Investec GSF US Dollar, Euro and Sterling Money Funds

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					 GSF            Commentary


Investec GSF US Dollar, Euro and Sterling
Money Funds
Month ending 31 January 2010




  Important Information:
  ●    Investec US Dollar Money Fund, Euro Money Fund and Sterling Money Fund (the "Funds") are money mutual fund. The Funds aims
       to give shareholders access to income at wholesale euro-currency market interest rates in their respective currencies.
  ●    Key risks of the product:
       Money market instruments risk – Money market instruments in which the Funds invest are subject to the solvency of the underlying
       issuer. The buying and selling of money market instruments is exposed to liquidity constraints in the market.
  ●    In the worst case scenario, the value of the Fund may be worth substantially less than the original amount you invested and in an
       extreme case could be worth nothing.
  ●    The investment decision is yours but you should not invest in the Fund unless the intermediary who sells it to you has explained to
       you that the Fund is suitable for you having regard to your financial situation, investment experience and investment objectives.
  ●    Investors should not only base on this material alone to make investment decisions. Please refer to the Fund Prospectus for the
       details of all risk factors.


Investec Euro Money Fund
Market Highlights
The European Central Bank Governing Council left policy unchanged in January at 1.00% by unanimous
decision.
President Trichet’s press conference revealed no change in outlook for the economy or inflation. Indeed, much of
the discussion centred on Greek issues. President Trichet was firmly of the view that this was more a problem for
Greece than it was for the euro zone. Trichet was sympathetic to the Greek plight, describing suggestions of a
Greek exit from the euro zone as “absurd”. However, he did reiterate that Greece must “get on with the job”, that
membership of the currency union had already brought significant aid, and that further special treatment could
not be expected. The Governing Council views official rates as appropriate for now and Trichet refused to answer
questions on longer term market expectations for rate increases. The President did say that euro overnight index
average (EONIA) rates were currently pressed close to the deposit rate because of liquidity associated with the
one year long term refinancing operations. This is not new news however, and we believe the ECB is considering
withdrawing liquidity from the markets this year.
3 month LIBOR for the month of January finished at 0.60%, five basis points lower than in December. 1 month
euro certificates of deposit are currently yielding 0.25% compared with 1 year certificates of deposit yielding
1.20%.
Performance Review
The Investec GSF Euro Money Fund returned -0.01 (‘A’ shares, net of fees, in euros) during January against
the LIBID EUR 7 Day benchmark return of 0.03%.
Outlook
LIBOR rates dropped slightly for the month of January, perhaps indicating that we are close to the bottom. We
have started to see LIBOR rates begin to rise in the UK and we expect this to follow through in the US and euro
zone, albeit at a slower pace. Our investment philosophy remains the same, maintaining a relatively long
weighted average maturity against the benchmark in order to enhance yields by taking advantage of the positive
yield curve. We continue to envisage unchanged official rates for the foreseeable future, although we are mindful
that the market may begin to factor in increases, possibly during the second quarter of 2010. As at the end of
January, the weighted average maturity of the Fund was 57 days. We will continue to search for yield without
losing sight of our primary objectives which are capital preservation and liquidity.




This communication is meant to be read only            Past performance should not be taken as a
by professional investors, professional                guide to the future and there is no guarantee
financial advisors and, at their exclusive             that this investment will make profits. Returns
discretion, their clients. It is not to be generally   will vary with market action, fee levels and
distributed to the public.                             taxes and in certain market conditions.
Investec Sterling Money Fund
Market Highlights
The Bank of England’s Monetary Policy Committee (MPC) held official interest rates at 0.50% in January.
While the MPC did not expand the quantitative easing programme beyond the £200 billion of assets (mainly gilts)
already purchased, it left the door open to further purchases should weaker economic news warrant it. Our view
remains that the MPC has probably done enough to secure a recovery and that it is now a case of waiting until
the previous stimulus (lower interest rates), quantitative easing, the depreciation in sterling and fiscal policy takes
hold. In the statement accompanying the decision, the MPC seemed less upbeat about the speed of the recovery
than the forecasts published in the November inflation report. The MPC now sees only a ‘gradual recovery in the
level of activity’. While we believe that we have seen the end of the quantitative easing programme, the risk of a
double dip in economic activity (in the near term due to higher VAT, the imminent end of the car scrappage
scheme and inclement weather and in the longer term due to the need to reduce public and household debt)
means that we cannot fully write off the chance of further stimulus just yet as a risk to our central scenario.
3 month LIBOR rates for the month of January remained practically unchanged at 0.62%. 1 month certificates of
deposits are yielding 0.49% compared with 1 year certificates of deposit yielding 1.25%.
Performance Review
The Investec GSF Sterling Money Fund returned 0.01% (‘A’ shares, net of fees, in sterling) during January,
against the LIBID GBP 7 Day benchmark return of 0.04%.
Outlook
3 month LIBOR rates remained unchanged for the month of January, perhaps indicating that the bottom may
have been reached. Our investment philosophy will be to continue to maintain a relatively long weighted average
maturity against the benchmark by taking advantage of the positive yield curve. We continue to envisage
unchanged official rates for the foreseeable future, although we are mindful that the market may begin to factor in
increases, possibly during the second quarter of 2010. As at the end of December, the weighted average maturity
of the Fund is 40 days. We will continue to search for yield without losing sight of our primary objectives, which
are capital preservation and liquidity.




                                                                                                               Page 2
Investec US Dollar Liquidity Fund
Market Highlights
The US Federal Reserve Open Market Committee (FOMC) maintained the target funds rate at 0-0.25% with the
risks skewed to a ‘risk to growth’.
The FOMC statement showed a slightly more ‘hawkish’ tilt than anticipated with Kansas City Federal Reserve
President Thomas Hoenig dissenting. The committee made a number of changes that indicated a more upbeat
outlook on growth. These included somewhat less disinflationary pressure, and further confirmation that the
Federal Reserve will not be expanding its asset purchase program beyond March. President Hoenig dissented
because he “believed that economic and financial conditions had changed sufficiently” and that he favoured
removing the language stating that the Federal Reserve funds rate will be kept at exceptionally low levels for an
extended period. Whilst this statement does not alter our views on the likely start of the tightening process, it
does provide further evidence that we are taking the right steps towards higher official rates, of which we
continue to expect the first rate rise in the third quarter of 2010.
3 month LIBOR rates remained unchanged for the month of January closing at 0.25%. 1 month certificates of
deposit are yielding 0.20% compared with 1 year certificates of deposit yielding 0.80%.
Performance Review
The Investec GSF US Dollar Money Fund returned 0.01% (‘A’ shares, net of fees, in US dollars) during
December against the LIBID USD 7 Day benchmark return of 0.02%.
Outlook
LIBOR rates remained stable for the month of January, perhaps indicating that the bottom may have been
reached. We have started to see LIBOR rates begin to rise in the UK and we expect this to follow through in the
US, albeit at a slow pace. Our investment philosophy remains the same for the start of the first quarter of 2010, to
maintain a relatively long weighted average maturity against the benchmark to enhance yields by taking
advantage of the positive yield curve. We continue to envisage unchanged official rates for the foreseeable
future, although we are mindful that the market may begin to factor in increases, possibly during the second
quarter of 2010. As at the end of January, the weighted average maturity of the Fund is 35 days. We will continue
to search for yield without losing sight of our primary objectives, which are capital preservation and liquidity.




                                                                                                            Page 3
Important information
This document is not for general public distribution. If you are a private investor and receive it as part of a general
circulation, please contact us at +852 2861 6888.
The value of this investment, and any income generated from it, will be affected by changes in interest rates,
general market conditions and other political, social and economic developments, as well as by specific matters
relating to the assets in which it invests. Investors are not certain to make profits; losses may be made.
Past performance figures shown are not indicative of future performance. Investment involves risks. Investors
should read the Prospectus for details, including the risk factors.
All the information contained in this document is believed to be reliable but may be inaccurate or incomplete. A
full explanation of the characteristics of the investment is given in the prospectus. Any opinions stated are
honestly held but are not guaranteed and should not be relied upon.
THIS DOCUMENT IS PROVIDED FOR GENERAL INFORMATION ONLY. IT IS NOT AN INVITATION TO MAKE
AN INVESTMENT NOR DOES IT CONSTITUTE AN OFFER FOR SALE. THE FULL DOCUMENTATION
REQUIRED TO MAKE AN INVESTMENT, INCLUDING THE PROSPECTUS OR OFFERING MEMORANDUM,
IS AVAILABLE FROM INVESTEC ASSET MANAGEMENT.
THIS INVESTMENT IS NOT FOR SALE TO US PERSONS.
Telephone calls may be recorded to confirm your instructions.
This document has not been reviewed by the SFC.
Issuer: Investec Asset Management Asia Limited.




Further Information
Investec Asset Management Asia Limited                     Phone: +852 2861 6888
Suites 2604-06, Tower 2, The Gateway                       Fax: +852 2861 6861
Harbour City, Tsimshatsui                                  Email: investec.asia@investecmail.com
Hong Kong




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