The Marriott Worldwide Fund distributed 4 cpu in September. Weak markets and an even stronger rand afford a perfect opportunity for South African investors to buy into international companies best able to withstand the current global crisis. For this reason we hold 60% of the portfolio in international equities, real estate, bonds and cash. Of the 60% allocated internationally, 13% of the fund was allocated in September to Real Estate; yields of over 4% within the Real Estate sector are very attractive relative to both bonds and cash. The fund continues to favour defensive international equities including Energy, Utilities, Tobacco and Telecoms. The same defensive positioning has been applied to the domestic equity exposure within the portfolio which currently stands at 27%. The Worldwide Fund is aptly positioned to take advantage of yields well in excess of inflation internationally.

The Marriott Worldwide Fund distributed 4.15 cpu in June. Weak markets and a stronger rand afford a perfect opportunity for South African investors to buy into international companies best able to withstand the current global crisis. For this reason we hold 58% of the portfolio in international equities, bonds and cash. The Marriott Worldwide Fund continues to favour defensive international equities including Energy, Utilities, Tobacco and Telecoms. The same defensive positioning applies to the domestic equity exposure within the portfolio which currently stands at 26%. Current market valuations are presenting investors with an opportunity to lock in high dividend yields and to benefit over the next five years from re-ratings as the value of these income streams is recognised.

The Marriott Worldwide Fund distributed 4.3 cpu in March. Despite volatility in international markets our exposure to these markets remains at 60%. Recently there have been signs of encouragement for offshore investors as a number of economic indicators are starting to suggest a bottom to what has been a difficult bear market. During the month of March positive news flowed from corporates and the economy resulted in an aggressive rally across the US, UK and the Eurozone. This comes at no surprise when one considers that the dividend yields of some of the biggest companies are at levels last seen 20 years ago. With prices significantly suppressed (despite the recent rally) current market valuations are presenting investors with an opportunity to generate inflation-beating returns over the next five years as these economies begin to respond to the massive amount of monetary and fiscal policy stimulus. Fundamentals, such as our significant current account deficit and our reliance on foreign portfolio investment in SA to support our currency, suggests that in 2009 we could continue to see rand volatility further emphasising the benefits of international diversification.

The Marriott Worldwide Fund distributed 4.3 cpu in December. The fund's asset allocation remains unchanged with a 60% international exposure as international equity valuations remain inexpensive relative to cash/bond yields, particularly among large-cap blue chips.

We will continue to maximise our international exposure at 60% of the portfolio as there are mega-cap stocks in the US, UK and Europe that have outstanding track records for producing and growing their dividends. Many have grown their dividends reliably for more than 25 years - it is their hallmark. The importance of international diversification has been highlighted recently with the rand's recent volatility. Consequently, South African Investors with dollar-based investments have been relatively shielded from this volatility (in rand terms). In South Africa we have seen approximately R95-billion in foreign outflows (year 2008) from our equity and bond markets, putting pressure on the rand and local markets.

With one of the biggest current account deficits of all emerging markets, combined with a global slowdown with reduced commodity demand, fundamentals suggest further rand weakness.