At the moment we have a slight value bias. The larger investments currently held are dominated (on an absolute basis) by yield stocks and certain contrarian value ideas (such as Vodafone and BT). Telecoms exhibit very attractive cashflow characteristics with scope for further substantial cash returns to shareholders. BT continues to trade well and still looks attractive on dividend and cash flow characteristics.HSBC shares have been held back with other banking shares due to worries over sub-prime mortgages and weak bond markets. The company is well diversified with leading positions across the globe.In the Media sector, valuations are still attractive and management are becoming more focused on shareholder value. Last year the fund bought 121 Media, a company focused on providing a broadband advertising platform for Iinternet Service Providers. The company, now renamed Phorm, has increased in value by 10 times our initial investment.Software offers attractive growth with demand growing in many parts of the continent as well as the UK. The sector is now supported by strong dividend generation. Many companies are exposed to the rapidly growing 'Business Process Outsourcing' sector.
