The STANLIB Income Fund returned 6.45% for the one year period ending 30 September 2006. Trades for the third quarter ending 30 September 2006 were limited to short dated assets. These included the purchase of money market assets in the long end of the curve as well as the purchase of corporate paper of Standard Bank, ABSA and MTN. Sales in corporate paper included DaimlerChrysler, Standard Bank and Nedbank. The exposure to parastatalswas decreased through the sale of Transnet and Telkom paper. The exposure to floating rate notes was increased through the purchase of various vehicle and mortgage securitisation issued by the major financial institutions. During the quarter the SARB MPC increased the Repo rate by 50 basis points to 8.00%, with a negative stance towards future monetary policy. The SARB maintained their negative outlook on inflation and consumer spending. The rising current account deficit was highlighted as one of the major risks to the currency and inflation outlook. The money market reacted negatively to the news, with the 12 month NCD rate rising from 8.50% to 9.35% during the quarter. The bond market remained more subdued with the RSA 2015 moving sideways from 8.65% at the end of June to 8.63% at the end of September. There is a big divergence between the short and long dated fixed interest markets, with themoney market curve steepening and the bond yield curve flattening. Oil prices receded during the quarter, but it was offset by further Rand weakness. The SARB will be monitoring all these effects closely, especially consumer spending and credit growth. Monetary policy is expected to remain hawkish for the moment, with a high probability of more interest rate increases to follow. Modified Duration: 0.9 years

The Stanlib Income Fund returned 6.2% for the one year period ending 30 June 2006. The Fund remains in the number one position from two to fifteen years, outperforming the 1-3 year sector of the All Bond Index over most measurement periods. Trades for the second quarter ending 30 June 2006, included the sale ofmoney market assets in the short end of the yield curve. The exposure to parastatals was also decreased through the sale of Transnet paper. Purchases in corporate paper included Standard Bank, ABSA and Nedbank. The exposure to floating rate notes was increased trough the purchase of Kagiso paper, aswell as various vehicle and mortgage securitisation transactions from the major banks. The exposure to preference shares were increased through purchases of ABSA and Standard Bank preference shares. During the quarter the SARB MPC increased the Repo rate by 0.5% to 7.5%, with a tightening bias towards monetary policy. The SARB also increased their outlook for inflation to above the inflation target band for early 2007. The money and bond markets immediately reacted, pricing for more rate increases this year. The 12 month NCD rate increasing from 7.3% to a high of 8.7%, closing the quarter at 8.5%. The R153 RSA 2010 bond, trading from 7.3% to a high of 8.9%, closing the quarter at 8.55%. The yield curve flattened substantially as the short end of the curve priced for rate increases in the short term. With the continued high oil prices and the sudden weakness in the Rand, the risks to inflation remain to the upside. The SARB will be monitoring all these effects closely, especially the second round effects of inflation on major items in the inflation basket like food. Monetary policy is expected to remain hawkish for the moment,with a high probability ofmore interest rate increases to follow. Modified Duration: 0.8 years

The STANLIB Income Fund returned 8.2% for the one year period ending 31 March 2006. The Fund remains in the number one position from two to fifteen years, outperforming the 1-3 year sector of the All Bond Index over most measurement periods.

Trades for the first quarter ending 31 March 2006, included the sale of money market assets in the short end of the yield curve. The exposure to parastatals was increased through the purchase of Eskom paper. Purchases in corporate paper included Standard Bank, ABSA and Imperial Bank. The exposure to floating rate notes was also increased, mainly through the vehicle loan securitisation of Wesbank. Exposure to preference shares was taken through the purchase of Grinrod preference shares.

During the quarter the SARB MPC kept the Repo rate unchanged at 7.0%, maintaining a neutral monetary stance. The high private credit numbers as well as continued high oil prices were cited as risks to inflation. During the quarter the current account deficit also emerged as a potential threat to currency stability. High commodity prices continued to support the Rand. The money market curve normalised over the quarter as the SARB Governor once again signalled a negative outlook for interest rates. The 12 month NCD rate opened the year at 7.20%, ending the quarter at 7.30%. While the outlook for inflation remains benign, the SARB seems to be more cautious in their outlook for interest rates.

The STANLIB Income Fund returned 7.7% for the one year period ending 31 December 2005. The Fund remains top quartile over one year and in the number one position from two to fifteen years, outperforming the 1-3 year sector of the All Bond Index over most measurement periods. Trades for the fourth quarter ending 31 December 2005, included the sale of government paper in the short end of the yield curve.The exposure to parastatals were increased through the purchase of Escom and TCTA paper. Purchases in corporate paper included Standard Bank, Barloworld, Super Group, Imperial Group and Investec. The exposure to floating rate notes were also increased, mainly through the home loan securitisations of Sanlam, Growthpoint, Standard Bank and Vukile. Exposure to the money market was increased through the purchase of 12 month NCD's. During the quarter the SARB MPC kept the Repo rate unchanged at seven percent, changing from a hawkish policy stance to a moderate policy stance. The MPC still cited oil prices as the major risk to inflation, but acknowledged the risks to inflation are more balanced. Oil prices have remained high over the quarter, but the Rand strengthened considerably on high commodity prices and Dollar weakness, dampening the expectations of higher inflation in 2006. Sentiment in the money market and bond market changed rapidly, expecting a sideways to downward move in interest rates instead of higher rates. The 12 month NCD rate opened the quarter at 7.30%, traded to a high of 7.75%, before ending the year at 7.25%. The yield curve flattened, with short dated bonds trading at money market levels. The money market is pricing for sideways to lower interest rates as inflation is expected to peak at lower levels. The SARB will monitor this situation carefully before moving official rates.