Fund Objective

To provide capital growth over the long term.The Fund utilises our global sector expertise, coupled with our specialist regional analysis to provide a portfolio that contains our best stock ideas,globally.

View on Past Performance

The third quarter was another challenging one for global financial markets. In an attempt to restore stability, central banks injected USD 180 billion of liquidity into the global banking system, the US Treasury proposed a USD 700 billion plan to remove toxic and illiquid assets from the balance sheets of financial institutions, and a ban on the shortselling of financials stocks was initiated.Despite the negative sentiment surrounding the US financial system, US banks was one of the better performing sectors. Emerging markets were the worst affected region, despite efforts by Russia to support its sinking stock market. On a sector basis, energy and materials were the worse hit sectors while more defensive sectors such as healthcare and consumer staples fared better.

Future Expectations

We remain in the midst of the global financial crisis; however, we are now seeing a restructuring of bank balance sheets globally, supported by central banks' liquidity injections. The injection of cash to take on toxic and illiquid assets does not necessarily address the problem of solvency, which needs to improve for banks to extend new credit.Economic news continues to have an adverse effect with many countries on the verge of recession. We expect the global economic downturn to continue, and over the coming months we anticipate interest rate cuts in Europe and the UK. We remain cautious on corporate earnings, although valuations look attractive.

Fund Details