Property held in the fund is at the minimum level of 85% and the use of single stock futures has further brought down the effective exposure to approximately 60%. Our current property sector positioning incorporates industrial, office and retail exposure (GLA) of approximately 42%, 28% and 30% respectively. Our retail sector exposure remains well below the sector average of approximately 41%. This is in line with Marriott's expectation that the retail sector will struggle in the current economic environment due to an increased level of unemployment, consumer deleveraging and increasing electricity prices. We have positioned the portfolio to favor more liquid stocks and restrict our universe to property funds with a market capitalisation in excess of R2-billion as we believe them to be more resilient in the current environment.

In light of South Africa's subdued economic environment and relatively low property yields, the fund has been positioned to offer maximum capital protection to capital- sensitive investors. With numerous upside risks to the South African inflation outlook, and an inevitable increase in the supply of long dated government bonds due to SA's deteriorating fiscal position, property exposure within the fund will be kept to a minimum and hedges will remain in place. Should property prices decline as expected, Marriott would have the opportunity to reinvest at higher yields (cheaper income streams).

Cash held in the fund is at the maximum level of 15% and the use of single stock futures has further brought down the effective property exposure to approximately 60%. Our current property sector positioning incorporates industrial, office and retail exposure (GLA) of approximately 42%, 28% and 30% respectively. Our retail sector exposure remains well below the sector average of approximately 41%. This is in line with Marriott's expectation that the retail sector will struggle in the current economic environment due to an increased level of unemployment, consumer deleveraging and increasing electricity prices. We have positioned the portfolio to favor more liquid stocks and restrict our universe to property funds with a market capitalisation in excess of R2-billion as we believe them to be more resilient in the current environment.

Future Expectations
In light of South Africa's subdued economic environment and relatively low property yields, the fund has been positioned to offer maximum capital protection to capital- sensitive investors. With numerous upside risks to the South African inflation outlook, and an inevitable increase in the supply of long dated government bonds due to SA's deteriorating fiscal position, property exposure within the fund will be kept to a minimum and hedges will remain in place. Should property prices decline as expected, Marriott would have the opportunity to reinvest at higher yields (cheaper income streams).

Cash held in the fund is at the maximum level of 15% and the use of single stock futures has further brought down the effective property exposure to approximately 60%. Our current property sector positioning incorporates industrial, offi ce and retail exposure (GLA) of approximately 41%, 28% and 31% respectively. Our retail sector exposure remains well below the sector average of approximately 41%. This is in line with Marriott's expectation that the retail sector will struggle in the current economic environment due to an increased level of unemployment, consumer deleveraging and increasing electricity prices. We have positioned the portfolio to favor more liquid stocks and restrict our universe to property funds with a market capitalisation in excess of R2-billion as we believe them to be more resilient in the current environment.

Future Expectations
In light of South Africa's subdued economic environment and relatively low property yields, the fund has been positioned to offer maximum capital protection to capital- sensitive investors. With numerous upside risks to the South African infl ation outlook, and an inevitable increase in the supply of long dated government bonds due to SA's deteriorating fi scal position, property exposure within the fund will be kept to a minimum and hedges will remain in place. Should property prices decline as expected, Marriott would have the opportunity to reinvest at higher yields (cheaper income streams).

Cash held in the fund is at the maximum level of 15% and the use of single stock futures has further brought down the effective property exposure to approximately 60%. Our current property sector positioning incorporates industrial, office and retail sectors of approximately 40%, 30% and 30% respectively. Our retail sector exposure remains well below the sector average of approximately 50%. This is in line with Marriott's expectation that the retail sector will struggle as consumers are impacted by a slowing economy. To ensure maximum liquidity for investors, all property funds held within the portfolio have a market capitalisation in excess of R2-billion.

Future Expectations
In light of South Africa's subdued economic environment and relatively low property yields, the fund has been positioned to offer maximum capital protection to capital- sensitive investors. With numerous upside risks to the South African inflation outlook, and an inevitable increase in the supply of long dated government bonds due to SA's deteriorating fiscal position property, exposure within the fund will be kept to a minimum and hedges will remain in place. Should property prices decline as expected, Marriott would have the opportunity to reinvest some of the fund's large cash holding into the same securities at a higher yield (cheaper income streams).