Fund Objective

The Fund aims to achieve above average capital growth.

View on Past Performance

In a highly volatile and extremely dramatic month, the FTSE All Share Index lost 13% of its value.Against this background, the fund performed relatively weakly. An overweight in oils and an underweight in banks detracted from performance. The principal detractor at the stock level was ICAP, the world's biggest money broker. However, not owning HBOS, which fell by 61% over the month, and hedge fund business Man Group, which fell 40%, was helpful.Defensive stocks such as Scottish & Southern Energy, BAT and Reckitt Benckiser also supported performance. An underweight in mining was beneficial despite a 40% fall in Xstrata, a large holding in the fund. We added the construction and support services company Carillion, following a meeting with management.The firm's earnings are supported by a solid order book and cost benefits from its acquisition of McAlpine. We also bought water utility Pennon on value grounds. Support services company Serco, which has performed well, was sold.

Future Expectations

We anticipate that markets will remain volatile in the short term. However, any sign that the Bank of England is ready to loosen monetary policy further should provide a fillip to the market.

Fund Details