Fund Objective

The objective of the fund is to achieve long term capital growth

View on Past Performance

Investors' risk appetite has diminished substantially following the recent fi nancial crisis. However, measures are being taken around the world to support the banking system. For a considerable time, we felt that authorities were overly concerned with infl ation at the time when a far greater risk was asset-led defl ation. The recent events have made this clear to various governments and central banks. We therefore expect them to provide more liquidity and cut interest rates further.We suspect that the market has exaggerated the recent slowdown of demand in China. Growth in China is now expected to be around 7% per annum as opposed to the previous forecast of 9%. This is still robust compared with the Western economies. China has also begun to reduce interest rates and this should buoy demand.

Future Expectations

Meanwhile, pessimism has increased about the outlook for growth in emerging economies. However, many companies with a large exposure to these economies have so far noted very little slowdown.Many stocks with substantial businesses in developing markets now trade on exceptionally low valuations. In aggregate, dividend yields are substantially above bond yields as investors have sought sanctuary in what they regard as the safest assets. We believe equity markets now offer a phenomenal valuation opportunity for investors who are able to tolerate volatility and take a 2-3 year view of their investment.

Fund Details