Fund Objective

The Fund aims to achieve a high level of monthly income with prospects for capital growth.

View on Past Performance

The collapse of Lehman Brothers precipitated a new and dramatic phase in the credit crunch and the FTSE All- Share Index fell by 13.2% in September. Markets around the world experienced extraordinary levels of volatility and suffered sharp losses as the financial system came under severe pressure.Good performances from De La Rue and Tesco were offset by poor performances from New World Resources and Lloyds TSB. We continue to focus on stocks with relatively limited sensitivity to the economic cycle and which offer high and growing yields on reasonable valuations.However, for the third month running we bought cyclical stocks that offered excellent value. We also increased our position in solid, defensive holdings. We added to HSBC, which offers a 7% yield and is possibly the best capitalised bank in the world.

Future Expectations

Market sentiment deteriorated significantly following the demise of Lehman Brothers. However, shares offer good value and the prospect of falling interest rates and commodity prices, as well as government efforts to underpin the banking system, could bolster investor sentiment in the longer run.

Fund Details