The fund saw slight growth during the quarter, closing on a somewhat larger size at month end. On the asset front, redemptions and new investments resulted in net asset redemptions of R200 million. As a result, interest as a component of distributions increased from the previous quarter.

Despite the interest component hike, we were able to reposition our asset balance and maintain outperformance of our benchmark. Work on new assets continue and we are optimistic about progress being made on several fronts.

The Monetary Policy Committee left the repo rat eunchanged again and as a result, the fund's return remained fairly stable. The fund closed on a higher level at period end, however on average over the term. gross exposureto preference share assets was maintained at a fairly similar level compared to the previous quarter, and accordingly, the interest as a componenet of distributions did not vary significantly.

As we head into the final quarter of 2018, the fund has started building up cash reserves in anticipation of finalising negotiations on new investments. As a results of this subtle shift in cash holdings, we expect a slightly reduced outperformance of benchmearks over the short-term.