As at 31/3/04 the Fund remained invested in a diversified portfolio of major, medium-sized and junior gold and mining company shares active in North America, Australasia, Africa, Russia and other countries, as well as a large physical position in the metals themselves (20% silver + 3% palladium = 23% of the Fund).

In March we sold our 8% physical gold position and switched into shares, keeping the outperforming silver and palladium. We participated in placements in Barnro Corp, Eurozinc Mining and Albidon. Our first unlisted (pre IPO) stock, African Minerals, is now due to list in 3Q-4Q 04 in N. America. The fund's directors continue to value it and the other restricted placements (4% of the Fund) at book, USD 8.

We forsee a growing emphasis on S. African stocks. There are signs - finally - that the Rand may weaken. Europen central banks agreed to limit gold sales to 500T pa for the next five years and this was seen positively. Consolidation continues in the sector (Durban Deep/Emperor, Norilsk/Goldfields, IAM Gold/Wheaton River). Higher input costs (energy, steel etc) have added to mining costs and this will contribute to a continuation of the gold bull market over many years as production estimates are lowered. We are confident in the investment case for gold and, in particular, the physical precious metals sector, where we have - unusually for a fund - the flexibility to have a large weighting.

Asset Allocation (as at 31/3/04)	Top 10 Holdings (50% of fund)
Gold and resource shares: 77%	1. Silver Bullion 20%
	2. Mvelaphandra Res 4%
Silver, gold, palladium: 23%	3. Resolute Mining 4%
	4. Harmony Gold 4%
Cash 0%	5. Goldfields 4%
	6. Placer Dome 3%
	7. Agnico Eagle 3%
	8. Palladium Bullion 3%
	9. African Minerals 3% (pre IPO subsc)
	10. Ivanhoe 2%
Asset Allocation (per month)