Fund Objective

Provides capital growth and a measure of income growth predominantly through diversified investment in worldwide equities and bonds.

View on Past Performance

This past year was an almost identical replay of the events that led to the 1990-91 recession. Early in 1999 the Federal reserve aggressively raised short-term Fed Funds rates to a peak of 6.5%. This higher cost of capital effectively put the brakes on the economy, notwithstanding the Internet build-out. Loans became harder to come by and marginal projects started to be more closely scrutinezed for loftier profitability returns as investors could get higher yields on risk free deposits.

Future Expectations

The key to this year will be finding and owning the shares of companies that have almost impregnable income statements. Economic downturns inevitably result in earnings growth slowdowns. Though no company can be totally immune to macro influences, many of those in their portfolio certainly have businesses of a recession resistant Nature. As always they will strive to research and own these kinds of stocks in your portfolios.

Fund Details