Over the quarter, the fund underperformed its benchmark. A defensive position in credit held back relative performance, as central bank interventions globally buoyed investor sentiment. Furthermore, an underweight in financials, including Citigroup and Standard Chartered Bank, detracted since it was one of the better-performing sectors. An exposure to selected issues, such as Greene King, within asset-backed securities (ABS) inhibited returns amid continued mark-downs despite animprovement in the credit markets. Conversely, an overweight in holdings such as Telefonica and Southern Water within telecommunications and utilities boosted returns; these sectors proved resilient over the period. In addition, an exposure to some emerging-market debt, for instance Gazprom and high-yield bonds, drove performance given that investors bought riskier assets over the quarter. Moreover, an exposure to inflation-linked bonds in key economies was rewardingon account of mounting price pressures.