Fund Objective

To achieve a high level of income.

View on Past Performance

In the 12 months to 1st June 2004, the government securities market, as measured by the FTA British Government All Stock Index (Total Return), produced a return of -1.77%. The offer price of accumulation units in the Trust fell by 2.75% from 71.00p to 69.05p during the same period. It should be noted, however, that a large part of the portfolio is invested in sterling corporate bonds. The iBoxx Sterling Non-Gilt Index produced a total return of -0.74% over the same period.

Future Expectations

The market has become so much more homogenous in nature that benefiting from relative value and relative sector value positioninghas become very difficult; hence the Trust is invested with much diversification and a relatively neutral marekt position.

Fund Details