Fund Objective

The investment objective of Bromfield Investments Fund is to provide income and capital growth

View on Past Performance

Despite the rise in markets this has therefore been a difficult period in which to manage money. Our tendency is to concentrate on quality holdings which offer value for the longer term, rather than to be swayed by any particular short term market fad or momentum, and a more balanced approach with regard to asset allocation has also meant that it has been difficult to keep up with all equity indices on this occasion.Overall the fund has risen by 8.1% in the six months to 31st October 2003 which, although pleasing after the long bear market period which we have experienced, is a little behind the improvements registered by the FT World, FTSE 100, FTSE All Share and Eurotop 100 indices of 12%, 9%, 12% and 11% respectively. Over the longer term, though, the fund has continued to outperform. For the eighteen month period from 1st May 2002 the Fund has limited its decline to 7.9%which compares with falls of 14% and 16% in the FT World and FTSE 100 indices respectively and, since inception, the fund is down a little over 10% against a fall of 19% in the FT World index, its main benchmark.

Future Expectations

Going forward we do have some doubts with regard to the sustainability of the current recovery, taking into account the significant debt burdens which have been built up on an individual, corporate and government level, as well as the twin US current account and budget deficits, which could have a significant impact on the US dollar and, consequently, capital markets. Turnover growth, on which a lasting bull market is based, also remains muted. Nevertheless, in the short termsentiment and liquidity is likely to win the day and the New Year should therefore get off to a good start. However, the question of whether this merely represents a bear market rally or the beginnings of a more sustainable market rally is as yet unanswered.

Fund Details