As the domestic European economy starts to slow in reaction to the credit crisis and higher infl ation, the challenges to investment remain formidable but manageable. At the global level, there are no signs of any backslide into protectionism. Provided that world trade continues to increase, productivity gains should ensure wealth creation.As low-cost developing countries like India and China enter the global trading arena we can expect to witness some profound changes. Billions of people have been enfranchised into the world economy for the benefi t of all. As the IMF says, the effective global workforce 'has risen fourfold over the past two decades'.The Fund continues to seek European-based, globally-operating businesses that can gain from the growing integration of business opportunities brought about by increasing globalisation. Recent results from our holdings remain encouraging. We continue to invest in companies which are 'winners' throughout the business cycle.Current economic conditions provide them with a chance to consolidate their positions among weaker rivals. Our holdings have low levels of debt and strong business models which help mitigate the impact of slower growth. Their exposure to faster-growing economies around the world should help to sustain their profi tability.
3,196.38p
