The Marriott Income Fund distributed 0.5734 cents per unit in September 2010. The portfolio was restructured in July to include premium NCD instruments, floating corporate debt, preference shares and inflation-linked bonds.

Floating corporate debt provides a higher yield than cash and the additional credit risk has been managed by loaning only to those companies in which Marriott is currently invested in our equity and property portfolios. The capital value of the debt is unaffected by changes to interest rates as it readjusts to current rates every 3 months.

Listed preference shares also provide a relatively high yield with the opportunity of capital gain should these current yields return to their lower long term averages. Inflation linked bonds when linked with premium NCD's, offer higher levels of income than cash as well as low capital volatility and a known real return (return in excess of inflation) if held to maturity.

The target asset allocation is:

o Floating rate corporate debt 20%
o Listed preference shares 10%
o Structured NCD's 30%
o Inflation linked bonds 20%
o Cash 20%

Property and long bonds yields are well below their historic averages and will only be included when the opportunity for capital gains outweighs the risk of capital loss.

It must be noted that as the portfolio now includes instruments that are priced in the market the price of the units can now move up or down.

The Marriott Income Fund distributed 0.5563 cents per unit in June 2010. The portfolio was restructured in 2009 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 is approximately 67 days.

Although CPI statistics have once again declined to within the target band, upward pressures still exist, especially with electricity price increases likely over the next two years, service inflation remaining above 7% and base effects of high oil prices beginning to clear through the statistics. 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 0.6138 cents per unit in March 2010. The portfolio was restructured in 2009 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 is approximately 67 days. Although CPI statistics have once again declined to within the target band, upward pressures still exist, especially with electricity price increases likely over the next two years, service inflation remaining above 7% and base effects of high oil prices beginning to clear through the statistics. 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 0.6182 cents per unit in December 2009. 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 is approximately 106 days.

Although CPI statistics have declined to within the target band, upward pressures still exist, especially with electricity price increases likely over the next two years, service inflation remaining above 7% and base effects of high oil prices beginning to clear through the statistics. As a result, there may well be a chance of interest rates beginning to rise as some stage in the future. The average term to maturity has therefore been allowed to reduce over this last period. 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.