UK equities fell on concerns about the economic outlook and the turmoil in the financial sector. However, basic materials, oil & gas and industrials were the weaker performers, leading other sectors down. Stocks in the utilities sector were the most resilient over the month, falling by just 1%, versus a fall of 13.0% for the FTSE 100 and a return of -13.4% for the FT All-Share.The Fund is invested in stocks which are considered low cost versus the peers and which have strong earnings momentum qualities.
The corporate environment remains challenging across most sectors as economic concerns increase, both globally and for the UK economy. The current lack of confidence in the financial sector is a significant issue however government intervention should help to stabilise sentiment. Markets are likely to remain volatile while the level of economic and corporate earnings uncertainty is so high.