South Africa's consumer inflation rose to 6.4% year on year in August from a 6.3% year on year increase in July. This was the second consecutive month inflation remained above the Reserve Bank target band of 3-6%. A significant contributor to the increase in CPI was the 32c/? jump in the petrol price that occurred in July. Rand weakness and above inflation wage increases will likely continue to exert upward pressure on inflation in the months ahead. Despite mounting inflationary pressures the South African Reserve Bank is expected to maintain low interest rates as the country's economic growth prospects remain subdued. Money in the bank is currently yielding approximately 4.5% - the lowest it has been for more than 39 years. To maximise yield in this low interest rate environment, the term to maturity of the fund is being kept close to the maximum 90 days allowable limit for money market funds.

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.

South Africa's inflation rate slowed to 5.6% y-o-y in May from 5.9% y-o-y in April, primarily as a result of a 73c/litre decline in the petrol price. This relief will however be short-lived as a petrol price hike of 85c/litre is expected in July, driven mainly by the rand's recent sharp depreciation. The increase in the petrol price coupled with broad-based inflationary pressures means CPI is likely to increase in the months ahead and could breach the Reserve Bank's 6% target band before the end of the year.

Despite mounting inflationary pressures the South African Reserve Bank is expected to maintain low interest rates as the country's economic growth prospects remain subdued. Money in the bank is currently yielding approximately 4.5% - the lowest it has been for more than 38 years. To maximise yield in this low interest rate environment, the term to maturity of the fund is being kept close to the maximum 90 days allowable limit for money market funds.

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.

Consumer price inflation (CPI) increased to 5.9% y-o-y in February, well above market expectations and just below the Reserve Banks's 6% inflation targeting ceiling. The main drivers of the monthly rise were miscellaneous goods and services and transport costs. The former included the impact of the annual health insurance costs survey, while the latter reflected the 3.5% increase in the petrol price. Excluding food and energy, core inflation rose significantly to 5.3% y-o-y (4.7% y-o-y previously) suggesting more broad based inflationary pressures.

Despite mounting inflationary pressures the South African Reserve Bank is expected to maintain low interest rates as the country's economic growth prospects remain subdued. Money in the bank is currently yielding approximately 4.5% - the lowest it has been for more than 38 years. To maximise yield in this low interest rate environment, the term to maturity of the fund is being kept close to the maximum 90 days allowable limit for money market funds.

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.

Consumer price inflation for November remained unchanged from the 5.6% y/y registered in October as a further rise in the cost of food was offset by lower fuel prices during the month. Food prices rose 1.3% m/m resulting in annual food inflation picking up from 6.8% to 7.5%. It is our view that risks to global inflation is particularly high at the moment as a result of the policies of central banks to print more money in order to stimulate economic growth. Despite mounting inflationary pressures the South African Reserve Bank is expected to maintain low interest rates as the country's economic growth prospects remain subdued. Money in the bank is currently yielding approximately 4.5% - the lowest it has been for more than 38 years. To maximise yield in this low interest rate environment, the term to maturity of the fund is being kept close to the maximum 90 days allowable limit for money market funds. 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.