Fund Objective

There is no fund objective available from this fund manager.

View on Past Performance

The fund, however, substantially outperformed its benchmark. An overweight position in industrial engineering contributed the most to performance, while an overweight position in oil equipment, services and distribution and stock selection in the general retailers sectors also benefited returns.Stock selection in the general financial sector detracted the most. At the stock level, holding Wellstream Holdings boosted returns the most. The oil and gas pipeline manufacturer's forecast for 2007 earnings exceeded expectations, due to contract gains and capacity utilisation in its Brazilian and UK plants. The company also won a GBP 100 million order from BHP Billiton.Not holding Xansa detracted the most. The company's share price soared after it agreed to be bought by French computer services company Groupe Steria SCA for GBP 450 million. An overweight position in small investment bank ACP Capital was also detrimental after the market became concerned over the growth prospects for the stock.However, holding Axon Group was beneficial to relative returns after the technology company, which specialises in business advisory for companies using SAP systems, released better than expected interim results and a positive outlook statement.

Future Expectations

The attractively valued UK market should remain supported by solid economic growth and hopes for interest rate cuts, while reasonable global demand will fuel export growth.

Fund Details