Fund Objective

To achieve long term capital growth.

View on Past Performance

The Fund continues to invest in a range of shares in the USA, Continental Europe, Japan and the UK. Compared to its benchmark (the FTSE All-World Index) the Fund remained underweight US equities and overweight in Japan and Europe. Energy Shares have performed well over the period as the oil price has risen to multi-year highs. Aside from this there have been few notable themes in what has essentially been a stock pickers market. In the US the Fund benefited from a holding in AT&T Wireless Services, which was bid for by Cingular Wireless early in the year.

Future Expectations

World economics are expected to remain strong for the remainder of 2004 and into 2005. The US Dollar may come under further pressure due to the countries large trade deficit. Japanese equities may consolidate after their recent strong run but will likely rise further if economic news remains positive. The lagging European economy offers a degree of catch up potential. In the first half of 2004 company earnings growth has outpaced share price appreciation. Accordingly equity valuation levels now look reasonably attractive. Providing the consumer can live with higher interest rate markets appear positioned for growth.

Fund Details