Fund Objective

The investment objective of the Fund is to maximise the total return to unitholders with an equal emphasis on the generation of income and on capital growth.

View on Past Performance

The crisis in the US and UK financial sectors has triggered a remarkable level of government intervention. In the long term, this may well prove inflationary, although offset in the short term by the severe contraction in private sector credit. Much will depend on how a return to 'normality' is achieved.US consumer prices are rising more quickly than at any time since 1991, and underlying inflation is still ominously high in the Eurozone and UK. However commodity prices have begun to weaken recently and there is no indication of any acceleration in the level of pay settlements. It is also very encouraging that inflation in China appears to have dropped steeply.

Future Expectations

Most economies appear set for a period of slower growth. But there is so far little sign of this relieving inflationary pressures. As a result some degree of stagflation looks likely. At this stage it is difficult to be sure whether inflation will accelerate thereafter or whether a deeper and more enduring recession will dissipate the price pressures.

Fund Details