Fund Objective

There is no fund objective available from this fund manager.

View on Past Performance

The Fund returned -0.62%, compared to the FTSE All-Stocks Index return of 0.9% in six months to September. The Bank of England held rates at 5%, but is expected to start cutting rates in October. Inflation rose to 4.7% in August but expected to fall back next year due to weaker growth. September consensus growth expectations for 2008 fell to 1.2% from 1.4% the previous month. Growth expectations for 2009 have also been revised down to 0.6% from 0.9%.The Fund is positioned for UK bond yields to fall, against a background of weaker growth and lower inflation. We believe shorter dated yields will fall the most as the Bank of England will be forced to cut interest rates aggressively. The UK government bond curve steepened in September i.e. short dated gilt yields fell sharply in anticipation of future interest rate cuts while longer dated gilt yields remained unchanged.Yield curve changes in the UK largely mirrored similar moves in other developed markets.

Fund Details