Fund Objective

To provide long term capital growth Long term growth through a diversified portfolio of predominantly international equities. A high degree of volatility over the short term is possible.

View on Past Performance

The effects of the Credit Crunch, with the shortage of liquidity, particularly in the bank sector, has resulted in a more significant economic downturn than would normally occur when Central Banks tighten credit to reduce inflationary pressures.Effectively, the interbank lending rates are around 75 basis points above base rates, which has made it far more difficult for monetary policy to be applied. In addition, commodity prices had moved to all time highs, which increased the inflationary effect, predominantly, in the Western economies.The fund manager over the last six months had been particularly active building a strong cash position and has recently utilised market volatility to purchase quality over sold assets in the Far East, America, Emerging markets and Japan. Further cash injections will be made as opportunities appear.

Future Expectations

The double whammy has led to uncertainty, together with volatility in the major world stock markets, and despite earnings returns, yields, together with cash to book values now being at historically undervalued positions, especially when compared to bonds, it is likely that the down trend will continue as recessionary fears dominate sentiment.

Fund Details