Fund Objective

To aim to provide capital growth.

View on Past Performance

The UK stock market fell back sharply in September. A near implosion in financial markets, combined with a breakdown in confidence in the banking system meant equities were under severe pressure. The consequent collapse or bail out of Lehmans, Fannie Mae, Freddie Mac, Bradford & Bingley and AIG, amongst others, meant the FT All Share had its worst month since 1987. The small- and mid-cap sectors underperformed the wider market.

Future Expectations

The credit crunch is now clearly having a serious impact on the real economies of the US and other Western countries. The collapse in a number of financial institutions and nervousness across the banking system has pushed up the cost of borrowing and limited the availability of credit. In such an environment, the outlook for corporate earnings growth is deteriorating and global equity markets remain under pressure.Valuations of smaller companies are, nevertheless, starting to look cheap and corporate activity remains supportive. In the short term the outlook is uncertain, but on a medium-term view, real pockets of value are starting to appear.

Fund Details