Fund Objective

To achieve a positive capital return over the long term, regardless of market conditions.

View on Past Performance

Bond yields fell sharply throughout August. Inflationary fears receded as commodity prices continued to fall. Consequently the Fund benefited modestly from a small long interest rate position expressed through short sterling contracts. Further dislocation within credit markets caused by growing fears over economic growth caused corporate bonds to underperform.However, very defensive positioning in very short dated high quality bonds and floating rate notes ensured that the impact to the Fund was minimal. The foreign exchange strategy provided the majority of the outperformance, whereby long US dollar versus sterling, Australian and New Zealand dollars proved to be particularly successful.

Fund Details