Fund Objective

The aim of the Fund is to achieve capital growth.

View on Past Performance

Stock selection - mainly within consumer services and banks - made a strong contribution to fund performance in July. Among the notable winners were the Dutch microchip manufacturer ASML, whose bullish outlook was welcomed by the market, and Greek bank EFG Eurobank Ergasiaswhich rebounded sharply after a lacklustre June. Budget airline Ryanair, which was rumoured to be taking a stake in its rival Air Berlin, and Dutch food producer Numico also added value.Disappointments included the steel tube manufacturer Vallourec, which slipped back after announcing it would sell two units to Arcelor Mittal. A leading broker downgraded the stock and suggested that production utilization at the company's US facilities are 'depressed'.

Future Expectations

We retain our overweight in economy sensitive areas such as chemicals, steel, construction, industrials and engineers, even though expectations for these sectors are high. Greater cost pressures and supply bottlenecks make it even more important to be invested in well managed companies operating from a position of strength over both customers and suppliers.

Fund Details