Fund Objective

To achieve capital growth.

View on Past Performance

US equities declined to its sharpest monthly fall since 1987, as credit-related losses and write-downs weighed on sentiment. The House of Representatives approved the revised version of the US Treasury's US$700bn rescue package. The Federal Reserve cut interest rates by 0.5% to 1% to prevent a deep recession. During the third quarter, GDP contracted by an estimated annualised 0.3% from the previous quarter, while industrial output fell to a 17-year low as the credit crisis intensified.October consumer confidence weakened to a record low, as consumers tightened spending. In portfolio activity, we sold retailer Macy's and aerospace company Textron Inc given their deteriorating outlook. We also pared United Technologies and trimmed JP Morgan Chase on price strength, as the government's crisis measures improved sentiment on banking stocks.

Future Expectations

We continue to focus on companies with strong business franchises that can weather the current economic downturn. Despite the unprecedented market weakness, we believe the sell-off might present bargain buying opportunities for long-term investors.

Fund Details