Fund Objective

To maximise long term capital growth opportunities by investing in any economic sector in any geographic area through investments as permitted from time to time for a fund of funds but mainly those funds managed by Resolution Fund Managers Limited.

View on Past Performance

Equities rallied strongly during the month with returns for UK investors enhanced by sterling weakness. Bonds too continued their recovery as fears of inflationary pressures abated. The fund returned 3.0% which was ahead of its sector average.* Performance was boosted by the fund's significant overweight exposure to the UK which was the best performer among the major markets. An underweight exposure to the Far East, which suffered from risk aversion, was also helpful.Although the US GDP numbers at the month-end indicated a pleasantly surprising 3.3% annualised growth rate, most of this came from net exports. Therefore our concerns over consumer demand, which accounts for over 60% of GDP, remain. The fund's tactical positions are above-benchmark allocations to the UK and Europe based primarily on grounds of valuation. This is sourced from underweight allocations to the Far East, US and Japan.

Fund Details