Fund Objective

The Fund aims to provide a high and increasing monthly income together with long term capital growth by investing primarily in shares of UK companies and sterling denominated fixed interest securities.

View on Past Performance

September was characterised by intense equity market volatility as the worst financial crisis of the modern era unfolded. The month saw both the biggest daily rise and fall on record in the FTSE 100 index, however, the FTSE All-Share index finished the month 13.24% down in sterling, total return terms.The US Treasury's bailout of mortgage lenders Fannie Mae and Freddie Mac sparked a rally in UK stocks early on, before the bankruptcy of Lehman Brothers caused share price collapses in major Financials on both sides of the Atlantic. UK Banks and building societies were hard hit and under severe share price pressure, HBoS agreed a takeover by Lloyds TSB.Stocks surged on news of a large scale bailout plan in the US, while US and UK regulators banned short selling in a number of financial stocks. Those gains were wiped out when US lawmakers failed to rubberstamp the bailout plan,and UK markets fell sharply in the aftermath of the nationalisation of the country's largest buy-to-let landlord,Bradford and Bingley.Bond markets performed well over the month,with gilt prices rising on increased risk aversion,the FTSE All-Stocks index returning 0.1%.

Fund Details