has comfortably outperformed the funds benchmark.

The rand continued to strengthen in the third quarter of 2003, reducing some of the equity market gains. Countering this, short-term interest rates reduced as expected and this has had a positive effect on the share market.

The fund manager's continue to believe that the South African equity market offers excellent long term value and that interest rates will continue to decline with lower inflation and the prospects for double digit returns for several years exist in well selected South African equities.

A very volatile quarter has just ended. The South African equity market rallied strongly in May up 14,3%, sandwiched between two negative months for a net gain on the quarter of 9.9%. While the AMB Foord manager was expecting the post war recovery in May, the subsequent decline in June was not anticipated.

AMB Foord believe that the South African equity market offers excellent long term value and that interest rates will continue to decline with lower inflation and the prospects for double digit returns for several years exist in well selected South African equities.

The favourable fundamentals associated with falling interest rates and a concomitantly declining rand are likely to boost domestic corporate profit growth.

Fiscal and monetary restraint lends itself to improving inflation characteristics.

Many South African equities offer compelling value and so the fund managers believe that whilst the performance of the indices may be muted, the opportunities within the market will prove to be profound.

AMB Foord are expecting 2003 to be a very good year for South African equities commencing after the resolution of Gulf hostilities and accelerating as the year progresses.

AMB Foord will continue to emphasise a concentrated portfolio of diversified companies that have positive cash flows, industry or product competitive advantages, capable and trustworthy management, plus earnings that they expect to grow faster than average for a multi-year period.