Investec IAL USD Money Market Fund

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					Investec IAL USD Money Market Fund
June 2011

 Master Fund                                Investec GSF US Dollar Money Fund                                                      We continue to believe the committee will keep the reinvestment
                                                                                                                                   policy in place through the end of the year and will not raise the
 Portfolio Manager                          Michael Sullivan / Andrew Farrell                                                      official federal funds rate until 2012.
 Launch Date                                25 January 1985*                                                                       3 month LIBOR rates continued dipping in June to 0.82%,
                                                                                                                                   unchanged from the previous month. 1 month
 Lipper Global Sector                       Money Market - USD                                                                     certificates of deposit are yielding 0.54% compared against 1 year
 Domicile                                   Luxembourg                                                                             certificates of deposit yielding 1.55%.
 Annual Management Fee                      0.50%                                                                                  Outlook
 * The launch date reflected in this table reflects the date of establishment of the                                               There is little doubt that data over the month across the major
 underlying fund.
                                                                                                                                   economies has continued to disappoint along with continued
                                                                                                                                   ‘dovish’ rhetoric from either Fed or MPC officials. The market
Fund structure
                                                                                                                                   continues to factor out interest hikes this year in the US and UK;
The Investec IAL US Dollar Money Fund is a Rand denominated fund,                                                                  Investec concur with the market view that it is unlikely we will see
which invests in the Investec GSF US Dollar Money Fund domiciled in                                                                interest hikes this year.
Luxembourg.                                                                                                                        The £ and $ AAAm Liquidity Funds have adopted a long weighted
                                                                                                                                   average maturity to take advantage of the positive yield curve
Fund overview                                                                                                                      whilst expectations for increasing official interest rates diminish
Investec Asset Management offers money market funds denominated in                                                                 further. The € Liquidity Fund is slightly long however we are
and holdings assets in US dollars, UK sterling and euros. Money funds                                                              mindful that the ECB seem more committed to raising interest
offer regular interest payments, easy access, aim for a lower level of risk                                                        rates regardless of peripheral country weakness as their mandate
relative to bonds and equities and seek to preserve capital.                                                                       is controlling Inflation expectations and price stability.
                                                                                                                                   As a prudent measure, the Liquidity funds are maintaining a
Money funds can also raise return by exploiting changing market                                                                    larger weighting to A1+ (s/t S&P rating) credit in an
conditions caused by central bank actions. For example, money fund                                                                 attempt to alleviate sovereign and counterparty risks.
can offer efficient exposure to rising interest rates by investing in a
variety of short-term instruments that, unlike fixed deposits, do not rely                                                         Fund performance
on precise predictions of the timing of rate increases. In addition, the                                                           Period ending 30.06.2011
manager can look for short-term government bonds and notes that                                                                     Annualised return                                  1 Year   3 Years   5 Years
deliver better yields than cash, while maintaining good capital security
                                                                                                                                    Investec IAL USD Money
(albeit not as secure as bank deposits).                                                                                                                                               -9.2%     -3.8%     1.0%
                                                                                                                                    Market Fund
Money funds also allow businesses and individuals to hold a reserve of                                                               Source: Investec, Sell-to-Sell, fund performance based in South African
                                                                                                                                     Rands, for untaxed policyholders, including reinvested income.
cash in one of the world’s major currencies, perhaps to pay expenses in
that currency or simply for the temporary parking of funds. Whilst the
Fund invests in highly rated commercial paper, it has made no
investment in asset backed commercial paper in the past five years and
indeed has no current plans to do so. While the Fund aims to preserve
capital, this is not guaranteed.

Who should invest?
The Investec US Dollar Money Fund is suitable for those investors who
seek a low risk investment opportunity; capital security and a high
income yield at wholesale market interest rates. (when measured in

Market Background
The June Federal Open Markets Committee (FOMC) statement
revealed little extra from the Federal Reserve.
The economic recovery continues to be described as “proceeding at a
moderate pace” underpinned by an ongoing expansion in household
and business spending. The committee believes the factors that have
slowed growth recently are transitory and should wane in time. The
committee are increasingly aware of the longer term impediments to
generating above trend growth going forward. It was a measured
statement, balanced in views. On the one hand the renewed focus on
overall inflation and the fact that it has moved higher means the
committee see the balance of risks as having shifted against further
stimulus despite the large output gap. On the other hand, the primary
source of higher headline inflation has been commodity prices, which
are prices the Federal Reserve generally believes are determined by
global conditions and are largely outside the reach of their interest rate
policy. In essence the June statement and press conference suggests
that the Federal Reserve is willing to sit patiently in neutral and examine
the incoming data flow before deciding its next step.

       The investments referred to in this document are generally medium to long term investments. Their value may go down as well as up and past performance is not
       necessarily a guide to future performance. Fluctuations or movements in exchange rates may cause the value of the underlying international investments to go up or down.
       A schedule of fees and charges and maximum commissions is available on request from Investec Assurance Limited (IAL). Commission and incentives may be paid and if
       so, would be included in the overall costs. A prospectus is available in respect of the underlying investment fund on request from IAL. Life funds are offered under the life
       licence of Investec Assurance Limited (a registered long term insurer) and are administered by Investec Asset Management (Pty) Limited (a registered financial services

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