Fund Objective

To produce a higher than average yield combined with long term growth of income and capital.

View on Past Performance

There were two main new purchases of Anglo American and Marks & Spencer. The former was bought after a large fall, when its prospective yield exceeded 6%. The latter was bought on the high yield and hopes for a benefit from interest rate cuts. The holdings of Royal Bank of Scotland and Tomkins were sold.In a very weak market the Fund suffered from its multi cap approach. The mid and small cap indices lagged the FTSE 100 by nearly 10%. A profit warning by Raymarine was damaging.

Future Expectations

The world economy has slowed dramatically, meaning that earnings forecasts are too high. This will lead to dividend cuts in certain stocks. The world's central banks are responding, giving support to markets.

Fund Details