Fund Objective

To provide long-term capital growth through direct and indirect investment mainly in the securities of companies that are quoted or operating primarily in countries deemed by the Authorised Corporate Director to be emerging markets.

View on Past Performance

Emerging markets collapsed along with the rest of the world, down over 16% in sterling terms as major names in the global financial system went bankrupt, were taken over, or effectively nationalised. Russia's stock exchange closed for two days as the authorities responded swiftly with a package of measures to restore market confidence and ensure sufficient liquidity was available in the system.China made its first rate cut in six years, reducing interest rates by 27bp to 7.2%, as well as reducing the reserve requirements for banks. Signs of inflation easing and some degree of growth slowdown allowed the authorities to act. The oil price along with other commodities fell sharply. One of the Funds largest active positions is its overweight position in Russia.Despite outperformance within Russia, this position had a negative impact as the Russian market failed to return in excess of the overall index. Brazilian stock, Localiza Rent a Car also detracted from performance as concerns over the economy continued.

Fund Details