Fund Objective

To provide long-term capital growth. This will be achieved through direct or indirect investment in a diversified portfolio of securities issued by companies quoted or operating primarily in Europe (including the UK). These will be mainly small or medium sized companies that are perceived to have particular expertise in their markets and above average growth potential.

View on Past Performance

September was undoubtedly one of the most tumultuous months in recent memory. Investment banks failed; leading lending institutions on both sides of the Atlantic had to be rescued by governments; and the US Treasury's historic $700 billion financial bail-out package was defeated in Congress. Fears over the eurozone economies also intensified. Overall, the MSCI European Smaller Companies index plunged by around 16.6%.The Fund outperformed the benchmark in September. The main impact came from Portuguese retailer, Jeronimo Martins, which benefited from approval to purchase stores in Poland. Another key stock this month was Tui Travel which remains competitive in a market where further casualties seem to be inevitable.

Future Expectations

During this challenging time, we will continue to utilise our fundamental, repeatable investment process to ensure the portfolio only carries our highest conviction stock ideas.

Fund Details