We foresee the global economy recovering towards the second half of 2003, with gains in commodity prices. The local economy, however, already started feeling the pinch from the 2002 interest rate hikes. We expect that a sharp reversal in local inflation and the tax cuts of the last Budget will act as a floor to any declines in growth of consumer spending. Consumers are also less indebted compared with tightening cycles of the recent past.

Local equity valuations in general remain attractive. The Gryphon Imperial SA Tracker fund due to its tracker nature remains fully invested. The fund is, relative to its benchmark, somewhat tilted towards Banks, Other Mining, Platinum, Oil and the more cyclical Industrial Sectors. Being an index fund, it is more exposed to the larger more liquid stocks on the JSE, but relative to its benchmark point in time, got an overweight position on smaller cap stocks.

We foresee the global economy recovering towards the second half of 2003, with gains in commodity prices. The local economy, however, should start feeling the pinch from the 2002 interest rate hikes. We expect that a sharp reversal in local inflation and the tax cuts of the last Budget will act as a floor to any declines in growth of consumer spending. Consumers are also less indebted compared with tightening cycles of the recent past.

Local equity valuations in general remain attractive. The Gryphon Imperial SA Tracker fund due to its tracker nature remains fully invested. The fund is, relative to its benchmark, somewhat tilted towards Banks, Other Mining, Platinum, Oil and the more cyclical Industrial Sectors. Being an index fund, it is more exposed to the larger more liquid stocks on the JSE, but relative to its benchmark point in time, got an overweight position on smaller cap stocks.

We foresee the global economy recovering into 2003, with further gains in commodity prices. The local economy, however, should start feeling the pinch from the 2002 interest rate hikes. We expect that a sharp reversal in local inflation and the latest round of tax cuts will act as a floor to any declines in growth of consumer spending. Consumers are also less indebted compared with tightening cycles of the recent past.

Local equity valuations in general remain attractive. The Gryphon Imperial SA Tracker fund due to its tracker nature remains fully invested. The fund is, relative to its benchmark, somewhat tilted towards Banks, Other Mining, Platinum, Oil and the more cyclical Industrial Sectors. Being an index fund, it is more exposed to the larger more liquid stocks on the JSE, but relative to its benchmark point in time got an overweight position on smaller cap stocks.