Global equity markets largely ignored the economic data which is clearly pointing towards a global economic slowdown, choosing to rather focus on the fact that the US interest rate cycle has likely peaked. In South Africa, the Financial and Industrial stocks performed strongly, returning 4.3% and 4.2% respectively. Large cap stocks continued to outperform the Mid- and Small-cap stocks. The South African equity market is now trading very near to its all-time high. Against a backdrop of future slower global growth, rising local interest rates and falling commodity prices, we believe the risks are to the downside and have therefore maintained our cautious approach to equities. The equity exposure within this fund has been kept near to its minimum level of 60%.

The Select Manager Flexible Growth FoF returned 1.33% for the month of September. The Coronation Absolute Fund and the Nedbank Rainmaker fund delivered strong performances, returning 3.1% and 2.3% respectively.

Economic data released in the US during July signaled a clear trend of slowing growth. The 17 consecutive interest rate hikes by the US Federal Reserve are having the desired effect on growth, although it is yet to slow the rising inflationary trend. The Fed has decided to pause on further interest rate hikes, believing that inflation will ultimately start cooling as well. Corporate earnings remain healthy and some attractive opportunities are arising in the large cap sector of the US. For this reason we are in the process of purchasing a pure US large cap equity fund. Across the rest of the globe, developed countries continued to hike interest rates. The ECB and the Bank of England hiked interest rates again and were joined by Japan for the first time in six years. These combined efforts are sure to have a muting effect on global growth. Commodity prices are however still spurred by still strong Chinese demand which is yet to show any slowdown, despite increasing efforts by Chinese authorities to prevent their economy from overheating.

The Select Manager Global Growth FoF returned -1.09% for the month of July. The negative return was driven by the appreciation experienced in the currency after last month's sharp depreciation. The Invesco Perpetual High Income fund continues to be a strong performer, benefiting from it high yield focus, an attractive attribute for investors during times of uncertainty.

South African equity markets made a strong comeback in March, consistent with International markets. The All Share index retrned 7.1% for the month and 13.3% for the quarter. Resource stocks were the best performing large caps during March, returning 9%. For the quarter Financial stocks were the best performing large cap stocks, returning 13.8%. Mid- and small cap stocks outperformed large cap stocks by returning in excess of 20% for the quarter. Equity earnings data remains very solid and fundamentals continueto support current ratings, although looking more demanding. As with International markets, the local market has rallied powerfully over the past 12 months and a correction would not be uncalled for. The lacklustre returns expected from other asset classes could however continue to sustain the rally in equities.

The Select Manager Flexible Growth FoF returned 3.64% for March. The Investec Equity fund returned 5.68% for the month and thereby made the largest contribution to the funds performance. The large position held by Investec in resource stocks were the main performance driver.

With effect from 01 Mar 06, the Select Manager Growth Plus Fund of Funds will be known as the Select Manager Flexible Growth Fund of Funds.

A further 8.1% in December brought the return of the All Share index to 47.3% for 2005. Foreign investors were again attracted to the SA market as the positive sentiment towards commodities, and gold specifically, continued. Despite this support for Resource related stocks, the Financial sector was the star performer for December. Financial stocks returned 10.2% for the month versus the 7.6% of Industrials and 7.2% of Resources. The Resource sector was however by far the best performing sector during 2005, returning an almost unbelievable 71.5%.

The Select Manager Growth Plus FoF returned 5.7% for December. A switch out of the Prescient Positive Return QuantPlus fund into the BlueBay Visio Actinio Fund, managed by Patrice Moyal, was implemented during the month. The BlueBay Visio Actinio Fund is a flexible fund which has built a solid performance track record. It aims to deliver positive returns irrespective of market conditions. The downside risk is managed by investing in stocks with natural downside protection and active asset allocation strategies. The Select Manager Growth Plus FoF returned 25.5% for 2005.