Fund Objective

The Fund aims to achieve above average capital growth.

View on Past Performance

In July, stock selection made a strong contribution to returns. Our underweight exposure to market sensitive banks (investment banks in general) and our overweight in private banks and asset gatherers added significantvalue. Less helpful was our favouring of Nobel Biocare, which slipped back after the departure of its CEO. Staffing stocks also suffered as investors fretted about slowing growth. We trimmed our positions, although we remain positive about their valuations.At the sector level, we were hurt by our overweighting of basic resources and construction. Our zero weighting of paper was nevertheless helpful, as was our overweighting of healthcare and cash.During the month we purchased Fresenius, following weak performance and undue concerns about changes in US regulations, and in anticipation of good earnings. Other additions included Lanxess, which has been a very poor performer but yet the company continues to deliver and its valuation is extremely cheap; and supermarket Carrefour, as we anticipate inflation returning after the end of a price war in France.

Future Expectations

Although the market has sold off, opportunities to add value as a stock picker remain. While we are wary of certain stocks, we believe that the fundamentals remain good for equities once the confusion settles.

Fund Details