Fund Objective

The Trust is designed to provide investors with a reasonable level of income, together with the prospect of growth in both income and capital.

View on Past Performance

This is the ninety-fifth report to be made by the Managers of the British Life Unit Trust, and covers the period 5 April 2007 to 5 October 2007. During the period under review the unit price fell by 0.3%, compared with a rise of 1.7% in the All-Share Index.The distribution of income for the six-month period was 8.908p net per unit. The total return on the British Life Unit Trust over the period 5 April 2007 to 5 October 2007 was 1.2% (comprising -0.3% capital movement and +1.5 dividend yield), compared with a change of +3.3% in the All-Share Total Return Index.

Future Expectations

The outlook for the second half of the Trust's year cannot be easily assessed. There is an ongoing difficulty in identifying market sectors and stocks that will outperform the benchmarks. In genearl, we would look to remain overweighted in resources companies, and avoid consumer-related stocks.Much will depend on the direction of interest rates and the US Dollar exchange rate over the next six months. If the Federal Reserve continues to cut rates as is widely expected, then the Dollar may continue to weaken, putting further pressure on large UK companies with substantial Dollar-based assets.Overall, therefore, our strategy will be focus on domestic UK companies, with moderate or low borrowings, and little exposure to discretionary consumer spending.

Fund Details