This fund had a very volatile quarter relative to its competitors, due to volatile equity markets and equity sectors.

The fund managers traded in some of the sectors over the quarter. The fund managers trimmed the overweight position in banks as the uncertainty hanging over the sector, following the proposed Community Reinvestment Bill, was likely to hold the sector back. Following the hammering of the sector the fund managers bought some financial shares back at the lower levels. The overweight position in building and construction shares paid off as the stunning results released by Murray & Roberts triggered a rally in the sector.

The fund managers increased the exposure of the fund to gold shares during the quarter, given the way these are benefiting from the current geo-political tensions. Although the sector is very volatile the fund managers see it as insurance against a major political catastrophe. The fund managers maintained very low liquidity levels in the fund.