Fund Objective

The Fund focuses on providing long-term capital growth.

View on Past Performance

The third quarter of 2008 saw continued volatility and the global financial crisis worsened rapidly. Markets reacted strongly to financial news, of which there was plenty. Government intervention in the US, UK and Europe was a key driver in market movements and this theme looks set to continue.Strategy remained broadly unchanged as we continued to focus on identifying good quality zero dividend preference shares and other securities with a similar risk profile and return characteristics, to achieve consistent long-term capital growth.Investment activity was relatively light over the period under review. We maintained our risk averse stance, particularly against what is an increasingly challenging backdrop. Falling equity prices has reduced the level of asset cover on zero dividend preference shares. When the asset cover moves below 1x the zero in question becomes highly sensitive to the level of equity prices and therefore begins to behave more like an equity share.

Fund Details