The Marriott Income Fund distributed 0.5145 cpu in September 2014 and is currently
positioned for a rising interest rate environment. Interest rates are highly likely to rise
going forward as inflation remains above 6%; the currency has depreciated significantly
since the beginning of the year; and the SARB’s has stated its intention to normalise
interest rates in due course. In the event of further interest rate increases the portfolio’s
floating corporate debt, preference shares and cash will all produce more income whilst
providing capital stability. The income and capital growth from inflation linked bonds is
also likely to be relatively attractive as inflation is set to remain elevated for the remainder
of the year. Significantly, the fund is also ideally positioned to take advantage of investment
opportunities in the bond and property markets as the normalisation of monetary policy
will continue to exert upward pressure on the yields of these two asset classes.

The Marriott Income Fund distributed 0.5184 cpu in June 2014. Inflation continues to
increase and May’s reading of 6.6% year-on-year it is well above the South African Reserve
Bank’s upper target band. Whilst further interest rate hikes are likely, the exact timing and
extent of the hikes are uncertain. As a result, the Fund is well positioned to take advantage
of increasing interest rates by virtue of its higher exposure to shorter dated cash and
floating rate debt instruments. Inflation linked bonds, at an approximate 8% exposure, will
also stand to benefit from the continued inflationary pressures.

The portfolio is positioned to produce a relatively high income and includes cash deposits,
corporate debt, preference shares and inflation linked bonds. The Fund’s high cash balance
will protect investors from further capital volatility in the fixed interest bond and listed
property markets and afford investors the opportunity to reinvest when yields have fully
adjusted to an investment world without quantitative easing.

The Marriott Income Fund distributed 0.5098 cpu in March 2014. Amidst the backdrop
of increasing inflationary pressures and a weaker Rand, the South African Reserve Bank
increased the repo rate by 50 basis points in January. With further interest rate hikes likely
to materialise during 2014, this fund is well positioned to take advantage of increasing
interest rates by virtue of its higher exposure to short dated cash and floating rate debt
instruments. Inflation linked bonds, at an 8% exposure, will also stand to benefit from the
continued inflationary pressures.

The portfolio is positioned to produce a relatively high income and includes cash deposits,
corporate debt, preference shares and inflation linked bonds. The fund’s high cash balance
will protect investors from further capital volatility in the fixed interest bond and listed
property markets and afford investors the opportunity to reinvest when yields have fully
adjusted to an investment world without quantitative easing. easing.

The Marriott Income Fund distributed 0.4492 cpu in December 2013 and produced a total return of 4.52% for the year ended 31 December 2013, broadly in line with money market returns. The conservative positioning of the fund protected investors from the recent volatility in bond markets stemming from the decision of the US Federal Reserve to "taper" - or reduce - the size of the bond-buying program known as quantitative easing. Whilst the fund holds approximately 9% in inflation linked bonds which were impacted by this volatility, the inclusion of these instruments is still warranted with a yield of approximately 1.6% and continued inflationary pressures.

The portfolio is positioned to produce a relatively high income and includes cash deposits, corporate debt, preference shares and inflation linked bonds. The fund's high cash balance will protect investors from further capital volatility and afford investors the opportunity to reinvest when yields have fully adjusted to an investment world without quantitative easing.