The fund, which is an offshore dollar money market investing in short-term money market instruments on a similar basis to the Standard Bank Money Market Fund here in South Africa, was a haven of peace and tranquillity during the quarter as the share markets tumbled around the world.

During the quarter the rand dropped by 3%against the US dollar, reversing some of the big rand strength of the first 6 months. Meanwhile the US dollar gained 0.9%against the euro, against which it has been more or less pegged at 98 US cents to the euro for some 4 months. The dollar interestingly lost 2.5%against sterling.

Short-term money market yields have remained unchanged because The US Federal Reserve decided to leave 40-year low interest rates unchanged.

The fact that the fund is purely invested in US dollars has been a disadvantage in that the dollar has fallen by some 10%against the euro so far in 2002,as well as against all other developed market currencies.

The fund is benefiting from the steady US dollar relative to other developed currencies, although the rand actually appreciated during the quarter by approximately 5% against the dollar.

One potential benefit for investors is the increased likelihood that the US Federal Reserve will raise interest rates in the near future in response to the increasingly buoyant economy. This will in turn increase the current dollar yield on the fund of under 1%.

The fund is benefiting from the steady US dollar relative to other developed currencies,although the rand actually appreciated during the quarter by approximately 5% against the dollar.

One potential benefit for investors is the increased likelihood that the US Federal Reserve will raise interest rates in the near future in response to the increasingly buoyant economy. This will in turn increase the current dollar yield on the fund of under 1%.