Fund Objective

To provide income and capital growth over the long term .The Fund may also invest in non-Sterling denominated fixed interest securities which may be hedged back to Sterling.

View on Past Performance

Attention in the financial markets shifted away from the continuing credit crisis to the worsening outlook for inflation and the unprecedented surge in commodity prices. Credit spreads tightened rapidly at the beginning of the quarter, with a degree of normalisation returning to markets. However, sentiment shifted once more due to a combination of the deteriorating macroeconomic outlook, record commodity prices and worsening inflation, led credit spreads to drift wider again.

Future Expectations

While we have seen a degree of normalisation return to credit markets over the past quarter, we remain cautious over the outlook for the next few months. There do not appear to be many catalysts that will improve company fundamentals or help the consumer in the near term.The outlook for the macroeconomic environment is also fairly bleak. High energy and food prices mean that inflation will continue to remain significantly above target. This continues to tie the Bank of England's hands with regard to monetary policy, as they are unlikely to be able to cut interest rates in the near future.

Fund Details