Fund Objective

To achieve long-term capital growth.

View on Past Performance

The best performing industries in the MSCI Europe Small Cap Index were Energy, Telecommunication Services and Utilities. The worst performing sectors were Consumer Durables & Apparel, Real Estate and Retailing.

Future Expectations

Continental European equity markets look set to remain volatile as economic growth slows, inflation fears persist and the European Central Bank continues to take a hard line approach against rising prices.While earnings growth expectations for 2008 have fallen, estimates for 2009 have risen. This may create another headwind for share prices. After a significant decline in equities over the quarter, an increasing amount of value is appearing at the stock specific level.Our aim is to continue to identify companies with sustainably high or improving returns that are trading at attractive valuations.

Fund Details