The JSE All Share (ALSI) gained 2.8% on a total return basis in June 2014. The All Bond Index gained 1.0% and the Inflation-linked Bond Index gained 1.4%. Cash returned 0.5%. The NSX Overall Index gained 0.9% and the NSX Local Index gained 1.1% on a total return basis in June. Over a 12-month period the NSX Overall Index returned 30.5% against 20.8% for the Local Index. The IJG All Bond Index gained 0.7% in June and over 12-months 7.1%. The IJG Money Market Index increased by 0.5% in June and over 12-months by 5.5%. The Namibian Dollar weakened 0.6% against the US Dollar, by 2.6% against the Pound and 1.0% against the Euro this month.

The Fund realized a total return of 1.6% for the month. The key contributors to performance this month came from the Fund’s position in foreign equity and real estate. This brings the one year performance of the Fund to 20.5% (after fees) and the since inception return per annum to 10.4% (after fees). NCPI inflation has increased by 5.4% per annum.

The Fund returned 1.2% for March.

March was a fair month for us. All asset classes delivered a positive return. Within our equity portfolios our holdings in Standard Bank, MTN, Shoprite and Investec added value, as well as our underweight positions in Steinhoff and FirstRand. The biggest detractors were Lonmin, Remgro and Barclays Africa.

The FTSE/JSE All Share (ALSI) gained 1.8% on a total return basis in March 2014. The All Bond Index gained 1.8% and the Inflation-Linked Bond Index gained 2.7%. Cash returned 0.4%. Mid-Caps (+3.9%) outperformed Small Caps (+2.8%) and Large Caps (+1.5%). The best performing sectors were Food and Drug Retailers (+13.1%), General Retailers (+12.9%) and Non-Life Insurance (+12.9%). The worst were Technology Hardware and Equipment (-38.8%), Industrial Metals (-12.3%) and Media (-10.5%).

The Rand strengthened 2.1% against the US Dollar, by 2.4% against the Pound and 2.3% against the Euro in March 2014. From a foreigner's perspective, the Rand's appreciation against the US Dollar in March further enhanced the performance of the ALSI (4.0% in US Dollar terms) and Bonds (3.9% in US Dollar terms). The MSCI World Index gained 0.2% on a total return basis in US Dollar terms in March 2014, while the MSCI Emerging Markets Index gained 3.1%. The best-performing emerging market index from the selection of international equity indices in March 2014 was the MSCI Turkey (+16.8%), while the worst performing was the MSCI Russia (-2.5%).

The NSX Overall Index gained 4.8% and the NSX Local Index gained 2.2% on a total return basis in March. Over a 12-month period the NSX Overall Index returned 15.7% against 24.4% for the Local Index. The IJG All Bond Index (including Corporate Bonds) gained 1.6% month-on-month in March. Over 12-months the IJG All Bond Index is up 3.5%. The IJG Money Market Index (including NCD's) increased by 0.5% month-on-month in March. Over 12-months the IJG Money Market Index increased by 5.4%.

Annual inflation, as measured by the Namibian Consumer Price Index, increased to 5.2% in February. Food, health and transport prices continue to underpin price increases, while clothing, alcohol and health price increases slowed. The month-on-month change in inflation was a 0.7% increase in February, down from 0.9% in January 2014.

Bloomberg consensus forecast for SA CPI in 2014 and 2015 are currently at 5.9% and 5.6%, respectively.