Over the long term to achieve a total return in excess of the Bank of England Base Rate with below average risk through investment in a portfolio which is broadly diversified across a range of asset classes and geographic regions. Investments will include equities, fixed interest securities, money market instruments, cash, near cash, deposits, collective investment schemes and other instruments.
Global equities suffered heavy losses in October, as investors tried to come to terms with the full ramifications of the banking crisis and the looming threat of a global recession. Meanwhile, bond yields rose. Despite rising risk aversion among investors, the prospect of high levels of new issuance to pay for bank bail-outs depressed prices.Within the Fund we currently have a comparatively large position in equities via the US, while maintaining a strategic underweight in emerging markets. The Fund also retains a comparatively high cash weighting. Within commodities, we have reduced exposure to energy and commodities.All asset classes suffered a heavy fall in October and as a result the Fund underperformed the benchmark. The main impacts came from real estate and UK equities while UK investment grade bonds, emerging market equities and overseas high yield bonds also impacted negatively.
