September was a very volatile month as investors panicked about the fallout from a potential default in Greece. Focus now includes Italy and the French banking system has also come under scrutiny as shares plummeted in the large French banks. Major economies remain at risk of further recession as growth remains weak. Some degree of calm was restored towards the end of the month as individual countries passed changes to the EFSF and on a potential new plan to substantially increase the size of the EFSF to a reported €2 trillion.

The Federal Open Market Committee (FOMC) held rates at a range of 0.00 - 0.25% at the extended two-day meeting in September. The statement confirmed the start of "Operation Twist" where the Fed will sell short-dated Treasury securities and purchase longer dated ones, extending the maturity of the balance sheet.

LIBOR rates rose again by around six basis points (bps) across the curve as funding pressures continue to weigh on the inter-bank system. In coordination with the Fed, BoE, BoJ and SNB, the ECB announced three-month USD liquidity operations, providing dollar funding over the year-end. The weighted average maturity (WAM) was at 52 days at the end of September.

We remain focused on maintaining a high quality portfolio and continue to reduce exposure to European banks while increasing exposure to government guaranteed or government agency commercial paper.

Fluctuations in the daily pricing of the FRN exposure weighed on the net return of the fund this month. However, we expect the US money market curve to remain fairly flat and that the fund will again outperform versus the benchmark in the coming months.

The European debt crisis intensified again as Greece passed further austerity measures, thus ensuring that the International Monetary Fund (IMF) will disperse the next tranche of funding. While risk traded on and off in between headlines, money markets remained largely unaffected.

The Federal Open Market Committee (FOMC) kept rates in a range of 0.00% to 0.25%. Growth forecasts were revised down, and we do not expect any change to the FOMC policy in 2011. LIBOR rates were largely unchanged across the curve.

The weighted average maturity (WAM) of the fund fell to 49 days. With very little risk premium priced along the curve, we have kept maturities short.

We expect the money market curve to remain fairly flat and that the fund will outperform the benchmark in the coming months.

The tragic events in Japan and continuing troubles in the Middle East and North Africa negatively impacted the markets during March 2011. However, as the situation in Japan stabilised, equities moved higher and government bond yields rose.

The Federal Open Market Committee (FOMC) maintained interest rates at the current range of 0%- 0.25%. Some members thought that economic conditions might "warrant a move toward less accommodative monetary policy this year"; a few others noted that "exceptional policy accommodation could be appropriate beyond 2011".

LIBOR rates fell in March by around two basis points (bps) in the short end, due to a change in the Federal Deposit Insurance Corporation (FDIC) deposit insurance assessment scheme.

The weighted average maturity (WAM) at the end of March fell to 39 days. We remain focused on providing adequate liquidity, while targeting an increased WAM of around 50 days.

We expect interest rates to remain low, and anticipate that the fund will continue to perform well versus the benchmark in the coming months.

Risk markets performed well in December driven by QE2 and better macro data. However, the European sovereign situation weighed on investor sentiment.

The Federal Open Market Committee (FOMC) maintained rates at the current range of 0.00% - 0.25% and confirmed their intention to continue with the purchase of $600bn of Treasuries at a pace of about $75bn per month. LIBOR rates remained relatively unchanged in December.

The Weighted Average Maturity (WAM) finished November at 38 days. We remain focused on providing adequate liquidity while targeting an increased WAM that is in a range of 60-70 days, if and when opportunities arise to do this. Risk premium remains scarce so we have again kept maturities short, thus reducing the WAM. The fund remains well positioned to react as and when the yield curve begins to steepen.

The fund outperformed its one-month LIBOR benchmark by 8 basis points (bps). We expect rates to remain low and anticipate that the fund will continue to perform well versus the benchmark in the coming months.