Fund Objective

The Fund seeks to maximise income by investing wholly in money markets.

View on Past Performance

Throughout the month the fund was invested in a portfolio of cash deposits and certificates of deposit with highly rated banks. We were careful to maintain adequate liquidity in circumstances where the usual operation of the money markets was disrupted.The interest rate cycle has now turned and there will be further cuts in 2008. The timing and extent of the reductions will depend on the interplay between slower growth and stubborn inflationary pressures, but a move below 5.00% by the year end looks possible.

Future Expectations

The interest rate premium resulting from the credit crisis is likely to persist for several months and will mean that the fund's investments will be made at higher levels relative to the base rate; more than would normally be expected in a falling base rate environment. The Fund's emphasis on security and liquidity will be maintained through 2008.

Fund Details