Fund Objective

Aims to maximise total return.

View on Past Performance

Over the summer months poise seemed to be returning to markets. The risks to the financial system seemed well understood and although there were obvious areas of real financial distress in the corporate sector, it was usually directly associated with the excesses of the recent past.However, September provided a rude awakening as it suddenly became apparent that the whole US financial system might be teetering on the edge of total collapse.In a period unparalleled in recent financial history institutions collapsed, were bailed out by the US government or - like Merrill Lynch - forced into the arms of apparently stronger institutions.

Future Expectations

Over the weeks ahead, world markets will undoubtedly remain volatile until the scale and certainty of the US Government's rescue of the financial system becomes apparent. At that point attention will turn to the impact the turmoil has on real economic behaviour.Selectively, there are secure, high quality companies operating in areas that may be affected by the downturn but are not threatened by it. Their current valuation, on anything other than a very short-term perspective, may be unnecessarily cautious and provides the opportunity to build performance for the future.

Fund Details