and Industrial offer good value at current prices, they believe the wider benefits of rising commodity prices on the local economy still has to be discounted in the remainder of the market.

The Investec Managed Fund Namibia follows the house-view asset allocation, within the constraints of pension fund prudential requirements, and a minimum investment of 35% in Namibian assets. Following the global equity markets sell-off, the local financial markets came under pressure in 2Q02. The weak local performance for 2Q02 was lead by the Resources sector (-8%), while Small Caps (13.1%), Midcaps (10.5%) and Ex-Resources (9.0%) came to the rescue and as a result the JSE All Share index did -3.1% for the quarter. The Investec Managed Fund Namibia maintained an overweight stance in Financials and had a relatively large exposure to Banks and Mining Materials. Banks outperformed both the JSE and NSX, while Resources went into a slump. In the Namibian portfolio, where the Resource Sector (Anglo American Plc accounts for nearly 60% of the NSX market capitalization) and the Financial Sector (more than 30% of the NSX market capitalisation) dominate, the fund retained substantial exposures to these two Sectors. The fund also had around 20% exposure to bonds and a 20% exposure to cash. Bonds struggled over the last few months, while returns on Cash were moderate. Against this background the Namibia Managed Fund posed a return of 1.84% for the quarter ended 30 June, hence for the year it returned 13.12%. The depreciation of the Rand/N$ during 2001 and consequent higher inflation rates, caused monetary authorities to raised interest rates a further 100 bp during June 2002 (the third rise for the year), which normally work its way through the economy and should create a negative outlook for Industrial and Financial (with local revenue only) shares. Normally, against this background one should reduce the fund's exposure to the Industrial and Financial sector. The fund managers however, remain bullish on equities and will favour Financials and Industrials over Resources, as they believe the valuation gap is too wide. In addition to the fact that financial and Industrial offer good value at current prices, they believe the wider benefits of rising commodity prices on the local economy still has to be discounted in the remainder of the market.

The Investec Managed Fund Namibia follows the house-view asset allocation, within the constraints of pension fund prudential requirements, and a minimum investment of 35% in Namibian assets. Following the outstanding returns for the last quarter of the year 2001, local financial markets kept on performing reasonably well in 1Q02. The Resources sector continues to outperform, while financials struggled and became even cheaper. On the equity side, the Managed Fund Namibia maintained an overweight stance in Resources and Financials and had a relatively large exposure to Banks and Mining Materials. Banks underperformed both the JSE and NSX, while Resources kept on rallying.

In the Namibian portfolio, where the Resource Sector (Anglo American Plc accounts for nearly 60% of the NSX market capitalisation) and the Financial Sector (more than 30% of the NSX market capitalisation) dominate, the fund retained substantial exposures to these two Sectors.

The fund also had around 20% exposure to bonds and a 20% exposure to cash. Bonds struggled over the last few months, while returns on Cash were moderate.

Against this background the Namibia Managed Fund posed a negative return for the quarter ended 31 March 2002, hence for the year it returned 22.17%.

The depreciation of the Rand/N$ during 2001 caused interest rates to be increased during January 2002, which should work its way through the economy and create a negative outlook for Consumer and Financial (with local revenue only) shares. Against this background the fund manger believes that Consumers and Financials (with local revenue only) should underperform in the short to medium term. On the back of this, the fund has already reduced its fund’s exposure to the financial sector.