Newsletter:

Subject:	Unit Trusts looking good...
Date:	22 Jul 03

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With R10,3bn of new inflows into unit trusts over the last quarter, could it be that finally some of the misperceptions around unit trusts are being laid to rest? We have always maintained that unless you are a professional stock picker, maintaining a direct equity portfolio is a risky and sometimes unnerving business. Over the last six months that has certainly held true with the All Share Index losing some 40% and climbing around halfway back again.

Our emphasis on fund managers with a proven record of identifying value stocks, and a simple switch into property funds last year has meant that our unit trust investors have fared a lot better. Our market view of last week reiterates this - that there is excellent value in well chosen domestic focussed equities, but the bigger JSE companies who are reliant on offshore earnings are still in for a rough ride.

Security Concerns - we are still trying to understand what happened in the well-publicised Absa affair where accounts have been broken into. The bank claims that customers had 'Trojan horse' software that they had installed on their own computers thinking it was something else, and which then emailed their log in details to the fraudsters. This may be the case - but why only Absa clients, and why all in Northern Cape Town?

We'll be publishing this as a fuller article, but for now here's our simple set of rules to stay secure on the internet:

Never use the 'Remember Password' facility that Windows provides

Never double-click on an email attachment and never install ANYTHING on your computer unless you know and trust where it comes from. If you think a friend mailed it to you - be very sure that it wasn't a virus on their computer that sent it!

Choose decent passwords - eg. not JohnD but j0HN?d3 or something.. Change your important passwords at regular intervals.

For peace of mind ensure that you have Antivirus software that gets updated every week or so.

Take responsibility for your own security on the internet - that means know and understand what you are doing and why. Phone and ask us if you are not sure and have any queries.

New funds with interesting objectives have been launched by African Harvest and Investec, there's been trouble with Coronations International Active Fund of Funds, the Financial Intelligence Centre Act has kicked in, and the calls for greater responsibility on poor pension fund performance continue....

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Prescribed Investments and Pension Funds
An interesting article in the 14-18 July edition of Finance Week written by Greta Steyn focused attention on the proposed voluntary investment targets proposed by the Government.

More at http://www.equinox.co.za/article_488.html

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SA unit trust inflows surge to R10,3 billion in June quarter
The South African unit trust industry recorded an impressive R10,3 billion net inflow in the June quarter as investors continued to target local fixed interest and asset allocation funds, says Association of Collective Investments, CE Colin Woodin.

More at http://www.equinox.co.za/article_484.html

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Trouble for Coronation's International Active Fund of Funds
We were first alerted to concerns with one of the underlying funds in the Coronation International Active Fund of Funds on June 11th this year. A press release from Coronation announced that the fund would concentrate on "long only" investments, as per Financial Services Board legislation. A second part of the press release discussed the recent poor performance of one the underlying funds, the Lancer Hedge Fund. Now it appears that Coronation had justifiable cause for concern.

More at http://www.equinox.co.za/article_486.html

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Pensions - A Call for Greater Trustee Participation
Unit trust watchers may have picked up on an ongoing debate conducted through the press between asset management companies and the trustees of pension funds. Blamed for the recent poor performance of investments, asset managers have been quick to point out that their hands were tied by sometimes inappropriate mandates. Here, in a press release from Alexander Forbes Asset Consultants, Muitheri Wahome of Alexander Forbes takes the call for trustee and shareholder participation a step further.

More at http://www.equinox.co.za/article_483.html

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Focus on African Harvest's Flexible Fixed Interest Fund
The African Harvest Fixed Interest Team, charged with managing the African Harvest Flexible Fixed Interest Fund, is a specialist team that enjoys an absolute focus in the management of capital, and money market portfolios.

More at http://www.equinox.co.za/article_487.html

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Two new funds from Investec Asset Management
Investec Asset Management has is extended its range of unit trusts by launching two new funds for risk-averse investors.

More at http://www.equinox.co.za/article_485.html

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Economic and Market Comment: Investment Solutions
Has the world equity market turned the corner or not? Analysts point to factors which are difficult to interpret and understand. Read this carefully written and cautious overview of the highlights and low points of the second quarter, 2003.

More at http://www.equinox.co.za/article_481.html

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Investing requirements to change as the battle to control hot money hots up
In terms of new legislation applicable from June 30, 2003, EQUINOX.co.za, as well as hundreds of other South African businesses will have an onerous new duty: compliance with money-laundering laws. Previously only dealers in motor vehicles and Kruger Rands were "accountable institutions" with respect to money-laundering legislation.

More at http://www.equinox.co.za/article_475.html

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Best Regards
The Equinox Team

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