Fund Objective

To provide capital growth.

View on Past Performance

The third quarter of 2008 was marked by the worsening economic conditions and exceptionally volatile markets. It started with a significant reversal in the performance of the commodity and financial sectors and ended with steep market declines as the credit crunch intensified, with the result that a number of financial institutions were rescued or became insolvent.The New Star European Portfolio fell 14.6%* while the IMA Europe excluding UK sector lost 13.4%*. Amongst the detractors from performance were CF Eclectica Continental Europe and two small positions, JPM Russia and Marcuard Spectrum CIS Value, which suffered from falling commodity prices.The strongest relative performer was the core holding in the defensively-positioned Cazenove European. Trades included the sale of Artemis European Growth and a reduction in the position in JPM Russia.

Fund Details