Fund Objective

To produce a higher yield than is generally attainable from an equity based trust investing mainly in the UK and to make distributions on a quarterly basis.

View on Past Performance

August was a better month for the UK market - particularly in the latter stages as there were signs that the US economy was performing better than expected. Furthermore, weakness in sterling boosted overseas earnings for UK based investors. The fund returned 4.4% which was slightly behind its sector average. In particular, its defensive holdings (such as water and waste management company Pennon) lagged the market recovery.

Future Expectations

We still expect the market to remain within its recent broad trading range as significant progress seems unlikely as earnings downgrades intensify. The fund remains very stock specific with a continued bias towards blue chip and relatively defensive names. It will also selectively hold industrial stocks with a growth bias such as oil services, and companies with exposure to overseas earnings. We remain cautious on UK consumer exposure.

Fund Details