Fund Objective

The objective of this Fund is to provide above average income with capital growth. The Fund will invest primarily in collective investment schemes that in turn invest in bonds, equities and high yielding stocks, predominantly in the UK. The Authorised Corporate Director may also invest at its discretion in other transferable securities, money market instruments, deposits as well as cash and near cash.

View on Past Performance

The recession risk spread from the financial sector to the broader economy. Q2 US GDP growth was revised lower by 0.5% to 2.8%. Inflationary concerns are fading, aided by the oil price which fell below US$100 per barrel. In the UK, economic data was weaker but the lower oil prices should hopefully feed through to reduce inflation. Equity markets continue to be characterised by illiquidity and risk aversion. Central banks' action has only led to modest improvements in the access to capital.The Fund slightly outperformed its benchmark during September. The UK equity income holdings fell by farther than those of the benchmark but being slightly underweight the asset class was a positive for performance. The overweight in global bonds was also supportive as was the cash weighting.

Future Expectations

An unprecedented package from the Bank of England has sought to shore up and restore confidence in credit markets. This should ensure the banking system has sufficient liquidity to function unimpeded. At the end of September UK equities looked good value however financial markets are likely to remain volatile and unpredictable in the short term.

Fund Details