Fund Objective

The Fund aims to achieve capital growth through investment in quoted securities of companies operating in the countries in or bordering the Pacific Ocean (except Japan).

View on Past Performance

The MSCI Asia Pacific ex-Japan Index fell by 4.86% in sterling terms during Q208. Markets rebounded in April which was driven by a reduction in risk premium rather than any significant improvement in market fundamentals. The soft landing argument took a beating in the months of May and June, as deteriorating economic circumstances, further weakness in US housing, the erosion of corporate profits, rising inflation and record high oil prices all combined to undermine market confidence.The month of June was a particularly bad month for equity investors. High volatility over the last few months has created financial market instability and resulted in significant fear for the equity market. Volatility has spread across most sectors and virtually all markets. The significant rise in inflation within the region and weakening economic growth in the US which is spreading to the Eurozone and Asia are risks.The difference between "consensus" top down and bottom up earnings estimates has also become more pronounced. Further earnings downgrades seem inevitable.

Fund Details