Fund Objective

To provide income with the prospects of capital growth.

View on Past Performance

During September, the markets were dominated by some of the most dramatic events in living memory, as the collapse of Lehman Brothers initiated a significant escalation of the credit crunch, including the US government bailout of AIG and the planned takeover of HBOS by Lloyds TSB. This led to extreme market volatility and wild swings on a daily basis. Oil and commodity prices continued to fall during the month, but inflation data continued to show increases.

Future Expectations

The financial crisis widened considerably during this month, and it remains unclear whether governmental intervention will be enough to support the market and see an end to the steady stream of distressed takeovers and bankruptcies. The effects of these will spill over into the real economy, as many consumers and companies will be forced to cut back spending.We remain defensively positioned, with a large weighting in healthcare, telecoms and utilities. We are watching for opportunities afforded by market volatility to buy into quality companies or add to our positions.

Fund Details