Fund Objective

Investment in a portfolio of equities and a total return swap, designed to exchange the performance of the equity portfolio for the performance of the GAM Composite Absolute Return GBP Index. The index is designed to ensure diversification. Its components may include a range of funds diversified across asset classes including equity long only, equity long/short, alternative investments, fixed income and credit as well as other components.

View on Past Performance

Equities posted only slight gains during May as the rise in oil prices prompted markets to focus almost exclusively on rising inflation and the perceived need for tighter monetary policy. Until recently, the rise in commodities was associated with strong demand in many emerging markets but now there is an increasing risk that economic capacity in many of these countries has been reached and more must be done domestically to curb inflation.

Future Expectations

We believe that the tug of war between growth and inflation will ultimately be won by the former; economic data from the US, UK and some Asian countries already point to weaker activity and, by implication, an eventual easing of price pressures.

Fund Details