Fund Objective

To achieve long term capital appreciation.

View on Past Performance

September saw the return of the trade buyer. Those European CEOs with cash to splash and a post summer swagger have returned from the beach with a will to deal. Iberdrola, Endesa, Aer Lingus and Scania have all received proposals of a more meaningful nature. Indeed, where capital markets have been slow to appreciate intrinsic value, cash rich corporates are quick to step in.Hence, for the Spanish construction groups, hungry for non-cyclical utility earnings, it seemed plain to buy deregulation in Spain. The pharmaceutical industry illustrates well the benefits of consolidation, where weak future pipelines advocate for consolidation and cost cutting.Witness Bayer's bid for Schering, using Bayer's peak of cycle chemical cash flows to secure Schering's pharmaceutical pipeline. Indeed, the bull case for European consolidation centres around the more accommodative stance on labour and corporate taxation being championed by Germany.

Fund Details