Fund Objective

To provide long term capital growth.

View on Past Performance

The third quarter was another challenging one for global equity markets. Governments sought to ease the effects of the credit crisis with emergency bank bail-outs and liquidity injections and a ban on the shortselling of financials stocks was initiated. The portfolio produced a negative return over the quarter.Returns were in line with the competition although some stocks in the consumer sector performed better due to their defensive characteristics. Emerging markets were the worst affected region over the quarter, despite efforts by Russia to support its sinking stock market. Within the fund, our stocks in emerging markets were not materially affected by the poor sentiment and performed in line with other regions.Stocks benefiting from aspiration and demographic driven trends were the main detractors from performance over the quarter, with health and wellness stocks barely falling. Specifically, our holdings in Esprit, AirMedia and Hugo Boss were the most significant detractors, whilst our holdings in Focus Media and Kraft Foods contributed positively.

Future Expectations

Equity market valuations now look attractive; however, uncertainty over the outlook for earnings and dividends may contribute to further volatility.

Fund Details