Fund Objective

The fund focuses on achieving medium to long term capital growth.

View on Past Performance

The past three months has seen sustained and significant market volatility and September saw an acute worsening of the credit environment. Financials have been especially hard hit in the recent market turmoil but all sectors have been affected negatively.In the current market conditions we let the Fund's cash position drift upwards. We have however, continued to seek opportunities and added to Carillion and Management Consulting. We bought a new holding in Robert Wiseman, a dairy company. We reduced our holdings in Begbies Traynor and Finsbury Foods and sold out of Telford Homes.Technology and support services were positive over the period as was healthcare - whilst many industries are concerned about dwindling orders this area remains buoyant. We also acquired Craneware, a provider of billing audit software for US hospitals. We are keen to maintain a defensive stance during the current market conditions.

Future Expectations

The outlook for the markets remains volatile and economic growth is likely to be negative over the next few quarters. However, governments have recently shown their willingness to go beyond talking about the issue and take decisive, coordinated action to address the situation. Whilst the effect of the interest rate cuts is yet to be seen it is positive that action has been taken.

Fund Details