Fund Objective

To provide long-term growth through investment mainly in UK equities. These tend to be leading UK companies and may have significant overseas earnings. Smaller companies may also be included.

View on Past Performance

The third quarter of 2008 witnessed considerable volatility. The storm that shook global financial markets in September was felt hard in the UK, where banks make up a significant portion of the index.The crisis engulfing the country's biggest mortgage lender, HBOS, raised fears of contagion to the wider economy, although investors found reassurance in the government's swift facilitation of a rescue by Lloyds TSB and a massive injection of liquidity by the monetary authorities.Activity was quite low over the period but we sold Booker, the cash and carry group after strong relative performance. We also took the opportunity to sell our holding in Thus, the UK-focussed business telecommunications group after a bid from Cable & Wireless.

Future Expectations

While market conditions are likely to remain turbulent in the short term, the indiscriminate nature of the market sell-off should present a good number of sound companies trading at attractive valuations. We remain cautious in the current conditions but have allowed the Fund's cash position to increase and will take advantage of opportunities as they present themselves.

Fund Details