Fund Objective

To maximise the total return.

View on Past Performance

Equity markets were subdued in June in the face of further fall-out from the sub-prime mortgage correction in the USA, expectations of further UK interest rate rises, continued high levels of IPOs and reduced takeover activity from the recent frenzy.The UK market saw considerable rotation out of property and building-related stocks including the mortgage banks. The beneficiaries were principally the major oil stocks and mining shares, where the fund benefited from it's holding in Rio and Xstrata. Vodafone also performed well, as did Experian. Generally the fund avoided most of the heavy losers, the poorest performer being Tesco following a muted trading statement.We added to WPP and Carnival during the month and sold all of the fund's holdings in Balfour Beatty and Derwent. We feel that the best returns for PFI investment may now be behind us and we expect some major programmes such as hospital building to be coming to an end. We also finished selling Friends Provident.

Fund Details