Fund Objective

To provide long-term capital growth.

View on Past Performance

Whilst the Fund was down over the quarter, it delivered good performance versus the FTSE All-Share Index. Our investment process has been instrumental in delivering this performance. Our focus on Intellectual Capital, employee equity ownership (in smaller companies) and balance sheet risk have created a portfolio of companies that have held up well during a period of rising risk aversion.Over the last three months, as fears of recession have increased, the ability of companies to sustain profits has become critical. We have always struggled to find compelling Intellectual Capital in areas such as retailing, leisure and property. We also did not find compelling Intellectual Capital in retail banking.

Future Expectations

Overall, it was pleasing to have held up relatively well over the third quarter. A mix of strong business models, a lack of exposure to sectors that have been particularly weak and a cautious approach towards debt have paid off. We believe that our investment process will continue to deliver good relative performance for the Fund during turbulent times.

Fund Details