Fund Objective

The fund aims to provide long-term capital growth.

View on Past Performance

The global mining and energy markets fell heavily again in October as commodity prices dropped sharply on expectations of weaker demand. Copper, zinc, nickel and tin all fell steeply on declining demand. The price of gold fell sharply as inflationary fears receded and the oil price continued to fall on worries about slower global growth. Our holding in Queensland Gas was positive for performance as it rose strongly following a cash takeover offer from BG Group.The large diversified miners were once again major detractors over the month on weaker commodity prices and strong selling pressure. We re-established a position in Chinese coal company China Shenhua Energy as recent falls left it looking very attractively valued. We sold oil and gas explorer Addax Petroleum as the company has assets in several high risk areas. Valuations of resource companies are now pricing in a substantial slowdown in global growth.

Future Expectations

We believe that value is emerging for long-term investors, however in the short-term the market remains uncertain.

Fund Details