Distribution
The September 2005 distribution amounted to 3.1077 cents per unit (June 2005: 3.0980 cpu), bringing the total distribution for the last four quarters to 12.4067 cpu.

Future Income
There is uncertainty as to the short term direction of interest rates. It would appear that we are near the bottom of an interest rate cycle with the 1 - 2 year expectation being higher rates than current levels. The yields on long bonds remain too low for inclusion in the fund, especially when bond yields are compared with earnings yields of equities. The portfolio is unlikely to change over the next quarter and hence the expected income of the fund is likely to remain materially the same.

Capital
In our opinion, the capital values of long bonds remain at unreasonably high levels with bond yields remaining lower than those of listed property. As a result, there is no exposure to long dated bonds.
In our opinion, SA listed property is currently overvalued.
1. Interest rates appear to be at the bottom of the current cycle, with high oil prices and a weakening currency putting pressure on inflation.
2. Current income yields of under 8% are well below historic averages.
3. Income yields are lower than those of long bonds. Bonds are considered expensive.
4. SA listed property securities are currently trading at premiums to net asset value in excess of 20%.
5. On a positive note, listed property companies are reporting healthy rental growth from the underlying portfolios, although this will only be experienced by investors in the fund in the first quarter of 2006. An income dependent investor, having secured an income yield that is currently higher than most other options, should expect capital declines if interest rates rise.

Due to current prices, the property and bond exposure in this fund should not be increased. As such, new inflows would have to be directed to liquid assets which would dilute future portfolio distributions. Thus, in order to protect the interests of existing investors, this portfolio remains closed to new investments. To protect the current income levels of the fund, the existing exposure to property will be maintained. Investors may experience some capital weakness as a result.

Distribution
The distribution declared at the end of June 2005 was 3.0980 cents per unit (March 2005: 3.0702 cpu) bringing the total distributed for the last four quarters to 12.36 cents per unit. Distributions are likely to remain at this level unless there is a significant change in interest rates or a higher than expected increase in rental growth from listed property.

Future Income
There is uncertainty as to the short term direction of interest rates. It would appear that we are near the bottom of an interest rate cycle with the 1 - 2 year expectation being higher rates than current levels. The yields on long bonds remain too low for inclusion in the fund, especially when bond yields are compared with earnings yields of equities. The portfolio is unlikely to change over the next quarter and hence the expected income of the fund is likely to remain materially the same.

Capital
In our opinion, the capital values of long bonds remain at unreasonably high levels with bond yields remaining lower than those of listed property. As a result, there is no exposure to long dated bonds.

In our opinion, SA listed property is currently overvalued.
1. Interest rates appear to be at the bottom of the current cycle, with high oil prices and a weakening currency putting pressure on inflation.
2. Current income yields of 8% are well below historic averages.
3. Income yields are at the same level as those of long bonds. Bonds are considered expensive.
4. SA listed property securities are currently trading at premiums to net asset value in excess of 20%.
5. On a positive note, there is healthy rental growth from the underlying property in the portfolios, although this will only be experienced by investors in the fund in approximately 12 months time.
An income dependent investor, having secured an income yield that is currently higher than most other options, should expect capital declines if interest rates rise.

Due to current prices, the property and bond exposure in this fund should not be increased. New inflows would have to be directed to liquid assets which would dilute future portfolio distributions. Thus, in order to protect the interests of existing investors, this portfolio remains closed to new investments. To protect the current income levels of the fund, the existing exposure to property will be maintained. Investors may experience some capital weakness as a result.

Distribution
The distribution declared at the end of March 2005 was 3.0702 cents per unit (December 2004: 3.1308 cpu) bringing the total distributed for the last four quarters to 12.3197 cents per unit. Distributions are likely to remain at this level unless there is a significant change in interest rates or a higher than expected increase in rental growth from listed property.
Future Income
There is uncertainty as to the short term direction of interest rates. It would appear that we are near the bottom of an interest rate cycle with the 1 - 2 year expectation being higher rates than current levels. The yields on long bonds remain too low for inclusion in the fund, especially when bond yields are compared with earnings yields of equities. The portfolio is unlikely to change over the next quarter and hence the expected income of the fund is likely to remain materially the same.
Capital
In our opinion, the capital values of long bonds remain at unreasonably high levels with bond yields remaining lower than those of listed property.
As a result, there is no exposure to long dated bonds.
In our opinion, SA listed property is currently overvalued.
1. Interest rates appear to be at the bottom of the current cycle, with high oil prices and a weakening currency putting pressure on inflation.
2. Current income yields of 8% are well below historic averages.
3. Income yields are at the same level as those of long bonds. Bonds are considered expensive.
4. SA listed property securities are currently trading at premiums to net asset value in excess of 20%.
5. On a positive note, there is healthy rental growth from the underlying property in the portfolios, although this will only be experienced by investors in the fund in approximately 12 months time. An income dependent investor, having secured an income yield that is currently higher than most other options, should expect capital declines if interest rates rise.
Due to current prices, the property and bond exposure in this fund should not be increased. New inflows would have to be directed to liquid assets which would dilute future portfolio distributions. Thus, in order to protect the interests of existing investors, this portfolio remains closed to new investments. To protect the current income levels of the fund, the existing exposure to property will be maintained. Investors may experience some capital weakness as a result.

Marriott Core Income Fund (MCI) focuses on income and growth based on property and fixed interest assets. At present the firm is cautious. In particular, SA listed property is overvalued, says MCI manager Michael Roland. This is at a time when the interest rate cycle appears to be at a low point. He adds that listed property securities are trading at an excessive 20% premium to their net asset value and their average 8% yield is at the same level as that on bonds, which are considered "expensive".

Financial Mail - 6 May 2005

Distribution
The distribution declared at the end of December 2004 was 3.1308 cents per unit (September 2004: 3.0708 cpu) bringing the total distributed for the last four quarters to 12.3197 cpu. Distributions are likely to remain at this level unless there is a significant change in interest rates or a higher than expected increase in rental growth from listed property.

Future Income
There is uncertainty as to the short term direction of interest rates. It would appear that we are near the bottom of an interest rate cycle with the 1 - 2 year expectation being higher rates than current levels. The yields on long bonds remain too low for inclusion in the fund, especially when bond yields are compared with earnings yields of equities. The portfolio is unlikely to change over the next quarter and hence the expected income of the fund is likely to remain materially the same.

Capital
In our opinion, the capital values of long bonds remain at unreasonably high levels with bond yields remaining lower than those of listed property. As a result, there is no exposure to long dated bonds.

In our opinion, SA listed property is currently overvalued.
1. Interest rates appear to be near the bottom of the current cycle.
2. Current income yields at 8% are well below historic averages.
3. Income yields are about 0.5% higher than long bonds. Bonds are considered expensive.
4. SA listed property securities are currently trading at premiums to net asset value in excess of 20%.
5. On a positive note, there are signs of rental growth from property.
An income dependent investor having secured an income yield that is currently higher than most other options should expect capital volatility and short term capital loss may be experienced.

Due to current prices, the property and bond exposure in this fund should not be increased. New inflows would have to be directed to liquid assets which would dilute future portfolio distributions. Thus, in order to protect the interests of existing investors, this portfolio remains closed to new investments. To protect the current income levels of the fund, the existing exposure to property will be maintained. Investors may experience some capital weakness as a result.