The Marriott Income Fund distributed 0.6118 cents per unit in September. The portfolio has been restructured with a significant portion of the portfolio being moved from very short dated deposits into twelve-month termed deposits. This restructuring has locked in the highest possible rates. The current average term to maturity of the Marriott Income Fund has been lengthened to approximately 210 days in light of the recent decision of the Reserve Bank to halt interest rates cuts. Although CPI statistics have declined, inflation remains outside of the target range and core inflation (CPI excluding food and oil) has continued to increase. The base effects of high oil prices should clear through the statistics toward the end of the year and upward pressure on inflation would then re-emerge. With service inflation measuring above 8% y-o-y, a notoriously sticky and heavily weighted component of the basket, it seems increasing likely that inflation will remain sticky. The central bank has taken cognisance of this and at their recent monetary policy meeting decided to keep the repo rate unchanged at 7%. The portfolio is not currently exposed to long-term bonds and listed property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes for their potential inclusion, should appropriate yields be obtained. The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits.

The Marriott Income Fund distributed 0.6308 cents per unit in July. The portfolio has been restructured with a significant portion of the portfolio being moved from very short dated deposits into twelve-month termed deposits. This restructuring has locked in the highest possible rates. The current average term to maturity of the Marriott Income Fund has been lengthened to approximately 210 days in light of the recent decision of the Reserve Bank to halt interest rates cuts. May saw an 8% year on year increase in consumer price inflation. This was the 27th consecutive month that the rate of increase in the prices of consumer goods and services has been above the targeted 3 - 6% band set by the Reserve Bank. Inflationary pressures are now broadly spread throughout the CPI basket, whereas a year ago inflation was primarily being driven by food and fuel price increases. With service inflation measuring above 8% yoy, a notoriously sticky and heavily weighted component of the basket, it seems increasing likely that inflation will remain sticky. The central bank has taken cognisance of this and at their recent monetary policy meeting decided to keep the repo rate unchanged at 7.5%. The portfolio is not currently exposed to long-term bonds and listed property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes for their potential inclusion, should appropriate yields be obtained. The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits.

The Marriott Income Fund continues to be exposed to short-term cash deposits to ensure capital stability and take advantage of the highest yields available. Its current term to maturity remains around 20 days to take advantage of the higher yields on offer in this area of the deposit curve. The portfolio is not currently exposed to long-term bonds and listed property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes for their potential inclusion, should appropriate yields be obtained. The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits.

The Marriott Income Fund continues with its exposure to short-term cash deposits to ensure capital stability and take advantage of the highest yields available. Its current term to maturity remains around 30 days to take advantage of the higher yields on offer in this area of the deposit curve. The portfolio is not currently exposed to bonds and property as these asset classes remain at relatively low yields with a continued risk of capital loss. Close attention is being paid to these asset classes, however, for their potential inclusion should appropriate yields be obtained.

The portfolio is only exposed to the top four South African banks by way of ordinary deposits and has imposed a maximum exposure of 30% to any one bank. There is no exposure to credit risk transfer instruments or to asset-backed deposits.