The Standard Bank Index Fund performance is designed to track the returns of the FTSE/JSE All Share Index by optimised sampling of the All Share composite stocks. This implies that no bets are taken to outperform the benchmark, but rather the fund objective is to duplicate the JSE market 's returns. The BARRA Aegis Risk Management System is hence used to ensure that the fund 's tracking error volatility is always positioned at lower than 1%relative to the FTSE/JSE All Share benchmark.

Due to the five-percent cash requirement, the fund was able to outperform the market on its way down. The fund however slipped in relative performance towards the end of the quarter when we saw some recovery in the market. This again is attributed to the cash drag that benefited the fund earlier in the quarter.

The local equity market looks cheap but the global investment outlook as well as domestic economic outlook must improve before this value can be exploited. Global growth needs to return before we can see any upward return to the resource cycle. Mining and resources shares are reasonably priced but recovery is likely once the final mining charter is published.

The Standard Bank Index Fund 's performance is designed to track the returns of the FTSE/JSE All Share Index by the optimized sampling of the All Share Index stocks. This implies that no bets are taken to out- perform the benchmark. Instead, the fund holds stocks necessary for the duplication of the market index returns, given the legal constraints that govern unit trusts in South Africa. The BARRA Aegis Risk Management System is used to ensure that the fund 's tracking error volatility is always positioned at lower than 1%relative to the FTSE/JSE All Share benchmark.

The fund returned -2.96%against -3.24%for the market index. The actual tracking error for the quarter ranged between -0.2%and 1.3%.

The Standard Bank Index Fund will continue to closely track the FTSE/ JSE All Share benchmark.

The All Share Index increased in March by 1.5%and 5.6%for the first quarter. Once again the main driver was the Resource sector. Chemicals (Sasol) and Gold (Gold Fields and Harmony) both went up a little over 12%for the month. The Industrial sector (+2.3%) too had a good month. Diversified (Richemont and Barlows) and Food (Tigers) were the main drivers of the performance. Banks continued to battle and lost a further 2.9%in March.

The Standard Bank Index Fund 's performance is designed to track the returns of the JSE All Share Index by the optimized sampling of the All Share composite stocks. This implies that no bets are taken to outperform the benchmark, but rather the fund objective is to duplicate the JSE market 's returns. The BARRA Aegis Risk Management System is hence used to ensure that the fund 's tracking error volatility is always positioned at lower than 1%relative to the JSE All Share benchmark.

The All Share Index increased in March by 1.5% and 5.6% for the first quarter. Once again the main driver was the Resource sector. Chemicals (Sasol) and Gold (Gold Fields and Harmony) both went up a little over 12%for the month. The Industrial sector (+2.3%) too had a good month. Diversified (Richemont andBarlows) and Food (Tigers) were the main drivers of the performance. Banks continued to battle and lost a further 2.9% in March.

The Standard Bank Index Fund ’s performance is designed to track the returns of the JSE All Share Index by the optimized sampling of the All Share composite stocks. This implies that no bets are taken to outperform the benchmark, but rather the fund objective is to duplicate the JSE market ’s returns.The BARRA Aegis Risk Management System is hence used to ensure that the fund ’s tracking error volatility is always positioned at lower than 1% relative to the JSE All Share benchmark.