Global economies are likely to start topping-out, mainly due to the tightening monetary cycle in the US, China and elsewhere, as well as the sub-prime lending problems in the US. Thanks to a strong Chinese economy and low stock levels, 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 fairly buoyant throughout 2007. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to remain around the top end of the 3-6% range as targeted by the Reserve Bank. We are of the opinion that the top of the current interest rate cycle will be reached with a 0.5% rate increase by the Reserve bank at it's 16th of August MPC meeting. Domestic demand should remain positive, driving further real growth in the local economy. The JSE as a whole is furthermore not expensively priced at the moment, 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 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 tightening monetary cycle in the US, China and elsewhere. Thanks to a strong Chinese economy and low stock levels, 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 fairly buoyant throughout 2007. 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.

We are of the opinion that the top of the current interest rate cycle has been reached. Domestic demand should remain positive, driving further real 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 average equity fund's exposure to commodity shares

Global economies are likely to start topping-out, mainly due to the tightening monetary cycle in the US, China and elsewhere. Thanks to a strong Chinese economy and low stock levels, 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 fairly buoyant throughout 2007. The rand is likely to weaken as the commodity cycle starts topping out. Inflation is forecast to test the upper boundary of the 3-6% range, as targeted by the Reserve Bank. We, however, foresee that the Reserve Bank will need to hike short-term interest rates only by another 0.5% over the next 12 months. Domestic demand should therefore remain positive, 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, as to enable the most efficient replication of the South African All Share Index with an optimum number of shares.