Fund Objective

The objective of the trust is to obtain capital growth. In pursuing its objective, the scheme will invest predominantly in UK companies of medium and small capitalisation with the aim of producing long term capital growth.

View on Past Performance

The Trust registered a return of -6.72% during the quarter, compared to -6.45% for the benchmark , FT All Share ex-100 ex-IT Index.Strong stock selection in healthcare and consumer services contributed to relative performance, with DNA technology company Whatman receiving a bid from GE and Nord Anglia Education bouncing back on prospective growth opportunities.Household emergency specialist Homeserve also contributed, on high renewal rates. Financials, among them wealth management company Hansard Global, detracted from performance. Transport operator FirstGroup also detracted on profit-taking and rising fuel costs, whilst microchip designer CSR lowered profit expectations.

Future Expectations

The Trust exited profitably from copper miner Kazakhmys and added industrial design group WSP to the portfolio. Inflation could remain a problem for the Bank of England if high energy and commodity prices persist, limiting the scope for further interest rate cuts designed to ward off economic slowdown.UK stock market sentiment may depend upon which way the Bank's finely balanced scales tip, although global factors will also come into play. Recovery opportunities may be awaiting discovery in such stock market conditions.

Fund Details