Fund Objective

The Fund aims to achieve above average capital growth.

View on Past Performance

The S&P 500 fell by 8.9% in September, during a month when equities gyrated wildly against the background of a financial crisis that overwhelmed Lehman Brothers and a host of other institutions. By the end of the month, investors were wholly focused on whether the US Congress would pass an economic rescue bill.We are overweight in healthcare and underweight in energy. Sector allocation had a neutral impact on performance, but stock selection proved positive. Key contributions came from Berkshire Hathaway and JP Morgan, both well-capitalised financials.However, the packaging firm Owens Illinois and the business-software firm IHS detracted from performance. We bought stock in the rail transport firm Union Pacific and the pharmaceutical giant Pfizer. We sold Apple (which is involved in a royalty dispute over iTunes) and the wirelesstechnology firm Qualcomm (which is embroiled in an anti-trust dispute).

Future Expectations

We remain defensively invested, reflecting concern about the problems facing financial markets, as well as slowing growth and rising unemployment over the next year and beyond. Inflation is less of a concern and indeed may have already peaked.

Fund Details