The objective of the fund is to achieve long-term growth through investment in a portfolio of UK and international assets. The fund will take a broadly 'multi-asset' approach with the intention to perform well when markets are favourable, and preserve capital when markets are poor. It therefore aims to provide longer term positive returns under most market conditions, outperforming both cash and equities over rolling three-year periods.
November was a quiet month, with the fund falling by 0.4% versus a 0.7% decline for the FTSE All-Share. In most markets, equities continued their relentless upwards march. In America, the S&P hit fresh all-time highs. The tech-heavy Nasdaq was also strong and has now more than trebled from its lows of nearly five years ago. The UK market reached a record high at the end of October, but sterling's strength weighed on the All-Share in November; many large UK companies derive their earnings abroad.It is hard to see what can derail markets. Quantitative easing seems to be here to stay. The more central banks print, the more the market becomes accustomed to it. In November, the Bank of Japan hinted that it might need to print more money to get the inflation and growth it desires. Janet Yellen, nominated to be the next head of the Federal Reserve, said the economy and the labour market are performing "far short of their potential"and must improve before the central bank can begin reducing monetary stimulus. Investors like quantitative easing, with few seeing any danger from it. I am much more cautious and expect inflation to rise - one day possibly sharply. I would concede that inflation has been lower than I would have expected given the amount that central bankers have printed. But I refuse to believe money printing can be painless.
100.73p
