The funds continue to generate above-inflation income growth in US dollars, mainly as a result of recent strong economic growth, particularly in the United States. The current forward yield of 4.0% compares favourably with the 2.8% yield generated by averaging the S&P 500 dividend yield and the yield on the JP Morgan Global Government Bond Index.
The fund continues to focus on investing in companies (whether industrial, financial or real estate) in the US, UK and Europe where the current dividend yield and future income growth prospects will ensure that the fund not only produces a distributable income stream, but also provides capital growth in excess of US consumer inflation in the long-term. While average market dividend yields remain low (although they have been rising for the past 2 years) we believe there is currently an opportunity to lock in good dividend yields from some of the world's leading companies. As a result, the fund's exposure to equities has been maintained at 78.4%, while the fund's bond and property exposure has been reduced marginally and now stands at 9.8% and 7% respectively, with the balance in cash.
Based on the current income yield of 4.0% (pre-tax), an expected yield in 5 years time of between 3.5% and 4.5% and income growth in US dollars of between 4% and 6% per annum, we are forecasting total returns of between 7% and 14% per annum.

The funds continue to generate above-inflation income growth in US dollars, mainly as a result of strong economic growth, particularly in the United States. The current forward yield of 4.0% compares favourably with the 2.8% yield generated by averaging the S&P 500 dividend yield and the yield on the JP Morgan Global Government Bond Index.

It is anticipated that over time, the funds will produce capital growth in line with income growth. Over shorter periods there is likely to be more volatility with prices rising and falling as sentiment changes. Factors which influence investor sentiment include, but are not limited to, changes in interest rates, political instability, rising & falling inflation and fluctuations in exchange rates.

The fund continues to focus on investing in companies (whether industrial, financial or real estate) in the US, UK and Europe where the current dividend yield and future income growth prospects will ensure that the fund not only produces a distributable income stream, but also provides capital growth in excess of US consumer inflation in the long-term. While average market dividend yields remain low (although they have been rising for the past 2 years) we believe there is currently an opportunity to lock in good dividend yields from some of the world's leading companies. As a result, the fund's exposure to equities has been maintained at 81%, while the fund's bond and property exposure has been reduced marginally and now stands at 11% and 7% respectively, with the balance in cash.

Based on the current income yield of 4.0% (pre-tax), an expected yield in 5 years time of between 3.5% and 4.5% and income growth in US dollars of between 4% and 6% per annum, we are forecasting total returns of between 7% and 14% per annum

Distribution
The March 2006 distribution amounted to 3.2407 cents per unit, which represents growth of 9.3% over the corresponding period last year, reflecting the fact that the companies in the fund are growing their income on the back of an accelerating global economy.

Future Income
The fund is likely to produce above-average income growth over the medium-term, based on current economic growth projections in the regions in which the fund is invested (i.e. the United States, the United Kingdom and Europe). The initial forward yield of 4.1% compares favourably with the 2.7% yield generated by averaging the S&P 500 dividend yield and the yield on the JP Morgan Global Government Bond Index.

Capital
Over time, the fund will produce capital growth in line with the growth in income. Over shorter periods there is likely to be more volatility with prices rising and falling as sentiment changes. Factors which influence investor sentiment include, but are not limited to, changes in interest rates, political instability, rising & falling inflation and fluctuations in exchange rates. The fund will look for companies (whether industrial, financial or real estate) in the US, UK and Europe where the current dividend yield and future income growth prospects will ensure that the fund not only produces a distributable income stream, but also provides capital growth in excess of US consumer inflation in the long-term. While average market dividend yields remain low (although they have risen significantly over the past 2 years) we believe there is currently an opportunity to lock in good dividend yields from some of the world's leading companies. As an example, the fund's 27% exposure to UK financial and industrial companies is yielding in excess of 4.1%, with income growth expected to average around 5% per annum over the next 5 years. For diversification, the fund holds investment grade sovereign and corporate bonds. While producing a known level of income, these bonds may be subject to capital fluctuations, particularly if central banks continue to raise official interest rates in the US and Europe. As a result of strong income growth having not yet translated into higher prices (i.e. initial yields are now higher), the fund's exposure to equities has been increased further and now stands at 81%. The fund's bond exposure has been maintained at around 12%, while the real estate exposure continues to reduce (as prices rise) and now stands at just 7%. Based on the current income yield of 4.1% (pre-tax), an expected yield in 5 years time of between 3.5% and 4.5%, and income growth in US Dollars of between 4% and 6% per annum, we are forecasting total returns of between 7% and 14% per annum.

Distribution
The December 2005 distribution amounted to 4.9318 cents per unit.

Future Income
The fund is currently yielding 4.2% (gross), which compares favourably with the 2.5% yield generated by the average of the S&P 500 dividend yield and the yield of the JP Morgan Global Government Bond Index. The equity and listed real estate components of the fund are expected to generate income growth in excess of US consumer inflation (currently approximately 3%) over the next 3 to 5 years.

Capital
We will continue to look for companies (whether industrial, financial or real estate) and industries in the US, UK and Europe where the current dividend yield and future income growth prospects will ensure the fund not only produces a distributable income stream, but also provides capital growth in excess of US consumer inflation. Average market dividend yields have risen significantly over the past 2 years allowing investors the opportunity to lock in good dividend yields from some of the world's leading companies. As an example, the fund's 25% exposure to UK financial and industrial companies is yielding in excess of 4.0%, with income growth expected to average around 5% per annum over the next 5 years. For diversification, the fund holds bonds that are limited to investment grade sovereign and corporate issues. While producing a known level of income, these bonds may be subject to capital fluctuations, particularly if central banks raise interest rates further. The fund's exposure to equities is 75%, while bond exposure is 13% and real estate exposure has been reduced to under 10%. Based on the current income yield of 4.2% (pre-tax), an expected yield in 5 years time of between 3.8% and 4.2%, and income growth in US dollars of between 4% and 6% per annum, we are forecasting total returns of between 9% and 13% per annum.