The fund continued its good performance taking it’s 12 month returns to 17% and further outperforming its benchmark by 2.3% over the quarter. This was largely driven by the investment in gold shares that from May rallied sharply again. We have subsequently traded the gold position successfully, which has driven the strong performance.
The Fund continues to be managed conservatively with an emphasis on capital preservation. With our high cash allocation, we are poised to take advantage of global opportunities. We maintain our view that global equity market valuations are still stretched as global economic growth slows. However, we see pockets of value in certain emerging markets including South Africa. As global market uncertainties persist, the Rand will remain vulnerable to fluctuations.