Marriott Core Income comment - Sep 09 - Fund Manager Comment29 Oct 2009
The Marriott Core Income Fund distributed 2.9939 cents per unit in September. The fund was restructured four months ago to ensure the production of stable distributions for the next eight months. This restructure involved the purchase of twelve-month negotiable term deposits and the locking in of interest rates which are now higher than current rates. Marriott remains concerned about the effects of the current recession on property earnings with the related risk to a fall in listed property values. There is also concern relating to pressure on bond prices resulting from governments’ necessity to issue bonds to fund an increasing fiscal deficit. Marriott aims to take advantage of any price weakness in either the listed property or the bond market over the eight months as the recessionary effects are fully priced into the property and bond markets. This move into the next part of the investment cycle may result in some volatility in price. Some of the term deposits have been purchased at a premium, which will result in some capital volatility, to a maximum capital loss of 3% over a twelve-month period. Investors have enjoyed capital stability for the last two years, combined with high income distributions; hence this forecast of income stability with a small element of capital volatility remains very attractive especially in the light of the potential for a move into non-cash instruments. The Marriott Core Income Fund should form the core income element of any portfolio as it manages your exposure to property, bonds and cash through the interest rate cycles. Over the last five years, the Marriott Core Income Fund has been the ultimate income solution, producing the most income & total return in the Domestic Fixed Interest Varied Specialist category.
- Over a five-year period. These figures are verified by ProfileData as at 30 September 2009.
Marriott Core Income comment - Jun 09 - Fund Manager Comment31 Aug 2009
The Marriott Core Income Fund distributed 2.7841 cents per unit in June. The fund was recently restructured to ensure the production of stable distributions for the next twelve months. The local economy is currently being challenged by the first recession in seventeen years but is being supported by a reduction in interest rates. Marriott feels that the effects of the recession on property values and bond prices will enable this portfolio to take advantage of lower-priced income streams. Until this opportunity presents itself, a significant portion of the portfolio has been moved from very short-dated deposits into twelve-month termed deposits. This has had the effect of locking in current rates while interest rates decline. This one-year period will enable the portfolio to take advantage of any price weakness in listed property. As the portfolio moves into its next phase of the investment cycle, so too will the effects of some volatility in its price. Some of these instruments have been purchased at a premium, which will result in some capital volatility, with a maximum capital loss of 3% over the twelve-month period. Investors have enjoyed capital stability for the last two years, combined with high income distributions, hence this forecast of income stability with a small element of capital volatility remains very attractive. The Marriott Core Income Fund should form the core income element of any portfolio as it manages your exposure to property, bonds and cash through the interest rate cycles. Over the last five years, the Marriott Core Income Fund has been the ultimate income solution, producing the most income and total return in the Domestic Fixed Interest Varied Specialist category
Marriott Core Income comment - Mar 09 - Fund Manager Comment01 Jun 2009
The Marriott Core Income Fund continues to be exposed to short-term cash deposits to ensure capital stability and take advantage of the highest yields available. Its current term to maturity remains around 27 days to take advantage of the higher yields on offer in this area of the deposit curve. The portfolio is not currently exposed to long-term bonds and listed property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes for their potential inclusion, should appropriate yields be obtained. The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits. The Marriott Core Income Fund should form the core income element of any portfolio as it manages your exposure to property, bonds and cash through the interest rate cycles. Over the last five years, the Marriott Core Income Fund has been the ultimate income solution, producing the most income and total return in the Domestic Fixed Interest Varied Specialist category.
Marriott Core Income comment - Dec 08 - Fund Manager Comment18 Mar 2009
The Marriott Core Income Fund continues with its exposure to short-term cash deposits to ensure capital stability and take advantage of the highest yields available. Its current term to maturity remains around 40 days to take advantage of the higher yields on offer in this area of the deposit curve. The portfolio is not currently exposed to bonds and property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes, however, for their potential inclusion should appropriate yields be obtained.
The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits.
The Marriott Core Income Fund should form the core income element of any portfolio as it manages your exposure to property, bonds and cash through the interest rate cycles. Over the last five years, the Marriott Core Income Fund has been the ultimate income solution, producing the most income and total return in the Domestic Fixed Interest Varied Specialist category.