Fund Objective

To achieve capital growth.

View on Past Performance

During the period under review the offer price of accumulation units rose by 9.38% from 45.31p to 49.56p. In view of the nature of the Trust and its investment remit there is no directly comparable market index. At the start of the 12-month period under review, global equity markets were continuing their post-war rally following the offical end of the conflict in Iraq. Over the first half of the reporting period the upturn in global economies encouraged us to increase the Trust's weightings in equity markets in the US and Japan, whilst reducing the UK exposure. Towards the end of the period, investors began to worry that the undoubted strength of both the US and Chinese economies had begung to rekindle inflationary pressures. Within the portfolio, there have been some marked changes in our stock and sector strategy, largely triggered by economic and market developments.

Future Expectations

Global economies are currently enjoying a synchronised recovery, providing a helpful backdrop for world equity markets. While the pace of expansion is likely to slow to a more sustainable pace in 2005, this should still present a favourable environment for equities. The strength of the economic recovery and the sharp rise in oil prices has contributed to a pick-up in inflation, but we believe it will rise moderately over the rest of 2004 to help curb inflationary pressures.

Fund Details