During the month the Trust returned -12.7%, while the Index returned -11.9%. The exceptional volatility which characterised the previous month was even more of a feature in October. The FTSE All-Share Index fell sharply and interest rates were cut around the world in an attempt to head off a severe economic recession. Commodity prices responded to economic growth worries, with the oil price falling from US$100 a barrel to around US$60.The Baring Equity Income Trust proved relatively resilient, outperforming the falling market in October. The Trust performed relatively well due to its cautious positioning across the major sectors. With the exception of the oil & gas and pharmaceutical sectors, every sector posted negative returns in October.Defensive stocks with earnings that are less reliant on the economy, such as food and beverage manufacturers, mobile telecoms and nonlife insurers outperformed, while the industrial, basic materials and banking sectors sold off articularly sharply. The stocks that beat the market in October tended to be large, secure, low risk companies that pay large dividends, such as BP, Royal Dutch Shell, Astrazeneca and Diageo.The UK government's support of several UK banks will inevitably curtail their ability to pay dividends. For this reason, the Trust's exposure to this area has been reduced. After recent market declines, greater value is now emerging as share prices have moved to reflect the deteriorating world economic outlook.At the time of writing, the portfolio contains a balance of value and growth stocks, with the aim of protecting investments whilst being able to benefit should market conditions become more buoyant.