Fund Objective

The objective of the Sub_fund is to achieve a reasonable level of income combined with capital growth from a portfolio of securities primarily made up of equity investmetns listed in the United Kingdom. The Sub-fund will not be restricted in respect of choice of investments by company size or industry, and up to a maximum of 20% of the Sub-fund may be invested in equities listed outside the United Kingdom and in other securities,

View on Past Performance

The best performing industries in the FTSE All-Share Index were Forestry & Paper, Automobiles & Parts and Nonlife Insurance. The worst performing industries were Industrial Metals, Chemicals and General Financial.

Future Expectations

The UK economy weakened over the summer and concerns have become heightened that we may move into a recession later in the year. However, employment remains robust, and with prices of a number of commodities retreating significantly, this may allow the Bank of England enough room with projected inflation prospects to consider cutting interest rates in Q4 2008.Our strategy remains to focus on company valuations rather than share prices, and we see the market gradually shifting capital out of the resource-based sectors into more interest rate-sensitive areas of the stock market as expectations for the direction of interest rate movements become clearer.

Fund Details