Fund Objective

Provide an income and some potential for capital growth.

View on Past Performance

UK and European commercial property markets have been hit by a significant slowdown during the last six months. Investor demand for property has decreased and prices are falling in several areas. There has been some significant volatility in UK and overseas equities, with markets in the major countries suffering one of the most turbulent periods in recent memory.

Future Expectations

Government bonds continue to receive support from the volatility that has plagued equity markets. The problems in the US financial sector have continued to widen, as more investment banks reported subprime mortgage-related writedowns (reductions in the recorded values of these assets) and the effects of the "credit crunch"(a shortage of available loans) have begun to be felt in the wider economy. Investors are likely to continue to switch into government bonds from riskier assets such as equities and corporate bonds

Fund Details