Fund Objective

The Fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from US Smaller companies equity markets ('“the US'”).

View on Past Performance

Over the last three months, the Fund outperformed its sector average, ranking in the fi rst quartile of its peer group. Falls in the price of crude oil have been helping to support the early cycle trade, namely the preference for early cyclical stocks. With a weakening of oil prices, we have been making prudent purchases of fi nancials and consumer discretionary stocks, which now represent neutral positioning compared with the benchmark.(Strong balance sheets and solid growth prospects were key in making these purchases.) We have also bought into some technology stocks on weakness, anticipating that some could enjoy a good second half of 2008.

Future Expectations

In our view, businesses will want to upgrade equipment to take advantage of seasonal technology spending habits associated with the 'use it or lose' budget process, plus the government fi scal stimulus package. At the same time, the impact of the expanding credit crisis and the dollar's appreciation have to be taken into account when considering the negative consequences on cyclical stocks.

Fund Details