Fund Objective

The objective of the fund is to provide above average long term capital growth from a global portfolio. The fund will be able to invest in any transferable security in all recognised world financial markets. The income yield will be at best minimal.To meet these objectives, the fund may also invest, at the Manager's discretion, in other transferable securities, money market instruments, warrants, cash and near cash, deposits and units in collective investment schemes.

View on Past Performance

Global equity markets experienced perhaps the most tumultuous month in living memory in September. The shape of the financial services industry has changed beyond measure following the onslaught of recent weeks. Stockmarket falls continue to break records; credit markets remain in a seizure, and distressed investors and institutions are reducing their debt levels and exposure to risky assets. To coin former US Federal Reserve chairman Alan Greenspan, this is a "once in a century event".It is important for investors to have confidence about how the fund is positioned in this toxic environment.We have no exposure to US, UK or Asian banks where we expect massive re-capitalisations, shareholder dilution, and more problems stemming from counterparty risk.We hold no insurance, real estate, automotive companies and have minimal exposure to the retail sector, where the outlook remains extremely uncertain.Our exposure to commodity-related sectors such as oil services, industrial equipment and chemicals has been particularly painful over the past few months as commodity prices have collapsed in anticipation of a global recession. These companies benefit from rising capital expenditure from the energy and materials producers; industries which have under-invested in property, plant and equipment for decades.There is scant evidence at this point of project cancellations from large commodity producers with substantial balance sheets and cash generation, but we continue to maintain a watchful eye on our exposure.

Future Expectations

We are maintaining our investment process and style which seeks out undiscovered growth companies.As such,we will not be retreating into pure defensive investments such as pharmaceuticals, food producers and utilities. In the absence of high quality, high conviction growth ideas, we have allowed the liquidity in the fund to rise above 30%.This cash will bedeployed into existing holdings and new investments as the panic subsides, and rational fundamental analysis returns. Investors are unwilling to take anything on faith alone, but our investors should rest assured, neither are we.

Fund Details