Fund Objective

To achieve capital growth over the medium to long term.

View on Past Performance

October was characterised by sharp fluctuations in all equity, bond, currency and commodity markets. Increased evidence emerged across the world of slowing levels of economic activity, and stress arising from the fallout of the credit crisis. The IMF was called in to provide support and advice to Hungary, Iceland, Ukraine and Pakistan. The US Federal Reserve also provided extensive lines of dollars to a number of countries. Interest rates were reduced in the USA and UK.Expectations are high for a further reduction in short term interest rates. The UK government announced plans to inject £37 billion of additional capital into the UK banks through the issue of ordinary and preference shares. Toward the month end Barclays Bank announced a £ 7 billion funding package, and Centrica launched a £2.2 billion rights issue. During the month the FTSE All share Index returned -11.9%.The FTSE 100 returned -10.5%, outpacing both the FTSE-250 and FTSE Small Cap indices which each fell approximately 20%. The best performing sectors were oil & gas and healthcare. The bank, life insurance and mining sectors were among the weakest sectors, reflecting the global macro trends.The Fund performed significantly better than its ethically screened universe of permissible stocks, but in a market where pharmaceutical and oil stocks (both areas excluded by the Fund's ethical criteria) performed well, this was a result behind the broader market.

Future Expectations

Economic conditions remain extremely difficult, and the Fund remains defensively positioned. As such the Fund is underweight in heavily indebted companies and businesses reliant on discretionary spending.

Fund Details