Fund Objective

To obtain a yield higher than that generally available from investment in global equities whilst, over the longer term, achieving growth in both capital and income. The Fund will invest principally in equities worldwide, but may also invest in convertibles and fixed and floating rate debt instruments.

View on Past Performance

Following the announcement of their merger, we have bought Lloyds TSB and added to what was a small holding in HBOS. The government is only allowing this merger because of the current circumstances in financial markets. We think the combined group can be very profitable in the long run.

Future Expectations

The economic outlook is poor and there is great nervousness about the health of the financial system. Governments are taking action to bolster confidence, but stockmarkets continue to be very troubled.We expect the Bank of England to start cutting interest rates aggressively. Commodity prices have slumped and the inflation rate will drop rapidly over the next year.

Fund Details