Fund Objective

The Fund aims to achieve above average capital growth.

View on Past Performance

Sector allocation added to fund performance in July. Among the top performing sectors was industrials, were the fund targets an overweight position. The underweight position in financials was also helpful as this area of the market generated particularly poor returns.The scale of the underweight in financials was extended, as holdings in Moody's and Goldman Sachs were substantially reduced. Avon Products was added to the portfolio, as we believe the company is undervalued relative to its growth rate.The fund benefited from holdings in Crocs, the maker of fashionable resin clogs, Apple Computer, which continues to deliver exceptional earnings growth and budget mobile telecoms provider Leap Wireless, which continues to win market share from the big national providers.

Future Expectations

Economic and profit growth in the US are slowing and this remains the key risk to the market over the next 12 months. However, we expect both to be reasonable and, given attractive valuations, significant free cash flow support and ample leveraged buy out and acquisition activity, solid returns are likely to be made from the market as a whole. In particular we see attractive opportunities to invest in conservatively valued growth businesses.

Fund Details