To achieve maximum capital growth in sterling terms by investing primarily in securities of quoted companies on a global basis, which are considered undervalued.There is no restriction on the economic sectors in which investments may be made.
World equity markets enjoyed a strong rally in August, partially helped by the weakness of sterling. Although economic data remains indicative of slower growth prospects, there was suggestion that investors were willing to buy into sectors that had become oversold. The fund outperformed its sector average over the month returning 6.9%, a top quartile performance. It benefited from strong gains in cyclical stocks including Securitas and Logica and from a general overweight in the UK market.Although we regard global equities as undervalued relative to bonds and cash, some profit-taking could occur in the short term given the recent recovery in share prices. We retain our relative value process which has been recovering since mid 2008. Solid balance sheets, low valuations and high sustainable dividend yields feature prominently in the fund portfolio.
128.09p
