The Prudential Income Fund distributed 7 cpu in September. The fund's asset allocation remains largely unchanged from the previous month. The decision to hold only 35% equities has been the result of a rapid re-rating of the South African equity market (which has served the fund well) and the consequent reductions in dividend yields. To supplement this relatively low level of equities, inflation linked bonds were added to the portfolio. Inflation linked bonds behave in a similar fashion to equities, however risk is dramatically reduced as the government guarantees both capital and income growth at the rate of inflation. Preference shares, also recently added, offer an attractive yield relative to cash especially on an after tax basis. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves. The fund's international exposure remains at the maximum 20% level as we continue to see significant merit in both First World equities and international Real Estate.

The Prudential Income Fund distributed 7 cpu in June. During the course of the month the funds local equity exposure has been reduced to 35% from approximately 43% and replaced with a combination of inflation linked bonds and preference shares. The decision to down-weight equities has been the a result of a rapid re-rating of the South African equity market (which has served the fund well) and the consequent reductions in dividend yields. Inflation linked bonds behave in a similar fashion to equities, however risk is dramatically reduced as the government guarantees both capital and income growth at the rate of inflation. Preference shares are also offering an attractive yield relative to cash especially on an after tax basis. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves. The fund's international exposure remains at the maximum 20% level as we continue to see significant merit in both First World equities and international Real Estate.

The Marriott Prudential Fund of Funds will change it's name to Marriott Prudential Income Fund of Funds, effective from 27 May 2010

The Prudential Income Fund distributed 7 cpu in March. The fund looked to take advantage of unusually high dividend yields in leading Financial and Industrial companies by gradually increasing its equity exposure over the last six months. This has served the fund well as we have witnessed a positive re-rating in these stocks. The fund continues to hold a significant cash balance as signs of an economic recovery in South Africa still remain fragile. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves. The fund's international exposure remains at the maximum 20% level as we continue to see significant merit in equities from the First World with stock markets continuing to rally over the past three months on the back of improving economic data. A portion of the fund has been allocated to International Real Estate; yields of over 4% within the Real Estate sector are very attractive relative to both bonds and cash.

The Prudential Income Fund distributed 7 cpu in December. The fund looked to take advantage of unusually high dividend yields in leading Financial and Industrial companies by gradually increasing its equity exposure over the last six months. This has served the fund well as we have witnessed a positive re-rating in these stocks. The fund continues to hold a significant cash balance as signs of an economic recovery in South Africa still remain fragile. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves. The fund's international exposure remains at the maximum 20% level as we continue to see significant merit in equities from the First World with stock markets continuing to rally over the past three months on the back of improving economic data. A portion of the fund has been allocated to International Real Estate; yields of over 4% within the Real Estate sector are very attractive relative to both bonds and cash.