Three-month interest rates increased 0.5% during October after the Monetary Policy Committee increased interest rates. The rate hike took the market somewhat by surprise. We believe the interest rate hiking cycle has likely come to an end. The longer end of the money market yield curve seems to offer good value and we have thus begun to increase the duration of the fund. The duration of the fund at 31 October was 66 days.

Money market rates were fairly stable through September. The August consumer inflation data was in line with the market’s forecast while the producer price inflation for August was lower than expectations. Based on these inflation figures, together with data that points to a weaker consumer, the consensus expectation is for no further interest rate increases. We, however, remain cautious on the inflation and interest rate outlook. The duration of the fund is 49 days.

Money market rates continued their upward trend through June as the Monetary Policy Committee increased the repo rate to 9.5%. The money market has priced in an interest-rate increase in August with a small probability of a further hike later in the year. We remain cautious on the inflation outlook as we believe the Rand is vulnerable. The duration of the fund is 60 days, below the 90 day maximum.

Money market rates continued their upward trend through July as investors are pricing in a high probability of rate increase at the August Monetary Policy Committee meeting. We remain cautious on the inflation outlook as we believe the Rand is vulnerable. The duration of the fund is 50 days, below the 90 day maximum.

Money market rates continued their upward trend through August, in response to inflation data which was significantly worse than expected. We remain cautious on the inflation outlook. The duration of the fund is 53 days, below the 90 day maximum.

Money market rates have remained stable over the past month since the Monetary Policy Committee.s decision to leave interest rates unchanged. We believe the risks of a weaker Rand remain and therefore remain cautious on the inflation outlook. The duration remains below the maximum 90 days.

Above consensus consumer and producer price inflation data releases caused money market rates to increase 20 to 30 basis points over the month as investors priced in a greater probability of a repo rate increase at the June Monetary Policy Committee meeting. We believe the Rand remains vulnerable and therefore remain cautious on the inflation outlook and believe there is a probability for more than one interest rate increase over the remainder of the year.

Money market rates continued to creep up over the past month and are basically unchanged after the Monetary Policy Committee's decision April 12 to leave interest rates unchanged. The current account deficit leaves the Rand vulnerable to weakness if South Africa does not attract sufficient capital inflows to fund the deficit. Rand weakness could in turn drive inflation higher and open the door for further interest rate hikes. With this in mind the fund is positioned to maximise yield within the constraint of not having the maximum 90-day duration.

Money market rates ended January slightly higher than at the beginning of the month. Economists are divided on whether there will be a rate increase or not in February and the market is pricing in a low probability of a 50 basis point increase. The majority of the Fund's assets are invested in deposits and instruments of less than three months term.

Money market rates fell 20 to 30 basis points after the Reserve Bank's Monetary Policy Committee held the Repo Rate steady at its meeting in February. Rates have subsequently risen slightly, though not to pre-MPC meeting levels. The majority of the Fund's assets are invested in deposits and instruments of less than three months term.

As was widely expected, the Reserve Bank's Monetary Policy Committee increased the repo rate by 0.5% to 9.0% at its December meeting. Money market rates increased over December by between 0.14% (twelve month rate) and 0.57% (one month rate). The majority of the Fund's assets are invested in deposits and instruments of less than three months term.