Fund Objective

To achieve above average growth mainly through capital appreciation, concentrating on well managed growth companies in the USA and Canada, with the provision to invest up to 15% outside North America.

View on Past Performance

August saw a notable rise in the US dollar which contributed to significant equity gains. The deterioration of international growth prospects saw investors turning to the US as a safe haven, which drove US stocks higher, with domestically orientated stocks faring best. The fund returned 8.2% which was behind its sector average.* Our bias towards large internationally exposed growth stocks including materials, industrial and technology hindered performance.

Future Expectations

Earnings forecasts continue to fall and are likely to continue to move lower for the remainder of 2008. For a sustained recovery in the equity market, we are looking for signs of recovery in the housing market and slowing deterioration in the labour market. A new investment theme of a stronger dollar and improved relative growth from the US is emerging. We are directing incremental funds into more domestically orientated stocks that have cyclical upside, but strong balance sheet support.

Fund Details