Fund Objective

To provide above average total returns over the long term by investing globally in transferable securities of companies that the ACD considers offer excellent future growth prospects. The Fund may also invest in money market instruments, cash and near cash.

View on Past Performance

September was a poor month for small cap equities in Europe as the financial crisis affecting the world's banks and insurance companies continued. In such a market investors are concerned with the likely spill-over affect of the crisis into the real economy - this is leading to significant declines in share prices.Most companies held in the Fund have reported stable or growing profits in the first half of 2008, however managements we meet are clearly concerned that the next 12-18 months are going to be a lot more difficult due to an economic slowdown which is affecting Europe.

Future Expectations

We have not made too many changes to the portfolio as we believe that the companies held can trade through more difficult times. Aktiv Kapital, the Norwegian debt collection group, is an example of a company held which we believe can prosper from an economic slowdown.

Fund Details