SIM Money Market comment - Sep 11 - Fund Manager Comment21 Nov 2011
Market review
During the quarter, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.50%. This was in line with market expectations. Inflation remained within the Reserve Bank's target range during the quarter. Risks to inflation are still evenly balanced and inflation is expected to remain within the target range for an extended period.
The money market curve flattened during the quarter, with the three-month money market rate unchanged at 5.575%, while the 12-month rate decreased from 6.420% to 5.865%. Treasury bills in the 91-day area of the curve traded below the bank rates, and credit spreads on short-term corporate credit decreased during the quarter.
What SIM did
Assets were invested in all maturities across the money market yield curve during the quarter. We added quality corporate credit, which traded above the three-month money market rates, to the portfolio. We also included floating rate notes to enhance portfolio returns.
SIM strategy
Our preferred investments would be floating rate notes and quality corporate credit to enhance portfolio returns. We expect the repo rate to remain unchanged at the next MPC meeting.
SIM Money Market comment - Jun 11 - Fund Manager Comment23 Aug 2011
Market review
During the quarter, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.50%. This was in line with market expectations. Inflation remained within the Reserve Bank's target range during the quarter. Risks to inflation remained evenly balanced, with inflation expected to remain within the target range for an extended period.
The money market curve steepened during the quarter, with the three-month money market rate unchanged at 5.575%, while the twelve-month rate increased marginally from 6.335% to 6.42%. Treasury bills in the 91 days area of the curve traded above the bank rates, and credit spreads on short-term corporate credit decreased during the quarter.
What SIM did
We invested in assets across all maturities along the money market yield curve during the quarter. We added Treasury bills to the portfolios, as well as quality corporate credit, which traded above the three-month money market rates. We included floating rate notes in the portfolio to enhance portfolio returns.
SIM strategy
Our preferred investments would be floating rate notes and quality corporate credit to enhance returns within the portfolios. We will continue to include 91-day treasury bills in the portfolio for as long as they offer good value above the three-month money market rate. We expect the repo rate to remain unchanged at the next MPC meeting.
SIM Money Market comment - Mar 11 - Fund Manager Comment17 May 2011
Market review
During the quarter, the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 5.50%. This was in line with market expectations. Inflation remained within the Reserve Bank's target range during the quarter. Risks to inflation are still evenly balanced and inflation is expected to remain within the target range for an extended period. The money market curve steepened during the quarter, with the three-month money market rate increasing from 5.55% to 5.58%, while the twelve-month rate increased from 5.94% to 6.34%. Treasury bills in the 91-day area of the curve traded above the bank rates, and credit spreads on short-term corporate credit contracted during the quarter.
What SIM did
Assets were invested in all maturities across the money market yield curve during the quarter. Treasury bills were added to the portfolios, as well as quality corporate credit, which traded above the three-month money market rates. We included floating rate notes in the portfolio to enhance portfolio returns.
SIM strategy
Our preferred investments would be floating rate notes and quality corporate credit to enhance returns within the portfolios. We will continue to include 91-day treasury bills in the portfolio for as long as they offer good value above the three-month money market rate. We expect the repo rate to remain unchanged at the next MPC meeting.
SIM Money Market comment - Dec 10 - Fund Manager Comment04 Mar 2011
Market review
During the quarter, the Monetary Policy Committee (MPC) decided to cut the repo rate by 50 basis points from 6.00% to 5.50% on November 18, 2010. The market was anticipating the rate cut, given weak economic data, global growth concerns and an appreciating rand. Inflation remained within the Reserve Bank's target range during the quarter. The risks to inflation are still evenly balanced and inflation is expected to remain within the target range for an extended period. The money market curve flattened during the quarter, with the three-month money market rate declining from 6.025% to 5.55%, while the 12-month rate fell from 6.42% to 5.935%. Treasury bills in the 91-day area of the curve traded above the bank rates and credit spreads on short-term corporate credit decreased during the quarter.
What SIM did
Assets were invested in all maturities across the money market yield curve during the quarter. Treasury bills were added to the portfolios, as well as quality corporate credit, which traded above the three-month money market rates. We included floating rate notes in the portfolio to enhance portfolio returns.
SIM strategy
Our preferred investments would be floating rate notes and quality corporate credit to enhance returns within the portfolios. We will continue to include 91-day treasury bills in the portfolio for as long as they offer good value above the three-month money market rate. We expect the repo rate to remain unchanged at the next MPC meeting.