Fund Objective

Aims to provide capital growth.

View on Past Performance

UK smaller company shares underperformed the broader market in October, amid growing concerns over the deteriorating domestic economy and weakening consumer spending, as well as a spate of profit warnings. The FTSE Small-cap Index closed 20% lower. The Bank of England cut interest rates by 0.5% as part of a coordinated global response to the credit crisis.It also boosted bank deposit guarantees, unveiled a £50bn rescue package, offered up to £200bn in short-term loans and proposed to take stakes in three banks. Latest data showed the economy was edging towards recession: third-quarter GDP shrank by 0.5%, the first contraction in 16 years. Manufacturing output declined, while retail sales cooled as unemployment rose. Housing prices remained weak.The inflation outlook was mixed as producer prices eased but consumer prices rose faster than expected in September. In portfolio activity, we took the opportunity to increase our exposure to Care UK and Dechra on the back of share price weakness.

Fund Details