Consumer inflation remained unchanged for the month of August measuring a 5.3% y-o-y in increase in consumer prices. Although we have seen inflation steadily ticking up through 2011, it has to some extent been masked by the strength of the rand which has kept imported inflation at bay, particularly rising food and fuel prices. Almost one third of our Gross Domestic Expenditure (GDE) consists of imports, thus the Rand's recent depreciation against the US dollar will exert significant upward pressure on inflation in the months ahead.

The market is currently pricing in lower inflation for longer which is reflected in lower yields offered in the market. The current cash yield is the lowest it has been in over 30 years. We expect pressure to build on monetary policy and yields to become more attractive and reflect a more realistic expectation of inflation. As a result of this, we are favoring the shorter end of the yield curve, 1 month to 6 months.

The term to maturity of the fund is approximately 80 days. The fund is currently not exposed to any credit linked instruments and is only invested in the five major banking institutions, ensuring the lowest possible risk for our investors.

Consumer inflation continued its upward trend increasing from 4.2% y-o-y in April to 4.6% y-o-y in May. The primary driver of the increase in inflation were food prices which increased by 1.7% m-o-m. Administered price inflation also remains elevated measuring 11.3% y-o-y in May. With limited prospects for further currency appreciation to mask the impact of rising food and energy prices, along with a number of other structural inefficiencies within the SA economy we anticipate this rising trend in inflation to continue throughout 2011. In view of this, we expect the Monetary Policy committee to start increasing interest rates in the latter months of this year.

The term to maturity of the fund is approximately 79 days. The fund is currently not exposed to any credit linked instruments and is only invested in the five major banking institutions, ensuring the lowest possible risk for our investors.

Consumer inflation remained unchanged at 3.7% y-o-y in February. Broad-based disinflationary pressure from rand appreciation has helped to contain inflation to relatively low levels. With limited prospects for further currency appreciation to mask the impact of rising food and energy prices, along with a number of other structural inefficiencies within the SA economy we anticipate that CPI inflation will steadily increase throughout 2011 The term to maturity of the fund is approximately 70 days to maximize the yield of the fund in a stable interest rate environment. The fund is currently not exposed to any credit linked instruments and is only invested in the five major banking institutions, ensuring the lowest possible risk for our investors

Consumer inflation increased from 3.4% y-o-y in October, to 3.6% y-o-y in November. Broad-based disinflationary pressure from rand appreciation is containing inflation to at relatively low levels. We remain concerned, however, about the long term outlook for inflation in South Africa because of the vulnerability of the exchange rate and other structural inefficiencies within the South African economy (currently reflected in elevated administered prices and wage settlements).

The term to maturity of the fund is approximately 73 days to maximize the yield of the fund in a stable interest rate environment. The fund is not exposed to any credit linked instruments and is only invested in the five major banking institutions, ensuring the lowest possible risk for our investors.