Fund Objective

Aims to achieve an attractive level of income combined with capital growth.

View on Past Performance

Recession fears and falling commodity prices weighed on sentiment in October, as UK equities posted another month of losses. The FTSE All Share Index closed 12% lower, with industrial and financial stocks among the top losers. The Bank of England cut interest rates by 0.5% as part of a coordinated global response to the credit crisis. It also boosted bank deposit guarantees, unveiled a £50bn rescue package, offered up to £200bn in short-term loans and proposed to take stakes in three banks.Latest data showed the economy was edging towards recession: third-quarter GDP shrank by 0.5%, the first contraction in 16 years. Manufacturing output declined, while retail sales cooled as unemployment rose. Housing prices remained weak. The inflation outlook was mixed as producer prices eased but consumer prices rose faster than expected in September.We sold Kesa Electricals and Premier Foods to reinvest the capital in better opportunities elsewhere. Against this, we topped up Persimmon and Rolls Royce on valuation grounds.

Fund Details