Global economies are likely to start topping-out, mainly due to the high oil price and tightening monetary cycle in the US, China and elsewhere. Thanks to a strong Chinese economy, commodity prices are, however, expected to remain relatively strong over the next few months, and emerging markets (especially commodity markets like SA) should benefit, especially if the commodity-based currencies start weakening. We foresee the local economy remaining buoyant throughout 2006. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to remain within the 3-6% range as targeted by the Reserve Bank and we expect the Bank to moderately hike short-term interest rates over the next 12 months. Domestic demand should remain strong, driving growth in the local economy, i.e. we foresee a positive environment for equities and more so for commodity shares, which should benefit tracker funds due to their higher than the average equity fund's exposure to commodity shares.

The Gryphon All Share Tracker Fund, due to its tracker mandate, is only slightly tilted to certain sectors and shares, so as to enable the most efficient replication of the South African All Share Index with an optimum number of shares.

Global economies are likely to start topping-out, mainly due to the high oil price and tightening monetary cycle in the US, China and elsewhere. Thanks to a strong Chinese economy, commodity prices are, however, expected to remain at current levels over the next few months, and emerging markets (especially commodity markets like SA) should benefit, especially if the commodity-based currencies start weakening. We foresee the local economy remaining buoyant throughout 2006, the rand to start weakening when the commodity cycle starts topping out and inflation to remain within the 3-6% range as targeted by the Reserve Bank. Inflation is forecast to remain within the 3 to 6% range as targeted by the Reserve Bank and we expect the Bank to moderately hike short-term interest rates over the next 12 months. Domestic demand should remain strong, driving growth in the local economy, i.e. we foresee a positive environment for equities and more so for commodity shares, which should benefit tracker funds due to their higher than the average equity fund's exposure to commodity shares.

The Gryphon All Share Tracker Fund, due to its tracker mandate, remains fully invested and only slightly tilted to certain sectors and shares, so as to enable the most efficient replication of the South African All Share Index with an optimum number of shares.

Global economies are currently starting to top-out, mainly due to the high oil price and tightening monetary cycle in the US, China and elsewhere. Thanks to a strong Chinese economy, commodity prices are, however, expected to remain at current levels over the next few months, and emerging markets (especially commodity markets like SA) should benefit, especially if the commodity-based currencies start weakening. We foresee the local economy remaining buoyant throughout 2006, the rand to start weakening when the commodity cycle starts topping out and inflation to remain within the 3-6% range as targeted by the Reserve Bank. We expect the Reserve Bank to keep short-term interest rates on hold for 2006. Domestic demand should remain strong, driving growth in the local economy, i.e. we foresee a positive environment for equities and more so for commodity shares, which should benefit tracker funds due to their higher than the average equity fund's exposure to commodity shares.

The Gryphon All Share Tracker Fund due to its tracker mandate, remains fully invested and only slightly tilted to certain sectors and shares, so as to enable the most efficient replication of the All Share Index with an optimum number of shares.