Fund Objective

The objective of the fund is to provide capital appreciation.

View on Past Performance

Volatility continued to plague stock exchanges worldwide. Stocks in almost every market sector fell in reaction to these recent developments. During the quarter, the fund had relative outperformance in financials, consumer discretionary, healthcare, telecommunications and utilities sectors.Financials were the strongest contributor, mainly due to select investments in fundamentally-strong small banks, many of which announced solid second quarter earnings. Three out of four British homebuilder holdings rebounded into positive territory. Utilities and telecom proved strong defensive plays, as investors sought stocks with steady cash flows.Softening industrial construction in European markets caused weakness in the industrial sector. Materials declined due to concerns about the weakening global economy.

Future Expectations

In a credit-constrained environment, companies with strong cash flow and low debt should be in a position to not only survive the current downturn, but prosper during a recovery.

Fund Details