Fund Objective

The Fund seeks to achieve capital growth.

View on Past Performance

The S&P 500 fell by nearly 9% in September. The banking system experienced significant shocks that led to the downfall and/or rescue of various financial institutions.Sector allocation had little overall impact. Key positive stock contributions came from Berkshire Hathaway and Synovus Financial, both well-capitalised financials. Another holding, Research In Motion, which supplies the Blackberry, suffered after it released guidance over deteriorating future earnings. However, we have held on to the stock as we believe it represents good value.The fund is positioned in companies with superior and robust business models that can continue to deliver strong profitability in the current difficult economic climate. We bought shares in the drugs giant Pfizer, which should benefit from cost cutting and has a strong balance sheet and an attractive dividend yield. We sold Apple and Abercrombie & Fitch.

Future Expectations

We remain cautious about the short-term outlook for equities. The problems in the banking system are likely to spread to the economy and affect profit growth for at least the next 12 months. However, volatile markets are providing some attractive long-term opportunities.

Fund Details