Due to our investment philosophy, we divide our holdings into 3 categories. Our core holdings are holdings in shares which we believe have strong and defendable franchises and understandable business models. These shares must also exhibit above average return on equity ratios and sustainable earnings power. Currently 44.9% of the Fund is invested in the following core holdings: Afrox, British American Tobacco, City Lodge Hotels, Famous Brands, Hudaco, Richemont and SAB Miller. The 'discount to intrinsic value' category comprises shares that trade at a reasonable discount to their intrinsic values. Currently 32.7% of the portfolio is invested in this category. The special opportunities category consists out of shares whose valuation we cannot justify using historical performances, but we have a strong conviction of their future earnings potential. Only 2.5% of the Fund's assets are currently invested in this category. The Fund also has international exposure via its 18.8% investment in the Imalivest Worldwide Flexible Fund. The Worldwide Fund follows the same investment philosophy as the domestic Fund and hence we invest in it to get exposure to our international identified core holdings. In addition, the investment in the Worldwide Fund gives the Fund a 0.6% exposure to foreign cash. In total the Fund currently has 1.7% in cash.

Due to our investment philosophy, we divide our holdings into 3 categories.

Our core holdings are holdings in shares which we believe have strong and defendable franchises and understandable business models. These shares must also exhibit above average return on equity ratios and sustainable earnings power. Currently 39.7% of the Fund is invested in the following core holdings: Afrox, British American Tobacco, City Lodge Hotels, Famous Brands, Hudaco, Richemont and SAB Miller.

The 'discount to intrinsic value' category comprises shares that trade at a reasonable discount to their intrinsic values. Currently 35.2% of the portfolio is invested in this category.

The special opportunities category consists out of shares whose valuation we cannot justify using historical performances, but we have a strong conviction of their future earnings potential. Only 2.9% of the Fund's assets are currently invested in this category.

The Fund also has international exposure via its 18.5% investment in the Imalivest Worldwide Flexible Fund. The Worldwide Fund follows the same investment philosophy as the domestic Fund and hence we invest in it to get exposure to our international identified core holdings.

In addition, the investment in the Worldwide Fund gives the Fund a 0.7% exposure to foreign cash. In total the Fund currently has 4.4% in cash.

A surprise 50 basis points interest rate cut was announced by the Reserve Bank governor in March, taking the prime rate down to 10%. This together with rising commodity prices pushed the JSE ALL Share Index to a 20-month high. The core holdings in the Fund make up 33.8% of the portfolio. These are holdings in shares which we believe have strong and defendable franchises and understandable business models. These shares should create consistent shareholder return in the future. Shares in this category include Afrox, British American Tobacco, Famous Brands, Hudaco, Richemont and SAB Miller. The 'discount to intrinsic value' category comprises shares that trade at a reasonable discount to their intrinsic values. Currently 44.5% of the portfolio is invested in this category. The special opportunities category consists out of shares which trade at a discount to their fair values over the short term. Only 2.9% of the Fund's assets are invested in this category. The Fund has international exposure via its 18.5% investment in the Imalivest Worldwide Flexible Fund. The Worldwide Fund follows the same investment philosophy as the domestic Fund and hence we invest in it to get exposure to our international identified core holdings. The investment in the Worldwide Fund also gives the Fund a 1.3% exposure to foreign cash. In total the Fund currently has 1.7% in cash.

The core holdings in the Fund make up 31.5% of the portfolio. These are holdings in shares which we believe have strong and defendable franchises and understandable business models. These shares should create consistent shareholder return in the future. Shares in this category include Afrox, British American Tobacco, Famous Brands, Hudaco, Richemont and SAB Miller.

The 'discount to intrinsic value' category comprises shares that trade at a reasonable discount to their intrinsic values. Currently 43.7% of the portfolio is invested in this category after we added MTN during the past month.

The special opportunities group consists out of shares which trade at a discount to their fair values over the short term. Only 3.1% of the Fund's assets are considered special opportunities.

The Fund has international exposure via its 20.1% investment in the Imalivest Worldwide Flexible Fund. This investment also gives the Fund a 0.6% exposure to foreign cash. In total the Fund has a 2.2% cash holding.