Fund Objective

The Fund aims to achieve a total return comprising primarily income with some capital growth.

View on Past Performance

It proved to be another difficult month for government bonds, despite generally weak economic data. Concerns over a faltering recovery were trumped by worries of a flare-up in inflation driven by oil prices climbing to new highs.Bonds were undermined by more hawkish rhetoric from central banks on battling the inflation threats. Despite the difficult conditions the fund posted a gain and outperformed the benchmark, which declined in June. We added to the fund's long duration position through the month as yield levels became more attractive.The portfolio's overweight in US treasuries/underweight in German bunds contributed to its performance as the US considerably outperformed Europe. Inflation concerns in Europe caused a sharp rise in yields, whereas US bonds proved more resilient as inflation worries were eclipsed later in the month by further stress in the financial market.However, we moved less underweight in Europe over the month as the sell-off there appeared overdone.

Fund Details