Fund Objective

The objective of the Fund is to achieve long-term capital growth.

View on Past Performance

Growth in Western economies remains under pressure and is slowing. This has reduced demand for oil and helped ease infl ationary pressures. As lenders of last resort, central banks in the US, UK and Europe continue with a range of measures to help restore confi dence to the fi nancial system.For instance, the US Federal Reserve is making unsecured loans to companies and banks, while in the UK, the government is to inject capital into some high street banks, improve short-term liquidity and kick-start bank lending over longer periods.Banks continue to rebuild their balance sheets. However, the effects of tighter and more expensive lending practices have now fed through into the UK and European economies. These have slowed sharply. Growth in other parts of the world,particularly across Asia and the Far East, though slowing somewhat to refl ect lower US demand, remains at attractive levels.

Future Expectations

Market volatility will probably remain high for some time. The Fund remains invested in trusts with committed managers that have performed well over the long term. Because of the effect of gearing, these trusts should produce above average returns when market conditions stabilise.

Fund Details