Fund Objective

To achieve long term capital appreciation.

View on Past Performance

Asian markets as measured by the MSCI AC Asia ex Japan Index fell by 14.6% in Sterling terms during September. The Fund underperformed its benchmark over the month. Samsung Engineering was the largest positive contributor to performance during the month on a relative basis. Bank Rakyat Indonesia was the third largest positive contributor to performance during the month.It outperformed due to its strong deposit franchise, liquid balance sheet and its dominant presence in the profitable microlending segment. The Fund's overweight holding in Bumi Resources was the largest detractor to performance. The stock predominantly fell due to negative sentiment towards commodities and weakening oil prices. In general, inflation in Asia seems to be peaking and would likely dissipate later this year and into 2009.However, businesses in Asia still face a weakening demand environment amid slowing global growth. Nevertheless, from a balance sheet perspective, Asia is much stronger today than a decade ago. Personal debt levels in most countries remain modest.

Fund Details