Newsletter:

Subject:	New Market View, Portfolio changes
Date:	28 May 03

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28 May 2003 - Current Market View

Remain cautious. Property unit trusts and South African shares which focus on the domestic economy remain the preferred investments.

"The rand has been the dominating influence over the past year. The rand is currently consolidating its considerable gains from its panic driven sell-off (which peaked in December 2001 at 13.85 to the dollar). We anticipate that the consolidation will persist for the next few months and may involve a retracement to the 8.30 level against the dollar. Thereafter, we expect further rand strength - 6.0 is a possible objective. (even mentioning the possibility makes me look nervously over my shoulder for the men in white coats)...."

Read the full text at http://equinox.co.za/default.asp?marketview

Portfolio Changes
There is a single change to the Speculators Portfolio, namely a 10% allocation to gold. The Top Managers Portfolio and Prudential Portfolio remain unchanged.

To view the EQUINOX Managed Portfolios, click here: http://equinox.co.za/default.asp?portfolios

Note that investors in our EQUINOX Managed Portfolios do NOT incur any switching fees when the underlying funds are changed. This means that our investment managers are be able to concentrate purely on optimising performance, without any conflicts of interest, or worries that smaller investors in these products will be prejudiced by the costs of switching.

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Jeremy Gardiner's Global Outlook: Not out of the woods yet
So the war is now over. This is of course important for markets, as it removes an unnecessary element of uncertainty.

More at http://www.equinox.co.za/article_460.html

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Association of Unit Trusts (AUT) renamed Association of Collective Investments (ACI)
Changing industry legislation has prompted the Association of Unit Trusts to be renamed the Association of Collective Investments, in recognition of the association's responsibility for a broader range of investment products.

More at http://www.equinox.co.za/article_459.html

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Is there a safehaven in uncertain times?
With world share markets in a third year of decline and South African markets having shown a steep decline over the last twelve months,South African investors have been hard hit.Against a backdrop of increased market volatility and a cumulative effect of long market decline on sentiment and morale,what started as a correction to a long bull market has become a widespread bear market affecting all companies and sectors.

More at http://www.equinox.co.za/article_458.html

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Want to invest in rand-denominated offshore unit trusts? Read this first.
Talk of interest rate cuts and the weakening rand has sparked a flood of enquiries about the availability of rand denominated offshore funds.

More at http://www.equinox.co.za/article_457.html

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Falling markets: Anxious investors. What should you do?
Early this week we received a number of e-mails from clients requesting information on unit trust funds "where you can't lose any money". Recent falls in world stock markets have left a trail of concerned investors and a spate of press articles (for example the Sunday Times lead article on May 11th, 2003) have played a role in contributing to investor anxiety.

More at http://www.equinox.co.za/article_455.html

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Weak Global Economic Outlook: Frater Asset Management
This very readable economic outlook, written by James Frater of Frater Asset Management, compares the US economy to a company, which makes it easier to see the deep structual weaknesses in the US.

More at http://www.equinox.co.za/article_453.html

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Best Regards
The Equinox Team

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