Investment Environment
The Fund delivered a positive return over the past month on the back of the rising equity market. Our market was mainly influenced by developments in international markets, particularly the events post the interest rate cut in the USA that included a jump in commodity prices.

Investment Flows
Investment flows were negative at approximatelyR6moutflow over the past month.

Fund Manager Interventions
The equity market had a very volatile start in the month with a sharp upward bounce when the interest rates were cut in the USA. This led to a jump of nearly4%in the Top40 index during the latter half of the month. In line with this movement, the Fund's market exposure was increased to a high level of nearly 43%. This means that the exposure was varied from a low of 30% to just under 43%. The equity market continued to show some strength into early October, and the Fund's equity market exposure was raised further to its current level of just below 55%. The continued equity market strength provided us the opportunity to restructure, and to increase, the fund's protective option positions.

The equity portfolio was restructured during early October to generate more cash in the fund - covering investment withdrawals and the hedging cash drain. Cash remains more attractive than bonds and listed property on a risk versus real return basis.

Protective "Floor" Level:
The market strength during September and into October helped the fund to generate positive returns, to the extent that the fund's unit price recovered fully from recent weakness. This provided the opportunity for a small upwards adjustment of the protective "Floor" level.

Currently the fund is invested in equities, cash and money market instruments.

The portfolio delivered a flat return over the past month on the back of a slightly negative equity market. Stronger commodity prices supported our market but this support was slightly offset by a firmer currency. Rising inflation expectations led to a rise in interest rates that placed some pressure on the domestic financial market sector.

Investment flows were negative, totalling nearly R9m for the past month. The equity market had a sharp run-up to the SAFEX close-out in the 3rd week of June. The portfolio's equity market exposure was steadily increased during this market move, and derivative contracts were rolled just prior to close-out. New option positions were entered into that helped to contain the subsequent market weakness and the portfolio's effective equity market exposure was reduced from a high of47% to 32% at month end.

Cash remains more attractive than bonds and listed property on a risk versus real return basis. The mid-month strength in portfolio performance meant that the protective "Floor" level was raised slightly upwards to provide an element of lock-in. The underlying equity portfolio was maintained in line with our model portfolio, with some profit taking on an overweight position in BHPBilliton. Currently the fund is invested in equities, cash and money market instruments.

The Portfolio delivered a positive return over the past month on the back of a strong recovery in the equity market. General market conditions have been impacted by broad market recovery post the February sell-off, rising crude oil prices and uncertainty regarding the USA interest rate outlook. Stronger commodity prices with aweaker currency were themain drivers in the local market.

The equity market continued its sharp decline over the first few days of themonth. Thereafter, themarket started with a recovery to deliver a strong positive return for the past month. After the initial cut in the Portfolio's effective market exposure, to contain downside risk, the market exposure was increased in line with the rising market. This allowed the Portfolio to participate in the rising market, with the effective market exposure being increased from a low of 23% to a high of nearly 45%.

Cash remains more attractive than bonds and listed property on a risk versus real return basis. Although the Portfolio generated a strong positive return for the month, this return only recovered the Portfolio value to the intra-month high of February, and therewas therefore no further opportunity to raise the protective "Floor" level. The underlying equity portfolio was maintained in line with our model portfolio. Currently the Portfolio is invested in equities, cash and money market instruments.

The fund generated a positive return over the past quarter, under an upward trending market that was driven by the resource sector performance. The market was impacted by the expectation of a soft US economic landing, and locally by thewidening current account deficit and rising interest rates. The sideways volatile equity market movement of the preceding quarters eroded the fund's risk budget to the extent that only small adjustments to the equity market exposurewere possible. The effective equity market exposurewas adjusted within the range of25%to35%of fund value over the quarter. The expectation of rising interest rates remains a concern, and potential inflationary pressures make investment in bonds and listed property unattractive from a real return point of view. The fund will maintain zero exposure to these asset classes until conditions improve. Because of the already low risk budget, and subdued fund performance during the quarter, the protective 'floor' level was not adjusted upwards, thereby maintaining the ruling protective level as at the end of the previous quarter. The underlying equity portfolio was adjusted to cover new investment flows and to reflect our model portfolio. Currently the fund is invested in equities, cash and money market instruments.