Fund Objective

The Fund focuses on achieving an above average income with the prospect of capital growth.

View on Past Performance

Strategy remained focused on providing investors with long-term capital growth through an ethically screened portfolio investing predominantly in UK shares. September saw an acute worsening of the credit environment and market volatility was sustained and significant.Against this backdrop we continue to look to position the Fund defensively. We attempted to use volatility to buy into sound stocks at low valuations but did not lose sight of our long term investment picture.Activity in the Fund was relatively low but we did take the opportunity to buy Informa, Inchcape and Intercontinental Hotel. Within financials we bought Lloyds TSB. We sold Experian, the global credit information group.The Stewardship criteria prevent the Fund from holding mining stocks. This was beneficial over the month as relative performance was aided greatly by lack of exposure to Rio Tinto, Xstrata and Anglo American. Holdings in energy companies Scottish & Southern Energy and National Grid were significant contributors to performance.

Future Expectations

We think that at this point the market looks oversold but developments in global credit markets are pushing indices still lower. We expect a rally in the near future but a great deal depends on the level of intervention by national banks.

Fund Details