Fund Objective

The Fund aims to achieve long term capital growth.

View on Past Performance

The FTSE World index was broadly unchanged over the quarter, as euphoria over central bank actions to boost liquidity in the global financial system gave way to doubts over their efficacy. Reaction to the latest US interest rate cut was underwhelming, while hopes for further regional and US interest rate cuts were tempered as inflation data strengthened. The FTSE World index rose 0.4% in sterling, total return terms.Within the portfolio, we initiated a position in Nokia, as demand for its products should remain strong while other areas of the tech sector could be vulnerable to cutbacks in corporate spending if the global economy weakens significantly. We initiated a position in global entertainment firm Viacom (formerly CBS) where various divisions (including MTV and Paramount) have begun to show signs of improved performance.

Future Expectations

Elsewhere, we initiated an exposure to low-risk banking operation New York Community Bancorp, which lends to owners of rent-controlled buildings, and should deliver significant margins, without being exposed to the sub-prime issues besetting its counterparts.

Fund Details