Fund Objective

To provide long-term capital growth from a portfolio primarily invested in UK equities.

Future Expectations

After suffering heavy losses in recent months, the UK stock market has reached a level that looks oversold on a fundamental basis. The historic dividend yield of the FTSE All Share recently moved higher than gilt yields, and the trailing price to earnings ratio is at a similar level to the last downturn in 2003.This suggests that the stock market is nearing a bottom, but we remain cautious. Profi t forecasts are still too high in many cases, several banks will not be paying dividends and forced equity selling to meet redemptions is prevalent.We therefore continue to hold a signifi cant cash balance and maintain the same cautious investment strategy. This is to put money to work selectively with a focus on high quality businesses that have the potential to emerge from the downturn in a stronger position. These are leading franchises with strong balance sheets, attractive valuations, high quality management teams and good cash fl ow generation.

Fund Details