The third quarter of 2018 saw local markets struggle on the back of weak economic data; and news that South Africa had entered a technical recession. Ongoing political uncertainty, coupled with South Africa being in the general emerging market crossfire, dampened investor sentiment. The broader equity market (FTSE/JSE All Share Index) was down 2.2%, and the FTSE/JSE Capped All Share Index ('CAPI') was down 1.1%. The SA listed property (FTSE/JSE Listed Property Index ('SAPY')) fell 1% while local bonds (BEASSA All Bond Index) rose 0.8%.

The Citadel SA Income H4 Fund ('the fund) was up 2% over the quarter, ahead of its benchmark which rose 1.7%. In terms of the underlying managers, Taquanta Asset Managers posted 2.1% while Green Oak posted 1.7%. At month-end, the strategy split was 95% to Taquanta and the remainder in Green Oak.

The fund continues to adhere to its policy.