Standard Bank MM Income comment - April 2002 - Fund Manager Comment12 Jun 2002
Money market rates were relatively flat during April with shorter-term rates moving up between 0.25%and 0.5%. The market is expecting a 1% increase in the Repo rate when the SARB next meets in June.
The Income fund is well positioned to benefit from any rate increase given that the maturity profile of the fund is never longer than 90 days. The fund is not locked into long term fixed rates but rather is able to reinvest capital at higher rate relatively quickly.
Standard Bank MM Income comment March 02 - Fund Manager Comment20 May 2002
The impact of the dramatic fall in the Rand during December 2001 on the country ’s inflation outlook has had a significant impact on money market rates during the quarter.
The SARB surprised the market in January by increasing the Repo Rate 1%, sighting inflation concerns. This was followed by a second increase of 1% in March following confirmation of these concerns as the PPI & CPI numbers for January surprised the market coming in above expectations.
A further increase in rates cannot be ruled out in the coming months given the SARB ’s commitment to the inflation targets.
The Income fund is well positioned to benefit from any rate increase given that the maturity profile of the fund is never longer than 90 days. The fund is not locked into long term fixed rates but rather is able to reinvest capital at higher rate relatively quickly.