Fund Objective

The trust's objective is to invest in equity shares of growth businesses that provide access, content, infrastructure, and services for the internet and are positioned to benefit from the growth of the internet with a view to providing income and capital growth.

View on Past Performance

During the quarter, the Lincoln Internet Tollkeeper Trust registered a return of -18.57% compared to -13.94% for the benchmark NASDAQ Composite Index. Goldman's continued their strategy of selective investment in large, mid and small cap companies and taking profits on valuation criteria. Online DVD rental business Netflix contributed to performance, on strong subscriber data and anticipation of growth after the major studios' announced support for Sony's Bluray DVD format.Detractors included semiconductor maker FormFactor and audio equipment company Harman as well as Google. The Trust exited Yahoo after a bid from Microsoft.

Future Expectations

Exacerbated by the plight of Bear Stearns, the uncertain outlook for global stock markets may continue into mid-2008 and beyond as credit crunch and inflation worries persist. Substantially lower US interest rates and a weak dollar may, however, mitigate the effects of the credit crunch and assist USbased exporters. Consumer behaviour is difficult to forecast because inflationary pressures in key global economies may affect spending power,but new export markets may help some technology companies to grow their revenues.

Fund Details