As predicted in May's fact sheet the equity markets were all over the place during the month of June, moving within an approximate 10% range. Trying to "time" the market is most dangerous and should be left for the speculators and gamblers. We expect this trend to continue for at least another 2 months. The Fund's asset manager, Mr. Chris Meyer, takes a longer-term view and does not try to "time" the market in the short term. As such the fund has continued to hold its percentage equity exposure on a high level. This investment strategy is in line with the expected strong performance of the South African economy over the next 3 to 5 years, followed closely by strong company results and share prices. Investors wishing to invest any fixed capital sum should do so in equal instalments over the next 2 months. This will avoid missing out on any upward move but at the same time will allow for a possible lower average purchase price of units in the Fund.

The Fund has continued to perform strongly during January in line with the strong performance of the JSE Securities Exchange.

The Fund was invested to its maximum allowed levels in equities.

We will continue to maintain this asset allocation in light of Indequity's ongoing view that South African companies will continue to report strong earnings growth. This will drive the JSE Stock Exchange further and the Funds net asset value.