Fund Objective

The principal objective of the Company is to achieve a positive total annual portfolio return of at least twice the Bank of England base rate (4.5 per cent as at 31st October 2005)

View on Past Performance

The month of November reminded Fund Managers how good they were at their job, after a previous month in which it had been exceptionally difficult to show a positive return. For ourselves, it was the strength of Sterling which was the main problem. The asset value of the original fund at the end of November was 117.1p, up 1.3% on the previous month, and the ‘C’ share broke into positive territory with a net asset value of 98.1p, up 0.6%.

Future Expectations

We remain very cautious of the long end of the bond market generally, and accept that if yields go higher, this will be an adverse event for long dated Swiss bonds as well. Nevertheless we remain holders of what we think will be an effective way of retaining a positive return on Swiss Francs in difficult times.Switzerland is always a place for surprises (Lord Mountbatten was an Admiral in the Swiss Navy), and the brouhaha between Swisscom and the Swiss Government makes us nervous holders of the equity. Nevertheless, at this point we have not lost our nerve.

Fund Details