Fund Objective

The investment objective of the Company is to provide capital growth

View on Past Performance

The past twelve months, contrary to many expectations, proved to be a year of the strongest expansion in the world (4% plus) since the 1980s, thanks to the continuance of relatively low interest rates and healthy demand from the United States which in turn boosted growth in supply from, and demand in, the developed and emerging nations, with China pre-eminent in these spheres. The achievement was all the more remarkable given challenges presented by a surge in the oil price, by increasing currency fluctuations, by overall indebtedness, whether at government or consumer levels, and by the spread of Islamic militancy. The absence of inflationary pressures, other than in raw material pricing, was equally remarkable.

Future Expectations

The shadowy profits outlook for the listed major pharmaceutical companies is a case in point and led to the sales of Pfizer in the US and Aventis in Europe. We believe that markets have become overbearish about the pharmaceutical sector; certainly the ‘terms of trade’ have become increasingly adverse; but some of the remedies are within the control of the companies concerned.Only US companies with dominant franchises and where the drivers of returns appear to outweigh the adverse impact of expected dollar weakness are favoured.

Fund Details