The third quarter will be remembered as one of the worst in history, with the percentage fall in equity markets being compared to the crisis of 1929 and 1987. Combined, world equity markets fell to levels last seen in 1995.

Despite the negative sentiment, the Liberty Multi-Manager International Fund of Funds outperformed its Morgan Stanley Capital International benchmark (over the third quarter) benefiting from an over-weight position in Cash and Regional Allocation. The fund lost 12.3% versus a benchmark loss of 16.5%.

Japan was the best performing region, despite falling to near-20 year lows amidst on-going bad debts within its banking sector. Europe was the worst performing, on concern of the negative effects a lackluster US Consumer Confidence Index would have on the region's exports.

Over the two years since its launch the fund has returned -5.4% versus a benchmark of -7.6%, ranking it 6th out of 22 amongst its peer group. With markets increasingly volatile the fund has benefited from its multi-manager approach through region-, investment style-, and manager-diversification.

Over the second quarter the fund endured increasing volatility in global equity markets fuelled by corporate accounting scandals, downwardly revised corporate earnings and lack of investor confidence. The fund also strained with an appreciating currency against South Africa's main trading partners. It lost 15.7% over the quarter with its benchmark, the Morgan Stanley Capital International index, losing 9.5% in US dollar terms. The rand exchange gained 9.8% against the US dollar over the second quarter. The fund was clearly partially rescued by 13.2% holding in cash. The cash portion returned more than 2% for the quarter.