The STANLIB Index Fund is a passively managed index-tracking fund. The aim is to replicate the performance of the FTSE /JSE All Share Index.

The Fund purchases a portfolio of stocks, which should very closely track the performance of the FTSE /JSE All Share Index. The Fund is aimed at investors who seek exposure to the All Share Index at a reduced cost. The Fund returned 13.7% for the quarter ending September 2009, compared to the benchmark FTSE / JSE All Share Index return of 13.9%.

Looking ahead
The local and global economy showed some signs of recovery over the quarter. However, this recovery remains extremely fragile, facing a number of unique risks including rising unemployment and inflation.

0We will maintain our tight tracking error whilst keeping track of and adjusting for quarterly index reviews.

Market Review
Over the past nine months to mid-2009, most major economies have experienced their steepest consecutive declines in GDP since World War II. There are, however, tentative signs that the severity of the global recession is moderating. This moderation in the severity of the recession is driven by a combination of factors. These include the major emerging markets recovering, some return of business confidence, ongoing massive fiscal and monetary policy stimulus as well as inventory adjustments contributing positively to growth. However, financial conditions remain tight, while rising unemployment globally remains the major risk to a global recovery in 2010. The South African leading indicator has been pointing to a significant slowdown in domestic economic activity for some time and continues to suggest further declines in the quarters ahead.

Fund Review
The STANLIB Index Fund is a passively managed index-tracking fund. The aim is to replicate the performance of the FTSE IJSE All Share Index. The Fund purchases a portfolio of stocks, which should very closely track the performance of the FTSE IJSE All Share Index. The Fund is aimed at investors who seek exposure to the All Share Index at a reduced cost. The Fund returned -25.9% for the year ending June 2009, compared to the benchmark FTSE I JSE All Share Index return of -24.9%.

Looking ahead
The current local investment and economic situation remains challenging; the expectation however is that the economy will have reached its low point by the end of the first half of 2009. The rate of decline in activity should moderate in the second half of 2009 before starting to reflect a modest recovery in 2010. In light of the persisting market volatility though, we will maintain our tight tracking error whilst keeping track of and adjusting for quarterly index reviews.

Market Review
The global economy remains weak, although there is some tentative evidence of increased financial/credit market stability. We expect signs of the start of a very modest economic recovery before end 2009. However, full recovery is not expected for a number of years.
In South Africa, economic activity is still substantially subdued, partly as a result of exports that are under enormous pressure given the sharp fall-off in global trade. In particular, the South African equity market was down by around 28% for the year ending March 2009 and by around 4% for the quarter.

Fund Review
The STANLIB Index Fund is a passively managed index-tracking fund. The aim is to replicate the performance of the FTSE /JSE All Share Index. The Fund purchases a portfolio of stocks, which should very closely track the performance of the FTSE /JSE All Share Index.
The Fund is aimed at investors who seek exposure to the All Share Index at a reduced cost. The Fund returned -28.15% for the year ending March 2009, compared to the benchmark FTSE / JSE All Share Index return of -28.54%.

Looking ahead
The current investment and economic situation remain challenging with approximately 60% to 70% of the world economy currently in recession including the US, Germany, UK and Japan. South African corporate earnings are under pressure, with much room for disappointment ahead. In light of the high equity market volatility we expect over the next couple of months, we will maintain our tight tracking error whilst keeping track of and adjusting for quarterly index reviews.

Market Review
With the global economy weakening sharply, economic activity in South Africa slowed substantially. In particular, the South African equity market fell by 23% for the year ending December 2008. This made 2008 the second worst calendar year equity performance since 1960 - the worst year was 1970. During the first month of the fourth quarter it appeared 2008 would be the worst performing year since 1960 with October's market return down 11.65%. However the rest of the quarter saw better performance as November and December returned 1.3% and 1.5% respectively. The net result was a quarterly return of -9.17% from the JSE All Share Index (ALSI). Fund Review The STANLIB Index Fund is a passively managed index-tracking fund. The aim is to replicate the performance of the FTSE /JSE All Share Index. The Fund purchases a portfolio of stocks, which should very closely track the performance of the FTSE /JSE All Share Index. The Fund is aimed at investors who seek exposure to the All Share Index at a reduced cost. The Fund returned -9% for the quarter ending December 2008, compared to the benchmark FTSE / JSE All Share Index return of -9.17%. Looking ahead The current investment and economic situation remain challenging with approximately 60% to 70% of the world economy currently in recession including the US, Germany, UK and Japan. Key commodity prices have fallen while South African corporate earnings are under pressure, with much room for disappointment ahead. In light of the high equity market volatility we expect over the next couple of months, we will maintain appropriate holdings in stocks that that closely track the FTSE /JSE All Share Index whilst keeping track and adjusting for quarterly index reviews.