June was a tough month for global financial markets. The Dow Jones shed 1.24%, the Nasdaq fell 2.18% and the S&P dropped 1.24%. The JSE All Share index treaded the same path falling just over 2%.

The world sighed a collective sigh of relief as the Greek parliament approved a 5-year austerity deal that paves the way for Greece to access €12bn in bail-out funds from the European Union and the International Monetary Fund.

However, worries remain that global growth is slowing down. The reasons include attempts by Chinese authorities to cool their economy (which the latest manufacturing data suggests are succeeding, possibly too well), a prolonged slump in the US housing and jobs markets, the lagged impact of higher commodity prices, and of course, the austerity measures adopted in Europe.

Another key issue for global investors is that the US Federal Government is expected to hit its $14.3 trillion debt ceiling in August, a level beyond which it cannot borrow any further. Congress can vote to raise the ceiling, and they've done so several times in the past, but this requires the Republicans and Democrats to reach an agreement in a political climate that is confrontational and uncertain. Hitting the debt ceiling will temporarily limit the ability of the government to pay suppliers and employees. Worst case scenario is that it could limit the ability of the Treasury to pay interest on its bonds, which would count as a mini-default on the supposedly safest asset in the world.

With interest rates lower for longer, we still remain focussed on blue chip equities looking to expand globally.

2010 marked the end of two good years in the equity market, although the JSE ALSI is still below its May '08 all time peak. With the authorities determined to underpin global growth by retaining stimulus measures, 2011 looks set to be another good year for equities.

Gains in stock markets were largely driven by government efforts to invigorate economic growth through a package of low interest rates, quantitative easing and other fiscal stimulus measures. Bernanke's recent $600bn quantitative easing package, president Obama's $858bn tax-cut compromise as well the inclusion of other tax cuts have increased optimism in the US among investors and executives shifting sentiment upwards.

The brighter outlook is beginning to raise worries over inflation - mainly food and gasoline prices and the upshot of stimulus measures - bond yields are rising as investors demand higher returns for the elevated risk.

In the US economy, income tax and sales receipts are rising on the back of an increase in jobs and spending money. Savings rate up from zero to around 5% or 6% of disposable income supporting increase in retail sales. With corporate profits at an all time high and business confidence improving, companies are displaying greater willingness to spend - adding capacity.

Despite rising inflation, emerging markets will continue to provide attractive opportunities. Growth in developing economies will outpace expansion in the developed economies for years to come, lifting resource prices and offering a strong base for companies exposed to the region.Urbanization in China and India should benefit demand for commodities like coking coal and iron ore underpinning prices. Copper should also remain high while worries over inflation should prop up precious metals like gold and platinum.

The fund changed sectors from Domestic--Equity--General to Domestic--Equity--Value on 01 Feb 2011

The Sasfin TwentyTen Fund will change it's name to Sasfin Value Fund, effective from 01 February 2011.