The portfolio remains heavily invested in money market and interest bearing investments. Notably; cash (money market), Namibian bonds and South African inflation-linked bonds (ILBs).

Our money market portfolios remain invested in the short end of the money market yield curve, with the intention, that should rates increase any further due to monetary policy or inflation fears, we would be able to capitalize from this by reinvesting at higher rates.

With our exposure to ILBs we are able to capitalize on any unexpected rise in inflation while our exposure to Namibian Bonds has given us positive returns notwithstanding the inflationary fears across the border.

While the equity portion of our portfolios remains low, it was kept at the maximum levels we believe necessary in order to achieve the targets (CPI + 3%) at acceptable levels of risk. Within the equity portions of our funds, our exposure was taken by means of investing in our SIM Namibian equity funds, notably the Namibian prudential managed and the Namibian growth funds. As the fund grows larger, (and possibly within the next month) we will be bringing this fund in line with our SA inflation linked fund.

Looking ahead we will be slowly reducing our exposure to nominal bonds, while increasing our current low exposure to equities. However, we believe that this should be done with the correct counters and should further be done in weakness of underlying asset class.

The portfolio remains heavily invested in money market and interest bearing investments. Notably; cash (money market), Namibian bonds and South African inflation-linked bonds (ILBs).

Our money market portfolios remain invested in the short end of the money market yield curve, with the intention, that should rates increase any further due to monetary policy or inflation fears, we would be able to capitalize from this by reinvesting at higher rates.

With our exposure to ILBs we are able to capitalize on any unexpected rise in inflation while our exposure to Namibian Bonds has given us positive returns notwithstanding the inflationary fears across the border.

While the equity portion of our portfolios remains low, it was kept at the maximum levels we believe necessary in order to achieve the targets (CPI + 3%) at acceptable levels of risk. Within the equity portions of our funds, our exposure was taken by means of investing in our SIM Namibian equity funds, notably the Namibian prudential managed and the Namibian growth funds. As the fund grows larger, (and possibly within the next month) we will be bringing this fund in line with our SA inflation linked fund.

Looking ahead we will be slowly reducing our exposure to nominal bonds, while increasing our current low exposure to equities. However, we believe that this should be done with the correct counters and should further be done in weakness of underlying asset class.