Fund Objective

The fund's investment objective is to achieve a relatively high level of income.

View on Past Performance

The fund outperformed its benchmark over the quarter. An exposure to the telecommunications and utilities sectors bolstered returns, as these sectors remained resilient to the global economic slowdown. For example, an overweight in Hungarian company Invitel and Germany-based E.ON added to relative returns.An exposure to emerging-market names, such as TransCapitalBank and oil company Gazprom, both in Russia, enhanced performance. These economies continued to hold up well in the face of the persistent turmoil in credit markets that is impacting developed markets. An underweight in selected holdings, such as General Motors, in the automobile sector also proved beneficial. The sector performed poorly amid declining sales and reduced earnings growth.Moreover, holding bonds less sensitive than the benchmark to interest rate changes boosted returns, following a rise in bond yields. Conversely, an underweight in banks detracted, as the sector stabilised over the quarter and fared well.

Fund Details