Global equity markets endured a turbulent month, as turmoil in the US and UK banking industries reverberated around the globe. Key to the volatility was the Republican Party's last minute volte face as it voted against a $700bn rescue package for the US financial sector, amid accusations of 'bi-partisan poison', sending markets plummeting. Stocks did however rebound notably on the last day of the month, amid feverish speculation that the deal will be salvaged.Overall, the FTSE World index lost 10.0% in sterling, total return terms. We continued reducing the Fund's direct economic sensitivity amid concerns over a deepening global slowdown, which meant reducing our exposure to Trimble Navigation, plant engineer JGC Corp and French industrial group Alstom. We re-worked our financial positioning by buying into Zurich Financial Services, believing it will be a beneficiary of the turmoil at AIG as the latter's commercial clients seek greater security.Weincreased our US exposure, adding to Walgreen and Energizer, while we bought back into Home Depot believing the Fed's positive policy action should stimulate consumer demand. We also boosted the Fund's cash positioning in the light of the deteriorating market conditions.