Fund Objective

To provide long-term capital growth.

View on Past Performance

It was another torrid month for European equities, as investors tried to come to terms with the full ramifications of the banking crisis and the looming threat of recession. Risk aversion remained high and markets, despite a late rally, sold off heavily. Overall, the MSCI Europe index fell 14.2% in local currency terms.The Fund failed to match the index in October with the largest impact coming from not holding Volkswagen. Shares in VW rose sharply after Porsche surprised the market by declaring that it controlled nearly three-quarters of the company. Other stocks to hold back performance included RBS, Tognum and Lonmin.

Future Expectations

We remain confident that we can find companies that can weather the global economic slowdown and tighter credit conditions. Our five-year forecasting process allows us to indentify companies during every part of the economic cycle and it is these opportunities that will continue to drive performance.

Fund Details