Fund Objective

To achieve capital growth by investing principally in a concentrated portfolio of UK equities.

View on Past Performance

After four consecutive months of market falls the FTSE All Share rose by a welcome 5.0% during August. Volatility remained high though - for example, the two cornerstones of the US mortgage market, Freddie Mac and Fannie Mae, were once again subject to a lack of market confidence. The fund returned 3.0% which was behind its sector average.In particular - oil rig fabricator Lamprell saw some profit taking given the weakness in the oil price; while Standard Chartered saw its shares weaker as a prominent analyst downgraded their opinion.

Future Expectations

Overall, the caution we have held on the prospects for the UK economy and for sterling continue. The deleveraging process that the banks are going through has a long way to run, hence mortgage availability will remain constrained for some time to come. This is regardless of what happens to interest rates and special measures to help the housing market.

Fund Details