The Fund generated performance of 2.1% in August, outperforming its benchmark by 0.5% in Sterling terms. Overweight exposure to New Zealand and UK rates added value during the month, although we have reduced these overweight positions following a strong rally in rates. We maintained the overweight to financials and the short duration position in forward UK real yields. The Fund's short duration positions in Asia detracted from performance during the month.Short positions in the Euro and US Dollar also detracted, however option positions in the US and the Fund's underweight to Pound Sterling benefited the Fund. Credit markets were broadly stable during August, and as such there were no high level changes in the credit positions of the Fund.